Bill Text: MN HF2335 | 2011-2012 | 87th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Debt collection agency and registration of individual debt collector procedures amended.
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Passed) 2012-04-24 - Secretary of State Chapter 225 04/23/12 [HF2335 Detail]
Download: Minnesota-2011-HF2335-Engrossed.html
Bill Title: Debt collection agency and registration of individual debt collector procedures amended.
Spectrum: Moderate Partisan Bill (Republican 5-1)
Status: (Passed) 2012-04-24 - Secretary of State Chapter 225 04/23/12 [HF2335 Detail]
Download: Minnesota-2011-HF2335-Engrossed.html
1.2relating to debt collectors; amending procedures for licensure of debt collection
1.3agencies and registration of individual debt collectors;amending Minnesota
1.4Statutes 2010, sections 332.33, subdivisions 7, 8; 332.35; 332.40, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 332.33, subdivision 7, is amended to read:
1.7 Subd. 7. Notice. A licensed collection agencyor registered individual collector
1.8must give the commissioner written notice of a change inpersonal name, company
1.9name, address, or ownership not later than 15 days after the change occurs. A registered
1.10individual collector must give written notice of a change of address or name at annual
1.11registration renewal.
1.12 Sec. 2. Minnesota Statutes 2010, section 332.33, subdivision 8, is amended to read:
1.13 Subd. 8. Screening process requirement. Each licensed collection agency must
1.14establish procedures to follow when screening an individual collector applicant prior
1.15to submitting an applicant to the commissioner for initial registration and at renewal.
1.16The screening process for initial registration of an individual collector shall consist of a
1.17criminal history record check and a statewide county search through a vendor that is a
1.18member of the National Association of Professional Background Screeners for all states
1.19of residence of the applicant within the five years immediately preceding the initial
1.20registration, to determine whether the applicant is eligible to be registered under section
1.21332.35. Screening for renewal of individual collector registration shall consist of a public
1.22records search with the Bureau of Criminal Apprehension or equivalent. Screening for
1.23renewal of individual collector registrations shall take place no more than 60 days before
2.1license expiration or renewal date. The commissioner may review the procedures to
2.2ensure the integrity of the screening process. Failure by a licensed collection agency to
2.3establish these procedures is subject to action under section332.40 .
2.4 Sec. 3. Minnesota Statutes 2010, section 332.35, is amended to read:
2.5332.35 PRIOR CONVICTION OR JUDGMENT AS DISQUALIFICATION.
2.6No registration shall be accepted for, and no license shall be issued to, any person,
2.7firm, corporation or association who or which, or any of the officers of which have, within
2.8the past five years,:
2.9(1) been convicted in any court of fraud or any felonyor have been convicted of
2.10or had judgment entered against them in any court for failure to account to a client
2.11or customer for money or property collected by them for the client or customer. No
2.12registration shall be accepted for, and no license shall be issued to, any attorney whose
2.13license to practice law has been suspended or revoked, for a period of five years after
2.14the date of such suspension or revocation.;
2.15(2) been convicted of any misdemeanor or gross misdemeanor involving any
2.16financial crime;
2.17(3) been unable to certify that they have no civil judgments against them for failure
2.18to account to a client or customer for money or property collected by them for the client or
2.19customer. A civil judgment does not disqualify an applicant for registration under this
2.20section, or under section 45.027, subdivision 7, clause (4), unless the civil judgment is for
2.21failure to account to a client or customer for money or property; or
2.22(4) had a license to practice law revoked or suspended for cause.
2.23 Sec. 4. Minnesota Statutes 2010, section 332.40, subdivision 1, is amended to read:
2.24 Subdivision 1. Examination of licensee's or registered individual collector's
2.25records. (a) The commissioner of commerce may make examinations of the collection
2.26records of a licensee or registered individual collector at a reasonable time and in a scope
2.27as is necessary to enforce the provisions of sections332.31 to
332.45 , and for that purpose
2.28the commissioner shall have free access to the books and records of a licensee or registered
2.29individual collector relating thereto. If a licensee or registered individual collector violates
2.30any provision of sections332.31 to
332.45 , or any administrative rules issued pursuant
2.31to sections332.31 to
332.45 , fails to maintain its financial condition sufficient to qualify
2.32for licensure or registration on an original application, or, fails to maintain its registration
2.33or comply with all of the requirements of chapter 303, the commissioner may, after
2.34notice and hearing in accordance with the provisions of the laws of this state governing
3.1proceedings before administrative agencies, revoke a license or registration, or suspend a
3.2license or registration for a period as the commissioner deems proper.
