1.1    .................... moves to amend H. F. No. 1515, the first committee engrossment,
1.2as follows:
1.3Page 1, after line 9, insert:

1.4    "Section 1. Minnesota Statutes 2006, section 45.011, subdivision 1, is amended to read:
1.5    Subdivision 1. Scope. As used in chapters 45 to 83, 155A, 332, 332A, 345, and
1.6359, and sections 325D.30 to 325D.42, 326.83 to 326.991, and 386.61 to 386.78, unless
1.7the context indicates otherwise, the terms defined in this section have the meanings given

1.9    Sec. 2. Minnesota Statutes 2006, section 46.04, subdivision 1, is amended to read:
1.10    Subdivision 1. General. The commissioner of commerce, referred to in chapters
1.1146 to 59A, and sections 332.12 to 332.29 chapter 332A, as the commissioner, is vested
1.12with all the powers, authority, and privileges which, prior to the enactment of Laws 1909,
1.13chapter 201, were conferred by law upon the public examiner, and shall take over all
1.14duties in relation to state banks, savings banks, trust companies, savings associations, and
1.15other financial institutions within the state which, prior to the enactment of chapter 201,
1.16were imposed upon the public examiner. The commissioner of commerce shall exercise
1.17a constant supervision, either personally or through the examiners herein provided for,
1.18over the books and affairs of all state banks, savings banks, trust companies, savings
1.19associations, credit unions, industrial loan and thrift companies, and other financial
1.20institutions doing business within this state; and shall, through examiners, examine each
1.21financial institution at least once every 24 calendar months. In satisfying this examination
1.22requirement, the commissioner may accept reports of examination prepared by a federal
1.23agency having comparable supervisory powers and examination procedures. With the
1.24exception of industrial loan and thrift companies which do not have deposit liabilities
1.25and licensed regulated lenders, it shall be the principal purpose of these examinations to
1.26inspect and verify the assets and liabilities of each and so far investigate the character
2.1and value of the assets of each institution as to determine with reasonable certainty that
2.2the values are correctly carried on its books. Assets and liabilities shall be verified in
2.3accordance with methods of procedure which the commissioner may determine to be
2.4adequate to carry out the intentions of this section. It shall be the further purpose of
2.5these examinations to assess the adequacy of capital protection and the capacity of the
2.6institution to meet usual and reasonably anticipated deposit withdrawals and other cash
2.7commitments without resorting to excessive borrowing or sale of assets at a significant
2.8loss, and to investigate each institution's compliance with applicable laws and rules. Based
2.9on the examination findings, the commissioner shall make a determination as to whether
2.10the institution is being operated in a safe and sound manner. None of the above provisions
2.11limits the commissioner in making additional examinations as deemed necessary or
2.12advisable. The commissioner shall investigate the methods of operation and conduct of
2.13these institutions and their systems of accounting, to ascertain whether these methods and
2.14systems are in accordance with law and sound banking principles. The commissioner may
2.15make requirements as to records as deemed necessary to facilitate the carrying out of the
2.16commissioner's duties and to properly protect the public interest. The commissioner may
2.17examine, or cause to be examined by these examiners, on oath, any officer, director,
2.18trustee, owner, agent, clerk, customer, or depositor of any financial institution touching
2.19the affairs and business thereof, and may issue, or cause to be issued by the examiners,
2.20subpoenas, and administer, or cause to be administered by the examiners, oaths. In
2.21case of any refusal to obey any subpoena issued under the commissioner's direction,
2.22the refusal may at once be reported to the district court of the district in which the bank
2.23or other financial institution is located, and this court shall enforce obedience to these
2.24subpoenas in the manner provided by law for enforcing obedience to subpoenas of the
2.25court. In all matters relating to official duties, the commissioner of commerce has the
2.26power possessed by courts of law to issue subpoenas and cause them to be served and
2.27enforced, and all officers, directors, trustees, and employees of state banks, savings banks,
2.28trust companies, savings associations, and other financial institutions within the state,
2.29and all persons having dealings with or knowledge of the affairs or methods of these
2.30institutions, shall afford reasonable facilities for these examinations, make returns and
2.31reports to the commissioner of commerce as the commissioner may require; attend and
2.32answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books,
2.33accounts, documents, and property as the commissioner may desire to inspect, and in all
2.34things aid the commissioner in the performance of duties.

