1.1                          A bill for an act 
  1.2             relating to landlords and tenants; providing for 
  1.3             assignment of certain eviction actions to city 
  1.4             attorney; providing for interest rates on security 
  1.5             deposits; amending Minnesota Statutes 2002, sections 
  1.6             504B.171, subdivision 2; 504B.178, subdivision 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 504B.171, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [BREACH VOIDS RIGHT TO POSSESSION.] A breach of 
  1.11  the covenant created by subdivision 1 voids the tenant's or 
  1.12  licensee's right to possession of the residential premises.  All 
  1.13  other provisions of the lease or license, including but not 
  1.14  limited to the obligation to pay rent, remain in effect until 
  1.15  the lease is terminated by the terms of the lease or operation 
  1.16  of law.  If the tenant or licensee breaches the covenant created 
  1.17  by subdivision 1, the landlord may bring, or assign to the 
  1.18  county or city attorney of the county or city in which the 
  1.19  residential premises are located, the right to bring an eviction 
  1.20  action against the tenant or licensee.  The assignment must be 
  1.21  in writing on a form provided by the county or city attorney, 
  1.22  and the county or city attorney may determine whether to accept 
  1.23  the assignment.  If the county or city attorney accepts the 
  1.24  assignment of the landlord's right to bring an eviction action: 
  1.25     (1) any court filing fee that would otherwise be required 
  1.26  in an eviction action is waived; and 
  2.1      (2) the landlord retains all the rights and duties, 
  2.2   including removal of the tenant's or licensee's personal 
  2.3   property, following issuance of the writ of recovery of premises 
  2.4   and order to vacate and delivery of the writ to the sheriff for 
  2.5   execution. 
  2.6      Sec. 2.  Minnesota Statutes 2002, section 504B.178, 
  2.7   subdivision 2, is amended to read: 
  2.8      Subd. 2.  [INTEREST.] Any deposit of money shall not be 
  2.9   considered received in a fiduciary capacity within the meaning 
  2.10  of section 82.17, subdivision 7, but shall be held by the 
  2.11  landlord for the tenant who is party to the agreement and shall 
  2.12  bear simple noncompounded interest at the rate of three percent 
  2.13  per annum until ~~May 1, 2004~~ August 1, 2003, and ~~four~~ one percent 
  2.14  per annum thereafter, computed from the first day of the next 
  2.15  month following the full payment of the deposit to the last day 
  2.16  of the month in which the landlord, in good faith, complies with 
  2.17  the requirements of subdivision 3 or to the date upon which 
  2.18  judgment is entered in any civil action involving the landlord's 
  2.19  liability for the deposit, whichever date is earlier.  Any 
  2.20  interest amount less than $1 shall be excluded from the 
  2.21  provisions of this section.