HF 4100

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/25/2024 03:46pm

A bill for an act
relating to consumer protection; modifying various provisions governing debt
collection, garnishment, medical debt, and consumer finance; providing for debtor
protections; modifying certain statutory forms; requiring a review of certain
statutory forms; amending Minnesota Statutes 2022, sections 176.175, subdivision
2; 334.01, by adding a subdivision; 519.05; 550.37, subdivisions 2, 4, 6, 12a, 14,
20, 22, 23, by adding subdivisions; 550.39; 563.01, subdivisions 3, 4, 8, 9, 10;
563.02, subdivision 2; 571.72, subdivisions 6, 8, 9, 10; 571.911; 571.914,
subdivision 1; 571.92; 571.921; 571.922; 571.924, subdivision 1; 571.925;
Minnesota Statutes 2023 Supplement, sections 144.587, subdivisions 1, 4; 270A.03,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapters 62J;
550; proposing coding for new law as Minnesota Statutes, chapter 332C.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [62J.805] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of sections 62J.805 to 62J.808, the following
terms have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Group practice. new text end

new text begin "Group practice" has the meaning given to health care provider
group practice in section 145D.01, subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Health care provider. new text end

new text begin "Health care provider" means:
new text end

new text begin (1) a health professional who is licensed or registered by the state to provide health
treatments and services within the professional's scope of practice and in accordance with
state law;
new text end

new text begin (2) a group practice; or
new text end

new text begin (3) a hospital.
new text end

new text begin Subd. 4. new text end

new text begin Health plan. new text end

new text begin "Health plan" has the meaning given in section 62A.011,
subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Hospital. new text end

new text begin "Hospital" means a health care facility licensed as a hospital under
sections 144.50 to 144.56.
new text end

new text begin Subd. 6. new text end

new text begin Medically necessary. new text end

new text begin "Medically necessary" means:
new text end

new text begin (1) safe and effective;
new text end

new text begin (2) not experimental or investigational, except as provided in Code of Federal Regulations,
title 42, section 411.15(o);
new text end

new text begin (3) furnished in accordance with acceptable medical standards of medical practice for
the diagnosis or treatment of the patient's condition or to improve the function of a malformed
body member;
new text end

new text begin (4) furnished in a setting appropriate to the patient's medical need and condition;
new text end

new text begin (5) ordered and furnished by qualified personnel;
new text end

new text begin (6) meets, but does not exceed, the patient's medical need; and
new text end

new text begin (7) is at least as beneficial as an existing and available medically appropriate alternative.
new text end

new text begin Subd. 7. new text end

new text begin Miscode. new text end

new text begin "Miscode" means a health care provider or a health care provider's
designee, using a coding system and for billing purposes, assigns a numeric or alphanumeric
code to a health treatment or service provided to a patient and the code assigned does not
accurately reflect the health treatment or service provided based on factors that include the
patient's diagnosis and the complexity of the patient's condition.
new text end

new text begin Subd. 8. new text end

new text begin Payment. new text end

new text begin "Payment" includes co-payments and coinsurance and deductible
payments made by a patient.
new text end

Sec. 2.

new text begin [62J.806] POLICY FOR COLLECTION OF MEDICAL DEBT.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement. new text end

new text begin Each health care provider must make available to the
public the health care provider's policy for the collection of medical debt from patients. This
policy must be made available by:
new text end

new text begin (1) clearly posting it on the health care provider's website or, for health professionals,
on the website of the health clinic, group practice, or hospital at which the health professional
is employed or under contract; and
new text end

new text begin (2) providing a copy of the policy to any individual who requests it.
new text end

new text begin Subd. 2. new text end

new text begin Content. new text end

new text begin A policy made available under this section must at least specify the
procedures followed by the health care provider for:
new text end

new text begin (1) communicating with patients about the medical debt owed and collecting medical
debt;
new text end

new text begin (2) referring medical debt to a collection agency or law firm for collection; and
new text end

new text begin (3) identifying medical debt as uncollectible or satisfied, and ending collection activities.
new text end

Sec. 3.

new text begin [62J.807] DENIAL OF HEALTH TREATMENTS OR SERVICES DUE TO
OUTSTANDING MEDICAL DEBT.
new text end

new text begin (a) A health care provider must not deny medically necessary health treatments or services
to a patient or any member of the patient's family or household because of outstanding or
previously outstanding medical debt owed by the patient or any member of the patient's
family or household to the health care provider, regardless of whether the health treatment
or service may be available from another health care provider.
new text end

new text begin (b) As a condition of providing medically necessary health treatments or services in the
circumstances described in paragraph (a), a health care provider may require the patient to
enroll in a payment plan for the outstanding medical debt owed to the health care provider.
new text end

Sec. 4.

new text begin [62J.808] BILLING AND PAYMENT FOR MISCODED HEALTH
TREATMENTS AND SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Participation and cooperation required. new text end

new text begin Each health care provider
must participate in, and cooperate with, all processes and investigations to identify, review,
and correct the coding of health treatments and services that are miscoded by the health
care provider or a designee.
new text end

new text begin Subd. 2. new text end

new text begin Notice; billing and payment during review. new text end

new text begin (a) When a health care provider
receives notice, other than notice from a health plan company as provided in paragraph (b),
or otherwise determines that a health treatment or service may have been miscoded, the
health care provider must notify the health plan company administering the patient's health
plan in a timely manner of the potentially miscoded health treatment or service.
new text end

new text begin (b) When a health plan company receives notice, other than notice from a health care
provider as provided in paragraph (a), or otherwise determines that a health treatment or
service may have been miscoded, the health plan company must notify the health care
provider who provided the health treatment or service of the potentially miscoded health
treatment or service.
new text end

new text begin (c) When a review of a potentially miscoded health treatment or service is commenced,
the health care provider and health plan company must notify the patient that a miscoding
review is being conducted and that the patient will not be billed for any health treatment or
service subject to the review and is not required to submit payments for any health treatment
or service subject to the review until the review is complete and any miscoded health
treatments or services are correctly coded.
new text end

new text begin (d) While a review of a potentially miscoded health treatment or service is being
conducted, the health care provider and health plan company must not bill the patient for,
or accept payment from the patient for, any health treatment or service subject to the review.
new text end

new text begin Subd. 3. new text end

new text begin Billing and payment after completion of review. new text end

new text begin The health care provider
and health plan company may bill the patient for, and accept payment from the patient for,
the health treatment or service that was subject to the miscoding review only after the review
is complete and any miscoded health treatments or services have been correctly coded.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 144.587, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) The terms defined in this subdivision apply to this section
and sections 144.588 to 144.589.

(b) "Charity care" means the provision of free or discounted care to a patient according
to a hospital's financial assistance policies.

(c) "Hospital" means a private, nonprofit, or municipal hospital licensed under sections
144.50 to 144.56.

(d) "Insurance affordability program" has the meaning given in section 256B.02,
subdivision 19.

(e) "Navigator" has the meaning given in section 62V.02, subdivision 9.

