HF 1392

1st Committee Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/22/2009 12:38 p.m.

1.1A bill for an act 1.2relating to energy finance; appropriating money for activities of Departments 1.3of Commerce, Natural Resources, and Health, Pollution Control Agency, and 1.4Public Utilities Commission; providing for grants and fund transfers; modifying 1.5or adding provisions relating to financial institutions, investments of health 1.6savings accounts, mortgage originators, the Vehicle Protection Product Act, 1.7long-term care insurance, automobile insurance, an electronic licensing system 1.8and technology fees, allowable forms of collateral, securities regulation, charges 1.9billed by licensed health professionals, allocation of petroleum inspection fee 1.10for low-income weatherization assistance, delivery of home heating fuel, debt 1.11management services, the state energy city, energy savings, renewable energy 1.12research, a renewable hydrogen initiative, the Legislative Electric Energy Task 1.13Force, Clean Energy Resource Teams, landfill gas recovery, on-farm biogas 1.14recovery, nuisance liability of wind energy conversion systems, rural wind 1.15energy, petroleum violation escrow funds for K-12 school energy projects, 1.16renewable energy studies and reports, standards for hydrogen and fuel cells, 1.17hydrogen refueling stations, off-site renewable distributed generation, biofuel 1.18production permits, terrestrial and geologic carbon sequestration, dry cask 1.19storage at a nuclear power plant, utility charges and residential customers, the 1.20cold weather rule, a propane prepurchase program, and intervenor compensation 1.21for participants in proceedings before the Public Utilities Commission; requiring 1.22studies and reports; providing civil penalties; making technical and clarifying 1.23changes;amending Minnesota Statutes 2006, sections 13.712, by adding 1.24a subdivision; 45.011, subdivision 1; 46.04, subdivision 1; 46.05; 46.131, 1.25subdivision 2; 47.19; 47.59, subdivision 6; 47.60, subdivision 2; 47.62, 1.26subdivision 1; 47.75, subdivision 1; 48.15, subdivision 4; 58.04, subdivisions 1.271, 2; 58.05; 58.06, subdivision 2, by adding a subdivision; 58.08, subdivision 1.283; 58.10, subdivision 1; 60K.55, subdivision 2; 65B.44, subdivisions 2, 3, 4, 1.295; 65B.47, subdivision 7; 65B.54, subdivision 1, by adding a subdivision; 1.3080A.28, subdivision 1; 80A.65, subdivision 1; 82.24, subdivisions 1, 4; 82B.09, 1.31subdivision 1; 116C.779, subdivision 2; 118A.03, subdivision 2; 148.102, by 1.32adding a subdivision; 216B.097, subdivisions 1, 3; 216B.098, subdivision 4; 1.33216B.16, subdivisions 10, 15; 216B.241, subdivision 6; 216B.812, subdivisions 1.341, 2; 216C.051, subdivisions 2, 9; 216C.41, subdivisions 1, 2, 3; 239.101, 1.35subdivision 3; 325E.311, subdivision 6; 325N.01; 332.54, subdivision 7; 1.36proposing coding for new law in Minnesota Statutes, chapters 1; 16C; 45; 58; 1.3760K; 216B; 216C; 325E; 561; proposing coding for new law as Minnesota 1.38Statutes, chapters 59C; 332A; repealing Minnesota Statutes 2006, sections 1.3946.043; 47.62, subdivision 5; 58.08, subdivision 1; 216B.095; 332.12; 332.13; 2.1332.14; 332.15; 332.16; 332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 2.2332.23; 332.24; 332.25; 332.26; 332.27; 332.28; 332.29; Minnesota Rules, 2.3parts 7831.0100; 7831.0200; 7831.0300; 7831.0400; 7831.0500; 7831.0600; 2.47831.0700; 7831.0800. 2.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.6ARTICLE 1 2.7ENERGY APPROPRIATIONS 2.8 Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end 2.9     new text begin The amounts shown in this section summarize direct appropriations, by fund, made new text end 2.10 new text begin in this article. new text end 2.11 new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end 2.12 new text begin General new text end new text begin $ new text end new text begin 51,752,000 new text end new text begin $ new text end new text begin 33,518,000 new text end new text begin $ new text end new text begin 85,270,000 new text end 2.13 new text begin Petroleum Tank Cleanup new text end new text begin 1,084,000 new text end new text begin 1,084,000 new text end new text begin 2,168,000 new text end 2.14 new text begin Workers' Compensation new text end new text begin 835,000 new text end new text begin 835,000 new text end new text begin 1,670,000 new text end 2.15 new text begin Special Revenue new text end new text begin 5,600,000 new text end new text begin 4,600,000 new text end new text begin 10,200,000 new text end 2.16 new text begin Total new text end new text begin $ new text end new text begin 59,271,000 new text end new text begin $ new text end new text begin 40,037,000 new text end new text begin $ new text end new text begin 99,308,000 new text end 2.17 Sec. 2. new text begin ENERGY FINANCE APPROPRIATIONS. new text end 2.18     new text begin The sums shown in the columns marked "Appropriations" are appropriated to the new text end 2.19 new text begin agencies and for the purposes specified in this article. The appropriations are from the new text end 2.20 new text begin general fund, or another named fund, and are available for the fiscal years indicated new text end 2.21 new text begin for each purpose. The figures "2008" and "2009" used in this article mean that the new text end 2.22 new text begin appropriations listed under them are available for the fiscal year ending June 30, 2008, or new text end 2.23 new text begin June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal new text end 2.24 new text begin year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal new text end 2.25 new text begin year ending June 30, 2007, are effective the day following final enactment. new text end 2.26 new text begin APPROPRIATIONS new text end 2.27 new text begin Available for the Year new text end 2.28 new text begin Ending June 30 new text end 2.29 new text begin 2008 new text end new text begin 2009 new text end 2.30 Sec. 3. new text begin DEPARTMENT OF COMMERCE. new text end 2.31 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 51,721,000 new text end new text begin $ new text end new text begin 33,695,000 new text end 2.32 new text begin Appropriations by Fund new text end 2.33 new text begin 2008 new text end new text begin 2009 new text end 2.34 new text begin General new text end new text begin 44,202,000 new text end new text begin 27,176,000 new text end 2.35 new text begin Petroleum Cleanup new text end new text begin 1,084,000 new text end new text begin 1,084,000 new text end 3.1 3.2 new text begin Workers' new text end new text begin Compensation new text end new text begin 835,000 new text end new text begin 835,000 new text end 3.3 new text begin Special Revenue new text end new text begin 5,600,000 new text end new text begin 4,600,000 new text end 3.4 new text begin The amounts that may be spent for each new text end 3.5 new text begin purpose are specified in the following new text end 3.6 new text begin subdivisions. new text end 3.7 new text begin Subd. 2. new text end new text begin Financial Examinations new text end new text begin 6,432,000 new text end new text begin 6,519,000 new text end 3.8 3.9 new text begin Subd. 3. new text end new text begin Petroleum Tank Release Cleanup new text end new text begin Board new text end new text begin 1,084,000 new text end new text begin 1,084,000 new text end 3.10 new text begin This appropriation is from the petroleum new text end 3.11 new text begin tank release cleanup fund. new text end 3.12 new text begin Subd. 4. new text end new text begin Administrative Services new text end new text begin 4,477,000 new text end new text begin 4,540,000 new text end 3.13 new text begin Subd. 5. new text end new text begin Market Assurance new text end new text begin 6,902,000 new text end new text begin 6,999,000 new text end 3.14 new text begin Appropriations by Fund new text end 3.15 new text begin General new text end new text begin 6,067,000 new text end new text begin 6,164,000 new text end 3.16 3.17 new text begin Workers' new text end new text begin Compensation new text end new text begin 835,000 new text end new text begin 835,000 new text end 3.18 new text begin Subd. 6. new text end new text begin Energy and Telecommunications new text end new text begin 32,726,000 new text end new text begin 14,453,000 new text end 3.19 new text begin Appropriations by Fund new text end 3.20 new text begin General new text end new text begin 27,226,000 new text end new text begin 9,953,000 new text end 3.21 new text begin Special Revenue new text end new text begin 5,500,000 new text end new text begin 4,500,000 new text end 3.22 new text begin $2,000,000 the first