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

                            CHAPTER 137-H.F.No. 156 
                  An act relating to state government; secretary of 
                  state; regulating filing fees and procedures; amending 
                  Minnesota Statutes 1996, sections 5.12; 5.23; 5.25, 
                  subdivision 1; 5A.03; 5A.04; 302A.821, subdivision 5; 
                  303.14, subdivision 1; 308A.005, by adding a 
                  subdivision; 317A.821, subdivision 3; 317A.827, 
                  subdivision 1; 322A.03; 331A.02, subdivision 1; 
                  333.035; 336.9-403; 336.9-404; 336A.04, subdivision 4; 
                  and 514.08, subdivision 2; proposing coding for new 
                  law in Minnesota Statutes, chapter 5; repealing 
                  Minnesota Rules, part 3650.0030, subpart 8. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 5.12, is 
        amended to read: 
           5.12 [CERTIFICATE; CERTIFIED COPY OF DOCUMENT; FEE 
        CERTIFICATES AND CERTIFICATIONS.] 
           Subdivision 1.  [FEES.] The secretary of state shall charge 
        a fee of $5 for each certificate or certification of a copy of 
        any document filed in the office of the secretary of state.  The 
        secretary of state shall charge a fee of $3 for a copy of an 
        original filing of a corporation, limited partnership, trade or 
        service mark, or for the complete record of a certificate of 
        assumed name.  The secretary of state shall charge a fee of $3 
        for a copy of any or all subsequent filings of a corporation, 
        limited partnership, or trade or service mark.  The secretary of 
        state shall charge a fee of $1 per page for copies of other 
        nonuniform commercial code documents filed with the secretary of 
        state. 
           Subd. 2.  [CERTIFICATE OF GOOD STANDING.] Upon payment of 
        the proper fee, the secretary of state shall issue a certificate 
        of good standing to a person when a business entity is in good 
        standing as defined in section 5.26. 
           Subd. 3.  [CERTIFICATE OF NOT IN GOOD STANDING.] Upon 
        payment of the proper fee, the secretary of state shall issue a 
        certificate of not in good standing to a person when a business 
        entity is not in good standing as defined in section 5.26. 
           Subd. 4.  [CERTIFICATE OF REGISTRATION.] Upon payment of 
        the proper fee, the secretary of state shall issue a certificate 
        of registration to a person when a business filing with the 
        secretary has been made that does not create a separate legal 
        entity.  
           Sec. 2.  Minnesota Statutes 1996, section 5.23, is amended 
        to read: 
           5.23 [REMOVAL OF DOCUMENTS FROM THE PUBLIC RECORD.] 
           Subdivision 1.  [FAILURE TO PAY FILING FEE.] If an 
        instrument authorized to be filed with the secretary of state 
        has been submitted with a draft or other negotiable 
        instrument payment order or item that is returned without being 
        honored rejected or dishonored, the secretary may must remove 
        the instrument from the public record.  The secretary may also 
        pursue collection of the rejected or dishonored draft or 
        negotiable instrument payment order or item and recover the face 
        amount of the draft or negotiable instrument payment order or 
        item, any service fee, and any additional collection costs 
        incurred to collect the amount.  If the draft or negotiable 
        instrument payment order or item is honored, the instrument must 
        be returned to the public record as of the date the draft or 
        negotiable instrument payment order or item is honored and the 
        secretary may impose restrictions on the manner of payment that 
        will be accepted for any future filings.  This subdivision does 
        not apply to financing statements filed under chapter 336. 
           Subd. 2.  [FAILURE TO PAY FEE.] If a party enters into a 
        continuing agreement with the secretary of state for the receipt 
        of information or products containing information and payment 
        for services or products is made by a draft or other negotiable 
        instrument payment order or item that is returned without being 
        honored rejected or dishonored, the secretary shall immediately 
        terminate the agreement.  The secretary may also pursue 
        collection of the rejected or dishonored draft or negotiable 
        instrument payment order or item and recover the face amount of 
        the draft or negotiable instrument payment order or item and any 
        additional costs incurred to collect the amount.  If the draft 
        or negotiable instrument payment order or item is honored, the 
        agreement may be reinstated and the secretary may impose 
        restrictions on the manner of payment that will be accepted 
        during the course of the agreement.  