3.3(b) If a licensee or registered individual collector allegedly violates section 332.33,
3.4subdivision 7 or 8, 332.385, or 332.42, or administrative rules for any of those sections,
3.5the commissioner shall notify the licensee or individual registered collector of violations.
3.6A licensee or individual registered collector shall have 30 days from the date of written
3.7notification of alleged violations to come into compliance with Minnesota law or
3.8administrative rule without financial obligation or penalty.
1.3agencies and registration of individual debt collectors;amending Minnesota
1.4Statutes 2010, sections 332.33, subdivisions 7, 8; 332.35; 332.40, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 332.33, subdivision 7, is amended to read:
1.7 Subd. 7. Notice. A licensed collection agency
1.8must give the commissioner written notice of a change in
1.9name, address, or ownership not later than 15 days after the change occurs. A registered
1.10individual collector must give written notice of a change of address or name at annual
1.11registration renewal.
1.12 Sec. 2. Minnesota Statutes 2010, section 332.33, subdivision 8, is amended to read:
1.13 Subd. 8. Screening process requirement. Each licensed collection agency must
1.14establish procedures to follow when screening an individual collector applicant prior
1.15to submitting an applicant to the commissioner for initial registration and at renewal.
1.16The screening process for initial registration of an individual collector shall consist of a
1.17criminal history record check and a statewide county search through a vendor that is a
1.18member of the National Association of Professional Background Screeners for all states
1.19of residence of the applicant within the five years immediately preceding the initial
1.20registration, to determine whether the applicant is eligible to be registered under section
1.21332.35. Screening for renewal of individual collector registration shall consist of a public
1.22records search with the Bureau of Criminal Apprehension or equivalent. Screening for
1.23renewal of individual collector registrations shall take place no more than 60 days before
2.1license expiration or renewal date. The commissioner may review the procedures to
2.2ensure the integrity of the screening process. Failure by a licensed collection agency to
2.3establish these procedures is subject to action under section
2.4 Sec. 3. Minnesota Statutes 2010, section 332.35, is amended to read:
2.5332.35 PRIOR CONVICTION OR JUDGMENT AS DISQUALIFICATION.
2.6No registration shall be accepted for, and no license shall be issued to, any person,
2.7firm, corporation or association who or which, or any of the officers of which have, within
2.8the past five years
2.9(1) been convicted in any court of fraud or any felony
2.10
2.11
2.12
2.13
2.14
2.15(2) been convicted of any misdemeanor or gross misdemeanor involving any
2.16financial crime;
2.17(3) been unable to certify that they have no civil judgments against them for failure
2.18to account to a client or customer for money or property collected by them for the client or
2.19customer. A civil judgment does not disqualify an applicant for registration under this
2.20section, or under section 45.027, subdivision 7, clause (4), unless the civil judgment is for
2.21failure to account to a client or customer for money or property; or
2.22(4) had a license to practice law revoked or suspended for cause.
2.23 Sec. 4. Minnesota Statutes 2010, section 332.40, subdivision 1, is amended to read:
2.24 Subdivision 1. Examination of licensee's or registered individual collector's
2.25records. (a) The commissioner of commerce may make examinations of the collection
2.26records of a licensee or registered individual collector at a reasonable time and in a scope
2.27as is necessary to enforce the provisions of sections
2.28the commissioner shall have free access to the books and records of a licensee or registered
2.29individual collector relating thereto. If a licensee or registered individual collector violates
2.30any provision of sections
2.31to sections
2.32for licensure or registration on an original application, or, fails to maintain its registration
2.33or comply with all of the requirements of chapter 303, the commissioner may, after
2.34notice and hearing in accordance with the provisions of the laws of this state governing
3.1proceedings before administrative agencies, revoke a license or registration, or suspend a
3.2license or registration for a period as the commissioner deems proper.
3.3(b) If a licensee or registered individual collector allegedly violates section 332.33,
3.4subdivision 7 or 8, 332.385, or 332.42, or administrative rules for any of those sections,
3.5the commissioner shall notify the licensee or individual registered collector of violations.
3.6A licensee or individual registered collector shall have 30 days from the date of written
3.7notification of alleged violations to come into compliance with Minnesota law or
3.8administrative rule without financial obligation or penalty.
