STATE OF
MINNESOTA
NINETY-SECOND
SESSION - 2021
_____________________
FORTY-FOURTH
DAY
Saint Paul, Minnesota, Wednesday, April 21, 2021
The House of Representatives convened at
11:30 a.m. and was called to order by Andrew Carlson, Speaker pro tempore.
Prayer was offered by Deacon Nathan E.
Allen, Archdiocese of Saint Paul and Minneapolis, St. Paul, 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
Albright
Anderson
Backer
Bahner
Bahr
Baker
Becker-Finn
Bennett
Berg
Bernardy
Bierman
Bliss
Boe
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
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.
Xiong, T.
Youakim
Spk. Hortman
A quorum was present.
Petersburg was excused until 3:50 p.m.
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. 1846 and
H. F. No. 2024, which had been referred to the Chief Clerk for
comparison, were examined and found to be not identical.
Stephenson moved that
S. F. No. 1846 be substituted for H. F. No. 2024
and that the House File be indefinitely postponed. The motion prevailed.
REPORTS OF
STANDING COMMITTEES AND DIVISIONS
Moran from the Committee on Ways and Means to which was referred:
H. F. No. 2128, A bill for an act relating to state government; modifying provisions governing health, health care, human services, human services licensing and background studies, health-related licensing boards, prescription drugs, health insurance, telehealth, children and family services, behavioral health, direct care and treatment, disability services and continuing care for older adults, community supports, and chemical and mental health services; establishing a budget for health and human services; making forecast adjustments; making technical and conforming changes; requiring reports; transferring money; appropriating money; amending Minnesota Statutes 2020, sections 62A.04, subdivision 2; 62A.10, by adding a subdivision; 62A.15, subdivision 4, by adding a subdivision; 62A.152, subdivision 3; 62A.3094, subdivision 1; 62A.65, subdivision 1, by adding a subdivision; 62C.01, by adding a subdivision; 62D.01, by adding a subdivision; 62D.095, subdivisions 2, 3, 4, 5; 62J.495, subdivisions 1, 2, 3, 4; 62J.497, subdivisions 1, 3; 62J.498; 62J.4981; 62J.4982; 62J.63, subdivisions 1, 2; 62Q.01, subdivision 2a; 62Q.02; 62Q.096; 62Q.46; 62Q.677, by adding a subdivision; 62Q.81; 62U.04, subdivisions 4, 5, 11; 62V.05, by adding a subdivision; 62W.11; 103H.201, subdivision 1; 119B.011, subdivision 15; 119B.025, subdivision 4; 119B.03, subdivisions 4, 6; 119B.09, subdivision 4; 119B.11, subdivision 2a; 119B.125, subdivision 1; 119B.13, subdivisions 1, 1a, 6, 7; 119B.25, subdivision 3; 122A.18, subdivision 8; 136A.128, subdivisions 2, 4; 144.0724, subdivisions 1, 2, 3a, 4, 5, 7, 8, 9, 12; 144.1205, subdivisions 2, 4, 8, 9, by adding a subdivision; 144.125, subdivision 1; 144.1481, subdivision 1; 144.1501, subdivisions 1, 2, 3; 144.1911, subdivision 6; 144.212, by adding a subdivision; 144.225, subdivisions 2, 7; 144.226, by adding subdivisions; 144.55, subdivisions 4, 6; 144.551, subdivision 1, by adding a subdivision; 144.555; 144.651, subdivision 2; 144.9501, subdivision 17; 144.9502, subdivision 3; 144.9504, subdivisions 2, 5; 144D.01, subdivision 4; 144G.08, subdivision 7, as amended; 144G.84; 145.893, subdivision 1; 145.894; 145.897; 145.899; 145.901, subdivisions 2, 4; 147.033; 148.90, subdivision 2; 148.911; 148B.30, subdivision 1; 148B.31; 148B.51; 148B.5301, subdivision 2; 148B.54, subdivision 2; 148E.010, by adding a subdivision; 148E.120, subdivision 2; 148E.130, subdivision 1, by adding a subdivision; 148F.11, subdivision 1; 151.01, by adding subdivisions; 151.071, subdivisions 1, 2; 151.37, subdivision 2; 151.555, subdivisions 1, 7, 11, by adding a subdivision; 152.01, subdivision 23; 152.02, subdivisions 2, 3; 152.11, subdivision 1a, by adding a subdivision; 152.12, by adding a subdivision; 152.125, subdivision 3; 152.22, subdivisions 6, 11, by adding subdivisions; 152.23; 152.25, by adding a subdivision; 152.26; 152.27, subdivisions 3, 4, 6; 152.28, subdivision 1; 152.29, subdivisions 1, 3, by adding subdivisions; 152.31; 152.32, subdivision 3; 156.12, subdivision 2; 171.07, by adding a subdivision; 174.30, subdivision 3; 245.462, subdivisions 1, 6, 8, 9, 14, 16, 17, 18, 21, 23, by adding a subdivision; 245.4661, subdivision 5; 245.4662, subdivision 1; 245.467, subdivisions 2, 3; 245.469, subdivisions 1, 2; 245.470, subdivision 1; 245.4712, subdivision 2; 245.472, subdivision 2; 245.4863; 245.4871, subdivisions 9a, 10, 11a, 17, 21, 26, 27, 29, 31, 32, 34, by adding a subdivision; 245.4876, subdivisions 2, 3; 245.4879, subdivision 1; 245.488, subdivision 1; 245.4882, subdivisions 1, 3; 245.4885, subdivision 1; 245.4889, subdivision 1; 245.4901, subdivision 2; 245.62, subdivision 2; 245.735, subdivisions 3, 5, by adding a subdivision; 245A.02, by adding subdivisions; 245A.03, subdivision 7; 245A.04, subdivision 5; 245A.041, by adding a subdivision; 245A.043, subdivision 3; 245A.05; 245A.07, subdivision 1; 245A.10, subdivision 4; 245A.14, subdivision 4; 245A.16, by adding a subdivision; 245A.50, subdivisions 7, 9; 245A.65, subdivision 2; 245C.02, subdivisions 4a, 5, by adding subdivisions; 245C.03; 245C.05, subdivisions 1, 2, 2a, 2b, 2c, 2d, 4; 245C.08,
