Commerce law modifies insurance, financial institution, commercial, consumer and telecommunications statutes

A new law modifies statutes regulating various types of commerce, including insurance, financial institutions, telecommunications, and consumer protections. Among topics addressed are medical debt, gender-affirming care, and social media.

It also contains miscellaneous liquor provisions changing conditions of sale in several municipalities and extends the open enrollment period for Medicare supplement insurance from Aug. 1, 2025, to Aug. 1, 2026.

Sponsored by Rep. Zack Stephenson (DFL-Coon Rapids) and Sen. Matt Klein (DFL-Mendota Heights), the law is effective Jan. 1, 2025, unless otherwise noted.

HF4077/SF4097*/CH114

Medical debt

Effective Oct. 1, 2024, “a health care provider must not deny medically necessary health treatment or services to a patient or any member of the patient's family or household because of current or previous outstanding medical debt owed by the patient or any member of the patient's family or household to the health care provider, regardless of whether the health treatment or service may be available from another health care provider.”

The health care provider may require the patient to enroll in a “reasonable” payment plan for the outstanding medical debt owed. The patient must communicate their situation to the health care provider and pay an amount they can afford.

Health care providers also have new rules regarding how they must handle billing errors, including a prohibition against billing the patient for any health treatment or service subject to review for potential billing errors until after the review is complete and any billing errors are corrected. (Art. 3, Secs. 25-29)

Consumer protections

The “Prohibiting Social Media Manipulation Act” will take effect July 1, 2025, and require social media platforms to be transparent about how they use “algorithmic ranking systems” to determine the content it suggests to users.

Other transparency requirements will include “publicly and conspicuously posting” on the platform’s website explanations of how the social media platform limits excessive account interactions, how it assesses users’ expressed preferences regarding content, and explanations of how the platform determines whether a notification is time sensitive and how many time sensitive and non-time-sensitive notifications are sent to users.

The law establishes that a retailer must only sell an aerosol duster that contains 1,1-difluoroethane (DFE) from behind the counter, a purchaser must be at least age 21, and limits a single transaction to three cans of an aerosol duster that contains DFE. An aerosol duster manufactured after May 31, 2025, cannot be sold in Minnesota unless it clearly warns against the dangers of intentionally misusing duster aerosol products.

Changes to regulations for contracts subject to automatic renewal and continuous service are in the law.

Among the provisions: a person is permitted to cancel memberships in clubs unilaterally and at the person’s exclusive discretion, by giving notice of termination at any time. Clubs must include notices in contracts advising new members of their new rights of termination. The law also expands consumer rights regarding automatic renewal subscriptions and prohibits specific conduct by sellers related to indefinite subscriptions. It provides that a consumer has a right to terminate an indefinite subscription agreement at any time.

Further, a seller making an offer for an indefinite subscription agreement that includes a free trial lasting more than 30 days must, no fewer than five days and no more than 30 days before the end of any such free trial, notify the consumer of the consumer's option to cancel the free trial before the end of the trial period.

Beginning Oct. 1, 2024, collection agencies will have new restrictions on how they collect medical debt. Several actions will be prohibited, including communicating with debtors in a misleading or deceptive manner by falsely using the stationery of a lawyer, or forms or instruments which only lawyers are authorized to prepare, or instruments which simulate the form and appearance of judicial process. They will also be prohibited from communicating with a debtor about medical debt by use of an automatic telephone dialing system or an artificial or prerecorded voice after the debtor expressly informs the collecting party to cease such communication. (Art. 3, Secs. 47, 51, 53-67, 77-81)

Effective Aug. 1, 2024, the law also:

• prohibits deceptive marketing related to vapor products, including selling products imitating a food or brand of food commonly marketed to minors; school supplies commonly used by minors; and a character, personality, or symbol known to appeal to minors;

• prohibits the purchase, possession, importation, manufacturing, selling, holding for sale, or distributing a cellular telephone case, stand, or cover that is a likeness of or reasonably appears to be a firearm;

• establishes regulations affecting virtual currency kiosks, including that operators must disclose the material risks of virtual transactions, fees charged, and transaction limits. Cancellations and refunds of transactions will be permitted under certain circumstances;

• strengthens protections for students taking out student loans, including servicers must make several disclosures to borrowers on income-driven repayment programs;

• prohibits tree trimmers and restoration and mitigation services from charging excessive prices following severe weather;

