August 2000 

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2000 Legislative Wrap-Up

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

Chapter 255 (H.F. 2067/S.F. 2071) Extended Jurisdiction Juvenile Offenders
Provides that if a court finds that reasons exist to revoke a stay of execution of sentence, no credit shall be given for time served in juvenile facility custody prior to a summary hearing.

Chapter 264(H.F. 3232/S.F. 2692) Business Corporations and Limited Liability Companies
Amends Minnesota Chapters 302A and 322B relating to corporations and limited liability companies.

Section 1 eliminates any ambiguity that could result from the interaction of Minnesota law with the federal securities laws on shareholder-proposed amendments to articles.

Section 2 proposes amendments consistent with Section 1 relative to shareholder-proposed amendments to bylaws.

Section 3 eliminates a potential ambiguity in the present statute by clarifying that a director's disclosure of a conflict of interest must be made to all shareholders, including those holding only non-voting shares, even if the approval being sought is solely that of the holders of voting shares.

Section 4 provides that shares issued in consideration of future services are deemed fully paid and nonassessable when the corporation authorizes the issuance of the shares, thereby correcting an inadvertent omission from the 1999 amendments.

Section 5 proposes that the terms of rights to purchase shares may be fixed not only by the board of directors, but also by an officer pursuant to authority delegated by the board.

Section 6 proposes that shareholders of an acquired corporation be entitled to exercise dissenters' rights only with respect to shares they are entitled to vote on the plan of exchange or shares that will be exchanged under the plan of exchange.

Section 7 grants dissenters' right to the shareholders of the "surviving" acquired corporation in a reverse triangle merger.

Section 8 clarifies that if a determination of eligibility for indemnification is to be made by shareholders, the required shareholder vote is governed by Section 302A.437, consistent with other clarifying amendments made in recent years.

Section 9 removes an ambiguity by providing that shareholders will not be entitled to a class vote in an exchange in circumstances where no class vote would be required for a cash merger.

Sections 10 through 13 make conforming amendments to Chapter 322B, the Minnesota Limited Liability Company Act.

Sponsored by the MSBA Business Law Section.
Effective Date: August 1, 2000.

Chapter 267 (H.F. 3236/S.F. 3236) Certified Copy of Birth or Death Certificate
Modifies the provisions for issuing certified copies of vital records. Chapter 267 specifies that the state or a local registrar may issue a statement of "no record found" for a birth or death certificate. The act further provides that an individual may complete an attestation (which need not be notarized), rather than an affidavit, to obtain a vital record.

Also provides that a grandparent or grandchild, the party responsible for filing the birth or death certificate, or an entity who can demonstrate that a certified copy of a birth or death certificate is necessary to determine or protect a personal or property right, may obtain a certified copy of a birth or death certificate or a statement of no record found.
Effective Date: August 1, 2000.

Chapter 268 (H.F. 979/S.F. 2059) Apportionment of Utility Payments Among Tenants
Provides that landlords may apportion utility payments among residential units and either include utility costs in the rent for a unit or bill for utility charges separate from rent. This section is effective August 1, 2000; except that it is retroactive to August 1, 1995, for leases which as of March 24, 2000, already included a provision that a tenant will pay for utility charges separately from the rent, provided no judicial or administrative court has rendered a decision pertaining to that lease provision.

If the landlord of a single-metered residential building bills for utility charges separate from the rent, certain conditions regarding notice and apportionment must be met.

In addition, the lease must contain a provision that, upon a tenant's request, a landlord must provide a copy of the actual utility bill for the building along with each apportioned utility bill and upon a tenant's request, a landlord must also provide certain past copies of actual utility bills. A tenant with a lease term of one year or more may opt to pay utility bills under an annualized budget plan.

By September 30 of each year, a landlord of a single-metered residential building who bills utility charges separate from rent shall inform tenants in writing of the possible availability of energy assistance.
These provisions regarding single-metered residential buildings are effective August 1, 2000, and apply to all leases entered into, renewed, or modified after August 1, 2000, which contain a provision that the tenant will be billed for utility costs separately from rent.

Chapter 275 (H.F. 2873/S.F. 2516) County Recorder Instrument Processing
Provides that in a county in which the county recorder has been combined with another county office (e.g., Anoka County), the 30-day period for recording documents begins when the tax certifications are made, but in no event shall the time period for recording exceed 60 days after receipt of the document by the county recorder.

These new provisions are specifically applied to Anoka County effective upon the county's compliance with the approval and certification requirements for special laws.

Chapter 282 (H.F. 3132/S.F. 2890) Interest Rates on Security Deposits
Delays the increase in the interest rates on rental housing security deposits until May 1, 2001.
Effective Date: August 1, 2000.

Chapter 297 (S.F. 2691/H.F. 3281) State Building Code -- Energy Portions
Transfers authority to develop the energy portion of the state building code from the commissioner of the Department of Public Service to the commissioner of the Department of Administration.
Effective Date: July 1, 2000.

Chapter 304 (H.F. 2675/S.F. 2569) Vicarious Liability Insurance Coverage for Punitive and Exemplary Damages Authorized
Authorizes insurance coverage for vicarious liability for punitive and exemplary damages. Regulates terms for fraternal benefit society board members.
Effective Date: April 1, 2000.

Chapter 311 (H.F. 1590/S.F. 1952) "Katie Poirier": Sex Offender and Criminal Justice Information Technology
A compendium of changes related to sex offender registration and criminal justice information and technology. Chapter 311 makes numerous changes to the predatory offender registration and county notification laws to comply with the federal Jacob Wetterling Act, including lengthening the registration period for certain offenders, requiring additional offenders to register, requiring that additional information be reported, authorizing disclosure of information about offenders, and increasing the criminal penalty for predatory offenders who fail to comply with the law and imposing a mandatory minimum prison sentence on those offenders. Also makes certain information about offenders available to law enforcement.

The chapter also places restrictions on persons with felony convictions who are seeking name changes, clarifies that harassment crimes prohibit harassment by electronic means, and modifies the expungement law.
Chapter 311 expands the criminal definition of solicitation of a child to engage in sexual conduct; authorizes the prosecution of certain sex offenses in the jurisdiction where they originate; eliminates the statute of limitations for certain offenses, including crimes that result in death, kidnapping, and criminal sexual conduct based on DNA evidence; and increases the presumptive sentence for first-degree criminal sexual conduct.

Chapter 311 also changes the membership of the criminal and juvenile justice information policy group and authorizes the purchase and distribution of criminal justice technology infrastructure improvements.
Effective Date: Various dates.

Chapter 316 S.F. 2634/H.F. 3107) Civil Commitment Provisions -- Persons with Mental Illness
Provides that upon an oral and written request by a spouse, parent, child, or sibling for information about a patient who is being evaluated for or diagnosed with mental illness, a provider must notify that individual of the right to have the provider request the patient's authorization to release information about the patient to the designated individual.

Section 2 states that a parent or legal guardian of a 16- or 17-year-old may give consent for mental health treatment when the treatment is suitable but the child refuses to consent to treatment.
Effective Date: August 1, 2000.

Chapter 320 (S.F. 2510/H.F. 3220) Real Property Recording and Redemption; Common Interest Ownership
The MSBA Real Property Section's omnibus bill. Section 1 amends the statute governing county septic system ordinances to prohibit counties from adopting an ordinance that prohibits or delays the recording of a deed or other instrument otherwise entitled to be recorded.

Section 2 clarifies the cross-reference to the law on selling real estate to satisfy liens to tie the right of redemption of the property in these cases to the law that applies to execution sales.

Sections 3 and 4 relate to the Minnesota Common Interest Ownership Act. Section 3 clarifies that the act does not apply to exempted planned communities and cooperatives and adjusts the effective date of the act to July 31, 1999. Section 4 provides that approval may be obtained by vote or by signatures, and the required approval may be in the form of a number or percentage of owners or secured parties.

Section 5 amends the redemption statute to specify that the judgment or debtor, or debtor's heirs, successors, legal representatives or assigns may be redeemed within one year after the date of the judgment execution sale. A creditor with a prior lien may redeem during the same period by paying an amount equal to the prior lien, with interest at the judgment rate. After the above period, creditors with subsequent liens may redeem in the manner provided by the current statute on mortgage foreclosure by advertisement.

Section 6 provides that junior creditors must file notices of intent to redeem during the mortgagor's redemption period.

Section 7 strikes the current requirement that a creditor must file notice of intent to redeem with a court in order to redeem the property.
Effective Date: Sections 3 and 4 became effective April 5, 2000. Sections 2, 5, 6, and 7 apply to redemptions where the owner's redemption period has not expired before August 1, 2000.

