3rd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to commerce; modifying requirements for 1.3 invention developers; amending Minnesota Statutes 1.4 2000, sections 325A.04, by adding a subdivision; 1.5 325A.06, subdivision 1; and 325A.09, subdivision 5, 1.6 and by adding a subdivision; repealing Minnesota 1.7 Statutes 2000, section 325A.06, subdivision 3. 1.8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.9 Section 1. Minnesota Statutes 2000, section 325A.04, is 1.10 amended by adding a subdivision to read: 1.11 Subd. 13. The contract must state that the invention 1.12 developer has fully complied with the bonding requirements of 1.13 section 325A.06. 1.14 Sec. 2. Minnesota Statutes 2000, section 325A.06, 1.15 subdivision 1, is amended to read: 1.16 Subdivision 1. Every invention developer rendering
or, 1.17 offering to render, or advertising invention development 1.18 services in this state shall maintain a continuous corporate 1.19 surety bond issued by a surety admitted to do business in this 1.20 state, and equal to either ten percent of the invention 1.21 developer's gross income from the invention development business 1.22 in this state during the invention developer's preceding fiscal 1.23 year, or $25,000$50,000, whichever is larger. A copy of the 1.24 bond shall be approved by the attorney general and filed with 1.25 the secretary of state before the invention developer 1.26 renders or, offers to render, or advertises invention 2.1 development services in this state. The secretary of state 2.2 shall maintain a list of all outstanding bonds filed under this 2.3 subdivision. The invention developer shall have 90 days after 2.4 the end of each fiscal year within which to change the bond as 2.5 may be necessary to conform to the requirements of this 2.6 subdivision. 2.7 Sec. 3. Minnesota Statutes 2000, section 325A.09, 2.8 subdivision 5, is amended to read: 2.9 Subd. 5. Any person who has been injured by a violation of 2.10 sections 325A.01 to 325A.10 by an invention developer, by any 2.11 false or fraudulent statement, representation or omission of 2.12 material fact by an invention developer or by failure of an 2.13 invention developer to make all the disclosures required by 2.14 sections 325A.01 to 325A.10 may bring a civil action against the 2.15 invention developer for the damages sustained together with 2.16 costs and disbursements, including reasonable attorney's fees. 2.17 The court in its discretion may increase the award of damages to 2.18 an amount not to exceed three times the damages sustained or 2.19 $2,500$10,000, whichever is greater. 2.20 Sec. 4. Minnesota Statutes 2000, section 325A.09, is 2.21 amended by adding a subdivision to read: 2.22 Subd. 8. The statute of limitations on actions arising out 2.23 of a breach of contract for invention development services shall 2.24 be six years as provided in section 541.05, subdivision 1. 2.25 Sec. 5. [REPEALER.] 2.26 Minnesota Statutes 2000, section 325A.06, subdivision 3, is 2.27 repealed the day following final enactment.