>> HOUSE SPEAKER:
THE NEXT BILL ON THE COUNTER FOR THE DAY HIS HOUSE
FILE 1538 THERE IS AN AMENDMENT AT THE DESK. THE CLERK WILL REPORT THE AMENDMENT. >> CHIEF CLERK: HOUSE FILE
NUMBER 1538;
NUMBER FIVE ON THE CALENDAR FOR THE DAY AND ACT RELATING TO REAL PROPERTY
FIRST ENGROSSMENT. >> HOUSE SPEAKER:
REPRESENTATIVE SMITH
>> REPRESENTATIVE SMITH GOING
VERY PROUD OF THIS BILL.
I'D LIKE TO THANK EVERYONE
IN THIS YEAR AND HAVE ODYSSEY OF WORK AND
I'M VERY HAPPY WITH THE SUPPORT US
INCLUDING REPRESENTATIVE NELSON
AS CO-AUTHOR
. I ALSO WOULD LIKE TO THINK THE CITIES
OF SUPPORT THAT ARE
PROVIDED RESOLUTIONS BEING HANDED OUT RIGHT NOW
. INCLUDING; BUT NOT LIMITED TO THE CITY OF
BLOOMINGTON; CHANHASSEN; YOU DINER; GOLDEN
VALLEY; HOPKINS; MAPLE
PLANE; NEWPORT; ST.
ANTHONY VILLAGE; ST. LOUIS PARK; AND WOODBERRY.
ADDITIONALLY; MEMBERS;
MINNESOTA HOUSING OPTIONS COALITION ARE SUPPORTING THIS BILL AMERICAN INSTITUTE
OF ARCHITECTS; ASSOCIATION OF
GENERAL CONTRACTORS;
ASSOCIATION OF
METROPOLITAN MUNICIPALITIES
THE BUILDERS ASSOCIATION OF MINNESOTA.
THE BUILDERS ASSOCIATION OF
TWIN CITIES. MINNEAPOLIS
DOWNTOWN COUNCIL. MINNESOTA ASSOCIATION
OF REALTORS AND
THE MINNESOTA STATE BUILDING AND CONSTRUCTION
TRADES COUNCIL.
THE FULL RANGE OF
HOUSING OPTIONS ARE CRITICAL FOR THE WELL-BEING OF MINNESOTA.
SINCE THE END OF
THE RECESSION CONSTRUCTION OF HOMES HAS
INCREASED DRAMATICALLY.
YET; NOT THE SAME FOR CONDOS
AND TOWNHOMES. IN 2007 23% OF
THE MARKET WERE TOWNHOMES. IN 2015;
ONLY THREE. 3%. SIMILARLY;
SINCE 2007-2015 HOMES ROSE 80%
. TOWNHOMES DECREASED 70%.
THIS LEGISLATION SEEKS TO ENCOURAGE
CONDO AND TOWNHOME DEVELOPMENT
BY REDUCING THE RISK
OF LITIGATION
ASSOCIATED WITH THESE TYPES OF
CONSTRUCTION PROJECTS.
IT ENCOURAGES ALL THE PARTIES TO RESOLVE
THEIR DIFFERENCES THAT ARE DEFECT
DISPUTES THROUGH NEGOTIATIONS
OR MEDIATIONS. WITHOUT
IMPACTING OWNERS
WARRANTY RIGHTS. I ASK FOR YOUR SUPPORT. >> HOUSE SPEAKER:
REPRESENTATIVE HILSTROM OFFERS THE FOLLOWING AMENDMENT.
>> CHIEF CLERK: HILSTROM MOVED
TO AMEND HOUSE
FILE 1538 FIRST ENGROSSMENT AND THE AMENDMENT
IS CODED
A- TO >> HOUSE
SPEAKER: REPRESENTATIVE HILSTROM TO INTRODUCE YOUR AMENDMENT
>> REPRESENTATIVE HILSTROM: WHEN THE TROUBLING PARTS ABOUT
THIS PROPOSAL
IS THAT IT REQUIRES A MAJORITY OF THE
PROPERTY OWNERS TO VOTE IN FAVOR
OF THE BEGINNING OF A SUIT.
NOW; MEMBERS JUST AS WITH
STOCKHOLDERS OR STAKEHOLDERS IN
OTHER AREAS;
WE USUALLY REQUIRE THERE BE SOME NOTICE AND
WE REQUIRE THEY BE
TOLD WHEN A LAWSUIT IS GOING TO BE
VOTED UPON BUT WE USUALLY GIVE
THE BOARD
THE AUTHORITY TO ACTUALLY TAKE THE BOAT
ON WHETHER OR NOT TO FILE A LAWSUIT. SO WHAT'S
IN THIS STATUTE PROPOSAL CURRENTLY
REALLY IS
A LARGER BURDEN THAN WE PLACE ON MANY OTHER ENTITIES.
ALL I AM ASKING FOR IN
THIS AMENDMENT IS T
O SAY; YOU MUST NOTIFY ALL THE PROPERTY OWNERS. MUST TELL THEM THE DATE THAT YOU'RE GOING TO VOTE
; THE BOARD IS GOING TO VOTE ON WHETHER OR NOT TO FILE A LAWSUIT YOU MUST TELL THEM AT LEAST 30 DAYS IN ADVANCE;
BUT ONCE THAT IS DONE; IT REALLY IS THE BOARD
WOULD MAKE A DETERMINATION ON WHETHER
OR NOT A LAWSUIT SHOULD
BE FILED.
