Minnesota Legislature
SF 1250
1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Current Version - 1st Engrossment
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A bill for an act
relating to agriculture; changing certain warehouse
laws; amending Minnesota Statutes 2004, sections
231.08, by adding subdivisions; 231.09; 231.11;
231.18, subdivisions 3, 5; proposing coding for new
law in Minnesota Statutes, chapter 231; repealing
Minnesota Rules, parts 1560.7700; 1560.7750;
1560.7800; 1560.7850; 1560.7900; 1560.8000; 1560.8100;
1560.8200; 1560.8300; 1560.8400; 1560.8500; 1560.8600;
1560.8700; 1560.8800.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 231.08, is
amended by adding a subdivision to read:
new text begin Subd. 3. new text end
new text begin Tender for storage. new text end
new text begin
At the time of or prior to
tender of goods for storage by a depositor, a storage order must
be signed in writing by the depositor or the depositor's duly
authorized representative and must show the name and address of
the warehouse operator in whose custody the goods are to be
deposited.
new text end
Sec. 2.
Minnesota Statutes 2004, section 231.08, is
amended by adding a subdivision to read:
new text begin Subd. 4. new text end
new text begin Goods; labeling. new text end
new text begin
A warehouse operator who
receives a lot of goods must identify each article or lot by tag
or lot number, as recorded on the operator's books and on the
warehouse receipt or contract.
new text end
Sec. 3.
Minnesota Statutes 2004, section 231.08, is
amended by adding a subdivision to read:
new text begin Subd. 5. new text end
new text begin Fire protection. new text end
new text begin
All warehouses must be
protected against fire by an automatic device or fire
extinguishers.
new text end
Sec. 4.
Minnesota Statutes 2004, section 231.08, is
amended by adding a subdivision to read:
new text begin Subd. 6. new text end
new text begin Floor load. new text end
new text begin
A warehouse floor or part of floor
must not at any time be loaded or stored with a greater weight
of goods or materials per square foot than the floor will
sustain with safety. If the department directs a warehouse
operator to ascertain from a competent registered architect or
engineer or from the proper municipal authorities what may be
the safe load capacity in pounds per square foot of each floor
of the operator's warehouse or warehouses, the operator must do
so without unnecessary delay and must post signs in several
conspicuous places on each floor stating the safe live load that
floor will sustain.
new text end
Sec. 5.
Minnesota Statutes 2004, section 231.08, is
amended by adding a subdivision to read:
new text begin Subd. 7. new text end
new text begin Storage conditions. new text end
new text begin
(a) On each floor where
there is open storage of goods, wares, or merchandise, there
must be aisles wide enough to permit the free and unimpeded
passage of goods, wares, or merchandise. All aisles must be
kept free from obstructions, dust, and litter.
new text end
new text begin
(b) Pieces of overstuffed furniture, mattresses, rugs,
carpets, and other goods not stored in containers must be
protected by wrapping before being placed in permanent storage.
new text end
Sec. 6.
Minnesota Statutes 2004, section 231.09, is
amended to read:
231.09 OBLIGATION TO ISSUE UNIFORM RECEIPTS.
new text begin Subdivision 1. new text end
new text begin Receipts. new text end
A warehouse operator receiving
goods in store shall issue for the goods a receipt embodying the
terms of such receipts as authorized by article 7 of the Uniform
Commercial Code. Receipts or records of storage in electronic
form are acceptable.
new text begin Subd. 2. new text end
new text begin Copy to department. new text end
new text begin
A copy of the form of
receipt used by the warehouse operator must be furnished to the
department with the application for license.
new text end
new text begin Subd. 3. new text end
new text begin Insurance. new text end
new text begin
Receipts must show in conspicuous
type whether or not the property for which the receipt has been
issued is insured for the benefit of the depositor against fire
or any other casualty.
new text end
new text begin Subd. 4. new text end
new text begin Lot number. new text end
new text begin
The property of each depositor must
be specifically designated under a lot number, which must appear
on the receipt for the purpose of identification.
new text end
new text begin Subd. 5. new text end
new text begin Correctness of receipt. new text end
new text begin
Unless notice is given
by the depositor to the warehouse operator in writing within 30
days after the date of mailing or delivery to the depositor of
the warehouse receipt stating that there are errors or omissions
in the list of goods and specifying them, the operator is
entitled to assume that the list of goods on the warehouse
receipt is a complete and correct list of goods tendered to the
operator for storage under the terms and conditions of the
contract and that the depositor has accepted all terms and
conditions of the contract.
new text end
new text begin Subd. 6. new text end
new text begin Storing additional goods. new text end
new text begin
If the depositor,
subsequent to the original storing, places other goods with the
warehouse operator for storage, the additional goods may come in
under the same terms and conditions as if they were part of the
original lot.
new text end
new text begin Subd. 7. new text end
new text begin Notices to depositor. new text end
new text begin
Notices by the warehouse
operator to the depositor pertaining to the goods, wares, or
merchandise must be sent to the depositor at the address given
at the time of depositing the goods, wares, or merchandise with
the operator, unless written notice of a change of address is
received by the operator from the depositor. Notices mailed by
the operator to the last address given by the depositor
constitute effective notice for all purposes.
