Minnesota Legislature
HF 1443
1st Unofficial Engrossment - 90th Legislature (2017 - 2018) Posted on 05/16/2017 04:48pm
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - 1st Unofficial Engrossment
1.2relating to commerce; regulating insurance fraud; modifying certain penalties and
1.3notices; defining a term; clarifying the authority of the Commerce Fraud Bureau
1.4to apply for or execute search warrants;amending Minnesota Statutes 2016, sections
1.513.82, subdivision 17; 45.0135, subdivision 9; 60A.27, subdivision 1; 65B.84, by
1.6adding a subdivision; 626.05, subdivision 2.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2016, section 13.82, subdivision 17, is amended to read:
1.9 Subd. 17. Protection of identities. A law enforcement agency or a law enforcement
1.10dispatching agency working under direction of a law enforcement agency shall withhold
1.11public access to data on individuals to protect the identity of individuals in the following
1.12circumstances:
1.13(a) when access to the data would reveal the identity of an undercover law enforcement
1.14officer, as provided in section13.43, subdivision 5 ;
1.15(b) when access to the data would reveal the identity of a victim or alleged victim of
1.16criminal sexual conduct or sex trafficking under section609.322 ,
609.341 to
609.3451 , or
1.17617.246, subdivision 2
;
1.18(c) when access to the data would reveal the identity of a paid or unpaid informant being
1.19used by the agency if the agency reasonably determines that revealing the identity of the
1.20informant would threaten the personal safety of the informant;
1.21(d) when access to the data would reveal the identity of a victim of or witness to a crime
1.22if the victim or witness specifically requests not to be identified publicly, unless the agency
2.1reasonably determines that revealing the identity of the victim or witness would not threaten
2.2the personal safety or property of the individual;
2.3(e) when access to the data would reveal the identity of a deceased person whose body
2.4was unlawfully removed from a cemetery in which it was interred;
2.5(f) when access to the data would reveal the identity of a person who placed a call to a
2.6911 system or the identity or telephone number of a service subscriber whose phone is used
2.7to place a call to the 911 system and: (1) the agency determines that revealing the identity
2.8may threaten the personal safety or property of any person; or (2) the object of the call is
2.9to receive help in a mental health emergency. For the purposes of this paragraph, a voice
2.10recording of a call placed to the 911 system is deemed to reveal the identity of the caller;
2.11(g) when access to the data would reveal the identity of a juvenile witness and the agency
2.12reasonably determines that the subject matter of the investigation justifies protecting the
2.13identity of the witness; or
2.14(h) when access to the data would reveal the identity of a mandated reporter under section
2.1560A.952, subdivision 2,609.456 ,
626.556 , or
626.557 .
2.16Data concerning individuals whose identities are protected by this subdivision are private
2.17data about those individuals. Law enforcement agencies shall establish procedures to acquire
2.18the data and make the decisions necessary to protect the identity of individuals described
2.19in clauses (c), (d), (f), and (g).
2.20 Sec. 2. Minnesota Statutes 2016, section 45.0135, subdivision 9, is amended to read:
2.21 Subd. 9. Administrative penalty for insurance fraud. (a) The commissioner may:
2.22(1) impose an administrative penalty against any person in an amount as set forth in
2.23paragraph (b) for each intentional act of or repeated attempted acts of insurance fraud
2.24committed by that person;and
2.25(2) order restitution to any person suffering loss as a result of the insurance fraud.; and
2.26(3) order restitution to a company for the cost of any investigation in connection with
2.27the insurance fraud.
2.28(b) The administrative penalty for each violation described in paragraph (a) may be no
2.29more than:
2.30(1) $20,000 if the funds or the value of the property or services wrongfully obtained
2.31exceeds $5,000;
3.1(2) $10,000 if the funds or value of the property or services wrongfully obtained exceeds
3.2$1,000, but not more than $5,000;
3.3(3) $3,000 if the funds or value of the property or services wrongfully obtained is more
3.4than $500, but not more than $1,000; and
3.5(4) $1,000 if the funds or value of the property or services wrongfully obtained is $500
3.6or less.
3.7(c) If an administrative penalty is not paid after all rights of appeal have been waived
3.8or exhausted, the commissioner may bring a civil action in a court of competent jurisdiction
3.9to collect the administrative penalty, including expenses and litigation costs, reasonable
3.10attorney fees, and interest.
