HF 2240

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; providing an expedited process
for the judicial review of financing statements;
establishing civil and criminal liability for
fraudulent or otherwise improper financing statements;
amending Minnesota Statutes 2004, section 609.749,
subdivision 2; proposing coding for new law in
Minnesota Statutes, chapters 545; 604; 609.

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

Section 1.

new text begin [545.05] EXPEDITED PROCESS TO REVIEW AND
DETERMINE THE EFFECTIVENESS OF FINANCING STATEMENTS FORMS.
new text end

new text begin (a)(1) Any obligor, person named as a debtor, or owner of
collateral described or indicated in a financing statement or
other record filed under the Uniform Commercial Code - Secured
Transactions, who has reason to believe that the financing
statement or other record is fraudulent or otherwise improper as
defined in paragraph (e) may complete and file, at any time
without any time limitation, a motion for judicial review of the
effectiveness of the financing statement or other record. A
secured party of record who believes that an amendment or
termination of a financing statement or other record is
fraudulent or otherwise improper as defined in paragraph (e) may
also file such a motion. The motion must be mailed by first
class mail to the person who is indicated as the secured party
on the allegedly fraudulent or improper record at the address
listed on that record, or, in the case of a filing by the
secured party of record, the mailing must be sent to the address
of the person who filed the amendment or termination in
question, if and as listed on the record, and must be
accompanied by a copy of the record in question, an affidavit of
mailing, as well as the form for responding to the motion, which
appears in paragraph (a), clause (3), and a copy of the text of
this entire section.
new text end

new text begin A copy of all materials must be filed on that day with the
district court of the county in which the financing statement or
other record has been filed, or in the county of residence of
the movant. The motion must be supported by the affidavit of
the movant or the movant's attorney setting forth a concise
statement of the facts upon which the claim for relief is based.
new text end

new text begin The motion must be in substantially the following form:
new text end

new text begin In Re: A Purported
Financing Statement new text end new text begin In the district court
In and For ............. County,
Minnesota
Against
[Name of person who filed the financing statement]
new text end

new text begin MOTION FOR JUDICIAL REVIEW OF A FINANCING STATEMENT
FILED UNDER THE UNIFORM COMMERCIAL CODE - SECURED TRANSACTIONS
new text end

new text begin Now comes .................. (name) and files this motion
requesting a judicial determination of the effectiveness of a
financing statement or other record filed under the Uniform
Commercial Code - Secured Transactions in the office of the
............... (filing office and location thereof) and in
support of the motion would show the court as follows:
new text end

new text begin I.
new text end

new text begin ................. (name), movant herein, is the [obligor,
person named as a debtor, or owner of collateral described or
indicated in] [secured party of record listed in] a financing
statement or other record filed under the Uniform Commercial
Code.
new text end

new text begin II.
new text end

new text begin On ............. (date), in the exercise of the filing
officer's official duties as .................. (filing
officer's position), the filing officer received and filed or
recorded the financing statement or other record, a copy which
is attached hereto, that purports to perfect a security interest
against the obligor, the person named as debtor or against the
owner of collateral described or indicated in the financing
statement or other record] [amend or terminate the financing
statement in which the movant is listed as the secured party of
record].
new text end

new text begin III.
new text end

new text begin Movant alleges that the financing statement or other record
is fraudulent or otherwise improper, as defined by paragraph
(e), and that this court should declare the financing statement
or other record ineffective.
new text end

new text begin IV.
new text end

new text begin Movant attests that assertions herein are true and correct.
new text end

new text begin V.
new text end

new text begin Movant does not request the court to make a finding as to
any underlying claim of the parties involved and acknowledges
that this motion does not seek review of an effective financing
statement. Movant further acknowledges that movant may be
subject to sanctions if this motion is determined to be
frivolous. Movant may be contacted by respondent at:
new text end

new text begin Mailing Address: (required)
new text end

new text begin Telephone Number:
new text end

new text begin Facsimile Number: (either facsimile or e-mail contact is
required)
new text end

