HF 1682

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/08/2013 04:03pm

A bill for an act
relating to commerce; appropriating money for commerce and consumer
protection; modifying and providing for certain fees; establishing notice
for contracts for deed involving residential property; providing remedies;
establishing the Office of Broadband Development in the Department of
Commerce and assigning it duties; requiring the Department of Transportation
to post a database on its Web site; requiring reports; amending Minnesota
Statutes 2012, sections 60A.14, subdivision 1; 237.012, subdivision 3; 239.101,
subdivision 3; 507.235, subdivision 2; 559.211, subdivision 2; Laws 2011, First
Special Session chapter 2, article 2, section 3, subdivision 4; proposing coding
for new law in Minnesota Statutes, chapters 161; 237; 559; repealing Minnesota
Statutes 2012, section 507.235, subdivision 4.

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

ARTICLE 1

COMMERCE AND CONSUMER PROTECTION APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2014 new text end		new text begin 2015 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 43,962,000 new text end	new text begin $ new text end	new text begin 44,226,000 new text end	new text begin $ new text end	new text begin 88,188,000 new text end
new text begin Special Revenue new text end		new text begin 4,898,000 new text end		new text begin 4,940,000 new text end		new text begin 9,838,000 new text end
new text begin Petroleum Tank new text end		new text begin 1,052,000 new text end		new text begin 1,052,000 new text end		new text begin 2,104,000 new text end
new text begin Workers' Compensation new text end		new text begin 751,000 new text end		new text begin 751,000 new text end		new text begin 1,502,000 new text end
new text begin Lottery Prize Fund new text end		new text begin 225,000 new text end		new text begin 225,000 new text end		new text begin 450,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 50,888,000 new text end	new text begin $ new text end	new text begin 51,194,000 new text end	new text begin $ new text end	new text begin 102,082,000 new text end

Sec. 2. new text begin COMMERCE AND CONSUMER PROTECTION APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2014" and "2015" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2014, or
June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
year 2015. "The biennium" is fiscal years 2014 and 2015.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2014 new text end		new text begin 2015 new text end

Sec. 3. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 25,480,000 new text end

new text begin $ new text end

new text begin 25,656,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2014 new text end	new text begin 2015 new text end
new text begin General new text end	new text begin 23,677,000 new text end	new text begin 23,853,000 new text end
new text begin Petroleum Tank new text end	new text begin 1,052,000 new text end	new text begin 1,052,000 new text end
new text begin Workers' Compensation new text end	new text begin 751,000 new text end	new text begin 751,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Financial Institutions new text end

new text begin 4,885,000 new text end

new text begin 4,885,000 new text end

new text begin $142,000 each year is for the regulation of
mortgage originators and servicers under
Minnesota Statutes, chapters 58 and 58A.
new text end

new text begin Subd. 3. new text end new text begin Petroleum Tank Release Compensation Board new text end

new text begin 1,052,000 new text end

new text begin 1,052,000 new text end

new text begin This appropriation is from the petroleum
tank fund.
new text end

new text begin Subd. 4. new text end new text begin Administrative Services new text end

new text begin 6,689,000 new text end

new text begin 6,865,000 new text end

new text begin $375,000 each year is for additional
compliance efforts with unclaimed property.
The commissioner may issue contracts for
these services.
new text end

new text begin $25,000 each year is for newspaper
advertising directed at persons who own or
may own unclaimed property. By June 30
of each year, the commissioner shall submit
a report to the house and senate committees
with jurisdiction over the department of the
results of the newspaper advertisements
in returning property to the owners. This
appropriation for newspaper advertising and
the requirement of a report is for fiscal years
2014 and 2015 only.
new text end

new text begin Fees for the Weights and Measures Unit are
increased by 30 percent during fiscal year
2014. All fees are deposited to the general
fund as nondedicated revenue.
new text end

new text begin Base adjustment. $174,000 in fiscal year
2014 and $350,000 in fiscal year 2015 is
added to the base.
new text end

new text begin Subd. 5. new text end new text begin Telecommunications new text end

new text begin 1,509,000 new text end

new text begin 1,509,000 new text end

new text begin $500,000 each year is for the Broadband
Development Office.
new text end

