SF 4602

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/14/2024 09:28am

A bill for an act
relating to consumer protection; modifying various provisions governing debt
collection, garnishment, and consumer finance; providing for debtor protections;
requiring a review of certain statutory forms; amending Minnesota Statutes 2022,
sections 176.175, subdivision 2; 332.31, subdivision 3, by adding subdivisions;
332.32; 332.37; 332.39; 334.01, by adding a subdivision; 519.05; 541.04; 541.053;
548.09, subdivision 1; 550.37, subdivisions 2, 4, 6, 12a, 14, 20, 22, 23, by adding
subdivisions; 550.39; 563.01, subdivisions 3, 4, 8, 9, 10; 563.02, subdivision 2;
571.72, subdivisions 6, 9; 571.76; 571.911; 571.914, subdivision 1; 571.92;
571.921; 571.922; 571.924, subdivision 1; Minnesota Statutes 2023 Supplement,
section 270A.03, subdivision 2; proposing coding for new law in Minnesota
Statutes, chapters 62Q; 332; 550; 571.

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

Section 1.

new text begin [62Q.491] OUT-OF-POCKET MAXIMUM OR COST-SHARING
REQUIREMENT; ENROLLEE CONTRIBUTION CALCULATION.
new text end

new text begin (a) To the extent permitted by federal law, a health plan company must include any
amounts paid by the enrollee or paid on behalf of the enrollee by another person when
calculating an enrollee's overall contribution toward any out-of-pocket maximum or
cost-sharing requirement under a health plan.
new text end

new text begin (b) For purposes of this section, "cost sharing" means a co-payment, coinsurance, or
deductible.
new text end

Sec. 2.

Minnesota Statutes 2022, section 176.175, subdivision 2, is amended to read:

Subd. 2.

Nonassignability.

No claim for compensation or settlement of a claim for
compensation owned by an injured employee or dependents is assignable. Except as otherwise
provided in this chapter, any claim for compensation owned by an injured employee or
dependents is exempt from seizure or sale for the payment of any debt or liability new text begin , up to a
total amount of $1,000,000 per claim and subsequent award new text end .

Sec. 3.

Minnesota Statutes 2023 Supplement, section 270A.03, subdivision 2, is amended
to read:

Subd. 2.

Claimant agency.

"Claimant agency" means any state agency, as defined by
section 14.02, subdivision 2, the regents of the University of Minnesota, any district court
of the state, any county, any statutory or home rule charter city, including a city that is
presenting a claim for deleted text begin a municipal hospital or deleted text end a public library deleted text begin or a municipal ambulance
service, a hospital district, any ambulance service licensed under chapter 144E deleted text end , any public
agency responsible for child support enforcement, any public agency responsible for the
collection of court-ordered restitution, and any public agency established by general or
special law that is responsible for the administration of a low-income housing program.

Sec. 4.

Minnesota Statutes 2022, section 332.31, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Collecting party. new text end

new text begin "Collecting party" means a person who, in the ordinary
course of business, regularly engages in debt collection on behalf of the person or others.
new text end

Sec. 5.

Minnesota Statutes 2022, section 332.31, subdivision 3, is amended to read:

Subd. 3.

Collection agency.

"Collection agency" or "licensee" means (1) a person
engaged in the business of collection for others any account, bill, or other indebtedness,
except as hereinafter provided; or (2) a debt buyer. deleted text begin It deleted text end new text begin Collection agency or licensee new text end includes new text begin
but is not limited to: (1) attorneys whose principal or exclusive practice involves debt
collection; or (2) new text end persons who furnish collection systems carrying a name which simulates
the name of a collection agency and who supply forms or form letters to be used by the
creditor, even though such forms direct the debtor to make payments directly to the creditor
rather than to such fictitious agency.

Sec. 6.

Minnesota Statutes 2022, section 332.31, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin Debt. new text end

new text begin "Debt" means any obligation or alleged obligation to pay money arising
out of a transaction in which the money, property, insurance, or services that are the subject
of the transaction are primarily for personal, family, or household purposes, whether or not
the obligation has been reduced to judgment. For purposes of this chapter, the term debt
also refers to any obligation or alleged obligation arising from owning and operating a small
business, as defined in section 645.445, regardless of the small business's purpose.
new text end

Sec. 7.

Minnesota Statutes 2022, section 332.31, is amended by adding a subdivision to
read:

new text begin Subd. 8a. new text end

new text begin Debtor. new text end

new text begin "Debtor" means a natural person obligated or allegedly obligated to
pay any debt.
new text end

Sec. 8.

Minnesota Statutes 2022, section 332.32, is amended to read:

332.32 EXCLUSIONS.

(a) The term "collection agency" does not include banks when collecting accounts owed
to the banks and when the bank will sustain any loss arising from uncollectible accounts,
abstract companies doing an escrow business, real estate brokers, public officers, persons
acting under order of a court, deleted text begin lawyers, deleted text end trust companies, insurance companies, credit unions,
savings associations, loan or finance companies unless they are engaged in asserting,
enforcing or prosecuting unsecured claims which have been purchased from any person,
firm, or association when there is recourse to the seller for all or part of the claim if the
claim is not collected.

(b) The term "collection agency" shall not include a trade association performing services
authorized by section 604.15, subdivision 4a, but the trade association in performing the
services may not engage in any conduct that would be prohibited for a collection agency
under section 332.37.

Sec. 9.