Chapter 323 (H.F. 3290/S.F. 2894) Occupational Safety and Health Discrimination
Provides that communications regarding a discrimination complaint under OSHA between a complainant and the attorneys representing the commissioner of the Department of Labor and Industry are privileged, just as communications between an attorney and a client.
Effective Date: August 1, 2000.

Chapter 325 <(H.F. 1590/S.F. 1952) Search Warrant Authority
Provides that if a judge is satisfied that grounds exist for a search warrant, one must be issued to an agent of the Division of Alcohol and Gaming Enforcement.
Effective Date: August 1, 2000.

Chapter 328 (H.F. 3152/S.F. 2905) Government Procurement
Makes a number of changes regarding municipal contracting; i.e., increasing certain dollar limits in the Uniform Municipal Contracting Law from $25,000 to $35,000 for municipalities with a population less than 2,500, and to $50,000 for all others; providing an exemption for competitive bidding for certain purchases by cooperatives; and authorizing county purchases on credit cards with the proviso that county officers and employees are personally liable for unauthorized credit card purchases.
Effective Date: August 1, 2000.

Chapter 334 (H.F. 2936/S.F. 2511) Public and Private Property Entry; Town Cartway Costs
Allows a town board and its employees and agents to enter upon any public or private property to conduct examinations and surveys for town roads and cartways. However, this authority does not grant immunity for damages caused by the entry.

Also provides a successful petitioner must pay the hearing, administrative, recording, and other costs and expenses that the town incurs in connection with the cartway proceedings.
Effective Date: August 1, 2000.

Chapter 335 S.F. 2676/H.F. 3327) Local Government Rule Petitions
Extends the sunset from July 31, 2001, to July 31, 2006, on a 1999 law authorizing local governments to petition for the amendment or repeal of a state rule. Also adds sanitary districts to the list of government units that may petition to amend or repeal a rule.
Effective Date: August 1, 2000.

Chapter 345 (H.F. 2803/S.F. 3119) Court Reporters; Public Employment Labor Relations Act
Authorizes court reporters in certain judicial districts to organize under the Public Employment Labor Relations Act. However, judges may appoint and remove court reporters at their pleasure.
Effective Date: August 1, 2000.

Chapter 349 (H.F. 2643/S.F. 2767) Prompt Payment of Clean Claims
Requires health plan companies and third-party administrators to pay or deny a clean claim within 30 calendar days of the plan or administrators' receipt of the claim. A clean claim is a claim that has no defect or impropriety, including any lack of required substantiating documentation, or any particular circumstance requiring special treatment that prevents timely payment.

Also requires the health plan company or third-party administrator to pay interest for claims not paid within that period; except if the delay was for reviewing potentially fraudulent or abusive billing practices. The commissioner of the Department of Health may not assess a financial administrative penalty against a health plan company for violation of this subdivision.
Effective Date: January 1, 2001, and applicable to claims submitted on or after that date.

Chapter 350 (H.F. 2974/S.F. 3203) National Association of Insurance Commissioners Model Legislation
Conforms state statutes to the National Association of Insurance Commissioners model legislation for uniform accounting principles.
Effective Date: August 1, 2000. Section 15 regarding securities registration exemptions is effective retroactive to July 1, 1999.

Chapter 355 (H.F. 3347/S.F. 2989) Office of Administrative Hearings
Authorizes the chief administrative law judge to establish a system of training for workers compensation judges and administrative law judges (ALJs) to enable them to become qualified to conduct hearings in areas other than the area of their original appointment. Also allows for appointment of either workers compensation judges or ALJs to hear cases.

Makes the chief administrative law judge subject to the provisions of Article VI, section 6, of the Minnesota Constitution, the jurisdiction of the Board of Judicial Standards, and the provisions of the Code of Judicial Conduct. ALJs and workers compensation judges are also subject to the Code of Judicial Conduct, but may serve as members of a governmental board when so directed by the Legislature. The chief administrative law judge is required to provide training to ALJs and workers compensation judges about the requirements of the Code and shall apply the provisions of the Code to their actions.

Also provides that workers compensation judges and ALJS may mediate, arbitrate, or take other appropriate action on matters referred to the office by any member of the federal or state judicial branch or by the Workers Compensation Court of Appeals.
Effective Date: December 31, 2000.

Chapter 357 (S.F. 2725/H.F. 3119) Minors' Representation in Juvenile Court
Limits representation by public defenders and court-appointed counsel to minors who are ten or older.

Also provides that a juvenile court may not order the district public defender to represent a minor under the age of ten, to serve as a guardian ad litem, or to represent a guardian ad litem.
Effective Date: August 1, 2000.

Chapter 358 (S.F. 1126/H.F. 1267) Economic Loss Doctrine
Amends Minn. Stat. ¤ 604.10, the economic loss doctrine. The act applies to both sales and leases of goods, regardless of whether the buyer is a consumer or commercial party.

Under the new language, the doctrine applies to any claim by a buyer against a seller for harm caused by a defect in the goods sold or leased, or for a misrepresentation relating to the goods sold or leased. In any claim, the buyer may recover only for: (1) loss of, damage to, or diminution in value of the other tangible personal property or real property, including, where appropriate, reasonable costs of repair, replacement, rebuilding, and restoration; (2) business interruption losses, excluding loss of good will and harm to business reputation that actually occur during the period of restoration; and (3) additional family, personal, or household expenses that are actually incurred during the period of restoration.

A buyer may not bring a product defect tort claim against a seller for compensatory damages unless a defect in the goods sold or leased caused harm to the buyer's tangible personal property other than the goods or to the buyer's real property. A buyer may not bring a common law misrepresentation claim against a seller relating to the goods sold or leased unless the misrepresentation was made intentionally or recklessly, but the changes do not alter the elements of a product defect tort claim or a common law claim for misrepresentation. And, the doctrine does not apply to personal injury claims.
While the act is effective August 1, 2000, it expressly states that it governs claims by a buyer against a seller if the sale or lease that caused the seller to be a seller and the sale or lease that caused the buyer to be a buyer both occurred on or after August 1, 2000. Existing ¤ 604.10 does not apply to a claim governed by the new section.

Chapter 362 (H.F. 3208/S.F. 2723) Trust and Probate Provisions
Sponsored by MSBA Probate & Trust Law Section. Amends the Probate Code and makes other changes regarding trusts and estates. Sections 1 and 4 make the rules for appeals in probate and trust matters consistent with one another. Appeals from both probate matters and trust orders will be determined by the Rules of Appellate Procedure in cases where written notice is given. In cases where no written notice is given by a party, appeals from both probate and trust matters are now barred if not taken within six months of the filing of the matter.
Section 2 clarifies the existing provision governing the bequest of tangible personal property by refining the definition of tangible personal property and requiring that a writing transferring personal property must be separate from, but referred to in, the will. Section 2 further provides that, while multiple writings to dispose of personal property will be given effect, if the same item is disposed of differently in the writings, the most recent writing controls.

Section 3 increases the dollar limit for summary proceeding from $30,000 to $100,000; excluding exempt property defined in ¤ 524.2-403, as well as any exempt homestead.
Effective Date: August 1, 2000. Section 2 is effective for wills signed on or after that date.

Chapter 367 (H.F. 3756/S.F. 367) Holocaust Victims Insurance
Requires the commissioner of the Department of Commerce to assist Holocaust victims, or their heirs or beneficiaries, to settle claims and recover proceeds from applicable insurance policies.

Any Holocaust survivor, or heir or beneficiary of a Holocaust survivor or victim, who resides in this state and has a claim against an insurer arising out of Holocaust-related insurance policies, may bring a legal action against that insurer to recover on that claim in the district court of the county in which a plaintiff resides. An action must not be dismissed for failure to comply with the applicable statute of limitations, provided the action is commenced on or before December 31, 2010.
The commissioner may, under its enforcement powers, suspend an insurance company's certificate of authority to conduct business in Minnesota until the insurer comes into compliance.
Effective Date: April 14, 2000.

Chapter 368 (H.F. 3331/S.F. 2980) Domestic Violence and Sexual Assault
Establishes the Office of Director of Domestic Violence and Sexual Assault Prevention as part of the Office of Crime Victims Services and establishes an interagency task force to prepare a strategic plan to prevent domestic violence and sexual assault. The task force's first evaluation is due January 15, 2002.
Effective Date: July 1, 2000.

Chapter 370 (H.F. 3576/S.F. 3361) Minnesota Pollution Control Agency (MPCA)
In addition to a number of technical modifications regarding reporting requirements for solid waste and wastewater treatment facilities, Chapter 370 extends, until January 1, 2010, the statutory exemptions from the prohibition against selected toxics in packaging, and continues the exemption of ceramics from the Listed Metals product review reporting requirement.

