1.1.................... moves to amend H.F. No. .... as follows:
1.2Delete everything after the enacting clause and insert:
1.4COMMERCE AND CONSUMER PROTECTION APPROPRIATIONS
1.5
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Section 1. SUMMARY OF APPROPRIATIONS.
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1.6The amounts shown in this section summarize direct appropriations, by fund, made
1.7in this article.
1.8
|
|
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2014
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2015
|
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Total
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1.9
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General
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$
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43,962,000
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$
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44,226,000
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$
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88,188,000
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1.10
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Special Revenue
|
|
4,898,000
|
|
4,940,000
|
|
9,838,000
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1.11
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Petroleum Tank
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1,052,000
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1,052,000
|
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2,104,000
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1.12
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Workers' Compensation
|
|
751,000
|
|
751,000
|
|
1,502,000
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1.13
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Total
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$
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50,663,000
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$
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50,969,000
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$
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101,632,000
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1.14
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Sec. 2. COMMERCE AND CONSUMER PROTECTION APPROPRIATIONS.
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1.15The sums shown in the columns marked "Appropriations" are appropriated to the
1.16agencies and for the purposes specified in this article. The appropriations are from the
1.17general fund, or another named fund, and are available for the fiscal years indicated
1.18for each purpose. The figures "2014" and "2015" used in this article mean that the
1.19appropriations listed under them are available for the fiscal year ending June 30, 2014, or
1.20June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
1.21year 2015. "The biennium" is fiscal years 2014 and 2015.
1.22
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APPROPRIATIONS
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1.23
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|
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Available for the Year
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1.24
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|
|
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Ending June 30
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1.25
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|
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2014
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2015
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2.1
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Sec. 3. DEPARTMENT OF COMMERCE
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|
|
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2.2
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Subdivision 1.Total Appropriation
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$
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25,480,000
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$
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25,656,000
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2.3
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Appropriations by Fund
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2.4
|
|
2014
|
2015
|
2.5
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General
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23,677,000
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23,853,000
|
2.6
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Petroleum Tank
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1,052,000
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1,052,000
|
2.7
2.8
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Workers'
Compensation
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751,000
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751,000
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2.9The amounts that may be spent for each
2.10purpose are specified in the following
2.11subdivisions.
2.12
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Subd. 2.Financial Institutions
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4,885,000
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4,885,000
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2.13$142,000 each year is for the regulation of
2.14mortgage originators and servicers under
2.15Minnesota Statutes, chapters 58 and 58A.
2.16
2.17
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Subd. 3.Petroleum Tank Release
Compensation Board
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1,052,000
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1,052,000
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2.18This appropriation is from the petroleum
2.19tank fund.
2.20
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Subd. 4.Administrative Services
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6,689,000
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6,865,000
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2.21$375,000 each year is for additional
2.22compliance efforts with unclaimed property.
2.23The commissioner may issue contracts for
2.24these services.
2.25$25,000 each year is for newspaper
2.26advertising directed at persons who own or
2.27may own unclaimed property. By June 30
2.28of each year, the commissioner shall submit
2.29a report to the house and senate committees
2.30with jurisdiction over the department of the
2.31results of the newspaper advertisements in
2.32returning property to the owners.
2.33Fees for the Weights and Measures Unit are
2.34increased by 30 percent during fiscal year
3.12014. All fees are deposited to the general
3.2fund as nondedicated revenue.
3.3Base adjustment. $174,000 in fiscal year
3.42014 and $350,000 in fiscal year 2015 is
3.5added to the base.
3.6
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Subd. 5.Telecommunications
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1,509,000
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1,509,000
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3.7$500,000 each year is for the Broadband
3.8Development Office.
3.9The following transfer is from the
3.10telecommunications access Minnesota
3.11fund. $300,000 the first year and $300,000
3.12the second year and each year thereafter
3.13are for transfer to the commissioner of
3.14human services to supplement the ongoing
3.15operational expenses of the Commission
3.16of Deaf, DeafBlind, and Hard-of-Hearing
3.17Minnesotans.