Minnesota Statutes 2022, section 332.37, is amended to read:

332.37 PROHIBITED PRACTICES.

(a) No deleted text begin collection agency, debt buyer, or collector deleted text end new text begin collecting party new text end shall:

(1) in collection letters or publications, or in any communication deleted text begin , deleted text end oral or written new text begin , new text end threaten
wage garnishment or legal suit by a particular lawyer, unless deleted text begin it deleted text end new text begin the collecting party new text end has
actually retained the lawyer;

(2) use or employ sheriffs or any other officer authorized to serve legal papers in
connection with the collection of a claim, except when performing their legally authorized
duties;

(3) use or threaten to use methods of collection which violate Minnesota law;

(4) furnish legal advice new text begin to debtors new text end or deleted text begin otherwise engage in the practice of law or deleted text end represent
that deleted text begin it deleted text end new text begin the collecting party new text end is competent to do so;

(5) communicate with debtors in a misleading or deceptive manner by new text begin falsely new text end using the
stationery of a lawyer, forms or instruments which only lawyers are authorized to prepare,
or instruments which simulate the form and appearance of judicial process;

(6) new text begin if the collecting party is a collection agency, new text end exercise authority on behalf of a client
to employ the services of lawyers unless the client has specifically authorized the agency
in writing to do so and the agency's course of conduct is at all times consistent with a true
relationship of attorney and client between the lawyer and the client;

(7) publish or cause to be published any list of debtors except for credit reporting
purposes, use shame cards or shame automobiles, advertise or threaten to advertise for sale
any claim as a means of forcing payment thereof, or use similar devices or methods of
intimidation;

(8) refuse to return any claim or claims and all valuable papers deposited with a claim
or claims upon written request of the client, claimant or forwarder after tender of the amounts
due and owing to a collection agency within 30 days after the request; refuse or intentionally
fail to account to its clients for all money collected within 30 days from the last day of the
month in which the same is collected; or, refuse or fail to furnish at intervals of not less
than 90 days upon written request of the claimant or forwarder, a written report upon claims
received from the claimant or forwarder;

(9) operate under a name or in a manner which implies deleted text begin that deleted text end the deleted text begin collection agency or debt
buyer deleted text end new text begin collecting party new text end is a branch of or associated with any department of federal, state,
county or local government or an agency thereof;

(10) new text begin if the collecting party is a collection agency, new text end commingle money collected for a
customer with the collection agency's operating funds or use any part of a customer's money
in the conduct of the collection agency's business;

(11) transact business or hold itself out as a debt settlement company, debt management
company, debt adjuster, or any person who settles, adjusts, prorates, pools, liquidates or
pays the indebtedness of a debtor, unless there is no charge to the debtor, or the pooling or
liquidation is done pursuant to court order or under the supervision of a creditor's committee;

(12) violate any of the provisions of the Fair Debt Collection Practices Act of 1977,
Public Law 95-109, new text begin or Code of Federal Regulations, title 12, part 1006, new text end while attempting
to collect on any account, bill or other indebtedness new text begin . For purposes of this section, Public
Law 95-109 and Code of Federal Regulations, title 12, part 1006, apply to collecting parties new text end ;

(13) communicate with a debtor by use of deleted text begin a recorded message utilizing an automatic
dialing announcing device deleted text end new text begin an automatic telephone dialing system or an artificial or
prerecorded voice new text end after the debtor expressly informs the deleted text begin agency or collector deleted text end new text begin collecting party new text end
to cease communication utilizing an deleted text begin automatic dialing announcing deleted text end deleted text begin device deleted text end new text begin automatic telephone
dialing system or an artificial or prerecorded voice. For purposes of this clause, an automatic
telephone dialing system or an artificial or prerecorded voice includes but is not limited to
(i) artificial intelligence chat bots, and (ii) the usage of the term under the Telephone
Consumer Protection Act, United States Code, title 47, section 227(b)(1)(A) new text end ;

(14) in collection letters or publications, or in any communication, oral or written, imply
or suggest that health care deleted text begin services deleted text end will be withheld deleted text begin in an emergency situation deleted text end new text begin as a result
of a debt new text end ;

(15) when a debtor has a listed telephone number, enlist the aid of a neighbor or third
party to request that the debtor contact the deleted text begin licensee or collector deleted text end new text begin collecting party new text end , except a
person who resides with the debtor or a third party with whom the debtor has authorized
the deleted text begin licensee or collector deleted text end new text begin collecting party new text end to place the request. This clause does not apply to
a call back message left at the debtor's place of employment which is limited to the deleted text begin licensee's
or collector's deleted text end new text begin collecting party's new text end telephone number and name;

(16) when attempting to collect a debt, fail to provide the debtor with new text begin : (i) new text end the full name
of the deleted text begin collection agency or debt buyer deleted text end new text begin collecting party as registered with the secretary of
state; (ii) the full name new text end as it appears on deleted text begin its deleted text end new text begin the collecting party's collection new text end license new text begin , Federal
Deposit Insurance Corporation registration, National Credit Union Administration
registration, or in a similar registry; new text end or new text begin (iii) the full name new text end as listed on any "doing business
as" or "d/b/a" registered with the Department of Commerce new text begin , as applicable new text end ;

(17) new text begin if the collecting party is a collection agency, new text end collect any money from a debtor that
is not reported to a client new text begin on whose behalf the collecting party is collecting the money new text end ;

(18) fail to return any amount of overpayment from a debtor to the debtor or to the state
of Minnesota pursuant to the requirements of chapter 345;

(19) accept currency or coin as payment for a debt without issuing an original receipt
to the debtor and maintaining a duplicate receipt in the debtor's payment records;

(20) attempt to collect any amount, including any interest, fee, charge, or expense
incidental to the charge-off obligation, from a debtor unless the amount is expressly
authorized by the agreement creating the debt or is otherwise permitted by law;

(21) new text begin if the collecting party is a collection agency, new text end charge a fee to a client new text begin on whose behalf
the collecting party is collecting the money new text end that is not authorized by agreement with the
client;

(22) falsify any deleted text begin collection agency deleted text end documents with the intent to deceive deleted text begin a debtor, creditor,
or governmental agency deleted text end ;

(23) when initially contacting a Minnesota debtor by mail, fail to include a disclosure
on the contact notice, in a type size or font which is equal to or larger than the largest other
type of type size or font used in the text of the notice. The new text begin disclosure must (i) include and
identify the Office of the Minnesota Attorney General's general telephone number, and (ii)
state: "You have the right to hire your own attorney to represent you in this matter." With
respect to collection agencies, debt buyers, and collectors, the new text end disclosure must new text begin also new text end state:
"This collection agency is licensed by the Minnesota Department of Commerce" or "This
debt buyer is licensed by the Minnesota Department of Commerce" as applicable; deleted text begin or
deleted text end

(24) commence legal action to collect a debt outside the limitations period set forth in
section 541.053 deleted text begin . deleted text end new text begin ;
new text end

new text begin (25) report to a credit reporting agency an item of information which the collecting party
knows or should know concerns medical information, or concerns any debt arising from
the provision of medical care, treatment, services, devices, medicines, or procedures to
maintain, diagnose, or treat a person's physical or mental health; or
new text end

new text begin (26) challenge a debtor's claim of exemption to garnishment or levy in a manner that is
baseless, frivolous, or otherwise in bad faith.
new text end

(b) Paragraph (a), clauses (6), (8), (10), (17), and (21), do not apply to debt buyers except
to the extent the debt buyer engages in third-party debt collection for others.

