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SF 831

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to commerce; modifying requirements for 
  1.3             invention developers; amending Minnesota Statutes 
  1.4             2000, sections 325A.04, by adding a subdivision; 
  1.5             325A.06, subdivisions 1 and 2; and 325A.09, 
  1.6             subdivision 5, and by adding subdivisions; repealing 
  1.7             Minnesota Statutes 2000, section 325A.06, subdivision 
  1.8             3. 
  1.10     Section 1.  Minnesota Statutes 2000, section 325A.04, is 
  1.11  amended by adding a subdivision to read: 
  1.12     Subd. 13.  The contract must state that the invention 
  1.13  developer has fully complied with the bonding requirements of 
  1.14  section 325A.06. 
  1.15     Sec. 2.  Minnesota Statutes 2000, section 325A.06, 
  1.16  subdivision 1, is amended to read: 
  1.17     Subdivision 1.  Every invention developer rendering or, 
  1.18  offering to render, or advertising invention development 
  1.19  services in this state shall maintain a continuous corporate 
  1.20  surety bond issued by a surety admitted to do business in this 
  1.21  state, and equal to either ten percent of the invention 
  1.22  developer's gross income from the invention development business 
  1.23  in this state during the invention developer's preceding fiscal 
  1.24  year, or $25,000 $50,000, whichever is larger.  A copy of the 
  1.25  bond shall be approved by the attorney general and filed with 
  1.26  the secretary of state before the invention developer 
  1.27  renders or, offers to render, or advertises invention 
  2.1   development services in this state.  The secretary of state 
  2.2   shall maintain a list of all outstanding bonds filed under this 
  2.3   subdivision.  The invention developer shall have 90 days after 
  2.4   the end of each fiscal year within which to change the bond as 
  2.5   may be necessary to conform to the requirements of this 
  2.6   subdivision. 
  2.7      Sec. 3.  Minnesota Statutes 2000, section 325A.06, 
  2.8   subdivision 2, is amended to read: 
  2.9      Subd. 2.  The bond required by subdivision 1 shall be in 
  2.10  favor of the state of Minnesota for the benefit of any person 
  2.11  who, after entering into a contract for invention development 
  2.12  services with an invention developer, is damaged by fraud or 
  2.13  dishonesty of the invention developer in performance of the 
  2.14  contract, by the insolvency or the cessation of business by the 
  2.15  invention developer or by the intentional violation of sections 
  2.16  325A.01 to 325A.10 by the invention developer.  Any person 
  2.17  claiming against the bond may maintain an action at law against 
  2.18  the invention developer and the surety company. 
  2.19     The aggregate liability of the surety company to all 
  2.20  persons for all breaches of conditions of the bond shall in no 
  2.21  event exceed the amount of the bond. 
  2.22     Sec. 4.  Minnesota Statutes 2000, section 325A.09, 
  2.23  subdivision 5, is amended to read: 
  2.24     Subd. 5.  Any person who has been injured by a violation of 
  2.25  sections 325A.01 to 325A.10 by an invention developer, by any 
  2.26  false or fraudulent statement, representation or omission of 
  2.27  material fact by an invention developer or by failure of an 
  2.28  invention developer to make all the disclosures required by 
  2.29  sections 325A.01 to 325A.10 may bring a civil action against the 
  2.30  invention developer for the damages sustained together with 
  2.31  costs and disbursements, including reasonable attorney's fees.  
  2.32  The court in its discretion may increase the award of damages to 
  2.33  an amount not to exceed three times the damages sustained or 
  2.34  $2,500 $10,000, whichever is greater. 
  2.35     Sec. 5.  Minnesota Statutes 2000, section 325A.09, is 
  2.36  amended by adding a subdivision to read: 
  3.1      Subd. 8.  The statute of limitations on actions arising out 
  3.2   of a breach of contract for invention development services shall 
  3.3   be six years as provided in section 541.05, subdivision 1. 
  3.4      Sec. 6.  Minnesota Statutes 2000, section 325A.09, is 
  3.5   amended by adding a subdivision to read: 
  3.6      Subd. 9.  Violation of this chapter is a misdemeanor. 
  3.7      Sec. 7.  [REPEALER.] 
  3.8      Minnesota Statutes 2000, section 325A.06, subdivision 3, is 
  3.9   repealed the day following final enactment.