The bill modifies the automobile theft prevention surcharge and the allocation of certain revenues related to automobile insurance in Minnesota. Specifically, it increases the surcharge rate from 50% to 60% of coverage for each policy of automobile insurance that provides comprehensive coverage. The bill mandates that insurers collect this surcharge, which is not considered a premium for tax or commission purposes, and remit the revenue to the commissioner of revenue for the automobile theft prevention program. Additionally, it clarifies the types of vehicles covered under this insurance and establishes an effective date of July 1, 2026, for these changes.

Furthermore, the bill amends the allocation of funds from the automobile theft prevention account. It stipulates that $1,300,000 must be transferred annually to the insurance fraud prevention account and $900,000 to the Minnesota victims of crime account. The bill also adjusts the threshold for revenues in excess of $1,300,000 to $2,200,000, which will be directed towards the automobile theft prevention program. This section also has an effective date of July 1, 2026.

Statutes affected:
Introduction: 297I.11