HF 2640

1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to insurance; creating a law enforcement 
  1.3             agency to deal with insurance fraud; prescribing its 
  1.4             powers and duties; establishing insurance assessments 
  1.5             to fund the insurance fraud prevention account; 
  1.6             transferring duties; amending Minnesota Statutes 2002, 
  1.7             sections 45.0135, subdivision 6, by adding 
  1.8             subdivisions; 299A.75, subdivision 1; 626.84, 
  1.9             subdivision 1; repealing Minnesota Statutes 2002, 
  1.10            section 45.0135, subdivisions 1, 2. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12                             ARTICLE 1
  1.13                     INSURANCE FRAUD PREVENTION
  1.14     Section 1.  Minnesota Statutes 2002, section 45.0135, is 
  1.15  amended by adding a subdivision to read: 
  1.16     Subd. 2a.  [AUTHORIZATION.] The commissioner may appoint 
  1.17  peace officers, as defined in section 626.84, subdivision 1, 
  1.18  paragraph (c), and establish a law enforcement agency, as 
  1.19  defined in section 626.84, subdivision 1, paragraph (h), known 
  1.20  as the Division of Insurance Fraud Prevention, to conduct 
  1.21  investigations, and to make arrests under sections 629.30 and 
  1.22  629.34.  The jurisdiction of the law enforcement agency is 
  1.23  limited to offenses related to insurance fraud. 
  1.24     Sec. 2.  Minnesota Statutes 2002, section 45.0135, is 
  1.25  amended by adding a subdivision to read: 
  1.26     Subd. 2b.  [DUTIES.] The Division of Insurance Fraud 
  1.27  Prevention shall: 
  1.28     (1) review notices and reports of insurance fraud submitted 
  2.1   by authorized insurers, their employees, and agents or 
  2.2   producers; 
  2.3      (2) respond to notifications or complaints of suspected 
  2.4   insurance fraud generated by other law enforcement agencies, 
  2.5   state or federal governmental units, or any other person; 
  2.6      (3) initiate inquiries and conduct investigations when the 
  2.7   division has reason to believe that insurance fraud has been or 
  2.8   is being committed; and 
  2.9      (4) report incidents of alleged insurance fraud disclosed 
  2.10  by its investigations to appropriate law enforcement agencies, 
  2.11  including, but not limited to, the attorney general, county 
  2.12  attorneys, or any other appropriate law enforcement or 
  2.13  regulatory agency, and shall assemble evidence, prepare charges, 
  2.14  and otherwise assist any law enforcement authority having 
  2.15  jurisdiction. 
  2.16     Sec. 3.  Minnesota Statutes 2002, section 45.0135, is 
  2.17  amended by adding a subdivision to read: 
  2.18     Subd. 2c.  [ARRESTS AND INVESTIGATIONS.] The initial 
  2.19  processing of a person arrested by the Division of Insurance 
  2.20  Fraud Prevention for an offense within its jurisdiction is the 
  2.21  responsibility of the Division of Insurance Fraud Prevention 
  2.22  unless otherwise directed by the law enforcement agency with 
  2.23  primary jurisdiction.  Subsequent investigation shall be the 
  2.24  responsibility of the Division of Insurance Fraud Prevention 
  2.25  unless otherwise directed by the law enforcement agency with 
  2.26  primary jurisdiction.  At the request of the primary 
  2.27  jurisdiction, the Division of Insurance Fraud Prevention may 
  2.28  assist in a subsequent investigation being carried out by the 
  2.29  primary jurisdiction. 
  2.30     Sec. 4.  Minnesota Statutes 2002, section 45.0135, is 
  2.31  amended by adding a subdivision to read: 
  2.32     Subd. 2d.  [POLICY FOR NOTICE OF INVESTIGATIONS.] The 
  2.33  Division of Insurance Fraud Prevention must develop a policy for 
  2.34  notifying the law enforcement agency with primary jurisdiction 
  2.35  when it has initiated investigation of any person within the 
  2.36  jurisdiction of that agency. 
