HF 1857

1st Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to dispute resolution; providing for 
  1.3             arbitration of disputes; adopting the Uniform 
  1.4             Arbitration Act; amending Minnesota Statutes 2000, 
  1.5             sections 80C.146, subdivision 2; 122A.40, subdivision 
  1.6             15; 122A.41, subdivision 13; 179.09; 325E.37, 
  1.7             subdivision 5; 325F.665, subdivision 6; 469.1762; and 
  1.8             572A.02, subdivision 1; proposing coding for new law 
  1.9             as Minnesota Statutes, chapter 572B; repealing 
  1.10            Minnesota Statutes 2000, sections 572.08; 572.09; 
  1.11            572.10; 572.11; 572.12; 572.13; 572.14; 572.15; 
  1.12            572.16; 572.17; 572.18; 572.19; 572.20; 572.21; 
  1.13            572.22; 572.23; 572.24; 572.25; 572.26; 572.27; 
  1.14            572.28; 572.29; and 572.30. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16                             ARTICLE 1 
  1.17                      UNIFORM ARBITRATION ACT 
  1.18     Section 1.  [572B.01] [DEFINITIONS.] 
  1.19     In sections 572B.01 to 572B.31: 
  1.20     (1) "Arbitration organization" means a neutral association, 
  1.21  agency, board, commission, or other entity that initiates, 
  1.22  sponsors, or administers arbitration proceedings or is involved 
  1.23  in the appointment of arbitrators. 
  1.24     (2) "Arbitrator" means an individual appointed to render an 
  1.25  award in a controversy between persons who are parties to an 
  1.26  agreement to arbitrate. 
  1.27     (3) "Authenticate" means: 
  1.28     (A) to sign; or 
  1.29     (B) to execute or adopt a record by attaching to or 
  1.30  logically associating with the record, an electronic sound, 
  2.1   symbol, or process with the intent to sign the record. 
  2.2      (4) "Court" means a court of competent jurisdiction in this 
  2.3   state. 
  2.4      (5) "Knowledge" means actual knowledge. 
  2.5      (6) "Person" means an individual, corporation, business 
  2.6   trust, estate, trust, partnership, limited liability company, 
  2.7   association, joint venture, government; governmental 
  2.8   subdivision, agency, or instrumentality; public corporation; or 
  2.9   any other legal or commercial entity. 
  2.10     (7) "Record" means information that is inscribed on a 
  2.11  tangible medium or that is stored in an electronic or other 
  2.12  medium and is retrievable in perceivable form.  
  2.13     Sec. 2.  [572B.02] [NOTICE.] 
  2.14     Unless the parties to an agreement to arbitrate otherwise 
  2.15  agree or except as otherwise provided in sections 572B.01 to 
  2.16  572B.31, a person gives notice to another person by taking 
  2.17  action that is reasonably necessary to inform the other person 
  2.18  in ordinary course, whether or not the other person acquires 
  2.19  knowledge of the notice.  A person has notice if the person has 
  2.20  knowledge of the notice or has received notice.  A person 
  2.21  receives notice when it comes to the person's attention or the 
  2.22  notice is delivered at the person's place of residence or place 
  2.23  of business, or at another location held out by the person as a 
  2.24  place of delivery of such communications. 
  2.25     Sec. 3.  [572B.03] [WHEN ACT APPLIES.] 
  2.26     (a) Sections 572B.01 to 572B.31 govern agreements to 
  2.27  arbitrate entered into: 
  2.28     (1) on or after August 1, 2001; and 
  2.29     (2) before August 1, 2001, if all parties to the agreement 
  2.30  to arbitrate or to arbitration proceedings agree in a record to 
  2.31  be governed by sections 572B.01 to 572B.31. 
  2.32     (b) On or after August 1, 2001, sections 572B.01 to 572B.31 
  2.33  govern agreements to arbitrate even if the arbitration agreement 
  2.34  was entered into prior to August 1, 2001. 
  2.35     Sec. 4.  [572B.04] [EFFECT OF AGREEMENT TO ARBITRATE; 
  2.36  NONWAIVABLE PROVISIONS.] 
  3.1      (a) Except as otherwise provided in subsections (b) and 
  3.2   (c), the parties to an agreement to arbitrate or to an 
  3.3   arbitration proceeding may waive or vary the requirements of 
  3.4   sections 572B.01 to 572B.31 to the extent permitted by law. 
  3.5      (b) Before a controversy arises that is subject to an 
  3.6   agreement to arbitrate, the parties to the agreement may not: 
  3.7      (1) waive or vary the requirements of section 572B.05, 
  3.8   subsection (a); 572B.06, subsection (a); 572B.08; 572B.17, 
  3.9   subsection (a) or (b); 572B.26; or 572B.27; 
  3.10     (2) unreasonably restrict the right under section 572B.09 
  3.11  to notice of the initiation of an arbitration proceeding; 
  3.12     (3) unreasonably restrict the right under section 572B.12 
  3.13  to disclosure of any facts by a neutral arbitrator; or 
  3.14     (4) waive the right under section 572B.16 of a party to an 
  3.15  agreement to arbitrate to be represented by a lawyer at any 
  3.16  proceeding or hearing under sections 572B.01 to 572B.31, except 
  3.17  that an employer and a labor organization may waive the right to 
  3.18  representation by a lawyer in a labor arbitration. 
  3.19     (c) The parties to an agreement to arbitrate may not waive 
  3.20  or vary the requirements of this section or section 572B.03, 
  3.21  subsection (a)(1) or (b); 572B.07; 572B.14; 572B.18; 572B.20, 
  3.22  subsection (c) or (d); 572B.22; 572B.23; 572B.24; 572B.25, 
  3.23  subsection (a) or (b); 572B.29; 572B.30; 572B.31; or 572B.32. 
  3.24     Sec. 5.  [572B.05] [APPLICATION TO COURT.] 
  3.25     (a) Except as otherwise provided in section 572B.28, an 
  3.26  application for judicial relief under sections 572B.01 to 
  3.27  572B.31 must be made by motion to the court and heard in the 
  3.28  manner and upon the notice provided by law or rule of court for 
  3.29  making and hearing motions.  
  3.30     (b) Notice of an initial motion to the court under sections 
  3.31  572B.01 to 572B.31 must be served in the manner provided by law 
  3.32  for the service of a summons in a civil action unless a civil 
  3.33  action is already pending involving the agreement to arbitrate. 
  3.34     Sec. 6.  [572B.06] [VALIDITY OF AGREEMENT TO ARBITRATE.] 
  3.35     (a) An agreement contained in a record to submit to 
  3.36  arbitration any existing or subsequent controversy arising 
  4.1   between the parties to the agreement is valid, enforceable, and 
  4.2   irrevocable except upon a ground that exists at law or in equity 
  4.3   for the revocation of contract. 
  4.4      (b) The court shall decide whether an agreement to 
  4.5   arbitrate exists or a controversy is subject to an agreement to 
  4.6   arbitrate, except in the case of a grievance arising under a 
  4.7   collective bargaining agreement when an arbitrator shall decide.
  4.8      (c) An arbitrator shall decide whether a condition 
  4.9   precedent to arbitrability has been fulfilled and whether a 
  4.10  contract containing a valid agreement to arbitrate is 
  4.11  enforceable.  
  4.12     (d) If a party to a judicial proceeding challenges the 
  4.13  existence of, or claims that a controversy is not subject to, an 
  4.14  agreement to arbitrate, the arbitration proceeding may continue 
  4.15  pending final resolution of the issue by the court, unless the 
  4.16  court otherwise orders. 