year and $2,000,000 the new text end 3.23 new text begin second year are for E85 cost-share grants. new text end 3.24 new text begin Notwithstanding Minnesota Statutes, section new text end 3.25 new text begin 16A.28, this appropriation is available new text end 3.26 new text begin until expended. The base appropriation for new text end 3.27 new text begin these grants is $2,000,000 each year in the new text end 3.28 new text begin 2010-2011 biennium. Funding for these new text end 3.29 new text begin grants ends June 30, 2011. Up to ten percent new text end 3.30 new text begin of the funds may be used for cost-share grants new text end 3.31 new text begin for pumps dispensing fuel that contains at new text end 3.32 new text begin least ten percent biodiesel fuel by volume. new text end 3.33 new text begin The utility subject to Minnesota Statutes, new text end 3.34 new text begin section 116C.779, shall transfer $2,500,000 new text end 3.35 new text begin in fiscal year 2008 and $2,500,000 in fiscal new text end 4.1 new text begin year 2009 to the Department of Commerce new text end 4.2 new text begin on a schedule to be determined by the new text end 4.3 new text begin commissioner of commerce. The funds must new text end 4.4 new text begin be deposited in the special revenue fund new text end 4.5 new text begin and are appropriated to the commissioner new text end 4.6 new text begin for grants to promote renewable energy new text end 4.7 new text begin projects and community energy outreach and new text end 4.8 new text begin assistance. Of the amounts identified: new text end 4.9 new text begin (1) $500,000 each year for capital grants for new text end 4.10 new text begin on-farm biogas recovery facilities; eligible new text end 4.11 new text begin projects will be selected in coordination new text end 4.12 new text begin with the Department of Agriculture and the new text end 4.13 new text begin Pollution Control Agency; new text end 4.14 new text begin (2) $500,000 each year to provide financial new text end 4.15 new text begin rebates to new solar electricity projects; new text end 4.16 new text begin (3) $500,000 each year for continued funding new text end 4.17 new text begin of community energy technical assistance new text end 4.18 new text begin and outreach on renewable energy and new text end 4.19 new text begin energy efficiency; and new text end 4.20 new text begin (4) $1,000,000 each year for technical new text end 4.21 new text begin analysis and demonstration funding for new text end 4.22 new text begin automotive technology projects, with a new text end 4.23 new text begin special focus on plug-in hybrid electric new text end 4.24 new text begin vehicles. new text end 4.25 new text begin The utility subject to Minnesota Statutes, new text end 4.26 new text begin section 116C.779, shall transfer $3,000,000 new text end 4.27 new text begin in fiscal year 2008 and $2,000,000 in fiscal new text end 4.28 new text begin year 2009 to the Department of Commerce new text end 4.29 new text begin on a schedule to be determined by the new text end 4.30 new text begin commissioner of commerce. The funds must new text end 4.31 new text begin be deposited in the special revenue fund and new text end 4.32 new text begin are appropriated to the commissioner for new text end 4.33 new text begin grants to provide competitive, cost-share new text end 4.34 new text begin grants to fund renewable energy research in new text end 4.35 new text begin Minnesota. These grants must be awarded new text end 5.1 new text begin by a three-member panel made up of the new text end 5.2 new text begin commissioners of commerce, pollution new text end 5.3 new text begin control, and agriculture, or their designees. new text end 5.4 new text begin Grant applications must be ranked and grants new text end 5.5 new text begin issued according to how well the applications new text end 5.6 new text begin meet state energy policy research goals new text end 5.7 new text begin established by the commissioners, the quality new text end 5.8 new text begin and experience of the research teams, the new text end 5.9 new text begin cross-interdisciplinary and cross-institutional new text end 5.10 new text begin nature of the research teams, and the ability new text end 5.11 new text begin of the research team to leverage nonstate new text end 5.12 new text begin funds. new text end 5.13 new text begin $3,000,000 the second year is for a grant to new text end 5.14 new text begin the Board of Regents of the University of new text end 5.15 new text begin Minnesota for the Initiative for Renewable new text end 5.16 new text begin Energy and the Environment. The grant new text end 5.17 new text begin is for the purposes set forth in Minnesota new text end 5.18 new text begin Statutes, section 216B.241, subdivision 6. new text end 5.19 new text begin The appropriation is available until spent. new text end 5.20 new text begin The base budget for this grant to the Board new text end 5.21 new text begin of Regents of the University of Minnesota new text end 5.22 new text begin for the Initiative for Renewable Energy and new text end 5.23 new text begin the Environment is $5,000,000 each year in new text end 5.24 new text begin the 2010-2011 fiscal biennium. new text end 5.25 new text begin As a condition of this grant, beginning in new text end 5.26 new text begin the 2010-2011 biennium, the Initiative for new text end 5.27 new text begin Renewable Energy and the Environment new text end 5.28 new text begin must set aside at least 15 percent of the new text end 5.29 new text begin funds received annually under the grant for new text end 5.30 new text begin qualified projects conducted at a rural campus new text end 5.31 new text begin or experiment station. Any amount of the new text end 5.32 new text begin set aside funds that has not been awarded to new text end 5.33 new text begin a rural campus or experiment station at the new text end 5.34 new text begin end of the fiscal year must revert back to the new text end 5.35 new text begin initiative for its exclusive use. new text end 6.1 new text begin $10,000,000 the first year is for the renewable new text end 6.2 new text begin hydrogen initiative in Minnesota Statutes, new text end 6.3 new text begin section 216B.813, to fund the competitive new text end 6.4 new text begin grant program included in that section. The new text end 6.5 new text begin commissioner may use up to two percent of new text end 6.6 new text begin the competitive grant program appropriation new text end 6.7 new text begin for grant administration and to develop and new text end 6.8 new text begin implement the renewable hydrogen road new text end 6.9 new text begin map. This is a onetime appropriation and is new text end 6.10 new text begin available until expended. new text end 6.11 new text begin $3,100,000 the first year is for deposit in the new text end 6.12 new text begin rural wind energy development revolving new text end 6.13 new text begin loan fund under Minnesota Statutes, section new text end 6.14 new text begin 216C.39. This appropriation does not cancel. new text end 6.15 new text begin This is a onetime appropriation. new text end 6.16 new text begin $1,000,000 the first year and $1,000,000 the new text end 6.17 new text begin second year are for a grant to the Center for new text end 6.18 new text begin Rural Policy and Development for the rural new text end 6.19 new text begin wind energy development program in article new text end 6.20 new text begin 3. This is a onetime appropriation and is new text end 6.21 new text begin available until expended. new text end 6.22 new text begin $50,000 the first year is a onetime new text end 6.23 new text begin appropriation for a comprehensive technical, new text end 6.24 new text begin economic, and environmental analysis of the new text end 6.25 new text begin benefits to be derived from greater use in this new text end 6.26 new text begin state of geothermal heat pump systems for new text end 6.27 new text begin heating and cooling air and heating water. new text end 6.28 new text begin The analysis must: new text end 6.29 new text begin (1) estimate the extent of geothermal heat new text end 6.30 new text begin pump systems currently installed in this state new text end 6.31 new text begin in residential, commercial, and institutional new text end 6.32 new text begin buildings; new text end 6.33 new text begin (2) estimate energy and economic savings of new text end 6.34 new text begin geothermal heat pump systems in comparison new text end 6.35 new text begin with fossil fuel-based heating and cooling new text end 7.1 new text begin systems, including