3.18
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Subd. 6.Enforcement
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4,178,000
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4,178,000
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3.19
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Appropriations by Fund
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3.20
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General
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3,980,000
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3,980,000
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3.21
3.22
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Workers'
Compensation
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198,000
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198,000
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3.23
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Subd. 7.Energy Resources
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3,252,000
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3,252,000
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3.24
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Subd. 8.Insurance
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3,915,000
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3,915,000
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3.25
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Appropriations by Fund
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3.26
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General
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3,362,000
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3,362,000
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3.27
3.28
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Workers'
Compensation
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553,000
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553,000
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3.29
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Sec. 4. PUBLIC UTILITIES COMMISSION
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$
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6,226,000
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$
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6,277,000
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3.30Base adjustment. $48,000 in fiscal year
3.312014 and $99,000 in fiscal year 2015 is
3.32added to the base.
3.33
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Sec. 5. GAMBLING CONTROL
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$
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3,989,000
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$
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4,021,000
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4.1These appropriations are from the lawful
4.2gambling regulation account in the special
4.3revenue fund.
4.4Base adjustment. $30,000 in fiscal year
4.52014 and $62,000 in fiscal year 2015 is
4.6added to the base.
4.7
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Sec. 6. RACING COMMISSION
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$
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909,000
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$
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919,000
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4.8These appropriations are from the racing
4.9and card playing regulation accounts in the
4.10special revenue fund.
4.11Base adjustment. $10,000 in fiscal year
4.122014 and $20,000 in fiscal year 2015 is
4.13added to the base.
4.14
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Sec. 7. STATE LOTTERY
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4.15Notwithstanding Minnesota Statutes, section
4.16349A.10, subdivision 3, the operating budget
4.17must not exceed $30,500,000 in fiscal year
4.182014 and $30,500,000 in fiscal year 2015.
4.19
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Sec. 8. EXPLORE MINNESOTA TOURISM
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$
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14,059,000
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$
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14,096,000
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4.20(a) Of this amount, $12,000 each year is for a
4.21grant to the Upper Minnesota Film Office.
4.22(b)(1) To develop maximum private sector
4.23involvement in tourism, $500,000 in fiscal
4.24year 2014 and $500,000 in fiscal year 2015
4.25must be matched by Explore Minnesota
4.26Tourism from nonstate sources. Each $1 of
4.27state incentive must be matched with $6 of
4.28private sector funding. Cash match is defined
4.29as revenue to the state or documented cash
4.30expenditures directly expended to support
4.31Explore Minnesota Tourism programs. Up
4.32to one-half of the private sector contribution
5.1may be in-kind or soft match. The incentive
5.2in fiscal year 2014 shall be based on fiscal
5.3year 2013 private sector contributions. The
5.4incentive in fiscal year 2015 shall be based on
5.5fiscal year 2014 private sector contributions.
5.6This incentive is ongoing.
5.7(2) Funding for the marketing grants is
5.8available either year of the biennium.
5.9Unexpended grant funds from the first year
5.10are available in the second year.
5.11(3) Unexpended money from the general
5.12fund appropriations made under this section
5.13does not cancel but must be placed in a
5.14special marketing account for use by Explore
5.15Minnesota Tourism for additional marketing
5.16activities.
5.17(c) $325,000 in fiscal year 2014 and $325,000
5.18in fiscal year 2015 are for the Minnesota
5.19Film and TV Board. The appropriation in
5.20each year is available only upon receipt by
5.21the board of $1 in matching contributions
5.22of money or in-kind contributions from
5.23nonstate sources for every $3 provided by
5.24this appropriation, except that each year up
5.25to $50,000 is available on July 1 even if the
5.26required matching contribution has not been
5.27received by that date.
5.28(d) Base adjustment. $34,000 in fiscal
5.29year 2014 and $71,000 in fiscal year 2015
5.30is added to the base.
