SF 1360

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; regulating unclaimed property
held by cooperatives and the right to receive or
recover unclaimed property; modifying public notice
requirements; regulating certain abandoned tangible
personal property; amending Minnesota Statutes 2004,
sections 308A.711, subdivisions 1, 3; 308B.735,
subdivisions 1, 3; 345.42, subdivision 1; 345.46;
proposing coding for new law in Minnesota Statutes,
chapter 345; repealing Minnesota Statutes 2004,
sections 308A.711, subdivision 2; 308B.735,
subdivision 2; 345.42, subdivisions 2, 3.

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

Section 1.

Minnesota Statutes 2004, section 308A.711,
subdivision 1, is amended to read:

Subdivision 1.

Alternate procedure to disburse property.

Notwithstanding the provisions of section 345.43, a cooperative
may, in lieu of paying or delivering to the commissioner of
commerce the unclaimed property specified in its report of
unclaimed property, distribute the unclaimed property to a
corporation or organization that is exempt from taxation under
section 290.05, subdivision 1, paragraph (b), or 2. deleted text begin A
cooperative making the election to distribute unclaimed property
shall, within 85 days following the publication of lists of
abandoned property, file with the commissioner of commerce:
deleted text end

deleted text begin (1) a verified written explanation of the proof of claim of
an owner establishing a right to receive the abandoned property;
deleted text end

deleted text begin (2) any errors in the presumption of abandonment;
deleted text end

deleted text begin (3) the name, address, and exemption number of the
corporation or organization to which the property was or is to
be distributed; and
deleted text end

deleted text begin (4) the approximate date of distribution.
deleted text end

Sec. 2.

Minnesota Statutes 2004, section 308A.711,
subdivision 3, is amended to read:

Subd. 3.

Owner's right extinguished on disbursement.

The
right of an owner to unclaimed property held by a cooperative is
extinguished when the property is disbursed by the cooperative
to a tax-exempt organization deleted text begin in accordance with this
section. deleted text end new text begin if: (1) notice that the payment is available has been
mailed to the last known address of the person shown by the
records to be entitled to the property; or (2) the address is
unknown, notice is published in an official publication of the
cooperative.
new text end

Sec. 3.

Minnesota Statutes 2004, section 308B.735,
subdivision 1, is amended to read:

Subdivision 1.

Alternate procedure to disburse property.

A cooperative may, in lieu of paying or delivering to the state
the unclaimed property specified in its report of unclaimed
property, distribute the unclaimed property to a business entity
or organization that is exempt from taxation. deleted text begin A cooperative
making the election to distribute unclaimed property shall file
with the Department of Commerce:
deleted text end

deleted text begin (1) a verified written explanation of the proof of claim of
an owner establishing a right to receive the abandoned property;
deleted text end

deleted text begin (2) any error in the presumption of abandonment;
deleted text end

deleted text begin (3) the name, address, and exemption number of the business
entity or organization to which the property was or is to be
distributed; and
deleted text end

deleted text begin (4) the approximate date of distribution.
deleted text end

Sec. 4.

Minnesota Statutes 2004, section 308B.735,
subdivision 3, is amended to read:

Subd. 3.

Owner's right extinguished on disbursement.

The
right of an owner to unclaimed property held by a cooperative is
extinguished when the property is disbursed by the cooperative
to a tax exempt organization deleted text begin in accordance with this
section. deleted text end new text begin if: (1) notice that the payment is available has been
mailed to the last known address of the person shown by the
records to be entitled to the property; or (2) the address is
unknown, notice is published in an official publication of the
cooperative.
new text end

Sec. 5.

Minnesota Statutes 2004, section 345.42,
subdivision 1, is amended to read:

Subdivision 1.

Commissioner's duty deleted text begin to publish deleted text end .

Within
the calendar year next following the year in which abandoned
property has been paid or delivered to the commissioner, the
commissioner shall deleted text begin cause notice to be published at least once
but not more than twice in an English language newspaper of
general circulation in the county in this state in which is
located the last known address of any person to be named in the
notice. If no address is listed or if the address is outside
this state, the notice shall be published in the county in which
the holder of the abandoned property has a principal place of
business within this state deleted text end new text begin provide public notice of the
abandoned property in the manner and frequency the commissioner
determines to be most effective and efficient in communicating
to the persons appearing to be owners of this property. Public
notice may include the use of print, broadcast, or electronic
media new text end . new text begin The commissioner shall, at a minimum, expend 15 percent
of the funds allocated by the legislature to the operations of
the unclaimed property division, to comply with the public
notice requirements of this subdivision.
new text end

Sec. 6.

Minnesota Statutes 2004, section 345.46, is
amended to read:

345.46 PERIOD OF LIMITATION deleted text begin NOT A BAR deleted text end .

new text begin (a) new text end The expiration of deleted text begin any deleted text end new text begin a new text end period of deleted text begin time specified by
statute or court order, during which an action or proceeding may
be commenced or enforced to obtain payment of a claim for money
or recovery of property, shall not prevent the money or property
from being presumed abandoned property, nor affect any duty to
file a report required by sections 345.31 to 345.60 or to pay or
deliver abandoned property to the commissioner. deleted text end new text begin limitation on
the owner's right to receive or recover property, whether
specified by contract, statute, or court order, does not
preclude the property from being presumed abandoned or affect a
duty to file a report or to pay or deliver or transfer property
to the administrator as required by sections 345.31 to 345.60.
This paragraph applies to any expiration of a period of
limitations that occurs whether before or after the effective
date of sections 345.31 to 345.60.
new text end

new text begin (b) An action or proceeding may not be maintained by the
administrator to enforce sections 345.31 to 345.60 in regard to
the reporting, delivery, or payment of property more than ten
years after the holder specifically identified the property in a
report filed with the administrator or gave express notice to
the administrator of a dispute regarding the property. In the
absence of such a report or other express notice, the period of
limitation is tolled. The period of limitation is also tolled
by the filing of a report that is fraudulent.
new text end

Sec. 7.

new text begin [345.81] ABANDONED TANGIBLE PERSONAL PROPERTY.
new text end

new text begin The ownership of abandoned tangible personal property that
is not subject to any other provision of statute may be
transferred as provided by this section.
new text end

new text begin If property has not been removed within six months after it
comes into the possession of a person, it is abandoned and shall
become the property of the person in possession, after notice to
the prior owner. Thirty days' notice that the time period has
elapsed and that the ownership will be transferred at the end of
the 30 days shall be given to the prior owner personally or by
certified mail, which is actually received. If the name of the
prior owner is not known, and cannot be ascertained with
reasonable diligence, three weeks' published notice shall be
given in the county where the property is located. The prior
owner or another person claiming an interest in the property may
petition the district court to stay the transfer of ownership
for a reasonable period to allow the removal of the property.
The transfer is stayed while the petition is pending before the
court.
new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 308A.711, subdivision 2;
308B.735, subdivision 2; and 345.42, subdivisions 2 and 3, are
repealed.
new text end