Also requires that, by September 1, 2000, the MPCA report to the Legislature with a recommendation for a change in the name of the agency, including the options considered and the process used to develop the recommendation.
These sections are effective April 14, 2000, and August 1, 2000; respectively.

Chapter 371 (H.F. 3109/S.F. 3699) Uniform Electronic Transactions
Enacts the Uniform Electronic Transactions Act adopted by the National Conference of Commissioners on Uniform State Laws. By its terms, Chapter 371 applies only to transactions between parties that have agreed to conduct transactions by electronic means. "Transaction" means an action or set of actions occurring between two or more persons relating to the conduct of business, commercial, or governmental affairs. Whether the parties agree to conduct transactions by electronic means is determined from the context and surrounding circumstances, including the parties' conduct. However, just because a party agrees to conduct a transaction by electronic means does not prohibit the party from refusing to conduct other transactions by electronic means; and this provision may not be varied by agreement. And, except as otherwise provided in this chapter, the effect of any provision of the act may be varied by agreement. Does not apply to a transaction to the extent it is governed by: the Uniform Commercial Code other than sections 336.1-107 and 336.1-206, Article 2, and Article 2A; or section 145C.03, subdivision 1, relating to requirements for creation of a healthcare directive; section 507.24, relating to requirements for recording any conveyance, power of attorney, or other instrument affecting real estate; section 523.23, subdivision 3, relating to requirements for creation of a statutory short form power of attorney; and section 253B.03, subdivision 6b, relating to requirements for creation of a declaration of preferences or instructions regarding intrusive mental health treatment.

In addition, this new act does not apply to the creation and execution of wills, codicils, or trusts other than trusts relating to the conduct of business, commercial, or governmental purposes.

As to legal effect, a record or signature may not be denied legal effect or enforceability solely because it is in electronic form, nor may a contract be denied legal effect or enforceability solely because an electronic record was used in its formation, and if a law requires a record to be in writing, an electronic record satisfies the law, and if a law requires a signature, an electronic signature satisfies the law.
Effective Date: August 1, 2000.

Chapter 372 (S.F. 2742/H.F. 3517) Family Law Procedures; Medical Support Statutes
Chapter 372 makes several family law changes. Section 1 changes the time for filing a notice to remove a judge or judicial officer to require that the notice must be served and filed within ten days after the party receives notice of which judge or judicial officer is to preside at the trial or hearing, or, if no notice, answer the summons, whichever is later. Section 1 clarifies that removal does not apply to the expedited child support process.

Section 2 requires the commissioner of the Department of Human Services, in consultation with the commissioner's advisory committee, to study and make recommendations for changes to the medical support statutes, Minn. Stat., chapter 518. The commissioner shall consider the medical support recommendations from the federal medical support workgroup. The commissioner shall submit recommendations to the Legislature by January 15, 2001.

Also repeals Minn. Stat. 1998, ¤¤ 144.225, 518.147, and 518.583 regarding the disclosure of information from vital records, the Department of Health divorce statistical report form, and the judgment and decree notice that the sale of a principal residence may subject the parties to a capital gain tax, respectively.
Effective Date: August 1, 2000.

Chapter 373 (H.F. 3613/S.F. 3307) Recreational Vehicles; Personal Injury
Provides that the state is not liable for a loss involving or arising out of the use or operation of a recreational motor vehicle within the right-of-way of a trunk highway; except that the state is liable for conduct that would entitle a trespasser to damages against a private person.
Effective Date: August 1, 2000.

Chapter 377 (H.F. 3950/S.F. 3154) Public Defenders; Criminal Justice Data System
Authorizes public defenders limited access to various criminal and juvenile justice databases for purposes of a criminal defense. However, access is limited to specified data necessary to prepare criminal cases in which the public defender has been appointed The public defender shall have access to the data at no charge, except for the monthly network access charge and a reasonable installation charge for a terminal.
Effective Date: August 1, 2000.

Chapter 382 (S.F. 83/H.F. 1493) Wetland Regulations
The purpose of Chapter 382 is to simplify state law relating to "public waters wetlands." Public waters wetlands are defined as "all types 3, 4, and 5 wetlands," as defined in United States Fish and Wildlife Service Circular No. 39 (1971 edition) that are ten or more acres in size in unincorporated areas or 2-1/2 or more acres in incorporated areas.
Requires the commissioner of the Department of Natural Resources to issue a general permit for public waters wetlands by August 1, 1999. The permit must incorporate replacement and process provisions for wetlands under the Wetland Conservation Act jurisdiction. This general permit will allow a replacement plan issued by a local government unit to apply to public waters wetlands, as long as restrictions in the general permit are met.
Effective Date: Various dates.

Chapter 387 (H.F. 2981/S.F. 2848) Public Employment Labor Relations
Adds supervisory or confidential emergency medical service and 911 dispatchers to the list of employees who may be represented by the same exclusive representative as the non-supervisory or non-confidential employees of the same employer.
Effective Date: August 1, 2000.

Chapter 389 (H.F. 562/S.F. 619) Collection Agencies Regulation, Licensure
Exempts an out-of-state collection agency that has applied for and obtained a certificate of exemption from the Department of Commerce from the collector and collection agency licensing requirements. An exempt out-of-state collection agency must advise the commissioner of any material changes to the information submitted in the most recent application within ten days of the change.

In addition to fines and other authorized sanctions, a certificate of exemption is considered revoked if the exempt out-of-state collection agency is found to be in violation of any provision of Minn. Stat., chapter 45 or 332, or the Fair Debt Collection Practices Act of 1977.
Effective Date: August 1, 2000.

Chapter 391 (H.F. 3424/S.F. 3346) Electronic Filing of Real Estate Documents
Requires the secretary of state to establish a task force to study and make recommendations on electronic filing of real estate documents. The task force is to include senators, representatives, county recorders, real estate attorneys, real estate agents, land surveyors, and representatives of title companies, mortgage companies, and other real estate lenders.

The task force is required to report to the Legislature by January 15, 2001, with a proposed work plan and budget. The task force is set to expire June 30, 2003.
Effective Date: August 1, 2000.

Chapter 394 (S.F. 2655/H.F. 3075) Insurance Tax Laws
Recodifies insurance tax law without making substantive changes; except a new definition for "gross premiums."
Effective Date: January 1, 2001.

Chapter 395 (H.F. 3066/S.F. 2783) Secretary of State Operations
Makes several changes related to the operations of the Office of Secretary of State. The secretary of state must now mail annual registration forms to existing entities. The act also provides for more immediate dissolution or termination of entities for failure to register than is provided in current law, makes some largely technical changes to the statutes governing digital signatures, and also makes changes to some of the fees the secretary of state is permitted to charge. The secretary of state is to impose a $20 surcharge on all expedited service the office provides. However, the fee for all amendments filed by certain entities when they change names or addresses cannot exceed $10,000.
The secretary of state must provide a person making a filing with a copy of the filing at the time the filing occurs, provided the filing is ten pages or fewer in length.
Effective Date: Various dates.

Chapter 399(H.F. 1394/S.F. 1495) U.C.C. Secured Transactions Provisions; Revised Article 9
Rewrites Article 9 of the Uniform Commercial Code (UCC), the first major revision of Article 9 since 1972. Article 9 deals with "secured transactions" and "security interests." A "secured transaction" is a transaction in which personal property is pledged as collateral in a "security agreement." In the security agreement, the debtor grants the creditor a "security interest" in the personal property, making the creditor a "secured party." Personal property is almost anything, except real estate, and can include household goods, livestock, bank accounts, investment assets, business inventory, growing crops, business accounts receivable, and so on. A secured party "perfects" its security interest by filing a "financing statement" in the proper government office. This perfects the security interest by giving it "priority" over later-filed financing statements.

Part 1. These sections define terms, including separate definitions of purchase-money security interest and control; and specify the types of transactions to which Article 9 does and does not apply. Article 9 now covers statutory agricultural liens, . . . in regard to filing, priority, and enforcement.

Part 2. These sections specify the extent to which a security agreement is effective, when a security interest attaches to collateral, and the rights and duties of parties to a security agreement.

Part 3. These sections deal with choice of law in perfection and priority of security interests. This bill would provide that filing for business collateral would be in the state under whose laws the business is incorporated or otherwise organized, regardless of where the business is headquartered or where the collateral is located. Consumer and farmer collateral filing would be governed by the laws of the state of the debtor's principal residence.

Part 4. Rights of third parties.

Part 5. Filing. These sections deal with the filing of financing statements and related documents in the appropriate government office in order to "perfect" the security interest and maintain "priority" over other secured parties who may have a security interest in the same collateral. Under this Article 9, all filings, except "fixture filings," would be with the secretary of state. However, sections 98 to 101 permit the secretary of state to establish satellite offices in the county recorder offices for purposes of this article.

