1.1                          A bill for an act 
  1.2             relating to agriculture; changing and clarifying 
  1.3             provisions of the warehouse law; amending Minnesota 
  1.4             Statutes 1998, sections 231.01; 231.04; 231.08; 
  1.5             231.09; 231.11; 231.12; 231.13; 231.14; 231.15; 
  1.6             231.16; 231.17; 231.18, subdivisions 1 and 6; 231.24; 
  1.7             231.28; 231.34; 231.36; 231.37; 231.38; and 231.39; 
  1.8             proposing coding for new law in Minnesota Statutes, 
  1.9             chapter 231; repealing Minnesota Statutes 1998, 
  1.10            sections 231.02; 231.03; 231.05; 231.06; 231.07; 
  1.11            231.10; 231.15; and 231.35. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1998, section 231.01, is 
  1.14  amended to read: 
  1.15     231.01 [DEFINITIONS.] 
  1.16     Subdivision 1.  [~~DEPARTMENT~~ SCOPE.] ~~The word "department,"~~ 
  1.17  ~~as used in this chapter, means the Minnesota state department of~~ 
  1.18  ~~agriculture.~~  The definitions in this section apply to this 
  1.19  chapter. 
  1.20     Subd. 2.  [COMMISSIONER.] ~~The term~~ "Commissioner~~,~~" ~~as used~~ 
  1.21  ~~in this chapter,~~ means the commissioner of agriculture. 
  1.22     Subd. 3.  [~~PERSON~~ COMPENSATION.] ~~The term "person," as used~~ 
  1.23  ~~in this chapter, includes any individual, firm, or~~ 
  1.24  ~~copartnership.~~  "Compensation" means any remuneration, 
  1.25  recompense, indemnification, requital, or satisfaction assessed, 
  1.26  collected, or received for the storage or warehousing of goods, 
  1.27  wares, or merchandise of another by a warehouse operator. 
  1.28     Subd. 4.  [CORPORATION.] ~~The term~~ "Corporation~~,~~" ~~as used in~~ 
  2.1   ~~this chapter,~~ includes any corporation, company, association, 
  2.2   joint stock company, or association.  
  2.3      Subd. 5.  [~~WAREHOUSE OPERATOR~~ DEPARTMENT.] ~~The term~~ 
  2.4   ~~"warehouse operator," as used in this chapter, means and~~ 
  2.5   ~~includes every corporation, company, association, joint stock~~ 
  2.6   ~~company or association, firm, partnership, or individual, their~~ 
  2.7   ~~trustees, assignees, or receivers appointed by any court,~~ 
  2.8   ~~controlling, operating, or managing within this state directly~~ 
  2.9   ~~or indirectly, any building or structure, or any part thereof,~~ 
  2.10  ~~or any buildings or structures, or any other property, and using~~ 
  2.11  ~~the same for the storage or warehousing of goods, wares, or~~ 
  2.12  ~~merchandise for compensation, or who shall hold itself out as~~ 
  2.13  ~~being in the storage or warehouse business, or as offering~~ 
  2.14  ~~storage or warehouse facilities, or advertise for, solicit or~~ 
  2.15  ~~accept goods, wares, or merchandise for storage for~~ 
  2.16  ~~compensation, but shall not include persons, corporations, or~~ 
  2.17  ~~other parties operating storage facilities containing minerals,~~ 
  2.18  ~~ores, or rock products such as, but not limited to, aggregates,~~ 
  2.19  ~~clays, railroad ballast, iron ore, copper ore, nickel ore,~~ 
  2.20  ~~limestone, coal, and salt or operating grain or cold storage~~ 
  2.21  ~~warehouses, or storing on a seasonal basis boats, boating~~ 
  2.22  ~~accessories, recreational vehicles or recreational equipment or~~ 
  2.23  ~~facilities in which the party storing goods rents and occupies~~ 
  2.24  ~~space as a tenant and the entire risk of loss is with the tenant~~ 
  2.25  ~~pursuant to written contract between the landlord and tenant.~~  
  2.26  "Department" means the department of agriculture. 
  2.27     Subd. 6.  [~~SERVICE~~ HOUSEHOLD GOODS.] ~~The term "service," as~~ 
  2.28  ~~used in this chapter, is used in its broadest sense and includes~~ 
  2.29  ~~not only the use and occupancy of space for storage purposes,~~ 
  2.30  ~~but also any labor expended, and the use of any equipment,~~ 
  2.31  ~~apparatus, and appliances or any drayage or other facilities,~~ 
  2.32  ~~employed, furnished, or used in connection with the storage of~~ 
  2.33  ~~goods, wares, and merchandise, subject to the provisions of this~~ 
  2.34  ~~chapter.~~  "Household goods" means: 
  2.35     (1) personal effects and property used or to be used in a 
  2.36  dwelling if it is part of the equipment or supply of the 
  3.1   dwelling; 
  3.2      (2) furniture, fixtures, equipment, and the property of 
  3.3   business places and institutions, public or private, when a part 
  3.4   of the stock, equipment, supplies, or property of such 
  3.5   establishments.  It does not mean the storage of property of a 
  3.6   business concern in the usual course of its business activities; 
  3.7      (3) articles which, because of their unusual nature or 
  3.8   value, require specialized handling and equipment customarily 
  3.9   employed in moving household goods. 