Sec. 10.

new text begin [332.371] MEDICAL DEBT CREDIT REPORTING PROHIBITED.
new text end

new text begin (a) A consumer reporting agency is prohibited from making a consumer report containing
an item of information that the consumer reporting agency knows or should know concerns
(1) medical information; or (2) debt arising from: (i) the provision of medical care, treatment,
services, devices, medicines; or (ii) procedures to maintain, diagnose, or treat a person's
physical or mental health.
new text end

new text begin (b) For purposes of this section, "consumer report," "consumer reporting agency," and
"medical information" have the meanings given them in the Fair Credit Reporting Act,
United States Code, title 15, section 1681a.
new text end

Sec. 11.

Minnesota Statutes 2022, section 332.39, is amended to read:

332.39 deleted text begin INJUNCTIONS deleted text end new text begin ENFORCEMENT new text end .

new text begin (a) new text end The attorney general or the county attorney of any county may apply for an injunction
in district court to enjoin any violations of sections 332.31 to 332.44, or any practices
prohibited in section 332.37, and any such court may issue temporary or permanent
injunctions as the circumstances shall require. Such injunctive proceedings shall be in
addition to and not in lieu of penalties and remedies otherwise provided in sections 332.31
to 332.44.

new text begin (b) A collecting party that violates section 332.37 is strictly liable to the debtor in question
for the sum of:
new text end

new text begin (1) actual damage sustained by the debtor as a result of the violation;
new text end

new text begin (2) additional damages as the court may allow, but not exceeding $1,000 per violation;
and
new text end

new text begin (3) in the case of any successful action to enforce the foregoing, the costs of the action,
together with a reasonable attorney fee as determined by the court.
new text end

new text begin (c) A collecting party that willfully and maliciously violates section 332.37 is strictly
liable to the debtor for three times the sums allowable under paragraph (b), clauses (1) and
(2).
new text end

new text begin (d) The dollar amount limit under paragraph (b), clause (2), changes on July 1 of each
even-numbered year to in an amount equal to changes made in the consumer price index,
compiled by the United States Bureau of Labor Statistics. The consumer price index for
December 2024 is the reference base index. If the consumer price index is revised, the
percentage of change made under this section must be calculated on the basis of the revised
consumer price index. If a consumer price index revision changes the reference base index,
a revised reference base index must be determined by multiplying the reference base index
that is effective at the time by the rebasing factor furnished by the Bureau of Labor Statistics.
If the consumer price index is superseded, the consumer price index referred to in this section
is the consumer price index represented by the Bureau of Labor Statistics as most accurately
reflecting changes in the prices paid by consumers for consumer goods and services.
new text end

new text begin (e) The commissioner of commerce must publish the base reference index under paragraph
(d) in the State Register no later than September 1, 2024. The commissioner must calculate
and then publish the revised consumer price index under paragraph (d) in the State Register
no later than September 1 each even-numbered year.
new text end

new text begin (f) An action brought under this section benefits the public.
new text end

Sec. 12.

new text begin [332.391] DEFENDING CONSUMER DEBT CASES.
new text end

new text begin A debtor who successfully defends against a claim for debt payment that is alleged by
a collecting party must be awarded the debtor's costs, including a reasonable attorney fee,
incurred in defending against the collecting party's claim for debt payment.
new text end

Sec. 13.

Minnesota Statutes 2022, section 334.01, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Contracts for medical care. new text end

new text begin Interest does not accrue on any debt to a health
care provider incurred in exchange for care, treatment, services, devices, medicines, or
procedures to maintain, diagnose, or treat a person's physical or mental health.
new text end

Sec. 14.

Minnesota Statutes 2022, section 519.05, is amended to read:

519.05 LIABILITY OF deleted text begin HUSBAND AND WIFE deleted text end new text begin SPOUSES new text end .

(a) A spouse is not liable to a creditor for any debts of the other spouse. deleted text begin Where husband
and wife are living together, they shall be jointly and severally liable for necessary medical
services that have been furnished to either spouse, including any claims arising under section
246.53, 256B.15, 256D.16, or 261.04, and necessary household articles and supplies furnished
to and used by the family. deleted text end Notwithstanding this paragraph, in a proceeding under chapter
518 the court may apportion such debt between the spouses.

(b) Either spouse may close a credit card account or other unsecured consumer line of
credit on which both spouses are contractually liable, by giving written notice to the creditor.

Sec. 15.

Minnesota Statutes 2022, section 541.04, is amended to read:

541.04 JUDGMENTS, TEN YEARS.

new text begin (a) new text end No action shall be maintained upon a judgment or decree of a court of the United
States, or of any state or territory thereof, unless begun within new text begin : (1) five years after the entry
of judgment for obligations arising out of a consumer debt incurred primarily for personal,
family, or household purposes, for judgments entered after July 1, 2024; or (2) new text end ten years
after the entry of deleted text begin such deleted text end judgment new text begin for all other obligations new text end .

new text begin (b) No action may be brought to renew a judgment arising out of any consumer debt
incurred primarily for personal, family, or household purposes.
new text end

Sec. 16.

Minnesota Statutes 2022, section 541.053, is amended to read:

541.053 LIMITATION OF ACTIONS BASED ON CONSUMER DEBT.

new text begin (a) new text end Notwithstanding section 541.31, subdivision 1, actions upon an obligation arising
out of a consumer debt primarily for personal, family, or household purposes deleted text begin shall deleted text end new text begin that is
incurred or originated on or after July 1, 2024, must new text end be commenced within deleted text begin six deleted text end new text begin three new text end years.

new text begin (b) new text end After deleted text begin its deleted text end expiration, the statute of limitations is not revived by the collection of a
payment on an account, a discharge in a bankruptcy proceeding, or an oral or written
reaffirmation of the debt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024, and applies to actions
arising from consumer debt primarily for personal, family, or household purposes incurred
or originated on or after that date.
new text end

Sec. 17.