(f) "Presumptive eligibility" has the meaning given in section 256B.057, subdivision
12.

deleted text begin (g) "Revenue recapture" means the use of the procedures in chapter deleted text end deleted text begin 270A deleted text end deleted text begin to collect debt.
deleted text end

deleted text begin (h) deleted text end new text begin (g) new text end "Uninsured service or treatment" means any service or treatment that is not
covered by:

(1) a health plan, contract, or policy that provides health coverage to a patient; or

(2) any other type of insurance coverage, including but not limited to no-fault automobile
coverage, workers' compensation coverage, or liability coverage.

deleted text begin (i) deleted text end new text begin (h) new text end "Unreasonable burden" includes requiring a patient to apply for enrollment in a
state or federal program for which the patient is obviously or categorically ineligible or has
been found to be ineligible in the previous 12 months.

Sec. 6.

Minnesota Statutes 2023 Supplement, section 144.587, subdivision 4, is amended
to read:

Subd. 4.

Prohibited actions.

new text begin (a) new text end A hospital must not initiate one or more of the following
actions until the hospital determines that the patient is ineligible for charity care or denies
an application for charity care:

(1) offering to enroll or enrolling the patient in a payment plan;

(2) changing the terms of a patient's payment plan;

(3) offering the patient a loan or line of credit, application materials for a loan or line of
credit, or assistance with applying for a loan or line of credit, for the payment of medical
debt;

(4) referring a patient's debt for collections, including in-house collections, third-party
collections, deleted text begin revenue recapture, deleted text end or any other process for the collection of debt; new text begin or
new text end

deleted text begin (5) denying health care services to the patient or any member of the patient's household
because of outstanding medical debt, regardless of whether the services are deemed necessary
or may be available from another provider; or
deleted text end

deleted text begin (6) deleted text end new text begin (5) new text end accepting a credit card payment of over $500 for the medical debt owed to the
hospital.

new text begin (b) A hospital is subject to section 62J.807.
new text end

Sec. 7.

Minnesota Statutes 2022, section 176.175, subdivision 2, is amended to read:

Subd. 2.

Nonassignability.

No claim for compensation or settlement of a claim for
compensation owned by an injured employee or dependents is assignable. Except as otherwise
provided in this chapter, any claim for compensation owned by an injured employee or
dependents is exempt from seizure or sale for the payment of any debt or liability new text begin , up to a
total amount of $1,000,000 per claim and subsequent award new text end .

Sec. 8.

Minnesota Statutes 2023 Supplement, section 270A.03, subdivision 2, is amended
to read:

Subd. 2.

Claimant agency.

"Claimant agency" means any state agency, as defined by
section 14.02, subdivision 2, the regents of the University of Minnesota, any district court
of the state, any county, any statutory or home rule charter city, including a city that is
presenting a claim for deleted text begin a municipal hospital or deleted text end a public library deleted text begin or a municipal ambulance
service, a hospital district, any ambulance service licensed under chapter 144E deleted text end , any public
agency responsible for child support enforcement, any public agency responsible for the
collection of court-ordered restitution, and any public agency established by general or
special law that is responsible for the administration of a low-income housing program.

Sec. 9.

new text begin [332C.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of this chapter, the following terms have the
meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Collecting party. new text end

new text begin "Collecting party" means a party engaged in the collection
of medical debt for any account, bill, or other indebtedness, except as hereinafter provided.
new text end

new text begin Subd. 3. new text end

new text begin Debtor. new text end

new text begin "Debtor" means a person obligated or alleged to be obligated to pay
any debt.
new text end

new text begin Subd. 4. new text end

new text begin Medical debt. new text end

new text begin "Medical debt" means debt incurred primarily for medically
necessary health treatment or services debt. Medical debt does not include debt charged to
a credit card unless the credit card is issued under a credit plan offered specifically for the
payment of health care treatment or services.
new text end

new text begin Subd. 5. new text end

new text begin Medically necessary. new text end

new text begin "Medically necessary" has the meaning given in section
62J.805, subdivision 6.
new text end

new text begin Subd. 6. new text end

new text begin Person. new text end

new text begin "Person" means any individual, partnership, association, or corporation.
new text end

Sec. 10.

new text begin [332C.02] PROHIBITED PRACTICES.
new text end

new text begin No collecting party shall:
new text end

new text begin (1) in a collection letter, publication, invoice, or any oral or written communication,
threaten wage garnishment or legal suit by a particular lawyer, unless the collecting party
has actually retained the lawyer to do so;
new text end

new text begin (2) use or employ sheriffs or any other officer authorized to serve legal papers in
connection with the collection of a claim, except when performing their legally authorized
duties;
new text end

new text begin (3) use or threaten to use methods of collection which violate Minnesota law;
new text end

new text begin (4) furnish legal advice to debtors or represent that the collecting party is competent or
able to furnish legal advice to debtors;
new text end

new text begin (5) communicate with debtors in a misleading or deceptive manner by falsely using the
stationery of a lawyer, forms or instruments which only lawyers are authorized to prepare,
or instruments which simulate the form and appearance of judicial process;
new text end

new text begin (6) publish or cause to be published any list of debtors, use shame cards or shame
automobiles, advertise or threaten to advertise for sale any claim as a means of forcing
payment thereof, or use similar devices or methods of intimidation;
new text end

new text begin (7) operate under a name or in a manner which falsely implies the collecting party is a
branch of or associated with any department of federal, state, county, or local government
or an agency thereof;
new text end

new text begin (8) transact business or hold itself out as a debt settlement company, debt management
company, debt adjuster, or any person who settles, adjusts, prorates, pools, liquidates, or
pays the indebtedness of a debtor, unless there is no charge to the debtor, or the pooling or
liquidation is done pursuant to court order or under the supervision of a creditor's committee;
new text end

new text begin (9) unless an exemption in the law exists, violate Code of Federal Regulations, title 12,
part 1006, while attempting to collect on any account, bill, or other indebtedness. For
purposes of this section, Public Law 95-109 and Code of Federal Regulations, title 12, part
1006, apply to collecting parties;
new text end

new text begin (10) communicate with a debtor by use of an automatic telephone dialing system or an
artificial or prerecorded voice after the debtor expressly informs the collecting party to cease
communication utilizing an automatic telephone dialing system or an artificial or prerecorded
voice. For purposes of this clause, an automatic telephone dialing system or an artificial or
prerecorded voice includes but is not limited to (i) artificial intelligence chat bots, and (ii)
the usage of the term under the Telephone Consumer Protection Act, United States Code,
title 47, section 227(b)(1)(A);
new text end

new text begin (11) in collection letters or publications, or in any oral or written communication, imply
or suggest that medically necessary health treatment or services will be denied as a result
of a medical debt;
new text end

new text begin (12) when a debtor has a listed telephone number, enlist the aid of a neighbor or third
party to request that the debtor contact the collecting party, except a person who resides
with the debtor or a third party with whom the debtor has authorized with the collecting
party to place the request. This clause does not apply to a call back message left at the
debtor's place of employment which is limited solely to the collecting party's telephone
number and name;
new text end

new text begin (13) when attempting to collect a medical debt, fail to provide the debtor with the full
name of the collecting party, as registered with the secretary of state;
new text end

new text begin (14) fail to return any amount of overpayment from a debtor to the debtor or to the state
of Minnesota pursuant to the requirements of chapter 345;
new text end

new text begin (15) accept currency or coin as payment for a medical debt without issuing an original
receipt to the debtor and maintain a duplicate receipt in the debtor's payment records;
new text end

new text begin (16) attempt to collect any amount, including any interest, fee, charge, or expense
incidental to the charge-off obligation, from a debtor unless the amount is expressly
authorized by the agreement creating the medical debt or is otherwise permitted by law;
new text end

new text begin (17) falsify any documents with the intent to deceive;
new text end

new text begin (18) when initially contacting a Minnesota debtor by mail to collect a medical debt, fail
to include a disclosure on the contact notice, in a type size or font which is equal to or larger
than the largest other type of type size or font used in the text of the notice, that includes
and identifies the Office of the Minnesota Attorney General's general telephone number,
and states: "You have the right to hire your own attorney to represent you in this matter.";
new text end

new text begin (19) commence legal action to collect a medical debt outside the limitations period set
forth in section 541.053;
new text end

new text begin (20) report to a credit reporting agency any medical debt which the collecting party
knows or should know is or was originally owed to a health care provider, as defined in
section 62J.805, subdivision 2; or
new text end

new text begin (21) challenge a debtor's claim of exemption to garnishment or levy in a manner that is
baseless, frivolous, or otherwise in bad faith.
new text end