5.32COMMERCE AND CONSUMER PROTECTION POLICY
5.33 Section 1. Minnesota Statutes 2012, section 60A.14, subdivision 1, is amended to read:
6.1 Subdivision 1.
Fees other than examination fees. In addition to the fees and
6.2charges provided for examinations, the following fees must be paid to the commissioner
6.3for deposit in the general fund:
6.4(a) by township mutual fire insurance companies;
6.5(1) for filing certificate of incorporation $25 and amendments thereto, $10;
6.6(2) for filing annual statements, $15;
6.7(3) for each annual certificate of authority, $15;
6.8(4) for filing bylaws $25 and amendments thereto, $10;
6.9(b) by other domestic and foreign companies including fraternals and reciprocal
6.10exchanges;
6.11(1) for filing an application for an initial certification of authority to be admitted
6.12to transact business in this state, $1,500;
6.13(2) for filing certified copy of certificate of articles of incorporation, $100;
6.14(3) for filing annual statement, $225;
6.15(4) for filing certified copy of amendment to certificate or articles of incorporation,
6.16$100;
6.17(5) for filing bylaws, $75 or amendments thereto, $75;
6.18(6) for each company's certificate of authority, $575, annually;
6.19(c) the following general fees apply:
6.20(1) for each certificate, including certified copy of certificate of authority, renewal,
6.21valuation of life policies, corporate condition or qualification, $25;
6.22(2) for each copy of paper on file in the commissioner's office 50 cents per page,
6.23and $2.50 for certifying the same;
6.24(3) for license to procure insurance in unadmitted foreign companies, $575;
6.25(4) for valuing the policies of life insurance companies, one cent per $1,000 of
6.26insurance so valued, provided that the fee shall not exceed $13,000 per year for any
6.27company. The commissioner may, in lieu of a valuation of the policies of any foreign life
6.28insurance company admitted, or applying for admission, to do business in this state, accept
6.29a certificate of valuation from the company's own actuary or from the commissioner of
6.30insurance of the state or territory in which the company is domiciled;
6.31(5) for receiving and filing certificates of policies by the company's actuary, or by
6.32the commissioner of insurance of any other state or territory, $50;
6.33(6) for each appointment of an agent filed with the commissioner,
$10 $30;
6.34(7) for filing forms, rates, and compliance certifications under section
60A.315, $140
6.35per filing, or $125 per filing when submitted via electronic filing system. Filing fees
7.1may be paid on a quarterly basis in response to an invoice. Billing and payment may
7.2be made electronically;
7.3(8) for annual renewal of surplus lines insurer license, $300.
7.4The commissioner shall adopt rules to define filings that are subject to a fee.
7.5 Sec. 2.
[161.462] FIBER COLLABORATION DATABASE.
7.6 Subdivision 1. Purpose. The purpose of the fiber collaboration database is
7.7to provide broadband providers with advance notice of upcoming Department of
7.8Transportation construction projects, so that they may notify the department of their
7.9interest in installing broadband infrastructure within the right-of-way during construction
7.10in order to minimize installation costs.
7.11 Subd. 2. Database. (a) The Department of Transportation shall post on its Web site,
7.12and update annually, the list of upcoming construction projects contained in its statewide
7.13transportation improvement program, including, for each project:
7.14(1) the geographical location where construction will occur;
7.15(2) the estimated start and end dates of construction; and
7.16(3) a description of the nature of the construction project.
7.17(b) The department shall post this information as far in advance of the beginning of
7.18construction as is feasible.
7.19(c) The department's Web site shall allow a provider of broadband service to register
7.20to receive from the department electronic information on proposed construction projects
7.21added to the database in specific geographical areas of the state as soon as it is updated.
7.22EFFECTIVE DATE.This section is effective the day following final enactment.
7.23 Sec. 3. Minnesota Statutes 2012, section 237.012, subdivision 3, is amended to read:
7.24 Subd. 3.
Annual reports. The commissioner of commerce must annually by
7.25February 10 report on the achievement of the goals under subdivisions 1 and 2 to the chairs
7.26and ranking minority members of the legislative committees with primary jurisdiction
7.27over telecommunication issues.
The report must also suggest policies, incentives, and
7.28legislation designed to accelerate the achievement of the goals. The report on goals under
7.29subdivision 1 must be made through 2015.
7.30EFFECTIVE DATE.This section is effective the day following final enactment.
7.31 Sec. 4.
[237.85] OFFICE OF BROADBAND DEVELOPMENT.
8.1 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
8.2have the meanings given them.
8.3(b) "Broadband" or "broadband service" means any service providing advanced
8.4telecommunications capability and Internet access with transmission speeds that, at a
8.5minimum, meet the Federal Communications Commission definition for broadband.
8.6(c) "Local unit of government" has the meaning given in section 116G.03,
8.7subdivision 3.
8.8(d) "Office" means the Office of Broadband Development established in subdivision
8.92, paragraph (a).
8.10 Subd. 2. Office established; purpose. (a) An Office of Broadband Development is
8.11established within the Department of Commerce.
8.12(b) The purpose of the office is to encourage, foster, develop, and improve broadband
8.13within the state in order to:
8.14(1) drive job creation, promote innovation, and expand markets for Minnesota
8.15businesses;
8.16(2) serve the ongoing and growing needs of Minnesota's education systems, health
8.17care system, public safety system, industries and businesses, governmental operations,
8.18and citizens; and
8.19(3) improve accessibility for underserved communities and populations.