new text begin E-Mail Address: (either facsimile or e-mail contact is
required)
new text end

new text begin PRAYER
new text end

new text begin Movant requests the court to review the attached
documentation and enter an order finding that said financing
statement or other record is ineffective together with such
other findings as the court deems appropriate.
new text end

new text begin Respectfully submitted, ..........................
(Signature and typed name and address).
new text end

new text begin (2) The completed form for ordinary certificate of
acknowledgment must be as follows:
new text end

new text begin AFFIDAVIT
new text end

new text begin THE STATE OF new text end new text begin ) new text end new text begin [state name]
)
COUNTY OF new text end new text begin ) new text end new text begin .......
new text end

new text begin BEFORE ME, the undersigned authority, personally appeared
........., who, being by me duly sworn, deposed as follows:
new text end

new text begin "My name is ............... I am over 18 years of age, of
sound mind, with personal knowledge of the following facts, and
fully competent to testify.
new text end

new text begin I further attest that the assertions contained in the
accompanying motion are true and correct."
new text end

new text begin Further affiant sayeth not.
new text end

new text begin SUBSCRIBED and SWORN TO before me, this ..... day of
..................
new text end

new text begin NOTARY PUBLIC, State of [state name]
new text end

new text begin Notary's printed name: .........................
new text end

new text begin My commission expires: .........................
new text end

new text begin (3) The movant shall complete an affidavit of mailing the
response to the court and to the respondent in substantially the
following form:
new text end

new text begin State of Minnesota )
new text end

new text begin )
new text end

new text begin County of ..........)
new text end

new text begin ............................, being the movant, being duly
sworn, on oath, deposes and says that on the ..... day of
.........., ......., ..he mailed the response to court and the
respondent by placing a true and correct copy of the response in
an envelope addressed to them as shown depositing the same with
postage prepaid, in the U.S. Mails at
............................, Minnesota.
new text end

new text begin Subscribed and sworn to before me this ..... day of
...................., .......
new text end

new text begin (4) The person listed as [the secured party on] [filing]
the record for which the movant has requested review may respond
to the motion and accompanying materials to request an actual
hearing within ten days from the mailing by first class United
States mail by the movant, in which case the completed form for
use by the person listed as [the secured party in] [filing] the
record in question to respond to the motion for judicial review
must be in substantially the following form:
new text end

new text begin In Re: A Purported
Financing Statement new text end new text begin In the district court
In and For ............. County,
Minnesota
Against
[Name of person who filed the financing statement]
new text end

new text begin RESPONSE TO MOTION FOR JUDICIAL REVIEW OF A FINANCING
STATEMENT FILED UNDER THE UNIFORM COMMERCIAL CODE -
SECURED TRANSACTIONS
new text end

new text begin Now comes .................. (name) and files this response
to a motion requesting a judicial determination of the
effectiveness of a financing statement or other record filed
under the Uniform Commercial Code - Secured Transactions in the
office of the ............... (filing office and location
thereof) and in support of the motion would show the court as
follows:
new text end

new text begin I.
new text end

new text begin ................. (name), respondent herein, is the person
listed as [the secured party in] [filing] the record for which
review has been requested by the movant.
new text end

new text begin II.
new text end

new text begin On ............. (date), in the exercise of the filing
officer's official duties as .................. (filing
officer's position), the filing officer received and filed or
recorded the financing statement or other record, a copy which
is attached hereto, that purports to [perfect a security
interest against] [amend or terminate a record filed by] the
movant.
new text end

new text begin III.
new text end

new text begin Respondent hereby states that the financing statement or
other record is not fraudulent or otherwise improper, as defined
in Minnesota Statutes, section 545.05, paragraph (e), and that
this court should not declare the financing statement or other
record ineffective.
new text end

new text begin IV.
new text end

new text begin Respondent asks for the scheduling of an expedited hearing
to be held no later than five days or as soon thereafter as the
court shall order after the mailing of this response to the
court and to the movant.
new text end