           Subd. 3.  [FAILURE TO PAY DIRECT ACCESS CHARGES.] If a 
        customer who has subscribed with the secretary of state for 
        direct computer access to the secretary's data bases makes 
        payment for information received with a draft or other 
        negotiable instrument payment order or item that is returned 
        without being honored rejected or dishonored, the secretary 
        shall immediately terminate the customer's access to the data 
        bases.  The secretary may also pursue collection of the rejected 
        or dishonored draft or negotiable instrument payment order or 
        item and recover the face amount of the draft or negotiable 
        instrument payment order or item and any additional costs 
        incurred to collect the amount.  If the draft or negotiable 
        instrument payment order or item is honored, access may be 
        restored and the secretary may impose restrictions on the 
        methods of payment that will be acceptable.  
           Subd. 4.  [COLLECTION OF ALL AMOUNTS.] The secretary of 
        state must collect the face amount of the rejected or dishonored 
        draft or negotiable instrument payment order or item, any 
        service fee, and all costs of collection in every possible 
        instance.  Collection must occur whether or not the instrument 
        is returned to the public record or the customer continues to 
        receive the information products or access to the data base.  
        Uncollectible drafts payment orders and items must be processed 
        according to applicable Minnesota law. 
           Sec. 3.  Minnesota Statutes 1996, section 5.25, subdivision 
        1, is amended to read: 
           Subdivision 1.  [WHO MAY BE SERVED.] A process, notice, or 
        demand required or permitted by law to be served upon an entity 
        governed by chapter 221, 302A, 303, 317A, 322A, 322B, 323, 330, 
        540, or 543 may be served on:  (1) the registered agent, if any; 
        (2) if no agent has been appointed then on an officer, manager, 
        or partner of the entity; or (3) if no agent, officer, manager, 
        or partner can be found at the address on file with the 
        secretary of state, on the secretary of state as provided in 
        this section. 
           Sec. 4.  [5.26] [GOOD STANDING.] 
           Subdivision 1.  [DEFINITION.] "Good standing" means that a 
        business entity has complied with all of the filing and 
        registration requirements with the office of the secretary of 
        state described in the entity's governing chapter.  
           Subd. 2.  [EFFECT OF STATUS.] (a) When a business entity is 
        in good standing it may amend its organizing document that is on 
        file with the secretary of state.  
           (b) When a business entity is in good standing, the 
        secretary of state shall issue a certificate of good standing as 
        described in section 5.12.  
           (c) A business entity that is not in good standing may 
        participate in a merger where it does not survive the merger 
        transaction or may dissolve or terminate its existence.  It may 
        not amend its organizing document or file other documents with 
        the secretary of state, other than documents required to return 
        the business entity to good standing. 
           (d) When a business entity is not in good standing, the 
        secretary of state shall issue a certificate of not in good 
        standing as described in section 5.12.  The secretary of state 
        shall not issue a certificate of good standing with respect to a 
        business entity that is not in good standing.  
           Subd. 3.  [REINSTATEMENT.] Reinstatement of good standing 
        is controlled by the provisions of the chapter that governs the 
        business entity.  
           Sec. 5.  Minnesota Statutes 1996, section 5A.03, is amended 
        to read: 
           5A.03 [ORGANIZATION APPLICATION FOR REGISTRATION.] 