8.20 Subd. 3. Organization. The office shall consist of a director of the Office of
8.21Broadband Development, as well as any staff necessary to carry out the office's duties
8.22under subdivision 4.
8.23 Subd. 4. Duties. The office shall have the power and duty to:
8.24(1) serve as the central broadband planning body for the state of Minnesota;
8.25(2) coordinate with state, regional, local, and private entities to develop, to the
8.26maximum extent practicable, a uniform statewide broadband access and usage policy;
8.27(3) develop, recommend, and implement a statewide plan to encourage cost-effective
8.28broadband access, and to make recommendations for increased usage, particularly in
8.29rural and other underserved areas;
8.30(4) coordinate efforts, in consultation and cooperation with the commissioner of
8.31commerce, local units of government, and private entities, to meet the state's broadband
8.32goals in section 237.012;
8.33(5) develop, coordinate, and implement the state's broadband infrastructure
8.34development program under section 237.90;
9.1(6) provide consultation services to local units of government or other project
9.2sponsors in connection with the planning, acquisition, improvement, construction, or
9.3development of any broadband deployment project;
9.4(7) encourage public-private partnerships to increase deployment and adoption
9.5of broadband services and applications, including recommending funding options and
9.6possible incentives to encourage investment in broadband expansion;
9.7(8) monitor the broadband development efforts of other states and nations in areas
9.8such as business, education, public safety, and health;
9.9(9) monitor broadband-related activities at the federal level, including regulatory and
9.10policy changes and the potential impact on broadband deployment and sustainability in
9.11the state;
9.12(10) serve as an information clearinghouse for federal programs providing financial
9.13assistance to institutions located in rural areas seeking to obtain access to high speed
9.14broadband service, and use this information as an outreach tool to make institutions
9.15located in rural areas that are unserved or underserved with respect to broadband service
9.16aware of the existence of federal assistance;
9.17(11) coordinate an ongoing collaborative effort of stakeholders to evaluate and
9.18address security, vulnerability, and redundancy issues important to ensure the reliability
9.19of broadband networks;
9.20(12) provide an annual report, as required by subdivision 5; and
9.21(13) perform any other activities consistent with the office's purpose.
9.22 Subd. 5. Reporting. (a) Beginning on January 15, 2014, and each year thereafter,
9.23the Office of Broadband Development shall report to the legislative committees having
9.24jurisdiction over telecommunications policy and finance on the office's activities during
9.25the previous year.
9.26(b) The report shall contain, at a minimum:
9.27(1) an analysis of the current availability and use of broadband, including average
9.28broadband speeds, within the state;
9.29(2) information gathered from schools, libraries, hospitals, and public safety
9.30facilities across the state, determining the actual speed and capacity of broadband currently
9.31in use and the need, if any, for increases in speed and capacity to meet basic needs;
9.32(3) an analysis of incumbent broadband infrastructure within the state and its ability
9.33to spur economic development;
9.34(4) an analysis of the degree to which new, additional, or improved broadband
9.35infrastructure would spur economic development in the state;
10.1(5) a summary of the office's activities in coordinating broadband infrastructure
10.2development under section 237.90;
10.3(6) any proposed legislative and policy initiatives; and
10.4(7) any other information requested by the legislative committees having jurisdiction
10.5over telecommunications policy and finance, or that the office deems necessary.
10.6(c) The report may be submitted electronically and is subject to section 3.195,
10.7subdivision 1.
10.8EFFECTIVE DATE.This section is effective the day following final enactment.
10.9 Sec. 5.
[237.90] COORDINATION OF BROADBAND INFRASTRUCTURE
10.10DEVELOPMENT.
10.11 Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
10.12have the meanings given them.
10.13(b) "Broadband" or "broadband service" has the meaning given in section 237.85,
10.14subdivision 1, paragraph (b).
10.15(c) "Broadband conduit" means a conduit, pipe, innerduct, or microduct for fiber
10.16optic or other cables that support broadband and wireless facilities for broadband service.
10.17(d) "Local unit of government" has the meaning given in section 116G.03,
10.18subdivision 3.
10.19(e) "Office" means the Office of Broadband Development established in section
10.20237.85.