  4.17     Sec. 7.  [572B.07] [MOTION TO COMPEL OR STAY ARBITRATION.] 
  4.18     (a) On motion of a person showing an agreement to arbitrate 
  4.19  and alleging another person's refusal to arbitrate pursuant to 
  4.20  the agreement, the court shall order the parties to arbitrate if 
  4.21  the refusing party does not appear or does not oppose the 
  4.22  motion.  If the refusing party opposes the motion, the court 
  4.23  shall proceed summarily to decide the issue.  Unless the court 
  4.24  finds that there is no enforceable agreement to arbitrate, it 
  4.25  shall order the parties to arbitrate.  If the court finds that 
  4.26  there is no enforceable agreement, it may not order the parties 
  4.27  to arbitrate. 
  4.28     (b) On motion of a person alleging that an arbitration 
  4.29  proceeding has been initiated or threatened but that there is no 
  4.30  agreement to arbitrate, the court shall proceed summarily to 
  4.31  decide the issue.  If the court finds that there is an 
  4.32  enforceable agreement to arbitrate, it shall order the parties 
  4.33  to arbitrate.  If the court finds that there is no enforceable 
  4.34  agreement, it may not order the parties to arbitrate.  
  4.35     (c) The court may not refuse to order arbitration because 
  4.36  the claim subject to arbitration lacks merit or grounds for the 
  5.1   claim have not been established.  
  5.2      (d) If a proceeding involving a claim referable to 
  5.3   arbitration under an alleged agreement to arbitrate is pending 
  5.4   in court, a motion under this section must be filed in that 
  5.5   court.  Otherwise a motion under this section may be filed in 
  5.6   any court as required by section 572B.27. 
  5.7      (e) If a party files a motion with the court to order 
  5.8   arbitration under this section, the court shall on just terms 
  5.9   stay any judicial proceeding that involves a claim alleged to be 
  5.10  subject to the arbitration until the court renders a final 
  5.11  decision under this section. 
  5.12     (f) If the court orders arbitration, the court shall on 
  5.13  just terms stay any judicial proceeding that involves a claim 
  5.14  subject to the arbitration.  If a claim subject to the 
  5.15  arbitration is severable, the court may sever it and limit the 
  5.16  stay to that claim. 
  5.17     Sec. 8.  [572B.08] [PROVISIONAL REMEDIES.] 
  5.18     (a) Before an arbitrator is appointed and is authorized and 
  5.19  able to act, the court, upon motion of a party to an arbitration 
  5.20  proceeding and for good cause shown, may enter an order for 
  5.21  provisional remedies to protect the effectiveness of the 
  5.22  arbitration proceeding to the same extent and under the same 
  5.23  conditions as if the controversy were the subject of a civil 
  5.24  action. 
  5.25     (b) After an arbitrator is appointed and is authorized and 
  5.26  able to act, the arbitrator may issue such orders for 
  5.27  provisional remedies, including interim awards, as the 
  5.28  arbitrator finds necessary to protect the effectiveness of the 
  5.29  arbitration proceeding and to promote the fair and expeditious 
  5.30  resolution of the controversy, to the same extent and under the 
  5.31  same conditions as if the controversy were the subject of a 
  5.32  civil action.  After an arbitrator is appointed and is 
  5.33  authorized and able to act, a party to an arbitration proceeding 
  5.34  may move the court for a provisional remedy only if the matter 
  5.35  is urgent and the arbitrator is not able to act timely or if the 
  5.36  arbitrator cannot provide an adequate remedy. 
  6.1      (c) A motion to a court for a provisional remedy under 
  6.2   subsection (a) or (b) does not waive any right of arbitration. 
  6.3      Sec. 9.  [572B.09] [INITIATION OF ARBITRATION.] 
  6.4      (a) A person initiates an arbitration proceeding by giving 
  6.5   notice in a record to the other parties to the agreement to 
  6.6   arbitrate in the agreed manner between the parties or, in the 
  6.7   absence of agreement, by mail certified or registered, return 
  6.8   receipt requested and obtained, or by service as authorized for 
  6.9   the initiation of a civil action.  The notice must describe the 
  6.10  nature of the controversy and the remedy sought. 
  6.11     (b) Unless a person interposes an objection as to lack or 
  6.12  insufficiency of notice under section 572B.15, subsection (c), 
  6.13  not later than the commencement of the arbitration hearing, the 
  6.14  person's appearance at the hearing waives any objection to lack 
  6.15  of or insufficiency of notice.  
  6.16     Sec. 10.  [572B.10] [CONSOLIDATION OF SEPARATE ARBITRATION 
  6.17  PROCEEDINGS.] 
  6.18     (a) Except as otherwise provided in subsections (c) and 
  6.19  (d), upon motion of a party to an agreement to arbitrate or to 
  6.20  an arbitration proceeding, the court may order consolidation of 
  6.21  separate arbitration proceedings as to all or some of the claims 
  6.22  if: 
  6.23     (1) there are separate agreements to arbitrate or separate 
  6.24  arbitration proceedings between the same persons or one of them 
  6.25  is a party to a separate agreement to arbitrate or a separate 
  6.26  arbitration proceeding with a third person; 
  6.27     (2) the claims subject to the agreements to arbitrate arise 
  6.28  in substantial part from the same transaction or series of 
  6.29  related transactions; 
  6.30     (3) the existence of a common issue of law or fact creates 
  6.31  the possibility of conflicting decisions in the separate 
  6.32  arbitration proceedings; and 
  6.33     (4) prejudice resulting from a failure to consolidate is 
  6.34  not outweighed by the risk of undue delay or prejudice to the 
  6.35  rights of or hardship to parties opposing consolidation. 
  6.36     (b) The court may order consolidation of separate 
  7.1   arbitration proceedings as to certain claims and allow other 
  7.2   claims to be resolved in separate arbitration proceedings.  
  7.3      (c) The court may not order consolidation of the claims of 
  7.4   a party to an agreement to arbitrate which prohibits 
  7.5   consolidation. 
  7.6      (d) An arbitrator shall decide whether to consolidate one 
  7.7   or more grievances arising under a collective bargaining 
  7.8   agreement. 
  7.9      Sec. 11.  [572B.11] [APPOINTMENT OF ARBITRATOR; SERVICE AS 
  7.10  A NEUTRAL ARBITRATOR.] 
  7.11     (a) If the parties to an agreement to arbitrate agree on a 
  7.12  method for appointing an arbitrator, that method must be 
  7.13  followed, unless the method fails.  If the parties have not 
  7.14  agreed on a method, the agreed method fails, or an arbitrator 
  7.15  appointed fails or is unable to act and a successor has not been 
  7.16  appointed, the court, on motion of a party to the arbitration 
  7.17  proceeding, shall appoint the arbitrator.  The arbitrator so 
  7.18  appointed has all the powers of an arbitrator designated in the 
  7.19  agreement to arbitrate or appointed pursuant to the agreed 
  7.20  method.  
  7.21     (b) An arbitrator who has a known, direct, and material 
  7.22  interest in the outcome of the arbitration proceeding or a 
  7.23  known, existing, and substantial relationship with a party may 
  7.24  not serve as a neutral arbitrator. 