new text begin The following transfer is from the
telecommunications access Minnesota
fund. $300,000 the first year and $300,000
the second year and each year thereafter
are for transfer to the commissioner of
human services to supplement the ongoing
operational expenses of the Commission
of Deaf, DeafBlind, and Hard-of-Hearing
Minnesotans.
new text end

new text begin Subd. 6. new text end new text begin Enforcement new text end

new text begin 4,178,000 new text end

new text begin 4,178,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,980,000 new text end	new text begin 3,980,000 new text end
new text begin Workers' Compensation new text end	new text begin 198,000 new text end	new text begin 198,000 new text end

new text begin Subd. 7. new text end new text begin Energy Resources new text end

new text begin 3,252,000 new text end

new text begin 3,252,000 new text end

new text begin Subd. 8. new text end new text begin Insurance new text end

new text begin 3,915,000 new text end

new text begin 3,915,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 3,362,000 new text end	new text begin 3,362,000 new text end
new text begin Workers' Compensation new text end	new text begin 553,000 new text end	new text begin 553,000 new text end

Sec. 4. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin 6,226,000 new text end

new text begin $ new text end

new text begin 6,277,000 new text end

new text begin Base adjustment. $48,000 in fiscal year
2014 and $99,000 in fiscal year 2015 is
added to the base.
new text end

Sec. 5. new text begin GAMBLING CONTROL new text end

new text begin $ new text end

new text begin 3,989,000 new text end

new text begin $ new text end

new text begin 4,021,000 new text end

new text begin These appropriations are from the lawful
gambling regulation account in the special
revenue fund.
new text end

new text begin Base adjustment. $30,000 in fiscal year
2014 and $62,000 in fiscal year 2015 is
added to the base.
new text end

Sec. 6. new text begin RACING COMMISSION new text end

new text begin $ new text end

new text begin 909,000 new text end

new text begin $ new text end

new text begin 919,000 new text end

new text begin These appropriations are from the racing
and card playing regulation accounts in the
special revenue fund.
new text end

new text begin Base adjustment. $10,000 in fiscal year
2014 and $20,000 in fiscal year 2015 is
added to the base.
new text end

Sec. 7. new text begin STATE LOTTERY new text end

new text begin Notwithstanding Minnesota Statutes, section
349A.10, subdivision 3, the operating budget
must not exceed $30,500,000 in fiscal year
2014 and $30,500,000 in fiscal year 2015.
new text end

Sec. 8. new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end

new text begin 14,059,000 new text end

new text begin $ new text end

new text begin 14,096,000 new text end

new text begin (a) Of this amount, $12,000 each year is for a
grant to the Upper Minnesota Film Office.
new text end

new text begin (b)(1) To develop maximum private sector
involvement in tourism, $500,000 in fiscal
year 2014 and $500,000 in fiscal year 2015
must be matched by Explore Minnesota
Tourism from nonstate sources. Each $1 of
state incentive must be matched with $6 of
private sector funding. Cash match is defined
as revenue to the state or documented cash
expenditures directly expended to support
Explore Minnesota Tourism programs. Up
to one-half of the private sector contribution
may be in-kind or soft match. The incentive
in fiscal year 2014 shall be based on fiscal
year 2013 private sector contributions. The
incentive in fiscal year 2015 shall be based on
fiscal year 2014 private sector contributions.
This incentive is ongoing.
new text end

new text begin (2) Funding for the marketing grants is
available either year of the biennium.
Unexpended grant funds from the first year
are available in the second year.
new text end

new text begin (3) Unexpended money from the general
fund appropriations made under this section
does not cancel but must be placed in a
special marketing account for use by Explore
Minnesota Tourism for additional marketing
activities.
new text end

new text begin (c) $325,000 in fiscal year 2014 and $325,000
in fiscal year 2015 are for the Minnesota
Film and TV Board. The appropriation in
each year is available only upon receipt by
the board of $1 in matching contributions
of money or in-kind contributions from
nonstate sources for every $3 provided by
this appropriation, except that each year up
to $50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.
new text end

new text begin (d) Base adjustment. $34,000 in fiscal
year 2014 and $71,000 in fiscal year 2015
is added to the base.
new text end

