HF 2569

as introduced - 87th Legislature (2011 - 2012) Posted on 02/29/2012 01:34pm

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; 332B.02, subdivision 13.

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) attorneys at law, new text begin if debt management services are provided exclusively as an
ancillary matter to the attorney's primary scope of representation of a client; new text end 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 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 include new text begin
attorneys at law, if debt settlement services are provided exclusively as an ancillary matter
to the attorney's primary scope of representation of a client, and other new text end persons listed
in section 332A.02, subdivision 8, clauses (1) to (10), or a debt management services
provider.