Minnesota Session Laws - 1999, Regular Session

                            CHAPTER 137-S.F.No. 1715 
                  An act relating to commerce; providing enforcement 
                  authority for the commissioner; regulating service of 
                  process; regulating residential building contractors 
                  and remodelers; providing criminal penalties; amending 
                  Minnesota Statutes 1998, sections 45.027, subdivisions 
                  6 and 7; 45.028, subdivision 2; 80A.15, subdivision 2; 
                  326.83, subdivision 18; 326.89, subdivision 3; 326.92, 
                  by adding a subdivision; 326.94, subdivision 2; and 
                  332.37; proposing coding for new law in Minnesota 
                  Statutes, chapter 82B; repealing Minnesota Statutes 
                  1998, section 326.89, subdivision 3a. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 45.027, 
        subdivision 6, is amended to read: 
           Subd. 6.  [VIOLATIONS AND PENALTIES.] The commissioner may 
        impose a civil penalty not to exceed $2,000 $10,000 per 
        violation upon a person who violates any law, rule, or order 
        related to the duties and responsibilities entrusted to the 
        commissioner unless a different penalty is specified.  
           Sec. 2.  Minnesota Statutes 1998, section 45.027, 
        subdivision 7, is amended to read: 
           Subd. 7.  [ACTIONS AGAINST LICENSEES.] (a) In addition to 
        any other actions authorized by this section, the commissioner 
        may, by order, deny, suspend, or revoke the authority or license 
        of a person subject to the duties and responsibilities entrusted 
        to the commissioner, as described under section 45.011, 
        subdivision 4, or censure that person if the commissioner finds 
        that: 
           (1) the order is in the public interest; and 
           (2) the person has violated any law, rule, or order related 
        to the duties and responsibilities entrusted to the 
        commissioner; or 
           (3) the person has provided false, misleading, or 
        incomplete information to the commissioner or has refused to 
        allow a reasonable inspection of records or premises; or 
           (4) the person has engaged in an act or practice, whether 
        or not the act or practice directly involves the business for 
        which the person is licensed or authorized, which demonstrates 
        that the applicant or licensee is untrustworthy, financially 
        irresponsible, or otherwise incompetent or unqualified to act 
        under the authority or license granted by the commissioner. 
           (b) The commissioner shall issue an order requiring a 
        licensee or applicant for a license to show cause why the 
        license should not be revoked or suspended, or the licensee 
        censured, or the application denied.  The order must be 
        calculated to give reasonable notice of the time and place for a 
        hearing on the action, and must state the reasons for the entry 
        of the order.  The commissioner may, by order, summarily suspend 
        a license pending final determination of an order to show cause. 
        If a license is suspended pending final determination of an 
        order to show cause, a hearing on the merits must be held within 
        30 days of the issuance of the order of suspension.  All 
        hearings must be conducted according to chapter 14.  After the 
        hearing, the commissioner shall enter an order disposing of the 
        matter as the facts require.  If the licensee or applicant fails 
        to appear at a hearing after having been duly notified of it, 
        the person is considered in default, and the proceeding may be 
        determined against the licensee or applicant upon consideration 
        of the order to show cause, the allegations of which may be 
        considered true.  The summary suspension or summary revocation 
        procedures does not apply to action by the commissioner against 
        the certificate of authority of an insurer authorized to do 
        business in Minnesota.  
           Except for information classified as confidential under 
        sections 60A.03, subdivision 9; 60A.031; 60A.93; and 60D.22, the 
        commissioner may make any data otherwise classified as private 
        or confidential pursuant to this section accessible to an 
        appropriate person or agency if the commissioner determines that 
        the access will aid the law enforcement process, promote public 
        health or safety, or dispel widespread rumor or unrest.  If the 
        commissioner determines that private or confidential information 
        should be disclosed, the commissioner shall notify the attorney 
        general as to the information to be disclosed, the purpose of 
        the disclosure, and the need for the disclosure.  The attorney 
        general shall review the commissioner's determination.  If the 
        attorney general believes that the commissioner's determination 
        does not satisfy the purpose and intent of this provision, the 
        attorney general shall advise the commissioner in writing that 
        the information may not be disclosed.  If the attorney general 
        believes the commissioner's determination satisfies the purpose 
        and intent of this provision, the attorney general shall advise 
        the commissioner in writing, accordingly. 
           After disclosing information pursuant to this provision, 
        the commissioner shall advise the chairs of the senate and house 
        of representatives judiciary committees of the disclosure and 
        the basis for it. 