new text begin V.
new text end

new text begin Respondent attests that assertions herein are true and
correct.
new text end

new text begin VI.
new text end

new text begin Respondent does not request the court to make a finding as
to any underlying claim of the parties involved. Respondent
further acknowledges that respondent may be subject to sanctions
if this response is determined to be frivolous.
new text end

new text begin PRAYER
new text end

new text begin Respondent requests the court to review the attached
documentation, to set a hearing for no later than five days
after the date of this response or as soon thereafter as the
court shall order and to enter an order finding that said
financing statement or other record is not ineffective together
with such other findings as the court deems appropriate.
Respondent may be contacted at:
new text end

new text begin Mailing Address: (required)
new text end

new text begin Telephone Number:
new text end

new text begin Facsimile Number: (either facsimile or e-mail contact is
required)
new text end

new text begin E-Mail Address: (either facsimile or e-mail contact is
required)
new text end

new text begin Respectfully submitted, .........................
new text end

new text begin (Signature and typed name and address).
new text end

new text begin (5) The completed form for ordinary certificate of
acknowledgment must be as follows:
new text end

new text begin AFFIDAVIT
new text end

new text begin THE STATE OF new text end new text begin ) new text end new text begin [state name]
)
COUNTY OF new text end new text begin ) new text end new text begin .......
new text end

new text begin BEFORE ME, the undersigned authority, personally appeared
........., who, being by me duly sworn, deposed as follows:
new text end

new text begin "My name is ............... I am over 18 years of age, of
sound mind, with personal knowledge of the following facts, and
fully competent to testify.
new text end

new text begin I further attest that the assertions contained in the
accompanying motion are true and correct."
new text end

new text begin Further affiant sayeth not.
new text end

new text begin SUBSCRIBED and SWORN TO before me, this ..... day of
..................
new text end

new text begin NOTARY PUBLIC, State of [state name]
new text end

new text begin Notary's printed name: .........................
new text end

new text begin My commission expires: .........................
new text end

new text begin (6) The motion must be supported by the affidavit of the
movant or the movant's attorney setting forth a concise
statement of the facts upon which the claim for relief is
based. Respondent shall submit the response by United States
mail to both the court and the movant, and also by either e-mail
or facsimile as provided by movant. The respondent shall
complete an affidavit of mailing the response to the court and
to the movant in substantially the following form:
new text end

new text begin State of Minnesota )
new text end

new text begin )
new text end

new text begin County of ..........)
new text end

new text begin ............................, being the movant, being duly
sworn, on oath, deposes and says that on the ..... day of
.........., ......., ..he mailed the response to court and the
respondent by placing a true and correct copy of the response in
an envelope addressed to them as shown depositing the same with
postage prepaid, in the U.S. Mails at
............................, Minnesota.
new text end

new text begin Subscribed and sworn to before me this ..... day of
...................., .......
new text end

new text begin (7) The clerk of the district court shall not collect a
filing fee for filing a motion or a response as provided in this
section at the time of filing.
new text end

new text begin (b)(1) If a hearing is timely requested, the court shall
hold that hearing within five days after the mailing of the
response by the respondent or as soon thereafter as ordered by
the court. After the hearing, the district court shall enter an
appropriate finding of fact and conclusion of law regarding the
financing statement or other record filed under the Uniform
Commercial Code. The filing officer shall not collect a filing
fee for filing a district court's finding of fact and conclusion
of law as provided in this section except as specifically
directed by the court in its findings and conclusions. A copy
of the finding of fact and conclusion of law must be sent to the
movant, the respondent, and the person who filed the financing
statement or other record at the address listed in the motion or
response of each person within seven days of the date that the
finding of fact and conclusion of law is issued by the district
court.
new text end

