1.1                          A bill for an act 
  1.2             relating to courts; civil actions; modifying the 
  1.3             requirements for an application to proceed in forma 
  1.4             pauperis by an inmate; allowing the court to dismiss 
  1.5             an inmate's action for false allegations of poverty or 
  1.6             if it is frivolous or malicious; providing for a 
  1.7             hearing; providing for the payment of fees and costs 
  1.8             by inmates; providing for the disposition of damages 
  1.9             recovered by an inmate; allowing parties to defend 
  1.10            certain actions brought by inmates without paying 
  1.11            costs; requiring disciplinary rules on false claims or 
  1.12            evidence by an inmate; amending Minnesota Statutes 
  1.13            1994, sections 243.23, subdivision 3; and 563.01, 
  1.14            subdivision 3; proposing coding for new law in 
  1.15            Minnesota Statutes, chapters 243; 244; and 563. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1994, section 243.23, 
  1.18  subdivision 3, is amended to read: 
  1.19     Subd. 3.  [EXCEPTIONS.] Notwithstanding sections 241.26, 
  1.20  subdivision 5, and 243.24, subdivision 1, the commissioner may 
  1.21  promulgate rules for the disbursement of shall make deductions 
  1.22  from funds earned under subdivision 1, or other funds in an 
  1.23  inmate account, and section 243.88, subdivision 2.  The 
  1.24  commissioner shall first make deductions for the following 
  1.25  expenses in the following order of priority:  
  1.26     (1) federal and state taxes; 
  1.27     (2) repayment of advances; 
  1.28     (3) gate money as provided in section 243.24; and, 
  1.29     where applicable, mandatory savings as provided by United 
  1.30  States Code, title 18, section 1761, as amended.  The 
  2.1   commissioner's rules may then provide for disbursements to be 
  2.2   made in the following order of priority: 
  2.3      (1) for the; 
  2.4      (4) support of families and dependent relatives of the 
  2.5   respective inmates; 
  2.6      (2) for the (5) payment of court-ordered restitution; 
  2.7      (3) for (6) payment of fees and costs in a civil action 
  2.8   commenced by an inmate; 
  2.9      (7) payment of fines, surcharges, or other fees assessed or 
  2.10  ordered by a court; 
  2.11     (4) for (8) contribution to any programs established by law 
  2.12  to aid victims of crime provided that the contribution shall not 
  2.13  be more than 20 percent of an inmate's gross wages; 
  2.14     (5) for the (9) payment of restitution to the commissioner 
  2.15  ordered by prison disciplinary hearing officers for damage to 
  2.16  property caused by an inmate's conduct; and 
  2.17     (6) (10) for the discharge of any legal obligations arising 
  2.18  out of litigation under this subdivision.  
  2.19     The commissioner may authorize the payment of court-ordered 
  2.20  restitution from an inmate's wages when the restitution was 
  2.21  ordered by the court as a sanction for the conviction of an 
  2.22  offense which is not the offense of commitment, including 
  2.23  offenses which occurred prior to the offense for which the 
  2.24  inmate was committed to the commissioner.  An inmate of an adult 
  2.25  correctional facility under the control of the commissioner is 
  2.26  subject to actions for the enforcement of support obligations 
  2.27  and reimbursement of any public assistance rendered the 
  2.28  dependent family and relatives.  The commissioner may 
  2.29  conditionally release an inmate who is a party to an action 
  2.30  under this subdivision and provide for the inmate's detention in 
  2.31  a local detention facility convenient to the place of the 
  2.32  hearing when the inmate is not engaged in preparation and 
  2.33  defense. 
  2.34     Sec. 2.  [243.241] [CIVIL ACTION MONEY DAMAGES.] 
  2.35     Money damages recovered in a civil action by an inmate 
  2.36  confined in a state correctional facility or released from a 
  3.1   state correctional facility under section 244.065 or 244.07 
  3.2   shall be deposited in the inmate account fund and disbursed 
  3.3   according to the priorities in section 243.23, subdivision 3. 
