August 1999 

1999 Legislative Wrap-Up

Suggested links:

Website of the Minnesota State Legislature

Legislation and bill tracking (Minnesota)

In a surprise development that may have national implications, a "tri-partisan" government came to power in Minnesota in January this year after former professional wrestler and Reform Party candidate Jesse Ventura "shocked the world" by winning the general election for governor over two popular major party candidates. The election of Gov. Ventura marked the first time Minnesotans had elected a Reform Party candidate to statewide office. Gov. Ventura's victory overshadowed the Republicans attaining the majority in the Minnesota House of Representatives; the DFL retained control in the Senate.

The first half of the two-year legislative session began on January 5, 1999, and concluded its work at midnight on May 17, 1999. Of the 4,760 bills introduced this year, 250 were passed into law. Although Gov. Ventura set a one-time veto record, he also became the first governor in 17 years to have a veto overridden. The Legislature has adjourned until February 1, 2000.

All of the legislation proposed and approved as the Minnesota State Bar Association ("MSBA") agenda at the midyear meeting was passed (except for a bill from the Public Utilities Section which we introduced, but held over for consideration next session). In addition, the various MSBA sections and committees were actively involved in over two dozen other bills. The MSBA wishes to thank all Section and Committee members, Senate and House staff, and, of course, legislators for their support and assistance during the 1999 legislative session.

The following is written to identify laws of special interest to the legal profession. This description is merely a cross-section, rather than an exhaustive list of noteworthy bills. While this report quotes the cited legislation and, at times, House Research Summaries, verbatim, the reader is advised to read any bill of interest in its entirety.

This 163-page bill (H.F. 382/S.F. 343) is the product of the MSBA Real Property Section and includes numerous changes in real estate law.

Article 1 eliminates the need for the owner of registered property ("Torrens property") to surrender the owner's duplicate certificate of title in order to record documents affecting the title. (See particularly §508.38, providing that documents shall be returned after being filed/recorded; §508.40, providing that a copy of the certificate shall be provided to the owner, but need not be surrendered to file a voluntary instrument; §508.51, concerning voluntary instruments; §508.71, concerning corrections of registrar's clerical errors; §508.76, concerning misfiled documents, and various modifications to §40A.10 (agricultural preserves). Similar changes are proposed to chapter 508A, which governs certificates of possessory title.

Article 2 amends Minn. Stat. chapter 515B, the Minnesota Common Interest Ownership Act ("MCIOA") that governs condominium, townhouse, and cooperative housing associations. Changes including applying various provisions to condominiums that existed before chapter 515B took effect.

Article 3 makes technical changes in other statutes that refer to MCIOA. The changes include making terms consistent with chapter 515B terminology, and providing more specific cross-references.

Article 4 includes several miscellaneous changes, including:  (1) allowing reappointment of notaries within seven months before expiration of the term rather than reappointment within 30 days of expiration; and (2) increasing attorney fees in contract for deed defaults or contracts executed on or after August 1, 1999, to $250 if the default amount is under $1,000, or $500 if the amount in default is $1,000 or more.

Article 1 is effective January 1, 2000; Articles 2 and 3 are effective August 1, 1999; and Article 4 has various effective dates.

Chapter 14 (H.F. 74/S.F. 301) expands the health care directive form to authorize an individual's health care agent to decide whether to donate the individual's tissues and eyes upon death.

Effective August 1, 1999.

Chapter 23 (H.F. 56/S.F. 90) amends the statute of limitations for medical malpractice actions from the current two years to four years after the cause of action accrued. This new statute of limitations is codified at Minn. Stat. §541.076.

Effective August 1, 1999, and applies to actions commenced on or after that date.

Chapter 28 (H.F. 732/S.F. 99) provides that a court may order a defendant convicted of "failure to appear" to pay the costs incurred by the prosecuting authority or government agency.

Effective August 1, 1999, and applies to crimes committed on or after that date.

Chapter 30 (H.F. 475/S.F. 517) amends Minn. Stat. §465.76, to provide that a town may reimburse an officer or employee for any costs and reasonable attorneys fees incurred by the person to defend criminal charges brought against the person that arose out of the reasonable and lawful performance of duties for the town.

Effective April 2, 1999.

Lloyd W. Grooms, an attorney with the law firm of Winthrop & Weinstine, serves as principal lobbyist for the Minnesota State Bar Association.

Chapter 31 (H.F. 379/S.F. 381) makes numerous technical and clarifying changes related to mortgage registry and deed taxes.

Section 5 of the bill clarifies the determination of taxes on multistate mortgages. Section 5 provides when a multistate mortgage is intended to secure only a portion of a debt amount referred to in the mortgage, the mortgage may contain a statement that the enforcement of the mortgage in Minnesota is limited to a specified debt, and the tax shall be imposed based only on the amount so stated. All other multistate mortgages shall be taxed based on the value of the real property described in the mortgage and located in Minnesota, as a percentage of the value of all real property described in the mortgage.

Similarly, the real property that secures only a portion of a debt shall be handled in a similar fashion. The mortgage may contain a statement specifying the mortgage debt and this shall determine the amount of the tax. These provisions were further amended in the Tax Bill (Chapter 243) to clarify that accrued interest and advances are secured by the mortgage in addition to the portion of the debt.

