HF 3708

as introduced - 86th Legislature (2009 - 2010) Posted on 03/18/2010 09:27am

A bill for an act
relating to state government; appropriating money and making reductions for
environment, natural resources, energy, and commerce; providing for the transfer
of funds; modifying requirements for youth hunters; providing for licensing and
regulation in mortgage loan origination and mortgage loan business; modifying
disposition of certain receipts; modifying continuing education requirements for
commerce licenses; modifying regulation of securities; providing for certain
electronic transactions; establishing accounts; amending Minnesota Statutes
2008, sections 58.04, subdivision 1; 58.08, by adding a subdivision; 58.09;
58.10, subdivision 1; 58.11; 80A.46; 84.027, subdivision 15; 85.052, subdivision
4; 85.22, subdivision 5; 97A.015, by adding a subdivision; 97A.435, subdivision
2; 97A.445, subdivision 5; 97A.451, subdivision 3; 97A.475, subdivisions 3a,
4, 43, 44; 97B.015, subdivisions 4, 5, 5a, 6, 7; 97B.020; 97B.021, subdivision
1; 97B.022, subdivision 2; 97B.301, subdivisions 3, 6; 97B.601, subdivision
4; 103G.705, subdivision 2; Minnesota Statutes 2009 Supplement, sections
45.30, subdivision 6; 58.06, subdivision 2; 97A.075, subdivisions 1, 5; 97A.441,
subdivision 7; 97A.475, subdivisions 2, 3; 357.021, subdivision 7; Laws 2009,
chapter 172, article 2, section 5; proposing coding for new law in Minnesota
Statutes, chapters 97A; 97B; proposing coding for new law as Minnesota
Statutes, chapter 58A; repealing Minnesota Statutes 2008, sections 97A.451,
subdivisions 3a, 4; 97A.485, subdivision 12; 97B.022, subdivision 1; Minnesota
Statutes 2009 Supplement, section 58.126.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

ENVIRONMENT AND NATURAL RESOURCES

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize changes to direct appropriations, by
fund, made in this article.
new text end

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin (1,166,787) new text end	new text begin $ new text end	new text begin (2,997,605) new text end	new text begin $ new text end	new text begin (4,164,392) new text end
new text begin Environmental new text end		new text begin (1,315,000) new text end		new text begin (1,763,000) new text end		new text begin (3,078,000) new text end
new text begin Remediation new text end		new text begin (118,000) new text end		new text begin (179,000) new text end		new text begin (297,000) new text end
new text begin Natural Resources new text end		new text begin (7,000) new text end		new text begin (877,001) new text end		new text begin (884,001) new text end
new text begin Game and Fish new text end		new text begin -0- new text end		new text begin 250,000 new text end		new text begin 250,000 new text end
new text begin Environmental Trust new text end		new text begin -0- new text end		new text begin 1,000,000 new text end		new text begin 1,000,000 new text end
new text begin Clean Water new text end		new text begin -0- new text end		new text begin 2,500,000 new text end		new text begin 2,500,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin (2,606,787) new text end	new text begin $ new text end	new text begin (3,677,606) new text end	new text begin $ new text end	new text begin (6,284,393) new text end

Sec. 2. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition to
or subtraction from the appropriation listed under them are available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010.
"The second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011.
Supplemental appropriations, reductions to appropriations, and transfers for the fiscal year
ending June 30, 2010, are effective the day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin POLLUTION CONTROL AGENCY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end			new text begin $ new text end	new text begin (1,710,000) new text end	new text begin $ new text end	new text begin (2,397,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin General new text end	new text begin (276,000) new text end	new text begin (455,000) new text end
new text begin Environmental new text end	new text begin (1,316,000) new text end	new text begin (1,763,000) new text end
new text begin Remediation new text end	new text begin (118,000) new text end	new text begin (179,000) new text end

new text begin The appropriation additions or reductions for
each purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Water new text end

new text begin (439,000) new text end

new text begin (626,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin General new text end	new text begin (186,000) new text end	new text begin (304,000) new text end
new text begin Environmental new text end	new text begin (253,000) new text end	new text begin (322,000) new text end

new text begin The legislature approves the groundwater
protection plan submitted to the legislature
in January 2010 as required by Laws 2009,
chapter 172, article 2, section 4, paragraph
(m), and authorizes the Pollution Control
Agency to spend that appropriation in
accordance with the approved plan.
new text end

new text begin Subd. 3. new text end new text begin Air new text end

new text begin (174,000) new text end

new text begin (323,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin Environmental new text end	new text begin (174,000) new text end	new text begin (323,000) new text end

new text begin Subd. 4. new text end new text begin Land new text end

new text begin (149,000) new text end

new text begin (274,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin Environmental new text end	new text begin (31,000) new text end	new text begin (95,000) new text end
new text begin Remediation new text end	new text begin (118,000) new text end	new text begin (179,000) new text end

new text begin Subd. 5. new text end new text begin Environmental Assistance and Cross Media new text end

new text begin (919,000) new text end

new text begin (1,118,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin General new text end	new text begin (61,000) new text end	new text begin (95,000) new text end
new text begin Environmental new text end	new text begin (858,000) new text end	new text begin (1,023,000) new text end

new text begin Subd. 6. new text end new text begin Administrative Support new text end

new text begin (29,000) new text end

new text begin (56,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin General new text end	new text begin (29,000) new text end	new text begin (56,000) new text end

new text begin Subd. 7. new text end new text begin Transfers to the General Fund new text end

new text begin By July 1, 2010, the commissioner of the
Pollution Control Agency shall transfer
$3,429,000 from the environmental fund to
the general fund. Of this amount, $200,000
is from the metropolitan landfill account
and $150,000 is from the electronic waste
account in the environmental fund.
new text end

new text begin By July 1, 2010, the commissioner shall
transfer $297,000 from the remediation fund
to the general fund.
new text end

new text begin By July 1, 2010, the commissioner shall
transfer $790,000 from the agency's indirect
cost account in the miscellaneous special
revenue account to the general fund.
new text end

Sec. 4. new text begin NATURAL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin (859,787) new text end

new text begin $ new text end

new text begin (1,371,606) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (859,787) new text end	new text begin (1,759,605) new text end
new text begin Natural Resources new text end	new text begin -0- new text end	new text begin (862,001) new text end
new text begin Game and Fish new text end	new text begin -0- new text end	new text begin 250,000 new text end
new text begin Environmental Trust new text end	new text begin -0- new text end	new text begin 1,000,000 new text end

new text begin Subd. 2. new text end new text begin Lands and Minerals new text end

new text begin (114,450) new text end

new text begin (283,050) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (114,450) new text end	new text begin (283,050) new text end

new text begin Subd. 3. new text end new text begin Water Resources Management new text end

new text begin (50,000) new text end

new text begin (120,000) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (50,000) new text end	new text begin (120,000) new text end

new text begin Subd. 4. new text end new text begin Forest Management new text end

new text begin (176,000) new text end

new text begin 891,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (176,000) new text end	new text begin (359,000) new text end
new text begin Game and Fish new text end	new text begin -0- new text end	new text begin 250,000 new text end
new text begin Environmental Trust new text end	new text begin -0- new text end	new text begin 1,000,000 new text end

new text begin $250,000 in 2011 is from the heritage
enhancement account to maintain and expand
the ecological classification system program
on state forest lands. This is a onetime
appropriation.
new text end

new text begin $1,000,000 in 2011 is from the environmental
trust fund to the commissioner of natural
resources under Minnesota Statutes, section
88.82, for grants to communities to provide
funding for no-interest loans to private land
owners for the removal of emerald ash borer
infested ash trees on private lands. Grants
made to communities will be available for
ten years. At the end of the ten-year grant
period, the full grant amount will be canceled
for redeposit in the environmental trust fund.
This appropriation cancels on June 30, 2012.
new text end

new text begin $106,089 in 2011 is transferred from the
forest resource assessment appropriation in
the dedicated receipts account in the natural
resources fund to the general fund. This is a
onetime transfer.
new text end

new text begin Subd. 5. new text end new text begin Parks and Trails Management new text end

new text begin (203,337) new text end

new text begin (1,345,556) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (203,337) new text end	new text begin (483,555) new text end
new text begin Natural Resources new text end	new text begin 0 new text end	new text begin (862,001) new text end

new text begin Subd. 6. new text end new text begin Fish and Wildlife Management new text end

new text begin -0- new text end

new text begin (50,000) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin (50,000) new text end

new text begin $340,000 in 2011 is transferred from the
account balance in the water recreation
electronic licensing appropriation in the
natural resources fund to the general fund.
This is a onetime transfer.
new text end

new text begin Subd. 7. new text end new text begin Ecological Services new text end

new text begin (170,000) new text end

new text begin (140,000) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (170,000) new text end	new text begin (140,000) new text end

new text begin Subd. 8. new text end new text begin Enforcement new text end

new text begin (136,000) new text end

new text begin (224,000) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (136,000) new text end	new text begin (224,000) new text end

new text begin On June 30, 2010, the balance of surcharges
on criminal and traffic offenders credited
to the game and fish fund under Minnesota
Statutes, section 357.021, subdivision 7, and
collected prior to that date are transferred to
the general fund.
new text end

new text begin Subd. 9. new text end new text begin Operations Support new text end

new text begin (10,000) new text end

new text begin (100,000) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin (10,000) new text end	new text begin (100,000) new text end

Sec. 5. new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin (460,000) new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin -0- new text end	new text begin (460,000) new text end

new text begin $20,000 in 2011 is a reduction from
the appropriation for establishing and
maintaining riparian vegetation buffers of
restored native prairie and restored prairie.
new text end

new text begin $100,000 in 2011 is a reduction in the
appropriation for cost-share grants to local
governments for public drainage records
modernization.
new text end

new text begin $100,000 in 2011 is a reduction from
the appropriation for grants to local units
of government within the 11-county
metropolitan area to improve response to
major wetland violations.
new text end

new text begin $100,000 in 2011 is a reduction from the
appropriation to transfer to the commissioner
of natural resources for enforcement of
wetland violations.
new text end

new text begin $25,000 in 2011 is a reduction in the
appropriation to provide assistance to local
drainage management officials and for the
costs of the Drainage Work Group.
new text end

new text begin $40,000 in 2011 is a reduction in the
appropriation for implementation and
enforcement of the Wetland Conservation
Act.
new text end

new text begin $384,000 of the current balance in the
agricultural watershed restoration account
is canceled back to the general fund on
December 15, 2010.
new text end

new text begin Subd. 2. new text end new text begin Reduction; DR-1717 Disaster Relief new text end

new text begin Laws 2007, First Special Session chapter 2,
article 1, is reduced as follows:
new text end

new text begin $40,000 in 2010 from funds received
interagency for disaster relief in the area
included in DR-1717.
new text end

new text begin Subd. 3. new text end new text begin Reduction; Rehabilitation Erosion and Sediment Control new text end

new text begin Laws 2008, chapter 363, article 5, section 5,
is reduced as follows:
new text end

new text begin $125,000 in 2010 from the appropriation
for implementing rehabilitation erosion and
sediment control projects in the area included
in DR-1717.
new text end

new text begin Subd. 4. new text end new text begin Returned Grants new text end

new text begin Beginning July 1, 2010, all returned grant
money originating from general fund grant
programs will be deposited into individual
accounts in the special revenue fund and held
for eventual transfer back to the general fund.
On December 15, 2010, and on December
15 of each year thereafter, $310,000 of the
receipts in this special revenue fund will be
transferred to the general fund. If less than
$310,000 is available on the transfer date, an
additional transfer on June 15 sufficient to
make the $310,000 annual obligation will
be made.
new text end

Sec. 6. new text begin METROPOLITAN COUNCIL new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 2,388,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin General new text end	new text begin -0- new text end	new text begin (112,000) new text end
new text begin Clean Water new text end	new text begin -0- new text end	new text begin 2,500,000 new text end

new text begin The fiscal year 2011 general fund base
appropriation for regional parks is reduced
by $112,000. This reduction is permanent.
new text end

new text begin $2,000,000 is from the clean water fund
pursuant to Minnesota Statutes, section
114D.50, to the Metropolitan Council to
provide grants or loans to local governments
for nonmunicipal wastewater inflow and
infiltration reduction programs in the
metropolitan area, as defined in Minnesota
Statutes, section 473.121, subdivision 2.
This appropriation applies in the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington, and is available until
expended.
new text end

new text begin $500,000 is from the clean water fund for
implementation of the master water supply
plan developed under Minnesota Statutes,
section 473.1565. This appropriation applies
in the counties of Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott, and Washington,
and is available until expended.
new text end

Sec. 7. new text begin MINNEOTA CONSERVATION CORPS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin (14,000) new text end

new text begin $ new text end

new text begin (29,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin General new text end	new text begin (7,000) new text end	new text begin (14,000) new text end
new text begin Natural Resources new text end	new text begin (7,000) new text end	new text begin (15,000) new text end

new text begin The appropriation reduction in the natural
resources fund is in the current biennium
only. On June 1, 2010, $7,000 will be
transferred from the natural resources fund to
the general fund. On June 1, 2011, $15,000
will be transferred from the natural resources
fund to the general fund.
new text end

Sec. 8. new text begin ZOOLOGICAL BOARD new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin (24,000) new text end

new text begin $ new text end

new text begin (197,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin General new text end	new text begin (24,000) new text end	new text begin (197,000) new text end

Sec. 9.

Minnesota Statutes 2008, section 84.027, subdivision 15, is amended to read:

Subd. 15.

Electronic transactions.

(a) The commissioner may receive an
application for, sell, and issue any license, stamp, permit, pass, sticker, deleted text begin duplicate deleted text end new text begin gift
card, new text end safety training certification, registration, or transfer under the jurisdiction of the
commissioner by electronic means, including by telephone. Notwithstanding section
97A.472, electronic and telephone transactions may be made outside of the state. The
commissioner may:

(1) provide for the electronic transfer of funds generated by electronic transactions,
including by telephone;

(2) assign an identification number to an applicant who purchases a hunting or
fishing license or recreational vehicle registration by electronic means, to serve as
temporary authorization to engage in the activity requiring a license or registration until
the license or registration is received or expires;

(3) charge and permit agents to charge a fee of individuals who make electronic
transactions and transactions by telephone or Internet, including issuing fees and an
additional transaction fee not to exceed $3.50;

(4) charge and permit agents to charge a convenience fee not to exceed three percent
of the cost of the license to individuals who use electronic bank cards for payment. An
electronic licensing system agent charging a fee of individuals making an electronic
bank card transaction in person must post a sign informing individuals of the fee. The
sign must be near the point of payment, clearly visible, include the amount of the fee, and
state: "License agents are allowed by state law to charge a fee not to exceed three percent
of the cost of state licenses to persons who use electronic bank cards for payment. The
fee is not required by state law.";

(5) establish, by written order, an electronic licensing system commission to be
paid by revenues generated from all sales made through the electronic licensing system.
The commissioner shall establish the commission in a manner that neither significantly
overrecovers nor underrecovers costs involved in providing the electronic licensing
system; and

(6) adopt rules to administer the provisions of this subdivision.