  3.10     Subd. 7.  [~~RATE~~ HOUSEHOLD GOODS WAREHOUSE OPERATOR.] ~~The~~ 
  3.11  ~~term "rate," as used in this chapter, includes every individual~~ 
  3.12  ~~or joint rate, charge, or other compensation of every warehouse~~ 
  3.13  ~~operator, either for storage or for any other service furnished~~ 
  3.14  ~~in connection therewith, or any two or more such individual or~~ 
  3.15  ~~joint rates, charges, or other compensations of any warehouse~~ 
  3.16  ~~operator, or any schedule or tariff thereof, and any rule,~~ 
  3.17  ~~regulation, charge, practice, or contract relating thereto.~~  
  3.18  "Household goods warehouse operator" means an individual, 
  3.19  corporation, partnership, or any other business association or 
  3.20  their trustees, assignees, or receivers appointed by a court who 
  3.21  control, operate, or manage, directly or indirectly, a building 
  3.22  or structure or any part of a building or structure in this 
  3.23  state used for the storage or warehousing of household goods for 
  3.24  compensation.  "Household goods warehouse operator" does not 
  3.25  include persons, corporations, or other parties operating 
  3.26  storage facilities for storage on a seasonal basis of boats, 
  3.27  boating accessories, recreational vehicles, or recreational 
  3.28  equipment, or facilities in which the party storing goods rents 
  3.29  and occupies space as a tenant and the entire risk of loss is 
  3.30  with the tenant pursuant to written contract between the 
  3.31  landlord and tenant. 
  3.32     Subd. 8.  [~~COMPENSATION~~ RATE.] ~~The term "compensation," as~~ 
  3.33  ~~used in this chapter, means any remuneration, recompense,~~ 
  3.34  ~~indemnification, requital, or satisfaction assessed, collected,~~ 
  3.35  ~~or received for the storage or warehousing of goods, wares, or~~ 
  3.36  ~~merchandise of another by a warehouse operator.~~  "Rate" includes 
  4.1   every individual or joint rate, charge, or other compensation of 
  4.2   a household goods warehouse operator, either for storage or for 
  4.3   any other service furnished in connection with storage; any 
  4.4   schedule or tariff of rates, charges, or compensation of a 
  4.5   household goods warehouse operator; and any rule, regulation, 
  4.6   charge, practice, or contract relating to the rates, charges, or 
  4.7   compensation. 
  4.8      Subd. 9.  [~~HOUSEHOLD GOODS~~ SERVICE.] ~~"Household goods"~~ 
  4.9   ~~means:~~ 
  4.10     ~~(a) personal effects and property used or to be used in a~~ 
  4.11  ~~dwelling if it is part of the equipment or supply of the~~ 
  4.12  ~~dwelling;~~ 
  4.13     ~~(b) furniture, fixtures, equipment, and the property of~~ 
  4.14  ~~business places and institutions, public or private, when a part~~ 
  4.15  ~~of the stock, equipment, supplies, or property of such~~ 
  4.16  ~~establishments.  It does not mean the storage of property of a~~ 
  4.17  ~~business concern in the usual course of its business activities;~~ 
  4.18     ~~(c) articles which, because of their unusual nature or~~ 
  4.19  ~~value, require specialized handling and equipment customarily~~ 
  4.20  ~~employed in moving household goods.~~ "Service" is used in its 
  4.21  broadest sense and includes not only the use and occupancy of 
  4.22  space for storage purposes, but also any labor expended, and the 
  4.23  use of any equipment, apparatus, and appliances or any drayage 
  4.24  or other facilities employed, furnished, or used in connection 
  4.25  with the storage of goods, wares, and merchandise subject to 
  4.26  this chapter.  
  4.27     Subd. 10.  [WAREHOUSE OPERATOR.] "Warehouse operator" means 
  4.28  a corporation, company, association, joint stock company or 
  4.29  association, firm, partnership, or individual and their 
  4.30  trustees, assignees, or receivers appointed by any court, that 
  4.31  directly or indirectly controls, operates, or manages within 
  4.32  this state one or more buildings or structures, any part thereof 
  4.33  of a building or structure, or any other property which is used 
  4.34  for the storage or warehousing of goods, wares, business or 
  4.35  other records, or merchandise for compensation, or who holds 
  4.36  itself out as being in the storage or warehouse business or as 
  5.1   offering storage or warehouse facilities, or who advertises for, 
  5.2   solicits, or accepts goods, wares, business or other records, or 
  5.3   merchandise for storage for compensation.  "Warehouse operator" 
  5.4   does not include household goods warehouse operators or persons, 
  5.5   corporations, or other parties operating storage facilities 
  5.6   containing minerals, ores, or rock products such as, but not 
  5.7   limited to, aggregates, clays, railroad ballast, iron ore, 
  5.8   steel, aluminum, copper ore, nickel ore, limestone, coal, and 
  5.9   salt or operating grain warehouses, or storing on a seasonal 
  5.10  basis boats, boating accessories, recreational vehicles, or 
  5.11  recreational equipment or facilities in which the party storing 
  5.12  goods rents and occupies space as a tenant and the entire risk 
  5.13  of loss is with the tenant pursuant to written contract between 
  5.14  the landlord and tenant or provided by a railroad or common 
  5.15  carrier. 