Section 11 of the bill includes new definitions related to deed taxes; specifically, including the term "consideration." "Consideration" is defined to mean the total monetary value given in return for conveyance of real property. However, consideration does not include the reasonable lawful amounts of interest paid for the privilege of paying the purchase price in installments, and the fair market value of any items of intangible personal property that are conveyed by the taxable instrument. It also does not include any amount paid for personal property located on the real property being conveyed and transferred as part of the total consideration, except that the amount paid for the personal property located on the real property being conveyed must be included if the real property being conveyed is a one-, two-, or three-unit residential structure. When a conveyance is made pursuant to a contract for deed, the consideration applies to the real property reflected in the contract; except that when the conveyance is made by a person engaged in the business of land sales or construction of buildings or other improvements, or by an affiliated person, then the consideration is the amount paid for the land and the improvements. Section 16 provides that if an underpayment is assessable by the Commissioner of Revenue against a grantor and the grantor is a business entity no longer in existence, any person who, either individually or jointly with others, had control over, supervision of, or responsibility for making the statement of tax due or exemption from tax that was submitted to the county treasurer, can be assessed and held liable by the commissioner for the underpayment.

Effective for documents executed, recorded, or registered after June 30, 1999.

Chapter 32 (H.F. 183/S.F. 144) provides that a person who is 16 or 17 years old, who refuses to consent to admission to a chemical dependency treatment facility, may be admitted with the consent of a parent or legal guardian if an independent examination determines that there is reasonable evidence that the proposed patient is chemically dependent and suitable for treatment. The person conducting the examination must notify the patient and parent or guardian of the determination.

Effective August 1, 1999.

Chapter 37 (H.F. 1258/S.F. 487) makes permanent the summary marriage dissolution process begun in 1991, but which lapsed in 1997 when its original sunset was not repealed. The summary process is revived effective July 1, 1997.

Chapter 38 (H.F. 733/S.F. 117) provides that if a criminal offender wishes to challenge the amount of restitution ordered, the offender must make a written request for a hearing within 30 days of receiving written notice of the amount of the restitution requested or sentencing, whichever is later. Notice to the offender's attorney is deemed notice to the offender.

Effective August 1, 1999, and applies to crimes committed on or after that date.

Chapter 64 (H.F. 735/S.F. 495) expands the scope of the crime of adulteration to include acts capable of causing death, bodily harm, or illness and increases the penalties for certain acts of adulteration.

Effective August 1, 1999, and applies to crimes committed on or after that date.

Chapter 69 (H.F. 908/S.F. 465) permits county recorders to require minimum deposits based on the anticipated monthly charges of a depositor.

Effective August 1, 1999.

Chapter 72 (H.F. 197/S.F. 198) gives prosecutors the right to reply in rebuttal to the closing argument of the defense; and specifically provides that Rule 26.03, subdivision 11, of the Minnesota Rules of Criminal Procedure, is superseded to the extent it conflicts with the new act.

Effective August 1, 1999, and applies to crimes committed on or after that date.

Chapter 74 (H.F. 53/S.F. 129) creates a new chapter 518D titled "The Uniform Child Custody Jurisdiction and Enforcement Act," to replace the Uniform Child Custody Jurisdiction Act, Minn. Stat. chapter 518A.

Effective January 1, 2000. A motion for other relief made in a child custody proceeding, or to enforce a child custody determination which was commenced before the effective date, is governed by the law in effect at the time the motion or other request was made.

Chapter 76 (H.F. 868/S.F. 866) amends the theft law to specifically apply to certain situations involving the rental of personal property or equipment. A person may commit theft if the person leases or rents personal property and: (1) sells, conveys, or encumbers the property; (2) does not return the property; or (3) does not pay the lease or rental charges agreed upon in the written instrument. For the purposes of items 2 and 3, the value of the property must be $100 or more.

Chapter 76 further provides that not using a current name or place of employment in a rental agreement, or refusing to pay the rental contract charges within five days after a written demand that the property be returned, is evidence of intent.

Effective August 1, 1999, and applies to crimes committed on or after that date.

Chapter 79 (H.F. 1171/S.F. 98) grants prosecutors the discretion not to disclose a victim's or witness's birth date.

Additionally, no victim or witness may be compelled to state his or her birth date or telephone number in open court unless the court finds that the testimony would be relevant.

Effective August 1, 1999, and applies to crimes committed on or after that date.

Chapter 83 (H.F. 40/S.F. 25) allows a competent nursing facility resident; family member of a resident who is not competent; or legally appointed conservator, guardian, or health care agent to request and consent to use of a physical restraint in order to treat a resident's medical symptoms. Medical symptoms include a concern for the physical safety of the resident, and physical or psychological needs expressed by a resident. A resident's fear of falling may be the basis of a medical symptom. A written order from the attending physician that contains statements and determinations regarding medical symptoms is sufficient evidence of the medical necessity of the physical restraint.

Effective April 23, 1999.

Chapter 85 (H.F. 836/S.F. 833) is a 76-page bill incorporating various recommendations from the Business Law Section of the MSBA.