           Sec. 3.  Minnesota Statutes 1998, section 45.028, 
        subdivision 2, is amended to read: 
           Subd. 2.  [HOW MADE.] Service of process under this section 
        may be made by leaving a copy of the process in the office of 
        the commissioner, or by sending a copy of the process to the 
        commissioner by certified mail, and is not effective unless:  (1)
        the plaintiff, who may be the commissioner in an action or 
        proceeding instituted by the commissioner, sends notice of the 
        service and a copy of the process by certified mail to the 
        defendant or respondent at the last known address; and (2) the 
        plaintiff's affidavit of compliance is filed in the action or 
        proceeding on or before the return day of the process, if any, 
        or within further time as the court allows.  
           Sec. 4.  Minnesota Statutes 1998, section 80A.15, 
        subdivision 2, is amended to read: 
           Subd. 2.  The following transactions are exempted from 
        sections 80A.08 and 80A.16: 
           (a) Any sales, whether or not effected through a 
        broker-dealer, provided that: 
           (1) no person shall make more than ten sales of securities 
        of the same issuer pursuant to this exemption, exclusive of 
        sales according to clause (2), during any period of 12 
        consecutive months; provided further, that in the case of sales 
        by an issuer, except sales of securities registered under the 
        Securities Act of 1933 or exempted by section 3(b) of that act, 
        (i) the seller reasonably believes that all buyers are 
        purchasing for investment, and (ii) the securities are not 
        advertised for sale to the general public in newspapers or other 
        publications of general circulation or otherwise, or by radio, 
        television, electronic means or similar communications media, or 
        through a program of general solicitation by means of mail or 
        telephone; and 
           (2) no issuer shall make more than 25 sales of its 
        securities according to this exemption, exclusive of sales 
        pursuant to clause (1), during any period of 12 consecutive 
        months; provided further, that the issuer meets the conditions 
        in clause (1) and, in addition meets the following additional 
        conditions:  (i) files with the commissioner, ten days before a 
        sale according to this clause, a statement of issuer on a form 
        prescribed by the commissioner; and (ii) no commission or other 
        remuneration is paid or given directly or indirectly for 
        soliciting any prospective buyers in this state in connection 
        with a sale according to this clause except reasonable and 
        customary commissions paid by the issuer to a broker-dealer 
        licensed under this chapter. 
           (b) Any nonissuer distribution of an outstanding security 
        if (1) either Moody's, Fitch's, or Standard & Poor's Securities 
        Manuals, or other recognized manuals approved by the 
        commissioner contains the names of the issuer's officers and 
        directors, a balance sheet of the issuer as of a date not more 
        than 18 months prior to the date of the sale, and a profit and 
        loss statement for the fiscal year preceding the date of the 
        balance sheet, and (2) the issuer or its predecessor has been in 
        active, continuous business operation for the five-year period 
        next preceding the date of sale, and (3) if the security has a 
        fixed maturity or fixed interest or dividend provision, the 
        issuer has not, within the three preceding fiscal years, 
        defaulted in payment of principal, interest, or dividends on the 
        securities. 
           (c) The execution of any orders by a licensed broker-dealer 
        for the purchase or sale of any security, pursuant to an 
        unsolicited offer to purchase or sell; provided that the 
        broker-dealer acts as agent for the purchaser or seller, and has 
        no direct material interest in the sale or distribution of the 
        security, receives no commission, profit, or other compensation 
        from any source other than the purchaser and seller and delivers 
        to the purchaser and seller written confirmation of the 
        transaction which clearly itemizes the commission, or other 
        compensation. 
           (d) Any nonissuer sale of notes or bonds secured by a 
        mortgage lien if the entire mortgage, together with all notes or 
        bonds secured thereby, is sold to a single purchaser at a single 
        sale. 
           (e) Any judicial sale, exchange, or issuance of securities 
        made pursuant to an order of a court of competent jurisdiction. 
           (f) The sale, by a pledge holder, of a security pledged in 
        good faith as collateral for a bona fide debt. 
           (g) Any offer or sale to a bank, savings institution, trust 
        company, insurance company, investment company as defined in the 
        Investment Company Act of 1940, or other financial institution 
        or institutional buyer, or to a broker-dealer, whether the 
        purchaser is acting for itself or in some fiduciary capacity. 