  7.25     Sec. 12.  [572B.12] [DISCLOSURE BY ARBITRATOR.] 
  7.26     (a) Before accepting appointment, an individual who is 
  7.27  requested to serve as an arbitrator, after making a reasonable 
  7.28  inquiry, shall disclose to all parties to the agreement to 
  7.29  arbitrate and arbitration proceeding and to any other 
  7.30  arbitrators any known facts that a reasonable person would 
  7.31  consider likely to affect the impartiality of the arbitrator in 
  7.32  the arbitration proceeding, including: 
  7.33     (1) a financial or personal interest in the outcome of the 
  7.34  arbitration proceeding; and 
  7.35     (2) an existing or past relationship with any of the 
  7.36  parties to the agreement to arbitrate or the arbitration 
  8.1   proceeding, their counsel or representatives, witnesses, or the 
  8.2   other arbitrators.  
  8.3      (b) An arbitrator has a continuing obligation to disclose 
  8.4   to all parties to the agreement to arbitrate and arbitration 
  8.5   proceedings and to any other arbitrators any facts that the 
  8.6   arbitrator learns after accepting appointment which a reasonable 
  8.7   person would consider likely to affect the impartiality of the 
  8.8   arbitrator.  
  8.9      (c) If an arbitrator discloses a fact required by 
  8.10  subsection (a) or (b) to be disclosed and a party timely objects 
  8.11  to the appointment or continued service of the arbitrator based 
  8.12  upon the disclosure, the objection may be a ground to vacate the 
  8.13  award under section 572B.23, subsection (a)(2). 
  8.14     (d) If the arbitrator did not disclose a fact as required 
  8.15  by subsection (a) or (b), upon timely objection of a party, an 
  8.16  award may be vacated under section 572B.23, subsection (a)(2). 
  8.17     (e) An arbitrator appointed as a neutral who does not 
  8.18  disclose a known, direct, and material interest in the outcome 
  8.19  of the arbitration proceeding or a known, existing, and 
  8.20  substantial relationship with a party is presumed to act with 
  8.21  evident partiality under section 572B.23, subsection (a)(2). 
  8.22     (f) If the parties to an arbitration proceeding agree to 
  8.23  the procedures of an arbitration organization or any other 
  8.24  procedures for challenges to arbitrators before an award is 
  8.25  made, substantial compliance with those procedures is a 
  8.26  condition precedent to a motion to vacate an award on that 
  8.27  ground under section 572B.23, subsection (a)(2). 
  8.28     Sec. 13.  [572B.13] [ACTION BY MAJORITY.] 
  8.29     If there is more than one arbitrator, the powers of the 
  8.30  arbitrators must be exercised by a majority of them.  
  8.31     Sec. 14.  [572B.14] [IMMUNITY OF ARBITRATOR; COMPETENCY TO 
  8.32  TESTIFY; ATTORNEY'S FEES AND COSTS.] 
  8.33     (a) An arbitrator or an arbitration organization acting in 
  8.34  such capacity is immune from civil liability to the same extent 
  8.35  as a judge of a court in this state acting in a judicial 
  8.36  capacity.  
  9.1      (b) The immunity afforded by this section supplements any 
  9.2   other immunity.  
  9.3      (c) If an arbitrator does not make a disclosure required by 
  9.4   section 572B.12, the nondisclosure does not cause a loss of 
  9.5   immunity under this section.  
  9.6      (d) In any judicial, administrative, or similar proceeding, 
  9.7   an arbitrator or representative of an arbitration organization 
  9.8   is not competent to testify or required to produce records as to 
  9.9   any statement, conduct, decision, or ruling occurring during the 
  9.10  arbitration proceeding to the same extent as a judge of a court 
  9.11  of this state acting in a judicial capacity.  This subsection 
  9.12  does not apply: 
  9.13     (1) to the extent necessary to determine the claim of an 
  9.14  arbitrator or an arbitration organization or a representative of 
  9.15  the arbitration organization against a party to the arbitration 
  9.16  proceeding; or 
  9.17     (2) if a party to the arbitration proceeding files a motion 
  9.18  to vacate an award under section 572B.23, subsection (a)(1) or 
  9.19  (2) and establishes prima facie that a ground for vacating the 
  9.20  award exists. 
  9.21     (e) If a person commences a civil action against an 
  9.22  arbitrator, an arbitration organization, or a representative of 
  9.23  an arbitration organization arising from the services of the 
  9.24  arbitrator, organization, or representative or if a person seeks 
  9.25  to compel an arbitrator or a representative of an arbitration 
  9.26  organization to testify in violation of subsection (d), and the 
  9.27  court decides that the arbitrator, arbitration organization, or 
  9.28  representative of an arbitration organization is immune from 
  9.29  civil liability or that the arbitrator or representative of the 
  9.30  organization is incompetent to testify, the court shall award to 
  9.31  the arbitrator, organization, or representative reasonable 
  9.32  attorney's fees and other reasonable expenses of litigation. 
  9.33     Sec. 15.  [572B.15] [ARBITRATION PROCESS.] 
  9.34     (a) The arbitrator may conduct the arbitration in such 
  9.35  manner as the arbitrator considers appropriate so as to aid in 
  9.36  the fair and expeditious disposition of the proceeding.  The 
 10.1   authority conferred upon the arbitrator includes the power to 
 10.2   hold conferences with the parties to the arbitration proceeding 
 10.3   before the hearing and to determine the admissibility, 
 10.4   relevance, materiality, and weight of any evidence. 
 10.5      (b) The arbitrator may decide a request for summary 
 10.6   disposition of a claim or particular issue by agreement of all 
 10.7   interested parties or upon request of one party to the 
 10.8   arbitration proceeding if that party gives notice to all other 
 10.9   parties to the arbitration proceeding and the other parties have 
 10.10  a reasonable opportunity to respond. 
 10.11     (c) The arbitrator shall set a time and place for a hearing 
 10.12  and give notice of the hearing not less than five days before 
 10.13  the hearing.  Unless a party to the arbitration proceeding 
 10.14  interposes an objection to lack of or insufficiency of notice 
 10.15  not later than the commencement of the hearing, the party's 
 10.16  appearance at the hearing waives the objection.  Upon request of 
 10.17  a party to the arbitration proceeding and for good cause shown, 
 10.18  or upon the arbitrator's own initiative, the arbitrator may 
 10.19  adjourn the hearing from time to time as necessary but may not 
 10.20  postpone the hearing to a time later than that fixed by the 
 10.21  agreement to arbitrate for making the award unless the parties 
 10.22  to the arbitration proceeding consent to a later date.  The 
 10.23  arbitrator may hear and decide the controversy upon the evidence 
 10.24  produced although a party who was duly notified of the 
 10.25  arbitration proceeding did not appear.  The court, on request, 
 10.26  may direct the arbitrator to promptly conduct the hearing and 
 10.27  render a timely decision. 
 10.28     (d) If an arbitrator orders a hearing under subsection (c), 
 10.29  the parties to the arbitration proceeding are entitled to be 
 10.30  heard, to present evidence material to the controversy, and to 
 10.31  cross-examine witnesses appearing at the hearing.  
 10.32     (e) If there is more than one arbitrator, all of them shall 
 10.33  conduct the hearing under subsection (c), however, a majority 
 10.34  shall decide any issue and make a final award.  
 10.35     (f) If an arbitrator ceases, or is unable, to act during 
 10.36  the arbitration proceeding, a replacement arbitrator must be 
 11.1   appointed in accordance with section 572B.11 to continue the 
 11.2   hearing and to decide the controversy. 
 11.3      Sec. 16.  [572B.16] [REPRESENTATION BY LAWYER.] 
 11.4      A party to an arbitration proceeding may be represented by 
 11.5   a lawyer. 