Article 1 contains miscellaneous amendments to the Minnesota Business Corporation Act ("MBCA"). In addition, Article 1 includes language amending the "business combination" provisions of §§302A.671 and 302A.675 of the MBCA, to require that a committee of the board of directors composed solely of "disinterested" directors must approve any decision to opt out of the provisions of the takeover statute or accept a takeover offer. Article 1 is effective April 23, 1999.

Article 2 includes numerous technical amendments to the Minnesota Limited Liability Company Act. Article 2 also makes two substantive changes, one relating to the duration of a limited liability company ("LLC"), and the other related to termination of member's membership interest in the LLC and the consequences of such a termination. Many of the technical amendments broaden and confirm the scope of subject matter that may be addressed in a Member Control Agreement. Article 2 is effective August 1, 1999, and, unless otherwise specified, applies to all limited liability companies in existence on or after that date.

Article 3 contains a number of miscellaneous amendments to the Minnesota Professional Firms Act (Chapter 319B), the 1976 Uniform Limited Partnership Act (Chapter 322A), and the Uniform Partnership Act of 1996 (Chapter 323A) to make changes to conform to the Revised Uniform Partnership Act, which was enacted in 1997. Article 3 is effective retroactive to January 1, 1999.

Chapter 87 (H.F. 872/S.F. 682) provides that an agreement in a building and construction contract by an owner, responsible party, or government entity to indemnify a contractor with respect to strict liability under environmental laws is enforceable.

Effective April 24, 1999, and applies to agreements entered into on or after that date.

Chapter 96 (H.F. 896/S.F. 854) prohibits cities, counties, and towns from terminating lawful non-conforming land uses by amortization; i.e., setting a time limit for the use to cease. There are several exceptions to this new prohibition. The prohibition does not apply to adult-only bookstores, theatres, or other similar adult-only businesses, and does not prohibit a municipality or county from enforcing an ordinance to prevent or abate a nuisance as defined in §561.01, or eliminate a use determined to be a public nuisance as defined in §617.81. In addition, the act does not apply to an ordinance that is the subject of an action commenced on or before January 1, 1999, to amortize a specific land use; and a city that is a party to an action commenced on or before January 1, 1999, to eliminate a land use, may enact and enforce an amortization ordinance to eliminate the subject use. The act also provides that the city of St. Louis Park may still enforce its previously adopted ordinance related to a ready-mix facility that triggered the bill.

Effective April 24, 1999.

Chapter 97 (H.F. 1178/S.F. 1253) enacts Minn. Stat. §504.38, regulating the taking of pre-lease deposits. Under Chapter 97, a pre-lease deposit may be accepted only if the landlord and tenant enter into a written agreement that includes:

1. the circumstances under which it will be returned; and
2. that the landlord is required to return the deposit within seven days if those circumstances occur.

In addition to other remedies, a landlord who violates this provision is liable to the payor for the deposit plus one-half the amount as a penalty.

Effective August 1, 1999.

Chapter 98 (H.F. 142/S.F. 1634) expands the definition of "subsequent controlled substance conviction" to include convictions subsequent to a stay of adjudication for a controlled substance crime.

Effective August 1, 1999, and applies to dispositions entered under Minn. Stat. §152.18, subdivision 1, and crimes committed on or after that date.

Chapter 103 (H.F. 661/S.F. 832) makes a number of changes applicable to small company offering registrations. In addition, Chapter 103 provides that, barring a stop order or other proceeding, a registration statement automatically becomes effective 20 business days after its filing or last amendment.

Effective April 28, 1999, and applies to securities offered or sold on or after that date.

Chapter 104 (H.F. 1035/S.F. 1017) requires the summons in a marriage dissolution proceeding to include specific language that the parties (other than domestic abuse victims) are encouraged to attempt alternative dispute resolution. Chapter 104 also adds a new §543.22, which provides that when a civil action is commenced against a party, the summons must include a statement that provides the opposing party with information about the alternative dispute resolution process as set forth in the Minnesota General Rules of Practice.

Effective August 1, 1999.

Chapter 105 (H.F. 1052/S.F. 451) amends Minn. Stat. §§336.9-203, 336.9-401, and 336.9-402, regulating security interests in agricultural crops to: (1) remove the requirement that the security interest contain a description of the real estate where the crops are grown; (2) provide that the proper place to file in order to perfect a security interest covering crops is with the Uniform Commercial Code division of the recorder's office in the county of the debtor's residence or with the secretary of state if the debtor is not a state resident; and (3) remove the requirement that the financing statement contain a description of the land concerned and the crop years covered by the financing statement.

Effective August 1, 1999, and applies to agreements signed and statements filed on or after that date.

Chapter 106 (H.F. 462/S.F. 303) amends Minn. Stat. §169.685, subdivision 4, to permit the introduction of evidence regarding the use of a seat belt or child passenger restraint system in an action for damages arising out of an incident involving a defectively designed, manufactured, installed, or operating seat belt or child passenger restraint system.

Although Gov. Ventura vetoed the bill, the Legislature overrode the veto, marking the first time in 17 years a governor's veto had been overridden.

Effective May 18, 1999, and applies to actions pending on or started on or after that date.