           (a) An application for registration as an international 
        student exchange visitor placement organization must be 
        submitted in the form prescribed by the secretary of state.  The 
        application must include: 
           (1) evidence that the organization meets the standards 
        established by the secretary of state by rule; 
           (2) the name, address, and telephone number of the 
        organization, its chief executive officer, and the person within 
        the organization who has primary responsibility for supervising 
        placements within the state; 
           (3) the organization's unified business identification 
        number, if any; 
           (4) the organization's United States Information Agency 
        number, if any; 
           (5) evidence of Council on Standards for International 
        Educational Travel listing, if any; 
           (6) whether the organization is exempt from federal income 
        tax; and 
           (7) a list of the organization's placements in Minnesota 
        for the previous academic year including the number of students 
        placed, their home countries, the school districts in which they 
        were placed, and the length of their placements. 
           (b) The application must be signed by the chief executive 
        officer of the organization and the person within the 
        organization who has primary responsibility for supervising 
        placements within Minnesota.  If the secretary of state 
        determines that the application is complete, the secretary of 
        state shall file the application and the applicant is registered.
           (c) Organizations that have registered shall inform the 
        secretary of state of any changes in the information required 
        under paragraph (a), clause (1), within 30 days of the 
        change.  There is no fee to amend a registration. 
           (d) Registration under this chapter is valid for one year.  
        The registration may be renewed annually.  The fee to renew a 
        registration is $50 per year. 
           (e) Organizations registering for the first time in 
        Minnesota must pay an initial registration fee of $150. 
           (f) Fees collected by the secretary of state under this 
        section must be deposited in the state treasury and credited to 
        the general fund and are added to the appropriation from which 
        registration costs are paid. 
           Sec. 6.  Minnesota Statutes 1996, section 5A.04, is amended 
        to read: 
           5A.04 [RULES.] 
           (a) The secretary of state shall adopt by rule standards 
        for international student exchange visitor placement 
        organizations.  In adopting the rules, the secretary of state 
        may adopt standards established by the United States Information 
        Agency and the Council on Standards for International 
        Educational Travel.  The secretary of state may incorporate 
        standards established by the United States Information Agency or 
        the Council on Standards for International Educational Travel by 
        reference and may accept an organization's designation by the 
        United States Information Agency or acceptance for listing by 
        the Council on Standards for International Educational Travel as 
        evidence of compliance with the standards. 
           (b) The secretary of state may adopt rules as necessary to 
        carry out its duties under this chapter. The rules may provide 
        for a reasonable registration fee not to exceed $150 for each 
        initial registration and $50 for each annual renewal to defray 
        the costs of processing registrations.  Fees collected by the 
        secretary of state under this provision shall be deposited in 
        the state treasury and credited to the general fund and are 
        added to the appropriation from which registration costs are 
        paid. 
           (c) The secretary of state must require that an 
        international student exchange visitor placement organization's 
        application form for participation as a host family include a 
        signed document complying with section 299C.62, subdivision 2, 
        that gives the organization permission to conduct a background 
        check on members of the host family.  Sections 299C.60 to 
        299C.64 apply to the background check, except that for purposes 
        of this section the term "background check crime" includes any 
        felony. 
           Sec. 7.  Minnesota Statutes 1996, section 302A.821, 
        subdivision 5, is amended to read: 
           Subd. 5.  [PENALTY.] (a) A corporation that has failed for 
        three consecutive years to file a registration pursuant to the 
        requirements of subdivision 1, has been notified of the failure 
        pursuant to subdivision 4, and has failed to file the delinquent 
        registration during the 60-day period described in subdivision 
        4, shall be dissolved by the secretary of state as described in 
        paragraph (b).  
           (b) Immediately after the expiration of the 60-day period 
        described in paragraph (a), if the corporation has not filed the 
        delinquent registration, the secretary of state shall issue a 
        certificate of involuntary dissolution, and a copy of the 
        certificate shall be filed in the office of the secretary of 
        state.  The original certificate shall be sent to the registered 
        office of the corporation.  The secretary of state shall 
        annually inform the attorney general and the commissioner of 
        revenue of the methods by which the names of corporations 
        dissolved under this section during the preceding year may be 
        determined.  A corporation dissolved in this manner is not 
        entitled to the benefits of section 302A.781.  The liability, if 
        any, of the shareholders of a corporation dissolved in this 
        manner shall be determined and limited in accordance with 
        section 302A.557, except that the shareholders shall have no 
        liability to any director of the corporation under section 
        302A.559, subdivision 2.  