Part 6. Default. These sections set forth the rights of the debtor and the secured party when the debtor has defaulted on the obligations secured by the security agreement. This involves the secured party obtaining possession of the collateral and selling it in order to apply the proceeds against the debt.
Effective Date: July 1, 2001.

Chapter 400 (H.F. 1662/S.F. 1896) Medical Assistance Programs and Liens
Makes several changes regarding medical assistance, including those related to the erroneous payment of medical assistance money, and probate provisions for estates subject to medical assistance claims and medical assistance liens. Also directs commissioners of the Department of Human Services, the Department of Revenue, and the Department of Finance to develop recommendations on the funding transfer for day services programs.

Specifically, if a person receives any medical assistance, on the person's death, if single, or on the death of the survivor of a married couple, either or both of whom received medical assistance, the total amount paid for medical assistance rendered for the person and spouse shall be filed as a claim against the estate of the person or the estate of the surviving spouse in the court having jurisdiction to probate the estate or to issue a decree of descent.

Now, medical assistance is a lien on the real property for a period of ten years from the date it attaches, except as otherwise provided. The agency may renew a medical assistance lien for an additional ten years from the date it would otherwise expire by recording or filing a certificate of renewal before the lien expires. The certificate shall be duly recorded or filed, but need not be attested, certified, or acknowledged as a condition for recording or filing. A medical assistance lien is not enforceable against the real property of an estate to the extent there is a determination, by a court that there are insufficient assets in the estate to satisfy the agency's medical assistance lien, in whole or in part, because of the homestead exemption or the rights of the surviving spouse or minor children.

As to clearing medical assistance liens, the court shall enter its decree of descent assigning the real or personal property upon petition when medical assistance claims are paid or satisfied. The decree of descent shall operate to assign the property free and clear of any and all claims for medical assistance without regard to the final disposition of those claims. After filing the petition, the petitioner or the petitioner's attorney shall apply to the county agency in the county in which the petition is pending for a clearance of medical assistance claims. If there are no claims, the county agency shall issue the petitioner a clearance for medical assistance claims stating no medical assistance claims exist. If there is a claim, the county agency shall issue the petitioner a clearance for medical assistance claims stating that a claim exists and the total amount of the claim. Any of the decedent's devisees, heirs, successors, assigns, or their successors and assigns, may apply for a partial decree of descent to facilitate the good faith sale of their interest in any real or personal property described in the petition free and clear of any medical assistance claim any time before the entry of a decree of descent. The court may enter a partial decree of descent any time after it could hear and decide the petition for a decree of descent. A partial decree of descent shall assign the interests in the real and personal property described in the application to the parties entitled to the property free and clear of any and all medical assistance claims. The net sale proceeds from the sale shall be: (1) substituted in the estate according to this section for the property sold; (2) paid over to and held by the petitioner pending the entry of a decree of descent; (3) used for payment of medical assistance claims; and (4) distributed according to the decree of descent after any medical assistance claims are paid.
As to surviving spouses, if a surviving spouse is receiving medical assistance when the person's spouse dies, then any time before an order or decree is entered or a closing statement is filed, the surviving spouse may: (1) exercise the right to take an elective share; (2) petition the court for an extension of time for exercising the right to an elective share; (3) elect statutory rights in the homestead or petition the court for an extension of time to make the election. The personal representative of the estate of the surviving spouse may exercise the surviving spouse's right of election and statutory right. Notwithstanding any oral or written contract, agreement, or waiver made by the surviving spouse to waive, in whole or in part, the surviving spouse's right of election against the decedent's will, statutory right to the homestead, exempt property, or family allowance, the surviving spouse or the surviving spouse's guardian or conservator may exercise these rights to the full extent permitted by law. However, the surviving spouse's rights do not apply to the extent there is a valid antenuptial agreement between the surviving spouse and the decedent under which the surviving spouse has waived some or all of these rights.
Relative to notice to creditors, the notice to the commissioner of the Department of Revenue does not satisfy the notice to creditors requirements.
Effective Date: August 1, 2000.

Chapter 403 (S.F. 2794/H.F. 3519) Expedited Child Support Process
Modifies certain provisions under the expedited child support process. Specifically, requires that the initiating party shall include the following specific personal and financial information, if known, in the pleadings in a child support action: dates of birth of the parties; Social Security numbers of the parties and the minor children of the parties, which shall be classified as private information; other support obligations of the obligor; and types and amounts of public assistance received by the parties, including Minnesota Family Investment Plan, child care assistance, medical assistance, MinnesotaCare, Title IV-E foster care, or other form of assistance as defined in section 256.741, subdivision 1; and
For all matters scheduled in the expedited process, whether or not initiated by the public authority, the nonattorney employee of the public authority shall file with the court and serve on the parties the foregoing information.
Effective Date: August 1, 2000.

Chapter 404 (S.F. 3018/H.F. 3318) Standby and Alternate Child Custodians
Under Chapter 404, a parent with legal and physical custody of a child may designate a standby or temporary custodian by written designation, unless the child has another legal parent whose parental rights have not been terminated, whose whereabouts are known; and who is willing and able to make and carry out daily decisions and care regarding the child.
A parent or legal custodian may designate a standby or temporary custodian with the consent of the other parent, but a temporary custodian may not name a different temporary custodian. The standby custodian takes authority on the incapacity, debilitation, consent, or death of the child's parent. A temporary custodian may have legal and physical custody of a child for a specific period up to 24 months. Significantly, the custodian does not divest the parent of its rights; the parent and standby or temporary custodian have concurrent or shared custody of the child.

The act sets forth a specific process for filing a petition for approval, modification, and revocation of designation, which requires approval with or without a hearing depending on the parental circumstances. The court must apply the statutory best interests standard in its determinations.

The current designated caregiver statute is repealed. And, if a designated caregiver agreement has been entered into, but is not operational because of the new act, the parent or the designated caregiver may file a petition for the designated caregiver to be approved as a standby custodian.
Effective Date: April 15, 2000.

Chapter 405 (H.F. 3577/S.F. 3116) Creditors Remedies
Makes various changes in the procedures creditors can use to gain access to wages or other funds or property held by a third party, such as an employer or financial institution, for a debtor.
Effective Date: Various effective dates.

Chapter 407 (H.F. 2570/S.F. 3259) Energy Code
Provides that certain energy code rules for residential buildings shall remain in effect.
Effective Date: April 14, 2000.

Chapter 411(H.F. 3825/S.F. 3338) Tribal Police Departments
Redefines the elements of the crime of fleeing a peace officer in a motor vehicle so "flee" includes refusing to stop a vehicle and "peace officer" includes an employee of a law enforcement agency of a federally recognized tribe, who is licensed by the Minnesota Board of Peace Officer Standards and Training.
Effective Date: August 1, 2000, and applies to acts committed on or after that date.

Chapter 415 (H.F. 1947/S.F. 1618) Brewer and Wholesaler Judicial Remedies
Provides that if a brewer violates the Minnesota Beer Brewers and Wholesalers Act, a wholesaler may bring an action against the brewer in federal or state court, and this right may not be waived; except at the time the lawsuit is filed.
Effective Date: April 18, 2000.

Chapter 418(H.F. 3234/S.F. 3091) Sales and Use Tax
Recodifies the sales and use tax laws.
Effective Date: July 1, 2001; except the revisor's instructions are effective July 1, 2000.

Chapter 423 (S.F. 1733/H.F. 2555) Intoxicated Minors Damages Third Party Liability
Provides that a person injured, or who incurs pecuniary loss, has a right of action against any person 21 years or older who sold, gave, or purchased alcoholic beverages for a minor (person under the age of 21), or knowingly or recklessly permitted the minor to consume alcohol. All damages recovered by a minor under this section must be paid either to the minor or to the minor's parent, guardian, or next of kin as the court directs.

Chapter 423 also provides that there shall be no recovery by any insurance company for any subrogation claim under automobile insurance nor coverage under a homeowner's insurance unless specifically covered in a policy or covered by a rider attached to a policy.
Effective Date: August 1, 2000. The insurance coverage exclusion subdivision expires on December 31, 2001.

Chapter 427 (H.F. 2973/S.F. 2870) Omnibus Financial Institutions Bill
Makes a number of changes in the area of residential mortgage origination and servicing, including changes in the persons exempt from mortgage originator and servicer licensing; a reduction threshold for occasional residential mortgage and servicing activities from five to three per year; a prohibition against mortgage originators and servicers from doing business under more than one name; a correction that recognizes that an "irrevocable letter of credit" may be used instead of bonds for mortgage originators and servicers; and a specific requirement that out-of-state lenders comply with our mortgage lending laws. The chapter also repeals a rule that prohibits mortgage lending by credit unions.

