SF 1360

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; regulating unclaimed property 
  1.3             held by cooperatives and the right to receive or 
  1.4             recover unclaimed property; modifying public notice 
  1.5             requirements; amending Minnesota Statutes 2004, 
  1.6             sections 308A.711, subdivisions 1, 3; 308B.735, 
  1.7             subdivisions 1, 3; 345.42, subdivision 1; 345.46; 
  1.8             repealing Minnesota Statutes 2004, sections 308A.711, 
  1.9             subdivision 2; 308B.735, subdivision 2; 345.42, 
  1.10            subdivisions 2, 3, 4. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2004, section 308A.711, 
  1.13  subdivision 1, is amended to read: 
  1.14     Subdivision 1.  [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] 
  1.15  Notwithstanding the provisions of section 345.43, a cooperative 
  1.16  may, in lieu of paying or delivering to the commissioner of 
  1.17  commerce the unclaimed property specified in its report of 
  1.18  unclaimed property, distribute the unclaimed property to a 
  1.19  corporation or organization that is exempt from taxation under 
  1.20  section 290.05, subdivision 1, paragraph (b), or 2.  A 
  1.21  cooperative making the election to distribute unclaimed property 
  1.22  shall, within 85 days following the publication of lists of 
  1.23  abandoned property, file with the commissioner of commerce: 
  1.24     (1) a verified written explanation of the proof of claim of 
  1.25  an owner establishing a right to receive the abandoned property; 
  1.26     (2) any errors in the presumption of abandonment; 
  1.27     (3) the name, address, and exemption number of the 
  1.28  corporation or organization to which the property was or is to 
  2.1   be distributed; and 
  2.2      (4) the approximate date of distribution. 
  2.3      Sec. 2.  Minnesota Statutes 2004, section 308A.711, 
  2.4   subdivision 3, is amended to read: 
  2.5      Subd. 3.  [OWNER'S RIGHT EXTINGUISHED ON DISBURSEMENT.] The 
  2.6   right of an owner to unclaimed property held by a cooperative is 
  2.7   extinguished when the property is disbursed by the cooperative 
  2.8   to a tax-exempt organization in accordance with this 
  2.9   section. if:  (1) notice that the payment is available has been 
  2.10  mailed to the last known address of the person shown by the 
  2.11  records to be entitled to the property; or (2) the address is 
  2.12  unknown, notice is published in an official publication of the 
  2.13  cooperative. 
  2.14     Sec. 3.  Minnesota Statutes 2004, section 308B.735, 
  2.15  subdivision 1, is amended to read: 
  2.16     Subdivision 1.  [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] 
  2.17  A cooperative may, in lieu of paying or delivering to the state 
  2.18  the unclaimed property specified in its report of unclaimed 
  2.19  property, distribute the unclaimed property to a business entity 
  2.20  or organization that is exempt from taxation.  A cooperative 
  2.21  making the election to distribute unclaimed property shall file 
  2.22  with the Department of Commerce:  
  2.23     (1) a verified written explanation of the proof of claim of 
  2.24  an owner establishing a right to receive the abandoned property; 
  2.25     (2) any error in the presumption of abandonment; 
  2.26     (3) the name, address, and exemption number of the business 
  2.27  entity or organization to which the property was or is to be 
  2.28  distributed; and 
  2.29     (4) the approximate date of distribution. 
  2.30     Sec. 4.  Minnesota Statutes 2004, section 308B.735, 
  2.31  subdivision 3, is amended to read: 
  2.32     Subd. 3.  [OWNER'S RIGHT EXTINGUISHED ON DISBURSEMENT.] The 
  2.33  right of an owner to unclaimed property held by a cooperative is 
  2.34  extinguished when the property is disbursed by the cooperative 
  2.35  to a tax exempt organization in accordance with this 
  2.36  section. if:  (1) notice that the payment is available has been 
  3.1   mailed to the last known address of the person shown by the 
  3.2   records to be entitled to the property; or (2) the address is 
  3.3   unknown, notice is published in an official publication of the 
  3.4   cooperative. 
  3.5      Sec. 5.  Minnesota Statutes 2004, section 345.42, 
  3.6   subdivision 1, is amended to read: 
  3.7      Subdivision 1.  [COMMISSIONER'S DUTY TO PUBLISH.] Within 
  3.8   the calendar year next following the year in which abandoned 
  3.9   property has been paid or delivered to the commissioner, the 
  3.10  commissioner shall cause notice to be published at least once 
  3.11  but not more than twice in an English language newspaper of 
  3.12  general circulation in the county in this state in which is 
  3.13  located the last known address of any person to be named in the 
  3.14  notice.  If no address is listed or if the address is outside 
  3.15  this state, the notice shall be published in the county in which 
  3.16  the holder of the abandoned property has a principal place of 
  3.17  business within this state provide public notice of the 
  3.18  abandoned property in the manner and frequency the commissioner 
  3.19  determines to be most effective and efficient in communicating 
  3.20  to the persons appearing to be owners of this property.  Public 
  3.21  notice may include the use of print, broadcast, or electronic 
  3.22  media. 
  3.23     Sec. 6.  Minnesota Statutes 2004, section 345.46, is 
  3.24  amended to read: 
  3.25     345.46 [PERIOD OF LIMITATION NOT A BAR.] 
  3.26     (a) The expiration of any a period of time specified by 
  3.27  statute or court order, during which an action or proceeding may 
  3.28  be commenced or enforced to obtain payment of a claim for money 
  3.29  or recovery of property, shall not prevent the money or property 
  3.30  from being presumed abandoned property, nor affect any duty to 
  3.31  file a report required by sections 345.31 to 345.60 or to pay or 
  3.32  deliver abandoned property to the commissioner. limitation on 
  3.33  the owner's right to receive or recover property, whether 
  3.34  specified by contract, statute, or court order, does not 
  3.35  preclude the property from being presumed abandoned or affect a 
  3.36  duty to file a report or to pay or deliver or transfer property 
  4.1   to the administrator as required by sections 345.31 to 345.60.  
  4.2   This paragraph applies to any expiration of a period of 
  4.3   limitations that occurs whether before or after the effective 
  4.4   date of sections 345.31 to 345.60. 
  4.5      (b) An action or proceeding may not be maintained by the 
  4.6   administrator to enforce sections 345.31 to 345.60 in regard to 
  4.7   the reporting, delivery, or payment of property more than ten 
  4.8   years after the holder specifically identified the property in a 
  4.9   report filed with the administrator or gave express notice to 
  4.10  the administrator of a dispute regarding the property.  In the 
  4.11  absence of such a report or other express notice, the period of 
  4.12  limitation is tolled.  The period of limitation is also tolled 
  4.13  by the filing of a report that is fraudulent. 
  4.14     Sec. 7.  [REPEALER.] 
  4.15     Minnesota Statutes 2004, sections 308A.711, subdivision 2; 
  4.16  308B.735, subdivision 2; and 345.42, subdivisions 2, 3, and 4, 
  4.17  are repealed.