  3.1      Sec. 5.  Minnesota Statutes 2002, section 45.0135, is 
  3.2   amended by adding a subdivision to read: 
  3.3      Subd. 2e.  [CHIEF LAW ENFORCEMENT OFFICER.] The 
  3.4   commissioner shall appoint a peace officer employed full time to 
  3.5   be the chief law enforcement officer and to be responsible for 
  3.6   the management of the Division of Insurance Fraud Prevention.  
  3.7   The chief law enforcement officer shall possess the necessary 
  3.8   police and management experience to manage a law enforcement 
  3.9   agency.  The chief law enforcement officer may appoint, 
  3.10  discipline, and discharge all employees of the Division of 
  3.11  Insurance Fraud Prevention.  All police managerial and 
  3.12  supervisory personnel must be full-time employees of the 
  3.13  Division of Insurance Fraud Prevention.  Supervisory personnel 
  3.14  must be on duty and available any time peace officers of the 
  3.15  Division of Insurance Fraud Prevention are on duty. 
  3.16     Sec. 6.  Minnesota Statutes 2002, section 45.0135, is 
  3.17  amended by adding a subdivision to read: 
  3.18     Subd. 2f.  [COMPLIANCE.] Except as otherwise provided in 
  3.19  this section, the Division of Insurance Fraud Prevention shall 
  3.20  comply with all statutes and administrative rules relating to 
  3.21  the operation and management of a law enforcement agency. 
  3.22     Sec. 7.  Minnesota Statutes 2002, section 45.0135, 
  3.23  subdivision 6, is amended to read: 
  3.24     Subd. 6.  [INSURANCE FRAUD PREVENTION ACCOUNT.] The 
  3.25  insurance fraud prevention account is created in the state 
  3.26  treasury.  It consists of any appropriations made by law money 
  3.27  deposited as described in subdivision 7.  Money in this fund is 
  3.28  appropriated to the commissioner of commerce for the purposes 
  3.29  specified in this section and sections 60A.951 to 60A.956. 
  3.30     Sec. 8.  Minnesota Statutes 2002, section 45.0135, is 
  3.31  amended by adding a subdivision to read: 
  3.32     Subd. 7.  [ASSESSMENT.] Each insurer authorized to sell 
  3.33  insurance in the state of Minnesota shall remit an assessment to 
  3.34  the commissioner for deposit in the insurance fraud prevention 
  3.35  account on or before June 1 of each year.  The amount of the 
  3.36  assessment shall be based on the insurer's total assets and on 
  4.1   the insurer's total written Minnesota premium, for the preceding 
  4.2   fiscal year, as reported pursuant to section 60A.13.  The 
  4.3   assessment is calculated as follows: 
  4.4             Total Assets                      Assessment
  4.5        Less than $100,000,000                   $  200
  4.6        $100,000,000 to $1,000,000,000           $  750
  4.7        Over $1,000,000,000                      $2,000
  4.8        
  4.9        Minnesota Written Premium              Assessment 
  4.10       Less than $10,000,000                    $  200
  4.11       $10,000,000 to $100,000,000              $  750
  4.12       Over $100,000,000                        $2,000
  4.13     For purposes of this subdivision, the following entities 
  4.14  are not considered to be insurers authorized to sell insurance 
  4.15  in the state of Minnesota:  risk retention groups; township 
  4.16  mutuals organized under chapter 67A; or health maintenance 
  4.17  organizations organized under chapter 62D. 
  4.18     Sec. 9.  Minnesota Statutes 2002, section 626.84, 
  4.19  subdivision 1, is amended to read: 
  4.20     Subdivision 1.  [DEFINITIONS.] For purposes of sections 
  4.21  626.84 to 626.863, the following terms have the meanings given 
  4.22  them: 
  4.23     (a) "Board" means the Board of Peace Officer Standards and 
  4.24  Training. 
  4.25     (b) "Director" means the executive director of the board. 
