<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to appropriations; appropriating money to Department of Commerce <br />
         		<a id="pl.1.3"></a><var>1.3</var>and Public Utilities Commission to finance activities related to commerce and <br />
         		<a id="pl.1.4"></a><var>1.4</var>energy; modifying provisions related to Telecommunications Access Minnesota <br />
         		<a id="pl.1.5"></a><var>1.5</var>assessments, insurance audits, insurers and insurance products, certain financial <br />
         		<a id="pl.1.6"></a><var>1.6</var>institutions, regulated activities related to certain mortgage transactions and <br />
         		<a id="pl.1.7"></a><var>1.7</var>professionals, and debt management and debt settlement services; providing <br />
         		<a id="pl.1.8"></a><var>1.8</var>penalties and remedies; appropriating and allocating federal stimulus money for <br />
         		<a id="pl.1.9"></a><var>1.9</var>various energy programs;amending Minnesota Statutes 2008, sections 45.011, <br />
         		<a id="pl.1.10"></a><var>1.10</var>subdivision 1; 45.027, subdivision 1; 46.04, subdivision 1; 46.05; 46.131, <br />
         		<a id="pl.1.11"></a><var>1.11</var>subdivision 2; 47.58, subdivision 1; 47.60, subdivisions 1, 3, 6; 48.21; 58.05, <br />
         		<a id="pl.1.12"></a><var>1.12</var>subdivision 3; 58.06, subdivision 2; 58.126; 58.13, subdivision 1; 60A.124; <br />
         		<a id="pl.1.13"></a><var>1.13</var>60A.14, subdivision 1; 60B.03, subdivision 15; 60L.02, subdivision 3; 61B.19, <br />
         		<a id="pl.1.14"></a><var>1.14</var>subdivision 4; 61B.28, subdivisions 4, 8; 67A.01; 67A.06; 67A.07; 67A.14, <br />
         		<a id="pl.1.15"></a><var>1.15</var>subdivisions 1, 7; 67A.18, subdivision 1; 216B.62, subdivisions 3, 4, 5, by <br />
         		<a id="pl.1.16"></a><var>1.16</var>adding a subdivision; 237.295, subdivisions 2, 3; 325E.311, subdivision 6; <br />
         		<a id="pl.1.17"></a><var>1.17</var>332A.02, subdivisions 5, 8, 9, 10, 13, by adding a subdivision; 332A.04, <br />
         		<a id="pl.1.18"></a><var>1.18</var>subdivision 6; 332A.08; 332A.10; 332A.11, subdivision 2; 332A.14; proposing <br />
         		<a id="pl.1.19"></a><var>1.19</var>coding for new law in Minnesota Statutes, chapters 60A; 61A; 67A; proposing <br />
         		<a id="pl.1.20"></a><var>1.20</var>coding for new law as Minnesota Statutes, chapter 332B; repealing Minnesota <br />
         		<a id="pl.1.21"></a><var>1.21</var>Statutes 2008, sections 60A.129; 61B.19, subdivision 6; 67A.14, subdivision 5; <br />
         		<a id="pl.1.22"></a><var>1.22</var>67A.17; 67A.19; Minnesota Rules, parts 2675.2180; 2675.7100; 2675.7110; <br />
         		<a id="pl.1.23"></a><var>1.23</var>2675.7120; 2675.7130; 2675.7140.<br />
         		<a id="pl.1.24"></a><var>1.24</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.1.0.0"></a><div class="xtend_ce"><a id="pl.1.25"></a><var>1.25</var><b>ARTICLE 1</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.1.26"></a><var>1.26</var><b>APPROPRIATIONS</b><br />
            		
         </div><br />
         		<a id="bill.1.1.0"></a><table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.1.27"></a><var>1.27</var><br />
                  		
               </td>
               <td colspan="7" align="left" valign="bottom">Section 1. <b> SUMMARY OF APPROPRIATIONS.</b><br />
                  		
               </td>
            </tr>
         </table><a id="pl.1.28"></a><var>1.28</var>&nbsp;&nbsp;&nbsp;&nbsp;The amounts shown in this section summarize direct appropriations, by fund, made <br />
         		<a id="pl.1.29"></a><var>1.29</var>in this article.<br />
         		
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.1.30"></a><var>1.30</var><br />
                  		
               </td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td align="center" valign="bottom"><b>2010</b><br />
                  		
               </td>
               <td align="left" valign="bottom"></td>
               <td align="center" valign="bottom"><b>2011</b><br />
                  		
               </td>
               <td align="left" valign="bottom"></td>
               <td align="center" valign="bottom"><b>Total</b><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.1.31"></a><var>1.31</var><br />
                  		
               </td>
               <td align="left" valign="bottom">General<br />
                  		
               </td>
               <td align="center" valign="bottom">$<br />
                  		
               </td>
               <td align="right" valign="bottom">28,041,000<br />
                  		
               </td>
               <td align="center" valign="bottom">$<br />
                  		
               </td>
               <td align="right" valign="bottom">27,041,000<br />
                  		
               </td>
               <td align="center" valign="bottom">$<br />
                  		
               </td>
               <td align="right" valign="bottom">55,082,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.1"></a><var>2.1</var><br />
                  		
               </td>
               <td align="left" valign="bottom">Petroleum Tank Cleanup<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">1,084,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">1,084,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">2,168,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.2"></a><var>2.2</var><br />
                  		
               </td>
               <td align="left" valign="bottom">Workers' Compensation<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">751,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">751,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">1,502,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.3"></a><var>2.3</var><br />
                  		
               </td>
               <td align="left" valign="bottom">Special Revenue<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">300,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">300,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">600,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.4"></a><var>2.4</var><br />
                  		
               </td>
               <td align="left" valign="bottom"><b>Total</b><br />
                  		
               </td>
               <td align="center" valign="bottom"><b>$</b><br />
                  		
               </td>
               <td align="right" valign="bottom"><b>30,176,000</b><br />
                  		
               </td>
               <td align="center" valign="bottom"><b>$</b><br />
                  		
               </td>
               <td align="right" valign="bottom"><b>29,176,000</b><br />
                  		
               </td>
               <td align="center" valign="bottom"><b>$</b><br />
                  		
               </td>
               <td align="right" valign="bottom"><b>59,352,000</b><br />
                  		
               </td>
            </tr>
         </table><br />
         		<a id="bill.1.2.0"></a><table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.2.5"></a><var>2.5</var><br />
                  		
               </td>
               <td colspan="7" align="left" valign="bottom">Sec. 2. <b>ENERGY FINANCE APPROPRIATIONS.</b><br />
                  		
               </td>
            </tr>
         </table><a id="pl.2.6"></a><var>2.6</var>&nbsp;&nbsp;&nbsp;&nbsp;The sums shown in the columns marked "Appropriations" are appropriated to the <br />
         		<a id="pl.2.7"></a><var>2.7</var>agencies and for the purposes specified in this article. The appropriations are from the <br />
         		<a id="pl.2.8"></a><var>2.8</var>general fund, or another named fund, and are available for the fiscal years indicated <br />
         		<a id="pl.2.9"></a><var>2.9</var>for each purpose. The figures "2010" and "2011" used in this article mean that the <br />
         		<a id="pl.2.10"></a><var>2.10</var>appropriations listed under them are available for the fiscal year ending June 30, 2010, or <br />
         		<a id="pl.2.11"></a><var>2.11</var>June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal <br />
         		<a id="pl.2.12"></a><var>2.12</var>year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal <br />
         		<a id="pl.2.13"></a><var>2.13</var>year ending June 30, 2009, are effective the day following final enactment.<br />
         		
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.2.14"></a><var>2.14</var><br />
                  		
               </td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td colspan="4" align="center" valign="bottom"><b>APPROPRIATIONS</b><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.15"></a><var>2.15</var><br />
                  		
               </td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td colspan="4" align="center" valign="bottom"><b>Available for the Year</b><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.16"></a><var>2.16</var><br />
                  		
               </td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td colspan="4" align="center" valign="bottom"><b>Ending June 30</b><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.17"></a><var>2.17</var><br />
                  		
               </td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td align="left" valign="bottom"></td>
               <td align="center" valign="bottom"><b>2010</b><br />
                  		
               </td>
               <td align="left" valign="bottom"></td>
               <td align="center" valign="bottom"><b>2011</b><br />
                  		
               </td>
            </tr>
         </table><br />
         		<a id="bill.1.3.0"></a><table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.2.18"></a><var>2.18</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Sec. 3. <b>DEPARTMENT OF COMMERCE</b><br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom"></td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom"></td>
            </tr>
         </table>
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.2.19"></a><var>2.19</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Subdivision 1.<b>Total Appropriation</b><br />
                  		
               </td>
               <td align="center" valign="bottom"><b>$</b><br />
                  		
               </td>
               <td align="right" valign="bottom"><b>24,743,000</b><br />
                  		
               </td>
               <td align="center" valign="bottom"><b>$</b><br />
                  		
               </td>
               <td align="right" valign="bottom"><b>23,743,000</b><br />
                  		
               </td>
            </tr>
         </table>
         <table>
            <col width="50px"></col>
            <col width="126px"></col>
            <col width="95px"></col>
            <col width="96px"></col>
            <tr>
               <td><a id="pl.2.20"></a><var>2.20</var><br />
                  		
               </td>
               <td colspan="3" align="center" valign="bottom">Appropriations by Fund<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.21"></a><var>2.21</var><br />
                  		
               </td>
               <td align="left" valign="bottom"></td>
               <td align="center" valign="bottom">2010<br />
                  		
               </td>
               <td align="center" valign="bottom">2011<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.22"></a><var>2.22</var><br />
                  		
               </td>
               <td align="left" valign="bottom">General<br />
                  		
               </td>
               <td align="right" valign="bottom">22,608,000<br />
                  		
               </td>
               <td align="right" valign="bottom">21,608,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.23"></a><var>2.23</var><br />
                  		
               </td>
               <td align="left" valign="bottom">Petroleum Cleanup<br />
                  		
               </td>
               <td align="right" valign="bottom">1,084,000<br />
                  		
               </td>
               <td align="right" valign="bottom">1,084,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.24"></a><var>2.24</var><br />
                  		<a id="pl.2.25"></a><var>2.25</var><br />
                  		
               </td>
               <td align="left" valign="bottom">Workers' <br />
                  		Compensation<br />
                  		
               </td>
               <td align="right" valign="bottom">751,000<br />
                  		
               </td>
               <td align="right" valign="bottom">751,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.2.26"></a><var>2.26</var><br />
                  		
               </td>
               <td align="left" valign="bottom">Special Revenue<br />
                  		
               </td>
               <td align="right" valign="bottom">300,000<br />
                  		
               </td>
               <td align="right" valign="bottom">300,000<br />
                  		
               </td>
            </tr>
         </table><a id="pl.2.27"></a><var>2.27</var>The amounts that may be spent for each <br />
         		<a id="pl.2.28"></a><var>2.28</var>purpose are specified in the following <br />
         		<a id="pl.2.29"></a><var>2.29</var>subdivisions.<br />
         		
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.2.30"></a><var>2.30</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Subd. 2.<b>Financial Institutions</b><br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">6,638,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">6,638,000<br />
                  		
               </td>
            </tr>
         </table><a id="pl.2.31"></a><var>2.31</var>$1,000 each year is for consumer small loan <br />
         		<a id="pl.2.32"></a><var>2.32</var>regulation modifications in article 7. This <br />
         		<a id="pl.2.33"></a><var>2.33</var>appropriation is added to the department's <br />
         		<a id="pl.2.34"></a><var>2.34</var>base.<br />
         		
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.3.1"></a><var>3.1</var><br />
                  		<a id="pl.3.2"></a><var>3.2</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Subd. 3.<b>Petroleum Tank Release Cleanup </b><br />
                  		<b>Board</b><br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">1,084,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">1,084,000<br />
                  		
               </td>
            </tr>
         </table><a id="pl.3.3"></a><var>3.3</var>This appropriation is from the petroleum <br />
         		<a id="pl.3.4"></a><var>3.4</var>tank release cleanup fund. The base funding <br />
         		<a id="pl.3.5"></a><var>3.5</var>for this program ends June 30, 2012.<br />
         		
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.3.6"></a><var>3.6</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Subd. 4.<b>Administrative Services</b><br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">4,300,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">4,300,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.7"></a><var>3.7</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Subd. 5.<b>Telecommunications</b><br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">1,010,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">1,010,000<br />
                  		
               </td>
            </tr>
         </table>
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.3.8"></a><var>3.8</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Subd. 6.<b>Market Assurance</b><br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">7,421,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">7,421,000<br />
                  		
               </td>
            </tr>
         </table>
         <table>
            <col width="50px"></col>
            <col width="126px"></col>
            <col width="96px"></col>
            <col width="96px"></col>
            <tr>
               <td><a id="pl.3.9"></a><var>3.9</var><br />
                  		
               </td>
               <td colspan="3" align="center" valign="bottom">Appropriations by Fund<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.10"></a><var>3.10</var><br />
                  		
               </td>
               <td align="left" valign="bottom">General<br />
                  		
               </td>
               <td align="right" valign="bottom">6,670,000<br />
                  		
               </td>
               <td align="right" valign="bottom">6,670,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.11"></a><var>3.11</var><br />
                  		<a id="pl.3.12"></a><var>3.12</var><br />
                  		
               </td>
               <td align="left" valign="bottom">Workers' <br />
                  		Compensation<br />
                  		
               </td>
               <td align="right" valign="bottom">751,000<br />
                  		
               </td>
               <td align="right" valign="bottom">751,000<br />
                  		
               </td>
            </tr>
         </table>
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.3.13"></a><var>3.13</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Subd. 7.<b>Office of Energy Security</b><br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">3,990,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">2,990,000<br />
                  		
               </td>
            </tr>
         </table>
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.3.14"></a><var>3.14</var><br />
                  		<a id="pl.3.15"></a><var>3.15</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Subd. 8.<b>Telecommunications Access </b><br />
                  		<b>Minnesota</b><br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">300,000<br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom">300,000<br />
                  		
               </td>
            </tr>
         </table><a id="pl.3.16"></a><var>3.16</var>$300,000 the first year and $300,000 <br />
         		<a id="pl.3.17"></a><var>3.17</var>the second year are for transfer to the <br />
         		<a id="pl.3.18"></a><var>3.18</var>commissioner of human services to <br />
         		<a id="pl.3.19"></a><var>3.19</var>supplement the ongoing operational expenses <br />
         		<a id="pl.3.20"></a><var>3.20</var>of the Minnesota Commission Serving <br />
         		<a id="pl.3.21"></a><var>3.21</var>Deaf and Hard-of-Hearing People. This <br />
         		<a id="pl.3.22"></a><var>3.22</var>appropriation is from the telecommunication <br />
         		<a id="pl.3.23"></a><var>3.23</var>access Minnesota fund, and is added to <br />
         		<a id="pl.3.24"></a><var>3.24</var>the commission's base. This appropriation <br />
         		<a id="pl.3.25"></a><var>3.25</var>consolidates, and is not in addition to, <br />
         		<a id="pl.3.26"></a><var>3.26</var>appropriation language from Laws 2006, <br />
         		<a id="pl.3.27"></a><var>3.27</var>chapter 282, article 11, section 4, and <br />
         		<a id="pl.3.28"></a><var>3.28</var>Laws 2007, chapter 57, article 2, section 3, <br />
         		<a id="pl.3.29"></a><var>3.29</var>subdivision 7.<br />
         		<br />
         		<a id="bill.1.4.0"></a><table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.3.30"></a><var>3.30</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Sec. 4. <b>PUBLIC UTILITIES COMMISSION</b><br />
                  		
               </td>
               <td align="center" valign="bottom"><b>$</b><br />
                  		
               </td>
               <td align="right" valign="bottom"><b>5,433,000</b><br />
                  		
               </td>
               <td align="center" valign="bottom"><b>$</b><br />
                  		
               </td>
               <td align="right" valign="bottom"><b>5,433,000</b><br />
                  		
               </td>
            </tr>
         </table><br />
         		<a id="bill.1.5.0"></a><a id="pl.3.31"></a><var>3.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2008, section 45.027, subdivision 1, is amended to read:<br />
         		<a id="pl.3.32"></a><var>3.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>General powers.</b> In connection with the duties and responsibilities <br />
         		<a id="pl.3.33"></a><var>3.33</var>entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner <br />
         		<a id="pl.3.34"></a><var>3.34</var>of commerce may:<br />
         		<a id="pl.4.1"></a><var>4.1</var>(1) make public or private investigations within or without this state as the <br />
         		<a id="pl.4.2"></a><var>4.2</var>commissioner considers necessary to determine whether any person has violated or is <br />
         		<a id="pl.4.3"></a><var>4.3</var>about to violate any law, rule, or order related to the duties and responsibilities entrusted <br />
         		<a id="pl.4.4"></a><var>4.4</var>to the commissioner;<br />
         		<a id="pl.4.5"></a><var>4.5</var>(2) require or permit any person to file a statement in writing, under oath or otherwise <br />
         		<a id="pl.4.6"></a><var>4.6</var>as the commissioner determines, as to all the facts and circumstances concerning the <br />
         		<a id="pl.4.7"></a><var>4.7</var>matter being investigated;<br />
         		<a id="pl.4.8"></a><var>4.8</var>(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the <br />
         		<a id="pl.4.9"></a><var>4.9</var>duties and responsibilities entrusted to the commissioner;<br />
         		<a id="pl.4.10"></a><var>4.10</var>(4) conduct investigations and hold hearings for the purpose of compiling <br />
         		<a id="pl.4.11"></a><var>4.11</var>information related to the duties and responsibilities entrusted to the commissioner;<br />
         		<a id="pl.4.12"></a><var>4.12</var>(5) examine the books, accounts, records, and files of every licensee, and of every <br />
         		<a id="pl.4.13"></a><var>4.13</var>person who is engaged in any activity regulated; the commissioner or a designated <br />
         		<a id="pl.4.14"></a><var>4.14</var>representative shall have free access during normal business hours to the offices and <br />
         		<a id="pl.4.15"></a><var>4.15</var>places of business of the person, and to all books, accounts, papers, records, files, safes, <br />
         		<a id="pl.4.16"></a><var>4.16</var>and vaults maintained in the place of business;<br />
         		<a id="pl.4.17"></a><var>4.17</var>(6) publish information which is contained in any order issued by the commissioner; <br />
         		<a id="pl.4.18"></a><var>4.18</var>and<br />
         		<a id="pl.4.19"></a><var>4.19</var>(7) require any person subject to duties and responsibilities entrusted to the <br />
         		<a id="pl.4.20"></a><var>4.20</var>commissioner, to report all sales or transactions that are regulated. The reports must <br />
         		<a id="pl.4.21"></a><var>4.21</var>be made within ten days after the commissioner has ordered the report. The report is <br />
         		<a id="pl.4.22"></a><var>4.22</var>accessible only to the respondent and other governmental agencies unless otherwise <br />
         		<a id="pl.4.23"></a><var>4.23</var>ordered by a court of competent jurisdiction.; and<br />
         		<a id="pl.4.24"></a><var>4.24</var>(8) assess a licensee the necessary expenses of the investigation performed by the <br />
         		<a id="pl.4.25"></a><var>4.25</var>department when an investigation is made by order of the commissioner. The cost of the <br />
         		<a id="pl.4.26"></a><var>4.26</var>investigation shall be determined by the commissioner and is based on the salary cost <br />
         		<a id="pl.4.27"></a><var>4.27</var>of investigators or assistants and at an average rate per day or fraction thereof so as to <br />
         		<a id="pl.4.28"></a><var>4.28</var>provide for the total cost of the investigations. All money collected must be deposited <br />
         		<a id="pl.4.29"></a><var>4.29</var>into the general fund.<br />
         		<br />
         		<a id="bill.1.6.0"></a><a id="pl.4.30"></a><var>4.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2008, section 60A.14, subdivision 1, is amended to read:<br />
         		<a id="pl.4.31"></a><var>4.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Fees other than examination fees.</b> In addition to the fees and <br />
         		<a id="pl.4.32"></a><var>4.32</var>charges provided for examinations, the following fees must be paid to the commissioner <br />
         		<a id="pl.4.33"></a><var>4.33</var>for deposit in the general fund:<br />
         		<a id="pl.4.34"></a><var>4.34</var>(a) by township mutual fire insurance companies;<br />
         		<a id="pl.4.35"></a><var>4.35</var>(1) for filing certificate of incorporation $25 and amendments thereto, $10;<br />
         		<a id="pl.5.1"></a><var>5.1</var>(2) for filing annual statements, $15;<br />
         		<a id="pl.5.2"></a><var>5.2</var>(3) for each annual certificate of authority, $15;<br />
         		<a id="pl.5.3"></a><var>5.3</var>(4) for filing bylaws $25 and amendments thereto, $10;<br />
         		<a id="pl.5.4"></a><var>5.4</var>(b) by other domestic and foreign companies including fraternals and reciprocal <br />
         		<a id="pl.5.5"></a><var>5.5</var>exchanges;<br />
         		<a id="pl.5.6"></a><var>5.6</var>(1) for filing an application for an initial certification of authority to be admitted <br />
         		<a id="pl.5.7"></a><var>5.7</var>to transact business in this state, $1,500;<br />
         		<a id="pl.5.8"></a><var>5.8</var>(2) for filing certified copy of certificate of articles of incorporation, $100;<br />
         		<a id="pl.5.9"></a><var>5.9</var>(3) for filing annual statement, $225;<br />
         		<a id="pl.5.10"></a><var>5.10</var>(4) for filing certified copy of amendment to certificate or articles of incorporation, <br />
         		<a id="pl.5.11"></a><var>5.11</var>$100;<br />
         		<a id="pl.5.12"></a><var>5.12</var>(5) for filing bylaws, $75 or amendments thereto, $75;<br />
         		<a id="pl.5.13"></a><var>5.13</var>(6) for each company's certificate of authority, $575, annually;<br />
         		<a id="pl.5.14"></a><var>5.14</var>(c) the following general fees apply:<br />
         		<a id="pl.5.15"></a><var>5.15</var>(1) for each certificate, including certified copy of certificate of authority, renewal, <br />
         		<a id="pl.5.16"></a><var>5.16</var>valuation of life policies, corporate condition or qualification, $25;<br />
         		<a id="pl.5.17"></a><var>5.17</var>(2) for each copy of paper on file in the commissioner's office 50 cents per page, <br />
         		<a id="pl.5.18"></a><var>5.18</var>and $2.50 for certifying the same;<br />
         		<a id="pl.5.19"></a><var>5.19</var>(3) for license to procure insurance in unadmitted foreign companies, $575;<br />
         		<a id="pl.5.20"></a><var>5.20</var>(4) for valuing the policies of life insurance companies, one cent per $1,000 of <br />
         		<a id="pl.5.21"></a><var>5.21</var>insurance so valued, provided that the fee shall not exceed $13,000 per year for any <br />
         		<a id="pl.5.22"></a><var>5.22</var>company. The commissioner may, in lieu of a valuation of the policies of any foreign life <br />
         		<a id="pl.5.23"></a><var>5.23</var>insurance company admitted, or applying for admission, to do business in this state, accept <br />
         		<a id="pl.5.24"></a><var>5.24</var>a certificate of valuation from the company's own actuary or from the commissioner of <br />
         		<a id="pl.5.25"></a><var>5.25</var>insurance of the state or territory in which the company is domiciled;<br />
         		<a id="pl.5.26"></a><var>5.26</var>(5) for receiving and filing certificates of policies by the company's actuary, or by <br />
         		<a id="pl.5.27"></a><var>5.27</var>the commissioner of insurance of any other state or territory, $50;<br />
         		<a id="pl.5.28"></a><var>5.28</var>(6) for each appointment of an agent filed with the commissioner, $10;<br />
         		<a id="pl.5.29"></a><var>5.29</var>(7) for filing forms, rates, and compliance certifications under section 
         <statute_ref>60A.315</statute_ref>, $90 <br />
         		<a id="pl.5.30"></a><var>5.30</var>$140 per filing, or $75 $125 per filing when submitted via electronic filing system. Filing <br />
         		<a id="pl.5.31"></a><var>5.31</var>fees may be paid on a quarterly basis in response to an invoice. Billing and payment may <br />
         		<a id="pl.5.32"></a><var>5.32</var>be made electronically;<br />
         		<a id="pl.5.33"></a><var>5.33</var>(8) for annual renewal of surplus lines insurer license, $300.<br />
         		<a id="pl.5.34"></a><var>5.34</var>The commissioner shall adopt rules to define filings that are subject to a fee.<br />
         		<br />
         		<a id="bill.1.7.0"></a><a id="pl.5.35"></a><var>5.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2008, section 216B.62, subdivision 3, is amended to read:<br />
         		<a id="pl.6.1"></a><var>6.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Assessing all public utilities.</b> The department and commission shall <br />
         		<a id="pl.6.2"></a><var>6.2</var>quarterly, at least 30 days before the start of each quarter, estimate the total of their <br />
         		<a id="pl.6.3"></a><var>6.3</var>expenditures in the performance of their duties relating to (1) public utilities under section <br />
         		<a id="pl.6.4"></a><var>6.4</var><statute_ref>216A.085</statute_ref>, sections 216A.085 and 
         <statute_ref>216B.01</statute_ref> to 
         <statute_ref>216B.67</statute_ref>, other than amounts chargeable <br />
         		<a id="pl.6.5"></a><var>6.5</var>to public utilities under subdivision 2 or, 6, and (2) alternative energy engineering <br />
         		<a id="pl.6.6"></a><var>6.6</var>activity under section 
         <statute_ref>216C.261</statute_ref> 7, or 8. The remainder, except the amount assessed <br />
         		<a id="pl.6.7"></a><var>6.7</var>against cooperatives and municipalities for alternative energy engineering activity under <br />
         		<a id="pl.6.8"></a><var>6.8</var>subdivision 5, shall be assessed by the commission and department to the several public <br />
         		<a id="pl.6.9"></a><var>6.9</var>utilities in proportion to their respective gross operating revenues from retail sales of gas <br />
         		<a id="pl.6.10"></a><var>6.10</var>or electric service within the state during the last calendar year. The assessment shall be <br />
         		<a id="pl.6.11"></a><var>6.11</var>paid into the state treasury within 30 days after the bill has been transmitted via mail, <br />
         		<a id="pl.6.12"></a><var>6.12</var>personal delivery, or electronic service to the several public utilities, which shall constitute <br />
         		<a id="pl.6.13"></a><var>6.13</var>notice of the assessment and demand of payment thereof. The total amount which may <br />
         		<a id="pl.6.14"></a><var>6.14</var>be assessed to the public utilities, under authority of this subdivision, shall not exceed <br />
         		<a id="pl.6.15"></a><var>6.15</var>one-sixth of one percent of the total gross operating revenues of the public utilities <br />
         		<a id="pl.6.16"></a><var>6.16</var>during the calendar year from retail sales of gas or electric service within the state. The <br />
         		<a id="pl.6.17"></a><var>6.17</var>assessment for the third quarter of each fiscal year shall be adjusted to compensate for the <br />
         		<a id="pl.6.18"></a><var>6.18</var>amount by which actual expenditures by the commission and department for the preceding <br />
         		<a id="pl.6.19"></a><var>6.19</var>fiscal year were more or less than the estimated expenditures previously assessed. <br />
         		<br />
         		<a id="bill.1.8.0"></a><a id="pl.6.20"></a><var>6.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2008, section 216B.62, subdivision 4, is amended to read:<br />
         		<a id="pl.6.21"></a><var>6.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Objections.</b> Within 30 days after the date of the transmittal of any bill as <br />
         		<a id="pl.6.22"></a><var>6.22</var>provided by subdivisions subdivision  2 and, 3, 7, or 8, the public utility against which <br />
         		<a id="pl.6.23"></a><var>6.23</var>the bill has been rendered may file with the commission objections setting out the <br />
         		<a id="pl.6.24"></a><var>6.24</var>grounds upon which it is claimed the bill is excessive, erroneous, unlawful or invalid. <br />
         		<a id="pl.6.25"></a><var>6.25</var>The commission shall within 60 days hold a hearing and issue an order in accordance <br />
         		<a id="pl.6.26"></a><var>6.26</var>with its findings. The order shall be appealable in the same manner as other final orders <br />
         		<a id="pl.6.27"></a><var>6.27</var>of the commission.<br />
         		<br />
         		<a id="bill.1.9.0"></a><a id="pl.6.28"></a><var>6.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2008, section 216B.62, subdivision 5, is amended to read:<br />
         		<a id="pl.6.29"></a><var>6.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Assessing cooperatives and municipals.</b> The commission and department <br />
         		<a id="pl.6.30"></a><var>6.30</var>may charge cooperative electric associations, generation and transmission cooperative <br />
         		<a id="pl.6.31"></a><var>6.31</var>electric associations, municipal power agencies, and municipal electric utilities their <br />
         		<a id="pl.6.32"></a><var>6.32</var>proportionate share of the expenses incurred in the review and disposition of resource <br />
         		<a id="pl.6.33"></a><var>6.33</var>plans, adjudication of service area disputes, proceedings under section 
         <statute_ref>216B.1691</statute_ref>, <br />
         		
         <statute_ref><a id="pl.6.34"></a><var>6.34</var>216B.2425
         </statute_ref>, or 
         <statute_ref>216B.243</statute_ref>, and the costs incurred in the adjudication of complaints over <br />
         		<a id="pl.7.1"></a><var>7.1</var>service standards, practices, and rates. Cooperative electric associations electing to <br />
         		<a id="pl.7.2"></a><var>7.2</var>become subject to rate regulation by the commission pursuant to section 
         <statute_ref>216B.026, <br />
            		<a id="pl.7.3"></a><var>7.3</var>subdivision 4
         </statute_ref>, are also subject to this section. Neither a cooperative electric association <br />
         		<a id="pl.7.4"></a><var>7.4</var>nor a municipal electric utility is liable for costs and expenses in a calendar year in excess <br />
         		<a id="pl.7.5"></a><var>7.5</var>of the limitation on costs that may be assessed against public utilities under subdivision <br />
         		<a id="pl.7.6"></a><var>7.6</var>2. A cooperative electric association, generation and transmission cooperative electric <br />
         		<a id="pl.7.7"></a><var>7.7</var>association, municipal power agency, or municipal electric utility may object to and appeal <br />
         		<a id="pl.7.8"></a><var>7.8</var>bills of the commission and department as provided in subdivision 4.<br />
         		<a id="pl.7.9"></a><var>7.9</var>The department shall assess cooperatives and municipalities for the costs of <br />
         		<a id="pl.7.10"></a><var>7.10</var>alternative energy engineering activities under section 
         <statute_ref>216C.261</statute_ref>. Each cooperative and <br />
         		<a id="pl.7.11"></a><var>7.11</var>municipality shall be assessed in proportion that its gross operating revenues for the sale <br />
         		<a id="pl.7.12"></a><var>7.12</var>of gas and electric service within the state for the last calendar year bears to the total of <br />
         		<a id="pl.7.13"></a><var>7.13</var>those revenues for all public utilities, cooperatives, and municipalities.<br />
         		<br />
         		<a id="bill.1.10.0"></a><a id="pl.7.14"></a><var>7.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2008, section 216B.62, is amended by adding a <br />
         		<a id="pl.7.15"></a><var>7.15</var>subdivision to read:<br />
         		<a id="pl.7.16"></a><var>7.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Assessing all utilities.</b> The department shall assess public utilities, <br />
         		<a id="pl.7.17"></a><var>7.17</var>cooperative electric associations, and municipal utilities for the costs of activities under <br />
         		<a id="pl.7.18"></a><var>7.18</var>chapter 216C. The department shall not assess for costs of grants, loans, or other aids or <br />
         		<a id="pl.7.19"></a><var>7.19</var>for costs that can be recovered through other assessment authority. Each public utility, <br />
         		<a id="pl.7.20"></a><var>7.20</var>cooperative, and municipal utility shall be assessed in the proportion that its gross <br />
         		<a id="pl.7.21"></a><var>7.21</var>operating revenue for the sale of gas and electric service within the state for the last <br />
         		<a id="pl.7.22"></a><var>7.22</var>calendar year bears to the total of those revenues for all public utilities, cooperatives, <br />
         		<a id="pl.7.23"></a><var>7.23</var>and municipalities.<br />
         		<br />
         		<a id="bill.1.11.0"></a><a id="pl.7.24"></a><var>7.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2008, section 237.295, subdivision 2, is amended to read:<br />
         		<a id="pl.7.25"></a><var>7.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Assessment of costs.</b> The department and commission shall quarterly, at <br />
         		<a id="pl.7.26"></a><var>7.26</var>least 30 days before the start of each quarter, estimate the total of their expenditures <br />
         		<a id="pl.7.27"></a><var>7.27</var>in the performance of their duties relating to telephone companies, other than amounts <br />
         		<a id="pl.7.28"></a><var>7.28</var>chargeable to telephone companies under subdivision 1, 5, or 6, or 7. The remainder <br />
         		<a id="pl.7.29"></a><var>7.29</var>must be assessed by the department to the telephone companies operating in this state <br />
         		<a id="pl.7.30"></a><var>7.30</var>in proportion to their respective gross jurisdictional operating revenues during the last <br />
         		<a id="pl.7.31"></a><var>7.31</var>calendar year. The assessment must be paid into the state treasury within 30 days after the <br />
         		<a id="pl.7.32"></a><var>7.32</var>bill has been transmitted via mail, personal delivery, or electronic service to the telephone <br />
         		<a id="pl.7.33"></a><var>7.33</var>companies. The bill constitutes notice of the assessment and demand of payment. The <br />
         		<a id="pl.7.34"></a><var>7.34</var>total amount that may be assessed to the telephone companies under this subdivision may <br />
         		<a id="pl.8.1"></a><var>8.1</var>not exceed three-eighths of one percent of the total gross jurisdictional operating revenues <br />
         		<a id="pl.8.2"></a><var>8.2</var>during the calendar year. The assessment for the third quarter of each fiscal year must be <br />
         		<a id="pl.8.3"></a><var>8.3</var>adjusted to compensate for the amount by which actual expenditures by the commission <br />
         		<a id="pl.8.4"></a><var>8.4</var>and department for the preceding fiscal year were more or less than the estimated <br />
         		<a id="pl.8.5"></a><var>8.5</var>expenditures previously assessed. A telephone company with gross jurisdictional <br />
         		<a id="pl.8.6"></a><var>8.6</var>operating revenues of less than $5,000 is exempt from assessments under this subdivision.<br />
         		<br />
         		<a id="bill.1.12.0"></a><a id="pl.8.7"></a><var>8.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2008, section 237.295, subdivision 3, is amended to read:<br />
         		<a id="pl.8.8"></a><var>8.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Objection.</b> Within 30 days after the date of the transmittal of any bill <br />
         		<a id="pl.8.9"></a><var>8.9</var>as provided by subdivisions 1, 2, 5, and 6, or 7, the parties to the proceeding, against <br />
         		<a id="pl.8.10"></a><var>8.10</var>which the bill has been assessed, may file with the commission objections setting out the <br />
         		<a id="pl.8.11"></a><var>8.11</var>grounds upon which it is claimed the bill is excessive, erroneous, unlawful, or invalid. <br />
         		<a id="pl.8.12"></a><var>8.12</var>The commission shall within 60 days issue an order in accordance with its findings. The <br />
         		<a id="pl.8.13"></a><var>8.13</var>order is appealable in the same manner as other final orders of the commission.<br />
         		<br />
         		<a id="bill.2.0.0"></a><div class="xtend_ce"><a id="pl.8.14"></a><var>8.14</var><b>ARTICLE 2</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.8.15"></a><var>8.15</var><b>DEFINITIONS; GOALS; LEGISLATIVE REVIEW</b><br />
            		
         </div><br />
         		<a id="bill.2.1.0"></a><a id="pl.8.16"></a><var>8.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>FEDERAL STIMULUS FUNDING; GOAL OF ENERGY </b><br />
         		<a id="pl.8.17"></a><var>8.17</var><b>PROGRAMS.</b><br />
         		<a id="pl.8.18"></a><var>8.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> For the purposes of articles 2 to 6, the following terms <br />
         		<a id="pl.8.19"></a><var>8.19</var>have the meaning given them.<br />
         		<a id="pl.8.20"></a><var>8.20</var>(a) "Act" means the American Recovery and Reinvestment Act of 2009.<br />
         		<a id="pl.8.21"></a><var>8.21</var>(b) "Commissioner" means the commissioner of commerce.<br />
         		<a id="pl.8.22"></a><var>8.22</var>(c) "Stimulus funding" or "funding" means funding provided to the state under <br />
         		<a id="pl.8.23"></a><var>8.23</var>the act for:<br />
         		<a id="pl.8.24"></a><var>8.24</var>(1) energy efficiency and conservation block grants authorized under subtitle E of <br />
         		<a id="pl.8.25"></a><var>8.25</var>title V of the federal Energy Independence and Security Act of 2007, United States Code, <br />
         		<a id="pl.8.26"></a><var>8.26</var>title 42, section 17151 et seq.;<br />
         		<a id="pl.8.27"></a><var>8.27</var>(2) the Weatherization Assistance Program authorized under part A of title IV of the <br />
         		<a id="pl.8.28"></a><var>8.28</var>federal Energy Conservation and Production Act, United States Code, title 42, section <br />
         		<a id="pl.8.29"></a><var>8.29</var>6861, et seq.; and<br />
         		<a id="pl.8.30"></a><var>8.30</var>(3) the State Energy Program authorized under part D of title III of the federal <br />
         		<a id="pl.8.31"></a><var>8.31</var>Energy Policy and Conservation Act, United States Code, title 42, section 6321, et seq.<br />
         		<a id="pl.8.32"></a><var>8.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Stimulus funding allocation and use goals.</b> To the extent allowed by <br />
         		<a id="pl.8.33"></a><var>8.33</var>federal law and regulation and consistent with the purposes and principles of the act, <br />
         		<a id="pl.9.1"></a><var>9.1</var>stimulus funding must be allocated and expended under articles 2 to 4 for activities that <br />
         		<a id="pl.9.2"></a><var>9.2</var>best achieve the following goals:<br />
         		<a id="pl.9.3"></a><var>9.3</var>(1) job retention and creation;<br />
         		<a id="pl.9.4"></a><var>9.4</var>(2) improved energy efficiency and increased renewable energy production capacity;<br />
         		<a id="pl.9.5"></a><var>9.5</var>(3) coordination with and leveraging of other resources to increase the total benefits <br />
         		<a id="pl.9.6"></a><var>9.6</var>derived from stimulus funding;<br />
         		<a id="pl.9.7"></a><var>9.7</var>(4) timely implementation of funded activities;<br />
         		<a id="pl.9.8"></a><var>9.8</var>(5) long-term sustainability of benefits derived from stimulus funds;<br />
         		<a id="pl.9.9"></a><var>9.9</var>(6) geographic distribution across the state; and<br />
         		<a id="pl.9.10"></a><var>9.10</var>(7) compliance with the disadvantaged business enterprise outreach requirements in <br />
         		<a id="pl.9.11"></a><var>9.11</var>Minnesota Statutes, section 16C.16, subdivision 4.<br />
         		<a id="pl.9.12"></a><var>9.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.2.0"></a><a id="pl.9.13"></a><var>9.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>LEGISLATIVE REVIEW.</b><br />
         		<a id="pl.9.14"></a><var>9.14</var>The Office of Energy Security shall, prior to expending any stimulus funds, submit <br />
         		<a id="pl.9.15"></a><var>9.15</var>to the chairs and ranking minority members of the senate and house of representatives <br />
         		<a id="pl.9.16"></a><var>9.16</var>committees with primary jurisdiction over energy policy and finance the criteria it <br />
         		<a id="pl.9.17"></a><var>9.17</var>proposes to use to rank the programs in articles 2 to 6 in order to allocate stimulus funding <br />
         		<a id="pl.9.18"></a><var>9.18</var>among the programs. Comments on the proposed criteria must be submitted to the Office <br />
         		<a id="pl.9.19"></a><var>9.19</var>of Energy Security within ten working days of receipt of the criteria. The Office of Energy <br />
         		<a id="pl.9.20"></a><var>9.20</var>Security shall consider the comments before establishing the final allocation criteria, and <br />
         		<a id="pl.9.21"></a><var>9.21</var>shall submit a report on the amount of stimulus funds allocated to each of the programs <br />
         		<a id="pl.9.22"></a><var>9.22</var>under articles 2 to 6 the chairs and ranking minority members of the senate and house of <br />
         		<a id="pl.9.23"></a><var>9.23</var>representatives committees with primary jurisdiction over energy policy and finance <br />
         		<a id="pl.9.24"></a><var>9.24</var>within ten working days of establishing the stimulus funding allocations.<br />
         		<a id="pl.9.25"></a><var>9.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.0.0"></a><div class="xtend_ce"><a id="pl.9.26"></a><var>9.26</var><b>ARTICLE 3</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.9.27"></a><var>9.27</var><b>ENERGY EFFICIENCY</b><br />
            		
