1.1                          A bill for an act 
  1.2             relating to housing warranties; adding attorney fees 
  1.3             to damages for breach of new home and home improvement 
  1.4             warranties; amending Minnesota Statutes 2000, section 
  1.5             327A.05, subdivisions 1, 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 327A.05, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [NEW HOME WARRANTIES.] Upon breach of any 
  1.10  warranty imposed by section 327A.02, subdivision 1, the vendee 
  1.11  shall have a cause of action against the vendor for damages 
  1.12  arising out of the breach, or for specific performance.  Damages 
  1.13  shall be limited to: 
  1.14     (a) The amount necessary to remedy the defect or breach, 
  1.15  plus reasonable attorney fees; or 
  1.16     (b) The difference between the value of the dwelling 
  1.17  without the defect and the value of the dwelling with the 
  1.18  defect, plus reasonable attorney fees. 
  1.19     Sec. 2.  Minnesota Statutes 2000, section 327A.05, 
  1.20  subdivision 2, is amended to read: 
  1.21     Subd. 2.  [HOME IMPROVEMENT WARRANTY.] Upon breach of any 
  1.22  warranty imposed by section 327A.02, subdivision 3, the owner 
  1.23  shall have a cause of action against the home improvement 
  1.24  contractor for damages arising out of the breach, or for 
  1.25  specific performance.  Damages shall be limited to the amount 
  2.1   necessary to remedy the defect or breach, plus reasonable 
  2.2   attorney fees. 
  2.3      Sec. 3.  [EFFECTIVE DATE; APPLICATION.] 
  2.4      Sections 1 and 2 are effective August 1, 2002, and apply to 
  2.5   actions arising from incidents occurring on or after that date.