1.1A bill for an act1.2relating to judgments; regulating assigned consumer debt default judgments; 1.3providing a limitation period to bring an action arising out of consumer debt; 1.4setting the bail amount for failure to comply with judgment debtor disclosure 1.5requirements in consumer debt cases;amending Minnesota Statutes 2012, 1.6sections 491A.02, subdivision 9; 550.011; 588.04; proposing coding for new law 1.7in Minnesota Statutes, chapters 541; 548.1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.9    Section 1. Minnesota Statutes 2012, section 491A.02, subdivision 9, is amended to read:1.10    Subd. 9. Judgment debtor disclosure. Notwithstanding any contrary provision in 1.11rule 518 of the Conciliation Court Rules, unless the parties have otherwise agreed, if a 1.12conciliation court judgment or a judgment of district court on removal from conciliation 1.13court has been docketed in district court, the judgment creditor's attorney as an officer of 1.14the court may or the district court in the county in which the judgment originated shall, 1.15upon request of the judgment creditor, order the judgment debtor to mail to the judgment 1.16creditor information as to the nature, amount, identity, and locations of all the debtor's 1.17assets, liabilities, and personal earning. The information must be provided on a form 1.18prescribed by the Supreme Court, and the information shall be sufficiently detailed to 1.19enable the judgment creditor to obtain satisfaction of the judgment by way of execution 1.20on nonexempt assets and earnings of the judgment debtor. The order must contain a 1.21notice that failure to complete the form and mail it to the judgment creditor within ten 1.22days after service of the order may result in a citation for civil contempt of court. Cash 1.23bail posted as a result of being cited for civil contempt of court order under this section 1.24may be ordered payable to the creditor to satisfy the judgment, either partially or fully, 1.25subject to section 588.04, paragraph (b).2.1EFFECTIVE DATE.This section is effective August 1, 2013.2.2    Sec. 2. [541.053] LIMITATION OF ACTIONS BASED ON CONSUMER DEBT.2.3Notwithstanding section 541.31, subdivision 1, actions upon an obligation arising 2.4out of a consumer debt primarily for personal, family, or household purposes shall be 2.5commenced within six years. After its expiration, the statute of limitations is not revived 2.6by the collection of a payment on an account, a discharge in a bankruptcy proceeding, or 2.7an oral or written reaffirmation of the debt.2.8EFFECTIVE DATE.This section is effective August 1, 2013.2.9    Sec. 3. [548.101] ASSIGNED CONSUMER DEBT DEFAULT JUDGMENTS.2.10(a) A party entitled to a judgment by default in a conciliation court or district court 2.11action upon an assigned obligation arising out of any consumer debt that is primarily for 2.12personal, family, or household purposes and in default at the time of assignment shall apply 2.13to the court and submit, in addition to the request, application, or motion for judgment:2.14(1) a copy of the written contract between the debtor and original creditor or, if no 2.15written contract exists, other admissible evidence establishing the terms of the account 2.16relationship between the debtor and the original creditor, including the moving party's 2.17entitlement to the amounts described in clause (4). If only the balance owed at the time 2.18the debt was charged off or first assigned is claimed to be owed, evidence may include 2.19a monthly or periodic billing statement;2.20(2) admissible evidence establishing that the defendant owes the debt;2.21(3) the last four numbers of the debtor's Social Security number, if known;2.22(4) admissible evidence establishing that the amount claimed to be owed is accurate, 2.23including the balance owed at the time the debt was charged off or first assigned to another 2.24party by the original creditor and, if included in the request, application, or motion for 2.25judgment, a breakdown of any fees, interest, and charges added to that amount;2.26(5) admissible evidence establishing a valid and complete chain of assignment of the 2.27debt from the original creditor to the party requesting judgment, including documentation 2.28or a bill of sale evidencing the assignment with evidence that the particular debt at issue 2.29was included in the assignment referenced in the documentation or bill of sale;2.30(6) in district court cases, proof that a summons and complaint were properly served 2.31on the debtor and that the debtor did not serve a timely answer or, in conciliation court 2.32cases, proof that the party seeking the judgment or the party's attorney used reasonable 2.33efforts to provide the court administrator with the correct address for the debtor; and3.1(7) in district court cases, proof that the party requesting the default judgment or 3.2the party's attorney mailed a notice of intent to apply for default judgment to the debtor. 3.3The notice must be mailed to the debtor at the debtor's last known address at least 14 3.4days before the request, application, or motion for default, and must be substantially in 3.5the following form:

3.63.7Notice of Intent to Apply for Default JudgmentCase Type - Consumer Credit Contract3.8STATE OF MINNESOTADISTRICT COURT3.9COUNTY OF 
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                     						JUDICIAL DISTRICT3.103.11
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                     						Plaintiff,NOTICE OF INTENT TO APPLY FOR DEFAULT JUDGMENT3.12vs.3.13
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                     						Defendant.Court File No. 
