Minnesota Session Laws - 2005, Regular Session

                             CHAPTER 92-H.F.No. 466 
                  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: 
           Subd. 3.  [TENDER FOR STORAGE.] 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. 
           Sec. 2.  Minnesota Statutes 2004, section 231.08, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [GOODS; LABELING.] 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. 
           Sec. 3.  Minnesota Statutes 2004, section 231.08, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [FIRE PROTECTION.] All warehouses must be 
        protected against fire by an automatic device or fire 
        extinguishers. 
           Sec. 4.  Minnesota Statutes 2004, section 231.08, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [FLOOR LOAD.] 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. 
           Sec. 5.  Minnesota Statutes 2004, section 231.08, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [STORAGE CONDITIONS.] (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. 
           (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. 
           Sec. 6.  Minnesota Statutes 2004, section 231.09, is 
        amended to read: 
           231.09 [OBLIGATION TO ISSUE UNIFORM RECEIPTS.] 
           Subdivision 1.  [RECEIPTS.] 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. 
           Subd. 2.  [COPY TO DEPARTMENT.] A copy of the form of 
        receipt used by the warehouse operator must be furnished to the 
        department with the application for license. 
           Subd. 3.  [INSURANCE.] 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. 
           Subd. 4.  [LOT NUMBER.] The property of each depositor must 
        be specifically designated under a lot number, which must appear 
        on the receipt for the purpose of identification. 
           Subd. 5.  [CORRECTNESS OF RECEIPT.] 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. 
           Subd. 6.  [STORING ADDITIONAL GOODS.] 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. 
           Subd. 7.  [NOTICES TO DEPOSITOR.] 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. 
           Subd. 8.  [LIABILITY LIMITATIONS; OTHER THAN HOUSEHOLD 
        GOODS.] 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. 
           Subd. 9.  [LIABILITY LIMITATIONS; HOUSEHOLD GOODS.] (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. 
           (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. 
           (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). 
           (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.
           Sec. 7.  Minnesota Statutes 2004, section 231.11, is 
        amended to read: 
           231.11 [SCHEDULE OF RATES; STORING HOUSEHOLD GOODS.] 
           Subdivision 1.  [FILING; INSPECTION.] 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. 
           Subd. 2.  [RATE-MAKING PROCEDURE.] 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 at with 
        the following address:  Minnesota Department of Agriculture, 
        Grain Licensing and Auditing Division, 316 Grain Exchange 
        Building, Minneapolis, Minnesota 55415 Section. 
           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 primary 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 bond disbursement date by which 
        claims must be filed, 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.  [231.375] [OPENING OR ABANDONMENT OF WAREHOUSES.] 
           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. 
           On ceasing to use a building or other structure, a 
        warehouse operator must promptly notify the department. 
           Sec. 11.  [REPEALER.] 
           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; and 
        1560.8800, are repealed. 
           Presented to the governor May 21, 2005 
           Signed by the governor May 25, 2005, 12:15 p.m.