         </div><br />
         		<a id="bill.3.1.0"></a><a id="pl.9.28"></a><var>9.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>WEATHERIZATION.</b><br />
         		<a id="pl.9.29"></a><var>9.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Allocation of funds.</b> All stimulus funds for weatherization must be <br />
         		<a id="pl.9.30"></a><var>9.30</var>allocated by the director of the Office of Energy Security, consistent with federal allocation <br />
         		<a id="pl.9.31"></a><var>9.31</var>requirements and state allocation formulas in the state weatherization plan. Existing <br />
         		<a id="pl.9.32"></a><var>9.32</var>providers of weatherization services must be fully utilized, consistent with effective <br />
         		<a id="pl.9.33"></a><var>9.33</var>program delivery, before additional providers of weatherization services are added.<br />
         		<a id="pl.10.1"></a><var>10.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Rental units.</b>  Programs that include rental units must be developed, <br />
         		<a id="pl.10.2"></a><var>10.2</var>including developing procedures to increase low-income rental unit participation in <br />
         		<a id="pl.10.3"></a><var>10.3</var>programs. Priority must be given to serving the largest number of new weatherization <br />
         		<a id="pl.10.4"></a><var>10.4</var>clients consistent with federal eligibility requirements.<br />
         		<a id="pl.10.5"></a><var>10.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.2.0"></a><a id="pl.10.6"></a><var>10.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>LOCAL GOVERNMENT AND SCHOOL DISTRICT BUILDING </b><br />
         		<a id="pl.10.7"></a><var>10.7</var><b>RENOVATIONS.</b><br />
         		<a id="pl.10.8"></a><var>10.8</var>The Office of Energy Security must coordinate the use of stimulus funds with the <br />
         		<a id="pl.10.9"></a><var>10.9</var>local public building enhanced energy-efficiency program under Minnesota Statutes, <br />
         		<a id="pl.10.10"></a><var>10.10</var>section 216C.43. The Office of Energy Security shall prioritize lighting upgrades, energy <br />
         		<a id="pl.10.11"></a><var>10.11</var>recommissioning, and other cost-effective energy projects that are ready for immediate <br />
         		<a id="pl.10.12"></a><var>10.12</var>implementation. Stimulus funds may be used for, but are not limited to, grants for a portion <br />
         		<a id="pl.10.13"></a><var>10.13</var>of costs incurred by local governments to implement energy efficiency improvements <br />
         		<a id="pl.10.14"></a><var>10.14</var>under the local public building enhanced energy-efficiency program.  The Office of Energy <br />
         		<a id="pl.10.15"></a><var>10.15</var>Security may require a local government, as a condition of receiving a grant, to commit to <br />
         		<a id="pl.10.16"></a><var>10.16</var>implement future activities, including, but not limited to, staff training, that are designed <br />
         		<a id="pl.10.17"></a><var>10.17</var>to create additional energy or operating savings to the local government.  The Office of <br />
         		<a id="pl.10.18"></a><var>10.18</var>Energy Security shall coordinate with the Department of Education to prioritize school <br />
         		<a id="pl.10.19"></a><var>10.19</var>district projects for funding under this section, consistent with the principles of statewide <br />
         		<a id="pl.10.20"></a><var>10.20</var>geographic distribution of projects, optimized energy savings, and an improved learning <br />
         		<a id="pl.10.21"></a><var>10.21</var>environment for schoolchildren.<br />
         		<a id="pl.10.22"></a><var>10.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.3.0"></a><a id="pl.10.23"></a><var>10.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. <b>STATE GOVERNMENT BUILDINGS.</b><br />
         		<a id="pl.10.24"></a><var>10.24</var>The Department of Administration shall develop a plan and procedures to select, <br />
         		<a id="pl.10.25"></a><var>10.25</var>fund, and implement projects using stimulus funds. The plan and procedures shall <br />
         		<a id="pl.10.26"></a><var>10.26</var>prioritize lighting upgrades, energy-efficient windows, energy recommissioning, and other <br />
         		<a id="pl.10.27"></a><var>10.27</var>cost-effective energy projects that are ready for immediate implementation. Funds may be <br />
         		<a id="pl.10.28"></a><var>10.28</var>used for, but are not limited to, grants for a portion of costs incurred by state agencies in <br />
         		<a id="pl.10.29"></a><var>10.29</var>implementing energy efficiency improvements.  The Department of Administration may <br />
         		<a id="pl.10.30"></a><var>10.30</var>require a state agency, as a condition of receiving stimulus funds, to commit to implement <br />
         		<a id="pl.10.31"></a><var>10.31</var>future activities, including, but not limited to, staff training, that are designed to create <br />
         		<a id="pl.10.32"></a><var>10.32</var>additional energy or operating savings to the state agency.<br />
         		<a id="pl.10.33"></a><var>10.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.4.0"></a><a id="pl.11.1"></a><var>11.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. <b>RESIDENTIAL ENERGY EFFICIENCY PROGRAMS.</b><br />
         		<a id="pl.11.2"></a><var>11.2</var>The Office of Energy Security shall coordinate with the Minnesota Housing Finance <br />
         		<a id="pl.11.3"></a><var>11.3</var>Agency to use stimulus funds in conjunction with the Minnesota Housing Finance <br />
         		<a id="pl.11.4"></a><var>11.4</var>Agency's existing financing programs to improve energy efficiency in dwellings.<br />
         		<a id="pl.11.5"></a><var>11.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.5.0"></a><a id="pl.11.6"></a><var>11.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. <b>TRAINING AND WORKFORCE DEVELOPMENT.</b><br />
         		<a id="pl.11.7"></a><var>11.7</var>(a) The Department of Employment and Economic Development, in consultation <br />
         		<a id="pl.11.8"></a><var>11.8</var>with the Office of Energy Security and the Office of Higher Education, shall develop a <br />
         		<a id="pl.11.9"></a><var>11.9</var>plan and procedures to:<br />
         		<a id="pl.11.10"></a><var>11.10</var>(1) allocate stimulus funds to training programs to train energy professionals needed <br />
         		<a id="pl.11.11"></a><var>11.11</var>to implement the energy programs described in sections 2 to 4, including but not limited to <br />
         		<a id="pl.11.12"></a><var>11.12</var>energy auditors, energy managers, and building operators;<br />
         		<a id="pl.11.13"></a><var>11.13</var>(2) coordinate, oversee, and monitor the training and certification of energy <br />
         		<a id="pl.11.14"></a><var>11.14</var>professionals; and<br />
         		<a id="pl.11.15"></a><var>11.15</var>(3) allocate stimulus funding for the purposes of clauses (1) and (2) and to training <br />
         		<a id="pl.11.16"></a><var>11.16</var>providers.<br />
         		<a id="pl.11.17"></a><var>11.17</var>(b) Training strategies must be designed to meet the wide range of facilities <br />
         		<a id="pl.11.18"></a><var>11.18</var>managers and building sizes and types, and must protect the occupational health and safety <br />
         		<a id="pl.11.19"></a><var>11.19</var>of workers employed on these energy projects. Technical skills training must include <br />
         		<a id="pl.11.20"></a><var>11.20</var>insulation, air sealing, and mechanical work.<br />
         		<a id="pl.11.21"></a><var>11.21</var>(c) The plan must include procedures to:<br />
         		<a id="pl.11.22"></a><var>11.22</var>(1) train individuals already employed in implementing energy programs;<br />
         		<a id="pl.11.23"></a><var>11.23</var>(2) recruit individuals to be trained to perform work in energy projects using <br />
         		<a id="pl.11.24"></a><var>11.24</var>stimulus funding who are unemployed, especially targeting communities experiencing <br />
         		<a id="pl.11.25"></a><var>11.25</var>disproportionately high rates of unemployment, including, but not limited to, low-income, <br />
         		<a id="pl.11.26"></a><var>11.26</var>rural, or tribal communities and individuals in construction trades and crafts; and<br />
         		<a id="pl.11.27"></a><var>11.27</var>(3) ensure that the full capacity of current training providers is utilized, including, <br />
         		<a id="pl.11.28"></a><var>11.28</var>but not limited to, opportunities industrialization centers, skilled trades labor unions, tribal <br />
         		<a id="pl.11.29"></a><var>11.29</var>colleges or nonprofits working in tribal communities, community action partnerships, <br />
         		<a id="pl.11.30"></a><var>11.30</var>utility companies, higher education institutions, and nonprofit organizations with <br />
         		<a id="pl.11.31"></a><var>11.31</var>demonstrated expertise in energy efficiency.<br />
         		<a id="pl.11.32"></a><var>11.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.6.0"></a><a id="pl.11.33"></a><var>11.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. <b>ACCOUNTABILITY AND TRANSPARENCY REPORTING.</b><br />
         		<a id="pl.12.1"></a><var>12.1</var>The director of the Office of Energy Security, after compiling information supplied <br />
         		<a id="pl.12.2"></a><var>12.2</var>by the Departments of Administration, Education, and Employment and Economic <br />
         		<a id="pl.12.3"></a><var>12.3</var>Development, and the Office of Higher Education, shall report on the progress of the <br />
         		<a id="pl.12.4"></a><var>12.4</var>programs funded under articles 2 to 6 to the house of representatives and senate committees <br />
         		<a id="pl.12.5"></a><var>12.5</var>with jurisdiction over energy finance and workforce development policy by September 1, <br />
         		<a id="pl.12.6"></a><var>12.6</var>2009, January 15, 2010, April 1, 2010, and September 1, 2010. The report must include a <br />
         		<a id="pl.12.7"></a><var>12.7</var>complete accounting of all stimulus funds spent on the programs funded under articles 2 to <br />
         		<a id="pl.12.8"></a><var>12.8</var>6, to the extent allowable by state and federal law, including, but not limited to:<br />
         		<a id="pl.12.9"></a><var>12.9</var>(1) the specific projects funded, including the location, building owner, and project <br />
         		<a id="pl.12.10"></a><var>12.10</var>manager;<br />
         		<a id="pl.12.11"></a><var>12.11</var>(2) the number of jobs retained or created by each project;<br />
         		<a id="pl.12.12"></a><var>12.12</var>(3) the total calculated and actual energy savings for each project;<br />
         		<a id="pl.12.13"></a><var>12.13</var>(4) the remaining balances in each stimulus fund;<br />
         		<a id="pl.12.14"></a><var>12.14</var>(5) the nonstimulus funding leveraged by stimulus funds for each project;<br />
         		<a id="pl.12.15"></a><var>12.15</var>(6) the training courses provided, including the location and provider of courses <br />
         		<a id="pl.12.16"></a><var>12.16</var>offered, the funding source for each training course, and the total number of trainees; and<br />
         		<a id="pl.12.17"></a><var>12.17</var>(7) compliance with prevailing wage, veterans, and disadvantaged business <br />
         		<a id="pl.12.18"></a><var>12.18</var>enterprise requirements.<br />
         		<a id="pl.12.19"></a><var>12.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.0.0"></a><div class="xtend_ce"><a id="pl.12.20"></a><var>12.20</var><b>ARTICLE 4</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.12.21"></a><var>12.21</var><b>RENEWABLE ENERGY</b><br />
            		
         </div><br />
         		<a id="bill.4.1.0"></a><a id="pl.12.22"></a><var>12.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>RENEWABLE ENERGY GRANT PROGRAM.</b><br />
         		<a id="pl.12.23"></a><var>12.23</var>(a) The commissioner of commerce shall establish a program to award grants to <br />
         		<a id="pl.12.24"></a><var>12.24</var>energy projects that meet the following conditions:<br />
         		<a id="pl.12.25"></a><var>12.25</var>(1) the project qualifies as a community-based energy development (C-BED) project, <br />
         		<a id="pl.12.26"></a><var>12.26</var>as defined in Minnesota Statutes, section 216B.1612, subdivision 2, paragraph (g);<br />
         		<a id="pl.12.27"></a><var>12.27</var>(2) for wind projects, the project is located in an area where the measured wind <br />
         		<a id="pl.12.28"></a><var>12.28</var>resource is Class 4 or above;<br />
         		<a id="pl.12.29"></a><var>12.29</var>(3) the project begins commercial operation after July 1, 2009;<br />
         		<a id="pl.12.30"></a><var>12.30</var>(4) the project does not receive renewable energy payment incentives under <br />
         		<a id="pl.12.31"></a><var>12.31</var>Minnesota Statutes, section 216C.41; and<br />
         		<a id="pl.12.32"></a><var>12.32</var>(5) the project meets any other conditions established under the American Recovery <br />
         		<a id="pl.12.33"></a><var>12.33</var>and Reinvestment Act of 2009, Public Law 111-5, for use of these funds.<br />
         		<a id="pl.13.1"></a><var>13.1</var>(b) The department shall develop an application form, application review procedures, <br />
         		<a id="pl.13.2"></a><var>13.2</var>criteria that projects must meet in order to be considered for a grant award, procedures <br />
         		<a id="pl.13.3"></a><var>13.3</var>and guidelines for project monitoring and evaluation, and other administrative procedures <br />
         		<a id="pl.13.4"></a><var>13.4</var>necessary to fully implement a grant program.<br />
         		<a id="pl.13.5"></a><var>13.5</var>(c) The maximum grant to a project is $500,000.<br />
         		<a id="pl.13.6"></a><var>13.6</var>(d) No more than two projects in a single county may receive a grant under this <br />
         		<a id="pl.13.7"></a><var>13.7</var>section.<br />
         		<a id="pl.13.8"></a><var>13.8</var>(e) No C-BED qualifying owner may financially participate in more than one project <br />
         		<a id="pl.13.9"></a><var>13.9</var>that receives a grant under this section.<br />
         		<a id="pl.13.10"></a><var>13.10</var>(f) Grant awards must be geographically dispersed throughout the state.<br />
         		<a id="pl.13.11"></a><var>13.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.2.0"></a><a id="pl.13.12"></a><var>13.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>RENEWABLE ELECTRIC GENERATION FACILITY REBATES.</b><br />
         		<a id="pl.13.13"></a><var>13.13</var>(a) The commissioner shall establish a program to award rebates to qualifying <br />
         		<a id="pl.13.14"></a><var>13.14</var>facilities that generate electricity from a renewable source and that:<br />
         		<a id="pl.13.15"></a><var>13.15</var>(1) begin operation after July 1, 2009; <br />
         		<a id="pl.13.16"></a><var>13.16</var>(2) meet all other conditions established under the act; and<br />
         		<a id="pl.13.17"></a><var>13.17</var>(3) provide electricity to:<br />
         		<a id="pl.13.18"></a><var>13.18</var>(i) a homeowner's primary residence; or<br />
         		<a id="pl.13.19"></a><var>13.19</var>(ii) a business, with 20 or fewer full-time employees.<br />
         		<a id="pl.13.20"></a><var>13.20</var>(b) The commissioner shall develop an application form, application review <br />
         		<a id="pl.13.21"></a><var>13.21</var>procedures, criteria that projects must meet in order to be considered for a rebate, <br />
         		<a id="pl.13.22"></a><var>13.22</var>procedures and guidelines for project monitoring and evaluation, and other administrative <br />
         		<a id="pl.13.23"></a><var>13.23</var>procedures necessary to fully implement a rebate program.<br />
         		<a id="pl.13.24"></a><var>13.24</var>(c) The owner of a qualifying facility may apply to the commissioner for a rebate of <br />
         		<a id="pl.13.25"></a><var>13.25</var>the lesser of $2,500 or 35 percent of the cost of the electric generation facility, including <br />
         		<a id="pl.13.26"></a><var>13.26</var>installation costs.<br />
         		<a id="pl.13.27"></a><var>13.27</var>(d) The commissioner shall award rebates only from funds appropriated for that <br />
         		<a id="pl.13.28"></a><var>13.28</var>purpose and to the extent of those appropriations. Grants must be made to applicants in <br />
         		<a id="pl.13.29"></a><var>13.29</var>the order of the time of receipt of a complete application.<br />
         		<a id="pl.13.30"></a><var>13.30</var>(e) For purposes of this section:<br />
         		<a id="pl.13.31"></a><var>13.31</var>(1) "Qualifying facility" means an electric generation facility with a capacity of less <br />
         		<a id="pl.13.32"></a><var>13.32</var>than 40 kilowatts that generates electricity from a renewable energy source.<br />
         		<a id="pl.13.33"></a><var>13.33</var>(2) "Renewable energy source" means:<br />
         		<a id="pl.13.34"></a><var>13.34</var>(i) solar;<br />
         		<a id="pl.13.35"></a><var>13.35</var>(ii) wind;<br />
         		<a id="pl.14.1"></a><var>14.1</var>(iii) hydroelectric;<br />
         		<a id="pl.14.2"></a><var>14.2</var>(iv) hydrogen, provided that after January 1, 2010, the hydrogen must be generated <br />
         		<a id="pl.14.3"></a><var>14.3</var>from the resources listed in this clause; or<br />
         		<a id="pl.14.4"></a><var>14.4</var>(v) biomass, which includes, without limitation, landfill gas; an anaerobic digester <br />
         		<a id="pl.14.5"></a><var>14.5</var>system; and the predominantly organic components of wastewater effluent, sludge, or <br />
         		<a id="pl.14.6"></a><var>14.6</var>related by-products from publicly owned treatment works, but not including incineration <br />
         		<a id="pl.14.7"></a><var>14.7</var>of wastewater sludge to produce electricity.<br />
         		<a id="pl.14.8"></a><var>14.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.3.0"></a><a id="pl.14.9"></a><var>14.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. <b>SOLAR ENERGY PROJECTS IN PUBLIC BUILDINGS AND </b><br />
         		<a id="pl.14.10"></a><var>14.10</var><b>SCHOOLS.</b><br />
         		<a id="pl.14.11"></a><var>14.11</var>(a) The commissioner shall establish a program to award grants to:<br />
         		<a id="pl.14.12"></a><var>14.12</var>(1) local units of government to pay the costs of installing solar energy projects to <br />
         		<a id="pl.14.13"></a><var>14.13</var>generate energy used in public buildings; or<br />
         		<a id="pl.14.14"></a><var>14.14</var>(2) to school districts to pay the costs of installing solar energy projects to generate <br />
         		<a id="pl.14.15"></a><var>14.15</var>energy used in K-12 schools.<br />
         		<a id="pl.14.16"></a><var>14.16</var>(b) To be eligible to receive a grant, a project must:<br />
         		<a id="pl.14.17"></a><var>14.17</var>(1) begin operation after July 1, 2009; and<br />
         		<a id="pl.14.18"></a><var>14.18</var>(2) meet all other conditions established under the act.<br />
         		<a id="pl.14.19"></a><var>14.19</var>(c) The commissioner shall develop an application form, application review <br />
         		<a id="pl.14.20"></a><var>14.20</var>procedures, criteria that a project must meet in order to be considered for a grant award, <br />
         		<a id="pl.14.21"></a><var>14.21</var>procedures and guidelines for project monitoring and evaluation, and other administrative <br />
         		<a id="pl.14.22"></a><var>14.22</var>procedures necessary to fully implement a grant program.<br />
         		<a id="pl.14.23"></a><var>14.23</var>(d) In awarding grants, the commissioner must determine, at a minimum, the <br />
         		<a id="pl.14.24"></a><var>14.24</var>following:<br />
         		<a id="pl.14.25"></a><var>14.25</var>(1) that the physical condition of the building is sufficient to support the efficient <br />
         		<a id="pl.14.26"></a><var>14.26</var>operation of the solar energy project;<br />
         		<a id="pl.14.27"></a><var>14.27</var>(2) that there is no significant possibility that the building may close within ten <br />
         		<a id="pl.14.28"></a><var>14.28</var>years, which determination, for a school, must be based on enrollment projections; and<br />
         		<a id="pl.14.29"></a><var>14.29</var>(3) that the projected cumulative energy savings exceed the grant amount within 15 <br />
         		<a id="pl.14.30"></a><var>14.30</var>years for a qualifying solar thermal project, and within 20 years for a photovoltaic device.<br />
         		<a id="pl.14.31"></a><var>14.31</var>(e) In awarding grants, the commissioner must also consider:<br />
         		<a id="pl.14.32"></a><var>14.32</var>(1) the reliability and cost-effectiveness of the solar technology to be installed;<br />
         		<a id="pl.14.33"></a><var>14.33</var>(2) the extent to which the proposal effectively coordinates with the conservation <br />
         		<a id="pl.14.34"></a><var>14.34</var>and energy efficiency programs offered by the energy utilities serving the building in <br />
         		<a id="pl.15.1"></a><var>15.1</var>which the project is located, and with the public building enhanced energy efficiency <br />
         		<a id="pl.15.2"></a><var>15.2</var>program under section 216C.43, if applicable;<br />
         		<a id="pl.15.3"></a><var>15.3</var>(3) life cycle energy use reductions and greenhouse gas emissions reductions <br />
         		<a id="pl.15.4"></a><var>15.4</var>projected per dollar of installed cost of the project; and<br />
         		<a id="pl.15.5"></a><var>15.5</var>(4) the geographic distribution of grant recipients throughout the state.<br />
         		<a id="pl.15.6"></a><var>15.6</var>(f) For the purposes of this section:<br />
         		<a id="pl.15.7"></a><var>15.7</var>(1) "public building" means any publicly owned building, sports arena, or other <br />
         		<a id="pl.15.8"></a><var>15.8</var>facility of a county, city, or other local unit of government; and<br />
         		<a id="pl.15.9"></a><var>15.9</var>(2)  "solar energy" means:<br />
         		<a id="pl.15.10"></a><var>15.10</var>(i) a photovoltaic device, as defined in Minnesota Statutes, section 216C.06, <br />
         		<a id="pl.15.11"></a><var>15.11</var>subdivision 16; or<br />
         		<a id="pl.15.12"></a><var>15.12</var>(ii) a qualifying thermal project, as defined in Minnesota Statutes, section <br />
         		<a id="pl.15.13"></a><var>15.13</var>216B.2411, subdivision 2, that includes modifications made to a distribution system to <br />
         		<a id="pl.15.14"></a><var>15.14</var>distribute heating or cooling throughout a building.<br />
         		<a id="pl.15.15"></a><var>15.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.0.0"></a><div class="xtend_ce"><a id="pl.15.16"></a><var>15.16</var><b>ARTICLE 5</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.15.17"></a><var>15.17</var><b>MISCELLANEOUS PROGRAMS </b><br />
            		
         </div><br />
         		<a id="bill.5.1.0"></a><a id="pl.15.18"></a><var>15.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>ENERGY PROGRAMS IN COMMERCIAL AND INDUSTRIAL </b><br />
         		<a id="pl.15.19"></a><var>15.19</var><b>BUILDINGS.</b><br />
         		<a id="pl.15.20"></a><var>15.20</var>(a) The commissioner shall establish a program to award grants to commercial <br />
         		<a id="pl.15.21"></a><var>15.21</var>and industrial facilities for the purpose of installing energy-efficiency improvements or <br />
         		<a id="pl.15.22"></a><var>15.22</var>creating renewable energy sources to generate electricity or to heat or cool a building. To <br />
         		<a id="pl.15.23"></a><var>15.23</var>be eligible to receive a grant, a project must:<br />
         		<a id="pl.15.24"></a><var>15.24</var>(1) begin commercial operation after July 1, 2009; and<br />
         		<a id="pl.15.25"></a><var>15.25</var>(2) meet all other conditions established under the act.<br />
         		<a id="pl.15.26"></a><var>15.26</var>(b) The commissioner shall develop an application form, application review <br />
         		<a id="pl.15.27"></a><var>15.27</var>procedures, criteria that a project must meet in order to be considered for a grant award, <br />
         		<a id="pl.15.28"></a><var>15.28</var>procedures and guidelines for project monitoring and evaluation, and other administrative <br />
         		<a id="pl.15.29"></a><var>15.29</var>procedures necessary to fully implement a grant program.<br />
         		<a id="pl.15.30"></a><var>15.30</var>(c) For the purposes of this section, "renewable energy source" means:<br />
         		<a id="pl.15.31"></a><var>15.31</var>(i) solar;<br />
         		<a id="pl.15.32"></a><var>15.32</var>(ii) wind;<br />
         		<a id="pl.15.33"></a><var>15.33</var>(iii) hydroelectric;<br />
         		<a id="pl.16.1"></a><var>16.1</var>(iv) hydrogen, provided that after January 1, 2010, the hydrogen must be generated <br />
         		<a id="pl.16.2"></a><var>16.2</var>from the resources listed in this clause; or<br />
         		<a id="pl.16.3"></a><var>16.3</var>(v) biomass, which includes, without limitation, landfill gas; an anaerobic digester <br />
         		<a id="pl.16.4"></a><var>16.4</var>system; and the predominantly organic components of wastewater effluent, sludge, or <br />
         		<a id="pl.16.5"></a><var>16.5</var>related by-products from publicly owned treatment works, but not including incineration <br />
         		<a id="pl.16.6"></a><var>16.6</var>of wastewater sludge to produce electricity.<br />
         		<a id="pl.16.7"></a><var>16.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.2.0"></a><a id="pl.16.8"></a><var>16.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>ENERGY EDUCATION, TRAINING, AND DATA SYSTEMS.</b><br />
         		<a id="pl.16.9"></a><var>16.9</var>The Office of Energy Security shall establish programs to work with teachers and <br />
         		<a id="pl.16.10"></a><var>16.10</var>other energy experts to include energy issues in K-12 curricula; develop training and <br />
         		<a id="pl.16.11"></a><var>16.11</var>certification programs for technicians to install and service wind and solar energy systems; <br />
         		<a id="pl.16.12"></a><var>16.12</var>and upgrade data systems to enable accurate tracking of energy savings resulting from the <br />
         		<a id="pl.16.13"></a><var>16.13</var>conservation improvement program and other state energy programs.<br />
         		<a id="pl.16.14"></a><var>16.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.3.0"></a><a id="pl.16.15"></a><var>16.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. <b>ENERGY EFFICIENCY GRANTS TO LOCAL GOVERNMENTS.</b><br />
         		<a id="pl.16.16"></a><var>16.16</var>The Office of Energy Security shall establish a grant program to award grants to <br />
         		<a id="pl.16.17"></a><var>16.17</var>local units of government to enhance energy efficiency and reduce energy use. Energy <br />
         		<a id="pl.16.18"></a><var>16.18</var>efficiency and conservation block grant funds may be used for grants for planning, <br />
         		<a id="pl.16.19"></a><var>16.19</var>consultant services, energy audits, implementing energy-efficient building codes and <br />
         		<a id="pl.16.20"></a><var>16.20</var>inspection services, energy efficiency renovations, street lighting, and the installation of <br />
         		<a id="pl.16.21"></a><var>16.21</var>renewable energy devices deployed on public buildings.<br />
         		<br />
         		<a id="bill.6.0.0"></a><div class="xtend_ce"><a id="pl.16.22"></a><var>16.22</var><b>ARTICLE 6</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.16.23"></a><var>16.23</var><b>APPROPRIATIONS</b><br />
            		
         </div><br />
         		<a id="bill.6.1.0"></a><a id="pl.16.24"></a><var>16.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>WEATHERIZATION ASSISTANCE PROGRAM APPROPRIATION.</b><br />
         		<a id="pl.16.25"></a><var>16.25</var>Of the funds available to the state of Minnesota from the federal stimulus funding for <br />
         		<a id="pl.16.26"></a><var>16.26</var>the weatherization assistance program under the American Recovery and Reinvestment <br />
         		<a id="pl.16.27"></a><var>16.27</var>Act of 2009, Public Law 111-5, $131,937,411 is appropriated to the commissioner of <br />
         		<a id="pl.16.28"></a><var>16.28</var>commerce. The funds must be administered consistent with the requirements in article 3, <br />
         		<a id="pl.16.29"></a><var>16.29</var>section 1.<br />
         		<br />
         		<a id="bill.6.2.0"></a><a id="pl.16.30"></a><var>16.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>ENERGY EFFICIENCY AND CONSERVATION BLOCK PROGRAM </b><br />
         		<a id="pl.16.31"></a><var>16.31</var><b>APPROPRIATION.</b><br />
         		<a id="pl.17.1"></a><var>17.1</var>Of the funds available to the state of Minnesota from the federal stimulus funding <br />
         		<a id="pl.17.2"></a><var>17.2</var>for the Energy Efficiency and Conservation Block Grant Program under the American <br />
         		<a id="pl.17.3"></a><var>17.3</var>Recovery and Reinvestment Act of 2009, Public Law 111-5, $10,644,100, is appropriated <br />
         		<a id="pl.17.4"></a><var>17.4</var>to the commissioner of commerce. The appropriation must be distributed as follows:<br />
         		<a id="pl.17.5"></a><var>17.5</var>(1) $6,546,121 is for energy efficiency grants to local government in article 5, <br />
         		<a id="pl.17.6"></a><var>17.6</var>section 3; and<br />
         		<a id="pl.17.7"></a><var>17.7</var>(2) $4,097,979, is for local government and school district buildings consistent <br />
         		<a id="pl.17.8"></a><var>17.8</var>with the requirements in article 3, section 2.<br />
         		<a id="pl.17.9"></a><var>17.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.6.3.0"></a><a id="pl.17.10"></a><var>17.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. <b>STATE ENERGY PROGRAM APPROPRIATION.</b><br />
         		<a id="pl.17.11"></a><var>17.11</var>Of the funds available to the state of Minnesota from the federal stimulus funding <br />
         		<a id="pl.17.12"></a><var>17.12</var>for the State Energy Program under the American Recovery and Reinvestment Act of <br />
         		<a id="pl.17.13"></a><var>17.13</var>2009, Public Law 111-5, $54,172,000 is appropriated to the commissioner of commerce. <br />
         		<a id="pl.17.14"></a><var>17.14</var>Of this amount:<br />
         		<a id="pl.17.15"></a><var>17.15</var>(1) $10,650,000 is for local government and school district buildings consistent <br />
         		<a id="pl.17.16"></a><var>17.16</var>with the requirements in article 3, section 2;<br />
         		<a id="pl.17.17"></a><var>17.17</var>(2) $8,000,000 is for state government buildings consistent with the requirements in <br />
         		<a id="pl.17.18"></a><var>17.18</var>article 3, section 3;<br />
         		<a id="pl.17.19"></a><var>17.19</var>(3) $12,000,000 is for the residential energy financing program in article 3, section 5;<br />
         		<a id="pl.17.20"></a><var>17.20</var>(4) $12,000,000 is for renewable energy programs, including, but not limited to, the <br />
         		<a id="pl.17.21"></a><var>17.21</var>programs specified in article 4;<br />
         		<a id="pl.17.22"></a><var>17.22</var>(6) $5,000,000 is for grants to commercial and industrial facilities for energy <br />
         		<a id="pl.17.23"></a><var>17.23</var>efficiency and renewable energy projects in article 5, section 1;<br />
         		<a id="pl.17.24"></a><var>17.24</var>(7) $5,022,000 is for energy education, training, and information and data systems in <br />
         		<a id="pl.17.25"></a><var>17.25</var>article 5, section 2; and<br />
         		<a id="pl.17.26"></a><var>17.26</var>(8) $1,500,000 is for a grant to the Board of Trustees of the Minnesota State Colleges <br />
         		<a id="pl.17.27"></a><var>17.27</var>and Universities for the International Renewable Energy Technology Institute (IRETI) to <br />
         		<a id="pl.17.28"></a><var>17.28</var>be located at Minnesota State University, Mankato, as a public and private partnership to <br />
         		<a id="pl.17.29"></a><var>17.29</var>support applied research in renewable energy and energy efficiency to aid in the transfer of <br />
         		<a id="pl.17.30"></a><var>17.30</var>technology from Sweden to Minnesota and to support technology commercialization from <br />
         		<a id="pl.17.31"></a><var>17.31</var>companies located in Minnesota and throughout the world.<br />
         		<a id="pl.17.32"></a><var>17.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.0.0"></a><div class="xtend_ce"><a id="pl.18.1"></a><var>18.1</var><b>ARTICLE 1</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.18.2"></a><var>18.2</var><b>DEPARTMENT OF COMMERCE; OTHER REGULATORY PROVISIONS</b><br />
            		
         </div><br />
         		<a id="bill.1.1.0"></a><a id="pl.18.3"></a><var>18.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2008, section 47.58, subdivision 1, is amended to read:<br />
         		<a id="pl.18.4"></a><var>18.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> For the purposes of this section, the terms defined in this <br />
         		<a id="pl.18.5"></a><var>18.5</var>subdivision have the meanings given them.<br />
         		<a id="pl.18.6"></a><var>18.6</var>(a) "Reverse mortgage loan" means a loan:<br />
         		<a id="pl.18.7"></a><var>18.7</var>(1) Made to a borrower wherein the committed principal amount is paid to the <br />
         		<a id="pl.18.8"></a><var>18.8</var>borrower in equal or unequal installments over a period of months or years, interest is <br />
         		<a id="pl.18.9"></a><var>18.9</var>assessed, and authorized closing costs are incurred as specified in the loan agreement;<br />
         		<a id="pl.18.10"></a><var>18.10</var>(2) Which is secured by a mortgage on residential property owned solely by the <br />
         		<a id="pl.18.11"></a><var>18.11</var>borrower; and<br />
         		<a id="pl.18.12"></a><var>18.12</var>(3) Which is due when the committed principal amount has been fully paid to the <br />
         		<a id="pl.18.13"></a><var>18.13</var>borrower, or upon sale of the property securing the loan, or upon the death of the last <br />
         		<a id="pl.18.14"></a><var>18.14</var>surviving borrower, or upon the borrower terminating use of the property as principal <br />
         		<a id="pl.18.15"></a><var>18.15</var>residence so as to disqualify the property from the homestead credit given in chapter 290A.<br />
         		<a id="pl.18.16"></a><var>18.16</var>(b) "Lender" means any bank subject to chapter 48, credit union subject to chapter <br />
         		<a id="pl.18.17"></a><var>18.17</var>52, savings bank organized and operated pursuant to chapter 50, savings association <br />
         		<a id="pl.18.18"></a><var>18.18</var>subject to chapter 51A, any residential mortgage originator subject to chapter 58, or any <br />
         		<a id="pl.18.19"></a><var>18.19</var>insurance company as defined in section 
         <statute_ref>60A.02, subdivision 4</statute_ref>. "Lender" also includes <br />
         		<a id="pl.18.20"></a><var>18.20</var>any federally chartered bank supervised by the comptroller of the currency or federally <br />
         		<a id="pl.18.21"></a><var>18.21</var>chartered savings association supervised by the Federal Home Loan Bank Board or <br />
         		<a id="pl.18.22"></a><var>18.22</var>federally chartered credit union supervised by the National Credit Union Administration, <br />
         		<a id="pl.18.23"></a><var>18.23</var>to the extent permitted by federal law.  <br />
         		<a id="pl.18.24"></a><var>18.24</var>(c) "Borrower" includes any natural person holding an interest in severalty or as joint <br />
         		<a id="pl.18.25"></a><var>18.25</var>tenant or tenant-in-common in the property securing a reverse mortgage loan.<br />
         		<a id="pl.18.26"></a><var>18.26</var>(d) "Outstanding loan balance" means the current net amount of money owed by the <br />
         		<a id="pl.18.27"></a><var>18.27</var>borrower to the lender whether or not that sum is suspended pursuant to the terms of the <br />
         		<a id="pl.18.28"></a><var>18.28</var>reverse mortgage loan agreement or is immediately due and payable. The outstanding <br />
         		<a id="pl.18.29"></a><var>18.29</var>loan balance is calculated by adding the current totals of the items described in clauses (1) <br />
         		<a id="pl.18.30"></a><var>18.30</var>to (5) and subtracting the current totals of the item described in clause (6):<br />
         		<a id="pl.18.31"></a><var>18.31</var>(1) The sum of all payments made by the lender which are necessary to clear the <br />
         		<a id="pl.18.32"></a><var>18.32</var>property securing the loan of any outstanding mortgage encumbrance or mechanics or <br />
         		<a id="pl.18.33"></a><var>18.33</var>material supplier's lien.<br />
         		<a id="pl.18.34"></a><var>18.34</var>(2) The total disbursements made by the lender to date pursuant to the loan <br />
         		<a id="pl.18.35"></a><var>18.35</var>agreement as formulated in accordance with subdivision 3.<br />
         		<a id="pl.19.1"></a><var>19.1</var>(3) All taxes, assessments, insurance premiums and other similar charges paid to <br />
         		<a id="pl.19.2"></a><var>19.2</var>date by the lender pursuant to subdivision 6, which charges were not reimbursed by the <br />
         		<a id="pl.19.3"></a><var>19.3</var>borrower within 60 days.<br />
         		<a id="pl.19.4"></a><var>19.4</var>(4) All actual closing costs which the borrower has deferred, if a deferral provision <br />
         		<a id="pl.19.5"></a><var>19.5</var>is contained in the loan agreement as authorized by subdivision 7.<br />
         		<a id="pl.19.6"></a><var>19.6</var>(5) The total accrued interest to date, as authorized by subdivision 5.<br />
         		<a id="pl.19.7"></a><var>19.7</var>(6) All payments made by the borrower pursuant to subdivision 4.<br />
         		<a id="pl.19.8"></a><var>19.8</var>(e) "Actual closing costs" mean reasonable charges or sums ordinarily paid at the <br />
         		<a id="pl.19.9"></a><var>19.9</var>time of closing for the following, whether or not retained by the lender:<br />
         		<a id="pl.19.10"></a><var>19.10</var>(1) Any insurance premiums on policies covering the mortgaged property including <br />
         		<a id="pl.19.11"></a><var>19.11</var>but not limited to premiums for title insurance, fire and extended coverage insurance, flood <br />
         		<a id="pl.19.12"></a><var>19.12</var>insurance, and private mortgage insurance.<br />
         		<a id="pl.19.13"></a><var>19.13</var>(2) Abstracting, title examination and search, and examination of public records <br />
         		<a id="pl.19.14"></a><var>19.14</var>related to the mortgaged property.<br />
         		<a id="pl.19.15"></a><var>19.15</var>(3) The preparation and recording of any or all documents required by law or custom <br />
         		<a id="pl.19.16"></a><var>19.16</var>for closing a reverse mortgage loan agreement.<br />
         		<a id="pl.19.17"></a><var>19.17</var>(4) Appraisal and survey of real property securing a reverse mortgage loan.<br />
         		<a id="pl.19.18"></a><var>19.18</var>(5) A single service charge, which service charge shall include any consideration, <br />
         		<a id="pl.19.19"></a><var>19.19</var>not otherwise specified in this section as an "actual closing cost," paid by the borrower to <br />
         		<a id="pl.19.20"></a><var>19.20</var>the lender for or in relation to the acquisition, making, refinancing or modification of a <br />
         		<a id="pl.19.21"></a><var>19.21</var>reverse mortgage loan, and shall also include any consideration received by the lender <br />
         		<a id="pl.19.22"></a><var>19.22</var>for making a commitment for a reverse mortgage loan, whether or not an actual loan <br />
         		<a id="pl.19.23"></a><var>19.23</var>follows the commitment. The service charge shall not exceed one percent of the bona fide <br />
         		<a id="pl.19.24"></a><var>19.24</var>committed principal amount of the reverse mortgage loan.<br />
         		<a id="pl.19.25"></a><var>19.25</var>(6) Charges and fees necessary for or related to the transfer of real property securing <br />
         		<a id="pl.19.26"></a><var>19.26</var>a reverse mortgage loan or the closing of a reverse mortgage loan agreement paid by the <br />
         		<a id="pl.19.27"></a><var>19.27</var>borrower and received by any party other than the lender.<br />
         		<br />
         		<a id="bill.1.2.0"></a><a id="pl.19.28"></a><var>19.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2008, section 47.60, subdivision 1, is amended to read:<br />
         		<a id="pl.19.29"></a><var>19.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> For purposes of this section, the terms defined have <br />
         		<a id="pl.19.30"></a><var>19.30</var>the meanings given them:<br />
         		<a id="pl.19.31"></a><var>19.31</var>(a) "Consumer small loan" is a loan transaction in which cash is advanced to a <br />
         		<a id="pl.19.32"></a><var>19.32</var>borrower for the borrower's own personal, family, or household purpose. A consumer <br />
         		<a id="pl.19.33"></a><var>19.33</var>small loan is a short-term, unsecured loan to be repaid in a single installment. The cash <br />
         		<a id="pl.19.34"></a><var>19.34</var>advance of a consumer small loan is equal to or less than $350. A consumer small loan <br />
         		<a id="pl.20.1"></a><var>20.1</var>includes an indebtedness evidenced by but not limited to a promissory note or agreement <br />
         		<a id="pl.20.2"></a><var>20.2</var>to defer the presentation of a personal check for a fee.<br />
         		<a id="pl.20.3"></a><var>20.3</var>(b) "Consumer small loan lender" is a financial institution as defined in section <br />
         		
