Bill Text: MN SF1888 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Debt collection agencies licensure procedures and debt collector registration modification
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2012-04-04 - HF substituted on General Orders HF2335 [SF1888 Detail]
Download: Minnesota-2011-SF1888-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.
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, name, or assumed
1.11name no later than 30 days after the change occurs.
1.12 Sec. 2. Minnesota Statutes 2010, section 332.33, subdivision 8, is amended to read:
1.13 Subd. 8. Screening process requirement. (a) Each licensed collection agency must
1.14establish procedures to follow when screening an individual collector applicant prior to
1.15submitting an applicant to the commissioner for initial registration and at renewal.
1.16(b) The screening process for initial registration must be done at the time of hiring.
1.17The process must include a national criminal history record search, an attorney licensing
1.18search, and a county criminal history search for all counties where the applicant has
1.19resided within the five years immediately preceding the initial registration, to determine
1.20whether the applicant is eligible to be registered under section 332.35. Each licensed
1.21collection agency shall use a vendor that is a member of the National Association of
1.22Professional Background Screeners, or an equivalent vendor, to conduct this background
1.23screening process.
2.1(c) Screening for renewal of individual collector registration must include a national
2.2criminal history record search and a county criminal history search for all counties where
2.3the individual has resided during the immediate preceding year. Screening for renewal
2.4of individual collector registrations must take place no more than 60 days before the
2.5license expiration or renewal date. A renewal screening is not required if an individual
2.6collector has been subjected to an initial background screening within 12 months of the
2.7first registration renewal date. A renewal screening is required for all subsequent annual
2.8registration renewals.
2.9(d) The commissioner may review the procedures to ensure the integrity of the
2.10screening process. Failure by a licensed collection agency to establish these procedures
2.11is subject to action under section332.40 .
2.12 Sec. 3. Minnesota Statutes 2010, section 332.35, is amended to read:
2.13332.35 PRIOR CONVICTION OR JUDGMENT AS DISQUALIFICATION.
2.14No registration shall be accepted for, and no license shall be issued to, any person,
2.15firm, corporation or association who or which, or any of the officers of which have, within
2.16the past five years,:
2.17(1) been convicted in any court of fraud or any felonyor have been convicted of
2.18or had judgment entered against them in any court for failure to account to a client
2.19or customer for money or property collected by them for the client or customer. No
2.20registration shall be accepted for, and no license shall be issued to, any attorney whose
2.21license to practice law has been suspended or revoked, for a period of five years after
2.22the date of such suspension or revocation.;
2.23(2) been convicted of any misdemeanor or gross misdemeanor involving identity
2.24theft or any financial crime;
2.25(3) been unable to certify that they have no civil judgments against them for failure
2.26to account to a client or customer for money or property collected by them for the client or
2.27customer. A civil judgment does not disqualify an applicant for registration under this
2.28section, or under section 45.027, subdivision 7, clause (4), unless the civil judgment is for
2.29failure to account to a client or customer for money or property; or
2.30(4) had a license to practice law revoked or involuntarily suspended.
1.3agencies and registration of individual debt collectors;amending Minnesota
1.4Statutes 2010, sections 332.33, subdivisions 7, 8; 332.35.
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, name, or assumed
1.11name no later than 30 days after the change occurs.
1.12 Sec. 2. Minnesota Statutes 2010, section 332.33, subdivision 8, is amended to read:
1.13 Subd. 8. Screening process requirement. (a) Each licensed collection agency must
1.14establish procedures to follow when screening an individual collector applicant prior to
1.15submitting an applicant to the commissioner for initial registration and at renewal.
1.16(b) The screening process for initial registration must be done at the time of hiring.
1.17The process must include a national criminal history record search, an attorney licensing
1.18search, and a county criminal history search for all counties where the applicant has
1.19resided within the five years immediately preceding the initial registration, to determine
1.20whether the applicant is eligible to be registered under section 332.35. Each licensed
1.21collection agency shall use a vendor that is a member of the National Association of
1.22Professional Background Screeners, or an equivalent vendor, to conduct this background
1.23screening process.
2.1(c) Screening for renewal of individual collector registration must include a national
2.2criminal history record search and a county criminal history search for all counties where
2.3the individual has resided during the immediate preceding year. Screening for renewal
2.4of individual collector registrations must take place no more than 60 days before the
2.5license expiration or renewal date. A renewal screening is not required if an individual
2.6collector has been subjected to an initial background screening within 12 months of the
2.7first registration renewal date. A renewal screening is required for all subsequent annual
2.8registration renewals.
2.9(d) The commissioner may review the procedures to ensure the integrity of the
2.10screening process. Failure by a licensed collection agency to establish these procedures
2.11is subject to action under section
2.12 Sec. 3. Minnesota Statutes 2010, section 332.35, is amended to read:
2.13332.35 PRIOR CONVICTION OR JUDGMENT AS DISQUALIFICATION.
2.14No registration shall be accepted for, and no license shall be issued to, any person,
2.15firm, corporation or association who or which, or any of the officers of which have, within
2.16the past five years
2.17(1) been convicted in any court of fraud or any felony
2.18
2.19
2.20
2.21
2.22
2.23(2) been convicted of any misdemeanor or gross misdemeanor involving identity
2.24theft or any financial crime;
2.25(3) been unable to certify that they have no civil judgments against them for failure
2.26to account to a client or customer for money or property collected by them for the client or
2.27customer. A civil judgment does not disqualify an applicant for registration under this
2.28section, or under section 45.027, subdivision 7, clause (4), unless the civil judgment is for
2.29failure to account to a client or customer for money or property; or
2.30(4) had a license to practice law revoked or involuntarily suspended.