Minnesota Statutes 2022, section 548.09, subdivision 1, is amended to read:

Subdivision 1.

Entry and docketing; survival of judgment.

new text begin (a) new text end Except as provided in
section 548.091, every judgment requiring the payment of money shall be entered by the
court administrator when ordered by the court and will be docketed by the court administrator
upon the filing of an affidavit as provided in subdivision 2. Upon a transcript of the docket
being filed with the court administrator in any other county, the court administrator shall
also docket it. From the time of docketing the judgment is a lien, in the amount unpaid,
upon all real property in the county then or thereafter owned by the judgment debtor, but it
is not a lien upon registered land unless it is also recorded pursuant to sections 508.63 and
508A.63. The judgment survives, and the lien continues, for ten years after its entry. Child
support judgments may be renewed pursuant to section 548.091. new text begin Except as provided in
paragraph (b), an action may be brought to renew the judgment for the same period if the
action to renew the judgment is commenced within ten years after entry of the judgment.
new text end

new text begin (b) No action may be brought to renew a judgment arising out of any consumer debt
incurred primarily for personal, family, or household purposes.
new text end

new text begin (c) Child support judgments may be renewed as provided under section 548.091.
new text end

Sec. 18.

Minnesota Statutes 2022, section 550.37, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Bible deleted text end new text begin Sacred possessions, library, new text end and musical instrument.

The deleted text begin family deleted text end Bible, new text begin
Torah, Qur'an, prayer rug, other religions items, new text end library, and musical instruments new text begin , not
exceeding $10,000 per item new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 19.

Minnesota Statutes 2022, section 550.37, subdivision 4, is amended to read:

Subd. 4.

Personal goods.

(a) All wearing apparel, one watch, utensils, and foodstuffs
of the debtor and the debtor's family.

(b) Household furniture, household appliances, deleted text begin phonographs, radio and television
receivers deleted text end new text begin radios, computers, tablets, televisions, printers, cell phones, smart phones, and
other consumer electronics new text end of the debtor and the debtor's family, not exceeding $11,250 in
value.

(c) The debtor's aggregate interest, not exceeding $3,062.50 in value, in deleted text begin wedding rings
or other religious or culturally recognized symbols of marriage exchanged between the
debtor and spouse at the time of the marriage and in the debtor's possession deleted text end new text begin jewelry new text end .

The exemption provided by this subdivision may not be waived except with regard to
purchase money security interests. Except for a pawnbroker's possessory lien, a nonpurchase
money security interest in the property exempt under this subdivision is void.

If a debtor has property of the type which would qualify for the exemption under clause
(b), of a value in excess of $11,250 an itemized list of the exempt property, together with
the value of each item listed, shall be attached to the security agreement at the time a security
interest is taken, and a creditor may take a nonpurchase money security interest in the excess
over $11,250 by requiring the debtor to select the exemption in writing at the time the loan
is made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 20.

Minnesota Statutes 2022, section 550.37, subdivision 6, is amended to read:

Subd. 6.

Tools of trade.

The tools, implements, machines, new text begin vehicles, new text end instruments, office
furniture, stock in trade, and library reasonably necessary in the trade, business, or profession
of the debtor, not exceeding $12,500 in value.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 21.

Minnesota Statutes 2022, section 550.37, subdivision 12a, is amended to read:

Subd. 12a.

Motor vehicles.

One new text begin of the following: (1) one new text end motor vehicle new text begin , new text end to the extent
of a value not exceeding deleted text begin $5,000 deleted text end new text begin $10,000 new text end ; new text begin (2) one motor vehicle that is regularly used by or
for the benefit of a physically disabled person, as defined under section 169.345, subdivision
2, to the extent of a value not exceeding $25,000; new text end or new text begin (3) new text end one motor vehicle new text begin , new text end to the extent of
a value not exceeding deleted text begin $50,000 deleted text end new text begin $100,000, new text end that has been new text begin designed or new text end modified deleted text begin , at a cost of
not less than $3,750, deleted text end to accommodate the deleted text begin physical deleted text end disability making a disabled person
eligible for a certificate authorized by section 169.345.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 22.

Minnesota Statutes 2022, section 550.37, subdivision 14, is amended to read:

Subd. 14.

Public assistance.

All government assistance based on need, and the earnings
or salary of a person who is a recipient of government assistance based on need, shall be
exempt from all claims of creditors including any contractual setoff or security interest
asserted by a financial institution. For the purposes of this chapter, government assistance
based on need includes but is not limited to Minnesota family investment program deleted text begin , deleted text end new text begin ; new text end
Supplemental Security Income deleted text begin , deleted text end new text begin ; new text end medical assistance deleted text begin , deleted text end new text begin ; new text end MinnesotaCare deleted text begin , deleted text end new text begin ; new text end payment of Medicare
part B premiums or receipt of part D extra help deleted text begin , deleted text end new text begin ; new text end MFIP diversionary work program deleted text begin , deleted text end new text begin ; new text end work
participation cash benefit deleted text begin , deleted text end new text begin ; new text end Minnesota supplemental assistance deleted text begin , deleted text end new text begin ; new text end emergency Minnesota
supplemental assistance deleted text begin , deleted text end new text begin ; new text end general assistance deleted text begin , deleted text end new text begin ; new text end emergency general assistance deleted text begin , deleted text end new text begin ; new text end emergency
assistance or county crisis funds deleted text begin , deleted text end new text begin ; new text end energy or fuel assistance deleted text begin , and deleted text end new text begin ; new text end Supplemental Nutrition
Assistance Program (SNAP) new text begin ; and the portion of any tax refund attributable to a state or
federal tax credit, including but not limited to the earned income tax credit, state or federal
child tax credit, Minnesota working family credit, renter's credit, or any low-income tax
credit new text end . The salary or earnings of any debtor who is or has been an eligible recipient of
government assistance based on need, or an inmate of a correctional institution shall, upon
the debtor's return to private employment or farming after having been an eligible recipient
of government assistance based on need, or an inmate of a correctional institution, be exempt
from attachment, garnishment, or levy of execution for a period of six months after the
debtor's return to employment or farming and after all public assistance for which eligibility
existed has been terminated. new text begin Any portion of an income tax refund consisting of income that
was exempt when the income was earned is also exempt under this subdivision. new text end The
exemption provisions contained in this subdivision also apply deleted text begin for 60 days deleted text end after deposit in
any financial institution, whether in a single or joint account. In tracing the funds, the first-in
first-out method of accounting shall be used. The burden of establishing that funds are
exempt rests upon the debtor. Agencies distributing government assistance and the
correctional institutions shall, at the request of creditors, inform them whether or not any
debtor has been an eligible recipient of government assistance based on need, or an inmate
of a correctional institution, within the preceding six months.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 23.

