SF 972

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/06/2021 12:18pm

A bill for an act
relating to commerce; establishing the Governor's budget for Department of
Commerce and Public Utilities Commission activities; modifying various provisions
governing commerce and energy policy; appropriating money; amending Minnesota
Statutes 2020, sections 60A.14, subdivision 1; 115C.094; 216B.62, subdivision
3b; 332.31, subdivisions 3, 6, by adding subdivisions; 332.311; 332.32; 332.33,
subdivisions 1, 2, 5, 5a, 7, 8, by adding a subdivision; 332.34; 332.345; 332.355;
332.37; 332.385; 332.40, subdivision 3; 332.42, subdivisions 1, 2; repealing
Minnesota Statutes 2020, section 115C.13.

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

ARTICLE 1

COMMERCE AND PUBLIC UTILITIES COMMISSION FINANCE

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2022" and "2023" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2022, or June 30, 2023, respectively.
"The first year" is fiscal year 2022. "The second year" is fiscal year 2023. "The biennium"
is fiscal years 2022 and 2023.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2022 new text end		new text begin 2023 new text end

Sec. 2. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 32,168,000 new text end

new text begin $ new text end

new text begin 31,908,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2022 new text end	new text begin 2023 new text end
new text begin General new text end	new text begin 27,541,000 new text end	new text begin 27,281,000 new text end
new text begin Special Revenue new text end	new text begin 2,060,000 new text end	new text begin 2,060,000 new text end
new text begin Petroleum Tank new text end	new text begin 1,056,000 new text end	new text begin 1,056,000 new text end
new text begin Workers' Compensation Fund new text end	new text begin 761,000 new text end	new text begin 761,000 new text end
new text begin Renewable Development new text end	new text begin 750,000 new text end	new text begin 750,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Financial Institutions new text end

new text begin 1,669,000 new text end

new text begin 1,687,000 new text end

new text begin $400,000 each year is for a grant to Prepare
and Prosper to develop, market, evaluate, and
distribute a financial services inclusion
program that (1) assists low-income and
financially underserved populations to build
savings and strengthen credit, and (2) provides
services to assist low-income and financially
underserved populations to become more
financially stable and secure. Money
remaining after the first year is available for
the second year.
new text end

new text begin Subd. 3. new text end new text begin Administrative Services new text end

new text begin 9,346,000 new text end

new text begin 8,821,000 new text end

new text begin (a) $384,000 each year is for additional
compliance efforts with unclaimed property.
The commissioner may issue contracts for
these services.
new text end

new text begin (b) $5,000 each year is for Real Estate
Appraisal Advisory Board compensation
pursuant to Minnesota Statutes, section
82B.073, subdivision 2a.
new text end

new text begin (c) $350,000 each year is from the general
fund for system modernization and
cybersecurity upgrades for the unclaimed
property program.
new text end

new text begin (d) $564,000 each year is for additional
operations of the unclaimed property program.
new text end

new text begin (e) $832,000 in fiscal year 2022 and $208,000
in fiscal year 2023 are for IT system
modernization. The base amount in fiscal year
2024 and beyond is $0.
new text end

new text begin (f) On the day after final enactment of this act,
the commissioner of commerce must cancel
$1,220,000 from the fiscal year 2021 general
fund appropriation for the administrative
services program under Laws 2019, First
Special Session chapter 7, article 1, section 6,
subdivision 3, to the general fund.
new text end

new text begin Subd. 4. new text end new text begin Telecommunications new text end

new text begin 3,133,000 new text end

new text begin 3,150,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 1,073,000 new text end	new text begin 1,090,000 new text end
new text begin Special Revenue new text end	new text begin 2,060,000 new text end	new text begin 2,060,000 new text end

new text begin $2,060,000 each year is from the
telecommunications access Minnesota fund
account in the special revenue fund for the
following transfers. This appropriation is
added to the department's base:
new text end

new text begin (1) $1,620,000 each year is to the
commissioner of human services to
supplement the ongoing operational expenses
of the Commission of Deaf, DeafBlind, and
Hard-of-Hearing Minnesotans. This
appropriation is available until June 30, 2023,
and any unexpended amount on that date must
be returned to the telecommunications access
Minnesota fund account;
new text end