subdivision 3, by adding a subdivision; 245C.10, subdivision 15, by adding subdivisions; 245C.13, subdivision 2; 245C.14, subdivision 1, by adding a subdivision; 245C.15, by adding a subdivision; 245C.16, subdivisions 1, 2; 245C.17, subdivision 1, by adding a subdivision; 245C.18; 245C.24, subdivisions 2, 3, 4, by adding a subdivision; 245C.32, subdivision 1a; 245D.02, subdivision 20; 245F.04, subdivision 2; 245G.01, subdivisions 13, 26; 245G.03, subdivision 2; 245G.06, subdivision 1; 246.54, subdivision 1b; 254A.19, subdivision 5; 254B.01, subdivision 4a, by adding a subdivision; 254B.05, subdivision 5; 254B.12, by adding a subdivision; 256.01, subdivisions 14b, 28; 256.0112, subdivision 6; 256.041; 256.042, subdivisions 2, 4; 256.043, subdivision 3; 256.969, subdivisions 2b, 9, by adding a subdivision; 256.9695, subdivision 1; 256.9741, subdivision 1; 256.98, subdivision 1; 256.983; 256B.04, subdivisions 12, 14; 256B.055, subdivision 6; 256B.056, subdivision 10; 256B.057, subdivision 3; 256B.06, subdivision 4; 256B.0615, subdivisions 1, 5; 256B.0616, subdivisions 1, 3, 5; 256B.0621, subdivision 10; 256B.0622, subdivisions 1, 2, 3a, 4, 7, 7a, 7b, 7d; 256B.0623, subdivisions 1, 2, 3, 4, 5, 6, 9, 12; 256B.0624; 256B.0625, subdivisions 3b, 3c, 3d, 3e, 5, 5m, 9, 10, 13, 13c, 13d, 13e, 13h, 17, 17b, 18, 18b, 19c, 20, 20b, 28a, 30, 31, 42, 46, 48, 49, 52, 56a, 58, by adding subdivisions; 256B.0631, subdivision 1; 256B.0638, subdivisions 3, 5, 6; 256B.0659, subdivision 13; 256B.0757, subdivision 4c; 256B.0759, subdivisions 2, 4, by adding subdivisions; 256B.0911, subdivisions 1a, 3a, 3f, 4d; 256B.092, subdivisions 4, 5, 12; 256B.0924, subdivision 6; 256B.094, subdivision 6; 256B.0941, subdivision 1; 256B.0943, subdivisions 1, 2, 3, 4, 5, 5a, 6, 7, 9, 11; 256B.0946, subdivisions 1, 1a, 2, 3, 4, 6; 256B.0947, subdivisions 1, 2, 3, 3a, 5, 6, 7; 256B.0949, subdivisions 2, 4, 5a, by adding a subdivision; 256B.097, by adding subdivisions; 256B.196, subdivision 2; 256B.25, subdivision 3; 256B.439, by adding subdivisions; 256B.49, subdivisions 11, 11a, 14, 17, by adding a subdivision; 256B.4914, subdivisions 5, 6, 7, 8, 9, by adding a subdivision; 256B.69, subdivisions 5a, 6, 6d, by adding subdivisions; 256B.6928, subdivision 5; 256B.75; 256B.76, subdivisions 2, 4; 256B.761; 256B.763; 256B.79, subdivisions 1, 3; 256B.85, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 11b, 12, 12b, 13, 13a, 15, 17a, 18a, 20b, 23, 23a, by adding subdivisions; 256D.03, by adding a subdivision; 256D.051, by adding subdivisions; 256D.0515; 256D.0516, subdivision 2; 256E.34, subdivision 1; 256I.03, subdivision 13; 256I.04, subdivision 3; 256I.05, subdivisions 1a, 1c, 11; 256I.06, subdivisions 6, 8; 256J.08, subdivisions 15, 71, 79; 256J.09, subdivision 3; 256J.10; 256J.21, subdivisions 3, 4, 5; 256J.24, subdivision 5; 256J.30, subdivision 8; 256J.33, subdivisions 1, 2, 4; 256J.37, subdivisions 1, 1b, 3, 3a; 256J.45, subdivision 1; 256J.626, subdivision 1; 256J.95, subdivision 9; 256L.01, subdivision 5; 256L.03, subdivision 5; 256L.04, subdivision 7b; 256L.05, subdivision 3a; 256L.11, subdivisions 6a, 7; 256N.25, subdivisions 2, 3; 256N.26, subdivisions 11, 13; 256P.01, subdivisions 3, 6a, by adding a subdivision; 256P.04, subdivisions 4, 8; 256P.06, subdivisions 2, 3; 256P.07; 256S.05, subdivision 2; 256S.18, subdivision 7; 256S.20, subdivision 1; 260.761, subdivision 2; 260C.007, subdivisions 6, 14, 26c, 31; 260C.157, subdivision 3; 260C.212, subdivisions 1a, 13; 260C.215, subdivision 4; 260C.4412; 260C.452; 260C.704; 260C.706; 260C.708; 260C.71; 260C.712; 260C.714; 260D.01; 260D.05; 260D.06, subdivision 2; 260D.07; 260D.08; 260D.14; 260E.01; 260E.02, subdivision 1; 260E.03, subdivision 22, by adding subdivisions; 260E.06, subdivision 1; 260E.14, subdivisions 2, 5; 260E.17, subdivision 1; 260E.18; 260E.20, subdivision 2; 260E.24, subdivisions 2, 7; 260E.31, subdivision 1; 260E.33, subdivision 1, by adding a subdivision; 260E.35, subdivision 6; 260E.36, by adding a subdivision; 295.50, subdivision 9b; 295.53, subdivision 1; 325F.721, subdivision 1; 326.71, subdivision 4; 326.75, subdivisions 1, 2, 3; Laws 2019, First Special Session chapter 9, article 14, section 3, as amended; Laws 2020, First Special Session chapter 7, section 1, subdivision 2, as amended; Laws 2020, Fifth Special Session chapter 3, article 10, section 3; Laws 2020, Seventh Special Session chapter 1, article 6, section 12, subdivision 4; proposing coding for new law in Minnesota Statutes, chapters 62A; 62J; 62Q; 62W; 119B; 144; 145; 151; 245; 245A; 245C; 254B; 256B; 256P; 256S; proposing coding for new law as Minnesota Statutes, chapter 245I; repealing Minnesota Statutes 2020, sections 16A.724, subdivision 2; 62A.67; 62A.671; 62A.672; 62J.63, subdivision 3; 119B.04; 119B.125, subdivision 5; 144.0721, subdivision 1; 144.0722; 144.0724, subdivision 10; 144.693; 245.462, subdivision 4a; 245.4871, subdivision 32a; 245.4879, subdivision 2; 245.62, subdivisions 3, 4; 245.69, subdivision 2; 245.735, subdivisions 1, 2, 4; 245C.10, subdivisions 2, 2a, 3, 4, 5, 6, 7, 8, 9, 9a, 10, 11, 12, 13, 14, 16; 256B.0596; 256B.0615, subdivision 2; 256B.0616, subdivision 2; 256B.0622, subdivisions 3, 5a; 256B.0623, subdivisions 7, 8, 10, 11; 256B.0625, subdivisions 5l, 18c, 18d, 18e, 18h, 35a, 35b, 61, 62, 65; 256B.0916, subdivisions 2, 3, 4, 5, 8, 11, 12; 256B.0924, subdivision 4a; 256B.0943, subdivisions 8, 10; 256B.0944; 256B.0946, subdivision 5; 256B.097, subdivisions 1, 2, 3, 4, 5, 6; 256B.49, subdivisions 26, 27; 256D.051, subdivisions 1, 1a, 2, 2a, 3, 3a, 3b, 6b, 6c, 7, 8, 9, 18; 256D.052, subdivision 3; 256J.08, subdivisions 10, 53, 61, 62, 81, 83; 256J.21, subdivisions 1, 2;
256J.30, subdivisions 5, 7, 8; 256J.33, subdivisions 3, 4, 5; 256J.34, subdivisions 1, 2, 3, 4; 256J.37, subdivision 10; 256S.20, subdivision 2; Minnesota Rules, parts 9505.0275; 9505.0370; 9505.0371; 9505.0372; 9505.1693; 9505.1696, subparts 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22; 9505.1699; 9505.1701; 9505.1703; 9505.1706; 9505.1712; 9505.1715; 9505.1718; 9505.1724; 9505.1727; 9505.1730; 9505.1733; 9505.1736; 9505.1739; 9505.1742; 9505.1745; 9505.1748; 9520.0010; 9520.0020; 9520.0030; 9520.0040; 9520.0050; 9520.0060; 9520.0070; 9520.0080; 9520.0090; 9520.0100; 9520.0110; 9520.0120; 9520.0130; 9520.0140; 9520.0150; 9520.0160; 9520.0170; 9520.0180; 9520.0190; 9520.0200; 9520.0210; 9520.0230; 9520.0750; 9520.0760; 9520.0770; 9520.0780; 9520.0790; 9520.0800; 9520.0810; 9520.0820; 9520.0830; 9520.0840; 9520.0850; 9520.0860; 9520.0870; 9530.6800; 9530.6810.