Sec. 9. new text begin PROBLEM GAMBLING APPROPRIATION.
new text end

new text begin $225,000 in fiscal year 2014 and $225,000 in fiscal year 2015 are appropriated
from the lottery prize fund to the commissioner of human services for a grant to the
state affiliate recognized by the National Council on Problem Gambling. The affiliate
must provide services to increase public awareness of problem gambling, education,
and training for individuals and organizations providing effective treatment services to
problem gamblers and their families, and research relating to problem gambling. These
services must be complementary to and not duplicative of the services provided through
the problem gambling program administered by the commissioner of human services.
This is a onetime appropriation.
new text end

ARTICLE 2

COMMERCE AND CONSUMER PROTECTION POLICY

Section 1.

Minnesota Statutes 2012, section 60A.14, subdivision 1, is amended to read:

Subdivision 1.

Fees other than examination fees.

In addition to the fees and
charges provided for examinations, the following fees must be paid to the commissioner
for deposit in the general fund:

(a) by township mutual fire insurance companies;

(1) for filing certificate of incorporation $25 and amendments thereto, $10;

(2) for filing annual statements, $15;

(3) for each annual certificate of authority, $15;

(4) for filing bylaws $25 and amendments thereto, $10;

(b) by other domestic and foreign companies including fraternals and reciprocal
exchanges;

(1) for filing an application for an initial certification of authority to be admitted
to transact business in this state, $1,500;

(2) for filing certified copy of certificate of articles of incorporation, $100;

(3) for filing annual statement, $225;

(4) for filing certified copy of amendment to certificate or articles of incorporation,
$100;

(5) for filing bylaws, $75 or amendments thereto, $75;

(6) for each company's certificate of authority, $575, annually;

(c) the following general fees apply:

(1) for each certificate, including certified copy of certificate of authority, renewal,
valuation of life policies, corporate condition or qualification, $25;

(2) for each copy of paper on file in the commissioner's office 50 cents per page,
and $2.50 for certifying the same;

(3) for license to procure insurance in unadmitted foreign companies, $575;

(4) for valuing the policies of life insurance companies, one cent per $1,000 of
insurance so valued, provided that the fee shall not exceed $13,000 per year for any
company. The commissioner may, in lieu of a valuation of the policies of any foreign life
insurance company admitted, or applying for admission, to do business in this state, accept
a certificate of valuation from the company's own actuary or from the commissioner of
insurance of the state or territory in which the company is domiciled;

(5) for receiving and filing certificates of policies by the company's actuary, or by
the commissioner of insurance of any other state or territory, $50;

(6) for each appointment of an agent filed with the commissioner, deleted text begin $10 deleted text end new text begin $30 new text end ;

(7) for filing forms, rates, and compliance certifications under section 60A.315, $140
per filing, or $125 per filing when submitted via electronic filing system. Filing fees
may be paid on a quarterly basis in response to an invoice. Billing and payment may
be made electronically;

(8) for annual renewal of surplus lines insurer license, $300.

The commissioner shall adopt rules to define filings that are subject to a fee.

Sec. 2.

new text begin [161.462] FIBER COLLABORATION DATABASE.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the fiber collaboration database is
to provide broadband providers with advance notice of upcoming Department of
Transportation construction projects, so that they may notify the department of their
interest in installing broadband infrastructure within the right-of-way during construction
in order to minimize installation costs.
new text end

new text begin Subd. 2. new text end

new text begin Database. new text end

new text begin (a) The Department of Transportation shall post on its Web site,
and update annually, the list of upcoming construction projects contained in its statewide
transportation improvement program, including, for each project:
new text end

new text begin (1) the geographical location where construction will occur;
new text end

new text begin (2) the estimated start and end dates of construction; and
new text end

new text begin (3) a description of the nature of the construction project.
new text end

new text begin (b) The department shall post this information as far in advance of the beginning of
construction as is feasible.
new text end

new text begin (c) The department's Web site shall allow a provider of broadband service to register
to receive from the department electronic information on proposed construction projects
added to the database in specific geographical areas of the state as soon as it is updated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2012, section 237.012, subdivision 3, is amended to read:

Subd. 3.

Annual reports.