  3.4      Sec. 3.  [244.035] [SANCTIONS RELATED TO LITIGATION.] 
  3.5      The commissioner shall develop disciplinary sanctions to 
  3.6   provide infraction penalties for an inmate who submits a 
  3.7   frivolous or malicious claim as determined under section 563.02, 
  3.8   subdivision 3, or who is determined by the court to have 
  3.9   testified falsely or to have submitted false evidence to a 
  3.10  court.  Infraction penalties may include loss of privileges, 
  3.11  punitive segregation, loss of good time, or adding discipline 
  3.12  confinement time. 
  3.13     Sec. 4.  Minnesota Statutes 1994, section 563.01, 
  3.14  subdivision 3, is amended to read: 
  3.15     Subd. 3.  Any court of the state of Minnesota or any 
  3.16  political subdivision thereof may authorize the commencement or 
  3.17  defense of any civil action, or appeal therein, without 
  3.18  prepayment of fees, costs and security for costs by a natural 
  3.19  person who makes affidavit stating (a) the nature of the action, 
  3.20  defense or appeal, (b) a belief that affiant is entitled to 
  3.21  redress, and (c) that affiant is financially unable to pay the 
  3.22  fees, costs and security for costs.  
  3.23     Upon a finding by the court that the action is not of a 
  3.24  frivolous nature, the court shall allow the person to proceed in 
  3.25  forma pauperis if the affidavit is substantially in the language 
  3.26  required by this subdivision and is not found by the court to be 
  3.27  untrue.  Persons meeting the requirements of this subdivision 
  3.28  include, but are not limited to, a person who is receiving 
  3.29  public assistance, who is represented by an attorney on behalf 
  3.30  of a civil legal services program or a volunteer attorney 
  3.31  program based on indigency, or who has an annual income not 
  3.32  greater than 125 percent of the poverty line established under 
  3.33  United States Code, title 42, section 9902(2), except as 
  3.34  otherwise provided by section 563.02. 
  3.35     Sec. 5.  [563.02] [INMATE LIABILITY FOR FEES AND COSTS.] 
  3.36     Subdivision 1.  [DEFINITION.] For purposes of this section, 
  4.1   "inmate" means a person convicted of a felony who is committed 
  4.2   to the custody of the commissioner of corrections and is: 
  4.3      (1) confined in a state correctional facility; or 
  4.4      (2) released from a state correctional facility under 
  4.5   section 244.065 or 244.07. 
  4.6      Subd. 2.  [INMATE REQUEST TO PROCEED IN FORMA 
  4.7   PAUPERIS.] (a) An inmate who wishes to commence a civil action 
  4.8   by proceeding in forma pauperis must meet the following 
  4.9   requirements, in addition to the requirements of section 563.01, 
  4.10  subdivision 3: 
  4.11     (1) exhaust the inmate complaint procedure developed under 
  4.12  the commissioner of corrections policy and procedure before 
  4.13  commencing a civil action against the department, and state in 
  4.14  the application to proceed in forma pauperis that the inmate has 
  4.15  done so; and 
  4.16     (2) include the following information in an affidavit 
  4.17  submitted under section 563.01: 
  4.18     (i) a statement that the inmate's claim is not 
  4.19  substantially similar to a previous claim brought by the inmate 
  4.20  against the same party and arising from the same operative 
  4.21  facts; 
  4.22     (ii) complete information on the inmate's identity, the 
  4.23  nature and amount of the inmate's income, spouse's income, if 
  4.24  available to the inmate, real property owned by the inmate, and 
  4.25  the inmate's bank accounts, debts, monthly expenses, and number 
  4.26  of dependents; and 
  4.27     (iii) the most recent monthly statement provided by the 
  4.28  commissioner of corrections showing the balance in the inmate's 
  4.29  inmate account. 
  4.30     The inmate shall also attach a written authorization for 
  4.31  the court to obtain at any time during pendency of the present 
  4.32  action, without further authorization from the inmate, a current 
  4.33  statement of the inmate's inmate account balance, if needed to 
  4.34  determine eligibility to proceed with bringing a civil action in 
  4.35  forma pauperis.  An inmate who has no funds in an inmate account 
  4.36  satisfies the requirement of section 563.01, subdivision 3, 
  5.1   clause (c). 