           (h) An offer or sale of securities by an issuer made in 
        reliance on the exemptions provided by Rule 505 or 506 of 
        Regulation D promulgated by the Securities and Exchange 
        Commission, Code of Federal Regulations, title 17, sections 
        230.501 to 230.508, subject to the conditions and definitions 
        provided by Rules 501 to 503 of Regulation D, if the offer and 
        sale also satisfies the conditions and limitations in clauses 
        (1) to (10). 
           (1) The exemption under this paragraph is not available for 
        the securities of an issuer if any of the persons described in 
        Rule 252(c) to (f) of Regulation A promulgated by the Securities 
        and Exchange Commission, Code of Federal Regulations, title 17, 
        sections 230.251 to 230.263:  
           (i) has filed a registration statement that is the subject 
        of a currently effective order entered against the issuer, its 
        officers, directors, general partners, controlling persons, or 
        affiliates, according to any state's law within five years 
        before the filing of the notice required under clause (5), 
        denying effectiveness to, or suspending or revoking the 
        effectiveness of, the registration statement; 
           (ii) has been convicted, within five years before the 
        filing of the notice required under clause (5), of a felony or 
        misdemeanor in connection with the offer, sale, or purchase of a 
        security or franchise, or a felony involving fraud or deceit, 
        including but not limited to forgery, embezzlement, obtaining 
        money under false pretenses, larceny, or conspiracy to defraud; 
           (iii) is subject to an effective administrative order or 
        judgment entered by a state securities administrator within five 
        years before the filing of the notice required under clause (5), 
        that prohibits, denies, or revokes the use of an exemption from 
        securities registration, that prohibits the transaction of 
        business by the person as a broker-dealer or agent, or that is 
        based on fraud, deceit, an untrue statement of a material fact, 
        or an omission to state a material fact; or 
           (iv) is subject to an order, judgment, or decree of a court 
        entered within five years before the filing of the notice 
        required under clause (5), temporarily, preliminarily, or 
        permanently restraining or enjoining the person from engaging in 
        or continuing any conduct or practice in connection with the 
        offer, sale, or purchase of a security, or the making of a false 
        filing with a state. 
           A disqualification under paragraph (h) involving a 
        broker-dealer or agent is waived if the broker-dealer or agent 
        is or continues to be licensed in the state in which the 
        administrative order or judgment was entered against the person 
        or if the broker-dealer or agent is or continues to be licensed 
        in this state as a broker-dealer or agent after notifying the 
        commissioner of the act or event causing disqualification. 
           The commissioner may waive a disqualification under 
        paragraph (h) upon a showing of good cause that it is not 
        necessary under the circumstances that use of the exemption be 
        denied. 
           A disqualification under paragraph (h) may be waived if the 
        state securities administrator or agency of the state that 
        created the basis for disqualification has determined, upon a 
        showing of good cause, that it is not necessary under the 
        circumstances that an exemption from registration of securities 
        under the state's laws be denied. 
           It is a defense to a violation of paragraph (h) based upon 
        a disqualification if the issuer sustains the burden of proof to 
        establish that the issuer did not know, and in the exercise of 
        reasonable care could not have known, that a disqualification 
        under paragraph (h) existed. 
           (2) This exemption must not be available to an issuer with 
        respect to a transaction that, although in technical compliance 
        with this exemption, is part of a plan or scheme to evade 
        registration or the conditions or limitations explicitly stated 
        in paragraph (h). 
           (3) No commission, finder's fee, or other remuneration 
        shall be paid or given, directly or indirectly, for soliciting a 
        prospective purchaser, unless the recipient is appropriately 
        licensed, or exempt from licensure, in this state as a 
        broker-dealer. 
           (4) Nothing in this exemption is intended to or should be 
        in any way construed as relieving issuers or persons acting on 
        behalf of issuers from providing disclosure to prospective 
        investors adequate to satisfy the antifraud provisions of the 
        securities law of Minnesota.  
           (5) The issuer shall file with the commissioner a notice on 
        form D as adopted by the Securities and Exchange Commission 
        according to Regulation D, Code of Federal Regulations, title 
        17, section 230.502.  The notice must be filed not later than 15 
        days after the first sale in this state of securities in an 
        offering under this exemption.  Every notice on form D must be 
        manually signed by a person duly authorized by the issuer and 
        must be accompanied by a consent to service of process on a form 
        prescribed by the commissioner.  