Also included are provisions that require lenders to credit payments as of the date they are received and extend a current regulation of credit insurance to all types of credit insurance.

Chapter 430 (H.F. 2563/S.F. 2381) Mechanics' Lien Civil Cause of Action; Criminal Penalties
Creates a civil cause of action to recover such funds and imposes a criminal penalty for the misuse of those funds intended to pay subcontractors and material suppliers.

Section 1 provides that proceeds of payments received for improvements to real property that are subject to the mechanics' lien law are to be held in trust for payment to the subcontractors and suppliers; however, there is no fiduciary duty by the person who receives the funds and these proceeds need not be kept in a separate account. Also, the proceeds are not subject to the credit remedies of garnishment, execution, levy, or attachment, and no right to punitive damages for the person who provides labor or supplies.

Chapter 430 also provides that failure to pay a subcontractor and supplier for an improvement to residential real estate is theft. In addition, a shareholder, officer, director, or agent of a corporation guilty of the theft, who knowingly receives proceeds as salary, dividend, or loan repayment, also has civil liability for the proceeds. However, a third party who receives a payment in the ordinary course of business is not liable. And, an injured party may recover not only damages, but also costs, disbursements, investigation costs, and attorney fees.
Effective Date: August 1, 2000, and applies to: (1) crimes on and after that date, and (2) civil causes of action arising on or after that date.

Chapter 433 (H.F. 3505/S.F. 3092) Omnibus Technical Insurance and Enforcement
Section 1 permits the commissioner of the Department of Commerce (Department) to release investigative information about insurance activities to federal banking regulators.

Section 2 would permit the Department to restrict an insurer's authority to continue to do business in the state under an agreement with the insurer based upon the insurer's financial condition.

Section 39 adds language to the existing set of grounds for discipline against a securities license to allow the commissioner to act based on discipline imposed by a securities exchange.

Section 40 states current law requires securities registration applicants to file two copies of the latest prospectus; this section reduces that requirement to one copy.

Section 41 states paragraph (a) clarifies that limits on exemption from securities registration are based upon transactions in Minnesota only.

Section 42 states current law implies that it is mandatory that the commissioner consider withdrawn any franchise offering registration application that has no activity for 120 days. This section provides that the commissioner has discretion to take that step.

Section 43 gives the commissioner discretion to withdraw a franchise offering registration amendment application that has had no activity for 120 days.

Section 51 provides that the commissioner may take action against a collection agency based on actions of its collectors.

Section 52 regulates contracts to locate unclaimed property.

Section 53 provides what a notarial officer is required to do in taking acknowledgments, witnessing signatures, and performing other acts.

Chapter 435 (H.F. 3692/S.F. 3443) Feedlot Regulations
Attempts to resolve the outstanding issues surrounding the animal feedlot rulemaking process the Minnesota Pollution Control Agency (MPCA) began last year. The act removes certain feedlots with under 300 "animal units" from regulation and, until January 1, 2005, allows the operator of a feedlot with between 300 and 1,000 "animal units" to elect to implement an approved manure management plan or to become certified as a private manure applicator. A new statutory formula for calculating animal units (AUs) for purposes of feedlot certification is included in the act.

The act also provides for specific changes regarding filing an action on permit applications.

The MPCA is required to amend the proposed permanent rules relating to animal feedlots and storage, transportation, and utilization of manure. It is also required to remove certain provisions, limited as to what other rules it can impose, and mandated to incorporate these measures. These rules do not preempt the adoption or enforcement of zoning ordinances or plans by counties, townships, or cities.
Effective Date: April 25, 2000.

Chapter 437 (S.F. 551/H.F. 1067) Domestic Abuse Provisions
Contains a number of initiatives related to domestic abuse and child abuse. Amends timing for hearing on ex parte order; authorizes service of short form notification in lieu of personal service for orders for protection; expands the definition of first-degree murder in situations involving domestic abuse; provides enhanced penalties based upon previous conviction or adjudication for malicious punishment of a child and other laws; increases the cash bail for individuals charged with malicious punishment of a child; clarifies when evidence of similar prior conduct of an accused related to domestic abuse is admissible; changes certain domestic abuse enforcement procedures; and changes the domestic assault definition in the law related to the order of disposition of issues on a court's calendar to include the redefined domestic abuse.
Effective Date: The change in the ex parte order hearing became effective April 25, 2000. The provisions regarding alternative and short form notice and court proceedings regarding domestic abuse became effective August 1, 2000. The new criminal provisions became effective August 1, 2000 and apply to crimes committed on or after that date.

Chapter 439 (H.F. 3497/S.F. 3539) Equal Access to Justice Act
Chapter 439 amends the Equal Access to Justice Act which regulates the recovery of costs and attorneys' fees from the state of Minnesota. Although Chapter 439 does not change the basic standard for awarding fees and expenses, it does make a number of changes to the fees and expenses that can be awarded, and the recovery procedure. The definition of expenses is amended to include the reasonable cost of any study, analysis, engineering report, test, or project. The maximum hourly rate for attorneys' fees that may be awarded is increased from $100 to $125. Chapter 439 also amends the definition of eligible party to include businesses having 500 or fewer employees and annual revenues which do not exceed $7 million. Previously, recovery was limited to businesses with 50 or fewer employees and revenues of no more than $4 million. A party seeking an award must, within 30 days of final judgment, submit to the court or administrative law judge an application for fees and other expenses.
Chapter 439 is effective August 1, 2000, and applies to any civil action or contested case proceeding commenced on or after that date.

Chapter 444 (H.F. 3311/S.F. 3169) Parenting Plans
Moves to replace current custody and court-ordered visitation orders with voluntary parenting plans. A parenting plan includes a schedule of the time each parent spends with the child, a designation of decision-making responsibilities regarding the child, and a method of dispute resolution. A parenting plan may include other issues and matters the parents agree to regarding the child. Parents may include an allocation of expenses for the child, which becomes an enforceable contract between the parties. Parents voluntarily agreeing to parenting plans may substitute other terms for physical and legal custody, including designations of joint or sole custody, provided that the terms used in the substitutions are defined in the parenting plan. Upon the request of both parents, a parenting plan must be created in lieu of an order for child custody and parenting time unless the court makes detailed findings that the proposed plan is not in the best interests of the child.
If both parents do not agree to a parenting plan, or cannot agree to all the terms, the court may create one on its own motion, except that the court must not do so if it finds that a parent has committed domestic abuse against a parent or child who is a party to, or subject of, the matter before the court. If the court creates a parenting plan on its own motion, it must not use alternative terminology unless the terminology is agreed to by the parties. Again, the court's plan must be based on the child's beset interest.

If an existing order does not contain a parenting plan, the parents cannot be required to create a parenting plan as part of a modification order under existing statute.

Parents may agree, but the court must not require, that in a parenting plan, the child's best interest factors will govern a decision concerning removal of a child's residence from this state; provided that: (1) both parents were represented by counsel when the parenting plan was approved; or (2) the court found the parents were fully informed, the agreement was voluntary, and the parents were aware of its implications.

Parents may modify the parenting plan by agreement. To be enforceable, modifications must be confirmed by court order and may be made only within the existing time limits.
Upon request of both parties, the court must modify an order issued before the effective date of this act by entering a parenting plan, unless the court makes detailed finding that entering a parenting plan is not in the best interests of the child. If only one party makes the request, the court may modify the order by entering a parenting plan. The court must apply the best interest standards when entering a parenting plan. The court must not enter a parenting plan as part of an action for an order for protection. This section is effective January 1, 2001.

Chapter 444 also provides custody and parenting time with children born outside of marriage. An action to determine custody and parenting time may be commenced pursuant to Chapter 518 without an adjudication of parentage. These sections are effective August 1, 2000.

Chapter 446 (H.F. 3586/S.F. 2951) Municipal Boundary Adjustments; ADR
Provides that the director of the Office of Strategic and Long-Range Planning, upon consultation with affected parties, may require alternative dispute resolution for annexation disputes. Alternative dispute resolution processes may include contested case procedures or mediation and arbitration.

The director of the Office of Strategic and Long-Range Planning must report to the Legislature by February 1, 2002, on the effect of this action. The act also includes a section to address payment of the costs incurred in ongoing boundary adjustment proceedings.
Effective Date: Retroactive to June 1, 1999, and apply to all matters pending on or commenced on or after that date.