2.35    Sec. 3. Minnesota Statutes 2006, section 46.05, is amended to read:
3.1    Every state bank, savings bank, trust company, savings association, debt
3.2management services provider, and other financial institutions shall be at all times under
3.3the supervision and subject to the control of the commissioner of commerce. If, and
3.4whenever in the performance of duties, the commissioner finds it necessary to make a
3.5special investigation of any financial institution under the commissioner's supervision,
3.6and other than a complete examination, the commissioner shall make a charge therefor to
3.7include only the necessary costs thereof. Such a fee shall be payable to the commissioner
3.8on the commissioner's making a request for payment.

3.9    Sec. 4. Minnesota Statutes 2006, section 46.131, subdivision 2, is amended to read:
3.10    Subd. 2. Assessment authority. Each bank, trust company, savings bank, savings
3.11association, regulated lender, industrial loan and thrift company, credit union, motor
3.12vehicle sales finance company, debt prorating agency management services provider and
3.13insurance premium finance company organized under the laws of this state or required
3.14to be administered by the commissioner of commerce shall pay into the state treasury its
3.15proportionate share of the cost of maintaining the Department of Commerce."
3.16Page 2, after line 5, insert:

3.17    "Sec. 6. Minnesota Statutes 2006, section 325N.01, is amended to read:
3.18325N.01 DEFINITIONS.
3.19    The definitions in paragraphs (a) to (h) apply to sections 325N.01 to 325N.09.
3.20    (a) "Foreclosure consultant" means any person who, directly or indirectly, makes
3.21any solicitation, representation, or offer to any owner to perform for compensation or
3.22who, for compensation, performs any service which the person in any manner represents
3.23will in any manner do any of the following:
3.24    (1) stop or postpone the foreclosure sale;
3.25    (2) obtain any forbearance from any beneficiary or mortgagee;
3.26    (3) assist the owner to exercise the right of reinstatement provided in section 580.30;
3.27    (4) obtain any extension of the period within which the owner may reinstate the
3.28owner's obligation;
3.29    (5) obtain any waiver of an acceleration clause contained in any promissory note or
3.30contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;
3.31    (6) assist the owner in foreclosure or loan default to obtain a loan or advance
3.32of funds;
3.33    (7) avoid or ameliorate the impairment of the owner's credit resulting from the
3.34recording of a notice of default or the conduct of a foreclosure sale; or
3.35    (8) save the owner's residence from foreclosure.
3.36    (b) A foreclosure consultant does not include any of the following:
4.1    (1) a person licensed to practice law in this state when the person renders service
4.2in the course of his or her practice as an attorney-at-law;
4.3    (2) a person licensed as a debt prorater under sections 332.12 to 332.29 management
4.4services provider under chapter 332A, when the person is acting as a debt prorater
4.5management services provider as defined in these sections that chapter;
4.6    (3) a person licensed as a real estate broker or salesperson under chapter 82 when the
4.7person engages in acts whose performance requires licensure under that chapter unless the
4.8person is engaged in offering services designed to, or purportedly designed to, enable the
4.9owner to retain possession of the residence in foreclosure;
4.10    (4) a person licensed as an accountant under chapter 326A when the person is acting
4.11in any capacity for which the person is licensed under those provisions;
4.12    (5) a person or the person's authorized agent acting under the express authority
4.13or written approval of the Department of Housing and Urban Development or other
4.14department or agency of the United States or this state to provide services;
4.15    (6) a person who holds or is owed an obligation secured by a lien on any residence
4.16in foreclosure when the person performs services in connection with this obligation or lien
4.17if the obligation or lien did not arise as the result of or as part of a proposed foreclosure
4.19    (7) any person or entity doing business under any law of this state, or of the United
4.20States relating to banks, trust companies, savings and loan associations, industrial loan and
4.21thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee
4.22which is a United States Department of Housing and Urban Development approved
4.23mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or
4.24employee of these persons or entities while engaged in the business of these persons
4.25or entities;
4.26    (8) a person licensed as a residential mortgage originator or servicer pursuant to
4.27chapter 58, when acting under the authority of that license or a foreclosure purchaser as
4.28defined in section 325N.10;
4.29    (9) a nonprofit agency or organization that offers counseling or advice to an owner
4.30of a home in foreclosure or loan default if they do not contract for services with for-profit
4.31lenders or foreclosure purchasers; and
4.32    (10) a judgment creditor of the owner, to the extent that the judgment creditor's claim
4.33accrued prior to the personal service of the foreclosure notice required by section 580.03,
4.34but excluding a person who purchased the claim after such personal service.