electricity use, on a new text end 7.2 new text begin capital cost and life-cycle cost basis, for both new text end 7.3 new text begin newly constructed and retrofitted residential, new text end 7.4 new text begin commercial, and institutional buildings; new text end 7.5 new text begin (3) compare the emission of pollutants and new text end 7.6 new text begin greenhouse gases from geothermal heat new text end 7.7 new text begin pump systems and fossil fuel-based heating new text end 7.8 new text begin and cooling systems; new text end 7.9 new text begin (4) identify financial assistance available new text end 7.10 new text begin from state and federal sources and Minnesota new text end 7.11 new text begin utilities to defray the costs of installing new text end 7.12 new text begin geothermal heat pump systems; new text end 7.13 new text begin (5) identify Minnesota firms currently new text end 7.14 new text begin manufacturing or installing the physical new text end 7.15 new text begin components of geothermal heat pump new text end 7.16 new text begin systems and estimate the economic new text end 7.17 new text begin development potential in this state if demand new text end 7.18 new text begin for such systems increases significantly; new text end 7.19 new text begin (6) identify the barriers to more widespread new text end 7.20 new text begin adoption of geothermal heat pump systems in new text end 7.21 new text begin this state and suggest strategies to overcome new text end 7.22 new text begin those barriers; and new text end 7.23 new text begin (7) make recommendations for legislative new text end 7.24 new text begin action. new text end 7.25 new text begin Not later than March 15, 2008, the new text end 7.26 new text begin commissioner shall submit the results of the new text end 7.27 new text begin analysis in a report to the chairs of the senate new text end 7.28 new text begin and house of representatives committees new text end 7.29 new text begin with primary jurisdiction over energy policy. new text end 7.30 new text begin $45,000 the first year is a onetime new text end 7.31 new text begin appropriation for a grant to Linden Hills new text end 7.32 new text begin Power and Light for preliminary engineering new text end 7.33 new text begin design work and other technical and legal new text end 7.34 new text begin services required for a community digester new text end 8.1 new text begin and neighborhood district heating and new text end 8.2 new text begin cooling system demonstration project in the new text end 8.3 new text begin Linden Hills neighborhood of Minneapolis. new text end 8.4 new text begin Funds may be expended upon a determination new text end 8.5 new text begin by the commissioner of commerce that the new text end 8.6 new text begin project is technically and economically new text end 8.7 new text begin feasible. A portion of the appropriation new text end 8.8 new text begin may be used to expand the scope of the new text end 8.9 new text begin project feasibility study to include portions new text end 8.10 new text begin of adjacent communities including St. Louis new text end 8.11 new text begin Park and Edina. new text end 8.12 new text begin $3,000,000 the first year is for the purpose new text end 8.13 new text begin of the propane prepurchase program under new text end 8.14 new text begin Minnesota Statutes, section 216B.0951. This new text end 8.15 new text begin is a onetime appropriation and is available new text end 8.16 new text begin for the biennium. new text end 8.17 new text begin $4,000,000 the first year is for a onetime new text end 8.18 new text begin grant to the St. Paul Port Authority for new text end 8.19 new text begin environmental review and permitting, new text end 8.20 new text begin preliminary engineering, and development of new text end 8.21 new text begin a steam-producing facility to be located in new text end 8.22 new text begin St. Paul using fuels consistent with eligible new text end 8.23 new text begin energy technologies as defined in Minnesota new text end 8.24 new text begin Statutes, section 216B.1691. new text end 8.25 new text begin Grant funds for the project may only new text end 8.26 new text begin be expended when the commissioner of new text end 8.27 new text begin commerce has reviewed and approved a new text end 8.28 new text begin project plan that includes the following new text end 8.29 new text begin elements: new text end 8.30 new text begin (i) total project cost estimates; new text end 8.31 new text begin (ii) cost estimates for project design and new text end 8.32 new text begin engineering tasks; new text end 8.33 new text begin (iii) a preliminary plan for fuel source new text end 8.34 new text begin procurement from a renewable energy source new text end 9.1 new text begin as defined in Minnesota Statutes, section new text end 9.2 new text begin 216B.243, subdivision 3a; and new text end 9.3 new text begin (iv) a preliminary financing plan for the new text end 9.4 new text begin entire project. new text end 9.5 new text begin $150,000 the first year is appropriated to the new text end 9.6 new text begin commissioner of commerce for grants for new text end 9.7 new text begin demonstration projects of electric vehicles new text end 9.8 new text begin with advanced transmission technologies new text end 9.9 new text begin incorporating, if feasible, batteries, new text end 9.10 new text begin converters, and other components developed new text end 9.11 new text begin in Minnesota. Funds may be expended new text end 9.12 new text begin under the grants only if grantees enter into new text end 9.13 new text begin agreements specifying that commercial new text end 9.14 new text begin production of these vehicles and components new text end 9.15 new text begin will, to the extent possible, take place in new text end 9.16 new text begin Minnesota. new text end 9.17 9.18 new text begin Subd. 7. new text end new text begin Telecommunications Access new text end new text begin Minnesota new text end new text begin 100,000 new text end new text begin 100,000 new text end 9.19 new text begin $100,000 the first year and $100,000 new text end 9.20 new text begin the second year are appropriated to the new text end 9.21 new text begin commissioner of commerce for transfer new text end 9.22 new text begin to the commissioner of human services to new text end 9.23 new text begin supplement the ongoing operational expenses new text end 9.24 new text begin of the Minnesota Commission Serving new text end 9.25 new text begin Deaf and Hard-of-Hearing People. This new text end 9.26 new text begin appropriation is from the telecommunication new text end 9.27 new text begin access Minnesota fund, and is added to the new text end 9.28 new text begin commission's base. new text end 9.29 Sec. 4. new text begin PUBLIC UTILITIES COMMISSION new text end new text begin $ new text end new text begin 5,315,000 new text end new text begin $ new text end new text begin 5,342,000 new text end 9.30 9.31 Sec. 5. new text begin DEPARTMENT OF NATURAL new text end new text begin RESOURCES new text end new text begin $ new text end new text begin 535,000 new text end new text begin $ new text end new text begin 0 new text end 9.32 new text begin $475,000 the first year is a onetime new text end 9.33 new text begin appropriation for terrestrial and geologic new text end 9.34 new text begin carbon sequestration reports and studies in new text end 10.1 new text begin article 4. Of this amount, the commissioner new text end 10.2 new text begin shall make payments of $385,000 to the new text end 10.3 new text begin Board of Regents of the University of new text end 10.4 new text begin Minnesota for the purposes of terrestrial new text end 10.5 new text begin carbon sequestration activities, and $90,000 new text end 10.6 new text begin to the Minnesota Geological Survey for the new text end 10.7 new text begin purposes of geologic carbon sequestration new text end 10.8 new text begin assessment. new text end 10.9 new text begin $60,000 the first year is a onetime new text end 10.10 new text begin appropriation to the commissioner of natural new text end 10.11 new text begin resources to conduct a feasibility study new text end 10.12 new text begin in conjunction with U.S. Army Corps of new text end 10.13 new text begin Engineers on the foundation and hydraulics new text end 10.14 new text begin of the Rapidan Dam in Blue Earth County. new text end 10.15 new text begin This appropriation must be equally matched new text end 10.16 new text begin by Blue Earth County, and is available until new text end 10.17 new text begin expended. new text end 10.18 Sec. 6. new text