10.21 Subd. 2. Broadband infrastructure development. (a) The office shall, in
10.22collaboration with the Department of Transportation and private entities, encourage and
10.23coordinate "dig once" efforts for the planning, relocation, installation, or improvement of
10.24broadband conduit within the right-of-way in conjunction with any current or planned
10.25construction, including, but not limited to, trunk highways and bridges. To the extent
10.26necessary, the office shall, in collaboration with the Department of Transportation,
10.27evaluate engineering and design standards, procedures and criteria for contracts or lease
10.28agreements with private entities, and pricing requirements, and provide for allocation
10.29of risk, costs, and any revenue generated.
10.30(b) The office shall, in collaboration with other state departments and agencies as the
10.31office deems necessary, develop a strategy to facilitate the timely and efficient deployment
10.32of broadband conduit or other broadband facilities on state-owned lands and buildings.
10.33(c) To the extent practicable, the office shall encourage and assist local units of
10.34government to adopt and implement policies similar to those under paragraphs (a) and (b)
10.35for construction or other improvements to county state-aid highways, municipal state-aid
11.1roads, and any other rights-of-way under the local unit of government's jurisdiction, and to
11.2other lands or buildings owned by the local unit of government.
11.3(d) Special consideration must be paid to projects under this subdivision that will
11.4likely improve access to broadband by rural or underserved communities.
11.5 Subd. 3. Reporting. As part of its annual report under section 237.85, subdivision
11.65, the office shall report on activities taken under this section, including, but not limited to,
11.7the number of current and planned projects using the "dig once" approach, any gains in
11.8broadband speed or access associated with the project, and any costs or cost savings to
11.9the state, private entity, or end user of broadband services.
11.10 Subd. 4. No right of action. Nothing in this section shall be construed to create
11.11any right or benefit, substantive or procedural, enforceable at law or in equity by any
11.12party against the state of Minnesota, its departments, agencies, or entities, its officers,
11.13employees, or agents, or any other person.
11.14EFFECTIVE DATE.This section is effective the day following final enactment.
11.15 Sec. 6. Minnesota Statutes 2012, section 239.101, subdivision 3, is amended to read:
11.16 Subd. 3.
Petroleum inspection fee; appropriation, uses. (a) An inspection fee
11.17is imposed (1) on petroleum products when received by the first licensed distributor,
11.18and (2) on petroleum products received and held for sale or use by any person when the
11.19petroleum products have not previously been received by a licensed distributor. The
11.20petroleum inspection fee is $1 for every 1,000 gallons received. The commissioner of
11.21revenue shall collect the fee. The revenue from
81 89 cents of the fee is appropriated to
11.22the commissioner of commerce for the cost of operations of the Division of Weights and
11.23Measures, petroleum supply monitoring, and to make grants to providers of low-income
11.24weatherization services to install renewable energy equipment in households that are
11.25eligible for weatherization assistance under Minnesota's weatherization assistance
11.26program state plan. The remainder of the fee must be deposited in the general fund.
11.27 (b) The commissioner of revenue shall credit a person for inspection fees previously
11.28paid in error or for any material exported or sold for export from the state upon filing of a
11.29report as prescribed by the commissioner of revenue.
11.30 (c) The commissioner of revenue may collect the inspection fee along with any
11.31taxes due under chapter 296A.
11.32 Sec. 7.
[297I.11] AUTOMOBILE THEFT PREVENTION SURCHARGE.
11.33 Subdivision 1. Surcharge. Each insurer engaged in the writing of policies of
11.34automobile insurance shall collect a surcharge, at the rate of 50 cents per vehicle
12.1for every six months of coverage, on each policy of automobile insurance providing
12.2comprehensive insurance coverage issued or renewed in this state. The surcharge may not
12.3be considered premium for any purpose, including the computation of premium tax or
12.4agents' commissions. The amount of the surcharge must be separately stated on either a
12.5billing or policy declaration sent to an insured. Insurers shall remit the revenue derived
12.6from this surcharge to the commissioner of revenue for purposes of the automobile theft
12.7prevention program described in section 65B.84. For purposes of this subdivision, "policy
12.8of automobile insurance" has the meaning given it in section 65B.14, covering only the
12.9following types of vehicles as defined in section 168.002:
12.10(1) a passenger automobile;
12.11(2) a pickup truck;
12.12(3) a van but not commuter vans as defined in section 168.126; or
12.13(4) a motorcycle,
12.14except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included
12.15within this definition.
12.16 Subd. 2. Automobile theft prevention account. A special revenue account in
12.17the state treasury shall be credited with the proceeds of the surcharge imposed under
12.18subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to
12.19the general fund. Revenues in excess of $1,300,000 each year may be used only for the
12.20automobile theft prevention program described in section 65B.84.