new text begin (2) If no hearing request in substantially this form is
received by the court by the tenth day following the mailing of
the original motion, the court's finding may be made solely on a
review of the documentation attached to the motion and without
hearing any testimonial evidence. After that review, which will
be conducted no later than five days after the ten-day period
has expired, the district court shall enter an appropriate
finding of fact and conclusion of law in a form as provided in
paragraph (c) regarding the financing statement or other record
filed under the Uniform Commercial Code, the movant shall cause
an attested copy of which must be filed or recorded and indexed
in the filing office in the appropriate class of records in
which the original financing statement or other record was filed
or recorded. The filing officer shall not collect a filing fee
for filing a district court's finding of fact and conclusion of
law as provided in this section except as specifically directed
by the court in its findings and conclusions. A copy of the
finding of fact and conclusion of law must be sent to the
movant, the respondent, and the person who filed the financing
statement or other record at the last known address of each
person within seven days of the date that the finding of fact
and conclusion of law is issued by the district court.
new text end

new text begin (c) The findings of fact and conclusion of law for an
expedited review where no hearing has been requested must be in
substantially the following form:
new text end

new text begin MISCELLANEOUS DOCKET No. ...........
new text end

new text begin In Re: A purported
Financing Statement new text end new text begin In the district court
Against ........... new text end new text begin In and For ................ County,
Minnesota
[Name of person who filed financing statement]
new text end

new text begin Judicial Finding of Fact and Conclusion of Law Regarding
a Financing Statement or Other Record Filed Under the
Uniform Commercial Code - Secured Transactions
new text end

new text begin On the (number) day of (month), (year), in the above
entitled and numbered cause, this court reviewed a motion,
verified by affidavit, of (name) and the documentation attached
thereto. The respondent did not respond within the required
ten-day period. No testimony was taken from any party, nor was
there any notice of the court's review, the court having made
the determination that a decision could be made solely on review
of the documentation as provided in Minnesota Statutes, section
545.05.
new text end

new text begin The court finds as follows (only an item or subitem checked
and initialed is a valid court ruling):
new text end

new text begin [..] The documentation attached to the motion IS filed or
recorded with the authorization of the obligor, person named as
debtor, or owner of collateral described or indicated in the
financing statement or other record, or by consent of an agent,
fiduciary, or other representative of that person, or with the
authorization of the secured party of record in the case of an
amendment or termination.
new text end

new text begin [..] The documentation attached to the motion IS NOT filed
or recorded with the authorization of the obligor, person named
as debtor, or owner of collateral described or indicated in such
documentation, or by consent of an agent, fiduciary, or other
representative of that person, or with the authorization of the
secured party of record in the case of an amendment or
termination and, IS NOT an effective financing statement or
other record under the Uniform Commercial Code - Secured
Transactions of this state.
new text end

new text begin [..] This court makes no finding as to any underlying
claims of the parties involved and expressly limits its finding
of fact and conclusion of law to the review of a ministerial act.
The filing officer shall remove the subject financing statement
or other record from the index so that the records are not
reflected in or obtained as a result of any search, standard or
otherwise, conducted of those records, but shall retain them and
this finding of fact and conclusion of law in the filing office
for the duration of the period for which they would have
otherwise been filed.
new text end

new text begin SIGNED ON THIS THE ...... DAY of .......
new text end

new text begin ............. District Judge
new text end

new text begin ............. District
new text end

new text begin ............. County, Minnesota
new text end

new text begin (d) If a determination is made after a hearing, the court
may assess all costs related to the entire review, including,
but not limited to, filing fees, attorney fees, administrative
costs, and any other costs against the losing party, to be paid
to the prevailing party.
new text end

new text begin (e) As used in this section, a financing statement or other
record is fraudulent or otherwise improper if it is filed
without the authorization of the obligor, person named as
debtor, or owner of collateral described or indicated in the
financing statement or other record, or by consent of an agent,
fiduciary, or other representative of that person or without the
consent of the secured party of record in the case of an
amendment or termination.
new text end

new text begin (f) As used in this paragraph, filing office or filing
officer refers to the office or officer where a financing
statement or other record is appropriately filed or recorded as
provided by law, including, but not limited to, the county
recorder, and the secretary of state, and other filing officers
related thereto.
new text end

