This bill establishes a Task Force on Homeowners and Commercial Property Insurance in Minnesota. The task force is designed to evaluate and provide recommendations on insurance affordability, particularly for single-family housing, multifamily rental housing, cooperatives, and small businesses. The goal is to prevent disruptions and ensure the long-term sustainability of Minnesota’s housing and business infrastructure.

Key Provisions of the Bill:

1. Task Force Membership:

   • The task force will comprise 13 members, including representatives from the Minnesota Department of Commerce, the legislature (House and Senate, majority and minority parties), and industry stakeholders such as the Insurance Federation of Minnesota, Big I Minnesota, Minnesota Realtors, and housing organizations. A member with climate science expertise is also required.
   • Appointing authorities must make appointments by July 15, 2025.

2. Duties & Scope:

   • The task force will analyze and provide recommendations for strengthening and stabilizing homeowners' and commercial property insurance.
   • Key areas of review include:
     • Risk mitigation methodologies
     • Liability laws affecting insurance costs
     • Notice requirements for coverage changes and enforcement
     • Public transparency of insurance costs
     • The reinsurance market
     • The feasibility of expanding state-supported insurance programs, such as a catastrophic reinsurance fund
     • Factors increasing claim costs (e.g., fraud, inflation, climate change, and contractor practices)

3. Meetings & Administration:

   • The Legislative Coordinating Commission will convene the first meeting by August 15, 2025.
   • The task force will elect a chair or co-chairs and meet regularly as needed.

4. Report Requirement:

   • A report must be submitted by February 15, 2026, to the Commissioners of Commerce, Minnesota Housing, and Employment and Economic Development, as well as legislative committees.
   • The report will include:
     • A summary of task force activities
     • Findings and recommendations
     • Suggested administrative changes to relevant agencies
     • Draft legislation for any proposed policy changes

5. Task Force Expiration:

   • The task force will expire upon submission of the final report.

Conclusion:

If enacted, this bill will create a temporary task force tasked with studying and proposing measures to enhance stability and affordability in the property insurance market, addressing concerns such as rising costs, industry transparency, and reinsurance mechanisms. The task force will submit recommendations and draft legislation by early 2026, after which it will be disbanded.