Reported the same back with the following amendments:
Page 12, line 15, delete "$9,000,000" and insert "$9,750,000 in fiscal year 2023 and $14,000,000 per year beginning July 1, 2023"
Page 18, line 2, delete "six" and insert "12"
Page 18, line 9, delete "six-month" and insert "12-month"
Page 23, line 6, delete "six" and insert "12"
Page 74, after line 10, insert:
"Sec. 56. Minnesota Statutes 2020, section 256L.07, subdivision 2, is amended to read:
Subd. 2. Must not have access to employer-subsidized minimum essential coverage. (a) To be eligible, a family or individual must not have access to subsidized health coverage that is affordable and provides minimum value as defined in Code of Federal Regulations, title 26, section 1.36B-2.
(b) Notwithstanding paragraph (a), an
individual who has access through a spouse's or parent's employer to subsidized
health coverage that is deemed minimum essential coverage under Code of Federal
Regulations, title 26, section 1.36B-2, is eligible for MinnesotaCare if the
employee's portion of the annual premium for employee and dependent coverage
exceeds the required contribution percentage, as defined for premium tax credit
eligibility under United States Code, title 26, section 36B(c)(2)(C)(i)(II), as
indexed according to item (iv) of that section, of the individual's household
income for the coverage year.
(c) This subdivision does not apply to a family or individual who no longer has employer-subsidized coverage due to the employer terminating health care coverage as an employee benefit.
EFFECTIVE DATE. This section is effective January 1, 2022."
Page 74, after line 28, insert:
"Sec. 59. Minnesota Statutes 2020, section 256L.15, subdivision 2, is amended to read:
Subd. 2. Sliding fee scale; monthly individual or family income. (a) The commissioner shall establish a sliding fee scale to determine the percentage of monthly individual or family income that households at different income levels must pay to obtain coverage through the MinnesotaCare program. The sliding fee scale must be based on the enrollee's monthly individual or family income.
(b) Beginning January 1, 2014, MinnesotaCare enrollees shall pay premiums according to the premium scale specified in paragraph (d).
(c) Paragraph (b) does not apply to:
(1) children 20 years of age or younger; and
(2) individuals with household incomes below 35 percent of the federal poverty guidelines.
(d) The following premium scale is established for each individual in the household who is 21 years of age or older and enrolled in MinnesotaCare:
Federal Poverty Guideline Greater than or
Equal to |
Less than |
Individual Premium Amount |
35% |
55% |
$4 |
55% |
80% |
$6 |
80% |
90% |
$8 |
90% |
100% |
$10 |
100% |
110% |
$12 |
110% |
120% |
$14 |
120% |
130% |
$15 |
130% |
140% |
$16 |
140% |
150% |
$25 |
150% |
160% |
$37 |
160% |
170% |
$44 |
170% |
180% |
$52 |
180% |
190% |
$61 |
190% |
200% |
$71 |
200% |
|
$80 |
(e) Retroactive to January 1, 2021, the
commissioner shall adjust the premium schedule under paragraph (d) to ensure
that MinnesotaCare premiums do not exceed the amount that an individual would
have been required to pay if the individual
was enrolled in an applicable benchmark plan in accordance with Code of Federal
Regulations, title 42, section 600.505(a)(1).
EFFECTIVE DATE. This section is effective the day following final enactment."
Page 170, line 27, delete the second semicolon
Page 170, line 28, delete "COMPARISON TOOL"
Page 221, after line 26, insert:
"Sec. 58. Minnesota Statutes 2020, section 144G.54, subdivision 3, is amended to read:
Subd. 3. Appeals process. (a) The Office of Administrative Hearings must conduct an expedited hearing using the procedures in Minnesota Rules, parts 1400.8505 to 1400.8612, as soon as practicable under this section, but in no event later than 14 calendar days after the office receives the request, unless the parties agree otherwise or the chief administrative law judge deems the timing to be unreasonable, given the complexity of the issues presented.
(b) The hearing must be held at the facility where the resident lives, unless holding the hearing at that location is impractical, the parties agree to hold the hearing at a different location, or the chief administrative law judge grants a party's request to appear at another location or by telephone or interactive video.
(c) The hearing is not a formal contested case proceeding conducted according to the procedures in Minnesota Rules, parts 1400.5010 to 1400.8400, except when determined necessary by the chief administrative law judge.
(d) Parties may but are not required to be represented by counsel. The appearance of a party without counsel does not constitute the unauthorized practice of law.
(e) The hearing shall be limited to the amount of time necessary for the participants to expeditiously present the facts about the proposed termination. The administrative law judge shall issue a recommendation to the commissioner as soon as practicable, but in no event later than ten business days after the hearing.
EFFECTIVE DATE. This section is effective August 1, 2021."
Page 229, delete section 66
Page 403, line 18, delete "sections 119B.04; and" and insert "section" and delete "are" and insert "is"
Page 542, line 14, strike the third "and"
Page 573, line 1, delete "April 1, 2021" and insert "June 30, 2022"
Page 622, after line 24, insert:
"Section 1. [3.9215]
OMBUDSPERSON FOR AMERICAN INDIAN FAMILIES.