MEMBERS; THAT'S THE AMENDMENT AND ASK FOR
YOUR SUPPORT. >> HOUSE SPEAKER:
REPRESENTATIVE SMITH >>
REPRESENTATIVE SMITH: I OPPOSE
THIS AMENDMENT. PART OF THIS A VERY GOOD AND I SUPPORT
BUT IN A WHOLE I ASK FOR A
NO; VOTE. THE ENTIRE BILL WHEN THE
MAIN COMPONENTS
IS WHETHER THE BOARD OF DIRECTORS IS VOTING OR WHETHER THE MEMBERS FOR THE ASSOCIATION ARE VOTING FOR
IT IS TRUE THE RULES FOR
THIS BILL FOR THESE ASSOCIATIONS
IS DIFFERENT THAN
A CORPORATION. SUCH AS 3M.
BUT THESE UNIQUE THINGS HAPPENING IN
THIS INDUSTRY THAT THE LIST
OF SUPPORTERS THAT I
PREVIOUSLY RECOGNIZED
. MANY OF YOU HAVE PERSONAL STORIES ABOUT
THIS SITUATION
. THIS IS DIFFERENT. I ASK FOR YOUR
KNOW; VOTE. >> HOUSE SPEAKER:
ANY FURTHER DISCUSSION ON THE A-
TO AMENDMENT? SEEING NO
FURTHER DISCUSSION - EXCUSE ME -
ALL THOSE IN FAVOR SAY; AYE. [CHORUS OF AYES.] OPPOSED; NAY.
THE MOTION DOES NOT PREVAIL. THE AMENDMENT IS NOT ADOPTED.
>> [GAVEL] >> HOUSE
SPEAKER: REPRESENTATIVE DEHN
>> CHIEF CLERK:
DEHN MOVED TO AMEND HOUSE FILE 1538 FIRST ENGROSSMENT AS FOLLOWS
AND THE AMENDMENT IS CODED
A- 70-0380. >> HOUSE
SPEAKER: REPRESENTATIVE DEHN
>> REPRESENTATIVE DEHN; I BELIEVE THERE'S A AMENDMENT TO
THE AMENDMENT >> HOUSE SPEAKER:
THERE IS AN AMENDMENT AT THE DESK. THE CLERK WILL REPORT THE AMENDMENT.
>> CHIEF CLERK: DEHN MOVED
TO AMEND HIS AMENDMENT TO
HOUSE FILE
1338; FIRST ENGROSSMENT; AS FOLLOWS AND
THE AMENDMENT TO THE AMENDMENT IS CODED R MINUS
A 17
009. >> HOUSE SPEAKER:
MEMBERS AS A POINT OF CLARIFICATION
REPRESENTATIVE DEHN
OFFERED - EXCUSE ME - PRE-FILED
AN AMENDMENT THAT WAS CODED A- 17-
038. WHICH CONTAINED A
TECHNICAL ERROR. HE HAS
SINCE BROUGHT AMENDMENT CODED R-009.
PURSUANT TO HOUSE RULES
3.33 PARAGRAPH
E THE PRESIDING OFFICER HAS MADE A DECISION TO
ALLOW THAT CORRECTION SO WE ARE
ON THAT AMENDMENT THAT HAS THE
TECHNICAL CORRECTION AND TO INTRODUCE THAT AMENDMENT
REPRESENTATIVE DEHN
>> REPRESENTATIVE DEHN:
THANK YOU FOR ACCEPTING THE TECHNICAL CHANGE. IT WAS A
CRITICAL CHANGE IN THE AMENDMENT TO
THE AMENDMENT. WHAT THIS DOES IS IT
CHANGES THE IMPLEMENTATION DATE
FOR PROJECTS
THAT WERE CONSTRUCTED AFTER
CONSTRUCTED AFTER JULY 1; 2014.
WHY THAT DATE WAS ARRIVED AT
IS THERE'S A LOT OF
PROPERTIES OUT THERE THAT CURRENTLY THE PURCHASERS OF THOSE PROPERTIES
HAD BOUGHT THEM UNDER CERTAIN
CONTRACTUAL OBLIGATIONS. IN PURCHASING
THEIR PROJECTS. AND THERE CONDOS AND BUILDINGS. WITH
THE UNDERLYING ORIGINAL
BILL DOES IS IT ACTUALLY GOES
BACKWARDS COMPLETELY TO SORT OF REMOVE
THEIR CONTRACTUAL OBLIGATIONS
THROUGH PURSUING DAMAGES
AND CLAIMS AS PART OF
THE ASSOCIATION. BY CHANGING THE
THIS DATE
WHAT I'VE DONE IS TRY TO MEET IN THE MIDDLE.
MY ORIGINAL AMENDMENT HAD IT
BEEN TOTALLY PERSPECTIVE
MOVING FORWARD. SO
THOSE INDIVIDUALS TO PURCHASE UNITS ARE KNOWING
-THOSE THAT HAVE ALREADY PURCHASED THOSE UNITS WOULD NOT
BE CHANGED THEIR ACTUAL PURCHASE AGREEMENT THEY HAD
WITH
THE DEVELOPER AND THE ORIGINAL BUILDING OWNER.
BY CHANGING IT TO JULY 1 WE
SORT OF COME IN THE MIDDLE AND
REALIZED THAT EARLY ON AFTER WE
BEGAN CONSTRUCTION
THERE WERE SOME PROJECTS TO
MOVE FORWARD AND MOST THOSE PROJECTS
THE DEFECTS
HAVE ALREADY BEEN FOUND OUT. THEY'RE ALREADY OUT THERE.
SO WHAT THIS DOES IT GOES BACK
AND ALLOWS A FEW YEARS
AND ALLOWS AN OPPORTUNITY FOR SOME DEFECTS AM I NOT BEEN DISCOVERED
YET TO BE CONSIDERED INTO THE
NEW BILL. I APPRECIATE THIS
BILL BECAUSE WE DO HAVE
AN EXISTING DIFFICULTY WHAT'S CALLED THE CONDO MARKET.