Sec. 11.

new text begin [332C.04] DEFENDING MEDICAL DEBT CASES.
new text end

new text begin A debtor who successfully defends against a claim for payment of medical debt that is
alleged by a collecting party must be awarded the debtor's costs, including a reasonable
attorney fee, incurred in defending against the collecting party's claim for debt payment.
new text end

Sec. 12.

new text begin [332C.06] ENFORCEMENT.
new text end

new text begin (a) The attorney general may enforce this chapter under section 8.31.
new text end

new text begin (b) A collecting party that violates this chapter is strictly liable to the debtor in question
for the sum of:
new text end

new text begin (1) actual damage sustained by the debtor as a result of the violation;
new text end

new text begin (2) additional damages as the court may allow, but not exceeding $1,000 per violation;
and
new text end

new text begin (3) in the case of any successful action to enforce the foregoing, the costs of the action,
together with a reasonable attorney fee as determined by the court.
new text end

new text begin (c) A collecting party that willfully and maliciously violates this chapter is strictly liable
to the debtor for three times the sums allowable under paragraph (b), clauses (1) and (2).
new text end

new text begin (d) The dollar amount limit under paragraph (b), clause (2), changes on July 1 of each
even-numbered year in an amount equal to changes made in the Consumer Price Index,
compiled by the United States Bureau of Labor Statistics. The Consumer Price Index for
December 2024 is the reference base index. If the Consumer Price Index is revised, the
percentage of change made under this section must be calculated on the basis of the revised
Consumer Price Index. If a Consumer Price Index revision changes the reference base index,
a revised reference base index must be determined by multiplying the reference base index
that is effective at the time by the rebasing factor furnished by the Bureau of Labor Statistics.
new text end

new text begin (e) If the Consumer Price Index is superseded, the Consumer Price Index referred to in
this section is the Consumer Price Index represented by the Bureau of Labor Statistics as
most accurately reflecting changes in the prices paid by consumers for consumer goods and
services.
new text end

new text begin (f) The attorney general must publish the base reference index under paragraph (c) in
the State Register no later than September 1, 2024. The attorney general must calculate and
then publish the revised Consumer Price Index under paragraph (c) in the State Register no
later than September 1 each even-numbered year.
new text end

new text begin (g) An action brought under this section benefits the public.
new text end

new text begin (h) A collecting party may not be held liable in any action brought under this section if
the collecting party shows by a preponderance of evidence that the violation was not
intentional and resulted from a bona fide error made notwithstanding the maintenance of
procedures reasonably adopted to avoid any such error.
new text end

Sec. 13.

Minnesota Statutes 2022, section 334.01, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Contracts for medical care. new text end

new text begin Interest for any debt owed to a health care provider
incurred in exchange for care, treatment, services, devices, medicines, or procedures to
maintain, diagnose, or treat a person's physical or mental health shall be at a rate of $4 upon
$100 for a year.
new text end

Sec. 14.

Minnesota Statutes 2022, section 519.05, is amended to read:

519.05 LIABILITY OF deleted text begin HUSBAND AND WIFE deleted text end new text begin SPOUSES new text end .

(a) A spouse is not liable to a creditor for any debts of the other spouse. deleted text begin Where husband
and wife are living together, they shall be jointly and severally liable for necessary medical
services that have been furnished to either spouse, including any claims arising under section
246.53, 256B.15, 256D.16, or 261.04, and necessary household articles and supplies furnished
to and used by the family. deleted text end Notwithstanding this paragraph, in a proceeding under chapter
518 the court may apportion such debt between the spouses.

(b) Either spouse may close a credit card account or other unsecured consumer line of
credit on which both spouses are contractually liable, by giving written notice to the creditor.

Sec. 15.

Minnesota Statutes 2022, section 550.37, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Bible and musical instrument deleted text end new text begin Sacred possessions new text end .

The deleted text begin family deleted text end Bible, deleted text begin library,
and musical instruments deleted text end new text begin Torah, Qur'an, prayer rug, and other religious items in an aggregate
amount not exceeding $2,000 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 16.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin Library. new text end

new text begin A personal library in an aggregate amount not exceeding $2,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 17.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 2b. new text end

new text begin Musical instruments. new text end

new text begin Musical instruments in an aggregate amount not
exceeding $2,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 18.

Minnesota Statutes 2022, section 550.37, subdivision 4, is amended to read:

Subd. 4.

Personal goods.

(a) All wearing apparel, one watch, utensils, and foodstuffs
of the debtor and the debtor's family.

(b) Household furniture, household appliances, deleted text begin phonographs, radio and television
receivers deleted text end new text begin radios, computers, tablets, televisions, printers, cell phones, smart phones, and
other consumer electronics new text end of the debtor and the debtor's family, not exceeding $11,250 in
value.

(c) The debtor's aggregate interest, not exceeding $3,062.50 in value, in deleted text begin wedding rings
or other religious or culturally recognized symbols of marriage exchanged between the
debtor and spouse at the time of the marriage and in the debtor's possession deleted text end new text begin jewelry new text end .

The exemption provided by this subdivision may not be waived except with regard to
purchase money security interests. Except for a pawnbroker's possessory lien, a nonpurchase
money security interest in the property exempt under this subdivision is void.

If a debtor has property of the type which would qualify for the exemption under clause
(b), of a value in excess of $11,250 an itemized list of the exempt property, together with
the value of each item listed, shall be attached to the security agreement at the time a security
interest is taken, and a creditor may take a nonpurchase money security interest in the excess
over $11,250 by requiring the debtor to select the exemption in writing at the time the loan
is made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 19.

Minnesota Statutes 2022, section 550.37, subdivision 6, is amended to read:

Subd. 6.

Tools of trade.

The tools, implements, machines, new text begin vehicles, new text end instruments, office
furniture, stock in trade, and library reasonably necessary in the trade, business, or profession
of the debtor, not exceeding $12,500 in value.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 20.

Minnesota Statutes 2022, section 550.37, subdivision 12a, is amended to read:

Subd. 12a.

Motor vehicles.

One new text begin of the following: (1) one new text end motor vehicle new text begin , new text end to the extent
of a value not exceeding deleted text begin $5,000 deleted text end new text begin $10,000 new text end ; new text begin (2) one motor vehicle that is regularly used by or
for the benefit of a physically disabled person, as defined under section 169.345, subdivision
2, to the extent of a value not exceeding $25,000; new text end or new text begin (3) new text end one motor vehicle new text begin , new text end to the extent of
a value not exceeding deleted text begin $50,000 deleted text end new text begin $100,000, new text end that has been new text begin designed or new text end modified deleted text begin , at a cost of
not less than $3,750, deleted text end to accommodate the deleted text begin physical deleted text end disability making a disabled person
eligible for a certificate authorized by section 169.345.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 21.