  5.16     Sec. 2.  [231.035] [INSPECTION AUTHORITY.] 
  5.17     The commissioner or the commissioner's designee may, upon 
  5.18  presentation of appropriate credentials and during regular 
  5.19  working hours or at other reasonable times, inspect premises 
  5.20  including equipment and stored goods subject to and for reasons 
  5.21  relating to the commissioner's enforcement and licensing 
  5.22  authority; request information from persons with information 
  5.23  relevant to an inspection; and inspect relevant papers and 
  5.24  records relating to the storage of goods. 
  5.25     Sec. 3.  Minnesota Statutes 1998, section 231.04, is 
  5.26  amended to read: 
  5.27     231.04 [DEPARTMENT TO ENFORCE WAREHOUSE LAW.] 
  5.28     ~~It is hereby made a duty of~~ The department ~~to~~ shall see 
  5.29  that the provisions of the constitution and the statutes of this 
  5.30  state affecting warehouse operators or household goods warehouse 
  5.31  operators, the enforcement of which is not specifically vested 
  5.32  in some other officer or tribunal, are enforced and obeyed, that 
  5.33  violations thereof are promptly prosecuted, and that penalties 
  5.34  due the state therefor are recovered and collected; and, to this 
  5.35  end, it may sue in the name of the state.  
  5.36     Sec. 4.  Minnesota Statutes 1998, section 231.08, is 
  6.1   amended to read: 
  6.2      231.08 [WHAT IS REQUIRED OF WAREHOUSE OPERATORS AND 
  6.3   HOUSEHOLD GOODS WAREHOUSE OPERATORS.] 
  6.4      Subdivision 1.  [TO FURNISH INFORMATION.] Every warehouse 
  6.5   operator and household goods warehouse operator shall furnish 
  6.6   all information required by the department to ~~carry into effect~~ 
  6.7   ~~the provisions of~~ administer this chapter and make specific 
  6.8   answers to all questions submitted by the department, under 
  6.9   oath~~; and if such~~.  A warehouse operator or household goods 
  6.10  warehouse operator which is a corporation~~, it~~ shall answer under 
  6.11  the oath of one of its duly authorized officers. 
  6.12     ~~Every~~ A warehouse operator or household goods warehouse 
  6.13  operator shall obey and comply with ~~each and every requirement~~ 
  6.14  ~~of~~ every order, decision, direction, or rule made or prescribed 
  6.15  by the department in the matters specified in this chapter; and 
  6.16  do everything necessary or proper to secure the compliance with 
  6.17  and the observance of the same, by all its officers, agents, and 
  6.18  employees. 
  6.19     Subd. 2.  [RIGHTS NOT LIMITED.] Nothing in this chapter 
  6.20  shall be construed as limiting the rights of any warehouse 
  6.21  operator or household goods warehouse operator to lease or let 
  6.22  for any storage purpose any ~~floor~~ portion of a building ~~or any~~ 
  6.23  ~~portion thereof~~.  ~~Any warehouse operator who so leases any~~ 
  6.24  ~~portion or portions of a warehouse shall first file with the~~ 
  6.25  ~~department a schedule showing the rates for such spaces and the~~ 
  6.26  ~~monthly rental per square foot or per cubic foot.~~ 
  6.27     Sec. 5.  Minnesota Statutes 1998, section 231.09, is 
  6.28  amended to read: 
  6.29     231.09 [OBLIGATION TO ISSUE UNIFORM RECEIPTS.] 
  6.30     ~~Every~~ A warehouse operator receiving goods in store shall 
  6.31  issue for ~~all such~~ the goods a receipt embodying the terms of 
  6.32  such receipts as authorized by article 7 of the Uniform 
  6.33  Commercial Code.  Receipts or records of storage in electronic 
  6.34  form are acceptable. 
  6.35     Sec. 6.  Minnesota Statutes 1998, section 231.11, is 
  6.36  amended to read: 
  7.1      231.11 [SCHEDULE OF RATES; STORING HOUSEHOLD GOODS.] 
