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

                            CHAPTER 146-S.F.No. 1745 
                  An act relating to civil law; changing certain 
                  provisions of trust law; clarifying procedures and 
                  terms; providing an effective date; making technical 
                  changes to guardianship and conservatorship law and 
                  correcting certain references; amending Minnesota 
                  Statutes 2002, sections 144.343, subdivision 2; 
                  145B.03, subdivision 3; 145C.05, subdivision 2; 
                  145C.07, subdivisions 2, 4; 147.091, subdivision 2; 
                  147A.13, subdivision 2; 148.10, subdivision 6; 148.75; 
                  153.22, subdivision 4; 156.122; 176.092, subdivision 
                  1; 196.051, subdivision 2; 252A.01, subdivision 1; 
                  252A.03, subdivision 3; 252A.06, subdivision 2; 
                  252A.081; 252A.111; 252A.171; 252A.19; 253B.03, 
                  subdivisions 4a, 6, 6a, 6d, 11; 257B.02; 257B.04, 
                  subdivision 4; 257B.06, subdivision 2; 257C.02; 
                  260C.325, subdivision 3; 270B.03, subdivision 2; 
                  501B.08; 501B.14, subdivision 3; 501B.16; 501B.47; 
                  501B.49, subdivision 2; 501B.50; 501B.51, subdivision 
                  1; 501B.53, subdivision 4; 519.07; 523.03; 524.1-201; 
                  524.2-606; 524.3-715; 525.71; 609.2325, subdivision 2; 
                  609.233, subdivision 2; 626.557, subdivision 10; 
                  626.5572, subdivision 17; Minnesota Statutes 2003 
                  Supplement, sections 256J.14; 524.5-104; 524.5-118, 
                  subdivision 2; 524.5-304; 524.5-308; 524.5-406; 
                  524.5-408; 524.5-417; Laws 2002, chapter 347, section 
                  5; proposing coding for new law in Minnesota Statutes, 
                  chapter 501B. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                   ARTICLE 1 
                                     TRUSTS 
           Section 1.  [501B.012] [MEMORIAL FUND.] 
           Subdivision 1.  [ESTABLISHMENT.] A trust may be created for 
        the purpose of establishing a fund for the benefit of one or 
        more individuals with a single transfer under the Minnesota 
        Uniform Custodial Trust Act in the manner and form provided by 
        section 529.17.  A trust authorized under this section must be 
        created and administered and is subject to the Minnesota Uniform 
        Custodial Trust Act. 
           Subd. 2.  [ADDITIONAL FUNDS.] Notwithstanding subdivision 
        1, after a fund has been created, additional funds may be 
        transferred to the fund without the formalities required by 
        chapter 529 if the transferor manifests a reasonable expression 
        of intent to make the transfer, together with a reasonable form 
        of delivery of the property including, but not limited to, the 
        following: 
           (1) a check payable to the name of the fund and delivered 
        to the trustee or the trustee's custodial agent; 
           (2) delivery of cash or tangible personal property to the 
        trustee or to the trustee's custodial agent; 
           (3) delivery and recording of title of stock or other 
        registered security in the name of the fund; 
           (4) delivery of a deed and acceptance of the deed by the 
        trustee of the fund, or the recording of a deed in the name of 
        the trustee of the fund with the applicable county recorder or 
        registrar of titles for real property; and 
           (5) any other means of transfer and delivery so that a 
        reasonable person would conclude that the transferor intended 
        the property be titled in the name of, and used for the benefit 
        of the beneficiaries of, the fund. 
           Sec. 2.  Minnesota Statutes 2002, section 501B.08, is 
        amended to read: 
           501B.08 [APPOINTMENT OF AND ACQUISITION OF TITLE BY 
        SUCCESSOR TRUSTEES AND CONFIRMATION OF ACTS PERFORMED DURING 
        VACANCIES IN TRUSTEESHIP.] 
           If the terms of a trust provide for the appointment of a 
        successor trustee and direct how the successor is to qualify, 
        title to the trust assets vests in the successor trustee upon 
        qualification, unless the terms of the trust expressly provide 
        otherwise. 
           If the terms of a trust do not effectively provide for the 
        appointment of a successor trustee and appointment of a 
        successor is required, or if title to the trust assets does not 
        vest in a successor trustee, the district court may appoint a 
        successor trustee or vest title in a successor trustee.  
           Whenever the district court appoints a successor trustee, 
        it is presumed that a corporate trustee must be replaced by 
        another corporate trustee unless the court finds it would best 
        serve the interests of all the beneficiaries and is not 
        inconsistent with a material purpose of the trust to not appoint 
        a corporate trustee. 
           The district court may confirm an act performed by a person 
        in execution of the trust while there was no acting trustee. 
           Sec. 3.  Minnesota Statutes 2002, section 501B.14, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION.] (a) Except as provided in 
        paragraph (b), this section applies to any exercise of any 
        powers of the trustee after May 14, 1993, under any trust 
        created before, on, or after May 14, 1993, unless the terms of 
        the trust refer specifically to this section and provide that 
        this section does not apply.  
           (b) This section does not apply to a trustee: 
           (1) who retains or is granted an unlimited lifetime or 
        testamentary power, exercisable in a capacity other than as 
        trustee, to revoke the trust, or to withdraw all of the income 
        and principal of the trust, or to appoint all of the income and 
        principal of the trust to the trustee individually or the 
        trustee's estate; 
           (2) of a trust created on or before May 14, 1993, if the 
        entire principal of the trust would be included in the gross 
        estate of the trustee for federal estate tax purposes if the 
        trustee had died on May 14, 1993, without regard to any power 
        described in subdivision 1; 
           (3) of a trust created on or before May 14, 1993, if no 
        part of the principal of the trust would be included in the 
        gross estate of the trustee for federal estate tax purposes if 
        the trustee had died on May 14, 1993, without exercising the 
        power; or 
           (4) of a trust created on or before May 14, 1993, if (i) 
        the trust is not exempt from generation-skipping transfer tax 
        under chapter 13 of the Internal Revenue Code of 1986, as 
        amended through December 31, 1992, because of Public Law 99-514, 
        section 1433(b) to (d); (ii) there would be a taxable 
        termination with respect to the assets held in the trust if the 
        trustee and all beneficiaries of the trust who are assigned to 
        the trustee's generation or a higher generation had died on May 
        14, 1993; and (iii) the trust would have an inclusion ratio, as 
        defined in section 2642(c) of the Internal Revenue Code of 1986, 
        as amended through December 31, 1992, of one with respect to the 
        taxable termination; or 
           (5) of a trust created on or before May 14, 1993, if (i) on 
        May 14, 1993, there is no person with the power to amend or 
        revoke the trust, and (ii) on May 14, 1993, there is only one 
        trustee of the trust.  
           (c) This section has no effect on an action taken by a 
        trustee on or before May 14, 1993. 
           Sec. 4.  [501B.154] [NONJUDICIAL SETTLEMENT AGREEMENTS.] 
           (a) The trustee and all beneficiaries of a trust not under 
        court supervision may enter into a binding nonjudicial 
        settlement agreement with respect to the matters listed in 
        paragraph (c). 
           (b) A nonjudicial settlement agreement is valid only to the 
        extent it does not violate a material purpose of the trust, 
        subject to paragraph (c), clause (5), and includes terms and 
        conditions that could be properly approved by the court under 
        applicable law. 
           (c) Matters that may be resolved by nonjudicial settlement 
        agreement are: 
           (1) the approval of a trustee's accounting; 
           (2) the resignation of a trustee; 
           (3) the determination of a trustee's compensation; 
           (4) the transfer of the trust's situs; and 
           (5) the termination of a noncharitable trust and 
        distribution of the trust property if the fair market value of 
        the trust is less than $50,000, as determined on the date of the 
        nonjudicial settlement agreement, and it has been determined 
        that relative to the costs of administering the trust, 
        continuance pursuant to its existing terms will defeat or 
        substantially impair the accomplishment of its purposes.  The 
        trust property must be distributed in a manner which conforms as 
        nearly as possible to the intention of the grantor.  The 
        existence of a spendthrift or similar protective provision in 
        the trust does not conclusively make this clause inapplicable. 
           Sec. 5.  [501B.155] [REPRESENTATION; PLEADINGS; WHEN 
        PARTIES ARE BOUND BY OTHERS; NOTICE.] 
           Subdivision 1.  [APPLICABILITY.] Subdivisions 2 to 4 apply 
        in judicial proceedings involving trusts and in nonjudicial 
        settlement agreements under section 501B.154. 
           Subd. 2.  [DESCRIPTION TO GIVE REASONABLE 
        NOTICE.] Interests to be affected must be described in the 
        agreement or pleadings which give reasonable information to 
        owners by name or class, by reference to the instrument creating 
        the interests, or in another appropriate manner. 
           Subd. 3.  [BINDING EFFECT OF ORDERS AND AGREEMENTS.] (a) 
        Persons are bound by orders and nonjudicial settlement 
        agreements binding others in the cases in paragraphs (b) to (d). 
           (b) Orders and agreements binding the sole holder or all 
        coholders of a power of revocation or a presently exercisable 
        general power of appointment, including one in the form of a 
        power of amendment, bind all persons to the extent that their 
        interests, as objects, takers in default, or otherwise are 
        subject to the power. 
           (c) To the extent there is no conflict of interest between 
        them or among persons represented: 
           (1) orders and agreements binding a conservator of the 
        property bind the protected person; 
           (2) orders and agreements binding a guardian bind the ward 
        if no conservator of the estate has been appointed; and 
           (3) orders imposed upon and agreements entered into by an 
        agent having authority to represent and act on behalf of the 
        principal with respect to a particular question or dispute bind 
        the principal. 
           (d) An unborn or unascertained person, a person whose 
        identity or location is unknown and not reasonably 
        ascertainable, a minor, or any other person under a legal 
        disability who is not otherwise represented is bound by an order 
        or nonjudicial settlement agreement to the extent that the 
        person's interest is represented by another party having a 
        substantially identical interest, but only to the extent there 
        is no conflict of interest between them or among persons 
        represented.  A person's identity or location is not reasonably 
        ascertainable if the identity or location is unable to be 
        determined or ascertained after a diligent search is made. 
           Subd. 4.  [REQUIRED NOTICE.] In judicial proceedings 
        involving trusts, notice is required as follows: 
           (1) notice as prescribed by section 501B.18 must be given 
        to every interested person or to one who can bind an interested 
        person as described in subdivision 3, paragraph (c), clause (1), 
        (2), or (3), and may be given both to a person and to another 
        who may bind the person; 
           (2) notice is given to unborn or unascertained persons, who 
        are not represented under subdivision 3, paragraph (c), clause 
        (1), (2), or (3), by giving notice to all known persons whose 
        interests in the proceedings are substantially identical to 
        those of the unborn or unascertained persons. 
           Sec. 6.  Minnesota Statutes 2002, section 501B.16, is 
        amended to read: 
           501B.16 [PETITION FOR COURT ORDER.] 
           A trustee of an express trust by will or other written 
        instrument or a person interested in the trust may petition the 
        district court for an order: 
           (1) to confirm an action taken by a trustee; 
           (2) upon filing of an account, to settle and allow the 
        account; 
           (3) to determine the persons having an interest in the 
        income or principal of the trust and the nature and extent of 
        their interests; 
           (4) to construe, interpret, or reform the terms of a trust, 
        or authorize a deviation from the terms of a trust, including a 
        proceeding involving section 501B.31; 
           (5) to approve payment of the trustee's fees, attorneys' 
        fees, accountants' fees, or any other fees to be charged against 
        the trust; 
           (6) to confirm the appointment of a trustee; 
           (7) to accept a trustee's resignation and discharge the 
        trustee from the trust; 
           (8) to require a trustee to account; 
           (9) to remove a trustee for cause; or if the court finds 
        that removal of the trustee best serves the interests of all of 
        the beneficiaries, is not inconsistent with a material purpose 
        of the trust, and one or more of the following elements is found:
           (i) the trustee has committed a serious breach of trust; 
           (ii) lack of cooperation among cotrustees substantially 
        impairs the administration of the trust; 
           (iii) the unfitness, unwillingness, or persistent failure 
        of the trustee to administer the trust effectively; 
           (iv) there has been a substantial change of circumstances; 
        or 
           (v) removal is requested by all of the beneficiaries not 
        under disability who, on the date the petition is signed, either 
        are current permissible distributees of trust income or 
        principal, or would be permissible distributees of trust income 
        or principal if the trust terminated on that date; 
           (10) to appoint a successor trustee when required by the 
        terms of the trust instrument or when by reason of death, 
        resignation, removal, or other cause there is no acting trustee; 
           (11) to confirm an act performed in execution of the trust 
        by a person while there was no acting trustee; 
           (12) to subject a trust to continuing court supervision 
        under section 501B.23; 
           (13) to remove a trust from continuing court supervision 
        under section 501B.23; 
           (14) to mortgage, lease, sell, or otherwise dispose of real 
        property held by the trustee notwithstanding any contrary 
        provision of the trust instrument; 
           (15) to suspend the powers and duties of a trustee in 
        military service or war service in accordance with section 
        525.95 and to order further action authorized in that section; 
           (16) to secure compliance with the provisions of sections 
        501B.33 to 501B.45, in accordance with section 501B.41; 
           (17) to determine the validity of a disclaimer filed under 
        section 501B.86; 
           (18) to change the situs of a trust; 
           (19) to redress a breach of trust; 
           (20) to terminate a trust; 
           (21) to divide a trust under section 501B.15; 
           (22) to merge two or more trusts under section 501B.15; or 
           (23) to instruct the trustee, beneficiaries, and any other 
        interested parties in any matter relating to the administration 
        of the trust and the discharge of the trustee's duties. 
           Sec. 7.  Laws 2002, chapter 347, section 5, is amended to 
        read: 
           Sec. 5.  [EFFECTIVE DATE.] 
           Section 2 applies to decedents dying after July 31, 2002.  
        Section 4 applies to proceedings for a decree of descent 
        commenced after July 31, 2002. 

                                   ARTICLE 2 
                           GUARDIANS AND CONSERVATORS 
           Section 1.  Minnesota Statutes 2003 Supplement, section 
        524.5-104, is amended to read: 
           524.5-104 [FACILITY OF TRANSFER.] 