           (6) A failure to comply with a term, condition, or 
        requirement of paragraph (h) will not result in loss of the 
        exemption for an offer or sale to a particular individual or 
        entity if the person relying on the exemption shows that:  (i) 
        the failure to comply did not pertain to a term, condition, or 
        requirement directly intended to protect that particular 
        individual or entity, and the failure to comply was 
        insignificant with respect to the offering as a whole; and (ii) 
        a good faith and reasonable attempt was made to comply with all 
        applicable terms, conditions, and requirements of paragraph (h), 
        except that, where an exemption is established only through 
        reliance upon this provision, the failure to comply shall 
        nonetheless constitute a violation of section 80A.08 and be 
        actionable by the commissioner.  
           (7) The issuer, upon request by the commissioner, shall, 
        within ten days of the request, furnish to the commissioner a 
        copy of any and all information, documents, or materials 
        furnished to investors or offerees in connection with the offer 
        and sale according to paragraph (h).  
           (8) Neither compliance nor attempted compliance with the 
        exemption provided by paragraph (h), nor the absence of an 
        objection or order by the commissioner with respect to an offer 
        or sale of securities undertaken according to this exemption, 
        shall be considered to be a waiver of a condition of the 
        exemption or considered to be a confirmation by the commissioner 
        of the availability of this exemption.  
           (9) The commissioner may, by rule or order, increase the 
        number of purchasers or waive any other condition of this 
        exemption.  
           (10) The determination whether offers and sales made in 
        reliance on the exemption set forth in paragraph (h) shall be 
        integrated with offers and sales according to other paragraphs 
        of this subdivision shall be made according to the integration 
        standard set forth in Rule 502 of Regulation D promulgated by 
        the Securities and Exchange Commission, Code of Federal 
        Regulations, title 17, section 230.502.  If not subject to 
        integration according to that rule, offers and sales according 
        to paragraph (h) shall not otherwise be integrated with offers 
        and sales according to other exemptions set forth in this 
        subdivision. 
           (i) Any offer (but not a sale) of a security for which a 
        registration statement has been filed under sections 80A.01 to 
        80A.31, if no stop order or refusal order is in effect and no 
        public proceeding or examination looking toward an order is 
        pending; and any offer of a security if the sale of the security 
        is or would be exempt under this section.  The commissioner may 
        by rule exempt offers (but not sales) of securities for which a 
        registration statement has been filed as the commissioner deems 
        appropriate, consistent with the purposes of sections 80A.01 to 
        80A.31. 
           (j) The offer and sale by a cooperative organized under 
        chapter 308A or under the laws of another state, of its 
        securities when the securities are offered and sold only to its 
        members, or when the purchase of the securities is necessary or 
        incidental to establishing membership in the cooperative, or 
        when such securities are issued as patronage dividends.  This 
        paragraph applies to a cooperative organized under the laws of 
        another state only if the cooperative has filed with the 
        commissioner a consent to service of process under section 
        80A.27, subdivision 7, and has, not less than ten days prior to 
        the issuance or delivery, furnished the commissioner with a 
        written general description of the transaction and any other 
        information that the commissioner requires by rule or otherwise. 
        This exemption only applies when the issuing cooperative is 
        seeking to raise up to $1,000,000. 
           (l) The issuance and delivery of any securities of one 
        corporation to another corporation or its security holders in 
        connection with a merger, exchange of shares, or transfer of 
        assets whereby the approval of stockholders of the other 
        corporation is required to be obtained, provided, that the 
        commissioner has been furnished with a general description of 
        the transaction and with other information as the commissioner 
        by rule prescribes not less than ten days prior to the issuance 
        and delivery. 
           (m) Any transaction between the issuer or other person on 
        whose behalf the offering is made and an underwriter or among 
        underwriters. 
           (n) The distribution by a corporation of its or other 
        securities to its own security holders as a stock dividend or as 
        a dividend from earnings or surplus or as a liquidating 
        distribution; or upon conversion of an outstanding convertible 
        security; or pursuant to a stock split or reverse stock split. 
           (o) Any offer or sale of securities by an affiliate of the 
        issuer thereof if:  (1) a registration statement is in effect 
        with respect to securities of the same class of the issuer and 
        (2) the offer or sale has been exempted from registration by 
        rule or order of the commissioner.  
           (p) Any transaction pursuant to an offer to existing 
        security holders of the issuer, including persons who at the 
        time of the transaction are holders of convertible securities, 
        nontransferable warrants, or transferable warrants exercisable 
        within not more than 90 days of their issuance, if:  (1) no 
        commission or other remuneration (other than a standby 
        commission) is paid or given directly or indirectly for 
        soliciting any security holder in this state; and (2) the 
        commissioner has been furnished with a general description of 
        the transaction and with other information as the commissioner 
        may by rule prescribe no less than ten days prior to the 
        transaction. 