Subdivision 1. Scope. In recognition of the sovereign status
of Indian Tribes and the unique laws and standards involved in protecting
Indian children, this section creates the Office of the Ombudsperson for
American Indian Families and gives the ombudsperson the powers and duties
necessary to effectively carry out the functions of the office.
Subd. 2. Creation. The ombudsperson shall operate
independently from and in collaboration with the Indian Affairs Council and the
American Indian Child Welfare Advisory Council under section 260.835.
Subd. 3. Selection;
qualifications. The
ombudsperson shall be selected by the American Indian community‑specific
board established in section 3.9216. The
ombudsperson serves in the unclassified service at the pleasure of the
community-specific board and may be removed only for just cause. Each ombudsperson must be selected without
regard to political affiliation and shall be a person highly competent and
qualified to analyze questions of law, administration, and public policy
regarding the protection and placement of children. In addition, the ombudsperson must be
experienced in working collaboratively with the American Indian and Alaskan
Native communities or nations and knowledgeable about the needs of those communities,
the Indian Child Welfare Act and Minnesota Indian Family Preservation Act, and
best practices regarding prevention, cultural resources, and historical trauma. No individual may serve as the ombudsperson
for American Indian families while holding any other public office.
Subd. 4. Appropriation. Money appropriated for the
ombudsperson for American Indian families from the general fund or the special
fund authorized by section 256.01, subdivision 2, paragraph (o), is under the
control of the ombudsperson. The amount
necessary for the ombudsperson to carry out the duties in this section is
annually appropriated from the general fund to the ombudsperson. This appropriation is available until
expended and is in addition to the appropriation under section 257.0769,
subdivision 1, paragraph (a).
Subd. 5. Definitions. (a) For the purposes of this section,
the following terms have the meanings given them.
(b) "Agency" means the local
district courts or a designated county social service agency as defined in
section 256G.02, subdivision 7, engaged in providing child protection and
placement services for children. Agency
also means any individual, service, organization, or program providing child
protection, placement, or adoption services in coordination with or under
contract with any other entity specified in this subdivision, including
guardians ad litem.
(c) "American Indian" refers
to individuals who are members of federally recognized Tribes, eligible for
membership in a federally recognized Tribe, or children or grandchildren of a
member of a federally recognized Tribe. American
Indian is a political status established through treaty rights between the
federal government and Tribes. Each
Tribe has a unique culture and practices specific to the Tribe.
(d) "Facility" means any
entity required to be licensed under chapter 245A.
(e) "Indian custodian" has
the meaning given in United States Code, title 25, section 1903.
Subd. 6. Organization. (a) The ombudsperson may select,
appoint, and compensate assistants and employees that the ombudsperson finds
necessary to discharge responsibilities.
All employees, except the secretarial and clerical staff, serve at the
pleasure of the ombudsperson in the unclassified service. The ombudsperson and full-time staff are
members of the Minnesota State Retirement Association.
(b) The ombudsperson may delegate to
staff members or members of the American Indian Community-Specific Board under
section 3.9216 any of the ombudsperson's authority or duties except the duty of
formally making recommendations to an administrative agency or reports to the
Office of the Governor or to the legislature.
Subd. 7. Duties
and powers. (a) The
ombudsperson has the duties listed in this paragraph.
(1) The ombudsperson shall monitor
agency compliance with all laws governing child protection and placement,
public education, and housing issues related to child protection that impact
American Indian children and their families.
In particular, the ombudsperson shall monitor agency compliance with
sections 260.751 to 260.835; section 260C.193, subdivision 3; and section
260C.215.
(2) The ombudsperson shall work with
local state courts to ensure that:
(i) court officials, public policy
makers, and service providers are trained in cultural competency. The ombudsperson shall document and monitor
court activities to heighten awareness of diverse belief systems and family
relationships;
(ii) qualified expert witnesses from
the appropriate American Indian community, including Tribal advocates, are used
as court advocates and are consulted in placement decisions that involve
American Indian children; and
(iii) guardians ad litem and other
individuals from American Indian communities are recruited, trained, and used
in court proceedings to advocate on behalf of American Indian children.
(3) The ombudsperson shall primarily
work on behalf of American Indian children and families, but shall also work on
behalf of any Minnesota children and families as the ombudsperson deems
necessary and appropriate.
(b) The ombudsperson has the authority
to investigate decisions, acts, and other matters of an agency, program, or
facility providing protection or placement services to American Indian children. In carrying out this authority and the duties
in paragraph (a), the ombudsperson has the power to:
(1)
prescribe the methods by which complaints are made, reviewed, and acted upon;
(2) determine the scope and manner of
investigations;
(3) investigate, upon a complaint or
upon personal initiative, any action of any agency;
(4) request and be given access to any
information in the possession of any agency deemed necessary for the discharge
of responsibilities. The ombudsperson is
authorized to set reasonable deadlines within which an agency must respond to
requests for information. Data obtained
from any agency under this clause retains the classification that the data has
under section 13.02 and the ombudsperson shall maintain and disseminate the
data according to chapter 13;
(5) examine the records and documents
of an agency;
(6) enter and inspect, during normal
business hours, premises within the control of an agency; and
(7) subpoena any agency personnel to
appear, testify, or produce documentation or other evidence that the ombudsperson
deems relevant to a particular matter under investigation, and petition the
appropriate state court to seek enforcement of the subpoena. Any witness at a hearing or for an
investigation has the same privileges of a witness in the courts or under the
laws of this state. The ombudsperson may
compel individuals who are not agency personnel to testify or produce evidence
according to procedures developed by the advisory board.
(c) The ombudsperson may apply for
grants and accept gifts, donations, and appropriations for training relating to
the duties of the ombudsperson. Grants,
gifts, donations, and appropriations received by the ombudsperson shall be used
for training. The ombudsperson may seek
and apply for grants to develop new programs and initiatives and to continue
existing programs and initiatives. These
funds may not be used for operating expenses for the Office of the Ombudsperson
for American Indian Families.
Subd. 8. Matters
appropriate for review. (a)
In selecting matters for review, an ombudsperson should give particular
attention to actions of an agency, facility, or program that:
(1) may be contrary to law or rule;
(2) may be unreasonable, unfair,
oppressive, or inconsistent with a policy or order of an agency, facility, or
program;
(3) may result in abuse or neglect of a
child;
(4) may disregard the rights of a child
or another individual served by an agency or facility; or
(5) may be unclear or inadequately
explained, when reasons should have been revealed.
(b) The ombudsperson shall, in
selecting matters for review, inform other interested agencies in order to
avoid duplicating other investigations or regulatory efforts, including
activities undertaken by a Tribal organization under the authority of sections
260.751 to 260.835.
