HF 2247

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:01am

A bill for an act
relating to real estate; establishing homelessness prevention and safer homes and
neighborhoods accounts; requiring a report; appropriating money; amending
Minnesota Statutes 2008, section 82.50, by adding subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 82.50, is amended by adding a subdivision
to read:

new text begin Subd. 12. new text end

new text begin Homelessness prevention and safer homes and neighborhoods
accounts. new text end

new text begin (a) Each closing agent shall maintain a pooled interest-bearing homelessness
prevention and safer homes and neighborhoods trust account for deposit of funds received
at closing. The interest accruing on these trust accounts, less reasonable transaction costs,
must be paid to the commissioner of finance for deposit in the general fund. Payments
to the commissioner are made with the understanding the funds will be used, generally,
to prevent homelessness, particularly through services of the Supreme Court and
through civil legal services, and through public safety services provided by not-for-profit
organizations to promote safety in homes and neighborhoods.
new text end

new text begin (b) Each closing agent shall direct the financial institution to:
new text end

new text begin (1) pay the interest, less reasonable transaction costs, computed in accordance
with the financial institution's standard accounting practice, at least quarterly, to the
commissioner of finance; and
new text end

new text begin (2) send a statement to the commissioner of finance showing the name of the closing
agent for whom the payment is made, the rate of interest applied, the amount of service
charges deducted, and the account balance for the period in which the report is made.
new text end

new text begin The commissioner of finance shall credit the amount collected under this subdivision
to the general fund.
new text end

new text begin (c) The financial institution must promptly notify the commissioner if a draft drawn
on the account is dishonored. A draft is not dishonored if a stop payment order is requested
by an issuer who has a good faith defense to payment on the draft.
new text end

Sec. 2.

Minnesota Statutes 2008, section 82.50, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin Consent to place in special account. new text end

new text begin Trust funds may be placed by the
closing agent in a special account which may be an interest-bearing account or certificate
of deposit if the buyer and the seller consent in writing to the special account and to the
disposition of the trust funds, including any interest thereon.
new text end

Sec. 3. new text begin REPORT.
new text end

new text begin The commissioner of finance shall submit a report to the legislature by January 15,
2011, documenting revenue generated through this account, projections for future revenue,
and recommendations for improving collection of revenue for this account.
new text end

Sec. 4. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Civil legal services. new text end

new text begin $3,000,000 in fiscal year 2010 and $3,000,000
in fiscal year 2011 are appropriated from the general fund to the Supreme Court for
civil legal services related to reducing homelessness and promoting public safety in
neighborhoods. This appropriation is added to the base funding for the Supreme Court for
civil legal services.
new text end

new text begin Subd. 2. new text end

new text begin Housing court. new text end

new text begin $....... in fiscal year 2010 and $....... in fiscal year 2011 are
appropriated from the general fund to the Supreme Court for housing courts and service
efficiency improvements to ease access to housing court services. This appropriation is
added to the base funding for the Supreme Court.
new text end

new text begin Subd. 3. new text end

new text begin Public safety. new text end

new text begin $....... in fiscal year 2010 and $....... in fiscal year 2011
are appropriated from the general fund to the commissioner of public safety for grants
to nonprofit organizations that provide services to promote public safety in homes and
neighborhoods. This appropriation is added to the base funding for the Department of
Public Safety.
new text end