The commissioner of commerce must annually by
February 10 report on the achievement of the goals under subdivisions 1 and 2 to the chairs
and ranking minority members of the legislative committees with primary jurisdiction
over telecommunication issues. new text begin The report must also suggest policies, incentives, and
legislation designed to accelerate the achievement of the goals. new text end The report on goals under
subdivision 1 must be made through 2015.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [237.85] OFFICE OF BROADBAND DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Broadband" or "broadband service" means any service providing advanced
telecommunications capability and Internet access with transmission speeds that, at a
minimum, meet the Federal Communications Commission definition for broadband.
new text end

new text begin (c) "Local unit of government" has the meaning given in section 116G.03,
subdivision 3.
new text end

new text begin (d) "Office" means the Office of Broadband Development established in subdivision
2, paragraph (a).
new text end

new text begin Subd. 2. new text end

new text begin Office established; purpose. new text end

new text begin (a) An Office of Broadband Development is
established within the Department of Commerce.
new text end

new text begin (b) The purpose of the office is to encourage, foster, develop, and improve broadband
within the state in order to:
new text end

new text begin (1) drive job creation, promote innovation, and expand markets for Minnesota
businesses;
new text end

new text begin (2) serve the ongoing and growing needs of Minnesota's education systems, health
care system, public safety system, industries and businesses, governmental operations,
and citizens; and
new text end

new text begin (3) improve accessibility for underserved communities and populations.
new text end

new text begin Subd. 3. new text end

new text begin Organization. new text end

new text begin The office shall consist of a director of the Office of
Broadband Development, as well as any staff necessary to carry out the office's duties
under subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The office shall have the power and duty to:
new text end

new text begin (1) serve as the central broadband planning body for the state of Minnesota;
new text end

new text begin (2) coordinate with state, regional, local, and private entities to develop, to the
maximum extent practicable, a uniform statewide broadband access and usage policy;
new text end

new text begin (3) develop, recommend, and implement a statewide plan to encourage cost-effective
broadband access, and to make recommendations for increased usage, particularly in
rural and other underserved areas;
new text end

new text begin (4) coordinate efforts, in consultation and cooperation with the commissioner of
commerce, local units of government, and private entities, to meet the state's broadband
goals in section 237.012;
new text end

new text begin (5) develop, coordinate, and implement the state's broadband infrastructure
development program under section 237.90;
new text end

new text begin (6) provide consultation services to local units of government or other project
sponsors in connection with the planning, acquisition, improvement, construction, or
development of any broadband deployment project;
new text end

new text begin (7) encourage public-private partnerships to increase deployment and adoption
of broadband services and applications, including recommending funding options and
possible incentives to encourage investment in broadband expansion;
new text end

new text begin (8) monitor the broadband development efforts of other states and nations in areas
such as business, education, public safety, and health;
new text end

new text begin (9) monitor broadband-related activities at the federal level, including regulatory and
policy changes and the potential impact on broadband deployment and sustainability in
the state;
new text end

new text begin (10) serve as an information clearinghouse for federal programs providing financial
assistance to institutions located in rural areas seeking to obtain access to high speed
broadband service, and use this information as an outreach tool to make institutions
located in rural areas that are unserved or underserved with respect to broadband service
aware of the existence of federal assistance;
new text end

new text begin (11) coordinate an ongoing collaborative effort of stakeholders to evaluate and
address security, vulnerability, and redundancy issues important to ensure the reliability
of broadband networks;
new text end

new text begin (12) provide an annual report, as required by subdivision 5; and
new text end

new text begin (13) perform any other activities consistent with the office's purpose.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin (a) Beginning on January 15, 2014, and each year thereafter,
the Office of Broadband Development shall report to the legislative committees having
jurisdiction over telecommunications policy and finance on the office's activities during
the previous year.
new text end

new text begin (b) The report shall contain, at a minimum:
new text end

new text begin (1) an analysis of the current availability and use of broadband, including average
broadband speeds, within the state;
new text end

new text begin (2) information gathered from schools, libraries, hospitals, and public safety
facilities across the state, determining the actual speed and capacity of broadband currently
in use and the need, if any, for increases in speed and capacity to meet basic needs;
new text end

new text begin (3) an analysis of incumbent broadband infrastructure within the state and its ability
to spur economic development;
new text end