Subd. 9. Complaints. The ombudsperson may receive a
complaint from any source concerning an action of an agency, facility, or
program. After completing a review, the
ombudsperson shall inform the complainant, agency, facility, or program. Services to a child shall not be unfavorably
altered as a result of an investigation or complaint. An agency,
facility, or program shall not retaliate or take adverse action, as defined in
section 260E.07, against an individual who, in good faith, makes a
complaint or assists in an investigation.
Subd. 10. Recommendations
to agency. (a) If, after
reviewing a complaint or conducting an investigation and considering the
response of an agency, facility, or program and any other pertinent material,
the ombudsperson determines that the complaint has merit or that the
investigation reveals a problem, the ombudsperson may recommend that the
agency, facility, or program:
(1) consider the matter further;
(2) modify or cancel its actions;
(3) alter a rule, order, or internal
policy;
(4) explain more fully the action in
question; or
(5) take other action as authorized
under section 257.0762.
(b) At the ombudsperson's request, the
agency, facility, or program shall, within a reasonable time, inform the
ombudsperson about the action taken on the recommendation or the reasons for
not complying with the recommendation.
(c) Data obtained from any agency under
this section retains the classification that the data has under section 13.02,
and the ombudsperson shall maintain and disseminate the data according to
chapter 13.
Subd. 11. Recommendations
and public reports. (a) The
ombudsperson may send conclusions and suggestions concerning any reviewed
matter to the governor and shall provide copies of all reports to the advisory
board and to the groups specified in section 257.0768, subdivision 1. Before making public a conclusion or
recommendation that expressly or implicitly criticizes an agency, facility,
program, or any person, the ombudsperson shall inform the governor and the
affected agency, facility, program, or person concerning the conclusion or
recommendation. When sending a
conclusion or recommendation to the governor that is adverse to an agency,
facility, program, or any person, the ombudsperson shall include any statement
of reasonable length made by that agency, facility, program, or person in
defense or mitigation of the ombudsperson's conclusion or recommendation.
(b) In addition to conclusions or
recommendations that the ombudsperson makes to the governor on an ad hoc basis,
the ombudsperson shall, at the end of each year, report to the governor
concerning the exercise of the ombudsperson's functions during the preceding
year.
Subd. 12. Civil
actions. The ombudsperson and
designees are not civilly liable for any action taken under this section if the
action was taken in good faith, was within the scope of the ombudsperson's
authority, and did not constitute willful or reckless misconduct.
Subd. 13. Use
of funds. Any funds received
by the ombudsperson from any source may be used to compensate members of the
American Indian community-specific board for reasonable and necessary expenses
incurred in aiding and assisting the ombudsperson in programs and initiatives.
Sec. 2. [3.9216]
AMERICAN INDIAN COMMUNITY-SPECIFIC BOARD.
Subdivision 1. Membership. The board consists of five members who
are members of a federally recognized Tribe or members of the American Indian
community. The chair of the Indian
Affairs Council shall appoint the members of the board. In making appointments, the chair must
consult with other members of the council.
Subd. 2. Compensation. Members do not receive compensation
but are entitled to receive reimbursement for reasonable and necessary expenses
incurred doing board-related work, including travel for meetings, trainings,
and presentations. Board members may
also receive per diem payments in a manner and amount prescribed by the board.
Subd. 3. Meetings. The board shall meet regularly at the
request of the appointing chair, board chair, or ombudsperson. The board must meet at least quarterly. The appointing chair, board chair, or
ombudsperson may also call special or emergency meetings as necessary.
Subd. 4. Removal
and vacancy. (a) A member may
be removed by the appointing authority at any time, either for cause, as
described in paragraph (b), or after missing three consecutive meetings, as
described in paragraph (c).
(b) If a removal is for cause, the
member must be given notice and an opportunity for a hearing before removal.
(c) After a member misses two
consecutive meetings, and before the next meeting, the board chair shall notify
the member in writing that the member may be removed if the member misses the
next meeting. If a member misses three
consecutive meetings, the board chair must notify the appointing authority.
(d) If there is a vacancy on the board,
the appointing authority shall appoint a person to fill the vacancy for the
remainder of the unexpired term.
Subd. 5. Duties. (a) The board shall appoint the Ombudsperson
for American Indian Families and shall advise and assist the ombudsperson in
various ways, including, but not limited to:
(1) selecting matters for attention;
(2) developing policies, plans, and
programs to carry out the ombudsperson's functions and powers;
(3) attending policy meetings when
requested by the ombudsperson;
(4) establishing protocols for working
with American Indian communities;
(5) developing procedures for the
ombudsperson's use of the subpoena power to compel testimony and evidence from
individuals who are not agency personnel; and
(6) making reports and recommendations
for changes designed to improve standards of competence, efficiency, justice,
and protection of rights.
(b) The board shall not make individual
case recommendations.
Subd. 6. Grants,
gifts, donations, and appropriations.
The board may apply for grants for the purpose of training and
educating the American Indian community on child protection issues involving
American Indian families. The board may
also accept gifts, donations, and appropriations for training and education. Grants, gifts, donations, and appropriations
received by the board shall be used for training and education purposes. The board may seek and apply for grants to
develop new programs and initiatives and to continue existing programs and
initiatives. These funds may also be
used to reimburse board members for reasonable and necessary expenses incurred
in aiding and assisting the Office of the Ombudsperson for American Indian
Families in Office of the Ombudsperson for American Indian Families programs
and initiatives, but may not be used for operating expenses for the Office of
Ombudsperson for American Indian Families.
Subd. 7. Terms and expiration. The terms and expiration of board membership are governed by section 15.0575."
Page 628, line 2, delete the new language and strike "and" and insert "scheduled meetings with no more than three absences per year,"
Page 628, line 3, after "meetings" insert a comma
Page 628, after line 16, insert:
"Sec. 7. Minnesota Statutes 2020, section 257.0755, subdivision 1, is amended to read:
Subdivision 1. Creation. Each ombudsperson shall operate
independently from but in collaboration with the community-specific board that
appointed the ombudsperson under section 257.0768: the Indian Affairs Council, the
Minnesota Council on Latino Affairs, the Council for Minnesotans of African Heritage,
and the Council on Asian‑Pacific Minnesotans.
Sec. 8. Minnesota Statutes 2020, section 257.076, subdivision 3, is amended to read:
Subd. 3. Communities
of color. "Communities of
color" means the following: American
Indian, Hispanic‑Latino, Asian-Pacific, African, and African-American
communities.
Sec. 9. Minnesota Statutes 2020, section 257.076, subdivision 5, is amended to read:
Subd. 5. Family
of color. "Family of
color" means any family with a child under the age of 18 who is identified
by one or both parents or another trusted adult to be of American Indian,
Hispanic-Latino, Asian-Pacific, African, or African-American descent.