         <statute_ref><a id="pl.20.4"></a><var>20.4</var>47.59
         </statute_ref> or a person business entity registered with the commissioner and engaged in the <br />
         		<a id="pl.20.5"></a><var>20.5</var>business of making consumer small loans. <br />
         		<br />
         		<a id="bill.1.3.0"></a><a id="pl.20.6"></a><var>20.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2008, section 47.60, subdivision 3, is amended to read:<br />
         		<a id="pl.20.7"></a><var>20.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Filing.</b> Before a person business entity other than a financial institution <br />
         		<a id="pl.20.8"></a><var>20.8</var>as defined by section 
         <statute_ref>47.59</statute_ref> engages in the business of making consumer small loans to <br />
         		<a id="pl.20.9"></a><var>20.9</var>Minnesota residents, the person business entity shall file with the commissioner as a <br />
         		<a id="pl.20.10"></a><var>20.10</var>consumer small loan lender. The filing must be on a form prescribed by the commissioner <br />
         		<a id="pl.20.11"></a><var>20.11</var>together with a fee of $250 for each place of business and contain the following <br />
         		<a id="pl.20.12"></a><var>20.12</var>information in addition to the information required by the commissioner: <br />
         		<a id="pl.20.13"></a><var>20.13</var>(1) evidence that the filer has available for the operation of the business at the <br />
         		<a id="pl.20.14"></a><var>20.14</var>location specified, liquid assets of at least $50,000; and<br />
         		<a id="pl.20.15"></a><var>20.15</var>(2) a biographical statement on the principal person responsible for the operation <br />
         		<a id="pl.20.16"></a><var>20.16</var>and management of the business to be certified.<br />
         		<a id="pl.20.17"></a><var>20.17</var>Revocation of the filing and the right to engage in the business of a consumer small <br />
         		<a id="pl.20.18"></a><var>20.18</var>loan lender is the same as in the case of a regulated lender license in section 
         <statute_ref>56.09</statute_ref>. <br />
         		<a id="pl.20.19"></a><var>20.19</var>For purposes of this subdivision, "business entity" includes one that does not have a <br />
         		<a id="pl.20.20"></a><var>20.20</var>physical location in Minnesota that makes a consumer small loan electronically via the <br />
         		<a id="pl.20.21"></a><var>20.21</var>Internet. <br />
         		<br />
         		<a id="bill.1.4.0"></a><a id="pl.20.22"></a><var>20.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2008, section 47.60, subdivision 6, is amended to read:<br />
         		<a id="pl.20.23"></a><var>20.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Penalties for violation.</b> A person business entity or the person's entity's <br />
         		<a id="pl.20.24"></a><var>20.24</var>members, officers, directors, agents, and employees who violate or participate in the <br />
         		<a id="pl.20.25"></a><var>20.25</var>violation of any of the provisions of this section may be liable in the same manner as in <br />
         		<a id="pl.20.26"></a><var>20.26</var>section 
         <statute_ref>56.19</statute_ref>. <br />
         		<br />
         		<a id="bill.1.5.0"></a><a id="pl.20.27"></a><var>20.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2008, section 48.21, is amended to read:<br />
         		<a id="pl.20.28"></a><var>20.28</var><b>48.21 REAL ESTATE; RESTRICTIONS ON HOLDING.</b><br />
         		<a id="pl.20.29"></a><var>20.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Specific restrictions.</b> (a) A bank may purchase, carry as an asset, <br />
         		<a id="pl.20.30"></a><var>20.30</var>and convey real estate only:<br />
         		<a id="pl.20.31"></a><var>20.31</var>(1) as provided for in section 
         <statute_ref>47.10</statute_ref>;  <br />
         		<a id="pl.20.32"></a><var>20.32</var>(2) if acquired through foreclosure of a mortgage given to it in good faith as security <br />
         		<a id="pl.20.33"></a><var>20.33</var>for loans made by or money due to it;<br />
         		<a id="pl.21.1"></a><var>21.1</var>(3) if conveyed to it in satisfaction of debts previously contracted in good faith in <br />
         		<a id="pl.21.2"></a><var>21.2</var>the course of its dealings;<br />
         		<a id="pl.21.3"></a><var>21.3</var>(4) if acquired by sale on execution or judgment of a court in its favor; or<br />
         		<a id="pl.21.4"></a><var>21.4</var>(5) if reasonably necessary to mitigate or avoid loss on a loan or investment <br />
         		<a id="pl.21.5"></a><var>21.5</var>theretofore made.<br />
         		<a id="pl.21.6"></a><var>21.6</var>(b) Real estate acquired under clauses (2) to (5) shall be carried as an asset only in <br />
         		<a id="pl.21.7"></a><var>21.7</var>accordance with rules the commissioner prescribes. The maximum period for holding <br />
         		<a id="pl.21.8"></a><var>21.8</var>other real estate as an asset shall be five years, provided that upon application to the <br />
         		<a id="pl.21.9"></a><var>21.9</var>commissioner, the commissioner may approve the possession of such real estate by a bank <br />
         		<a id="pl.21.10"></a><var>21.10</var>for a period longer than five years, but not to exceed an additional five years, if:<br />
         		<a id="pl.21.11"></a><var>21.11</var>(1) the bank has made a good faith attempt to dispose of the real estate within the <br />
         		<a id="pl.21.12"></a><var>21.12</var>initial five-year period; or<br />
         		<a id="pl.21.13"></a><var>21.13</var>(2) disposal within the initial five-year period would be detrimental to the bank.<br />
         		<a id="pl.21.14"></a><var>21.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Real estate holdings not bank liabilities.</b> Real estate owned by a bank <br />
         		<a id="pl.21.15"></a><var>21.15</var>as a result of actions authorized in clauses (2) to (5) of subdivision 1 and subsequently <br />
         		<a id="pl.21.16"></a><var>21.16</var>sold to any buyer on a contract for deed may not be considered creating a liability to a <br />
         		<a id="pl.21.17"></a><var>21.17</var>bank for purposes of section 
         <statute_ref>48.24</statute_ref>.  <br />
         		<a id="pl.21.18"></a><var>21.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Real estate holdings not sold; authority to write off.</b> Notwithstanding <br />
         		<a id="pl.21.19"></a><var>21.19</var>any rules of the commissioner to the contrary, if real estate owned by a bank pursuant to <br />
         		<a id="pl.21.20"></a><var>21.20</var>clauses (2) to (5) of subdivision 1 is not sold or otherwise disposed of within the maximum <br />
         		<a id="pl.21.21"></a><var>21.21</var>period established by rule by the commissioner, the bank may write off any remaining <br />
         		<a id="pl.21.22"></a><var>21.22</var>balance at a rate not less than one-fifth of that balance each subsequent calendar year.<br />
         		<br />
         		<a id="bill.1.6.0"></a><a id="pl.21.23"></a><var>21.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2008, section 58.05, subdivision 3, is amended to read:<br />
         		<a id="pl.21.24"></a><var>21.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Certificate of exemption.</b> A person must obtain a certificate of exemption <br />
         		<a id="pl.21.25"></a><var>21.25</var>from the commissioner to qualify as an exempt person under section 
         <statute_ref>58.04, subdivision 1</statute_ref>, <br />
         		<a id="pl.21.26"></a><var>21.26</var>paragraph (c), a financial institution under clause (2), or by order of the commissioner <br />
         		<a id="pl.21.27"></a><var>21.27</var>under clause (6); or under section 
         <statute_ref>58.04, subdivision 2</statute_ref>, paragraph (b), as a financial <br />
         		<a id="pl.21.28"></a><var>21.28</var>institution under clause (3) (4), or by order of the commissioner under clause (7) (8). <br />
         		<br />
         		<a id="bill.1.7.0"></a><a id="pl.21.29"></a><var>21.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2008, section 58.06, subdivision 2, is amended to read:<br />
         		<a id="pl.21.30"></a><var>21.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Application contents.</b> (a) The application must contain the name and <br />
         		<a id="pl.21.31"></a><var>21.31</var>complete business address or addresses of the license applicant. The license applicant <br />
         		<a id="pl.21.32"></a><var>21.32</var>must be a partnership, limited liability partnership, association, limited liability company, <br />
         		<a id="pl.21.33"></a><var>21.33</var>corporation, or other form of business organization, and the application must contain the <br />
         		<a id="pl.21.34"></a><var>21.34</var>names and complete business addresses of each partner, member, director, and principal <br />
         		<a id="pl.22.1"></a><var>22.1</var>officer. The application must also include a description of the activities of the license <br />
         		<a id="pl.22.2"></a><var>22.2</var>applicant, in the detail and for the periods the commissioner may require.<br />
         		<a id="pl.22.3"></a><var>22.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) An A residential mortgage originator applicant must submit one of the following:<br />
         		<a id="pl.22.4"></a><var>22.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) evidence which shows, to the commissioner's satisfaction, that either the federal <br />
         		<a id="pl.22.5"></a><var>22.5</var>Department of Housing and Urban Development or the Federal National Mortgage <br />
         		<a id="pl.22.6"></a><var>22.6</var>Association has approved the residential mortgage originator applicant as a mortgagee;<br />
         		<a id="pl.22.7"></a><var>22.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) a surety bond or irrevocable letter of credit in the amount of not less than <br />
         		<a id="pl.22.8"></a><var>22.8</var>$50,000 in a form approved by the commissioner, issued by an insurance company or bank <br />
         		<a id="pl.22.9"></a><var>22.9</var>authorized to do so in this state. The bond or irrevocable letter of credit must be available <br />
         		<a id="pl.22.10"></a><var>22.10</var>for the recovery of expenses, fines, and fees levied by the commissioner under this chapter <br />
         		<a id="pl.22.11"></a><var>22.11</var>and for losses incurred by borrowers. The bond or letter of credit must be submitted with <br />
         		<a id="pl.22.12"></a><var>22.12</var>the license application, and evidence of continued coverage must be submitted with each <br />
         		<a id="pl.22.13"></a><var>22.13</var>renewal. Any change in the bond or letter of credit must be submitted for approval by the <br />
         		<a id="pl.22.14"></a><var>22.14</var>commissioner within ten days of its execution; or<br />
         		<a id="pl.22.15"></a><var>22.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a copy of the residential mortgage originator applicant's most recent audited <br />
         		<a id="pl.22.16"></a><var>22.16</var>financial statement, including balance sheet, statement of income or loss, statements of <br />
         		<a id="pl.22.17"></a><var>22.17</var>changes in shareholder equity, and statement of changes in financial position. Financial <br />
         		<a id="pl.22.18"></a><var>22.18</var>statements must be as of a date within 12 months of the date of application.<br />
         		<a id="pl.22.19"></a><var>22.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The application must also include all of the following:<br />
         		<a id="pl.22.20"></a><var>22.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) an affirmation under oath that the applicant:<br />
         		<a id="pl.22.21"></a><var>22.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) is in compliance with the requirements of section 
         <statute_ref>58.125</statute_ref>;<br />
         		<a id="pl.22.22"></a><var>22.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) will maintain a perpetual roster of individuals employed as residential mortgage <br />
         		<a id="pl.22.23"></a><var>22.23</var>originators, including employees and independent contractors, which includes the date <br />
         		<a id="pl.22.24"></a><var>22.24</var>dates that mandatory testing, initial education was, and continuing education were <br />
         		<a id="pl.22.25"></a><var>22.25</var>completed. In addition, the roster must be made available to the commissioner on demand, <br />
         		<a id="pl.22.26"></a><var>22.26</var>within three business days of the commissioner's request;<br />
         		<a id="pl.22.27"></a><var>22.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) will advise the commissioner of any material changes to the information <br />
         		<a id="pl.22.28"></a><var>22.28</var>submitted in the most recent application within ten days of the change;<br />
         		<a id="pl.22.29"></a><var>22.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) will advise the commissioner in writing immediately of any bankruptcy petitions <br />
         		<a id="pl.22.30"></a><var>22.30</var>filed against or by the applicant or licensee;<br />
         		<a id="pl.22.31"></a><var>22.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(v) will maintain at all times either a net worth, net of intangibles, of at least <br />
         		<a id="pl.22.32"></a><var>22.32</var>$250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000;<br />
         		<a id="pl.22.33"></a><var>22.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(vi) complies with federal and state tax laws; and<br />
         		<a id="pl.22.34"></a><var>22.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(vii) complies with sections 
         <statute_ref>345.31</statute_ref> to 
         <statute_ref>345.60</statute_ref>, the Minnesota unclaimed property <br />
         		<a id="pl.22.35"></a><var>22.35</var>law;  <br />
         		<a id="pl.23.1"></a><var>23.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) information as to the mortgage lending, servicing, or brokering experience of the <br />
         		<a id="pl.23.2"></a><var>23.2</var>applicant and persons in control of the applicant;<br />
         		<a id="pl.23.3"></a><var>23.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) information as to criminal convictions, excluding traffic violations, of persons in <br />
         		<a id="pl.23.4"></a><var>23.4</var>control of the license applicant;<br />
         		<a id="pl.23.5"></a><var>23.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) whether a court of competent jurisdiction has found that the applicant or persons <br />
         		<a id="pl.23.6"></a><var>23.6</var>in control of the applicant have engaged in conduct evidencing gross negligence, fraud, <br />
         		<a id="pl.23.7"></a><var>23.7</var>misrepresentation, or deceit in performing an act for which a license is required under <br />
         		<a id="pl.23.8"></a><var>23.8</var>this chapter;<br />
         		<a id="pl.23.9"></a><var>23.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) whether the applicant or persons in control of the applicant have been the subject <br />
         		<a id="pl.23.10"></a><var>23.10</var>of: an order of suspension or revocation, cease and desist order, or injunctive order, or <br />
         		<a id="pl.23.11"></a><var>23.11</var>order barring involvement in an industry or profession issued by this or another state or <br />
         		<a id="pl.23.12"></a><var>23.12</var>federal regulatory agency or by the Secretary of Housing and Urban Development within <br />
         		<a id="pl.23.13"></a><var>23.13</var>the ten-year period immediately preceding submission of the application; and<br />
         		<a id="pl.23.14"></a><var>23.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) other information required by the commissioner.<br />
         		<br />
         		<a id="bill.1.8.0"></a><a id="pl.23.15"></a><var>23.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2008, section 58.126, is amended to read:<br />
         		<a id="pl.23.16"></a><var>23.16</var><b>58.126 EDUCATION </b><b>AND TESTING </b><b>REQUIREMENT.</b><br />
         		<a id="pl.23.17"></a><var>23.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) No individual shall engage in residential mortgage origination or make residential <br />
         		<a id="pl.23.18"></a><var>23.18</var>mortgage loans, whether as an employee or independent contractor, before the completion <br />
         		<a id="pl.23.19"></a><var>23.19</var>of 15 20 hours of educational training which has been approved by the commissioner, and <br />
         		<a id="pl.23.20"></a><var>23.20</var>covering state and federal laws concerning residential mortgage lending.<br />
         		<a id="pl.23.21"></a><var>23.21</var>(b) In addition to the initial education requirements in paragraph (a), each individual <br />
         		<a id="pl.23.22"></a><var>23.22</var>must also complete eight hours of continuing education annually. The education must <br />
         		<a id="pl.23.23"></a><var>23.23</var>include:<br />
         		<a id="pl.23.24"></a><var>23.24</var>(1) three hours of federal law and regulations;<br />
         		<a id="pl.23.25"></a><var>23.25</var>(2) two hours of ethics, which must include fraud, consumer protection, and fair <br />
         		<a id="pl.23.26"></a><var>23.26</var>lending; and <br />
         		<a id="pl.23.27"></a><var>23.27</var>(3) two hours of standards governing nontraditional mortgage lending.<br />
         		<a id="pl.23.28"></a><var>23.28</var>(c) The commissioner may by rule establish testing requirements for individuals <br />
         		<a id="pl.23.29"></a><var>23.29</var>subject to the requirements of paragraphs (a) and (b). An individual must satisfy the <br />
         		<a id="pl.23.30"></a><var>23.30</var>testing requirements established by the commissioner before engaging in residential <br />
         		<a id="pl.23.31"></a><var>23.31</var>mortgage loan origination or making residential mortgage loans.<br />
         		<a id="pl.23.32"></a><var>23.32</var><b>EFFECTIVE DATE.</b>This section is effective September 1, 2009, and applies to <br />
         		<a id="pl.23.33"></a><var>23.33</var>license applications and renewals made on or after that date.<br />
         		<br />
         		<a id="bill.1.9.0"></a><a id="pl.24.1"></a><var>24.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2008, section 58.13, subdivision 1, is amended to read:<br />
         		<a id="pl.24.2"></a><var>24.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1.  <b>Generally.</b> (a) No person acting as a residential mortgage originator <br />
         		<a id="pl.24.3"></a><var>24.3</var>or servicer, including a person required to be licensed under this chapter, and no person <br />
         		<a id="pl.24.4"></a><var>24.4</var>exempt from the licensing requirements of this chapter under section 
         <statute_ref>58.04</statute_ref>, except as <br />
         		<a id="pl.24.5"></a><var>24.5</var>otherwise provided in paragraph (b), shall: <br />
         		<a id="pl.24.6"></a><var>24.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) fail to maintain a trust account to hold trust funds received in connection with a <br />
         		<a id="pl.24.7"></a><var>24.7</var>residential mortgage loan; <br />
         		<a id="pl.24.8"></a><var>24.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) fail to deposit all trust funds into a trust account within three business days of <br />
         		<a id="pl.24.9"></a><var>24.9</var>receipt; commingle trust funds with funds belonging to the licensee or exempt person; or <br />
         		<a id="pl.24.10"></a><var>24.10</var>use trust account funds for any purpose other than that for which they are received; <br />
         		<a id="pl.24.11"></a><var>24.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) unreasonably delay the processing of a residential mortgage loan application, <br />
         		<a id="pl.24.12"></a><var>24.12</var>or the closing of a residential mortgage loan. For purposes of this clause, evidence of <br />
         		<a id="pl.24.13"></a><var>24.13</var>unreasonable delay includes but is not limited to those factors identified in section 
         <statute_ref>47.206, <br />
            		<a id="pl.24.14"></a><var>24.14</var>subdivision 7
         </statute_ref>, clause (d); <br />
         		<a id="pl.24.15"></a><var>24.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) fail to disburse funds according to its contractual or statutory obligations; <br />
         		<a id="pl.24.16"></a><var>24.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) fail to perform in conformance with its written agreements with borrowers, <br />
         		<a id="pl.24.17"></a><var>24.17</var>investors, other licensees, or exempt persons; <br />
         		<a id="pl.24.18"></a><var>24.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) charge a fee for a product or service where the product or service is not actually <br />
         		<a id="pl.24.19"></a><var>24.19</var>provided, or misrepresent the amount charged by or paid to a third party for a product <br />
         		<a id="pl.24.20"></a><var>24.20</var>or service; <br />
         		<a id="pl.24.21"></a><var>24.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) fail to comply with sections 
         <statute_ref>345.31</statute_ref> to 
         <statute_ref>345.60</statute_ref>, the Minnesota unclaimed property <br />
         		<a id="pl.24.22"></a><var>24.22</var>law; <br />
         		<a id="pl.24.23"></a><var>24.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) violate any provision of any other applicable state or federal law regulating <br />
         		<a id="pl.24.24"></a><var>24.24</var>residential mortgage loans including, without limitation, sections 
         <statute_ref>47.20</statute_ref> to 
         <statute_ref>47.208</statute_ref>, and <br />
         		<a id="pl.24.25"></a><var>24.25</var>47.58; <br />
         		<a id="pl.24.26"></a><var>24.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) make or cause to be made, directly or indirectly, any false, deceptive, or <br />
         		<a id="pl.24.27"></a><var>24.27</var>misleading statement or representation in connection with a residential loan transaction <br />
         		<a id="pl.24.28"></a><var>24.28</var>including, without limitation, a false, deceptive, or misleading statement or representation <br />
         		<a id="pl.24.29"></a><var>24.29</var>regarding the borrower's ability to qualify for any mortgage product; <br />
         		<a id="pl.24.30"></a><var>24.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) conduct residential mortgage loan business under any name other than that <br />
         		<a id="pl.24.31"></a><var>24.31</var>under which the license or certificate of exemption was issued; <br />
         		<a id="pl.24.32"></a><var>24.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for <br />
         		<a id="pl.24.33"></a><var>24.33</var>the purpose of influencing the independent judgment of the appraiser with respect to the <br />
         		<a id="pl.24.34"></a><var>24.34</var>value of real estate that is to be covered by a residential mortgage or is being offered as <br />
         		<a id="pl.24.35"></a><var>24.35</var>security according to an application for a residential mortgage loan; <br />
         		<a id="pl.25.1"></a><var>25.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) issue any document indicating conditional qualification or conditional approval <br />
         		<a id="pl.25.2"></a><var>25.2</var>for a residential mortgage loan, unless the document also clearly indicates that final <br />
         		<a id="pl.25.3"></a><var>25.3</var>qualification or approval is not guaranteed, and may be subject to additional review; <br />
         		<a id="pl.25.4"></a><var>25.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(13) make or assist in making any residential mortgage loan with the intent that the <br />
         		<a id="pl.25.5"></a><var>25.5</var>loan will not be repaid and that the residential mortgage originator will obtain title to <br />
         		<a id="pl.25.6"></a><var>25.6</var>the property through foreclosure; <br />
         		<a id="pl.25.7"></a><var>25.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(14) provide or offer to provide for a borrower, any brokering or lending services <br />
         		<a id="pl.25.8"></a><var>25.8</var>under an arrangement with a person other than a licensee or exempt person, provided that <br />
         		<a id="pl.25.9"></a><var>25.9</var>a person may rely upon a written representation by the residential mortgage originator that <br />
         		<a id="pl.25.10"></a><var>25.10</var>it is in compliance with the licensing requirements of this chapter; <br />
         		<a id="pl.25.11"></a><var>25.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(15) claim to represent a licensee or exempt person, unless the person is an employee <br />
         		<a id="pl.25.12"></a><var>25.12</var>of the licensee or exempt person or unless the person has entered into a written agency <br />
         		<a id="pl.25.13"></a><var>25.13</var>agreement with the licensee or exempt person; <br />
         		<a id="pl.25.14"></a><var>25.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(16) fail to comply with the record keeping and notification requirements identified <br />
         		<a id="pl.25.15"></a><var>25.15</var>in section 
         <statute_ref>58.14</statute_ref> or fail to abide by the affirmations made on the application for licensure; <br />
         		<a id="pl.25.16"></a><var>25.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(17) represent that the licensee or exempt person is acting as the borrower's agent <br />
         		<a id="pl.25.17"></a><var>25.17</var>after providing the nonagency disclosure required by section 
         <statute_ref>58.15</statute_ref>, unless the disclosure <br />
         		<a id="pl.25.18"></a><var>25.18</var>is retracted and the licensee or exempt person complies with all of the requirements of <br />
         		<a id="pl.25.19"></a><var>25.19</var>section 
         <statute_ref>58.16</statute_ref>; <br />
         		<a id="pl.25.20"></a><var>25.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(18) make, provide, or arrange for a residential mortgage loan that is of a lower <br />
         		<a id="pl.25.21"></a><var>25.21</var>investment grade if the borrower's credit score or, if the originator does not utilize credit <br />
         		<a id="pl.25.22"></a><var>25.22</var>scoring or if a credit score is unavailable, then comparable underwriting data, indicates <br />
         		<a id="pl.25.23"></a><var>25.23</var>that the borrower may qualify for a residential mortgage loan, available from or through <br />
         		<a id="pl.25.24"></a><var>25.24</var>the originator, that is of a higher investment grade, unless the borrower is informed that <br />
         		<a id="pl.25.25"></a><var>25.25</var>the borrower may qualify for a higher investment grade loan with a lower interest rate <br />
         		<a id="pl.25.26"></a><var>25.26</var>and/or lower discount points, and consents in writing to receipt of the lower investment <br />
         		<a id="pl.25.27"></a><var>25.27</var>grade loan; <br />
         		<a id="pl.25.28"></a><var>25.28</var>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this section, "investment grade" refers to a system of categorizing <br />
         		<a id="pl.25.29"></a><var>25.29</var>residential mortgage loans in which the loans are: (i) commonly referred to as "prime" or <br />
         		<a id="pl.25.30"></a><var>25.30</var>"subprime"; (ii) commonly designated by an alphabetical character with "A" being the <br />
         		<a id="pl.25.31"></a><var>25.31</var>highest investment grade; and (iii) are distinguished by interest rate or discount points <br />
         		<a id="pl.25.32"></a><var>25.32</var>or both charged to the borrower, which vary according to the degree of perceived risk <br />
         		<a id="pl.25.33"></a><var>25.33</var>of default based on factors such as the borrower's credit, including credit score and <br />
         		<a id="pl.25.34"></a><var>25.34</var>credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior <br />
         		<a id="pl.25.35"></a><var>25.35</var>bankruptcy or foreclosure; <br />
         		<a id="pl.26.1"></a><var>26.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(19) make, publish, disseminate, circulate, place before the public, or cause to be <br />
         		<a id="pl.26.2"></a><var>26.2</var>made, directly or indirectly, any advertisement or marketing materials of any type, or any <br />
         		<a id="pl.26.3"></a><var>26.3</var>statement or representation relating to the business of residential mortgage loans that is <br />
         		<a id="pl.26.4"></a><var>26.4</var>false, deceptive, or misleading; <br />
         		<a id="pl.26.5"></a><var>26.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(20) advertise loan types or terms that are not available from or through the licensee <br />
         		<a id="pl.26.6"></a><var>26.6</var>or exempt person on the date advertised, or on the date specified in the advertisement. <br />
         		<a id="pl.26.7"></a><var>26.7</var>For purposes of this clause, advertisement includes, but is not limited to, a list of sample <br />
         		<a id="pl.26.8"></a><var>26.8</var>mortgage terms, including interest rates, discount points, and closing costs provided by <br />
         		<a id="pl.26.9"></a><var>26.9</var>licensees or exempt persons to a print or electronic medium that presents the information <br />
         		<a id="pl.26.10"></a><var>26.10</var>to the public; <br />
         		<a id="pl.26.11"></a><var>26.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(21) use or employ phrases, pictures, return addresses, geographic designations, or <br />
         		<a id="pl.26.12"></a><var>26.12</var>other means that create the impression, directly or indirectly, that a licensee or other <br />
         		<a id="pl.26.13"></a><var>26.13</var>person is a governmental agency, or is associated with, sponsored by, or in any manner <br />
         		<a id="pl.26.14"></a><var>26.14</var>connected to, related to, or endorsed by a governmental agency, if that is not the case; <br />
         		<a id="pl.26.15"></a><var>26.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(22) violate section 
         <statute_ref>82.49</statute_ref>, relating to table funding; <br />
         		<a id="pl.26.16"></a><var>26.16</var>(23) make, provide, or arrange for a residential mortgage loan all or a portion <br />
         		<a id="pl.26.17"></a><var>26.17</var>of the proceeds of which are used to fully or partially pay off a "special mortgage" <br />
         		<a id="pl.26.18"></a><var>26.18</var>unless the borrower has obtained a written certification from an authorized independent <br />
         		<a id="pl.26.19"></a><var>26.19</var>loan counselor that the borrower has received counseling on the advisability of the <br />
         		<a id="pl.26.20"></a><var>26.20</var>loan transaction. For purposes of this section, "special mortgage" means a residential <br />
         		<a id="pl.26.21"></a><var>26.21</var>mortgage loan originated, subsidized, or guaranteed by or through a state, tribal, or <br />
         		<a id="pl.26.22"></a><var>26.22</var>local government, or nonprofit organization, that bears one or more of the following <br />
         		<a id="pl.26.23"></a><var>26.23</var>nonstandard payment terms which substantially benefit the borrower: (i) payments vary <br />
         		<a id="pl.26.24"></a><var>26.24</var>with income; (ii) payments of principal or interest are not required or can be deferred under <br />
         		<a id="pl.26.25"></a><var>26.25</var>specified conditions; (iii) principal or interest is forgivable under specified conditions; <br />
         		<a id="pl.26.26"></a><var>26.26</var>or (iv) where no interest or an annual interest rate of two percent or less is charged in <br />
         		<a id="pl.26.27"></a><var>26.27</var>connection with the loan. For purposes of this section, "authorized independent loan <br />
         		<a id="pl.26.28"></a><var>26.28</var>counselor" means a nonprofit, third-party individual or organization providing homebuyer <br />
         		<a id="pl.26.29"></a><var>26.29</var>education programs, foreclosure prevention services, mortgage loan counseling, or credit <br />
         		<a id="pl.26.30"></a><var>26.30</var>counseling certified by the United States Department of Housing and Urban Development, <br />
         		<a id="pl.26.31"></a><var>26.31</var>the Minnesota Home Ownership Center, the Minnesota Mortgage Foreclosure Prevention <br />
         		<a id="pl.26.32"></a><var>26.32</var>Association, AARP, or NeighborWorks America; <br />
         		<a id="pl.26.33"></a><var>26.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(24) make, provide, or arrange for a residential mortgage loan without verifying <br />
         		<a id="pl.26.34"></a><var>26.34</var>the borrower's reasonable ability to pay the scheduled payments of the following, as <br />
         		<a id="pl.26.35"></a><var>26.35</var>applicable: principal; interest; real estate taxes; homeowner's insurance, assessments, <br />
         		<a id="pl.26.36"></a><var>26.36</var>and mortgage insurance premiums. For loans in which the interest rate may vary, the <br />
         		<a id="pl.27.1"></a><var>27.1</var>reasonable ability to pay shall be determined based on a fully indexed rate and a repayment <br />
         		<a id="pl.27.2"></a><var>27.2</var>schedule which achieves full amortization over the life of the loan. For all residential <br />
         		<a id="pl.27.3"></a><var>27.3</var>mortgage loans, the borrower's income and financial resources must be verified by tax <br />
         		<a id="pl.27.4"></a><var>27.4</var>returns, payroll receipts, bank records, or other similarly reliable documents. <br />
         		<a id="pl.27.5"></a><var>27.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Nothing in this section shall be construed to limit a mortgage originator's or exempt <br />
         		<a id="pl.27.6"></a><var>27.6</var>person's ability to rely on criteria other than the borrower's income and financial resources <br />
         		<a id="pl.27.7"></a><var>27.7</var>to establish the borrower's reasonable ability to repay the residential mortgage loan, <br />
         		<a id="pl.27.8"></a><var>27.8</var>including criteria established by the United States Department of Veterans Affairs or the <br />
         		<a id="pl.27.9"></a><var>27.9</var>United States Department of Housing and Urban Development for interest rate reduction <br />
         		<a id="pl.27.10"></a><var>27.10</var>refinancing loans or streamline loans, or criteria authorized or promulgated by the <br />
         		<a id="pl.27.11"></a><var>27.11</var>Federal National Mortgage Association or Federal Home Loan Mortgage Corporation; <br />
         		<a id="pl.27.12"></a><var>27.12</var>however, such other criteria must be verified through reasonably reliable methods and <br />
         		<a id="pl.27.13"></a><var>27.13</var>documentation. The mortgage originator's analysis of the borrower's reasonable ability <br />
         		<a id="pl.27.14"></a><var>27.14</var>to repay may include, but is not limited to, consideration of the following items, if <br />
         		<a id="pl.27.15"></a><var>27.15</var>verified: (1) the borrower's current and expected income; (2) current and expected cash <br />
         		<a id="pl.27.16"></a><var>27.16</var>flow; (3) net worth and other financial resources other than the consumer's equity in the <br />
         		<a id="pl.27.17"></a><var>27.17</var>dwelling that secures the loan; (4) current financial obligations; (5) property taxes and <br />
         		<a id="pl.27.18"></a><var>27.18</var>insurance; (6) assessments on the property; (7) employment status; (8) credit history; (9) <br />
         		<a id="pl.27.19"></a><var>27.19</var>debt-to-income ratio; (10) credit scores; (11) tax returns; (12) pension statements; and <br />
         		<a id="pl.27.20"></a><var>27.20</var>(13) employment payment records, provided that no mortgage originator shall disregard <br />
         		<a id="pl.27.21"></a><var>27.21</var>facts and circumstances that indicate that the financial or other information submitted by <br />
         		<a id="pl.27.22"></a><var>27.22</var>the consumer is inaccurate or incomplete. A statement by the borrower to the residential <br />
         		<a id="pl.27.23"></a><var>27.23</var>mortgage originator or exempt person of the borrower's income and resources or sole <br />
         		<a id="pl.27.24"></a><var>27.24</var>reliance on any single item listed above is not sufficient to establish the existence of the <br />
         		<a id="pl.27.25"></a><var>27.25</var>income or resources when verifying the reasonable ability to pay. <br />
         		<a id="pl.27.26"></a><var>27.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(25) engage in "churning." As used in this section, "churning" means knowingly or <br />
         		<a id="pl.27.27"></a><var>27.27</var>intentionally making, providing, or arranging for a residential mortgage loan when the <br />
         		<a id="pl.27.28"></a><var>27.28</var>new residential mortgage loan does not provide a reasonable, tangible net benefit to the <br />
         		<a id="pl.27.29"></a><var>27.29</var>borrower considering all of the circumstances including the terms of both the new and <br />
         		<a id="pl.27.30"></a><var>27.30</var>refinanced loans, the cost of the new loan, and the borrower's circumstances; <br />
         		<a id="pl.27.31"></a><var>27.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(26) the first time a residential mortgage originator orally informs a borrower of the <br />
         		<a id="pl.27.32"></a><var>27.32</var>anticipated or actual periodic payment amount for a first-lien residential mortgage loan <br />
         		<a id="pl.27.33"></a><var>27.33</var>which does not include an amount for payment of property taxes and hazard insurance, <br />
         		<a id="pl.27.34"></a><var>27.34</var>the residential mortgage originator must inform the borrower that an additional amount <br />
         		<a id="pl.27.35"></a><var>27.35</var>will be due for taxes and insurance and, if known, disclose to the borrower the amount of <br />
         		<a id="pl.27.36"></a><var>27.36</var>the anticipated or actual periodic payments for property taxes and hazard insurance. This <br />
         		<a id="pl.28.1"></a><var>28.1</var>same oral disclosure must be made each time the residential mortgage originator orally <br />
         		<a id="pl.28.2"></a><var>28.2</var>informs the borrower of a different anticipated or actual periodic payment amount change <br />
         		<a id="pl.28.3"></a><var>28.3</var>from the amount previously disclosed. A residential mortgage originator need not make <br />
         		<a id="pl.28.4"></a><var>28.4</var>this disclosure concerning a refinancing loan if the residential mortgage originator knows <br />
         		<a id="pl.28.5"></a><var>28.5</var>that the borrower's existing loan that is anticipated to be refinanced does not have an <br />
         		<a id="pl.28.6"></a><var>28.6</var>escrow account; or <br />
         		<a id="pl.28.7"></a><var>28.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(27) make, provide, or arrange for a residential mortgage loan, other than a reverse <br />
         		<a id="pl.28.8"></a><var>28.8</var>mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance <br />
         		<a id="pl.28.9"></a><var>28.9</var>with any repayment option offered pursuant to the terms of the loan will result in negative <br />
         		<a id="pl.28.10"></a><var>28.10</var>amortization during any six-month period. <br />
         		<a id="pl.28.11"></a><var>28.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Paragraph (a), clauses (24) through (27), do not apply to a state or federally <br />
         		<a id="pl.28.12"></a><var>28.12</var>chartered bank, savings bank, or credit union, an institution chartered by Congress under <br />
         		<a id="pl.28.13"></a><var>28.13</var>the Farm Credit Act, or to a person making, providing, or arranging a residential mortgage <br />
         		<a id="pl.28.14"></a><var>28.14</var>loan originated or purchased by a state agency or a tribal or local unit of government. This <br />
         		<a id="pl.28.15"></a><var>28.15</var>paragraph supersedes any inconsistent provision of this chapter. <br />
         		<br />
         		<a id="bill.1.10.0"></a><a id="pl.28.16"></a><var>28.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2008, section 60A.124, is amended to read:<br />
         		<a id="pl.28.17"></a><var>28.17</var><b>60A.124 INDEPENDENT AUDIT.</b><br />
         		<a id="pl.28.18"></a><var>28.18</var>The audit report of the independent certified public accountant that performs the <br />
         		<a id="pl.28.19"></a><var>28.19</var>audit of an insurer's annual statement as required under section 
         <statute_ref>60A.129 60A.1291, <br />
            		<a id="pl.28.20"></a><var>28.20</var>subdivision 3 2
         </statute_ref>, paragraph (a), should contain a statement as to whether anything, in <br />
         		<a id="pl.28.21"></a><var>28.21</var>connection with their audit, came to their attention that caused them to believe that the <br />
         		<a id="pl.28.22"></a><var>28.22</var>insurer failed to adopt and consistently apply the valuation procedure as required by <br />
         		<a id="pl.28.23"></a><var>28.23</var>sections 
         <statute_ref>60A.122</statute_ref> and 
         <statute_ref>60A.123</statute_ref>.  <br />
         		<br />
         		<a id="bill.1.11.0"></a><a id="pl.28.24"></a><var>28.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. <b>[60A.1291] ANNUAL AUDIT.</b><br />
         		<a id="pl.28.25"></a><var>28.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> The definitions in this subdivision apply to this section.<br />
         		<a id="pl.28.26"></a><var>28.26</var>(a) "Accountant" and "independent public accountant" mean an independent certified <br />
         		<a id="pl.28.27"></a><var>28.27</var>public accountant or accounting firm in good standing with the American Institute of <br />
         		<a id="pl.28.28"></a><var>28.28</var>Certified Public Accountants and in all states in which the accountant or firm is licensed <br />
         		<a id="pl.28.29"></a><var>28.29</var>or is required to be licensed to practice. For Canadian and British companies, the term <br />
         		<a id="pl.28.30"></a><var>28.30</var>means a Canadian-chartered or British-chartered accountant.<br />
         		<a id="pl.28.31"></a><var>28.31</var>(b) "Audit committee" means a committee or equivalent body established by the <br />
         		<a id="pl.28.32"></a><var>28.32</var>board of directors of an entity for the purpose of overseeing the accounting and financial <br />
         		<a id="pl.28.33"></a><var>28.33</var>reporting processes of an insurer or group of insurers, and audits of financial statements of <br />
         		<a id="pl.28.34"></a><var>28.34</var>the insurer or group of insurers. The audit committee of any entity that controls a group of <br />
         		<a id="pl.29.1"></a><var>29.1</var>insurers may be deemed to be the audit committee for one or more of these controlled <br />
         		<a id="pl.29.2"></a><var>29.2</var>insurers solely for the purposes of this section at the election of the controlling person <br />
         		<a id="pl.29.3"></a><var>29.3</var>under subdivision 15, paragraph (e). If an audit committee is not designated by the insurer, <br />
         		<a id="pl.29.4"></a><var>29.4</var>the insurer's entire board of directors constitutes the audit committee.<br />
         		<a id="pl.29.5"></a><var>29.5</var>(c) "Indemnification" means an agreement of indemnity or a release from liability <br />
         		<a id="pl.29.6"></a><var>29.6</var>where the intent or effect is to shift or limit in any manner the potential liability of the <br />
         		<a id="pl.29.7"></a><var>29.7</var>person or firm for failure to adhere to applicable auditing or professional standards, <br />
         		<a id="pl.29.8"></a><var>29.8</var>whether or not resulting in part from knowing of other misrepresentations made by the <br />
         		<a id="pl.29.9"></a><var>29.9</var>insurer or its representatives.<br />
         		<a id="pl.29.10"></a><var>29.10</var>(d) "Independent board member" has the same meaning as described in subdivision <br />
         		<a id="pl.29.11"></a><var>29.11</var>15, paragraph (c).<br />
         		<a id="pl.29.12"></a><var>29.12</var>(e) "Internal control over financial reporting" means a process effected by an entity's <br />
         		<a id="pl.29.13"></a><var>29.13</var>board of directors, management and other personnel designed to provide reasonable <br />
         		<a id="pl.29.14"></a><var>29.14</var>assurance regarding the reliability of the financial statements, for example, those items <br />
         		<a id="pl.29.15"></a><var>29.15</var>specified in subdivision 4, paragraphs (a), clauses (2) to (6), (b), and (c), and includes <br />
         		<a id="pl.29.16"></a><var>29.16</var>those policies and procedures that:<br />
         		<a id="pl.29.17"></a><var>29.17</var>(1) pertain to the maintenance of records that, in reasonable detail, accurately and <br />
         		<a id="pl.29.18"></a><var>29.18</var>fairly reflect the transactions and dispositions of assets;<br />
         		<a id="pl.29.19"></a><var>29.19</var>(2) provide reasonable assurance that transactions are recorded as necessary to permit <br />
         		<a id="pl.29.20"></a><var>29.20</var>preparation of the financial statements, for example, those items specified in subdivision 4, <br />
         		<a id="pl.29.21"></a><var>29.21</var>paragraphs (a), clauses (2) to (6), (b), and (c), and that receipts and expenditures are being <br />
         		<a id="pl.29.22"></a><var>29.22</var>made only in accordance with authorizations of management and directors; and<br />
         		<a id="pl.29.23"></a><var>29.23</var>(3) provide reasonable assurance regarding prevention or timely detection of <br />
         		<a id="pl.29.24"></a><var>29.24</var>unauthorized acquisition, use or disposition of assets that could have a material effect on <br />
         		<a id="pl.29.25"></a><var>29.25</var>the financial statements, for example, those items specified in subdivision 4, paragraphs <br />
         		<a id="pl.29.26"></a><var>29.26</var>(a), clauses (2) to (6), (b), and (c).<br />
         		<a id="pl.29.27"></a><var>29.27</var>(f) "SEC" means the United States Securities and Exchange Commission.<br />
         		<a id="pl.29.28"></a><var>29.28</var>(g) "Section 404" means Section 404 of the Sarbanes-Oxley Act of 2002 and the <br />
         		<a id="pl.29.29"></a><var>29.29</var>SEC's rules and regulations promulgated under it.<br />
         		<a id="pl.29.30"></a><var>29.30</var>(h) "Section 404 report" means management's report on "internal control over <br />
         		<a id="pl.29.31"></a><var>29.31</var>financial reporting" as defined by the SEC and the related attestation report of the <br />
         		<a id="pl.29.32"></a><var>29.32</var>independent certified public accountant as described in paragraph (a).<br />
         		<a id="pl.29.33"></a><var>29.33</var>(i) "SOX compliant entity" means an entity that either is required to be <br />
         		<a id="pl.29.34"></a><var>29.34</var>compliant with, or voluntarily is compliant with, all of the following provisions of the <br />
         		<a id="pl.29.35"></a><var>29.35</var>Sarbanes-Oxley Act of 2002: (i) the preapproval requirements of Section 201 (section <br />
         		<a id="pl.29.36"></a><var>29.36</var>10A(i) of the Securities Exchange Act of 1934); (ii) the audit committee independence <br />
         		<a id="pl.30.1"></a><var>30.1</var>requirements of Section 301 (section 10A(m)(3) of the Securities Exchange Act of 1934); <br />
         		<a id="pl.30.2"></a><var>30.2</var>and (iii) the internal control over financial reporting requirements of Section 404 (Item <br />
         		<a id="pl.30.3"></a><var>30.3</var>308 of SEC Regulation S-K).<br />
         		<a id="pl.30.4"></a><var>30.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Filing requirements.</b> Every insurance company doing business in this <br />
         		<a id="pl.30.5"></a><var>30.5</var>state, including fraternal benefit societies, reciprocal exchanges, service plan corporations <br />
         		<a id="pl.30.6"></a><var>30.6</var>licensed pursuant to chapter 62C, and legal service plans licensed pursuant to chapter <br />
         		<a id="pl.30.7"></a><var>30.7</var>62G, unless exempted by the commissioner pursuant to subdivision 9, paragraph (a), or by <br />
         		<a id="pl.30.8"></a><var>30.8</var>subdivision 18, shall have an annual audit of the financial activities of the most recently <br />
         		<a id="pl.30.9"></a><var>30.9</var>completed calendar year performed by an independent certified public accountant, and <br />
         		<a id="pl.30.10"></a><var>30.10</var>shall file the report of this audit with the commissioner on or before June 1 for the <br />
         		<a id="pl.30.11"></a><var>30.11</var>immediately preceding year ending December 31. The commissioner may require an <br />
         		<a id="pl.30.12"></a><var>30.12</var>insurer to file an audited financial report earlier than June 1 with 90 days' advance notice <br />
         		<a id="pl.30.13"></a><var>30.13</var>to the insurer.<br />
