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HF 2569

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/12/2012 03:43pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/29/2012
1st Engrossment Posted on 03/12/2012

Current Version - 1st Engrossment

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A bill for an act
relating to debt management and debt settlement; clarifying exemption for
attorneys at law; amending Minnesota Statutes 2010, sections 332A.02,
subdivision 8, by adding a subdivision; 332B.02, subdivision 13, by adding a
subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 332A.02, subdivision 8, is amended to
read:


Subd. 8.

Debt management services provider.

"Debt management services
provider" means any person offering or providing debt management services to a debtor
domiciled in this state, regardless of whether or not a fee is charged for the services and
regardless of whether the person maintains a physical presence in the state. This term
includes any person to whom debt management services are delegated, and does not
include services performed by the following when engaged in the regular course of their
respective businesses and professions:

(1)new text begin exemptnew text end attorneys at law, escrow agents, accountants, broker-dealers in securities;

(2) state or national banks, credit unions, trust companies, savings associations,
title insurance companies, insurance companies, and all other lending institutions duly
authorized to transact business in Minnesota;

(3) persons who, as employees on a regular salary or wage of an employer not
engaged in the business of debt management, perform credit services for their employer;

(4) public officers acting in their official capacities and persons acting as a debt
management services provider pursuant to court order;

(5) any person while performing services incidental to the dissolution, winding up,
or liquidation of a partnership, corporation, or other business enterprise;

(6) the state, its political subdivisions, public agencies, and their employees;

(7) collection agencies, provided that the services are provided to a creditor;

(8) "qualified organizations" designated as representative payees for purposes of the
Social Security and Supplemental Security Income Representative Payee System and the
federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508;

(9) accelerated mortgage payment providers. "Accelerated mortgage payment
providers" are persons who, after satisfying the requirements of sections 332.30 to
332.303, receive funds to make mortgage payments to a lender or lenders, on behalf
of mortgagors, in order to exceed regularly scheduled minimum payment obligations
under the terms of the indebtedness. The term does not include: (i) persons or entities
described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and
thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to
make loans under section 47.20, subdivision 1. For purposes of this clause and sections
332.30 to 332.303, "lender" means the original lender or that lender's assignee, whichever
is the current mortgage holder;

(10) trustees, guardians, and conservators; and

(11) debt settlement services providers.

Sec. 2.

Minnesota Statutes 2010, section 332A.02, is amended by adding a subdivision
to read:


new text begin Subd. 10a. new text end

new text begin Exempt attorney at law. new text end

new text begin "Exempt attorney at law" means an attorney
who:
new text end

new text begin (1) is licensed or otherwise authorized to practice law in this state;
new text end

new text begin (2) does not have a business relationship with the debt management services provider
that involves the offering or provision of debt management services to debtors; and
new text end

new text begin (3) provides debt management services as an ancillary matter to the primary purpose
of the attorney's practice.
new text end

Sec. 3.

Minnesota Statutes 2010, section 332B.02, subdivision 13, is amended to read:


Subd. 13.

Debt settlement services provider.

"Debt settlement services provider"
means any person offering or providing debt settlement services to a debtor domiciled
in this state, regardless of whether or not a fee is charged for the services and regardless
of whether the person maintains a physical presence in the state. The term includes any
person to whom debt settlement services are delegated. The term shall not includenew text begin an
exempt attorney at law and
new text end persons listed in section 332A.02, subdivision 8, clauses (1) to
(10), or a debt management services provider.

Sec. 4.

Minnesota Statutes 2010, section 332B.02, is amended by adding a subdivision
to read:


new text begin Subd. 13a. new text end

new text begin Exempt attorney at law. new text end

new text begin "Exempt attorney at law" means an attorney
who:
new text end

new text begin (1) is licensed or otherwise authorized to practice law in this state;
new text end

new text begin (2) does not have a business relationship with the debt settlement services provider
that involves the offering or provision of debt settlement services to debtors; and
new text end

new text begin (3) provides debt settlement services as an ancillary matter to the primary purpose
of the attorney's practice.
new text end