Minnesota Statutes 2022, section 550.37, subdivision 14, is amended to read:

Subd. 14.

Public assistance.

All government assistance based on need, and the earnings
or salary of a person who is a recipient of government assistance based on need, shall be
exempt from all claims of creditors including any contractual setoff or security interest
asserted by a financial institution. For the purposes of this chapter, government assistance
based on need includes but is not limited to Minnesota family investment program deleted text begin , deleted text end new text begin ; new text end
Supplemental Security Income deleted text begin , deleted text end new text begin ; new text end medical assistance deleted text begin , deleted text end new text begin received by the person or by the person's
dependent child; new text end MinnesotaCare deleted text begin , deleted text end new text begin received by the person or by the person's dependent child; new text end
payment of Medicare part B premiums or receipt of part D extra help deleted text begin , deleted text end new text begin ; new text end MFIP diversionary
work program deleted text begin , deleted text end new text begin ; new text end work participation cash benefit deleted text begin , deleted text end new text begin ; new text end Minnesota supplemental assistance deleted text begin , deleted text end new text begin ; new text end
emergency Minnesota supplemental assistance deleted text begin , deleted text end new text begin ; new text end general assistance deleted text begin , deleted text end new text begin ; new text end emergency general
assistance deleted text begin , deleted text end new text begin ; new text end emergency assistance or county crisis funds deleted text begin , deleted text end new text begin ; new text end energy or fuel assistance deleted text begin , and deleted text end new text begin ; new text end
Supplemental Nutrition Assistance Program (SNAP) new text begin ; and the portion of any tax refund
attributable to a state or federal tax credit, including but not limited to the earned income
tax credit, state or federal child tax credit, Minnesota working family credit, renter's credit,
or any low-income tax credit new text end . The salary or earnings of any debtor who is or has been an
eligible recipient of government assistance based on need, or an inmate of a correctional
institution shall, upon the debtor's return to private employment or farming after having
been an eligible recipient of government assistance based on need, or an inmate of a
correctional institution, be exempt from attachment, garnishment, or levy of execution for
a period of six months after the debtor's return to employment or farming and after all public
assistance for which eligibility existed has been terminated. new text begin Any portion of an income tax
refund consisting of income that was exempt when the income was earned is also exempt
under this subdivision. new text end The exemption provisions contained in this subdivision also apply
deleted text begin for 60 days deleted text end after deposit in any financial institution, whether in a single or joint account. In
tracing the funds, the first-in first-out method of accounting shall be used. The burden of
establishing that funds are exempt rests upon the debtor. Agencies distributing government
assistance and the correctional institutions shall, at the request of creditors, inform them
whether or not any debtor has been an eligible recipient of government assistance based on
need, or an inmate of a correctional institution, within the preceding six months.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 22.

Minnesota Statutes 2022, section 550.37, subdivision 20, is amended to read:

Subd. 20.

Traceable funds.

The exemption of funds from creditors' claims, provided
by subdivisions 9, 10, 11, 15, new text begin 22, new text end and 24, shall not be affected by the subsequent deposit of
the funds in a bank or any other financial institution, whether in a single or joint account,
if the funds are traceable to deleted text begin their deleted text end new text begin the funds' new text end exempt source. In tracing the funds, the first-in
first-out method of accounting shall be used. The burden of establishing that funds are
exempt rests upon the debtor. No bank or other financial institution shall be liable for
damages for complying with process duly issued out of any court for the collection of a
debt even if the funds affected by the process are subsequently determined to have been
exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 23.

Minnesota Statutes 2022, section 550.37, subdivision 22, is amended to read:

Subd. 22.

Rights of action.

Rights of action new text begin or money received new text end for injuries to the person
of the debtor or of a relative whether or not resulting in death. new text begin Injuries to the person include
physical, mental, and emotional injuries. The exemption under this subdivision applies to
the right to receive, annuities being paid, and money already received.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 24.

Minnesota Statutes 2022, section 550.37, subdivision 23, is amended to read:

Subd. 23.

Life insurance aggregate interest.

The debtor's aggregate interest not to
exceed in value $10,000 in any accrued deleted text begin dividend deleted text end new text begin dividends new text end or interest under or loan value
of any unmatured life insurance deleted text begin contract deleted text end new text begin contracts new text end owned by the debtor under which the
insured is the debtor or an individual of whom the debtor is a dependent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 25.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 27. new text end

new text begin Household tools and equipment. new text end

new text begin The debtor's aggregate interest, not to
exceed $3,000, in household tools and equipment, including but not limited to hand and
power tools, snow removal equipment, and lawnmowers.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 26.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 28. new text end

new text begin Property tax refunds. new text end

new text begin Any refund due under chapter 290A, up to a present
value of $3,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 27.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 29. new text end

new text begin Funds in a depository account. new text end

new text begin An amount up to an aggregate of $4,000 in
financial institutions in which the debtor has a depository account, regardless of the sources
of the funds, is exempt from garnishment under sections 571.91 to 571.915. This exemption
cannot be claimed in conjunction with the exemption under subdivision 30.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to
garnishment levied on or after that date.
new text end

Sec. 28.

Minnesota Statutes 2022, section 550.37, is amended by adding a subdivision to
read:

new text begin Subd. 30. new text end

new text begin Wild card exemption in bankruptcy. new text end

new text begin In a bankruptcy, a debtor may exempt
any property, including funds in a bank account, up to $4,000 in value. A debtor cannot
claim this exemption if they are already protecting funds in a bank account under subdivision
29, nor may they use this subdivision in conjunction with subdivision 29.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to exemptions
claimed on or after that date.
new text end

Sec. 29.

new text begin [550.3711] MOTOR VEHICLE; BANKRUPTCY DEBTOR'S RIGHT TO
RETAIN.
new text end

new text begin Subdivision 1. new text end

new text begin No default. new text end

new text begin If a buyer does not default in performing the buyer's
obligations under the contract, the seller or holder is prohibited from (1) accelerating the
maturity of part or the entire amount due under the contract, or (2) repossessing the motor
vehicle.
new text end

new text begin Subd. 2. new text end

new text begin Bankruptcy. new text end

new text begin (a) Neither of the following constitutes a default in the performance
of the buyer's obligations under the contract: (1) the buyer or another individual liable under
the contract files a petition commencing a case for bankruptcy under United States Code,
title 11; or (2) the buyer or another individual liable under the contract is a debtor in
bankruptcy.
new text end

new text begin (b) The act or status under paragraph (a), clauses (1) and (2), with respect to the buyer
or another individual liable on the contract, must not be used by a seller or holder to: (1)
accelerate the maturity of a portion of or the entire amount due under the contract; or (2)
repossess the motor vehicle.
new text end

new text begin (c) A contract provision that states an act or status under paragraph (a), clauses (1) and
(2), with respect to the buyer or another individual liable on the contract, constitutes a default
is void and unenforceable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 30.

