Commerce Finance and Policy

This bill updates Minnesota telecommunications regulations by clarifying rules for telephone companies, including requirements for law enforcement access to call information, annual reporting, and customer pricing notices. It directly affects telephone service providers and their customers by establishing clearer obligations for how companies must handle service requests, billing information, and compliance with federal universal service programs for schools and libraries. The legislation also repeals several outdated statutes related to public payphones and other legacy regulations to simplify the legal framework governing telephone services in the state.

HF 3709 allows Minnesota banks and credit unions to offer virtual-currency custody services, meaning they can safely hold customers' cryptocurrency or the keys to access it. The bill requires these institutions to follow strict safety rules - including cybersecurity measures, risk management policies, and asset segregation - to protect customer holdings separately from the institution's own assets. Financial institutions must also notify regulators 60 days before starting these services and comply with existing state and federal laws. This change directly affects banks, credit unions, and cryptocurrency users in Minnesota, enabling regulated custody options without altering how virtual currency is legally treated.

HF 3437 modifies Minnesota's rules on residential mortgage loan fees and penalties. It clarifies that these rules apply only to loans made primarily for personal, family, or household purposes, not all residential loans. The bill affects both in-state and out-of-state mortgage originators operating in Minnesota. The changes take effect August 1, 2026, applying to loans executed on or after that date. This amendment narrows the scope of existing fee and penalty restrictions.

HF 1606 prohibits websites, apps, software, or programs from allowing users to access, download, or use technology that alters images or videos to reveal private body parts (defined as "nudification"). It directly affects platform operators who host such tools and individuals whose images are altered without consent. The bill creates civil lawsuits for victims, allowing them to seek triple damages, punitive penalties, and attorney fees, while imposing $500,000 civil penalties per violation on violators. It becomes effective August 1, 2025, targeting the unauthorized use of image-altering technology that could harm individuals' privacy.

This bill establishes a trusted contact program for financial services customers in Minnesota to help prevent and address financial exploitation and fraud. It allows customers to designate a trusted adult contact who can be reached by financial institutions in emergencies, when contact is lost, or when fraud is suspected. The bill also permits financial institutions to report suspected fraud or exploitation to law enforcement without liability and limits legal responsibility for both institutions and trusted contacts who act in good faith. Additionally, it allows banks to offer optional account features that let trusted contacts view account activity and set transaction limits for enhanced security.