         		<a id="pl.30.14"></a><var>30.14</var>Extensions of the June 1 filing date may be granted by the commissioner for 30-day <br />
         		<a id="pl.30.15"></a><var>30.15</var>periods upon a showing by the insurer and its independent certified public accountant of <br />
         		<a id="pl.30.16"></a><var>30.16</var>the reasons for requesting the extension and a determination by the commissioner of good <br />
         		<a id="pl.30.17"></a><var>30.17</var>cause for the extension.<br />
         		<a id="pl.30.18"></a><var>30.18</var>The request for extension must be submitted in writing not less than ten days before <br />
         		<a id="pl.30.19"></a><var>30.19</var>the due date in sufficient detail to permit the commissioner to make an informed decision <br />
         		<a id="pl.30.20"></a><var>30.20</var>with respect to the requested extension.<br />
         		<a id="pl.30.21"></a><var>30.21</var>If an extension is granted in accordance with this subdivision, a similar extension of <br />
         		<a id="pl.30.22"></a><var>30.22</var>30 days is granted to the filing of management's report of internal control over financial <br />
         		<a id="pl.30.23"></a><var>30.23</var>reporting.<br />
         		<a id="pl.30.24"></a><var>30.24</var>Every insurer required to file an annual audited financial report pursuant to this <br />
         		<a id="pl.30.25"></a><var>30.25</var>subdivision shall designate a group of individuals as constituting its audit committee. The <br />
         		<a id="pl.30.26"></a><var>30.26</var>audit committee of an entity that controls an insurer may be deemed to be the insurer's <br />
         		<a id="pl.30.27"></a><var>30.27</var>audit committee for purposes of this subdivision at the election of the controlling person.<br />
         		<a id="pl.30.28"></a><var>30.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Exemptions.</b> Foreign and alien insurers filing audited financial reports in <br />
         		<a id="pl.30.29"></a><var>30.29</var>another state under the other state's requirements of audited financial reports which have <br />
         		<a id="pl.30.30"></a><var>30.30</var>been found by the commissioner to be substantially similar to these requirements are <br />
         		<a id="pl.30.31"></a><var>30.31</var>exempt from this subdivision if a copy of the audited financial report, communication of <br />
         		<a id="pl.30.32"></a><var>30.32</var>internal control related matters noted in an audit, accountant's letter of qualifications, and <br />
         		<a id="pl.30.33"></a><var>30.33</var>report on significant deficiencies in internal controls, which are filed with the other state, <br />
         		<a id="pl.30.34"></a><var>30.34</var>are filed with the commissioner in accordance with the filing dates specified in subdivision <br />
         		<a id="pl.30.35"></a><var>30.35</var>2 (Canadian insurers may submit accountants' reports as filed with the Canadian Dominion <br />
         		<a id="pl.30.36"></a><var>30.36</var>Department of Insurance); and a copy of any notification of adverse financial condition <br />
         		<a id="pl.31.1"></a><var>31.1</var>report filed with the other state is filed with the commissioner within the time specified <br />
         		<a id="pl.31.2"></a><var>31.2</var>in subdivision 11. Foreign or alien insurers required to file management's report of <br />
         		<a id="pl.31.3"></a><var>31.3</var>internal control over financial reporting in another state are exempt from filing the report <br />
         		<a id="pl.31.4"></a><var>31.4</var>in this state provided the other state has substantially similar reporting requirements and <br />
         		<a id="pl.31.5"></a><var>31.5</var>the report is filed with the commissioner of the other state within the time specified. <br />
         		<a id="pl.31.6"></a><var>31.6</var>This subdivision does not prohibit or in any way limit the commissioner from ordering, <br />
         		<a id="pl.31.7"></a><var>31.7</var>conducting, and performing examinations of insurers under the authority of this chapter.<br />
         		<a id="pl.31.8"></a><var>31.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Contents of annual audit; financial report.</b> (a) The annual audited <br />
         		<a id="pl.31.9"></a><var>31.9</var>financial report must report, in conformity with statutory accounting practices required <br />
         		<a id="pl.31.10"></a><var>31.10</var>or permitted by the commissioner of insurance of the state of domicile, the financial <br />
         		<a id="pl.31.11"></a><var>31.11</var>position of the insurer as of the end of the most recent calendar year and the results of <br />
         		<a id="pl.31.12"></a><var>31.12</var>its operations, cash flows, and changes in capital and surplus for the year ended. The <br />
         		<a id="pl.31.13"></a><var>31.13</var>annual audited financial report must include:<br />
         		<a id="pl.31.14"></a><var>31.14</var>(1) a report of an independent certified public accountant;<br />
         		<a id="pl.31.15"></a><var>31.15</var>(2) a balance sheet reporting admitted assets, liabilities, capital, and surplus;<br />
         		<a id="pl.31.16"></a><var>31.16</var>(3) a statement of operations;<br />
         		<a id="pl.31.17"></a><var>31.17</var>(4) a statement of cash flows;<br />
         		<a id="pl.31.18"></a><var>31.18</var>(5) a statement of changes in capital and surplus; and<br />
         		<a id="pl.31.19"></a><var>31.19</var>(6) notes to the financial statements.<br />
         		<a id="pl.31.20"></a><var>31.20</var>(b) The notes required under paragraph (a) are those required by the appropriate <br />
         		<a id="pl.31.21"></a><var>31.21</var>National Association of Insurance Commissioners (NAIC) annual statement instructions <br />
         		<a id="pl.31.22"></a><var>31.22</var>and National Association of Insurance Commissioners Accounting Practices and <br />
         		<a id="pl.31.23"></a><var>31.23</var>Procedures Manual and include reconciliation of differences, if any, between the audited <br />
         		<a id="pl.31.24"></a><var>31.24</var>statutory financial statements and the annual statement filed under section 60A.13, <br />
         		<a id="pl.31.25"></a><var>31.25</var>subdivision 1, with a written description of the nature of these differences.<br />
         		<a id="pl.31.26"></a><var>31.26</var>(c) The financial statements included in the audited financial report must be prepared <br />
         		<a id="pl.31.27"></a><var>31.27</var>in a form and using language and groupings substantially the same as the relevant sections <br />
         		<a id="pl.31.28"></a><var>31.28</var>of the annual statement of the insurer filed with the commissioner. The financial statement <br />
         		<a id="pl.31.29"></a><var>31.29</var>must be comparative, presenting the amounts as of December 31 of the current year and <br />
         		<a id="pl.31.30"></a><var>31.30</var>the amounts as of the immediately preceding December 31. In the first year in which <br />
         		<a id="pl.31.31"></a><var>31.31</var>an insurer is required to file an audited financial report, the comparative data may be <br />
         		<a id="pl.31.32"></a><var>31.32</var>omitted. The amounts may be rounded to the nearest $1,000, and all immaterial amounts <br />
         		<a id="pl.31.33"></a><var>31.33</var>may be combined.<br />
         		<a id="pl.31.34"></a><var>31.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Designation of independent certified public accountant.</b> Each insurer <br />
         		<a id="pl.31.35"></a><var>31.35</var>required by this section to file an annual audited financial report must notify the <br />
         		<a id="pl.31.36"></a><var>31.36</var>commissioner in writing of the name and address of the independent certified public <br />
         		<a id="pl.32.1"></a><var>32.1</var>accountant or accounting firm retained to conduct the annual audit within 60 days after <br />
         		<a id="pl.32.2"></a><var>32.2</var>becoming subject to the annual audit requirement. The insurer shall obtain from the <br />
         		<a id="pl.32.3"></a><var>32.3</var>accountant a letter which states that the accountant is aware of the provisions that relate <br />
         		<a id="pl.32.4"></a><var>32.4</var>to accounting and financial matters in the insurance laws and the rules of the insurance <br />
         		<a id="pl.32.5"></a><var>32.5</var>regulatory authority of the state of domicile. The letter shall affirm that the accountant will <br />
         		<a id="pl.32.6"></a><var>32.6</var>express an opinion on the financial statements in terms of their conformity to the statutory <br />
         		<a id="pl.32.7"></a><var>32.7</var>accounting practices prescribed or otherwise permitted by that insurance regulatory <br />
         		<a id="pl.32.8"></a><var>32.8</var>authority, specifying the exceptions believed to be appropriate. A copy of the accountant's <br />
         		<a id="pl.32.9"></a><var>32.9</var>letter shall be filed with the commissioner.<br />
         		<a id="pl.32.10"></a><var>32.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Report of disagreements.</b> If an accountant who was the accountant for <br />
         		<a id="pl.32.11"></a><var>32.11</var>the immediately preceding filed audited financial report is dismissed or resigns, the <br />
         		<a id="pl.32.12"></a><var>32.12</var>insurer shall notify the commissioner of this event within five business days. Within <br />
         		<a id="pl.32.13"></a><var>32.13</var>ten business days of this notification, the insurer shall also furnish the commissioner <br />
         		<a id="pl.32.14"></a><var>32.14</var>with a separate letter stating whether in the 24 months preceding this event there were <br />
         		<a id="pl.32.15"></a><var>32.15</var>any disagreements with the former accountant on any matter of accounting principles or <br />
         		<a id="pl.32.16"></a><var>32.16</var>practices, financial statement disclosure, or auditing scope or procedure, which, if not <br />
         		<a id="pl.32.17"></a><var>32.17</var>resolved to the satisfaction of the former accountant, would have caused that person to <br />
         		<a id="pl.32.18"></a><var>32.18</var>make reference to the subject matter of the disagreement in connection with the opinion <br />
         		<a id="pl.32.19"></a><var>32.19</var>on the financial statements. The disagreements required to be reported in response to this <br />
         		<a id="pl.32.20"></a><var>32.20</var>subdivision include both those resolved to the former accountant's satisfaction and those <br />
         		<a id="pl.32.21"></a><var>32.21</var>not resolved to the former accountant's satisfaction. Disagreements contemplated by this <br />
         		<a id="pl.32.22"></a><var>32.22</var>subdivision are those disagreements between personnel of the insurer responsible for <br />
         		<a id="pl.32.23"></a><var>32.23</var>presentation of its financial statements and personnel of the accounting firm responsible <br />
         		<a id="pl.32.24"></a><var>32.24</var>for rendering its report. The insurer shall also in writing request the former accountant <br />
         		<a id="pl.32.25"></a><var>32.25</var>to furnish a letter addressed to the insurer stating whether the accountant agrees with <br />
         		<a id="pl.32.26"></a><var>32.26</var>the statements contained in the insurer's letter and, if not, stating the reasons for any <br />
         		<a id="pl.32.27"></a><var>32.27</var>disagreement. The insurer shall furnish this responsive letter from the former accountant <br />
         		<a id="pl.32.28"></a><var>32.28</var>to the commissioner together with its own.<br />
         		<a id="pl.32.29"></a><var>32.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Qualifications of independent certified public accountant.</b> (a) The <br />
         		<a id="pl.32.30"></a><var>32.30</var>commissioner shall not recognize any person or firm as a qualified independent certified <br />
         		<a id="pl.32.31"></a><var>32.31</var>public accountant that is not in good standing with the American Institute of Certified <br />
         		<a id="pl.32.32"></a><var>32.32</var>Public Accountants and in all states in which the accountant is licensed or is required <br />
         		<a id="pl.32.33"></a><var>32.33</var>to be licensed to practice, or for a Canadian or British company, that is not a chartered <br />
         		<a id="pl.32.34"></a><var>32.34</var>accountant. Except as otherwise provided, an independent certified public accountant must <br />
         		<a id="pl.32.35"></a><var>32.35</var>be recognized as qualified as long as the person conforms to the standards of the person's <br />
         		<a id="pl.32.36"></a><var>32.36</var>profession, as contained in the Code of Professional Conduct of the American Institute <br />
         		<a id="pl.33.1"></a><var>33.1</var>of Certified Public Accountants and the Code of Professional Conduct of the Minnesota <br />
         		<a id="pl.33.2"></a><var>33.2</var>Board of Public Accountancy or similar code and the person is properly licensed in good <br />
         		<a id="pl.33.3"></a><var>33.3</var>standing with all required state boards of accountancy.<br />
         		<a id="pl.33.4"></a><var>33.4</var>(b) The lead or coordinating audit partner, having primary responsibility for the <br />
         		<a id="pl.33.5"></a><var>33.5</var>audit, may not act in that capacity for more than five consecutive years. The person shall <br />
         		<a id="pl.33.6"></a><var>33.6</var>be disqualified from acting in that or a similar capacity for the same company or its <br />
         		<a id="pl.33.7"></a><var>33.7</var>insurance subsidiaries or affiliates for a period of five consecutive years. An insurer may <br />
         		<a id="pl.33.8"></a><var>33.8</var>make application to the commissioner for relief from this rotation requirement on the <br />
         		<a id="pl.33.9"></a><var>33.9</var>basis of unusual circumstances. This application must be made at least 30 days before <br />
         		<a id="pl.33.10"></a><var>33.10</var>the end of the calendar year. The commissioner may consider the following factors in <br />
         		<a id="pl.33.11"></a><var>33.11</var>determining if the relief should be granted:<br />
         		<a id="pl.33.12"></a><var>33.12</var>(1) number of partners, expertise of the partners, or the number of insurance clients <br />
         		<a id="pl.33.13"></a><var>33.13</var>in the currently registered firm;<br />
         		<a id="pl.33.14"></a><var>33.14</var>(2) premium volume of the insurer; or<br />
         		<a id="pl.33.15"></a><var>33.15</var>(3) number of jurisdictions in which the insurer transacts business.<br />
         		<a id="pl.33.16"></a><var>33.16</var>The insurer shall file, with its annual statement filing, the approval for relief from this <br />
         		<a id="pl.33.17"></a><var>33.17</var>paragraph with the states that it is licensed in or doing business in and with the NAIC. If <br />
         		<a id="pl.33.18"></a><var>33.18</var>the nondomestic state accepts electronic filing with the NAIC, the insurer shall file the <br />
         		<a id="pl.33.19"></a><var>33.19</var>approval in an electronic format acceptable to the NAIC.<br />
         		<a id="pl.33.20"></a><var>33.20</var>(c) The commissioner shall not recognize as a qualified independent certified public <br />
         		<a id="pl.33.21"></a><var>33.21</var>accountant, nor accept an annual audited financial report, prepared in whole or in part by <br />
         		<a id="pl.33.22"></a><var>33.22</var>an accountant who provides to an insurer, contemporaneously with the audit, the following <br />
         		<a id="pl.33.23"></a><var>33.23</var>nonaudit services:<br />
         		<a id="pl.33.24"></a><var>33.24</var>(1) bookkeeping or other services related to the accounting records or financial <br />
         		<a id="pl.33.25"></a><var>33.25</var>statements of the insurer;<br />
         		<a id="pl.33.26"></a><var>33.26</var>(2) financial information systems design and implementation;<br />
         		<a id="pl.33.27"></a><var>33.27</var>(3) appraisal or valuation services, fairness opinions, or contribution in-kind reports;<br />
         		<a id="pl.33.28"></a><var>33.28</var>(4) actuarially oriented advisory services involving the determination of amounts <br />
         		<a id="pl.33.29"></a><var>33.29</var>recorded in the financial statements. The accountant may assist an insurer in understanding <br />
         		<a id="pl.33.30"></a><var>33.30</var>the methods, assumptions, and inputs used in the determination of amounts recorded in the <br />
         		<a id="pl.33.31"></a><var>33.31</var>financial statement only if it is reasonable to conclude that the services provided will not <br />
         		<a id="pl.33.32"></a><var>33.32</var>be subject to audit procedures during an audit of the insurer's financial statements. An <br />
         		<a id="pl.33.33"></a><var>33.33</var>accountant's actuary may also issue an actuarial opinion or certification on an insurer's <br />
         		<a id="pl.33.34"></a><var>33.34</var>reserves if the following conditions have been met:<br />
         		<a id="pl.33.35"></a><var>33.35</var>(i) neither the accountant nor the accountant's actuary has performed any <br />
         		<a id="pl.33.36"></a><var>33.36</var>management functions or made any management decisions;<br />
         		<a id="pl.34.1"></a><var>34.1</var>(ii) the insurer has competent personnel, or engages a third-party actuary, to estimate <br />
         		<a id="pl.34.2"></a><var>34.2</var>the loss reserves for which management takes responsibility; and<br />
         		<a id="pl.34.3"></a><var>34.3</var>(iii) the accountant's actuary tests the reasonableness of the reserves after the <br />
         		<a id="pl.34.4"></a><var>34.4</var>insurer's management has determined the amount of the loss reserves;<br />
         		<a id="pl.34.5"></a><var>34.5</var>(5) internal audit outsourcing services;<br />
         		<a id="pl.34.6"></a><var>34.6</var>(6) management functions or human resources;<br />
         		<a id="pl.34.7"></a><var>34.7</var>(7) broker or dealer, investment adviser, or investment banking services;<br />
         		<a id="pl.34.8"></a><var>34.8</var>(8) legal services or expert services unrelated to the audit; and<br />
         		<a id="pl.34.9"></a><var>34.9</var>(9) any other services that the commissioner determines, by rule, are impermissible.<br />
         		<a id="pl.34.10"></a><var>34.10</var>(d) The commissioner shall not recognize as a qualified independent certified public <br />
         		<a id="pl.34.11"></a><var>34.11</var>accountant, nor accept any audited financial report, prepared in whole or in part by any <br />
         		<a id="pl.34.12"></a><var>34.12</var>natural person who has been convicted of fraud, bribery, a violation of the Racketeer <br />
         		<a id="pl.34.13"></a><var>34.13</var>Influenced and Corrupt Organizations Act, United States Code, title 18, sections 1961 to <br />
         		<a id="pl.34.14"></a><var>34.14</var>1968, or any dishonest conduct or practices under federal or state law, has been found to <br />
         		<a id="pl.34.15"></a><var>34.15</var>have violated the insurance laws of this state with respect to any previous reports submitted <br />
         		<a id="pl.34.16"></a><var>34.16</var>under this section, or has demonstrated a pattern or practice of failing to detect or disclose <br />
         		<a id="pl.34.17"></a><var>34.17</var>material information in previous reports filed under the provisions of this section.<br />
         		<a id="pl.34.18"></a><var>34.18</var>(e) The commissioner, after notice and hearing under chapter 14, may find that <br />
         		<a id="pl.34.19"></a><var>34.19</var>the accountant is not qualified for purposes of expressing an opinion on the financial <br />
         		<a id="pl.34.20"></a><var>34.20</var>statements in the annual audited financial report. The commissioner may require the <br />
         		<a id="pl.34.21"></a><var>34.21</var>insurer to replace the accountant with another whose relationship with the insurer is <br />
         		<a id="pl.34.22"></a><var>34.22</var>qualified within the meaning of this section.<br />
         		<a id="pl.34.23"></a><var>34.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Exemptions to qualifications of certified public accountant.</b> (a) Insurers <br />
         		<a id="pl.34.24"></a><var>34.24</var>having direct written and assumed premiums of less than $100,000,000 in any calendar <br />
         		<a id="pl.34.25"></a><var>34.25</var>year may request an exemption from subdivision 7, paragraph (c). The insurer shall <br />
         		<a id="pl.34.26"></a><var>34.26</var>file with the commissioner a written statement discussing the reasons why the insurer <br />
         		<a id="pl.34.27"></a><var>34.27</var>should be exempt from these provisions. If the commissioner finds, upon review of this <br />
         		<a id="pl.34.28"></a><var>34.28</var>statement, that compliance with this section would constitute a financial or organizational <br />
         		<a id="pl.34.29"></a><var>34.29</var>hardship upon the insurer, an exemption may be granted.<br />
         		<a id="pl.34.30"></a><var>34.30</var>(b) A qualified independent certified public accountant who performs the audit <br />
         		<a id="pl.34.31"></a><var>34.31</var>may engage in other nonaudit services, including tax services, that are not described in <br />
         		<a id="pl.34.32"></a><var>34.32</var>subdivision 7, paragraph (c), only if the activity is approved in advance by the audit <br />
         		<a id="pl.34.33"></a><var>34.33</var>committee, in accordance with paragraph (c).<br />
         		<a id="pl.34.34"></a><var>34.34</var>(c) All auditing services and nonaudit services provided to an insurer by the qualified <br />
         		<a id="pl.34.35"></a><var>34.35</var>independent certified public accountant of the insurer must be preapproved by the audit <br />
         		<a id="pl.34.36"></a><var>34.36</var>committee. The preapproval requirement is waived with respect to nonaudit services if <br />
         		<a id="pl.35.1"></a><var>35.1</var>the insurer is a SOX compliant entity or a direct or indirect wholly owned subsidiary of a <br />
         		<a id="pl.35.2"></a><var>35.2</var>SOX compliant entity or:<br />
         		<a id="pl.35.3"></a><var>35.3</var>(1) the aggregate amount of all such nonaudit services provided to the insurer <br />
         		<a id="pl.35.4"></a><var>35.4</var>constitutes not more than five percent of the total amount of fees paid by the insurer to <br />
         		<a id="pl.35.5"></a><var>35.5</var>its qualified independent certified public accountant during the fiscal year in which the <br />
         		<a id="pl.35.6"></a><var>35.6</var>nonaudit services are provided;<br />
         		<a id="pl.35.7"></a><var>35.7</var>(2) the services were not recognized by the insurer at the time of the engagement to <br />
         		<a id="pl.35.8"></a><var>35.8</var>be nonaudit services; and<br />
         		<a id="pl.35.9"></a><var>35.9</var>(3) the services are promptly brought to the attention of the audit committee and <br />
         		<a id="pl.35.10"></a><var>35.10</var>approved before the completion of the audit by the audit committee or by one or more <br />
         		<a id="pl.35.11"></a><var>35.11</var>members of the audit committee who are the members of the board of directors to whom <br />
         		<a id="pl.35.12"></a><var>35.12</var>authority to grant such approvals has been delegated by the audit committee.<br />
         		<a id="pl.35.13"></a><var>35.13</var>(d) The audit committee may delegate to one or more designated members of the <br />
         		<a id="pl.35.14"></a><var>35.14</var>audit committee the authority to grant the preapprovals required by paragraph (c). The <br />
         		<a id="pl.35.15"></a><var>35.15</var>decisions of any member to whom this authority is delegated must be presented to the full <br />
         		<a id="pl.35.16"></a><var>35.16</var>audit committee at each of its scheduled meetings.<br />
         		<a id="pl.35.17"></a><var>35.17</var>(e) The commissioner shall not recognize an independent certified public accountant <br />
         		<a id="pl.35.18"></a><var>35.18</var>as qualified for a particular insurer if a member of the board, president, chief executive <br />
         		<a id="pl.35.19"></a><var>35.19</var>officer, controller, chief financial officer, chief accounting officer, or any person serving in <br />
         		<a id="pl.35.20"></a><var>35.20</var>an equivalent position for that insurer, was employed by the independent certified public <br />
         		<a id="pl.35.21"></a><var>35.21</var>accountant and participated in the audit of that insurer during the one-year period preceding <br />
         		<a id="pl.35.22"></a><var>35.22</var>the date that the most current statutory opinion is due. This paragraph applies only to <br />
         		<a id="pl.35.23"></a><var>35.23</var>partners and senior managers involved in the audit. An insurer may make application to <br />
         		<a id="pl.35.24"></a><var>35.24</var>the commissioner for relief from this paragraph on the basis of unusual circumstances.<br />
         		<a id="pl.35.25"></a><var>35.25</var>(f) The insurer shall file, with its annual statement filing, the approval for relief with <br />
         		<a id="pl.35.26"></a><var>35.26</var>the states that it is licensed in or doing business in and the NAIC. If the nondomestic state <br />
         		<a id="pl.35.27"></a><var>35.27</var>accepts electronic filing with the NAIC, the insurer shall file the approval in an electronic <br />
         		<a id="pl.35.28"></a><var>35.28</var>format acceptable to the NAIC.<br />
         		<a id="pl.35.29"></a><var>35.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Consolidated or combined audits.</b> (a) The commissioner may allow <br />
         		<a id="pl.35.30"></a><var>35.30</var>an insurer to file consolidated or combined audited financial statements required by <br />
         		<a id="pl.35.31"></a><var>35.31</var>subdivision 2, in lieu of separate annual audited financial statements, where it can be <br />
         		<a id="pl.35.32"></a><var>35.32</var>demonstrated that an insurer is part of a group of insurance companies that has a pooling <br />
         		<a id="pl.35.33"></a><var>35.33</var>or 100 percent reinsurance agreement which substantially affects the solvency and <br />
         		<a id="pl.35.34"></a><var>35.34</var>integrity of the reserves of the insurer and the insurer cedes all of its direct and assumed <br />
         		<a id="pl.35.35"></a><var>35.35</var>business to the pool. An affiliated insurance company not meeting these requirements may <br />
         		<a id="pl.35.36"></a><var>35.36</var>be included in the consolidated or combined audited financial statements, if the company's <br />
         		<a id="pl.36.1"></a><var>36.1</var>total admitted assets are less than five percent of the consolidated group's total admitted <br />
         		<a id="pl.36.2"></a><var>36.2</var>assets. If these circumstances exist, then the company may file a written application to <br />
         		<a id="pl.36.3"></a><var>36.3</var>file consolidated or combined audited financial statements. This application must be for <br />
         		<a id="pl.36.4"></a><var>36.4</var>a specified period.<br />
         		<a id="pl.36.5"></a><var>36.5</var>(b) Upon written application by a domestic insurer, the commissioner may <br />
         		<a id="pl.36.6"></a><var>36.6</var>authorize the domestic insurer to include additional affiliated insurance companies in the <br />
         		<a id="pl.36.7"></a><var>36.7</var>consolidated or combined audited financial statements. A foreign insurer must obtain the <br />
         		<a id="pl.36.8"></a><var>36.8</var>prior written authorization of the commissioner of its state of domicile in order to submit <br />
         		<a id="pl.36.9"></a><var>36.9</var>an application for authority to file consolidated or combined audited financial statements. <br />
         		<a id="pl.36.10"></a><var>36.10</var>This application must be for a specified period.<br />
         		<a id="pl.36.11"></a><var>36.11</var>(c) A consolidated annual audit filing must include a columnar consolidated or <br />
         		<a id="pl.36.12"></a><var>36.12</var>combining worksheet. Amounts shown on the audited consolidated or combined financial <br />
         		<a id="pl.36.13"></a><var>36.13</var>statement must be shown on the worksheet. Amounts for each insurer must be stated <br />
         		<a id="pl.36.14"></a><var>36.14</var>separately. Noninsurance operations may be shown on the worksheet on a combined or <br />
         		<a id="pl.36.15"></a><var>36.15</var>individual basis. Explanations of consolidating or eliminating entries must be shown on <br />
         		<a id="pl.36.16"></a><var>36.16</var>the worksheet. A reconciliation of any differences between the amounts shown in the <br />
         		<a id="pl.36.17"></a><var>36.17</var>individual insurer columns of the worksheet and comparable amounts shown on the annual <br />
         		<a id="pl.36.18"></a><var>36.18</var>statement of the insurers must be included on the worksheet.<br />
         		<a id="pl.36.19"></a><var>36.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Scope of audit and report of independent certified public accountant.</b><br />
         		 <a id="pl.36.20"></a><var>36.20</var>Financial statements furnished pursuant to subdivision 4 must be examined by an <br />
         		<a id="pl.36.21"></a><var>36.21</var>independent certified public accountant. The audit of the insurer's financial statements <br />
         		<a id="pl.36.22"></a><var>36.22</var>must be conducted in accordance with generally accepted auditing standards. In <br />
         		<a id="pl.36.23"></a><var>36.23</var>accordance with AICPA Statement on Auditing Standards (SAS) No. 109, Understanding <br />
         		<a id="pl.36.24"></a><var>36.24</var>the Entity and its Environment and Assessing the Risks of Material Misstatement, or its <br />
         		<a id="pl.36.25"></a><var>36.25</var>replacement, the independent certified public accountant should obtain an understanding <br />
         		<a id="pl.36.26"></a><var>36.26</var>of internal control sufficient to plan the audit. To the extent required by SAS No. 109, <br />
         		<a id="pl.36.27"></a><var>36.27</var>for those insurers required to file a management's report of internal control over financial <br />
         		<a id="pl.36.28"></a><var>36.28</var>reporting pursuant to subdivision 17, the independent certified public accountant should <br />
         		<a id="pl.36.29"></a><var>36.29</var>consider (as that term is defined in SAS No. 102, Defining Professional Requirements in <br />
         		<a id="pl.36.30"></a><var>36.30</var>Statements on Auditing Standards or its replacement) the most recently available report in <br />
         		<a id="pl.36.31"></a><var>36.31</var>planning and performing the audit of the statutory financial statements. Consideration <br />
         		<a id="pl.36.32"></a><var>36.32</var>should be given to other procedures illustrated in the Financial Condition Examiners <br />
         		<a id="pl.36.33"></a><var>36.33</var>Handbook promulgated by the National Association of Insurance Commissioners as the <br />
         		<a id="pl.36.34"></a><var>36.34</var>independent certified public accountant deems necessary.<br />
         		<a id="pl.36.35"></a><var>36.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Notification of adverse financial condition.</b> The insurer required to <br />
         		<a id="pl.36.36"></a><var>36.36</var>furnish the annual audited financial report shall require the independent certified public <br />
         		<a id="pl.37.1"></a><var>37.1</var>accountant to provide written notice within five business days to the board of directors of <br />
         		<a id="pl.37.2"></a><var>37.2</var>the insurer or its audit committee of any determination by that independent certified public <br />
         		<a id="pl.37.3"></a><var>37.3</var>accountant that the insurer has materially misstated its financial condition as reported to <br />
         		<a id="pl.37.4"></a><var>37.4</var>the commissioner as of the balance sheet date currently under audit or that the insurer does <br />
         		<a id="pl.37.5"></a><var>37.5</var>not meet the minimum capital and surplus requirement of sections 
         <statute_ref>60A.07</statute_ref>, 
         <statute_ref>66A.32</statute_ref>, and <br />
         		<a id="pl.37.6"></a><var>37.6</var><statute_ref>66A.33</statute_ref> as of that date. An insurer required to file an annual audited financial report who <br />
         		<a id="pl.37.7"></a><var>37.7</var>received a notification of adverse financial condition from the accountant shall file a <br />
         		<a id="pl.37.8"></a><var>37.8</var>copy of the notification with the commissioner within five business days of the receipt <br />
         		<a id="pl.37.9"></a><var>37.9</var>of the notification. The insurer shall provide the independent certified public accountant <br />
         		<a id="pl.37.10"></a><var>37.10</var>making the notification with evidence of the report being furnished to the commissioner. <br />
         		<a id="pl.37.11"></a><var>37.11</var>If the independent certified public accountant fails to receive the evidence within the <br />
         		<a id="pl.37.12"></a><var>37.12</var>required five-day period, the independent certified public accountant shall furnish to the <br />
         		<a id="pl.37.13"></a><var>37.13</var>commissioner a copy of the notification to the board of directors or its audit committee <br />
         		<a id="pl.37.14"></a><var>37.14</var>within the next five business days. No independent certified public accountant is liable in <br />
         		<a id="pl.37.15"></a><var>37.15</var>any manner to any person for any statement made in connection with this subdivision if <br />
         		<a id="pl.37.16"></a><var>37.16</var>the statement is made in good faith in compliance with this subdivision. If the accountant <br />
         		<a id="pl.37.17"></a><var>37.17</var>becomes aware of facts which might have affected the audited financial report after <br />
         		<a id="pl.37.18"></a><var>37.18</var>the date it was filed, the accountant shall take the action prescribed by AU section <br />
         		<a id="pl.37.19"></a><var>37.19</var>561, Subsequent Discovery of Facts Existing at the Date of the Auditor's Report of the <br />
         		<a id="pl.37.20"></a><var>37.20</var>Professional Standards issued by the American Institute of Certified Public Accountants, <br />
         		<a id="pl.37.21"></a><var>37.21</var>or its replacement.<br />
         		<a id="pl.37.22"></a><var>37.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12. <b>Communication of internal control related matters noted in an </b><br />
         		<a id="pl.37.23"></a><var>37.23</var><b>audit.</b> In addition to the annual audited financial report, each insurer shall furnish the <br />
         		<a id="pl.37.24"></a><var>37.24</var>commissioner with a written communication as to any unremediated material weaknesses <br />
         		<a id="pl.37.25"></a><var>37.25</var>in its internal control over financial reporting noted during the audit. The communication <br />
         		<a id="pl.37.26"></a><var>37.26</var>must be prepared by the accountant within 60 days after the filing of the annual audited <br />
         		<a id="pl.37.27"></a><var>37.27</var>financial report, and must contain a description of any unremediated material weakness, as <br />
         		<a id="pl.37.28"></a><var>37.28</var>the term material weakness is defined by SAS No. 115, Communicating Internal Control <br />
         		<a id="pl.37.29"></a><var>37.29</var>Related Matters Identified in an Audit, as of December 31 immediately preceding so as <br />
         		<a id="pl.37.30"></a><var>37.30</var>to coincide with the audited financial report discussed in subdivision 2 in the insurer's <br />
         		<a id="pl.37.31"></a><var>37.31</var>internal control over financial reporting noted by the accountant during the course of their <br />
         		<a id="pl.37.32"></a><var>37.32</var>audit of the financial statements. If no unremediated material weaknesses were noted, the <br />
         		<a id="pl.37.33"></a><var>37.33</var>communication should so state.<br />
         		<a id="pl.37.34"></a><var>37.34</var>The insurer is required to provide a description of remedial actions taken or <br />
         		<a id="pl.37.35"></a><var>37.35</var>proposed to correct unremediated material weaknesses, if the actions are not described in <br />
         		<a id="pl.37.36"></a><var>37.36</var>the accountant's communication.<br />
         		<a id="pl.38.1"></a><var>38.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13. <b>Accountant's letter of qualification.</b> The accountant shall furnish the <br />
         		<a id="pl.38.2"></a><var>38.2</var>insurer in connection with, and for inclusion in, the filing of the annual audited financial <br />
         		<a id="pl.38.3"></a><var>38.3</var>report, a letter stating that the accountant is independent with respect to the insurer and <br />
         		<a id="pl.38.4"></a><var>38.4</var>conforms to the standards of the accountant's profession as contained in the Code of <br />
         		<a id="pl.38.5"></a><var>38.5</var>Professional Conduct of the American Institute of Certified Public Accountants and the <br />
         		<a id="pl.38.6"></a><var>38.6</var>Code of Professional Conduct of the Minnesota Board of Accountancy or similar code; <br />
         		<a id="pl.38.7"></a><var>38.7</var>the background and experience in general, and the experience in audits of insurers of the <br />
         		<a id="pl.38.8"></a><var>38.8</var>staff assigned to the engagement and whether each is an independent certified public <br />
         		<a id="pl.38.9"></a><var>38.9</var>accountant; that the accountant understands that the annual audited financial report and the <br />
         		<a id="pl.38.10"></a><var>38.10</var>opinion on it will be filed in compliance with this statute and that the commissioner will <br />
         		<a id="pl.38.11"></a><var>38.11</var>be relying on this information in the monitoring and regulation of the financial position of <br />
         		<a id="pl.38.12"></a><var>38.12</var>insurers; that the accountant consents to the requirements of subdivision 14 and that the <br />
         		<a id="pl.38.13"></a><var>38.13</var>accountant consents and agrees to make available for review by the commissioner, or the <br />
         		<a id="pl.38.14"></a><var>38.14</var>commissioner's designee or appointed agent, the work papers, as defined in subdivision <br />
         		<a id="pl.38.15"></a><var>38.15</var>14; a representation that the accountant is properly licensed in good standing by the <br />
         		<a id="pl.38.16"></a><var>38.16</var>appropriate state licensing authorities and is a member in good standing in the American <br />
         		<a id="pl.38.17"></a><var>38.17</var>Institute of Certified Public Accountants; and a representation that the accountant complies <br />
         		<a id="pl.38.18"></a><var>38.18</var>with subdivision 7. Nothing in this section prohibits the accountant from utilizing staff <br />
         		<a id="pl.38.19"></a><var>38.19</var>the accountant deems appropriate where use is consistent with the standards prescribed <br />
         		<a id="pl.38.20"></a><var>38.20</var>by generally accepted auditing standards.<br />
         		<a id="pl.38.21"></a><var>38.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 14. <b>Availability and maintenance of independent certified public </b><br />
         		<a id="pl.38.22"></a><var>38.22</var><b>accountants' work papers.</b> Work papers are the records kept by the independent certified <br />
         		<a id="pl.38.23"></a><var>38.23</var>public accountant of the procedures followed, tests performed, information obtained, and <br />
         		<a id="pl.38.24"></a><var>38.24</var>conclusions reached pertinent to the independent certified public accountant's audit of the <br />
         		<a id="pl.38.25"></a><var>38.25</var>financial statements of an insurer. Work papers may include audit planning documents, <br />
         		<a id="pl.38.26"></a><var>38.26</var>work programs, analyses, memoranda, letters of confirmation and representation, <br />
         		<a id="pl.38.27"></a><var>38.27</var>management letters, abstracts of company documents, and schedules or commentaries <br />
         		<a id="pl.38.28"></a><var>38.28</var>prepared or obtained by the independent certified public accountant in the course of the <br />
         		<a id="pl.38.29"></a><var>38.29</var>audit of the financial statements of an insurer and that support the accountant's opinion. <br />
         		<a id="pl.38.30"></a><var>38.30</var>Every insurer required to file an audited financial report shall require the accountant, <br />
         		<a id="pl.38.31"></a><var>38.31</var>through the insurer, to make available for review by the examiners the work papers <br />
         		<a id="pl.38.32"></a><var>38.32</var>prepared in the conduct of the audit and any communications related to the audit between <br />
         		<a id="pl.38.33"></a><var>38.33</var>the accountant and the insurer. The work papers must be made available at the offices of <br />
         		<a id="pl.38.34"></a><var>38.34</var>the insurer, at the offices of the commissioner, or at any other reasonable place designated <br />
         		<a id="pl.38.35"></a><var>38.35</var>by the commissioner. The insurer shall require that the accountant retain the audit work <br />
         		<a id="pl.38.36"></a><var>38.36</var>papers and communications until the commissioner has filed a report on examination <br />
         		<a id="pl.39.1"></a><var>39.1</var>covering the period of the audit but no longer than seven years after the period reported <br />
         		<a id="pl.39.2"></a><var>39.2</var>upon, provided retention of the working papers beyond the seven years is not required by <br />
         		<a id="pl.39.3"></a><var>39.3</var>other professional or regulatory requirements. In the conduct of the periodic review by <br />
         		<a id="pl.39.4"></a><var>39.4</var>the examiners, it must be agreed that photocopies of pertinent audit work papers may be <br />
         		<a id="pl.39.5"></a><var>39.5</var>made and retained by the commissioner. These copies shall be part of the commissioner's <br />
         		<a id="pl.39.6"></a><var>39.6</var>work papers and must be given the same confidentiality as other examination work papers <br />
         		<a id="pl.39.7"></a><var>39.7</var>generated by the commissioner.<br />
         		<a id="pl.39.8"></a><var>39.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Requirements for audit committee.</b> (a) The audit committee must <br />
         		<a id="pl.39.9"></a><var>39.9</var>be directly responsible for the appointment, compensation, and oversight of the work <br />
         		<a id="pl.39.10"></a><var>39.10</var>of any accountant including resolution of disagreements between management and the <br />
         		<a id="pl.39.11"></a><var>39.11</var>accountant regarding financial reporting for the purpose of preparing or issuing the audited <br />
         		<a id="pl.39.12"></a><var>39.12</var>financial report or related work pursuant to this regulation. Each accountant shall report <br />
         		<a id="pl.39.13"></a><var>39.13</var>directly to the audit committee.<br />
         		<a id="pl.39.14"></a><var>39.14</var>(b) Each member of the audit committee must be a member of the board of directors <br />
         		<a id="pl.39.15"></a><var>39.15</var>of the insurer or a member of the board of directors of an entity elected pursuant to <br />
         		<a id="pl.39.16"></a><var>39.16</var>paragraph (e) and subdivision 1, paragraph (b).<br />
         		<a id="pl.39.17"></a><var>39.17</var>(c) In order to be considered independent for purposes of this section, a member of <br />
         		<a id="pl.39.18"></a><var>39.18</var>the audit committee may not, other than in his or her capacity as a member of the audit <br />
         		<a id="pl.39.19"></a><var>39.19</var>committee, the board of directors, or any other board committee, accept any consulting, <br />
         		<a id="pl.39.20"></a><var>39.20</var>advisory, or other compensatory fee from the entity or be an affiliated person of the entity <br />
         		<a id="pl.39.21"></a><var>39.21</var>or any subsidiary of the entity. However, if law requires board participation by otherwise <br />
         		<a id="pl.39.22"></a><var>39.22</var>nonindependent members, that law shall prevail and such members may participate in the <br />
         		<a id="pl.39.23"></a><var>39.23</var>audit committee and be designated as independent for audit committee purposes, unless <br />
         		<a id="pl.39.24"></a><var>39.24</var>they are an officer or employee of the insurer or one of its affiliates.<br />
         		<a id="pl.39.25"></a><var>39.25</var>(d) If a member of the audit committee ceases to be independent for reasons outside <br />
         		<a id="pl.39.26"></a><var>39.26</var>the member's reasonable control, that person, with notice by the responsible entity to the <br />
         		<a id="pl.39.27"></a><var>39.27</var>state, may remain an audit committee member of the responsible entity until the earlier of <br />
         		<a id="pl.39.28"></a><var>39.28</var>the next annual meeting of the responsible entity or one year from the occurrence of the <br />
         		<a id="pl.39.29"></a><var>39.29</var>event that caused the member to be no longer independent.<br />
         		<a id="pl.39.30"></a><var>39.30</var>(e) To exercise the election of the controlling person to designate the audit committee <br />
         		<a id="pl.39.31"></a><var>39.31</var>for purposes of this section, the ultimate controlling person shall provide written notice to <br />
         		<a id="pl.39.32"></a><var>39.32</var>the commissioners of the affected insurers. Notification must be made timely before the <br />
         		<a id="pl.39.33"></a><var>39.33</var>issuance of the statutory audit report and include a description of the basis for the election. <br />
         		<a id="pl.39.34"></a><var>39.34</var>The election can be changed through notice to the commissioner by the insurer, which <br />
         		<a id="pl.39.35"></a><var>39.35</var>shall include a description of the basis for the change. The election remains in effect for <br />
         		<a id="pl.39.36"></a><var>39.36</var>perpetuity, until rescinded.<br />
         		<a id="pl.40.1"></a><var>40.1</var>(f) The audit committee shall require the accountant that performs for an insurer any <br />
         		<a id="pl.40.2"></a><var>40.2</var>audit required by this section to timely report to the audit committee in accordance with <br />
         		<a id="pl.40.3"></a><var>40.3</var>the requirements of SAS No. 114, The Auditor's Communication with Those Charged <br />
         		<a id="pl.40.4"></a><var>40.4</var>with Governance, including:<br />
         		<a id="pl.40.5"></a><var>40.5</var>(1) all significant accounting policies and material permitted practices;<br />
         		<a id="pl.40.6"></a><var>40.6</var>(2) all material alternative treatments of financial information within statutory <br />
         		<a id="pl.40.7"></a><var>40.7</var>accounting principles that have been discussed with management officials of the insurer, <br />
         		<a id="pl.40.8"></a><var>40.8</var>ramifications of the use of the alternative disclosures and treatments, and the treatment <br />
         		<a id="pl.40.9"></a><var>40.9</var>preferred by the accountant; and <br />
         		<a id="pl.40.10"></a><var>40.10</var>(3) other material written communications between the accountant and the <br />
         		<a id="pl.40.11"></a><var>40.11</var>management of the insurer, such as any management letter or schedule of unadjusted <br />
         		<a id="pl.40.12"></a><var>40.12</var>differences.<br />
         		<a id="pl.40.13"></a><var>40.13</var>(g) If an insurer is a member of an insurance holding company system, the reports <br />
         		<a id="pl.40.14"></a><var>40.14</var>required by paragraph (f) may be provided to the audit committee on an aggregate basis <br />
         		<a id="pl.40.15"></a><var>40.15</var>for insurers in the holding company system, provided that any substantial differences <br />
         		<a id="pl.40.16"></a><var>40.16</var>among insurers in the system are identified to the audit committee.<br />
         		<a id="pl.40.17"></a><var>40.17</var>(h) The proportion of independent audit committee members shall meet or exceed <br />
         		<a id="pl.40.18"></a><var>40.18</var>the following criteria:<br />
         		<a id="pl.40.19"></a><var>40.19</var>(1) for companies with prior calendar year direct written and assumed premiums $0 <br />
         		<a id="pl.40.20"></a><var>40.20</var>to $300,000,000, no minimum requirements;<br />
         		<a id="pl.40.21"></a><var>40.21</var>(2) for companies with prior calendar year direct written and assumed premiums <br />
         		<a id="pl.40.22"></a><var>40.22</var>over $300,000,000 to $500,000,000, majority of members must be independent; and<br />
         		<a id="pl.40.23"></a><var>40.23</var>(3) for companies with prior calendar year direct written and assumed premiums <br />
         		<a id="pl.40.24"></a><var>40.24</var>over $500,000,000, 75 percent or more must be independent.<br />
         		<a id="pl.40.25"></a><var>40.25</var>(i) An insurer with direct written and assumed premium, excluding premiums <br />
