Purpose of the Bill

The Minnesota legislative bill aims to revise and enhance various provisions related to financial institutions, insurance, business corporations, and administrative rulemaking. It intends to update the laws governing these sectors to reflect current practices and include new regulations to ensure a comprehensive legal framework.

Main Provisions

• Financial Institutions: The bill modifies rules concerning how financial institutions maintain customer data, particularly for those servicing fewer than 5,000 consumers. Additionally, it ensures consumer protection in the event of account transfers or closures.

• Insurance Regulations: The bill adds rules for long-term care insurance, Medicare supplement insurance, and insurance holding companies. It adopts the Uniform Special Deposits Act to standardize certain deposit practices.

• Business Corporations: Updates to the Minnesota Business Corporations Act include technical adjustments and the introduction of new regulations for corporations, aimed at streamlining processes and improving governance.

• Garnishment Forms: Modifications to garnishment forms and procedures are included to improve clarity and compliance with existing laws.

• Department of Commerce Authority: The bill empowers the Department of Commerce with additional authority for administrative rulemaking and enforcement, ensuring better implementation of the revised laws.

Significant Changes to Existing Law

• Interest Rates: The bill sets new limits on interest rates for conventional and cooperative apartment loans aligned with federal regulations. Contractual provisions for forward commitments and interest rate commitments are updated to protect borrowers.

• Account Management: Financial institutions are required to provide advance notice for account transfers or closures, ensuring that any new account terms are consented to by the account holder.

• Document Requirements: Conventional loan documentation must now include clearer provisions and be printed in legible formats, enhancing borrower comprehension.

• Adoption of the Uniform Special Deposits Act: This introduces a framework for managing special deposits, resolving issues of beneficiary rights, and clarifying bank duties.

Relevant Terms

• Financial institutions, insurance, long-term care insurance, Medicare supplement insurance, insurance holding companies, Minnesota Business Corporations Act, garnishment, administrative rulemaking, interest rates, account management, Uniform Special Deposits Act.