Chapter 117 (H.F. 1169/S.F. 496) allows a district court to extend, for 30 days, a search warrant on a financial institution for financial records.

Effective August 1, 1999, and applies to warrants issued on or after that date.

Chapter 122 (H.F. 863/S.F. 834) was sponsored by the Children and the Law Section of the MSBA.

Section 1 clarifies that the date that the commissioner of health receives a putative fathers registration is the date the registration is post-marked or the date it was delivered by means other than mail to the address on the registration form. Section 2 clarifies that the data relating to a request for a search is private or non-public data. Section 2 also authorizes an attorney to release data in the registry to an attorney who has signed an affidavit attesting that the attorney represents the birth mother or the prospective adoptive parents. Section 3 provides that a registration is timely filed if it is post-marked, or delivered by other means, no later than 30 days after the child is born. Section 4 provides that the notice and service on the father's adoptive registry notice to the registered putative father must provide notice of the jurisdiction in which the adoption petition will be filed. Section 5 provides that the response of intent to claim parental rights must be filed in the county in which the adoption petition was filed. Section 6 directs the Office of the State Court Administrator to develop a form notice to register putative fathers. Section 7 contains numerous provisions regarding communication or contact agreements; adding foster parents as parties who may enter into an agreement regarding communication or contact; and redefining "birth relative" to include relatives by adoption. Also included is an amendment to provide that a birth parent must approve, in writing, of an agreement between adoptive parents and any other birth relative, unless a child protection action has been filed against the parent, and further provides that a court mail a certified copy of the order to the parties. Section 8 requires that the post-adoption reporting requirements of a foreign country in which the child was adopted, applicable at the time of the child's adoption, must be given both right and credit by Minnesota, and apply to the adoptive placement of the child.

Effective August 1, 1999.

Chapter 124 (H.F. 92/S.F. 397) amends Minn. Stat.§169.123, to allow the court to order additional prehearing discovery beyond that currently listed in the statute, and deletes the requirement that a petition state the facts underlying each asserted claim.

Effective May 7, 1999.

Chapter 125 (H.F. 359/S.F. 684) allows the Public Utilities Commission ("PUC") to make certain changes in its procedural and administrative practices. First, certain filings may be deemed approved without a hearing after 60 days, unless the PUC, a commissioner, or other person requests that the filing be set aside for commission action.

Second, the PUC is allowed to create ad hoc committees of at least one commissioner, and delegate its functions to a subcommittee. Subcommittee decisions are deemed to be PUC decisions, unless an objection is filed within ten days of the PUC's receipt of the subcommittee's decision. If a party requests that a proceeding not be delegated to a subcommittee or objects to a subcommittee decision, the matter must be referred to the full PUC.

Third, the PUC may designate a lead commissioner for a docket, type of docket, or particular subject area. The lead commissioner is authorized to hold hearings and receive oral and written comments to develop an evidentiary record for the PUC. However, any filings of fact, conclusions of law, or recommendations of a lead commissioner are advisory only.

Gov. Ventura did not sign the bill stating that designating lead commissioners could lead to specialization that might decrease the checks and balances of the PUC. The governor also stated that if he believes the act is not successful, he will reconsider it before its year 2002 sunset.

Effective May 7, 1999, with a sunset to expire June 30, 2002.

Chapter 129 (H.F. 1905/S.F. 1993) authorizes the governor to veto all or a portion of a rule by publishing notice of the veto in the State Register within 14 days of receiving a copy of the rule from the secretary of state or an agency. This authority applies only to the extent that the agency itself would have authority, through rulemaking, to take such action. If the governor vetoes a rule or a portion, the governor shall notify the chairs of the legislative committees having jurisdiction over the rule-making agency.

Effective July 1, 1999, and applies to rules adopted on or after that date, with a sunset of June 30, 2001.

Chapter 133 (H.F. 1183/S.F. 1060) makes numerous changes to the various statutes related to the secretary of state, including: (1) requiring a new fee and filing when an original fee is dishonored; (2) requiring only one copy of service of process to be filed with the secretary of state for service on a foreign corporation; (3) deleting the requirement that the secretary of state receive a sheriff's service of notice of foreclosure for out-of-state interests; (4) amending the Revised Uniform Partnership Act to require that the name of a limited liability partnership must be distinguishable on the record from other business organization names; (5) requiring a trademark applicant to obtain the necessary affidavits; and (6) permitting the secretary of state to allow private parties more complete electronic access to certain records.

Effective August 1, 1999.

Chapter 134 (H.F. 684/S.F. 521) requires no-fault automobile insurance medical expense benefits to include sign interpreting and language translation services related to the receipt of medical, surgical, x-ray, optical, dental, chiropractic, hospital, extended care, nursing and rehabilitative services.

Effective May 8, 1999.

Chapter 136 (H.F. 1359/S.F. 1023) makes numerous changes regarding restitution funds, including redefining economic loss to include moving-related expenses, up to $1,000 if the move is necessary due to a reasonable fear related to the crime of the claim. The act also extends the time for filing claims to three years and creates an exception for all child abuse cases.

Effective August 1, 1999.

