Minnesota Session Laws - 1993, Regular Session

  
    Laws of Minnesota 1993 

                        CHAPTER 170-S.F.No. 674 
           An act relating to civil actions; regulating the 
          posting of a bond required of plaintiffs in certain 
          actions against a public body; amending Minnesota 
          Statutes 1992, section 562.02. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1992, section 562.02, is 
amended to read: 
    562.02 [CIVIL ACTIONS AFFECTING A PUBLIC BODY; SURETY BOND 
REQUIRED OF PLAINTIFF.] 
    Whenever any action at law or in equity is brought in any 
court in this state questioning directly or indirectly the 
existence of any condition or thing precedent to, or the 
validity of any action taken or proposed to be taken, by any 
public body or its officers or agents in the course of the 
authorization or sale, issuance or delivery of bonds, the making 
of a contract for public improvement or the validity of any 
proceeding to alter the organization of a school district in any 
manner, such public body may move the court for an order 
requiring the party, or parties, bringing such action to file a 
surety bond as hereinafter set forth.  Three days' written 
notice of such motion shall be given.  If the public body is not 
a party to the action, but if it deems that such action be 
injurious to the public interest and to the taxpayers, such 
public body may intervene or appear specially for the purpose of 
making such motion.  If the court determines that loss or damage 
to the public or taxpayers may result from the pendency of the 
action or proceeding, the court may require such party, or 
parties, to file a surety bond, which shall be approved by the 
court, in such amount as the court may determine.  The court 
must also consider whether the action presents substantial 
constitutional issues or substantial issues of statutory 
construction, and the likelihood of a party prevailing on these 
issues, when determining the amount of a bond and whether a bond 
should be required under this section or section 473.675.  Such 
bond shall be conditioned for payment to the public body of any 
loss or damage which may be caused to the public body or 
taxpayers by such delay, to the extent of the penal sum of such 
bond, if such party, or parties, shall not prevail therein.  If 
such surety bond is not filed within a reasonable time allowed 
therefor by the court, the action shall be dismissed with 
prejudice.  If such party, or parties, file a bond as herein 
required and prevail in the action, any premium paid on the bond 
shall be repaid by or taxed against the public body.  
    Sec. 2.  [EFFECTIVE DATE; APPLICATION.] 
    Section 1 is effective August 1, 1993, and applies to 
orders entered under Minnesota Statutes, section 473.675 or 
562.02, on and after that date. 
    Presented to the governor May 11, 1993 
    Signed by the governor May 14, 1993, 9:07 a.m.