THAT'S HAVING AN ADVERSE AFFECT ON THE HOUSING MARKET AS WELL.
AT THE SAME TIME; I DON'T WANT TO STRIP ANY OF THOSE OWNERS OF
THE RIGHTS THE PREVIOUSLY
ALLOWED THEM TO MAKE CLAIMS
AGAINST BUILDING DEFECTS
AND PROBLEMS. I FOR THIS AMENDMENT TO THE AMENDMENT. I WOULD
HOPE THAT THE BODY WOULD
SUPPORT THAT.
THANK YOU. >> HOUSE SPEAKER: DISCUSSION ON THE MOTION TO ADOPT THE AMENDMENT TO THE AMENDMENT CODED
R-17 009. REPRESENTATIVE SMITH
>> REPRESENTATIVE SMITH: I APPRECIATE THE OFFER
AMENDMENT AND THE AMENDMENT TO THE AMENDMENT AND WORK ON THIS BILL.
THIS IS BEEN A
COLLABORATIVE EFFORT AND THERE'S BEEN
A SERIES OF COMPROMISES WITH
A MYRIAD OF PEOPLE INVOLVED
IN THIS.
I'M GOING TO ASK FOR A NO; VOTE ON THIS AMENDMENT I
FEEL THAT IN ORDER
TO PROPERLY GET THIS MARKET BACK TO WHERE
IT WAS; WE NEED TO GO BACK TO
THE ENTIRE
10 YEAR STATUTE OF LIMITATIONS. NO ONE'S RIGHT" IS
BEING ELIMINATED. NO ONE'S RIGHT ARE BEING TAKEN AWAY.
INSURANCE COMPANIES ARCHITECTS; THEY NEED THE INSURANCE
THAT WE ARE GOING TO BE ABLE TO MOVE FORWARD IN THIS MARKET
IN A WAY THAT GIVES THEM THE TYPE OF PROTECTION THEY NEED TO GET THIS MARKET BACK.
I ASK FOR A NO; VOTE. THANK YOU. >> HOUSE SPEAKER:
ANY FURTHER DISCUSSION ON THE AMENDMENT TO
THE AMENDMENT? SEEING NO
FURTHER DISCUSSION
BALL THOSE IN FAVOR SAY; AYE. [CHORUS OF AYES.] OPPOSED;
NAY. THE MOTION DOES NOT PREVAIL AND THE AMENDMENT T
O THE MOMENT IS NOT ADOPTED >> [GAVEL] >> HOUSE SPEAKER: WERE NOW ON THE UNDERLYING A- 17 AMENDMENTS.
REPRESENTATIVE DEHN >> REPRESENTATIVE DEHN: SO
WITHOUT THIS DATE BACK TO
JULY 1 I AM ASSUMING THAT A- 17 WILL
NOT BE ABLE TO BE ADDED
TO THIS; BUT I JUST WANT TO
CAUTION MEMBERS THAT CLEAN UP
THE MARKET IS A GOOD THING
TO DO. BUT HOW WE DO THAT IS
ALSO IMPORTANT. I MEAN IT'S
VERY IMPORTANT.
BECAUSE WE ARE ABOUT TO TAKE AWAY THE
CONTRACTUAL RIGHTS OF MANY INDIVIDUALS
THAT HAD PURCHASED UNITS
UNDER A PROVISION OF LAW DURING
THE TIME THEY PURCHASED THEIR
CONDO UNITS. SO; IN VOTING AGAINST
THIS AMENDMENT AND VOTING FOR
THAT BILL; WE
ARE VOTING TO TAKE AWAY
THE RIGHTS OF PEOPLE THAT PURCHASE PROPERTY
. SOME OF THEM AT A TIME WHEN THE MARKET
IS NOT QUITE
BACK YET. SOME OF THOSE AT A TIME WHEN
THE MARKET WAS BACK YET. WE WILL BE
-WE WILL BE; IN ESSENCE;
NULLIFYING THE WAY IN WHICH THEY PURCHASED THEIR UNITS TO
THESE CHANGES. SO I WOULD ASK THAT
MEMBERS VOTE IN FAVOR OF
THIS AMENDMENT.
THANK YOU. >> HOUSE SPEAKER:
ANY FURTHER DISCUSSION ON THE A-
17 AMENDMENT?
REPRESENTATIVE SMITH >>
REPRESENTATIVE SMITH: I ASK FOR A NO; VOTE.
THANK YOU. >> HOUSE SPEAKER: SEEING NO
FURTHER DISCUSSION ALL THOSE IN FAVOR SAY; AYE. [CHORUS OF AYES.] OPPOSED; NAY.
THE MOTION DOES NOT PREVAIL AND THE AMENDMENT IS NOT ADOPTED >> [GAVEL] >> HOUSE SPEAKER:
THERE'S NO FURTHER AMENDMENT AT THE DESK AT THE CLERK WILL GIVE THE BILL THIRD READING >> CHIEF CLERK: THIRD READING HOUSE FILE 1538 >> HOUSE SPEAKER: THIRD READING >> [GAVEL] >> HOUSE SPEAKER:
DISCUSSION ON HOUSE FILE 1538?
REPRESENTATIVE
LESCH >> REPRESENTATIVE LESCH:
REPRESENTATIVE SMITH;
THERE ARE CONCERNS THAT A BEEN STATED
MULTIPLE CONCERNS ABOUT THE BILL AS WRITTEN AND
I'VE HEARD FROM VARIOUS FOLKS THAT THEY
THINK THAT DESPITE
THOSE CONCERNS
THIS BILL IS KIND OF BEING SOLD AS A PANACEA FOR THE
LACK OF CONDO BUILDS THAT WE
ARE SEEING.