           Sec. 8.  Minnesota Statutes 1996, section 303.14, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FILED WITH SECRETARY OF STATE; CONTENTS.] 
        Between January 15 and May 15, in each calendar year, every 
        foreign corporation which holds a certificate of authority shall 
        make and file with the secretary of state a report for the 
        previous calendar year, setting forth: 
           (1) the name of the corporation and the state or country 
        under the laws of which it is organized; 
           (2) if the name of the corporation does not end with the 
        word "Corporation" or the word "Incorporated," or the 
        abbreviation "Inc.," or does not contain the word "Company" or 
        the abbreviation "Co." not immediately preceded by the word 
        "and" or the character "&," then the name of the corporation 
        with the word or abbreviation which it has agreed to add thereto 
        for use in this state; 
           (3) the address of its registered office in this state and 
        the name of its registered agent at such address; 
           (4) additional information necessary or appropriate to 
        enable the secretary of state to determine the additional 
        license fee, if any, payable by the corporation; 
           (5) a statement of the corporate taxable net income as 
        stated in its appropriate Minnesota corporate income tax return 
        that was due in the previous year; and 
           (6) the fee required by section 303.07, subdivision 2.  
        This fee shall be submitted with the annual report.  
           Sec. 9.  Minnesota Statutes 1996, section 308A.005, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [ADDRESS.] "Address" means mailing address, 
        including a zip code.  In the case of a registered address, the 
        term means the mailing address and the actual office location, 
        which may not be a post office box. 
           Sec. 10.  Minnesota Statutes 1996, section 317A.821, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DISSOLUTION; EXTENSION.] If a corporation fails 
        to regain its good standing under subdivision 2 on or before 
        December 31, 1997, the corporation is dissolved under section 
        317A.827.  After December 31, 1997, the corporate existence of a 
        corporation dissolved under this subdivision may be extended by 
        filing the initial corporate registration with the secretary of 
        state and payment of a $1,000 $25 fee.  The extension relates 
        back to December 31, 1997. 
           Sec. 11.  Minnesota Statutes 1996, section 317A.827, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PROCEDURE.] If a corporation fails to file 
        the initial registration by December 31, 1997, or if it fails to 
        file the delinquent registration before expiration of the 60-day 
        period in section 317A.823, subdivision 3, the secretary of 
        state shall immediately issue a certificate of involuntary 
        dissolution.  The secretary of state shall send the original 
        certificate to the registered office of the corporation and file 
        a copy in the office of the secretary of state.  The secretary 
        of state shall annually inform the attorney general of 
        the methods by which the names of corporations dissolved under 
        this section during the previous year may be determined.  A 
        corporation dissolved under this section is not entitled to the 
        benefits of section 317A.781, subdivision 1. 
           Sec. 12.  Minnesota Statutes 1996, section 322A.03, is 
        amended to read: 
           322A.03 [RESERVATION OF NAME.] 
           (a) The exclusive right to the use of a name may be 
        reserved by: 
           (1) any person intending to organize a limited partnership 
        under sections 322A.01 to 322A.87 and to adopt that name; 
           (2) any domestic limited partnership or any foreign limited 
        partnership registered in this state which, in either case, 
        intends to adopt that name; 
           (3) any foreign limited partnership intending to register 
        in this state and adopt that name; and 
           (4) any person intending to organize a foreign limited 
        partnership and intending to have it register in this state and 
        adopt that name. 
