HF 3845

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 03/11/2024 04:39pm

A bill for an act
relating to civil law; clarifying landlord and tenant provisions; modifying service
of summons and complaint; amending Minnesota Statutes 2022, section 504B.177;
Minnesota Statutes 2023 Supplement, sections 504B.144; 504B.331; 504B.345,
subdivision 1.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 504B.144, is amended to read:

504B.144 EARLY RENEWAL OF LEASE.

A landlord must wait until six months from the deleted text begin expiration deleted text end new text begin execution new text end of the current lease
before requiring a tenant to renew the lease, if the lease is for a period of time longer than
ten months. Nothing prevents a landlord from waiting until closer to the expiration of a
lease to ask a tenant to renew the lease. Any provision, whether oral or written, of any lease
or other agreement whereby any provision of this section is waived by a tenant is contrary
to public policy and void.

Sec. 2.

Minnesota Statutes 2022, section 504B.177, is amended to read:

504B.177 LATE FEES.

(a) A landlord of a residential building may not charge a late fee if the rent is paid after
the due date, unless the tenant and landlord have agreed in writing that a late fee may be
imposed. The agreement must specify when the late fee will be imposed. In no case may
the late fee exceed eight percent of the overdue rent payment. Any late fee charged or
collected is not considered to be either interest or liquidated damages. For purposes of this
paragraph, the "due date" does not include a date, earlier than the date contained in the
written or oral lease by which, if the rent is paid, the tenant earns a discount.

(b) Notwithstanding paragraph (a), if a federal statute, regulation, or handbook permitting
late fees for a tenancy subsidized under a federal program conflicts with paragraph (a), then
the landlord may publish and implement a late payment fee schedule that complies with the
federal statute, regulation, or handbook.

new text begin (c) A late fee charged by a landlord who has entered into a housing assistance payments
contract with the federal or state government must be calculated and assessed only on the
portion of rent payable by the tenant. For the purposes of this paragraph, "housing assistance
payments contract" means a program described in United States Code, title 42, section
1437(f).
new text end

Sec. 3.

Minnesota Statutes 2023 Supplement, section 504B.331, is amended to read:

504B.331 SUMMONS; HOW SERVED.

(a) The summons and complaint must be served at least seven days before the date of
the court appearance specified in section 504B.321, in the manner provided for service of
a summons in a civil action in district court.

(b) If the defendant cannot be found in the county, the summons and complaint may be
served at least seven days before the date of the court appearance by:

(1) leaving a copy at the defendant's last usual place of abode with a person of suitable
age and discretion residing there; or

(2) if the defendant had no place of abode, by leaving a copy at the property described
in the complaint with a person of suitable age and discretion occupying the premises.

(c) Failure of the sheriff to serve the defendant is prima facie proof that the defendant
cannot be found in the county.

(d) Where the defendant cannot be found in the county, service of the summons and
complaint may be made upon the defendant by posting the summons in a conspicuous place
on the property for not less than one week if:

(1) the property described in the complaint is:

(i) nonresidential and no person actually occupies the property; or

(ii) residential and service has been attempted at least twice on different days, with at
least one of the attempts having been made between the hours of 6:00 p.m. and 10:00 p.m.;
and

(2) the plaintiff or the plaintiff's attorney has signed and filed with the court an affidavit
stating that:

(i) the defendant cannot be found, or that the plaintiff or the plaintiff's attorney believes
that the defendant is not in the state;

(ii) a copy of the summons has been mailed to the defendant at the defendant's last known
address if any is known to the plaintiff; deleted text begin or deleted text end new text begin and
new text end

(iii) the plaintiff or plaintiff's attorney has communicated to the defendant that an eviction
hearing has been scheduled, including the date, time, and place of the hearing specified in
the summons, by at least one form of written communication the plaintiff regularly uses to
communicate with the defendant that have a date and time stamp.

(e) If the defendant or the defendant's attorney does not appear in court on the date of
the appearance, the trial shall proceed.

Sec. 4.

Minnesota Statutes 2023 Supplement, section 504B.345, subdivision 1, is amended
to read:

Subdivision 1.

General.

(a) If the court or jury finds for the plaintiff, the court shall
immediately enter judgment that the plaintiff shall have recovery of the premises, and shall
tax the costs against the defendant. The court shall issue execution in favor of the plaintiff
for the costs and also immediately issue a writ of recovery of premises and order to vacate.

(b) The court shall give priority in issuing a writ of recovery of premises and order to
vacate for an eviction action brought under section 504B.171 or on the basis that the tenant
is causing a nuisance or seriously endangers the safety of other residents, their property, or
the landlord's property.

(c) If the court or jury finds for the defendant, then the court:

(1) shall enter judgment for the defendant, tax the costs against the plaintiff, and issue
execution in favor of the defendant; and

(2) shall expunge the records relating to the action under the provisions of section 484.014
or under the court's inherent authority at the time judgment is entered or after that time upon
motion of the defendant.

(d) Except in actions brought: (1) deleted text begin under section 504B.291; (2) deleted text end under section 504B.171;
or deleted text begin (3) deleted text end new text begin (2) new text end on the basis that the residential tenant engages in behavior that seriously endangers
the safety of other residents, or intentionally and seriously damages the property of the
landlord or a tenant, the court shall stay the writ of recovery of premises and order to vacate
for a reasonable period, not to exceed seven days.