           (a) A person required to transfer money or personal 
        property to a minor may do so, as to an amount or value not 
        exceeding $5,000 per year or a different amount that is approved 
        by the court, by transferring it to: 
           (1) a person who has the care and custody of the minor and 
        with whom the minor resides; 
           (2) a guardian of the minor; 
           (3) a custodian under the Uniform Transfers To Minors Act 
        or custodial trustee under the Uniform Custodial Trust Act; or 
           (4) a financial institution as a deposit in an 
        interest-bearing account or certificate in the sole name of the 
        minor and giving notice of the deposit to the minor. 
           (b) This section does not apply if the person making 
        payment or delivery knows that a conservator has been appointed 
        or that a proceeding for appointment of a conservator of the 
        minor is pending. 
           (c) A person who transfers money or property in compliance 
        with this section is not responsible for its proper application. 
           (d) A guardian or other person who receives money or 
        property for a minor under paragraph (a), clause (1) or (2), may 
        only apply it to the support, care, education, health, and 
        welfare of the minor, and may not derive a personal financial 
        benefit except for reimbursement for necessary expenses.  Any 
        excess must be preserved for the future support, care, 
        education, health, and welfare of the minor and any balance must 
        be transferred to the minor upon emancipation or attaining 
        majority.  
           Sec. 2.  Minnesota Statutes 2003 Supplement, section 
        524.5-118, subdivision 2, is amended to read: 
           Subd. 2.  [PROCEDURE; CRIMINAL HISTORY AND MALTREATMENT 
        RECORDS BACKGROUND CHECK.] (a) The court shall request the 
        commissioner of human services to complete a background study 
        under section 245A.041 245C.32.  The request must be accompanied 
        by the applicable fee and the signed consent of the subject of 
        the study authorizing the release of the data obtained to the 
        court.  If the court is requesting a search of the National 
        Criminal Records Repository, the request must be accompanied by 
        a set of classifiable fingerprints of the subject of the study.  
        The fingerprints must be recorded on a fingerprint card provided 
        by the commissioner of human services. 
           (b) The commissioner of human services shall provide the 
        court with information from the Bureau of Criminal 
        Apprehension's criminal justice information system, other 
        criminal history data held by the commissioner of human 
        services, and data regarding substantiated maltreatment of 
        vulnerable adults under section 626.557 and substantiated 
        maltreatment of minors under section 626.556 within 15 working 
        days of receipt of a request.  If the subject of the study has 
        been the perpetrator of substantiated maltreatment of a 
        vulnerable adult or minor, the response must include a copy of 
        the public portion of the investigation memorandum under section 
        626.557, subdivision 12b, or the public portion of the 
        investigation memorandum under section 626.556, subdivision 
        10f.  If the court did not request a search of the National 
        Criminal Records Repository and information from the Bureau of 
        Criminal Apprehension indicates that the subject is a multistate 
        offender or that multistate offender status is undetermined, the 
        response must include this information.  The commissioner shall 
        provide the court with information from the National Criminal 
        Records Repository within three working days of the 
        commissioner's receipt of the data. 
           (c) Notwithstanding section 626.557, subdivision 12b, or 
        626.556, subdivision 10f, if the commissioner of human services 
        or a county lead agency has information that a person on whom a 
        background study was previously done under this section has been 
        determined to be a perpetrator of maltreatment of a vulnerable 
        adult or minor, the commissioner or the county may provide this 
        information to the court that requested the background study.  
        The commissioner may also provide the court with additional 
        criminal history or substantiated maltreatment information that 
        becomes available after the background study is done. 
           Sec. 3.  Minnesota Statutes 2003 Supplement, section 
        524.5-304, is amended to read: 
           524.5-304 [JUDICIAL APPOINTMENT OF GUARDIAN:  PRELIMINARIES 
        TO HEARING.] 
           (a) Upon receipt of a petition to establish a guardianship, 
        the court shall set a date and time for hearing the petition and 
        may appoint a visitor.  The duties and reporting requirements of 
        the visitor are limited to the relief requested in the petition. 
        The visitor must be an individual having training or experience 
        in the type of incapacity alleged. 
           (b) A proposed ward has the right to be represented by 
        counsel at any proceeding under this article.  The court shall 
        appoint counsel to represent the proposed ward for the initial 
        proceeding held pursuant to section 524.5-307 if neither the 
        proposed ward nor others provide counsel unless in a meeting 
        with a visitor the proposed ward specifically waives the right 
        to counsel.  Counsel must be appointed immediately after any 
        petition under this article is served under section 524.5-308.  
        Counsel has the full right of subpoena.  In all proceedings 
        under this article, counsel shall: 
           (1) consult with the proposed ward before any hearing; 
           (2) be given adequate time to prepare for all hearings; and 
           (3) continue to represent the person throughout any 
        proceedings under section 524.5-307, provided that such 
        appointment shall expire upon the expiration of the appeal time 
        for the order appointing guardian or the order dismissing a 
        petition, or upon such other time or event as the court may 
        direct. 
           The court need not appoint counsel to represent the 
        proposed ward on a voluntary petition, and the court may remove 
        a court-appointed attorney at any time if the court finds that 
        the proposed ward has made a knowing and intelligent waiver of 
        the right to counsel or has obtained private counsel. 
           (c) The visitor shall personally serve the notice and 
        petition upon the respondent and shall offer to read the notice 
        and petition to the respondent, and if so requested the visitor 
        shall read the notice and petition to such person.  The visitor 
        shall also interview the respondent in person, and to the extent 
        that the respondent is able to understand: 
           (1) explain to the respondent the substance of the 
        petition; the nature, purpose, and effect of the proceeding; the 
        respondent's rights at the hearing; and the general powers and 
        duties of a guardian; 
           (2) determine the respondent's views about the proposed 
        guardian, the proposed guardian's powers and duties, and the 
        scope and duration of the proposed guardianship; 
           (3) inform the respondent of the right to employ and 
        consult with a lawyer at the respondent's own expense and the 
        right to request a court-appointed lawyer; and 
           (4) inform the respondent that all costs and expenses of 
        the proceeding, including respondent's attorneys fees, will be 
        paid from the respondent's estate. 
           (d) In addition to the duties in paragraph (c), the visitor 
        shall make any other investigation the court directs. 
           (e) The visitor shall promptly file a report in writing 
        with the court, which must include: 
           (1) recommendations regarding the appropriateness of 
        guardianship, including whether less restrictive means of 
        intervention are available, the type of guardianship, and, if a 
        limited guardianship, the powers to be granted to the limited 
        guardian; 
           (2) a statement as to whether the respondent approves or 
        disapproves of the proposed guardian, and the powers and duties 
        proposed or the scope of the guardianship; and 
           (3) any other matters the court directs. 
           (f) The county social service agency may create a screening 
        committee to review a petition involving an indigent person.  
        The screening committee must consist of individuals selected by 
        the agency with knowledge of alternatives that are less 
        restrictive than guardianship.  If the agency has created a 
        screening committee, the court shall make its decision after the 
        screening committee has reviewed the petition.  For an indigent 
        person, the court may appoint a guardian under contract with the 
        county to provide these services. 
           Sec. 4.  Minnesota Statutes 2003 Supplement, section 
        524.5-308, is amended to read: 
           524.5-308 [NOTICE.] 
           (a) A copy of the petition and notice of the hearing on a 
        petition for guardianship must be served personally on the 
        respondent pursuant to section 524.5-304, paragraph (c).  The 
        notice must include a statement that the respondent must be 
        physically present unless excused by the court; inform the 
        respondent of the respondent's rights at the hearing; and 
        include a description of the nature, purpose, and consequences 
        of an appointment.  A failure to serve the respondent with a 
        notice substantially complying with this paragraph precludes the 
        court from granting the petition. 
           (b) In a proceeding to establish a guardianship, notice of 
        the hearing shall also be given to the persons listed in the 
        petition.  Failure to give notice under this paragraph does not 
        preclude the appointment of a guardian or the making of a 
        protective order. 
           (c) Notice of the hearing on a petition for an order after 
        appointment of a guardian shall be given to interested persons 
        pursuant to section 524.5-113 and to any other person as ordered 
        by the court, except notice to the ward is not required if the 
        ward has not attained 14 years of age and is not the petitioner. 
           (d) The guardian shall give notice of the filing of the 
        guardian's report, together with a copy of the report, to the 
        ward, the court, and any other person the court directs.  The 
        notice must be sent or delivered within 14 days after the filing 
        of the report. 
           Sec. 5.  Minnesota Statutes 2003 Supplement, section 
        524.5-406, is amended to read: 
           524.5-406 [ORIGINAL PETITION:  PERSONS UNDER DISABILITY; 
        PRELIMINARIES TO HEARING.] 
           (a) Upon the filing of a petition for a conservatorship or 
        other protective order for a respondent for reasons other than 
        being a minor, the court shall set a date for hearing. and the 
        court shall may appoint a visitor.  The duties and reporting 
        requirements of the visitor are limited to the relief requested 
        in the petition.  The visitor must be an individual having 
        training or experience in the type of incapacity alleged. 
           (b) A respondent has the right to be represented by counsel 
        at any proceeding under this article.  The court shall appoint 
        counsel to represent the respondent for the initial proceeding 
        held pursuant to section 524.5-408 if neither the respondent nor 
        others provide counsel, unless in a meeting with a visitor, the 
        proposed respondent specifically waives the right to counsel.  
        Counsel must be appointed immediately after any petition under 
        this part is served pursuant to section 524.5-404.  Counsel has 
        the full right of subpoena.  In all proceedings under this part, 
        counsel shall: 
           (1) consult with the respondent before any hearing; 
           (2) be given adequate time to prepare for all hearings; and 
           (3) continue to represent the respondent throughout any 
        proceedings under section 524.5-408, provided that such 
        appointment shall expire upon the expiration of the appeal time 
        for the order appointing conservator or the order dismissing a 
        petition, or upon such other time or event as the court may 
        direct. 
           The court need not appoint counsel to represent the 
        respondent on a voluntary petition, and the court may remove a 
        court-appointed attorney at any time if the court finds that the 
        respondent has made a knowing and intelligent waiver of the 
        right to counsel or has obtained private counsel. 
           (c) The visitor shall personally serve the notice and 
        petition upon the respondent and shall offer to read the notice 
        and petition to the respondent, and if so requested, the visitor 
        shall read the notice and petition to such person.  The visitor 
        shall also interview the respondent in person, and to the extent 
        that the respondent is able to understand: 
           (1) explain to the respondent the substance of the petition 
        and the nature, purpose, and effect of the proceeding; 
           (2) if the appointment of a conservator is requested, 
        inform the respondent of the general powers and duties of a 
        conservator and determine the respondent's views regarding the 
        proposed conservator, the proposed conservator's powers and 
        duties, and the scope and duration of the proposed 
        conservatorship; 
           (3) inform the respondent of the respondent's rights, 
        including the right to employ and consult with a lawyer at the 
        respondent's own expense, and the right to request a 
        court-appointed lawyer; and 
           (4) inform the respondent that all costs and expenses of 
        the proceeding, including respondent's attorney fees, will be 
        paid from the respondent's estate. 
           (d) In addition to the duties set out in paragraph (c), the 
        visitor shall make any other investigations the court directs. 
           (e) The visitor shall promptly file a report with the court 
        which must include: 
           (1) recommendations regarding the appropriateness of a 
        conservatorship, including whether less restrictive means of 
        intervention are available, the type of conservatorship, and, if 
        a limited conservatorship, the powers and duties to be granted 
        the limited conservator, and the assets over which the 
        conservator should be granted authority; 
           (2) a statement as to whether the respondent approves or 
        disapproves of the proposed conservator, and the powers and 
        duties proposed or the scope of the conservatorship; and 
           (3) any other matters the court directs. 
           (f) While a petition to establish a conservatorship or for 
        another protective order is pending, after preliminary hearing 
        and without notice to others, the court may make orders to 
        preserve and apply the property of the respondent as may be 
        required for the support of the respondent or individuals who 
        are in fact dependent upon the respondent, and may appoint an 
        agent to assist in that task. 
           Sec. 6.  Minnesota Statutes 2003 Supplement, section 
        524.5-408, is amended to read: 
           524.5-408 [ORIGINAL PETITION:  PROCEDURE AT HEARING.] 
           (a) Unless excused by the court for good cause, the 
        petitioner and a the proposed conservator shall attend the 
        hearing.  The respondent shall attend and participate in the 
        hearing unless excused by the court for good cause.  The 
        petitioner and respondent may present evidence and subpoena 
        witnesses and documents, examine witnesses, including the 
        visitor, and otherwise participate in the hearing.  The hearing 
        may be held in a location convenient to the respondent and may 
        be closed upon request of the respondent and a showing of good 
        cause. 
           (b) Any person may request permission to participate in the 
        proceeding.  The court may grant the request, with or without 
        hearing, upon a showing of good cause and after determining that 
        the best interest of the respondent will be served.  The court 
        may attach appropriate conditions to the participation. 
           Sec. 7.  Minnesota Statutes 2003 Supplement, section 
        524.5-417, is amended to read: 
           524.5-417 [GENERAL POWERS AND DUTIES OF CONSERVATOR.] 
           (a) A conservator shall be subject to the control and 
        direction of the court at all times and in all things. 
           (b) The court shall grant to a conservator only those 
        powers necessary to provide for the demonstrated needs of the 
        protected person. 
           (c) The court may appoint a conservator of the estate if it 
        determines that all the powers and duties listed in this section 
        are needed to provide for the needs of the protected person.  