begin POLLUTION CONTROL AGENCY new text end new text begin $ new text end new text begin 700,000 new text end new text begin $ new text end new text begin 0 new text end 10.19 new text begin $400,000 the first year is a onetime new text end 10.20 new text begin appropriation for a grant to the Koochiching new text end 10.21 new text begin Economic Development Authority for new text end 10.22 new text begin a feasibility study for a plasma torch new text end 10.23 new text begin gasification facility that converts municipal new text end 10.24 new text begin solid waste into energy and slag. new text end 10.25 new text begin $300,000 the first year is for the biomass new text end 10.26 new text begin gasification facilities air emissions study for new text end 10.27 new text begin the purpose of fully characterizing the air new text end 10.28 new text begin emissions exerted from biomass gasification new text end 10.29 new text begin facilities across a range of feedstocks. This new text end 10.30 new text begin is a onetime appropriation. new text end 10.31 Sec. 7. new text begin DEPARTMENT OF HEALTH new text end new text begin $ new text end new text begin 1,000,000 new text end new text begin $ new text end new text begin 1,000,000 new text end 10.32 new text begin $1,000,000 the first year and $1,000,000 new text end 10.33 new text begin the second year are appropriated to the new text end 10.34 new text begin commissioner of health for grants for lead new text end 11.1 new text begin environmental risk assessment conducted new text end 11.2 new text begin by local units of government, as required new text end 11.3 new text begin under Minnesota Statutes, section 144.9504, new text end 11.4 new text begin subdivision 2, and lead cleanup. Of new text end 11.5 new text begin these amounts, $500,000 the first year new text end 11.6 new text begin and $500,000 the second year must be new text end 11.7 new text begin awarded to the federally designated nonprofit new text end 11.8 new text begin organization operating the Clear Corps new text end 11.9 new text begin program. This is a onetime appropriation. new text end 11.10ARTICLE 2 11.11COMMERCE 11.12    Section 1. Minnesota Statutes 2006, section 13.712, is amended by adding a 11.13subdivision to read: 11.14     new text begin Subd. 3. new text end new text begin Vehicle protection product warrantors. new text end new text begin Financial information provided new text end 11.15 new text begin to the commissioner of commerce by vehicle protection product warrantors is classified new text end 11.16 new text begin under section 59C.05, subdivision 3. new text end 11.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 11.18    Sec. 2. Minnesota Statutes 2006, section 45.011, subdivision 1, is amended to read: 11.19    Subdivision 1. Scope. As used in chapters 45 to 83, 155A, 332, new text begin 332A, new text end 345, and 11.20359, and sections 325D.30 to 325D.42, 326.83 to 326.991, and 386.61 to 386.78, unless 11.21the context indicates otherwise, the terms defined in this section have the meanings given 11.22them. 11.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 11.24    Sec. 3. new text begin [45.24] LICENSE TECHNOLOGY FEES. new text end 11.25     new text begin (a) The commissioner may establish and maintain an electronic licensing database new text end 11.26 new text begin system for license origination, renewal, and tracking the completion of continuing new text end 11.27 new text begin education requirements by individual licensees who have continuing education new text end 11.28 new text begin requirements, and other related purposes. new text end 11.29     new text begin (b) The commissioner shall pay for the cost of operating and maintaining the new text end 11.30 new text begin electronic database system described in paragraph (a) through a technology surcharge new text end 11.31 new text begin imposed upon the fee for license origination and renewal, for individual licenses that new text end 11.32 new text begin require continuing education. new text end 12.1     new text begin (c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year new text end 12.2 new text begin licensing period, except as otherwise provided in paragraph (f), and shall be payable at the new text end 12.3 new text begin time of license origination and renewal. new text end 12.4     new text begin (d) The Commerce Department technology account is hereby created as an account new text end 12.5 new text begin in the special revenue fund. new text end 12.6     new text begin (e) The commissioner shall deposit the surcharge permitted under this section in new text end 12.7 new text begin the account created in paragraph (d), and funds in the account are appropriated to the new text end 12.8 new text begin commissioner in the amounts needed for purposes of this section. new text end 12.9     new text begin (f) The commissioner shall temporarily reduce or suspend the surcharge as necessary new text end 12.10 new text begin if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of new text end 12.11 new text begin any calendar year and shall increase or decrease the surcharge as necessary to keep the new text end 12.12 new text begin fund balance at an adequate level but not in excess of $2,000,000. new text end 12.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 12.14    Sec. 4. Minnesota Statutes 2006, section 46.04, subdivision 1, is amended to read: 12.15    Subdivision 1. General. The commissioner of commerce, referred to in chapters 12.1646 to 59A, and sections to new text begin chapter 332A new text end , as the commissioner, is vested 12.17with all the powers, authority, and privileges which, prior to the enactment of Laws 1909, 12.18chapter 201, were conferred by law upon the public examiner, and shall take over all 12.19duties in relation to state banks, savings banks, trust companies, savings associations, and 12.20other financial institutions within the state which, prior to the enactment of chapter 201, 12.21were imposed upon the public examiner. The commissioner of commerce shall exercise 12.22a constant supervision, either personally or through the examiners herein provided for, 12.23over the books and affairs of all state banks, savings banks, trust companies, savings 12.24associations, credit unions, industrial loan and thrift companies, and other financial 12.25institutions doing business within this state; and shall, through examiners, examine each 12.26financial institution at least once every 24 calendar months. In satisfying this examination 12.27requirement, the commissioner may accept reports of examination prepared by a federal 12.28agency having comparable supervisory powers and examination procedures. With the 12.29exception of industrial loan and thrift companies which do not have deposit liabilities 12.30and licensed regulated lenders, it shall be the principal purpose of these examinations to 12.31inspect and verify the assets and liabilities of each and so far investigate the character 12.32and value of the assets of each institution as to determine with reasonable certainty that 12.33the values are correctly carried on its books. Assets and liabilities shall be verified in 12.34accordance with methods of procedure which the commissioner may determine to be 12.35adequate to carry out the intentions of this section. It shall be the further purpose of 13.1these examinations to assess the adequacy of capital protection and the capacity of the 13.2institution to meet usual and reasonably anticipated deposit withdrawals and other cash 13.3commitments without resorting to excessive borrowing or sale of assets at a significant 13.4loss, and to investigate each institution's compliance with applicable laws and rules. Based 13.5on the examination findings, the commissioner shall make a determination as to whether 13.6the institution is being operated in a safe and sound manner. None of the above provisions 13.7limits the commissioner in making additional examinations as deemed necessary or 13.8advisable. The commissioner shall investigate the methods of operation and conduct of 13.9these institutions and their systems of accounting, to ascertain whether these methods and 13.10systems are in accordance with law and sound banking principles. The commissioner may 13.11make requirements as to records as deemed necessary to facilitate the carrying out of the 13.12commissioner's duties and to properly protect the public interest. The commissioner may 13.13examine, or cause to be examined by these examiners, on oath, any officer, director, 13.14trustee, owner, agent, clerk, customer, or depositor of any financial institution touching 13.15the affairs and