  4.26     (c) "Peace officer" means: 
  4.27     (1) an employee or an elected or appointed official of a 
  4.28  political subdivision or law enforcement agency who is licensed 
  4.29  by the board, charged with the prevention and detection of crime 
  4.30  and the enforcement of the general criminal laws of the state 
  4.31  and who has the full power of arrest, and shall also include the 
  4.32  Minnesota State Patrol, agents of the Division of Alcohol and 
  4.33  Gambling Enforcement, state conservation officers, Metropolitan 
  4.34  Transit police officers, and Department of Corrections' Fugitive 
  4.35  Apprehension Unit officers, and Department of Commerce Insurance 
  4.36  Fraud Unit officers; and 
  5.1      (2) a peace officer who is employed by a law enforcement 
  5.2   agency of a federally recognized tribe, as defined in United 
  5.3   States Code, title 25, section 450b(e), and who is licensed by 
  5.4   the board. 
  5.5      (d) "Constable" has the meaning assigned to it in section 
  5.6   367.40. 
  5.7      (e) "Deputy constable" has the meaning assigned to it in 
  5.8   section 367.40. 
  5.9      (f) "Part-time peace officer" means an individual licensed 
  5.10  by the board whose services are utilized by law enforcement 
  5.11  agencies no more than an average of 20 hours per week, not 
  5.12  including time spent on call when no call to active duty is 
  5.13  received, calculated on an annual basis, who has either full 
  5.14  powers of arrest or authorization to carry a firearm while on 
  5.15  active duty.  The term shall apply even though the individual 
  5.16  receives no compensation for time spent on active duty, and 
  5.17  shall apply irrespective of the title conferred upon the 
  5.18  individual by any law enforcement agency.  The limitation on the 
  5.19  average number of hours in which the services of a part-time 
  5.20  peace officer may be utilized shall not apply to a part-time 
  5.21  peace officer who has formally notified the board pursuant to 
  5.22  rules adopted by the board of the part-time peace officer's 
  5.23  intention to pursue the specialized training for part-time peace 
  5.24  officers who desire to become peace officers pursuant to 
  5.25  sections 626.843, subdivision 1, clause (g), and 626.845, 
  5.26  subdivision 1, clause (g). 
  5.27     (g) "Reserve officer" means an individual whose services 
  5.28  are utilized by a law enforcement agency to provide 
  5.29  supplementary assistance at special events, traffic or crowd 
  5.30  control, and administrative or clerical assistance.  A reserve 
  5.31  officer's duties do not include enforcement of the general 
  5.32  criminal laws of the state, and the officer does not have full 
  5.33  powers of arrest or authorization to carry a firearm on duty. 
  5.34     (h) "Law enforcement agency" means: 
  5.35     (1) a unit of state or local government that is authorized 
  5.36  by law to grant full powers of arrest and to charge a person 
  6.1   with the duties of preventing and detecting crime and enforcing 
  6.2   the general criminal laws of the state; and 
  6.3      (2) subject to the limitations in section 626.93, a law 
  6.4   enforcement agency of a federally recognized tribe, as defined 
  6.5   in United States Code, title 25, section 450b(e). 
  6.6      (i) "Professional peace officer education" means a 
  6.7   postsecondary degree program, or a nondegree program for persons 
  6.8   who already have a college degree, that is offered by a college 
  6.9   or university in Minnesota, designed for persons seeking 
  6.10  licensure as a peace officer, and approved by the board. 
  6.11     Sec. 10.  [REPEALER.] 
  6.12     Minnesota Statutes 2002, section 45.0135, subdivisions 1 
  6.13  and 2, are repealed. 
  6.14     Sec. 11.  [EFFECTIVE DATE.] 
  6.15     Sections 1 to 10 are effective the day following final 
  6.16  enactment. 