new text begin (2) $290,000 each year is to the chief
information officer for the purpose of
coordinating technology accessibility and
usability;
new text end

new text begin (3) $100,000 each year is to the Legislative
Coordinating Commission for captioning of
legislative coverage. This transfer is subject
to Minnesota Statutes, section 16A.281; and
new text end

new text begin (4) $50,000 each year is to the Office of
MN.IT Services for a consolidated access fund
to provide grants or services to other state
agencies related to accessibility of their
web-based services.
new text end

new text begin Subd. 5. new text end new text begin Enforcement new text end

new text begin 5,407,000 new text end

new text begin 5,498,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 5,206,000 new text end	new text begin 5,297,000 new text end
new text begin Workers' Compensation new text end	new text begin 201,000 new text end	new text begin 201,000 new text end

new text begin (a) $279,000 each year is for health care
enforcement.
new text end

new text begin (b) $201,000 each year is from the workers'
compensation fund.
new text end

new text begin Subd. 6. new text end new text begin Insurance new text end

new text begin 6,463,000 new text end

new text begin 6,529,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 5,903,000 new text end	new text begin 5,969,000 new text end
new text begin Workers' Compensation new text end	new text begin 560,000 new text end	new text begin 560,000 new text end

new text begin (a) $642,000 each year is for health insurance
rate review staffing.
new text end

new text begin (b) $412,000 each year is for actuarial work
to prepare for implementation of
principle-based reserves.
new text end

new text begin (c) $30,000 in fiscal year 2022 is to pay for
two years of membership dues for Minnesota
to the National Conference of Insurance
Legislators.
new text end

new text begin (d) $425,000 each year is for licensing
activities under Minnesota Statutes, chapter
62W. Of this amount, $246,000 each year
must be used only for staff costs associated
with two enforcement investigators to enforce
Minnesota Statutes, chapter 62W.
new text end

new text begin (e) $560,000 each year is from the workers'
compensation fund.
new text end

new text begin Subd. 7. new text end new text begin Energy Resources new text end

new text begin 5,094,000 new text end

new text begin 5,167,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,344,000 new text end	new text begin 4,417,000 new text end
new text begin Renewable Development new text end	new text begin 750,000 new text end	new text begin 750,000 new text end

new text begin (a) $150,000 each year is from the renewable
development account in the special revenue
fund under Minnesota Statutes, section
116C.779, subdivision 1, to remediate
vermiculate insulation from households that
are eligible for weatherization assistance under
Minnesota's weatherization assistance program
state plan under Minnesota Statutes, section
216C.264. Remediation must be done in
conjunction with federal weatherization
assistance program services.
new text end

new text begin (b) $832,000 each year is for energy regulation
and planning unit staff.
new text end

new text begin (c) $100,000 each year is from the renewable
development account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, to administer the
"Made in Minnesota" solar energy production
incentive program in Minnesota Statutes,
section 216C.417. Any remaining unspent
money cancels to the renewable development
account at the end of the biennium.
new text end

new text begin (d) $500,000 each year is from the renewable
development account in the special revenue
fund established in Minnesota Statutes, section
116C.779, subdivision 1, for costs associated
with any third-party expert evaluation of a
proposal submitted in response to a request
for proposal to the renewable development
advisory group under Minnesota Statutes,
section 116C.779, subdivision 1, paragraph
(l). No portion of this appropriation may be
expended or retained by the commissioner of
commerce. Any money appropriated under
this paragraph that is unexpended at the end
of a fiscal year cancels to the renewable
development account.
new text end

new text begin Subd. 8. new text end new text begin Petroleum Tank Release Compensation Board new text end

new text begin 1,056,000 new text end

new text begin 1,056,000 new text end

Sec. 3. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin 7,923,000 new text end

new text begin $ new text end

new text begin 8,052,000 new text end

new text begin (a) $21,000 each year is to process utility
applications to install equipment crossing a
railroad right-of-way.
new text end

new text begin (b) $300,000 each year is to enhance the
commission's decision-making capability.
new text end

ARTICLE 2

COMMERCE AND ENERGY POLICY

Section 1.