12.21 Subd. 3. Collection and administration. The commissioner shall collect and
12.22administer the surcharge imposed by this section in the same manner as the taxes imposed
12.23by this chapter.
12.24EFFECTIVE DATE.This section is effective for premiums collected after June
12.2530, 2013.
12.26 Sec. 8. Minnesota Statutes 2012, section 297I.30, is amended by adding a subdivision
12.27to read:
12.28 Subd. 10. Automobile theft prevention surcharge. On or before May 1, August
12.291, November 1, and February 1 of each year, every insurer required to pay the surcharge
12.30under section 297I.11 shall file a return with the commissioner for the preceding
12.31three-month period ending March 31, June 30, September 30, and December 31, in the
12.32form prescribed by the commissioner.
12.33EFFECTIVE DATE.This section is effective for premiums collected after June
12.3430, 2013.
13.1 Sec. 9. Minnesota Statutes 2012, section 507.235, subdivision 2, is amended to read:
13.2 Subd. 2.
Penalty for failure to file. (a) A vendee who fails to record a contract for
13.3deed, as required by subdivision 1, is subject to a civil penalty, payable under subdivision
13.45, equal to two percent of the principal amount of the contract debt
, unless the vendee
13.5has not received a copy of the contract for deed in recordable form, as required under
13.6subdivision 1a. Payments of the penalty shall be deposited in the general fund of the
13.7county. The penalty may be enforced as a lien against the vendee's interest in the property.
13.8(b) A person receiving an assignment of a vendee's interest in a contract for deed
13.9who fails to record the assignment as required by subdivision 1 is subject to a civil penalty,
13.10payable under subdivision 5, equal to two percent of the original principal amount of the
13.11contract debt. Payments of the penalty must be deposited in the general fund of the county.
13.12The penalty may be enforced as a lien against the vendee's interest in the property.
13.13 Sec. 10.
[559.201] DEFINITIONS.
13.14 Subdivision 1. Application. The definitions in this section apply to section 559.202.
13.15 Subd. 2. Business day. "Business day" means any day other than a Saturday,
13.16Sunday, or holiday as defined in section 645.44, subdivision 5.
13.17 Subd. 3. Family farm security loan. "Family farm security loan" has the meaning
13.18given in Minnesota Statutes 2008, section 41.52, subdivision 5.
13.19 Subd. 4. Multiple seller. "Multiple seller" means a person that has acted as the
13.20seller during the 12-month period that precedes either: (1) the date on which the purchaser
13.21executes a purchase agreement under section 559.202; or (2) if there is no purchase
13.22agreement, the date on which the purchaser executes a contract for deed under section
13.23559.202.
13.24 Subd. 5. Person. "Person" means a natural person, partnership, corporation, limited
13.25liability company, association, trust, or other legal entity, however organized.
13.26 Subd. 6. Purchase agreement. "Purchase agreement" means a purchase agreement
13.27for a contract for deed, an earnest money contract, or an executed option contemplating
13.28that, at closing, the seller and the purchaser will enter into a contract for deed.
13.29 Subd. 7. Purchaser. "Purchaser" means a natural person who enters into a contract
13.30for deed to purchase residential real property. Purchaser includes all purchasers who enter
13.31into the same contract for deed to purchase residential real property.
13.32 Subd. 8. Residential real property. "Residential real property" means real property
13.33improved or intended to be improved by a structure designed principally for the occupancy
13.34of one to four families, whether or not the owner occupies the real property. Residential
13.35real property does not include property subject to sections 583.20 to 583.32.
14.1 Sec. 11.
[559.202] CONTRACTS FOR DEED INVOLVING RESIDENTIAL
14.2PROPERTY.
14.3 Subdivision 1. Notice required. (a) A multiple seller must deliver the notice
14.4specified under subdivision 3 to a prospective purchaser as provided under this subdivision.
14.5(b) If there is a purchase agreement, the notice required by subdivision 2 must be
14.6affixed to the front of the purchase agreement. A contract for deed for which notice is
14.7required under this subdivision may not be executed for five business days following
14.8the execution of the purchase agreement and delivery of the notice and instructions for
14.9cancellation.
14.10(c) If there is no purchase agreement, a multiple seller must deliver the notice in a
14.11document separate from any other document or writing to a prospective purchaser no less
14.12than five business days before the prospective purchaser executes the contract for deed.
14.13(d) The notice must be:
14.14(1) written in at least 12-point type; and
14.15(2) signed and dated by the purchaser.