THE FOLKS THAT I TALKED TO ABOUT THIS
SEEMED GENERALLY SINCERE IN THEIR
BELIEF THAT
THIS BILL WILL SOLVE A PROBLEM. I CAN TELL
YOU; MEMBERS IS
MY 15TH LEGISLATIVE SESSION NOW AND
THERE'S A LOT OF BILLS
THAT COME THROUGH HERE THAT ARE SOLD
AS PANACEAS; AS CURE-ALL'S;
OR HOW IT'S GOING TO SOLVE A PROBLEM. I THINK THERE MIGHT BE ONLY ONE I REMEMBER THAT DID THAT REMEMBERS THE
PUTTING SUDAFED
BEHIND THE COUNTER TO STOP METH LABS? ANYONE
REMEMBER THAT?
SURE ENOUGH; MET HOUSES IN THE
YEARS AFTER PRETTY MUCH DISAPPEARED.
WHICH FLORIDA I THOUGHT IT WOULD WORK I DID NOT THINK IT WOULD WORK THAT WELL BUT
LOOKING AT THE PERSPECTIVE A PROSECUTOR IN
LAW ENFORCEMENT
I WAS VERY IMPRESSED WITH THE RESULTS OF THE NOW SINCE THEN OF COURSE
MARKETS HAVE CHANGED BUT IT'S BEEN PRODUCED IN OTHER PLACES AND STILL SEND HERE SO BUT
IT STILL DRASTICALLY REDUCE
THE NUMBER OF MET HOUSES WE HAD
; FARMERS GETTING STUCK
STOLEN OUT OF THEIR FIELD.
MY QUESTION; MY FIRST QUESTION
I HAVE REPRESENTATIVE SMITH;
IS REGARDING THE REQUIREMENT
THAT YOU HAVE TO GET HOMEOWNERS WHO
CONTRACTED THIS TO HAVE TO GET
THEIR AGREEMENTS
TO TAKE LEGAL ACTION TO PROTECT
THEIR RIGHTS. WOULD YOU SUPPORT A
SIMILAR PROVISION FOR
CORPORATIONS MINNESOTA TO
ACQUIRE CORPORATIONS TO GET THE
SAME AMOUNT OF CONSENT FROM
THEIR SHAREHOLDERS PRIOR TO TAKING
LEGAL ACTION
TO PROTECT THEIR RIGHTS OR INTEREST?
>> REPRESENTATIVE SMITH:
WE HAD A LONG DISCUSSION ABOUT
THIS BILL
IN CIVIL LAW COMMITTEE. I UNDERSTAND YOUR POSITION.
I WOULD ASK YOU TO GET OUT YOUR CALENDAR AND MARK TODAY'S
DATE DOWN BECAUSE THIS MAY BE THE
SECOND TIME
IN YOUR LONG AND DISTINGUISHED LEGISLATIVE CAREER
THAT THIS BILL WILL SOLVE PROBLEMS IN THE MARKETPLACE.
IN REGARD TO YOUR HYPOTHETICAL QUESTION I WOULD NEED TO SEE
THE LANGUAGE BUT MY
ANSWER REPRESENTATIVE; IS THAT THIS IS
UNIQUE PROBLEM; A
UNIQUE INDUSTRY. WE NEED TO ACT.
WE DEAL WITH PROBLEMS
IN DIFFERENT INDUSTRIES THROUGHOUT OUR
BELOVED STATE
EVERY TIME WE MEET AS A BODY. THIS IS ONE OF
THOSE
TIMES THAT I BELIEVE WE NEED TO COME TOGETHER AND SOLVE
THIS PROBLEM THIS
[INAUDIBLE] THIS LIST OF SUPPORTERS ALL SAVE YOU ALL READING THEIR NAMES AGAIN
IT'S LONG. IT'S BEEN A VERY LONG DISCUSSION OF
THIS BILL GETTING HIS
IN THE SHAPE IT'S IN. FOR THOSE WHO THAT A PARTICULAR INTEREST IN
THIS BILL; YOU MAY KNOW
THAT THE VERSION IN THE SENATE
IS DIFFERENT.
THIS BILL IS GOING TO GO TO CONFERENCE COMMITTEE.
THE DISCUSSIONS
FOR COMPROMISE MODIFICATIONS; WILL CONTINUE.
SO REPRESENTATIVE; PLEASE;
GET OUT YOUR ACCOUNT THIS MAY BE THE SECOND ONE. THANK YOU. >> HOUSE SPEAKER:
REPRESENTATIVE LESCH >> REPRESENTATIVE LESCH;
HEY; LISTEN REPRESENTATIVE SMITH I'M OPEN TO THE PROVEN WRONG. IT
HAPPENS BEFORE BUT I
JUST THINK-I'VE BEEN HERE 15 YEARS AND LIKE I SAID; A LOT OF
-I'LL MARK MY CALENDAR
REPRESENTATIVE SMITH AND MAYBE
IT'S THE SECOND TIME IN 50 YEARS ON PROVEN WRONG ON THAT. HOWEVER; REMEMBER
THIS A PRETTY DRASTIC MANEUVER WE ARE TAKING AT THE
-TO SUGGEST IT'S GOING TO SOLVE A CONDO
BUILD PROBLEM. WE ARE INTERFERING WITH PEOPLE'S RIGHT
TO CONTRACT WE
ARE INTERFERING-WE ARE LEGISLATIVELY
ABROGATING THEIR DUE
PROCESS RIGHTS. THOSE ARE TWO PRETTY BIG
CONSTITUTIONAL RIGHTS I'M SURE SOME OF THE
TEA PARTY IS OVER THERE WOULD CARE ABOUT QUITE A BIT ESPECIALLY THE RIGHT TO CONTRACT. BUT; YOU BROUGHT UP-
REPRESENTATIVE SMITH
; YOU BROUGHT UP THAT LIST OF FOLKS
; OR THE MUNICIPALITIES
THAT SUPPORTED I THINK I SAW JEN
HASSAN BLOOMINGTON; MIGHT BE A
COUPLE OTHERS. WERE THERE
-DID YOU RECEIVE OF HER LETTER OF SUPPORT FROM LOCAL FROM ANY LOCAL UNITS OF GOVERNMENT OUTSIDE THE METRO IN SUPPORT OF
THIS BILL? >> REPRESENTATIVE SMITH:
THERE IS NOT ANY DOCUMENTED SUPPORT FROM OUTSIDE THE METROPOLITAN AREA BUT I KNOW THERE IS SUPPORT. I KNOW THAT YOUR CITY OF ST. PAUL REALLY
IS INTERESTED IN THIS BILL
THERE'S A DEVELOPER DOWN AT THE OLD
PORT LANDS PEOPLE ARE VERY ENCOURAGED ENCOURAGE OF THIS BILL BECOMES LAW TO HELP OUT YOUR BELOVED CITY. THANK YOU.