new text begin (4) an analysis of the degree to which new, additional, or improved broadband
infrastructure would spur economic development in the state;
new text end

new text begin (5) a summary of the office's activities in coordinating broadband infrastructure
development under section 237.90;
new text end

new text begin (6) any proposed legislative and policy initiatives; and
new text end

new text begin (7) any other information requested by the legislative committees having jurisdiction
over telecommunications policy and finance, or that the office deems necessary.
new text end

new text begin (c) The report may be submitted electronically and is subject to section 3.195,
subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

new text begin [237.90] COORDINATION OF BROADBAND INFRASTRUCTURE
DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Broadband" or "broadband service" has the meaning given in section 237.85,
subdivision 1, paragraph (b).
new text end

new text begin (c) "Broadband conduit" means a conduit, pipe, innerduct, or microduct for fiber
optic or other cables that support broadband and wireless facilities for broadband service.
new text end

new text begin (d) "Local unit of government" has the meaning given in section 116G.03,
subdivision 3.
new text end

new text begin (e) "Office" means the Office of Broadband Development established in section
237.85.
new text end

new text begin Subd. 2. new text end

new text begin Broadband infrastructure development. new text end

new text begin (a) The office shall, in
collaboration with the Department of Transportation and private entities, encourage and
coordinate "dig once" efforts for the planning, relocation, installation, or improvement of
broadband conduit within the right-of-way in conjunction with any current or planned
construction, including, but not limited to, trunk highways and bridges. To the extent
necessary, the office shall, in collaboration with the Department of Transportation,
evaluate engineering and design standards, procedures and criteria for contracts or lease
agreements with private entities, and pricing requirements, and provide for allocation
of risk, costs, and any revenue generated.
new text end

new text begin (b) The office shall, in collaboration with other state departments and agencies as the
office deems necessary, develop a strategy to facilitate the timely and efficient deployment
of broadband conduit or other broadband facilities on state-owned lands and buildings.
new text end

new text begin (c) To the extent practicable, the office shall encourage and assist local units of
government to adopt and implement policies similar to those under paragraphs (a) and (b)
for construction or other improvements to county state-aid highways, municipal state-aid
roads, and any other rights-of-way under the local unit of government's jurisdiction, and to
other lands or buildings owned by the local unit of government.
new text end

new text begin (d) Special consideration must be paid to projects under this subdivision that will
likely improve access to broadband by rural or underserved communities.
new text end

new text begin Subd. 3. new text end

new text begin Reporting. new text end

new text begin As part of its annual report under section 237.85, subdivision
5, the office shall report on activities taken under this section, including, but not limited to,
the number of current and planned projects using the "dig once" approach, any gains in
broadband speed or access associated with the project, and any costs or cost savings to
the state, private entity, or end user of broadband services.
new text end

new text begin Subd. 4. new text end

new text begin No right of action. new text end

new text begin Nothing in this section shall be construed to create
any right or benefit, substantive or procedural, enforceable at law or in equity by any
party against the state of Minnesota, its departments, agencies, or entities, its officers,
employees, or agents, or any other person.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2012, section 239.101, subdivision 3, is amended to read:

Subd. 3.

Petroleum inspection fee; appropriation, uses.

(a) An inspection fee
is imposed (1) on petroleum products when received by the first licensed distributor,
and (2) on petroleum products received and held for sale or use by any person when the
petroleum products have not previously been received by a licensed distributor. The
petroleum inspection fee is $1 for every 1,000 gallons received. The commissioner of
revenue shall collect the fee. The revenue from deleted text begin 81 deleted text end new text begin 89 new text end cents of the fee is appropriated to
the commissioner of commerce for the cost of operations of the Division of Weights and
Measures, petroleum supply monitoring, and to make grants to providers of low-income
weatherization services to install renewable energy equipment in households that are
eligible for weatherization assistance under Minnesota's weatherization assistance
program state plan. The remainder of the fee must be deposited in the general fund.

(b) The commissioner of revenue shall credit a person for inspection fees previously
paid in error or for any material exported or sold for export from the state upon filing of a
report as prescribed by the commissioner of revenue.

(c) The commissioner of revenue may collect the inspection fee along with any
taxes due under chapter 296A.