(b) The fees established under paragraph (a), clauses (3) and (4), and the commission
established under paragraph (a), clause (5), are not subject to the rulemaking procedures
of chapter 14 and section 14.386 does not apply.

(c) Money received from fees and commissions collected under this subdivision,
including interest earned, is annually appropriated from the game and fish fund and the
natural resources fund to the commissioner for the cost of electronic licensing.

Sec. 10.

Minnesota Statutes 2008, section 85.052, subdivision 4, is amended to read:

Subd. 4.

Deposit of fees.

(a) Fees paid for providing contracted products and
services within a state park, state recreation area, or wayside, and for special state park
uses under this section shall be deposited in the natural resources fund and credited to a
state parks account.

(b) Gross receipts derived from sales, rentals, or leases of natural resources within
state parks, recreation areas, and waysides, other than those on trust fund lands, must be
deposited in the state treasury and credited to the deleted text begin general fund deleted text end new text begin state parks working capital
account new text end .

(c) Notwithstanding paragraph (b), the gross receipts from the sale of stockpile
materials, aggregate, or other earth materials from the Iron Range Off-Highway Vehicle
Recreation Area shall be deposited in the dedicated accounts in the natural resources fund
from which the purchase of the stockpile material was made.

Sec. 11.

Minnesota Statutes 2008, section 85.22, subdivision 5, is amended to read:

Subd. 5.

Exemption.

Purchases new text begin for resale or rental new text end made from the state parks
working capital deleted text begin fund deleted text end new text begin account new text end are exempt from competitive bidding, notwithstanding
chapter 16C.

Sec. 12.

Minnesota Statutes 2008, section 97A.015, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Accompanied. new text end

new text begin "Accompanied" means:
new text end

new text begin (1) for a youth age 13 or under hunting small game other than wild turkey, a parent or
guardian over age 18 is within unaided sight and hearing distance of the youth hunter that is
adequate for the parent or guardian to provide direction and control over the youth hunter;
new text end

new text begin (2) for a youth age 13 or under hunting wild turkey or big game, a parent or guardian
over age 18 is in close enough proximity of the youth hunter for the parent or guardian to
immediately assume control of the youth hunter's firearm or bow; or
new text end

new text begin (3) for a person age 13 or over born after December 31, 1979, and hunting with an
apprentice hunter validation under section 97B.022, an adult licensed to hunt in Minnesota
whose license was not obtained using an apprentice hunter validation is within unaided
sight and hearing distance of the person that is adequate for the licensed adult to provide
direction and control over the apprentice hunter.
new text end

Sec. 13.

Minnesota Statutes 2009 Supplement, section 97A.075, subdivision 1, is
amended to read:

Subdivision 1.

Deer, bear, and lifetime licenses.

(a) For purposes of this
subdivision, "deer license" means a license issued under section 97A.475, subdivisions 2,
clauses deleted text begin (5), deleted text end (6), (7), deleted text begin (13), (14), deleted text end and deleted text begin (15) deleted text end new text begin (8) new text end , and 3, clauses deleted text begin (2), deleted text end (3), (4), deleted text begin (10), deleted text end new text begin (5), and new text end (11),
deleted text begin and (12), deleted text end and licenses issued under section 97B.301, subdivision 4.

(b) $2 from each annual deer license and $2 annually from the lifetime fish and
wildlife trust fund, established in section 97A.4742, for each license issued under section
97A.473, subdivision 4, shall be credited to the deer management account and shall be
used for deer habitat improvement or deer management programs.

(c) $1 from each annual deer license and each bear license and $1 annually from
the lifetime fish and wildlife trust fund, established in section 97A.4742, for each license
issued under section 97A.473, subdivision 4, shall be credited to the deer and bear
management account and shall be used for deer and bear management programs, including
a computerized licensing system.

(d) Fifty cents from each deer license is credited to the emergency deer feeding and
wild cervidae health management account and is appropriated for emergency deer feeding
and wild cervidae health management. Money appropriated for emergency deer feeding
and wild cervidae health management is available until expended. The commissioner must
inform the legislative chairs of the natural resources finance committees every two years
on how the money for emergency deer feeding and wild cervidae health management
has been spent.

When the unencumbered balance in the appropriation for emergency deer feeding
and wild cervidae health management exceeds $2,500,000 at the end of a fiscal year, the
unencumbered balance in excess of $2,500,000 is canceled and available for deer and bear
management programs and computerized licensing.

Sec. 14.

Minnesota Statutes 2009 Supplement, section 97A.075, subdivision 5, is
amended to read:

Subd. 5.

Turkey account.

(a) $4.50 from each turkey license sold, except youth
licenses under section 97A.475, subdivision 2, clause deleted text begin (4) deleted text end new text begin (5) new text end , and subdivision 3, clause
deleted text begin (7) deleted text end new text begin (8) new text end , must be credited to the wild turkey management account. Money in the account
may be used only for:

(1) the development, restoration, and maintenance of suitable habitat for wild
turkeys on public and private land including forest stand improvement and establishment
of nesting cover, winter roost area, and reliable food sources;

(2) acquisitions of, or easements on, critical wild turkey habitat;

(3) reimbursement of expenditures to provide wild turkey habitat on public and
private land;

(4) trapping and transplantation of wild turkeys; and

(5) the promotion of turkey habitat development and maintenance, population
surveys and monitoring, and research.

(b) Money in the account may not be used for:

(1) costs unless they are directly related to a specific parcel of land under paragraph
(a), clauses (1) to (3), a specific trap and transplant project under paragraph (a), clause (4),
or to specific promotional or evaluative activities under paragraph (a), clause (5); or

(2) any permanent personnel costs.

Sec. 15.

new text begin [97A.26] PEACE OFFICER TRAINING ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account established; sources. new text end

new text begin The peace officer training account is
created in the game and fish fund in the state treasury. Revenue from the portion of the
surcharges assessed to criminal and traffic offenders under section 357.021, subdivision
7, clause (1), shall be deposited in the account and is appropriated to the commissioner.
Money in the account may be spent only for the purposes provided in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Purposes of account. new text end

new text begin Money in the peace officer training account may be
spent by the commissioner only for peace officer training for employees of the department
who are licensed under sections 626.84 to 626.863 to enforce game and fish laws.
new text end

Sec. 16.

Minnesota Statutes 2008, section 97A.435, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

Persons eligible for a turkey license shall be determined by
deleted text begin this section and commissioner's deleted text end rule new text begin adopted by the commissioner new text end . deleted text begin A person is eligible for
a turkey license only if the person is at least age 16 before the season opens, possesses a
firearms safety certificate, or, if under age 12, is accompanied by a parent or guardian.
deleted text end

Sec. 17.

Minnesota Statutes 2009 Supplement, section 97A.441, subdivision 7, is
amended to read:

Subd. 7.

Owners or tenants of agricultural land.

(a) The commissioner may
issue, without a fee, a license to take an antlerless deer to a resident who is an owner or
tenant, or a nonresident who is an owner, of at least 80 acres of agricultural land, as
defined in section 97B.001, in deer permit areas that have deer archery licenses to take
additional deer under section 97B.301, subdivision 4. A person may receive only one
license per year under this subdivision. For properties with co-owners or cotenants, only
one co-owner or cotenant may receive a license under this subdivision per year. The
license issued under this subdivision is restricted to land leased for agricultural purposes
or owned by the holder of the license within the permit area where the qualifying land
is located. The holder of the license may transfer the license to the holder's spouse or
dependent. Notwithstanding sections 97A.415, subdivision 1, and 97B.301, subdivision
2, the holder of the license may purchase an additional license for taking deer and may
take an additional deer under that license.

(b) A person who obtains a license under paragraph (a) must allow public deer
hunting on their land during that deer hunting season, with the exception of the first
Saturday and Sunday during the deer hunting season applicable to the license issued under
section 97A.475, subdivision 2, clause deleted text begin (5) deleted text end new text begin (6) new text end .

Sec. 18.

Minnesota Statutes 2008, section 97A.445, subdivision 5, is amended to read:

Subd. 5.

Small game hunting deleted text begin ; Take a Kid Hunting Weekend deleted text end .

new text begin (a) new text end A resident over
age 18 may take small game by hunting without a license during one Saturday and Sunday
of the small game hunting season designated by rule of the commissioner if accompanied
by a child who is under age deleted text begin 16 deleted text end new text begin 18 new text end . The commissioner shall publicize the Saturday and
Sunday as "Take a Kid Hunting Weekend." new text begin Notwithstanding section 97A.451, subdivision
3, a person under age 18 does not need a hunting license to take small game by hunting on
the weekend designated under this paragraph.
new text end

new text begin (b) Notwithstanding section 97A.451, subdivision 3, a person under age 16 may
take waterfowl without a license when accompanied by a nonhunting adult age 18 or
over during youth waterfowl hunting days designated by rule of the commissioner in
accordance with federal law.
new text end

Sec. 19.

Minnesota Statutes 2008, section 97A.451, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Residents under age 16; small game deleted text end new text begin Resident and nonresident hunting new text end .

(a) deleted text begin A resident under age 16 must obtain a small game license in order to take small game
by firearms or bow and arrow without paying the applicable fees under section 97A.475,
subdivisions 2, 4, and 5, if the resident is: deleted text end new text begin Except as otherwise specifically provided by
law, a person must obtain a license to hunt big game or small game by firearms or bow and
arrow and is eligible to obtain a license and use it for hunting if the person was born on or
before December 31, 1979, or, if born after December 31, 1979, is:
new text end

new text begin (1) 12 years of age or under and is accompanied by a parent or guardian;
new text end

new text begin (2) 13 years of age, possesses a hunter education firearms safety certificate, and
is accompanied by a parent or guardian;
new text end

new text begin (3) 14 years of age or over and possesses a hunter education firearms safety
certificate; or
new text end

new text begin (4) 13 years of age or over, possesses an apprentice hunter validation, and is
accompanied by an adult 18 years of age or over who is licensed to hunt in Minnesota and
whose license was not obtained using an apprentice hunter validation.
new text end

deleted text begin (1) age 14 or 15 and possesses a firearms safety certificate;
deleted text end

deleted text begin (2) age 13, possesses a firearms safety certificate, and is accompanied by a parent or
guardian;
deleted text end

deleted text begin (3) age 13, 14, or 15, possesses an apprentice hunter validation, and is accompanied
by a parent or guardian who possesses a small game license that was not obtained using an
apprentice hunter validation; or
deleted text end

deleted text begin (4) age 12 or under and is accompanied by a parent or guardian.
deleted text end

(b) A deleted text begin resident under age 16 may take small game by trapping without a small game
license, but a deleted text end resident 13 years of age or older must have a trapping license new text begin to take small
game by trapping new text end . A resident under age 13 may trap without a trapping license, but may
not register fisher, otter, bobcat, or pine marten unless the resident is at least age five. Any
fisher, otter, bobcat, or pine marten taken by a resident under age five must be included in
the limit of the accompanying parent or guardian.

deleted text begin (c) A resident under age 12 may apply for a turkey license and may take a turkey
without a firearms safety certificate if the resident is accompanied by an adult parent or
guardian who has a firearms safety certificate.
deleted text end

deleted text begin (d) A resident under age 12 may apply for a prairie chicken license and may take a
prairie chicken without a firearms safety certificate if the resident is accompanied by an
adult parent or guardian who has a firearms safety certificate.
deleted text end

Sec. 20.

Minnesota Statutes 2009 Supplement, section 97A.475, subdivision 2, is
amended to read:

Subd. 2.

Resident hunting.

Fees for the following licenses, to be issued to residents
only, are:

(1) new text begin for persons under age 18 to take small game, $2.50;
new text end

new text begin (2) new text end for persons age 18 or over and under age 65 to take small game, $12.50;

deleted text begin (2) deleted text end new text begin (3) new text end for persons deleted text begin ages 16 and 17 and deleted text end age 65 or over, $6 to take small game;

deleted text begin (3) deleted text end new text begin (4) new text end for persons age 18 or over to take turkey, $23;

deleted text begin (4) deleted text end new text begin (5) new text end for persons under age 18 to take turkey, deleted text begin $12 deleted text end new text begin $2.50 new text end ;

deleted text begin (5) deleted text end new text begin (6) new text end for persons age 18 or over to take deer with firearms during the regular
firearms season, $26;

deleted text begin (6) deleted text end new text begin (7) new text end for persons age 18 or over to take deer by archery, $26;

deleted text begin (7) deleted text end new text begin (8) new text end for persons age 18 or over to take deer by muzzleloader during the
muzzleloader season, $26;

deleted text begin (8) deleted text end new text begin (9) new text end to take moose, for a party of not more than six persons, $310;

deleted text begin (9) deleted text end new text begin (10) new text end to take bear, $38;

deleted text begin (10) deleted text end new text begin (11) new text end to take elk, for a party of not more than two persons, $250;

deleted text begin (11) deleted text end new text begin (12) new text end to take Canada geese during a special season, $4;

deleted text begin (12) deleted text end new text begin (13) new text end to take prairie chickens, $20;

deleted text begin (13) deleted text end new text begin (14) new text end for persons under age 18 to take deer with firearms during the regular
firearms season, deleted text begin $13 deleted text end new text begin $2.50 new text end ;

deleted text begin (14) deleted text end new text begin (15) new text end for persons under age 18 to take deer by archery, deleted text begin $13 deleted text end new text begin $2.50 new text end ; and

deleted text begin (15) deleted text end new text begin (16) new text end for persons under age 18 to take deer by muzzleloader during the
muzzleloader season, deleted text begin $13 deleted text end new text begin $2.50 new text end .

Sec. 21.

Minnesota Statutes 2009 Supplement, section 97A.475, subdivision 3, is
amended to read:

Subd. 3.

Nonresident hunting.

(a) Fees for the following licenses, to be issued
to nonresidents, are:

(1) new text begin for persons under age 18 to take small game, $2.50;
new text end

new text begin (2) new text end for persons age 18 or over to take small game, $73;

deleted text begin (2) deleted text end new text begin (3) new text end for persons age 18 or over to take deer with firearms during the regular
firearms season, $135;

deleted text begin (3) deleted text end new text begin (4) new text end for persons age 18 or over to take deer by archery, $135;

deleted text begin (4) deleted text end new text begin (5) new text end for persons age 18 or over to take deer by muzzleloader during the
muzzleloader season, $135;

deleted text begin (5) deleted text end new text begin (6) new text end to take bear, $195;

deleted text begin (6) deleted text end new text begin (7) new text end for persons age 18 deleted text begin and older deleted text end new text begin or over new text end to take turkey, $78;

deleted text begin (7) deleted text end new text begin (8) new text end for persons under age 18 to take turkey, deleted text begin $12 deleted text end new text begin $2.50 new text end ;

deleted text begin (8) deleted text end new text begin (9) new text end to take raccoon or bobcat, $155;

deleted text begin (9) deleted text end new text begin (10) new text end to take Canada geese during a special season, $4;

deleted text begin (10) deleted text end new text begin (11) new text end for persons under age 18 to take deer with firearms during the regular
firearms season in any open season option or time period, $13;

deleted text begin (11) deleted text end new text begin (12) new text end for persons under age 18 to take deer by archery, $13; and

deleted text begin (12) deleted text end new text begin (13) new text end for persons under age 18 to take deer during the muzzleloader season,
deleted text begin $13 deleted text end new text begin $2.50 new text end .

