1.1 	A bill for an act
1.2 	relating to shoreland; Minnesota Common Interest
1.3 	Ownership Act; requiring county review and approval of
1.4 	subdivisions; amending Minnesota Statutes 2004,
1.5 	section 515B.2-112.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 515B.2-112, is
1.8 	amended to read:
1.9 	515B.2-112 SUBDIVISION OR CONVERSION OF UNITS.
1.10 	(a) If the declaration so provides, (i) a unit owned by a
1.11 	person other than a declarant may be subdivided into two or more
1.12 	units, or (ii) a unit owned by a declarant may be subdivided or
1.13 	converted into two or more units, limited common elements,
1.14 	common elements, or a combination of units, limited common
1.15 	elements or common elements, subject to subsections
1.16 	(b) ~~and~~ ,(c), and (d).
1.17 	(b) If a unit is owned by a unit owner other than a
1.18 	declarant, the unit owner shall prepare and submit to the
1.19 	association for approval an application for an amendment to the
1.20 	declaration and amended CIC plat, for the purpose of subdividing
1.21 	the unit.  The application shall contain, at a minimum, a
1.22 	general description of the proposed subdivision, and shall
1.23 	specify in detail the matters required by paragraphs (2) and
1.24 	(3).  The association shall establish fair and reasonable
1.25 	procedures and time frames for the submission and prompt
2.1 	processing of the applications.  If the application is approved,
2.2 	the unit owner shall cause an amendment and amended CIC plat to
2.3 	be prepared based upon the approved application.  The amendment
2.4 	shall:
2.5 	(1) be executed by the unit owner and any secured party
2.6 	with respect to the unit;
2.7 	(2) assign a unit identifier to each unit created;
2.8 	(3) reallocate the common element interest, votes in the
2.9 	association, and common expense liability formerly allocated to
2.10 	the unit among the units created on the basis described in the
2.11 	declaration;
2.12 	(4) contain such other provisions as may be reasonably
2.13 	required by the association; and
2.14 	(5) conform to the requirements of the declaration and this
2.15 	chapter.  The basis for disapproval shall be limited to (i)
2.16 	structural or safety considerations, (ii) liability
2.17 	considerations for the association and other unit owners, (iii)
2.18 	aesthetic considerations if the changes affect exterior portions
2.19 	of a structure, or (iv) a failure to comply with the
2.20 	declaration, this chapter, or governmental laws, ordinances or
2.21 	regulations.  The association shall give written notice of its
2.22 	decision and/or required changes to the unit owner.  If the
2.23 	amendment conforms to the application, the declaration and this
2.24 	chapter, the association shall be obligated to execute the
2.25 	amendment and cooperate in its recording.  The unit owner shall
2.26 	record the amendment and the amended CIC plat and deliver a copy
2.27 	of the recorded amendment and amended CIC plat to the
2.28 	association.  The association may require the unit owners
2.29 	executing the amendment to pay all fees and costs for reviewing,
2.30 	preparing and recording the amendment and the amended CIC plat,
2.31 	and any other fees or costs incurred by the association in
2.32 	connection therewith.
2.33 	(c) If a unit is owned by a declarant, the declarant shall
2.34 	prepare and record at its expense an amendment and amended CIC
2.35 	plat subdividing or converting the unit.  The amendment shall
2.36 	comply with the requirements of subsection (b)(1), (2), (3) and
3.1 	(5), and shall be limited to those provisions necessary to
3.2 	accomplish the subdivision or conversion unless the consent of
3.3 	unit owners required to amend the declaration is obtained.
3.4 	(d) Before recording the amendment and amended CIC plat
3.5 	which subdivides or converts a unit that affects shoreland, as
3.6 	defined in section 103F.205, subdivision 4, a unit owner must
3.7 	submit the proposed subdivision or conversion to the county
3.8 	where the unit is located for review and approval.
3.9 	(e) If a secured party joins in the amendment pursuant to
3.10 	this section, its interest and remedies shall be deemed to apply
3.11 	to the units and the common element interests that result from
3.12 	the subdivision or conversion of the unit.  If the secured party
3.13 	enforces any remedy, including foreclosure of its lien, against
3.14 	any of the units created, all instruments and notices shall
3.15 	describe the subject property in terms of the amended
3.16 	descriptions.