        The court may also appoint a conservator if it determines that a 
        conservator is necessary to provide for the needs of the 
        protected person through the exercise of some, but not all, of 
        the powers and duties listed in this section.  The duties and 
        powers of a conservator include, but are not limited to: 
           (1) the duty to pay the reasonable charges for the support, 
        maintenance, and education of the protected person in a manner 
        suitable to the protected person's station in life and the value 
        of the estate.  Nothing herein contained shall release parents 
        from obligations imposed by law for the support, maintenance, 
        and education of their children.  The conservator has no duty to 
        pay for these requirements out of personal funds.  Wherever 
        possible and appropriate, the conservator should meet these 
        requirements through governmental benefits or services to which 
        the protected person is entitled, rather than from the protected 
        person's estate.  Failure to satisfy the needs and requirements 
        of this section shall be grounds for removal, but the 
        conservator shall have no personal or monetary liability; 
           (2) the duty to pay out of the protected person's estate 
        all lawful debts of the protected person and the reasonable 
        charges incurred for the support, maintenance, and education of 
        the protected person's spouse and dependent children and, upon 
        order of the court, pay such sum as the court may fix as 
        reasonable for the support of any person unable to earn a 
        livelihood who is legally entitled to support from the protected 
        person; 
           (3) the duty to possess and manage the estate, collect all 
        debts and claims in favor of the protected person, or, with the 
        approval of the court, compromise them, institute suit on behalf 
        of the protected person and represent the protected person in 
        any court proceedings, and invest all funds not currently needed 
        for the debts and charges named in clauses (1) and (2) and the 
        management of the estate, in accordance with the provisions of 
        sections 48A.07, subdivision 6, and 501B.151, or as otherwise 
        ordered by the court.  The standard of a fiduciary shall be 
        applicable to all investments by a conservator.  A conservator 
        shall also have the power to purchase certain contracts of 
        insurance as provided in section 50.14, subdivision 14, clause 
        (b); 
           (4) where a protected person has inherited an undivided 
        interest in real estate, the court, on a showing that it is for 
        the best interest of the protected person, may authorize an 
        exchange or sale of the protected person's interest or a 
        purchase by the protected person of any interest other heirs may 
        have in the real estate, subject to the procedures and notice 
        requirements of section 524.5-418; 
           (5) the power to approve or withhold approval of any 
        contract, except for necessities, which the protected person may 
        make or wish to make; and 
           (6) the power to apply on behalf of the protected person 
        for any assistance, services, or benefits available to the 
        protected person through any unit of government. 
           (d) The conservator shall have the power to revoke, 
        suspend, or terminate all or any part of a durable power of 
        attorney of which the protected person is the principal with the 
        same power the principal would have if the principal were not 
        incapacitated.  If a durable power of attorney is in effect, a 
        decision of the conservator takes precedence over that of an 
        attorney-in-fact. 
           (e) Transaction set aside.  If a protected person has made 
        a financial transaction or gift or entered into a contract 
        during the two-year period before establishment of the 
        conservatorship, the conservator may petition for court review 
        of the transaction, gift, or contract.  If the court finds that 
        the protected person was incapacitated or subject to duress, 
        coercion, or undue influence when the transaction, gift, or 
        contract was made, the court may declare the transaction, gift, 
        or contract void except as against a bona fide transferee for 
        value and order reimbursement or other appropriate relief.  This 
        paragraph does not affect any other right or remedy that may be 
        available to the protected person with respect to the 
        transaction, gift, or contract. 
           (f) After the filing of the petition, a certificate of the 
        district court certified to that fact may be filed for record 
        with the Minnesota secretary of state in the same manner as 
        provided in section 336.9-501.  The certificate shall state that 
        a petition is pending and the name and address of the person for 
        whom a conservator is sought.  If a conservator is appointed on 
        the petition, and if the conservatorship order removes or 
        restricts the right of the protected person to transfer property 
        or to contract, then all contracts except for necessaries, and 
        all transfers of personal property, tangible or intangible, 
        including, but not limited to, cash or securities transfers at 
        banks, brokerage houses, or other financial institutions, or 
        transfers of cash or securities, made by the protected person 
        after the filing and before the termination of the 
        conservatorship shall be voidable. 
           Sec. 8.  Minnesota Statutes 2002, section 525.71, is 
        amended to read: 
           525.71 [APPEALABLE ORDERS.] 
           (a) Appeals to the Court of Appeals may be taken from any 
        of the following orders, judgments, and decrees issued by a 
        judge of the court under this chapter or chapter 524:  
           (1) an order admitting, or refusing to admit, a will to 
        probate; 
           (2) an order appointing, or refusing to appoint, or 
        removing, or refusing to remove, a representative other than a 
        special administrator or special guardian, temporary or 
        emergency guardian, agent, or conservator; 
           (3) an order authorizing, or refusing to authorize, the 
        sale, mortgage, or lease of real estate, or confirming, or 
        refusing to confirm, the sale or lease of real estate; 
           (4) an order directing, or refusing to direct, a conveyance 
        or lease of real estate under contract; 
           (5) an order permitting, or refusing to permit, the filing 
        of a claim, or allowing or disallowing a claim or counterclaim, 
        in whole or in part, when the amount in controversy exceeds 
        $100; 
           (6) an order setting apart, or refusing to set apart, 
        property, or making, or refusing to make, an allowance for the 
        spouse or children; 
           (7) an order determining, or refusing to determine, venue; 
        an order transferring, or refusing to transfer, venue; 
           (8) an order directing, or refusing to direct, the payment 
        of a bequest or distributive share when the amount in 
        controversy exceeds $100; 
           (9) an order allowing, or refusing to allow, an account of 
        a representative or any part of it when the amount in 
        controversy exceeds $100; 
           (10) an order adjudging a person in contempt; 
           (11) an order vacating, or refusing to vacate, a previous 
        appealable order, judgment, or decree alleged to have been 
        procured by fraud or misrepresentation, or through surprise or 
        excusable inadvertence or neglect; 
           (12) a judgment or decree of partial or final distribution 
        or an order determining or confirming distribution or any order 
        of general protection; 
           (13) an order entered pursuant to section 576.142; 
           (14) an order granting or denying restoration to capacity; 
           (15) an order made directing, or refusing to direct, the 
        payment of representative's fees or attorneys' fees, and in such 
        case the representative and the attorney shall each be deemed an 
        aggrieved party and entitled to appeal; 
           (16) an order, judgment, or decree relating to or affecting 
        estate taxes or refusing to amend, modify, or vacate such an 
        order, judgment, or decree; and 
           (17) an order extending the time for the settlement of the 
        estate beyond five years from the date of the appointment of the 
        representative.  
           (b) Appeals to the Court of Appeals may also be taken from 
        any other properly appealable order pursuant to the Rules of 
        Civil Appellate Procedure. 
           (c) An order appointing, refusing to appoint, removing, or 
        refusing to remove a temporary or emergency guardian under 
        sections 524.5-204, paragraphs (b) and (c), 524.5-311, and 
        524.5-312, or temporary or emergency conservator or agent under 
        sections 524.5-406, paragraph (f), and 524.5-412, or a special 
        administrator under section 524.3-614, is not an appealable 
        order under this section or the Rules of Civil Appellate 
        Procedure. 

                                   ARTICLE 3 
                             TECHNICAL CORRECTIONS 
           Section 1.  Minnesota Statutes 2002, section 144.343, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOTIFICATION CONCERNING ABORTION.] 
        Notwithstanding the provisions of section 13.02, subdivision 8, 
        no abortion operation shall be performed upon an unemancipated 
        minor or upon a woman for whom a guardian or conservator has 
        been appointed pursuant to sections 525.54 524.5-101 to 525.551 
        524.5-502 because of a finding of incompetency incapacity, until 
        at least 48 hours after written notice of the pending operation 
        has been delivered in the manner specified in subdivisions 2 to 
        4.  
           (a) The notice shall be addressed to the parent at the 
        usual place of abode of the parent and delivered personally to 
        the parent by the physician or an agent.  
           (b) In lieu of the delivery required by clause (a), notice 
        shall be made by certified mail addressed to the parent at the 
        usual place of abode of the parent with return receipt requested 
        and restricted delivery to the addressee which means postal 
        employee can only deliver the mail to the authorized addressee.  
        Time of delivery shall be deemed to occur at 12 o'clock noon on 
        the next day on which regular mail delivery takes place, 
        subsequent to mailing.  
           Sec. 2.  Minnesota Statutes 2002, section 145B.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [GUARDIAN OR CONSERVATOR.] Except as otherwise 
        provided in the living will, designation of a proxy is 
        considered a nomination of a guardian or conservator of the 
        person for purposes of section 525.544 sections 524.5-101 to 
        524.5-502. 
           Sec. 3.  Minnesota Statutes 2002, section 145C.05, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PROVISIONS THAT MAY BE INCLUDED.] (a) A health 
        care directive may include provisions consistent with this 
        chapter, including, but not limited to: 
           (1) the designation of one or more alternate health care 
        agents to act if the named health care agent is not reasonably 
        available to serve; 
           (2) directions to joint health care agents regarding the 
        process or standards by which the health care agents are to 
        reach a health care decision for the principal, and a statement 
        whether joint health care agents may act independently of one 
        another; 
           (3) limitations, if any, on the right of the health care 
        agent or any alternate health care agents to receive, review, 
        obtain copies of, and consent to the disclosure of the 
        principal's medical records; 
           (4) limitations, if any, on the nomination of the health 
        care agent as guardian or conservator of the person for purposes 
        of section 525.544 sections 524.5-202, 524.5-211, 524.5-302, and 
        524.5-303; 
           (5) a document of gift for the purpose of making an 
        anatomical gift, as set forth in sections 525.921 to 525.9224, 
        or an amendment to, revocation of, or refusal to make an 
        anatomical gift; 
           (6) a declaration regarding intrusive mental health 
        treatment under section 253B.03, subdivision 6d, or a statement 
        that the health care agent is authorized to give consent for the 
        principal under section 253B.04, subdivision 1a; 
           (7) a funeral directive as provided in section 149A.80, 
        subdivision 2; 
           (8) limitations, if any, to the effect of dissolution or 
        annulment of marriage or termination of domestic partnership on 
        the appointment of a health care agent under section 145C.09, 
        subdivision 2; 
           (9) specific reasons why a principal wants a health care 
        provider or an employee of a health care provider attending the 
        principal to be eligible to act as the principal's health care 
        agent; 
           (10) health care instructions by a woman of child bearing 
        age regarding how she would like her pregnancy, if any, to 
        affect health care decisions made on her behalf; and 
           (11) health care instructions regarding artificially 
        administered nutrition or hydration. 
           (b) A health care directive may include a statement of the 
        circumstances under which the directive becomes effective other 
        than upon the judgment of the principal's attending physician in 
        the following situations: 
           (1) a principal who in good faith generally selects and 
        depends upon spiritual means or prayer for the treatment or care 
        of disease or remedial care and does not have an attending 
        physician, may include a statement appointing an individual who 
        may determine the principal's decision-making capacity; and 
           (2) a principal who in good faith does not generally select 
        a physician or a health care facility for the principal's health 
        care needs may include a statement appointing an individual who 
        may determine the principal's decision-making capacity, provided 
        that if the need to determine the principal's capacity arises 
        when the principal is receiving care under the direction of an 
        attending physician in a health care facility, the determination 
        must be made by an attending physician after consultation with 
        the appointed individual. 
           If a person appointed under clause (1) or (2) is not 
        reasonably available and the principal is receiving care under 
        the direction of an attending physician in a health care 
        facility, an attending physician shall determine the principal's 
        decision-making capacity. 
           (c) A health care directive may authorize a health care 
        agent to make health care decisions for a principal even though 
        the principal retains decision-making capacity. 
           Sec. 4.  Minnesota Statutes 2002, section 145C.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [HEALTH CARE AGENT AS GUARDIAN.] Unless the 
        principal has otherwise specified in the health care directive, 
        the appointment of the health care agent in a health care 
        directive is considered a nomination of a guardian or 
        conservator of the person for purposes of section 525.544 
        sections 524.5-101 to 524.5-502. 
           Sec. 5.  Minnesota Statutes 2002, section 145C.07, 
        subdivision 4, is amended to read: 
           Subd. 4.  [INCONSISTENCIES AMONG DOCUMENTS.] In the event 
        of inconsistency between the appointment of a proxy under 
        chapter 145B or section 253B.03, subdivision 6d, or of a health 
        care agent under this chapter, the most recent appointment takes 
        precedence.  In the event of other inconsistencies among 
        documents executed under this chapter, under chapter 145B, or 
        under section sections 253B.03, subdivision 6d, or 525.544 
        524.5-101 to 524.5-502, or other legally sufficient documents, 
        the provisions of the most recently executed document take 
        precedence only to the extent of the inconsistency. 
           Sec. 6.  Minnesota Statutes 2002, section 147.091, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AUTOMATIC SUSPENSION.] (a) A license to practice 
        medicine is automatically suspended if (1) a guardian of the 
        person of a licensee is appointed by order of a court pursuant 
        to sections 525.54 524.5-101 to 525.61 524.5-502, for reasons 
        other than the minority of the licensee; or (2) the licensee is 
        committed by order of a court pursuant to chapter 253B.  The 
        license remains suspended until the licensee is restored to 
        capacity by a court and, upon petition by the licensee, the 
        suspension is terminated by the board after a hearing.  
           (b) Upon notice to the board of a judgment of, or a plea of 
        guilty to, a felony reasonably related to the practice of 
        patient care, the credentials of the regulated person shall be 
        automatically suspended by the board.  The credentials shall 
        remain suspended until, upon petition by the regulated person 
        and after a hearing, the suspension is terminated by the board.  
        The board shall indefinitely suspend or revoke the credentials 
        of the regulated person if, after a hearing, the board finds 
        that the felonious conduct would cause a serious risk of harm to 
        the public. 
           (c) For credentials that have been suspended or revoked 
        pursuant to paragraphs (a) and (b), the regulated person may be 
        reinstated to practice, either with or without restrictions, by 
        demonstrating clear and convincing evidence of rehabilitation, 
        as provided in section 364.03.  If the regulated person's 
        conviction is subsequently overturned by court decision, the 
        board shall conduct a hearing to review the suspension within 30 
        days after receipt of the court decision.  The regulated person 
        is not required to prove rehabilitation if the subsequent court 
        decision overturns previous court findings of public risk. 
           (d) The board may, upon majority vote of a quorum of its 
        members, suspend the credentials of a regulated person without a 
        hearing if the regulated person fails to maintain a current name 
        and address with the board, as described in paragraph (e), while 
        the regulated person is:  (1) under board investigation, and a 
        notice of conference has been issued by the board; (2) party to 
        a contested case with the board; (3) party to an agreement for 
        corrective action with the board; or (4) under a board order for 
        disciplinary action.  The suspension shall remain in effect 
        until lifted by the board pursuant to the board's receipt of a 
        petition from the regulated person, along with the regulated 
        person's current name and address. 
           (e) A person regulated by the board shall maintain a 
        current name and address with the board and shall notify the 
        board in writing within 30 days of any change in name or 
        address.  If a name change only is requested, the regulated 
        person must request revised credentials and return the current 
        credentials to the board.  The board may require the regulated 
        person to substantiate the name change by submitting official 
        documentation from a court of law or agency authorized under law 
        to receive and officially record a name change.  If an address 
        change only is requested, no request for revised credentials is 
        required.  If the regulated person's current credentials have 
        been lost, stolen, or destroyed, the person shall provide a 
        written explanation to the board. 