new text end
new text begin Subd. 8. new text end
new text begin
Liability limitations; other than household
goods.
new text end
new text begin
Unless otherwise specified by the depositor in writing,
it is agreed and is prima facie proof that no piece, package, or
complete article with its contents enumerated in the list of
goods in the warehouse receipt of contract exceeds the sum of
$50 in value. If the depositor declares in writing a higher
valuation, the warehouse operator may charge a higher rate for
storing the pieces, packages, or complete articles. Each
operator must, upon the day of storage, clearly inform the
depositor, in writing, that the depositor may declare a higher
valuation.
new text end
new text begin Subd. 9. new text end
new text begin Liability limitations; household goods. new text end
new text begin
(a)
From and after the date of storage, the warehouse operator
storing household goods must, on behalf of the depositor, cause
the stored goods of the depositor to be insured at least in the
amount of $1.25 per pound per article against loss from any
peril covered by standard fire and extended coverage policies.
The depositor must pay to the operator the cost of the insurance
in addition to other warehousing charges. Provided, however,
that the depositor may declare in writing that the value of the
stored goods does not exceed 60 cents per pound per article, in
which case the depositor is limited to that amount in the
recovery of any damages against the warehouse operator.
new text end
new text begin
(b) Warehouse operators whose charges for storage are not
based upon actual weight, and who may not have available an
actual weight figure, may use a weight figure obtained by
application of the constructive weight rule in effect in the
operator's tariff.
new text end
new text begin
(c) Each warehouse operator must, on the day of storage,
clearly inform the depositor in writing of the substance of
paragraph (a). If the depositor's goods are delivered to the
operator for storage by another person, the operator must inform
that person of the depositor's rights and obligations under
paragraph (a).
new text end
new text begin
(d) Nothing in this section imposes liability upon a
warehouse operator for damages where the liability would not
otherwise be imposed under the provisions of the Uniform
Commercial Code, chapter 336, and specifically section 336.7-204.
new text end
Sec. 7.
Minnesota Statutes 2004, section 231.11, is
amended to read:
231.11 SCHEDULE OF RATES; STORING HOUSEHOLD GOODS.
new text begin Subdivision 1. new text end
new text begin Filing; inspection. new text end
new text begin
A household goods
warehouse operator must file with the department and keep open
for public inspection a printed schedule of rates and charges
complying with subdivision 2. All tariffs of rates and charges
must contain terms and conditions under which the rates and
charges are assessed.
new text end
new text begin Subd. 2. new text end
new text begin Rate-making procedure. new text end
In order to ensure
nondiscriminatory rates and charges for all depositors of
household goods, the commissioner shall establish a collective
rate-making procedure which will ensure the publication and
maintenance of just and reasonable rates and charges under
uniform, reasonably related rate structures. These procedures
must provide for the joint consideration, initiation, and
establishment of rates and charges and ensure that the
respective revenues and expenses of household goods warehouse
operators are ascertained. Any participating household goods
warehouse operator party to a collectively mandated rate or
charge has the right to petition the commissioner for the
establishment of a rate or charge which deviates from the
collectively set rate. Upon receiving the commissioner's
approval, that household goods warehouse operator may proceed to
establish the requested rate or charge. All household goods
warehouse operators subject to rate regulation under this
chapter must comply with the commissioner's rate-making
procedures. No household goods warehouse operator shall
undertake to perform any service or store any household goods
until a schedule of rates has been filed and published in
accordance with this chapter. In case of emergency, however, a
service or storage not specifically covered by the schedules
filed, may be performed or furnished at a reasonable rate, which
must then be promptly filed, and which is subject to review in
accordance with this chapter.
Sec. 8.
Minnesota Statutes 2004, section 231.18,
subdivision 3, is amended to read:
Subd. 3.
Where to file.
All claims must be filed deleted text begin at deleted text end new text begin with
new text end
the deleted text begin following address:deleted text end Minnesota Department of Agriculture,
Grain Licensing and Auditing deleted text begin Division, 316 Grain Exchange
Building, Minneapolis, Minnesota 55415 deleted text end new text begin Sectionnew text end .
Sec. 9.
Minnesota Statutes 2004, section 231.18,
subdivision 5, is amended to read:
Subd. 5.
Public notice of a claim.
Upon determining that
a depositor has filed a valid claim, the department shall
publish notice of the claim in the official county newspaper of
the county in which the licensee's new text begin primary new text end place of business is
located.
The notice must state that a claim against the bond of a
licensee has been filed with the department, the name and
address of the licensee, that any additional claims should be
filed with the department, the deleted text begin bond disbursement deleted text end date new text begin by which
claims must be filednew text end , and where the claims should be filed.
The public notice of the claim must appear for three
consecutive days in newspapers with a daily circulation and for
two consecutive publications in newspapers published less than
daily.
Sec. 10.
new text begin
[231.375] OPENING OR ABANDONMENT OF WAREHOUSES.
new text end
new text begin
No building or structure may be used as a warehouse or
branch warehouse until it has been inspected and approved for
warehousing purposes by the department.
new text end
new text begin
On ceasing to use a building or other structure, a
warehouse operator must promptly notify the department.
new text end