3.11(d) This section does not affect a person's right to seek recovery, including expenses
3.12and litigation costs, reasonable attorney fees, and interest, against any person that commits
3.13insurance fraud.
3.14(e) For purposes of this subdivision, "insurance fraud" has the meaning given in section
3.1560A.951, subdivision 4
.
3.16(f) Hearings under this subdivision must be conducted in accordance with chapter 14
3.17and any other applicable law.
3.18(g) All revenues from penalties, expenses, costs, fees, and interest collected under
3.19paragraphs (a) to (c) shall be deposited in the insurance fraud prevention account under
3.20subdivision 6.
3.21 Sec. 3. Minnesota Statutes 2016, section 60A.27, subdivision 1, is amended to read:
3.22 Subdivision 1. Requirement. An insurance company licensed to transact business in
3.23this state is hereby required to notify the commissioner of commerce within ten business
3.24days of the happening of any one or more of the following:
3.25(1) the suspension or revocation of its right to transact business in another state; or
3.26(2) the receipt by the insurance company of an order to show why its license should not
3.27be suspended or revoked; or.
3.28(3) the imposition of a penalty by any other state for any violation of the insurance
laws
3.29of such other state.
4.1 Sec. 4. Minnesota Statutes 2016, section 65B.84, is amended by adding a subdivision to
4.2read:
4.3 Subd. 5. Definition. For purposes of this section, "automobile theft" includes
4.4automobile-related theft.
4.5 Sec. 5. Minnesota Statutes 2016, section 626.05, subdivision 2, is amended to read:
4.6 Subd. 2. Peace officer. The term "peace officer," as used in sections626.04 to
626.17 ,
4.7means a person who is licensed as a peace officer in accordance with section626.84,
4.8subdivision 1 , and who serves as a sheriff, deputy sheriff, police officer, conservation officer,
4.9agent of the Bureau of Criminal Apprehension, agent of the Division of Alcohol and
4.10Gambling Enforcement, peace officer of the Commerce Fraud Bureau, University of
4.11Minnesota peace officer, Metropolitan Transit police officer, Minnesota Department of
4.12Corrections Fugitive Apprehension Unit member, or State Patrol trooper as authorized by
4.13section299D.03 .
4.14 Sec. 6. EFFECTIVE DATE.
4.15Sections 1 to 5 are effective the day following final enactment.
1.3notices; defining a term; clarifying the authority of the Commerce Fraud Bureau
1.4to apply for or execute search warrants;amending Minnesota Statutes 2016, sections
1.513.82, subdivision 17; 45.0135, subdivision 9; 60A.27, subdivision 1; 65B.84, by
1.6adding a subdivision; 626.05, subdivision 2.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. Minnesota Statutes 2016, section 13.82, subdivision 17, is amended to read:
1.9 Subd. 17. Protection of identities. A law enforcement agency or a law enforcement
1.10dispatching agency working under direction of a law enforcement agency shall withhold
1.11public access to data on individuals to protect the identity of individuals in the following
1.12circumstances:
1.13(a) when access to the data would reveal the identity of an undercover law enforcement
1.14officer, as provided in section
1.15(b) when access to the data would reveal the identity of a victim or alleged victim of
1.16criminal sexual conduct or sex trafficking under section
1.18(c) when access to the data would reveal the identity of a paid or unpaid informant being
1.19used by the agency if the agency reasonably determines that revealing the identity of the
1.20informant would threaten the personal safety of the informant;
1.21(d) when access to the data would reveal the identity of a victim of or witness to a crime
1.22if the victim or witness specifically requests not to be identified publicly, unless the agency
2.1reasonably determines that revealing the identity of the victim or witness would not threaten
2.2the personal safety or property of the individual;
2.3(e) when access to the data would reveal the identity of a deceased person whose body
2.4was unlawfully removed from a cemetery in which it was interred;
2.5(f) when access to the data would reveal the identity of a person who placed a call to a
2.6911 system or the identity or telephone number of a service subscriber whose phone is used
2.7to place a call to the 911 system and: (1) the agency determines that revealing the identity
2.8may threaten the personal safety or property of any person; or (2) the object of the call is
2.9to receive help in a mental health emergency. For the purposes of this paragraph, a voice
2.10recording of a call placed to the 911 system is deemed to reveal the identity of the caller;
2.11(g) when access to the data would reveal the identity of a juvenile witness and the agency
2.12reasonably determines that the subject matter of the investigation justifies protecting the
2.13identity of the witness; or
2.14(h) when access to the data would reveal the identity of a mandated reporter under section
2.1560A.952, subdivision 2,
2.16Data concerning individuals whose identities are protected by this subdivision are private
2.17data about those individuals. Law enforcement agencies shall establish procedures to acquire
2.18the data and make the decisions necessary to protect the identity of individuals described
2.19in clauses (c), (d), (f), and (g).