  7.2      In order to ~~insure~~ ensure nondiscriminatory rates and 
  7.3   charges for all depositors of household goods, the commissioner 
  7.4   shall establish a collective rate-making procedure which 
  7.5   will ~~insure~~ ensure the publication and maintenance of just and 
  7.6   reasonable rates and charges under uniform, reasonably related 
  7.7   rate structures.  These procedures ~~shall~~ must provide for the 
  7.8   joint consideration, initiation, and establishment of rates and 
  7.9   charges~~,~~ and ~~shall assure~~ ensure that the respective revenues 
  7.10  and expenses of household goods warehouse operators ~~engaged in~~ 
  7.11  ~~warehouse services for household goods~~ are ascertained.  Any 
  7.12  participating household goods warehouse operator party to a 
  7.13  collectively mandated rate or charge has the right to petition 
  7.14  the commissioner for the establishment of a rate or charge which 
  7.15  deviates from the collectively set rate.  Upon receiving the 
  7.16  commissioner's approval, that household goods warehouse operator 
  7.17  may proceed to establish the requested rate or charge.  
  7.18  All household goods warehouse operators subject to rate 
  7.19  regulation under this chapter must comply with the 
  7.20  commissioner's rate-making procedures.  No household goods 
  7.21  warehouse operator shall undertake to perform any service or 
  7.22  store any household goods until a schedule of rates has been 
  7.23  filed and published in accordance with this chapter.  In case of 
  7.24  emergency, however, a service or storage not specifically 
  7.25  covered by the schedules filed, may be performed or furnished at 
  7.26  a reasonable rate, which must then be promptly filed, and which 
  7.27  is subject to review in accordance with this chapter.  
  7.28     Sec. 7.  Minnesota Statutes 1998, section 231.12, is 
  7.29  amended to read: 
  7.30     231.12 [CHANGE OF RATES; STORING HOUSEHOLD GOODS.] 
  7.31     Unless the department otherwise orders, no household goods 
  7.32  warehouse operator ~~storing household goods~~ may change any rate 
  7.33  except after ten days' notice to the department and to the 
  7.34  public pursuant to this section.  Notice ~~shall~~ must be given by 
  7.35  filing with the department and keeping open for public 
  7.36  inspection new schedules or supplements stating plainly the 
  8.1   changes to be made in the schedules then in force and the time 
  8.2   when the changes will go into effect.  The department for good 
  8.3   cause shown, may, after hearing, allow changes without requiring 
  8.4   the ten days' notice by an order specifying the changes to be 
  8.5   made, the time when they shall take effect, and the manner in 
  8.6   which they shall be filed and published.  
  8.7      Sec. 8.  Minnesota Statutes 1998, section 231.13, is 
  8.8   amended to read: 
  8.9      231.13 [CHARGING MORE OR LESS THAN THE PUBLISHED RATE; 
  8.10  STORING HOUSEHOLD GOODS.] 
  8.11     Except as specified in sections 231.11 and 231.12, no 
  8.12  household goods warehouse operator ~~storing household goods~~ shall 
  8.13  have, demand, collect, or receive, a ~~greater or less or~~ 
  8.14  different compensation for any service rendered or for storing 
  8.15  any household goods than the rates applicable to ~~such~~ that 
  8.16  service or storage, as specified in the schedules of rates on 
  8.17  file with the commissioner and in effect at the time.  
  8.18     ~~When~~ If a household goods warehouse operator ~~shall have~~ 
  8.19  has had household goods in store ~~for such a period~~ so long that 
  8.20  the storage charges ~~thereon~~ accumulated on them are more than 
  8.21  ~~such~~ the household goods would bring at a forced sale, the 
  8.22  department, upon written application and proof thereof, may 
  8.23  authorize ~~such~~ the household goods warehouse operator to 
  8.24  compromise ~~such~~ the charges for a sum not less than the amount 
  8.25  which ~~such~~ the household goods would bring at ~~such~~ a forced 
  8.26  sale.  
  8.27     Sec. 9.  Minnesota Statutes 1998, section 231.14, is 
  8.28  amended to read: 
  8.29     231.14 [DISCRIMINATION IN RATES; STORING HOUSEHOLD GOODS.] 
  8.30     Except as herein otherwise specified, no household goods 
  8.31  warehouse operator ~~storing household goods~~, or any officer, 
  8.32  agent, or employee thereof, shall, directly or indirectly, by 
  8.33  remittance, rebate, or any device, inducement, or other means, 
  8.34  ~~suffer or~~ permit any corporation or person to obtain any 
  8.35  service~~,~~ or the storage of any household goods at less than the 
  8.36  rates then established and in force as shown by the schedule of 
  9.1   rates filed and in effect at the time.  No person or corporation 
  9.2   shall, directly or indirectly, by any device, inducement, or 
  9.3   means, either with or without the consent or connivance of 
  9.4   a household goods warehouse operator ~~storing household goods~~, or 
  9.5   any of the officers, agents, or employees thereof, obtain, or 
  9.6   seek to obtain, any service, or the storage of any household 
  9.7   goods at less than the rates then established and in force 
  9.8   therefor.  Any household goods warehouse operator ~~storing~~ 
  9.9   ~~household goods~~, or the officers, agents, or employees thereof, 
  9.10  or any person acting for or employed by it~~,~~ or transacting 
  9.11  business with it, or any other person, who ~~shall violate any~~ 
  9.12  ~~provision of~~ violates this section, ~~shall be~~ is guilty of a 
  9.13  gross misdemeanor~~;~~ and is, upon conviction, subject to 
  9.14  imprisonment not exceeding one year or to a fine not exceeding 
  9.15  $3,000, or both.  