           (b) The reservation shall be made by filing with the 
        secretary of state an application, executed by the applicant, to 
        reserve a specified name.  On finding that the name is available 
        for use by a domestic or foreign limited partnership, the 
        secretary of state shall reserve the name for the exclusive use 
        of the applicant for a period of 120 days.  Once having so 
        reserved a name, the same applicant may not again reserve the 
        same name until more than 60 days after the expiration of the 
        last 120-day period for which that applicant reserved that 
        name 12 months.  The reservation may be renewed for successive 
        12-month periods.  The right to the exclusive use of a reserved 
        name may be transferred to any other person by filing in the 
        office of the secretary of state a notice of the transfer, 
        executed by the applicant for whom the name was reserved and 
        specifying the name and address of the transferee. 
           Sec. 13.  Minnesota Statutes 1996, section 331A.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [QUALIFICATION.] No newspaper in this state 
        shall be entitled to any compensation or fee for publishing any 
        public notice unless it is qualified as a medium of official and 
        legal publication.  A newspaper that is not qualified must 
        inform a public body that presents a public notice for 
        publication that it is not qualified.  To be qualified as a 
        medium of official and legal publication, a newspaper shall:  
           (a) be printed in the English language in newspaper format 
        and in column and sheet form equivalent in printed space to at 
        least 1,000 square inches; 
           (b) if a daily, be distributed at least five days each 
        week, or if not a daily, be distributed at least once each week, 
        for 50 weeks each year.  In any week in which a legal holiday is 
        included, not more than four issues of a daily paper are 
        necessary; 
           (c) in at least half of its issues each year, have no more 
        than 75 percent of its printed space comprised of advertising 
        material and paid public notices.  In all of its issues each 
        year, have 25 percent, if published more often than weekly, or 
        50 percent, if weekly, of its news columns devoted to news of 
        local interest to the community which it purports to serve.  Not 
        more than 25 percent of its total nonadvertising column inches 
        in any issue may wholly duplicate any other publication unless 
        the duplicated material is from recognized general news 
        services; 
           (d) be circulated in the local public corporation which it 
        purports to serve, and either have at least 500 copies regularly 
        delivered to paying subscribers, or have at least 500 copies 
        regularly distributed without charge to local residents; 
           (e) have its known office of issue established in either 
        the county in which lies, in whole or in part, the local public 
        corporation which the newspaper purports to serve, or in an 
        adjoining county; 
           (f) file a copy of each issue immediately with the state 
        historical society; 
           (g) be made available at single or subscription prices to 
        any person, corporation, partnership, or other unincorporated 
        association requesting the newspaper and making the applicable 
        payment, or be distributed without charge to local residents; 
           (h) have complied with all the foregoing conditions of this 
        subdivision for at least one year immediately preceding the date 
        of the notice publication; and 
           (i) between September 1 and December 31 of each year 
        publish and submit to the secretary of state, along with a 
        filing fee of $25, a sworn United States Post Office 
        second-class periodicals-class statement of ownership and 
        circulation or a statement of ownership and circulation verified 
        by a recognized independent circulation auditing agency covering 
        a period of not less than at least one year ending no earlier 
        than the June 30 preceding the filing publication deadline, 
        provided that a filing published and submitted.  When 
        publication occurs after December 31 and before July 1, 
        qualification shall be effective from the date of the 
        filing described in paragraph (j) through December 31 of that 
        year.  The secretary of state shall make the list of newspapers 
        whose filings have been accepted available for public 
        inspection.  The acceptance of a filing does not constitute a 
        guarantee by the state that any other qualification requirement 
        has been met.; and 
           (j) after publication, submit to the secretary of state by 
        December 31 a filing containing the newspaper's name, address of 
        its known office of issue, telephone number, and a statement 
        that it has complied with all of the requirements of this 
        section.  The filing must be accompanied by a fee of $25.  The 
        secretary of state shall make available for public inspection a 
        list of newspapers that have filed.  Acceptance of a filing does 
        not constitute a guarantee by the state that any other 
        qualification has been met. 
           Sec. 14.  Minnesota Statutes 1996, section 333.035, is 
        amended to read: 
           333.035 [AMENDMENT OF CERTIFICATE.] 