2.20 Sec. 2. Minnesota Statutes 2016, section 45.0135, subdivision 9, is amended to read:
2.21 Subd. 9. Administrative penalty for insurance fraud. (a) The commissioner may:
2.22(1) impose an administrative penalty against any person in an amount as set forth in
2.23paragraph (b) for each intentional act of or repeated attempted acts of insurance fraud
2.24committed by that person;
2.25(2) order restitution to any person suffering loss as a result of the insurance fraud
2.26(3) order restitution to a company for the cost of any investigation in connection with
2.27the insurance fraud.
2.28(b) The administrative penalty for each violation described in paragraph (a) may be no
2.29more than:
2.30(1) $20,000 if the funds or the value of the property or services wrongfully obtained
2.31exceeds $5,000;
3.1(2) $10,000 if the funds or value of the property or services wrongfully obtained exceeds
3.2$1,000, but not more than $5,000;
3.3(3) $3,000 if the funds or value of the property or services wrongfully obtained is more
3.4than $500, but not more than $1,000; and
3.5(4) $1,000 if the funds or value of the property or services wrongfully obtained is $500
3.6or less.
3.7(c) If an administrative penalty is not paid after all rights of appeal have been waived
3.8or exhausted, the commissioner may bring a civil action in a court of competent jurisdiction
3.9to collect the administrative penalty, including expenses and litigation costs, reasonable
3.10attorney fees, and interest.
3.11(d) This section does not affect a person's right to seek recovery, including expenses
3.12and litigation costs, reasonable attorney fees, and interest, against any person that commits
3.13insurance fraud.
3.14(e) For purposes of this subdivision, "insurance fraud" has the meaning given in section
3.16(f) Hearings under this subdivision must be conducted in accordance with chapter 14
3.17and any other applicable law.
3.18(g) All revenues from penalties, expenses, costs, fees, and interest collected under
3.19paragraphs (a) to (c) shall be deposited in the insurance fraud prevention account under
3.20subdivision 6.
3.21 Sec. 3. Minnesota Statutes 2016, section 60A.27, subdivision 1, is amended to read:
3.22 Subdivision 1. Requirement. An insurance company licensed to transact business in
3.23this state is hereby required to notify the commissioner of commerce within ten business
3.24days of the happening of any one or more of the following:
3.25(1) the suspension or revocation of its right to transact business in another state; or
3.26(2) the receipt by the insurance company of an order to show why its license should not
3.27be suspended or revoked
3.28
3.29
4.1 Sec. 4. Minnesota Statutes 2016, section 65B.84, is amended by adding a subdivision to
4.2read:
4.3 Subd. 5. Definition. For purposes of this section, "automobile theft" includes
4.4automobile-related theft.
4.5 Sec. 5. Minnesota Statutes 2016, section 626.05, subdivision 2, is amended to read:
4.6 Subd. 2. Peace officer. The term "peace officer," as used in sections
4.7means a person who is licensed as a peace officer in accordance with section
4.8subdivision 1
4.9agent of the Bureau of Criminal Apprehension, agent of the Division of Alcohol and
4.10Gambling Enforcement, peace officer of the Commerce Fraud Bureau, University of
4.11Minnesota peace officer, Metropolitan Transit police officer, Minnesota Department of
4.12Corrections Fugitive Apprehension Unit member, or State Patrol trooper as authorized by
4.13section
4.14 Sec. 6. EFFECTIVE DATE.
4.15Sections 1 to 5 are effective the day following final enactment.