4.35    (c) "Foreclosure reconveyance" means a transaction involving:
5.1    (1) the transfer of title to real property by a foreclosed homeowner during a
5.2foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or
5.3by creation of a mortgage or other lien or encumbrance during the foreclosure process
5.4that allows the acquirer to obtain title to the property by redeeming the property as
5.5a junior lienholder; and
5.6    (2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest
5.7back to the foreclosed homeowner by the acquirer or a person acting in participation with
5.8the acquirer that allows the foreclosed homeowner to possess the real property following
5.9the completion of the foreclosure proceeding, which interest includes, but is not limited to,
5.10an interest in a contract for deed, purchase agreement, option to purchase, or lease.
5.11    (d) "Person" means any individual, partnership, corporation, limited liability
5.12company, association, or other group, however organized.
5.13    (e) "Service" means and includes, but is not limited to, any of the following:
5.14    (1) debt, budget, or financial counseling of any type;
5.15    (2) receiving money for the purpose of distributing it to creditors in payment or
5.16partial payment of any obligation secured by a lien on a residence in foreclosure;
5.17    (3) contacting creditors on behalf of an owner of a residence in foreclosure;
5.18    (4) arranging or attempting to arrange for an extension of the period within which
5.19the owner of a residence in foreclosure may cure the owner's default and reinstate his or
5.20her obligation pursuant to section 580.30;
5.21    (5) arranging or attempting to arrange for any delay or postponement of the time of
5.22sale of the residence in foreclosure;
5.23    (6) advising the filing of any document or assisting in any manner in the preparation
5.24of any document for filing with any bankruptcy court; or
5.25    (7) giving any advice, explanation, or instruction to an owner of a residence in
5.26foreclosure, which in any manner relates to the cure of a default in or the reinstatement
5.27of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of
5.28that obligation, or the postponement or avoidance of a sale of a residence in foreclosure,
5.29pursuant to a power of sale contained in any mortgage.
5.30    (f) "Residence in foreclosure" means residential real property consisting of one to
5.31four family dwelling units, one of which the owner occupies as his or her principal place
5.32of residence, and against which there is an outstanding notice of pendency of foreclosure,
5.33recorded pursuant to section 580.032, or against which a summons and complaint has
5.34been served under chapter 581.
5.35    (g) "Owner" means the record owner of the residential real property in foreclosure at
5.36the time the notice of pendency was recorded, or the summons and complaint served.
6.1    (h) "Contract" means any agreement, or any term in any agreement, between
6.2a foreclosure consultant and an owner for the rendition of any service as defined in
6.3paragraph (e)."
6.4Page 4, line 4, delete "prorating" and insert "management"
6.5Page 4, line 25, after "telephone" insert "number"
6.6Page 5, line 9, after "filed" insert "or otherwise commenced"
6.7Page 5, line 28, after "of" insert "the premium for"
6.8Page 6, line 3, after "office" insert a comma
6.9Page 6, line 10, delete "The applicant shall be the obligor."