           Within 60 days after the occurrence of any event which 
        makes any statement in the last previous statement certificate 
        filed incorrect, an amended certificate shall be filed and the 
        amended certificate shall be published by the person conducting 
        the business in the same manner as provided by section 
        333.01.  If the amendment is made only to comply with a change 
        in the law that occurred since the previous date of filing, 
        publication is not required. 
           Sec. 15.  Minnesota Statutes 1996, section 336.9-403, is 
        amended to read: 
           336.9-403 [WHAT CONSTITUTES FILING; DURATION OF FILING; 
        EFFECT OF LAPSED FILING; DUTIES OF FILING OFFICER.] 
           (1) Presentation for filing of a financing statement and 
        tender of the filing fee or acceptance of the statement by the 
        filing officer constitutes filing under this article. 
           (2) Except as provided in subsection (6) a filed financing 
        statement is effective for a period of five years from the date 
        of filing.  The effectiveness of a filed financing statement 
        lapses on the expiration of the five-year period unless a 
        continuation statement is filed prior to the lapse.  If a 
        security interest perfected by filing exists at the time 
        insolvency proceedings are commenced by or against the debtor, 
        the security interest remains perfected until termination of the 
        insolvency proceedings and thereafter for a period of 60 days or 
        until expiration of the five-year period, whichever occurs later 
        regardless of whether the financing statement filed as to that 
        security interest is destroyed by the filing officer pursuant to 
        subsection (3).  Upon lapse the security interest becomes 
        unperfected, unless it is perfected without filing.  If the 
        security interest becomes unperfected upon lapse, it is deemed 
        to have been unperfected as against a person who became a 
        purchaser or lien creditor before lapse. 
           (3) A continuation statement may be filed by the secured 
        party within six months prior to the expiration of the five-year 
        period specified in subsection (2).  Any such continuation 
        statement must be signed by the secured party, set forth the 
        name, social security number or other tax identification number 
        of the debtor, and address of the debtor and secured party as 
        those items appear on the original financing statement or the 
        most recently filed amendment, identify the original statement 
        by file number and filing date, and state that the original 
        statement is still effective.  A continuation statement signed 
        by a person other than the secured party of record must be 
        accompanied by a separate written statement of assignment signed 
        by the secured party of record and complying with subsection (2) 
        of section 336.9-405, including payment of the required fee.  
        Upon timely filing of the continuation statement, the 
        effectiveness of the original statement is continued for five 
        years after the last date to which the filing was effective 
        whereupon it lapses in the same manner as provided in subsection 
        (2) unless another continuation statement is filed prior to such 
        lapse.  Succeeding continuation statements may be filed in the 
        same manner to continue the effectiveness of the original 
        statement.  Unless a statute on disposition of public records 
        provides otherwise, the filing officer may remove a lapsed 
        statement from the files and destroy it immediately if the 
        officer has retained a microfilm or other photographic record 
        copy in a format which meets archival standards, or in other 
        cases after one year after the lapse.  The filing officer shall 
        so arrange matters by physical annexation of financing 
        statements to continuation statements or other related filings, 
        or by other means, that if the officer physically destroys the 
        financing statements of a period more than five years past, 
        those which have been continued by a continuation statement or 
        which are still effective under subsection (6) shall be 
        retained.  If insolvency proceedings are commenced by or against 
        the debtor, the secured party shall notify the filing officer 
        both upon commencement and termination of the proceedings, and 
        the filing officer shall not destroy any financing statements 
        filed with respect to the debtor until termination of the 
        insolvency proceedings.  The security interest remains perfected 
        until termination of the insolvency proceedings and thereafter 
        for a period of 60 days or until expiration of the five-year 
        period, whichever occurs later. 