new text begin (g) If the movant files a subsequent motion under this
section against any person filing a financing statement or other
record that is reviewed under this paragraph and found to be
filed or recorded with the authorization of the obligor, person
named as debtor, or owner of collateral described or indicated
in the financing statement or other record, or by consent of an
agent, fiduciary, or other representative of that person, or
with the authorization of the secured party of record in the
case of an amendment or termination, the court may, in addition
to assessing costs, order such other equitable relief against
the movant or enter other sanctions against the movant.
new text end

new text begin (h) The chief judge of a district court may order that any
or all proceedings under this section be conducted and heard by
other judicial officers of that district court.
new text end

Sec. 2.

new text begin [604.17] CIVIL LIABILITY FOR FRAUDULENT OR
OTHERWISE IMPROPER FINANCING STATEMENTS; HARASSMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "financing statement" has the meaning given in section
336.9-102(a); and
new text end

new text begin (2) "filing officer" is defined as Uniform Commercial Code
filing officer in each jurisdiction.
new text end

new text begin Subd. 2. new text end

new text begin Liability. new text end

new text begin (a) A person shall not knowingly
cause to be presented for filing or promote the filing of a
financing statement that the person knows:
new text end

new text begin (1) is forged;
new text end

new text begin (2) is neither:
new text end

new text begin (i) related to a valid lien or security agreement; nor
new text end

new text begin (ii) filed pursuant to section 336.9-502(d); or
new text end

new text begin (3) is for an improper purpose or purposes, such as to
harass, hinder, defraud, or otherwise interfere with any person.
new text end

new text begin (b) A person who violates paragraph (a) is liable to each
injured person for:
new text end

new text begin (1) the greater of:
new text end

new text begin (i) $10,000; or
new text end

new text begin (ii) the actual damages caused by the violation;
new text end

new text begin (2) court costs;
new text end

new text begin (3) reasonable attorney fees;
new text end

new text begin (4) related expenses of bringing the action, including
investigative expenses; and
new text end

new text begin (5) exemplary damages in the amount determined by the court.
new text end

new text begin Subd. 3. new text end

new text begin Cause of action. new text end

new text begin (a) The following persons may
bring an action to enjoin violation of this section or to
recover damages under this section:
new text end

new text begin (1) the obligor, the person named as the debtor, any person
who owns an interest in the collateral described or indicated in
the financing statement, or any person harmed by the filing of
the financing statement;
new text end

new text begin (2) the attorney general;
new text end

new text begin (3) a county attorney; and
new text end

new text begin (4) a municipal attorney.
new text end

new text begin (b) A filing officer may refer a matter to the attorney
general or other appropriate person for filing the legal actions
under this section.
new text end

new text begin Subd. 4. new text end

new text begin Venue. new text end

new text begin An action under this section may be
brought in any district court in the county in which the
financing statement is presented for filing or in a county where
any of the persons named in subdivision 3, paragraph (a), clause
(1), resides.
new text end

new text begin Subd. 5. new text end

new text begin Filing fee. new text end

new text begin (a) The fee for filing an action
under this section is $....... The plaintiff must pay the fee
to the clerk of the court in which the action is filed. Except
as provided by paragraph (b), the plaintiff may not be assessed
any other fee, cost, charge, or expense by the clerk of the
court or other public official in connection with the action.
new text end

new text begin (b) The fee for service of notice of an action under this
section charged to the plaintiff may not exceed:
new text end

new text begin (1) $....... if the notice is delivered in person; or
new text end

new text begin (2) the cost of postage if the service is by registered or
certified mail.
new text end

new text begin (c) A plaintiff who is unable to pay the filing fee and fee
for service of notice may file with the court an affidavit of
inability to pay under the Minnesota Rules of Civil Procedure.
new text end

new text begin (d) If the fee imposed under paragraph (a) is less than the
filing fee the court imposes for filing other similar actions
and the plaintiff prevails in the action, the court may order a
defendant to pay to the court the differences between the fee
paid under paragraph (a) and the filing fee the court imposes
for filing other similar actions.
new text end