Minnesota Statutes 2022, section 550.37, subdivision 20, is amended to read:

Subd. 20.

Traceable funds.

The exemption of funds from creditors' claims, provided
by subdivisions 9, 10, 11, 15, new text begin 22, new text end and 24, shall not be affected by the subsequent deposit of
the funds in a bank or any other financial institution, whether in a single or joint account,
if the funds are traceable to deleted text begin their deleted text end new text begin the funds' new text end exempt source. In tracing the funds, the first-in
first-out method of accounting shall be used. The burden of establishing that funds are
exempt rests upon the debtor. No bank or other financial institution shall be liable for
damages for complying with process duly issued out of any court for the collection of a
debt even if the funds affected by the process are subsequently determined to have been
exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 24.

Minnesota Statutes 2022, section 550.37, subdivision 22, is amended to read:

Subd. 22.

Rights of action.

Rights of action new text begin or money received new text end for injuries to the person
of the debtor or of a relative whether or not resulting in death. new text begin Injuries to the person include
physical, mental, and emotional injuries. The exemption under this subdivision applies to
the right to receive, annuities being paid, and money already received.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 25.

Minnesota Statutes 2022, section 550.37, subdivision 23, is amended to read:

Subd. 23.

Life insurance aggregate interest.

The debtor's aggregate interest not to
exceed in value $10,000 in any accrued deleted text begin dividend deleted text end new text begin dividends new text end or interest under or loan value
of any unmatured life insurance deleted text begin contract deleted text end new text begin contracts new text end owned by the debtor under which the
insured is the debtor or an individual of whom the debtor is a dependent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 26.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 27. new text end

new text begin Household tools and equipment. new text end

new text begin The debtor's aggregate interest, not to
exceed $3,000, in household tools and equipment, including but not limited to hand and
power tools, snow removal equipment, and lawnmowers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 27.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 28. new text end

new text begin Property tax refunds. new text end

new text begin Any refund due under chapter 290A, up to a present
value of $3,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 28.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 29. new text end

new text begin Bank accounts and other property. new text end

new text begin An aggregate amount not exceeding
$5,000, regardless of the sources of the funds, in bank accounts or financial institution
depository accounts in which the debtor is an account holder, is exempt from seizure under
sections 571.91 to 571.915. Any portion of the $5,000 may, at the debtor's discretion, be
used to protect any property except earnings. This subdivision does not apply to the
exemption of wages.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 29.

new text begin [550.3711] MOTOR VEHICLE; BANKRUPTCY DEBTOR'S RIGHT TO
RETAIN.
new text end

new text begin Subdivision 1. new text end

new text begin No default. new text end

new text begin If a buyer does not default in performing the buyer's
obligations under the contract, the seller or holder is prohibited from (1) accelerating the
maturity of part or the entire amount due under the contract, or (2) repossessing the motor
vehicle.
new text end

new text begin Subd. 2. new text end

new text begin Bankruptcy. new text end

new text begin (a) Neither of the following constitutes a default in the performance
of the buyer's obligations under the contract: (1) the buyer or another individual liable under
the contract files a petition commencing a case for bankruptcy under United States Code,
title 11; or (2) the buyer or another individual liable under the contract is a debtor in
bankruptcy.
new text end

new text begin (b) The act or status under paragraph (a), clauses (1) and (2), with respect to the buyer
or another individual liable on the contract, must not be used by a seller or holder to: (1)
accelerate the maturity of a portion of or the entire amount due under the contract; or (2)
repossess the motor vehicle.
new text end

new text begin (c) A contract provision that states an act or status under paragraph (a), clauses (1) and
(2), with respect to the buyer or another individual liable on the contract, constitutes a default
is void and unenforceable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 30.

Minnesota Statutes 2022, section 550.39, is amended to read:

550.39 EXEMPTION OF INSURANCE POLICIES.

The net amount payable to any insured or to any beneficiary under any policy of accident
or disability insurance or under accident or disability clauses attached to any policy of life
insurance shall be exempt and free and clear from the claims of all creditors of such insured
or such beneficiary and from all legal and judicial processes of execution, attachment,
garnishment, or otherwise new text begin , up to a total amount of $1,000,000 per claim and subsequent
award new text end .

Sec. 31.

Minnesota Statutes 2022, section 563.01, subdivision 3, is amended to read:

Subd. 3.

new text begin Court fee waiver; new text end authorization deleted text begin of in forma pauperis deleted text end .

(a) Any court of the
state of Minnesota or any political subdivision thereof may authorize the commencement
or defense of any civil action, or appeal therein, without prepayment of fees, costs and
security for costs by a natural person who makes affidavit stating (a) the nature of the action,
defense or appeal, (b) a belief that affiant is entitled to redress, and (c) that affiant is
financially unable to pay the fees, costs and security for costs.

(b) Upon a finding by the court that the action is not of a frivolous nature, the court shall
allow the person to proceed deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end if the affidavit is
substantially in the language required by this subdivision and is not found by the court to
be untrue. Persons meeting the requirements of this subdivision include, but are not limited
to, a person who is receiving public assistance described in section 550.37, subdivision 14,
who is represented by an attorney on behalf of a civil legal services program or a volunteer
attorney program based on indigency, or who has an annual income not greater than 125
percent of the poverty line established under United States Code, title 42, section 9902(2),
except as otherwise provided by section 563.02.

