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S.F. No. 3357 - Judiciary and Civil Law Modifications (as amended by SS3357A-1)
 
Author: Senator Warren Limmer
 
Prepared By: Priyanka Premo, Senate Counsel (651/296-3914)
 
Date: May 4, 2020



 

SF 3357, as amended by SS3357A-1, makes changes to guardianship and conservatorship laws; modifies the Uniform Transfers to Minors Act; amends the Minnesota Common Interest Ownership Act; and modifies provisions related to garnishment.

Article 1 – Guardianships

Article 1 modifies provisions related to guardianship and conservatorships. This article updates terminology, makes clarifying changes, and makes several substantive changes, including the following:

  • Modifies the right to communication and related duties under the Bill of Rights;
  • Creates a new form, “a bill of particulars,” that contains confidential information related to a person’s health and finances;
  • Requires the court to consider and make specific findings related to less restrictive means of assisting a person subject to guardianship or conservatorship, like supported decision making, before appointing a guardian or conservator;
  • Requires notice to interested persons when the person subject to guardianship experiences a significant medical or public safety event, or dies;
  • Authorizes the establishment and administration of an ABLE account;
  • Authorizes a conservator to institute cases for civil court actions;
  • Authorizes a person subject to conservatorship to control their own wages;
  • Authorizes a guardian or conservator to seek a restraining order on behalf of a victim who is a person subject to guardianship or conservatorship;
  • Requires durational limits on guardianships when the person subject to guardianship is under the age of 30, but authorizes a petition for an unlimited guardianship if the person is 29 and currently under a limited guardianship;
  • Places durational limits on emergency guardianships and conservatorships; and
  • Authorizes interested persons to waive notice requirements.

Effective date. August 1, 2020; certain changes apply only to cases commenced on or after that date and certain changes apply to cases commenced before, on, or after that date.

Article 2 – Minor Trusts

Article 2 modifies the Uniform Transfers to Minors Act (UTMA), which governs custodial accounts for transfers of property to minors. Replaces the “prudent person” standard of care with the “prudent investor rule” governing trustees in chapter 501C. Authorizes a custodian to transfer, with or without a court order, all or part of the custodial property to a trust that satisfies the requirements of a minor’s trust described in the Internal Revenue Code. A transfer to a trust terminates the custodianship.  

Changes the termination age of all UTMA accounts to 21 (under current law some accounts terminate at 18). When a terminating event occurs (minor turns 21 or passes away), if there is no custodian serving or the custodian fails to transfer the custodial property to the minor or minor’s estate within 90 days, the minor or minor’s estate may execute an affidavit and supporting documentation and submit it to the person in possession of the custodial property as conclusive proof that the terminating event occurred. A person who transfers the custodial property to the minor or minor’s estate upon receipt of the affidavit and supporting documentation is not liable for the transfer.

Effective date. The day following final enactment.

Article 3 – Common Interest Ownerships

Article 3 amends chapter 515B, the Minnesota Common Interest Ownership Act, which governs the operation of condominium associations and other common interest communities. Provides that unit owners are deemed to have consented or voted in the affirmative for approval of amendments to governing documents if the association sends a notice to the unit owner by certified mail and: (1) if there is a vote, the unit owner does not vote against the amendment; or (2) if consent is requested, the association does not receive the unit owner’s refusal to consent within 60 days after the notice is mailed.

Authorizes the association to petition the court for an order reducing the percentage of affirmative votes or consents necessary to at least 67% for an amendment to declarations, bylaws, and articles of incorporation. The petition must describe: the reason for the amendment; the approval requirements in governing documents; the efforts made to solicit approval of association members; and the number of affirmative and negative votes received. Requires service of the petition and notice of the hearing date upon all members of the association consistent with the Minnesota Rules of Civil Procedure.

Effective date. August 1, 2020.

Article 4 – Garnishment

Article 4 modifies provisions related to wage garnishment under chapter 571, sheriff’s levies under chapter 550, and attorney’s summary executions under chapter 551. Extends the period during which court-ordered garnishment may continue from 70 days to 90 days and authorizes a debtor to retain the greater of 40 times the state minimum wage or federal minimum wage.

Effective date. August 1, 2020; applies to all earnings garnished or levied, or all attorney’s summary execution upon earnings, on or after that date.

 

 
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