Minnesota Statutes 2020, section 60A.14, subdivision 1, is amended to read:

Subdivision 1.

Fees other than examination fees.

In addition to the fees and charges
provided for examinations, the following fees must be paid to the commissioner for deposit
in the general fund:

(a) by township mutual fire insurance companies:

(1) for filing certificate of incorporation $25 and amendments thereto, $10;

(2) for filing annual statements, $15;

(3) for each annual certificate of authority, $15;

(4) for filing bylaws $25 and amendments thereto, $10;

(b) by other domestic and foreign companies including fraternals and reciprocal
exchanges:

(1) for filing an application for an initial certification of authority to be admitted to
transact business in this state, $1,500;

(2) for filing certified copy of certificate of articles of incorporation, $100;

(3) for filing annual statement, deleted text begin $225 deleted text end new text begin $300 new text end ;

(4) for filing certified copy of amendment to certificate or articles of incorporation, $100;

(5) for filing bylaws, $75 or amendments thereto, $75;

(6) for each company's certificate of authority, deleted text begin $575 deleted text end new text begin $750 new text end , annually;

(c) the following general fees apply:

(1) for each certificate, including certified copy of certificate of authority, renewal,
valuation of life policies, corporate condition or qualification, $25;

(2) for each copy of paper on file in the commissioner's office 50 cents per page, and
$2.50 for certifying the same;

(3) for license to procure insurance in unadmitted foreign companies, $575;

(4) for valuing the policies of life insurance companies, deleted text begin one cent deleted text end new text begin two cents new text end per $1,000
of insurance so valued, provided that the fee shall not exceed deleted text begin $13,000 deleted text end new text begin $26,000 new text end per year for
any company. The commissioner may, in lieu of a valuation of the policies of any foreign
life insurance company admitted, or applying for admission, to do business in this state,
accept a certificate of valuation from the company's own actuary or from the commissioner
of insurance of the state or territory in which the company is domiciled;

(5) for receiving and filing certificates of policies by the company's actuary, or by the
commissioner of insurance of any other state or territory, $50;

(6) for each appointment of an agent filed with the commissioner, $30;

(7) for filing forms, rates, and compliance certifications under section 60A.315, $140
per filing, or $125 per filing when submitted via electronic filing system. Filing fees may
be paid on a quarterly basis in response to an invoice. Billing and payment may be made
electronically;

(8) for annual renewal of surplus lines insurer license, deleted text begin $300 deleted text end new text begin $400 new text end .

The commissioner shall adopt rules to define filings that are subject to a fee.

Sec. 2.

Minnesota Statutes 2020, section 115C.094, is amended to read:

115C.094 ABANDONED UNDERGROUND STORAGE TANKS.

(a) As used in this section, an abandoned underground petroleum storage tank means
an underground petroleum storage tank that was:

(1) taken out of service prior to December 22, 1988; deleted text begin or
deleted text end

(2) taken out of service on or after December 22, 1988, if the current property owner
did not know of the existence of the underground petroleum storage tank and could not have
reasonably been expected to have known of the tank's existence at the time the owner first
acquired right, title, or interest in the tank deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) taken out of service and is located on property that is being held by the state in trust
for local taxing districts under section 281.25.
new text end

(b) The board may contract for:

(1) a statewide assessment in order to determine the quantity, location, cost, and feasibility
of removing abandoned underground petroleum storage tanks;

(2) the removal of an abandoned underground petroleum storage tank; and

(3) the removal and disposal of petroleum-contaminated soil if the removal is required
by the commissioner at the time of tank removal.

(c) Before the board may contract for removal of an abandoned petroleum storage tank,
the tank owner must provide the board with written access to the property and release the
board from any potential liability for the work performed.

new text begin (d) If at the time of the forfeiture of property identified under paragraph (a), clause (3),
the property owner or the owner's heirs, devisees, or representatives, or any person to whom
the right to pay taxes was granted by statute, mortgage, or other agreement, repurchases the
property under section 282.241, the board's contracted costs for the underground storage
tank removal project must be included as a special assessment included in the repurchase
price, as provided under section 282.251, and must be returned to the board upon the sale
of the property.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end Money in the fund is appropriated to the board for the purposes of this section.