Minnesota Statutes 2022, section 550.39, is amended to read:

550.39 EXEMPTION OF INSURANCE POLICIES.

The net amount payable to any insured or to any beneficiary under any policy of accident
or disability insurance or under accident or disability clauses attached to any policy of life
insurance shall be exempt and free and clear from the claims of all creditors of such insured
or such beneficiary and from all legal and judicial processes of execution, attachment,
garnishment, or otherwise new text begin , up to a total amount of $1,000,000 per claim and subsequent
award new text end .

Sec. 31.

Minnesota Statutes 2022, section 563.01, subdivision 3, is amended to read:

Subd. 3.

new text begin Court fee waiver; new text end authorization deleted text begin of in forma pauperis deleted text end .

(a) Any court of the
state of Minnesota or any political subdivision thereof may authorize the commencement
or defense of any civil action, or appeal therein, without prepayment of fees, costs and
security for costs by a natural person who makes affidavit stating (a) the nature of the action,
defense or appeal, (b) a belief that affiant is entitled to redress, and (c) that affiant is
financially unable to pay the fees, costs and security for costs.

(b) Upon a finding by the court that the action is not of a frivolous nature, the court shall
allow the person to proceed deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end if the affidavit is
substantially in the language required by this subdivision and is not found by the court to
be untrue. Persons meeting the requirements of this subdivision include, but are not limited
to, a person who is receiving public assistance described in section 550.37, subdivision 14,
who is represented by an attorney on behalf of a civil legal services program or a volunteer
attorney program based on indigency, or who has an annual income not greater than 125
percent of the poverty line established under United States Code, title 42, section 9902(2),
except as otherwise provided by section 563.02.

(c) If, at commencement of the action, the court finds that a party does not meet the
eligibility criteria under paragraph (b), but the court also finds that the party is not able to
pay all of the fees, costs, and security for costs, the court may order payment of a fee of $75
or partial payment of the fees, costs, and security for costs, to be paid as directed by the
court.

The court administrator shall transmit any fees or payments to the commissioner of
management and budget for deposit in the state treasury and credit to the general fund.

Sec. 32.

Minnesota Statutes 2022, section 563.01, subdivision 4, is amended to read:

Subd. 4.

Payment of expenses.

Upon order of the court, the court administrator and the
sheriff of any Minnesota county shall perform their duties without charge to the person
proceeding deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end . The court shall direct payment of the
reasonable expense of service of process pursuant to subdivision 2 if served by a private
process server, if the sheriff is unavailable, or by publication.

Sec. 33.

Minnesota Statutes 2022, section 563.01, subdivision 8, is amended to read:

Subd. 8.

Appellate briefs.

In any case on appeal the appellate court shall, upon granting
permission to proceed deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end following application in
the manner provided in subdivision 3, direct payment of the reasonable expenses incurred
in obtaining the record and reproducing the appellate briefs.

Sec. 34.

Minnesota Statutes 2022, section 563.01, subdivision 9, is amended to read:

Subd. 9.

Rescinding deleted text begin in forma pauperis status deleted text end new text begin court fee waiver new text end .

Upon motion, the
court may rescind deleted text begin its deleted text end permission to proceed deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end if deleted text begin it deleted text end new text begin
the court new text end finds the allegations of poverty contained in the affidavit are untrue, or if, following
commencement of the action, the party becomes able to pay the fees, costs and security for
the costs. In such cases, the court may direct the party to pay to the court administrator any
costs allowing the action to proceed. The court administrator shall transmit the costs to the
commissioner of management and budget for deposit in the state treasury and credit them
to the general fund.

Sec. 35.

Minnesota Statutes 2022, section 563.01, subdivision 10, is amended to read:

Subd. 10.

Judgment.

Judgment may be rendered for costs at the conclusion of the action
as in other cases. In the event any person recovers moneys by either settlement or judgment
as a result of commencing or defending an action deleted text begin in forma pauperis deleted text end new text begin with a court fee waiver new text end ,
the costs deferred and the expenses directed by the court to be paid under this section shall
be included in such moneys and shall be paid directly to the court administrator by the
opposing party. The court administrator shall transmit the costs to the commissioner of
management and budget for deposit in the state treasury and credit them to the general fund.

Sec. 36.

Minnesota Statutes 2022, section 563.02, subdivision 2, is amended to read:

Subd. 2.

Inmate request to deleted text begin proceed in forma pauperis deleted text end new text begin waive court fees new text end .

(a) An inmate
who wishes to commence a civil action deleted text begin by proceeding in forma pauperis deleted text end new text begin with court fee
waived new text end must meet the following requirements, in addition to the requirements of section
563.01, subdivision 3:

(1) exhaust the inmate complaint procedure developed under the commissioner of
corrections policy and procedure before commencing a civil action against the department,
and state in the application to deleted text begin proceed in forma pauperis deleted text end new text begin waive court fees new text end that the inmate
has done so; and

(2) include the following information in an affidavit submitted under section 563.01:

(i) a statement that the inmate's claim is not substantially similar to a previous claim
brought by the inmate against the same party, arising from the same operative facts, and in
which there was an action that operated as an adjudication on the merits;

(ii) complete information on the inmate's identity, the nature and amount of the inmate's
income, spouse's income, if available to the inmate, real property owned by the inmate, and
the inmate's bank accounts, debts, monthly expenses, and number of dependents; and

(iii) the most recent monthly statement provided by the commissioner of corrections
showing the balance in the inmate's inmate account.

(b) The inmate shall also attach a written authorization for the court to obtain at any
time during pendency of the present action, without further authorization from the inmate,
a current statement of the inmate's inmate account balance, if needed to determine eligibility
to proceed with bringing a civil action deleted text begin in forma pauperis deleted text end new text begin with court fees waived new text end . An inmate
who has no funds in an inmate account satisfies the requirement of section 563.01,
subdivision 3, clause (c).

(c) An inmate who seeks to proceed as a plaintiff deleted text begin in forma pauperis deleted text end new text begin with court fees
waived new text end must file with the court the complaint in the action and the affidavit under this
section before serving the complaint on an opposing party.

(d) An inmate who has funds in an inmate account may only proceed as a plaintiff in a
civil action by paying the lesser of:

(1) the applicable court filing fee; or

(2) 50 percent of the balance shown in the inmate's account according to the statement
filed with the court under this subdivision, consistent with the requirements of section
243.23, subdivision 3.

(e) If an inmate elects to proceed under paragraph (d), the court shall notify the
commissioner of corrections to withdraw from the inmate's account the amount required
under this section and forward the amount to the court administrator in the county where
the action was commenced. The court shall also notify the commissioner of corrections of
the amount of the filing fee remaining unpaid. The commissioner shall continue making
withdrawals from the inmate's account and forwarding the amounts withdrawn to the court
administrator, at intervals as the applicable funds in the inmate's account equal at least $10,
until the entire filing fee and any costs have been paid in full.

Sec. 37.

Minnesota Statutes 2022, section 571.72, subdivision 6, is amended to read:

Subd. 6.

Bad faith claim.

If, in a proceeding brought under new text begin subdivision 9, new text end section 571.91,
or a similar proceeding under this chapter to determine a claim of exemption, the claim of
exemption is not upheld, and the court finds that it was asserted in bad faith, the creditor
shall be awarded actual damages, costs, reasonable attorney fees resulting from the additional
proceedings, and an amount not to exceed $100. If the claim of exemption is upheld, and
the court finds that the creditor disregarded the claim of exemption in bad faith, the debtor
shall be awarded actual damages, costs, reasonable attorney fees resulting from the additional
proceedings, and an amount not to exceed $100. The underlying judgment shall be modified
to reflect assessment of damages, costs, and attorney fees. However, if the party in whose
favor a penalty assessment is made is not actually indebted to that party's attorney for fees,
the attorney's fee award shall be made directly to the attorney and if not paid an appropriate
judgment in favor of the attorney shall be entered.