business thereof, and may issue, or cause to be issued by the examiners, 13.16subpoenas, and administer, or cause to be administered by the examiners, oaths. In 13.17case of any refusal to obey any subpoena issued under the commissioner's direction, 13.18the refusal may at once be reported to the district court of the district in which the bank 13.19or other financial institution is located, and this court shall enforce obedience to these 13.20subpoenas in the manner provided by law for enforcing obedience to subpoenas of the 13.21court. In all matters relating to official duties, the commissioner of commerce has the 13.22power possessed by courts of law to issue subpoenas and cause them to be served and 13.23enforced, and all officers, directors, trustees, and employees of state banks, savings banks, 13.24trust companies, savings associations, and other financial institutions within the state, 13.25and all persons having dealings with or knowledge of the affairs or methods of these 13.26institutions, shall afford reasonable facilities for these examinations, make returns and 13.27reports to the commissioner of commerce as the commissioner may require; attend and 13.28answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books, 13.29accounts, documents, and property as the commissioner may desire to inspect, and in all 13.30things aid the commissioner in the performance of duties. 13.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 13.32    Sec. 5. Minnesota Statutes 2006, section 46.05, is amended to read: 13.3346.05 SUPERVISION OVER FINANCIAL INSTITUTIONS. 14.1    Every state bank, savings bank, trust company, savings association, new text begin debt new text end 14.2 new text begin management services provider, new text end and other financial institutions shall be at all times under 14.3the supervision and subject to the control of the commissioner of commerce. If, and 14.4whenever in the performance of duties, the commissioner finds it necessary to make a 14.5special investigation of any financial institution under the commissioner's supervision, 14.6and other than a complete examination, the commissioner shall make a charge therefor to 14.7include only the necessary costs thereof. Such a fee shall be payable to the commissioner 14.8on the commissioner's making a request for payment. 14.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 14.10    Sec. 6. Minnesota Statutes 2006, section 46.131, subdivision 2, is amended to read: 14.11    Subd. 2. Assessment authority. Each bank, trust company, savings bank, savings 14.12association, regulated lender, industrial loan and thrift company, credit union, motor 14.13vehicle sales finance company, debt prorating agency new text begin management services provider new text end and 14.14insurance premium finance company organized under the laws of this state or required 14.15to be administered by the commissioner of commerce shall pay into the state treasury its 14.16proportionate share of the cost of maintaining the Department of Commerce. 14.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 14.18    Sec. 7. Minnesota Statutes 2006, section 47.19, is amended to read: 14.1947.19 CORPORATION MAY BE MEMBER OR STOCKHOLDER OF 14.20FEDERAL AGENCY. 14.21    Any corporation is hereby empowered and authorized to become a member of, 14.22or stockholder in, any such agency, and to that end to purchase stock in, or securities 14.23of, or deposit money with, such agency and/or to comply with any other conditions of 14.24membership or credit; to borrow money from such agency upon such rates of interest, not 14.25exceeding the contract rate of interest in this state, and upon such terms and conditions 14.26as may be agreed upon by such corporation and such agency, for the purpose of making 14.27loans, paying withdrawals, paying maturities, paying debts, and for any other purpose not 14.28inconsistent with the objects of the corporation; provided, that the aggregate amount of the 14.29indebtedness, so incurred by such corporation, which shall be outstanding at any time shall 14.30not exceed 25 new text begin 35 new text end percent of the then total assets of the corporation; to assign, pledge and 14.31hypothecate its bonds, mortgages or other assets; and, in case of savings associations, to 14.32repledge with such agency the shares of stock in such association which any owner thereof 14.33may have pledged as collateral security, without obtaining the consent thereunto of such 15.1owner, as security for the repayment of the indebtedness so created by such corporation 15.2and as evidenced by its note or other evidence of indebtedness given for such borrowed 15.3money; and to do any and all things which shall or may be necessary or convenient in 15.4order to comply with and to obtain the benefits of the provisions of any act of Congress 15.5creating such agency, or any amendments thereto. 15.6    Sec. 8. Minnesota Statutes 2006, section 47.59, subdivision 6, is amended to read: 15.7    Subd. 6. Additional charges. (a) For purposes of this subdivision, "financial 15.8institution" includes a person described in subdivision 4, paragraph (a). In addition to the 15.9finance charges permitted by this section, a financial institution may contract for and 15.10receive the following additional charges that may be included in the principal amount 15.11of the loan or credit sale unpaid balances: 15.12    (1) official fees and taxes; 15.13    (2) charges for insurance as described in paragraph (b); 15.14    (3) with respect to a loan or credit sale contract secured by real estate, the following 15.15"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of 15.16circumvention or evasion of this section: 15.17    (i) fees or premiums for title examination, abstract of title, title insurance, surveys, 15.18or similar purposes; 15.19    (ii) fees for preparation of a deed, mortgage, settlement statement, or other 15.20documents, if not paid to the financial institution; 15.21    (iii) escrows for future payments of taxes, including assessments for improvements, 15.22insurance, and water, sewer, and land rents; 15.23    (iv) fees for notarizing deeds and other documents; 15.24    (v) appraisal and credit report fees; and 15.25    (vi) fees for determining whether any portion of the property is located in a flood 15.26zone and fees for ongoing monitoring of the property to determine changes, if any, 15.27in flood zone status; 15.28    (4) a delinquency charge on a payment, including the minimum payment due in 15.29connection with open-end credit, not paid in full on or before the tenth day after its due 15.30date in an amount not to exceed five percent of the amount of the payment or $5.20, 15.31whichever is greater; 15.32    (5) for a returned check or returned automatic payment withdrawal request, an 15.33amount not in excess of the service charge limitation in section 604.113 new text begin , except that, on new text end 15.34 new text begin a loan transaction that is a consumer small loan as defined in section 47.60, subdivision new text end 15.35 new text begin 1, paragraph (a), in which cash is advanced in exchange for a personal check, the civil new text end 16.1 new text begin penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded new text end 16.2 new text begin or assessed against the borrower new text end ; and 16.3    (6) charges for other benefits, including insurance, conferred on the borrower that 16.4are of a type that is not for credit. 16.5    (b) An additional charge may be made for insurance written in connection with the 16.6loan or credit sale contract, which may be included in the principal amount of the loan or 16.7credit sale unpaid balances: 16.8    (1) with respect to insurance against loss of or damage to property, or against 16.9liability arising out of the ownership or use of property, if the financial institution furnishes 16.10a clear, conspicuous, and specific statement in writing to the borrower setting forth the 16.11cost of the insurance if obtained from or through the financial institution and stating that 16.12the borrower may choose the person through whom the insurance is to be obtained; 16.13    (2) with respect to credit insurance or mortgage insurance providing life, accident, 16.14health, or unemployment coverage, if the insurance coverage is not required by the 16.15financial institution, and this fact is clearly and conspicuously disclosed in writing to 16.16the borrower, and the borrower gives specific, dated, and separately signed affirmative 16.17written indication of the borrower's desire to do so after written disclosure to the borrower 16.18of the cost of the insurance; and 16.19    (3) with respect to the vendor's single interest insurance, but only (i) to the extent 16.20that the insurer has no right of subrogation against the borrower; and (ii) to the extent that 16.21the insurance does not duplicate the coverage of other insurance under which loss is 16.22payable to the financial institution as its interest may appear, against loss of or damage 16.23to property for which a separate charge is made to the borrower according to clause (1); 16.24and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the 16.25financial institution to the borrower setting forth the cost of the insurance if obtained from 16.26or through the financial institution and stating that the borrower may choose the person 16.27through whom the insurance is to be obtained. 