1.1 	A bill for an act
1.2 	relating to commerce; regulating statutory housing warranties; clarifying the 
1.3 	legislature's intent that housing warranties and insurance contract obligations 
1.4 	remain unaffected by corporate dissolution; amending Minnesota Statutes 2004, sections 60A.08, subdivision 6; 302A.781, by adding a subdivision; 322B.863, by adding a subdivision; 327A.02, by adding a subdivision.1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 60A.08, subdivision 6, is amended to read:
1.9 		Subd. 6.Bankruptcy or, insolvency, or dissolution clause. Every bond or 
1.10 	policy of insurance issued in this state insuring against either actual loss suffered by the 
1.11 	insured, and imposed by law for damages on account of personal injury, death, or injury 
1.12 	to property caused by accident, or legal liability imposed upon the insured by reason of 
1.13 	such injuries or death, shall, notwithstanding anything in the policy to the contrary, be 
1.14 	deemed to contain the following condition:
1.15 	The bankruptcy or, insolvency, or dissolution of the insured shall not relieve the 
1.16 	insurer of any of its obligations under this policy, and in case an execution against the 
1.17 	insured on a final judgment is returned unsatisfied, then such judgment creditor shall have 
1.18 	a right of action on this policy against the company to the same extent that the insured 
1.19 	would have, had the insured paid the final judgment.

1.20 	Sec. 2. Minnesota Statutes 2004, section 302A.781, is amended by adding a 
1.21 	subdivision to read:
1.22 		Subd. 4.Statutory homeowner warranty claims preserved. The statutory 
1.23 	warranties provided under section 327A.02 are not affected by a dissolution under this 
1.24 	chapter.

2.1 	Sec. 3. Minnesota Statutes 2004, section 322B.863, is amended by adding a 
2.2 	subdivision to read:
2.3 		Subd. 4.Statutory homeowner warranty claims preserved. The statutory 
2.4 	warranties provided under section 327A.02 are not affected by a dissolution under this 
2.5 	chapter.

2.6 	Sec. 4. Minnesota Statutes 2004, section 327A.02, is amended by adding a subdivision 
2.7 	to read:
2.8 		Subd. 2a.Remedies unaffected by corporate dissolution. The statutory 
2.9 	warranties provided in this section are not affected by the dissolution of a vendor or home 
2.10 	improvement contractor that is a corporation or limited liability company.

2.11 	Sec. 5. EFFECTIVE DATE.
 2.12 	This act is effective the day following final enactment and applies to all homes 
2.13 	constructed or improved after January 1, 1994, that have existing warranties under 
2.14 	Minnesota Statutes, section 327A.02.