(b) A $5 surcharge shall be added to nonresident hunting licenses issued under
paragraph (a), clauses deleted text begin (1) deleted text end new text begin (2) new text end to deleted text begin (8) deleted text end new text begin (9) new text end . An additional commission may not be assessed
on this surcharge.

Sec. 22.

Minnesota Statutes 2008, section 97A.475, subdivision 3a, is amended to read:

Subd. 3a.

Deer license surcharge.

A person may agree to add a donation of $1,
$3, or $5 to the fees for annual resident and nonresident licenses to take deer by firearms
or archery established under subdivisions 2, clauses deleted text begin (5), deleted text end (6), (7), deleted text begin (11), deleted text end and deleted text begin (13) deleted text end new text begin (8) new text end , and
3, clauses deleted text begin (2), deleted text end (3), (4), and deleted text begin (9) deleted text end new text begin (5) new text end . Beginning March 1, 2008, fees for bonus licenses to
take deer by firearms or archery established under section 97B.301, subdivision 4, must be
increased by a surcharge of $1. An additional commission may not be assessed on the
donation or surcharge and the following statement must be included in the annual deer
hunting regulations: "The deer license donations and surcharges are being paid by hunters
for deer management, including assisting with the costs of processing deer donated for
charitable purposes."

Sec. 23.

Minnesota Statutes 2008, section 97A.475, subdivision 4, is amended to read:

Subd. 4.

Small game surcharge.

Fees for annual licenses to take small game must
be increased by a surcharge of $6.50. An additional commission may not be assessed on
the surcharge and the following statement must be included in the annual small game
hunting regulations: "This $6.50 surcharge is being paid by hunters for the acquisition and
development of wildlife lands." new text begin Small game licenses issued to individuals under age 18
are exempt from this surcharge.
new text end

Sec. 24.

Minnesota Statutes 2008, section 97A.475, subdivision 43, is amended to read:

Subd. 43.

Duplicate licenses.

The fees for duplicate licenses are:

(1) for licenses to take big game, $5; deleted text begin and
deleted text end

(2) new text begin for a license issued to a person under age 18, $1; and
new text end

new text begin (3) new text end for other licenses, $2.

Sec. 25.

Minnesota Statutes 2008, section 97A.475, subdivision 44, is amended to read:

Subd. 44.

Replacement licenses.

new text begin (a) new text end The fee for a replacement firearms deer
license is $5.

new text begin (b) The fee for a replacement firearms deer license issued to a person under age
18 is $1.
new text end

Sec. 26.

Minnesota Statutes 2008, section 97B.015, subdivision 4, is amended to read:

Subd. 4.

Student fee.

To defray the expense of the course, the Enforcement
Division shall collect a fee from each person that takes the new text begin hunter education new text end firearm safety
course. The commissioner shall establish a fee that neither significantly overrecovers nor
underrecovers costs, including overhead costs, involved in providing the services. The
fee is not subject to the rulemaking provisions of chapter 14 and section 14.386 does not
apply. The fees shall be deposited in the game and fish fund and the amount thereof
is appropriated annually to the Enforcement Division of the Department of Natural
Resources for the administration of the program. In addition to the fee established by
the commissioner, instructors may charge each person up to the established fee amount
for class materials and expenses.

Sec. 27.

Minnesota Statutes 2008, section 97B.015, subdivision 5, is amended to read:

Subd. 5.

new text begin Hunter education new text end firearms safety certificate.

The commissioner shall
issue a new text begin hunter education new text end firearms safety certificate to a person that satisfactorily completes
the required course of instruction. A person must be at least age 11 to take the new text begin hunter
education new text end firearms safety course deleted text begin and may receive a firearms safety certificate, but the
certificate is not valid for hunting until the year the person reaches age 12. A person who
is age 11 and has a firearms safety certificate may purchase a license to take big game that
will be valid for hunting during the entire regular season for which the license is valid if
the person will reach age 12 during that calendar year. A firearms safety certificate issued
to a person under age 12 by another state as provided in section 97B.020 is not valid for
hunting in Minnesota until the person reaches age 12 deleted text end . The form and content of the new text begin hunter
education new text end firearms safety certificate shall be prescribed by the commissioner.

Sec. 28.

Minnesota Statutes 2008, section 97B.015, subdivision 5a, is amended to read:

Subd. 5a.

Exemption for military personnel.

Notwithstanding subdivision 5, a
person who has successfully completed basic training in the United States armed forces is
exempt from the range and shooting exercise portion of the required course of instruction
for the new text begin hunter education new text end firearms safety certificate. The commissioner may require written
proof of the person's military training, as deemed appropriate for implementing this
subdivision. The commissioner shall publicly announce this exemption from the range
and shooting exercise requirement and the availability of the department's online, remote
study option for adults seeking new text begin hunter education new text end firearms safety certification. Military
personnel are not exempt from any other requirement of this section for obtaining a new text begin hunter
education new text end firearms safety certificate.

Sec. 29.

Minnesota Statutes 2008, section 97B.015, subdivision 6, is amended to read:

Subd. 6.

Provisional certificate for persons with developmental disability.

Upon
the recommendation of a course instructor, the commissioner may issue a provisional
new text begin hunter education new text end firearms safety certificate to a person who satisfactorily completes the
classroom portion of the new text begin hunter education new text end firearms safety course but is unable to pass
the written or an alternate format exam portion of the course because of developmental
disability as defined in section 97B.1055, subdivision 1. The certificate is valid only
when used according to section 97B.1055.

Sec. 30.

Minnesota Statutes 2008, section 97B.015, subdivision 7, is amended to read:

Subd. 7.

Fee for duplicate certificate.

The commissioner shall collect a fee, to
include a $1 issuing fee for licensing agents, for issuing a duplicate new text begin hunter education
new text end firearms safety certificate. The commissioner shall establish a fee that neither significantly
overrecovers nor underrecovers costs, including overhead costs, involved in providing
the service. The fee is not subject to the rulemaking provisions of chapter 14 and section
14.386 does not apply. The commissioner may establish the fee notwithstanding section
16A.1283. The duplicate certificate fees, except for the issuing fee for licensing agents
under this subdivision, shall be deposited in the game and fish fund and, except for the
electronic licensing system commission established by the commissioner under section
84.027, subdivision 15, and issuing fees collected by the commissioner, are appropriated
annually to the Enforcement Division of the Department of Natural Resources for the
administration of the new text begin hunter education new text end firearm safety course program.

Sec. 31.

Minnesota Statutes 2008, section 97B.020, is amended to read:

97B.020 new text begin HUNTER EDUCATION new text end FIREARMS SAFETY CERTIFICATE
REQUIRED.

(a) Except as provided in this section deleted text begin and section 97A.451, subdivision 3a deleted text end , a person
new text begin age 13 or over new text end born after December 31, 1979, may not obtain an annual license to take
wild animals by firearms unless the person has:

(1) a new text begin hunter education new text end firearms safety certificate or equivalent certificate;

(2) a driver's license or identification card with a valid new text begin hunter education new text end firearms
safety qualification indicator issued under section 171.07, subdivision 13;

(3) a previous hunting license with a valid new text begin hunter education new text end firearms safety
qualification indicator;

(4) an apprentice hunter validation issued under section 97B.022; or

(5) other evidence indicating that the person has completed in this state or in another
state a hunter safety course recognized by the department under a reciprocity agreement or
certified by the department as substantially similar.

(b) A person who is on active duty and has successfully completed basic training
in the United States armed forces, reserve component, or National Guard may obtain a
hunting license or approval authorizing hunting regardless of whether the person is issued
a new text begin hunter education new text end firearms safety certificate.

(c) A person new text begin age 13 or over new text end born after December 31, 1979, may not use a lifetime
license to take wild animals by firearms, unless the person meets the requirements for
obtaining an annual license under paragraph (a) or (b).

Sec. 32.

Minnesota Statutes 2008, section 97B.021, subdivision 1, is amended to read:

Subdivision 1.

Restrictions.

(a) Except as provided in this subdivision, a person
under the age of 16 may not possess a firearm, unless accompanied by a parent or guardian.

(b) A person under age 16 may possess a firearm without being accompanied by a
parent or guardian:

(1) on land owned by, or occupied as the principal residence of, the person or the
person's parent or guardian;

(2) while participating in an organized target shooting program with adult
supervision;

(3) while the person is participating in a new text begin hunter education new text end firearms safety program
or traveling to and from class; or

(4) if the person is age 14 or 15 and has a new text begin hunter education new text end firearms safety certificate.

new text begin (c) A person age 13, 14, or 15 hunting with an apprentice hunter validation may
possess a firearm if accompanied by a parent or guardian age 18 or over who is licensed
to hunt in Minnesota and whose license was not obtained using an apprentice hunter
validation.
new text end

Sec. 33.

new text begin [97B.0215] PARENT OR GUARDIAN RESPONSIBILITY; VIOLATION.
new text end

new text begin A parent or guardian may not knowingly direct, allow, or permit a person under the
age of 18 to hunt without the required license, permit, training, or certification, or in
violation of the game and fish laws.
new text end

Sec. 34.

Minnesota Statutes 2008, section 97B.022, subdivision 2, is amended to read:

Subd. 2.

Apprentice hunter validation requirements.

A resident born after
December 31, 1979, who is age deleted text begin 12 deleted text end new text begin 13 new text end or deleted text begin older deleted text end new text begin over new text end and who does not possess a new text begin hunter
education new text end firearms safety certificate new text begin or a nonresident who is age 13 to 17 and who does
not possess a hunter education firearms safety certificate new text end may be issued an apprentice
hunter validation. An apprentice hunter validation is valid for only deleted text begin one deleted text end new text begin two new text end license deleted text begin year deleted text end new text begin
years new text end in a lifetime. An individual in possession of an apprentice hunter validation may
hunt small game deleted text begin and deleted text end new text begin , new text end deer new text begin , and bear new text end only when accompanied by an adult licensed to hunt
in Minnesota whose license was not obtained using an apprentice hunter validation. An
apprentice hunter validation holder must obtain all required licenses and stamps.

Sec. 35.

Minnesota Statutes 2008, section 97B.301, subdivision 3, is amended to read:

Subd. 3.

Party hunting.

If two or more persons with licenses to take deer by
firearms, or two or more persons with licenses to take deer by archery, are hunting as a
party, a member of the party may take more than one deer, but the total number of deer
taken by the party may not exceed the number of persons licensed to take deer in the
party. new text begin For a deer license issued to a person under age 18, only the person to whom the
license is issued may take and tag a deer under that license.
new text end

Sec. 36.

Minnesota Statutes 2008, section 97B.301, subdivision 6, is amended to read:

Subd. 6.

Residents or nonresidents under age 18 may take deer of either sex.

A
resident or nonresident under the age of 18 may take a deer of either sex except in those
antlerless permit areas and seasons where no antlerless permits are offered. In antlerless
permit areas where no antlerless permits are offered, the commissioner may provide
a limited number of youth either sex permits to residents or nonresidents under age 18,
under the procedures provided in section 97B.305, and may give preference to residents or
nonresidents under the age of 18 that have not previously been selected. This subdivision
does not authorize the taking of deleted text begin an antlerless deleted text end deer new text begin on the youth hunter's license new text end by another
member of a party deleted text begin under subdivision 3 deleted text end .

Sec. 37.

Minnesota Statutes 2008, section 97B.601, subdivision 4, is amended to read:

Subd. 4.

Exception to license requirements.

(a) A deleted text begin resident under age 16 may take
small game without a small game license, and a deleted text end resident under age 13 may trap without a
trapping license, as provided in section 97A.451, subdivision 3.

(b) A person may take small game without a small game license on land occupied by
the person as a principal residence.

(c) An owner or occupant may take certain small game causing damage without a
small game or trapping license as provided in section 97B.655.

(d) A person may use dogs to pursue and tree raccoons under section 97B.621,
subdivision 2, during the closed season without a license.

(e) A person may take a turkey or a prairie chicken without a small game license.

new text begin (f) A person participating in "Take a Kid Hunting Weekend" may take small game
without a license as provided in section 97A.445, subdivision 5.
new text end

new text begin (g) A person under age 16 may take waterfowl without a small game license on
youth waterfowl days as provided in section 97A.445, subdivision 5.
new text end

new text begin (h) Certain military personnel or discharged veterans may take small game without a
license as provided in section 97A.465.
new text end

Sec. 38.

Minnesota Statutes 2008, section 103G.705, subdivision 2, is amended to read:

Subd. 2.

Stream protection and improvement fund.

There is established in the
state treasury a stream protection and redevelopment fund. All repayments of loans
made and administrative fees assessed under subdivision 1 must be deposited in this
fund. Interest earned on money in the fund accrues to the fund and money in the fund
is appropriated to the commissioner of natural resources for purposes of the stream
protection and redevelopment program, including costs incurred by the commissioner to
establish and administer the program. new text begin Beginning in fiscal year 2010, all repayments of
loans made and administrative fees assessed under subdivision 1 must be transferred
to the general fund. This includes any balance within the fund from repayments and
administrative fees assessed prior to July 1, 2009.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 39.

Minnesota Statutes 2009 Supplement, section 357.021, subdivision 7, is
amended to read:

Subd. 7.

Disbursement of surcharges by commissioner of management and
budget.

(a) Except as provided in paragraphs (b), (c), and (d), the commissioner of
management and budget shall disburse surcharges received under subdivision 6 and
section 97A.065, subdivision 2, as follows:

(1) one percent shall be credited to the new text begin peace officer training account in the new text end game
and fish fund new text begin and appropriated to the commissioner of natural resources new text end to provide peace
officer training for employees of the Department of Natural Resources who are licensed
under sections 626.84 to 626.863, and who possess peace officer authority for the purpose
of enforcing game and fish laws;

(2) 39 percent shall be credited to the peace officers training account in the special
revenue fund; and

(3) 60 percent shall be credited to the general fund.

(b) The commissioner of management and budget shall credit $3 of each surcharge
received under subdivision 6 and section 97A.065, subdivision 2, to the general fund.

(c) In addition to any amounts credited under paragraph (a), the commissioner of
management and budget shall credit $47 of each surcharge received under subdivision 6
and section 97A.065, subdivision 2, and the $12 parking surcharge, to the general fund.

(d) If the Ramsey County Board of Commissioners authorizes imposition of the
additional $1 surcharge provided for in subdivision 6, paragraph (a), the court administrator
in the Second Judicial District shall transmit the surcharge to the commissioner of
management and budget. The $1 special surcharge is deposited in a Ramsey County
surcharge account in the special revenue fund and amounts in the account are appropriated
to the trial courts for the administration of the petty misdemeanor diversion program
operated by the Second Judicial District Ramsey County Violations Bureau.