           Sec. 7.  Minnesota Statutes 2002, section 147A.13, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EFFECTIVE DATES, AUTOMATIC SUSPENSION.] A 
        suspension, revocation, condition, limitation, qualification, or 
        restriction of a registration shall be in effect pending 
        determination of an appeal unless the court, upon petition and 
        for good cause shown, orders otherwise. 
           A physician assistant registration is automatically 
        suspended if: 
           (1) a guardian of the person of a registrant is appointed 
        by order of a court pursuant to sections 525.54 524.5-101 to 
        525.61 524.5-502, for reasons other than the minority of the 
        registrant; or 
           (2) the registrant is committed by order of a court 
        pursuant to chapter 253B.  The registration remains suspended 
        until the registrant is restored to capacity by a court and, 
        upon petition by the registrant, the suspension is terminated by 
        the board after a hearing. 
           Sec. 8.  Minnesota Statutes 2002, section 148.10, 
        subdivision 6, is amended to read: 
           Subd. 6.  [EFFECT OF APPEAL.] A suspension, revocation, 
        condition, limitation, qualification, or restriction of a 
        license shall be in effect pending determination of an appeal 
        unless the court, upon petition and for good cause shown, shall 
        otherwise order. 
           A license to practice chiropractic is automatically 
        suspended if (1) a guardian of the person of a licensee is 
        appointed by order of a court under sections 525.54 524.5-101 to 
        525.61 524.5-502, for reasons other than the minority of the 
        licensee; or (2) the licensee is committed by order of a court 
        under chapter 253B.  The license remains suspended until the 
        licensee is restored to capacity by a court and, upon petition 
        by the licensee, the suspension is terminated by the board after 
        a hearing.  
           Sec. 9.  Minnesota Statutes 2002, section 148.75, is 
        amended to read: 
           148.75 [LICENSES; DENIAL, SUSPENSION, REVOCATION.] 
           (a) The state Board of Physical Therapy may refuse to grant 
        a license to any physical therapist, or may suspend or revoke 
        the license of any physical therapist for any of the following 
        grounds:  
           (1) using drugs or intoxicating liquors to an extent which 
        affects professional competence; 
           (2) conviction of a felony; 
           (3) conviction for violating any state or federal narcotic 
        law; 
           (4) obtaining a license or attempting to obtain a license 
        by fraud or deception; 
           (5) conduct unbecoming a person licensed as a physical 
        therapist or conduct detrimental to the best interests of the 
        public; 
           (6) gross negligence in the practice of physical therapy as 
        a physical therapist; 
           (7) treating human ailments by physical therapy after an 
        initial 30-day period of patient admittance to treatment has 
        lapsed, except by the order or referral of a person licensed in 
        this state in the practice of medicine as defined in section 
        147.081, the practice of chiropractic as defined in section 
        148.01, the practice of podiatry as defined in section 153.01, 
        or the practice of dentistry as defined in section 150A.05 and 
        whose license is in good standing; or when a previous diagnosis 
        exists indicating an ongoing condition warranting physical 
        therapy treatment, subject to periodic review defined by board 
        of physical therapy rule; 
           (8) treating human ailments, without referral, by physical 
        therapy treatment without first having practiced one year under 
        a physician's orders as verified by the board's records; 
           (9) failing to consult with the patient's health care 
        provider who prescribed the physical therapy treatment if the 
        treatment is altered by the physical therapist from the original 
        written order.  The provision does not include written orders to 
        "evaluate and treat"; 
           (10) treating human ailments other than by physical therapy 
        unless duly licensed or registered to do so under the laws of 
        this state; 
           (11) inappropriate delegation to a physical therapist 
        assistant or inappropriate task assignment to an aide or 
        inadequate supervision of either level of supportive personnel; 
           (12) practicing as a physical therapist performing medical 
        diagnosis, the practice of medicine as defined in section 
        147.081, or the practice of chiropractic as defined in section 
        148.01; 
           (13) failing to comply with a reasonable request to obtain 
        appropriate clearance for mental or physical conditions that 
        would interfere with the ability to practice physical therapy, 
        and that may be potentially harmful to patients; 
           (14) dividing fees with, or paying or promising to pay a 
        commission or part of the fee to, any person who contacts the 
        physical therapist for consultation or sends patients to the 
        physical therapist for treatment; 
           (15) engaging in an incentive payment arrangement, other 
        than that prohibited by clause (14), that tends to promote 
        physical therapy overuse, that allows the referring person or 
        person who controls the availability of physical therapy 
        services to a client to profit unreasonably as a result of 
        patient treatment; 
           (16) practicing physical therapy and failing to refer to a 
        licensed health care professional a patient whose medical 
        condition at the time of evaluation has been determined by the 
        physical therapist to be beyond the scope of practice of a 
        physical therapist; and 
           (17) failing to report to the board other licensed physical 
        therapists who violate this section. 
           (b) A license to practice as a physical therapist is 
        suspended if (1) a guardian of the person of the physical 
        therapist is appointed by order of a court pursuant to sections 
        525.54 524.5-101 to 525.61 524.5-502, for reasons other than the 
        minority of the physical therapist; or (2) the physical 
        therapist is committed by order of a court pursuant to chapter 
        253B.  The license remains suspended until the physical 
        therapist is restored to capacity by a court and, upon petition 
        by the physical therapist, the suspension is terminated by the 
        Board of Physical Therapy after a hearing.  
           Sec. 10.  Minnesota Statutes 2002, section 153.22, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AUTOMATIC SUSPENSION.] A license to practice 
        podiatric medicine is automatically suspended if (1) a guardian 
        of the person of a licensee is appointed by order of a court 
        under sections 525.54 524.5-101 to 525.61 524.5-502, for reasons 
        other than the minority of the licensee; or (2) the licensee is 
        committed by order of a court under chapter 253B.  The license 
        remains suspended until the licensee is restored to capacity by 
        a court and, upon petition by the licensee, the suspension is 
        terminated by the board after a hearing.  
           Sec. 11.  Minnesota Statutes 2002, section 156.122, is 
        amended to read: 
           156.122 [COURTS TO REPORT.] 
           The court administrator shall report to the board a 
        judgment or finding by a court that a person regulated by the 
        board: 
           (1) is a person who is mentally ill, chemically dependent, 
        mentally ill and dangerous to the public, or is a sexual 
        psychopathic personality or sexually dangerous person under 
        chapter 253B or other applicable law; 
           (2) is guilty of a felony or gross misdemeanor; violation 
        of a law involving the use, possession, or sale of a controlled 
        substance; or operating a motor vehicle under the influence of 
        alcohol or a controlled substance; or 
           (3) is in need of a guardian of the person under sections 
        525.54 524.5-101 to 525.61 524.5-502. 
           Sec. 12.  Minnesota Statutes 2002, section 176.092, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WHEN REQUIRED.] An injured employee or a 
        dependent under section 176.111 who is a minor or an 
        incapacitated person as that term is defined in section 525.54 
        524.5-102, subdivision 2 or 3 6, shall have a guardian or 
        conservator to represent the interests of the employee or 
        dependent in obtaining compensation according to the provisions 
        of this chapter.  This section applies if the employee receives 
        or is eligible for permanent total disability benefits, 
        supplementary benefits, or permanent partial disability benefits 
        totaling more than $3,000 or a dependent receives or is eligible 
        for dependency benefits, or if the employee or dependent 
        receives or is offered a lump sum that exceeds five times the 
        statewide average weekly wage. 
           Sec. 13.  Minnesota Statutes 2002, section 196.051, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BONDING.] Notwithstanding section 525.551 or any 
        other law, the commissioner is not required to file a bond when 
        acting as guardian pursuant to authority granted by this section.
           Sec. 14.  Minnesota Statutes 2002, section 252A.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [POLICY.] (a) It is the policy of the state 
        of Minnesota to provide a coordinated approach to the 
        supervision, protection, and habilitation of its adult mentally 
        retarded citizens.  In furtherance of this policy, sections 
        252A.01 to 252A.21 are enacted to authorize the commissioner of 
        human services to: 
           (1) supervise those adult mentally retarded citizens who 
        are unable to fully provide for their own needs and for whom no 
        qualified person is willing and able to seek private 
        guardianship or conservatorship under sections 525.539 524.5-101 
        to 525.705 524.5-502; and 
           (2) to protect adult mentally retarded persons from 
        violation of their human and civil rights by assuring that they 
        receive the full range of needed social, financial, residential, 
        and habilitative services to which they are lawfully entitled.  
           (b) Public guardianship or conservatorship is the most 
        restrictive form of guardianship or conservatorship and should 
        be imposed only when no other acceptable alternative is 
        available.  
           Sec. 15.  Minnesota Statutes 2002, section 252A.03, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STANDARD FOR ACCEPTANCE.] The commissioner shall 
        accept the nomination if the comprehensive evaluation concludes 
        that: 
           (1) the person alleged to have mental retardation is, in 
        fact, mentally retarded; 
           (2) the person is in need of the supervision and protection 
        of a conservator or guardian; and 
           (3) no qualified person is willing to assume private 
        guardianship or conservatorship under sections 525.539 524.5-101 
        to 525.705 524.5-502. 
           Sec. 16.  Minnesota Statutes 2002, section 252A.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTENTS.] The petition shall set forth: 
           (1) the name and address of the petitioner, and, in the 
        case of a petition brought by a person other than the 
        commissioner, whether the petitioner is a parent, spouse, or 
        relative of the proposed ward; 
           (2) whether the commissioner has accepted a nomination to 
        act as public conservator or public guardian; 
           (3) the name, address, and date of birth of the proposed 
        ward; 
           (4) the names and addresses of the nearest relatives and 
        spouse, if any, of the proposed ward; 
           (5) the probable value and general character of the 
        proposed ward's real and personal property and the probable 
        amount of the proposed ward's debts; 
           (6) the facts supporting the establishment of public 
        conservatorship or guardianship, including that no family member 
        or other qualified individual is willing to assume private 
        guardianship or conservatorship responsibilities under sections 
        525.539 524.5-101 to 525.705 524.5-502; and 
           (7) if conservatorship is requested, the powers the 
        petitioner believes are necessary to protect and supervise the 
        proposed conservatee. 
           Sec. 17.  Minnesota Statutes 2002, section 252A.081, is 
        amended to read: 
           252A.081 [NOTICE OF HEARING.] 
           Subdivision 1.  [GENERAL.] Except as otherwise provided in 
        this section, section 525.55 applies sections 524.5-113, 
        524.5-205, and 524.5-304 apply to a notice of hearing for public 
        guardianship. 
           Subd. 2.  [SERVICE OF NOTICE.] Service of notice on the 
        ward or proposed ward must be made by a nonuniformed person.  To 
        the extent possible, the process server or visitor shall explain 
        the document's meaning to the proposed ward.  In addition to the 
        persons required to be served under section 525.55, subdivision 
        1 sections 524.5-113, 524.5-205, and 524.5-304, the mailed 
        notice of the hearing must be served on the commissioner, the 
        local agency, and the county attorney.  
           Subd. 3.  [ATTORNEY.] In place of the notice of attorney 
        provisions in section 525.55, subdivision 2 sections 524.5-205 
        and 524.5-304, the notice must state that the court will appoint 
        an attorney for the proposed ward unless an attorney is provided 
        by other persons. 
           Subd. 4.  [SERVICE OF PETITION ON COMMISSIONER.] When a 
        petition has been filed by a person other than the commissioner, 
        the court shall promptly forward a copy of the petition and any 
        other documents filed with or issued by the court to the 
        commissioner. 
           Subd. 5.  [DEFECTIVE NOTICE OF SERVICE.] A defect in the 
        service of notice or process, other than personal service upon 
        the proposed ward or conservatee or service upon the 
        commissioner and local agency within the time allowed and the 
        form prescribed in this section and section 525.55 sections 
        524.5-113, 524.5-205, and 524.5-304, does not invalidate any 
        public guardianship or conservatorship proceedings. 
           Sec. 18.  Minnesota Statutes 2002, section 252A.111, is 
        amended to read: 
           252A.111 [POWERS AND DUTIES OF PUBLIC GUARDIAN OR 
        CONSERVATOR.] 
           Subdivision 1.  [GENERAL.] Except as otherwise provided in 
        this section, section 525.56, subdivisions 1 to 3 sections 
        524.5-207 and 524.5-313, apply to the powers and duties of a 
        public guardian or conservator. 
           Subd. 2.  [ADDITIONAL POWERS.] In addition to the powers 
        contained in section 525.56, subdivision 3 sections 524.5-207 
        and 524.5-313, the powers of a public guardian or those that the 
        court may grant to a public conservator include: 
           (1) the power to permit or withhold permission for the ward 
        to marry; 
           (2) the power to begin legal action or defend against legal 
        action in the name of the ward; and 
           (3) the power to consent to the adoption of the ward as 
        provided in section 259.24. 
           Subd. 4.  [APPOINTMENT OF GUARDIAN OR CONSERVATOR OF THE 
        ESTATE.] If the ward has a personal estate beyond that which is 
        necessary for the ward's personal and immediate needs, the 
        commissioner shall determine whether a guardian of the estate 
        conservator should be appointed.  The commissioner shall consult 
        with the parents, spouse, or nearest relative of the ward.  The 
        commissioner may petition the court for the appointment of a 
        private guardian or conservator of the estate of the ward.  The 
        commissioner cannot act as guardian or conservator of the estate 
        for public wards or public conservatees protected persons. 
           Subd. 5.  [LOCAL AGENCIES.] The commissioner may carry out 
        the powers and duties prescribed by this chapter directly or 
        through local agencies. 
           Subd. 6.  [SPECIAL DUTIES.] In exercising powers and duties 
        under this chapter, the commissioner shall: 
           (1) maintain close contact with the ward, visiting at least 
        twice a year; 
           (2) protect and exercise the legal rights of the ward; 
           (3) take actions and make decisions on behalf of the ward 
        that encourage and allow the maximum level of independent 
        functioning in a manner least restrictive of the ward's personal 
        freedom consistent with the need for supervision and protection; 
        and 
           (4) permit and encourage maximum self-reliance on the part 
        of the ward and permit and encourage input by the nearest 
        relative of the ward in planning and decision making on behalf 
        of the ward. 
           Sec. 19.  Minnesota Statutes 2002, section 252A.171, is 
        amended to read: 
           252A.171 [TRANSFER OF VENUE.] 