Sec. 38.

Minnesota Statutes 2022, section 571.72, subdivision 8, is amended to read:

Subd. 8.

Exemption notice.

In every garnishment where the debtor is a natural person,
the debtor shall be provided with a garnishment exemption notice. If the creditor is garnishing
earnings, the earnings exemption notice provided in section 571.924 must be served ten or
more days before the service of the first garnishment summons. If the creditor is garnishing
funds in a financial institution, the exemption notice provided in section 571.912 must be
served with the garnishment summons. In all other cases, the exemption notice must be in
the following form and served on the debtor with a copy of the garnishment summons.

STATE OF MINNESOTA		DISTRICT COURT
COUNTY OF .		. JUDICIAL DISTRICT
. (Creditor)
against
. (Debtor)		EXEMPTION NOTICE
and
. (Garnishee)

A Garnishment Summons is being served upon you. Some of your property may be
exempt and cannot be garnished. The following is a list of some of the more common
exemptions. It is not complete and is subject to section 550.37 of the Minnesota Statutes
and other state and federal laws. The dollar amounts contained in this list are subject to the
provisions of section 550.37, subdivision 4a, at the time of garnishment. If you have questions
about an exemption, you should obtain legal advice.

(1) a homestead or the proceeds from the sale of a homestead;

(2) household furniture, appliances, phonographs, radios, and televisions up to a total
current value of $5,850;

(3) a manufactured (mobile) home used as your home;

(4) one motor vehicle currently worth less than $2,600 after deducting any security
interest;

(5) farm machinery used by an individual principally engaged in farming, or tools,
machines, or office furniture used in your business or trade. This exemption is limited to
$13,000;

(6) relief based on need. This includes:

(i) Minnesota Family Investment Program (MFIP) and Work First Program;

(ii) Medical Assistance (MA) new text begin , whether received by you or by your dependent child new text end ;

(iii) General Assistance (GA);

(iv) Emergency General Assistance (EGA);

(v) Minnesota Supplemental AID (MSA);

(vi) MSA-Emergency Assistance (MSA-EA);

(vii) Supplemental Security Income (SSI);

(viii) Energy Assistance; and

(ix) Emergency Assistance (EA);

(7) Social Security benefits;

(8) unemployment benefits, workers' compensation, or veteran's benefits;

(9) an accident, disability, or retirement pension or annuity;

(10) life insurance proceeds;

(11) earnings of your minor child; and

(12) money from a claim for damage or destruction of exempt property (such as household
goods, farm tools, business equipment, a manufactured (mobile) home, or a car).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to exemption
notices provided on or after that date.
new text end

Sec. 39.

Minnesota Statutes 2022, section 571.72, subdivision 9, is amended to read:

Subd. 9.

Motion to determine objections.

new text begin (a) This subdivision applies to all garnishment
proceedings governed by this chapter. An objection regarding a garnishment must be
interposed as provided in section 571.914, subdivision 1, in the form provided under section
571.914, subdivision 2.
new text end

new text begin (b) new text end Upon motion of any party in interest, on notice, the court shall determine the validity
of any claim of exemption and may make any order necessary to protect the rights of those
interested.

new text begin (c) Upon receipt of a claim of exemption by the debtor, the creditor must comply with
the claim or interpose an objection within ten business days of the date the exemption claim
was received. An objection must be interposed by:
new text end

new text begin (1) in the district court that issued the judgment, filing the Notice of Objection and
requesting a hearing; and
new text end

new text begin (2) mailing or delivering one copy of the Notice of Objection and Notice of Hearing to
the garnishee and one copy of the Notice of Objection and Notice of Hearing to the debtor.
new text end

new text begin (d) For the purposes of subdivision 6, there is a rebuttable presumption of bad faith if
the court finds that the creditor failed to comply with the requirements of this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 40.

Minnesota Statutes 2022, section 571.72, subdivision 10, is amended to read:

Subd. 10.

Exemption notice for prejudgment garnishment.

EXEMPTION NOTICE

IMPORTANT NOTICE: A garnishment summons may be served on your employer,
bank, or other third parties without any further court proceeding or notice to you.
See the attached Notice of Intent to Garnish for more information.

The following money and wages may be protected (the legal word is exempt) from
garnishment:

1. Financial institutions/bank

Some of the money in your account may be protected because you receive government
benefits from one or more of the following places:

MFIP - Minnesota family investment program,

MFIP Diversionary Work Program,

Work participation cash benefit,

GA - general assistance,

EA - emergency assistance,

MA - medical assistance, new text begin whether received by you or by your dependent child,
new text end

EGA - emergency general assistance or county crisis funds,

MSA - Minnesota supplemental aid,

MSA-EA - MSA emergency assistance,

Supplemental Nutrition Assistance Program (SNAP),

SSI - Supplemental Security Income,

MinnesotaCare, new text begin whether received by you or by your dependent child,
new text end

Medicare Part B premium payments,

Medicare Part D extra help,

Energy or fuel assistance,

Social Security benefits,

Unemployment benefits,

Workers' compensation,

Veterans benefits.

Sending the creditor's attorney (or creditor, if no attorney) a copy of BANK
STATEMENTS that show what was in your account for the past 60 days may give the
creditor enough information about your exemption claim to avoid a garnishment.

2. Earnings

All or some of your earnings may be completely protected from garnishment if:

All of your earnings (wages) may be protected if:

You get government benefits (see list of government benefits)

You currently receive other assistance based on need

You have received government benefits in the last six months

You were in jail or prison in the last six months

Your wages are only protected for 60 days after they are deposited in your account so
it would be helpful if you immediately send the undersigned creditor a copy of BANK
STATEMENTS that show what was in your account for the past 60 days.

Some of your earnings (wages) may be protected if:

If all of your earnings are not exempt, some of your earnings may still be protected for
20 days after they were deposited in your account. The amount protected is the larger amount
of:

75 percent of your wages (after taxes are taken out); or

(insert the sum of the current federal minimum wage) multiplied by 40.

The money from the following are also exempt for 20 days after they are deposited
in your account.

An accident, disability, or retirement pension or annuity

Payments to you from a life insurance policy

Earnings of your child who is under 18 years of age

Child support

Money paid to you from a claim for damage or destruction of property. Property
includes household goods, farm tools or machinery, tools for your job, business equipment,
a mobile home, a car, a musical instrument, a pew or burial lot, clothes, furniture, or
appliances.

Death benefits paid to you.

YOU WILL BE ABLE TO CLAIM THESE EXEMPTIONS WHEN YOU
RECEIVE A NOTICE. You will get the notice at least ten days BEFORE a wage
garnishment. BUT if the creditor garnishes your bank account, you will not get the
notice until AFTER the account has been frozen. IF YOU BELIEVE THE MONEY
IN YOUR BANK ACCOUNT OR YOUR WAGES ARE EXEMPT, YOU SHOULD
IMMEDIATELY CONTACT THE PERSON BELOW. YOU SHOULD TELL THEM
WHY YOU THINK YOUR ACCOUNT OR WAGES ARE EXEMPT TO SEE IF
YOU CAN AVOID GARNISHMENT.