Sec. 40.

Laws 2009, chapter 172, article 2, section 5, is amended to read:

Sec. 5. DEPARTMENT OF NATURAL RESOURCES

$

6,690,000

$

7,835,000

(a) $1,240,000 the first year and $2,460,000
the second year are for assisting in water
quality assessments in supporting the
identification of impaired waters.

(b) $600,000 the first year and $525,000 the
second year are for drinking water planning
and protection activities.

(c) $1,050,000 the first year and $1,050,000
the second year are for TMDL development
and TMDL implementation plans for waters
listed on the United States Environmental
Protection Agency approved Impaired
Waters List in accordance with Minnesota
Statutes, chapter 114D.

(d) $2,800,000 the first year and $2,800,000
the second year are to acquire and distribute
high-resolution digital elevation data
using light detection and ranging to aid
with impaired waters modeling and total
maximum daily load implementation under
Minnesota Statutes, chapter 114D. The data
will be collected for areas of the state that
have not acquired such data prior to January
1, 2007, or to complete acquisition and
distribution of the data for those areas of
the state that have not previously received
state funds for acquiring and distributing
the data. The distribution of data acquired
under this paragraph must be conducted
under the auspices of the Land Management
Information Center or its successor, which
shall receive 2.5 percent of the appropriation
in this paragraph to support coordination of
data acquisition and distribution. Mapping
and data set distribution under this paragraph
must be completed within three years of
funds availability. The commissioner shall
utilize department staff whenever possible.
The commissioner may contract for services
only if they cannot otherwise be provided
by the department. If the commissioner
contracts for services with this appropriation
and any of the work done under the contract
will be done outside of the United States, the
commissioner must report to the chairs of the
house of representatives and senate finance
committees on the proposed contract at least
30 days before entering into the contract.
The report must include an analysis of why
the contract with the selected contractor
provides the state with "best value," as
defined in Minnesota Statutes, section
16C.02; any alternatives to the selected
contractor that were considered; what data
will be provided to the contractor, including
the data that will be transmitted outside of
the United States; what security measures
will be taken to ensure that the data is
treated in accordance with the Minnesota
Government Data Practices Act; and what
remedies will be available to the state if the
data is not treated in accordance with the
Minnesota Government Data Practices Act. new text begin
This appropriation is available until June 30,
2012.
new text end

(e) $250,000 the first year and $250,000
the second year are to adopt rules for the
Mississippi River corridor critical area
under Minnesota Statutes, section 116G.15.
The commissioner shall begin rulemaking
under chapter 14 no later than January 15,
2010. At least 30 days prior to beginning
the rulemaking, the commissioner shall
notify local units of government within the
Mississippi River corridor critical area of
the intent to adopt rules. The local units of
government shall make reasonable efforts to
notify the public of the contact information
for the appropriate department staff. The
commissioner shall maintain an e-mail
list of interested parties to provide timely
information about the proposed schedule
for rulemaking, opportunities for public
comment, and contact information for the
appropriate department staff.

(f) $500,000 the first year and $500,000
the second year are to investigate physical
and recharge characteristics as part of the
collection and interpretation of subsurface
geological information and acceleration of
the county geologic atlas program. This
appropriation represents a continuing effort
to complete the county geologic atlases
throughout the state in order to provide
information and assist in planning for the
sustainable use of groundwater and surface
water that does not harm ecosystems,
degrade water quality, or compromise the
ability of future generations to meet their
own needs. This appropriation is available
until December 31, 2014.

(g) $250,000 the first year and $250,000
the second year are for nonpoint source
restoration and protection activities.

Sec. 41. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 97A.451, subdivisions 3a and 4; 97A.485,
subdivision 12; and 97B.022, subdivision 1, new text end new text begin are repealed.
new text end

ARTICLE 2

ENERGY AND COMMERCE

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2010 new text end		new text begin 2011 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 210,000 new text end	new text begin $ new text end	new text begin (322,000) new text end	new text begin $ new text end	new text begin (112,000) new text end
new text begin Petroleum Tank Cleanup new text end		new text begin (25,000) new text end		new text begin (32,000) new text end		new text begin (57,000) new text end
new text begin Total new text end	new text begin $ new text end	new text begin 185,000 new text end	new text begin $ new text end	new text begin (354,000) new text end	new text begin $ new text end	new text begin (169,000) new text end

Sec. 2. new text begin ENERGY FINANCE APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 2, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. "The first year" is fiscal year 2010.
"The second year" is fiscal year 2011. "The biennium" is fiscal years 2010 and 2011.
Supplemental appropriations, reductions to appropriations, and transfers for the fiscal year
ending June 30, 2010, are effective the day following final enactment.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2010 new text end		new text begin 2011 new text end

Sec. 3. new text begin DEPARTMENT OF COMMERCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 185,000 new text end

new text begin $ new text end

new text begin (354,000) new text end

new text begin Appropriations by Fund new text end
	new text begin 2010 new text end	new text begin 2011 new text end
new text begin General new text end	new text begin 210,000 new text end	new text begin (322,000) new text end
new text begin Petroleum Cleanup new text end	new text begin (25,000) new text end	new text begin (32,000) new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Financial Institutions new text end

new text begin 400,000 new text end

new text begin -0- new text end

new text begin This is a onetime appropriation for
implementation of the federal SAFE Act.
new text end

new text begin Subd. 3. new text end new text begin Petroleum Tank Release Cleanup Board new text end

new text begin (25,000) new text end

new text begin (32,000) new text end

new text begin Open appropriations established under
Minnesota Statutes, sections 16A.127,
115.10, 115C.09, and 115C.094, from
the petroleum tank fund are reduced by
$544,000. Prior to June 30, 2010, the
commissioner of commerce shall transfer
$569,000 from the unexpended balance
of the petroleum tank fund established in
Minnesota Statutes, section 115C.08, to the
general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $32,000 from
the unexpended balance of the petroleum
tank fund established in Minnesota Statutes,
section 115C.08, to the general fund.
new text end

new text begin Subd. 4. new text end new text begin Administrative Services new text end

new text begin (66,000) new text end

new text begin (126,000) new text end

new text begin Subd. 5. new text end new text begin Market Assurance new text end

new text begin (124,000) new text end

new text begin (196,000) new text end

new text begin Subd. 6. new text end new text begin Telecommunications Access Minnesota new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $128,000
from the unexpended balance of the
telecommunications access Minnesota fund
established in Minnesota Statutes, section
237.52, to the general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $135,000
from the unexpended balance of the
telecommunications access Minnesota fund
established in Minnesota Statutes, section
237.52, to the general fund.
new text end

new text begin Subd. 7. new text end new text begin Transfers new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $34,000 from
the unexpended balance of the license
technology surcharge account established
in Minnesota Statutes, section 45.24, to the
general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $52,000 from
the unexpended balance of the license
technology surcharge account established
in Minnesota Statutes, section 45.24, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner of
commerce shall transfer $64,000 from the
unexpended balance of the insurance fraud
prevention account established in Minnesota
Statutes, section 45.0135, to the general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner of
commerce shall transfer $48,000 from the
unexpended balance of the insurance fraud
prevention account established in Minnesota
Statutes, section 45.0135, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner of
commerce shall transfer $133,000 from the
unexpended balance of the automobile theft
prevention account established in Minnesota
Statutes, section 168A.40, to the general
fund.
new text end

new text begin Prior to June 30, 2011, the commissioner of
commerce shall transfer $111,000 from the
unexpended balance of the automobile theft
prevention account established in Minnesota
Statutes, section 168A.40, to the general
fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $49,000 from
the unexpended balance of the real estate
education, research and recovery fund
established in Minnesota Statutes, section
82.43, to the general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $5,000 from
the unexpended balance of the real estate
education, research and recovery fund
established in Minnesota Statutes, section
82.43, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $7,000 from
the unexpended balance of the consumer
education account established in Minnesota
Statutes, section 58.10, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $4,000 from the
unexpended balance of the HMO regulation
account established under Minnesota
Statutes, section 471.59, to the general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $9,000 from the
unexpended balance of the HMO regulation
account established under Minnesota
Statutes, section 471.59, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $4,000 from the
unexpended balance of the renewable energy
equipment grants account established under
Minnesota Statutes, section 239.101, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $15,000 from
the unexpended balance of the energy
planning and systems account established
in Minnesota Statutes, section 216C.052,
to the general fund. Funds transferred to
the general fund will be considered general
administrative costs of the administrator.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $43,000 from
the unexpended balance of the conservation
improvement technical assistance account
established in Minnesota Statutes, section
216B.241, subdivision 1d, to the general
fund.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $17,000 from
the unexpended balance of the conservation
improvement technical assistance account
established in Minnesota Statutes, section
216B.241, subdivision 1d, to the general
fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $316,000
from the unexpended balance of the
conservation improvement applied research
and development grants account established
in Minnesota Statutes, section 216B.241,
subdivision 1e, to the general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $213,000
from the unexpended balance of the
conservation improvement applied research
and development grants account established
in Minnesota Statutes, section 216B.241,
subdivision 1e, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $22,000 from
the unexpended balance of the residential
propane account established in Minnesota
Statutes, section 239.785, to the general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $18,000 from
the unexpended balance of the residential
propane account established in Minnesota
Statutes, section 239.785, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner of
commerce shall transfer $22,000 from the
unexpended balance of the facilities energy
efficiency account established in Minnesota
Statutes, section 216B.241, subdivision 1f, to
the general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner of
commerce shall transfer $30,000 from the
unexpended balance of the facilities energy
efficiency account established in Minnesota
Statutes, section 216B.241, subdivision 1f, to
the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $11,000 from
the unexpended balance of the power plant
assessment account established in Minnesota
Statutes, section 216E.18, subdivision 3, to
the general fund. Funds transferred to the
general fund will be considered expenditures
for assessment purposes.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $15,000 from
the unexpended balance of the power plant
assessment account established in Minnesota
Statutes, section 216E.18, subdivision 3, to
the general fund. Funds transferred to the
general fund will be considered expenditures
for assessment purposes.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer the remaining
balance of the pipeline account under
Minnesota Statutes, section 216G.02, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner of
commerce shall transfer $40,000 from the
unexpended balance of the biogas recovery
grants appropriation in Laws 2007, chapter
57, article 2, section 3, subdivision 6, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $4,000 from the
unexpended balance of the solar electricity
projects appropriation in Laws 2007, chapter
57, article 2, section 3, subdivision 6, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $6,000 from
the unexpended balance of the CERTS
continuation appropriation in Laws 2007,
chapter 57, article 2, section 3, subdivision
6, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $39,000 from
the unexpended balance of the automotive
projects appropriation in Laws 2007, chapter
57, article 2, section 3, subdivision 6, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner of
commerce shall transfer $19,000 from the
unexpended balance of the hydrogen road
map appropriation in Laws 2007, chapter
57, article 2, section 3, subdivision 6, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner of
commerce shall transfer $40,000 from the
unexpended balance of the renewable energy
grants appropriation in Laws 2007, chapter
57, article 2, section 3, subdivision 6, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $8,000 from the
unexpended balance of the green economy
and manufacturing appropriation in Laws
2008, chapter 363, article 6, section 3,
subdivision 4, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner of
commerce shall transfer $13,000 from the
unexpended balance of the greenhouse gas
advisory group appropriation in Laws 2008,
chapter 340, section 5, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $18,000 from
the unexpended balance of the heat flow
maps appropriation in Laws 2009, chapter
37, article 2, section 3, subdivision 7, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $31,000 from
the unexpended balance of the CERTS
appropriation in Laws 2009, chapter 37,
article 2, section 3, subdivision 7, to the
general fund.
new text end

new text begin Prior to June 30, 2011, the commissioner
of commerce shall transfer $38,000 from
the unexpended balance of the CERTS
appropriation in Laws 2009, chapter 37,
article 2, section 3, subdivision 7, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $24,000 from
the unexpended balance of the solar rebates
appropriation in Laws 2009, chapter 37,
article 2, section 3, subdivision 7, to the
general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner
of commerce shall transfer $90,000 from
the unexpended balance of the IRETI grant
appropriation in Laws 2009, chapter 37,
article 2, section 13, to the general fund.
new text end

new text begin Prior to June 30, 2010, the commissioner of
commerce shall transfer $36,000 from the
unexpended balance of the solar lab grant
appropriation in Laws 2009, chapter 37,
article 2, section 13, to the general fund.
new text end

Sec. 4.

Minnesota Statutes 2009 Supplement, section 45.30, subdivision 6, is amended
to read:

Subd. 6.

Course approval.

(a) Courses must be approved by the commissioner in
advance. A course that is required by federal criteria or a reciprocity agreement to receive
a substantive review will be approved or disapproved on the basis of its compliance with
the provisions of laws and rules relating to the appropriate industry. At the commissioner's
discretion, a course that is not required by federal criteria or a reciprocity agreement to
receive a substantive review may be approved based on a qualified provider's certification
on a form specified by the commissioner that the course complies with the provisions of
this chapter and the laws and rules relating to the appropriate industry. For the purposes
of this section, a "qualified provider" is one of the following: (1) a degree-granting
institution of higher learning located within this state; (2) a private school licensed by the
Minnesota Office of Higher Education; or (3) when conducting courses for its members, a
bona fide trade association that staffs and maintains in this state a physical location that
contains course and student records and that has done so for not less than three years.
The commissioner may review any approved course and may cancel its approval with
regard to all future offerings. The commissioner must make the final determination as to
accreditation and assignment of credit hours for courses. Courses must be at least one hour
in length, except courses for real estate appraisers must be at least two hours in length.

deleted text begin Individuals wishing to receive credit for continuing education courses that have not
been previously approved may submit the course information for approval. Courses
must be in compliance with the laws and rules governing the types of courses that will
and will not be approved.
deleted text end

Approval will not include time spent on meals or other unrelated activities.

(b) Courses must be submitted at least 30 days before the initial proposed course
offering.

(c) Approval must be granted for a subsequent offering of identical continuing
education courses without requiring a new application. The commissioner must deny
future offerings of courses if they are found not to be in compliance with the laws relating
to course approval.

(d) When either the content of an approved course or its method of instruction
changes, the course is no longer approved for license education credit. A new application
must be submitted for the changed course if the education provider intends to offer it for
license education credit.

Sec. 5.

Minnesota Statutes 2008, section 58.04, subdivision 1, is amended to read:

Subdivision 1.

Residential mortgage originator licensing requirements.

(a)
No person shall act as a residential mortgage originator, or make residential mortgage
loans without first obtaining a license from the commissioner according to the licensing
procedures provided in this chapter.