Sec. 10. Minnesota Statutes 2020, section 257.0768, subdivision 1, is amended to read:
Subdivision 1. Membership. Four Three
community-specific boards are created. Each
board consists of five members. The
chair of each of the following groups shall appoint the board for the community
represented by the group: the Indian
Affairs Council; the Minnesota Council on Latino Affairs; the Council for
Minnesotans of African Heritage; and the Council on Asian-Pacific Minnesotans. In making appointments, the chair must
consult with other members of the council.
Sec. 11. Minnesota Statutes 2020, section 257.0768, subdivision 6, is amended to read:
Subd. 6. Joint
meetings. The members of the four
three community-specific boards shall meet jointly at least four times
each year to advise the ombudspersons on overall policies, plans, protocols,
and programs for the office.
Sec. 12. Minnesota Statutes 2020, section 257.0769, is amended to read:
257.0769
FUNDING FOR THE OMBUDSPERSON PROGRAM.
Subdivision 1. Appropriations. (a) money is appropriated from $23,000
from the special fund authorized by section 256.01, subdivision 2,
paragraph (o), is annually appropriated to the Indian Affairs Council
Office of Ombudsperson for American Indian Families for the purposes
purpose of sections 257.0755 to 257.0768 section 3.9215.
(b) money is appropriated from $69,000
from the special fund authorized by section 256.01, subdivision 2,
paragraph (o), is annually appropriated to the Minnesota Council on
Latino Affairs Office of Ombudsperson for Families for the purposes
of sections 257.0755 to 257.0768.
(c)
Money is appropriated from the special fund authorized by section 256.01,
subdivision 2, paragraph (o), to the Council for Minnesotans of African
Heritage for the purposes of sections 257.0755 to 257.0768.
(d) Money is appropriated from the
special fund authorized by section 256.01, subdivision 2, paragraph (o), to the
Council on Asian-Pacific Minnesotans for the purposes of sections 257.0755 to
257.0768.
Subd. 2. Title IV-E reimbursement. The commissioner shall obtain federal title IV-E financial participation for eligible activity by the ombudsperson for families under section 257.0755 and the ombudsperson for American Indian families under section 3.9215. The ombudsperson for families and the ombudsperson for American Indian families shall maintain and transmit to the Department of Human Services documentation that is necessary in order to obtain federal funds.
Sec. 13. TRANSFER
OF MONEY.
Before the end of fiscal year 2021, the Office of the Ombudsperson for Families must transfer to the Office of the Ombudsperson for American Indian Families any remaining money designated for use by the Ombudsperson for American Indian Families. This section is cost-neutral."
Page 783, line 26, after "Paragraphs" insert "(b),"
Page 836, line 19, delete "9,104,404,000" and insert "9,012,439,000" and delete "9,590,575,000" and insert "9,579,858,000"
Page 836, line 22, delete "7,945,812,000" and insert "7,928,908,000" and delete "8,456,923,000" and insert "8,454,516,000"
Page 836, line 25, delete "867,214,000" and insert "792,153,000" and delete "845,520,000" and insert "837,210,000"
Page 840, delete subdivision 3
Renumber the subdivisions in sequence
Page 841, line 25, delete "175,025,000" and insert "174,946,000" and delete "168,967,000" and insert "170,629,000"
Page 844, line 3, delete "26,005,000" and insert "26,282,000" and delete "23,992,000" and insert "24,142,000"
Page 844, line 4, delete the first "28,168,000" and insert "30,168,000"
Page 848, line 5, delete "207,437,000" and insert "113,474,000" and delete "184,822,000" and insert "159,610,000"
Page 848, line 11, delete "6,058,256,000" and insert "6,041,354,000" and delete "6,577,278,000" and insert "6,553,259,000"
Page 848, line 12, delete "611,178,000" and insert "628,080,000" and delete "612,099,000" and insert "629,001,000"
Page 848, line 13, before "Behavioral" insert "(a)"
Page 848, after line 22, insert:
"(b) Base Level Adjustment. The health care access fund base is $604,758,000 in fiscal year 2024 and $604,758,000 in fiscal year 2025."
Page 852, line 31, delete "34,240,000" and insert "34,040,000" and delete "34,240,000" and insert "34,040,000"
Page 857, line 12, delete "36 to 40" and insert "35 to 39"
Page 858, line 29, delete "259,373,000" and insert "268,895,000" and delete "251,881,000" and insert "261,403,000"
Page 858, line 32, delete "156,337,000" and insert "165,859,000" and delete "150,554,000" and insert "160,076,000"
Page 859, line 8, delete "113,697,000" and insert "123,219,000" and delete "112,692,000" and insert "122,214,000"
Page 860, line 21, delete "Morbidity and"
Page 860, line 24, delete "maternal morbidity studies"
Page 860, line 25, delete "and"
Page 860, line 26, delete "sections" and insert "section" and delete "and 145.9013"
Page 861, lines 1 and 2, delete "$2,978,000" and insert "$7,500,000"
Page 861, line 5, delete everything after the period
Page 861, delete lines 6 and 7
Page 861, lines 9 and 10, delete "$5,000,000" and insert "$7,500,000"
Page 862, lines 29 and 30, delete "$2,500,000" and insert "$5,000,000"
Page 864, line 13, delete "$110,762,000" and insert "$120,834,000"
Page 864, line 14, delete "$111,787,000" and insert "$120,787,000"
Page 869, line 25, delete "733,000" and insert "968,000" and delete "744,000" and insert "992,000"
Page 875, after line 19, insert:
"Sec. 12. APPROPRIATION;
MINNESOTACARE PREMIUMS.
$108,000 in fiscal year 2021 is
appropriated from the general fund and $44,000 in fiscal year 2021 is
appropriated from the health care access fund to the commissioner of human
services to implement changes to MinnesotaCare premiums.
EFFECTIVE DATE. This section is effective the day following final enactment."
Renumber the sections in sequence
Correct the title numbers accordingly
With the recommendation that when so amended the bill be placed on the General Register.
The
report was adopted.
SECOND READING
OF HOUSE BILLS
H. F. No. 2128 was read for
the second time.
SECOND READING
OF SENATE BILLS
S. F. No. 1846 was read for
the second time.
INTRODUCTION AND FIRST READING OF HOUSE BILLS
The
following House Files were introduced:
Morrison introduced:
H. F. No. 2554, A bill for an act relating to natural resources; transferring responsibility for mining promotion.
The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy.
Morrison introduced:
H. F. No. 2555, A bill for an act relating to taxation; sales and use; providing a sales tax exemption on construction materials for the city of Excelsior; appropriating money.
The bill was read for the first time and referred to the Committee on Taxes.
Morrison introduced:
H. F. No. 2556, A bill for an act relating to game and fish; requiring the use of nontoxic ammunition; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 97B.
The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy.
Masin and Xiong, J., introduced:
H. F. No. 2557, A bill for an act relating to natural resources; requiring certain determinations before issuing nonferrous mining permits; amending Minnesota Statutes 2020, sections 93.001; 115.03, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 93.