  9.16     Sec. 10.  Minnesota Statutes 1998, section 231.15, is 
  9.17  amended to read: 
  9.18     231.15 [DEPARTMENT TO FIX RATES AND RULES; STORAGE OF 
  9.19  HOUSEHOLD GOODS.] 
  9.20     ~~When~~ If the department after a hearing upon its own motion, 
  9.21  or upon complaint finds that the rates demanded, observed, 
  9.22  charged, or collected by ~~any warehouse operator~~ a household 
  9.23  goods warehouse operator for or in connection with any service 
  9.24  or storage of goods, wares, or merchandise~~, or in connection~~ 
  9.25  ~~with such service or storage,~~ are unjust, unreasonable, 
  9.26  discriminatory, preferential, or ~~in any wise in violation of any~~ 
  9.27  ~~provision of law~~ otherwise illegal, the department shall 
  9.28  determine the just and reasonable rates to be thereafter 
  9.29  effective and in force ~~in such~~ for that household goods 
  9.30  warehouse operator and fix the ~~same~~ rates by an order, which 
  9.31  shall determine when ~~such~~ the rates ~~shall~~ go into effect.  
  9.32  Before ~~making any~~ an order is issued under ~~the provisions of~~ 
  9.33  this section, the household goods warehouse operator shall have 
  9.34  an opportunity to be heard upon reasonable notice to be 
  9.35  determined by the department.  
  9.36     Sec. 11.  Minnesota Statutes 1998, section 231.16, is 
 10.1   amended to read: 
 10.2      231.16 [WAREHOUSE OPERATOR OR HOUSEHOLD GOODS WAREHOUSE 
 10.3   OPERATOR TO OBTAIN LICENSE.] 
 10.4      ~~Every person desiring to engage in the business of~~ A 
 10.5   warehouse operator~~, before engaging therein, shall~~ or household 
 10.6   goods warehouse operator must be licensed annually by~~, and shall~~ 
 10.7   ~~be under the supervision and subject to the inspection of,~~ the 
 10.8   department.  The department shall prescribe the form of the 
 10.9   written application.  ~~in the form prescribed by the department~~ 
 10.10  ~~shall be made to the department for license, specifying the city~~ 
 10.11  ~~in which it is proposed to carry on the business of warehousing,~~ 
 10.12  ~~the location, size, character, and equipment of the buildings or~~ 
 10.13  ~~premises to be used by the warehouse operator, the kind of~~ 
 10.14  ~~goods, wares, and merchandise intended to be stored therein, the~~ 
 10.15  ~~name of the person or corporation operating the same, and of~~ 
 10.16  ~~each member of the firm or officer of the corporation, and any~~ 
 10.17  ~~other facts necessary to satisfy the department that the~~ 
 10.18  ~~property proposed to be used is suitable for warehouse purposes~~ 
 10.19  ~~and that the warehouse operator making the application is~~ 
 10.20  ~~qualified to carry on the business of warehousing.  Should~~ If 
 10.21  the department ~~decide that the building or other property~~ 
 10.22  ~~proposed to be used as a warehouse is suitable for the proposed~~ 
 10.23  ~~purpose and that the applicants are entitled to a license,~~ 
 10.24  ~~notice of the decision shall be given the interested parties~~ 
 10.25  ~~and, upon the applicants filing~~ approves the license application 
 10.26  and the applicant files with the department the necessary 
 10.27  bond, in the case of household goods warehouse operators, or 
 10.28  proof of warehouse operators legal liability insurance coverage 
 10.29  in an amount of $50,000 or more, as provided for in this 
 10.30  chapter, the department shall issue the license ~~provided for,~~ 
 10.31  upon payment of the license fee~~, as~~ required in this section 
 10.32  ~~provided~~.  A warehouse operator or household goods warehouse 
 10.33  operator to whom a license is issued shall pay ~~for the license~~ a 
 10.34  fee ~~based on the storage capacity of the warehouse~~ as follows:  
 10.35                 ~~Storage capacity in square feet~~ 
 10.36         Building square footage used for public storage 
 11.1               (1) 5,000 or less               $ 80     
 11.2               (2) 5,001 to 10,000             $155 
 11.3               (3) 10,001 to 20,000            $250 
 11.4               (4) 20,001 to 100,000           $315     
 11.5               (5) 100,001 to 200,000          $410 
 11.6               (6) over 200,000                $470 
 11.7      Fees collected under this chapter ~~shall~~ must be paid into 
 11.8   the grain buyers and storage fund established in section 232.22. 