           (4) Except as provided in subsection (7) a filing officer 
        shall mark each statement with a file number and with the date 
        and hour of filing and shall hold the statement or a microfilm 
        or other photographic copy thereof in a format that meets 
        archival standards for public inspection.  In addition the 
        filing officer shall index the statements according to the name 
        of the debtor and shall note in the index the file number, the 
        address of the debtor given in the statement, and the social 
        security number or other tax identification number of the debtor 
        given in the statement. 
           (5) The secretary of state shall prescribe uniform forms 
        for statements and samples thereof shall be furnished to all 
        filing officers in the state.  The uniform fee for filing and 
        indexing and for stamping a copy furnished by the secured party 
        to show the date and place of filing: 
           (a) for an original financing statement or statement of 
        continuation on a standard form prescribed by the secretary of 
        state, is $15 for up to two debtor names and $15 for each 
        additional name thereafter; 
           (b) for an original financing statement or statement of 
        continuation that is not on a standard form prescribed by the 
        secretary of state, is $20 for up to two debtor names and $20 
        for each additional name thereafter; 
           (c) for an amendment on a standard form prescribed by the 
        secretary of state that does not add debtor names, is $15; 
           (d) for an amendment that is not on a standard form 
        prescribed by the secretary of state and that does not add 
        debtor names, is $20; 
           (e) for an amendment on a standard form prescribed by the 
        secretary of state that adds more than one debtor name, is $15 
        per debtor name; and 
           (f) for an amendment that is not on a standard form 
        prescribed by the secretary of state that adds more than one 
        debtor name, is $20 per debtor name. 
        In no case will a filing officer accept more than four 
        additional pages per financing statement for filing in the 
        uniform commercial code records. 
           The secretary of state shall adopt rules for filing, 
        amendment, continuation, termination, removal, and destruction 
        of financing statements. 
           (6) If the debtor is a transmitting utility (subsection (5) 
        of section 336.9-401) and a filed financing statement so states, 
        it is effective until a termination statement is filed.  A real 
        estate mortgage which is effective as a fixture filing under 
        subsection (6) of section 336.9-402 remains effective as a 
        fixture filing until the mortgage is released or satisfied of 
        record or its effectiveness otherwise terminates as to the real 
        estate. 
           (7) When a financing statement covers timber to be cut or 
        covers minerals or the like (including oil and gas) or accounts 
        subject to subsection (5) of section 336.9-103, or is filed as a 
        fixture filing, it shall be filed for record and the filing 
        officer shall index it under the names of the debtor and any 
        owner of record shown on the financing statement in the same 
        fashion as if they were the mortgagors in a mortgage of the real 
        estate described, and, to the extent that the law of this state 
        provides for indexing of mortgages under the name of the 
        mortgagee, under the name of the secured party as if the secured 
        party were the mortgagee thereunder, or, for filing offices 
        other than the secretary of state, where indexing is by 
        description in the same fashion as if the financing statement 
        were a mortgage of the real estate described.  
           (8) The fees provided for in this article shall supersede 
        the fees for similar services otherwise provided for by law 
        except in the case of security interests filed in connection 
        with a certificate of title on a motor vehicle. 
           Sec. 16.  Minnesota Statutes 1996, section 336.9-404, is 
        amended to read: 
           336.9-404 [TERMINATION STATEMENT.] 
           (1) If a financing statement covering consumer goods is 
        filed on or after January 1, 1977, then within one month or 
        within ten days following written demand by the debtor after 
        there is no outstanding secured obligation and no commitment to 
        make advances, incur obligations or otherwise give value, the 
        secured party must file with each filing officer with whom the 
        financing statement was filed, a termination statement to the 
        effect that the secured party no longer claims a security 
        interest under the financing statement.  The termination 
        statement must set forth the name and address of the debtor and 
        secured party as those items appear on the original financing 
        statement or the most recently filed amendment; identify the 
        original financing statement by file number and filing date; and 
        be signed by the secured party.  In other cases whenever there 
        is no outstanding secured obligation and no commitment to make 
        advances, incur obligations, or otherwise give value, the 
        secured party must on written demand by the debtor send the 
        debtor, for each filing officer with whom the financing 
        statement was filed, a termination statement to the effect that 
        the secured party no longer claims a security interest under the 
        financing statement, which shall be identified by file number.  