Sec. 7.

Minnesota Statutes 2012, section 507.235, subdivision 2, is amended to read:

Subd. 2.

Penalty for failure to file.

(a) A vendee who fails to record a contract for
deed, as required by subdivision 1, is subject to a civil penalty, payable under subdivision
5, equal to two percent of the principal amount of the contract debt new text begin , unless the vendee
has not received a copy of the contract for deed in recordable form, as required under
subdivision 1a new text end . Payments of the penalty shall be deposited in the general fund of the
county. The penalty may be enforced as a lien against the vendee's interest in the property.

(b) A person receiving an assignment of a vendee's interest in a contract for deed
who fails to record the assignment as required by subdivision 1 is subject to a civil penalty,
payable under subdivision 5, equal to two percent of the original principal amount of the
contract debt. Payments of the penalty must be deposited in the general fund of the county.
The penalty may be enforced as a lien against the vendee's interest in the property.

Sec. 8.

new text begin [559.201] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions in this section apply to section 559.202.
new text end

new text begin Subd. 2. new text end

new text begin Business day. new text end

new text begin "Business day" means any day other than a Saturday,
Sunday, or holiday as defined in section 645.44, subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Family farm security loan. new text end

new text begin "Family farm security loan" has the meaning
given in Minnesota Statutes 2008, section 41.52, subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Multiple seller. new text end

new text begin "Multiple seller" means a person that has acted as a seller
in four or more contracts for deed involving residential real property during the 12-month
period that precedes either: (1) the date on which the purchaser executes a purchase
agreement under section 559.202; or (2) if there is no purchase agreement, the date on
which the purchaser executes a contract for deed under section 559.202. A contract for
deed transaction that is exempt under section 559.202, subdivision 2, is a contract for deed
for the purposes of determining whether a seller is a multiple seller.
new text end

new text begin Subd. 5. new text end

new text begin Person. new text end

new text begin "Person" means a natural person, partnership, corporation, limited
liability company, association, trust, or other legal entity, however organized.
new text end

new text begin Subd. 6. new text end

new text begin Purchase agreement. new text end

new text begin "Purchase agreement" means a purchase agreement
for a contract for deed, an earnest money contract, or an executed option contemplating
that, at closing, the seller and the purchaser will enter into a contract for deed.
new text end

new text begin Subd. 7. new text end

new text begin Purchaser. new text end

new text begin "Purchaser" means a natural person who enters into a contract
for deed to purchase residential real property. Purchaser includes all purchasers who enter
into the same contract for deed to purchase residential real property.
new text end

new text begin Subd. 8. new text end

new text begin Residential real property. new text end

new text begin "Residential real property" means real property
consisting of one to four family dwelling units, one of which the purchaser intends to
occupy as the purchaser's principal place of residence. Residential real property does
not include property subject to a family farm security loan or a transaction subject to
sections 583.20 to 583.32.
new text end

Sec. 9.

new text begin [559.202] CONTRACTS FOR DEED INVOLVING RESIDENTIAL
PROPERTY.
new text end

new text begin Subdivision 1. new text end

new text begin Notice required. new text end

new text begin (a) In addition to the disclosures required under
sections 513.52 to 513.60, a multiple seller must deliver the notice specified under
subdivision 3 to a prospective purchaser as provided under this subdivision.
new text end

new text begin (b) If there is a purchase agreement, the notice must be affixed to the front of
the purchase agreement. A contract for deed for which notice is required under this
subdivision may not be executed for five business days following the execution of the
purchase agreement and delivery of the notice and instructions for cancellation.
new text end

new text begin (c) If there is no purchase agreement, a multiple seller must deliver the notice in a
document separate from any other document or writing to a prospective purchaser no less
than five business days before the prospective purchaser executes the contract for deed.
new text end

new text begin (d) The notice must be:
new text end

new text begin (1) written in at least 12-point type; and
new text end

new text begin (2) signed and dated by the purchaser.
new text end

new text begin (e) If a dispute arises concerning whether or when the notice required by this
subdivision was provided to the purchaser, there is a rebuttable presumption that the notice
was not provided unless the original executed contract for deed contains the following
statement, initialed by the purchaser: "By initialing here ....... purchaser acknowledges
receipt at least five business days before signing this contract for deed of the disclosure
statement entitled "Important Information About Contracts for Deed" required by
Minnesota Statutes, section 559.202, subdivision 3."
new text end