>> REPRESENTATIVE LESCH:
THAT'S GOOD TO KNOW BECAUSE I'M NOT TALK TO ME ABOUT IT.
NO ONE FROM ST. PAUL
HAS TALKED TO ME ABOUT IT. HERE'S WHAT I
KNOW. I'VE HEARD MINNEAPOLIS CAME
IN TESTIFIED FOR IT.
REPRESENTATIVE ANDERSON IS
NOT HERE
SO SHE WON'T SAY ANYTHING ABOUT MY WIFE AND LIVES IN MINNEAPOLIS BUT I DON'T MINNEAPOLIS TESTIFIED IN FAVOR OF IT. I UNDERSTAND THE REASONS
BEHIND WHY
SOME OF THESE FOLKS WANT TO GET IT. IT'S JUST CURIOUS YOUR CAUCUS
IS STATED YOU'RE GOING TO TAKE CARE OF
GREATER MINNESOTA AND
I'M SEEING A WHIMPER FROM GREATER MINNESOTA ABOUT HOW THIS CAN HELP FOLKS OUT THERE BUT IF
REPRESENTATIVE SMITH WHEEL TO A
FINAL QUESTION?
REPRESENTATIVE SMITH; CAN YOU TELL ME
HOW IS THE HOUSING MARKET DOING OVERALL
IN MINNESOTA RIGHT NOW?
OUR HOMES BEING BUILT OR ARE
WE STAGNATING?
>> REPRESENTATIVE SMITH:
THE HOUSING MARKET IS IN A
PERIOD OF RECOVERY SINCE THE GREAT RECESSION AND THINGS
ARE IMPROVING BUT WHAT'S
MORE IMPORTANT TO YOUR QUESTION IS THAT WE NEED TO HELP OUT THE CONDO AND TOWNHOMES
DEVELOPMENTS. TOWNHOMES AND
CONDOS FOR THE LOW INCOME AND
MIDDLE INCOME
; THEY ARE HURTING. THEY NEED
WE NEED REVISIONS IN THIS AREA THOUGHT TO HELP THEM. THAT MARKET IS
SUFFERING GREATLY.
>> REPRESENTATIVE
LESCH: I'LL TELL YOU HOW IT'S DOING REPRESENTATIVE SMITH IT'S BOOMING. IT'S BOOMING.
MAYBE NOT FOR CONDOS; BUT
THE SUGGESTION BY PROMOTERS OF THE
BILL THAT THAT'S BECAUSE
INSURANCE COMPANIES
AND DEVELOPERS DON
'T WANT TO BUILD SOMETHING WITH HER EXPOSED TO LIABILITY IN THIS WAY; I
DON'T KNOW
. MAYBE IT'S THE MARKET THING. NOW I'M A GUY WHO SUPPORTS HOUSING DENSITY. THERE
ARE BILLS THAT
I VOTED ON YOUR SIDE OF
THE CAUCUS ON IN THIS YEAR AND
YEARS PASSED AND REPRESENTATIVE NASH KNOWS THIS
TO ENCOURAGE HOUSING DENSITY TOWN HOSE AND CONDOS ARE GOING TO GET YOU
TO DENSITY WERE SINGLE-FAMILY HOMES ARE NOT. I COMPLETELY SUPPORT THE PRINCIPLES OF HAVING THOSE CONDOS AND TOWNHOMES BUILT
WITHOUT SINGLE-FAMILY ARE GETTING BUILT BUT I'M JUST HARD-PRESSED TO BELIEVE THAT THIS IS THE WAY TO GO ABOUT IT
AND I CAN TELL YOU; THIS IS A
BANNER YEAR
FOR INSURANCE COMPANIES AT THE
MINNESOTA CAPITAL. A BANNER YEAR
. YOU DIFFER IN FAVOR OF WHAT INSURANCE COMPANIES ARE SAYING
. YOU SWALLOW WHAT THEY'RE TELLING YOU HOOK LINE AND SINKER
. INSTEAD OF SUPPORT
ING YOUR CONSTITUENTS CONTRACT RIGHTS AND DUE PROCESS RIGHTS. I COULD BE PROVEN WRONG REPRESENTATIVE
SMITH EMMA MARK THE DATE ON
MY CALENDAR. TO TALK TO YOU IN TWO
YEARS; TO; AND MAYBE YOU
ARE RIGHT AND QUITE FRANKLY; I HOPE YOU ARE RIGHT. I JUST DON'T THINK THIS IS THE BILL
IS A WAY TO GO ABOUT DOING IT. I'M GOING TO BE VOTING; NO. >> HOUSE SPEAKER:
REPRESENTATIVE DEHN
>> REPRESENTATIVE DEHN:
TO REPLY TO ONE OF
REPRESENTATIVE SMITH'S COMMENTS; MY A MOMENT WOULD'VE MADE ST. PAUL
JUST FINE.