(c) If, at commencement of the action, the court finds that a party does not meet the
eligibility criteria under paragraph (b), but the court also finds that the party is not able to
pay all of the fees, costs, and security for costs, the court may order payment of a fee of $75
or partial payment of the fees, costs, and security for costs, to be paid as directed by the
court.

The court administrator shall transmit any fees or payments to the commissioner of
management and budget for deposit in the state treasury and credit to the general fund.

Sec. 32.

Minnesota Statutes 2022, section 563.01, subdivision 4, is amended to read:

Subd. 4.

Payment of expenses.

Upon order of the court, the court administrator and the
sheriff of any Minnesota county shall perform their duties without charge to the person
proceeding deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end . The court shall direct payment of the
reasonable expense of service of process pursuant to subdivision 2 if served by a private
process server, if the sheriff is unavailable, or by publication.

Sec. 33.

Minnesota Statutes 2022, section 563.01, subdivision 8, is amended to read:

Subd. 8.

Appellate briefs.

In any case on appeal the appellate court shall, upon granting
permission to proceed deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end following application in
the manner provided in subdivision 3, direct payment of the reasonable expenses incurred
in obtaining the record and reproducing the appellate briefs.

Sec. 34.

Minnesota Statutes 2022, section 563.01, subdivision 9, is amended to read:

Subd. 9.

Rescinding deleted text begin in forma pauperis status deleted text end new text begin court fee waiver new text end .

Upon motion, the
court may rescind deleted text begin its deleted text end permission to proceed deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end if deleted text begin it deleted text end new text begin
the court new text end finds the allegations of poverty contained in the affidavit are untrue, or if, following
commencement of the action, the party becomes able to pay the fees, costs and security for
the costs. In such cases, the court may direct the party to pay to the court administrator any
costs allowing the action to proceed. The court administrator shall transmit the costs to the
commissioner of management and budget for deposit in the state treasury and credit them
to the general fund.

Sec. 35.

Minnesota Statutes 2022, section 563.01, subdivision 10, is amended to read:

Subd. 10.

Judgment.

Judgment may be rendered for costs at the conclusion of the action
as in other cases. In the event any person recovers moneys by either settlement or judgment
as a result of commencing or defending an action deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end ,
the costs deferred and the expenses directed by the court to be paid under this section shall
be included in such moneys and shall be paid directly to the court administrator by the
opposing party. The court administrator shall transmit the costs to the commissioner of
management and budget for deposit in the state treasury and credit them to the general fund.

Sec. 36.

Minnesota Statutes 2022, section 563.02, subdivision 2, is amended to read:

Subd. 2.

Inmate request to deleted text begin proceed in forma pauperis deleted text end new text begin waive court fees new text end .

(a) An inmate
who wishes to commence a civil action deleted text begin by proceeding in forma pauperis deleted text end new text begin with court fee
waived new text end must meet the following requirements, in addition to the requirements of section
563.01, subdivision 3:

(1) exhaust the inmate complaint procedure developed under the commissioner of
corrections policy and procedure before commencing a civil action against the department,
and state in the application to deleted text begin proceed in forma pauperis deleted text end new text begin waive court fees new text end that the inmate
has done so; and

(2) include the following information in an affidavit submitted under section 563.01:

(i) a statement that the inmate's claim is not substantially similar to a previous claim
brought by the inmate against the same party, arising from the same operative facts, and in
which there was an action that operated as an adjudication on the merits;

(ii) complete information on the inmate's identity, the nature and amount of the inmate's
income, spouse's income, if available to the inmate, real property owned by the inmate, and
the inmate's bank accounts, debts, monthly expenses, and number of dependents; and

(iii) the most recent monthly statement provided by the commissioner of corrections
showing the balance in the inmate's inmate account.

(b) The inmate shall also attach a written authorization for the court to obtain at any
time during pendency of the present action, without further authorization from the inmate,
a current statement of the inmate's inmate account balance, if needed to determine eligibility
to proceed with bringing a civil action deleted text begin in forma pauperis deleted text end new text begin with court fees waived new text end . An inmate
who has no funds in an inmate account satisfies the requirement of section 563.01,
subdivision 3, clause (c).

(c) An inmate who seeks to proceed as a plaintiff deleted text begin in forma pauperis deleted text end new text begin with court fees
waived new text end must file with the court the complaint in the action and the affidavit under this
section before serving the complaint on an opposing party.

(d) An inmate who has funds in an inmate account may only proceed as a plaintiff in a
civil action by paying the lesser of:

(1) the applicable court filing fee; or

(2) 50 percent of the balance shown in the inmate's account according to the statement
filed with the court under this subdivision, consistent with the requirements of section
243.23, subdivision 3.

(e) If an inmate elects to proceed under paragraph (d), the court shall notify the
commissioner of corrections to withdraw from the inmate's account the amount required
under this section and forward the amount to the court administrator in the county where
the action was commenced. The court shall also notify the commissioner of corrections of
the amount of the filing fee remaining unpaid. The commissioner shall continue making
withdrawals from the inmate's account and forwarding the amounts withdrawn to the court
administrator, at intervals as the applicable funds in the inmate's account equal at least $10,
until the entire filing fee and any costs have been paid in full.

Sec. 37.

Minnesota Statutes 2022, section 571.72, subdivision 6, is amended to read:

Subd. 6.

Bad faith claim.

If, in a proceeding brought under new text begin subdivision 9, new text end section 571.91,
or a similar proceeding under this chapter to determine a claim of exemption, the claim of
exemption is not upheld, and the court finds that it was asserted in bad faith, the creditor
shall be awarded actual damages, costs, reasonable attorney fees resulting from the additional
proceedings, and an amount not to exceed $100. If the claim of exemption is upheld, and
the court finds that the creditor disregarded the claim of exemption in bad faith, the debtor
shall be awarded actual damages, costs, reasonable attorney fees resulting from the additional
proceedings, and an amount not to exceed $100. The underlying judgment shall be modified
to reflect assessment of damages, costs, and attorney fees. However, if the party in whose
favor a penalty assessment is made is not actually indebted to that party's attorney for fees,
the attorney's fee award shall be made directly to the attorney and if not paid an appropriate
judgment in favor of the attorney shall be entered.