new text begin Subd. 6. new text end

new text begin Other remedies. new text end

new text begin (a) An obligor, person named as
a debtor, or owner of collateral described or indicated by a
financing statement in violation of subdivision 1, paragraph
(a), also may request specific relief, including, but not
limited to, terminating the financing statement and removing the
debtor named in the financing statement from the index such that
it will not appear in a search under that debtor name.
new text end

new text begin (b) This law is cumulative of other law under which a
person may obtain judicial relief with respect to any filed or
recorded document.
new text end

Sec. 3.

new text begin [604.18] CIVIL LIABILITY FOR FRAUDULENT OR
OTHERWISE IMPROPER FINANCING STATEMENTS; STRAW MAN.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "financing statement" has the meaning given in section
336.9-102(a) of the Uniform Commercial Code; and
new text end

new text begin (2) filing officer" is defined as Uniform Commercial Code
filing officer in each jurisdiction.
new text end

new text begin Subd. 2. new text end

new text begin Liability. new text end

new text begin (a) A person shall not knowingly
cause to be presented for filing or promote the filing of a
financing statement that the person knows:
new text end

new text begin (1) is forged;
new text end

new text begin (2) is neither:
new text end

new text begin (i) related to a valid lien or security agreement; nor
new text end

new text begin (ii) filed pursuant to section 336.9-502(d); or
new text end

new text begin (3) is for an improper purpose or purposes, such as to
harass, hinder, defraud, or otherwise interfere with any person.
new text end

new text begin (b) A person who violates paragraph (a) is liable to each
injured person for:
new text end

new text begin (1) the greater of:
new text end

new text begin (i) $10,000; or
new text end

new text begin (ii) the actual damages caused by the violation;
new text end

new text begin (2) court costs;
new text end

new text begin (3) reasonable attorney fees;
new text end

new text begin (4) related expenses of bringing the action, including
investigative expenses; and
new text end

new text begin (5) exemplary damages in the amount determined by the court.
new text end

new text begin Subd. 3. new text end

new text begin Cause of action. new text end

new text begin (a) The following persons may
bring an action to enjoin violation of this section or to
recover damages under this section:
new text end

new text begin (1) the obligor, the person named as the debtor, any person
who owns an interest in the collateral described or indicated in
the financing statement, or any person harmed by the filing of
the financing statement;
new text end

new text begin (2) the attorney general;
new text end

new text begin (3) a county attorney;
new text end

new text begin (4) a municipal attorney; and
new text end

new text begin (5) a person who has been damaged as a result of an action
taken in reliance on the filed financing statement.
new text end

new text begin (b) A filing officer may refer a matter to the attorney
general or other appropriate person for filing the legal actions
under this section.
new text end

new text begin Subd. 4. new text end

new text begin Venue. new text end

new text begin An action under this section may be
brought in any district court in the county in which the
financing statement is presented for filing or in a county where
any of the persons named in subdivision 3, paragraph (a), clause
(1), resides.
new text end

new text begin Subd. 5. new text end

new text begin Filing fee. new text end

new text begin (a) The fee for filing an action
under this chapter is $....... The plaintiff must pay the fee
to the clerk of the court in which the action is filed. Except
as provided by paragraph (b), the plaintiff may not be assessed
any other fee, cost, charge, or expense by the clerk of the
court or other public official in connection with the action.
new text end

new text begin (b) The fee for service of notice of an action under this
section charged to the plaintiff may not exceed:
new text end

new text begin (1) $....... if the notice is delivered in person; or
new text end

new text begin (2) the cost of postage if the service is by registered or
certified mail.
new text end

new text begin (c) A plaintiff who is unable to pay the filing fee and fee
for service of notice may file with the court an affidavit of
inability to pay under the Minnesota Rules of Civil Procedure.
new text end