16.28    (c) In addition to the finance charges and other additional charges permitted by 16.29this section, a financial institution may contract for and receive the following additional 16.30charges in connection with open-end credit, which may be included in the principal 16.31amount of the loan or balance upon which the finance charge is computed: 16.32    (1) annual charges, not to exceed $50 per annum, payable in advance, for the 16.33privilege of opening and maintaining open-end credit; 16.34    (2) charges for the use of an automated teller machine; 16.35    (3) charges for any monthly or other periodic payment period in which the borrower 16.36has exceeded or, except for the financial institution's dishonor would have exceeded, 17.1the maximum approved credit limit, in an amount not in excess of the service charge 17.2permitted in section 604.113; 17.3    (4) charges for obtaining a cash advance in an amount not to exceed the service 17.4charge permitted in section 604.113; and 17.5    (5) charges for check and draft copies and for the replacement of lost or stolen 17.6credit cards. 17.7    (d) In addition to the finance charges and other additional charges permitted by this 17.8section, a financial institution may contract for and receive a onetime loan administrative 17.9fee not exceeding $25 in connection with closed-end credit, which may be included in the 17.10principal balance upon which the finance charge is computed. This paragraph applies only 17.11to closed-end credit in an original principal amount of $4,320 or less. The determination 17.12of an original principal amount must exclude the administrative fee contracted for and 17.13received according to this paragraph. 17.14    Sec. 9. Minnesota Statutes 2006, section 47.60, subdivision 2, is amended to read: 17.15    Subd. 2. Authorization, terms, conditions, and prohibitions. (a) In lieu of the 17.16interest, finance charges, or fees in any other law, a consumer small loan lender may 17.17charge the following: 17.18    (1) on any amount up to and including $50, a charge of $5.50 may be added; 17.19    (2) on amounts in excess of $50, but not more than $100, a charge may be added 17.20equal to ten percent of the loan proceeds plus a $5 administrative fee; 17.21    (3) on amounts in excess of $100, but not more than $250, a charge may be 17.22added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5 17.23administrative fee; 17.24    (4) for amounts in excess of $250 and not greater than the maximum in subdivision 17.251, paragraph (a), a charge may be added equal to six percent of the loan proceeds with a 17.26minimum of $17.50 plus a $5 administrative fee. 17.27    (b) The term of a loan made under this section shall be for no more than 30 calendar 17.28days. 17.29    (c) After maturity, the contract rate must not exceed 2.75 percent per month of the 17.30remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly 17.31rate in the contract for each calendar day the balance is outstanding. 17.32    (d) No insurance charges or other charges must be permitted to be charged, collected, 17.33or imposed on a consumer small loan except as authorized in this section. 17.34    (e) On a loan transaction in which cash is advanced in exchange for a personal 17.35check, a return check charge may be charged as authorized by section 604.113, subdivision 18.12 , paragraph (a). new text begin The civil penalty provisions of section 604.113, subdivision 2, paragraph new text end 18.2 new text begin (b), may not be demanded or assessed against the borrower. new text end 18.3    (f) A loan made under this section must not be repaid by the proceeds of another 18.4loan made under this section by the same lender or related interest. The proceeds from a 18.5loan made under this section must not be applied to another loan from the same lender or 18.6related interest. No loan to a single borrower made pursuant to this section shall be split or 18.7divided and no single borrower shall have outstanding more than one loan with the result 18.8of collecting a higher charge than permitted by this section or in an aggregate amount of 18.9principal exceed at any one time the maximum of $350. 18.10    Sec. 10. Minnesota Statutes 2006, section 47.62, subdivision 1, is amended to read: 18.11    Subdivision 1. General authority. Any person may establish and maintain one 18.12or more electronic financial terminals. Any financial institution may provide for its 18.13customers the use of an electronic financial terminal by entering into an agreement with 18.14any person who has established and maintains one or more electronic financial terminals if 18.15that person authorizes use of the electronic financial terminal to all financial institutions 18.16on a nondiscriminatory basis pursuant to section 47.64. Electronic financial terminals to 18.17be established and maintained in this state by financial institutions located in states other 18.18than Minnesota must file a notification to the commissioner as required in this section. 18.19The notification may be in the form lawfully required by the state regulator responsible 18.20for the examination and supervision of that financial institution. If there is no such 18.21requirement, then notification must be in the form required by this section for Minnesota 18.22financial institutions. 18.23    Sec. 11. Minnesota Statutes 2006, section 47.75, subdivision 1, is amended to read: 18.24    Subdivision 1. Retirement, health savings, and medical savings accounts. (a) A 18.25commercial bank, savings bank, savings association, credit union, or industrial loan and 18.26thrift company may act as trustee or custodian: 18.27    (1) under the Federal Self-Employed Individual Tax Retirement Act of 1962, as 18.28amended; 18.29    (2) of a medical savings account under the Federal Health Insurance Portability and 18.30Accountability Act of 1996, as amended; 18.31    (3) of a health savings account under the Medicare Prescription Drug, Improvement, 18.32and Modernization Act of 2003, as amended; and 18.33    (4) under the Federal Employee Retirement Income Security Act of 1974, as 18.34amended. 19.1    (b) The trustee or custodian may accept the trust funds if the funds are invested 19.2only in savings accounts or time deposits in the commercial bank, savings bank, savings 19.3association, credit union, or industrial loan and thrift company new text begin , except that health savings new text end 19.4 new text begin accounts may also be invested in transaction accounts. Health savings accounts invested in new text end 19.5 new text begin transaction accounts shall not be subject to the restrictions in section 48.512, subdivision new text end 19.6 new text begin 3 new text end . All funds held in the fiduciary capacity may be commingled by the financial institution 19.7in the conduct of its business, but individual records shall be maintained by the fiduciary 19.8for each participant and shall show in detail all transactions engaged under authority 19.9of this subdivision. 19.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 19.11    Sec. 12. Minnesota Statutes 2006, section 48.15, subdivision 4, is amended to read: 19.12    Subd. 4. Retirement, health savings, and medical savings accounts. (a) A state 19.13bank may act as trustee or custodian: 19.14    (1) of a self-employed retirement plan under the Federal Self-Employed Individual 19.15Tax Retirement Act of 1962, as amended; 19.16    (2) of a medical savings account under the Federal Health Insurance Portability and 19.17Accountability Act of 1996, as amended; 19.18    (3) of a health savings account under the Medicare Prescription Drug, Improvement, 19.19and Modernization Act of 2003, as amended; and 19.20    (4) of an individual retirement account under the Federal Employee Retirement 19.21Income Security Act of 1974, as amended, if the bank's duties as trustee or custodian are 19.22essentially ministerial or custodial in nature and the funds are invested only (i) in the 19.23bank's own savings or time deposits new text begin , except that health savings accounts may also be new text end 19.24 new text begin invested in transaction accounts. Health savings accounts invested in transaction accounts new text end 19.25 new text begin shall not be subject to the restrictions in section 48.512, subdivision 3 new text end ; or (ii) in any 19.26other assets at the direction of the customer if the bank does not exercise any investment 19.27discretion, invest the funds in collective investment funds administered by it, or provide 19.28any investment advice with respect to those account assets. 