 11.9      The license ~~shall~~ must be renewed annually on or before 
 11.10  July 1, and always upon payment of the full license fee~~, as~~ 
 11.11  ~~provided for~~ required in this section ~~for such renewal; and~~.  No 
 11.12  license shall be issued for any portion of a year for less than 
 11.13  the full amount of the license fee~~, as provided for~~ required in 
 11.14  this section.  Each license obtained under this chapter ~~shall~~ 
 11.15  must be publicly displayed in the main office of the place of 
 11.16  business of the warehouse operator or household goods warehouse 
 11.17  operator to whom it is issued.  The license ~~shall authorize~~ 
 11.18  authorizes the warehouse operator or household goods warehouse 
 11.19  operator to carry on the business of warehousing only in the one 
 11.20  city or town named in the application and in the buildings 
 11.21  therein described.  The department, without requiring an 
 11.22  additional bond and license, may issue permits from time to time 
 11.23  to any warehouse operator already duly licensed under the 
 11.24  provisions of this chapter to operate an additional warehouse in 
 11.25  the same city or town for which the original license was issued 
 11.26  during the term thereof, upon the filing an application for a 
 11.27  permit in the form prescribed by the department. 
 11.28     A license may be refused for good cause shown and revoked 
 11.29  by the department for violation of law or of any rule adopted by 
 11.30  ~~it prescribed~~ the department, upon notice and after hearing. 
 11.31     Sec. 12.  Minnesota Statutes 1998, section 231.17, is 
 11.32  amended to read: 
 11.33     231.17 [BONDS OF WAREHOUSE OPERATORS; LEGAL LIABILITY 
 11.34  INSURANCE.] 
 11.35     Every warehouse operator applying for and receiving a 
 11.36  license from the department~~, as provided for in~~ under this 
 12.1   chapter~~,~~ shall file with the department, acceptable to the 
 12.2   department, a surety bond to the state of Minnesota.  ~~Such~~ Bonds 
 12.3   ~~shall~~ must be in ~~an~~ the amount ~~to be determined by the~~ 
 12.4   ~~department as reasonable for the applicant but shall not be less~~ 
 12.5   ~~than~~ of $10,000. 
 12.6      ~~The commissioner shall, after a study of the existing~~ 
 12.7   ~~bonding structure and after consultation with the warehousing~~ 
 12.8   ~~industry, adopt rules for bonding.  The rules must be adopted by~~ 
 12.9   ~~April 1, 1994.~~ 
 12.10     The bond ~~shall~~ must be conditioned for the faithful 
 12.11  discharge of all duties as a household goods warehouse operator 
 12.12  operating under this chapter~~,~~ and full compliance with the laws 
 12.13  of the state and rules and orders of the department ~~relative~~ 
 12.14  ~~thereto~~.  Failure to maintain the bond as required shall void 
 12.15  the license.  
 12.16     The bond must be continuous until canceled.  To cancel a 
 12.17  bond, the surety must provide 90 days' written notice of the 
 12.18  bond's termination date to the licensee and the department. 
 12.19     In lieu of the bond required by this section, the applicant 
 12.20  may deposit with the state treasurer cash; a certified check; a 
 12.21  cashier's check; a postal, bank, or express money order; 
 12.22  assignable bonds or notes of the United States; or an assignment 
 12.23  of bank savings account or investment certificate or an 
 12.24  irrevocable bank letter of credit as defined in section 
 12.25  336.5-103, in the same amount as would be required for a bond. 
 12.26     In lieu of the bond required by this section, a warehouse 
 12.27  operator that does not provide for the storage of household 
 12.28  goods may provide proof of legal liability insurance coverage in 
 12.29  the amount of $50,000 or more.  A warehouse operator must notify 
 12.30  the department with written notice of the cancellation of the 
 12.31  policy.  If the policy is terminated without notification to the 
 12.32  department, the warehouse operator is subject to penalties under 
 12.33  section 231.39. 
 12.34     Sec. 13.  Minnesota Statutes 1998, section 231.18, 
 12.35  subdivision 1, is amended to read: 
 12.36     Subdivision 1.  [FILING A CLAIM.] A depositor claiming to 
 13.1   be damaged by the breach of an agreement to store ~~general~~ 
 13.2   ~~merchandise and~~ household goods must file a claim with the 
 13.3   department within 180 days of the date of breach. 
 13.4      Sec. 14.  Minnesota Statutes 1998, section 231.18, 
 13.5   subdivision 6, is amended to read: 
 13.6      Subd. 6.  [BOND DISBURSEMENT.] (a) Upon expiration of the 
 13.7   claim filing period, the department shall promptly determine the 
 13.8   validity of all claims filed and notify the claimants of the 
 13.9   determination.  An aggrieved party may appeal the department's 
 13.10  determination by requesting, within 15 days, that the department 
 13.11  initiate a contested case proceeding.  In the absence of such a 
 13.12  request, or following the issuance of a final order in a 
 13.13  contested case, the surety company shall issue payment promptly 
 13.14  to those claimants entitled to payment. 
 13.15     (b) If a household goods warehouse operator has become 
 13.16  liable to more than one depositor by reason of breaches of the 
 13.17  conditions of the bond and the amount of the bond is 
 13.18  insufficient to pay the entire liability to all depositors 
 13.19  entitled to the protection of the bond, the proceeds of the bond 
 13.20  shall be apportioned among the bona fide claimants. 