           Section 525.57 524.5-108 applies to the transfer of venue 
        in proceedings under this chapter.  Notice of a transfer of 
        venue petition must be given to the persons and in the manner 
        required by section 252A.081.  
           Sec. 20.  Minnesota Statutes 2002, section 252A.19, is 
        amended to read: 
           252A.19 [MODIFICATION OF CONSERVATORSHIP; RESTORATION TO 
        LEGAL CAPACITY.] 
           Subdivision 1.  [COMMISSIONER TO SERVE.] The commissioner 
        shall serve as public guardian or conservator with all the 
        powers awarded pursuant to the guardianship or conservatorship, 
        until termination or modification by the court. 
           Subd. 2.  [PETITION.] The commissioner, ward, or any 
        interested person may petition the appointing court or the court 
        to which venue has been transferred for an order to remove the 
        guardianship or to limit or expand the powers of the 
        conservatorship guardianship or to appoint a guardian or 
        conservator under sections 525.539 524.5-101 to 525.705 
        524.5-502 or to restore the ward or conservatee protected person 
        to full legal capacity or to review de novo any decision made by 
        the public guardian or public conservator for or on behalf of a 
        ward or conservatee protected person or for any other order as 
        the court may deem just and equitable.  Section 525.61, 
        subdivision 3, does not apply to a petition to remove a public 
        guardian. 
           Subd. 3.  [NOTICE OF TIME AND PLACE.] Upon the filing of 
        the petition the court shall fix the time and place for the 
        hearing.  Notice of the filing of the petition and of the 
        hearing shall be provided in the manner set forth in section 
        252A.081. 
           Subd. 4.  [COMPREHENSIVE EVALUATION.] The commissioner 
        shall, at the court's request, arrange for the preparation of a 
        comprehensive evaluation of the ward or conservatee protected 
        person.  
           Subd. 5.  [COURT ORDER.] Upon proof of the allegations of 
        the petition the court shall enter an order removing the 
        guardianship or limiting or expanding the powers of the 
        conservatorship guardianship or restoring the ward or 
        conservatee protected person to full legal capacity or may enter 
        such other order as the court may deem just and equitable.  
           Subd. 6.  [COUNTY ATTORNEY PARTICIPATION.] The county 
        attorney may attend the hearing and may oppose the petition in 
        the court and in the appellate courts if the county attorney 
        deems it for the best interest of the public. 
           Subd. 7.  [ATTORNEY GENERAL'S ROLE; COMMISSIONER'S ROLE.] 
        The attorney general may appear and represent the commissioner 
        in such proceedings.  The commissioner shall support or oppose 
        the petition if the commissioner deems such action necessary for 
        the protection and supervision of the ward or conservatee 
        protected person.  
           Subd. 8.  [COURT APPOINTED COUNSEL.] In all such 
        proceedings, the conservatee protected person or ward shall be 
        afforded an opportunity to be represented by counsel, and if 
        neither the conservatee protected person or ward nor others 
        provide counsel the court shall appoint counsel to represent the 
        conservatee protected person or ward.  
           Subd. 9.  [COSTS FOR PRIVATE GUARDIANSHIP.] In proceedings 
        where private guardianship or conservatorship is being sought 
        under sections 525.539 524.5-101 to 525.705 524.5-502, costs are 
        reimbursable under section 525.703, subdivision 3, paragraph (b) 
        524.5-502. 
           Sec. 21.  Minnesota Statutes 2002, section 253B.03, 
        subdivision 4a, is amended to read: 
           Subd. 4a.  [DISCLOSURE OF PATIENT'S ADMISSION.] Upon 
        admission to a facility where federal law prohibits unauthorized 
        disclosure of patient or resident identifying information to 
        callers and visitors, the patient or resident, or the legal 
        guardian or conservator of the patient or resident, shall be 
        given the opportunity to authorize disclosure of the patient's 
        or resident's presence in the facility to callers and visitors 
        who may seek to communicate with the patient or resident.  To 
        the extent possible, the legal guardian or conservator of a 
        patient or resident shall consider the opinions of the patient 
        or resident regarding the disclosure of the patient's or 
        resident's presence in the facility. 
           Sec. 22.  Minnesota Statutes 2002, section 253B.03, 
        subdivision 6, is amended to read: 
           Subd. 6.  [CONSENT FOR MEDICAL PROCEDURE.] A patient has 
        the right to prior consent to any medical or surgical treatment, 
        other than treatment for chemical dependency or nonintrusive 
        treatment for mental illness.  
           The following procedures shall be used to obtain consent 
        for any treatment necessary to preserve the life or health of 
        any committed patient:  
           (a) The written, informed consent of a competent adult 
        patient for the treatment is sufficient.  
           (b) If the patient is subject to guardianship or 
        conservatorship which includes the provision of medical care, 
        the written, informed consent of the guardian or conservator for 
        the treatment is sufficient.  
           (c) If the head of the treatment facility determines that 
        the patient is not competent to consent to the treatment and the 
        patient has not been adjudicated incompetent, written, informed 
        consent for the surgery or medical treatment shall be obtained 
        from the nearest proper relative.  For this purpose, the 
        following persons are proper relatives, in the order listed:  
        the patient's spouse, parent, adult child, or adult sibling.  If 
        the nearest proper relatives cannot be located, refuse to 
        consent to the procedure, or are unable to consent, the head of 
        the treatment facility or an interested person may petition the 
        committing court for approval for the treatment or may petition 
        a court of competent jurisdiction for the appointment of a 
        guardian or conservator.  The determination that the patient is 
        not competent, and the reasons for the determination, shall be 
        documented in the patient's clinical record.  
           (d) Consent to treatment of any minor patient shall be 
        secured in accordance with sections 144.341 to 144.346.  A minor 
        16 years of age or older may consent to hospitalization, routine 
        diagnostic evaluation, and emergency or short-term acute care.  
           (e) In the case of an emergency when the persons ordinarily 
        qualified to give consent cannot be located, the head of the 
        treatment facility may give consent.  
           No person who consents to treatment pursuant to the 
        provisions of this subdivision shall be civilly or criminally 
        liable for the performance or the manner of performing the 
        treatment.  No person shall be liable for performing treatment 
        without consent if written, informed consent was given pursuant 
        to this subdivision.  This provision shall not affect any other 
        liability which may result from the manner in which the 
        treatment is performed.  
           Sec. 23.  Minnesota Statutes 2002, section 253B.03, 
        subdivision 6a, is amended to read: 
           Subd. 6a.  [CONSENT FOR TREATMENT FOR MENTAL RETARDATION.] 
        A patient with mental retardation, or the patient's guardian or 
        conservator, has the right to give or withhold consent before: 
           (1) the implementation of any aversive or deprivation 
        procedure except for emergency procedures permitted in rules of 
        the commissioner adopted under section 245.825; or 
           (2) the administration of psychotropic medication.  
           Sec. 24.  Minnesota Statutes 2002, section 253B.03, 
        subdivision 6d, is amended to read: 
           Subd. 6d.  [ADULT MENTAL HEALTH TREATMENT.] (a) A competent 
        adult may make a declaration of preferences or instructions 
        regarding intrusive mental health treatment.  These preferences 
        or instructions may include, but are not limited to, consent to 
        or refusal of these treatments. 
           (b) A declaration may designate a proxy to make decisions 
        about intrusive mental health treatment.  A proxy designated to 
        make decisions about intrusive mental health treatments and who 
        agrees to serve as proxy may make decisions on behalf of a 
        declarant consistent with any desires the declarant expresses in 
        the declaration. 
           (c) A declaration is effective only if it is signed by the 
        declarant and two witnesses.  The witnesses must include a 
        statement that they believe the declarant understands the nature 
        and significance of the declaration.  A declaration becomes 
        operative when it is delivered to the declarant's physician or 
        other mental health treatment provider.  The physician or 
        provider must comply with it to the fullest extent possible, 
        consistent with reasonable medical practice, the availability of 
        treatments requested, and applicable law.  The physician or 
        provider shall continue to obtain the declarant's informed 
        consent to all intrusive mental health treatment decisions if 
        the declarant is capable of informed consent.  A treatment 
        provider may not require a person to make a declaration under 
        this subdivision as a condition of receiving services. 
           (d) The physician or other provider shall make the 
        declaration a part of the declarant's medical record.  If the 
        physician or other provider is unwilling at any time to comply 
        with the declaration, the physician or provider must promptly 
        notify the declarant and document the notification in the 
        declarant's medical record.  If the declarant has been committed 
        as a patient under this chapter, the physician or provider may 
        subject a declarant to intrusive treatment in a manner contrary 
        to the declarant's expressed wishes, only upon order of the 
        committing court.  If the declarant is not a committed patient 
        under this chapter, the physician or provider may subject the 
        declarant to intrusive treatment in a manner contrary to the 
        declarant's expressed wishes, only if the declarant is committed 
        as mentally ill or mentally ill and dangerous to the public and 
        a court order authorizing the treatment has been issued. 
           (e) A declaration under this subdivision may be revoked in 
        whole or in part at any time and in any manner by the declarant 
        if the declarant is competent at the time of revocation.  A 
        revocation is effective when a competent declarant communicates 
        the revocation to the attending physician or other provider.  
        The attending physician or other provider shall note the 
        revocation as part of the declarant's medical record. 
           (f) A provider who administers intrusive mental health 
        treatment according to and in good faith reliance upon the 
        validity of a declaration under this subdivision is held 
        harmless from any liability resulting from a subsequent finding 
        of invalidity. 
           (g) In addition to making a declaration under this 
        subdivision, a competent adult may delegate parental powers 
        under section 524.5-505 524.5-211 or may nominate a guardian or 
        conservator under section 525.544 sections 524.5-101 to 
        524.5-502. 
           Sec. 25.  Minnesota Statutes 2002, section 253B.03, 
        subdivision 11, is amended to read: 
           Subd. 11.  [PROXY.] A legally authorized health care proxy, 
        agent, or guardian, or conservator may exercise the patient's 
        rights on the patient's behalf.  
           Sec. 26.  Minnesota Statutes 2003 Supplement, section 
        256J.14, is amended to read: 
           256J.14 [ELIGIBILITY FOR PARENTING OR PREGNANT MINORS.] 
           (a) The definitions in this paragraph only apply to this 
        subdivision. 
           (1) "Household of a parent, legal guardian, or other adult 
        relative" means the place of residence of: 
           (i) a natural or adoptive parent; 
           (ii) a legal guardian according to appointment or 
        acceptance under section sections 260C.325, 525.615, or 525.6165 
        524.5-201 to 524.5-317, and related laws; 
           (iii) a caregiver as defined in section 256J.08, 
        subdivision 11; or 
           (iv) an appropriate adult relative designated by a county 
        agency. 
           (2) "Adult-supervised supportive living arrangement" means 
        a private family setting which assumes responsibility for the 
        care and control of the minor parent and minor child, or other 
        living arrangement, not including a public institution, licensed 
        by the commissioner of human services which ensures that the 
        minor parent receives adult supervision and supportive services, 
        such as counseling, guidance, independent living skills 
        training, or supervision. 
           (b) A minor parent and the minor child who is in the care 
        of the minor parent must reside in the household of a parent, 
        legal guardian, other adult relative, or in an adult-supervised 
        supportive living arrangement in order to receive MFIP unless: 
           (1) the minor parent has no living parent, other adult 
        relative, or legal guardian whose whereabouts is known; 
           (2) no living parent, other adult relative, or legal 
        guardian of the minor parent allows the minor parent to live in 
        the parent's, other adult relative's, or legal guardian's home; 
           (3) the minor parent lived apart from the minor parent's 
        own parent or legal guardian for a period of at least one year 
        before either the birth of the minor child or the minor parent's 
        application for MFIP; 
           (4) the physical or emotional health or safety of the minor 
        parent or minor child would be jeopardized if the minor parent 
        and the minor child resided in the same residence with the minor 
        parent's parent, other adult relative, or legal guardian; or 
           (5) an adult supervised supportive living arrangement is 
        not available for the minor parent and child in the county in 
        which the minor parent and child currently reside.  If an adult 
        supervised supportive living arrangement becomes available 
        within the county, the minor parent and child must reside in 
        that arrangement. 
           (c) The county agency shall inform minor applicants both 
        orally and in writing about the eligibility requirements, their 
        rights and obligations under the MFIP program, and any other 
        applicable orientation information.  The county must advise the 
        minor of the possible exemptions under section 256J.54, 
        subdivision 5, and specifically ask whether one or more of these 
        exemptions is applicable.  If the minor alleges one or more of 
        these exemptions, then the county must assist the minor in 
        obtaining the necessary verifications to determine whether or 
        not these exemptions apply. 
           (d) If the county worker has reason to suspect that the 
        physical or emotional health or safety of the minor parent or 
        minor child would be jeopardized if they resided with the minor 
        parent's parent, other adult relative, or legal guardian, then 
        the county worker must make a referral to child protective 
        services to determine if paragraph (b), clause (4), applies.  A 
        new determination by the county worker is not necessary if one 
        has been made within the last six months, unless there has been 
        a significant change in circumstances which justifies a new 
        referral and determination. 
           (e) If a minor parent is not living with a parent, legal 
        guardian, or other adult relative due to paragraph (b), clause 
        (1), (2), or (4), the minor parent must reside, when possible, 
        in a living arrangement that meets the standards of paragraph 
        (a), clause (2). 
           (f) Regardless of living arrangement, MFIP must be paid, 
        when possible, in the form of a protective payment on behalf of 
        the minor parent and minor child according to section 256J.39, 
        subdivisions 2 to 4. 
           Sec. 27.  Minnesota Statutes 2002, section 257B.02, is 
        amended to read: 
           257B.02 [APPLICATION OF OTHER LAW; CONSTRUCTION.] 
           Chapters 257 and 518 and sections 525.539 524.5-101 to 
        525.705 524.5-502 apply to standby custodians, temporary 
        custodians, co-custodians, custodians, and alternates unless 
        otherwise specified in this chapter. 
           Nothing in this chapter may be construed to deprive a 
        parent of any parental rights or responsibilities.  A designator 
        does not lose any custodial rights by the appointment of a 
        standby or temporary custodian. 
           Nothing in this chapter may be construed to relieve any 
        parent of a duty to support the parent's children.  A 
        preexisting child support order is not suspended or terminated 
        during the time a child is cared for by a standby or temporary 
        custodian, unless otherwise provided by court order.  A standby 
        custodian or temporary custodian has a cause of action for child 
        support against an absent parent under section 256.87, 
        subdivision 5. 