19.29    (b) Affiliated discount brokers may be utilized by the bank acting as trustee or 19.30custodian for self-directed IRAs, if specifically authorized and directed in appropriate 19.31documents. The relationship between the affiliated broker and the bank must be fully 19.32disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should 19.33be accurately disclosed. Provisions should be made for disclosure of any changes in 19.34commission rates prior to their becoming effective. The affiliated broker may not provide 19.35investment advice to the customer. 20.1    (c) All funds held in the fiduciary capacity may be commingled by the financial 20.2institution in the conduct of its business, but individual records shall be maintained by 20.3the fiduciary for each participant and shall show in detail all transactions engaged under 20.4authority of this subdivision. 20.5    (d) The authority granted by this section is in addition to, and not limited by, section 20.647.75 . 20.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 20.8    Sec. 13. Minnesota Statutes 2006, section 58.04, subdivision 1, is amended to read: 20.9    Subdivision 1. Residential mortgage originator licensing requirements. (a) 20.10Beginning August 1, 1999, No person shall act as a residential mortgage originator, or 20.11make residential mortgage loans without first obtaining a license from the commissioner 20.12according to the licensing procedures provided in this chapter. 20.13    (b) new text begin A licensee must be either a partnership, limited liability partnership, association, new text end 20.14 new text begin limited liability company, corporation, or other form of business organization, and must new text end 20.15 new text begin have and maintain at all times one of the following: approval as a mortgagee by either the new text end 20.16 new text begin federal Department of Housing and Urban Development or the Federal National Mortgage new text end 20.17 new text begin Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety bond new text end 20.18 new text begin or irrevocable letter of credit in the amount of $100,000. Net worth, net of intangibles, new text end 20.19 new text begin must be calculated in accordance with generally accepted accounting principles. new text end 20.20     new text begin (c) new text end The following persons are exempt from the residential mortgage originator 20.21licensing requirements: 20.22    (1) an employee of one mortgage originator licensee or one person holding a 20.23certificate of exemption; 20.24    (2) a person licensed as a real estate broker under chapter 82 who is not licensed to 20.25another real estate broker; 20.26    (3) an individual real estate licensee who is licensed to a real estate broker as 20.27described in clause (2) if: 20.28    (i) the individual licensee acts only under the name, authority, and supervision of the 20.29broker to whom the licensee is licensed; 20.30    (ii) the broker to whom the licensee is licensed obtains a certificate of exemption 20.31according to section 58.05, subdivision 2; 20.32    (iii) the broker does not collect an advance fee for its residential mortgage-related 20.33activities; and 20.34    (iv) the residential mortgage origination activities are incidental to the real estate 20.35licensee's primary activities as a real estate broker or salesperson; 21.1    (4) an individual licensed as a property/casualty or life/health insurance agent under 21.2chapter 60K if: 21.3    (i) the insurance agent acts on behalf of only one residential mortgage originator, 21.4which is in compliance with chapter 58; 21.5    (ii) the insurance agent has entered into a written contract with the mortgage 21.6originator under the terms of which the mortgage originator agrees to accept responsibility 21.7for the insurance agent's residential mortgage-related activities; 21.8    (iii) the insurance agent obtains a certificate of exemption under section 58.05, 21.9subdivision 2 ; and 21.10    (iv) the insurance agent does not collect an advance fee for the insurance agent's 21.11residential mortgage-related activities; 21.12    (5) new text begin (1) new text end a person who is not in the business of making residential mortgage loans and 21.13who makes no more than three such loans, with its own funds, during any 12-month period; 21.14    (6) new text begin (2) new text end a financial institution as defined in section 58.02, subdivision 10; 21.15    (7) new text begin (3) new text end an agency of the federal government, or of a state or municipal government; 21.16    (8) new text begin (4) new text end an employee or employer pension plan making loans only to its participants; 21.17    (9) new text begin (5) new text end a person acting in a fiduciary capacity, such as a trustee or receiver, as a result 21.18of a specific order issued by a court of competent jurisdiction; or 21.19    (10) new text begin (6) new text end a person exempted by order of the commissioner. 21.20    Sec. 14. Minnesota Statutes 2006, section 58.04, subdivision 2, is amended to read: 21.21    Subd. 2. Residential mortgage servicer licensing requirements. (a) Beginning 21.22August 1, 1999, No person shall engage in activities or practices that fall within the 21.23definition of "servicing a residential mortgage loan" under section 58.02, subdivision 21.2422 , without first obtaining a license from the commissioner according to the licensing 21.25procedures provided in this chapter. 21.26    (b) The following persons are exempt from the residential mortgage servicer 21.27licensing requirements: 21.28    (1) a person licensed as a residential mortgage originator; 21.29    (2) an employee of one licensee or one person holding a certificate of exemption 21.30based on an exemption under this subdivision; 21.31    (3) new text begin (2) new text end a person servicing loans made with its new text begin the person's new text end own funds, if no more 21.32than three such loans are made in any 12-month period; 21.33    (4) new text begin (3) new text end a financial institution as defined in section 58.02, subdivision 10; 21.34    (5) new text begin (4) new text end an agency of the federal government, or of a state or municipal government; 21.35    (6) new text begin (5) new text end an employee or employer pension plan making loans only to its participants; 22.1    (7) new text begin (6) new text end a person acting in a fiduciary capacity, such as a trustee or receiver, as a result 22.2of a specific order issued by a court of competent jurisdiction; or 22.3    (8) new text begin (7) new text end a person exempted by order of the commissioner. 22.4    Sec. 15. Minnesota Statutes 2006, section 58.05, is amended to read: 22.558.05 EXEMPTIONS FROM LICENSE. 22.6    Subdivision 1. Exempt person. An exempt person as defined by section 58.04, 22.7subdivision 1 , paragraph (b) new text begin (c) new text end , and subdivision 2, paragraph (b), is exempt from the 22.8licensing requirements of this chapter, but is subject to all other provisions of this chapter. 22.9    Subd. 3. Certificate of exemption. A person must obtain a certificate of exemption 22.10from the commissioner to qualify as an exempt person under section 58.04, subdivision 22.111 , paragraph (b) new text begin (c) new text end , as a real estate broker under clause (2), an insurance agent under 22.12clause (4), a financial institution under clause (6) new text begin (2) new text end , or by order of the commissioner 22.13under clause (10) new text begin (6) new text end ; or under section 58.04, subdivision 2, paragraph (b), as a financial 22.14institution under clause (4) new text begin (3) new text end , or by order of the commissioner under clause (8) new text begin (7) new text end . 