Chapter 137 (H.F. 1564/S.F. 1715) amends various statutes related to the Department of Commerce's enforcement authority, including those related to residential building contractors and roofers, collection agencies, receivers, cooperatives, and real estate appraisers. The act raises the maximum civil penalty the commissioner may impose from $2,000 to $10,000 per violation and allows for the commissioner to summarily suspend a license pending a show cause hearing to be held within 30 days. Separately, the bill amends §45.028 regarding service of process on the commissioner by certified mail.

Various effective dates.

Chapter 139 (H.F. 1310/S.F. 184) is a 204-page bill that recodifies, clarifies, and relocates provisions of the Juvenile Court Act by providing separate areas for dealing with delinquency and child protection under Chapters 260B and 260C; respectively. The general provisions of the Juvenile Court Act remain in Chapter 260.

Effective August 1, 1999.

Chapter 142 (H.F. 263/S.F. 411) creates a new criminal §, 609.895, imposing criminal penalties for manufacturing, producing, distributing, offering to sell, selling, or possessing with intent to sell or distribute any counterfeited item or service. Chapter 142 recognizes a Minnesota or federal certificate of registration as prima facie evidence of the registrant's rights of ownership and use.

Effective August 1, 1999, and applies to violations occurring on or after that date.

Chapter 143 revises the process for action for the payment or collection of delinquent taxes to provide that the action may be commenced by the commissioner of revenue in the same manner as any other civil action, and the commissioner may serve the summons and complaint by certified mail to the taxpayer's last known address.

Effective May 12, 1999.

Chapter 150 (H.F. 1613/S.F. 1471) proposes a new section, 504.301, that provides that a landlord or the landlord's agent may not charge an applicant a screening fee when the landlord knows or should have known that no rental unit is available at the time or will be available within a reasonable future time.

A landlord must disclose on the application form, or orally, the name, address, and telephone number of the tenant-screening service the owner will use, unless the owner does not use a tenant-screening service.

A landlord who violates this new provision is liable to the applicant for the application fee, plus a civil penalty of up to $100, civil court filing costs, and reasonable attorneys fees incurred to enforce this remedy.

Chapter 150 also repeals §504.30, subdivision 5, regarding an owner's use of a tenant-screening report.

Effective August 1, 1999.

Chapter 151 (H.F. 1175/S.F. 1330) makes numerous changes to various statutes regulating financial institutions related to application and filing fees, part-time banking locations; reverse stock splits; private mortgage insurance; residential mortgage originators; grain forward sale contracts; credit unions; and motor vehicle retail installment contract and lease agreements.

Various effective dates.

Chapter 158 (H.F. 1175/S.F. 1330) modifies and makes permanent the environmental improvement pilot project; i.e., the state environmental audit program. Chapter 158 modifies the qualifications for participating in the program; the exceptions to when the state may bring an enforcement action; and the provisions regarding access to documents and information.

Effective August 1, 1999.

Chapter 160 (H.F. 1008/S.F. 1047) provides that Roth IRAs shall be treated like other retirement accounts as to creditors.

Effective May 14, 1999.

Chapter 164 (H.F. 1112/S.F. 1180) extends the juvenile court's jurisdiction over habitual truants to their 18th birthday.

Effective May 14, 1999.

Chapter 170 (H.F. 587/S.F. 84) enacts a new law, §514.99, to prohibit the filing or recording of a nonconsensual common law lien, which is defined as a lien that: (1) is not provided for by state or federal statute; (2) is not consented to by the owner of the property affected; and (3) is not a court-imposed equitable or constructive lien. Under Chapter 170, no person has a duty to accept for filing or recording a nonconsensual common law lien except under ststed conditions, nor is any hearing officer, office, or government entity liable for accepting or rejecting for filing or recording such a lien.

Effective August 1, 1999, with a sunset of August 1, 2002.

Chapter 171 (H.F. 989/S.F. 1094) incorporates numerous amendments proposed by the Probate and Trust Law Section of the MSBA. Section 1 defines intestate estate to be only that part of the decedent's estate not covered by the homestead, exempt property and maintenance allowances and not disposed of by will. Section 2 amends the current simultaneous death act to provide that a beneficiary of a revocable trust, devisee, or an appointee under a power of appointment taking effect at date must survive the decedent by 120 hours to take an interest. This section applies only to persons who die on or after August 1, 1999.

Section 3 provides that a decedent may waive the decedent's right to recover estate tax attributed to inclusion in the decedent's gross estate of the qualified terminable interest or because of the decedent's retained interest in the property, but requires a specific indication in the will of the intent to waive those rights under Minn. Stat. §524.3-916(b).

Section 4 will permit a person to nominate a guardian or conservator for one's self not only by a written document witnessed by two witnesses but also by a written document signed and acknowledged before a notary. Section 5 directs the revisor to make certain technical and conforming changes in Chapter 48 (banks); specifically, replacing "executor" and "administrator" with "personal representative" and adding the word "conservator" where the word "guardian" appears (except where guardian is followed by the words "of a minor").

Effective August 1, 1999.

Chapter 177 (H.F. 837/S.F. 1205) makes numerous changes to a multitude of insurance-related statutes, including changes related to solvency regulations; mutual insurance companies' reinsurance; health insurance; long-term care insurance; motorcycle insurance; homeowner's insurance; fire insurance; accident and health insurance; and workers compensation self-insurance.