new text begin Subd. 2. new text end

new text begin Exception. new text end

new text begin This section does not apply if the purchaser is represented
throughout the transaction by either:
new text end

new text begin (1) a person licensed to practice law in this state; or
new text end

new text begin (2) a person licensed as a real estate broker or salesperson under chapter 82,
provided that the representation does not create a dual agency, as that term is defined
in section 82.55, subdivision 6.
new text end

new text begin Subd. 3. new text end

new text begin Content of the notice. new text end

new text begin The notice must contain the following verbatim
language:
new text end

new text begin "IMPORTANT INFORMATION ABOUT CONTRACTS FOR DEED
new text end

new text begin Know What You Are Getting Into
new text end

new text begin (1) A contract for deed is a complex legal agreement. You are NOT a tenant. Mortgage
foreclosure laws don't apply.
new text end

new text begin (2) You should know ALL of your obligations and rights before you sign a purchase
agreement or contract for deed.
new text end

new text begin (3) You (seller must circle one):
new text end

new text begin (a) new text end	new text begin DO new text end	new text begin DO NOT new text end	new text begin have to pay homeowner's insurance. new text end
new text begin (b) new text end	new text begin DO new text end	new text begin DO NOT new text end	new text begin have to pay property taxes. new text end
new text begin (c) new text end	new text begin DO new text end	new text begin DO NOT new text end	new text begin have to make and pay for some or all of the repairs or maintenance, as described in the contract for deed. new text end

new text begin (4) After some time, you may need to make a large lump sum payment (called a "balloon
payment"). Know when it is due and how much it will be. You'll probably need to get a
new mortgage, another financial arrangement, or pay for the balance in cash at that time.
new text end

new text begin (5) If you miss just a single payment or can't make the balloon payment, the seller can
cancel your contract. You will likely lose all the money you have already paid. You will
likely lose your ability to purchase the home. The seller can begin an eviction action
against you in just a few months.
new text end

new text begin (6) Within four months of signing the contract for deed, you must "record" it in the office
of the county recorder or registrar of titles in the county in which the property is located.
If you do not do so, you could face a fine.
new text end

new text begin Key Things Highly Recommended Before You Sign
new text end

new text begin (1) Get advice from a lawyer or the Minnesota Home Ownership Center at
1-866-462-6466. To find a lawyer through the Minnesota State Bar Association, go to
www.mnfindalawyer.com.
new text end

new text begin (2) Get an independent, professional appraisal of the property to learn what it is worth.
new text end

new text begin (3) Get an independent, professional inspection of the property.
new text end

new text begin (4) Buy title insurance or ask a real estate lawyer for a "title opinion."
new text end

new text begin (5) Check with the city or county to find out if there are inspection reports or unpaid
utility bills.
new text end

new text begin (6) Check with a title company or the county where the property is located to find out if
there is a mortgage or other lien on the property and if the property taxes have been paid.
new text end

new text begin If You Are Entering into a Purchase Agreement
new text end

new text begin (1) If you haven't already signed the contract for deed, you can cancel the purchase
agreement (and get all your money back) if you do so within five business days after
getting this notice.
new text end

new text begin (2) To cancel the purchase agreement, you must follow the provisions of Minnesota
Statutes, section 559.217, subdivision 4. Ask a lawyer for help."
new text end

new text begin Subd. 4. new text end

new text begin Right to cancel purchase agreement. new text end

new text begin (a) A prospective purchaser may
cancel a purchase agreement within five business days after actually receiving the notice
required under subdivision 1 if a multiple seller fails to timely deliver the notice, provided
that the contract for deed has not been executed by all parties.
new text end

new text begin (b) A prospective purchaser may cancel the purchase agreement in accordance with
the provisions of section 559.217, subdivision 4.
new text end

new text begin (c) In the event of cancellation, the multiple seller may not impose a penalty and must
promptly refund all payments made by the prospective purchaser prior to cancellation.
new text end