Chapter 447 (H.F. 3960/S.F. 3644) Workers' Compensation
ncreases workers' compensation benefits and modifies various workers' compensation provisions. In particular, the act attempts to codify and clarify the <I>Lambertson <P>decision; dealing with employer's right of indemnity, contribution claims and continuing common law or wrongful death damages.
These sections are effective August 1, 2000.

Chapter 447 also addresses attorney fees. An attorney must file a statement or attorney fees within 12 months of the date the attorney has submitted the written notice specified in paragraph (c). If the attorney has not filed a statement of attorney fees within the 12 months, the attorney must send a renewed notice of lien to the insurer. If 12 months have elapsed since the last notice of lien has been received by the insurer and no statement of attorney fees has been filed, the insurer must release the withheld money to the employee, except that before releasing the money to the employee, the insurer must give the attorney 30 days' written notice of the pending release. The insurer must not release the money if the attorney files a statement of attorney fees within the 30 days. This section is effective for written notices of claims for legal services that are filed on or after August 1, 2000.

On a more basic level, the act requires that the employer must give the employee the "Minnesota Workers' Compensation System Employee Information Sheet" at the time the employee is given a copy of the first report of injury and makes changes to the minimum and maximum benefit rates and permanent partial disability impairment ratings and corresponding dollar amounts. These rates are effective for injuries on or after October 1, 2000.

Chapter 450 (H.F. 3047/S.F. 2944) Title Insurance Mortgage Release Certificate Language
Primarily amends the provisions governing mortgage release certificates prepared by title insurance companies. The act raises the threshold of the mortgages covered by the statutory provisions from $500,000 to $1.5 million. "Mortgage" and "partial release" are redefined to include: an assignment of rents and profits and the release of certain parcels of land from a mortgage; respectively. In addition, the definition of "payoff statement:" is amended to include the part of the unpaid loan balance secured by the mortgage that is required to be paid in order to get a partial release.

Chapter 450 makes additional amendments regarding satisfaction, release, and assignment of rents and profits. An assignment of rents and profits, whether in the mortgage or in a separate instrument, shall expire: (1) with respect to the rents and profits from all of the mortgaged property, upon recording in the office of the county recorder or filing in the office of the registrar of titles of the county where the mortgaged property is located, a satisfaction or a certificate of release; or (2) with respect to the rents and profits from a portion of the mortgaged property, upon recording or filing of a release or a certificate of release of that portion of the mortgaged property. No separate reassignment of the rents and profits or satisfaction or release of the assignment is required. An assignment of a mortgage, whether or not the mortgage mentions an assignment of rents and profits, is sufficient to assign both the mortgage and the assignment of rents and profits permitted by this subdivision which secures the debt secured by the mortgage, and no separate assignment of the assignment of rents and profits shall be required.

Chapter 450 also amends the resale disclosure certificate issued in the sale of units in common interest communities.
Effective Date: August 1, 2000 and applies to all mortgages and assignments of rents and profits, whenever executed, except as to those mortgages and assignments of rents and profits, the rights to which have been fully adjudicated or which are the subject of pending litigation as of that date.

Chapter 451 (H.F. 2833/S.F. 2891) Data Sharing; Schools, Juvenile Justice
Authorizes the exchange of certain data between schools and the juvenile justice system.
Effective Date: August 1, 2000.

Chapter 452 (S.F. 3300/H.F. 3997) Combined Jurisdiction Trial Court
Extends the streamlined dissolution procedure project created in Ramsey County until June 30, 2002.

Chapter 455 (H.F. 2673/S.F. 2521) Corporations Created by Political Subdivisions
Expressly provides that a county, home rule charter city, statutory city, town, school district, or other political subdivision, including a joint powers entity, may not create a corporation, whether for profit or not for profit, unless explicitly authorized to do so by law. In addition, Chapter 455 provides for the continuation of existing corporations but only upon compliance with specific requirements.

If an existing corporation has contracts or other obligations that are inconsistent with any requirement of this section, the resolution may provide for the delayed application of that requirement for the time necessary to avoid a breach or impairment of the contract or obligation.
A corporation created by a political subdivision must comply with every law that applies to the political subdivision, as if the corporation is a part of the political subdivision, unless the resolution ratifying creation of the corporation specifically exempts the corporation from part or all of a law. At least every three years after adoption of a resolution that exempts a corporation from part or all of a law, the political subdivision must review the activities of the corporation and whether the exemption should continue to apply to the corporation. However, a corporation may not be exempted from the Minnesota Open Meeting Law and Minnesota Government Data Practices Act.

The act also permits municipalities to construct, purchase or operate a cable communication system, or operate facilities or channels for community television, provided the municipality shall be subject to the same statutory requirements as any nonpublic cable system.
Effective Date: August 1, 2000.

Chapter 458 (S.F. 3016/H.F. 3345) Child Support Enforcement
Amends various provisions regarding the enforcement of child support to conform with federal law. Chapter 458 also creates a process for the summary execution of support judgment upon funds at a financial institution against a judgment debtor who is in arrears in court-ordered support payments in an amount equal to or greater than five times the judgment debtor's total support order.

Also, under Chapter 458, a party may now obtain an ex parte order in a Title IV-D case to require a public authority to serve legal documents on the other party by mail if the party submits a sworn affidavit to the court stating that: (1) the party needs to serve legal process in a support proceeding and does not have access to the address of the other party; (2) the party has made reasonable efforts to locate the other party; and (3) the other party is not represented by counsel. The state court administrator shall prepare and make available forms for use in seeking access to an address under this subdivision.

Chapter 469 (H.F. 3000/S.F. 3234) Administrative Rules
@FBODY:Authorizes the legislative government operations committees to formally object to administrative rules and provides for legislative overview of rules where the chief administrative law judge has determined that the need for, or reasonableness of, the rules has not been established.

Also requires that an agency whose rules are subject to review must submit to the governor and the appropriate legislative committees, by August 1 of the year before the legislative session in which the rules are scheduled for review, a report with: a list of any rules that the entity recommends for repeal; a list and description of a rationale for the rules that the entity believes should remain in effect; and any changes in the rules that could improve the agency's ability to meet its regulatory objectives while reducing any unnecessary burdens on regulated parties.
Under the current rule review schedule, the rules of the departments of Agriculture and Health are subject to review before or during the 2002 legislative session; rules of the Office of Environmental Assistance are subject to review before or during the 2003 legislative session; and the rules of the Department of Natural Resources and Minnesota Pollution Control Agency will be reviewed before or during the 2004 legislative session. The rules of other departments will be subject to review as delineated.
Creates an eight-member rules task force, comprised of four gubernatorial appointees and four legislative appointees, to study and make recommendations to the governor and Legislature, by January 15, 2001, on issues related to the review of agency rules.
Effective Date: May 16, 2000.

Chapter 470 (S.F. 3070/H.F. 3534) Agricultural Contracts
Changes the requirements for contracts between agricultural producers and contractors. Chapter 470 includes specific requirements regarding a written disclosure of risks; a producer's right to review and consultation; and the terms and readability of the contract.

A contractor may submit a contract to the commissioner of the Department of Agriculture to review and certify that language of a proposed contract complies with the statutory requirements. However, certification does not constitute approval of the legality or legal effect of the contract.

A court may change the terms of a contract if it fails to comply with statutory requirements; the violation caused the producer to be substantially confused about any of the rights, obligations, or remedies of the contract; and the violation has caused or is likely to cause financial detriment to the producer. If the court reforms or limits a provision of a contract, the court shall also make orders necessary to avoid unjust enrichment.

Bringing a claim for relief under this subdivision does not entitle a producer to withhold performance of an otherwise valid contractual obligation; and no relief may be granted unless the claim is brought before the obligations of the contract have been fully performed.
It is a defense to any claim that the party made a good faith and reasonable effort to comply with the statute. A party who has made a good faith and reasonable effort may not be assessed attorney's fees or costs of investigation in an action. In a class action, the amount of the attorney's fees and costs of investigation assessed against that contract and in favor of the class or classes may not exceed $10,000. There is a six-year statute of limitations for claims under the act.
This act does not apply to contracts which provide for: (1) the sale and purchase of a fixed amount of a commodity for delivery at a set price; (2) price-later grain contracts; (3) contracts agreed to between a processor and an accredited bargaining organization; (4) future contracts which involve the sale or purchase of a standardized quantity of a commodity for future delivery on a regulated commodity exchange; (5) agricultural marketing contracts between a capital stock cooperative and its members; (6) occasional sales between persons who produce or cause to be produced food, feed, or fiber in a quantity beyond their own family use. Significantly, any provision of an agricultural contract that waives or attempts to waive any provision of the act is void.
Effective Date: January 1, 2001, and applies to agricultural contracts entered into or substantively amended after that date.