Sec. 38.

Minnesota Statutes 2022, section 571.72, subdivision 9, is amended to read:

Subd. 9.

Motion to determine objections.

new text begin (a) This subdivision applies to all garnishment
proceedings governed by this chapter. An objection regarding a garnishment must be
interposed as provided in section 571.914, subdivision 1, in the form provided under section
571.914, subdivision 2.
new text end

new text begin (b) new text end Upon motion of any party in interest, on notice, the court shall determine the validity
of any claim of exemption and may make any order necessary to protect the rights of those
interested.

new text begin (c) Upon receipt of a claim of exemption by the debtor, the creditor must comply with
the claim or interpose an objection within six business days of the date the exemption claim
was received. An objection must be interposed by:
new text end

new text begin (1) in the district court that issued the judgment, filing the Notice of Objection and
requesting a hearing; and
new text end

new text begin (2) mailing or delivering one copy of the Notice of Objection and Notice of Hearing to
the garnishee and one copy of the Notice of Objection and Notice of Hearing to the debtor.
new text end

new text begin (d) For the purposes of subdivision 6, there is a rebuttable presumption of bad faith if
the court finds that the creditor failed to comply with the requirements of this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 39.

Minnesota Statutes 2022, section 571.76, is amended to read:

571.76 GARNISHEE FEES.

deleted text begin A garnishee shall be paid a $15 fee by the creditor at the time of service of a garnishment
summons. Failure to pay the fee renders the garnishment void, and the garnishee shall take
no action. deleted text end If a garnishee is required to appear and submit to oral examination, the garnishee
shall be tendered, in advance of the examination, fees and mileage for attendance at the rate
allowed by law to a witness. These fees may be recovered by the creditor as an allowable
disbursement. In extraordinary cases, the garnishee may be allowed additional sums the
court considers reasonable for attorneys fees and other necessary expenses. The court shall
then determine which party bears the burden of this expense. If specific articles of personal
property are garnished, the garnishee is not required to deliver the property to any person
until payment of the garnishee's reasonable charges for storage.

Sec. 40.

new text begin [571.761] GARNISHMENT AND LEVY FEES PROHIBITED.
new text end

new text begin A garnishee, including but not limited to a financial institution, is prohibited from
charging a debtor a fee or fine, or imposing any other penalty of any kind, whether monetary
or nonmonetary, as a result of the garnishee receiving a garnishment summons or levy
directed at the debtor's financial account, paycheck, or other asset of any kind.
new text end

Sec. 41.

Minnesota Statutes 2022, section 571.911, is amended to read:

571.911 EXEMPTION NOTICE; DUTY OF FINANCIAL INSTITUTION.

new text begin (a) new text end If the garnishment summons is used to garnish funds of a debtor who is a natural
person and if the funds to be garnished are held on deposit at a financial institution, the
creditor shall serve with the garnishee summons a notice, instructions, and two copies of
an exemption notice. The notice, instructions, and exemption notices must be substantially
in the forms set forth in section 571.912. Failure of the creditor to send the exemption notice
renders the garnishment void, and the financial institution shall take no action.

new text begin (b) Unless the total amount in the depository accounts under the debtor's name is less
than the amount specified under section 550.37, subdivision 29, new text end upon receipt of the
garnishment summons and exemption notices, the financial institution shall retain as much
of the amount under section 571.73 as the financial institution has on deposit owing to the
debtor, but not more than 110 percent of the creditor's claim. new text begin If the amount in the account
does not exceed the amount specified under section 550.37, subdivision 29, the bank must
notify the creditor that no funds are retained.
new text end

new text begin (c) If the creditor receives notice from the financial institution that no funds are retained,
the creditor is prohibited from sending the notice under section 571.912.
new text end

new text begin (d) If the account that is subject to the garnishment summons is jointly owned, the
financial institution, upon being served the summons, a garnishee, must immediately notify
the joint account holder who is not the debtor that the holder's personal funds in the joint
account are protected from seizure and the proof the holder must provide to the financial
institution to protect the funds. The notification must be sent at least ten days before any
funds are released by the financial institution to the creditor. Upon receiving the requisite
proof from the joint account holder, the financial institution must protect that portion of the
funds from garnishment and immediately make the funds available to the account holder.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 42.

Minnesota Statutes 2022, section 571.914, subdivision 1, is amended to read:

Subdivision 1.

Objections and request for hearing.

deleted text begin An objection shall be interposed,
within six business days of receipt by the creditor of an exemption claim from the debtor,
by mailing or delivering one copy of the Notice of Objection and Notice of Hearing to the
financial institution and one copy of the Notice of Objection and Notice of Hearing to the
debtor.
deleted text end

new text begin (a) new text end The Notice of Objection and Notice of Hearing form must be substantially in the
form set out in subdivision 2.

new text begin (b) new text end The court administrator may charge a fee of $1 for the filing of a Notice of Objection
and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of Hearing, the
court administrator shall schedule the matter for hearing no sooner than five business days
but no later than seven business days from the date of filing. A debtor may request
continuance of the hearing by notifying the creditor and the court. The court shall schedule
the continued hearing within seven days of the original hearing date.

new text begin (c) new text end An order stating whether the debtor's funds are exempt shall be issued by the court
within three days of the date of the hearing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 43.

Minnesota Statutes 2022, section 571.92, is amended to read:

571.92 GARNISHMENT OF EARNINGS.

Sections 571.921 to 571.926 relate to the garnishment of earnings. new text begin The exemptions
available under section 550.37 apply to the garnishment of earnings if the debtor is a resident
of Minnesota and the debtor's place of employment is in Minnesota, regardless of where
the employer is domiciled.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 44.

Minnesota Statutes 2022, section 571.921, is amended to read:

571.921 DEFINITIONS.

For purposes of sections 571.921 to 571.926, the following terms have the meanings
given them:

(a) "Earnings" means:

(1) compensation paid or payable to an employee new text begin , independent contractor, or
self-employed person new text end for personal service whether denominated as wages, salary,
commissions, bonus, new text begin payments, profit-sharing distribution, severance payment, fees, new text end or
otherwise, and includes periodic payments pursuant to a pension or retirement program;

(2) compensation paid or payable to the producer for the sale of agricultural products;
livestock or livestock products; milk or milk products; or fruit or other horticultural products
produced when the producer is operating a family farm, a family farm corporation, or an
authorized farm corporation, as defined in section 500.24, subdivision 2; or

(3) maintenance as defined in section 518.003, subdivision 3a.