(b) A licensee must be either a partnership, limited liability partnership, association,
limited liability company, corporation, or other form of business organization, and must
have and maintain deleted text begin at all times one of the following: approval as a mortgagee by either the
federal Department of Housing and Urban Development or the Federal National Mortgage
Association; a minimum net worth, net of intangibles, of at least $250,000; or deleted text end a surety
bond deleted text begin or irrevocable letter of credit deleted text end in the deleted text begin amount of $50,000 deleted text end new text begin amounts prescribed under
section 58.08 new text end . deleted text begin Net worth, net of intangibles, must be calculated in accordance with
generally accepted accounting principles.
deleted text end

(c) The following persons are exempt from the residential mortgage originator
licensing requirements:

(1) a person who is not in the business of making residential mortgage loans and who
makes no more than three such loans, with its own funds, during any 12-month period;

(2) a financial institution as defined in section 58.02, subdivision 10;

(3) an agency of the federal government, or of a state or municipal government;

(4) an employee or employer pension plan making loans only to its participants;

(5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of
a specific order issued by a court of competent jurisdiction; or

(6) a person exempted by order of the commissioner.

Sec. 6.

Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2, is amended
to read:

Subd. 2.

Application contents.

(a) The application must contain the name and
complete business address or addresses of the license applicant. The license applicant
must be a partnership, limited liability partnership, association, limited liability company,
corporation, or other form of business organization, and the application must contain the
names and complete business addresses of each partner, member, director, and principal
officer. The application must also include a description of the activities of the license
applicant, in the detail and for the periods the commissioner may require.

(b) A residential mortgage originator applicant must submit deleted text begin one of the following:
deleted text end

deleted text begin (1) evidence which shows, to the commissioner's satisfaction, that either the federal
Department of Housing and Urban Development or the Federal National Mortgage
Association has approved the residential mortgage originator applicant as a mortgagee;
deleted text end

deleted text begin (2) a surety bond or irrevocable letter of credit in the amount of not less than
$50,000 in a form approved by the commissioner, issued by an insurance company or bank
authorized to do so in this state. The bond or irrevocable letter of credit must be available
for the recovery of expenses, fines, and fees levied by the commissioner under this chapter
and for losses incurred by borrowers. The bond or letter of credit must be submitted with
the license application, and evidence of continued coverage must be submitted with each
renewal. Any change in the bond or letter of credit must be submitted for approval by the
commissioner within ten days of its execution; or
deleted text end

deleted text begin (3) a copy of the residential mortgage originator applicant's most recent audited
financial statement, including balance sheet, statement of income or loss, statements of
changes in shareholder equity, and statement of changes in financial position. Financial
statements must be as of a date within 12 months of the date of application. deleted text end new text begin a surety bond
that meets the requirements of section 58.08, subdivision 1a.
new text end

(c) The application must also include all of the following:

(1) an affirmation under oath that the applicant:

(i) is in compliance with the requirements of section 58.125;

deleted text begin (ii) will maintain a perpetual roster of individuals employed as residential mortgage
originators, including employees and independent contractors, which includes the dates
that mandatory testing, initial education, and continuing education were completed. In
addition, the roster must be made available to the commissioner on demand, within three
business days of the commissioner's request;
deleted text end

deleted text begin (iii) deleted text end new text begin (ii) new text end will advise the commissioner of any material changes to the information
submitted in the most recent application within ten days of the change;

deleted text begin (iv) deleted text end new text begin (iii) new text end will advise the commissioner in writing immediately of any bankruptcy
petitions filed against or by the applicant or licensee;

deleted text begin (v) deleted text end new text begin (iv) new text end will maintain at all times deleted text begin either a net worth, net of intangibles, of at least
$250,000 or deleted text end a surety bond deleted text begin or irrevocable letter of credit deleted text end in the amount of at least deleted text begin $50,000 deleted text end new text begin
$100,000 new text end ;

deleted text begin (vi) deleted text end new text begin (v) new text end complies with federal and state tax laws; and

deleted text begin (vii) deleted text end new text begin (vi) new text end complies with sections 345.31 to 345.60, the Minnesota unclaimed
property law;

(2) information as to the mortgage lending, servicing, or brokering experience of the
applicant and persons in control of the applicant;

(3) information as to criminal convictions, excluding traffic violations, of persons in
control of the license applicant;

(4) whether a court of competent jurisdiction has found that the applicant or persons
in control of the applicant have engaged in conduct evidencing gross negligence, fraud,
misrepresentation, or deceit in performing an act for which a license is required under
this chapter;

(5) whether the applicant or persons in control of the applicant have been the subject
of: an order of suspension or revocation, cease and desist order, or injunctive order, or
order barring involvement in an industry or profession issued by this or another state or
federal regulatory agency or by the Secretary of Housing and Urban Development within
the ten-year period immediately preceding submission of the application; and

(6) other information required by the commissioner.

Sec. 7.

Minnesota Statutes 2008, section 58.08, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Residential mortgage originators. new text end

new text begin (a) An applicant for a residential
mortgage originator license must file with the department a surety bond in the amount of
$100,000, issued by an insurance company authorized to do so in this state. The bond
must cover all mortgage loan originators who are employees or independent agents of
the applicant. The bond must be available for the recovery of expenses, fines, and fees
levied by the commissioner under this chapter and for losses incurred by borrowers as
a result of a licensee's noncompliance with the requirements of this chapter, sections
325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to activities
regulated by this chapter.
new text end

new text begin (b) The bond must be submitted with the originator's license application and
evidence of continued coverage must be submitted with each renewal. Any change in the
bond must be submitted for approval by the commissioner, within ten days of its execution.
The bond or a substitute bond shall remain in effect during all periods of licensing.
new text end

new text begin (c) Upon filing of the mortgage call report as required by section 58A.17, a licensee
shall maintain or increase its surety bond to reflect the total dollar amount of the closed
residential mortgage loans originated in this state in the preceding year in accordance
with the table in this paragraph. A licensee may decrease its surety bond in accordance
with the table in this paragraph if the surety bond required is less than the amount of the
surety bond on file with the department.
new text end

new text begin Dollar Amount of Closed Residential Mortgage Loans new text end	new text begin Surety Bond Required new text end
new text begin $0 to $5,000,000 new text end	new text begin $100,000 new text end
new text begin $5,000,000.01 to $10,000,000 new text end	new text begin $125,000 new text end
new text begin $10,000,000.01 to $25,000,000 new text end	new text begin $150,000 new text end
new text begin Over $25,000,000 new text end	new text begin $200,000 new text end

new text begin For purposes of this subdivision, "mortgage loan originator" has the meaning given
the term in section 58A.02, subdivision 8.
new text end

Sec. 8.

Minnesota Statutes 2008, section 58.09, is amended to read:

58.09 TERM OF LICENSE.

deleted text begin Initial deleted text end Licenses for residential mortgage originators and residential mortgage
servicers issued under this chapter expire on deleted text begin July 31, 2001, deleted text end new text begin December 31 new text end and are
renewable on deleted text begin August 1, 2001, and on August 1 deleted text end new text begin January 1 new text end of each deleted text begin odd-numbered deleted text end year
after that date. deleted text begin A new licensee whose license expires less than 12 months from the date
of issuance shall pay a fee equal to one-half the applicable initial license fee set forth in
section 58.10, subdivision 1, clause (1) or (3).
deleted text end

Sec. 9.

Minnesota Statutes 2008, section 58.10, subdivision 1, is amended to read:

Subdivision 1.

Amounts.

The following fees must be paid to the commissioner:

(1) for deleted text begin an initial deleted text end new text begin a new text end residential mortgage originator license, deleted text begin $2,125 deleted text end new text begin $1,000 new text end , $50 of
which is credited to the consumer education account in the special revenue fund;

(2) for a renewal license, deleted text begin $1,125 deleted text end new text begin $500 new text end , $50 of which is credited to the consumer
education account in the special revenue fund;

(3) for deleted text begin an initial deleted text end new text begin a new text end residential mortgage servicer's license, deleted text begin $1,000 deleted text end new text begin $500 new text end ;

(4) for a renewal license, deleted text begin $500 deleted text end new text begin $250 new text end ; and

(5) for a certificate of exemption, $100.

Sec. 10.

Minnesota Statutes 2008, section 58.11, is amended to read:

58.11 LICENSE RENEWAL.

Subdivision 1.

Term.

Licenses are renewable on deleted text begin August 1, 2001, and on August 1 deleted text end new text begin
January 1 new text end of each deleted text begin odd-numbered deleted text end year deleted text begin after that date deleted text end .

Subd. 2.

Timely renewal.

(a) A person whose application is properly and timely
filed who has not received notice of denial of renewal is considered approved for renewal
and the person may continue to transact business as a residential mortgage originator or
servicer whether or not the renewed license has been received on or before deleted text begin August deleted text end new text begin January
new text end 1 of the renewal year. Application for renewal of a license is considered timely filed if
received by the commissioner by, or mailed with proper postage and postmarked by, deleted text begin July deleted text end new text begin
December new text end 15 of the renewal year. An application for renewal is considered properly filed
if made upon forms duly executed and sworn to, accompanied by fees prescribed by this
chapter, and containing any information that the commissioner requires.

(b) A person who fails to make a timely application for renewal of a license and
who has not received the renewal license as of deleted text begin August deleted text end new text begin January new text end 1 of the renewal year is
unlicensed until the renewal license has been issued by the commissioner and is received
by the person.

Subd. 3.

Contents of renewal application.

Application for the renewal of an
existing license must contain the information specified in section 58.06, subdivision 2;
however, only the requested information having changed from the most recent prior
application need be submitted.

Subd. 4.

Cancellation.

A licensee ceasing an activity or activities regulated by this
chapter and desiring to no longer be licensed shall so inform the commissioner in writing
and, at the same time, surrender the license and all other symbols or indicia of licensure.
The licensee shall include a plan for the withdrawal from regulated business, including a
timetable for the disposition of the business.

Sec. 11.

new text begin [58A.01] TITLE.
new text end

new text begin This chapter may be cited as the "Minnesota Secure and Fair Enforcement for
Mortgage Licensing Act of 2009" or "Minnesota S.A.F.E. Mortgage Licensing Act of
2009."
new text end

Sec. 12.

new text begin [58A.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For purposes of this chapter, the definitions in
subdivisions 2 to 16 have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of commerce.
new text end

new text begin Subd. 3. new text end

new text begin Depository institution. new text end

new text begin "Depository institution" has the meaning given in
United States Code, title 12, section 1813, and includes a credit union.
new text end

new text begin Subd. 4. new text end

new text begin Federal banking agencies. new text end

new text begin "Federal banking agencies" means the Board
of Governors of the Federal Reserve System, the comptroller of the currency, the director
of the Office of Thrift Supervision, the National Credit Union Administration, and the
Federal Deposit Insurance Corporation.
new text end

new text begin Subd. 5. new text end

new text begin Immediate family member. new text end

new text begin "Immediate family member" means a spouse,
child, sibling, a parent, grandparent, or grandchild. This includes stepparents, stepchildren,
stepsiblings, and adoptive relationships.
new text end

new text begin Subd. 6. new text end

new text begin Individual. new text end

new text begin "Individual" means a natural person.
new text end

new text begin Subd. 7. new text end

new text begin Loan processor or underwriter. new text end

new text begin "Loan processor or underwriter" means
an individual who performs clerical or support duties as an employee at the direction
of and subject to the supervision and instruction of a person licensed or exempt from
licensing under chapter 58. For purposes of this subdivision, the term "clerical or support
duties" may include after the receipt of an application:
new text end

new text begin (1) the receipt, collection, distribution, and analysis of information common for the
processing or underwriting of a residential mortgage loan; and
new text end

new text begin (2) communicating with a consumer to obtain the information necessary for the
processing or underwriting of a loan, to the extent that the communication does not include
offering or negotiating loan rates or terms, or counseling consumers about residential
mortgage loan rates or terms.
new text end

new text begin Subd. 8. new text end

new text begin Mortgage loan originator. new text end

new text begin "Mortgage loan originator":
new text end

new text begin (1) means an individual who for compensation or gain or in the expectation of
compensation or gain:
new text end

new text begin (i) takes a residential mortgage loan application; or
new text end

new text begin (ii) offers or negotiates terms of a residential mortgage loan;
new text end

new text begin (2) does not include an individual engaged solely as a loan processor or underwriter
except as otherwise provided in section 58A.03, subdivision 3;
new text end

new text begin (3) does not include a person or entity that only performs real estate brokerage
activities and is licensed or registered according to Minnesota law, unless the person or
entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or
by an agent of the lender, mortgage broker, or other mortgage loan originator; and
new text end

new text begin (4) does not include a person or entity solely involved in extensions of credit relating
to timeshare plans, as that term is defined in United States Code, title 11, section 101(53D).
new text end

new text begin Subd. 9. new text end

new text begin Nationwide Mortgage Licensing System and Registry. new text end

new text begin "Nationwide
Mortgage Licensing System and Registry" means a mortgage licensing system developed
and maintained by the Conference of State Bank Supervisors and the American
Association of Residential Mortgage Regulators for the licensing and registration of
licensed mortgage loan originators.
new text end

new text begin Subd. 10. new text end

new text begin Nontraditional mortgage product. new text end

new text begin "Nontraditional mortgage product"
means a mortgage product other than a 30-year fixed rate mortgage loan.
new text end

new text begin Subd. 11. new text end

new text begin Person. new text end

new text begin "Person" means a natural person, corporation, company, limited
liability company, partnership, or association.
new text end

new text begin Subd. 12. new text end

new text begin Real estate brokerage activity. new text end

new text begin "Real estate brokerage activity" means
an activity that involves offering or providing real estate brokerage services to the public,
including:
new text end

new text begin (1) acting as a real estate agent or real estate broker for a buyer, seller, lessor,
or lessee of real property;
new text end

new text begin (2) bringing together parties interested in the sale, purchase, lease, rental, or
exchange of real property;
new text end

new text begin (3) negotiating, on behalf of a party, a portion of a contract relating to the sale,
purchase, lease, rental, or exchange of real property other than in connection with
providing financing with respect to the transaction;
new text end

new text begin (4) engaging in an activity for which a person engaged in the activity is required to
be registered or licensed as a real estate agent or real estate broker under any applicable
law; and
new text end

new text begin (5) offering to engage in any activity, or act in any capacity, described in clause
(1), (2), (3), or (4).
new text end

new text begin Subd. 13. new text end

new text begin Registered mortgage loan originator. new text end

new text begin "Registered mortgage loan
originator" means an individual who:
new text end

new text begin (1) meets the definition of mortgage loan originator and is an employee of:
new text end

new text begin (i) a depository institution;
new text end

new text begin (ii) a subsidiary that is owned and controlled by a depository institution and
regulated by a federal banking agency; or
new text end

new text begin (iii) an institution regulated by the Farm Credit Administration; and
new text end

new text begin (2) is registered with, and maintains a unique identifier through, the Nationwide
Mortgage Licensing System and Registry.
new text end

new text begin Subd. 14. new text end

new text begin Residential mortgage loan. new text end

new text begin "Residential mortgage loan" means a loan
primarily for personal, family, or household use that is secured by a mortgage, deed of
trust, or other equivalent consensual security interest on a dwelling, as defined in United
States Code, title 15, section 1602(v), or residential real estate upon which a dwelling is
constructed or intended to be constructed.
new text end

new text begin Subd. 15. new text end

new text begin Residential real estate. new text end

new text begin "Residential real estate" means real property
located in Minnesota, upon which a dwelling is constructed or is intended to be
constructed.
new text end

new text begin Subd. 16. new text end

new text begin Unique identifier. new text end

new text begin "Unique identifier" means a number or other identifier
assigned by protocols established by the Nationwide Mortgage Licensing System and
Registry.
new text end