 13.21     Sec. 15.  Minnesota Statutes 1998, section 231.24, is 
 13.22  amended to read: 
 13.23     231.24 [COMPLAINT THAT RATE IS UNREASONABLE; DUTY OF 
 13.24  DEPARTMENT.] 
 13.25     Upon verified complaint of any person or of any corporation 
 13.26  that any rates of a household goods warehouse operator are 
 13.27  unjust, unreasonable, discriminatory, preferential, or in any 
 13.28  way in violation of law, the department shall proceed to 
 13.29  investigate the matters alleged in such complaint; and, for the 
 13.30  purposes of such investigation, they may require the attendance 
 13.31  of witnesses and the production of books, papers, and 
 13.32  documents.  If, upon the hearing, such rates are found to be 
 13.33  unjust, unreasonable, discriminatory, preferential, or in any 
 13.34  way in violation of law, the department shall make an order, 
 13.35  stating wherein the same are so unjust, unreasonable, 
 13.36  discriminatory, preferential, or in any way in violation of law, 
 14.1   and make rates which shall be substituted for those as to which 
 14.2   complaint is made.  Rates so made by the department shall be 
 14.3   deemed prima facie reasonable in all courts, and shall be in 
 14.4   full force during the pendency of any appeal or other 
 14.5   proceedings to review the action of the department in 
 14.6   establishing the same.  
 14.7      Sec. 16.  Minnesota Statutes 1998, section 231.28, is 
 14.8   amended to read: 
 14.9      231.28 [FAILURE TO OBEY ORDER OR LAW.] 
 14.10     ~~When any~~ If a warehouse operator ~~shall fail~~ or household 
 14.11  goods warehouse operator fails to obey any law of this state~~,~~ or 
 14.12  any order of the department, the department may, upon verified 
 14.13  petition alleging such failure, apply to the district court of 
 14.14  the county in which the ~~warehouse~~ operator's principal place of 
 14.15  business is located~~,~~ for the enforcement of such law or order~~,~~ 
 14.16  or other appropriate relief.  The court, upon such notice as it 
 14.17  may direct, shall hear such matter as in case of an appeal from 
 14.18  an order.  On the hearing, the findings of fact upon which the 
 14.19  order is based shall be prima facie evidence of the merits 
 14.20  therein stated, and the court may grant any provisional or other 
 14.21  relief, ordinary or extraordinary, legal or equitable, which the 
 14.22  nature of the case may require, and may impose a fine of not 
 14.23  more than $50 for each day's failure to obey any writ, process, 
 14.24  or order of the court, in addition to all other penalties or 
 14.25  forfeitures provided by law.  A temporary mandatory or 
 14.26  restraining order may be made in such proceedings, 
 14.27  notwithstanding any undetermined issue of fact, upon such terms 
 14.28  as to security as the court may direct.  
 14.29     Sec. 17.  Minnesota Statutes 1998, section 231.34, is 
 14.30  amended to read: 
 14.31     231.34 [ACTION ON BOND IN THE NAME OF THE STATE.] 
 14.32     ~~When any one~~ If a licensed ~~to do business as a public~~ 
 14.33  household goods warehouse operator fails to perform a duty~~,~~ or 
 14.34  violates ~~any of the provisions of~~ this chapter, any person or 
 14.35  corporation injured by such failure or violation may, with the 
 14.36  consent of the department and the attorney general, bring an 
 15.1   action in the name of the state, but to the person's or 
 15.2   corporation's own use, in any court of competent jurisdiction on 
 15.3   the bond of ~~such~~ the household goods warehouse operator.  In 
 15.4   such action the person or corporation in whose behalf the action 
 15.5   is brought shall file with the court a satisfactory bond for 
 15.6   costs, and the state shall not be liable for any costs.  
 15.7      Sec. 18.  Minnesota Statutes 1998, section 231.36, is 
 15.8   amended to read: 
 15.9      231.36 [FALSIFICATION OR DESTRUCTION OF ACCOUNTS.] 
 15.10     Any person who shall willfully make any false entry in the 
 15.11  account or in any record or memorandum kept by a warehouse 
 15.12  operator or household goods warehouse operator, or who shall 
 15.13  willfully destroy, mutilate, alter, or by any other means or 
 15.14  device, falsify a record of any such account, record, or 
 15.15  memorandum, or who shall willfully neglect or fail to make full, 
 15.16  true, and correct entries in such accounts, records, or 
 15.17  memoranda, of all facts and transactions appertaining to the 
 15.18  business of the warehouse operator or household goods warehouse 
 15.19  operator, or shall keep any accounts or records with the intent 
 15.20  to evade the provisions of this chapter, ~~shall be~~ is guilty of a 
 15.21  gross misdemeanor~~;~~ and, upon conviction, is subject to 
 15.22  imprisonment not exceeding one year or to a fine not exceeding 
 15.23  $3,000, or both.  