Various effective dates.

Chapter 183 (H.F. 805/S.F. 556) limits a municipal power agency's liability for injuries on land which the agency owns and is used for recreational trail purposes, and other agency land which is within 300 feet, if the entry onto such land was from land that is dedicated for recreational purposes or recreational trail use.

Effective August 1, 1999.

In 1998, the Minnesota Supreme Court held, in the case of Scherger v. Northern Natural Gas Company, 575 N.W.2d 578 (Minn. 1998), that Minn. Stat. §300.045, regarding blanket utility easements did not apply to easements acquired before 1973. Chapter 184 (H.F. 160/S.F. 233) was sponsored by the Real Property Section of the MSBA to clarify that Minn. Stat. §300.045, applies to all easements; whenever created or acquired.

Chapter 184 included a number of other amendments regarding the description and release of utility easements. For a public service corporation to meet the requirements of a definite and specific description of an easement, it must now also include the width of the easement and each change of course as the easement crosses the property. Also, the definite and specific description must be the minimum width necessary for the safe conduct of the business of the public service corporation with respect to the language of the original easement.

Effective May 22, 1999, and applies retroactively to all easements, whenever created, except it does not apply to litigation pending on May 22, 1999.

Chapter 184 also includes an amendment to clarify that the deficiency judgment provisions under Minn. Stat. §582.30 regarding agricultural property, do not apply to mortgages entered into or amended after May 22, 1999, if the mortgaged property is used in agricultural production only by a tenant who is not the mortgagor.

Responding to the 1998 Minnesota Supreme Court case, Ali Haglighi vs. Russian American Broadcasting Co., 577 N.W.2d 927, the Conflict Management and Dispute Resolution Section of the MSBA sponsored Chapter 190 (H.F. 1122/S.F. 1093), which amends the Minnesota Mediation Act to provide that a mediated settlement agreement will be binding if the parties are otherwise advised of the conditions now required to be expressly included in the settlement agreement.

Effective August 1, 1999.

Chapter 193 (H.F. 879/S.F. 1636) allows a local government to petition for the amendment or repeal of a state rule if it can demonstrate that since the rule was adopted there is either: (1)  significant new evidence relating to need for or reasonableness of the rule, or (2) a less costly or intrusive method of achieving the purpose of the rule has become available. The agency has 30 days to respond stating that it will either amend or repeal the rule within 90 days, or request the Office of Administrative Hearings ("OAH") to review the petition.

Upon a finding that the petition meets the statutory requirements, and that the rule is not required by court order or federal law, or required to maintain authority to administer a federal program, an administrative law judge ("ALJ") shall hold a public hearing and issue a decision within 120 days of receipt of the petition by the OAH. At the hearing, the agency must make an affirmative showing establishing the continued need for and reasonableness of the rule. If the ALJ determines that the agency has not made this showing, the rule ceases to have the force and effect of the law 90 days after the ALJ's decision.

Effective August 1, 1999, with a sunset of July 31, 2001.

Chapter 194 (H.F. 879/S.F. 1636) repeals the enhanced gross misdemeanor penalties for DWI crimes and reclassifies these as gross misdemeanors. In addition, Chapter 194 requires a court to sentence an offender to consecutive sentences if the offender has five or more convictions and/or license revocations, separate or combined, and the current violation involves multiple offenses.

Effective May 25, 1999, and applies to crimes committed on or after that date. However, violations occurring before that date are considered prior convictions or license revocations for purposes of the act.

In Holmberg v. Holmberg, 588 N.W.2d 720 (Minn. 1999), the Minnesota Supreme Court declared the administrative child support hearing process unconstitutional. Chapter 196 (H.F. 510/S.F. 23) repeals Minn. Stat. §§518.5511 and 518.5512, and creates a child support magistrate system.

Effective July 1, 1999.

Chapter 199 (H.F. 2425/S.F. 2232) repeals Chapter 504A and recodifies landlord and tenant law by combining chapters 504 and 506 in a new chapter 504B.

Effective July 1, 1999.

Chapter 203 (H.F. 595/S.F. 365) amends various provisions regarding petroleum storage tanks, including identification requirements and petroleum tank release cleanup program reimbursements.

Effective May 25, 1999; except the provisions regarding storage tank identification are effective June 1, 2000.

Chapter 209 (H.F. 743/S.F. 171) was enacted in response to the practice of mortgage flipping which occurs when a residential property that was recently sold, is quickly resold at an inflated price, usually based on a fraudulent appraisal. Chapter 209 makes it a gross misdemeanor for a real estate appraiser to engage in fraud or misrepresentation, or unlicensed activities. Chapter 209 also appropriates $100,000 from the Real Estate Education, Research, and Recovery Fund to the Department of Commerce for an educational campaign aimed at stopping mortgage flipping and targeted to the communities hardest hit by the practice. The Department of Commerce is further directed to supplement the program by soliciting contributions from trade organizations, banks, mortgage companies, and foundations.

Effective May 25, 1999.