Sec. 13.

new text begin [58A.03] LICENSE AND REGISTRATION REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin An individual, unless specifically exempted from this
chapter under subdivision 2, shall not engage in the business of a mortgage loan originator
with respect to a dwelling located in this state without first obtaining and maintaining a
license under this chapter. An individual may not engage in the mortgage loan business
unless the individual is employed and supervised by an entity which is either licensed
or exempt from licensing under chapter 58. A licensed mortgage loan originator must
register with and maintain a valid unique identifier issued by the Nationwide Mortgage
Licensing System and Registry.
new text end

new text begin Subd. 2. new text end

new text begin Exemptions. new text end

new text begin The following are exempt from this chapter:
new text end

new text begin (1) a registered mortgage loan originator, when acting for an entity described in
section 58A.02, subdivision 13, clause (1);
new text end

new text begin (2) an individual who offers or negotiates terms of a residential mortgage loan with
or on behalf of an immediate family member of the individual;
new text end

new text begin (3) an individual who offers or negotiates terms of a residential mortgage loan
secured by a dwelling that served as the individual's residence; and
new text end

new text begin (4) a licensed attorney who negotiates the terms of a residential mortgage loan
on behalf of a client as an ancillary matter to the attorney's representation of the client,
unless the attorney is compensated by a lender, a mortgage broker, or other mortgage
loan originator or by any agent of the lender, mortgage broker, or other mortgage loan
originator.
new text end

new text begin Subd. 3. new text end

new text begin Independent contractor loan processors or underwriters. new text end

new text begin A loan
processor or underwriter who is an independent contractor may not engage in the activities
of a loan processor or underwriter unless the independent contractor loan processor
or underwriter obtains and maintains a license under subdivision 1. An independent
contractor loan processor or underwriter licensed as a mortgage loan originator must have
and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing
System and Registry.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin In order to facilitate an orderly transition to licensing and
minimize disruption in the mortgage marketplace, the effective date for subdivision 1
is July 31, 2010, or a later date approved by the Secretary of the U.S. Department of
Housing and Urban Development, under the authority granted in Public Law 110-289,
section 1508(a).
new text end

Sec. 14.

new text begin [58A.04] STATE LICENSE AND REGISTRATION APPLICATION
AND ISSUANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Application form. new text end

new text begin An applicant for a license shall apply in a form
as prescribed by the commissioner. The form must contain content as set forth by rule,
instruction, or procedure of the commissioner and may be changed or updated as necessary
by the commissioner in order to carry out the purposes of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner may establish relationships or contracts. new text end

new text begin In order
to fulfill the purposes of this chapter, the commissioner is authorized to establish
relationships or contracts with the Nationwide Mortgage Licensing System and Registry
or other entities designated by the Nationwide Mortgage Licensing System and Registry to
collect and maintain records and process transaction fees or other fees related to licensees
or other persons subject to this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Waive or modify requirements. new text end

new text begin For the purpose of participating in the
Nationwide Mortgage Licensing System and Registry, the commissioner is authorized to
waive or modify, in whole or in part, by rule or order, any or all of the requirements of
this chapter and to establish new requirements as reasonably necessary to participate in
the Nationwide Mortgage Licensing System and Registry.
new text end

new text begin Subd. 4. new text end

new text begin Background checks. new text end

new text begin In connection with an application for licensing as a
mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide
Mortgage Licensing System and Registry information concerning the applicant's identity,
including:
new text end

new text begin (1) fingerprints for submission to the Federal Bureau of Investigation, and a
governmental agency or entity authorized to receive the information for a state, national,
and international criminal history background check; and
new text end

new text begin (2) personal history and experience in a form prescribed by the Nationwide
Mortgage Licensing System and Registry, including the submission of authorization for
the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:
new text end

new text begin (i) an independent credit report obtained from a consumer reporting agency
described in United States Code, title 15, section 1681a(p); and
new text end

new text begin (ii) information related to administrative, civil, or criminal findings by a
governmental jurisdiction.
new text end

new text begin Subd. 5. new text end

new text begin Agent for purposes of requesting and distributing criminal
information. new text end

new text begin For the purposes of this section and in order to reduce the points of
contact which the Federal Bureau of Investigation may have to maintain for purposes of
subdivision 4, clauses (1) and (2), the commissioner may use the Nationwide Mortgage
Licensing System and Registry as a channeling agent for requesting information from and
distributing information to the Department of Justice or any governmental agency.
new text end

new text begin Subd. 6. new text end

new text begin Agent for purposes of requesting and distributing noncriminal
information. new text end

new text begin For the purposes of this section and in order to reduce the points of contact
which the commissioner may have to maintain for purposes of subdivision 4, clause (2)(i)
and (ii), the commissioner may use the Nationwide Mortgage Licensing System and
Registry as a channeling agent for requesting and distributing information to and from any
source so directed by the commissioner.
new text end

Sec. 15.

new text begin [58A.05] ISSUANCE OF LICENSE.
new text end

new text begin The commissioner shall not issue a mortgage loan originator license unless the
commissioner finds at a minimum, that:
new text end

new text begin (1) the applicant has never had a mortgage loan originator license revoked in a
governmental jurisdiction, except that a subsequent formal vacation of a revocation shall
not be deemed a revocation;
new text end

new text begin (2) the applicant has not been convicted of, or pled guilty or nolo contendere to, a
felony in a domestic, foreign, or military court:
new text end

new text begin (i) during the seven-year period preceding the date of the application for licensing
and registration;
new text end

new text begin (ii) at any time preceding the date of application, if the felony involved an act of
fraud, dishonesty, or a breach of trust, or money laundering; or
new text end

new text begin (iii) provided that a pardon of a conviction is not a conviction for purposes of this
clause;
new text end

new text begin (3) the applicant has demonstrated financial responsibility, character, and general
fitness such as to command the confidence of the community and to warrant a
determination that the mortgage loan originator will operate honestly, fairly, and efficiently
within the purposes of this chapter. For purposes of this chapter, a person has shown that
the person is not financially responsible when the person has shown a disregard in the
management of the person's own financial condition. A determination that an individual
has not shown financial responsibility may include, but is not limited to:
new text end

new text begin (i) current outstanding judgments, except judgments solely as a result of medical
expenses;
new text end

new text begin (ii) current outstanding tax liens or other government liens and filings;
new text end

new text begin (iii) foreclosures within the past three years; and
new text end

new text begin (iv) a pattern of seriously delinquent accounts within the past three years;
new text end

new text begin (4) the applicant has completed the prelicensing education requirement described
in section 58A.06;
new text end

new text begin (5) the applicant has passed a written test that meets the test requirement described
in section 58A.07; and
new text end

new text begin (6) the applicant has met the surety bond requirement as required under section
58A.13.
new text end

Sec. 16.

new text begin [58A.06] PRELICENSING AND RELICENSING EDUCATION OF
LOAN ORIGINATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Minimum educational requirements. new text end

new text begin In order to meet the
prelicensing education requirement referred to in section 58A.05, clause (4), a person
shall complete at least 20 hours of education approved according to subdivision 2, that
includes at least:
new text end

new text begin (1) three hours of federal law and regulations;
new text end

new text begin (2) three hours of ethics, which includes instruction on fraud, consumer protection,
and fair lending issues; and
new text end

new text begin (3) two hours of training related to lending standards for the nontraditional mortgage
product marketplace.
new text end

new text begin Subd. 2. new text end

new text begin Approved educational courses. new text end

new text begin For purposes of subdivision 1,
prelicensing education courses must be reviewed, and approved by the Nationwide
Mortgage Licensing System and Registry based upon reasonable standards. Review
and approval of a prelicensing education course must include review and approval of
the course provider.
new text end

new text begin Subd. 3. new text end

new text begin Approval of employer and affiliate educational courses. new text end

new text begin Nothing in
this section precludes a prelicensing education course, as approved by the Nationwide
Mortgage Licensing System and Registry, that is provided by the employer of the applicant
or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or
affiliate of the employer or entity.
new text end

new text begin Subd. 4. new text end

new text begin Venue of education. new text end

new text begin Prelicensing education may be offered in a classroom,
on line, or by any other means approved by the Nationwide Mortgage Licensing System
and Registry.
new text end

new text begin Subd. 5. new text end

new text begin Reciprocity of education. new text end

new text begin The prelicensing education requirements
approved by the Nationwide Mortgage Licensing System and Registry in subdivision
1 for a state must be accepted as credit toward completion of prelicensing education
requirements in Minnesota.
new text end

new text begin Subd. 6. new text end

new text begin Relicensing education requirements. new text end

new text begin A person previously licensed under
this chapter after the effective date of this chapter applying to be licensed again must
prove that the person has completed all of the continuing education requirements for
the year in which the license was last held.
new text end

Sec. 17.

new text begin [58A.07] TESTING OF LOAN ORIGINATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In order to meet the written test requirement referred to
in section 58A.05, clause (5), an individual shall pass, in accordance with the standards
established under this section, a qualified written test developed by the Nationwide
Mortgage Licensing System and Registry and administered by a test provider approved
by the Nationwide Mortgage Licensing System and Registry based upon reasonable
standards.
new text end

new text begin Subd. 2. new text end

new text begin Qualified test. new text end

new text begin A written test must not be treated as a qualified written
test for purposes of subdivision 1 unless the test adequately measures the applicant's
knowledge and comprehension in appropriate subject areas, including:
new text end

new text begin (1) ethics;
new text end

new text begin (2) federal law and regulation pertaining to mortgage origination;
new text end

new text begin (3) state law and rule pertaining to mortgage origination; and
new text end

new text begin (4) federal and state law and rule, including instruction on fraud, consumer
protection, the nontraditional mortgage marketplace, and fair lending issues.
new text end

new text begin Subd. 3. new text end

new text begin Testing location. new text end

new text begin Northing in this section prohibits a test provider approved
by the Nationwide Mortgage Licensing System and Registry from providing a test at the
location of the employer of the applicant or the location of a subsidiary or affiliate of the
employer of the applicant, or the location of an entity with which the applicant holds an
exclusive arrangement to conduct the business of a mortgage loan originator.
new text end

new text begin Subd. 4. new text end

new text begin Minimum competence. new text end

new text begin (a) An individual is not considered to have
passed a qualified written test unless the individual achieves a test score of not less than
75 percent correct answers to questions.
new text end

new text begin (b) An individual may retake a test three consecutive times with each consecutive
taking occurring at least 30 days after the preceding test.
new text end

new text begin (c) After failing three consecutive tests, an individual shall wait at least six months
before taking the test again.
new text end

new text begin (d) A licensed mortgage loan originator who fails to maintain a valid license for a
period of five years or longer shall retake the test, not taking into account any time during
which the individual is a registered mortgage loan originator.
new text end

Sec. 18.

new text begin [58A.08] STANDARDS FOR LICENSE RENEWAL.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin The minimum standards for license renewal for a
mortgage loan originator include that the mortgage loan originator:
new text end

new text begin (1) continues to meet the minimum standards for license issuance under section
58A.05;
new text end

new text begin (2) has satisfied the annual continuing education requirements described in section
58A.09; and
new text end

new text begin (3) has paid all required fees for renewal of the license.
new text end

new text begin Subd. 2. new text end

new text begin Failure to satisfy minimum standards of license renewal. new text end

new text begin The license of
a mortgage loan originator failing to satisfy the minimum standards for license renewal
expires. The commissioner may adopt procedures for the reinstatement of expired licenses
consistent with the standards established by the Nationwide Mortgage Licensing System
and Registry.
new text end

Sec. 19.

new text begin [58A.09] CONTINUING EDUCATION FOR MORTGAGE LOAN
ORIGINATORS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In order to meet the annual continuing education
requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage
loan originator shall complete at least eight hours of education approved according to
subdivision 2 that includes at least:
new text end

new text begin (1) three hours of federal law and regulations;
new text end

new text begin (2) two hours of ethics, which includes instruction on fraud, consumer protection,
and fair lending issues; and
new text end

new text begin (3) two hours of training related to lending standards for the nontraditional mortgage
product marketplace.
new text end

new text begin Subd. 2. new text end

new text begin Approved educational courses. new text end

new text begin For purposes of subdivision 1, continuing
education courses must be reviewed and approved by the Nationwide Mortgage Licensing
System and Registry based upon reasonable standards. Review and approval of a
continuing education course must include review and approval of the course provider.
new text end

new text begin Subd. 3. new text end

new text begin Approval of employer and affiliate educational courses. new text end

new text begin Nothing in
this section precludes an education course, as approved by the Nationwide Mortgage
Licensing System and Registry, that is provided by the employer of the mortgage loan
originator or an entity that is affiliated with the mortgage loan originator by an agency
contract, or a subsidiary or affiliate of the employer or entity.
new text end

new text begin Subd. 4. new text end

new text begin Venue of education. new text end

new text begin Continuing education may be offered either in a
classroom, on line, or by other means approved by the Nationwide Mortgage Licensing
System and Registry.
new text end

new text begin Subd. 5. new text end

new text begin Calculation of continuing education credits. new text end

new text begin A licensed mortgage loan
originator:
new text end

new text begin (1) except for subdivision 9 and section 58A.08, subdivision 2, may only receive
credit for a continuing education course in the year in which the course is taken; and
new text end

new text begin (2) may not take the same approved course in the same or successive years to meet
the annual requirements for continuing education.
new text end

new text begin Subd. 6. new text end

new text begin Instructor credit. new text end

new text begin A licensed mortgage loan originator who is an approved
instructor of an approved continuing education course may receive credit for the licensed
mortgage loan originator's own annual continuing education requirement at the rate of
two hours credit for every one hour taught.
new text end

new text begin Subd. 7. new text end

new text begin Reciprocity of education. new text end

new text begin A person having successfully completed the
education requirements approved by the Nationwide Mortgage Licensing System and
Registry in subdivision 1 for a state must be accepted as credit toward completion of
continuing education requirements in Minnesota.
new text end

new text begin Subd. 8. new text end

new text begin Lapse in license. new text end

new text begin A licensed mortgage loan originator who subsequently
becomes unlicensed must complete the continuing education requirements for the last year
in which the license was held before a new or renewed license is issued.
new text end

new text begin Subd. 9. new text end

new text begin Deficiency. new text end

new text begin A person meeting the requirements of section 58A.08,
subdivision 1, clauses (1) and (3), may make up a deficiency in continuing education as
established by rule of the commissioner.
new text end

Sec. 20.