           Sec. 28.  Minnesota Statutes 2002, section 257B.04, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RECOMMENDED FORM.] A designation may, but need 
        not, be in the following form:  "I (insert name of designator) 
        do hereby appoint (insert name, address, and telephone number of 
        standby or temporary custodian) as the standby or temporary 
        custodian of (insert name(s) of child(ren)) to take effect upon 
        the occurrence of the following triggering event or events 
        (insert specific triggering events). 
           I am the (insert designator's relationship to child(ren)) 
        of (insert name(s) of child(ren)).  (Insert name(s) of 
        child(ren)'s other parent) is the other parent of (insert 
        name(s) of child(ren)).  The other parent's address is: 
           (check all that apply): 
           .... The other parent died on (insert date of death). 
           .... The other parent's parental rights were terminated on 
        (insert date of termination). 
           .... The other parent's whereabouts are unknown.  I 
        understand that all living parents whose rights have not been 
        terminated must be given notice of this designation pursuant to 
        the Minnesota Rules of Civil Procedure or a petition to approve 
        this designation may not be granted by the court. 
           .... The other parent is unwilling and unable to make and 
        carry out day-to-day child-care decisions concerning the 
        child(ren). 
           .... The other parent consents to this designation and has 
        signed this form below. 
           By this designation I am granting (insert name of standby 
        or temporary custodian) the authority to act for 60 days 
        following the occurrence of the triggering event as a 
        co-custodian with me, or in the event of my death, as custodian 
        of my child(ren). 
           A temporary custodian appointment terminates upon the death 
        of the designator. 
           (Optional) I hereby nominate (insert name, address, and 
        telephone number of alternate standby custodian) as the 
        alternate standby custodian to assume the duties of the standby 
        custodian named above if the standby custodian is unable or 
        unwilling to act as a standby custodian. 
           If I have indicated more than one triggering event, it is 
        my intent that the triggering event which occurs first shall 
        take precedence.  If I have indicated "my death" as the 
        triggering event, it is my intent that the person named in the 
        designation to be standby custodian for my child(ren) in the 
        event of my death shall be appointed as guardian of my 
        child(ren) under Minnesota Statutes, section 525.551 sections 
        524.5-201 to 524.5-317, upon my death. 
           It is my intention to retain full parental rights to the 
        extent consistent with my condition and to retain the authority 
        to revoke the appointment of a standby or temporary custodian if 
        I so choose. 
           This designation is made after careful reflection, while I 
        am of sound mind. 
        ...........................         ...........................
        (Date)                              (Designator's Signature)
        ..........................          ..........................
        (Witness' Signature)                (Witnesses' Signature)
        ..........................          ..........................
        (Number and Street)                 (Number and Street)
        ..........................          ..........................
        (City, State, and Zip Code)         (City, State, and Zip Code)
           IF APPLICABLE:  I (insert name of other parent) hereby 
        consent to this designation. 
        ...........................         ...........................
        (Date)                              (Signature of Other Parent)
        ..............................................................
        (Address of Other Parent)
           I, (insert name of standby or temporary custodian), hereby 
        accept my nomination as standby or temporary custodian of 
        (insert child(ren)'s name(s)).  I understand that my rights and 
        responsibilities toward the child(ren) named above will become 
        effective upon the occurrence of the above-stated triggering 
        event or events.  I further understand that in order to continue 
        caring for the child(ren), I must file a petition with the court 
        within 60 days of the occurrence of the triggering event. 
        ...........................          ...........................
        (Date)                               (Signature of Standby or
                                             Temporary Custodian)"
           Sec. 29.  Minnesota Statutes 2002, section 257B.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEATH OF DESIGNATOR.] The commencement of the 
        standby custodian's authority to act as custodian because of the 
        death of the designator does not confer upon the standby 
        custodian more than legal and physical custody of the child as 
        defined in chapter 518.  On the death of the designator, the 
        standby custodian shall be appointed a guardian pursuant to 
        section 525.551 sections 524.5-201 to 524.5-317.  No separate 
        petition is required.  No bond or accounting is required except 
        as specified in this chapter. 
           Sec. 30.  Minnesota Statutes 2002, section 257C.02, is 
        amended to read: 
           257C.02 [APPLICATION OF OTHER LAW; CONSTRUCTION.] 
           (a) Chapters 256, 257, and 518 and section 525.551 sections 
        524.5-201 to 524.5-317 apply to third-party and de facto custody 
        proceedings unless otherwise specified in this chapter.  De 
        facto or third-party child custody proceedings concerning an 
        Indian child are child custody proceedings governed by the 
        Indian Child Welfare Act, United States Code, title 25, sections 
        1901 to 1963; by the Minnesota Indian Family Preservation Act, 
        sections 260.751 to 260.835; and by this chapter when not 
        inconsistent with the Indian Child Welfare Act or the Minnesota 
        Indian Family Preservation Act. 
           (b) Nothing in this chapter relieves a parent of a duty to 
        support the parent's child.  A preexisting child support order 
        is not suspended or terminated when a third party takes custody 
        of a child unless otherwise provided by court order.  A de facto 
        or third-party custodian has a cause of action against a parent 
        for child support under section 256.87, subdivision 5, and the 
        public authority has a cause of action against a parent for 
        child support under section 256.87, subdivision 1. 
           (c) Nothing in this chapter prohibits the establishment of 
        parentage under chapter 257. 
           Sec. 31.  Minnesota Statutes 2002, section 260C.325, 
        subdivision 3, is amended to read: 
           Subd. 3.  [BOTH PARENTS DECEASED.] If upon petition to the 
        juvenile court by a reputable person, including but not limited 
        to an agent of the commissioner of human services, and upon 
        hearing in the manner provided in section 260C.163, the court 
        finds that both parents are deceased and no appointment has been 
        made or petition for appointment filed pursuant to 
        sections 525.615 524.5-201 to 525.6185 524.5-317, the court 
        shall order the guardianship and legal custody of the child 
        transferred to:  
           (a) the commissioner of human services; 
           (b) a licensed child-placing agency; or 
           (c) an individual who is willing and capable of assuming 
        the appropriate duties and responsibilities to the child.  
           Sec. 32.  Minnesota Statutes 2002, section 270B.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [INCAPACITATION.] If an individual is legally 
        incapacitated subject to guardianship or conservatorship under 
        sections 525.539 524.5-101 to 525.61 524.5-502, or similar laws 
        of another state, that individual's return and return 
        information is, upon written request, open to inspection by or 
        disclosure to the guardian or conservator appointed for the 
        individual or the individual's estate. 
           Sec. 33.  Minnesota Statutes 2002, section 501B.47, is 
        amended to read: 
           501B.47 [PETITION BY OWNER OF PRESENT OR FUTURE INTEREST 
        FOR COURT ORDER TO SELL, MORTGAGE, OR LEASE INTERESTS IN REAL 
        PROPERTY.] 
           Notwithstanding a contrary provision in the instrument 
        creating the interests, when the ownership of real property 
        situated in this state is divided into one or more possessory 
        interests and one or more future interests, the owner of an 
        interest may petition the district court for the county in which 
        any of the real property is situated for an order directing that 
        the real property or part of the real property be sold, 
        mortgaged, or leased.  If an owner is a minor or incapacitated 
        person as defined in section 525.54 524.5-102, subdivision 6 or 
        10, or otherwise under conservatorship, the petition may be made 
        on behalf of the owner by a custodian, conservator, or guardian. 
           Sec. 34.  Minnesota Statutes 2002, section 501B.49, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOTICE.] Notice of hearing must be given by 
        publishing a copy of the order for hearing one time in a legal 
        newspaper for the county in which the petition is filed at least 
        20 days before the date of the hearing, and by mailing copies of 
        the order for hearing in the manner specified in this 
        subdivision or in another manner ordered by the court.  In the 
        case of a petition under section 501B.46, mailed notice must be 
        given by mailing a copy of the order for hearing to those 
        beneficiaries of the trust then in being who are known to or 
        reasonably ascertainable by the petitioner and, in the case of a 
        beneficiary who is a minor or an incapacitated person as defined 
        in section 525.54 524.5-102, subdivision 6 or 10, or otherwise 
        under conservatorship, to the conservator or guardian, or if 
        none is acting within the state, to the guardian ad litem of the 
        beneficiary, at least 15 days before the date of the hearing.  
        In the case of a petition under section 501B.47, mailed notice 
        must be given by mailing a copy of the order for hearing to 
        those persons owning an interest in the real property then in 
        being who are known to or reasonably ascertainable by the 
        petitioner and, in the case of a person who is a minor or an 
        incapacitated person as defined in section 525.54 524.5-102, 
        subdivision 6 or 10, or otherwise under conservatorship, to the 
        conservator or guardian, or if none is acting within the state, 
        to the guardian ad litem of the person, at least 15 days before 
        the date of the hearing. 
           Sec. 35.  Minnesota Statutes 2002, section 501B.50, is 
        amended to read: 
           501B.50 [REPRESENTATION OF PERSONS WHO ARE UNBORN, 
        UNASCERTAINED, UNKNOWN, OR MINORS OR INCAPACITATED PERSONS.] 
           If an interested person is a minor or an incapacitated 
        person as defined in section 525.54 524.5-102, subdivision 6 or 
        10, or otherwise under conservatorship, and does not have a 
        guardian or conservator within the state, the court shall 
        appoint a guardian ad litem for the person.  If an interested 
        person is unborn, unascertained, or a person whose identity or 
        address is unknown to the petitioner, the court shall represent 
        the person, but the court may, upon the application of the 
        petitioner or another interested person or on its own motion, 
        appoint a guardian ad litem to represent the person. 
           Sec. 36.  Minnesota Statutes 2002, section 501B.51, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FORM OF ORDER; CONCLUSIVENESS.] At a 
        hearing under section 501B.49, the court shall make an order it 
        considers appropriate.  If the petition is granted in whole or 
        in part, the order must specify the real property to be sold, 
        mortgaged, or leased and the terms and conditions on which the 
        transaction is to be consummated.  The order is final and 
        conclusive as to all matters determined by it and binding in rem 
        on all persons interested in the real property, whether their 
        interests are vested or contingent, even though the person is a 
        minor, incapacitated as defined in section 525.54 524.5-102, 
        subdivision 6 or 10, or otherwise subject to conservatorship, 
        unascertained, or not in being, except that appeal may be taken 
        in the manner provided in the Rules of Appellate Procedure. 
           Sec. 37.  Minnesota Statutes 2002, section 501B.53, 
        subdivision 4, is amended to read: 
           Subd. 4.  [HEARING ON CONFIRMATION ORDER.] The trustee or 
        receiver shall obtain from the court a time and place for the 
        court's hearing on the confirmation of the agreement and shall 
        give mailed notice of the time and place of the hearing to the 
        interested parties described in section 501B.51 at least 15 days 
        before the date of that hearing.  The order of confirmation is 
        final and conclusive as to all matters determined by it and 
        binding in rem on all persons interested in the real property, 
        whether their interests are vested or contingent, even though a 
        person is a minor, or incapacitated, as defined in section 
        525.54 524.5-102, subdivision 6 or 10, or otherwise under 
        conservatorship, unascertained, or not in being, except that 
        appeal may be taken in the manner provided in the Rules of 
        Appellate Procedure. 
           Sec. 38.  Minnesota Statutes 2002, section 519.07, is 
        amended to read: 
           519.07 [BARRING INTEREST OF SPOUSE; RIGHTS RECIPROCAL.] 
           A person who has an interest in real estate may bring an 
        action in any county in which all or a part of the real estate 
        is located, seeking a decree that will bar any inchoate interest 
        of the person's spouse in the real estate.  The court may grant 
        such a petition if the court finds by clear and convincing 
        evidence that the person's spouse is an incapacitated person as 
        defined in section 525.54 524.5-102, subdivision 6, that the 
        person has been deserted by the spouse for a period of at least 
        one year, or that other similar circumstances warrant.  The 
        decree may grant the person full control of all the person's 
        real estate located in Minnesota, with power to sell, convey, 
        mortgage, lease, or transfer title to it, subject to any 
        limitations the court considers proper in the circumstances.  
        The decree may not be granted or must be vacated if the 
        petitioner caused or contributed to the incapacity or 
        disappearance of the petitioner's spouse.  A certified copy of 
        such decree may be recorded in the office of the county recorder 
        or filed in the office of registrar of titles in any county 
        wherever such real estate, or any part thereof, may be situated. 
           Sec. 39.  Minnesota Statutes 2002, section 523.03, is 
        amended to read: 
           523.03 [INTERPRETATION.] 
           As used in this chapter: 
           (1) "incapacity" means cause for appointment of a guardian 
        or conservator of the person or estate of an adult under section 
        525.54 sections 524.5-101 to 524.5-502; 
           (2) "incompetence" has the meaning given in section 525.54; 
           (3) "principal" includes a guardian or conservator of the 
        estate appointed for the principal at any time; and 
           (4) (3) "power of attorney" means a validly executed power 
        of attorney. 
           Sec. 40.  Minnesota Statutes 2002, section 524.1-201, is 
        amended to read: 
           524.1-201 [GENERAL DEFINITIONS.] 
           Subject to additional definitions contained in the 
        subsequent articles which are applicable to specific articles or 
        parts, and unless the context otherwise requires, in chapters 
        524 and 525: 
           (2) "Application" means a written request to the registrar 
        for an order of informal probate or appointment under article 
        III, part 3. 
           (3) "Beneficiary," as it relates to trust beneficiaries, 
        includes a person who has any present or future interest, vested 
        or contingent, and also includes the owner of an interest by 
        assignment or other transfer and as it relates to a charitable 
        trust, includes any person entitled to enforce the trust. 
           (5) "Child" includes any individual entitled to take as a 
        child under law by intestate succession from the parent whose 
        relationship is involved and excludes any person who is only a 
        stepchild, a foster child, a grandchild or any more remote 
        descendant. 
           (6) "Claims" includes liabilities of the decedent whether 
        arising in contract or otherwise and liabilities of the estate 
        which arise after the death of the decedent including funeral 
        expenses and expenses of administration.  The term does not 
        include taxes, demands or disputes regarding title of a decedent 
        to specific assets alleged to be included in the estate, tort 
        claims, foreclosure of mechanic's liens, or to actions pursuant 
        to section 573.02. 