Creditor .

Creditor address .

Creditor telephone number .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to exemption
notices provided on or after that date.
new text end

Sec. 41.

Minnesota Statutes 2022, section 571.911, is amended to read:

571.911 EXEMPTION NOTICE; DUTY OF FINANCIAL INSTITUTION.

new text begin (a) new text end If the garnishment summons is used to garnish funds of a debtor who is a natural
person and if the funds to be garnished are held on deposit at a financial institution, the
creditor shall serve with the garnishee summons a notice, instructions, and two copies of
an exemption notice. The notice, instructions, and exemption notices must be substantially
in the forms set forth in section 571.912. Failure of the creditor to send the exemption notice
renders the garnishment void, and the financial institution shall take no action.

new text begin (b) Unless the total amount in the depository accounts under the debtor's name is less
than the amount specified under section 550.37, subdivision 29, new text end upon receipt of the
garnishment summons and exemption notices, the financial institution shall retain as much
of the amount under section 571.73 as the financial institution has on deposit owing to the
debtor, but not more than 110 percent of the creditor's claim. new text begin If the amount in the account
does not exceed the amount specified under section 550.37, subdivision 29, the bank must
notify the creditor that no funds are retained.
new text end

new text begin (c) If the creditor receives notice from the financial institution that no funds are retained,
the creditor is prohibited from sending the notice under section 571.912.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 42.

Minnesota Statutes 2022, section 571.914, subdivision 1, is amended to read:

Subdivision 1.

Objections and request for hearing.

deleted text begin An objection shall be interposed,
within six business days of receipt by the creditor of an exemption claim from the debtor,
by mailing or delivering one copy of the Notice of Objection and Notice of Hearing to the
financial institution and one copy of the Notice of Objection and Notice of Hearing to the
debtor.
deleted text end

new text begin (a) new text end The Notice of Objection and Notice of Hearing form must be substantially in the
form set out in subdivision 2.

new text begin (b) new text end The court administrator may charge a fee of $1 for the filing of a Notice of Objection
and Notice of Hearing. Upon the filing of a Notice of Objection and Notice of Hearing, the
court administrator shall schedule the matter for hearing no sooner than five business days
but no later than seven business days from the date of filing. A debtor may request
continuance of the hearing by notifying the creditor and the court. The court shall schedule
the continued hearing within seven days of the original hearing date.

new text begin (c) new text end An order stating whether the debtor's funds are exempt shall be issued by the court
within three days of the date of the hearing.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 43.

Minnesota Statutes 2022, section 571.92, is amended to read:

571.92 GARNISHMENT OF EARNINGS.

Sections 571.921 to 571.926 relate to the garnishment of earnings. new text begin The exemptions
available under section 550.37 apply to the garnishment of earnings if the debtor is a resident
of Minnesota and the debtor's place of employment is in Minnesota, regardless of where
the employer is domiciled.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 44.

Minnesota Statutes 2022, section 571.921, is amended to read:

571.921 DEFINITIONS.

For purposes of sections 571.921 to 571.926, the following terms have the meanings
given them:

(a) "Earnings" means:

(1) compensation paid or payable to an employee new text begin , independent contractor, or
self-employed person new text end for personal service whether denominated as wages, salary,
commissions, bonus, new text begin payments, profit-sharing distribution, severance payment, fees, new text end or
otherwise, and includes periodic payments pursuant to a pension or retirement program;

(2) compensation paid or payable to the producer for the sale of agricultural products;
livestock or livestock products; milk or milk products; or fruit or other horticultural products
produced when the producer is operating a family farm, a family farm corporation, or an
authorized farm corporation, as defined in section 500.24, subdivision 2; or

(3) maintenance as defined in section 518.003, subdivision 3a.

(b) "Disposable earnings" means that part of the earnings of an individual remaining
after the deduction from those earnings of amounts required by law to be withheld.

(c) "Employee" means an individual deleted text begin who performs services subject to the right of the
employer to control both what is done and how it is done. deleted text end new text begin , whether currently or formerly
employed, who is owed earnings and who:
new text end

new text begin (1) is treated by an employer as an employee for federal employment tax purposes; or
new text end

new text begin (2) receives earnings from an employer through periodic payments and is not treated by
the employer as an employee for federal employment tax purposes.
new text end

(d) "Employer" means a person deleted text begin for whom an individual performs services as an employee deleted text end new text begin
who owes or will owe earnings to an employee new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 45.

Minnesota Statutes 2022, section 571.922, is amended to read:

571.922 LIMITATION ON WAGE GARNISHMENT.

(a) Unless the judgment is for child support, the maximum part of the aggregate
disposable earnings of an individual for any pay period subjected to garnishment may not
exceed the lesser of:

(1) 25 percent of the debtor's disposable earnings new text begin , if the debtor's weekly income exceeds
120 times the greater of the hourly wage described in section 571.922, paragraph (a), clause
(4) new text end ; deleted text begin or
deleted text end

(2) new text begin 15 percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
80 times but is less than or equal to 120 times the greater of the hourly wages described in
section 571.922, paragraph (a), clause (4); or
new text end

new text begin (3) five percent of the debtor's disposable earnings, if the debtor's weekly income exceeds
40 times but is less than or equal to 80 times the greater of the hourly wages described in
section 571.922, paragraph (a), clause (4).
new text end

new text begin (b) new text end The amount by which the debtor's disposable earnings exceed the greater of:

deleted text begin (i) deleted text end new text begin (1) new text end 40 times the hourly wage described in section 177.24, subdivision 1, paragraph
(b), clause (1), item (iii); or

deleted text begin (ii) deleted text end new text begin (2) new text end 40 times the federal minimum hourly wages prescribed by section 6(a)(1) of the
Fair Labor Standards Act of 1938, United States Code, title 29, section 206(a)(1). The
calculation of the amount that is subject to garnishment must be based on the hourly wage
in effect at the time the earnings are payable, times the number of work weeks in the pay
period. When a pay period consists of other than a whole number of work weeks, each day
of that pay period in excess of the number of completed work weeks shall be counted as a
fraction of a work week equal to the number of excess workdays divided by the number of
days in the normal work week.

deleted text begin (b) deleted text end new text begin (c) new text end If the judgment is for child support, the garnishment may not exceed:

(1) 50 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);

(2) 55 percent of the judgment debtor's disposable income, if the judgment debtor is
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the garnishment summons is
received);

(3) 60 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child and the judgment is 12 weeks old or less (12 weeks
to be calculated to the beginning of the work week in which the execution levy is received);
or

(4) 65 percent of the judgment debtor's disposable income, if the judgment debtor is not
supporting a spouse or dependent child, and the judgment is over 12 weeks old (12 weeks
to be calculated to the beginning of the work week in which the garnishment summons is
received).

Wage garnishments on judgments for child support are effective until the judgments are
satisfied if the judgment creditor is a county and the employer is notified by the county
when the judgment is satisfied.

deleted text begin (c) deleted text end new text begin (d) new text end No court may make, execute, or enforce an order or any process in violation of
this section.

Sec. 46.