         		<a id="pl.40.26"></a><var>40.26</var>reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less <br />
         		<a id="pl.40.27"></a><var>40.27</var>than $500,000,000 may make application to the commissioner for a waiver from the <br />
         		<a id="pl.40.28"></a><var>40.28</var>requirements of this subdivision based upon hardship. The insurer shall file, with its <br />
         		<a id="pl.40.29"></a><var>40.29</var>annual statement filing, the approval for relief from this subdivision with the states that <br />
         		<a id="pl.40.30"></a><var>40.30</var>it is licensed in or doing business in and the NAIC. If the nondomestic state accepts <br />
         		<a id="pl.40.31"></a><var>40.31</var>electronic filing with the NAIC, the insurer shall file the approval in an electronic format <br />
         		<a id="pl.40.32"></a><var>40.32</var>acceptable to the NAIC.<br />
         		<a id="pl.40.33"></a><var>40.33</var>This subdivision does not apply to foreign or alien insurers licensed in this state or <br />
         		<a id="pl.40.34"></a><var>40.34</var>an insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary <br />
         		<a id="pl.40.35"></a><var>40.35</var>of a SOX compliant entity.<br />
         		<a id="pl.41.1"></a><var>41.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 16. <b>Conduct of insurer in connection with the preparation of required </b><br />
         		<a id="pl.41.2"></a><var>41.2</var><b>reports and documents.</b> (a) No director or officer of an insurer shall, directly or indirectly:<br />
         		<a id="pl.41.3"></a><var>41.3</var>(1) make or cause to be made a materially false or misleading statement to an <br />
         		<a id="pl.41.4"></a><var>41.4</var>accountant in connection with any audit, review, or communication required under this <br />
         		<a id="pl.41.5"></a><var>41.5</var>section; or<br />
         		<a id="pl.41.6"></a><var>41.6</var>(2) omit to state, or cause another person to omit to state, any material fact necessary <br />
         		<a id="pl.41.7"></a><var>41.7</var>in order to make statements made, in light of the circumstances under which the statements <br />
         		<a id="pl.41.8"></a><var>41.8</var>were made, not misleading to an accountant in connection with any audit, review, or <br />
         		<a id="pl.41.9"></a><var>41.9</var>communication required under this section.<br />
         		<a id="pl.41.10"></a><var>41.10</var>(b) No officer or director of an insurer, or any other person acting under the direction <br />
         		<a id="pl.41.11"></a><var>41.11</var>thereof, shall directly or indirectly take any action to coerce, manipulate, mislead, or <br />
         		<a id="pl.41.12"></a><var>41.12</var>fraudulently influence any accountant engaged in the performance of an audit pursuant to <br />
         		<a id="pl.41.13"></a><var>41.13</var>this section if that person knew or should have known that the action, if successful, could <br />
         		<a id="pl.41.14"></a><var>41.14</var>result in rendering the insurer's financial statements materially misleading.<br />
         		<a id="pl.41.15"></a><var>41.15</var>(c) For purposes of paragraph (b), actions that, "if successful, could result in <br />
         		<a id="pl.41.16"></a><var>41.16</var>rendering the insurer's financial statements materially misleading" include, but are not <br />
         		<a id="pl.41.17"></a><var>41.17</var>limited to, actions taken at any time with respect to the professional engagement period to <br />
         		<a id="pl.41.18"></a><var>41.18</var>coerce, manipulate, mislead, or fraudulently influence an accountant:<br />
         		<a id="pl.41.19"></a><var>41.19</var>(1) to issue or reissue a report on an insurer's financial statements that is not <br />
         		<a id="pl.41.20"></a><var>41.20</var>warranted in the circumstances due to material violations of statutory accounting <br />
         		<a id="pl.41.21"></a><var>41.21</var>principles prescribed by the commissioner, generally accepted auditing standards, or <br />
         		<a id="pl.41.22"></a><var>41.22</var>other professional or regulatory standards;<br />
         		<a id="pl.41.23"></a><var>41.23</var>(2) not to perform audit, review, or other procedures required by generally accepted <br />
         		<a id="pl.41.24"></a><var>41.24</var>auditing standards or other professional standards;<br />
         		<a id="pl.41.25"></a><var>41.25</var>(3) not to withdraw an issued report; or<br />
         		<a id="pl.41.26"></a><var>41.26</var>(4) not to communicate matters to an insurer's audit committee.<br />
         		<a id="pl.41.27"></a><var>41.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 17. <b>Management's report of internal control over financial reporting.</b><br />
         		 <a id="pl.41.28"></a><var>41.28</var>(a) Every insurer required to file an audited financial report pursuant to this section that <br />
         		<a id="pl.41.29"></a><var>41.29</var>has annual direct written and assumed premiums, excluding premiums reinsured with the <br />
         		<a id="pl.41.30"></a><var>41.30</var>Federal Crop Insurance Corporation and Federal Flood Program, of $500,000,000 or <br />
         		<a id="pl.41.31"></a><var>41.31</var>more, shall prepare a report of the insurer's or group of insurers' internal control over <br />
         		<a id="pl.41.32"></a><var>41.32</var>financial reporting, as these terms are defined in subdivision 1. The report must be filed <br />
         		<a id="pl.41.33"></a><var>41.33</var>with the commissioner along with the communication of internal control related matters <br />
         		<a id="pl.41.34"></a><var>41.34</var>noted in an audit described under subdivision 12. Management's report of internal control <br />
         		<a id="pl.41.35"></a><var>41.35</var>over financial reporting shall be as of December 31 immediately preceding.<br />
         		<a id="pl.42.1"></a><var>42.1</var>(b) Notwithstanding the premium threshold in paragraph (a), the commissioner may <br />
         		<a id="pl.42.2"></a><var>42.2</var>require an insurer to file management's report of internal control over financial reporting if <br />
         		<a id="pl.42.3"></a><var>42.3</var>the insurer is in any RBC level event, or meets any one or more of the standards of an <br />
         		<a id="pl.42.4"></a><var>42.4</var>insurer deemed to be in hazardous financial condition as pursuant to sections 606.20 <br />
         		<a id="pl.42.5"></a><var>42.5</var>to 606.22.<br />
         		<a id="pl.42.6"></a><var>42.6</var>(c) An insurer or a group of insurers that is:<br />
         		<a id="pl.42.7"></a><var>42.7</var>(1) directly subject to Section 404;<br />
         		<a id="pl.42.8"></a><var>42.8</var>(2) part of a holding company system whose parent is directly subject to Section 404;<br />
         		<a id="pl.42.9"></a><var>42.9</var>(3) not directly subject to Section 404 but is a SOX compliant entity; or<br />
         		<a id="pl.42.10"></a><var>42.10</var>(4) a member of a holding company system whose parent is not directly subject to <br />
         		<a id="pl.42.11"></a><var>42.11</var>Section 404 but is a SOX compliant entity;<br />
         		<a id="pl.42.12"></a><var>42.12</var>may file its or its parent's Section 404 report and an addendum in satisfaction of this <br />
         		<a id="pl.42.13"></a><var>42.13</var>requirement provided that those internal controls of the insurer or group of insurers <br />
         		<a id="pl.42.14"></a><var>42.14</var>having a material impact on the preparation of the insurer's or group of insurers' audited <br />
         		<a id="pl.42.15"></a><var>42.15</var>statutory financial statements, consisting of those items included in subdivision 4, <br />
         		<a id="pl.42.16"></a><var>42.16</var>paragraphs (a), clauses (2) to (6), (b), and (c), were included in the scope of the Section <br />
         		<a id="pl.42.17"></a><var>42.17</var>404 report. The addendum shall be a positive statement by management that there are <br />
         		<a id="pl.42.18"></a><var>42.18</var>no material processes with respect to the preparation of the insurer's or group of insurers' <br />
         		<a id="pl.42.19"></a><var>42.19</var>audited statutory financial statements, consisting of those items included in subdivision 4, <br />
         		<a id="pl.42.20"></a><var>42.20</var>paragraphs (a), clauses (2) to (6), (b), and (c), excluded from the Section 404 report. If <br />
         		<a id="pl.42.21"></a><var>42.21</var>there are internal controls of the insurer or group of insurers that have a material impact on <br />
         		<a id="pl.42.22"></a><var>42.22</var>the preparation of the insurer's or group of insurers' audited statutory financial statements <br />
         		<a id="pl.42.23"></a><var>42.23</var>and those internal controls were not included in the scope of the Section 404 report, the <br />
         		<a id="pl.42.24"></a><var>42.24</var>insurer or group of insurers may either file (i) a report under this subdivision, or (ii) the <br />
         		<a id="pl.42.25"></a><var>42.25</var>Section 404 report and a report under this subdivision for those internal controls that have <br />
         		<a id="pl.42.26"></a><var>42.26</var>a material impact on the preparation of the insurer's or group of insurers' audited statutory <br />
         		<a id="pl.42.27"></a><var>42.27</var>financial statements not covered by the Section 404 report.<br />
         		<a id="pl.42.28"></a><var>42.28</var>(d) Management's report of internal control over financial reporting shall include:<br />
         		<a id="pl.42.29"></a><var>42.29</var>(1) a statement that management is responsible for establishing and maintaining <br />
         		<a id="pl.42.30"></a><var>42.30</var>adequate internal control over financial reporting;<br />
         		<a id="pl.42.31"></a><var>42.31</var>(2) a statement that management has established internal control over financial <br />
         		<a id="pl.42.32"></a><var>42.32</var>reporting and an assertion, to the best of management's knowledge and belief, after diligent <br />
         		<a id="pl.42.33"></a><var>42.33</var>inquiry, as to whether its internal control over financial reporting is effective to provide <br />
         		<a id="pl.42.34"></a><var>42.34</var>reasonable assurance regarding the reliability of financial statements in accordance with <br />
         		<a id="pl.42.35"></a><var>42.35</var>statutory accounting principles;<br />
         		<a id="pl.43.1"></a><var>43.1</var>(3) a statement that briefly describes the approach or processes by which <br />
         		<a id="pl.43.2"></a><var>43.2</var>management evaluated the effectiveness of its internal control over financial reporting;<br />
         		<a id="pl.43.3"></a><var>43.3</var>(4) a statement that briefly describes the scope of work that is included and whether <br />
         		<a id="pl.43.4"></a><var>43.4</var>any internal controls were excluded;<br />
         		<a id="pl.43.5"></a><var>43.5</var>(5) disclosure of any unremediated material weaknesses in the internal control over <br />
         		<a id="pl.43.6"></a><var>43.6</var>financial reporting identified by management as of December 31 immediately preceding. <br />
         		<a id="pl.43.7"></a><var>43.7</var>Management is not permitted to conclude that the internal control over financial reporting <br />
         		<a id="pl.43.8"></a><var>43.8</var>is effective to provide reasonable assurance regarding the reliability of financial statements <br />
         		<a id="pl.43.9"></a><var>43.9</var>in accordance with statutory accounting principles if there is one or more unremediated <br />
         		<a id="pl.43.10"></a><var>43.10</var>material weaknesses in its internal control over financial reporting;<br />
         		<a id="pl.43.11"></a><var>43.11</var>(6) a statement regarding the inherent limitations of internal control systems; and<br />
         		<a id="pl.43.12"></a><var>43.12</var>(7) signatures of the chief executive officer and the chief financial officer or <br />
         		<a id="pl.43.13"></a><var>43.13</var>equivalent position or title.<br />
         		<a id="pl.43.14"></a><var>43.14</var>(e) Management shall document and make available upon financial condition <br />
         		<a id="pl.43.15"></a><var>43.15</var>examination the basis upon which its assertions, required in paragraph (d), are made. <br />
         		<a id="pl.43.16"></a><var>43.16</var>Management may base its assertions, in part, upon its review, monitoring, and testing of <br />
         		<a id="pl.43.17"></a><var>43.17</var>internal controls undertaken in the normal course of its activities.<br />
         		<a id="pl.43.18"></a><var>43.18</var>(1) Management has discretion as to the nature of the internal control framework <br />
         		<a id="pl.43.19"></a><var>43.19</var>used, and the nature and extent of documentation, in order to make its assertion in a <br />
         		<a id="pl.43.20"></a><var>43.20</var>cost-effective manner and, as such, may include assembly of or reference to existing <br />
         		<a id="pl.43.21"></a><var>43.21</var>documentation.<br />
         		<a id="pl.43.22"></a><var>43.22</var>(2) Management's report on internal control over financial reporting, required by <br />
         		<a id="pl.43.23"></a><var>43.23</var>paragraph (a), and any documentation provided in support of the report during the course <br />
         		<a id="pl.43.24"></a><var>43.24</var>of a financial condition examination, must be kept confidential by the Department of <br />
         		<a id="pl.43.25"></a><var>43.25</var>Commerce.<br />
         		<a id="pl.43.26"></a><var>43.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 18. <b>Exemptions.</b> (a) Upon written application of any insurer, the <br />
         		<a id="pl.43.27"></a><var>43.27</var>commissioner may grant an exemption from compliance with the provisions of this <br />
         		<a id="pl.43.28"></a><var>43.28</var>section. In order to receive an exemption, an insurer must demonstrate to the satisfaction <br />
         		<a id="pl.43.29"></a><var>43.29</var>of the commissioner that compliance would constitute a financial or organizational <br />
         		<a id="pl.43.30"></a><var>43.30</var>hardship upon the insurer. An exemption may be granted at any time and from time <br />
         		<a id="pl.43.31"></a><var>43.31</var>to time for specified periods. Within ten days from the denial of an insurer's written <br />
         		<a id="pl.43.32"></a><var>43.32</var>request for an exemption, the insurer may request in writing a hearing on its application <br />
         		<a id="pl.43.33"></a><var>43.33</var>for an exemption. This hearing must be held in accordance with chapter 14. Upon written <br />
         		<a id="pl.43.34"></a><var>43.34</var>application of any insurer, the commissioner may permit an insurer to file annual audited <br />
         		<a id="pl.43.35"></a><var>43.35</var>financial reports on some basis other than a calendar year basis for a specified period. An <br />
         		<a id="pl.43.36"></a><var>43.36</var>exemption may not be granted until the insurer presents an alternative method satisfying <br />
         		<a id="pl.44.1"></a><var>44.1</var>the purposes of this section. Within ten days from a denial of a written request for an <br />
         		<a id="pl.44.2"></a><var>44.2</var>exemption, the insurer may request in writing a hearing on its application. The hearing <br />
         		<a id="pl.44.3"></a><var>44.3</var>must be held in accordance with chapter 14.<br />
         		<a id="pl.44.4"></a><var>44.4</var>(b) This section applies to all insurers, unless otherwise indicated, required to file <br />
         		<a id="pl.44.5"></a><var>44.5</var>an annual audit by subdivision 2, except insurers having less than $1,000,000 of direct <br />
         		<a id="pl.44.6"></a><var>44.6</var>written premiums in this state in any calendar year and fewer than 1,000 policyholders <br />
         		<a id="pl.44.7"></a><var>44.7</var>or certificate holders of directly written policies nationwide at the end of the calendar <br />
         		<a id="pl.44.8"></a><var>44.8</var>year, are exempt from this section for that year, unless the commissioner makes a <br />
         		<a id="pl.44.9"></a><var>44.9</var>specific finding that compliance is necessary for the commissioner to carry out statutory <br />
         		<a id="pl.44.10"></a><var>44.10</var>responsibilities, except that insurers having assumed premiums from reinsurance contracts <br />
         		<a id="pl.44.11"></a><var>44.11</var>or treaties of $1,000,000 or more are not exempt.<br />
         		<a id="pl.44.12"></a><var>44.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19. <b>Canadian and British companies.</b> (a) In the case of Canadian and <br />
         		<a id="pl.44.13"></a><var>44.13</var>British insurers, the annual audited financial report means the annual statement of total <br />
         		<a id="pl.44.14"></a><var>44.14</var>business on the form filed by these companies with their domiciliary supervision authority <br />
         		<a id="pl.44.15"></a><var>44.15</var>and duly audited by an independent chartered accountant.<br />
         		<a id="pl.44.16"></a><var>44.16</var>(b) For these insurers the letter required in subdivision 5 shall state that the <br />
         		<a id="pl.44.17"></a><var>44.17</var>accountant is aware of the requirements relating to the annual audited statement filed <br />
         		<a id="pl.44.18"></a><var>44.18</var>with the commissioner under subdivision 2, and shall affirm that the opinion expressed <br />
         		<a id="pl.44.19"></a><var>44.19</var>is in conformity with those requirements.<br />
         		<a id="pl.44.20"></a><var>44.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 20. <b>Commercial mortgage loan valuation procedures.</b> A report of the <br />
         		<a id="pl.44.21"></a><var>44.21</var>independent certified public accountant that performs the audit of an insurer's annual <br />
         		<a id="pl.44.22"></a><var>44.22</var>statement as required under subdivision 2, shall be filed and contain a statement as to <br />
         		<a id="pl.44.23"></a><var>44.23</var>whether anything in connection with the audit came to the accountant's attention that <br />
         		<a id="pl.44.24"></a><var>44.24</var>caused the accountant to believe that the insurer failed to adopt and consistently apply the <br />
         		<a id="pl.44.25"></a><var>44.25</var>valuation procedures as required by sections 
         <statute_ref>60A.122</statute_ref> and 
         <statute_ref>60A.123</statute_ref>. <br />
         		<a id="pl.44.26"></a><var>44.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 21. <b>Examinations.</b> (a) The commissioner or a designated representative shall <br />
         		<a id="pl.44.27"></a><var>44.27</var>determine the nature, scope, and frequency of examinations under this section conducted <br />
         		<a id="pl.44.28"></a><var>44.28</var>by examiners under section 
         <statute_ref>60A.031</statute_ref>. These examinations may cover all aspects of the <br />
         		<a id="pl.44.29"></a><var>44.29</var>insurer's assets, condition, affairs, and operations and may include and be supplemented <br />
         		<a id="pl.44.30"></a><var>44.30</var>by audit procedures performed by independent certified public accountants. Scheduling <br />
         		<a id="pl.44.31"></a><var>44.31</var>of examinations will take into account all relevant matters with respect to the insurer's <br />
         		<a id="pl.44.32"></a><var>44.32</var>condition, including results of the National Association of Insurance Commissioners, <br />
         		<a id="pl.44.33"></a><var>44.33</var>Insurance Regulatory Information Systems, changes in management, results of market <br />
         		<a id="pl.44.34"></a><var>44.34</var>conduct examinations, and audited financial reports. The type of examinations performed <br />
         		<a id="pl.44.35"></a><var>44.35</var>by examiners under this section must be compliance examinations, targeted examinations, <br />
         		<a id="pl.44.36"></a><var>44.36</var>and comprehensive examinations. <br />
         		<a id="pl.45.1"></a><var>45.1</var>(b) Compliance examinations will consist of a review of the accountant's workpapers <br />
         		<a id="pl.45.2"></a><var>45.2</var>defined under this section and a general review of the insurer's corporate affairs and <br />
         		<a id="pl.45.3"></a><var>45.3</var>insurance operations to determine compliance with the Minnesota insurance laws and <br />
         		<a id="pl.45.4"></a><var>45.4</var>the rules of the Department of Commerce. The examiners may perform alternative or <br />
         		<a id="pl.45.5"></a><var>45.5</var>additional examination procedures to supplement those performed by the accountant <br />
         		<a id="pl.45.6"></a><var>45.6</var>when the examiners determine that the procedures are necessary to verify the financial <br />
         		<a id="pl.45.7"></a><var>45.7</var>condition of the insurer.<br />
         		<a id="pl.45.8"></a><var>45.8</var>(c) Targeted examinations may cover limited areas of the insurer's operations as <br />
         		<a id="pl.45.9"></a><var>45.9</var>the commissioner may deem appropriate.<br />
         		<a id="pl.45.10"></a><var>45.10</var>(d) Comprehensive examinations will be performed when the report of the <br />
         		<a id="pl.45.11"></a><var>45.11</var>accountant as provided for in subdivision 7, paragraph (b), the notification required by <br />
         		<a id="pl.45.12"></a><var>45.12</var>subdivision 7, paragraph (c), the results of compliance or targeted examinations, or other <br />
         		<a id="pl.45.13"></a><var>45.13</var>circumstances indicate in the judgment of the commissioner or a designated representative <br />
         		<a id="pl.45.14"></a><var>45.14</var>that a complete examination of the condition and affairs of the insurer is necessary.<br />
         		<a id="pl.45.15"></a><var>45.15</var>(e) Upon completion of each targeted, compliance, or comprehensive examination, <br />
         		<a id="pl.45.16"></a><var>45.16</var>the examiner appointed by the commissioner shall make a full and true report on the <br />
         		<a id="pl.45.17"></a><var>45.17</var>results of the examination. Each report shall include a general description of the audit <br />
         		<a id="pl.45.18"></a><var>45.18</var>procedures performed by the examiners and the procedures of the accountant that <br />
         		<a id="pl.45.19"></a><var>45.19</var>the examiners may have utilized to supplement their examination procedures and the <br />
         		<a id="pl.45.20"></a><var>45.20</var>procedures that were performed by the registered independent certified public accountant <br />
         		<a id="pl.45.21"></a><var>45.21</var>if included as a supplement to the examination.<br />
         		<a id="pl.45.22"></a><var>45.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 22. <b>Penalties.</b> An annual statement, report, or document related to the <br />
         		<a id="pl.45.23"></a><var>45.23</var>business of insurance must not be filed with the commissioner or issued to the public if it <br />
         		<a id="pl.45.24"></a><var>45.24</var>is signed by anyone who is represented in the instrument as an "accountant," unless the <br />
         		<a id="pl.45.25"></a><var>45.25</var>person is qualified as defined by this section. A violation of this subdivision is a violation <br />
         		<a id="pl.45.26"></a><var>45.26</var>of section 
         <statute_ref>72A.19</statute_ref> and punishable in accordance with section 
         <statute_ref>72A.25</statute_ref>.<br />
         		<a id="pl.45.27"></a><var>45.27</var><b>EFFECTIVE DATE.</b>(a) Domestic insurers retaining a certified public accountant <br />
         		<a id="pl.45.28"></a><var>45.28</var>on the effective date of this section who qualify as independent shall comply with this <br />
         		<a id="pl.45.29"></a><var>45.29</var>section for the year ending December 31, 2010, and each year thereafter unless the <br />
         		<a id="pl.45.30"></a><var>45.30</var>commissioner permits otherwise.<br />
         		<a id="pl.45.31"></a><var>45.31</var>(b) Domestic insurers not retaining a certified public accountant on the effective <br />
         		<a id="pl.45.32"></a><var>45.32</var>date of this section who qualifies as independent shall meet the following schedule for <br />
         		<a id="pl.45.33"></a><var>45.33</var>compliance unless the commissioner permits otherwise.<br />
         		<a id="pl.45.34"></a><var>45.34</var>(1) As of December 31, 2010, file with the commissioner an audited financial report.<br />
         		<a id="pl.45.35"></a><var>45.35</var>(2) For the year ending December 31, 2010, and each year thereafter, such insurers <br />
         		<a id="pl.45.36"></a><var>45.36</var>shall file with the commissioner all reports and communication required by this section.<br />
         		<a id="pl.46.1"></a><var>46.1</var>(c) Foreign insurers shall comply with this section for the year ending December 31, <br />
         		<a id="pl.46.2"></a><var>46.2</var>2010, and each year thereafter, unless the commissioner permits otherwise.<br />
         		<a id="pl.46.3"></a><var>46.3</var>(d) The requirements of subdivision 7, paragraph (b), are in effect for audits of the <br />
         		<a id="pl.46.4"></a><var>46.4</var>year beginning January 1, 2010, and thereafter.<br />
         		<a id="pl.46.5"></a><var>46.5</var>(e) The requirements of subdivision 15 are in effect January 1, 2010. An insurer or <br />
         		<a id="pl.46.6"></a><var>46.6</var>group of insurers that is not required to have independent audit committee members or <br />
         		<a id="pl.46.7"></a><var>46.7</var>only a majority of independent audit committee members, as opposed to a supermajority, <br />
         		<a id="pl.46.8"></a><var>46.8</var>because the total written and assumed premium is below the threshold and subsequently <br />
         		<a id="pl.46.9"></a><var>46.9</var>becomes subject to one of the independence requirements due to changes in premium has <br />
         		<a id="pl.46.10"></a><var>46.10</var>one year following the year the threshold is exceeded, but not earlier than January 1, <br />
         		<a id="pl.46.11"></a><var>46.11</var>2010, to comply with the independence requirements. Likewise, an insurer that becomes <br />
         		<a id="pl.46.12"></a><var>46.12</var>subject to one of the independence requirements as a result of a business combination <br />
         		<a id="pl.46.13"></a><var>46.13</var>has one calendar year following the date of acquisition or combination to comply with <br />
         		<a id="pl.46.14"></a><var>46.14</var>the independence requirements.<br />
         		<a id="pl.46.15"></a><var>46.15</var>(f) An insurer or group of insurers that is not required to file a report because the total <br />
         		<a id="pl.46.16"></a><var>46.16</var>written premium is below the threshold and subsequently becomes subject to the reporting <br />
         		<a id="pl.46.17"></a><var>46.17</var>requirements has two years following the year the threshold is exceeded, but not earlier <br />
         		<a id="pl.46.18"></a><var>46.18</var>than December 31, 2010, to file a report. Likewise, an insurer acquired in a business <br />
         		<a id="pl.46.19"></a><var>46.19</var>combination has two calendar years following the date of acquisition or combination to <br />
         		<a id="pl.46.20"></a><var>46.20</var>comply with the reporting requirements.<br />
         		<a id="pl.46.21"></a><var>46.21</var>(g) The requirements and provisions contained in this section are effective January <br />
         		<a id="pl.46.22"></a><var>46.22</var>1, 2010, and thereafter.<br />
         		<br />
         		<a id="bill.1.12.0"></a><a id="pl.46.23"></a><var>46.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2008, section 60B.03, subdivision 15, is amended to read:<br />
         		<a id="pl.46.24"></a><var>46.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Insolvency.</b> "Insolvency" means:<br />
         		<a id="pl.46.25"></a><var>46.25</var>(a) For an insurer organized under sections 
         <statute_ref>67A.01</statute_ref> to 
         <statute_ref>67A.26</statute_ref>, the inability to pay <br />
         		<a id="pl.46.26"></a><var>46.26</var>any uncontested debt as it becomes due or any other loss within 30 days after the due date <br />
         		<a id="pl.46.27"></a><var>46.27</var>specified in the first assessment notice issued pursuant to section 
         <statute_ref>67A.17</statute_ref>.  <br />
         		<a id="pl.46.28"></a><var>46.28</var>(b) For any other insurer, that it is unable to pay its debts or meet its obligations <br />
         		<a id="pl.46.29"></a><var>46.29</var>as they mature or that its assets do not exceed its liabilities plus the greater of (1) any <br />
         		<a id="pl.46.30"></a><var>46.30</var>capital and surplus required by law to be constantly maintained, or (2) its authorized and <br />
         		<a id="pl.46.31"></a><var>46.31</var>issued capital stock. For purposes of this subdivision, "assets" includes one-half of the <br />
         		<a id="pl.46.32"></a><var>46.32</var>maximum total assessment liability of the policyholders of the insurer, and "liabilities" <br />
         		<a id="pl.46.33"></a><var>46.33</var>includes reserves required by law. For policies issued on the basis of unlimited assessment <br />
         		<a id="pl.46.34"></a><var>46.34</var>liability, the maximum total liability, for purposes of determining solvency only, shall be <br />
         		<a id="pl.47.1"></a><var>47.1</var>deemed to be that amount that could be obtained if there were 100 percent collection of an <br />
         		<a id="pl.47.2"></a><var>47.2</var>assessment at the rate of ten mills per dollar of insurance written by it and in force.<br />
         		<br />
         		<a id="bill.1.13.0"></a><a id="pl.47.3"></a><var>47.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2008, section 60L.02, subdivision 3, is amended to read:<br />
         		<a id="pl.47.4"></a><var>47.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Additional requirements.</b> (a) In order to be eligible to be governed by <br />
         		<a id="pl.47.5"></a><var>47.5</var>sections 
         <statute_ref>60L.01</statute_ref> to 
         <statute_ref>60L.15</statute_ref>, the insurer must meet the requirements specified under this <br />
         		<a id="pl.47.6"></a><var>47.6</var>subdivision.  <br />
         		<a id="pl.47.7"></a><var>47.7</var>(b) The insurer shall:<br />
         		<a id="pl.47.8"></a><var>47.8</var>(1) have been in continuous operation for a minimum of five years; and<br />
         		<a id="pl.47.9"></a><var>47.9</var>(2) maintain a minimum claims-paying, financial strength, or equivalent rating from <br />
         		<a id="pl.47.10"></a><var>47.10</var>at least one nationally recognized statistical rating organization in one of the organization's <br />
         		<a id="pl.47.11"></a><var>47.11</var>three highest rating categories for the time period during which sections 
         <statute_ref>60L.01</statute_ref> to 
         <statute_ref>60L.15</statute_ref> <br />
         		<a id="pl.47.12"></a><var>47.12</var>apply to the insurer. For purposes of this subdivision, the rating must be based on a <br />
         		<a id="pl.47.13"></a><var>47.13</var>review of the insurer by the nationally recognized statistical rating organization with the <br />
         		<a id="pl.47.14"></a><var>47.14</var>cooperation of the insurer; must not depend on a guarantee or other credit enhancement <br />
         		<a id="pl.47.15"></a><var>47.15</var>from another entity; and must not be modified or otherwise qualified to show dependence <br />
         		<a id="pl.47.16"></a><var>47.16</var>of the rating on the performance or a contractual obligation of, or the insurer's affiliation <br />
         		<a id="pl.47.17"></a><var>47.17</var>with, another insurer.  <br />
         		<a id="pl.47.18"></a><var>47.18</var>(c) The insurer or an affiliate, as defined in section 
         <statute_ref>60D.15, subdivision 2</statute_ref>, of the <br />
         		<a id="pl.47.19"></a><var>47.19</var>insurer shall employ at least one individual as a professional investment manager for <br />
         		<a id="pl.47.20"></a><var>47.20</var>the insurer's investments whom the board of directors or trustees of the insurer finds <br />
         		<a id="pl.47.21"></a><var>47.21</var>is qualified on the basis of experience, education or training, competence, personal <br />
         		<a id="pl.47.22"></a><var>47.22</var>integrity, and who conducts professional investment management activities in accordance <br />
         		<a id="pl.47.23"></a><var>47.23</var>with the Code of Ethics and Standards of Professional Conduct of the Association for <br />
         		<a id="pl.47.24"></a><var>47.24</var>Investment Management and Research. For purposes of complying with this paragraph, <br />
         		<a id="pl.47.25"></a><var>47.25</var>an employee of an affiliate may only be used if they are responsible for managing the <br />
         		<a id="pl.47.26"></a><var>47.26</var>insurer's investments.  <br />
         		<a id="pl.47.27"></a><var>47.27</var>(d) The board of directors of the insurer must annually adopt a resolution finding <br />
         		<a id="pl.47.28"></a><var>47.28</var>that the insurer or an affiliate, as defined in section 
         <statute_ref>60D.15, subdivision 2</statute_ref>, of the insurer <br />
         		<a id="pl.47.29"></a><var>47.29</var>has employed a professional investment manager for the insurer's investments with <br />
         		<a id="pl.47.30"></a><var>47.30</var>sufficient expertise and has sufficient other resources to implement and monitor the <br />
         		<a id="pl.47.31"></a><var>47.31</var>insurer's investment policies and strategies.  <br />
         		<a id="pl.47.32"></a><var>47.32</var>(e) In the report required under section 
         <statute_ref>60A.129 60A.1291, subdivision 3 12</statute_ref>, <br />
         		<a id="pl.47.33"></a><var>47.33</var>paragraph (l), the insurer's independent auditor shall not have identified any significant <br />
         		<a id="pl.47.34"></a><var>47.34</var>deficiencies in the insurer's internal control structure related to investments during any of <br />
         		<a id="pl.48.1"></a><var>48.1</var>the five years immediately preceding the date on which sections 
         <statute_ref>60L.01</statute_ref> to 
         <statute_ref>60L.15</statute_ref> begin to <br />
         		<a id="pl.48.2"></a><var>48.2</var>apply to the insurer, and as long as sections 
         <statute_ref>60L.01</statute_ref> to 
         <statute_ref>60L.15</statute_ref> apply to the insurer.  <br />
         		<br />
         		<a id="bill.1.14.0"></a><a id="pl.48.3"></a><var>48.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. <b>[61A.258] PRENEED INSURANCE PRODUCTS; MINIMUM </b><br />
         		<a id="pl.48.4"></a><var>48.4</var><b>MORTALITY STANDARDS FOR RESERVES AND NONFORFEITURE VALUES.</b><br />
         		<a id="pl.48.5"></a><var>48.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> For the purposes of this section, the following terms <br />
         		<a id="pl.48.6"></a><var>48.6</var>have the meanings given them:<br />
         		<a id="pl.48.7"></a><var>48.7</var>(1) "2001 CSO Mortality Table (2001 CSO)" means that mortality table, consisting <br />
         		<a id="pl.48.8"></a><var>48.8</var>of separate rates of mortality for male and female lives, developed by the American <br />
         		<a id="pl.48.9"></a><var>48.9</var>Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table <br />
         		<a id="pl.48.10"></a><var>48.10</var>developed by the Society of Actuaries Individual Life Insurance Valuation Mortality <br />
         		<a id="pl.48.11"></a><var>48.11</var>Task Force, and adopted by the National Association of Insurance Commissioners <br />
         		<a id="pl.48.12"></a><var>48.12</var>(NAIC) in December 2002. The 2001 CSO Mortality Table (2001 CSO) is included in <br />
         		<a id="pl.48.13"></a><var>48.13</var>the Proceedings of the NAIC (2nd Quarter 2002). Unless the context indicates otherwise, <br />
         		<a id="pl.48.14"></a><var>48.14</var>the "2001 CSO Mortality Table (2001 CSO)" includes both the ultimate form of that <br />
         		<a id="pl.48.15"></a><var>48.15</var>table and the select and ultimate form of that table and includes both the smoker and <br />
         		<a id="pl.48.16"></a><var>48.16</var>nonsmoker mortality tables and the composite mortality tables. It also includes both the <br />
         		<a id="pl.48.17"></a><var>48.17</var>age-nearest-birthday and age-last-birthday bases of the mortality tables;<br />
         		<a id="pl.48.18"></a><var>48.18</var>(2) "Ultimate 1980 CSO" means the Commissioners' 1980 Standard Ordinary Life <br />
         		<a id="pl.48.19"></a><var>48.19</var>Valuation Mortality Tables (1980 CSO) without ten-year selection factors, incorporated <br />
         		<a id="pl.48.20"></a><var>48.20</var>into the 1980 amendments to the NAIC Standard Valuation Law approved in December <br />
         		<a id="pl.48.21"></a><var>48.21</var>1983; and<br />
         		<a id="pl.48.22"></a><var>48.22</var>(3) "preneed insurance" is any life insurance policy or certificate that is issued <br />
         		<a id="pl.48.23"></a><var>48.23</var>in combination with, in support of, with an assignment to, or as a guarantee for a <br />
         		<a id="pl.48.24"></a><var>48.24</var>prearrangement agreement for goods and services to be provided at the time of and <br />
         		<a id="pl.48.25"></a><var>48.25</var>immediately following the death of the insured. Goods and services may include, but <br />
         		<a id="pl.48.26"></a><var>48.26</var>are not limited to embalming, cremation, body preparation, viewing or visitation, coffin <br />
         		<a id="pl.48.27"></a><var>48.27</var>or urn, memorial stone, and transportation of the deceased. The status of the policy or <br />
         		<a id="pl.48.28"></a><var>48.28</var>contract as preneed insurance is determined at the time of issue in accordance with the <br />
         		<a id="pl.48.29"></a><var>48.29</var>policy form filing.<br />
         		<a id="pl.48.30"></a><var>48.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Minimum valuation mortality standards.</b> For preneed insurance <br />
         		<a id="pl.48.31"></a><var>48.31</var>contracts, the minimum mortality standard for determining reserve liabilities and <br />
         		<a id="pl.48.32"></a><var>48.32</var>nonforfeiture values for both male and female insureds shall be the Ultimate 1980 CSO.<br />
         		<a id="pl.48.33"></a><var>48.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Minimum valuation interest rate standards.</b> (a) The interest rates used <br />
         		<a id="pl.48.34"></a><var>48.34</var>in determining the minimum standard for valuation of preneed insurance shall be the <br />
         		<a id="pl.48.35"></a><var>48.35</var>calendar year statutory valuation interest rates as defined in section 61A.25.<br />
         		<a id="pl.49.1"></a><var>49.1</var>(b) The interest rates used in determining the minimum standard for nonforfeiture <br />
         		<a id="pl.49.2"></a><var>49.2</var>values for preneed insurance shall be the calendar year statutory nonforfeiture interest <br />
         		<a id="pl.49.3"></a><var>49.3</var>rates as defined in section 61A.24.<br />
         		<a id="pl.49.4"></a><var>49.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Minimum valuation method standards.</b> (a) The method used in <br />
         		<a id="pl.49.5"></a><var>49.5</var>determining the standard for the minimum valuation of reserves of preneed insurance shall <br />
         		<a id="pl.49.6"></a><var>49.6</var>be the method defined in section 61A.25.<br />
         		<a id="pl.49.7"></a><var>49.7</var>(b) The method used in determining the standard for the minimum nonforfeiture <br />
         		<a id="pl.49.8"></a><var>49.8</var>values for preneed insurance shall be the method defined in section 61A.24.<br />
         		<a id="pl.49.9"></a><var>49.9</var><b>EFFECTIVE DATE; TRANSITION RULES.</b>(a) This section is effective January <br />
         		<a id="pl.49.10"></a><var>49.10</var>1, 2009, and applies to preneed insurance policies and certificates issued on or after that <br />
         		<a id="pl.49.11"></a><var>49.11</var>date.<br />
         		<a id="pl.49.12"></a><var>49.12</var>(b) For preneed insurance policies issued on or after the effective date of this <br />
         		<a id="pl.49.13"></a><var>49.13</var>section and before January 1, 2012, the 2001 CSO may be used as the minimum standard <br />
         		<a id="pl.49.14"></a><var>49.14</var>for reserves and minimum standard for nonforfeiture benefits for both male and female <br />
         		<a id="pl.49.15"></a><var>49.15</var>insureds.<br />
         		<a id="pl.49.16"></a><var>49.16</var>(c) If an insurer elects to use the 2001 CSO as a minimum standard for any policy <br />
         		<a id="pl.49.17"></a><var>49.17</var>issued on or after the effective date of section 1 and before January 1, 2012, the insurer <br />
         		<a id="pl.49.18"></a><var>49.18</var>shall provide, as a part of the actuarial opinion memorandum submitted in support of <br />
         		<a id="pl.49.19"></a><var>49.19</var>the company's asset adequacy testing, an annual written notification to the domiciliary <br />
         		<a id="pl.49.20"></a><var>49.20</var>commissioner. The notification shall include:<br />
         		<a id="pl.49.21"></a><var>49.21</var>(1) a complete list of all preneed policy forms that use the 2001 CSO as a minimum <br />
         		<a id="pl.49.22"></a><var>49.22</var>standard;<br />
         		<a id="pl.49.23"></a><var>49.23</var>(2) a certification signed by the appointed actuary stating that the reserve <br />
         		<a id="pl.49.24"></a><var>49.24</var>methodology employed by the company in determining reserves for the preneed policies <br />
         		<a id="pl.49.25"></a><var>49.25</var>issued after the effective date and using the 2001 CSO as a minimum standard, develops <br />
         		<a id="pl.49.26"></a><var>49.26</var>adequate reserves (For the purposes of this certification, the preneed insurance policies <br />
         		<a id="pl.49.27"></a><var>49.27</var>using the 2001 CSO as a minimum standard cannot be aggregated with any other <br />
         		<a id="pl.49.28"></a><var>49.28</var>policies.); and<br />
         		<a id="pl.49.29"></a><var>49.29</var>(3) supporting information regarding the adequacy of reserves for preneed insurance <br />
         		<a id="pl.49.30"></a><var>49.30</var>policies issued after the effective date of section 1 and using the 2001 CSO as a minimum <br />
         		<a id="pl.49.31"></a><var>49.31</var>standard for reserves.<br />
         		<a id="pl.49.32"></a><var>49.32</var>(d) Preneed insurance policies issued on or after January 1, 2012, must use the <br />
         		<a id="pl.49.33"></a><var>49.33</var>Ultimate 1980 CSO in the calculation of minimum nonforfeiture values and minimum <br />
         		<a id="pl.49.34"></a><var>49.34</var>reserves.<br />
         		<br />
         		<a id="bill.1.15.0"></a><a id="pl.49.35"></a><var>49.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2008, section 61B.19, subdivision 4, is amended to read:<br />
         		<a id="pl.50.1"></a><var>50.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Limitation of benefits.</b> The benefits for which the association may become <br />
         		<a id="pl.50.2"></a><var>50.2</var>liable shall in no event exceed the lesser of:<br />
         		<a id="pl.50.3"></a><var>50.3</var>(1) the contractual obligations for which the insurer is liable or would have been <br />
         		<a id="pl.50.4"></a><var>50.4</var>liable if it were not an impaired or insolvent insurer; or<br />
         		<a id="pl.50.5"></a><var>50.5</var>(2) subject to the limitation in clause (5), with respect to any one life, regardless of <br />
         		<a id="pl.50.6"></a><var>50.6</var>the number of policies or contracts:<br />
         		<a id="pl.50.7"></a><var>50.7</var>(i) $300,000 $500,000 in life insurance death benefits, but not more than $100,000 <br />
         		<a id="pl.50.8"></a><var>50.8</var>$130,000 in net cash surrender and net cash withdrawal values for life insurance;<br />
         		<a id="pl.50.9"></a><var>50.9</var>(ii) $300,000 $500,000 in health insurance benefits, including any net cash surrender <br />
         		<a id="pl.50.10"></a><var>50.10</var>and net cash withdrawal values;<br />
         		<a id="pl.50.11"></a><var>50.11</var>(iii) $100,000 $250,000 in annuity net cash surrender and net cash withdrawal values;<br />
         		<a id="pl.50.12"></a><var>50.12</var>(iv) $300,000 $410,000 in present value of annuity benefits for structured settlement <br />
         		<a id="pl.50.13"></a><var>50.13</var>annuities or for annuities in regard to which periodic annuity benefits, for a period of not <br />
         		<a id="pl.50.14"></a><var>50.14</var>less than the annuitant's lifetime or for a period certain of not less than ten years, have <br />
         		<a id="pl.50.15"></a><var>50.15</var>begun to be paid, on or before the date of impairment or insolvency; or<br />
         		<a id="pl.50.16"></a><var>50.16</var>(3) subject to the limitations in clauses (5) and (6), with respect to each individual <br />
         		<a id="pl.50.17"></a><var>50.17</var>resident participating in a retirement plan, except a defined benefit plan, established under <br />
         		<a id="pl.50.18"></a><var>50.18</var>section 401, 403(b), or 457 of the Internal Revenue Code of 1986, as amended through <br />
         		<a id="pl.50.19"></a><var>50.19</var>December 31, 1992, covered by an unallocated annuity contract, or the beneficiaries <br />
         		<a id="pl.50.20"></a><var>50.20</var>of each such individual if deceased, in the aggregate, $100,000 $250,000 in net cash <br />
         		<a id="pl.50.21"></a><var>50.21</var>surrender and net cash withdrawal values;<br />
         		<a id="pl.50.22"></a><var>50.22</var>(4) where no coverage limit has been specified for a covered policy or benefit, the <br />
         		<a id="pl.50.23"></a><var>50.23</var>coverage limit shall be $300,000 $500,000 in present value;<br />
         		<a id="pl.50.24"></a><var>50.24</var>(5) in no event shall the association be liable to expend more than $300,000 <br />
         		<a id="pl.50.25"></a><var>50.25</var>$500,000 in the aggregate with respect to any one life under clause (2), items (i), (ii), (iii), <br />
         		<a id="pl.50.26"></a><var>50.26</var>(iv), and clause (4), and any one individual under clause (3);<br />
         		<a id="pl.50.27"></a><var>50.27</var>(6) in no event shall the association be liable to expend more than $7,500,000 <br />
         		<a id="pl.50.28"></a><var>50.28</var>$10,000,000 with respect to all unallocated annuities of a retirement plan, except a defined <br />
         		<a id="pl.50.29"></a><var>50.29</var>benefit plan, established under section 401, 403(b), or 457 of the Internal Revenue Code <br />
         		<a id="pl.50.30"></a><var>50.30</var>of 1986, as amended through December 31, 1992. If total claims from a plan exceed <br />
         		<a id="pl.50.31"></a><var>50.31</var>$7,500,000 $10,000,000, the $7,500,000 $10,000,000 shall be prorated among the <br />
         		<a id="pl.50.32"></a><var>50.32</var>claimants;<br />
         		<a id="pl.50.33"></a><var>50.33</var>(7) for purposes of applying clause (2)(ii) and clause (5), with respect only to <br />
         		<a id="pl.50.34"></a><var>50.34</var>health insurance benefits, the term "any one life" applies to each individual covered by a <br />
         		<a id="pl.50.35"></a><var>50.35</var>health insurance policy;<br />
         		<a id="pl.51.1"></a><var>51.1</var>(8) where covered contractual obligations are equal to or less than the limits stated in <br />
         		<a id="pl.51.2"></a><var>51.2</var>this subdivision, the association will pay the difference between the covered contractual <br />
         		<a id="pl.51.3"></a><var>51.3</var>obligations and the amount credited by the estate of the insolvent or impaired insurer, if <br />
         		<a id="pl.51.4"></a><var>51.4</var>that amount has been determined or, if it has not, the covered contractual limit, subject <br />
         		<a id="pl.51.5"></a><var>51.5</var>to the association's right of subrogation;<br />
         		<a id="pl.51.6"></a><var>51.6</var>(9) where covered contractual obligations exceed the limits stated in this subdivision, <br />
         		<a id="pl.51.7"></a><var>51.7</var>the amount payable by the association will be determined as though the covered <br />
         		<a id="pl.51.8"></a><var>51.8</var>contractual obligations were equal to those limits. In making the determination, the estate <br />
         		<a id="pl.51.9"></a><var>51.9</var>shall be deemed to have credited the covered person the same amount as the estate would <br />
         		<a id="pl.51.10"></a><var>51.10</var>credit a covered person with contractual obligations equal to those limits; or<br />
         		<a id="pl.51.11"></a><var>51.11</var>(10) the following illustrates how the principles stated in clauses (8) and (9) apply. <br />
         		<a id="pl.51.12"></a><var>51.12</var>The example illustrated concerns hypothetical claims subject to the limit stated in clause <br />
         		<a id="pl.51.13"></a><var>51.13</var>(2)(iii). The principles stated in clauses (8) and (9), and illustrated in this clause, apply <br />
         		<a id="pl.51.14"></a><var>51.14</var>to claims subject to any limits stated in this subdivision.<br />
         		