6.10Page 6, line 13, delete "service" and insert "services" and after "provider" insert "to
6.11a debtor domiciled in this state"
6.12Page 6, line 15, delete "hereunder" and insert "under this chapter"
6.13Page 6, line 23, delete "pursuant to" and insert "under"
6.14Page 6, line 24, after "face" insert "amount"
6.15Page 6, line 25, delete "such" and insert "the"
6.16Page 7, line 6, before "trust" insert "the registrant's"
6.17Page 7, line 10, delete "section" and insert "chapter"
6.18Page 7, line 17, after "that" insert "the"
6.19Page 7, line 23, delete "pursuant" and insert "under"
6.20Page 7, line 24, delete "to"
6.21Page 8, line 14, delete "service" and insert "services"
6.22Page 8, line 26, delete "hereunder" and insert "under this chapter"
6.23Page 8, line 27, delete "service" and insert "services"
6.24Page 9, line 11, after "apply" insert "for,"
6.25Page 9, line 12, after "appoint" insert a comma
6.26Page 9, line 19, delete "material"
6.27Page 10, line 18, delete "creditor" and insert "creditors,"
6.28Page 11, line 1, after the first "or" insert "an"
6.29Page 11, line 23, delete "service" and insert "services"
6.30Page 12, line 1, delete "of" and insert "after"
6.31Page 12, line 8, delete "pursuant to" and insert "under"
6.32Page 12, line 13, delete "pursuant to" and insert "under"
6.33Page 12, line 19, after "prescribe" insert a comma
6.34Page 13, line 2, delete "service" and insert "services"
6.35Page 13, line 3, delete "provider" and insert "provided"
6.36Page 13, line 10, delete "pursuant to" and insert "under"
7.1Page 13, line 12, delete "Recurrent" and insert "Recurring" and delete "house"
7.2and insert "mortgage"
7.3Page 13, line 22, delete "theretofore" and insert "previously" and delete "pursuant
7.4to" and insert "under"
7.5Page 13, line 23, delete "it is the intention of" and after "debtor" insert "intends"
7.6Page 13, line 29, delete "pursuant to" and insert "under"
7.7Page 13, line 30, delete "of" and insert "after"
7.8Page 14, line 29, delete "service" and insert "services"
7.9Page 15, line 23, after "317A" insert "or under the similar laws of another state"
7.10Page 15, delete section 15
7.11Page 16, line 13, delete "service" and insert "services"
7.12Page 16, line 15, delete "service" and insert "services"
7.13Page 16, line 16, delete "VOID" and insert "RESCISSION"
7.14Page 16, line 18, delete "service" and insert "services"
7.15Page 16, line 19, delete "service" and insert "services"
7.16Page 16, line 28, delete "service" and insert "services"
7.17Page 16, line 29, after "liable" insert "under this section"
7.18Page 16, line 32, delete "service" and insert "services"
7.19Page 16, line 33, after "liable" insert "under this section"
7.20Page 17, line 8, after "action" insert "under this section"
7.21Page 17, line 15, delete "with"
7.22Page 17, delete lines 23 to 24
7.23Page 17, line 30, delete "hereunder"
7.24Page 18, delete lines 2 to 4 and insert:
7.25    "(a) $....... is appropriated for fiscal year 2008 from the general fund to the
7.26commissioner of commerce for costs associated with registration of debt management
7.27services providers, including the startup costs necessitated by this act.
7.28    (b) $....... is appropriated for fiscal year 2009 from the general fund to the
7.29commissioner of commerce for costs associated with registration of debt management
7.30services providers. This amount is added to the base for fiscal year 2010 and beyond."
7.31Page 18, after line 8, insert:

7.32    "Sec. 22. EFFECTIVE DATE.
7.33    Sections 1 to 19 and 21 are effective January 1, 2008. Section 20 is effective July
7.341, 2007."
7.35Amend the title accordingly