           (7) "Court" means the court or branch having jurisdiction 
        in matters relating to the affairs of decedents.  This court in 
        this state is known as the district court. 
           (8) "Conservator" means a person who is appointed by a 
        court to manage the estate of a protected person.  
           (9) "Descendant" of an individual means all of the 
        individual's descendants of all generations, with the 
        relationship of parent and child at each generation being 
        determined by the definition of child and parent contained in 
        this section. 
           (10) "Devise," when used as a noun, means a testamentary 
        disposition of real or personal property and when used as a 
        verb, means to dispose of real or personal property by will. 
           (11) "Devisee" means any person designated in a will to 
        receive a devise.  In the case of a devise to an existing trust 
        or trustee, or to a trustee on trust described by will, the 
        trust or trustee is the devisee and the beneficiaries are not 
        devisees. 
           (12) "Disability" means cause for appointment of a 
        protective order conservator as described by in section 525.54 
        524.5-401, or a protective order as described in section 
        524.5-412. 
           (13) "Distributee" means any person who has received or who 
        will receive property of a decedent from the decedent's personal 
        representative other than as a creditor or purchaser.  A 
        testamentary trustee is a distributee with respect to property 
        which the trustee has received from a personal representative 
        only to the extent of distributed assets or their increment 
        remaining in the trustee's hands.  A beneficiary of a 
        testamentary trust to whom the trustee has distributed property 
        received from a personal representative is a distributee of the 
        personal representative.  For purposes of this provision, 
        "testamentary trustee" includes a trustee to whom assets are 
        transferred by will, to the extent of the devised assets. 
           (14) "Estate" includes all of the property of the decedent, 
        trust, or other person whose affairs are subject to this chapter 
        as originally constituted and as it exists from time to time 
        during administration. 
           (16) "Fiduciary" includes personal representative, 
        guardian, conservator and trustee. 
           (17) "Foreign personal representative" means a personal 
        representative of another jurisdiction. 
           (18) "Formal proceedings" means those conducted before a 
        judge with notice to interested persons. 
           (20) "Guardian" means a person who has qualified as a 
        guardian of a minor or incapacitated person pursuant to 
        testamentary or court appointment, but excludes one who is 
        merely a guardian ad litem. 
           (21) "Heirs" means those persons, including the surviving 
        spouse, who are entitled under the statutes of intestate 
        succession to the property of a decedent. 
           (22) "Incapacitated person" is as described in section 
        525.54 524.5-102, subdivision 6, other than a minor. 
           (23) "Informal proceedings" means those conducted by the 
        judge, the registrar, or the person or persons designated by the 
        judge for probate of a will or appointment of a personal 
        representative in accordance with sections 524.3-301 to 
        524.3-311. 
           (24) "Interested person" includes heirs, devisees, 
        children, spouses, creditors, beneficiaries and any others 
        having a property right in or claim against the estate of a 
        decedent, ward or protected person which may be affected by the 
        proceeding.  It also includes persons having priority for 
        appointment as personal representative, and other fiduciaries 
        representing interested persons.  The meaning as it relates to 
        particular persons may vary from time to time and must be 
        determined according to the particular purposes of, and matter 
        involved in, any proceeding. 
           (27) "Lease" includes an oil, gas, or other mineral lease. 
           (28) "Letters" includes letters testamentary, letters of 
        guardianship, letters of administration, and letters of 
        conservatorship. 
           (30) "Mortgage" means any conveyance, agreement or 
        arrangement in which property is used as security. 
           (31) "Nonresident decedent" means a decedent who was 
        domiciled in another jurisdiction at the time of death. 
           (32) "Organization" includes a corporation, government or 
        governmental subdivision or agency, business trust, estate, 
        trust, partnership or association, two or more persons having a 
        joint or common interest, or any other legal entity. 
           (35) "Person" means an individual, a corporation, an 
        organization, or other legal entity. 
           (36) "Personal representative" includes executor, 
        administrator, successor personal representative, special 
        administrator, and persons who perform substantially the same 
        function under the law governing their status.  "General 
        personal representative" excludes special administrator. 
           (37) "Petition" means a written request to the court for an 
        order after notice. 
           (38) "Proceeding" includes action at law and suit in equity.
           (39) "Property" includes both real and personal property or 
        any interest therein and means anything that may be the subject 
        of ownership. 
           (40) "Protected person" is as described in section 525.54 
        524.5-102, subdivision 1 14. 
           (42) "Registrar" refers to the judge of the court or the 
        person designated by the court to perform the functions of 
        registrar as provided in section 524.1-307. 
           (43) "Security" includes any note, stock, treasury stock, 
        bond, debenture, evidence of indebtedness, certificate of 
        interest or participation in an oil, gas or mining title or 
        lease or in payments out of production under such a title or 
        lease, collateral trust certificate, transferable share, voting 
        trust certificate or, in general, any interest or instrument 
        commonly known as a security, or any certificate of interest or 
        participation, any temporary or interim certificate, receipt or 
        certificate of deposit for, or any warrant or right to subscribe 
        to or purchase, any of the foregoing. 
           (44) "Settlement," in reference to a decedent's estate, 
        includes the full process of administration, distribution and 
        closing. 
           (45) "Special administrator" means a personal 
        representative as described by sections 524.3-614 to 524.3-618. 
           (46) "State" includes any state of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, and any 
        territory or possession subject to the legislative authority of 
        the United States. 
           (47) "Successor personal representative" means a personal 
        representative, other than a special administrator, who is 
        appointed to succeed a previously appointed personal 
        representative. 
           (48) "Successors" means those persons, other than 
        creditors, who are entitled to property of a decedent under the 
        decedent's will, this chapter or chapter 525.  "Successors" also 
        means a funeral director or county government that provides the 
        funeral and burial of the decedent, or a state or county agency 
        with a claim authorized under section 256B.15. 
           (49) "Supervised administration" refers to the proceedings 
        described in sections 524.3-501 to 524.3-505. 
           (51) "Testacy proceeding" means a proceeding to establish a 
        will or determine intestacy. 
           (53) "Trust" includes any express trust, private or 
        charitable, with additions thereto, wherever and however 
        created.  It also includes a trust created or determined by 
        judgment or decree under which the trust is to be administered 
        in the manner of an express trust.  "Trust" excludes other 
        constructive trusts, and it excludes resulting trusts, 
        conservatorships, personal representatives, trust accounts as 
        defined in chapter 528, custodial arrangements pursuant to 
        sections 149A.97, 318.01 to 318.06, 527.21 to 527.44, business 
        trusts providing for certificates to be issued to beneficiaries, 
        common trust funds, voting trusts, security arrangements, 
        liquidation trusts, and trusts for the primary purpose of paying 
        debts, dividends, interest, salaries, wages, profits, pensions, 
        or employee benefits of any kind, and any arrangement under 
        which a person is nominee or escrowee for another. 
           (54) "Trustee" includes an original, additional, or 
        successor trustee, whether or not appointed or confirmed by 
        court. 
           (55) "Ward" is as described in section 525.54 524.5-102, 
        subdivision 1 17. 
           (56) "Will" includes codicil and any testamentary 
        instrument which merely appoints an executor or revokes or 
        revises another will. 
           Sec. 41.  Minnesota Statutes 2002, section 524.2-606, is 
        amended to read: 
           524.2-606 [NONADEMPTION OF SPECIFIC DEVISES; UNPAID 
        PROCEEDS OF SALE, CONDEMNATION, OR INSURANCE; SALE BY 
        CONSERVATOR OR GUARDIAN.] 
           (a) A specific devisee has a right to the specifically 
        devised property in the testator's estate at death and: 
           (1) any balance of the purchase price, together with any 
        security agreement, owing from a purchaser to the testator at 
        death by reason of sale of the property; 
           (2) any amount of a condemnation award for the taking of 
        the property unpaid at death; 
           (3) any proceeds unpaid at death on fire or casualty 
        insurance on or other recovery for injury to the property; and 
           (4) property owned by the testator at death and acquired as 
        a result of foreclosure, or obtained in lieu of foreclosure, of 
        the security interest for a specifically devised obligation. 
           (b) If specifically devised property is sold or mortgaged 
        by a conservator or guardian or by an agent acting within the 
        authority of a durable power of attorney for an incapacitated 
        principal, or if a condemnation award, insurance proceeds, or 
        recovery for injury to the property are paid to a conservator or 
        guardian or to an agent acting within the authority of a durable 
        power of attorney for an incapacitated principal, the specific 
        devisee has the right to a general pecuniary devise equal to the 
        net sale price, the amount of the unpaid loan, the condemnation 
        award, the insurance proceeds, or the recovery. 
           (c) The right of a specific devisee under paragraph (b) is 
        reduced by any right the devisee has under paragraph (a). 
           (d) For the purposes of the references in paragraph (b) to 
        a conservator or guardian or an agent acting within the 
        authority of a durable power of attorney, paragraph (b) does not 
        apply if after the sale, mortgage, condemnation, casualty, or 
        recovery; 
           (1) in the case of a conservator or guardian, it was 
        adjudicated that the testator's incapacity ceased and the 
        testator survived the adjudication by one year; or 
           (2) in the case of an agent acting within the authority of 
        a durable power of attorney, the testator's incapacity ceased 
        and the testator survived for one year after the incapacity 
        ceased.  
           (e) For the purposes of the references in paragraph (b) to 
        an agent acting within the authority of a durable power of 
        attorney for an incapacitated principal, (i) "incapacitated 
        principal" means a principal who is an incapacitated person as 
        defined in section 525.54 524.5-102, subdivision 3 6, and (ii) a 
        finding of the principal's incapacity need not occur during the 
        principal's life.  
           Sec. 42.  Minnesota Statutes 2002, section 524.3-715, is 
        amended to read: 
           524.3-715 [TRANSACTIONS AUTHORIZED FOR PERSONAL 
        REPRESENTATIVES; EXCEPTIONS.] 
           Except as restricted or otherwise provided by the will or 
        by an order in a formal proceeding and subject to the priorities 
        stated in section 524.3-902, a personal representative, acting 
        reasonably for the benefit of the interested persons, may 
        properly: 
           (1) retain assets owned by the decedent pending 
        distribution or liquidation including those in which the 
        representative is personally interested or which are otherwise 
        improper for trust investment; 
           (2) receive assets from fiduciaries, or other sources; 
           (3) perform, compromise or refuse performance of the 
        decedent's contracts that continue as obligations of the estate, 
        as the personal representative may determine under the 
        circumstances.  In performing enforceable contracts by the 
        decedent to convey or lease land, the personal representative, 
        among other possible courses of action, may: 
           (i) execute and deliver a deed of conveyance for cash 
        payment of all sums remaining due or the purchaser's note for 
        the sum remaining due secured by a mortgage or deed of trust on 
        the land; or 
           (ii) deliver a deed in escrow with directions that the 
        proceeds, when paid in accordance with the escrow agreement, be 
        paid to the successors of the decedent, as designated in the 
        escrow agreement; 
           (4) satisfy written charitable pledges of the decedent 
        irrespective of whether the pledges constituted binding 
        obligations of the decedent or were properly presented as 
        claims, if in the judgment of the personal representative the 
        decedent would have wanted the pledges completed under the 
        circumstances; 
           (5) if funds are not needed to meet debts and expenses 
        currently payable and are not immediately distributable, deposit 
        or invest liquid assets of the estate, including moneys received 
        from the sale of other assets, in federally insured 
        interest-bearing accounts, readily marketable secured loan 
        arrangements or other prudent investments which would be 
        reasonable for use by trustees generally; 
           (6) acquire or dispose of an asset, including land in this 
        or another state, for cash or on credit, at public or private 
        sale; and manage, develop, improve, exchange, partition, change 
        the character of, or abandon an estate asset; 
           (7) make ordinary or extraordinary repairs or alterations 
        in buildings or other structures, demolish any improvements, 
        raze existing or erect new party walls or buildings; 
           (8) subdivide, develop or dedicate land to public use; make 
        or obtain the vacation of plats and adjust boundaries; or adjust 
        differences in valuation on exchange or partition by giving or 
        receiving considerations; or dedicate easements to public use 
        without consideration; 
           (9) enter for any purpose into a lease as lessor or lessee, 
        with or without option to purchase or renew, for a term within 
        or extending beyond the period of administration; 
           (10) enter into a lease or arrangement for exploration and 
        removal of minerals or other natural resources or enter into a 
        pooling or unitization agreement; 
           (11) abandon property when, in the opinion of the personal 
        representative, it is valueless, or is so encumbered, or is in 
        condition that it is of no benefit to the estate; 
           (12) vote stocks or other securities in person or by 
        general or limited proxy; 
           (13) pay calls, assessments, and other sums chargeable or 
        accruing against or on account of securities, unless barred by 
        the provisions relating to claims; 
           (14) hold a security in the name of a nominee or in other 
        form without disclosure of the interest of the estate but the 
        personal representative is liable for any act of the nominee in 
        connection with the security so held; 
           (15) insure the assets of the estate against damage, loss 
        and liability and the personal representative against liability 
        as to third persons; 
           (16) borrow money with or without security to be repaid 
        from the estate assets or otherwise; and advance money for the 
        protection of the estate; 
           (17) effect a fair and reasonable compromise with any 
        debtor or obligor, or extend, renew or in any manner modify the 
        terms of any obligation owing to the estate.  The personal 
        representative on holding a mortgage, pledge or other lien upon 
        property of another person may, in lieu of foreclosure, accept a 
        conveyance or transfer of encumbered assets from the owner 
        thereof in satisfaction of the indebtedness secured by lien; 
           (18) pay in compliance with section 524.3-805, but without 
        the presentation of a claim, the reasonable and necessary last 
        illness expenses of the decedent (except as provided in section 
        524.3-806 (a)), reasonable funeral expenses, debts and taxes 
        with preference under federal or state law, and other taxes, 
        assessments, compensation of the personal representative and the 
        personal representative's attorney, and all other costs and 
        expenses of administration although the same may be otherwise 
        barred under section 524.3-803; 
           (19) sell or exercise stock subscription or conversion 
        rights; consent, directly or through a committee or other agent, 
        to the reorganization, consolidation, merger, dissolution, or 
        liquidation of a corporation or other business enterprise; 
           (20) allocate items of income or expense to either estate 
        income or principal, as permitted or provided by law; 
           (21) employ persons, including attorneys, auditors, 
        investment advisors, or agents, even if they are associated with 
        the personal representative, to advise or assist the personal 
        representative in the performance of administrative duties; act 
        without independent investigation upon their recommendations; 
        and instead of acting personally, employ one or more agents to 
        perform any act of administration, whether or not discretionary; 
           (22) prosecute or defend claims, or proceedings in any 
        jurisdiction for the protection of the estate and of the 
        personal representative in the performance of duties; 
           (23) sell, mortgage, or lease any real or personal property 
        of the estate or any interest therein for cash, credit, or for 
        part cash and part credit, and with or without security for 
        unpaid balances, provided, however, that the homestead of a 
        decedent when the spouse takes any interest therein shall not be 
        sold, mortgaged or leased unless the written consent of the 
        spouse has been obtained; 
           (24) continue any unincorporated business or venture in 
        which the decedent was engaged at the time of death (i) in the 
        same business form for a period of not more than four months 
        from the date of appointment of a general personal 
        representative if continuation is a reasonable means of 
        preserving the value of the business including good will, (ii) 
        in the same business form for any additional period of time that 
        may be approved by order of the court in a formal proceeding to 
        which the persons interested in the estate are parties; or (iii) 
        throughout the period of administration if the business is 
        incorporated by the personal representative and if none of the 
        probable distributees of the business who are competent adults 
        object to its incorporation and retention in the estate; 
           (25) incorporate any business or venture in which the 
        decedent was engaged at the time of death; 
           (26) provide for exoneration of the personal representative 
        from personal liability in any contract entered into on behalf 
        of the estate; 
           (27) satisfy and settle claims and distribute the estate as 
        provided in this chapter; 
           (28) foreclose a mortgage, lien, or pledge or collect the 
        debts secured thereby, or complete any such proceeding commenced 
        by the decedent; 
           (29) exercise all powers granted to guardians and 
        conservators by sections 525.67 and 525.68 524.5-101 to 
        524.5-502.  