 11.6      Sec. 17.  [572B.17] [WITNESSES; SUBPOENAS; DEPOSITIONS; 
 11.7   DISCOVERY.] 
 11.8      (a) An arbitrator may issue a subpoena for the attendance 
 11.9   of a witness and for the production of records and other 
 11.10  evidence at any hearing and may administer oaths.  A subpoena 
 11.11  must be served in the manner for service of subpoenas in a civil 
 11.12  action and, upon motion to the court by a party to the 
 11.13  arbitration proceeding or the arbitrator, enforced in the manner 
 11.14  for enforcement of subpoenas in a civil action. 
 11.15     (b) On request of a party to or a witness in an arbitration 
 11.16  proceeding, an arbitrator may permit a deposition of any 
 11.17  witness, including a witness who cannot be subpoenaed for or is 
 11.18  unable to attend a hearing, to be taken under conditions 
 11.19  determined by the arbitrator for use as evidence in order to 
 11.20  make the proceeding fair, expeditious, and cost effective. 
 11.21     (c) An arbitrator may permit such discovery as the 
 11.22  arbitrator decides is appropriate in the circumstances, taking 
 11.23  into account the needs of the parties to the arbitration 
 11.24  proceeding and other affected persons and the desirability of 
 11.25  making the proceeding fair, expeditious, and cost effective.  
 11.26     (d) If an arbitrator permits discovery under subsection 
 11.27  (c), the arbitrator may order a party to the arbitration 
 11.28  proceeding to comply with the arbitrator's discovery-related 
 11.29  orders, including the issuance of a subpoena for the attendance 
 11.30  of a witness and for the production of records and other 
 11.31  evidence at a discovery proceeding, and may take action against 
 11.32  a party to the arbitration proceeding who does not comply to the 
 11.33  extent permitted by law as if the controversy were the subject 
 11.34  of a civil action in this state. 
 11.35     (e) An arbitrator may issue a protective order to prevent 
 11.36  the disclosure of privileged information, confidential 
 12.1   information, trade secrets, and other information protected from 
 12.2   disclosure as if the controversy were the subject of a civil 
 12.3   action in this state. 
 12.4      (f) All laws compelling a person under subpoena to testify 
 12.5   and all fees for attending a judicial proceeding, a deposition, 
 12.6   or a discovery proceeding as a witness apply to an arbitration 
 12.7   proceeding as if the controversy were the subject of a civil 
 12.8   action in this state. 
 12.9      (g) The court may enforce a subpoena or discovery-related 
 12.10  order for the attendance of a witness within this state and for 
 12.11  the production of records and other evidence issued by an 
 12.12  arbitrator in connection with an arbitration proceeding in 
 12.13  another state upon conditions determined by the court in order 
 12.14  to make the arbitration proceeding fair, expeditious, and cost 
 12.15  effective.  A subpoena or discovery-related order issued by an 
 12.16  arbitrator must be served in the manner provided by law for 
 12.17  service of subpoenas in a civil action in this state and, upon 
 12.18  motion to the court by a party to the arbitration proceeding or 
 12.19  the arbitrator, enforced in the manner provided by law for 
 12.20  enforcement of subpoenas in a civil action in this state. 
 12.21     Sec. 18.  [572B.18] [COURT ENFORCEMENT OF PRE-AWARD RULING 
 12.22  BY ARBITRATOR.] 
 12.23     If an arbitrator makes a pre-award ruling in favor of a 
 12.24  party to the arbitration proceeding, the party may request the 
 12.25  arbitrator to incorporate the ruling into an award under section 
 12.26  572B.19.  The successful party may file a motion to the court 
 12.27  for an expedited order to confirm the award under section 
 12.28  572B.22, in which case the court shall proceed summarily to 
 12.29  decide the motion.  The court shall issue an order to confirm 
 12.30  the award unless the court vacates, modifies, or corrects the 
 12.31  award of the arbitrator pursuant to sections 572B.23 and 572B.24.
 12.32     Sec. 19.  [572B.19] [AWARD.] 
 12.33     (a) An arbitrator shall make a record of an award.  The 
 12.34  record must be authenticated by any arbitrator who concurs with 
 12.35  the award.  The arbitrator or the arbitration organization shall 
 12.36  give notice of the award, including a copy of the award, to each 
 13.1   party to the arbitration proceeding.  
 13.2      (b) An award must be made within the time specified by the 
 13.3   agreement to arbitrate or, if not specified therein, within the 
 13.4   time ordered by the court.  The court may extend or the parties 
 13.5   to the arbitration proceeding may agree in a record to extend 
 13.6   the time.  The court or the parties may do so within or after 
 13.7   the time specified or ordered.  A party waives any objection 
 13.8   that an award was not timely made unless the party gives notice 
 13.9   of the objection to the arbitrator before receiving notice of 
 13.10  the award. 
 13.11     Sec. 20.  [572B.20] [CHANGE OF AWARD BY ARBITRATOR.] 
 13.12     (a) On motion to an arbitrator by a party to the 
 13.13  arbitration proceeding, the arbitrator may modify or correct an 
 13.14  award: 
 13.15     (1) upon the grounds stated in section 572B.24, subsection 
 13.16  (a)(1) or (3); 
 13.17     (2) because the arbitrator has not made a final and 
 13.18  definite award upon a claim submitted by the parties to the 
 13.19  arbitration proceeding; or 
 13.20     (3) to clarify the award. 
 13.21     (b) A motion under subsection (a) must be made and served 
 13.22  on all parties within 20 days after the movant receives notice 
 13.23  of the award. 
 13.24     (c) A party to the arbitration proceeding must serve any 
 13.25  objections to the motion within ten days after receipt of the 
 13.26  notice.  
 13.27     (d) If a motion to the court is pending under sections 
 13.28  572B.22, 572B.23, and 572B.24, the court may submit the claim to 
 13.29  the arbitrator to consider whether to modify or correct the 
 13.30  award: 
 13.31     (1) upon the grounds stated in section 572B.24, subsection 
 13.32  (a)(1) or (3); 
 13.33     (2) because the arbitrator has not made a final and 
 13.34  definite award upon a claim submitted by the parties to the 
 13.35  arbitration proceeding; or 
 13.36     (3) to clarify the award. 
 14.1      (e) An award modified or corrected pursuant to this section 
 14.2   is subject to sections 572B.22, 572B.23, and 572B.24. 
 14.3      Sec. 21.  [572B.21] [REMEDIES; FEES AND EXPENSES OF 
 14.4   ARBITRATION PROCEEDING.] 
 14.5      (a) An arbitrator may award punitive damages or other 
 14.6   exemplary relief if punitive damages are authorized by the 
 14.7   agreement of the parties to the arbitration proceeding and if 
 14.8   such an award is authorized by law in a civil action involving 
 14.9   the same claim and the evidence produced at the hearing 
 14.10  justifies the award under the legal standards otherwise 
 14.11  applicable to the claim. 
 14.12     (b) An arbitrator may award attorney's fees and other 
 14.13  reasonable expenses of arbitration if such an award is 
 14.14  authorized by law in a civil action involving the same claim and 
 14.15  by the agreement of the parties to the arbitration proceeding. 
 14.16     (c) As to all remedies other than those authorized by 
 14.17  subsections (a) and (b), an arbitrator may order such remedies 
 14.18  as the arbitrator considers just and appropriate under the 
 14.19  circumstances of the arbitration proceeding.  The fact that such 
 14.20  a remedy could not or would not be granted by the court is not a 
 14.21  ground for refusing to confirm an award under section 572B.22 or 
 14.22  for vacating an award under section 572B.23. 
 14.23     (d) An arbitrator's expenses and fees, together with other 
 14.24  expenses, must be paid as provided in the award. 
