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Key: (1) language to be deleted (2) new language

                            CHAPTER 109-S.F.No. 1360 
                  An act relating to commerce; regulating unclaimed 
                  property held by cooperatives and the right to receive 
                  or recover unclaimed property; modifying public notice 
                  requirements; regulating certain abandoned tangible 
                  personal property; amending Minnesota Statutes 2004, 
                  sections 308A.711, subdivisions 1, 3; 308B.735, 
                  subdivisions 1, 3; 345.42, subdivision 1; 345.46; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 345; repealing Minnesota Statutes 2004, 
                  sections 308A.711, subdivision 2; 308B.735, 
                  subdivision 2; 345.42, subdivisions 2, 3. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2004, section 308A.711, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] 
        Notwithstanding the provisions of section 345.43, a cooperative 
        may, in lieu of paying or delivering to the commissioner of 
        commerce the unclaimed property specified in its report of 
        unclaimed property, distribute the unclaimed property to a 
        corporation or organization that is exempt from taxation under 
        section 290.05, subdivision 1, paragraph (b), or 2.  A 
        cooperative making the election to distribute unclaimed property 
        shall, within 85 days following the publication of lists of 
        abandoned property, file with the commissioner of commerce: 
           (1) a verified written explanation of the proof of claim of 
        an owner establishing a right to receive the abandoned property; 
           (2) any errors in the presumption of abandonment; 
           (3) the name, address, and exemption number of the 
        corporation or organization to which the property was or is to 
        be distributed; and 
           (4) the approximate date of distribution. 
           Sec. 2.  Minnesota Statutes 2004, section 308A.711, 
        subdivision 3, is amended to read: 
           Subd. 3.  [OWNER'S RIGHT EXTINGUISHED ON DISBURSEMENT.] The 
        right of an owner to unclaimed property held by a cooperative is 
        extinguished when the property is disbursed by the cooperative 
        to a tax-exempt organization in accordance with this 
        section. if:  (1) notice that the payment is available has been 
        mailed to the last known address of the person shown by the 
        records to be entitled to the property; or (2) the address is 
        unknown, notice is published in an official publication of the 
        cooperative. 
           Sec. 3.  Minnesota Statutes 2004, section 308B.735, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ALTERNATE PROCEDURE TO DISBURSE PROPERTY.] 
        A cooperative may, in lieu of paying or delivering to the state 
        the unclaimed property specified in its report of unclaimed 
        property, distribute the unclaimed property to a business entity 
        or organization that is exempt from taxation.  A cooperative 
        making the election to distribute unclaimed property shall file 
        with the Department of Commerce:  
           (1) a verified written explanation of the proof of claim of 
        an owner establishing a right to receive the abandoned property; 
           (2) any error in the presumption of abandonment; 
           (3) the name, address, and exemption number of the business 
        entity or organization to which the property was or is to be 
        distributed; and 
           (4) the approximate date of distribution. 
           Sec. 4.  Minnesota Statutes 2004, section 308B.735, 
        subdivision 3, is amended to read: 
           Subd. 3.  [OWNER'S RIGHT EXTINGUISHED ON DISBURSEMENT.] The 
        right of an owner to unclaimed property held by a cooperative is 
        extinguished when the property is disbursed by the cooperative 
        to a tax exempt organization in accordance with this 
        section. if:  (1) notice that the payment is available has been 
        mailed to the last known address of the person shown by the 
        records to be entitled to the property; or (2) the address is 
        unknown, notice is published in an official publication of the 
        cooperative. 
           Sec. 5.  Minnesota Statutes 2004, section 345.42, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER'S DUTY TO PUBLISH.] Within 
        the calendar year next following the year in which abandoned 
        property has been paid or delivered to the commissioner, the 
        commissioner shall cause notice to be published at least once 
        but not more than twice in an English language newspaper of 
        general circulation in the county in this state in which is 
        located the last known address of any person to be named in the 
        notice.  If no address is listed or if the address is outside 
        this state, the notice shall be published in the county in which 
        the holder of the abandoned property has a principal place of 
        business within this state provide public notice of the 
        abandoned property in the manner and frequency the commissioner 
        determines to be most effective and efficient in communicating 
        to the persons appearing to be owners of this property.  Public 
        notice may include the use of print, broadcast, or electronic 
        media.  The commissioner shall, at a minimum, expend 15 percent 
        of the funds allocated by the legislature to the operations of 
        the unclaimed property division, to comply with the public 
        notice requirements of this subdivision. 
           Sec. 6.  Minnesota Statutes 2004, section 345.46, is 
        amended to read: 
           345.46 [PERIOD OF LIMITATION NOT A BAR.] 
           (a) The expiration of any a period of time specified by 
        statute or court order, during which an action or proceeding may 
        be commenced or enforced to obtain payment of a claim for money 
        or recovery of property, shall not prevent the money or property 
        from being presumed abandoned property, nor affect any duty to 
        file a report required by sections 345.31 to 345.60 or to pay or 
        deliver abandoned property to the commissioner. limitation on 
        the owner's right to receive or recover property, whether 
        specified by contract, statute, or court order, does not 
        preclude the property from being presumed abandoned or affect a 
        duty to file a report or to pay or deliver or transfer property 
        to the administrator as required by sections 345.31 to 345.60.  
        This paragraph applies to any expiration of a period of 
        limitations that occurs whether before or after the effective 
        date of sections 345.31 to 345.60. 
           (b) An action or proceeding may not be maintained by the 
        administrator to enforce sections 345.31 to 345.60 in regard to 
        the reporting, delivery, or payment of property more than ten 
        years after the holder specifically identified the property in a 
        report filed with the administrator or gave express notice to 
        the administrator of a dispute regarding the property.  In the 
        absence of such a report or other express notice, the period of 
        limitation is tolled.  The period of limitation is also tolled 
        by the filing of a report that is fraudulent. 
           Sec. 7.  [345.75] [ABANDONED TANGIBLE PERSONAL PROPERTY.] 
           The ownership of abandoned tangible personal property that 
        is not subject to any other provision of statute may be 
        transferred as provided by this section.  
           If property has not been removed within six months after it 
        comes into the possession of a person, it is abandoned and shall 
        become the property of the person in possession, after notice to 
        the prior owner.  Thirty days' notice that the time period has 
        elapsed and that the ownership will be transferred at the end of 
        the 30 days shall be given to the prior owner personally or by 
        certified mail, which is actually received.  If the name of the 
        prior owner is not known, and cannot be ascertained with 
        reasonable diligence, three weeks' published notice shall be 
        given in the county where the property is located.  The prior 
        owner or another person claiming an interest in the property may 
        petition the district court to stay the transfer of ownership 
        for a reasonable period to allow the removal of the property.  
        The transfer is stayed while the petition is pending before the 
        court. 
           Sec. 8.  [REPEALER.] 
           Minnesota Statutes 2004, sections 308A.711, subdivision 2; 
        308B.735, subdivision 2; and 345.42, subdivisions 2 and 3, are 
        repealed. 
           Presented to the governor May 24, 2005 
           Signed by the governor May 27, 2005, 2:45 p.m.