new text begin (d) If the fee imposed under paragraph (a) is less than the
filing fee the court imposes for filing other similar actions
and the plaintiff prevails in the action, the court may order a
defendant to pay to the court the differences between the fee
paid under paragraph (a) and the filing fee the court imposes
for filing other similar actions.
new text end

new text begin Subd. 6. new text end

new text begin Other remedies. new text end

new text begin (a) An obligor, person named as
a debtor, or owner of collateral described or indicated by a
financing statement in violation of subdivision 1, paragraph
(a), also may request specific relief, including, but not
limited to, terminating the financing statement and removing the
debtor named in the financing statement from the index such that
it will not appear in a search under that debtor name.
new text end

new text begin (b) This law is cumulative of other law under which a
person may obtain judicial relief with respect to any filed or
recorded document.
new text end

Sec. 4.

new text begin [609.7475] FRAUDULENT OR OTHERWISE IMPROPER
FINANCING STATEMENTS; HARASSMENT AND STRAW MAN.
new text end

new text begin (a) A person commits an offense if the person knowingly
causes to be presented for filing, or promotes the filing of, a
record as defined in section 336.9-102 that the person knows:
new text end

new text begin (1) is neither:
new text end

new text begin (i) related to a valid lien or security agreement; nor
new text end

new text begin (ii) filed pursuant to section 336.9-502(d);
new text end

new text begin (2) contains a forged signature or is based upon a document
containing a forged signature; and
new text end

new text begin (3) is presented for filing or caused to be presented for
filing with the intent that it be used for an improper purpose
or purposes, such as to harass, hinder, defraud, or otherwise
interfere with any person.
new text end

new text begin (b) An offense under this section is a gross misdemeanor,
except that if the circumstances set forth in section 609.749,
subdivision 3, are met, in which event the offense is a felony.
new text end

Sec. 5.

Minnesota Statutes 2004, section 609.749,
subdivision 2, is amended to read:

Subd. 2.

Harassment and stalking crimes.

(a) A person
who harasses another by committing any of the following acts is
guilty of a gross misdemeanor:

(1) directly or indirectly manifests a purpose or intent to
injure the person, property, or rights of another by the
commission of an unlawful act;

(2) stalks, follows, or pursues another;

(3) returns to the property of another if the actor is
without claim of right to the property or consent of one with
authority to consent;

(4) repeatedly makes telephone calls, or induces a victim
to make telephone calls to the actor, whether or not
conversation ensues;

(5) makes or causes the telephone of another repeatedly or
continuously to ring;

(6) repeatedly mails or delivers or causes the delivery by
any means, including electronically, of letters, telegrams,
messages, packages, or other objects; deleted text begin or
deleted text end

(7) knowingly makes false allegations against a peace
officer concerning the officer's performance of official duties
with intent to influence or tamper with the officer's
performance of official duties deleted text begin . deleted text end new text begin ; or
new text end

new text begin (8) knowingly causes to be presented for filing, or
promotes the filing of, a record as defined in section 9-102 of
the Uniform Commercial Code that the person knows:
new text end

new text begin (i) is neither:
new text end

new text begin (A) related to a valid lien or security agreement; nor
new text end

new text begin (B) filed pursuant to section 9-502(d) of the Uniform
Commercial Code;
new text end

new text begin (ii) contains a forged signature; and
new text end

new text begin (iii) is presented for filing or caused to be presented for
filing with the intent that it be used for an improper purpose
or purposes, such as to harass, hinder, defraud, or otherwise
interfere with any person.
new text end

(b) The conduct described in paragraph (a), clauses (4) and
(5), may be prosecuted at the place where any call is either
made or received. The conduct described in paragraph (a),
clause (6), may be prosecuted where any letter, telegram,
message, package, or other object is either sent or
received. new text begin The conduct described in paragraph (a), clause (8),
may be prosecuted in either the county of residence of the
individual named as debtor, or the county in which the filing is
made.
new text end

(c) A peace officer may not make a warrantless, custodial
arrest of any person for a violation of paragraph (a), clause
(7).