Chapter 471 (H.F. 47/S.F. 11) Domestic Abuse
Provides a six-year statute of limitations for an action for assault, battery, or false imprisonment committed between a family or household members as defined in Minn. Stat. ¤ 518B.01, the Domestic Abuse Act. Also authorizes a joint domestic abuse prosecution unit patrol project in Ramsey County.
Effective Date: August 1, 2000, and applies to causes of action arising on or after that date.

Chapter 476 (H.F. 2516/S.F. 3580) Harassment; Restraining Orders
Amends the civil harassment restraining order law to allow a restraining order to be issued when there is a "single" incident of harassment that has or is intended to have a "substantial" adverse effect. A petition must allege an immediate and present danger of harassment before the court may issue a temporary restraining order. However, the court may not hold a hearing on the matter if it is determined to be without merit.
Effective Date: August 1, 2000, for proceedings commenced on or after that date.

Chapter 477 (H.F. 3312/S.F. 3223) Omnibus Agriculture Policy Bill
Included in Chapter 477 are provisions which: (1) prohibit and criminalize the unauthorized handling of anhydrous ammonia; (2) change the formula for reimbursements from the agricultural chemical response and reimbursement account; (3) authorize the commissioner of the Department of Agriculture to adopt and amend the state rules to conform with federal law; (4) makes multiple changes regarding grain contracts.

Chapter 477 also makes major amendments to the Minnesota Corporate Farm Law. Most significant are the changes to permit certain trusts, nonprofits, and limited liability companies to own, farm, and transfer agricultural land , permit the commissioner of the Department of Agriculture to grant special exemption to nonqualifying corporations, and permit de minimis ownership. Includes many significant technical definitions of terms such as "family farm trust," "family farm limited liability company," "authorized farm limited liability company," and "nonprofit corporation."
These provisions became effective May 16, 2000.

Chapter 478 (H.F. 2995/S.F. 2677) DWI
Creates a new Minnesota chapter, Minn.Stat. chapter 169A, entitled the Impaired Driving Code. The laws replaced by the bill include those provisions of Chapter 169, the Traffic Code, that specifically relate to impaired driving (Minn.Stat. ¤¤ 169.121 to 169.129, plus related definitions in Minn. Stat. ¤ 169.01) and the administrative plate impoundment law (Minn. Stat. ¤ 168.042) currently located in Chapter 168, the motor vehicle registration law. No other existing Minnesota laws indirectly connected to impaired driving, such as careless or reckless driving laws or criminal vehicular operation, are affected by the bill.

Establishes three levels of impaired driving i.e., first, second and third degree driving while impaired. The second and third degree offenses involve one or two or more "aggravating factors." Each level has prescribed penalties and mandatory sanctions.

The act continues the ignition interlock device pilot program until December 31, 2001, but does not extend it statewide. A report on the program is due to the Legislature by February 1, 2002.
The act also creates a working group to study the costs and other effects of creating a felony-level penalty for repeat DWI offenders and requires that the group report to the Legislature by September 1, 2000.
Effective Date: January 1, 2001.

Chapter 480 (H.F. 2880/S.F. 2354) County Attorney Access to Patient Records
Allows a county attorney or designee to have access to patient records for determining whether good cause exists to file a petition for commitment as a sexual psychopathic personality or sexually dangerous person and requires the court to decide the matter within 48 hours. The court may grant the motion if: (1) the Department of Corrections refers the case for commitment as a sexual psychopathic personality or a sexually dangerous person; or (2) upon a showing that the requested category of data or records may be relevant. Notice to the proposed patient need not be given upon a showing that such notice may result in harm or harassment of interested persons or potential witnesses.
Data collected pursuant to this subdivision shall retain their original status and, if not public, are inadmissible in any court proceeding unrelated to civil commitment, unless otherwise permitted.
Effective Date: August 1, 2000.

Chapter 482 (H.F. 3057/S.F. 2893 Business Subsidies
Amends the 1999 business subsidies reporting law. Specifically, increases the "subsidy" threshold from $25,000 to $100,000 and adds several new exemptions. Includes other changes such as: (1) a change so increasing the tax base may be part of the public purpose but need not be the entire public purpose; (2) a provision giving the grantor of a subsidy the ability to waive, after a public hearing, the general statutory requirement that a subsidy recipient agree to continue operations for at least five years at the location where the subsidy is being given; (3) an amendment that allows wage and job goals to be set at zero after a public hearing if job retention or creation is determined not to be a goal; (4) another provision permitting a summary of the subsidy agreement to be publicly available; (5) changes to reporting requirements so wage and job information can be reported for non-business subsidy assistance only when job creation or retention are goals.
Effective Date: Various effective dates.

Chapter 483 (H.F. 3505/S.F. 3092) Department of Commerce Enforcement Bill
Includes specific changes in the areas of insurance, securities, franchises, real property appraisers, land subdivision, and unclaimed property. Also provides new standards of conduct for notaries. Now, a notary taking an acknowledgement or verification, witnessing or attesting, must determine from personal knowledge or satisfactory evidence that the person before the notary is the person whose true signature is on the instrument. Also, a notary certifying or attesting a document must determine that the proffered copy is a full, true and accurate transcription or reproduction of the original. A notary is prohibited from acknowledging, witnessing, verifying or attesting the notary's own signature, oath or affirmation.
Effective Dates: Various Dates.

Chapter 487 (H.F. 988/S.F. 1048) Public Utility Commissioners Ex Parte Communication
Amends the prohibitions against ex parte communications in matters before the Minnesota Public Utilities Commission (PUC) and creates a complaint procedure for responding to ex parte communications.
First, as to prohibitions, the PUC may apply ex parte prohibitions, prospectively and after notice to affected parties, to other PUC proceedings as the PUC deems necessary. The act creates a detailed complaint procedure. Any person may file a complaint with the PUC for alleged violations. The PUC shall refer the complaint and any reply to the Office of Administrative Hearings.

The administrative law judge shall conduct a hearing investigation and shall issue a report within 30 days after the matter is referred. If the report cannot be completed within that time period, the judge shall file a final report within a reasonable time thereafter, no later than 60 days after the referral to the Office of Administrative Hearings.
The findings and decisions of the judge as to whether ex parte violations have occurred are binding on the Commission. The judge shall also discuss and make recommendations regarding the imposition of sanctions.

The administrative law judge may only recommend that the PUC impose one of the following sanctions if the judge finds that the condition specified for the sanction is met: (1) dismiss the proceeding; (2) issue an adverse ruling on a pending issue if other parties are prejudiced by the prohibited ex parte communication; (3) strike evidence or pleadings if the evidence or pleadings are tainted; (4) issue a public statement of censure.

If the administrative law judge finds the complainant's allegation of an ex parte violation was interposed for any improper purpose, such as to harass or cause unnecessary delay or needless increase in the cost of the proceeding, the judge may recommend that the PUC issue an appropriate sanction against the complainant.
Effective Date: August 1, 2000.

Chapter 488 (H.F. 2699/S.F. 3021) Omnibus Bill, State Government Appropriations
Chapter 488 includes the following provisions:
In the area of economic development, Chapter 488 grants $150,000 as a one-time appropriation for alien labor certification, subject to a dollar-for-dollar match for non-state sources. Also, included two provisions regarding employee safety originally introduced as H.F. 2901/S.F. 3095. Article 2, Section 11 provides that in the event of a death of an employee, the Department of Labor and Industry shall make reasonable effort to locate the employee's next of kin and mail copies of citations and notifications of penalties associated with the employee's death and subsequent actions. The next of kin is also given the right to request a consultation regarding the citations and notifications of penalties. Section 14 requires if any serious, willful, or repeat violation, or any failure to correct a violation, causes or contributes to the death of an employee, the minimum total non-negotiable fine shall be $50,000 if there is a willful repeat violation; and $25,000 if there is no willful or repeat violation.

In environmental affairs, Chapter 488 amends the agricultural chemical response and reimbursement account to provide for 80 percent of the total reasonable and necessary corrective action costs greater than $200,000 but less than or equal to $300,000; and 60 percent of the total reasonable and necessary corrective action costs greater than $300,000 but less than or equal to $350,000; (2) provides that until June 1, 2004, citations for storage tank violations (except those including discharge or secondary containment) may be issued only after the owners and operators have had a 90-day period to correct violations; and (3) permits certain deeds issued by the state and counties for the land exchanges and sales to a lessee made pursuant to be exempt from certain well disclosure requirements.

In the criminal justice area, Chapter 488 grants $2.67 million to reduce judge unit vacancies and restore judicial branch infrastructure funding, $130,000 to continue the community court in the 2nd Judicial District, $200,000 to restore legal/judicial support services for the Court of Appeals, and $79,000 for extraordinary prosecution costs in Carlton County. Chapter 488 also increases maximum penalties for misdemeanors, petty misdemeanors, and ordinance violations.