new text begin Subd. 5. new text end

new text begin Remedies for failure to timely deliver notices. new text end

new text begin (a) Notwithstanding
any contrary provision in the purchase agreement or contract for deed, a purchaser has
a private right of action against a multiple seller who fails to timely deliver the notice
required under subdivision 1. The multiple seller is liable to the purchaser for:
new text end

new text begin (1) the greater of actual damages or statutory damages of $2,500; and
new text end

new text begin (2) reasonable attorney fees and court costs.
new text end

new text begin (b) A multiple seller who knowingly fails to timely deliver the notice required
under subdivision 1 is liable to the purchaser for triple the actual or statutory damages
available under paragraph (a), whichever is greater, provided that the purchaser must elect
the remedy provided under either paragraph (a) or this paragraph and may not recover
damages under both paragraphs.
new text end

new text begin (c) The rights and remedies provided in this subdivision are cumulative to, and not
a limitation of, any other rights and remedies provided under law. An action brought
pursuant to this subdivision must be commenced within four years from the date of the
alleged violation.
new text end

new text begin Subd. 6. new text end

new text begin Effects of violation. new text end

new text begin A violation of this section has no effect on the
validity of the contract.
new text end

new text begin Subd. 7. new text end

new text begin Duty of multiple seller to account. new text end

new text begin Upon reasonable request by the
purchaser and no more than once every 12-month period, a multiple seller must provide an
accounting of all payments made pursuant to the contract for deed, the amount of interest
paid, and the amount remaining to satisfy the principal balance under the contract.
new text end

new text begin Subd. 8. new text end

new text begin No waiver. new text end

new text begin The provisions of this section may not be waived.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
transactions in which the contract for deed and the purchase agreement for the contract
for deed, if any, were both executed on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2012, section 559.211, subdivision 2, is amended to read:

Subd. 2.

Remedies additional.

The remedies provided in this section are in
addition to and do not limit other rights or remedies available to purchasers or vendors of
real estate. new text begin Subject to the provisions of sections 559.213 and 559.217, subdivision 7, this
section shall not be construed to bar a court from determining the validity, effectiveness,
or consequences of proceeding under section 559.21 or 559.217, or granting other relief in
connection therewith, by reason of the failure of a purchaser to seek or obtain relief under
this section prior to the purported effective date of the termination of the contract.
new text end

Sec. 11.

Laws 2011, First Special Session chapter 2, article 2, section 3, subdivision 4,
is amended to read:

Subd. 4. Administrative Services

4,247,000

4,247,000

$375,000 each year is for additional
compliance efforts with unclaimed property.
The commissioner may issue contracts
for these services. deleted text begin This additional amount
shall be added to the base budget for fiscal
years 2014 and 2015 only. The enhanced
unclaimed property compliance program
shall sunset June 30, 2015.
deleted text end

Sec. 12. new text begin STATE BROADBAND STRATEGY; REPORT.
new text end

new text begin The Office of Broadband Development shall conduct research and produce a report
recommending a set of programs and strategies the state can pursue to promote the
improvement, more efficient and effective use, and expansion of broadband services in
ways that will have the greatest impact on the state's economic development, by which is
meant enhancing the ability of Minnesota citizens and businesses to develop their skills,
to expand businesses to new markets, develop new products, reach more customers, and
lower costs. While the state's broadband goals in section 237.012 address the universal
provision of greater broadband access and speed statewide, this report must consider
broadband as an economic development tool and must examine and analyze:
new text end

new text begin (1) how the state can best use its limited resources to adopt strategies and make
investments to improve the use of broadband services by subgroups of broadband users,
including mobile broadband users, that promise to deliver the greatest economic impact
per dollar of state investment;
new text end

new text begin (2) roles the state can play in addition to financial assistance for broadband
infrastructure, including supporting education and training for Minnesotans to enable
them to use broadband more effectively; and
new text end

new text begin (3) strategies and opportunities for state investment to leverage additional amounts
of private capital and financial assistance from the federal government in order to achieve
these goals.
new text end

new text begin By January 15, 2014, the office shall submit the report to the chairs and ranking minority
members of the senate and house committees with jurisdiction over telecommunications
issues.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 507.235, subdivision 4, new text end new text begin is repealed effective the
day following final enactment.
new text end