Structured settlements allow insurance companies to compensate victims through a periodic payment plan, rather than a lump sum distribution. Chapter 212 (H.F. 478/S.F. 148) provides that no transfer of structured settlement rights is effective unless a court or responsible administrative authority has authorized the transfer based on written findings of a set of specific statutory criteria. Minnesota courts have nonexclusive jurisdiction over a proposed transfer of a structured settlement.

Chapter 212 also requires that in negotiating structured settlements, the settlement obligor shall disclose, in writing, statutory-specific information regarding the financial terms and implications of the terms of the structured settlement.

In addition, Chapter 212 provides that its provisions cannot be waived.

Effective August 1, 1999, and applies to structured settlements entered into on or after that date, and to transfers under transfer agreements entered into on or after that date.

Chapter 214 (H.F. 2380/S.F. 2235) includes a provision transferring the farmer-lender mediation program to the Minnesota Extension Service, and extending the sunset of the Farmer-Lender Mediation Act to July 1, 2001.

Chapter 215 (H.F. 346/S.F. 278) enacts Minn. Stat. §486.10, to require disclosure of contracting arrangements for freelance court-reporting services. Such an arrangement must be disclosed in writing, in the notice of taking deposition or notice of legal proceeding at which the court-reporting services are being provided, and orally by the court reporter on the record at the commencement of the legal proceeding.

Upon learning of a violation of the disclosure requirements, the court or presiding officer may declare the record void and order the legal proceeding be reconducted. Parties who violate the requirements are jointly and severally liable for the costs associated with reconducting the legal proceeding and preparing the new record.

Effective August 1, 1999.

Chapter 216 (H.F. 2404/S.F. 2221) appropriates money for the judicial branch and clarifies and expands certain criminal and civil provisions and penalties for, among other things, increasing the number of judges; providing procedures for integrated criminal justice information systems; expanding the categories of offenders that must provide a biological specimen for DNA testing; expanding postconviction relief for certain offenders; expanding the housing and court calendar program; creating a program to license qualified court interpreters; increasing the state's fiscal responsibility for certain persons prior to civil commitment; establishing requirements relating to out-of-home placements of juveniles; providing for state funding of certain programs and personnel; providing for state funding of court administration costs in specified judicial districts; and establishing collective bargaining provisions for court employees and public defenders.

Thirteen new judgeships are created: one judge each in the Seventh, Ninth, and Tenth judicial districts beginning July 1, 1999; two judges in the First Judicial District and one judge in the Tenth Judicial District beginning January 1, 2000; one judge each in the Seventh, Ninth, and Tenth judicial districts beginning on July 1, 2000, and one judge in the First and Tenth judicial districts and two judges in the Fourth Judicial District beginning January 1, 2001.

In addition, Chapter 216 also includes a provision that provides that a person convicted of a crime may make a motion for the performance of fingerprint or forensic DNA testing to demonstrate the person's actual innocence if: (1) the testing is to be performed on evidence secured in relation to the trial which resulted in the conviction; and (2) the evidence was not subject to the testing because either the technology for the testing was not available at the time of the trial or the testing was not available as evidence at the time of the trial. The motion shall be filed before the district court that entered the judgement of conviction. Reasonable notice of the motion shall be served on the prosecuting attorney who represented the state at trial.

Various effective dates.

Chapter 218 (H.F. 624/S.F. 441) modifies various criminal penalties regarding bad checks and credit card fraud. Chapter 218 also permits prosecutors to establish a pretrial diversion program for bad check writers.

Effective August 1, 1999, with the penalties provisions applied to crimes committed on or after that date.

Chapter 219 (H.F. 817/S.F. 346) creates a presumption that it is in the best interests of a child for the court to grant temporary custody to a relative if the relative has permanent custody of a sibling of the child and:  (1) the child is currently residing with the relative and the parent has had no regular contact, or has refused or neglected to take parental responsibility such as providing food, clothing, shelter, health care, education, or other necessary care; or (2) the application for custody alleges an immediate and present danger to the child's physical safety in the parent's home.

Chapter 219 also provides that a relative seeking to remove a child from the home of the parent may apply for an ex parte temporary order for custody.

Effective August 1, 1999.

Chapter 224 (H.F. 358/S.F. 685) includes two provisions regarding telecommunications. The first deregulates, for the most part, coin-operated or pay telephones service. However, the PUC still retains authority to protect the public interest, and the new provision does not change the authority of other state or local government entities to regulate aspects of coin-operated or pay telephone ownership, location, or operation to the extent that it did so prior to act.

The second part of the act authorizes the PUC to assess administrative penalties for anticompetitive activities by telecommunication providers. The act repeals the sunset on certain statutory sections regarding competition, but, at the same time, provides that the new penalty sections expire on December 31, 2004.

Effective May 26, 1999, but does not apply to dockets pending on that date.

Chapter 225 (H.F. 2016/S.F. 1831) makes miscellaneous changes to certain DWI and general forfeiture provisions.

Effective August 1, 1999, and applies to forfeitures initiated on or after that date.

Chapter 227 (H.F. 2058/S.F. 653) makes numerous clarifications and modifications relating to government data practices.

Various effective dates.