Minnesota Statutes 2022, section 571.924, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

The creditor shall serve upon the debtor, no less than ten
days before the service of the garnishment summons, a notice that a summons may be issued.
The notice shall: (1) be substantially in the form set out in section 571.925; (2) be served
personally, in the manner of a summons and complaint, or by first class mail to the last
known address of the debtor; (3) inform the debtor that a garnishment summons may be
served on the debtor's employer after ten days, and that the debtor may, within that time,
cause to be served on the creditor a signed statement under penalties of perjury asserting
an entitlement to an exemption from garnishment; (4) inform the debtor of the earnings
garnishment exemptions contained in section 550.37, subdivision 14; deleted text begin and deleted text end (5) advise the
debtor of the relief set forth in this chapter to which the debtor may be entitled if a creditor
in bad faith disregards a valid claim and the fee, costs, and penalty that may be assessed
against a debtor who in bad faith falsely claims an exemption or in bad faith takes action
to frustrate the garnishment process new text begin ; and (6) provide in type that is at least two points larger
than the body of the notice: (i) the date upon which the notice is mailed; (ii) a mailing
address and an email address for delivery of an exemption claim; and (iii) a telephone
number for the creditor's attorney or the creditor new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to causes
of action commenced on or after that date.
new text end

Sec. 47.

Minnesota Statutes 2022, section 571.925, is amended to read:

571.925 FORM OF NOTICE.

The ten-day notice informing a debtor that a garnishment summons may be used to
garnish the earnings of an individual must be substantially in the following form:

STATE OF MINNESOTA		DISTRICT COURT
COUNTY OF .		. JUDICIAL DISTRICT
. (Creditor)
against
		GARNISHMENT EXEMPTION
. (Debtor)		NOTICE AND NOTICE OF
and		INTENT TO GARNISH EARNINGS
. (Garnishee)

PLEASE TAKE NOTICE that a garnishment summons or levy may be served upon
your employer or other third parties, without any further court proceedings or notice to you,
ten days or more from the date hereof. Some or all of your earnings are exempt from
garnishment. If your earnings are garnished, your employer must show you how the amount
that is garnished from your earnings was calculated. You have the right to request a hearing
if you claim the garnishment is incorrect.

Your earnings are completely exempt from garnishment if you are now a recipient of
assistance based on need, if you have been a recipient of assistance based on need within
the last six months, or if you have been an inmate of a correctional institution in the last six
months.

Assistance based on need includes, but is not limited to:

	MFIP - Minnesota family investment program,
	MFIP Diversionary Work Program,
	Work participation cash benefit,
	GA - general assistance,
	EA - emergency assistance,
	MA - medical assistance, new text begin whether received by you or by your dependent child, new text end
	EGA - emergency general assistance,
	MSA - Minnesota supplemental aid,
	MSA-EA - MSA emergency assistance,
	Supplemental Nutrition Assistance Program (SNAP),
	SSI - Supplemental Security Income,
	MinnesotaCare, new text begin whether received by you or by your dependent child, new text end
	Medicare Part B premium payments,
	Medicare Part D extra help,
	Energy or fuel assistance.

If you wish to claim an exemption, you should fill out the appropriate form below, sign
it, and send it to the creditor's attorney and the garnishee.

You may wish to contact the attorney for the creditor in order to arrange for a settlement
of the debt or contact an attorney to advise you about exemptions or other rights.

PENALTIES

(1) Be advised that even if you claim an exemption, a garnishment summons may still
be served on your employer. If your earnings are garnished after you claim an exemption,
you may petition the court for a determination of your exemption. If the court finds that
the creditor disregarded your claim of exemption in bad faith, you will be entitled to
costs, reasonable attorney fees, actual damages, and an amount not to exceed $100.

(2) HOWEVER, BE WARNED if you claim an exemption, the creditor can also petition
the court for a determination of your exemption, and if the court finds that you claimed
an exemption in bad faith, you will be assessed costs and reasonable attorney's fees plus
an amount not to exceed $100.

(3) If after receipt of this notice, you in bad faith take action to frustrate the garnishment,
thus requiring the creditor to petition the court to resolve the problem, you will be liable
to the creditor for costs and reasonable attorney's fees plus an amount not to exceed
$100.

Dated: .		.
		(Attorney for) Creditor
		.
		Address
		.
		Telephone

DEBTOR'S EXEMPTION CLAIM NOTICE

I hereby claim that my earnings are exempt from garnishment because:

(1) I am presently a recipient of relief based on need. (Specify the program, case number,
and the county from which relief is being received.)

.	.	.
Program	Case Number (if known)	County

(2) I am not now receiving relief based on need, but I have received relief based on need
within the last six months. (Specify the program, case number, and the county from
which relief has been received.)

.	.	.
Program	Case Number (if known)	County

(3) I have been an inmate of a correctional institution within the last six months. (Specify
the correctional institution and location.)

.		.
Correctional Institution		Location

I hereby authorize any agency that has distributed relief to me or any correctional
institution in which I was an inmate to disclose to the above-named creditor or the creditor's
attorney only whether or not I am or have been a recipient of relief based on need or an
inmate of a correctional institution within the last six months. I have mailed or delivered a
copy of this form to the creditor or creditor's attorney.

.		.
Date		Debtor
		.
		Address
		.
		Debtor Telephone Number

STATE OF MINNESOTA		DISTRICT COURT
COUNTY OF .		. JUDICIAL DISTRICT
. (Creditor)
. (Debtor)
. (Financial institution)

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2024, and applies to notices
provided on or after that date.
new text end

Sec. 48. new text begin GARNISHMENT FORMS REVISION.
new text end

new text begin (a) The attorney general must review and make recommendations to revise into plain Next
language Next the notices and forms found in Minnesota Statutes, sections 571.72, subdivisions
8 and 10; 571.74; 571.75, subdivision 2; 571.912; and 571.925.
new text end

new text begin (b) The attorney general must review and determine whether the forms contained in
Minnesota Statutes, sections 571.711, subdivision 11; 571.914; 571.931, subdivision 6; and
571.932, subdivision 2, should be revised into a more easily readable and understandable
format. If the attorney general determines the forms should be revised, the attorney general
must make recommendations for legislative revisions to the forms.
new text end

new text begin (c) The recommendations made under paragraphs (a) and (b) must include proposals to:
(1) explain in simple terms the meaning of garnishment in any form that uses the term
garnishment; and (2) prominently place on forms the name, telephone number, and email
address of the creditor.
new text end

new text begin (d) When developing the recommendations, the attorney general must consult with the
Center for Previous Plain Language Next and other Previous plain language Next experts the attorney general may identify,
and must collaborate with the commissioner of commerce and affected business and consumer
groups, including but not limited to:
new text end

new text begin (1) the Minnesota Creditors' Rights Association;
new text end

new text begin (2) the Great Lakes Credit and Collections Association;
new text end

new text begin (3) the Minnesota Bankers' Association;
new text end

new text begin (4) the Minnesota Credit Union Network;
new text end

new text begin (5) BankIn Minnesota;
new text end

new text begin (6) Mid-Minnesota Legal Aid;
new text end

new text begin (7) the Minnesota chapter of the National Association of Consumer Advocates;
new text end

new text begin (8) the Minnesota chapter of the National Association of Consumer Bankruptcy Attorneys;
new text end

new text begin (9) Lutheran Social Service; and
new text end

new text begin (10) Family Means.
new text end

new text begin (e) For the purposes of this section, " Previous plain language" means communication in which
the wording, structure, and design are so clear that the intended reader can easily: (1) find
what the reader needs; (2) understand what the reader needs; and (3) use what the reader
finds to meet the reader's needs.
new text end