THEY WOULD'VE BEEN JUST FINE MOVING FORWARD. ALL THE UNITS GOING TO BE BUILT THERE
THEY WOULD'VE BEEN JUST FINE
WITHOUT AMENDMENT
BUT YOU CHOSE TO VOTE IT DOWN AGAIN; THIS IS
GOING BACK AND REALLY
GIVING INDIVIDUALS THE OPPORTUNITY
TO CHANGE THE
PLAYING FIELD THEY BUILT THEIR
PROPERTIES ON. I'M A BIG SUPPORTER OF THE
ARCHITECTURE PROFESSION I'M
A BIG SUPPORT OF GENERAL
CONTRACTORS; BIG SUPPORTER OF ALL THOSE FOLKS AND YET
I LOOK AT THIS BILL AND THERE SEEMS TO BE A LOT OF DISSENSION
YET. WE ALL CAN ROLL OUT
LONG LIST OF PEOPLE THAT ARE SUPPORTERS AND
I THINK THAT IS
IMPORTANT TO DO THAT; BUT AT THE SAME TIME;
IT'S NOT JUST A ONE-SIDED ISSUE. THERE'S TWO SIDES TO
THIS ISSUE. IF REPRESENTATIVE
SMITH; CAN YOU EXPLAIN TO THE
BODY EXACTLY WHY MAKING
THIS RETROACTIVE
FOR A 10 YEAR PERIOD IS GONNA SOMEHOW FREE UP
THE MARKET THAT CURRENTLY IS
DOING OKAY IN HOUSING?
IT'S ACTUALLY DOING REALLY REALLY WELL IN APARTMENTS
BUT HOW IT'S GOING TO IMPACT THE
CONDO MARKET?
>> REPRESENTATIVE SMITH:
PART OF THE GENESIS OF THIS BILL
WERE
FRIVOLOUS LAWSUITS THAT ARE BEEN GOING ON AND THE
LAST YEAR OF THE TENURE STATUTE
OF LIMITATIONS
FRIVOLOUS LAWSUITS ARE BEING BROUGHT FORWARD.
THIS BILL WILL PROHIBIT
FRIVOLOUS LAWSUITS FROM GOING FORWARD
. THE PEOPLE INVOLVED IN
THE CONSTRUCTION; THE ARCHITECTS;
THOSE PEOPLE;
INCLUDING PEOPLE IN THE TRADE COUNCIL;
THIS BILL WILL GIVE THEM REASSURANCE THAT
MOVING FORWARD
THESE FRIVOLOUS LAWSUITS WILL STOP
GOING FORWARD AS WELL IS GOING BACK
I WANT TO POINT OUT A LETTER
OF SUPPORT THAT SOME YOU MAY NOT
HAVE SEEN IT IS FROM
HARRY OLANDER FROM THE MINNESOTA STATE
BUILDING CONSTRUCTION TRADES COUNCIL DATED APRIL 26; 2017.
THIS BILL WILL BE BENEFICIAL TO ALL OF MINNESOTA
. THIS IS A GREAT BILL. THANK YOU. >> HOUSE SPEAKER:
REPRESENTATIVE DEHN
>> REPRESENTATIVE DEHN:
I DON'T THINK YOU REALLY TOLD US HOW IT'S GOING TO AFFECT THE MARKETS.
I MEAN I WOULD VENTURE TO GUESS THAT WE WILL SEE A LOT
MORE DEVELOPERS MOVING INTO
THE CONDOMINIUM MARKET
AND I THINK IT'LL BE REALLY REALLY GOOD FOR THEM MOVING FORWARD
. WHAT THIS BILL IS ACTUALLY GOING TO DO; IT'S A FREE
UP CAPITAL BECAUSE IT ALLOWED MORE CAPITAL TO
COME IN IT WILL ALSO MAKE
INSURANCE RATES
; MAY BE BETTER; MAYBE NOT BUT WE ALWAYS GET PROMISES FROM INSURANCE COMPANIES THAT THE THINGS WE DO HERE WILL IMPACT OUR INSURANCE RATES THEY SEEM TO NEVER REALLY DO THAT.
BUT IT WILL DEFINITELY RELIEVE THEM OF
ANY LIABILITY THAT THEY CURRENTLY ARE CARING
FOR THE PAST 10 YEARS
AND AGAIN; I'M REALLY DISAPPOINTED THAT YOU WERE NOT WILLING TO
SUPPORT THE AMENDMENT I BROUGHT FORWARD
BECAUSE I THOUGHT
THAT WAS TRYING TO FIND THAT AREA OF
MIDDLE GROUND AND
I THINK THAT FOR THIS BILL COMING BACK FROM
CONFERENCE COMMITTEE IT'S GOING
TO CHANGE; OR IT'S NOT GOING TO
COME BACK WE'VE SEEN THAT HAPPEN WITH OTHER BILLS THAT
YOU HAVE
REPRESENTATIVE SMITH HAVE CARRIED TO CONFERENCE COMMITTEE IN THE
PAST. IF THIS BILL DOES NOT COME BACK;
WE ARE GOING TO BE LEFT IN THE SAME PLACE WE ARE TODAY.
THAT'S NOT TO HELP ANYBODY. ALL THE PEOPLE
THAT ARE SIGNED ON TO
SUPPORT THIS;
THEY'RE ALL GOOD TO BE IN THE SAME PLACE THEY WERE TODAY.