 14.25     (e) If an arbitrator awards punitive damages or other 
 14.26  exemplary relief under subsection (a), the arbitrator shall 
 14.27  specify in the award the basis in fact justifying and the basis 
 14.28  in law authorizing the award and state separately the amount of 
 14.29  the punitive damages or other exemplary relief. 
 14.30     Sec. 22.  [572B.22] [CONFIRMATION OF AWARD.] 
 14.31     After a party to the arbitration proceeding receives notice 
 14.32  of an award, the party may file a motion with the court for an 
 14.33  order confirming the award, at which time the court shall issue 
 14.34  such an order unless the award is modified or corrected pursuant 
 14.35  to section 572B.20 or 572B.24 or is vacated pursuant to section 
 14.36  572B.23.  
 15.1      Sec. 23.  [572B.23] [VACATING AWARD.] 
 15.2      (a) Upon motion of a party to the arbitration proceeding, 
 15.3   the court shall vacate an award if: 
 15.4      (1) the award was procured by corruption, fraud, or other 
 15.5   undue means; 
 15.6      (2) there was: 
 15.7      (A) evident partiality by an arbitrator appointed as a 
 15.8   neutral; 
 15.9      (B) corruption by an arbitrator; or 
 15.10     (C) misconduct by an arbitrator prejudicing the rights of a 
 15.11  party to the arbitration proceeding; 
 15.12     (3) an arbitrator refused to postpone the hearing upon 
 15.13  showing of sufficient cause for postponement, refused to 
 15.14  consider evidence material to the controversy, or otherwise 
 15.15  conducted the hearing contrary to section 572B.15, so as to 
 15.16  prejudice substantially the rights of a party to the arbitration 
 15.17  proceeding; 
 15.18     (4) an arbitrator exceeded the arbitrator's powers; 
 15.19     (5) there was no agreement to arbitrate, unless the person 
 15.20  participated in the arbitration proceeding without raising the 
 15.21  objection under section 572B.15, subsection (c), not later than 
 15.22  the commencement of the arbitration hearing; or 
 15.23     (6) the arbitration was conducted without proper notice of 
 15.24  the initiation of an arbitration as required in section 572B.09 
 15.25  so as to prejudice substantially the rights of a party to the 
 15.26  arbitration proceeding. 
 15.27     (b) A motion under this section must be filed within 90 
 15.28  days after the movant receives notice of the award in a record 
 15.29  pursuant to section 572B.19 or within 90 days after the movant 
 15.30  receives notice of an arbitrator's award in a record on a motion 
 15.31  to modify or correct an award pursuant to section 572B.20, 
 15.32  unless the motion is predicated upon the ground that the award 
 15.33  was procured by corruption, fraud, or other undue means, in 
 15.34  which case it must be filed within 90 days after such a ground 
 15.35  is known or by the exercise of reasonable care should have been 
 15.36  known by the movant. 
 16.1      (c) In vacating an award on a ground other than that set 
 16.2   forth in subsection (a)(5), the court may order a rehearing 
 16.3   before a new arbitrator.  If the award is vacated on a ground 
 16.4   stated in subsection (a)(3), (4), or (6), the court may order a 
 16.5   rehearing before the arbitrator who made the award or the 
 16.6   arbitrator's successor.  The arbitrator must render the decision 
 16.7   in the rehearing within the same time as that provided in 
 16.8   section 572B.19, subsection (b), for an award. 
 16.9      (d) If a motion to vacate an award is denied and a motion 
 16.10  to modify or correct the award is not pending, the court shall 
 16.11  confirm the award. 
 16.12     Sec. 24.  [572B.24] [MODIFICATION OR CORRECTION OF AWARD.] 
 16.13     (a) Upon motion filed within 90 days after the movant 
 16.14  receives notice of the award in a record pursuant to section 
 16.15  572B.19 or within 90 days after the movant receives notice of an 
 16.16  arbitrator's award in a record on a motion to modify or correct 
 16.17  an award pursuant to section 572B.20, the court shall modify or 
 16.18  correct the award if: 
 16.19     (1) there was an evident mathematical miscalculation or an 
 16.20  evident mistake in the description of a person, thing, or 
 16.21  property referred to in the award; 
 16.22     (2) the arbitrator has made an award on a claim not 
 16.23  submitted to the arbitrator and the award may be corrected 
 16.24  without affecting the merits of the decision upon the claims 
 16.25  submitted; or 
 16.26     (3) the award is imperfect in a matter of form not 
 16.27  affecting the merits of the decision on the claims submitted. 
 16.28     (b) If a motion filed under subsection (a) is granted, the 
 16.29  court shall modify or correct and confirm the award as modified 
 16.30  or corrected.  Otherwise, the court shall confirm the award.  
 16.31     (c) A motion to modify or correct an award pursuant to this 
 16.32  section may be joined with a motion to vacate the award. 
 16.33     Sec. 25.  [572B.25] [JUDGMENT ON AWARD; ATTORNEY'S FEES AND 
 16.34  LITIGATION EXPENSES.] 
 16.35     (a) Upon granting an order confirming, vacating without 
 16.36  directing a rehearing, modifying, or correcting an award, the 
 17.1   court shall enter a judgment in conformity therewith.  The 
 17.2   judgment may be recorded, docketed, and enforced as any other 
 17.3   judgment in a civil action.  
 17.4      (b) A court may allow reasonable costs of the motion and 
 17.5   subsequent judicial proceedings.  
 17.6      (c) On application of a prevailing party to a contested 
 17.7   judicial proceeding under section 572B.22, 572B.23, or 572B.24, 
 17.8   the court may add to a judgment confirming, vacating without 
 17.9   directing a rehearing, modifying, or correcting an award, 
 17.10  attorney's fees and other reasonable expenses of litigation 
 17.11  incurred in a judicial proceeding after the award is made. 
 17.12     Sec. 26.  [572B.26] [JURISDICTION.] 
 17.13     (a) A court of this state having jurisdiction over the 
 17.14  dispute and the parties may enforce an agreement to arbitrate.  
 17.15     (b) An agreement to arbitrate providing for arbitration in 
 17.16  this state confers exclusive jurisdiction on the court to enter 
 17.17  judgment on an award under sections 572B.01 to 572B.31. 
 17.18     Sec. 27.  [572B.27] [VENUE.] 
 17.19     A motion pursuant to section 572B.05 must be filed in the 
 17.20  court of the county in which the agreement to arbitrate 
 17.21  specifies the arbitration hearing is to be held or, if the 
 17.22  hearing has been held, in the court of the county in which it 
 17.23  was held.  Otherwise, the motion must be filed in any county in 
 17.24  which an adverse party resides or has a place of business or, if 
 17.25  no adverse party has a residence or place of business in this 
 17.26  state, in the court of any country in this state.  All 
 17.27  subsequent motions must be filed in the court hearing the 
 17.28  initial motion unless the court otherwise directs. 
 17.29     Sec. 28.  [572B.28] [APPEALS.] 
 17.30     (a) An appeal may be taken from: 
 17.31     (1) an order denying a motion to compel arbitration; 
 17.32     (2) an order granting a motion to stay arbitration; 
 17.33     (3) an order confirming or denying confirmation of an 
 17.34  award; 
 17.35     (4) an order modifying or correcting an award; 
 17.36     (5) an order vacating an award without directing a 
 18.1   rehearing; or 
 18.2      (6) a final judgment entered pursuant to sections 572B.01 
 18.3   to 572B.31. 
 18.4      (b) An appeal under this section must be taken as from an 
 18.5   order or a judgment in a civil action.  