Sec. 3.

Minnesota Statutes 2020, section 216B.62, subdivision 3b, is amended to read:

Subd. 3b.

Assessment for department regional and national duties.

In addition to
other assessments in subdivision 3, the department may assess up to $500,000 per fiscal
year for performing its duties under section 216A.07, subdivision 3a. The amount in this
subdivision shall be assessed to energy utilities in proportion to their respective gross
operating revenues from retail sales of gas or electric service within the state during the last
calendar year and shall be deposited into an account in the special revenue fund and is
appropriated to the commissioner of commerce for the purposes of section 216A.07,
subdivision 3a. An assessment made under this subdivision is not subject to the cap on
assessments provided in subdivision 3 or any other law. For the purpose of this subdivision,
an "energy utility" means public utilities, generation and transmission cooperative electric
associations, and municipal power agencies providing natural gas or electric service in the
state. deleted text begin This subdivision expires June 30, 2021.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2020, section 332.31, subdivision 3, is amended to read:

Subd. 3.

Collection agency.

"Collection agency" new text begin or "licensee" new text end means deleted text begin and includes any deleted text end new text begin
(1) a new text end person engaged in the business of collection for others any account, bill new text begin , new text end or other
indebtedness new text begin , new text end except as hereinafter provided new text begin ; or (2) a debt buyer new text end . It includes 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. 5.

Minnesota Statutes 2020, section 332.31, subdivision 6, is amended to read:

Subd. 6.

Collector.

"Collector" is a person acting under the authority of a collection
agency under subdivision 3 new text begin or a debt buyer under subdivision 8 new text end , and on its behalf in the
business of collection for deleted text begin others deleted text end an account, bill, or other indebtedness except as otherwise
provided in this chapter.

Sec. 6.

Minnesota Statutes 2020, section 332.31, is amended by adding a subdivision to
read:

new text begin Subd. 8. new text end

new text begin Debt buyer. new text end

new text begin "Debt buyer" means a business engaged in the purchase of any
charged-off account, bill, or other indebtedness for collection purposes, whether the business
collects the account, bill, or other indebtedness, hires a third party for collection, or hires
an attorney for litigation related to the collection.
new text end

Sec. 7.

Minnesota Statutes 2020, section 332.31, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Affiliated company. new text end

new text begin "Affiliated company" means a company that: (1) directly
or indirectly controls, is controlled by, or is under common control with another company
or companies; (2) has the same executive management team or owner that exerts control
over the business operations of the company; (3) maintains a uniform network of corporate
and compliance policies and procedures; and (4) does not engage in active collection of
debts.
new text end

Sec. 8.

Minnesota Statutes 2020, section 332.311, is amended to read:

332.311 TRANSFER OF ADMINISTRATIVE FUNCTIONS.

The powers, duties, and responsibilities of the consumer services section under sections
332.31 to 332.44 relating to collection agencies new text begin and debt buyers new text end are hereby transferred to
and imposed upon the commissioner of commerce.

Sec. 9.

Minnesota Statutes 2020, section 332.32, is amended to read:

332.32 EXCLUSIONS.

(a) The term "collection agency" deleted text begin shall deleted text end new text begin does new text end not include deleted text begin persons whose collection activities
are confined to and are directly related to the operation of a business other than that of a
collection agency such as, but not limited to deleted text end 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, lawyers, 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. 10.

Minnesota Statutes 2020, section 332.33, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

Except as otherwise provided in this chapter, no person
shall conduct deleted text begin within this state a collection agency or engage within this state in the business
of collecting claims for others deleted text end new text begin business in Minnesota as a collection agency or debt buyer, new text end
as defined in sections 332.31 to 332.44, without having first applied for and obtained a
collection agency license. A person acting under the authority of a collection agency, new text begin debt
buyer, or new text end as a collector deleted text begin , deleted text end must first register with the commissioner under this section. A
registered collector may use one additional assumed name only if the assumed name is
registered with and approved by the commissioner. new text begin A business that operates as a debt buyer
must submit a completed license application no later than January 1, 2022. A debt buyer
who has filed an application with the commissioner for a collection agency license prior to
January 1, 2022, and whose application remains pending with the commissioner thereafter,
may continue to operate without a license until the commissioner approves or denies the
application.
new text end

Sec. 11.