        A termination statement signed by a person other than the 
        secured party of record must be accompanied by a separate 
        written statement of assignment signed by the secured party of 
        record and complying with subsection (2) of section 336.9-405, 
        including payment of the required fee.  If the affected secured 
        party fails to file such a termination statement as required by 
        this subsection, or to send such a termination statement within 
        ten days after proper demand therefor the secured party shall be 
        liable to the debtor for $100, and in addition for any loss 
        caused to the debtor by such failure. 
           (2) On being presented with such a termination statement 
        the filing officer must note it in the index.  If a duplicate 
        termination statement is provided, the filing officer shall 
        return one copy of the termination statement to the secured 
        party stamped to show the time of receipt thereof.  If the 
        filing officer has a microfilm or other photographic record of 
        the financing statement in a format that meets archival 
        standards, and of any related continuation statement, statement 
        of assignment and statement of release, the filing officer may 
        remove the originals from the files at any time after receipt of 
        the termination statement, or having no such record, the filing 
        officer may remove them from the files at any time after one 
        year after receipt of the termination statement. 
           (3) There shall be no fee collected for the filing of a 
        termination if the termination statement is in the standard form 
        prescribed by the secretary of state.  The fee for filing a 
        termination statement on a form that is not the standard form 
        prescribed by the secretary of state is $5.  If the original 
        financing statement was subject to subsection (5) of section 
        336.9-402, the fee prescribed by section 357.18, subdivision 1, 
        clause (1), is also required. 
           Sec. 17.  Minnesota Statutes 1996, section 336A.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [FILING PROCEDURE.] (a) The filing officer shall 
        mark the effective financing statement or lien notice with a 
        consecutive file number and the date and hour of filing.  
           (b) The filing office shall maintain the original filed 
        document or a microfilm or other photographic copy of the filed 
        document in a format that meets archival standards for public 
        inspection as provided in rule by the secretary of state.  
           (c) The filing office shall index filed documents according 
        to the file number of the document.  
           Sec. 18.  Minnesota Statutes 1996, section 514.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [STATEMENT BY LIEN CLAIMANT; REQUIREMENTS.] Such 
        statement shall be made by or at the instance of the lien 
        claimant, be verified by the oath of some person shown by such 
        verification to have knowledge of the facts stated, and shall 
        set forth: 
           (1) a notice of intention to claim and hold a lien, and the 
        amount thereof; 
           (2) that such amount is due and owing to the claimant for 
        labor performed, or for skill, material, or machinery furnished, 
        and for what improvement the same was done or supplied; 
           (3) the names of the claimant, and of the person for or to 
        whom performed or furnished; 
           (4) the dates when the first and last items of the 
        claimant's contribution to the improvement were made; 
           (5) a description of the premises to be charged, 
        identifying the same with reasonable certainty; 
           (6) the name of the owner thereof at the time of making 
        such statement, according to the best information then had; 
           (7) the post office address of the claimant.  (The failure 
        to insert such post office address shall not invalidate the lien 
        statement); 
           (8) that claimant acknowledges that a copy of the statement 
        must be served personally or by certified mail within the 
        120-day period provided in this section on the owner, the 
        owner's authorized agent or the person who entered into the 
        contract with the contractor as provided herein; and 
           (9) that notice as required by section 514.011, subdivision 
        2, if any, was given. 
           When the claimant files the notice, the social security 
        number of an individual owner or the Internal Revenue Service 
        taxpayer identification number for an owner other than an 
        individual is not required. 
           Sec. 19.  [RULES REPEALER.] 
           Minnesota Rules, part 3650.0030, subpart 8, is repealed. 
           Presented to the governor May 9, 1997 
           Signed by the governor May 12, 1997, 11:13 a.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569