         <div class="xtend_ce"><a id="pl.51.15"></a><var>51.15</var>CONTRACTUAL OBLIGATIONS OF:<br />
            		
         </div>
         <table>
            <col width="50px"></col>
            <col width="11.5"></col>
            <col width="15"></col>
            <col width="5"></col>
            <col width="8.5"></col>
            <col width="11.5"></col>
            <col width="5"></col>
            <col width="8.5"></col>
            <tr>
               <td><a id="pl.51.16"></a><var>51.16</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td></td>
               <td></td>
               <td align="right">$50,000<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.51.17"></a><var>51.17</var><br />
                  		<a id="pl.51.18"></a><var>51.18</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td></td>
               <td align="center">Estate<br />
                  		
               </td>
               <td></td>
               <td colspan="2" align="right">Guaranty <br />
                  		Association<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.19"></a><var>51.19</var><br />
                  		<a id="pl.51.20"></a><var>51.20</var><br />
                  		
               </td>
               <td valign="top">0% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td align="right" valign="top"></td>
               <td align="right" valign="top">$ 0<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 50,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.21"></a><var>51.21</var><br />
                  		<a id="pl.51.22"></a><var>51.22</var><br />
                  		
               </td>
               <td valign="top">25% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 12,500<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 37,500<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.23"></a><var>51.23</var><br />
                  		<a id="pl.51.24"></a><var>51.24</var><br />
                  		
               </td>
               <td valign="top">50% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 25,000<br />
                  		
               </td>
               <td valign="top"></td>
               <td align="right" valign="top"></td>
               <td align="right" valign="top">$ 25,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.25"></a><var>51.25</var><br />
                  		<a id="pl.51.26"></a><var>51.26</var><br />
                  		
               </td>
               <td valign="top">75% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 37,500<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 12,500<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.27"></a><var>51.27</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td></td>
               <td></td>
               <td align="right">$100,000<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.51.28"></a><var>51.28</var><br />
                  		<a id="pl.51.29"></a><var>51.29</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td></td>
               <td align="center">Estate<br />
                  		
               </td>
               <td></td>
               <td colspan="2" align="right">Guaranty <br />
                  		Association<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.30"></a><var>51.30</var><br />
                  		<a id="pl.51.31"></a><var>51.31</var><br />
                  		
               </td>
               <td valign="top">0% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 0<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 100,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.32"></a><var>51.32</var><br />
                  		<a id="pl.51.33"></a><var>51.33</var><br />
                  		
               </td>
               <td valign="top">25% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 25,000<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 75,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.34"></a><var>51.34</var><br />
                  		<a id="pl.51.35"></a><var>51.35</var><br />
                  		
               </td>
               <td valign="top">50% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 50,000<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 50,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.36"></a><var>51.36</var><br />
                  		<a id="pl.51.37"></a><var>51.37</var><br />
                  		
               </td>
               <td valign="top">75% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 75,000<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 25,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.38"></a><var>51.38</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td></td>
               <td></td>
               <td align="right">$200,000<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.51.39"></a><var>51.39</var><br />
                  		<a id="pl.51.40"></a><var>51.40</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td></td>
               <td align="center">Estate<br />
                  		
               </td>
               <td></td>
               <td colspan="2" align="right">Guaranty <br />
                  		Association<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.51.41"></a><var>51.41</var><br />
                  		<a id="pl.51.42"></a><var>51.42</var><br />
                  		
               </td>
               <td valign="top">0% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 0<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 100,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.52.1"></a><var>52.1</var><br />
                  		<a id="pl.52.2"></a><var>52.2</var><br />
                  		
               </td>
               <td valign="top">25% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 50,000<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 75,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.52.3"></a><var>52.3</var><br />
                  		<a id="pl.52.4"></a><var>52.4</var><br />
                  		
               </td>
               <td valign="top">50% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 100,000<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 50,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.52.5"></a><var>52.5</var><br />
                  		<a id="pl.52.6"></a><var>52.6</var><br />
                  		
               </td>
               <td valign="top">75% recovery <br />
                  		from estate<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 150,000<br />
                  		
               </td>
               <td valign="top"></td>
               <td valign="top"></td>
               <td align="right" valign="top">$ 25,000<br />
                  		
               </td>
            </tr>
         </table><a id="pl.52.7"></a><var>52.7</var>For purposes of this subdivision, the commissioner shall determine the discount rate <br />
         		<a id="pl.52.8"></a><var>52.8</var>to be used in determining the present value of annuity benefits.<br />
         		<a id="pl.52.9"></a><var>52.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.52.10"></a><var>52.10</var>and applies to member insurers who are first determined to be impaired or insolvent on or <br />
         		<a id="pl.52.11"></a><var>52.11</var>after that date. Member insurers who are subject to an order of impairment in effect on the <br />
         		<a id="pl.52.12"></a><var>52.12</var>effective date but are not declared insolvent until after the effective date shall continue to <br />
         		<a id="pl.52.13"></a><var>52.13</var>be governed by the law in effect prior to the effective date.<br />
         		<br />
         		<a id="bill.1.16.0"></a><a id="pl.52.14"></a><var>52.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2008, section 61B.28, subdivision 4, is amended to read:<br />
         		<a id="pl.52.15"></a><var>52.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Prohibited sales practice.</b> No person, including an insurer, agent, or <br />
         		<a id="pl.52.16"></a><var>52.16</var>affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the <br />
         		<a id="pl.52.17"></a><var>52.17</var>public, or cause directly or indirectly, to be made, published, disseminated, circulated, <br />
         		<a id="pl.52.18"></a><var>52.18</var>or placed before the public, in any newspaper, magazine, or other publication, or in the <br />
         		<a id="pl.52.19"></a><var>52.19</var>form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television <br />
         		<a id="pl.52.20"></a><var>52.20</var>station, or in any other way, an advertisement, announcement, or statement, written or <br />
         		<a id="pl.52.21"></a><var>52.21</var>oral, which uses the existence of the Minnesota Life and Health Insurance Guaranty <br />
         		<a id="pl.52.22"></a><var>52.22</var>Association for the purpose of sales, solicitation, or inducement to purchase any form of <br />
         		<a id="pl.52.23"></a><var>52.23</var>insurance covered by sections 
         <statute_ref>61B.18</statute_ref> to 
         <statute_ref>61B.32</statute_ref>. The notice required by subdivision 8 <br />
         		<a id="pl.52.24"></a><var>52.24</var>is not a violation of this subdivision nor is it a violation of this subdivision to explain <br />
         		<a id="pl.52.25"></a><var>52.25</var>verbally to an applicant or potential applicant the coverage provided by the Minnesota <br />
         		<a id="pl.52.26"></a><var>52.26</var>Life and Health Insurance Guaranty Association at any time during the application process <br />
         		<a id="pl.52.27"></a><var>52.27</var>or thereafter. This subdivision does not apply to the Minnesota Life and Health Insurance <br />
         		<a id="pl.52.28"></a><var>52.28</var>Guaranty Association or an entity that does not sell or solicit insurance. A person violating <br />
         		<a id="pl.52.29"></a><var>52.29</var>this section is guilty of a misdemeanor.  <br />
         		<br />
         		<a id="bill.1.17.0"></a><a id="pl.52.30"></a><var>52.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2008, section 61B.28, subdivision 8, is amended to read:<br />
         		<a id="pl.52.31"></a><var>52.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Form.</b> The form of notice referred to in subdivision 7, paragraph (a), <br />
         		<a id="pl.52.32"></a><var>52.32</var>is as follows:<br />
         		
         <div class="xtend_ce"><a id="pl.52.33"></a><var>52.33</var>"....................<br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.52.34"></a><var>52.34</var>....................<br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.52.35"></a><var>52.35</var>....................<br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.53.1"></a><var>53.1</var>(insert name, current address, and<br />
            		
         </div><a id="pl.53.2"></a><var>53.2</var>telephone number of insurer)<br />
         		
         <div class="xtend_ce"><a id="pl.53.3"></a><var>53.3</var>NOTICE CONCERNING POLICYHOLDER RIGHTS IN AN<br />
            		
         </div><a id="pl.53.4"></a><var>53.4</var>INSOLVENCY UNDER THE MINNESOTA LIFE AND HEALTH<br />
         		<a id="pl.53.5"></a><var>53.5</var>INSURANCE GUARANTY ASSOCIATION LAW<br />
         		<a id="pl.53.6"></a><var>53.6</var>If the insurer that issued your life, annuity, or health insurance policy becomes <br />
         		<a id="pl.53.7"></a><var>53.7</var>impaired or insolvent, you are entitled to compensation for your policy from the assets of <br />
         		<a id="pl.53.8"></a><var>53.8</var>that insurer. The amount you recover will depend on the financial condition of the insurer.<br />
         		<a id="pl.53.9"></a><var>53.9</var>In addition, residents of Minnesota who purchase life insurance, annuities, or health <br />
         		<a id="pl.53.10"></a><var>53.10</var>insurance from insurance companies authorized to do business in Minnesota are protected, <br />
         		<a id="pl.53.11"></a><var>53.11</var>SUBJECT TO LIMITS AND EXCLUSIONS, in the event the insurer becomes financially <br />
         		<a id="pl.53.12"></a><var>53.12</var>impaired or insolvent. This protection is provided by the Minnesota Life and Health <br />
         		<a id="pl.53.13"></a><var>53.13</var>Insurance Guaranty Association.<br />
         		
         <div class="xtend_ce"><a id="pl.53.14"></a><var>53.14</var>Minnesota Life and Health Insurance Guaranty Association<br />
            		
         </div><a id="pl.53.15"></a><var>53.15</var>(insert current<br />
         		<a id="pl.53.16"></a><var>53.16</var>address and telephone number)<br />
         		<a id="pl.53.17"></a><var>53.17</var>The maximum amount the guaranty association will pay for all policies issued on <br />
         		<a id="pl.53.18"></a><var>53.18</var>one life by the same insurer is limited to $300,000 $500,000. Subject to this $300,000 <br />
         		<a id="pl.53.19"></a><var>53.19</var>$500,000 limit, the guaranty association will pay up to $300,000 $500,000 in life <br />
         		<a id="pl.53.20"></a><var>53.20</var>insurance death benefits, $100,000 $130,000 in net cash surrender and net cash withdrawal <br />
         		<a id="pl.53.21"></a><var>53.21</var>values for life insurance, $300,000 $500,000 in health insurance benefits, including any <br />
         		<a id="pl.53.22"></a><var>53.22</var>net cash surrender and net cash withdrawal values, $100,000 $250,000 in annuity net <br />
         		<a id="pl.53.23"></a><var>53.23</var>cash surrender and net cash withdrawal values, $300,000 $410,000 in present value of <br />
         		<a id="pl.53.24"></a><var>53.24</var>annuity benefits for annuities which are part of a structured settlement or for annuities <br />
         		<a id="pl.53.25"></a><var>53.25</var>in regard to which periodic annuity benefits, for a period of not less than the annuitant's <br />
         		<a id="pl.53.26"></a><var>53.26</var>lifetime or for a period certain of not less than ten years, have begun to be paid on or <br />
         		<a id="pl.53.27"></a><var>53.27</var>before the date of impairment or insolvency, or if no coverage limit has been specified <br />
         		<a id="pl.53.28"></a><var>53.28</var>for a covered policy or benefit, the coverage limit shall be $300,000 $500,000 in present <br />
         		<a id="pl.53.29"></a><var>53.29</var>value. Unallocated annuity contracts issued to retirement plans, other than defined benefit <br />
         		<a id="pl.53.30"></a><var>53.30</var>plans, established under section 401, 403(b), or 457 of the Internal Revenue Code of <br />
         		<a id="pl.53.31"></a><var>53.31</var>1986, as amended through December 31, 1992, are covered up to $100,000 $250,000 in <br />
         		<a id="pl.53.32"></a><var>53.32</var>net cash surrender and net cash withdrawal values, for Minnesota residents covered by <br />
         		<a id="pl.53.33"></a><var>53.33</var>the plan provided, however, that the association shall not be responsible for more than <br />
         		<a id="pl.53.34"></a><var>53.34</var>$7,500,000 $10,000,000 in claims from all Minnesota residents covered by the plan. If <br />
         		<a id="pl.53.35"></a><var>53.35</var>total claims exceed $7,500,000 $10,000,000, the $7,500,000 $10,000,000 shall be prorated <br />
         		<a id="pl.53.36"></a><var>53.36</var>among all claimants. These are the maximum claim amounts. Coverage by the guaranty <br />
         		<a id="pl.53.37"></a><var>53.37</var>association is also subject to other substantial limitations and exclusions and requires <br />
         		<a id="pl.53.38"></a><var>53.38</var>continued residency in Minnesota. If your claim exceeds the guaranty association's limits, <br />
         		<a id="pl.54.1"></a><var>54.1</var>you may still recover a part or all of that amount from the proceeds of the liquidation of <br />
         		<a id="pl.54.2"></a><var>54.2</var>the insolvent insurer, if any exist. Funds to pay claims may not be immediately available. <br />
         		<a id="pl.54.3"></a><var>54.3</var>The guaranty association assesses insurers licensed to sell life and health insurance in <br />
         		<a id="pl.54.4"></a><var>54.4</var>Minnesota after the insolvency occurs. Claims are paid from this assessment.<br />
         		<a id="pl.54.5"></a><var>54.5</var>THE COVERAGE PROVIDED BY THE GUARANTY ASSOCIATION IS NOT <br />
         		<a id="pl.54.6"></a><var>54.6</var>A SUBSTITUTE FOR USING CARE IN SELECTING INSURANCE COMPANIES <br />
         		<a id="pl.54.7"></a><var>54.7</var>THAT ARE WELL MANAGED AND FINANCIALLY STABLE. IN SELECTING AN <br />
         		<a id="pl.54.8"></a><var>54.8</var>INSURANCE COMPANY OR POLICY, YOU SHOULD NOT RELY ON COVERAGE <br />
         		<a id="pl.54.9"></a><var>54.9</var>BY THE GUARANTY ASSOCIATION.<br />
         		<a id="pl.54.10"></a><var>54.10</var>THIS NOTICE IS REQUIRED BY MINNESOTA STATE LAW TO ADVISE <br />
         		<a id="pl.54.11"></a><var>54.11</var>POLICYHOLDERS OF LIFE, ANNUITY, OR HEALTH INSURANCE POLICIES <br />
         		<a id="pl.54.12"></a><var>54.12</var>OF THEIR RIGHTS IN THE EVENT THEIR INSURANCE CARRIER BECOMES <br />
         		<a id="pl.54.13"></a><var>54.13</var>FINANCIALLY INSOLVENT. THIS NOTICE IN NO WAY IMPLIES THAT THE <br />
         		<a id="pl.54.14"></a><var>54.14</var>COMPANY CURRENTLY HAS ANY TYPE OF FINANCIAL PROBLEMS. ALL LIFE, <br />
         		<a id="pl.54.15"></a><var>54.15</var>ANNUITY, AND HEALTH INSURANCE POLICIES ARE REQUIRED TO PROVIDE <br />
         		<a id="pl.54.16"></a><var>54.16</var>THIS NOTICE."<br />
         		<a id="pl.54.17"></a><var>54.17</var>Additional language may be added to the notice if approved by the commissioner <br />
         		<a id="pl.54.18"></a><var>54.18</var>prior to its use in the form. This section does not apply to fraternal benefit societies <br />
         		<a id="pl.54.19"></a><var>54.19</var>regulated under chapter 64B.<br />
         		<br />
         		<a id="bill.1.18.0"></a><a id="pl.54.20"></a><var>54.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. Minnesota Statutes 2008, section 67A.01, is amended to read:<br />
         		<a id="pl.54.21"></a><var>54.21</var><b>67A.01 NUMBER OF MEMBERS REQUIRED, PROPERTY AND </b><br />
         		<a id="pl.54.22"></a><var>54.22</var><b>TERRITORY.</b><br />
         		<a id="pl.54.23"></a><var>54.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Number of members.</b> (a) It shall be lawful for any number of <br />
         		<a id="pl.54.24"></a><var>54.24</var>persons, not less than 25, residing in adjoining townships counties in this state, who shall <br />
         		<a id="pl.54.25"></a><var>54.25</var>collectively own property worth at least $50,000, to form themselves into a corporation <br />
         		<a id="pl.54.26"></a><var>54.26</var>for mutual insurance against loss or damage by the perils listed in section 
         <statute_ref>67A.13</statute_ref>.  <br />
         		<a id="pl.54.27"></a><var>54.27</var>(b) Except as otherwise provided in this section, the company shall operate in no <br />
         		<a id="pl.54.28"></a><var>54.28</var>more than 150 adjoining townships in the aggregate at the same time. The company may, <br />
         		<a id="pl.54.29"></a><var>54.29</var>if approval has been granted by the commissioner, operate in more than 150 adjoining <br />
         		<a id="pl.54.30"></a><var>54.30</var>townships in the aggregate at the same time, subject to a maximum of 300 townships. <br />
         		<a id="pl.54.31"></a><var>54.31</var>If the company confines its operations to one county it may transact business in that <br />
         		<a id="pl.54.32"></a><var>54.32</var>county by so providing in its certificate of incorporation. In case of merger of two or <br />
         		<a id="pl.54.33"></a><var>54.33</var>more companies having contiguous territories, the surviving company in the merger may <br />
         		<a id="pl.54.34"></a><var>54.34</var>transact business in the entire territory of the merged companies, but the territory of the <br />
         		<a id="pl.54.35"></a><var>54.35</var>surviving company in the merger must not be larger than 300 townships.<br />
         		<a id="pl.55.1"></a><var>55.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Authorized territory.</b> (a) A township mutual fire insurance company may <br />
         		<a id="pl.55.2"></a><var>55.2</var>be authorized to write business in up to nine adjoining counties in the aggregate at the <br />
         		<a id="pl.55.3"></a><var>55.3</var>same time. If policyholder surplus is at least $500,000 as reported in the company's last <br />
         		<a id="pl.55.4"></a><var>55.4</var>annual financial statement filed with the commissioner, the company may, if approval has <br />
         		<a id="pl.55.5"></a><var>55.5</var>been granted by the commissioner, be authorized to write business in ten or more counties <br />
         		<a id="pl.55.6"></a><var>55.6</var>in the aggregate at the same time, subject to a maximum of 20 adjoining counties, in <br />
         		<a id="pl.55.7"></a><var>55.7</var>accordance with the following schedule:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="10"></col>
            <col width="9.9"></col>
            <col width="9.9"></col>
            <col width="10.1"></col>
            <col width="10.1"></col>
            <tr>
               <td><a id="pl.55.8"></a><var>55.8</var><br />
                  		<a id="pl.55.9"></a><var>55.9</var><br />
                  		
               </td>
               <td></td>
               <td>Number of <br />
                  		Counties<br />
                  		
               </td>
               <td></td>
               <td align="right">Surplus <br />
                  		Requirement<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.55.10"></a><var>55.10</var><br />
                  		
               </td>
               <td></td>
               <td>10<br />
                  		
               </td>
               <td></td>
               <td align="right">$500,000<br />
                  		
               </td>
               <td align="right"></td>
            </tr>
            <tr>
               <td><a id="pl.55.11"></a><var>55.11</var><br />
                  		
               </td>
               <td></td>
               <td>11<br />
                  		
               </td>
               <td></td>
               <td align="right">600,000<br />
                  		
               </td>
               <td align="right"></td>
            </tr>
            <tr>
               <td><a id="pl.55.12"></a><var>55.12</var><br />
                  		
               </td>
               <td></td>
               <td>12<br />
                  		
               </td>
               <td></td>
               <td align="right">700,000<br />
                  		
               </td>
               <td align="right"></td>
            </tr>
            <tr>
               <td><a id="pl.55.13"></a><var>55.13</var><br />
                  		
               </td>
               <td></td>
               <td>13<br />
                  		
               </td>
               <td></td>
               <td align="right">800,000<br />
                  		
               </td>
               <td align="right"></td>
            </tr>
            <tr>
               <td><a id="pl.55.14"></a><var>55.14</var><br />
                  		
               </td>
               <td></td>
               <td>14<br />
                  		
               </td>
               <td></td>
               <td align="right">900,000<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.55.15"></a><var>55.15</var><br />
                  		
               </td>
               <td></td>
               <td>15<br />
                  		
               </td>
               <td></td>
               <td align="right">1,000,000<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.55.16"></a><var>55.16</var><br />
                  		
               </td>
               <td></td>
               <td>16<br />
                  		
               </td>
               <td></td>
               <td align="right">1,100,000<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.55.17"></a><var>55.17</var><br />
                  		
               </td>
               <td></td>
               <td>17<br />
                  		
               </td>
               <td></td>
               <td align="right">1,200,000<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.55.18"></a><var>55.18</var><br />
                  		
               </td>
               <td></td>
               <td>18<br />
                  		
               </td>
               <td></td>
               <td align="right">1,300,000<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.55.19"></a><var>55.19</var><br />
                  		
               </td>
               <td></td>
               <td>19<br />
                  		
               </td>
               <td></td>
               <td align="right">1,400,000<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.55.20"></a><var>55.20</var><br />
                  		
               </td>
               <td></td>
               <td>20<br />
                  		
               </td>
               <td></td>
               <td align="right">1,500,000<br />
                  		
               </td>
               <td></td>
            </tr>
         </table><a id="pl.55.21"></a><var>55.21</var>(b) In the case of a merger of two or more companies having contiguous territories, <br />
         		<a id="pl.55.22"></a><var>55.22</var>the surviving company in the merger may transact business in the entire territory of the <br />
         		<a id="pl.55.23"></a><var>55.23</var>merged companies; however, the territory of the surviving company in the merger may not <br />
         		<a id="pl.55.24"></a><var>55.24</var>be larger than 20 counties.<br />
         		<a id="pl.55.25"></a><var>55.25</var>(c) A township mutual fire insurance company may write new and renewal insurance <br />
         		<a id="pl.55.26"></a><var>55.26</var>on property in cities within the company's authorized territory having a population less <br />
         		<a id="pl.55.27"></a><var>55.27</var>than 25,000. A township mutual may continue to write new and renewal insurance once <br />
         		<a id="pl.55.28"></a><var>55.28</var>the population increases to 25,000 or greater provided that amended and restated articles <br />
         		<a id="pl.55.29"></a><var>55.29</var>are filed with the commissioner along with a certification that such city's population has <br />
         		<a id="pl.55.30"></a><var>55.30</var>increased to 25,000 or greater.<br />
         		<a id="pl.55.31"></a><var>55.31</var>(d) A township mutual fire insurance company may write new and renewal insurance <br />
         		<a id="pl.55.32"></a><var>55.32</var>on property in cities within the company's authorized territory with a population of 25,000 <br />
         		<a id="pl.55.33"></a><var>55.33</var>or greater, but less than 150,000, if approval has been granted by the commissioner. <br />
         		<a id="pl.55.34"></a><var>55.34</var>No township mutual fire insurance company shall insure any property in cities with a <br />
         		<a id="pl.55.35"></a><var>55.35</var>population of 150,000 or greater.<br />
         		<a id="pl.55.36"></a><var>55.36</var>(e) If a township mutual fire insurance company provides evidence to the <br />
         		<a id="pl.55.37"></a><var>55.37</var>commissioner that the company had insurance in force on December 31, 2007, in a city <br />
         		<a id="pl.55.38"></a><var>55.38</var>within the company's authorized territory with a population of 25,000 or greater, but less <br />
         		<a id="pl.56.1"></a><var>56.1</var>than 150,000, the company may write new and renewal insurance on property in that city <br />
         		<a id="pl.56.2"></a><var>56.2</var>provided that the company files amended and restated articles by July 31, 2010, naming <br />
         		<a id="pl.56.3"></a><var>56.3</var>that city.<br />
         		<br />
         		<a id="bill.1.19.0"></a><a id="pl.56.4"></a><var>56.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. Minnesota Statutes 2008, section 67A.06, is amended to read:<br />
         		<a id="pl.56.5"></a><var>56.5</var><b>67A.06 POWERS OF CORPORATION.</b><br />
         		<a id="pl.56.6"></a><var>56.6</var>Every corporation formed under the provisions of sections 
         <statute_ref>67A.01</statute_ref> to 
         <statute_ref>67A.26</statute_ref>, <br />
         		<a id="pl.56.7"></a><var>56.7</var>shall have power:<br />
         		<a id="pl.56.8"></a><var>56.8</var>(1) to have succession by its corporate name for the time stated in its certificate of <br />
         		<a id="pl.56.9"></a><var>56.9</var>incorporation;<br />
         		<a id="pl.56.10"></a><var>56.10</var>(2) to sue and be sued in any court;<br />
         		<a id="pl.56.11"></a><var>56.11</var>(3) to have and use a common seal and alter the same at pleasure;<br />
         		<a id="pl.56.12"></a><var>56.12</var>(4) to acquire, by purchase or otherwise, and to hold, enjoy, improve, lease, <br />
         		<a id="pl.56.13"></a><var>56.13</var>encumber, and convey all real and personal property necessary for the purpose of its <br />
         		<a id="pl.56.14"></a><var>56.14</var>organization, subject to such limitations as may be imposed by law or by its articles of <br />
         		<a id="pl.56.15"></a><var>56.15</var>incorporation;<br />
         		<a id="pl.56.16"></a><var>56.16</var>(5) to elect or appoint in such manner as it may determine all necessary or proper <br />
         		<a id="pl.56.17"></a><var>56.17</var>officers, agents, boards, and committees, fix their compensation, and define their powers <br />
         		<a id="pl.56.18"></a><var>56.18</var>and duties;<br />
         		<a id="pl.56.19"></a><var>56.19</var>(6) to make and amend consistently with law bylaws providing for the management <br />
         		<a id="pl.56.20"></a><var>56.20</var>of its property and the regulation and government of its affairs;<br />
         		<a id="pl.56.21"></a><var>56.21</var>(7) to wind up and liquidate its business in the manner provided by chapter 60B; and<br />
         		<a id="pl.56.22"></a><var>56.22</var>(8) to indemnify certain persons against expenses and liabilities as provided in <br />
         		<a id="pl.56.23"></a><var>56.23</var>section 
         <statute_ref>302A.521</statute_ref>. In applying section 
         <statute_ref>302A.521</statute_ref> for this purpose, the term "members" <br />
         		<a id="pl.56.24"></a><var>56.24</var>shall be substituted for the terms "shareholders" and "stockholders."; and<br />
         		<a id="pl.56.25"></a><var>56.25</var>(9) to eliminate or limit a director's personal liability to the company or its members <br />
         		<a id="pl.56.26"></a><var>56.26</var>for monetary damages for breach of fiduciary duty as a director. A company shall not <br />
         		<a id="pl.56.27"></a><var>56.27</var>eliminate or limit the liability of a director:<br />
         		<a id="pl.56.28"></a><var>56.28</var>(i) for breach of loyalty to the company or its members;<br />
         		<a id="pl.56.29"></a><var>56.29</var>(ii) for acts or omissions made in bad faith or with intentional misconduct or <br />
         		<a id="pl.56.30"></a><var>56.30</var>knowing violation of law;<br />
         		<a id="pl.56.31"></a><var>56.31</var>(iii) for transactions from which the director derived an improper personal benefit; or<br />
         		<a id="pl.56.32"></a><var>56.32</var>(iv) for acts or omissions occurring before the date that the provisions in the articles <br />
         		<a id="pl.56.33"></a><var>56.33</var>eliminating or limiting liability become effective.<br />
         		<br />
         		<a id="bill.1.20.0"></a><a id="pl.57.1"></a><var>57.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. Minnesota Statutes 2008, section 67A.07, is amended to read:<br />
         		<a id="pl.57.2"></a><var>57.2</var><b>67A.07 PRINCIPAL OFFICE.</b><br />
         		<a id="pl.57.3"></a><var>57.3</var>The principal office of a township mutual fire insurance company shall be located in <br />
         		<a id="pl.57.4"></a><var>57.4</var>a township or in a city in a township county in which the company is authorized to do <br />
         		<a id="pl.57.5"></a><var>57.5</var>business.<br />
         		<br />
         		<a id="bill.1.21.0"></a><a id="pl.57.6"></a><var>57.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 21. Minnesota Statutes 2008, section 67A.14, subdivision 1, is amended to read:<br />
         		<a id="pl.57.7"></a><var>57.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Kinds of property</b><b>; property outside authorized territory</b><b>.</b> (a) <br />
         		<a id="pl.57.8"></a><var>57.8</var>Township mutual fire insurance companies may insure qualified property. Qualified <br />
         		<a id="pl.57.9"></a><var>57.9</var>property means dwellings, household goods, appurtenant structures, farm buildings, farm <br />
         		<a id="pl.57.10"></a><var>57.10</var>personal property, churches, church personal property, county fair buildings, community <br />
         		<a id="pl.57.11"></a><var>57.11</var>and township meeting halls and their usual contents.<br />
         		<a id="pl.57.12"></a><var>57.12</var>(b) Township mutual fire insurance companies may extend coverage to include <br />
         		<a id="pl.57.13"></a><var>57.13</var>an insured's secondary property if the township mutual fire insurance company covers <br />
         		<a id="pl.57.14"></a><var>57.14</var>qualified property belonging to the insured. Secondary property means any real or <br />
         		<a id="pl.57.15"></a><var>57.15</var>personal property that is not considered qualified property for a township mutual fire <br />
         		<a id="pl.57.16"></a><var>57.16</var>insurance company to cover under this chapter. The maximum amount of coverage that a <br />
         		<a id="pl.57.17"></a><var>57.17</var>township mutual fire insurance company may write for secondary property is 25 percent of <br />
         		<a id="pl.57.18"></a><var>57.18</var>the total limit of liability of the policy issued to an insured covering the qualified property.<br />
         		<a id="pl.57.19"></a><var>57.19</var>(c) A township mutual fire insurance company may insure any real or personal <br />
         		<a id="pl.57.20"></a><var>57.20</var>property, including qualified or secondary property, subject to the limitations in <br />
         		<a id="pl.57.21"></a><var>57.21</var>subdivision 1, paragraph (b), located outside the limits of the territory in which the <br />
         		<a id="pl.57.22"></a><var>57.22</var>company is authorized by its certificate or articles of incorporation to transact business, if <br />
         		<a id="pl.57.23"></a><var>57.23</var>the company is already covering qualified property belonging to the insured, inside the <br />
         		<a id="pl.57.24"></a><var>57.24</var>limits of the company's territory.<br />
         		<a id="pl.57.25"></a><var>57.25</var>(d) A township mutual fire insurance company may insure property temporarily <br />
         		<a id="pl.57.26"></a><var>57.26</var>outside of the authorized territory of the township mutual fire insurance company.<br />
         		<br />
         		<a id="bill.1.22.0"></a><a id="pl.57.27"></a><var>57.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. Minnesota Statutes 2008, section 67A.14, subdivision 7, is amended to read:<br />
         		<a id="pl.57.28"></a><var>57.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Amount of insurable risk.</b> No township mutual fire insurance company <br />
         		<a id="pl.57.29"></a><var>57.29</var>shall insure or reinsure a single risk or hazard in a larger sum than the greater of $3,000, or <br />
         		<a id="pl.57.30"></a><var>57.30</var>one tenth of its net assets plus two tenths of a mill of its insurance in force; provided that <br />
         		<a id="pl.57.31"></a><var>57.31</var>no portion of any such risk or hazard which shall have been reinsured, as authorized by <br />
         		<a id="pl.57.32"></a><var>57.32</var>the laws of this state, shall be included in determining the limitation of risk prescribed <br />
         		<a id="pl.57.33"></a><var>57.33</var>by this subdivision.<br />
         		<br />
         		<a id="bill.1.23.0"></a><a id="pl.58.1"></a><var>58.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 23. <b>[67A.175] SURPLUS REQUIREMENTS.</b><br />
         		<a id="pl.58.2"></a><var>58.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Minimum.</b> Township mutual fire insurance companies shall maintain <br />
         		<a id="pl.58.3"></a><var>58.3</var>a minimum policyholders' surplus of $300,000 at all times.<br />
         		<a id="pl.58.4"></a><var>58.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Corrective action plan; filing.</b> A township mutual fire insurance company <br />
         		<a id="pl.58.5"></a><var>58.5</var>that falls below the $300,000 minimum surplus requirement must file a corrective action <br />
         		<a id="pl.58.6"></a><var>58.6</var>plan with the commissioner. The plan shall state how the company will correct its surplus <br />
         		<a id="pl.58.7"></a><var>58.7</var>deficiency. The plan must be submitted within 45 days of the company falling below the <br />
         		<a id="pl.58.8"></a><var>58.8</var>minimum surplus level.<br />
         		<a id="pl.58.9"></a><var>58.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Corrective action plan; commissioner's notification.</b> Within 30 days <br />
         		<a id="pl.58.10"></a><var>58.10</var>after the submission by a township mutual fire insurance company of a corrective action <br />
         		<a id="pl.58.11"></a><var>58.11</var>plan, the commissioner shall notify the insurer whether the plan may be implemented or <br />
         		<a id="pl.58.12"></a><var>58.12</var>is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines <br />
         		<a id="pl.58.13"></a><var>58.13</var>the plan is unsatisfactory, the notification to the company must set forth the reasons for the <br />
         		<a id="pl.58.14"></a><var>58.14</var>determination, and may set forth proposed revisions that will render the plan satisfactory <br />
         		<a id="pl.58.15"></a><var>58.15</var>in the judgment of the commissioner. Upon notification from the commissioner, the <br />
         		<a id="pl.58.16"></a><var>58.16</var>insurer shall prepare a revised corrective action plan that may incorporate by reference <br />
         		<a id="pl.58.17"></a><var>58.17</var>any revisions proposed by the commissioner, and shall submit the revised plan to the <br />
         		<a id="pl.58.18"></a><var>58.18</var>commissioner within 45 days.<br />
         		<br />
         		<a id="bill.1.24.0"></a><a id="pl.58.19"></a><var>58.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 24. Minnesota Statutes 2008, section 67A.18, subdivision 1, is amended to read:<br />
         		<a id="pl.58.20"></a><var>58.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>By member.</b> Any member may terminate membership in the <br />
         		<a id="pl.58.21"></a><var>58.21</var>company by giving written notice or returning the member's policy to the secretary and <br />
         		<a id="pl.58.22"></a><var>58.22</var>paying the withdrawing member's share of all existing claims.<br />
         		<br />
         		<a id="bill.1.25.0"></a><a id="pl.58.23"></a><var>58.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 25. <b> REPEALER.</b><br />
         		<a id="pl.58.24"></a><var>58.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Annual audits.</b> Minnesota Statutes 2008, section 60A.129, is <br />
         		<a id="pl.58.25"></a><var>58.25</var>repealed.<br />
         		<a id="pl.58.26"></a><var>58.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Township mutual insured properties, joint or partial risks, and </b><br />
         		<a id="pl.58.27"></a><var>58.27</var><b>assessments.</b> Minnesota Statutes 2008, sections 67A.14, subdivision 5; 67A.17; and <br />
         		<a id="pl.58.28"></a><var>58.28</var>67A.19, are repealed.<br />
         		<a id="pl.58.29"></a><var>58.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Banking procedures; real estate tax records.</b> Minnesota Rules, part <br />
         		<a id="pl.58.30"></a><var>58.30</var>2675.2180, is repealed.<br />
         		<a id="pl.58.31"></a><var>58.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Debt prorating companies.</b> Minnesota Rules, parts 2675.7100; <br />
         		<a id="pl.58.32"></a><var>58.32</var>2675.7110; 2675.7120; 2675.7130; and 2675.7140, are repealed.<br />
         		<a id="pl.58.33"></a><var>58.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Guaranty association; inflation indexing.</b> Minnesota Statutes 2008, <br />
         		<a id="pl.58.34"></a><var>58.34</var>section 61B.19, subdivision 6, is repealed.<br />
         		<br />
         		<a id="bill.8.0.0"></a><div class="xtend_ce"><a id="pl.59.1"></a><var>59.1</var><b>ARTICLE 8</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.59.2"></a><var>59.2</var><b>DEBT MANAGEMENT AND DEBT SETTLEMENT SERVICE</b><br />
            		
         </div><br />
         		<a id="bill.8.1.0"></a><a id="pl.59.3"></a><var>59.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2008, section 45.011, subdivision 1, is amended to read:<br />
         		<a id="pl.59.4"></a><var>59.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Scope.</b> As used in chapters 45 to 83, 155A,  332, 332A, 332B, <br />
         		<a id="pl.59.5"></a><var>59.5</var>345, and 359, and sections 
         <statute_ref>325D.30</statute_ref> to 
         <statute_ref>325D.42</statute_ref>, 
         <statute_ref>326B.802</statute_ref> to 
         <statute_ref>326B.885</statute_ref>, and 
         <statute_ref>386.61</statute_ref> to <br />
         		