NOT IN A PLACE THAT THEY
COULD BE BY WORKING TOGETHER WITH
BOTH SIDES TO GET TO THAT POINT
WHERE
SOME PEOPLE MIGHT BE A LITTLE
BIT UNHAPPY BUT IT'S GOING TO BE PEOPLE ON
BOTH SIDES THAT CAN BE A LITTLE
BIT UNHAPPY AND I ACTUALLY BELIEVE
THE AMENDMENT AND THE AMENDMENT TO THE AMENDMENT WOULD
HAVE HAD THE SAME EFFECT OF FREEING UP
FINANCIAL CAPITAL; PUTTING
INSURANCE COMPANIES SOMEWHAT AT
REST ALTHOUGH
NOT COMPLETELY AT REST; WHICH WHAT'S BEEN GOING ON IN THE PAST FEW YEARS.
AND I THINK THESE LISTS THAT YOU
HANDED OUT OF I GUESS IT'S ABOUT 11 CITIES
MIGHT BE SITTING IN THE SAME SITUATION THEY ARE TODAY. SO I WOULD
ENCOURAGE YOU WHEN YOU GO TO
CONFERENCE COMMITTEE TO NOT
BE DOGMATIC
OF THIS BILL AND WHERE IT'S AT TODAY BECAUSE MY GUESS
IS GIVEN THE
-GIVENS WHAT'S PASSED IN THE SENATE IF YOU
ARE DOGMATIC IS BILL WON'T
BECOME LAW. I ASKED FOLKS TO VOTE; NO. >> HOUSE SPEAKER:
REPRESENTATIVE HILSTROM >> REPRESENTATIVE HILSTROM:
REPRESENTATIVE SMITH; COULD YOU CLARIFY FOR ME
IF I PURCHASE A UNIT IN ONE OF THESE COMMON
INTEREST PROPERTIES;
AND THERE IS A DEFECT IN MY UNITS;
AND ONLY IN MY UNIT;
SO BUILDING DEFECT IN MY UNIT; IN ORDER
FOR ME TO FILE A LAWSUIT FOR THE
BUILDING DEFECT IN MY UNIT
; WOULD I HAVE TO GET 50% OF THE PEOPLE THAT OWN OTHER UNITS
TO AGREE TO ALLOW ME TO SUE ON
THAT BUILDING DEFECT?
>> REPRESENTATIVE SMITH:
REPRESENTATIVE; NO.
>> REPRESENTATIVE HILSTROM:
REPRESENTATIVE SMITH COULD YOU PLEASE; CLARIFY WHY IT IS BASED ON THE LANGUAGE OF YOUR BILL
. BECAUSE IT'S MY UNDERSTANDING THE ASSOCIATION WOULD HAVE TO SUE ON MY BEHALF
AND THEY WOULD HAVE TO GET A MAJORITY VOTE OF
THE OWNERSHIP.
>> REPRESENTATIVE SMITH:
IF THE ASSOCIATION IS BRINGING THE
LAWSUIT FORWARD
THEN THE RULES WITH A 51% AND THE
OTHER OUTLINE NEED
TO TRANSPIRE IF YOU'RE BRINGING THE SUIT FORWARD
FROM YOU; THE PERSON AS
YOU ORIGINALLY
ASKED HER A QUESTION; THAT ONLY YOU YOURSELF WOULD BE
BE IN AGREEMENT WITH THAT.
>> REPRESENTATIVE HILSTROM:
REPRESENTATIVE SMITH COULD YOU TELL ME THEN IF 10 PEOPLE H
AD PROBLEMS WITH THEIR UNITS
BUT NO ONE ELSE DID; COULD
THOSE 10 GET TOGETHER AND FILE
LIKE A CLASS ACTION LAWSUIT TO DEAL
WITH THE DEFECTS OF
THE CONSTRUCTION; OR WOULD THAT
BE PRECLUDED B
Y THESE PROVISIONS IN THIS BILL?
>> REPRESENTATIVE SMITH:
IF THERE LISTED INDIVIDUALLY;
WHETHER ONE AT A TIME OR AS
A GROUP;
ALONG IS ARE NOT A PART OF
THE ASSOCIATION THAN THEY CAN BRING THAT SUIT FORWARD WITHOUT THE 51%.
>> REPRESENTATIVE HILSTROM: SO
REPRESENTATIVE SMITH;
SAY; EVERY SINGLE PERSON THAT OWN
THE UNIT WANTED
TO SUE BECAUSE THERE WAS A DEFECT
WITH THE CONSTRUCTION OF IT.
WITH THIS PRECLUDE THEM FROM
GETTING ALTOGETHER
AND DECIDING TO SUE NOT AS THE ASSOCIATION; NOT
AS THE BO
ARD OF DIRECTORS; BUT INDIVIDUALLY THEY COULD ALL SUE THE CONTRACTOR EVEN IF IT'S
EVERY SINGLE UNIT THEY WOULD HAVE TO GO THROUGH THE BOARD OF DIRECTORS AT ALL?
>> REPRESENTATIVE SMITH:
IF THEY WERE LISTED INDIVIDUALLY AND THEY WERE ISSUED
IMPACTING THEIR INDIVIDUAL UNITS THAN THEY COULD DO THAT. IF IT'S FOR
COMMON AREAS THAN THE ASSOCIATION WILL BE NEED TO
BE INVOLVED. >> REPRESENTATIVE HILSTROM:
SO THAT'S WHAT I WAS GETTING TO
NOW. REPRESENTATIVE SMITH;
BASED ON WHAT YOU SAID; WHAT
YOU JUST COMMENTED ON THE FLOOR;
IF; FOR EXAMPLE THE ROOF OF THE COMMON AREA LEAKS OR
IS DEFECTIVE; AND THEN IT DAMAGES
MY UNITS; THE ASSOCIATION WOULD
HAVE TO FILE
THAT SUIT AND THAT COULD ONLY HAPPEN IF 50% OF
THE OWNERS OF THE UNITS
VOTED TO DO THAT. IS THAT CORRECT?