The bill was read for the first time and referred to the Committee on Environment and Natural Resources Finance and Policy.
Grossell, Novotny, Erickson, Koznick and Theis introduced:
H. F. No. 2558, A bill for an act relating to public safety; revising posttraumatic stress syndrome benefits that law enforcement agencies must provide peace officers; amending Minnesota Statutes 2020, section 299A.475.
The bill was read for the first time and referred to the Committee on Public Safety and Criminal Justice Reform Finance and Policy.
Munson, Miller, Bahr and Drazkowski introduced:
H. F. No. 2559, A bill for an act relating to transportation; amending the motor vehicle registration tax; amending Minnesota Statutes 2020, section 168.013, subdivision 1a.
The bill was read for the first time and referred to the Committee on Transportation Finance and Policy.
Davids, Dettmer and Ecklund introduced:
H. F. No. 2560, A bill for an act relating to capital investment; appropriating money for the veterans home in Preston; authorizing the sale and issuance of state bonds.
The bill was read for the first time and referred to the Committee on Capital Investment.
Davids, Dettmer and Ecklund introduced:
H. F. No. 2561, A bill for an act relating to veterans affairs; appropriating money for upgrades and enhancements to the Preston state veterans home building project; requiring a report.
The bill was read for the first time and referred to the Committee on Labor, Industry, Veterans and Military Affairs Finance and Policy.
Grossell introduced:
H. F. No. 2562, A bill for an act relating to taxation; property; requiring state to pay costs of property tax judgments against state-assessed property; appropriating money; amending Minnesota Statutes 2020, section 278.12.
The bill was read for the first time and referred to the Committee on Taxes.
MESSAGES FROM
THE SENATE
The
following messages were received from the Senate:
Madam Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned:
H. F. No. 2253, A bill for an act relating to workers' compensation; adopting recommendations of the Workers' Compensation Advisory Council; amending Minnesota Statutes 2020, sections 176.101, subdivision 1; 176.136, by adding a subdivision; 176.1362, subdivisions 1, 6; 176.1363, subdivisions 1, 2, 3; 176.194, subdivisions 3, 4; 176.223, as amended; 176.351, by adding a subdivision; Laws 2020, chapter 72, section 1.
Cal R. Ludeman, Secretary of the Senate
Madam Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:
H. F. No. 1077, A bill for an act relating to housing; establishing a budget for the Minnesota Housing Finance Agency; adopting housing finance agency policy provisions; expanding eligibility requirements for certain affordable housing, workforce housing, and disaster recovery programs; increasing the agency debt limit; increasing the individual and family household income limits under the community land trusts program; expanding requirements and uses and loan amount under the rehabilitation loan program; expanding allowable uses of housing infrastructure bonds; refunding certain deposits to bond issuers; creating the lead safe homes grant program; creating the Naturally Occurring Affordable Housing grant program; establishing a task force on shelter resident rights and shelter provider practices; expanding rental lease covenants and remedies available to tenants; expanding accommodation requirements for service and support animals; expanding procedural and reporting requirements for evictions; limiting public access to pending eviction actions; expanding eligibility for certain expungements of eviction case files; permitting manufactured homes affixed to certain property to be deemed an improvement to real property; providing residents an opportunity to purchase manufactured home parks; making technical and conforming changes; appropriating money; amending Minnesota Statutes 2020, sections 12A.09, subdivision 3; 256C.02; 273.11, subdivision 12; 273.125, subdivision 8; 363A.09, subdivision 5; 462A.05, subdivisions 14, 14a, by adding a subdivision; 462A.07, subdivision 2; 462A.204, subdivision 3; 462A.22, subdivision 1; 462A.30, subdivision 9; 462A.37, subdivisions 1, 2; 462A.38, subdivision 1; 462A.39, subdivisions 2, 5; 474A.21; 484.014, subdivisions 2, 3; 504B.001, subdivision 4; 504B.135; 504B.161, subdivision 1; 504B.211, subdivisions 2, 6; 504B.241, subdivision 4; 504B.245; 504B.321; 504B.331; 504B.335; 504B.345, subdivision 1, by adding a subdivision; 504B.361, subdivision 1; 504B.371, subdivisions 4, 5, 7; 504B.375, subdivision 1; 504B.381, subdivisions 1, 5, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapters 168A; 327C; 462A; 504B; repealing Minnesota Statutes 2020, sections 168A.141; 327C.096; 504B.341.
Cal R. Ludeman, Secretary of the Senate
Hausman moved that the House refuse
to concur in the Senate amendments to H. F. No. 1077, that the
Speaker appoint a Conference Committee of 5 members of the House, and that the
House requests that a like committee be appointed by the Senate to confer on
the disagreeing votes of the two houses.
The motion prevailed.
Madam Speaker:
I hereby announce the passage by the Senate of the following House File, herewith returned, as amended by the Senate, in which amendments the concurrence of the House is respectfully requested:
H. F. No. 1079, A bill for an act relating to state government; appropriating money from outdoor heritage, clean water, parks and trails, and arts and cultural heritage funds; modifying and extending prior appropriations; modifying requirements to use money from legacy funds; modifying trail provisions; modifying provisions for joint exercise of powers; requiring reports and studies; amending Minnesota Statutes 2020, sections 85.015, subdivision 10; 85.53, subdivision 2; 97A.056, subdivisions 9, 11; 114D.50, subdivision 4; 129D.17, subdivision 2; 471.59, subdivision 1; Laws 2017, chapter 91, article 2, sections 3; 5; 6; 8; Laws 2019, First Special Session chapter 2, article 2, sections 3; 4; 5; 6; 7; 8; 9; article 4, section 2, subdivision 6; Laws 2020, chapter 104, article 1, section 2, subdivision 5.
Cal R. Ludeman, Secretary of the Senate
Lillie moved that the House refuse to
concur in the Senate amendments to H. F. No. 1079, that the
Speaker appoint a Conference Committee of 5 members of the House, and that the
House requests that a like committee be appointed by the Senate to confer on
the disagreeing votes of the two houses.
The motion prevailed.