 18.6      Sec. 29.  [572B.29] [UNIFORMITY OF APPLICATION AND 
 18.7   CONSTRUCTION.] 
 18.8      In applying and construing this uniform act, consideration 
 18.9   must be given to the need to promote uniformity of the law with 
 18.10  respect to its subject matter among states that enact it. 
 18.11     Sec. 30.  [572B.30] [SAVINGS CLAUSE.] 
 18.12     Sections 572B.01 to 572B.31 do not affect an action or 
 18.13  proceeding commenced or right accrued before sections 572B.01 to 
 18.14  572B.31 take effect. 
 18.15     Sec. 31.  [572B.31] [RELATIONSHIP TO ELECTRONIC SIGNATURES 
 18.16  IN GLOBAL AND NATIONAL COMMERCE ACT.] 
 18.17     The provisions of sections 572B.01 to 572B.31 governing the 
 18.18  legal effect, validity, and enforceability of electronic records 
 18.19  or electronic signatures, and of contracts performed with the 
 18.20  use of such records or signatures conform to the requirements of 
 18.21  section 102 of the Electronic Signatures in Global and National 
 18.22  Commerce Act.  
 18.23     Sec. 32.  [REPEALER.] 
 18.24     Minnesota Statutes 2000, sections 572.08; 572.09; 572.10; 
 18.25  572.11; 572.12; 572.13; 572.14; 572.15; 572.16; 572.17; 572.18; 
 18.26  572.19; 572.20; 572.21; 572.22; 572.23; 572.24; 572.25; 572.26; 
 18.27  572.27; 572.28; 572.29; and 572.30, are repealed. 
 18.28     Sec. 33.  [EFFECTIVE DATE.] 
 18.29     Sections 1 to 32 are effective August 1, 2001. 
 18.30                             ARTICLE 2 
 18.31                       CONFORMING AMENDMENTS 
 18.32     Section 1.  Minnesota Statutes 2000, section 80C.146, 
 18.33  subdivision 2, is amended to read: 
 18.34     Subd. 2.  [BUILDING ALTERATIONS.] (a) A motor fuel 
 18.35  franchise agreement entered into or renewed, extended, or 
 18.36  modified, after April 27, 1988, must comply with this 
 19.1   subdivision if it allows the franchisor to modify, remodel, or 
 19.2   alter a full-service station operated by a franchisee by 
 19.3   eliminating one or more service bays.  The agreement must 
 19.4   provide that if the motor fuel franchisor eliminates one or more 
 19.5   service bays during the term of the agreement, the franchisor 
 19.6   must first pay to the franchisee in cash an amount that fairly 
 19.7   and adequately compensates the franchisee for the loss of the 
 19.8   service and repair business.  The amount of compensation must be 
 19.9   determined without regard to: 
 19.10     (1) the income or loss the franchisee may realize as a 
 19.11  result of any subsequent or replacement business the franchisee 
 19.12  may be entitled to operate on the premises leased from the motor 
 19.13  fuel franchisor; or 
 19.14     (2) the income or loss the franchisee may realize by 
 19.15  relocating the franchisee service and repair business or by 
 19.16  acquiring another service and repair business. 
 19.17     (b) The commissioner shall require inclusion of the 
 19.18  provision specified in paragraph (a) in the franchise agreement 
 19.19  as a condition of registration of the agreement.  An agreement 
 19.20  subject to this subdivision that does not contain the provision 
 19.21  is deemed to contain the provision.  The provision may not be 
 19.22  waived or modified except in a writing signed by the franchisee 
 19.23  that is executed at least 30 days after the execution of the 
 19.24  franchise agreement, is separate and independent from the 
 19.25  franchise agreement, and is based upon adequate consideration.  
 19.26  Adequate consideration may include, without limitation, an 
 19.27  agreement to purchase the entire business operated by the 
 19.28  franchisee or an agreement to provide equivalent repair 
 19.29  facilities for use by the franchisee. 
 19.30     (c) If the franchisor and the franchisee are unable to 
 19.31  agree on the amount of compensation, and either the franchisor 
 19.32  or the franchisee demands arbitration, the matter must be 
 19.33  submitted to binding arbitration in accordance with sections 
 19.34  572.08 to 572.30 572B.01 to 572B.31 and the rules of the 
 19.35  American Arbitration Association.  Within 30 days after the 
 19.36  demand for arbitration, the franchisor and the franchisee shall 
 20.1   each select an arbitrator.  The two arbitrators shall select a 
 20.2   third arbitrator within 45 days after the demand for 
 20.3   arbitration.  The franchisor and the franchisee shall pay the 
 20.4   fees and expenses of the arbitrator each selects, and the 
 20.5   franchisor and franchisee shall share equally the fees and 
 20.6   expenses of the third arbitrator. 
 20.7      (d) Nothing in this subdivision prohibits a motor fuel 
 20.8   franchisor from altering, modifying, or remodeling a 
 20.9   full-service station, without payment to the franchisee, 
 20.10  following the expiration of the franchise relationship based 
 20.11  upon termination or nonrenewal of the franchise relationship in 
 20.12  accordance with United States Code, title 15, section 
 20.13  2802(b)(3)(D). 
 20.14     Sec. 2.  Minnesota Statutes 2000, section 122A.40, 
 20.15  subdivision 15, is amended to read: 
 20.16     Subd. 15.  [HEARING AND DETERMINATION BY ARBITRATOR.] A 
 20.17  teacher whose termination is proposed under subdivision 7 on 
 20.18  grounds specified in subdivision 9, or whose discharge is 
 20.19  proposed under subdivision 13, may elect a hearing before an 
 20.20  arbitrator instead of the school board.  The hearing is governed 
 20.21  by this subdivision.  
 20.22     (a) The teacher must make a written request for a hearing 
 20.23  before an arbitrator within 14 days after receiving notification 
 20.24  of proposed termination on grounds specified in subdivision 9 or 
 20.25  within ten days of receiving notification of proposed discharge 
 20.26  under subdivision 13.  If a request for a hearing does not 
 20.27  specify that the hearing be before an arbitrator, it is 
 20.28  considered to be a request for a hearing before the school board.
 20.29     (b) If the teacher and the school board are unable to 
 20.30  mutually agree on an arbitrator, the board must request from the 
 20.31  bureau of mediation services a list of five persons to serve as 
 20.32  an arbitrator.  If the matter to be heard is a proposed 
 20.33  termination on grounds specified in subdivision 9, arbitrators 
 20.34  on the list must be available to hear the matter and make a 
 20.35  decision within a time frame that will allow the board to comply 
 20.36  with all statutory timelines relating to termination.  If the 
 21.1   teacher and the board are unable to mutually agree on an 
 21.2   arbitrator from the list provided, the parties shall alternately 
 21.3   strike names from the list until the name of one arbitrator 
 21.4   remains.  The person remaining after the striking procedure must 
 21.5   be the arbitrator.  If the parties are unable to agree on who 
 21.6   shall strike the first name, the question must be decided by a 
 21.7   flip of a coin.  The teacher and the school board must share 
 21.8   equally the costs and fees of the arbitrator. 
 21.9      (c) The arbitrator shall determine, by a preponderance of 
 21.10  the evidence, whether the grounds for termination or discharge 
 21.11  specified in subdivision 9 or 13 exist to support the proposed 
 21.12  termination or discharge.  A lesser penalty than termination or 
 21.13  discharge may be imposed by the arbitrator only to the extent 
 21.14  that either party proposes such lesser penalty in the 
 21.15  proceeding.  In making the determination, the arbitration 
 21.16  proceeding is governed by sections 572.11 to 572.17 572B.15 to 
 21.17  572B.28 and by the collective bargaining agreement applicable to 
 21.18  the teacher.  