Minnesota Statutes 2020, section 332.33, subdivision 2, is amended to read:

Subd. 2.

Penalty.

A person who carries on business as a collection agency new text begin or debt buyer new text end
without first having obtained a license or acts as a collector without first having registered
with the commissioner pursuant to sections 332.31 to 332.44, or who carries on this business
after the revocation, suspension, or expiration of a license or registration is guilty of a
misdemeanor.

Sec. 12.

Minnesota Statutes 2020, section 332.33, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Collection agency deleted text end License rejection.

On finding that an applicant for a
deleted text begin collection agency deleted text end license is not qualified under sections 332.31 to 332.44, the commissioner
shall reject the application and shall give the applicant written notice of the rejection and
the reasons for the rejection.

Sec. 13.

Minnesota Statutes 2020, section 332.33, subdivision 5a, is amended to read:

Subd. 5a.

Individual collector registration.

A deleted text begin licensed collection agency deleted text end new text begin licensee new text end , on
behalf of an individual collector, must register with the state all individuals in the deleted text begin collection
agency's deleted text end new text begin licensee's new text end employ who are performing the duties of a collector as defined in sections
332.31 to 332.44. The deleted text begin collection agency deleted text end new text begin licensee new text end must apply for an individual collection
registration in a form prescribed by the commissioner. The deleted text begin collection agency deleted text end new text begin licensee new text end shall
verify on the form that the applicant has confirmed that the applicant meets the requirements
to perform the duties of a collector as defined in sections 332.31 to 332.44. Upon submission
of the application to the department, the individual may begin to perform the duties of a
collector and may continue to do so unless the deleted text begin licensed collection agency deleted text end new text begin licensee new text end is informed
by the commissioner that the individual is ineligible.

Sec. 14.

Minnesota Statutes 2020, section 332.33, subdivision 7, is amended to read:

Subd. 7.

Changes; notice to commissioner.

(a) A deleted text begin licensed collection agency deleted text end new text begin licensee new text end
must give the commissioner written notice of a change in company name, address, or
ownership not later than ten days after the change occurs. A registered individual collector
must give written notice of a change of address, name, or assumed name no later than ten
days after the change occurs.

(b) Upon the death of any deleted text begin collection agency deleted text end licensee, the license of the decedent may
be transferred to the executor or administrator of the estate for the unexpired term of the
license. The executor or administrator may be authorized to continue or discontinue the
collection business of the decedent under the direction of the court having jurisdiction of
the probate.

Sec. 15.

Minnesota Statutes 2020, section 332.33, subdivision 8, is amended to read:

Subd. 8.

Screening process requirement.

(a) Each deleted text begin licensed collection agency deleted text end new text begin licensee new text end
must establish procedures to follow when screening an individual collector applicant prior
to submitting an applicant to the commissioner for initial registration and at renewal.

(b) The screening process for initial registration must be done at the time of hiring. The
process must include a national criminal history record search, an attorney licensing search,
and a county criminal history search for all counties where the applicant has resided within
the five years immediately preceding the initial registration, to determine whether the
applicant is eligible to be registered under section 332.35. Each deleted text begin licensed collection agency deleted text end new text begin
licensee new text end shall use a vendor that is a member of the National Association of Professional
Background Screeners, or an equivalent vendor, to conduct this background screening
process.

(c) Screening for renewal of individual collector registration must include a national
criminal history record search and a county criminal history search for all counties where
the individual has resided during the immediate preceding year. Screening for renewal of
individual collector registrations must take place no more than 60 days before the license
expiration or renewal date. A renewal screening is not required if an individual collector
has been subjected to an initial background screening within 12 months of the first registration
renewal date. A renewal screening is required for all subsequent annual registration renewals.

(d) The commissioner may review the procedures to ensure the integrity of the screening
process. Failure by a deleted text begin licensed collection agency deleted text end new text begin licensee new text end to establish these procedures is
subject to action under section 332.40.

Sec. 16.

