SF 1391

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 02/23/2022 02:58pm

A bill for an act
relating to commerce; regulating debt settlement services providers; amending
Minnesota Statutes 2020, sections 332A.02, subdivision 8; 332B.02, subdivision
13.

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

Section 1.

Minnesota Statutes 2020, 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) exempt attorneys at law, escrow agents, accountants, broker-dealers in securities;

(2) state or national banks, credit unions, trust companies, savings associations, title
insurers, 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 federal government, the state, their political subdivisions, public agencies, and
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; deleted text begin and
deleted text end

(11) new text begin a registered accounting practitioner, registered accounting practitioner firm, certified
public accountant, or certified public accountant firm licensed under chapter 326A;
new text end

new text begin (12) an enrolled agent in good standing licensed by the United States Department of
Treasury under United States Code, title 31, section 330, or enrolled agent firm; and
new text end

new text begin (13) new text end debt settlement services providers.

Sec. 2.

Minnesota Statutes 2020, 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 an exempt attorney at law
and persons listed in section 332A.02, subdivision 8, clauses (2) to deleted text begin (10) deleted text end new text begin (12) new text end , or a debt
management services provider.