 15.24     Sec. 19.  Minnesota Statutes 1998, section 231.37, is 
 15.25  amended to read: 
 15.26     231.37 [PENALTY FOR DIVULGENCE OF INFORMATION.] 
 15.27     Any officer or employee of the department who divulges to 
 15.28  any person, other than a member of the department, any fact or 
 15.29  information coming to the knowledge of the officer or employee 
 15.30  during the course of an inspection, examination, or 
 15.31  investigation of any accounts, records, memoranda, books, or 
 15.32  papers of a warehouse operator or household goods warehouse 
 15.33  operator, except insofar as may be authorized by the department, 
 15.34  or by a court of competent jurisdiction, or a judge thereof, 
 15.35  ~~shall be~~ is guilty of a gross misdemeanor~~;~~ and, upon conviction, 
 15.36  is subject to imprisonment not exceeding one year or to a fine 
 16.1   not exceeding $3,000, or to both. 
 16.2      Sec. 20.  Minnesota Statutes 1998, section 231.38, is 
 16.3   amended to read: 
 16.4      231.38 [PENALTY FOR TRANSACTING BUSINESS WITHOUT A 
 16.5   LICENSE.] 
 16.6      Any person who shall transact the business of a warehouse 
 16.7   operator or household goods warehouse operator, except for the 
 16.8   purpose of winding up the same under the supervision of the 
 16.9   department, without first procuring a license and giving a 
 16.10  bond or providing proof of insurance as provided for in this 
 16.11  chapter and any licensed warehouse operator or household goods 
 16.12  warehouse operator who shall operate any warehouse without 
 16.13  obtaining the permit herein provided for or who shall continue 
 16.14  to transact such business after such license has expired or the 
 16.15  required insurance has lapsed or such bond may have become void 
 16.16  or found insufficient security for the penal sum in which it is 
 16.17  executed by the department approving the same ~~shall be~~ is guilty 
 16.18  of a gross misdemeanor~~;~~ and, upon conviction, shall be fined in 
 16.19  a sum not less than $100 nor more than $3,000 for each and every 
 16.20  day ~~such~~ the business is carried on before the license or 
 16.21  permit, as the case may be, is issued or after the expiration of 
 16.22  such license or permit or after receiving notice from the 
 16.23  department that ~~such~~ the insurance has lapsed or bond has become 
 16.24  void or has been found insufficient security; and the operation 
 16.25  of such warehouse operator or household goods warehouse operator 
 16.26  may be enjoined upon complaint of the department before a court 
 16.27  of competent jurisdiction.  
 16.28     A warehouse operator or household goods warehouse operator 
 16.29  has 30 days after a license or permit has expired or insurance 
 16.30  has lapsed or bond become void or been found insufficient before 
 16.31  the penalty in this section applies. 
 16.32     Sec. 21.  Minnesota Statutes 1998, section 231.39, is 
 16.33  amended to read: 
 16.34     231.39 [PERSONS VIOLATING ACT OR ORDER; PENALTY.] 
 16.35     Any warehouse operator or household goods warehouse 
 16.36  operator and each person who, either individually or acting as 
 17.1   an officer, agent, or employee of a warehouse operator or 
 17.2   household goods warehouse operator, violates or fails to comply 
 17.3   with any provisions of this chapter, or fails to observe, obey, 
 17.4   or comply with any order, decision, rule, direction, or 
 17.5   requirement or any part or portion thereof of the department 
 17.6   made or issued under authority of this chapter or who procures, 
 17.7   aids, or abets any warehouse operator or household goods 
 17.8   warehouse operator in the violation of this chapter or in the 
 17.9   failure to observe, obey, or comply with this chapter or any 
 17.10  such order, decision, rule, direction, or requirement or any 
 17.11  part or portion thereof in a case in which a penalty is not 
 17.12  otherwise provided for in this chapter is guilty of a gross 
 17.13  misdemeanor~~;~~ and, upon conviction, shall be punished by a fine 
 17.14  not exceeding $3,000 or by imprisonment not exceeding one year 
 17.15  or ~~by~~ both ~~such fine and imprisonment~~.  
 17.16     Each violation of ~~the provisions of~~ this chapter, or of any 
 17.17  order, decision, rule, direction, or requirement of the 
 17.18  department, or any part or portion thereof, by any warehouse 
 17.19  operator or household goods warehouse operator is a separate and 
 17.20  distinct offense.  
 17.21     In construing and enforcing the provisions of this chapter 
 17.22  relating to penalties, the act, omission, or failure of any 
 17.23  officer, agent, or employee of any warehouse operator or 
 17.24  household goods warehouse operator, acting within the scope of 
 17.25  official duties or employment, shall in each case be and be 
 17.26  deemed to be the act, omission, or failure of such warehouse 
 17.27  operator or household goods warehouse operator.  
 17.28     Sec. 22.  [REPEALER.] 
 17.29     Minnesota Statutes 1998, sections 231.02; 231.03; 231.05; 
 17.30  231.06; 231.07; 231.10; 231.15; and 231.35, are repealed.