Madam Speaker:
I hereby announce the Senate refuses to concur in the House amendments to the following Senate File:
S. F. No. 975, A bill for an act relating to higher education; providing funding and related policy changes for the Office of Higher Education, Minnesota State Colleges and Universities, the University of Minnesota, and the Mayo Clinic; creating and modifying certain student aid programs; creating a direct admissions pilot program; requiring reports; appropriating money; amending Minnesota Statutes 2020, sections 136A.101, subdivision 5a; 136A.121, subdivisions 2, 6, 9; 136A.125, subdivisions 2, 4; 136A.126, subdivisions 1, 4; 136A.1275; 136A.1791; 136A.246, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, by adding a subdivision; 136A.63, subdivision 2; 136A.645; 136A.653, subdivision 5; 136A.68; 136A.822, subdivision 12; 136A.8225; 136A.823, by adding a subdivision; 136A.827, subdivisions 4, 8; 136F.20, by adding a subdivision; 136F.245, subdivisions 1, 2, by adding a subdivision; 136F.305, subdivisions 2, 3, 4; 136F.38, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 135A; 136A; 136F; 137; repealing Minnesota Statutes 2020, sections 136A.1703; 136A.823, subdivision 2; 136F.245, subdivision 3; Laws 2014, chapter 312, article 1, section 4, subdivision 2; Minnesota Rules, parts 4830.9050; 4830.9060; 4830.9070; 4830.9080; 4830.9090.
The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:
Senators Tomassoni, Rarick, Goggin, Jasinski and Clausen.
Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.
Cal R. Ludeman, Secretary of the Senate
Bernardy moved that the House accede
to the request of the Senate and that the Speaker appoint a Conference
Committee of 5 members of the House to meet with a like committee appointed by
the Senate on the disagreeing votes of the two houses on
S. F. No. 975. The motion
prevailed.
Madam Speaker:
I hereby announce the Senate refuses to concur in the House amendments to the following Senate File:
S. F. No. 1098, A bill for an act relating to economic development; labor and industry; appropriating money for jobs and economic growth finance; classifying apprenticeship data on minors; modifying employee notice requirements; requiring a written warning upon the first finding of a violation determined not to be of a serious nature; modifying state building code applicability and fire sprinkler requirements for public places of accommodation; delaying implementation of the Public Employment Relations Board; authorizing the continued operation of businesses during the COVID-19 pandemic with the use of a COVID-19 safety plan; modifying the Minnesota business development public infrastructure grant program; extending certain job creation goals for Minnesota investment fund grants during the COVID-19 pandemic; modifying certain unemployment benefits provisions; amending Minnesota Statutes 2020, sections 12.32; 13.7905, by adding a subdivision; 116J.431, subdivisions 2, 3, by adding a subdivision; 178.012, subdivision 1; 181.032; 181.101; 181.939; 182.666, subdivision 3; 268.035, subdivision 21c; 268.085, subdivisions 2, 4a; 268.133; 268.136, subdivision 1; 326B.07, subdivision 1; 326B.106, subdivision 4; 326B.108, subdivisions 1, 3, by adding a subdivision; 326B.121, subdivision 2; 326B.133, subdivision 8; 326B.89, subdivision 4; Laws 2014, chapter 211, section 13, as amended; Laws 2017, chapter 94, article 1, section 2, subdivision 2, as amended; Laws 2019, First Special Session chapter 7, article 1, sections 2, subdivision 2, as amended; 3, subdivision 4; Laws 2020, chapter 71, article 2, sections 20; 22; 23; proposing coding for new law in Minnesota Statutes, chapters 12; 181A; repealing Minnesota Statutes 2020, sections 181.9414; 268.085, subdivision 4.
The Senate respectfully requests that a Conference Committee be appointed thereon. The Senate has appointed as such committee:
Senators Pratt, Rarick, Housley, Draheim and Eken.
Said Senate File is herewith transmitted to the House with the request that the House appoint a like committee.
Cal R. Ludeman, Secretary of the Senate
Noor moved that the House accede to the
request of the Senate and that the Speaker appoint a Conference Committee of 5
members of the House to meet with a like committee appointed by the Senate on
the disagreeing votes of the two houses on S. F. No. 1098. The motion prevailed.
Madam Speaker:
I hereby announce the passage by the
Senate of the following Senate Files, herewith transmitted:
S. F. Nos. 193, 443 and
1807.
Cal R. Ludeman,
Secretary of the Senate
FIRST
READING OF SENATE BILLS
S. F. No. 193, A bill for an act relating to health occupations; creating a psychology interjurisdictional compact; proposing coding for new law in Minnesota Statutes, chapter 148.
The bill was read for the first time.
Morrison moved that S. F. No. 193 and H. F. No. 269, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 443, A bill for an act relating to public safety; requiring disclosure of a person's status as a registered predatory offender to a hospice provider; amending Minnesota Statutes 2020, section 243.166, subdivision 4b.
The bill was read for the first time.
Edelson moved that S. F. No. 443 and H. F. No. 331, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
S. F. No. 1807, A bill for an act relating to real property; extending sunset of temporary exception for certain filings of mortgages and deeds of trust; amending Laws 2020, chapter 118, section 4.
The bill was read for the first time.
Hollins moved that S. F. No. 1807 and H. F. No. 2245, now on the General Register, be referred to the Chief Clerk for comparison. The motion prevailed.
MOTIONS AND RESOLUTIONS
TAKEN FROM
TABLE
Stephenson
moved that S. F. No. 972 be taken from the table. The motion prevailed.
S. F. No. 972 was reported
to the House.
Stephenson moved to amend
S. F. No. 972, the third engrossment, as follows:
Delete everything after the enacting
clause and insert the following language of H. F. No. 1031, the
second engrossment:
"
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.
|
|
|
APPROPRIATIONS |
|
|
|
|
Available for the Year |
|
|
|
|
Ending June 30 |
|
|
|
|
2022 |
2023 |
Sec. 2. DEPARTMENT
OF COMMERCE |
|
|
|
|
Subdivision 1. Total
Appropriation |
|
$27,603,000 |
|
$26,920,000 |
Appropriations
by Fund |
||
|
2022 |
2023
|
General |
24,267,000
|
24,061,000
|
Special Revenue |
2,570,000
|
2,093,000
|
Workers' Compensation Fund |
766,000
|
766,000
|
The amounts that may be spent for each
purpose are specified in the following subdivisions.
Subd. 2. Financial
Institutions |
|
1,923,000
|
|
1,941,000
|
Appropriations
by Fund |
||
General |
1,923,000
|
1,941,000
|
(a) $400,000 each year is for a grant to
Prepare and Prosper to develop, market, evaluate, and distribute a financial
services inclusion program that (1) assists low-income and financially underserved
populations to build savings and strengthen credit, and (2) provides 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 |
|
9,346,000
|
|
8,821,000
|
(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
|
|
3,443,000
|
|
3,183,000
|
Appropriations
by Fund |
||
General |
1,073,000
|
1,090,000
|
Special Revenue |
2,370,000
|
2,093,000
|
$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
|
|
6,231,000
|
|
5,632,000
|
Appropriations
by Fund |
||
General |
5,825,000
|
5,426,000
|
Workers' Compensation |
206,000
|
206,000
|
Special Revenue Fund |
200,000
|
-0-
|
(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
|
|
6,660,000
|
|
7,343,000
|
Appropriations
by Fund |
||
General |
6,100,000
|
6,783,000
|
Workers' Compensation |
560,000
|
560,000
|
(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 b