1.1                          A bill for an act 
  1.2             relating to commerce; regulating collection agencies; 
  1.3             exempting out-of-state agencies from regulation; 
  1.4             amending Minnesota Statutes 1996, section 332.31, 
  1.5             subdivisions 3, 6, and by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 332.31, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [COLLECTION AGENCY.] "Collection agency" means 
  1.10  and includes any person engaged in the business of collection 
  1.11  for ~~others~~ a Minnesota creditor of any account, bill or other 
  1.12  indebtedness except as hereinafter provided.  It includes 
  1.13  persons who furnish collection systems carrying a name which 
  1.14  simulates the name of a collection agency and who supply forms 
  1.15  or form letters to be used by the creditor, even though such 
  1.16  forms direct the debtor to make payments directly to the 
  1.17  creditor rather than to such fictitious agency.  
  1.18     Sec. 2.  Minnesota Statutes 1996, section 332.31, 
  1.19  subdivision 6, is amended to read: 
  1.20     Subd. 6.  [COLLECTOR.] "Collector" is a person acting under 
  1.21  the authority of a collection agency under subdivision 3, and on 
  1.22  its behalf in the business of collection for ~~others an~~ Minnesota 
  1.23  creditors of any account, bill, or other indebtedness except as 
  1.24  otherwise provided in this chapter. 
  1.25     Sec. 3.  Minnesota Statutes 1996, section 332.31, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 7.  [OUT-OF-STATE COLLECTION AGENCY.] No person shall 
  2.3   be considered to be engaged in the business of collection for 
  2.4   others of any account, bill, or other indebtedness if:  (1) that 
  2.5   person is regulated as a collection agency under the laws of 
  2.6   another state and that person's activities within this state are 
  2.7   limited to collecting debts for out-of-state creditors from 
  2.8   debtors residing in this state by means of interstate 
  2.9   communications, including telephone, mail, or facsimile 
  2.10  transmission, from the person's location in another state; and 
  2.11  (2) that person discloses to the debtor in each communication 
  2.12  the state in which the person is regulated and engages in the 
  2.13  business of collecting debts.  However, if the communication by 
  2.14  an out-of-state collection agency is contrary to section 332.37, 
  2.15  or does not include the disclosure required in clause (2), the 
  2.16  collection agency is subject to the jurisdiction of this state 
  2.17  under section 45.027 with respect to the communication.