<a id="pl.1.3"></a><var>1.3</var>for breaches; requiring a report;amending Minnesota Statutes 2008, section <br/>
<a id="pl.1.4"></a><var>1.4</var>327A.05.<br/>
<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
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<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>    Section 1. Minnesota Statutes 2008, section 327A.05, is amended to read:<br/>
<a id="pl.1.7"></a><var>1.7</var><b>327A.05 REMEDIES.</b><br/>
<a id="pl.1.8"></a><var>1.8</var>    Subdivision 1. <b>New home warranties.</b> Upon breach of any warranty imposed by <br/>
<a id="pl.1.9"></a><var>1.9</var>section 
         <statute_ref>327A.02, subdivision 1</statute_ref>, the vendee shall have a cause of action against the vendor <br/>
<a id="pl.1.10"></a><var>1.10</var>for damages arising out of the breach, or for specific performance. If the vendee is the <br/>
<a id="pl.1.11"></a><var>1.11</var>prevailing party, the vendee may also be awarded the vendee's costs, disbursements, and <br/>
<a id="pl.1.12"></a><var>1.12</var>reasonable attorney fees. Damages shall be limited to: <br/>
<a id="pl.1.13"></a><var>1.13</var>(a) the amount necessary to remedy the defect or breach; or<br/>
<a id="pl.1.14"></a><var>1.14</var>(b) the difference between the value of the dwelling without the defect and the value <br/>
<a id="pl.1.15"></a><var>1.15</var>of the dwelling with the defect.<br/>
<a id="pl.1.16"></a><var>1.16</var>    Subd. 2. <b>Home improvement warranty.</b> Upon breach of any warranty imposed by <br/>
<a id="pl.1.17"></a><var>1.17</var>section 
         <statute_ref>327A.02, subdivision 3</statute_ref>, the owner shall have a cause of action against the home <br/>
<a id="pl.1.18"></a><var>1.18</var>improvement contractor for damages arising out of the breach, or for specific performance. <br/>
<a id="pl.1.19"></a><var>1.19</var>If the owner is the prevailing party, the owner may also be awarded the owner's costs, <br/>
<a id="pl.1.20"></a><var>1.20</var>disbursements, and reasonable attorney fees. Damages shall be limited to the amount <br/>
<a id="pl.1.21"></a><var>1.21</var>necessary to remedy the defect or breach. <br/>
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<a id="bill.0.2.0"></a><a id="pl.1.22"></a><var>1.22</var>    Sec. 2. <b>HOMEOWNER WARRANTY DISPUTE RESOLUTION; REPORT TO </b><br/>
<a id="pl.1.23"></a><var>1.23</var><b>THE LEGISLATURE.</b><br/>
<a id="pl.2.1"></a><var>2.1</var>The commissioner of labor and industry and the commissioner of commerce shall <br/>
<a id="pl.2.2"></a><var>2.2</var>consult with interested parties to review the homeowner warranty statutes in Minnesota <br/>
<a id="pl.2.3"></a><var>2.3</var>Statutes, chapter 327A, for purposes of developing a timely and prescriptive process for <br/>
<a id="pl.2.4"></a><var>2.4</var>resolving homeowner warranty disputes that promotes resolution of warranty claims <br/>
<a id="pl.2.5"></a><var>2.5</var>without litigation. The interested parties to be consulted include, but are not limited to:<br/>
<a id="pl.2.6"></a><var>2.6</var>(1) the construction section of the state bar association;<br/>
<a id="pl.2.7"></a><var>2.7</var>(2) the Builders Association of Minnesota;<br/>
<a id="pl.2.8"></a><var>2.8</var>(3) the Association of General Contractors;<br/>
<a id="pl.2.9"></a><var>2.9</var>(4) representatives of homeowners and consumers; and<br/>
<a id="pl.2.10"></a><var>2.10</var>(5) any other interested parties.<br/>
<a id="pl.2.11"></a><var>2.11</var>By January 15, 2010, the commissioner of labor and industry shall report to the chairs and <br/>
<a id="pl.2.12"></a><var>2.12</var>ranking minority members of the legislative committees with jurisdiction over homeowner <br/>
<a id="pl.2.13"></a><var>2.13</var>warranty statutes. The report must include recommendations for changes in the law to <br/>
<a id="pl.2.14"></a><var>2.14</var>promote resolution of homeowner warranty disputes.<br/>
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<a id="bill.0.3.0"></a><a id="pl.2.15"></a><var>2.15</var>    Sec. 3. <b>EFFECTIVE DATE; APPLICATION.</b><br/>
<a id="pl.2.16"></a><var>2.16</var>Section 1 is effective the day following final enactment and applies to causes of <br/>
<a id="pl.2.17"></a><var>2.17</var>action pending on, or commenced on or after, that date.<br/>