         <statute_ref><a id="pl.59.6"></a><var>59.6</var>386.78
         </statute_ref>, unless the context indicates otherwise, the terms defined in this section have <br />
         		<a id="pl.59.7"></a><var>59.7</var>the meanings given them. <br />
         		<br />
         		<a id="bill.8.2.0"></a><a id="pl.59.8"></a><var>59.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2008, section 46.04, subdivision 1, is amended to read:<br />
         		<a id="pl.59.9"></a><var>59.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>General.</b> The commissioner of commerce, referred to in chapters 46 <br />
         		<a id="pl.59.10"></a><var>59.10</var>to 59A, and chapter 332A, and 332B as the commissioner, is vested with all the powers, <br />
         		<a id="pl.59.11"></a><var>59.11</var>authority, and privileges which, prior to the enactment of Laws 1909, chapter 201, were <br />
         		<a id="pl.59.12"></a><var>59.12</var>conferred by law upon the public examiner, and shall take over all duties in relation to <br />
         		<a id="pl.59.13"></a><var>59.13</var>state banks, savings banks, trust companies, savings associations, and other financial <br />
         		<a id="pl.59.14"></a><var>59.14</var>institutions within the state which, prior to the enactment of chapter 201, were imposed <br />
         		<a id="pl.59.15"></a><var>59.15</var>upon the public examiner. The commissioner of commerce shall exercise a constant <br />
         		<a id="pl.59.16"></a><var>59.16</var>supervision, either personally or through the examiners herein provided for, over the <br />
         		<a id="pl.59.17"></a><var>59.17</var>books and affairs of all state banks, savings banks, trust companies, savings associations, <br />
         		<a id="pl.59.18"></a><var>59.18</var>credit unions, industrial loan and thrift companies, and other financial institutions doing <br />
         		<a id="pl.59.19"></a><var>59.19</var>business within this state; and shall, through examiners, examine each financial institution <br />
         		<a id="pl.59.20"></a><var>59.20</var>at least once every 24 calendar months. In satisfying this examination requirement, the <br />
         		<a id="pl.59.21"></a><var>59.21</var>commissioner may accept reports of examination prepared by a federal agency having <br />
         		<a id="pl.59.22"></a><var>59.22</var>comparable supervisory powers and examination procedures. With the exception of <br />
         		<a id="pl.59.23"></a><var>59.23</var>industrial loan and thrift companies which do not have deposit liabilities and licensed <br />
         		<a id="pl.59.24"></a><var>59.24</var>regulated lenders, it shall be the principal purpose of these examinations to inspect and <br />
         		<a id="pl.59.25"></a><var>59.25</var>verify the assets and liabilities of each and so far investigate the character and value of <br />
         		<a id="pl.59.26"></a><var>59.26</var>the assets of each institution as to determine with reasonable certainty that the values are <br />
         		<a id="pl.59.27"></a><var>59.27</var>correctly carried on its books. Assets and liabilities shall be verified in accordance with <br />
         		<a id="pl.59.28"></a><var>59.28</var>methods of procedure which the commissioner may determine to be adequate to carry out <br />
         		<a id="pl.59.29"></a><var>59.29</var>the intentions of this section. It shall be the further purpose of these examinations to <br />
         		<a id="pl.59.30"></a><var>59.30</var>assess the adequacy of capital protection and the capacity of the institution to meet usual <br />
         		<a id="pl.59.31"></a><var>59.31</var>and reasonably anticipated deposit withdrawals and other cash commitments without <br />
         		<a id="pl.59.32"></a><var>59.32</var>resorting to excessive borrowing or sale of assets at a significant loss, and to investigate <br />
         		<a id="pl.59.33"></a><var>59.33</var>each institution's compliance with applicable laws and rules. Based on the examination <br />
         		<a id="pl.59.34"></a><var>59.34</var>findings, the commissioner shall make a determination as to whether the institution <br />
         		<a id="pl.60.1"></a><var>60.1</var>is being operated in a safe and sound manner. None of the above provisions limits the <br />
         		<a id="pl.60.2"></a><var>60.2</var>commissioner in making additional examinations as deemed necessary or advisable. The <br />
         		<a id="pl.60.3"></a><var>60.3</var>commissioner shall investigate the methods of operation and conduct of these institutions <br />
         		<a id="pl.60.4"></a><var>60.4</var>and their systems of accounting, to ascertain whether these methods and systems are <br />
         		<a id="pl.60.5"></a><var>60.5</var>in accordance with law and sound banking principles. The commissioner may make <br />
         		<a id="pl.60.6"></a><var>60.6</var>requirements as to records as deemed necessary to facilitate the carrying out of the <br />
         		<a id="pl.60.7"></a><var>60.7</var>commissioner's duties and to properly protect the public interest. The commissioner may <br />
         		<a id="pl.60.8"></a><var>60.8</var>examine, or cause to be examined by these examiners, on oath, any officer, director, <br />
         		<a id="pl.60.9"></a><var>60.9</var>trustee, owner, agent, clerk, customer, or depositor of any financial institution touching <br />
         		<a id="pl.60.10"></a><var>60.10</var>the affairs and business thereof, and may issue, or cause to be issued by the examiners, <br />
         		<a id="pl.60.11"></a><var>60.11</var>subpoenas, and administer, or cause to be administered by the examiners, oaths. In <br />
         		<a id="pl.60.12"></a><var>60.12</var>case of any refusal to obey any subpoena issued under the commissioner's direction, <br />
         		<a id="pl.60.13"></a><var>60.13</var>the refusal may at once be reported to the district court of the district in which the bank <br />
         		<a id="pl.60.14"></a><var>60.14</var>or other financial institution is located, and this court shall enforce obedience to these <br />
         		<a id="pl.60.15"></a><var>60.15</var>subpoenas in the manner provided by law for enforcing obedience to subpoenas of the <br />
         		<a id="pl.60.16"></a><var>60.16</var>court. In all matters relating to official duties, the commissioner of commerce has the <br />
         		<a id="pl.60.17"></a><var>60.17</var>power possessed by courts of law to issue subpoenas and cause them to be served and <br />
         		<a id="pl.60.18"></a><var>60.18</var>enforced, and all officers, directors, trustees, and employees of state banks, savings banks, <br />
         		<a id="pl.60.19"></a><var>60.19</var>trust companies, savings associations, and other financial institutions within the state, <br />
         		<a id="pl.60.20"></a><var>60.20</var>and all persons having dealings with or knowledge of the affairs or methods of these <br />
         		<a id="pl.60.21"></a><var>60.21</var>institutions, shall afford reasonable facilities for these examinations, make returns and <br />
         		<a id="pl.60.22"></a><var>60.22</var>reports to the commissioner of commerce as the commissioner may require; attend and <br />
         		<a id="pl.60.23"></a><var>60.23</var>answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books, <br />
         		<a id="pl.60.24"></a><var>60.24</var>accounts, documents, and property as the commissioner may desire to inspect, and in all <br />
         		<a id="pl.60.25"></a><var>60.25</var>things aid the commissioner in the performance of duties. <br />
         		<br />
         		<a id="bill.8.3.0"></a><a id="pl.60.26"></a><var>60.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2008, section 46.05, is amended to read:<br />
         		<a id="pl.60.27"></a><var>60.27</var><b>46.05 SUPERVISION OVER FINANCIAL INSTITUTIONS.</b><br />
         		<a id="pl.60.28"></a><var>60.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Every state bank, savings bank, trust company, savings association, debt management <br />
         		<a id="pl.60.29"></a><var>60.29</var>services provider, debt settlement services provider, and other financial institutions shall <br />
         		<a id="pl.60.30"></a><var>60.30</var>be at all times under the supervision and subject to the control of the commissioner <br />
         		<a id="pl.60.31"></a><var>60.31</var>of commerce. If, and whenever in the performance of duties, the commissioner finds <br />
         		<a id="pl.60.32"></a><var>60.32</var>it necessary to make a special investigation of any financial institution under the <br />
         		<a id="pl.60.33"></a><var>60.33</var>commissioner's supervision, and other than a complete examination, the commissioner <br />
         		<a id="pl.60.34"></a><var>60.34</var>shall make a charge therefor to include only the necessary costs thereof. Such a fee shall <br />
         		<a id="pl.60.35"></a><var>60.35</var>be payable to the commissioner on the commissioner's making a request for payment.<br />
         		<br />
         		<a id="bill.8.4.0"></a><a id="pl.61.1"></a><var>61.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2008, section 46.131, subdivision 2, is amended to read:<br />
         		<a id="pl.61.2"></a><var>61.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Assessment authority.</b> Each bank, trust company, savings bank, savings <br />
         		<a id="pl.61.3"></a><var>61.3</var>association, regulated lender, industrial loan and thrift company, credit union, motor <br />
         		<a id="pl.61.4"></a><var>61.4</var>vehicle sales finance company, debt management services provider, debt settlement <br />
         		<a id="pl.61.5"></a><var>61.5</var>services provider, and insurance premium finance company organized under the laws of <br />
         		<a id="pl.61.6"></a><var>61.6</var>this state or required to be administered by the commissioner of commerce shall pay <br />
         		<a id="pl.61.7"></a><var>61.7</var>into the state treasury its proportionate share of the cost of maintaining the Department <br />
         		<a id="pl.61.8"></a><var>61.8</var>of Commerce.<br />
         		<br />
         		<a id="bill.8.5.0"></a><a id="pl.61.9"></a><var>61.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2008, section 325E.311, subdivision 6, is amended to read:<br />
         		<a id="pl.61.10"></a><var>61.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Telephone solicitation.</b> "Telephone solicitation" means any voice <br />
         		<a id="pl.61.11"></a><var>61.11</var>communication over a telephone line for the purpose of encouraging the purchase or <br />
         		<a id="pl.61.12"></a><var>61.12</var>rental of, or investment in, property, goods, or services, whether the communication is <br />
         		<a id="pl.61.13"></a><var>61.13</var>made by a live operator, through the use of an automatic dialing-announcing device as <br />
         		<a id="pl.61.14"></a><var>61.14</var>defined in section 
         <statute_ref>325E.26, subdivision 2</statute_ref>, or by other means. Telephone solicitation <br />
         		<a id="pl.61.15"></a><var>61.15</var>does not include communications:<br />
         		<a id="pl.61.16"></a><var>61.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) to any residential subscriber with that subscriber's prior express invitation or <br />
         		<a id="pl.61.17"></a><var>61.17</var>permission; or<br />
         		<a id="pl.61.18"></a><var>61.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) by or on behalf of any person or entity with whom a residential subscriber has a <br />
         		<a id="pl.61.19"></a><var>61.19</var>prior or current business or personal relationship.<br />
         		<a id="pl.61.20"></a><var>61.20</var>Telephone solicitation also does not include communications if the caller is identified by a <br />
         		<a id="pl.61.21"></a><var>61.21</var>caller identification service and the call is:<br />
         		<a id="pl.61.22"></a><var>61.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) by or on behalf of an organization that is identified as a nonprofit organization <br />
         		<a id="pl.61.23"></a><var>61.23</var>under state or federal law, unless the organization is a debt management services provider <br />
         		<a id="pl.61.24"></a><var>61.24</var>defined in section 
         <statute_ref>332A.02</statute_ref> or a debt settlement services provider defined in section <br />
         		<a id="pl.61.25"></a><var>61.25</var>332B.02;<br />
         		<a id="pl.61.26"></a><var>61.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) by a person soliciting without the intent to complete, and who does not in <br />
         		<a id="pl.61.27"></a><var>61.27</var>fact complete, the sales presentation during the call, but who will complete the sales <br />
         		<a id="pl.61.28"></a><var>61.28</var>presentation at a later face-to-face meeting between the solicitor who makes the call <br />
         		<a id="pl.61.29"></a><var>61.29</var>and the prospective purchaser; or<br />
         		<a id="pl.61.30"></a><var>61.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) by a political party as defined under section 
         <statute_ref>200.02, subdivision 6</statute_ref>.<br />
         		<br />
         		<a id="bill.8.6.0"></a><a id="pl.61.31"></a><var>61.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2008, section 332A.02, is amended by adding a subdivision <br />
         		<a id="pl.61.32"></a><var>61.32</var>to read:<br />
         		<a id="pl.61.33"></a><var>61.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2a. <b>Advertise.</b> "Advertise" means to solicit business through any means or <br />
         		<a id="pl.61.34"></a><var>61.34</var>medium.<br />
         		<br />
         		<a id="bill.8.7.0"></a><a id="pl.62.1"></a><var>62.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2008, section 332A.02, subdivision 5, is amended to read:<br />
         		<a id="pl.62.2"></a><var>62.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Controlling or affiliated party.</b> "Controlling or affiliated party" means <br />
         		<a id="pl.62.3"></a><var>62.3</var>any person or entity that controls or is controlled, directly or indirectly controlling, <br />
         		<a id="pl.62.4"></a><var>62.4</var>controlled by, or is under common control with another person. Controlling or affiliated <br />
         		<a id="pl.62.5"></a><var>62.5</var>party includes, but is not limited to, employees, officers, independent contractors, <br />
         		<a id="pl.62.6"></a><var>62.6</var>corporations, partnerships, and limited liability corporations.<br />
         		<br />
         		<a id="bill.8.8.0"></a><a id="pl.62.7"></a><var>62.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2008, section 332A.02, subdivision 8, is amended to read:<br />
         		<a id="pl.62.8"></a><var>62.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Debt management services provider.</b> "Debt management services <br />
         		<a id="pl.62.9"></a><var>62.9</var>provider" means any person offering or providing debt management services to a debtor <br />
         		<a id="pl.62.10"></a><var>62.10</var>domiciled in this state, regardless of whether or not a fee is charged for the services and <br />
         		<a id="pl.62.11"></a><var>62.11</var>regardless of whether the person maintains a physical presence in the state. This term <br />
         		<a id="pl.62.12"></a><var>62.12</var>includes any person to whom duties under a debt management services agreement or <br />
         		<a id="pl.62.13"></a><var>62.13</var>debt management services plan are delegated, and does not include services performed <br />
         		<a id="pl.62.14"></a><var>62.14</var>by the following when engaged in the regular course of their respective businesses and <br />
         		<a id="pl.62.15"></a><var>62.15</var>professions:<br />
         		<a id="pl.62.16"></a><var>62.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) attorneys at law, escrow agents, accountants, broker-dealers in securities;<br />
         		<a id="pl.62.17"></a><var>62.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) state or national banks, trust companies, savings associations, title insurance <br />
         		<a id="pl.62.18"></a><var>62.18</var>companies, insurance companies, and all other lending institutions duly authorized to <br />
         		<a id="pl.62.19"></a><var>62.19</var>transact business in Minnesota, provided no fee is charged for the service;<br />
         		<a id="pl.62.20"></a><var>62.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) persons who, as employees on a regular salary or wage of an employer not <br />
         		<a id="pl.62.21"></a><var>62.21</var>engaged in the business of debt management, perform credit services for their employer;<br />
         		<a id="pl.62.22"></a><var>62.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) public officers acting in their official capacities and persons acting as a debt <br />
         		<a id="pl.62.23"></a><var>62.23</var>management services provider pursuant to court order;<br />
         		<a id="pl.62.24"></a><var>62.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) any person while performing services incidental to the dissolution, winding up, <br />
         		<a id="pl.62.25"></a><var>62.25</var>or liquidation of a partnership, corporation, or other business enterprise;<br />
         		<a id="pl.62.26"></a><var>62.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) the state, its political subdivisions, public agencies, and their employees;<br />
         		<a id="pl.62.27"></a><var>62.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) credit unions and collection agencies, provided no fee is charged for the service <br />
         		<a id="pl.62.28"></a><var>62.28</var>that the services are provided to a creditor;<br />
         		<a id="pl.62.29"></a><var>62.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) "qualified organizations" designated as representative payees for purposes of the <br />
         		<a id="pl.62.30"></a><var>62.30</var>Social Security and Supplemental Security Income Representative Payee System and the <br />
         		<a id="pl.62.31"></a><var>62.31</var>federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508;<br />
         		<a id="pl.62.32"></a><var>62.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) accelerated mortgage payment providers. "Accelerated mortgage payment <br />
         		<a id="pl.62.33"></a><var>62.33</var>providers" are persons who, after satisfying the requirements of sections 
         <statute_ref>332.30</statute_ref> to <br />
         		
         <statute_ref><a id="pl.62.34"></a><var>62.34</var>332.303
         </statute_ref>, receive funds to make mortgage payments to a lender or lenders, on behalf <br />
         		<a id="pl.62.35"></a><var>62.35</var>of mortgagors, in order to exceed regularly scheduled minimum payment obligations <br />
         		<a id="pl.63.1"></a><var>63.1</var>under the terms of the indebtedness. The term does not include: (i) persons or entities <br />
         		<a id="pl.63.2"></a><var>63.2</var>described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and <br />
         		<a id="pl.63.3"></a><var>63.3</var>thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to <br />
         		<a id="pl.63.4"></a><var>63.4</var>make loans under section 
         <statute_ref>47.20, subdivision 1</statute_ref>. For purposes of this clause and sections <br />
         		