new text begin [58A.10] AUTHORITY TO REQUIRE LICENSE.
new text end

new text begin In addition to any other duties imposed upon the commissioner by law, the
commissioner shall require mortgage loan originators to be licensed and registered
through the Nationwide Mortgage Licensing System and Registry. In order to carry out
this requirement, the commissioner may participate in the Nationwide Mortgage Licensing
System and Registry. For this purpose, the commissioner may establish by rule or order
requirements as necessary, including but not limited to:
new text end

new text begin (1) background checks for:
new text end

new text begin (i) criminal history through fingerprint or other databases;
new text end

new text begin (ii) civil or administrative records;
new text end

new text begin (iii) credit history; or
new text end

new text begin (iv) other information as determined necessary by the Nationwide Mortgage
Licensing System and Registry;
new text end

new text begin (2) the payment of fees to apply for or renew licenses through the Nationwide
Mortgage Licensing System and Registry;
new text end

new text begin (3) the setting or resetting as necessary of renewal or reporting dates; and
new text end

new text begin (4) requirements for amending or surrendering a license or other activities the
commissioner considers necessary for participation in the Nationwide Mortgage Licensing
System and Registry.
new text end

Sec. 21.

new text begin [58A.11] NATIONWIDE MORTGAGE LICENSING SYSTEM AND
REGISTRY INFORMATION CHALLENGE PROCESS.
new text end

new text begin The commissioner shall establish a process that allows mortgage loan originators
to challenge information entered into the Nationwide Mortgage Licensing System and
Registry by the commissioner.
new text end

Sec. 22.

new text begin [58A.12] ENFORCEMENT AUTHORITIES, VIOLATIONS, AND
PENALTIES.
new text end

new text begin (a) In order to ensure the effective supervision and enforcement of this chapter, the
commissioner may, pursuant to chapter 14:
new text end

new text begin (1) deny, suspend, revoke, condition, or decline to renew a license for a violation of
this chapter, rules issued under this chapter, or order or directive entered under this chapter;
new text end

new text begin (2) deny, suspend, revoke, condition, or decline to renew a license if an applicant
or licensee fails at anytime to meet the requirements of section 58A.05 or 58A.08, or
withholds information or makes a material misstatement in an application for a license
or renewal of a license;
new text end

new text begin (3) order restitution against persons subject to this chapter for violations of this
chapter;
new text end

new text begin (4) impose fines on persons subject to this chapter pursuant to paragraphs (b)
to (d); and
new text end

new text begin (5) issue orders or directives under this chapter as follows:
new text end

new text begin (i) order or direct persons subject to this chapter to cease and desist from conducting
business, including immediate temporary orders to cease and desist;
new text end

new text begin (ii) order or direct persons subject to this chapter to cease any harmful activities or
violations of this chapter, including immediate temporary orders to cease and desist;
new text end

new text begin (iii) enter immediate temporary orders to cease business under a license or interim
license issued pursuant to the authority granted under section 58A.03, subdivision 4, if
the commissioner determines that the license was erroneously granted or the licensee is
currently in violation of this chapter; and
new text end

new text begin (iv) order or direct other affirmative action the commissioner considers necessary.
new text end

new text begin (b) The commissioner may impose a civil penalty on a mortgage loan originator or
person subject to this chapter, if the commissioner finds, on the record after notice and
opportunity for hearing, that the mortgage loan originator or person subject to this chapter
has violated or failed to comply with any requirement of this chapter or any rule prescribed
by the commissioner under this chapter or order issued under authority of this chapter.
new text end

new text begin (c) The maximum amount of penalty for each act or omission described in paragraph
(b) is $25,000.
new text end

new text begin (d) Each violation or failure to comply with any directive or order of the
commissioner is a separate and distinct violation or failure.
new text end

Sec. 23.

new text begin [58A.13] SURETY BOND REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Coverage, form, and rules. new text end

new text begin (a) Each mortgage loan originator must
be covered by a surety bond meeting the requirements of this section. In the event that
the mortgage loan originator is an employee or exclusive agent of a person subject to this
chapter, the surety bond of the person subject to this chapter can be used in lieu of the
mortgage loan originator's surety bond requirement.
new text end

new text begin (b) The surety bond shall provide coverage for each mortgage loan originator in
an amount as prescribed in subdivision 2.
new text end

new text begin (c) The surety bond must be in a form as prescribed by the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Penal sum of surety bond. new text end

new text begin The penal sum of the surety bond must be
maintained in an amount that reflects the dollar amount of loans originated as determined
by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Action on bond. new text end

new text begin When an action is commenced on a licensee's bond the
commissioner may require the filing of a new bond.
new text end

new text begin Subd. 4. new text end

new text begin New bond. new text end

new text begin Immediately upon recovery upon any action on the bond
the licensee shall file a new bond.
new text end

Sec. 24.

new text begin [58A.14] CONFIDENTIALITY.
new text end

new text begin Subdivision 1. new text end

new text begin Protections. new text end

new text begin Except as otherwise provided in Public Law 110-289,
section 1512, the requirements under chapter 13 or any federal law regarding the privacy
or confidentiality of any information or material provided to the Nationwide Mortgage
Licensing System and Registry, and any privilege arising under federal or state law,
including the rules of any federal or state court, with respect to the information or material,
continue to apply to the information or material after the information or material has been
disclosed to the Nationwide Mortgage Licensing System and Registry. The information
and material may be shared with all state and federal regulatory officials with mortgage
industry oversight authority without the loss of privilege or the loss of confidentiality
protections provided by chapter 13 or federal law.
new text end

new text begin Subd. 2. new text end

new text begin Agreements and sharing arrangements. new text end

new text begin For purposes of this section,
the commissioner is authorized to enter agreements or sharing arrangements with
other governmental agencies, the Conference of State Bank Supervisors, the American
Association of Residential Mortgage Regulators, or other associations representing
governmental agencies as established by rule or order of the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Nonapplicability of certain requirements. new text end

new text begin Information or material that is
subject to a privilege or confidentiality under subdivision 1 is not subject to:
new text end

new text begin (1) disclosure under any federal or state law governing the disclosure to the public of
information held by an officer or an agency of the federal government or the respective
state; or
new text end

new text begin (2) subpoena or discovery, or admission into evidence, in any private civil action
or administrative process, unless with respect to any privilege held by the Nationwide
Mortgage Licensing System and Registry with respect to the information or material,
the person to whom the information or material pertains waives, in whole or in part, in
the discretion of the person, that privilege.
new text end

new text begin Subd. 4. new text end

new text begin Coordination with Minnesota Government Data Practices Act. new text end

new text begin Chapter
13 relating to the disclosure of confidential supervisory information or any information or
material described in subdivision 1 that is inconsistent with subdivision 1 is superseded by
the requirements of this section.
new text end

new text begin Subd. 5. new text end

new text begin Public access to information. new text end

new text begin This section does not apply with respect to
the information or material relating to the employment history of, and publicly adjudicated
disciplinary and enforcement actions against, mortgage loan originators that are included
in the Nationwide Mortgage Licensing System and Registry for access by the public.
new text end

Sec. 25.

new text begin [58A.15] INVESTIGATION AND EXAMINATION AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin In addition to any authority allowed under this chapter,
the commissioner may conduct investigations and examinations according to subdivisions
2 to 9.
new text end

new text begin Subd. 2. new text end

new text begin Authority to access information. new text end

new text begin For purposes of initial licensing, license
renewal, license suspension, license conditioning, license revocation or termination, or
general or specific inquiry or investigation to determine compliance with this chapter, the
commissioner may access, receive and use any books, accounts, records, files, documents,
information or evidence including but not limited to:
new text end

new text begin (1) criminal, civil, and administrative history information, including nonconviction
data;
new text end

new text begin (2) personal history and experience information including independent credit reports
obtained from a consumer reporting agency described in United States Code, title 15,
section 1681a(p); and
new text end

new text begin (3) any other documents, information, or evidence the commissioner considers
relevant to the inquiry or investigation regardless of the location, possession, control, or
custody of the documents, information, or evidence.
new text end

new text begin Subd. 3. new text end

new text begin Investigation, examination, and subpoena authority. new text end

new text begin For the purposes
of investigating violations or complaints arising under this chapter, or for the purposes of
examination, the commissioner may review, investigate, or examine a licensee, individual,
or person subject to this chapter, as often as necessary in order to carry out the purposes
of this chapter. The commissioner may direct, subpoena, or order the attendance of and
examine under oath all persons whose testimony may be required about the loans or the
business or subject matter of any such examination or investigation, and may direct,
subpoena, or order such person to produce books, accounts, records, files, and any other
documents the commissioner considers relevant to the inquiry.
new text end

new text begin Subd. 4. new text end

new text begin Availability of books and records. new text end

new text begin A licensee, individual, or person
subject to this chapter shall make available to the commissioner upon request the books
and records relating to the operations of the licensee, individual, or person subject to this
chapter. The commissioner shall have access to the books and records and interview
the officers, principals, mortgage loan originators, employees, independent contractors,
agents, and customers of the licensee, individual, or person subject to this chapter
concerning the licensee's, individual's, or person's business.
new text end

new text begin Subd. 5. new text end

new text begin Reports and other information as directed. new text end

new text begin A licensee, individual, or
person subject to this chapter shall make or compile reports or prepare other information
as directed by the commissioner in order to carry out the purposes of this section including
but not limited to:
new text end

new text begin (1) accounting compilations;
new text end

new text begin (2) information lists and data concerning loan transactions in a format prescribed
by the commissioner; or
new text end

new text begin (3) other information the commissioner considers necessary to carry out the
purposes of this section.
new text end

new text begin Subd. 6. new text end

new text begin Control access to records. new text end

new text begin In making an examination or investigation
authorized by this chapter, the commissioner may control access to documents and records
of the licensee or person under examination or investigation. The commissioner may
take possession of the documents and records or place a person in exclusive charge of
the documents and records in the place where they are usually kept. During the period of
control, no individual or person shall remove or attempt to remove any of the documents
and records except pursuant to a court order or with the consent of the commissioner.
Unless the commissioner has reasonable grounds to believe the documents or records
of the licensee have been, or are at risk of being, altered or destroyed for purposes of
concealing a violation of this chapter, the licensee or owner of the documents and records
has access to the documents or records as necessary to conduct its ordinary business affairs.
new text end

new text begin Subd. 7. new text end

new text begin Additional authority. new text end

new text begin In order to carry out the purposes of this section,
the commissioner may:
new text end

new text begin (1) retain attorneys, accountants, or other professionals and specialists as examiners,
auditors, or investigators to conduct or assist in the conduct of examinations or
investigations;
new text end

new text begin (2) enter into agreements or relationships with other government officials or
regulatory associations in order to improve efficiencies and reduce regulatory burden
by sharing resources, standardized or uniform methods or procedures, and documents,
records, information, or evidence obtained under this section;
new text end

new text begin (3) use, hire, contract, or employ public or privately available analytical systems,
methods, or software to examine or investigate the licensee, individual, or person subject
to this chapter;
new text end

new text begin (4) accept and rely on examination or investigation reports made by other
government officials, within or without this state; or
new text end

new text begin (5) accept audit reports made by an independent certified public accountant for the
licensee, individual, or person subject to this chapter in the course of that part of the
examination covering the same general subject matter as the audit and incorporate the
audit report in the report of the examination, report of investigation or other writing of
the commissioner.
new text end

new text begin Subd. 8. new text end

new text begin Effect of authority. new text end

new text begin The authority of this section remains in effect,
whether a licensee, individual, or person subject to this chapter acts or claims to act under
any licensing or registration law of this state, or claims to act without such authority.
new text end

new text begin Subd. 9. new text end

new text begin Withhold records. new text end

new text begin A licensee, individual, or person subject to
investigation or examination under this section shall not knowingly withhold, abstract,
remove, mutilate, destroy, or secrete any books, records, computer records, or other
information.
new text end

Sec. 26.

new text begin [58A.16] PROHIBITED ACTS AND PRACTICES.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin It is a violation of this chapter for a person or individual
subject to this chapter to:
new text end

new text begin (1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead
borrowers or lenders or to defraud any person;
new text end

new text begin (2) engage in any unfair or deceptive practice toward any person;
new text end

new text begin (3) obtain property by fraud or misrepresentation;
new text end

new text begin (4) solicit or enter into a contract with a borrower that provides in substance that the
person or individual subject to this chapter may earn a fee or commission through "best
efforts" to obtain a loan even though no loan is actually obtained for the borrower;
new text end

new text begin (5) solicit, advertise, or enter into a contract for specific interest rates, points, or
other financing terms unless the terms are actually available at the time of soliciting,
advertising, or contracting;
new text end

new text begin (6) conduct any business covered by this chapter without holding a valid license as
required under this chapter, or assist or aide and abet any person in the conduct of business
under this chapter without a valid license as required under this chapter;
new text end

new text begin (7) fail to make disclosures as required by this chapter and any other applicable
state or federal law or regulations;
new text end

new text begin (8) fail to comply with this chapter or rules adopted under this chapter or fail
to comply with any other state or federal law or regulations applicable to any business
authorized or conducted under this chapter;
new text end

new text begin (9) make, in any manner, any false or deceptive statement or representation
including, with regard to the rates, points, or other financing terms or conditions for a
residential mortgage loan; or engage in bait-and-switch advertising;
new text end

new text begin (10) negligently make a false statement or knowingly and willfully make an omission
of material fact in connection with any information or reports filed with a governmental
agency or the Nationwide Mortgage Licensing System and Registry or in connection with
an investigation conducted by the commissioner or another governmental agency;
new text end

new text begin (11) make a payment, threat, or promise, directly or indirectly, to a person for the
purposes of influencing the independent judgment of the person in connection with a
residential mortgage loan, or make a payment threat or promise, directly or indirectly, to
an appraiser of a property, for the purposes of influencing the independent judgment of the
appraiser with respect to the value of the property;
new text end

new text begin (12) collect, charge, attempt to collect or charge, or use or propose an agreement
purporting to collect or charge a fee prohibited by this chapter;
new text end

new text begin (13) cause or require a borrower to obtain property insurance coverage in an amount
that exceeds the replacement cost of the improvements as established by the property
insurer; or
new text end

new text begin (14) fail to truthfully account for money belonging to a party to a residential
mortgage loan transaction.
new text end

new text begin Subd. 2. new text end

new text begin Loan processor or underwriter activities. new text end

new text begin An individual engaging solely
in loan processor or underwriter activities shall not represent to the public, through
advertising or other means of communicating or providing information, including the use
of business cards, stationery, brochures, signs, rate lists, or other promotional items, that
the individual can or will perform any of the activities of a mortgage loan originator.
new text end

Sec. 27.

new text begin [58A.17] MORTGAGE CALL REPORTS.
new text end

new text begin A mortgage licensee shall submit to the Nationwide Mortgage Licensing System and
Registry reports of condition, which must be in the form and contain the information the
Nationwide Mortgage Licensing System and Registry requires.
new text end

Sec. 28.

new text begin [58A.18] REPORT TO NATIONWIDE MORTGAGE LICENSING
SYSTEM AND REGISTRY.
new text end

new text begin The commissioner shall regularly report violations of this chapter, as well as
enforcement actions and other relevant information, to the Nationwide Mortgage
Licensing System and Registry subject to the provisions contained in section 58A.14.
new text end

Sec. 29.

new text begin [58A.20] UNIQUE IDENTIFIER SHOWN.
new text end

new text begin The unique identifier of any person originating a residential mortgage loan shall
be clearly shown on all residential mortgage loan application forms, solicitations, or
advertisements, including business cards or Web sites, and any other documents as
established by rule or order of the commissioner.
new text end

Sec. 30.