Finally, in the area of state government, Chapter 488 appropriates $4 million to construct and maintain the new Uniform Commercial Code central filing system for Article 9 (see Chapter 399).

Chapter 490 (H.F. 4127/S.F. 2657) Omnibus Tax Bill
Chapter 490 is divided into 13 articles, a few provisions of which are discussed below.

Article 2 provides for a program of agricultural tax relief for 2000 for farms located in counties which were presidentially declared disaster counties in 1999, or which were contiguous to a Minnesota-declared disaster county. Thirty-one counties receive relief under this program. Farmers will receive a payment equal to $4 for each acre covered under crop insurance in 2000. The maximum payment is $5,600 per individual or per married couple. This agricultural assistance program is similar in design to the agricultural assistance program of 1999, except that it is available in only 31 counties, and it is based on acres of land that are covered by crop insurance. Article 2 also extends the deadline for filing for the 1999 agricultural assistance to June 30, 2000.

Article 3 extends the filing deadline for the 1999 sales tax rebate to June 30, 2000. This article also makes clarifying and administrative changes in the 1999 rebate recommended by the Department of Revenue

Article 4 decreases individual income tax rates from 5.5 percent, 7.25 percent, and 8.0 percent to 5.35 percent, 7.05 percent and 7.85 percent.

Article 4 also clarifies that the presence of mobile property in Minnesota may subject a taxpayer to the income and franchise tax; clarifies the language that requires taxpayers to file a return if they have transactions with customers in Minnesota involving tangible property where the receipts are attributed to Minnesota; adds several statutory references; and deletes the clause providing that "business from within this state" for financial institutions includes receiving deposits from customers in this state. This change is effective for tax years beginning after December 31, 1999.

In addition, Article 4 includes a provision that responds to the Minnesota Supreme Court decision in Brenda v. Commissioner of Revenue. In Brenda, the Court held the term "compensation for labor or personal or professional service" did not include wages paid to a corporate executive for managerial or administrative work. The change replaces these terms with the term "wages" thus requiring wages earned by all employees for work in Minnesota to be assigned to Minnesota. However, this would not apply to deferred compensation or stock options (earned by an individual who was a resident of Minnesota), if compensation was paid (or the stock options were taxable) to the individual in a tax year after the recipient ceased being a Minnesota resident. This provisions is effective for wages received after the day following final enactment, except that the requirement to withhold is effective for wages paid after December 31, 2000.

Article 5 includes several real estate sections. First, an amendment provides that the information required on a certificate of real estate ("CRV") is limited to the information required as of the date of acknowledgment of the deed. This change became effective May 16, 2000.

Section 6 allows Green Acres treatment to extend to noncontiguous agricultural land that is farmed with qualifying agricultural land, if the noncontiguous parcel is within four townships of the qualifying land. Current law limits carryovers in these situations to noncontiguous land that is within two townships of the qualifying land. The changes made here are similar to the 1998 changes in the agricultural homestead definition statute, under which noncontiguous land up to four townships away will be included in the agricultural homestead for property tax purposes. Effective for taxes payable in 2000 and thereafter.

Section 7 makes two changes to the general homestead rule: (1) clarifies that property of a trust is eligible for homestead classification if certain requirements are satisfied (see section 10 of this article); and (2) allows agricultural relative homestead classification to a farm which is being actively farmed by the grandson or granddaughter of the owner or the spouse of the owner of the farm.

Section 8 clarifies that the family farm corporation homestead provision also includes joint farm ventures and limited liability companies.

Section 9 extends agricultural homestead treatment to property that is actively farmed by the son or daughter of the owner, even if that son or daughter does not live on the property, and clarifies that the homestead is considered to be the homestead of the owner. Also provides that a building site that includes property used for noncommercial storage or drying of agricultural crops (in addition to the residence of the owner) shall be considered part of the agricultural homestead when the owner also owns and actively farms noncontiguous property of 40 acres or more within four townships or cities. Also extends the agricultural homestead classification (see paragraph g) to the shareholders of family farm corporations, joint farm ventures, limited liability companies, or partnerships even if the shareholders, members or partners do not live on the agricultural property, provided that specified criteria are met..

Section 10 provides that real property held by a trustee under a trust may be classified as a homestead even though the occupant is not the technical legal owner of the property, if the requirements in this section are met. This section codifies and clarifies rules under court decisions and Department of Revenue interpretations on when trust property qualifies for homestead treatment.

Article 7 reduces the maximum registration tax on passenger automobiles to $189 in the second year after initial registration and $99 in the third through tenth years. It appropriates money from the general fund to replace the reductions in revenues to the dedicated highway fund.

Article 8, section 14, exempts from sales tax any drawings, diagrams, or related documents and copies of such documents sold by patent drafters. To qualify, the drawing or document must be sold for use in either: (1) patent, trademark, or copyright applications; (2) an application for FDA approval of a medical device; or (3) judicial or quasijudicial proceeding, including mediation and arbitration, relating to a patent, trademark, or copyright. Effective after June 30, 2000.

Article 8, Section 22 authorizes the commissioner of the Department of Revenue to enter into agreements with other states to develop a simplified sales and use tax collection system. The bill also authorizes the state to participate in any temporary pilot project to test the proposed system. A number of states are working together to develop a "no burden" sales tax collection system. This would reduce the burden of sales tax collection on multistate businesses and may enhance the future ability of the states to collect taxes currently due on remote sales. The commissioner is allowed to enter into discussions regarding developing a multistate, streamlined system for collective sales taxes. The commissioner is required to submit a report to the Legislature by March 1, 2002, describing the status of the discussions, the proposed system, if any, and a recommendation on state participation in the proposed system.

Article 9 provides two additional years of exemption (CY 2001 and CY 2002) from the premium tax on HMOs and nonprofit health service corporations; and clarifies that payments under the federal employees health plans are exempt for all types of health plans, extending a tax court ruling that applied to staff model health plans.

Article 10, Special Taxes, includes a provision that clarifies the definition of "amendment' for purposes of the mortgage deed and registry tax.

Article 11 extends the sunset for housing improvement districts and allows development authorities to carry out the operations of these districts. It also makes a number of minor, procedural, and clarifying changes in the tax increment financing ("TIF") law. It simplifies the TIF reporting requirements by combining the two separate statutes requiring TIF financial reporting. The information that must be published in the newspaper is simplified.

Article 12, Federal Update, conforms the Minnesota income tax and other taxes to 1999 changes in the Internal Revenue Code.

Article 13, Section 1, makes explicit the authority of the attorney general to compromise not only tax debts, but also fees, surcharges, and assessments, for any case referred to the attorney general by the commissioner of the Department of Revenue. This section is effective for compromises entered into after the date of final enactment.

Section 2 provides that the commissioner of the Department of Revenue need not obtain an affidavit from the commissioner of the Department of Finance for lost tax refund and sales tax rebate checks, if the replacement check is made out to the same person.

Section 3 clarifies that the commissioner of the Department of Revenue is not required to release tax liens imposed after write-off if a valid balance due remains for any of the periods listed on the lien. This section is effective for debts written off on or after the day following final enactment.

Section 8 makes the revenue recapture notice to the debtor also serve as notice to a spouse who does not owe the debt or court fines, fees, surcharges, and court-ordered restitution. Under current law, if a taxpayer/debtor receives a tax refund in excess of an amount claimed by a state agency under the revenue recapture act, the Revenue Department must notify the taxpayer/debtor of the amount that was claimed by a state agency in payment of a debt to it.

Chapter 497 (H.F. 672/S.F. 702) Real Property Plats
Chapter 497 authorizes county review of plats on real property that is bordering existing or proposed county highways and authorizes dispute resolution between city and county.

Within 30 days after county receipt of the preliminary plat or initial plat filing, the county engineer shall provide written comments stating whether the plat meets county guidelines and describing any necessary modifications. No city or town may approve a preliminary plat until it has received the county engineer's written comments and recommendations or until the county engineer's comment period has expired, whichever occurs first. In the event the city or town does not amend the plat to conform to the recommendations made by the county engineer, representatives from the county and city or town shall meet to discuss the differences and determine whether changes to the plat are appropriate prior to final approval.

Any person who shall dispose of or lease any land included in a plat by reference to the plat before the same is recorded, shall forfeit to the county $100 for each lot, or part of a lot, so disposed of or leased; and any official, land surveyor, or person whose duty it is to comply with any of the provisions of this chapter, shall forfeit not less than $100 for each month during which compliance is delayed.
Effective Date: August 1, 2000.