           (q) Any nonissuer sales of any security, including a 
        revenue obligation, issued by the state of Minnesota or any of 
        its political or governmental subdivisions, municipalities, 
        governmental agencies, or instrumentalities. 
           (r) Any transaction as to which the commissioner by rule or 
        order finds that registration is not necessary in the public 
        interest and for the protection of investors. 
           (s) An offer or sale of a security issued in connection 
        with an employee's stock purchase, savings, option, profit 
        sharing, pension, or similar employee benefit plan, if the 
        following conditions are met:  
           (1) the issuer, its parent corporation or any of its 
        majority-owned subsidiaries offers or sells the security 
        according to a written benefit plan or written contract relating 
        to the compensation of the purchaser; and 
           (2) the class of securities offered according to the plan 
        or contract, or if an option or right to purchase a security, 
        the class of securities to be issued upon the exercise of the 
        option or right, is registered under section 12 of the 
        Securities Exchange Act of 1934, or is a class of securities 
        with respect to which the issuer files reports according to 
        section 15(d) of the Securities Exchange Act of 1934; or 
           (3) the issuer fully complies with the provisions of Rule 
        701 as adopted by the Securities and Exchange Commission, Code 
        of Federal Regulations, title 12, section 230.701. 
           The issuer shall file not less than ten days before the 
        transaction, a general description of the transaction and any 
        other information that the commissioner requires by rule or 
        otherwise or, if applicable, a Securities and Exchange Form S-8. 
        Annually, within 90 days after the end of the issuer's fiscal 
        year, the issuer shall file a notice as provided with the 
        commissioner. 
           (t) Any sale of a security of an issuer that is a pooled 
        income fund, a charitable remainder trust, or a charitable lead 
        trust that has a qualified charity as the only charitable 
        beneficiary. 
           (u) Any sale by a qualified charity of a security that is a 
        charitable gift annuity if the issuer has a net worth, otherwise 
        defined as unrestricted fund balance, of not less than $300,000 
        and either:  (1) has been in continuous operation for not less 
        than three years; or (2) is a successor or affiliate of a 
        qualified charity that has been in continuous operation for not 
        less than three years. 
           Sec. 5.  [82B.201] [CRIMINAL PENALTY.] 
           Any person who violates any provision of this chapter, or 
        any rule or order of the commissioner, is guilty of a gross 
        misdemeanor. 
           Sec. 6.  Minnesota Statutes 1998, section 326.83, 
        subdivision 18, is amended to read: 
           Subd. 18.  [ROOFER.] "Roofer" means a person engaged in the 
        business of doing contracting, or offering to contract with an 
        owner, to complete work on residential real estate in roof 
        coverings, roof sheathing, roof weatherproofing and insulation, 
        and repair of roof systems, but not construction of new roof 
        systems. 
           Sec. 7.  Minnesota Statutes 1998, section 326.89, 
        subdivision 3, is amended to read: 
           Subd. 3.  [EXAMINATION.] (a) Each qualifying person must 
        satisfactorily complete a written examination for the type of 
        license requested.  The commissioner may establish the 
        examination qualifications, including related education 
        experience and education, the examination procedure, and the 
        examination for each licensing group.  The examination must 
        include at a minimum the following areas: 
           (1) appropriate knowledge of technical terms commonly used 
        and the knowledge of reference materials and code books to be 
        used for technical information; and 
           (2) understanding of the general principles of business 
        management and other pertinent state laws. 
           (b) Each examination must be designed for the specified 
        type of license requested.  The council shall advise the 
        commissioner on the grading, monitoring, and updating of 
        examinations. 
           (c) A person's passing examination results expire two years 
        from the examination date.  A person who passes the examination 
        but does not choose to apply to act as a qualifying person for a 
        licensee within two years from the examination date, must, upon 
        application provide: 
           (1) passing examination results within two years from the 
        date of application; or 
           (2) proof that the person has fulfilled the continuing 
        education requirements in section 326.87 in the manner required 
        for a qualifying person of a licensee for each license period 
        after the expiration of the examination results. 
           Sec. 8.  Minnesota Statutes 1998, section 326.92, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [GROSS MISDEMEANOR.] A person required to be 
        licensed under sections 326.84 to 326.991 who violates an order 
        under subdivision 3 is guilty of a gross misdemeanor. 