  6.17                             ARTICLE 2
  6.18                       AUTO THEFT PREVENTION
  6.19     Section 1.  Minnesota Statutes 2002, section 299A.75, 
  6.20  subdivision 1, is amended to read: 
  6.21     Subdivision 1.  [PROGRAM DESCRIBED; COMMISSIONER'S DUTIES.] 
  6.22  (a) The commissioner of public safety commerce shall: 
  6.23     (1) develop and sponsor the implementation of statewide 
  6.24  plans, programs, and strategies to combat automobile theft, 
  6.25  improve the administration of the automobile theft laws, and 
  6.26  provide a forum for identification of critical problems for 
  6.27  those persons dealing with automobile theft; 
  6.28     (2) coordinate the development, adoption, and 
  6.29  implementation of plans, programs, and strategies relating to 
  6.30  interagency and intergovernmental cooperation with respect to 
  6.31  automobile theft enforcement; 
  6.32     (3) annually audit the plans and programs that have been 
  6.33  funded in whole or in part to evaluate the effectiveness of the 
  6.34  plans and programs and withdraw funding should the commissioner 
  6.35  determine that a plan or program is ineffective or is no longer 
  6.36  in need of further financial support from the fund; 
  7.1      (4) develop a plan of operation including: 
  7.2      (i) an assessment of the scope of the problem of automobile 
  7.3   theft, including areas of the state where the problem is 
  7.4   greatest; 
  7.5      (ii) an analysis of various methods of combating the 
  7.6   problem of automobile theft; 
  7.7      (iii) a plan for providing financial support to combat 
  7.8   automobile theft; 
  7.9      (iv) a plan for eliminating car hijacking; and 
  7.10     (v) an estimate of the funds required to implement the 
  7.11  plan; and 
  7.12     (5) distribute money pursuant to subdivision 3 from the 
  7.13  automobile theft prevention special revenue account for 
  7.14  automobile theft prevention activities, including: 
  7.15     (i) paying the administrative costs of the program; 
  7.16     (ii) providing financial support to the State Patrol and 
  7.17  local law enforcement agencies for automobile theft enforcement 
  7.18  teams; 
  7.19     (iii) providing financial support to state or local law 
  7.20  enforcement agencies for programs designed to reduce the 
  7.21  incidence of automobile theft and for improved equipment and 
  7.22  techniques for responding to automobile thefts; 
  7.23     (iv) providing financial support to local prosecutors for 
  7.24  programs designed to reduce the incidence of automobile theft; 
  7.25     (v) providing financial support to judicial agencies for 
  7.26  programs designed to reduce the incidence of automobile theft; 
  7.27     (vi) providing financial support for neighborhood or 
  7.28  community organizations or business organizations for programs 
  7.29  designed to reduce the incidence of automobile theft and to 
  7.30  educate people about the common methods of automobile theft, the 
  7.31  models of automobiles most likely to be stolen, and the times 
  7.32  and places automobile theft is most likely to occur; and 
  7.33     (vii) providing financial support for automobile theft 
  7.34  educational and training programs for state and local law 
  7.35  enforcement officials, driver and vehicle services exam and 
  7.36  inspections staff, and members of the judiciary. 
  8.1      (b) The commissioner may not spend in any fiscal year more 
  8.2   than ten percent of the money in the fund for the program's 
  8.3   administrative and operating costs.  The commissioner is 
  8.4   annually appropriated and must distribute the amount of the 
  8.5   proceeds credited to the automobile theft prevention special 
  8.6   revenue account each year, less the transfer of $1,300,000 each 
  8.7   year to the general fund described in section 168A.40, 
  8.8   subdivision 4. 
  8.9      Sec. 2.  [TRANSFER OF POWERS.] 
  8.10     The powers and duties of the Department of Public Safety 
  8.11  under Minnesota Statutes, section 299A.75, are transferred to 
  8.12  the Department of Commerce.  Minnesota Statutes, section 15.039, 
  8.13  applies to this transfer of powers. 
  8.14     Sec. 3.  [REVISOR INSTRUCTION.] 
  8.15     The revisor of statutes shall recodify Minnesota Statutes, 
  8.16  section 299A.75, into a chapter of Minnesota Statutes dealing 
  8.17  with the Department of Commerce. 
  8.18     Sec. 4.  [EFFECTIVE DATE.] 
  8.19     This article is effective July 1, 2004.