• vehicle repair shops must conspicuously display a sign stating the shop is required to provide a written estimate for repairs costing more than $100 and that the final price cannot exceed the written estimate by more than 10% without customer authorization;

• prohibits unfair real estate service agreements, such as those that are overly restrictive or deceptive;

• modifies the types of personal property exempt from court-ordered seizure, garnishment, or sale; and

• protects an independent contractor from being discharged or otherwise disciplined by an employer for having wages garnished (Art. 3, Secs. 1-24, 40-43, 48-49, 52, 82, 84-94, 102)

Gender-affirming care

A health plan must cover medically necessary gender-affirming care or require treatment of medically necessary care that is defined in the law as “health care services appropriate in terms of type, frequency, level, setting, and duration to the enrollee’s diagnosis or condition and diagnostic testing and preventative services. Medically necessary care must be consistent with generally accepted practice parameters as determined by health care providers in the same or similar general specialty as typically manages the condition, procedure, or treatment at issue and must: (1) help restore or maintain the enrollee’s health; or (2) prevent deterioration of the enrollee’s condition.”

A nonprofit or a closely held for-profit religious organization will be exempt from covering gender-affirming care based on religious objections. If the exempt organization provides partial coverage, requires the notice to specify services not covered. (Art. 1, Secs. 7-8)

Insurance

Effective Oct. 1, 2024, no contract or policy of long-term disability insurance limiting the duration of coverage for mental health or substance use disorders can be offered in Minnesota without a disclosure provided at the time of application that includes specific information about the limited duration of coverage.

An insurer can, effective Aug. 1, 2024, refuse to renew a policy of homeowner’s insurance if the insured had three or more covered losses each over $10,000 resulting from lightning, wind, rain, or hail during a five-year period immediately preceding the refusal to renew. This section also specifies the obligations of an insurer that elects to not renew a policy of homeowner’s insurance.

Also effective Aug. 1, 2024, the law increases the number of counties a township municipal fire insurance company may be authorized to write business in and provides that property will continue to be insured for the duration of the policy after a merger. (Art. 1, Secs. 2, 9, 11-12)

Financial institutions

Effective Aug. 1, 2024, the law creates several requirements for financial institutions related to safeguarding customer information, including that it must develop, implement, and maintain a comprehensive information security program.

The law also makes various definition and technical changes to residential mortgage loans and residential real estate statutes. For example, it amends residential mortgage originator licensing requirements and residential mortgage servicer licensing requirements and raises the surety bond amount that a residential mortgage originator license must file with the department and continuously maintain.

Related to bail bonds, the law, in part, provides certain premiums and requirements for collateral related to bail bonds, prohibits producers from solicitating outside of location where incarcerated persons are confined, and prohibits paying fees to a jailer, police officer, judge, or public official. (Art. 2, Secs. 1-11, 32-36)

Telecommunications

A telephone company or telecommunications carrier cannot refuse to provide a prorated refund of payment made in advance by a customer upon cancellation of telecommunications service.

The new law specifies the conditions under which a municipality can acquire a telephone exchange through condemnation and deletes the requirement that such acquisitions must be approved by a vote of at least 65 percent of a city’s voters.

“Net neutrality” rules are established, including prohibiting internet service providers from impairing or degrading traffic based on content, blocking lawful content, applications, services, or nonharmful devices, and favoring some internet traffic over other traffic in exchange for monetary or other consideration from a third party. (Art. 4, Secs. 1-3)

Liquor

In addition to redefining the size of a hotel for statutory liquor definitions, the law permits a municipality to issue an on-sale malt liquor license to a resort notwithstanding any law, local ordinance, or charter provision. Sales will be permitted to people staying at the resort and their guests.

The law also contains local provisions that take effect upon local approval:

• permits Shakopee and Stillwater to issue social district licenses beginning Aug. 31, 2025;

• expands authority for the city of Minneapolis to issue on-sale intoxicating liquor licenses to all park board premises;

• allow the liquor license to be issued to a business holding a concessions contract with the Thai Cultural Council of Minnesota;

• allows the cities of Litchfield and Watkins to issue an on-sale wine or malt liquor license for town ball games played at ballparks on school grounds, notwithstanding a prohibition on possession of alcoholic beverages on those grounds, and with the approval of the local school board; and

• authorizes the city of Eagan to issue up to three on-sale intoxicating liquor licenses at the Viking Lakes development. (Art. 5, Secs. 1-9)

SF4097* / HF4077 / CH114