 21.19     (d) An arbitration hearing conducted under this subdivision 
 21.20  is a meeting for preliminary consideration of allegations or 
 21.21  charges within the meaning of section 13D.05, subdivision 3, 
 21.22  paragraph (a), and must be closed, unless the teacher requests 
 21.23  it to be open. 
 21.24     (e) The arbitrator's award is final and binding on the 
 21.25  parties, subject to sections 572.18 to 572.26 572B.18 to 572B.28.
 21.26     Sec. 3.  Minnesota Statutes 2000, section 122A.41, 
 21.27  subdivision 13, is amended to read: 
 21.28     Subd. 13.  [HEARING AND DETERMINATION BY ARBITRATOR.] A 
 21.29  teacher against whom charges have been filed alleging any cause 
 21.30  for discharge or demotion specified in subdivision 6, clause 
 21.31  (1), (2), (3), or (4), may elect a hearing before an arbitrator 
 21.32  instead of the school board.  The hearing is governed by this 
 21.33  subdivision.  
 21.34     (a) The teacher must make a written request for a hearing 
 21.35  before an arbitrator within ten days after receiving a written 
 21.36  notice of the filing of charges required by subdivision 7.  
 22.1   Failure to request a hearing before an arbitrator during this 
 22.2   period is considered acquiescence to a hearing before the board. 
 22.3      (b) If the teacher and the school board are unable to 
 22.4   mutually agree on an arbitrator, the board must request from the 
 22.5   bureau of mediation services a list of five persons to serve as 
 22.6   an arbitrator.  If the teacher and the school board are unable 
 22.7   to mutually agree on an arbitrator from the list provided, the 
 22.8   parties shall alternately strike names from the list until the 
 22.9   name of one arbitrator remains.  The person remaining after the 
 22.10  striking procedure must be the arbitrator.  If the parties are 
 22.11  unable to agree on who shall strike the first name, the question 
 22.12  must be decided by a flip of a coin.  The teacher and the board 
 22.13  must share equally the costs and fees of the arbitrator. 
 22.14     (c) The arbitrator shall determine, by a preponderance of 
 22.15  the evidence, whether the causes specified in subdivision 6, 
 22.16  clause (1), (2), (3), or (4), exist to support the proposed 
 22.17  discharge or demotion.  A lesser penalty than discharge or 
 22.18  demotion may be imposed by the arbitrator only to the extent 
 22.19  that either party proposes such lesser penalty in the 
 22.20  proceeding.  In making the determination, the arbitration 
 22.21  proceeding is governed by sections 572.11 to 572.17 572B.15 to 
 22.22  572B.28 and by the collective bargaining agreement applicable to 
 22.23  the teacher. 
 22.24     (d) An arbitration hearing conducted under this subdivision 
 22.25  is a meeting for preliminary consideration of allegations or 
 22.26  charges within the meaning of section 13D.05, subdivision 3, 
 22.27  paragraph (a), and must be closed, unless the teacher requests 
 22.28  it to be open. 
 22.29     (e) The arbitrator's decision is final and binding on the 
 22.30  parties, subject to sections 572.18 to 572.26 572B.18 to 572B.28.
 22.31     Sec. 4.  Minnesota Statutes 2000, section 179.09, is 
 22.32  amended to read: 
 22.33     179.09 [ARBITRATION.] 
 22.34     When a labor dispute arises which is not settled by 
 22.35  mediation such dispute may, by written agreement of the parties, 
 22.36  be submitted to arbitration on such terms as the parties may 
 23.1   specify, including among other methods the arbitration procedure 
 23.2   under the terms of sections 572.08 to 572.26 572B.01 to 572B.31 
 23.3   and arbitration under the voluntary industrial arbitration 
 23.4   tribunal of the American arbitration association. If such 
 23.5   agreement so provides, the commissioner of mediation services 
 23.6   may act as a member of any arbitration tribunal created by any 
 23.7   such agreement and, if the agreement so provides, the 
 23.8   commissioner may appoint one or more of such arbitrators.  
 23.9   Either or both of the parties to any such agreement or any 
 23.10  arbitration tribunal created under any such agreement may apply 
 23.11  to the commissioner to have the tribunal designated as a 
 23.12  temporary arbitration tribunal and, if so designated, the 
 23.13  temporary arbitration tribunal shall have power to administer 
 23.14  oaths to witnesses and to issue subpoenas for the attendance of 
 23.15  witnesses and the production of evidence, which subpoenas shall 
 23.16  be enforced in the same manner as subpoenas issued by the 
 23.17  commission under section 179.08.  Any such temporary arbitration 
 23.18  tribunal shall file with the commissioner a copy of its report, 
 23.19  duly certified by its chair.  
 23.20     Sec. 5.  Minnesota Statutes 2000, section 325E.37, 
 23.21  subdivision 5, is amended to read: 
 23.22     Subd. 5.  [ARBITRATION.] (a) The sole remedy for a 
 23.23  manufacturer, wholesaler, assembler, or importer who alleges a 
 23.24  violation of any provision of this section is to submit the 
 23.25  matter to arbitration.  A sales representative may also submit a 
 23.26  matter to arbitration, or in the alternative, at the sales 
 23.27  representative's option prior to the arbitration hearing, the 
 23.28  sales representative may bring the sales representative's claims 
 23.29  in a court of law, and in that event the claims of all parties 
 23.30  must be resolved in that forum.  In the event the parties do not 
 23.31  agree to an arbitrator within 30 days after the sales 
 23.32  representative demands arbitration in writing, either party may 
 23.33  request the appointment of an arbitrator from the American 
 23.34  Arbitration Association.  Each party to a sales representative 
 23.35  agreement shall be bound by the arbitration.  In the event that 
 23.36  the American Arbitration Association declines to appoint an 
 24.1   arbitrator, the arbitration shall proceed under chapter 572 572B.
 24.2   The cost of an arbitration hearing must be borne equally by both 
 24.3   parties unless the arbitrator determines a more equitable 
 24.4   distribution.  Except as provided in paragraph (c), the 
 24.5   arbitration proceeding is to be governed by the Uniform 
 24.6   Arbitration Act, sections 572.08 to 572.30 572B.01 to 572B.31.  
 24.7      (b) The arbitrator may provide any of the following 
 24.8   remedies:  
 24.9      (1) sustainment of the termination of the sales 
 24.10  representative agreement; 
 24.11     (2) reinstatement of the sales representative agreement, or 
 24.12  damages; 
 24.13     (3) payment of commissions due under subdivision 4; 
 24.14     (4) reasonable attorneys' fees and costs to a prevailing 
 24.15  sales representative; 
 24.16     (5) reasonable attorneys' fees and costs to a prevailing 
 24.17  manufacturer, wholesaler, assembler, or importer, if the 
 24.18  arbitrator finds the complaint was frivolous, unreasonable, or 
 24.19  without foundation; or 
 24.20     (6) the full amount of the arbitrator's fees and expenses 
 24.21  if the arbitrator finds that the sales representative's resort 
 24.22  to arbitration or the manufacturer's, wholesaler's, assembler's, 
 24.23  or importer's defense in arbitration was vexatious and lacking 
 24.24  in good faith. 
 24.25     (c) The decision of any arbitration hearing under this 
 24.26  subdivision is final and binding on the sales representative and 
 24.27  the manufacturer, wholesaler, assembler, or importer.  The 
 24.28  district court shall, upon application of a party, issue an 
 24.29  order confirming the decision.  