         <statute_ref><a id="pl.63.5"></a><var>63.5</var>332.30
         </statute_ref> to 
         <statute_ref>332.303</statute_ref>, "lender" means the original lender or that lender's assignee, whichever <br />
         		<a id="pl.63.6"></a><var>63.6</var>is the current mortgage holder;<br />
         		<a id="pl.63.7"></a><var>63.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) trustees, guardians, and conservators; and<br />
         		<a id="pl.63.8"></a><var>63.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) debt settlement services providers.; and <br />
         		<a id="pl.63.9"></a><var>63.9</var>(12) credit unions.<br />
         		<br />
         		<a id="bill.8.9.0"></a><a id="pl.63.10"></a><var>63.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2008, section 332A.02, subdivision 9, is amended to read:<br />
         		<a id="pl.63.11"></a><var>63.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Debt management services.</b> "Debt management services" means the <br />
         		<a id="pl.63.12"></a><var>63.12</var>provision of any one or more of the following services in connection with debt incurred <br />
         		<a id="pl.63.13"></a><var>63.13</var>primarily for personal, family, or household services:<br />
         		<a id="pl.63.14"></a><var>63.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) managing the financial affairs of an individual by distributing income or money <br />
         		<a id="pl.63.15"></a><var>63.15</var>to the individual's creditors; <br />
         		<a id="pl.63.16"></a><var>63.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) receiving funds for the purpose of distributing the funds among creditors in <br />
         		<a id="pl.63.17"></a><var>63.17</var>payment or partial payment of obligations of a debtor; or<br />
         		<a id="pl.63.18"></a><var>63.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) adjusting, prorating, pooling, or liquidating the indebtedness of a debtor  whereby <br />
         		<a id="pl.63.19"></a><var>63.19</var>a debt management services provider assists in managing the financial affairs of a debtor <br />
         		<a id="pl.63.20"></a><var>63.20</var>by distributing periodic payments to the debtor's creditors from funds that the debt <br />
         		<a id="pl.63.21"></a><var>63.21</var>management services provider receives from the debtor and where the primary purpose <br />
         		<a id="pl.63.22"></a><var>63.22</var>of the services is to effect repayment of debt incurred primarily for personal, family, or <br />
         		<a id="pl.63.23"></a><var>63.23</var>household services. <br />
         		<a id="pl.63.24"></a><var>63.24</var>Any person so engaged or holding out as so engaged is deemed to be engaged in the <br />
         		<a id="pl.63.25"></a><var>63.25</var>provision of debt management services regardless of whether or not a fee is charged for <br />
         		<a id="pl.63.26"></a><var>63.26</var>such services.<br />
         		<br />
         		<a id="bill.8.10.0"></a><a id="pl.63.27"></a><var>63.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2008, section 332A.02, subdivision 10, is amended to read:<br />
         		<a id="pl.63.28"></a><var>63.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Debtor.</b> "Debtor" means the person for whom the debt prorating service <br />
         		<a id="pl.63.29"></a><var>63.29</var>is management services are performed.<br />
         		<br />
         		<a id="bill.8.11.0"></a><a id="pl.63.30"></a><var>63.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2008, section 332A.02, subdivision 13, is amended to read:<br />
         		<a id="pl.63.31"></a><var>63.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13. <b>Debt settlement </b><b>services </b><b>provider.</b> "Debt settlement services provider" <br />
         		<a id="pl.63.32"></a><var>63.32</var>means any person engaging in or holding out as engaging in the business of negotiating, <br />
         		<a id="pl.63.33"></a><var>63.33</var>adjusting, or settling debt incurred primarily for personal, family, or household purposes <br />
         		<a id="pl.64.1"></a><var>64.1</var>without holding or receiving the debtor's funds or personal property and without paying <br />
         		<a id="pl.64.2"></a><var>64.2</var>the debtor's funds to, or distributing the debtor's property among, creditors has the <br />
         		<a id="pl.64.3"></a><var>64.3</var>meaning given in section 332B.02, subdivision 10. The term shall not include persons <br />
         		<a id="pl.64.4"></a><var>64.4</var>listed in subdivision 8, clauses (1) to (10).<br />
         		<br />
         		<a id="bill.8.12.0"></a><a id="pl.64.5"></a><var>64.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2008, section 332A.04, subdivision 6, is amended to read:<br />
         		<a id="pl.64.6"></a><var>64.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Right of action on bond.</b> If the registrant has failed to account to a debtor <br />
         		<a id="pl.64.7"></a><var>64.7</var>or distribute to the debtor's creditors the amounts required by this chapter and, or has <br />
         		<a id="pl.64.8"></a><var>64.8</var>failed to perform any of the services promised in  the debt management services agreement <br />
         		<a id="pl.64.9"></a><var>64.9</var>between the debtor and registrant, the registrant is in default. The debtor or the debtor's <br />
         		<a id="pl.64.10"></a><var>64.10</var>legal representative or receiver, the commissioner, or the attorney general, shall have, in <br />
         		<a id="pl.64.11"></a><var>64.11</var>addition to all other legal remedies, a right of action in the name of the debtor on the bond <br />
         		<a id="pl.64.12"></a><var>64.12</var>or the security given under this section, for loss suffered by the debtor, not exceeding the <br />
         		<a id="pl.64.13"></a><var>64.13</var>face amount of the bond or security, and without the necessity of joining the registrant <br />
         		<a id="pl.64.14"></a><var>64.14</var>in the suit or action based on the default.<br />
         		<br />
         		<a id="bill.8.13.0"></a><a id="pl.64.15"></a><var>64.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2008, section 332A.08, is amended to read:<br />
         		<a id="pl.64.16"></a><var>64.16</var><b>332A.08 DENIAL OF REGISTRATION.</b><br />
         		<a id="pl.64.17"></a><var>64.17</var>&nbsp;&nbsp;&nbsp;&nbsp;The commissioner, with notice to the applicant by certified mail sent to the address <br />
         		<a id="pl.64.18"></a><var>64.18</var>listed on the application, may deny an application for a registration upon finding that <br />
         		<a id="pl.64.19"></a><var>64.19</var>the applicant:<br />
         		<a id="pl.64.20"></a><var>64.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) has submitted an application required under section 
         <statute_ref>332A.04</statute_ref> that contains <br />
         		<a id="pl.64.21"></a><var>64.21</var>incorrect, misleading, incomplete, or materially untrue information. An application is <br />
         		<a id="pl.64.22"></a><var>64.22</var>incomplete if it does not include all the information required in section 
         <statute_ref>332A.04</statute_ref>;<br />
         		<a id="pl.64.23"></a><var>64.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) has failed to pay any fee or pay or maintain any bond required by this chapter, <br />
         		<a id="pl.64.24"></a><var>64.24</var>or failed to comply with any order, decision, or finding of the commissioner made under <br />
         		<a id="pl.64.25"></a><var>64.25</var>and within the authority of this chapter;<br />
         		<a id="pl.64.26"></a><var>64.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) has violated any provision of this chapter or any rule or direction lawfully made <br />
         		<a id="pl.64.27"></a><var>64.27</var>by the commissioner under and within the authority of this chapter;<br />
         		<a id="pl.64.28"></a><var>64.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) or any controlling or affiliated party has ever been convicted of a crime or found <br />
         		<a id="pl.64.29"></a><var>64.29</var>civilly liable for an offense involving moral turpitude, including forgery, embezzlement, <br />
         		<a id="pl.64.30"></a><var>64.30</var>obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any <br />
         		<a id="pl.64.31"></a><var>64.31</var>other similar offense or violation, or any violation of a federal or state law or regulation <br />
         		<a id="pl.64.32"></a><var>64.32</var>in connection with activities relating to the rendition of debt management services or <br />
         		<a id="pl.64.33"></a><var>64.33</var>any consumer fraud, false advertising, deceptive trade practices, or similar consumer <br />
         		<a id="pl.64.34"></a><var>64.34</var>protection law;<br />
         		<a id="pl.65.1"></a><var>65.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) has had a registration or license previously revoked or suspended in this state or <br />
         		<a id="pl.65.2"></a><var>65.2</var>any other state or the applicant or licensee has been permanently or temporarily enjoined <br />
         		<a id="pl.65.3"></a><var>65.3</var>by any court of competent jurisdiction from engaging in or continuing any conduct or <br />
         		<a id="pl.65.4"></a><var>65.4</var>practice involving any aspect of the debt management services provider business; or <br />
         		<a id="pl.65.5"></a><var>65.5</var>any controlling or affiliated party has been an officer, director, manager, or shareholder <br />
         		<a id="pl.65.6"></a><var>65.6</var>owning more than a ten percent interest in a debt management services provider whose <br />
         		<a id="pl.65.7"></a><var>65.7</var>registration has previously been revoked or suspended in this state or any other state, or <br />
         		<a id="pl.65.8"></a><var>65.8</var>who has been permanently or temporarily enjoined by any court of competent jurisdiction <br />
         		<a id="pl.65.9"></a><var>65.9</var>from engaging in or continuing any conduct or practice involving any aspect of the debt <br />
         		<a id="pl.65.10"></a><var>65.10</var>management services provider business;<br />
         		<a id="pl.65.11"></a><var>65.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) has made any false statement or representation to the commissioner;<br />
         		<a id="pl.65.12"></a><var>65.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) is insolvent;<br />
         		<a id="pl.65.13"></a><var>65.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) refuses to fully comply with an investigation or examination of the debt <br />
         		<a id="pl.65.14"></a><var>65.14</var>management services provider by the commissioner;<br />
         		<a id="pl.65.15"></a><var>65.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) has improperly withheld, misappropriated, or converted any money or properties <br />
         		<a id="pl.65.16"></a><var>65.16</var>received in the course of doing business;<br />
         		<a id="pl.65.17"></a><var>65.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) has failed to have a trust account with an actual cash balance equal to or greater <br />
         		<a id="pl.65.18"></a><var>65.18</var>than the sum of the escrow balances of each debtor's account;<br />
         		<a id="pl.65.19"></a><var>65.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) has defaulted in making payments to creditors on behalf of debtors as required <br />
         		<a id="pl.65.20"></a><var>65.20</var>by agreements between the provider and debtor; or<br />
         		<a id="pl.65.21"></a><var>65.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) has used fraudulent, coercive, or dishonest practices, or demonstrated <br />
         		<a id="pl.65.22"></a><var>65.22</var>incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere; or<br />
         		<a id="pl.65.23"></a><var>65.23</var>(13) has been shown to have engaged in a pattern of failing to perform the services <br />
         		<a id="pl.65.24"></a><var>65.24</var>promised.<br />
         		<br />
         		<a id="bill.8.14.0"></a><a id="pl.65.25"></a><var>65.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2008, section 332A.10, is amended to read:<br />
         		<a id="pl.65.26"></a><var>65.26</var><b>332A.10 WRITTEN DEBT MANAGEMENT SERVICES AGREEMENT.</b><br />
         		<a id="pl.65.27"></a><var>65.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Written agreement required.</b> (a) A debt management services <br />
         		<a id="pl.65.28"></a><var>65.28</var>provider may not perform any debt management services or receive any money related <br />
         		<a id="pl.65.29"></a><var>65.29</var>to a debt management services plan until the provider has obtained a debt management <br />
         		<a id="pl.65.30"></a><var>65.30</var>services agreement that contains all  terms of the agreement between the debt management <br />
         		<a id="pl.65.31"></a><var>65.31</var>services provider and the debtor.<br />
         		<a id="pl.65.32"></a><var>65.32</var>(b) A debt management services agreement must: <br />
         		<a id="pl.65.33"></a><var>65.33</var>(1) be in writing, dated, and signed by the debt management services provider and <br />
         		<a id="pl.65.34"></a><var>65.34</var>the debtor;<br />
         		<a id="pl.66.1"></a><var>66.1</var>(2) conspicuously indicate whether or not the debt management services provider <br />
         		<a id="pl.66.2"></a><var>66.2</var>is registered with the Minnesota Department of Commerce and include any registration <br />
         		<a id="pl.66.3"></a><var>66.3</var>number; and<br />
         		<a id="pl.66.4"></a><var>66.4</var>(3) be written in the debtor's primary language if the debt management services <br />
         		<a id="pl.66.5"></a><var>66.5</var>provider advertised in that language. <br />
         		<a id="pl.66.6"></a><var>66.6</var>(c) The registrant must furnish the debtor with a copy of the signed contract upon <br />
         		<a id="pl.66.7"></a><var>66.7</var>execution.<br />
         		<a id="pl.66.8"></a><var>66.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Actions prior to written agreement.</b> No person may provide debt <br />
         		<a id="pl.66.9"></a><var>66.9</var>management services for a debtor or execute a debt management services agreement <br />
         		<a id="pl.66.10"></a><var>66.10</var>unless the person first has:<br />
         		<a id="pl.66.11"></a><var>66.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) provided the debtor individualized counseling and educational information <br />
         		<a id="pl.66.12"></a><var>66.12</var>that, at a minimum, addresses managing household finances, managing credit and debt, <br />
         		<a id="pl.66.13"></a><var>66.13</var>budgeting, and personal savings strategies;<br />
         		<a id="pl.66.14"></a><var>66.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) prepared in writing and provided to the debtor, in a form that the debtor may <br />
         		<a id="pl.66.15"></a><var>66.15</var>keep, an individualized financial analysis and a proposed debt management services <br />
         		<a id="pl.66.16"></a><var>66.16</var>plan listing the debtor's known debts with specific recommendations regarding actions <br />
         		<a id="pl.66.17"></a><var>66.17</var>the debtor should take to reduce or eliminate the amount of the debts, including written <br />
         		<a id="pl.66.18"></a><var>66.18</var>disclosure that debt management services are not suitable for all debtors and that there are <br />
         		<a id="pl.66.19"></a><var>66.19</var>other ways, including bankruptcy, to deal with indebtedness;<br />
         		<a id="pl.66.20"></a><var>66.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) made a determination supported by an individualized financial analysis that the <br />
         		<a id="pl.66.21"></a><var>66.21</var>debtor can reasonably meet the requirements of the proposed debt management services <br />
         		<a id="pl.66.22"></a><var>66.22</var>plan and that there is a net tangible benefit to the debtor of entering into the proposed debt <br />
         		<a id="pl.66.23"></a><var>66.23</var>management services plan; and<br />
         		<a id="pl.66.24"></a><var>66.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) prepared, in a form the debtor may keep, a written list identifying all known <br />
         		<a id="pl.66.25"></a><var>66.25</var>creditors of the debtor that the provider reasonably expects to participate in the plan <br />
         		<a id="pl.66.26"></a><var>66.26</var>and the creditors, including secured creditors, that the provider reasonably expects not <br />
         		<a id="pl.66.27"></a><var>66.27</var>to participate; and<br />
         		<a id="pl.66.28"></a><var>66.28</var>(5) disclosed, in addition to the written disclosure on the agreement required under <br />
         		<a id="pl.66.29"></a><var>66.29</var>subdivision 1, whether or not the debt management services provider is registered with the <br />
         		<a id="pl.66.30"></a><var>66.30</var>Minnesota Department of Commerce and any registration number.<br />
         		<a id="pl.66.31"></a><var>66.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Required </b><b>terms</b><b> provisions</b><b>.</b> (a) Each debt management services <br />
         		<a id="pl.66.32"></a><var>66.32</var>agreement must contain the following terms provisions, which must be disclosed <br />
         		<a id="pl.66.33"></a><var>66.33</var>prominently and clearly in bold print on the front page of the agreement, segregated by <br />
         		<a id="pl.66.34"></a><var>66.34</var>bold lines from all other information on the page:<br />
         		<a id="pl.66.35"></a><var>66.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the origination fee amount to be paid by the debtor and whether all or a portion <br />
         		<a id="pl.66.36"></a><var>66.36</var>of the initial origination fee amount is refundable or nonrefundable;<br />
         		<a id="pl.67.1"></a><var>67.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the monthly fee amount or percentage to be paid by the debtor; and<br />
         		<a id="pl.67.2"></a><var>67.2</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the total amount of fees reasonably anticipated to be paid by the debtor over <br />
         		<a id="pl.67.3"></a><var>67.3</var>the term of the agreement.<br />
         		<a id="pl.67.4"></a><var>67.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Each debt management services agreement must also contain the following:<br />
         		<a id="pl.67.5"></a><var>67.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) a disclosure that if the amount of debt owed is increased by interest, late fees, <br />
         		<a id="pl.67.6"></a><var>67.6</var>over the limit fees, and other amounts imposed by the creditors, the length of the debt <br />
         		<a id="pl.67.7"></a><var>67.7</var>management services agreement will be extended and remain in force and that the total <br />
         		<a id="pl.67.8"></a><var>67.8</var>dollar charges agreed upon may increase at the rate agreed upon in the original contract <br />
         		<a id="pl.67.9"></a><var>67.9</var>agreement;<br />
         		<a id="pl.67.10"></a><var>67.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) a prominent statement describing the terms upon which the debtor may cancel <br />
         		<a id="pl.67.11"></a><var>67.11</var>the contract as set forth in section 
         <statute_ref>332A.11</statute_ref>;<br />
         		<a id="pl.67.12"></a><var>67.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a detailed description of all services to be performed by the debt management <br />
         		<a id="pl.67.13"></a><var>67.13</var>services provider for the debtor;<br />
         		<a id="pl.67.14"></a><var>67.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the debt management services provider's refund policy; and<br />
         		<a id="pl.67.15"></a><var>67.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) the debt management services provider's principal business address and the name <br />
         		<a id="pl.67.16"></a><var>67.16</var>and address of its agent in this state authorized to receive service of process.<br />
         		<a id="pl.67.17"></a><var>67.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Prohibited terms.</b> The following terms shall not be included in the debt <br />
         		<a id="pl.67.18"></a><var>67.18</var>management services agreement:<br />
         		<a id="pl.67.19"></a><var>67.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) a hold harmless clause;<br />
         		<a id="pl.67.20"></a><var>67.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) a confession of judgment, or a power of attorney to confess judgment against the <br />
         		<a id="pl.67.21"></a><var>67.21</var>debtor or appear as the debtor in any judicial proceeding;<br />
         		<a id="pl.67.22"></a><var>67.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a waiver of the right to a jury trial, if applicable, in any action brought by <br />
         		<a id="pl.67.23"></a><var>67.23</var>or against a debtor;<br />
         		<a id="pl.67.24"></a><var>67.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) an assignment of or an order for payment of wages or other compensation for <br />
         		<a id="pl.67.25"></a><var>67.25</var>services;<br />
         		<a id="pl.67.26"></a><var>67.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) a provision in which the debtor agrees not to assert any claim or defense arising <br />
         		<a id="pl.67.27"></a><var>67.27</var>out of the debt management services agreement;<br />
         		<a id="pl.67.28"></a><var>67.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) a waiver of any provision of this chapter or a release of any obligation required <br />
         		<a id="pl.67.29"></a><var>67.29</var>to be performed on the part of the debt management services provider; or<br />
         		<a id="pl.67.30"></a><var>67.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) a mandatory arbitration or choice of law clause.<br />
         		<a id="pl.67.31"></a><var>67.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5.  <b>New debt management services agreements; modification of existing </b><br />
         		<a id="pl.67.32"></a><var>67.32</var><b>agreements.</b> (a) Separate and additional debt management services agreements that <br />
         		<a id="pl.67.33"></a><var>67.33</var>comply with this chapter may be entered into by the debt management services provider <br />
         		<a id="pl.67.34"></a><var>67.34</var>and the debtor provided that no additional initial origination fee may be charged by the <br />
         		<a id="pl.67.35"></a><var>67.35</var>debt management services provider. <br />
         		<a id="pl.68.1"></a><var>68.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Any modification of an existing debt management services agreement, including <br />
         		<a id="pl.68.2"></a><var>68.2</var>any increase in the number or amount of debts included in the debt management service <br />
         		<a id="pl.68.3"></a><var>68.3</var>services agreement, must be in writing and signed by both parties, except that the signature <br />
         		<a id="pl.68.4"></a><var>68.4</var>of the debtor is not required if: <br />
         		<a id="pl.68.5"></a><var>68.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) a creditor is added to or deleted from a debt management services agreement <br />
         		<a id="pl.68.6"></a><var>68.6</var>at the request of the debtor or a debtor voluntarily increases the amount of a payment, <br />
         		<a id="pl.68.7"></a><var>68.7</var>provided the debt management services provider must provide an updated payment <br />
         		<a id="pl.68.8"></a><var>68.8</var>schedule to the debtor within seven days; or <br />
         		<a id="pl.68.9"></a><var>68.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the payment amount to a creditor in the agreement increases by $10 or less <br />
         		<a id="pl.68.10"></a><var>68.10</var>and the total payment amount to all creditors increases a total of $20 or less as a result <br />
         		<a id="pl.68.11"></a><var>68.11</var>of incorrect or incomplete information provided by the debtor regarding the amount of <br />
         		<a id="pl.68.12"></a><var>68.12</var>debt owed a creditor, provided the debt management services provider must notify the <br />
         		<a id="pl.68.13"></a><var>68.13</var>debtor of the increase within seven days. <br />
         		<a id="pl.68.14"></a><var>68.14</var>&nbsp;&nbsp;&nbsp;&nbsp;No fees, charges, or other consideration may be demanded from the debtor for <br />
         		<a id="pl.68.15"></a><var>68.15</var>the modification, other than an increase in the amount of the monthly maintenance fee <br />
         		<a id="pl.68.16"></a><var>68.16</var>established in the original debt management services agreement. <br />
         		<br />
         		<a id="bill.8.15.0"></a><a id="pl.68.17"></a><var>68.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2008, section 332A.11, subdivision 2, is amended to read:<br />
         		<a id="pl.68.18"></a><var>68.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Notice of debtor's right to cancel.</b> A debt management services <br />
         		<a id="pl.68.19"></a><var>68.19</var>agreement must contain, on its face, in an easily readable typeface type immediately <br />
         		<a id="pl.68.20"></a><var>68.20</var>adjacent to the space for signature by the debtor, the following notice: "Right To Cancel: <br />
         		<a id="pl.68.21"></a><var>68.21</var>You have the right to cancel this contract at any time on ten days' written notice." <br />
         		<br />
         		<a id="bill.8.16.0"></a><a id="pl.68.22"></a><var>68.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2008, section 332A.14, is amended to read:<br />
         		<a id="pl.68.23"></a><var>68.23</var><b>332A.14 PROHIBITIONS.</b><br />
         		<a id="pl.68.24"></a><var>68.24</var>&nbsp;&nbsp;&nbsp;&nbsp;A registrant (a) No debt management services provider shall not:<br />
         		<a id="pl.68.25"></a><var>68.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) purchase from a creditor any obligation of a debtor;<br />
         		<a id="pl.68.26"></a><var>68.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) use, threaten to use, seek to have used, or seek to have threatened the use of any <br />
         		<a id="pl.68.27"></a><var>68.27</var>legal process, including but not limited to garnishment and repossession of personal <br />
         		<a id="pl.68.28"></a><var>68.28</var>property, against any debtor while the debt management services agreement between the <br />
         		<a id="pl.68.29"></a><var>68.29</var>registrant and the debtor remains executory;<br />
         		<a id="pl.68.30"></a><var>68.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) advise, counsel, or encourage a debtor to stop paying a creditor until a debt <br />
         		<a id="pl.68.31"></a><var>68.31</var>management services plan is in place, or imply, infer, encourage, or in any other way <br />
         		<a id="pl.68.32"></a><var>68.32</var>indicate, that it is advisable to stop paying a creditor;<br />
         		<a id="pl.69.1"></a><var>69.1</var>(4) sanction or condone the act by a debtor of ceasing payments or imply, infer, <br />
         		<a id="pl.69.2"></a><var>69.2</var>or in any manner indicate that the act of ceasing payments is advisable or beneficial to <br />
         		<a id="pl.69.3"></a><var>69.3</var>the debtor;<br />
         		<a id="pl.69.4"></a><var>69.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) (5) require as a condition of performing debt management services the purchase <br />
         		<a id="pl.69.5"></a><var>69.5</var>of any services, stock, insurance, commodity, or other property or any interest therein <br />
         		<a id="pl.69.6"></a><var>69.6</var>either by the debtor or the registrant;<br />
         		<a id="pl.69.7"></a><var>69.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) (6) compromise any debts unless the prior written approval of the debtor has <br />
         		<a id="pl.69.8"></a><var>69.8</var>been obtained to such compromise and unless such compromise inures solely to the <br />
         		<a id="pl.69.9"></a><var>69.9</var>benefit of the debtor;<br />
         		<a id="pl.69.10"></a><var>69.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) (7) receive from any debtor as security or in payment of any fee a promissory <br />
         		<a id="pl.69.11"></a><var>69.11</var>note or other promise to pay or any mortgage or other security, whether as to real or <br />
         		<a id="pl.69.12"></a><var>69.12</var>personal property;<br />
         		<a id="pl.69.13"></a><var>69.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) (8) lend money or provide credit to any debtor if any interest or fee is charged, <br />
         		<a id="pl.69.14"></a><var>69.14</var>or directly or indirectly collect any fee for referring, advising, procuring, arranging, or <br />
         		<a id="pl.69.15"></a><var>69.15</var>assisting a consumer in obtaining any extension of credit or other debtor service from a <br />
         		<a id="pl.69.16"></a><var>69.16</var>lender or debt management services provider;<br />
         		<a id="pl.69.17"></a><var>69.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) (9) structure a debt management services agreement that would result in negative <br />
         		<a id="pl.69.18"></a><var>69.18</var>amortization of any debt in the plan;<br />
         		<a id="pl.69.19"></a><var>69.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) (10) engage in any unfair, deceptive, or unconscionable act or practice in <br />
         		<a id="pl.69.20"></a><var>69.20</var>connection with any service provided to any debtor;<br />
         		<a id="pl.69.21"></a><var>69.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) (11) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or <br />
         		<a id="pl.69.22"></a><var>69.22</var>other compensation to any person for referring any prospective customer to the registrant <br />
         		<a id="pl.69.23"></a><var>69.23</var>or for enrolling a debtor in a debt management services plan, or provide any other <br />
         		<a id="pl.69.24"></a><var>69.24</var>incentives for employees or agents of the debt management services provider to induce <br />
         		<a id="pl.69.25"></a><var>69.25</var>debtors to enter into a debt management services plan;<br />
         		<a id="pl.69.26"></a><var>69.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) (12) receive any cash, fee, gift, bonus, premium, reward, or other compensation <br />
         		<a id="pl.69.27"></a><var>69.27</var>from any person other than the debtor or a person on the debtor's behalf in connection <br />
         		<a id="pl.69.28"></a><var>69.28</var>with activities as a registrant, provided that this paragraph does not apply to a registrant <br />
         		<a id="pl.69.29"></a><var>69.29</var>which is a bona fide nonprofit corporation duly organized under chapter 317A or under <br />
         		<a id="pl.69.30"></a><var>69.30</var>the similar laws of another state;<br />
         		<a id="pl.69.31"></a><var>69.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) (13) enter into a contract with a debtor unless a thorough written budget analysis <br />
         		<a id="pl.69.32"></a><var>69.32</var>indicates that the debtor can reasonably meet the requirements of the financial adjustment <br />
         		<a id="pl.69.33"></a><var>69.33</var>plan and will be benefited by the plan;<br />
         		<a id="pl.69.34"></a><var>69.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(13) (14) in any way charge or purport to charge or provide any debtor credit <br />
         		<a id="pl.69.35"></a><var>69.35</var>insurance in conjunction with any contract or agreement involved in the debt management <br />
         		<a id="pl.69.36"></a><var>69.36</var>services plan;<br />
         		<a id="pl.70.1"></a><var>70.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(14) (15) operate or employ a person who is an employee or owner of a collection <br />
         		<a id="pl.70.2"></a><var>70.2</var>agency or process-serving business; or<br />
         		<a id="pl.70.3"></a><var>70.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(15) (16) solicit, demand, collect, require, or attempt to require payment of a sum <br />
         		<a id="pl.70.4"></a><var>70.4</var>that the registrant states, discloses, or advertises to be a voluntary contribution to a debt <br />
         		<a id="pl.70.5"></a><var>70.5</var>management services provider or designee from the debtor.<br />
         		<br />
         		<a id="bill.8.17.0"></a><a id="pl.70.6"></a><var>70.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. <b>[332B.02] DEFINITIONS.</b><br />
         		<a id="pl.70.7"></a><var>70.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Scope.</b> Unless a different meaning is clearly indicated by the context, <br />
         		<a id="pl.70.8"></a><var>70.8</var>for the purposes of this chapter, the terms defined in this section have the meanings given <br />
         		<a id="pl.70.9"></a><var>70.9</var>them.<br />
         		<a id="pl.70.10"></a><var>70.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Advertise.</b> "Advertise" means to solicit business through any means or <br />
         		<a id="pl.70.11"></a><var>70.11</var>medium.<br />
         		<a id="pl.70.12"></a><var>70.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Aggregate debt.</b> "Aggregate debt" means the total of principal and interest <br />
         		<a id="pl.70.13"></a><var>70.13</var>that is owed by the debtor to the creditors at the time of execution of the debt settlement <br />
         		<a id="pl.70.14"></a><var>70.14</var>agreement.<br />
         		<a id="pl.70.15"></a><var>70.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Attorney general.</b> "Attorney general" means the attorney general of the <br />
         		<a id="pl.70.16"></a><var>70.16</var>state of Minnesota.<br />
         		<a id="pl.70.17"></a><var>70.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Commissioner.</b> "Commissioner" means the commissioner of commerce.<br />
         		<a id="pl.70.18"></a><var>70.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Controlling or affiliated party.</b> "Controlling or affiliated party" means <br />
         		<a id="pl.70.19"></a><var>70.19</var>any person or entity that controls or is controlled, directly or indirectly, or is under <br />
         		<a id="pl.70.20"></a><var>70.20</var>common control with another person. Controlling or affiliated party includes, but is not <br />
         		<a id="pl.70.21"></a><var>70.21</var>limited to, employees, officers, independent contractors, corporations, partnerships, and <br />
         		<a id="pl.70.22"></a><var>70.22</var>limited liability corporations.<br />
         		<a id="pl.70.23"></a><var>70.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Debt settlement services.</b> "Debt settlement services" means any one or <br />
         		<a id="pl.70.24"></a><var>70.24</var>more of the following activities:<br />
         		<a id="pl.70.25"></a><var>70.25</var>(1) offering to provide advice, or offering to act or acting as an intermediary between <br />
         		<a id="pl.70.26"></a><var>70.26</var>a debtor and one or more of the debtor's creditors, where the primary purpose of the <br />
         		<a id="pl.70.27"></a><var>70.27</var>advice or action is to obtain a settlement for less than the full amount of debt, whether <br />
         		<a id="pl.70.28"></a><var>70.28</var>in principal, interest, fees, or other charges, incurred primarily for personal, family, or <br />
         		<a id="pl.70.29"></a><var>70.29</var>household purposes including, but not limited to, offering debt negotiation, debt reduction, <br />
         		<a id="pl.70.30"></a><var>70.30</var>or debt relief services; or<br />
         		<a id="pl.70.31"></a><var>70.31</var>(2) advising, encouraging, assisting, or counseling a debtor to accumulate funds in <br />
         		<a id="pl.70.32"></a><var>70.32</var>an account for future payment of a reduced amount of debt to one or more of the debtor's <br />
         		<a id="pl.70.33"></a><var>70.33</var>creditors.<br />
         		<a id="pl.71.1"></a><var>71.1</var>Any person so engaged or holding out as so engaged is deemed to be engaged in <br />
         		<a id="pl.71.2"></a><var>71.2</var>the provision of debt settlement services, regardless of whether or not a fee is charged for <br />
         		<a id="pl.71.3"></a><var>71.3</var>such services.<br />
         		<a id="pl.71.4"></a><var>71.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Debt settlement services agreement.</b> "Debt settlement services <br />
         		<a id="pl.71.5"></a><var>71.5</var>agreement" means the written contract between the debt settlement services provider <br />
         		<a id="pl.71.6"></a><var>71.6</var>and the debtor.<br />
         		<a id="pl.71.7"></a><var>71.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Debt settlement services plan.</b> "Debt settlement services plan" means the <br />
         		<a id="pl.71.8"></a><var>71.8</var>debtor's individualized package of debt settlement services set forth in the debt settlement <br />
         		<a id="pl.71.9"></a><var>71.9</var>services agreement.<br />
         		<a id="pl.71.10"></a><var>71.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Debt settlement services provider.</b> "Debt settlement services provider" <br />
         		<a id="pl.71.11"></a><var>71.11</var>means any person offering or providing debt settlement services to a debtor domiciled <br />
         		<a id="pl.71.12"></a><var>71.12</var>in this state, regardless of whether or not a fee is charged for the services and regardless <br />
         		<a id="pl.71.13"></a><var>71.13</var>of whether the person maintains a physical presence in the state. The term includes any <br />
         		<a id="pl.71.14"></a><var>71.14</var>person to whom duties under a debt management agreement or debt management plan <br />
         		<a id="pl.71.15"></a><var>71.15</var>are delegated.<br />
         		<a id="pl.71.16"></a><var>71.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Person.</b> "Person" means an individual, firm, partnership, association, <br />
         		<a id="pl.71.17"></a><var>71.17</var>or corporation.<br />
         		<br />
         		<a id="bill.8.18.0"></a><a id="pl.71.18"></a><var>71.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. <b>[332B.03] REQUIREMENT OF REGISTRATION.</b><br />
         		<a id="pl.71.19"></a><var>71.19</var>On or after August 1, 2009, it is unlawful for any person, whether or not located <br />
         		<a id="pl.71.20"></a><var>71.20</var>in this state, to operate as a debt settlement services provider or provide debt settlement <br />
         		<a id="pl.71.21"></a><var>71.21</var>services including, but not limited to, offering, advertising, or executing or causing to be <br />
         		<a id="pl.71.22"></a><var>71.22</var>executed any debt settlement services or debt settlement services agreement, except as <br />
         		<a id="pl.71.23"></a><var>71.23</var>authorized by law, without first becoming registered as provided in this chapter. Debt <br />
         		<a id="pl.71.24"></a><var>71.24</var>settlement services providers may continue to provide debt settlement services without <br />
         		<a id="pl.71.25"></a><var>71.25</var>complying with this chapter to those debtors who entered into a contract to participate <br />
         		<a id="pl.71.26"></a><var>71.26</var>in a debt settlement services plan prior to August 1, 2009, but may not enter into a debt <br />
         		<a id="pl.71.27"></a><var>71.27</var>settlement services agreement with a debt on or after August 1, 2009, without complying <br />
         		<a id="pl.71.28"></a><var>71.28</var>with this chapter.<br />
         		<br />
         		<a id="bill.8.19.0"></a><a id="pl.71.29"></a><var>71.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. <b>[332B.04] REGISTRATION.</b><br />
         		<a id="pl.71.30"></a><var>71.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Form.</b> Application for registration to operate as a debt settlement <br />
         		<a id="pl.71.31"></a><var>71.31</var>services provider in this state must be made in writing to the commissioner, under oath, in <br />
         		<a id="pl.71.32"></a><var>71.32</var>the form prescribed by the commissioner, and must contain:<br />
         		<a id="pl.71.33"></a><var>71.33</var>(1) the full name of each principal of the entity applying;<br />
         		<a id="pl.72.1"></a><var>72.1</var>(2) the address, which must not be a post office box, and the telephone number and, <br />
         		<a id="pl.72.2"></a><var>72.2</var>if applicable, the e-mail address, of the applicant;<br />
         		<a id="pl.72.3"></a><var>72.3</var>(3) consent to the jurisdiction of the courts of this state;<br />
         		<a id="pl.72.4"></a><var>72.4</var>(4) the name and address of the registered agent authorized to accept service of <br />
         		<a id="pl.72.5"></a><var>72.5</var>process on behalf of the applicant or appointment of the commissioner as the applicant's <br />
         		<a id="pl.72.6"></a><var>72.6</var>agent for purposes of accepting service of process;<br />
         		<a id="pl.72.7"></a><var>72.7</var>(5) disclosure of:<br />
         		<a id="pl.72.8"></a><var>72.8</var>(i) whether any controlling or affiliated party has ever been convicted of a crime <br />
         		<a id="pl.72.9"></a><var>72.9</var>or found civilly liable for an offense involving moral turpitude, including forgery, <br />
         		<a id="pl.72.10"></a><var>72.10</var>embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to <br />
         		<a id="pl.72.11"></a><var>72.11</var>defraud, or any other similar offense or violation, or any violation of a federal or state <br />
         		<a id="pl.72.12"></a><var>72.12</var>law or regulation in connection with activities relating to the rendition of debt settlement <br />
         		<a id="pl.72.13"></a><var>72.13</var>services or involving any consumer fraud, false advertising, deceptive trade practices, or <br />
         		<a id="pl.72.14"></a><var>72.14</var>similar consumer protection law;<br />
         		<a id="pl.72.15"></a><var>72.15</var>(ii) any judgments, private or public litigation, tax liens, written complaints, <br />
         		<a id="pl.72.16"></a><var>72.16</var>administrative actions, or investigations by any government agency against the applicant <br />
         		<a id="pl.72.17"></a><var>72.17</var>or any officer, director, manager, or shareholder owning more than five percent interest <br />
         		<a id="pl.72.18"></a><var>72.18</var>in the applicant, unresolved or otherwise, filed or otherwise commenced within the <br />
         		<a id="pl.72.19"></a><var>72.19</var>preceding ten years;<br />
         		<a id="pl.72.20"></a><var>72.20</var>(iii) whether the applicant or any person employed by the applicant has had a record <br />
         		<a id="pl.72.21"></a><var>72.21</var>of having defaulted in the payment of money collected for others, including the discharge <br />
         		<a id="pl.72.22"></a><var>72.22</var>of debts through bankruptcy proceedings; and<br />
         		<a id="pl.72.23"></a><var>72.23</var>(iv) whether the applicant's license or registration to provide debt settlement services <br />
         		<a id="pl.72.24"></a><var>72.24</var>in any other state has ever been revoked or suspended;<br />
         		<a id="pl.72.25"></a><var>72.25</var>(6) a copy of the applicant's standard debt settlement services agreement that the <br />
         		<a id="pl.72.26"></a><var>72.26</var>applicant intends to execute with debtors;<br />
         		<a id="pl.72.27"></a><var>72.27</var>(7) proof of accreditation; and<br />
         		<a id="pl.72.28"></a><var>72.28</var>(8) any other information and material as the commissioner may require.<br />
         		<a id="pl.72.29"></a><var>72.29</var>The commissioner may, for good cause shown, temporarily waive any requirement <br />
         		<a id="pl.72.30"></a><var>72.30</var>of this subdivision.<br />
         		<a id="pl.72.31"></a><var>72.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Term and scope of registration.</b> A registration is effective until 11:59 <br />
         		<a id="pl.72.32"></a><var>72.32</var>p.m. on December 31 of the year for which the application for registration is filed or until <br />
         		<a id="pl.72.33"></a><var>72.33</var>it is surrendered by the registrant or revoked or suspended by the commissioner. The <br />
         		<a id="pl.72.34"></a><var>72.34</var>registration is limited solely to the business of providing debt settlement services.<br />
         		<a id="pl.72.35"></a><var>72.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Fees; bond.</b> An applicant for registration as a debt settlement services <br />
         		<a id="pl.72.36"></a><var>72.36</var>provider must comply with the requirements of section 332A.04, subdivisions 3, 4, and 5.<br />
         		<a id="pl.73.1"></a><var>73.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Right of action on bond.</b> If the registrant has failed to account to a debtor, <br />
         		<a id="pl.73.2"></a><var>73.2</var>or has failed to perform any of the services promised, the registrant is in default. The <br />
         		<a id="pl.73.3"></a><var>73.3</var>debtor or the debtor's legal representative or receiver, the commissioner, or the attorney <br />
         		<a id="pl.73.4"></a><var>73.4</var>general, shall have, in addition to all other legal remedies, a right of action in the name of <br />
         		<a id="pl.73.5"></a><var>73.5</var>the debtor on the bond or the security given under this section, for loss suffered by the <br />
         		<a id="pl.73.6"></a><var>73.6</var>debtor, not exceeding the face amount of the bond or security, and without the necessity of <br />
         		<a id="pl.73.7"></a><var>73.7</var>joining the registrant in the suit or action based on the default.<br />
         		<a id="pl.73.8"></a><var>73.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Registrant list.</b> The commissioner must maintain a list of registered debt <br />
         		<a id="pl.73.9"></a><var>73.9</var>settlement services providers. The list must be made available to the public in written <br />
         		<a id="pl.73.10"></a><var>73.10</var>form upon request and on the Department of Commerce Web site.<br />
         		<a id="pl.73.11"></a><var>73.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Renewal of registration.</b> Each year, each registrant under the provisions <br />
         		<a id="pl.73.12"></a><var>73.12</var>of this chapter must not, more than 60 nor less than 30 days before its registration is to <br />
         		<a id="pl.73.13"></a><var>73.13</var>expire, apply to the commissioner for renewal of its registration on a form prescribed by <br />
         		<a id="pl.73.14"></a><var>73.14</var>the commissioner. The application must be signed by the registrant under penalty of <br />
         		<a id="pl.73.15"></a><var>73.15</var>perjury, contain current information on all matters required in the original application, and <br />
         		<a id="pl.73.16"></a><var>73.16</var>be accompanied by a payment of $250. The registrant must maintain a continuous surety <br />
         		<a id="pl.73.17"></a><var>73.17</var>bond that satisfies the requirements of section 332A.04, subdivision 4. The renewal is <br />
         		<a id="pl.73.18"></a><var>73.18</var>effective for one year. The commissioner may, for good cause shown, temporarily waive <br />
         		<a id="pl.73.19"></a><var>73.19</var>any requirement of this section.<br />
         		<br />
         		<a id="bill.8.20.0"></a><a id="pl.73.20"></a><var>73.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. <b>[332B.05] DENIAL, SUSPENSION, REVOCATION, OR </b><br />
         		<a id="pl.73.21"></a><var>73.21</var><b>NONRENEWAL OF REGISTRATION.</b><br />
         		<a id="pl.73.22"></a><var>73.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Denial.</b> The commissioner, with notice to the applicant by certified <br />
         		<a id="pl.73.23"></a><var>73.23</var>mail sent to the address listed on the application, may deny an application for a registration <br />
         		<a id="pl.73.24"></a><var>73.24</var>for any of the reasons specified under section 332A.08.<br />
         		<a id="pl.73.25"></a><var>73.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Suspension, revocation, or nonrenewal.</b> The commissioner may suspend, <br />
         		<a id="pl.73.26"></a><var>73.26</var>revoke, or refuse to renew any registration issued under this chapter, or may levy a civil <br />
         		<a id="pl.73.27"></a><var>73.27</var>penalty under section 45.027, or any combination of actions, if the debt settlement services <br />
         		<a id="pl.73.28"></a><var>73.28</var>provider or any controlling or affiliated person has committed any act or omission for <br />
         		<a id="pl.73.29"></a><var>73.29</var>which the commissioner could have refused to issue an initial registration.<br />
         		<a id="pl.73.30"></a><var>73.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Procedure.</b> Suspension, revocation, or nonrenewal must be upon notice <br />
         		<a id="pl.73.31"></a><var>73.31</var>and under the conditions prescribed in section 332A.09, subdivision 1. Upon issuance of <br />
         		<a id="pl.73.32"></a><var>73.32</var>an order suspending, revoking, or refusing to renew a registration, the commissioner:<br />
         		<a id="pl.73.33"></a><var>73.33</var>(1) shall follow the procedure established in section 332A.09, subdivision 2; and<br />
         		<a id="pl.73.34"></a><var>73.34</var>(2) may follow the procedure specified in section 332A.09, subdivision 3, concerning <br />
         		<a id="pl.73.35"></a><var>73.35</var>the appointment of a receiver for funds of sanctioned registrants.<br />
         		<br />
         		<a id="bill.8.21.0"></a><a id="pl.74.1"></a><var>74.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 21. <b>[332B.06] WRITTEN DEBT SETTLEMENT SERVICES AGREEMENT; </b><br />
         		<a id="pl.74.2"></a><var>74.2</var><b>DISCLOSURES; TRUST ACCOUNT.</b><br />
         		<a id="pl.74.3"></a><var>74.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Written agreement required.</b> (a) A debt settlement services <br />
         		<a id="pl.74.4"></a><var>74.4</var>provider may not perform, or impose any charges or receive any payment for, any debt <br />
         		<a id="pl.74.5"></a><var>74.5</var>settlement services until the provider and the debtor have executed a debt settlement <br />
         		<a id="pl.74.6"></a><var>74.6</var>services agreement that contains all terms of the agreement between the debt settlement <br />
         		<a id="pl.74.7"></a><var>74.7</var>services provider and the debtor and complies with all the applicable requirements of <br />
         		<a id="pl.74.8"></a><var>74.8</var>this chapter.<br />
         		<a id="pl.74.9"></a><var>74.9</var>(b) A debt settlement services agreement must:<br />
         		<a id="pl.74.10"></a><var>74.10</var>(1) be in writing, dated, and signed by the debt settlement services provider and <br />
         		<a id="pl.74.11"></a><var>74.11</var>the debtor;<br />
         		<a id="pl.74.12"></a><var>74.12</var>(2) conspicuously indicate whether or not the debt settlement services provider is <br />
         		<a id="pl.74.13"></a><var>74.13</var>registered with the Minnesota Department of Commerce and include any registration <br />
         		<a id="pl.74.14"></a><var>74.14</var>number; and<br />
         		<a id="pl.74.15"></a><var>74.15</var>(3) be written in the debtor's primary language if the debt settlement services <br />
         		<a id="pl.74.16"></a><var>74.16</var>provider advertises in that language.<br />
         		<a id="pl.74.17"></a><var>74.17</var>(c) The registrant must furnish the debtor with a copy of the signed contract upon <br />
         		<a id="pl.74.18"></a><var>74.18</var>execution.<br />
         		<a id="pl.74.19"></a><var>74.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Actions prior to executing a written agreement.</b> No person may provide <br />
         		<a id="pl.74.20"></a><var>74.20</var>debt settlement services for a debtor or execute a debt settlement services agreement <br />
         		<a id="pl.74.21"></a><var>74.21</var>unless the person first has: <br />
         		<a id="pl.74.22"></a><var>74.22</var>(1) provided the debtor individualized counseling that, at a minimum, addresses <br />
         		<a id="pl.74.23"></a><var>74.23</var>managing household finances, managing credit and debt, budgeting, personal savings <br />
         		<a id="pl.74.24"></a><var>74.24</var>strategies, and a detailed description of all the various ways to reduce or eliminate the <br />
         		<a id="pl.74.25"></a><var>74.25</var>debt, which must, at a minimum, include bankruptcy; and<br />
         		<a id="pl.74.26"></a><var>74.26</var>(2) prepared in writing and provided to the debtor, in a form the debtor may keep, <br />
         		<a id="pl.74.27"></a><var>74.27</var>an individualized financial analysis of the debtor's financial circumstances, including <br />
         		<a id="pl.74.28"></a><var>74.28</var>income and liabilities, and made a determination supported by the individualized financial <br />
         		<a id="pl.74.29"></a><var>74.29</var>analysis that:<br />
         		<a id="pl.74.30"></a><var>74.30</var>(i) the debt settlement plan proposed for addressing the debt is suitable for the <br />
         		<a id="pl.74.31"></a><var>74.31</var>individual debtor;<br />
         		<a id="pl.74.32"></a><var>74.32</var>(ii) the debtor can reasonably meet the requirements of the proposed debt settlement <br />
         		<a id="pl.74.33"></a><var>74.33</var>services plan; and<br />
         		<a id="pl.74.34"></a><var>74.34</var>(iii) there is a net tangible benefit to the debtor of entering into the proposed debt <br />
         		<a id="pl.74.35"></a><var>74.35</var>settlement services plan.<br />
         		<a id="pl.75.1"></a><var>75.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Disclosures.</b> (a) A person offering to provide or providing debt settlement <br />
         		<a id="pl.75.2"></a><var>75.2</var>services must disclose both orally and in writing whether or not the person is registered <br />
         		<a id="pl.75.3"></a><var>75.3</var>with the Minnesota Department of Commerce and any registration number.<br />
         		<a id="pl.75.4"></a><var>75.4</var>(b) No person may provide debt settlement services unless the person first has <br />
         		<a id="pl.75.5"></a><var>75.5</var>provided, both orally and in writing, on a single sheet of paper, separate from any other <br />
         		<a id="pl.75.6"></a><var>75.6</var>document or writing, the following verbatim notice:<br />
         		<a id="pl.75.7"></a><var>75.7</var>WARNING<br />
         		<a id="pl.75.8"></a><var>75.8</var>We CANNOT GUARANTEE that you will successfully reduce or eliminate your <br />
         		<a id="pl.75.9"></a><var>75.9</var>debt.<br />
         		<a id="pl.75.10"></a><var>75.10</var>You SHOULD NOT stop paying your creditors.<br />
         		<a id="pl.75.11"></a><var>75.11</var>Fees, interest, and other charges will continue to mount up during the (insert <br />
         		<a id="pl.75.12"></a><var>75.12</var>number) months this plan is in effect.<br />
         		<a id="pl.75.13"></a><var>75.13</var>Even if you sign up for this service:<br />
         		<a id="pl.75.14"></a><var>75.14</var>&#8226; YOUR WAGES OR BANK ACCOUNT MAY STILL BE GARNISHED.<br />
         		<a id="pl.75.15"></a><var>75.15</var>&#8226; YOU MAY STILL BE CONTACTED BY CREDITORS.<br />
         		<a id="pl.75.16"></a><var>75.16</var>&#8226; YOU MAY STILL BE SUED BY CREDITORS for the money you owe.<br />
         		<a id="pl.75.17"></a><var>75.17</var>Even if we do settle your debt, YOU MAY STILL HAVE TO PAY TAXES on <br />
         		<a id="pl.75.18"></a><var>75.18</var>the amount forgiven.<br />
         		<a id="pl.75.19"></a><var>75.19</var>Your credit rating may be adversely affected.<br />
         		<a id="pl.75.20"></a><var>75.20</var>(c) The heading, "WARNING," must be in bold, underlined, 28-point type, and the <br />
         		<a id="pl.75.21"></a><var>75.21</var>remaining text must be in 14-point type, with a double space between each statement.<br />
         		<a id="pl.75.22"></a><var>75.22</var>(d) The disclosure and notice required under this subdivision must be provided in <br />
         		<a id="pl.75.23"></a><var>75.23</var>the debtor's primary language if the debt settlement provider advertises in that language.<br />
         		<a id="pl.75.24"></a><var>75.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Required information.</b> (a) Each debt settlement services agreement must <br />
         		<a id="pl.75.25"></a><var>75.25</var>contain the following information, which must be disclosed prominently and clearly in <br />
         		<a id="pl.75.26"></a><var>75.26</var>bold print on the front page of the agreement, segregated by bold lines from all other <br />
         		<a id="pl.75.27"></a><var>75.27</var>information on the page:<br />
         		<a id="pl.75.28"></a><var>75.28</var>(1) the origination fee amount to be paid by the debtor and whether all or part of the <br />
         		<a id="pl.75.29"></a><var>75.29</var>origination fee is refundable or nonrefundable; and<br />
         		<a id="pl.75.30"></a><var>75.30</var>(2) the service fee formula and the total amount of service fees reasonably <br />
         		<a id="pl.75.31"></a><var>75.31</var>anticipated to be paid by the debtor over the term of the agreement.<br />
         		<a id="pl.75.32"></a><var>75.32</var>(b) Each debt settlement services agreement must also contain the following:<br />
         		<a id="pl.75.33"></a><var>75.33</var>(1) a prominent statement describing the terms upon which the debtor may cancel <br />
         		<a id="pl.75.34"></a><var>75.34</var>the contract as set forth in section 332B.07;<br />
         		<a id="pl.75.35"></a><var>75.35</var>(2) a detailed description of all services to be performed by the debt settlement <br />
         		<a id="pl.75.36"></a><var>75.36</var>services provider for the debtor;<br />
         		<a id="pl.76.1"></a><var>76.1</var>(3) the debt settlement services provider's refund policy;<br />
         		<a id="pl.76.2"></a><var>76.2</var>(4) the debt settlement services provider's principal business address, which must <br />
         		<a id="pl.76.3"></a><var>76.3</var>not be a post office box, and the name and address of its agent in this state authorized to <br />
         		<a id="pl.76.4"></a><var>76.4</var>receive service of process; and<br />
         		<a id="pl.76.5"></a><var>76.5</var>(5) the name of each creditor the debtor has listed and the aggregate debt owed to <br />
         		<a id="pl.76.6"></a><var>76.6</var>each creditor that will be the subject of settlement.<br />
         		<a id="pl.76.7"></a><var>76.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Prohibited terms.</b> A debt settlement services agreement may not contain <br />
         		<a id="pl.76.8"></a><var>76.8</var>any of the terms prohibited under section 332A.10, subdivision 4.<br />
         		<a id="pl.76.9"></a><var>76.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>New debt settlement services agreements; modifications of existing </b><br />
         		<a id="pl.76.10"></a><var>76.10</var><b>agreements.</b> (a) Separate and additional debt settlement services agreements that comply <br />
         		<a id="pl.76.11"></a><var>76.11</var>with this chapter may be entered into by the debt settlement services provider and the <br />
         		<a id="pl.76.12"></a><var>76.12</var>debtor, provided that no additional origination fee may be charged by the debt settlement <br />
         		<a id="pl.76.13"></a><var>76.13</var>services provider.<br />
         		<a id="pl.76.14"></a><var>76.14</var>(b) Any modification of an existing debt settlement services agreement, including <br />
         		<a id="pl.76.15"></a><var>76.15</var>any increase in the number or amount of debts included in the debt settlement services <br />
         		<a id="pl.76.16"></a><var>76.16</var>agreement, must be in writing and signed by both parties. No fee may be charged to <br />
         		<a id="pl.76.17"></a><var>76.17</var>modify an existing agreement.<br />
         		<a id="pl.76.18"></a><var>76.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Payments held in trust.</b> If the registrant holds funds for the debtor, the <br />
         		<a id="pl.76.19"></a><var>76.19</var>registrant must maintain a separate trust account and deposit in the account all payments <br />
         		<a id="pl.76.20"></a><var>76.20</var>received from the moment that the funds are available, except that the registrant may <br />
         		<a id="pl.76.21"></a><var>76.21</var>commingle the payment with the registrant's own property or funds, but only to the extent <br />
         		<a id="pl.76.22"></a><var>76.22</var>necessary to ensure the maintenance of a minimum balance if the financial institution at <br />
         		<a id="pl.76.23"></a><var>76.23</var>which the trust account is held requires a minimum balance to avoid the assessment of <br />
         		<a id="pl.76.24"></a><var>76.24</var>fees or penalties for failure to maintain a minimum balance. All disbursements, whether <br />
         		<a id="pl.76.25"></a><var>76.25</var>to the debtor or to the creditors of the debtor, or to the registrant, must be made from <br />
         		<a id="pl.76.26"></a><var>76.26</var>such account.<br />
         		<br />
         		<a id="bill.8.22.0"></a><a id="pl.76.27"></a><var>76.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. <b>[332B.07] RIGHT TO CANCEL.</b><br />
         		<a id="pl.76.28"></a><var>76.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Debtor's right to cancel.</b> (a) A debtor has the right to cancel a debt <br />
         		<a id="pl.76.29"></a><var>76.29</var>settlement services agreement without cause at any time upon ten days' written notice <br />
         		<a id="pl.76.30"></a><var>76.30</var>to the debt settlement services provider.<br />
         		<a id="pl.76.31"></a><var>76.31</var>(b) In the event of cancellation, the debt settlement services provider must, within <br />
         		<a id="pl.76.32"></a><var>76.32</var>ten days of the cancellation, notify the debtor's creditors of the cancellation and provide <br />
         		<a id="pl.76.33"></a><var>76.33</var>a refund of all funds paid by or for the debtor to the debt settlement services provider, <br />
         		<a id="pl.76.34"></a><var>76.34</var>except for the origination fee specified in section 332B.09, subdivision 1.<br />
         		<a id="pl.77.1"></a><var>77.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Notice of debtor's right to cancel.</b> A debt settlement services agreement <br />
         		<a id="pl.77.2"></a><var>77.2</var>must contain, on its face, in an easily readable type immediately adjacent to the space for <br />
         		<a id="pl.77.3"></a><var>77.3</var>signature by the debtor, the following notice: "Right to Cancel: You have the right to <br />
         		<a id="pl.77.4"></a><var>77.4</var>cancel this contract at any time on ten days' written notice."<br />
         		<a id="pl.77.5"></a><var>77.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Automatic termination.</b> Upon the payment of all listed or settled debts <br />
         		<a id="pl.77.6"></a><var>77.6</var>and fees, the debt settlement services agreement must automatically terminate, and all <br />
         		<a id="pl.77.7"></a><var>77.7</var>unexpended funds paid by or for the debtor to the debt settlement services provider must <br />
         		<a id="pl.77.8"></a><var>77.8</var>be immediately returned to the debtor.<br />
         		<a id="pl.77.9"></a><var>77.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Debt settlement services provider's right to cancel.</b> (a) A debt settlement <br />
         		<a id="pl.77.10"></a><var>77.10</var>services provider may cancel a debt settlement services agreement with good cause upon <br />
         		<a id="pl.77.11"></a><var>77.11</var>30 days' written notice to the debtor.<br />
         		<a id="pl.77.12"></a><var>77.12</var>(b) Within ten days after the cancellation, the debt settlement services provider must:<br />
         		<a id="pl.77.13"></a><var>77.13</var>(1) notify the debtor's creditors of the cancellation; and<br />
         		<a id="pl.77.14"></a><var>77.14</var>(2) return to the debtor all funds paid by or for the debtor to the debt settlement <br />
         		<a id="pl.77.15"></a><var>77.15</var>provider, except for the origination fee specified in section 332B.09, subdivision 1.<br />
         		<br />
         		<a id="bill.8.23.0"></a><a id="pl.77.16"></a><var>77.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 23. <b>[332B.08] BOOKS, RECORDS, AND INFORMATION.</b><br />
         		<a id="pl.77.17"></a><var>77.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Records retention; annual report.</b> Every registrant must keep, and <br />
         		<a id="pl.77.18"></a><var>77.18</var>use in the registrant's business, such books, accounts, and records, including electronic <br />
         		<a id="pl.77.19"></a><var>77.19</var>records, as will enable the commissioner to determine whether the registrant is complying <br />
         		<a id="pl.77.20"></a><var>77.20</var>with this chapter and the rules, orders, and directives adopted by the commissioner under <br />
         		<a id="pl.77.21"></a><var>77.21</var>this chapter. Every registrant must preserve such books, accounts, and records for at least <br />
         		<a id="pl.77.22"></a><var>77.22</var>six years after making the final entry on any transaction recorded therein. Examinations <br />
         		<a id="pl.77.23"></a><var>77.23</var>of the books, records, and method of operations conducted under the supervision of the <br />
         		<a id="pl.77.24"></a><var>77.24</var>commissioner shall be done at the cost of the registrant. The cost must be assessed as <br />
         		<a id="pl.77.25"></a><var>77.25</var>determined under section 46.131.<br />
         		<a id="pl.77.26"></a><var>77.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Annual report.</b> On or before March 15 of each calendar year, each <br />
         		<a id="pl.77.27"></a><var>77.27</var>registrant must file a report with the commissioner containing such information as the <br />
         		<a id="pl.77.28"></a><var>77.28</var>commissioner may require about the preceding calendar year. The report must be in a <br />
         		<a id="pl.77.29"></a><var>77.29</var>form the commissioner prescribes.<br />
         		<a id="pl.77.30"></a><var>77.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Statements to debtors.</b> (a) Each registrant must:<br />
         		<a id="pl.77.31"></a><var>77.31</var>(1) maintain and make available records and accounts that will enable each debtor to <br />
         		<a id="pl.77.32"></a><var>77.32</var>ascertain the amounts paid to the creditors of the debtor. A statement showing amounts <br />
         		<a id="pl.77.33"></a><var>77.33</var>received from the debtor, disbursements to each creditor, amounts that any creditor has <br />
         		<a id="pl.77.34"></a><var>77.34</var>agreed to as payment in full for any debt owed the creditor by the debtor, charges deducted <br />
         		<a id="pl.77.35"></a><var>77.35</var>by the registrant, and other information as the commissioner may prescribe, must be <br />
         		<a id="pl.78.1"></a><var>78.1</var>furnished by the registrant to the debtor at least monthly and, in addition, upon any <br />
         		<a id="pl.78.2"></a><var>78.2</var>cancellation or termination of the contract;<br />
         		<a id="pl.78.3"></a><var>78.3</var>(2) include in the statement furnished to debtors a list of all activities conducted <br />
         		<a id="pl.78.4"></a><var>78.4</var>pursuant to the contract, including the number and description of communications with <br />
         		<a id="pl.78.5"></a><var>78.5</var>each creditor during the reporting period; and<br />
         		<a id="pl.78.6"></a><var>78.6</var>(3) prepare and retain in the file of each debtor a written analysis of the debtor's <br />
         		<a id="pl.78.7"></a><var>78.7</var>income and expenses to substantiate that the plan of payment is feasible and practicable.<br />
         		<a id="pl.78.8"></a><var>78.8</var>(b) Each debtor must have reasonable access, without cost, by electronic or other <br />
         		<a id="pl.78.9"></a><var>78.9</var>means, to information in the registrant's files applicable to the debtor. These statements, <br />
         		<a id="pl.78.10"></a><var>78.10</var>records, and accounts must otherwise remain confidential, except for duly authorized <br />
         		<a id="pl.78.11"></a><var>78.11</var>state and government officials, the commissioner, the attorney general, the debtor, and <br />
         		<a id="pl.78.12"></a><var>78.12</var>the debtor's representative and designees.<br />
         		<br />
         		<a id="bill.8.24.0"></a><a id="pl.78.13"></a><var>78.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 24. <b>[332B.09] FEES, PAYMENTS, AND CONSENT OF CREDITORS.</b><br />
         		<a id="pl.78.14"></a><var>78.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Origination fee.</b> A debt settlement services provider may charge a <br />
         		<a id="pl.78.15"></a><var>78.15</var>nonrefundable origination fee of not more than $50.<br />
         		<a id="pl.78.16"></a><var>78.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Service fee.</b> In addition to the origination fee under subdivision 1, a debt <br />
         		<a id="pl.78.17"></a><var>78.17</var>settlement services provider may charge a service fee equal to five percent of the savings <br />
         		<a id="pl.78.18"></a><var>78.18</var>actually negotiated by the debt settlement services provider. No other fees may be charged. <br />
         		<a id="pl.78.19"></a><var>78.19</var>The savings shall be calculated as the difference between the aggregate debt that is stated <br />
         		<a id="pl.78.20"></a><var>78.20</var>in the debt settlement services agreement at the time of its execution and total amount <br />
         		<a id="pl.78.21"></a><var>78.21</var>that the debtor actually pays to settle all the debts stated in the debt settlement services <br />
         		<a id="pl.78.22"></a><var>78.22</var>agreement, provided that only savings resulting from concessions actually negotiated by <br />
         		<a id="pl.78.23"></a><var>78.23</var>the debt settlement services provider may be counted.<br />
         		<a id="pl.78.24"></a><var>78.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Collection of fees.</b> No debt settlement services provider may claim, <br />
         		<a id="pl.78.25"></a><var>78.25</var>demand, charge, collect, or receive any compensation until after the debt settlement <br />
         		<a id="pl.78.26"></a><var>78.26</var>service provider has fully performed each and every service the provider has contracted to <br />
         		<a id="pl.78.27"></a><var>78.27</var>perform or represented would be performed or as otherwise provided in this section.<br />
         		<a id="pl.78.28"></a><var>78.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Consent of creditors.</b> Before providing any services, a debt settlement <br />
         		<a id="pl.78.29"></a><var>78.29</var>services provider must obtain the written consent of all creditors that agree to participate in <br />
         		<a id="pl.78.30"></a><var>78.30</var>the debt settlement services plan set forth in the debt management services agreement. The <br />
         		<a id="pl.78.31"></a><var>78.31</var>debt settlement services provider must notify the debtor within ten days after any failure to <br />
         		<a id="pl.78.32"></a><var>78.32</var>obtain the required consent of any creditor and of the debtor's right to cancel the agreement <br />
         		<a id="pl.78.33"></a><var>78.33</var>without penalty. If not all creditors listed in the debt settlement services agreement have <br />
         		<a id="pl.78.34"></a><var>78.34</var>consented to participate in the debt settlement services plan, the debt settlement services <br />
         		<a id="pl.79.1"></a><var>79.1</var>provider must obtain the written authorization from the debtor to proceed with the debt <br />
         		<a id="pl.79.2"></a><var>79.2</var>settlement services agreement without the participation of all listed creditors.<br />
         		<a id="pl.79.3"></a><var>79.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Withdrawal of creditor.</b> Whenever a creditor withdraws from a debt <br />
         		<a id="pl.79.4"></a><var>79.4</var>settlement services plan, the debt settlement services provider must promptly notify the <br />
         		<a id="pl.79.5"></a><var>79.5</var>debtor of the withdrawal, identify the creditor, and inform the debtor of the right to cancel <br />
         		<a id="pl.79.6"></a><var>79.6</var>the debt settlement services agreement. In no case may this notice be provided more <br />
         		<a id="pl.79.7"></a><var>79.7</var>than 15 days after the debt settlement services provider learns of the creditor's decision <br />
         		<a id="pl.79.8"></a><var>79.8</var>to withdraw from a plan.<br />
         		<a id="pl.79.9"></a><var>79.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Timely notification of settlement.</b> A debt settlement services provider <br />
         		<a id="pl.79.10"></a><var>79.10</var>must notify the debtor within 24 hours of settlement of a debt with a creditor.<br />
         		<br />
         		<a id="bill.8.25.0"></a><a id="pl.79.11"></a><var>79.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 25. <b>[332B.10] PROHIBITIONS.</b><br />
         		<a id="pl.79.12"></a><var>79.12</var>No debt settlement services provider shall:<br />
         		<a id="pl.79.13"></a><var>79.13</var>(1) engage in any activity, act, or omission prohibited under section 332A.14;<br />
         		<a id="pl.79.14"></a><var>79.14</var>(2) promise, guarantee, or directly or indirectly imply, infer, or in any manner <br />
         		<a id="pl.79.15"></a><var>79.15</var>represent that any debt will be settled prior to the presentation to the debtor of an offer by <br />
         		<a id="pl.79.16"></a><var>79.16</var>the creditors participating in the debt settlement plan to settle;<br />
         		<a id="pl.79.17"></a><var>79.17</var>(3) misrepresent the timing of negotiations with creditors;<br />
         		<a id="pl.79.18"></a><var>79.18</var>(4) imply, infer, or in any manner represent that:<br />
         		<a id="pl.79.19"></a><var>79.19</var>(i) fees, interest, and other charges will not continue to accrue prior to the time <br />
         		<a id="pl.79.20"></a><var>79.20</var>debts are settled;<br />
         		<a id="pl.79.21"></a><var>79.21</var>(ii) wages or bank accounts are not subject to garnishment;<br />
         		<a id="pl.79.22"></a><var>79.22</var>(iii) creditors will not continue to contact the debtor;<br />
         		<a id="pl.79.23"></a><var>79.23</var>(iv) the debtor is not subject to legal action; and<br />
         		<a id="pl.79.24"></a><var>79.24</var>(v) the debtor will not be subject to tax consequences for the portion of any debts <br />
         		<a id="pl.79.25"></a><var>79.25</var>forgiven;<br />
         		<a id="pl.79.26"></a><var>79.26</var>(5) execute a power of attorney or any other agreement, oral or written, express <br />
         		<a id="pl.79.27"></a><var>79.27</var>or implied, that extinguishes or limits the debtor's right at any time to contract or <br />
         		<a id="pl.79.28"></a><var>79.28</var>communicate with any creditor or the creditor's right at any time to communicate with <br />
         		<a id="pl.79.29"></a><var>79.29</var>the debtor;<br />
         		<a id="pl.79.30"></a><var>79.30</var>(6) exercise or attempt to exercise a power of attorney after an individual has <br />
         		<a id="pl.79.31"></a><var>79.31</var>terminated an agreement;<br />
         		<a id="pl.79.32"></a><var>79.32</var>(7) state, imply, infer, or, in any other manner, indicate that entering into a debt <br />
         		<a id="pl.79.33"></a><var>79.33</var>settlement services agreement or settling debts will either have no effect on, or improve, <br />
         		<a id="pl.79.34"></a><var>79.34</var>the debtor's credit, credit rating, and credit score;<br />
         		<a id="pl.79.35"></a><var>79.35</var>(8) challenge a debt without the written consent of the debtor;<br />
         		<a id="pl.80.1"></a><var>80.1</var>(9) make any false or misleading claim regarding a creditor's right to collect a debt;<br />
         		<a id="pl.80.2"></a><var>80.2</var>(10) represent that the debt settlement services provider can negotiate better <br />
         		<a id="pl.80.3"></a><var>80.3</var>settlement terms with a creditor than the debtor alone can negotiate;<br />
         		<a id="pl.80.4"></a><var>80.4</var>(11) provide or offer to provide legal advice or legal services unless the person <br />
         		<a id="pl.80.5"></a><var>80.5</var>providing or offering to provide legal advice is licensed to practice law in the state;<br />
         		<a id="pl.80.6"></a><var>80.6</var>(12) misrepresent that it is authorized or competent to furnish legal advice or <br />
         		<a id="pl.80.7"></a><var>80.7</var>perform legal services; and<br />
         		<a id="pl.80.8"></a><var>80.8</var>(13) settle a debt or lead an individual to believe that a payment to a creditor is in <br />
         		<a id="pl.80.9"></a><var>80.9</var>settlement of a debt to the creditor unless, at the time of settlement, the individual receives <br />
         		<a id="pl.80.10"></a><var>80.10</var>a certification from the creditor that the payment is in full settlement of the debt.<br />
         		<br />
         		<a id="bill.8.26.0"></a><a id="pl.80.11"></a><var>80.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 26. <b>[332B.11] ADVERTISEMENT OF DEBT SETTLEMENT SERVICES </b><br />
         		<a id="pl.80.12"></a><var>80.12</var><b>PLAN.</b><br />
         		<a id="pl.80.13"></a><var>80.13</var>No debt settlement services provider may engage in any activity proscribed by <br />
         		<a id="pl.80.14"></a><var>80.14</var>section 332A.16, or represent, claim, imply, or infer that secured debts may be settled.<br />
         		<br />
         		<a id="bill.8.27.0"></a><a id="pl.80.15"></a><var>80.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 27. <b>[332B.12] DEBT SETTLEMENT SERVICES AGREEMENT </b><br />
         		<a id="pl.80.16"></a><var>80.16</var><b>RESCISSION.</b><br />
         		<a id="pl.80.17"></a><var>80.17</var>Any debtor has the right to rescind any debt settlement services agreement with a <br />
         		<a id="pl.80.18"></a><var>80.18</var>debt settlement services provider that commits a material violation of this chapter. On <br />
         		<a id="pl.80.19"></a><var>80.19</var>rescission, all fees paid to the debt settlement services provider or any other person other <br />
         		<a id="pl.80.20"></a><var>80.20</var>than creditors of the debtor must be returned to the debtor entering into the debt settlement <br />
         		<a id="pl.80.21"></a><var>80.21</var>services agreement within ten days of rescission of the debt settlement services agreement.<br />
         		<br />
         		<a id="bill.8.28.0"></a><a id="pl.80.22"></a><var>80.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 28. <b>[332B.13] ENFORCEMENT; REMEDIES.</b><br />
         		<a id="pl.80.23"></a><var>80.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Violation as deceptive practice.</b> A violation of any of the provisions <br />
         		<a id="pl.80.24"></a><var>80.24</var>of this chapter is considered an unfair or deceptive trade practice under section 8.31, <br />
         		<a id="pl.80.25"></a><var>80.25</var>subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in <br />
         		<a id="pl.80.26"></a><var>80.26</var>the public interest.<br />
         		<a id="pl.80.27"></a><var>80.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Private right of action.</b> (a) A debt settlement provider who fails to comply <br />
         		<a id="pl.80.28"></a><var>80.28</var>with any of the provisions of this chapter is liable under this section in an individual <br />
         		<a id="pl.80.29"></a><var>80.29</var>action for the sum of:<br />
         		<a id="pl.80.30"></a><var>80.30</var>(1) actual, incidental, and consequential damages sustained by the debtor as a result <br />
         		<a id="pl.80.31"></a><var>80.31</var>of the failure; and<br />
         		<a id="pl.80.32"></a><var>80.32</var>(2) statutory damages of up to $5,000.<br />
         		<a id="pl.81.1"></a><var>81.1</var>(b) A debt settlement provider who fails to comply with any of the provisions of this <br />
         		<a id="pl.81.2"></a><var>81.2</var>chapter is liable to the named plaintiffs under this section in a class action for the amount <br />
         		<a id="pl.81.3"></a><var>81.3</var>that each named plaintiff could recover under paragraph (a), clause (1), and to the other <br />
         		<a id="pl.81.4"></a><var>81.4</var>class members for such amount as the court may allow.<br />
         		<a id="pl.81.5"></a><var>81.5</var>(c) In determining the amount of statutory damages, the court shall consider, among <br />
         		<a id="pl.81.6"></a><var>81.6</var>other relevant factors:<br />
         		<a id="pl.81.7"></a><var>81.7</var>(1) the frequency, nature, and persistence of noncompliance;<br />
         		<a id="pl.81.8"></a><var>81.8</var>(2) the extent to which the noncompliance was intentional; and<br />
         		<a id="pl.81.9"></a><var>81.9</var>(3) in the case of a class action, the number of debtors adversely affected.<br />
         		<a id="pl.81.10"></a><var>81.10</var>(d) A plaintiff or class successful in a legal or equitable action under this section is <br />
         		<a id="pl.81.11"></a><var>81.11</var>entitled to the costs of the action, plus reasonable attorney fees.<br />
         		<a id="pl.81.12"></a><var>81.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Injunctive relief.</b> A debtor may sue a debt settlement services provider <br />
         		<a id="pl.81.13"></a><var>81.13</var>for temporary or permanent injunctive or other appropriate equitable relief to prevent <br />
         		<a id="pl.81.14"></a><var>81.14</var>violations of any provision of this chapter. A court must grant injunctive relief on a <br />
         		<a id="pl.81.15"></a><var>81.15</var>showing that the debt settlement services provider has violated any provision of this <br />
         		<a id="pl.81.16"></a><var>81.16</var>chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to <br />
         		<a id="pl.81.17"></a><var>81.17</var>prevail on allegations that the debt settlement services provider violated any provision <br />
         		<a id="pl.81.18"></a><var>81.18</var>of this chapter.<br />
         		<a id="pl.81.19"></a><var>81.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Remedies cumulative.</b> The remedies provided in this section are <br />
         		<a id="pl.81.20"></a><var>81.20</var>cumulative and do not restrict any remedy that is otherwise available. The provisions <br />
         		<a id="pl.81.21"></a><var>81.21</var>of this chapter are not exclusive and are in addition to any other requirements, rights, <br />
         		<a id="pl.81.22"></a><var>81.22</var>remedies, and penalties provided by law.<br />
         		<a id="pl.81.23"></a><var>81.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Public enforcement.</b> The attorney general shall enforce this chapter <br />
         		<a id="pl.81.24"></a><var>81.24</var>under section 8.31.<br />
         		<br />
         		<a id="bill.8.29.0"></a><a id="pl.81.25"></a><var>81.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 29. <b>[332B.14] INVESTIGATIONS.</b><br />
         		<a id="pl.81.26"></a><var>81.26</var>At any reasonable time, the commissioner may examine the books and records of <br />
         		<a id="pl.81.27"></a><var>81.27</var>every registrant and of any person engaged in the business of providing debt settlement <br />
         		<a id="pl.81.28"></a><var>81.28</var>services. The commissioner, once during any calendar year, may require the submission <br />
         		<a id="pl.81.29"></a><var>81.29</var>of an audit prepared by a certified public accountant of the books and records of each <br />
         		<a id="pl.81.30"></a><var>81.30</var>registrant. If the registrant has, within one year previous to the commissioner's demand, <br />
         		<a id="pl.81.31"></a><var>81.31</var>had an audit prepared for some other purpose, this audit may be submitted to satisfy the <br />
         		<a id="pl.81.32"></a><var>81.32</var>requirement of this section. The commissioner may investigate any complaint concerning <br />
         		<a id="pl.81.33"></a><var>81.33</var>violations of this chapter and may require the attendance and sworn testimony of witnesses <br />
         		<a id="pl.81.34"></a><var>81.34</var>and the production of documents.<br />
         		
      </div>