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                     						3.143.15_______ [Plaintiff] has sued you to collect the following consumer debt that you originally owed to ______ [original creditor]:3.16_______[original creditor]3.17_______[last four digits of the debtor's account number]3.18_______[amount of debt]3.19_______[date of charge off or account closing date]3.203.213.223.233.243.253.26_______ [Plaintiff] served this lawsuit on you on _______ [date]. Under Minnesota law, a lawsuit may be started against you even though it has not yet been filed in court and the court has no record of this lawsuit or this paperwork. You are in default because you did not serve a written Answer on time. _______ [Plaintiff] will ask the Court to enter a judgment against you without any further court proceedings, unless you mail a written Answer or written response contesting the debt within 14 days from the date below. A judgment is a court order that you must pay a certain amount of money.3.27Dated:
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                     						LAW FIRM, P.A.3.28
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                     						3.293.30Attorney Name, ID#3.31Address3.32Phone

3.33(b) If admissible, the same item of evidence or document may be provided to satisfy 3.34more than one requirement under paragraph (a), clauses (1) to (5). A court may permit the 3.35foundation for documents submitted under paragraph (a) to be established by an affidavit.3.36(c) Except in conciliation court cases or if a hearing is required under court rules, 3.37the court may either:3.38(1) hold a hearing before entry of a default judgment; or 3.39(2) enter an administrative default judgment without a hearing if the court determines 3.40that the evidence submitted satisfies the requirements of paragraph (a).4.1EFFECTIVE DATE.This section is effective September 1, 2013, and applies to 4.2requests, applications, and motions for default judgments and conciliation court cases 4.3filed on or after that date.4.4    Sec. 4. Minnesota Statutes 2012, section 550.011, is amended to read:4.5550.011 JUDGMENT DEBTOR DISCLOSURE.4.6Unless the parties have otherwise agreed, if a judgment has been docketed in district 4.7court for at least 30 days, and the judgment is not satisfied, the judgment creditor's attorney 4.8as an officer of the court may or the district court in the county in which the judgment 4.9originated shall, upon request of the judgment creditor, order the judgment debtor to mail 4.10by certified mail to the judgment creditor information as to the nature, amount, identity, 4.11and locations of all the debtor's assets, liabilities, and personal earnings. The information 4.12must be provided on a form prescribed by the Supreme Court, and the information shall be 4.13sufficiently detailed to enable the judgment creditor to obtain satisfaction of the judgment 4.14by way of execution on nonexempt assets and earnings of the judgment debtor. The order 4.15must contain a notice that failure to complete the form and mail it to the judgment creditor 4.16within ten days after service of the order may result in a citation for civil contempt of 4.17court. Cash bail posted as a result of being cited for civil contempt of court order under 4.18this section may be ordered payable to the creditor to satisfy the judgment, either partially 4.19or fully, subject to section 588.04, paragraph (b).4.20EFFECTIVE DATE.This section is effective August 1, 2013.4.21    Sec. 5. Minnesota Statutes 2012, section 588.04, is amended to read:4.22588.04 ARREST; ORDER TO SHOW CAUSE.4.23(a) In cases of constructive contempt, an affidavit of the facts constituting the 4.24contempt shall be presented to the court or officer, who may either issue a warrant of arrest 4.25to bring the person charged to answer or, without a previous arrest, upon notice, or upon 4.26an order to show cause, which may be served by a sheriff or other officer in the same 4.27manner as a summons in an action, may commit the person to jail, impose a fine, or both, 4.28and make such order thereupon as the case may require.4.29(b) When the underlying case involves an obligation arising out of a consumer debt 4.30primarily for personal, family, or household purposes, and the contempt is a failure to 4.31comply with judgment debtor disclosure requirements under section 491A.02, subdivision 4.329, or 550.011, bail must be set at $50. For a subsequent contempt for a failure to disclose in 5.1the same action, bail must be an amount set by the court after considering aggravating and 5.2mitigating factors. Bail posted under this section must be returned to the judgment debtor.5.3EFFECTIVE DATE.This section is effective August 1, 2013.