>> REPRESENTATIVE SMITH:
IT DEPENDS ON HOW THE CLAIM
IS WRITTEN.
>> REPRESENTATIVE HILSTROM:
SO MEMBERS; I'D LIKE TO
BUILD THINGS. I USUALLY VOTE IN FAVOR
OF HOUSING. I
SUPPORT HOUSING BUT I ALSO BELIEVE THAT PEOPLE SHOULD HAVE THE RIGHT TO
FILE CLAIM WHEN THEY RIGHTFULLY
HAVE ONE AND ONE OF THE THINGS
THAT HAPPENS SOME OF THESE PROPOSALS
IS THAT FOR THE GOOD OF OTHERS;
SOME PEOPLE LOSE THEIR RIGHTS.
THEIR PROTECTIONS. MEMBERS; THIS BODY HAS
TAKEN A PRETTY STRONG STANCE FOR
PROPERTY RIGHTS. WHAT THIS BILL SAYS NOW
IS THAT
YOU; AS AN OWNER OF ONE OF THESE UNITS; IF
YOU'RE HARMED BY THE OTHER; THE
COMMON AREA;
YOUR PROPERTY IS DAMAGED; YOU HAVE TO GET 50% OF THE PEOPLE THAT OWN THE BUILDING
; THAT OWN OWNERSHIP
TO DECIDE TO LET YOU DO THE RIGHT THING.
SO MEMBERS; THAT'S REALLY WHERE THIS STARTS TO GET TO BE
A PROBLEM.
WHEN YOU PLACE THE BURDEN SO STRONGLY ON 50% OF
YOUR NEIGHBORS TO COME TO
THE MEETING TO HEAR THAT YOU HAVE
A PROBLEM; FIRST YOU HAVE TO GET
THEM OUT THEY HAVE TO ALL VOTE
TO AGREE TO A SUIT OR 50% OF THEM HAVE TO AGREE TO A SUIT
YOU END UP LIMITING SOMEONE ELSE'S PROPERTY RIGHTS.
SO REPRESENTATIVE SMITH I HAVE ONE
LAST QUESTION.
REPRESENTATIVE SMITH; THESE COMMON OWNERSHIPS
INTERESTS
ARE ALLOWED TO PLACE THINGS IN
THEIR CONTRACTS WHEN THEY SUE THE PROPERTY.
THEY ARE ALLOWED TO DECIDE
WHO IS GOING TO BE RESPONSIBLE FOR SNOWPLOWING WAS CAN BE
RESPONSIBLE FOR
GENERAL MAINTENANCE AND PURCHASERS
CONTRACT FOR THAT WHEN
A BUYER. WOULD THIS PROVISION PROHIBITS
THE BUYER AND SELLER FROM PLACING LANGUAGE IN THE BILL
THAT
WOULD SAY; YOU DON'T HAVE TO HAVE 50%
TO FILE A LAWSUIT ON BEHALF OF THE INTERESTS IN
YOUR PROPERTY; OR WOULD THAT BE PRECLUDED BY THE STATUTE
AT PURCHASE?
>> REPRESENTATIVE SMITH:
COULD YOU RESTATE YOUR
QUESTION; PLEASE?
>> REPRESENTATIVE HILSTROM: THE
QUESTION IS;
REPRESENTATIVE SMITH WE ALLOW PEOPLE
WERE GOING TO BUY AND SELL PROPERTY
TO CONTRACT FOR WHO'S GOING TO BE RESPONSIBLE FOR
DIFFERENT PROVISIONS. WHEN YOU BUY
THE PROPERTY
YOU GET TO BE THE CONTRACT ABOUT WHAT YOU'RE ALLOWED TO DO AND WHAT YOU'RE
RESPONSIBLE FOR.
WITH THE LANGUAGE IN THIS
BILL KEEP THE SELLER OF THE PROPERTY
FROM PLACING A PROVISION IN THE BILL
WHICH WOULD NOT REQUIRE THE
50% VOTE TO FILE A LAWSUIT ON THESE
KINDS OF CLAIMS?
>>
REPRESENTATIVE SMITH: IT DEPENDS SOMEWHAT ON
EXACTLY THE LANGUAGE YOU ARE SPEAKING TO.
HYPOTHETICALS ARE GOOD FOR
THE DISCUSSION
TO UNDERSTAND THE BILL. IT DOES DEPEND A LITTLE BIT ON THE HYPOTHETICAL.
PROBABLY; NOT.
>> REPRESENTATIVE HILSTROM:
MEMBERS; I WANT TO MAKE THAT
REAL CLEAR. THAT'S THE WAY I READ THE LANGUAGE AS WELL. EAST
ON THE COMMON INTERE
ST OWNERSHIP PROVISION THAT IF YOU PUT IN STATUTE THAT REQUIRES A 50% VOTE OF ALL THE OWNERS
THIS STATUTE WOULD PRECLUDE
CONTRACTORS THE PERSON WHO
BUILDS IT AND SELLS IT; THE PERSON WHO BUYS IT; FROM CONTRACTING FOR THE
RULES TO BE DIFFERENTLY THEREBY GIVING UP YOUR PERSONAL PROPERTY RIGHTS.
>>
HOUSE SPEAKER: DISCUSSION TO THE BILL?
THE CLERK WILL TAKE
THE ROLE. >> [ROLL CALL VOTE].
>> HOUSE SPEAKER: THE CLERK WILL CLOSE THE ROLL. THERE
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