SF 1344

2nd Engrossment - 90th Legislature (2017 - 2018) Posted on 05/11/2018 03:58pm

A bill for an act
relating to commerce; regulating insurance fraud; modifying certain penalties and
notices; defining a term; clarifying the authority of the Commerce Fraud Bureau
to apply for or execute search warrants; amending Minnesota Statutes 2016, sections
13.82, subdivision 17; 45.0135, subdivision 9; 60A.27, subdivision 1; 65B.84, by
adding a subdivision; 626.05, subdivision 2.

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

Section 1.

Minnesota Statutes 2016, section 13.82, subdivision 17, is amended to read:

Subd. 17.

Protection of identities.

A law enforcement agency or a law enforcement
dispatching agency working under direction of a law enforcement agency shall withhold
public access to data on individuals to protect the identity of individuals in the following
circumstances:

(a) when access to the data would reveal the identity of an undercover law enforcement
officer, as provided in section 13.43, subdivision 5;

(b) when access to the data would reveal the identity of a victim or alleged victim of
criminal sexual conduct or sex trafficking under section 609.322, 609.341 to 609.3451, or
617.246, subdivision 2;

(c) when access to the data would reveal the identity of a paid or unpaid informant being
used by the agency if the agency reasonably determines that revealing the identity of the
informant would threaten the personal safety of the informant;

(d) when access to the data would reveal the identity of a victim of or witness to a crime
if the victim or witness specifically requests not to be identified publicly, unless the agency
reasonably determines that revealing the identity of the victim or witness would not threaten
the personal safety or property of the individual;

(e) when access to the data would reveal the identity of a deceased person whose body
was unlawfully removed from a cemetery in which it was interred;

(f) when access to the data would reveal the identity of a person who placed a call to a
911 system or the identity or telephone number of a service subscriber whose phone is used
to place a call to the 911 system and: (1) the agency determines that revealing the identity
may threaten the personal safety or property of any person; or (2) the object of the call is
to receive help in a mental health emergency. For the purposes of this paragraph, a voice
recording of a call placed to the 911 system is deemed to reveal the identity of the caller;

(g) when access to the data would reveal the identity of a juvenile witness and the agency
reasonably determines that the subject matter of the investigation justifies protecting the
identity of the witness; or

(h) when access to the data would reveal the identity of a mandated reporter under section
new text begin 60A.952, subdivision 2, new text end 609.456, 626.556, or 626.557.

Data concerning individuals whose identities are protected by this subdivision are private
data about those individuals. Law enforcement agencies shall establish procedures to acquire
the data and make the decisions necessary to protect the identity of individuals described
in clauses (c), (d), (f), and (g).

Sec. 2.

Minnesota Statutes 2016, section 45.0135, subdivision 9, is amended to read:

Subd. 9.

Administrative penalty for insurance fraud.

(a) The commissioner may:

(1) impose an administrative penalty against any person in an amount as set forth in
paragraph (b) for each deleted text begin intentional deleted text end act of new text begin attempted new text end insurance fraud committed by that person;
deleted text begin and
deleted text end

(2) order restitution to any person suffering loss as a result of the insurance fraud deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) order restitution to a company for the cost of any investigation in connection with
the insurance fraud.
new text end

(b) The administrative penalty for each violation described in paragraph (a) may be no
more than:

(1) $20,000 if the funds or the value of the property or services wrongfully obtained
exceeds $5,000;

(2) $10,000 if the funds or value of the property or services wrongfully obtained exceeds
$1,000, but not more than $5,000;

(3) $3,000 if the funds or value of the property or services wrongfully obtained is more
than $500, but not more than $1,000; and

(4) $1,000 if the funds or value of the property or services wrongfully obtained is $500
or less.

(c) If an administrative penalty is not paid after all rights of appeal have been waived
or exhausted, the commissioner may bring a civil action in a court of competent jurisdiction
to collect the administrative penalty, including expenses and litigation costs, reasonable
attorney fees, and interest.

(d) This section does not affect a person's right to seek recovery, including expenses
and litigation costs, reasonable attorney fees, and interest, against any person that commits
insurance fraud.

(e) For purposes of this subdivision, "insurance fraud" has the meaning given in section
60A.951, subdivision 4.

(f) Hearings under this subdivision must be conducted in accordance with chapter 14
and any other applicable law.

(g) All revenues from penalties, expenses, costs, fees, and interest collected under
paragraphs (a) to (c) shall be deposited in the insurance fraud prevention account under
subdivision 6.

Sec. 3.

Minnesota Statutes 2016, section 60A.27, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

An insurance company licensed to transact business in
this state is hereby required to notify the commissioner of commerce within ten business
days of the happening of any one or more of the following:

(1) the suspension or revocation of its right to transact business in another state; new text begin or
new text end

(2) the receipt by the insurance company of an order to show why its license should not
be suspended or revoked deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (3) the imposition of a penalty by any other state for any violation of the insurance laws
of such other state.
deleted text end

Sec. 4.

Minnesota Statutes 2016, section 65B.84, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "automobile theft" includes
automobile-related theft.
new text end

Sec. 5.

Minnesota Statutes 2016, section 626.05, subdivision 2, is amended to read:

Subd. 2.

Peace officer.

The term "peace officer," as used in sections 626.04 to 626.17,
means a person who is licensed as a peace officer in accordance with section 626.84,
subdivision 1, and who serves as a sheriff, deputy sheriff, police officer, conservation officer,
agent of the Bureau of Criminal Apprehension, agent of the Division of Alcohol and
Gambling Enforcement, new text begin peace officer of the Commerce Fraud Bureau, new text end University of
Minnesota peace officer, Metropolitan Transit police officer, Minnesota Department of
Corrections Fugitive Apprehension Unit member, or State Patrol trooper as authorized by
section 299D.03.

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective the day following final enactment.
new text end