           Sec. 43.  Minnesota Statutes 2002, section 609.2325, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXEMPTIONS.] For the purposes of this section, a 
        vulnerable adult is not abused for the sole reason that: 
           (1) the vulnerable adult or a person with authority to make 
        health care decisions for the vulnerable adult under sections 
        144.651, 144A.44, chapter 145B, 145C, or 252A, or section 
        sections 253B.03, or 525.539 524.5-101 to 525.6199 
        524.5-502, refuses consent or withdraws consent, consistent with 
        that authority and within the boundary of reasonable medical 
        practice, to any therapeutic conduct, including any care, 
        service, or procedure to diagnose, maintain, or treat the 
        physical or mental condition of the vulnerable adult or, where 
        permitted under law, to provide nutrition and hydration 
        parenterally or through intubation; this paragraph does not 
        enlarge or diminish rights otherwise held under law by: 
           (i) a vulnerable adult or a person acting on behalf of a 
        vulnerable adult, including an involved family member, to 
        consent to or refuse consent for therapeutic conduct; or 
           (ii) a caregiver to offer or provide or refuse to offer or 
        provide therapeutic conduct; 
           (2) the vulnerable adult, a person with authority to make 
        health care decisions for the vulnerable adult, or a caregiver 
        in good faith selects and depends upon spiritual means or prayer 
        for treatment or care of disease or remedial care of the 
        vulnerable adult in lieu of medical care, provided that this is 
        consistent with the prior practice or belief of the vulnerable 
        adult or with the expressed intentions of the vulnerable adult; 
        or 
           (3) the vulnerable adult, who is not impaired in judgment 
        or capacity by mental or emotional dysfunction or undue 
        influence, engages in consensual sexual contact with:  (i) a 
        person, including a facility staff person, when a consensual 
        sexual personal relationship existed prior to the caregiving 
        relationship; or (ii) a personal care attendant, regardless of 
        whether the consensual sexual personal relationship existed 
        prior to the caregiving relationship. 
           Sec. 44.  Minnesota Statutes 2002, section 609.233, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXEMPTIONS.] A vulnerable adult is not neglected 
        for the sole reason that: 
           (1) the vulnerable adult or a person with authority to make 
        health care decisions for the vulnerable adult under sections 
        144.651, 144A.44, 253B.03, or 525.539 524.5-101 to 525.6199 
        524.5-502, or chapter 145B, 145C, or 252A, refuses consent or 
        withdraws consent, consistent with that authority and within the 
        boundary of reasonable medical practice, to any therapeutic 
        conduct, including any care, service, or procedure to diagnose, 
        maintain, or treat the physical or mental condition of the 
        vulnerable adult or, where permitted under law, to provide 
        nutrition and hydration parenterally or through intubation; this 
        paragraph does not enlarge or diminish rights otherwise held 
        under law by: 
           (i) a vulnerable adult or a person acting on behalf of a 
        vulnerable adult, including an involved family member, to 
        consent to or refuse consent for therapeutic conduct; or 
           (ii) a caregiver to offer or provide or refuse to offer or 
        provide therapeutic conduct; 
           (2) the vulnerable adult, a person with authority to make 
        health care decisions for the vulnerable adult, or a caregiver 
        in good faith selects and depends upon spiritual means or prayer 
        for treatment or care of disease or remedial care of the 
        vulnerable adult in lieu of medical care, provided that this is 
        consistent with the prior practice or belief of the vulnerable 
        adult or with the expressed intentions of the vulnerable adult; 
        or 
           (3) the vulnerable adult, who is not impaired in judgment 
        or capacity by mental or emotional dysfunction or undue 
        influence, engages in consensual sexual contact with:  (i) a 
        person including a facility staff person when a consensual 
        sexual personal relationship existed prior to the caregiving 
        relationship; or (ii) a personal care attendant, regardless of 
        whether the consensual sexual personal relationship existed 
        prior to the caregiving relationship. 
           Sec. 45.  Minnesota Statutes 2002, section 626.557, 
        subdivision 10, is amended to read: 
           Subd. 10.  [DUTIES OF COUNTY SOCIAL SERVICE AGENCY.] (a) 
        Upon receipt of a report from the common entry point staff, the 
        county social service agency shall immediately assess and offer 
        emergency and continuing protective social services for purposes 
        of preventing further maltreatment and for safeguarding the 
        welfare of the maltreated vulnerable adult.  In cases of 
        suspected sexual abuse, the county social service agency shall 
        immediately arrange for and make available to the vulnerable 
        adult appropriate medical examination and treatment.  When 
        necessary in order to protect the vulnerable adult from further 
        harm, the county social service agency shall seek authority to 
        remove the vulnerable adult from the situation in which the 
        maltreatment occurred.  The county social service agency may 
        also investigate to determine whether the conditions which 
        resulted in the reported maltreatment place other vulnerable 
        adults in jeopardy of being maltreated and offer protective 
        social services that are called for by its determination.  
           (b) County social service agencies may enter facilities and 
        inspect and copy records as part of an investigation.  The 
        county social service agency has access to not public data, as 
        defined in section 13.02, and medical records under section 
        144.335, that are maintained by facilities to the extent 
        necessary to conduct its investigation.  The inquiry is not 
        limited to the written records of the facility, but may include 
        every other available source of information.  
           (c) When necessary in order to protect a vulnerable adult 
        from serious harm, the county social service agency shall 
        immediately intervene on behalf of that adult to help the 
        family, vulnerable adult, or other interested person by seeking 
        any of the following:  
           (1) a restraining order or a court order for removal of the 
        perpetrator from the residence of the vulnerable adult pursuant 
        to section 518B.01; 
           (2) the appointment of a guardian or conservator pursuant 
        to sections 525.539 524.5-101 to 525.6198 524.5-502, or 
        guardianship or conservatorship pursuant to chapter 252A; 
           (3) replacement of a guardian or conservator suspected of 
        maltreatment and appointment of a suitable person as guardian or 
        conservator, pursuant to sections 525.539 524.5-101 to 525.6198 
        524.5-502; or 
           (4) a referral to the prosecuting attorney for possible 
        criminal prosecution of the perpetrator under chapter 609.  
           The expenses of legal intervention must be paid by the 
        county in the case of indigent persons, under section 525.703 
        524.5-502 and chapter 563.  
           In proceedings under sections 525.539 524.5-101 to 525.6198 
        524.5-502, if a suitable relative or other person is not 
        available to petition for guardianship or conservatorship, a 
        county employee shall present the petition with representation 
        by the county attorney.  The county shall contract with or 
        arrange for a suitable person or organization to provide ongoing 
        guardianship services.  If the county presents evidence to the 
        court exercising probate jurisdiction that it has made a 
        diligent effort and no other suitable person can be found, a 
        county employee may serve as guardian or conservator.  The 
        county shall not retaliate against the employee for any action 
        taken on behalf of the ward or conservatee protected person even 
        if the action is adverse to the county's interest.  Any person 
        retaliated against in violation of this subdivision shall have a 
        cause of action against the county and shall be entitled to 
        reasonable attorney fees and costs of the action if the action 
        is upheld by the court. 
           Sec. 46.  Minnesota Statutes 2002, section 626.5572, 
        subdivision 17, is amended to read: 
           Subd. 17.  [NEGLECT.] "Neglect" means:  
           (a) The failure or omission by a caregiver to supply a 
        vulnerable adult with care or services, including but not 
        limited to, food, clothing, shelter, health care, or supervision 
        which is: 
           (1) reasonable and necessary to obtain or maintain the 
        vulnerable adult's physical or mental health or safety, 
        considering the physical and mental capacity or dysfunction of 
        the vulnerable adult; and 
           (2) which is not the result of an accident or therapeutic 
        conduct. 
           (b) The absence or likelihood of absence of care or 
        services, including but not limited to, food, clothing, shelter, 
        health care, or supervision necessary to maintain the physical 
        and mental health of the vulnerable adult which a reasonable 
        person would deem essential to obtain or maintain the vulnerable 
        adult's health, safety, or comfort considering the physical or 
        mental capacity or dysfunction of the vulnerable adult. 
           (c) For purposes of this section, a vulnerable adult is not 
        neglected for the sole reason that: 
           (1) the vulnerable adult or a person with authority to make 
        health care decisions for the vulnerable adult under sections 
        144.651, 144A.44, chapter 145B, 145C, or 252A, or section 
        sections 253B.03, or 525.539 524.5-101 to 525.6199 
        524.5-502, refuses consent or withdraws consent, consistent with 
        that authority and within the boundary of reasonable medical 
        practice, to any therapeutic conduct, including any care, 
        service, or procedure to diagnose, maintain, or treat the 
        physical or mental condition of the vulnerable adult, or, where 
        permitted under law, to provide nutrition and hydration 
        parenterally or through intubation; this paragraph does not 
        enlarge or diminish rights otherwise held under law by: 
           (i) a vulnerable adult or a person acting on behalf of a 
        vulnerable adult, including an involved family member, to 
        consent to or refuse consent for therapeutic conduct; or 
           (ii) a caregiver to offer or provide or refuse to offer or 
        provide therapeutic conduct; or 
           (2) the vulnerable adult, a person with authority to make 
        health care decisions for the vulnerable adult, or a caregiver 
        in good faith selects and depends upon spiritual means or prayer 
        for treatment or care of disease or remedial care of the 
        vulnerable adult in lieu of medical care, provided that this is 
        consistent with the prior practice or belief of the vulnerable 
        adult or with the expressed intentions of the vulnerable adult; 
           (3) the vulnerable adult, who is not impaired in judgment 
        or capacity by mental or emotional dysfunction or undue 
        influence, engages in sexual contact with:  
           (i) a person including a facility staff person when a 
        consensual sexual personal relationship existed prior to the 
        caregiving relationship; or 
           (ii) a personal care attendant, regardless of whether the 
        consensual sexual personal relationship existed prior to the 
        caregiving relationship; or 
           (4) an individual makes an error in the provision of 
        therapeutic conduct to a vulnerable adult which does not result 
        in injury or harm which reasonably requires medical or mental 
        health care; or 
           (5) an individual makes an error in the provision of 
        therapeutic conduct to a vulnerable adult that results in injury 
        or harm, which reasonably requires the care of a physician, and: 
           (i) the necessary care is provided in a timely fashion as 
        dictated by the condition of the vulnerable adult; 
           (ii) if after receiving care, the health status of the 
        vulnerable adult can be reasonably expected, as determined by 
        the attending physician, to be restored to the vulnerable 
        adult's preexisting condition; 
           (iii) the error is not part of a pattern of errors by the 
        individual; 
           (iv) if in a facility, the error is immediately reported as 
        required under section 626.557, and recorded internally in the 
        facility; 
           (v) if in a facility, the facility identifies and takes 
        corrective action and implements measures designed to reduce the 
        risk of further occurrence of this error and similar errors; and 
           (vi) if in a facility, the actions required under items 
        (iv) and (v) are sufficiently documented for review and 
        evaluation by the facility and any applicable licensing, 
        certification, and ombudsman agency. 
           (d) Nothing in this definition requires a caregiver, if 
        regulated, to provide services in excess of those required by 
        the caregiver's license, certification, registration, or other 
        regulation. 
           (e) If the findings of an investigation by a lead agency 
        result in a determination of substantiated maltreatment for the 
        sole reason that the actions required of a facility under 
        paragraph (c), clause (5), item (iv), (v), or (vi), were not 
        taken, then the facility is subject to a correction order.  An 
        individual will not be found to have neglected or maltreated the 
        vulnerable adult based solely on the facility's not having taken 
        the actions required under paragraph (c), clause (5), item (iv), 
        (v), or (vi).  This must not alter the lead agency's 
        determination of mitigating factors under section 626.557, 
        subdivision 9c, paragraph (c). 
           Sec. 47.  [INSTRUCTION TO REVISOR.] 
           The revisor of statutes shall change "sections 525.54 to 
        525.61" to "sections 524.5-101 to 524.5-502" in the following 
        sections of Minnesota Statutes:  146A.03, subdivision 6; 
        146A.09, subdivision 6; 147.111, subdivision 6; 147A.14, 
        subdivision 6; 148.102, subdivision 4; 148.262, subdivision 2; 
        148.263, subdivision 5; 148B.07, subdivision 6; 148B.175, 
        subdivision 8; 148B.281, subdivision 9; 148B.283, subdivision 7; 
        148B.63, subdivision 6; 148B.69, subdivision 5; 148C.091, 
        subdivision 4; 150A.13, subdivision 6; and 153.24, subdivision 5.
           Presented to the governor March 25, 2004 
           Signed by the governor March 26, 2004, 7:05 p.m.

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