14.16(e) If a dispute arises concerning whether or when the notice required by this
14.17subdivision was provided to the purchaser, there is a rebuttable presumption that the notice
14.18was not provided unless the original executed contract for deed contains the following
14.19statement: "By initialing here ....... purchaser acknowledges receipt at least five business
14.20days before signing this contract for deed of the disclosure statement entitled "Important
14.21Information About Contracts for Deed" required by Minnesota Statutes, section 559.202,
14.22subdivision 3."
14.23 Subd. 2. Exception. This section does not apply if the purchaser is represented
14.24throughout the transaction by either:
14.25(1) a person licensed to practice law in this state; or
14.26(2) a person licensed as a real estate broker or salesperson under chapter 82,
14.27provided that the representation does not create a dual agency, as that term is defined
14.28in section 82.55, subdivision 6.
14.29 Subd. 3. Content of the notice. The notice must contain the following verbatim
14.30language:
14.31"IMPORTANT INFORMATION ABOUT CONTRACTS FOR DEED
14.32Know What You Are Getting Into
14.33(1) A contract for deed is a complex legal agreement. You are NOT a tenant. The
14.34foreclosure laws don't apply.
14.35(2) You should know ALL of your obligations and rights before you sign a purchase
14.36agreement or contract for deed.
15.1(3) You (seller must circle one):
15.2
|
(a)
|
DO
|
DO NOT
|
have to pay homeowner's insurance.
|
15.3
|
(b)
|
DO
|
DO NOT
|
have to pay property taxes.
|
15.4
15.5
|
(c)
|
DO
|
DO NOT
|
have to make and pay for some or all of the repairs or
maintenance.
|
15.6(4) After some time, you may need to make a large lump sum payment (called a "balloon
15.7payment"). Know when it is due and how much it will be. You'll probably need to get a
15.8new mortgage loan from a bank at that time.
15.9(5) If you miss just a single payment or can't make the balloon payment, the seller can
15.10cancel your contract. You will likely lose all the money you have already paid. You will
15.11likely lose your ability to purchase the home. The seller can begin an eviction action
15.12against you in just a few months.
15.13Key Things to Do Before You Sign
15.14(1) Get advice from a lawyer or the Minnesota Home Ownership Center at
15.151-866-462-6466. To find a lawyer through the Minnesota State Bar Association, go to
15.16www.mnfindalawyer.com.
15.17(2) Get an independent, professional appraisal of the property to learn what it is worth.
15.18(3) Get an independent, professional inspection of the property.
15.19(4) Buy title insurance or ask a real estate lawyer for a "title opinion."
15.20(5) Check with the city or county to find out if there are inspection reports or unpaid
15.21utility bills.
15.22(6) Check with a title company or the county where the property is located to find out if
15.23there is a mortgage or other lien on the property and if the property taxes have been paid.
15.24If You Are Entering into a Purchase Agreement
15.25(1) If you haven't already signed the contract for deed, you can cancel the purchase
15.26agreement (and get all your money back) if you do so within five business days after
15.27getting this notice.
15.28(2) To cancel the purchase agreement, you must follow the provisions of Minnesota
15.29Statutes, section 559.217, subdivision 4. Ask a lawyer for help."
15.30 Subd. 4. Right to cancel purchase agreement. (a) A prospective purchaser may
15.31cancel a purchase agreement within five business days after actually receiving the notice
15.32required under subdivision 1 if a multiple seller fails to timely deliver the notice, provided
15.33that the contract for deed has not been executed by all parties.
15.34(b) A prospective purchaser may cancel the purchase agreement in accordance with
15.35the provisions of section 559.217, subdivision 4.
15.36(c) In the event of cancellation, the multiple seller may not impose a penalty and must
15.37promptly refund all payments made by the prospective purchaser prior to cancellation.
16.1 Subd. 5. Remedies for failure to timely deliver notices. (a) Notwithstanding
16.2any contrary provision in the purchase agreement or contract for deed, a purchaser has
16.3a private right of action against a multiple seller who fails to timely deliver the notice
16.4required under subdivision 1. The multiple seller is liable to the purchaser for:
16.5(1) the greater of actual damages or statutory damages of $2,500; and
16.6(2) reasonable attorney fees and court costs.
16.7(b) At the purchaser's option an amount not to exceed $2,500 may be applied
16.8to offset outstanding contract installment payments past due or next due under the
16.9contract for deed. The right to offset expires upon cancellation of the contract for deed in
16.10accordance with applicable law. Recording of the documents specified in section 559.213
16.11constitutes prima facie evidence that any right to offset under this subdivision has expired.