           Sec. 9.  Minnesota Statutes 1998, section 326.94, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INSURANCE.] Licensees must have public liability 
        insurance with limits of at least $100,000 per occurrence, which 
        must include at least $10,000 property damage coverage.  The 
        insurance must be written by an insurer licensed to do business 
        in this state.  The commissioner may increase the minimum amount 
        of insurance required for any licensee or class of licensees if 
        the commissioner considers it to be in the public interest and 
        necessary to protect the interests of Minnesota consumers. 
           Sec. 10.  Minnesota Statutes 1998, section 332.37, is 
        amended to read: 
           332.37 [PROHIBITED PRACTICES.] 
           No collection agency or collectors shall:  
           (1) in collection letters or publications, or in any 
        communication, oral or written threaten wage garnishment or 
        legal suit by a particular lawyer, unless it has actually 
        retained the lawyer; 
           (2) use or employ constables, 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; 
           (3) use or threaten to use methods of collection which 
        violate Minnesota law; 
           (4) furnish legal advice or otherwise engage in the 
        practice of law or represent that it is competent to do so; 
           (5) communicate with debtors in a misleading or deceptive 
        manner by 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; 
           (6) exercise authority on behalf of a creditor to employ 
        the services of lawyers unless the creditor has specifically 
        authorized the agency in writing to do so and the agency's 
        course of conduct is at all times consistent with a true 
        relationship of attorney and client between the lawyer and the 
        creditor; 
           (7) publish or cause to be published any list of debtors 
        except for credit reporting purposes, 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; 
           (8) refuse to return any claim or claims and all valuable 
        papers deposited with a claim or claims upon written request of 
        the creditor, claimant or forwarder after tender of the amounts 
        due and owing to the agency within 30 days after the request; 
        refuse or intentionally fail to account to its clients for all 
        money collected within 30 days from the last day of the month in 
        which the same is collected; or, refuse or fail to furnish at 
        intervals of not less than 90 days upon written request of the 
        claimant or forwarder, a written report upon claims received 
        from the claimant or forwarder; 
           (9) operate under a name or in a manner which implies that 
        the agency is a branch of or associated with any department of 
        federal, state, county or local government or an agency thereof; 
           (10) commingle money collected for a customer with the 
        agency's operating funds or use any part of a customer's money 
        in the conduct of the agency's business; 
           (11) transact business or hold itself out as a debt 
        prorater, 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; 
           (12) violate any of the provisions of the Fair Debt 
        Collection Practices Act of 1977 while attempting to collect on 
        any account, bill or other indebtedness; 
           (13) communicate with a debtor by use of a recorded message 
        utilizing an automatic dialing announcing device unless the 
        recorded message is immediately preceded by a live operator who 
        discloses prior to the message the name of the collection agency 
        and the fact the message intends to solicit payment and the 
        operator obtains the consent of the debtor to hearing the 
        message; 
           (14) in collection letters or publications, or in any 
        communication, oral or written, imply or suggest that health 
        care services will be withheld in an emergency situation; 
           (15) when a debtor has a listed telephone number, enlist 
        the aid of a neighbor or third party to request that the debtor 
        contact the licensee, except a person who resides with the 
        debtor or a third party with whom the debtor has authorized the 
        licensee 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 to the licensee's telephone and the collector's name; 
           (16) when attempting to collect a debt, fail to provide the 
        debtor with the full name of the collection agency as it appears 
        on its license; 
           (17) collect any money from a debtor that is not reported 
        to a creditor or 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; 
           (18) accept currency or coin as payment for a debt without 
        issuing an original receipt to the debtor and maintain a 
        duplicate receipt in the debtor's payment records; or 
           (19) attempt to collect any amount of money from a debtor 
        or charge a fee to a creditor that is not authorized by 
        agreement with the client; 
           (20) falsify any collection agency documents with the 
        intent to deceive a debtor, creditor, or governmental agency; or 
           (19) (21) when initially contacting a Minnesota debtor by 
        mail, 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.  
        The disclosure must state:  "This collection agency is licensed 
        by the Minnesota Department of Commerce." 
           Sec. 11.  [REPEALER.] 
           Minnesota Statutes 1998, section 326.89, subdivision 3a, is 
        repealed. 
           Sec. 12.  [EFFECTIVE DATES.] 
           Sections 1 to 3, 5 to 8, 10, and 11 are effective the day 
        following final enactment.  Sections 4 and 9 are effective 
        August 1, 1999. 
           Presented to the governor May 6, 1999 
           Signed by the governor May 10, 1999, 1:10 p.m.