Minnesota Statutes 2020, section 332.33, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Affiliated companies. new text end

new text begin The commissioner must permit affiliated companies to
operate under a single license and be subject to a single examination, provided that all of
the affiliated company names are listed on the license.
new text end

Sec. 17.

Minnesota Statutes 2020, section 332.34, is amended to read:

332.34 BOND.

The commissioner of commerce shall require each deleted text begin collection agency deleted text end licensee to file and
maintain in force a corporate surety bond, in a form to be prescribed by, and acceptable to,
the commissioner, and in a sum of at least $50,000 plus an additional $5,000 for each
$100,000 received by the collection agency from debtors located in Minnesota during the
previous calendar year, less commissions earned by the collection agency on those collections
for the previous calendar year. The total amount of the bond shall not exceed $100,000. A
deleted text begin collection agency deleted text end new text begin licensee new text end may deposit cash in and with a depository acceptable to the
commissioner in an amount and in the manner prescribed and approved by the commissioner
in lieu of a bond.

Sec. 18.

Minnesota Statutes 2020, section 332.345, is amended to read:

332.345 SEGREGATED ACCOUNTS.

A payment collected by a collector or collection agency on behalf of a customer shall
be held by the collector or collection agency in a separate trust account clearly designated
for customer funds. The account must be in a bank or other depository institution authorized
or chartered under the laws of any state or of the United States. new text begin This section does not apply
to a debt buyer, except to the extent the debt buyer engages in third party debt collection
for others.
new text end

Sec. 19.

Minnesota Statutes 2020, section 332.355, is amended to read:

332.355 AGENCY RESPONSIBILITY FOR COLLECTORS.

The commissioner may take action against a deleted text begin collection agency deleted text end new text begin licensee new text end for any violations
of debt collection laws by its debt collectors. The commissioner may also take action against
the debt collectors themselves for these same violations.

Sec. 20.

Minnesota Statutes 2020, section 332.37, is amended to read:

332.37 PROHIBITED PRACTICES.

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

(1) in collection letters or publications, or in any communication, oral or written threaten
wage garnishment or legal suit by a particular lawyer, unless it 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 or otherwise engage in the practice of law or represent that it is
competent to do so;

(5) communicate with debtors in a misleading or deceptive manner by 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) exercise authority on behalf of a deleted text begin creditor deleted text end new text begin client new text end to employ the services of lawyers
unless the deleted text begin creditor deleted text end new text begin client new text end 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 deleted text begin creditor deleted text end new text begin client new text end ;

(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 deleted text begin creditor deleted text end new text begin client new text end , claimant or forwarder after tender of
the amounts due and owing to deleted text begin the deleted text end new text begin a collection new text end 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 that the new text begin collection new text end agency new text begin or debt
buyer new text end is a branch of or associated with any department of federal, state, county or local
government or an agency thereof;

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

(11) transact business or hold itself out as a debt deleted text begin prorater deleted text end new text begin settlement company, debt
management company new text end , 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, while attempting to collect on any account, bill or other indebtedness;

(13) communicate with a debtor by use of a recorded message utilizing an automatic
dialing announcing device deleted text begin unless the recorded message is immediately preceded by a live
operator who discloses prior to the message the name of the collection agency and the fact
the message intends to solicit payment and the operator obtains the consent of the debtor
to hearing the message deleted text end new text begin after the debtor expressly informs the agency or collector to cease
communication utilizing an automatic dialing announcing device new text end ;

(14) in collection letters or publications, or in any communication, oral or written, imply
or suggest that health care services will be withheld in an emergency situation;

(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 licensee or collector, except a person who resides
with the debtor or a third party with whom the debtor has authorized the licensee or collector
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 licensee's or collector's telephone number and
name;

(16) when attempting to collect a debt, fail to provide the debtor with the full name of
the collection agency new text begin or debt buyer new text end as it appears on its license new text begin or as listed on any "doing
business as" or "d/b/a" registered with the Department of Commerce new text end ;