  5.2      (b) An inmate who seeks to proceed as a plaintiff in forma 
  5.3   pauperis and who is not represented by counsel must file with 
  5.4   the court the affidavit under this section and the complaint in 
  5.5   the action before serving the complaint on an opposing party. 
  5.6      (c) An inmate who has funds in an inmate account may only 
  5.7   proceed as a plaintiff in a civil action by paying the lesser of:
  5.8      (i) the applicable court filing fee; or 
  5.9      (ii) 50 percent of the balance shown in the inmate's 
  5.10  account according to the statement filed with the court under 
  5.11  this subdivision, consistent with the requirements of section 
  5.12  243.23, subdivision 3.  
  5.13     If an inmate elects to proceed under this paragraph, the 
  5.14  court shall notify the commissioner of corrections to withdraw 
  5.15  from the inmate's inmate account the amount required under this 
  5.16  paragraph and forward it to the court administrator in the 
  5.17  county where the action was commenced.  The court shall also 
  5.18  notify the commissioner of corrections of the amount of the 
  5.19  filing fee remaining unpaid.  The commissioner shall continue 
  5.20  making withdrawals from the inmate's account and forwarding the 
  5.21  amounts withdrawn to the court administrator at intervals as the 
  5.22  applicable funds in the inmate's account equal at least $10, 
  5.23  until the entire filing fee and any costs have been paid in full.
  5.24     Subd. 3.  [DISMISSAL OF ACTION.] (a) The court may, as 
  5.25  provided by this subdivision, dismiss, in whole or in part, an 
  5.26  action in which an affidavit has been filed under section 563.01 
  5.27  by an inmate seeking to proceed as a plaintiff.  The action 
  5.28  shall be dismissed without prejudice on a finding that the 
  5.29  allegation of financial inability to pay fees, costs, and 
  5.30  security for costs is false.  The action shall be dismissed with 
  5.31  prejudice if it is frivolous or malicious.  In determining 
  5.32  whether an action is frivolous or malicious, the court may 
  5.33  consider whether: 
  5.34     (1) the claim has no arguable basis in law or fact; or 
  5.35     (2) the claim is substantially similar to a previous claim 
  5.36  that was brought against the same party and arises from the same 
  6.1   operative facts. 
  6.2      An order dismissing the action or specific claims asserted 
  6.3   in the action may be entered before or after service of process, 
  6.4   and with or without holding a hearing. 
  6.5      If the court dismisses a specific claim in the action, it 
  6.6   shall designate any issue and defendant on which the action is 
  6.7   to proceed without the payment of fees and costs.  An order 
  6.8   under this subdivision is not subject to interlocutory appeal. 
  6.9      (b) To determine whether the allegation of financial 
  6.10  inability to pay fees, costs, and security for costs is false or 
  6.11  whether the claim is frivolous or malicious, the court may: 
  6.12     (1) request the commissioner of corrections to file a 
  6.13  report under oath responding to the issues described in 
  6.14  paragraph (a), clause (1) or (2); 
  6.15     (2) order the commissioner of corrections to furnish 
  6.16  information on the balance in the inmate's inmate account, if 
  6.17  authorized by the inmate under subdivision 2; or 
  6.18     (3) hold a hearing at the correctional facility where the 
  6.19  inmate is confined on the issue of whether the allegation of 
  6.20  financial inability to pay is false, or whether the claim is 
  6.21  frivolous, or malicious. 
  6.22     Subd. 4.  [DEFENSE WITHOUT FEES OR COSTS.] A natural person 
  6.23  who is named as a defendant in a civil action brought by an 
  6.24  inmate may appear and defend the action, including any appeal in 
  6.25  the action, without prepayment of the filing fee.  If the 
  6.26  natural person prevails in the action, the inmate is liable for 
  6.27  the person's fees and costs, including reasonable attorney fees.