Section 1. Deputy registrar reimbursement. This section establishes a reimbursement grant for deputy registrars. A deputy registrar that accepts a grant must agree to release the state from liability or claims relating to MNLARS. The state must indemnify a deputy registrar from claims brought against the deputy registrar relating to MNLARS transactions.

Subd. 1. Appropriation. Appropriates $13 million in fiscal year 2019 from the general fund to the commissioner of management and budget (“commissioner”) for grants to deputy registrars under this section. The commissioner must use existing resources to administer the reimbursements.

Subd. 2. Eligibility. A deputy registrar office operated by the state is not eligible for a grant under this section.

Subd. 3. Grant calculation. The grant to each deputy registrar is calculated as follows: (1) 10 percent of the funds are allocated equally to all deputy registrars; (2) 45 percent of the funds are allocated proportionally based on the number of transactions where a filing fee is retained by a deputy registrar from August 1, 2017, through January 31, 2018, compared to the total number of transactions where a filing fee is retained by all deputy registrars in the same time period; (3) 45 percent of the funds are allocated proportionally based on the number of transactions where a filing fee is retained by a deputy registrar from July 1, 2014, through June 30, 2017, compared to the total number of transactions where a filing fee is retained by all deputy registrars in that time period.

Subd. 4. Grant distribution. Within 30 days of enactment, the commissioner must notify each deputy registrar of the amount the deputy registrar is eligible to receive. In order to receive the grant, the deputy registrar must: (1) request disbursement of the grant; and (2) agree to release and hold harmless the state from liability or claims relating to MNLARS. The request and release must be submitted by June 30, 2019. Funds not distributed under this section must not be distributed and cancel back to the general fund.

Subd. 5. State liability limitations. The creation or payment of grants under this section is not an admission of liability by the state for any act or omission arising from MNLARS. Further, the creation or payment of grants is not admissible in a judicial or administrative proceeding to establish liability or a legal duty.

Subd. 6. Indemnification. The state must indemnify any deputy registrar acting in good faith and in their official capacity against any claim related to MNLARS transactions. The deputy registrar must cooperate with the state in any claim subject to this subdivision. A deputy registrar must notify the state as soon as possible about any potential or pending litigation.

Subdivisions 1 to 5 are effective the day following final enactment. Subdivision 6 is effective the day following final enactment and applies to causes of action arising on or after July 1, 2017, but before January 1, 2022.

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