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Dayton Signs Bill Limiting ‘Clawback’ Lawsuits

Mark DaytonST. PAUL  (AP) — Gov. Mark Dayton has signed a bill to exempt charitable groups from having to return tainted donations after the expiration of a two-year statute of limitations.

Dayton signed the bill Tuesday. It comes as a trustee for investors and creditors of disgraced Minnesota businessman — and St. Cloud native — Tom Petters seeks to reclaim more than $2.3 million in donations that Petters had made to Minnesota Teen Challenge, a nonprofit addiction counseling program.

Trustee Doug Kelley has also filed a “clawback” lawsuit seeking $2 million that the College of St. Benedict in St. Joseph received from a Petters-run foundation from 2003 to 2006.

The bill reduces the current statute of limitations on clawback lawsuits from six years to two years. Dayton says he believes the charities are usually blameless and often don’t have the money to repay.

Copyright 2012 The Associated Press.

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