16.12(c) A multiple seller who knowingly fails to timely deliver the notice required
16.13under subdivision 1 is liable to the purchaser for triple the actual or statutory damages
16.14available under paragraph (a), whichever is greater, provided that the purchaser must elect
16.15the remedy provided under either paragraph (b) or this paragraph and may not recover
16.16damages under both paragraphs.
16.17(d) The rights and remedies provided in this subdivision are cumulative to, and not
16.18a limitation of, any other rights and remedies provided under law. Any action brought
16.19pursuant to this subdivision must be commenced within four years from the date of the
16.20alleged violation.
16.21 Subd. 6. Duty of multiple seller to account. Upon reasonable request by the
16.22purchaser and no more than once every 12-month period, a multiple seller must provide an
16.23accounting of all payments made pursuant to the contract for deed, the amount of interest
16.24paid, and the amount remaining to satisfy the principal balance under the contract.
16.25 Subd. 7. No waiver. The provisions of this section may not be waived.
16.26EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
16.27transactions in which the contract for deed and the purchase agreement for the contract
16.28for deed, if any, were both executed on or after that date.
16.29 Sec. 12. Minnesota Statutes 2012, section 559.211, subdivision 2, is amended to read:
16.30 Subd. 2.
Remedies additional. The remedies provided in this section are in
16.31addition to and do not limit other rights or remedies available to purchasers or vendors of
16.32real estate.
Subject to the provisions of sections 559.213 and 559.217, subdivision 7, this
16.33section shall not be construed to bar a court from determining the validity, effectiveness,
16.34or consequences of proceeding under section 559.21 or 559.217, or granting other relief in
17.1connection therewith, by reason of the failure of a purchaser to seek or obtain relief under
17.2this section prior to the purported effective date of the termination of the contract.
17.3 Sec. 13.
STATE BROADBAND STRATEGY; REPORT.
17.4The Office of Broadband Development shall conduct research and produce a report
17.5recommending a set of programs and strategies the state can pursue to promote the
17.6improvement, more efficient and effective use, and expansion of broadband services in
17.7ways that will have the greatest impact on the state's economic development, by which is
17.8meant enhancing the ability of Minnesota citizens and businesses to develop their skills,
17.9to expand businesses to new markets, develop new products, reach more customers, and
17.10lower costs. While the state's broadband goals in section 237.012 address the universal
17.11provision of greater broadband access and speed statewide, this report must consider
17.12broadband as an economic development tool and must examine and analyze:
17.13(1) how the state can best use its limited resources to adopt strategies and make
17.14investments to improve the use of broadband services by subgroups of broadband users,
17.15including mobile broadband users, that promise to deliver the greatest economic impact
17.16per dollar of state investment;
17.17(2) roles the state can play in addition to financial assistance for broadband
17.18infrastructure, including supporting education and training for Minnesotans to enable
17.19them to use broadband more effectively; and
17.20(3) strategies and opportunities for state investment to leverage additional amounts
17.21of private capital and financial assistance from the federal government in order to achieve
17.22these goals.
17.23By January 15, 2014, the office shall submit the report to the chairs and ranking minority
17.24members of the senate and house committees with jurisdiction over telecommunications
17.25issues.
17.26EFFECTIVE DATE.This section is effective the day following final enactment.
17.27 Sec. 14.
REPEALER.
17.28Minnesota Statutes 2012, section 507.235, subdivision 4, is repealed effective the
17.29day following final enactment."
17.30Delete the title and insert:
17.32relating to commerce; appropriating money for commerce and consumer
17.33protection; modifying and providing for certain fees and surcharges; establishing
17.34notice for contracts for deed involving residential property; providing remedies;
17.35establishing the Office of Broadband Development in the Department of
17.36Commerce and assigning it duties; requiring the Department of Transportation
18.1to post a database on its Web site; requiring reports;amending Minnesota
18.2Statutes 2012, sections 60A.14, subdivision 1; 237.012, subdivision 3; 239.101,
18.3subdivision 3; 297I.30, by adding a subdivision; 507.235, subdivision 2; 559.211,
18.4subdivision 2; proposing coding for new law in Minnesota Statutes, chapters
18.5161; 237; 297I; 559; repealing Minnesota Statutes 2012, section 507.235,
18.6subdivision 4."