(17) collect any money from a debtor that is not reported to a deleted text begin creditor or deleted text end new text begin client;
new text end

new text begin (18) new text end 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;

deleted text begin (18) deleted text end new text begin (19) new text end 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;

deleted text begin (19) deleted text end new text begin (20) new text end attempt to collect any amount deleted text begin of money deleted text end new text begin , including any interest, fee, charge,
or expense incidental to the charge-off obligation, new text end from a debtor deleted text begin or deleted text end new text begin unless the amount is
expressly authorized by the agreement creating the debt or is otherwise permitted by law;
new text end

new text begin (21) new text end charge a fee to a deleted text begin creditor deleted text end new text begin client new text end that is not authorized by agreement with the client;

deleted text begin (20) deleted text end new text begin (22) new text end falsify any collection agency documents with the intent to deceive a debtor,
creditor, or governmental agency;

deleted text begin (21) deleted text end new text begin (23) new text end 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 disclosure must state: "This
collection agency is licensed by the Minnesota Department of Commerce" new text begin or "This debt
buyer is licensed by the Minnesota Department of Commerce" as applicable new text end ; or

deleted text begin (22) deleted text end new text begin (24) new text end commence legal action to collect a debt outside the limitations period set forth
in section 541.053.

new text begin (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.
new text end

Sec. 21.

Minnesota Statutes 2020, section 332.385, is amended to read:

332.385 NOTIFICATION TO COMMISSIONER.

The collection agency new text begin or debt buyer new text end licensee shall notify the commissioner of any
employee termination within ten days of the termination if deleted text begin it deleted text end new text begin the termination new text end is new text begin based new text end in
whole or in part deleted text begin based deleted text end on a violation of this chapter.

Sec. 22.

Minnesota Statutes 2020, section 332.40, subdivision 3, is amended to read:

Subd. 3.

Commissioner's powers.

new text begin (a) new text end For the purpose of any investigation or proceeding
under sections 332.31 to 332.44, the commissioner or any person designated by the
commissioner may administer oaths and affirmations, subpoena collection agencies new text begin , debt
buyers, new text end or collectors and compel their attendance, take evidence and require the production
of any books, papers, correspondence, memoranda, agreements or other documents or
records which the commissioner deems relevant or material to the inquiry. The subpoena
shall contain a written statement setting forth the circumstances which have reasonably
caused the commissioner to believe that a violation of sections 332.31 to 332.44 may have
occurred.

new text begin (b) new text end In the event that the collection agency new text begin , debt buyer, new text end or collector refuses to obey the
subpoena, or should the commissioner, upon completion of the examination of the collection
agency new text begin , debt buyer, new text end or collector, reasonably conclude that a violation has occurred, the
commissioner may examine additional witnesses, including third parties, as may be necessary
to complete the investigation.

new text begin (c) new text end Any subpoena issued pursuant to this section shall be served by certified mail or by
personal service. Service shall be made at least 15 days prior to the date of appearance.

Sec. 23.

Minnesota Statutes 2020, section 332.42, subdivision 1, is amended to read:

Subdivision 1.

Verified financial statement.

The commissioner of commerce may at
any time require a deleted text begin collection agency deleted text end licensee to submit a verified financial statement for
examination by the commissioner to determine whether the deleted text begin collection agency deleted text end licensee is
financially responsible to carry on a collection deleted text begin agency deleted text end business within the intents and
purposes of sections 332.31 to 332.44.

Sec. 24.

Minnesota Statutes 2020, section 332.42, subdivision 2, is amended to read:

Subd. 2.

Record keeping.

The commissioner shall require the collection agency new text begin or debt
buyer new text end licensee to keep such books and records in the licensee's place of business in this
state as will enable the commissioner to determine whether there has been compliance with
the provisions of sections 332.31 to 332.44, unless the agency is a foreign corporation duly
authorized, admitted, and licensed to do business in this state and complies with all the
requirements of chapter 303 and with all other requirements of sections 332.31 to 332.44.
Every collection agency licensee shall preserve the records of final entry used in such
business for a period of five years after final remittance is made on any amount placed with
the licensee for collection or after any account has been returned to the claimant on which
one or more payments have been made. new text begin Every debt buyer licensee must preserve the records
of final entry used in such business for a period of five years after final collection of any
purchased account.
new text end

Sec. 25. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 115C.13, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 21-02267

115C.13 REPEALER.

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05, 115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11, 115C.112, 115C.113, 115C.12, and 115C.13, are repealed effective June 30, 2022.