(b) "Disposable earnings" means that part of the earnings of an individual remaining
after the deduction from those earnings of amounts required by law to be withheld.

(c) "Employee" means an individual deleted text begin who performs services subject to the right of the
employer to control both what is done and how it is done. deleted text end new text begin , whether currently or formerly
employed, who is owed earnings and who:
new text end

new text begin (1) is treated by an employer as an employee for federal employment tax purposes; or
new text end

new text begin (2) receives earnings from an employer through periodic payments and is not treated by
the employer as an employee for federal employment tax purposes.
new text end

(d) "Employer" means a person deleted text begin for whom an individual performs services as an employee deleted text end new text begin
who owes or will owe earnings to an employee new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 45.

Minnesota Statutes 2022, section 571.922, is amended to read:

571.922 LIMITATION ON WAGE GARNISHMENT.

(a) Unless the judgment is for child support, the maximum part of the aggregate
disposable earnings of an individual for any pay period subjected to garnishment may not
exceed the lesser of:

(1) deleted text begin 25 deleted text end new text begin 10 new text end percent of the debtor's disposable earnings; or

(2) the amount by which the debtor's disposable earnings exceed the greater of:

(i) deleted text begin 40 deleted text end new text begin 80 new text end times the hourly wage described in section 177.24, subdivision 1, paragraph
(b), clause (1), item (iii); or

(ii) deleted text begin 40 deleted text end new text begin 80 new text end times the federal minimum hourly wages prescribed by section 6(a)(1) of the
Fair Labor Standards Act of 1938, United States Code, title 29, section 206(a)(1). The
calculation of the amount that is subject to garnishment must be based on the hourly wage
in effect at the time the earnings are payable, times the number of work weeks in the pay
period. When a pay period consists of other than a whole number of work weeks, each day
of that pay period in excess of the number of completed work weeks shall be counted as a
fraction of a work week equal to the number of excess workdays divided by the number of
days in the normal work week.

(b) If the judgment is for child support, the garnishment may not exceed:

(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);

(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the garnishment summons is
received);

(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);
or

(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the garnishment summons is
received).

Wage garnishments on judgments for child support are effective until the judgments are
satisfied if the judgment creditor is a county and the employer is notified by the county
when the judgment is satisfied.

(c) No court may make, execute, or enforce an order or any process in violation of this
section.

Sec. 46.

Minnesota Statutes 2022, section 571.924, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

The creditor shall serve upon the debtor, no less than ten
days before the service of the garnishment summons, a notice that a summons may be issued.
The notice shall: (1) be substantially in the form set out in section 571.925; (2) be served
personally, in the manner of a summons and complaint, or by first class mail to the last
known address of the debtor; (3) inform the debtor that a garnishment summons may be
served on the debtor's employer after ten days, and that the debtor may, within that time,
cause to be served on the creditor a signed statement under penalties of perjury asserting
an entitlement to an exemption from garnishment; (4) inform the debtor of the earnings
garnishment exemptions contained in section 550.37, subdivision 14; deleted text begin and deleted text end (5) advise the
debtor of the relief set forth in this chapter to which the debtor may be entitled if a creditor
in bad faith disregards a valid claim and the fee, costs, and penalty that may be assessed
against a debtor who in bad faith falsely claims an exemption or in bad faith takes action
to frustrate the garnishment process new text begin ; and (6) provide in type that is at least two points larger
than the body of the notice: (i) the date upon which the notice is mailed; (ii) a mailing
address, a fax number, and an email address for delivery of an exemption claim; and (iii) a
telephone number for the creditor's attorney or the creditor new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 47. new text begin GARNISHMENT FORMS REVISION.
new text end

new text begin (a) The commissioner of commerce must review and make recommendations to revise
into plain language the notices and forms found in Minnesota Statutes, sections 571.72,
subdivisions 8 and 10; 571.74; 571.75, subdivision 2; 571.912; and 571.925.
new text end

new text begin (b) The commissioner of commerce must review and determine whether the forms
contained in Minnesota Statutes, sections 571.711, subdivision 11; 571.914; 571.931,
subdivision 6; and 571.932, subdivision 2, should be revised into a more easily readable
and understandable format. If the commissioner of commerce determines the forms should
be revised, the commissioner of commerce must make recommendations for legislative
revisions to the forms.
new text end

new text begin (c) The recommendations made under paragraphs (a) and (b) must include proposals to
(1) explain in simple terms the meaning of garnishment in any form that uses the term
garnishment; and (2) prominently place on forms the name, telephone, fax number, and
email address of the creditor.
new text end

new text begin (d) When developing the recommendations, the commissioner must consult with the
Center for Plain Language and other plain language experts the commissioner may identify,
and must collaborate with the Office of the Attorney General and affected business and
consumer groups, including but not limited to:
new text end

new text begin (1) the Minnesota Creditors' Rights Association;
new text end

new text begin (2) the Great Lakes Credit and Collections Association;
new text end

new text begin (3) the Minnesota Bankers' Association;
new text end

new text begin (4) the Minnesota Credit Union Network;
new text end

new text begin (5) BankIn Minnesota;
new text end

new text begin (6) Mid-Minnesota Legal Aid;
new text end

new text begin (7) the Minnesota chapter of the National Association of Consumer Advocates;
new text end

new text begin (8) the Minnesota chapter of the National Association of Consumer Bankruptcy Attorneys;
new text end

new text begin (9) Lutheran Social Service; and
new text end

new text begin (10) Family Means.
new text end

new text begin (e) For the purposes of this section, "plain language" means (1) simplifying existing
language into more concise, easily readable, and understandable text; (2) using short
sentences, active voice, and words with common and everyday meanings; (3) keeping the
subject and verb close together; (4) avoiding jargon and legal language to the extent possible;
and (5) presenting text in a format that is well-organized, easy to navigate, and that is divided
into sections with clear, concise section headings and sufficient white space between sections.
new text end