Minnesota Statutes 2008, section 80A.46, is amended to read:

80A.46 SECTION 202; EXEMPT TRANSACTIONS.

The following transactions are exempt from the requirements of sections 80A.49
through 80A.54 new text begin , except 80A.50, paragraph (a), clause (3), new text end and 80A.71:

(1) isolated nonissuer transactions, consisting of sale to not more than ten purchasers
in Minnesota during any period of 12 consecutive months, whether effected by or through
a broker-dealer or not;

(2) a nonissuer transaction by or through a broker-dealer registered, or exempt from
registration under this chapter, and a resale transaction by a sponsor of a unit investment
trust registered under the Investment Company Act of 1940, in a security of a class that
has been outstanding in the hands of the public for at least 90 days, if, at the date of
the transaction:

(A) the issuer of the security is engaged in business, the issuer is not in the
organizational stage or in bankruptcy or receivership, and the issuer is not a blank check,
blind pool, or shell company that has no specific business plan or purpose or has indicated
that its primary business plan is to engage in a merger or combination of the business with,
or an acquisition of, an unidentified person;

(B) the security is sold at a price reasonably related to its current market price;

(C) the security does not constitute the whole or part of an unsold allotment to, or
a subscription or participation by, the broker-dealer as an underwriter of the security
or a redistribution;

(D) a nationally recognized securities manual or its electronic equivalent designated
by rule adopted or order issued under this chapter or a record filed with the Securities and
Exchange Commission that is publicly available contains:

(i) a description of the business and operations of the issuer;

(ii) the names of the issuer's executive officers and the names of the issuer's
directors, if any;

(iii) an audited balance sheet of the issuer as of a date within 18 months before the
date of the transaction or, in the case of a reorganization or merger when the parties to
the reorganization or merger each had an audited balance sheet, a pro forma balance
sheet for the combined organization; and

(iv) an audited income statement for each of the issuer's two immediately previous
fiscal years or for the period of existence of the issuer, whichever is shorter, or, in the case
of a reorganization or merger when each party to the reorganization or merger had audited
income statements, a pro forma income statement; and

(E) any one of the following requirements is met:

(i) the issuer of the security has a class of equity securities listed on a national
securities exchange registered under Section 6 of the Securities Exchange Act of 1934
or designated for trading on the National Association of Securities Dealers Automated
Quotation System;

(ii) the issuer of the security is a unit investment trust registered under the Investment
Company Act of 1940;

(iii) the issuer of the security, including its predecessors, has been engaged in
continuous business for at least three years; or

(iv) the issuer of the security has total assets of at least $2,000,000 based on an
audited balance sheet as of a date within 18 months before the date of the transaction or, in
the case of a reorganization or merger when the parties to the reorganization or merger
each had such an audited balance sheet, a pro forma balance sheet for the combined
organization;

(3) a nonissuer transaction by or through a broker-dealer registered or exempt from
registration under this chapter in a security of a foreign issuer that is a margin security
defined in regulations or rules adopted by the Board of Governors of the Federal Reserve
System;

(4) a nonissuer transaction by or through a broker-dealer registered or exempt
from registration under this chapter in an outstanding security if the guarantor of the
security files reports with the Securities and Exchange Commission under the reporting
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C.
Sections 78m or 78o(d));

(5) a nonissuer transaction by or through a broker-dealer registered or exempt from
registration under this chapter in a security that:

(A) is rated at the time of the transaction by a nationally recognized statistical rating
organization in one of its four highest rating categories; or

(B) has a fixed maturity or a fixed interest or dividend, if:

(i) a default has not occurred during the current fiscal year or within the three
previous fiscal years or during the existence of the issuer and any predecessor if less than
three fiscal years, in the payment of principal, interest, or dividends on the security; and

(ii) the issuer is engaged in business, is not in the organizational stage or in
bankruptcy or receivership, and is not and has not been within the previous 12 months a
blank check, blind pool, or shell company that has no specific business plan or purpose or
has indicated that its primary business plan is to engage in a merger or combination of the
business with, or an acquisition of, an unidentified person;

(6) a nonissuer transaction by or through a broker-dealer registered or exempt from
registration under this chapter effecting an unsolicited order or offer to purchase;

(7) a nonissuer transaction executed by a bona fide pledgee without the purpose
of evading this chapter;

(8) a nonissuer transaction by a federal covered investment adviser with investments
under management in excess of $100,000,000 acting in the exercise of discretionary
authority in a signed record for the account of others;

(9) a transaction in a security, whether or not the security or transaction is otherwise
exempt, in exchange for one or more bona fide outstanding securities, claims, or property
interests, or partly in such exchange and partly for cash, if the terms and conditions of
the issuance and exchange or the delivery and exchange and the fairness of the terms and
conditions have been approved by the administrator after a hearing;

(10) a transaction between the issuer or other person on whose behalf the offering is
made and an underwriter, or among underwriters;

(11) a transaction in a note, bond, debenture, or other evidence of indebtedness
secured by a mortgage or other security agreement if:

(A) the note, bond, debenture, or other evidence of indebtedness is offered and sold
with the mortgage or other security agreement as a unit;

(B) a general solicitation or general advertisement of the transaction is not made; and

(C) a commission or other remuneration is not paid or given, directly or indirectly, to
a person not registered under this chapter as a broker-dealer or as an agent;

(12) a transaction by an executor, administrator of an estate, sheriff, marshal,
receiver, trustee in bankruptcy, guardian, or conservator;

(13) a sale or offer to sell to:

(A) an institutional investor;

(B) an accredited investor;

(C) a federal covered investment adviser; or

(D) any other person exempted by rule adopted or order issued under this chapter;

(14) a sale or an offer to sell securities by an issuer, if the transaction is part of
a single issue in which:

(A) not more than 35 purchasers are present in this state during any 12 consecutive
months, other than those designated in paragraph (13);

(B) a general solicitation or general advertising is not made in connection with
the offer to sell or sale of the securities;

(C) a commission or other remuneration is not paid or given, directly or indirectly, to
a person other than a broker-dealer registered under this chapter or an agent registered
under this chapter for soliciting a prospective purchaser in this state; and

(D) the issuer reasonably believes that all the purchasers in this state, other than
those designated in paragraph (13), are purchasing for investment.

Any issuer selling to purchasers in this state in reliance on this clause (14) exemption
must provide to the administrator notice of the transaction by filing a statement of issuer
form as adopted by rule. Notice must be filed at least ten days in advance of any sale or
such shorter period as permitted by the administrator. However, an issuer who makes sales
to ten or fewer purchasers in Minnesota during any period of 12 consecutive months is not
required to provide this notice;

(15) a transaction under an offer to existing security holders of the issuer, including
persons that at the date of the transaction are holders of convertible securities, options,
or warrants, if a commission or other remuneration, other than a standby commission, is
not paid or given, directly or indirectly, for soliciting a security holder in this state. The
person making the offer and effecting the transaction must provide to the administrator
notice of the transaction by filing a written description of the transaction. Notice must be
filed at least ten days in advance of any transaction or such shorter period as permitted by
the administrator;

(16) an offer to sell, but not a sale, of a security not exempt from registration under
the Securities Act of 1933 if:

(A) a registration or offering statement or similar record as required under the
Securities Act of 1933 has been filed, but is not effective, or the offer is made in compliance
with Rule 165 adopted under the Securities Act of 1933 (17 C.F.R. 230.165); and

(B) a stop order of which the offeror is aware has not been issued against the offeror
by the administrator or the Securities and Exchange Commission, and an audit, inspection,
or proceeding that is public and that may culminate in a stop order is not known by the
offeror to be pending;

(17) an offer to sell, but not a sale, of a security exempt from registration under the
Securities Act of 1933 if:

(A) a registration statement has been filed under this chapter, but is not effective;

(B) a solicitation of interest is provided in a record to offerees in compliance with a
rule adopted by the administrator under this chapter; and

(C) a stop order of which the offeror is aware has not been issued by the administrator
under this chapter and an audit, inspection, or proceeding that may culminate in a stop
order is not known by the offeror to be pending;

(18) a transaction involving the distribution of the securities of an issuer to the
security holders of another person in connection with a merger, consolidation, exchange
of securities, sale of assets, or other reorganization to which the issuer, or its parent
or subsidiary and the other person, or its parent or subsidiary, are parties. The person
distributing the issuer's securities must provide to the administrator notice of the
transaction by filing a written description of the transaction along with a consent to service
of process complying with section 80A.88. Notice must be filed at least ten days in
advance of any transaction or such shorter period as permitted by the administrator;

(19) a rescission offer, sale, or purchase under section 80A.77;

(20) an offer or sale of a security to a person not a resident of this state and not
present in this state if the offer or sale does not constitute a violation of the laws of the
state or foreign jurisdiction in which the offeree or purchaser is present and is not part of
an unlawful plan or scheme to evade this chapter;

(21) employees' stock purchase, savings, option, profit-sharing, pension, or
similar employees' benefit plan, including any securities, plan interests, and guarantees
issued under a compensatory benefit plan or compensation contract, contained in a
record, established by the issuer, its parents, its majority-owned subsidiaries, or the
majority-owned subsidiaries of the issuer's parent for the participation of their employees
including offers or sales of such securities to:

(A) directors; general partners; trustees, if the issuer is a business trust; officers;
consultants; and advisors;

(B) family members who acquire such securities from those persons through gifts or
domestic relations orders;

(C) former employees, directors, general partners, trustees, officers, consultants, and
advisors if those individuals were employed by or providing services to the issuer when
the securities were offered; and

(D) insurance agents who are exclusive insurance agents of the issuer, or the issuer's
subsidiaries or parents, or who derive more than 50 percent of their annual income from
those organizations.

A person establishing an employee benefit plan under the exemption in this clause
(21) must provide to the administrator notice of the transaction by filing a written
description of the transaction along with a consent to service of process complying with
section 80A.88. Notice must be filed at least ten days in advance of any transaction or
such shorter period as permitted by the administrator;

(22) a transaction involving:

(A) a stock dividend or equivalent equity distribution, whether the corporation or
other business organization distributing the dividend or equivalent equity distribution is
the issuer or not, if nothing of value is given by stockholders or other equity holders for
the dividend or equivalent equity distribution other than the surrender of a right to a cash
or property dividend if each stockholder or other equity holder may elect to take the
dividend or equivalent equity distribution in cash, property, or stock;

(B) an act incident to a judicially approved reorganization in which a security is
issued in exchange for one or more outstanding securities, claims, or property interests, or
partly in such exchange and partly for cash; or

(C) the solicitation of tenders of securities by an offeror in a tender offer in
compliance with Rule 162 adopted under the Securities Act of 1933 (17 C.F.R. 230.162);

(23) a nonissuer transaction in an outstanding security by or through a broker-dealer
registered or exempt from registration under this chapter, if the issuer is a reporting
issuer in a foreign jurisdiction designated by this paragraph or by rule adopted or order
issued under this chapter; has been subject to continuous reporting requirements in the
foreign jurisdiction for not less than 180 days before the transaction; and the security is
listed on the foreign jurisdiction's securities exchange that has been designated by this
paragraph or by rule adopted or order issued under this chapter, or is a security of the same
issuer that is of senior or substantially equal rank to the listed security or is a warrant or
right to purchase or subscribe to any of the foregoing. For purposes of this paragraph,
Canada, together with its provinces and territories, is a designated foreign jurisdiction
and The Toronto Stock Exchange, Inc., is a designated securities exchange. After an
administrative hearing in compliance with chapter 14, the administrator, by rule adopted
or order issued under this chapter, may revoke the designation of a securities exchange
under this paragraph, if the administrator finds that revocation is necessary or appropriate
in the public interest and for the protection of investors;

(24) any transaction effected by or through a Canadian broker-dealer exempted from
broker-dealer registration pursuant to section 80A.56(b)(3); or

(25)(A) the offer and sale by a cooperative organized under chapter 308A, or
under the laws of another state, of its securities when the securities are offered and sold
only to its members, or when the purchase of the securities is necessary or incidental to
establishing membership in the cooperative, or when the securities are issued as patronage
dividends. This paragraph applies to a cooperative organized under chapter 308A, or under
the laws of another state, only if the cooperative has filed with the administrator a consent
to service of process under section 80A.88 and has, not less than ten days before the
issuance or delivery, furnished the administrator with a written general description of the
transaction and any other information that the administrator requires by rule or otherwise;

(B) the offer and sale by a cooperative organized under chapter 308B of its securities
when the securities are offered and sold to its existing members or when the purchase of the
securities is necessary or incidental to establishing patron membership in the cooperative,
or when such securities are issued as patronage dividends. The administrator has the
power to define "patron membership" for purposes of this paragraph. This paragraph
applies to securities, other than securities issued as patronage dividends, only when:

(i) the issuer, before the completion of the sale of the securities, provides each
offeree or purchaser disclosure materials that, to the extent material to an understanding of
the issuer, its business, and the securities being offered, substantially meet the disclosure
conditions and limitations found in rule 502(b) of Regulation D promulgated by the
Securities and Exchange Commission, Code of Federal Regulations, title 17, section
230.502; and

(ii) within 15 days after the completion of the first sale in each offering completed in
reliance upon this exemption, the cooperative has filed with the administrator a consent to
service of process under section 80A.88 (or has previously filed such a consent), and has
furnished the administrator with a written general description of the transaction and any
other information that the administrator requires by rule or otherwise; and

(C) a cooperative may, at or about the same time as offers or sales are being
completed in reliance upon the exemptions from registration found in this subpart and as
part of a common plan of financing, offer or sell its securities in reliance upon any other
exemption from registration available under this chapter. The offer or sale of securities in
reliance upon the exemptions found in this subpart will not be considered or deemed a part
of or be integrated with any offer or sale of securities conducted by the cooperative in
reliance upon any other exemption from registration available under this chapter, nor will
offers or sales of securities by the cooperative in reliance upon any other exemption from
registration available under this chapter be considered or deemed a part of or be integrated
with any offer or sale conducted by the cooperative in reliance upon this paragraph.

Sec. 31. new text begin ASSESSMENT.
new text end

new text begin (a) The commissioner of commerce may levy a pro rata assessment on institutions
licensed under Minnesota Statutes, chapter 58, to recover the costs to the Department of
Commerce for administering the licensing and registration requirements of Minnesota
Statutes, section 58A.10.
new text end

new text begin (b) The commissioner shall levy the assessments and notify each institution of the
amount of the assessment being levied by September 30, 2010. The institution shall pay
the assessment to the department no later than November 30, 2010. If an institution fails
to pay its assessment by this date, its license may be suspended by the commissioner
until it is paid in full.
new text end

new text begin (c) This section expires December 1, 2010.
new text end

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2009 Supplement, section 58.126, new text end new text begin is repealed.
new text end

Sec. 33. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 5 to 29, 31, and 32 are effective July 31, 2010.
new text end