1.1A bill for an act1.2relating to civil actions; statutory housing warranties; regulating recovery 1.3for breaches; requiring a report;amending Minnesota Statutes 2008, section 1.4327A.05.1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.6    Section 1. Minnesota Statutes 2008, section 327A.05, is amended to read:1.7327A.05 REMEDIES.1.8    Subdivision 1. New home warranties. Upon breach of any warranty imposed by 1.9section 
         327A.02, subdivision 1, the vendee shall have a cause of action against the vendor 1.10for damages arising out of the breach, or for specific performance. If the vendee is the 1.11prevailing party, the vendee may also be awarded the vendee's costs, disbursements, and 1.12reasonable attorney fees. Damages shall be limited to: 1.13(a) the amount necessary to remedy the defect or breach; or1.14(b) the difference between the value of the dwelling without the defect and the value 1.15of the dwelling with the defect.1.16    Subd. 2. Home improvement warranty. Upon breach of any warranty imposed by 1.17section 
         327A.02, subdivision 3, the owner shall have a cause of action against the home 1.18improvement contractor for damages arising out of the breach, or for specific performance.1.19If the owner is the prevailing party, the owner may also be awarded the owner's costs, 1.20disbursements, and reasonable attorney fees. Damages shall be limited to the amount 1.21necessary to remedy the defect or breach. 1.22    Sec. 2. HOMEOWNER WARRANTY DISPUTE RESOLUTION; REPORT TO 1.23THE LEGISLATURE.2.1The commissioner of labor and industry and the commissioner of commerce shall 2.2consult with interested parties to review the homeowner warranty statutes in Minnesota 2.3Statutes, chapter 327A, for purposes of developing a timely and prescriptive process for 2.4resolving homeowner warranty disputes that promotes resolution of warranty claims 2.5without litigation. The interested parties to be consulted include, but are not limited to:2.6(1) the construction section of the state bar association;2.7(2) the Builders Association of Minnesota;2.8(3) the Association of General Contractors;2.9(4) representatives of homeowners and consumers; and2.10(5) any other interested parties.2.11By January 15, 2010, the commissioner of labor and industry shall report to the chairs and 2.12ranking minority members of the legislative committees with jurisdiction over homeowner 2.13warranty statutes. The report must include recommendations for changes in the law to 2.14promote resolution of homeowner warranty disputes.2.15    Sec. 3. EFFECTIVE DATE; APPLICATION.2.16Section 1 is effective the day following final enactment and applies to causes of 2.17action pending on, or commenced on or after, that date.