HF 333

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:36am

A bill for an act
relating to real property; providing for the Minnesota Foreclosure Remediation
Fee Act; proposing coding for new law as Minnesota Statutes, chapter 287A.

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

Section 1.

new text begin [287A.01] FORECLOSURE REMEDIATION FEE.
new text end

new text begin Sections 287A.01 to 287A.09 may be referred to as the "Minnesota Foreclosure
Remediation Fee Act."
new text end

Sec. 2.

new text begin [287A.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Words, terms, and phrases. new text end

new text begin Unless the language or context clearly
indicates that a different meaning is intended, the following words, terms, and phrases, for
the purposes of this chapter, have the meanings given to them in this section.
new text end

new text begin Subd. 2. new text end

new text begin Foreclosure remediation. new text end

new text begin "Foreclosure remediation" means rehabilitating
foreclosed properties to comply with applicable state and local housing or building codes,
building in-fill housing in areas adversely affected by the foreclosure crisis, funding
holding costs for organizations that purchase or own previously foreclosed properties and
are unable to sell the properties, and preventing foreclosures.
new text end

new text begin Subd. 3. new text end

new text begin Real property, real estate, and land. new text end

new text begin "Real property," "real estate," and
"land" mean any fee simple estate, and any estate for life, as defined in chapter 500, and
the purchaser's interest under a contract for the conveyance of such an estate.
new text end

new text begin Subd. 4. new text end

new text begin Record, recorded, and recording. new text end

new text begin "Record," "recorded," and "recording"
mean that a document has been delivered to and filed in the office of the county recorder
or registrar of titles, whichever office maintains the records for the real property described
in the document.
new text end

Sec. 3.

new text begin [287A.03] IMPOSITION OF FEE; DETERMINATION OF FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Application of foreclosure remediation fee. new text end

new text begin A foreclosure
remediation fee shall be imposed on each deed or instrument by which any real property
in this state is granted, assigned, transferred, or otherwise conveyed. For purposes of this
fee, the conversion of a corporation to a limited liability company, a limited liability
company to a corporation, a partnership to a limited partnership, a limited partnership to
another limited partnership or other entity, or a similar conversion of one entity to another
does not grant, assign, transfer, or convey real property.
new text end

new text begin Subd. 2. new text end

new text begin Amount of foreclosure remediation fee. new text end

new text begin The foreclosure remediation
fee is $15.
new text end

new text begin Subd. 3. new text end

new text begin Collection of foreclosure remediation fee. new text end

new text begin The foreclosure remediation
fee imposed under this chapter shall be collected as follows.
new text end

new text begin (a) The fee is due within 30 days of the subsequent transfer that caused the fee to be
imposed or at the time a taxable deed or instrument is presented for recording, whichever
is the earlier date.
new text end

new text begin (b) The commissioner of the Minnesota Housing Finance Agency may require the
fee to be documented in a manner prescribed and may require that the documentation be
attached to and recorded as part of the deed or instrument. The county recorder or registrar
of titles shall accept the attachment for recording as part of the deed or instrument and
may not require, as a condition of recording a deed or instrument, evidence that a transfer
is a designated transfer in addition to that required by the commissioner. The attachment
shall not, however, provide actual or constructive notice of the information contained
therein for purposes of determining any interest in the real property. The commissioner
shall prescribe the manner in which the fee due is to be paid and may require grantees of
designated transfers to file with the commissioner subsequent statements verifying that
the fee provided does not apply.
new text end

Sec. 4.

new text begin [287A.04] EXEMPTIONS.
new text end

new text begin The fee imposed by this chapter does not apply to:
new text end

new text begin (1) an executory contract for the sale of real property under which the purchaser is
entitled to or does take possession of the real property, or any assignment or cancellation
of the contract;
new text end

new text begin (2) a will;
new text end

new text begin (3) a plat;
new text end

new text begin (4) a lease, amendment of lease, assignment of lease, or memorandum of lease;
new text end

new text begin (5) a deed, instrument, or writing in which the United States or any agency or
instrumentality thereof is the grantor, assignor, transferor, conveyor, grantee, or assignee;
new text end

new text begin (6) a deed for a cemetery lot or lots;
new text end

new text begin (7) a deed of distribution by a personal representative;
new text end

new text begin (8) a deed to or from a co-owner partitioning an undivided interest in the same
piece of real property;
new text end

new text begin (9) a deed or other instrument of conveyance issued pursuant to a permanent school
fund land exchange under section 92.121 and related laws;
new text end

new text begin (10) a deed, instrument, or writing which grants, creates, modifies, or terminates an
easement; and
new text end

new text begin (11) a decree of marriage dissolution, as defined in section 287.01, subdivision 4,
or a deed or other instrument between the parties to the dissolution made pursuant to
the terms of the decree.
new text end

Sec. 5.

new text begin [287A.05] TAX-FORFEITED LAND.
new text end

new text begin Before a state deed for tax-forfeited land may be issued, the foreclosure remediation
fee must be paid by the purchaser of tax-forfeited land whether the purchase is the result
of a public auction or private sale or a repurchase of tax-forfeited land.
new text end

Sec. 6.

new text begin [287A.06] PERSONS LIABLE.
new text end

new text begin Any person who grants, assigns, transfers, or conveys any real property by a deed or
instrument subject to the foreclosure remediation fee imposed by section 287A.03 shall
be liable for a fee but no public official is liable for a fee with respect to any instrument
executed by the official in connection with official duties.
new text end

Sec. 7.

new text begin [287A.07] PAYMENT OF FEE.
new text end

new text begin The county board shall determine the method for collection of the tax imposed
by section 287A.03.
new text end

Sec. 8.

new text begin [287A.08] DISTRIBUTION OF FEE.
new text end

new text begin The county that collects the foreclosure remediation fee shall retain 80 percent of the
total fee to be used for foreclosure remediation as well as administrative costs associated
with the collection and allocation of the foreclosure remediation fee. The remaining
20 percent of the total fee shall be sent to the Housing Finance Agency. The Housing
Finance Agency shall use the collected fees to fund foreclosure remediation activities
in areas of Minnesota that have been significantly impacted by increased numbers of
foreclosures. The Housing Finance Agency may also use funds to pay for administrative
costs associated with the collection and allocation of the foreclosure remediation fee.
new text end

Sec. 9.

new text begin [287A.09] VIOLATIONS; CIVIL PENALTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Failure to pay full amount. new text end

new text begin A person liable for the foreclosure
remediation fee imposed by section 287A.03 who fails to pay the full amount of
foreclosure remediation fee imposed under this chapter, unless the failure is shown to be
due to reasonable cause, is liable to a civil penalty of $1,000 per violation.
new text end

new text begin Subd. 2. new text end

new text begin Enforcement. new text end

new text begin Failure to pay the full amount of the Minnesota Foreclosure
Remediation Fee shall be enforced pursuant to section 8.31.
new text end

Sec. 10.

new text begin [287A.10] EXPIRATION.
new text end

new text begin The authority to collect the foreclosure remediation fee pursuant to sections 287A.01
to 287A.10 shall expire on August 1, 2012.
new text end