Chapter 229 (H.F. 1195/S.F. 2029) provides that a court may order expungement of an eviction case court file, but only upon motion of the defendant and a court finding that: 1) the plaintiff's case is sufficiently without basis in fact or law, which may include lack of jurisdiction, and 2) that the expungement is clearly in the interests of justice, and those interests outweigh the public interest in knowing about the record. If a tenant-screening service knows that a file has been expunged, the tenant-screening service shall delete any reference to that file in any data maintained or disseminated by the screening service.

Chapter 229 also strikes the current provision that a tenant screening service shall not provide tenant reports containing information on unlawful detainer actions in the Second and Fourth judicial districts, unless the tenant report accurately records the outcome of the proceeding or other disposition of the unlawful detainer action such as settlement, entry of a judgment, default, or dismissal of the action.

Effective May 26, 1999.

Chapter 230 (H.F. 1551/S.F. 1762) includes a provision which repeals Minn. Stat. §169.974, subdivision 6, which provided that evidence of helmet use was admissible on the question of damages for head injuries.

Chapter 234 (H.F. 2337/S.F. 1262) creates an affirmative defense to claims based on Year 2000 ("Y2K") failures. Specifically, a person has an affirmative defense against a claim of default, failure to pay, breach, omission, or other violation if the person establishes the act or omission was caused by a Y2K problem associated with an electronic device not owned, controlled, or operated by the person and, but for the Y2K problem, the person would have been able to satisfy the person's obligation. The defense does not impair, discharge, satisfy, or affect the underlying obligation.

In addition, a consumer can dispute negative credit information resulting from a Y2K problem and, upon a consumer's request, a credit-reporting agency shall indicate in the credit report that the consumer reported that the negative item resulted from a Y2K problem.

Effective May 26, 1999, and applies to actions occurring on or after that date, but with a sunset of July 1, 2000.

Chapter 235 (H.F. 1621/S.F. 1734) clarifies that parties must appeal to the Court of Appeals, pursuant to §§14.63 to 14.69, a final decision of the MPCA or the MPCA commissioner relating to: (1) issuance, amendment, or denial of a permit, license, or certification; (2) granting or denial of a variance; (3) issuance of an administrative order, except an administrative penalty order; or (4) denial of a contested case hearing related to the previous matters.

Effective August 1, 1999.

Chapter 243 (H.F. 2420/S.F. 1276) is significant not only in size, being 329 pages, but more importantly, is historic in substance. The bill includes a $1.25 billion sales tax rebate for 1999, and a $1.3 billion permanent income tax cut that reduces the respective income tax class rates to 5.5%, 7.25% and 8.0%; as well as reducing the Alternative Minimum Tax to 6.5%. The bill also eliminates the marriage penalty. Not only does the bill provide for a rebate in 1999, it also includes a provision for automatic rebates for portions of future surpluses.

In addition, the bill makes property tax cuts, including reducing the property tax rate for commercial and industrial property, with the bottom tier going from 2.5 to 2.4 and the top tier from 3.5 to 3.4, and a reduction from 10% to 8.5% on the limits on increases in the market-value threshold for residential, agricultural, and seasonal-recreational property.

Also included in the Sales & Use Tax Article is a provision that exempts from the sales tax, television commercials and tangible goods used or consumed in the pre-production, production, and post-production of television commercials (not including machinery and equipment, or fuels used in space heating or lighting). This provision was supported by the MSBA Arts and Entertainment Section.

Also noteworthy are the changes in the definition of business income and the corporate income tax three-factor apportionment formula, as well as a modification regarding the agricultural homestead treatment for family farm corporations and partnerships.

Apart from the traditional articles on income and franchise taxes; sales and use taxes; and property taxes, the Omnibus Tax Bill includes other separate articles, including ones on tax increment financing, state funding of district courts, business subsidies, tax-forfeiture and delinquency procedures.

Chapter 244 (H.F. 112/S.F. 333) enacts Minn. Stat. §609.527, which makes it unlawful for any person to transfer, possess, or use an identity other than their own with the intent to commit, aid, or abet any felony or non-felony theft or fraud-related activity; and provides penalties, forfeiture, and restitution sanctions.

Effective August 1, 1999, and applies to crimes committed on or after that date.

Chapter 245 (H.F. 2412/S.F. 2225) is a 630-page bill making significant changes to the state's health and welfare laws.

Article 7, Section 5, subdivision 3 amends Minn. Stat. §257.66, subdivision 3, to allow a court to include a mother's lost wages due to medical necessity as a reasonable expense of the mother's pregnancy and confinement. This provision was supported by the Family Law Section of the MSBA.

Effective August 1, 1999.

Chapter 250 (H.F. 878/S.F. 1464) appropriates money for the general legislative and administrative expenses of state government. Article 2 in Chapter 250 addresses the Y2K problem. This article provides trade associations, state agencies, and local government units with immunity from damages resulting from the collection, publication, or dissemination of Y2K solution information to like entities. However, the immunity does not apply if the party knew, in fact, that the Y2K information provided was materially false.

Article 2 is effective May 26, 1999, but the immunity protection does not affect or apply to any lawsuit pending on that date.

Chapter 250 also amends the provisions related to the license conditions and acceptance of digital signatures. These changes are effective May 26, 1999.