Minnesota Session Laws - 2000, Regular Session

                            CHAPTER 389-S.F.No. 619 
                  An act relating to commerce; regulating collection 
                  agencies; exempting out-of-state agencies from 
                  licensure under certain conditions; amending Minnesota 
                  Statutes 1998, section 332.31, by adding a 
                  subdivision; proposing coding for new law in Minnesota 
                  Statutes, chapter 332. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 332.31, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [EXEMPT OUT-OF-STATE COLLECTION AGENCY.] "Exempt 
        out-of-state collection agency" means a collection agency that 
        has no physical presence in this state, that is engaged in the 
        business of collecting claims on behalf of creditors that have 
        no physical presence in this state, and that only conducts 
        business within this state by means of interstate communications 
        including telephone, mail, and facsimile transmission. 
           Sec. 2.  [332.335] [EXEMPTION FROM LICENSURE.] 
           Subdivision 1.  [EXEMPTION FROM LICENSURE.] An exempt 
        out-of-state collection agency, as defined by section 332.31, 
        subdivision 7, that has obtained a certificate of exemption 
        under subdivision 2 is exempt from the collector and collection 
        agency licensing requirements of this chapter, but is subject to 
        all other provisions of sections 45.027 and 332.31 to 332.45. 
           Subd. 2.  [CERTIFICATE OF EXEMPTION.] To qualify as an 
        exempt out-of-state collection agency, a person, except for 
        those excluded from the definition of collection agency under 
        section 332.32, must, before initiating collection activity, 
        obtain a certificate of exemption from the commissioner.  A 
        certificate of exemption must be issued upon the applicant's 
        filing an application on a form approved by the commissioner if 
        the applicant is found to be qualified under this chapter.  The 
        form must include: 
           (1) a signed statement that the exempt out-of-state 
        collection agency holds a valid license to do business as a 
        collection agency in another state whose requirements for 
        licensing are similar to the requirements imposed under this 
        chapter along with a copy of the licensing document from the 
        other state; 
           (2) certification that the exempt out-of-state collection 
        agency will not solicit or collect claims for any creditor who 
        has a business presence in this state.  A creditor has a 
        business presence in this state if either the creditor or an 
        affiliate or subsidiary of the creditor has an office in this 
        state; 
           (3) certification that the exempt out-of-state collection 
        agency will not establish a physical presence in this state and 
        that all collection activity in this state will be conducted 
        exclusively by means of interstate communications including 
        telephone, mail, or facsimile transmission; 
           (4) evidence of a corporate surety bond substantially 
        similar, as determined by the commissioner, to the bond required 
        under section 332.34; 
           (5) appointment of the commissioner as the exempt 
        out-of-state collection agency's agent for service of process in 
        this state; and 
           (6) written acknowledgment that the exempt out-of-state 
        collection agency agrees to be subject to the jurisdiction of 
        Minnesota courts and the Minnesota Administrative Procedures 
        Act, chapter 14, in connection with the commissioner's 
        enforcement of Minnesota law pertaining to collection activities 
        in Minnesota, including compliance with this chapter and chapter 
        45. 
           Subd. 3.  [NOTICE.] An exempt out-of-state collection 
        agency must advise the commissioner of any material changes to 
        the information submitted in the most recent application within 
        ten days of the change. 
           Subd. 4.  [LOSS OF EXEMPTION.] In addition to fines and 
        other authorized sanctions, a certificate of exemption is 
        considered revoked if the exempt out-of-state collection agency 
        is found to be in violation of any provision of Minnesota 
        Statutes, chapter 45 or 332, or the Fair Debt Collection 
        Practices Act of 1977, United States Code, title 15, sections 
        1691 to 1693r. 
           Presented to the governor April 10, 2000 
           Signed by the governor April 13, 2000, 5:00 p.m.