 24.30     Sec. 6.  Minnesota Statutes 2000, section 325F.665, 
 24.31  subdivision 6, is amended to read: 
 24.32     Subd. 6.  [ALTERNATIVE DISPUTE SETTLEMENT MECHANISM.] (a) 
 24.33  Any manufacturer doing business in this state, entering into 
 24.34  franchise agreements for the sale of its motor vehicles in this 
 24.35  state, or offering express warranties on its motor vehicles sold 
 24.36  or distributed for sale in this state shall operate, or 
 25.1   participate in, an informal dispute settlement mechanism located 
 25.2   in the state of Minnesota which complies with the provisions of 
 25.3   the Code of Federal Regulations, title 16, part 703, and the 
 25.4   requirements of this section.  The provisions of subdivision 3 
 25.5   concerning refunds or replacement do not apply to a consumer who 
 25.6   has not first used this mechanism before commencing a civil 
 25.7   action, unless the manufacturer allows a consumer to commence an 
 25.8   action without first using this mechanism.  
 25.9      (b) An informal dispute settlement mechanism provided for 
 25.10  by this section shall, at the time a request for arbitration is 
 25.11  made, provide to the consumer and to each person who will 
 25.12  arbitrate the consumer's dispute, information about this section 
 25.13  as approved and directed by the attorney general, in 
 25.14  consultation with interested parties.  The informal dispute 
 25.15  settlement mechanism shall permit the parties to present or 
 25.16  submit any arguments based on this section and shall not 
 25.17  prohibit or discourage the consideration of any such arguments.  
 25.18     (c) If, in an informal dispute settlement mechanism, it is 
 25.19  decided that a consumer is entitled to a replacement vehicle or 
 25.20  refund under subdivision 3, then any refund or replacement 
 25.21  offered by the manufacturer or selected by a consumer shall 
 25.22  include and itemize all amounts authorized by subdivision 3.  If 
 25.23  the amount of excise tax refunded is not separately stated, or 
 25.24  if the manufacturer does not apply for a refund of the tax 
 25.25  within one year of the return of the motor vehicle, the 
 25.26  department of public safety may refund the excise tax, as 
 25.27  determined under subdivision 3, paragraph (h), directly to the 
 25.28  consumer and lienholder, if any, as their interests appear on 
 25.29  the records of the registrar of motor vehicles. 
 25.30     (d) No documents shall be received by any informal dispute 
 25.31  settlement mechanism unless those documents have been provided 
 25.32  to each of the parties in the dispute at or prior to the 
 25.33  mechanism's meeting, with an opportunity for the parties to 
 25.34  comment on the documents either in writing or orally.  If a 
 25.35  consumer is present during the informal dispute settlement 
 25.36  mechanism's meeting, the consumer may request postponement of 
 26.1   the mechanism's meeting to allow sufficient time to review any 
 26.2   documents presented at the time of the meeting which had not 
 26.3   been presented to the consumer prior to the meeting.  
 26.4      (e) The informal dispute settlement mechanism shall allow 
 26.5   each party to appear and make an oral presentation in the state 
 26.6   of Minnesota unless the consumer agrees to submit the dispute 
 26.7   for decision on the basis of documents alone or by telephone, or 
 26.8   unless the party fails to appear for an oral presentation after 
 26.9   reasonable prior written notice.  If the consumer agrees to 
 26.10  submit the dispute for decision on the basis of documents alone, 
 26.11  then manufacturer or dealer representatives may not participate 
 26.12  in the discussion or decision of the dispute.  
 26.13     (f) Consumers shall be given an adequate opportunity to 
 26.14  contest a manufacturer's assertion that a nonconformity falls 
 26.15  within intended specifications for the vehicle by having the 
 26.16  basis of the manufacturer's claim appraised by a technical 
 26.17  expert selected and paid for by the consumer prior to the 
 26.18  informal dispute settlement hearing.  
 26.19     (g) Where there has been a recent attempt by the 
 26.20  manufacturer to repair a consumer's vehicle, but no response has 
 26.21  yet been received by the informal dispute mechanism from the 
 26.22  consumer as to whether the repairs were successfully completed, 
 26.23  the parties must be given the opportunity to present any 
 26.24  additional information regarding the manufacturer's recent 
 26.25  repair attempt before any final decision is rendered by the 
 26.26  informal dispute settlement mechanism.  This provision shall not 
 26.27  prejudice a consumer's rights under this section.  
 26.28     (h) If the manufacturer knows that a technical service 
 26.29  bulletin directly applies to the specific mechanical problem 
 26.30  being disputed by the consumer, then the manufacturer shall 
 26.31  provide the technical service bulletin to the consumer at 
 26.32  reasonable cost.  The mechanism shall review any such technical 
 26.33  service bulletins submitted by either party.  
 26.34     (i) A consumer may be charged a fee to participate in an 
 26.35  informal dispute settlement mechanism required by this section, 
 26.36  but the fee may not exceed the conciliation court filing fee in 
 27.1   the county where the arbitration is conducted.  
 27.2      (j) Any party to the dispute has the right to be 
 27.3   represented by an attorney in an informal dispute settlement 
 27.4   mechanism.  
 27.5      (k) The informal dispute settlement mechanism has all the 
 27.6   evidence-gathering powers granted an arbitrator under section 
 27.7   572.14 572B.17.  
 27.8      (l) A decision issued in an informal dispute settlement 
 27.9   mechanism required by this section may be in writing and signed. 
 27.10     Sec. 7.  Minnesota Statutes 2000, section 469.1762, is 
 27.11  amended to read: 
 27.12     469.1762 [ARBITRATION OF DISPUTES OVER COUNTY COSTS.] 
 27.13     If the county and the authority or municipality are unable 
 27.14  to agree on either (1) the need for or cost of road improvements 
 27.15  under section 469.175, subdivision 1a, or (2) the amount of 
 27.16  county administrative costs under section 469.176, subdivision 
 27.17  4h, and the county or municipality demands arbitration, the 
 27.18  matter must be submitted to binding arbitration in accordance 
 27.19  with sections 572.08 to 572.30 572B.01 to 572B.31 and the rules 
 27.20  of the American Arbitration Association.  Within 30 days after 
 27.21  the demand for arbitration, the parties shall each select an 
 27.22  arbitrator or agree upon a single arbitrator.  If the parties 
 27.23  each select an arbitrator, the two arbitrators shall select a 
 27.24  third arbitrator within 45 days after the demand for 
 27.25  arbitration.  Each party shall pay the fees and expenses of the 
 27.26  arbitrator it selected and the parties shall share equally the 
 27.27  expenses of the third arbitrator or an arbitrator agreed upon 
 27.28  mutually by the parties. 
 27.29     Sec. 8.  Minnesota Statutes 2000, section 572A.02, 
 27.30  subdivision 1, is amended to read: 
 27.31     Subdivision 1.  [SUBMITTAL TO BINDING ARBITRATION.] If a 
 27.32  dispute remains unresolved after the close of mediation, the 
 27.33  dispute shall be submitted to binding arbitration within 60 days 
 27.34  of issuance of the mediation report pursuant to the terms of 
 27.35  this section and the Uniform Arbitration Act, sections 572.08 to 
 27.36  572.30 572B.01 to 572B.31, except the period may be extended for 
 28.1   an additional 15 days as provided in this section.  In the event 
 28.2   of a conflict between the provisions of the Uniform Arbitration 
 28.3   Act and this section, this section controls.