22.15    Sec. 16. Minnesota Statutes 2006, section 58.06, subdivision 2, is amended to read: 22.16    Subd. 2. Application contents. new text begin (a) new text end The application must contain the name and 22.17complete business address or addresses of the license applicant. If The license applicant is new text begin new text end 22.18 new text begin must be new text end a partnership, limited liability partnership, association, limited liability company, 22.19corporation, or other form of business organization, new text begin and new text end the application must contain the 22.20names and complete business addresses of each partner, member, director, and principal 22.21officer. The application must also include a description of the activities of the license 22.22applicant, in the detail and for the periods the commissioner may require. 22.23     new text begin (b) An applicant must submit one of the following: new text end 22.24     new text begin (1) evidence which shows, to the commissioner's satisfaction, that either the federal new text end 22.25 new text begin Department of Housing and Urban Development or the Federal National Mortgage new text end 22.26 new text begin Association has approved the applicant as a mortgagee; new text end 22.27     new text begin (2) a surety bond or irrevocable letter of credit in the amount of not less than new text end 22.28 new text begin $100,000 in a form approved by the commissioner, issued by an insurance company new text end 22.29 new text begin or bank authorized to do so in this state. The bond or irrevocable letter of credit must new text end 22.30 new text begin be available for the recovery of expenses, fines, and fees levied by the commissioner new text end 22.31 new text begin under this chapter and for losses incurred by borrowers. The bond or letter of credit must new text end 22.32 new text begin be submitted with the license application, and evidence of continued coverage must be new text end 22.33 new text begin submitted with each renewal. Any change in the bond or letter of credit must be submitted new text end 22.34 new text begin for approval by the commissioner within ten days of its execution; or new text end 23.1     new text begin (3) a copy of the applicant's most recent audited financial statement, including new text end 23.2 new text begin balance sheet, statement of income or loss, statements of changes in shareholder equity, new text end 23.3 new text begin and statement of changes in financial position. Financial statements must be as of a date new text end 23.4 new text begin within 12 months of the date of application. new text end 23.5     new text begin (c) new text end The application must also include all of the following: 23.6    (a) new text begin (1) new text end an affirmation under oath that the applicant: 23.7    (1) will maintain competent staff and adequate staffing levels, through direct 23.8employees or otherwise, to meet the requirements of this chapter; new text begin (i) is in compliance new text end 23.9 new text begin with the requirements of section 58.125; new text end 23.10     new text begin (ii) will maintain a perpetual roster of individuals employed as residential mortgage new text end 23.11 new text begin originators, including employees and independent contractors, which includes the date that new text end 23.12 new text begin mandatory initial education was completed. In addition, the roster must be made available new text end 23.13 new text begin to the commissioner on demand, within three business days of the commissioner's request; new text end 23.14    (2) new text begin (iii) new text end will advise the commissioner of any material changes to the information 23.15submitted in the most recent application within ten days of the change; 23.16    (3) new text begin (iv) new text end will advise the commissioner in writing immediately of any bankruptcy 23.17petitions filed against or by the applicant or licensee; 23.18    (4) is financially solvent; new text begin (v) will maintain at all times either a net worth, net of new text end 23.19 new text begin intangibles, of at least $250,000 or a surety bond or irrevocable letter of credit in the new text end 23.20 new text begin amount of at least $100,000; new text end 23.21    (5) new text begin (vi) new text end complies with federal and state tax laws; new text begin and new text end 23.22    (6) new text begin (vii) new text end complies with sections 345.31 to 345.60, the Minnesota unclaimed property 23.23law; and 23.24    (7) is, or that a person in control of the license applicant is, at least 18 years of age; 23.25    (b) new text begin (2) new text end information as to the mortgage lending, servicing, or brokering experience 23.26of the applicant and persons in control of the applicant; 23.27    (c) new text begin (3) new text end information as to criminal convictions, excluding traffic violations, of persons 23.28in control of the license applicant; 23.29    (d) new text begin (4) new text end whether a court of competent jurisdiction has found that the applicant or 23.30persons in control of the applicant have engaged in conduct evidencing gross negligence, 23.31fraud, misrepresentation, or deceit in performing an act for which a license is required 23.32under this chapter; 23.33    (e) new text begin (5) new text end whether the applicant or persons in control of the applicant have been the 23.34subject of: an order of suspension or revocation, cease and desist order, or injunctive 23.35order, or order barring involvement in an industry or profession issued by this or another 24.1state or federal regulatory agency or by the Secretary of Housing and Urban Development 24.2within the ten-year period immediately preceding submission of the application; and 24.3    (f) new text begin (6) new text end other information required by the commissioner. 24.4    Sec. 17. Minnesota Statutes 2006, section 58.06, is amended by adding a subdivision 24.5to read: 24.6     new text begin Subd. 3. new text end new text begin Waiver. new text end new text begin The commissioner may, for good cause shown, waive any new text end 24.7 new text begin requirement of this section with respect to any license application or to permit a license new text end 24.8 new text begin applicant to submit substituted information in its license application in lieu of the new text end 24.9 new text begin information required by this section. new text end 24.10    Sec. 18. Minnesota Statutes 2006, section 58.08, subdivision 3, is amended to read: 24.11    Subd. 3. Exemption. Subdivisions 1 and new text begin Subdivision new text end 2 do new text begin does new text end not apply to 24.12mortgage originators or mortgage servicers who are approved as seller/servicers by the 24.13Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. 24.14    Sec. 19. Minnesota Statutes 2006, section 58.10, subdivision 1, is amended to read: 24.15    Subdivision 1. Amounts. The following fees must be paid to the commissioner: 24.16    (1) for an initial residential mortgage originator license, $850 new text begin $2,550 new text end , $50 of which 24.17is credited to the consumer education account in the special revenue fund; 24.18    (2) for a renewal license, $450 new text begin $1,350 new text end , $50 of which is credited to the consumer 24.19education account in the special revenue fund; 24.20    (3) for an initial residential mortgage servicer's license, $1,000; 24.21    (4) for a renewal license, $500; and 24.22    (5) for a certificate of exemption, $100. 24.23    Sec. 20. new text begin [58.115] EXAMINATIONS. new text end 24.24     new text begin The commissioner has under this chapter the same powers with respect to new text end 24.25 new text begin examinations that the commissioner has under section 46.04, including the authority to new text end 24.26 new text begin charge for the direct costs of the examination, including travel and per diem expenses. new text end 24.27    Sec. 21. new text begin [58.126] EDUCATION REQUIREMENT. new text end 24.28     new text begin No individual shall engage in residential mortgage origination or make residential new text end 24.29 new text begin mortgage loans, whether as an employee or independent contractor, before the completion new text end 24.30 new text begin of 15 hours of educational training which has been approved by the commissioner, and new text end 24.31 new text begin covering state and federal laws concerning residential mortgage lending. new text end 25.1    Sec. 22. new text begin [59C.01] SHORT TITLE. new text end 25.2     new text begin This chapter may be cited as the Vehicle Protection Product Act. new text end 25.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 25.4    Sec. 23. new text begin [59C.02] DEFINITIONS. new text end 25.5     new text begin Subdivision 1. new text end new text begin Terms. new text end new text begin For purposes of this chapter, the terms defined in subdivisions new text end 25.6 new text begin 2 to 11 have the meanings given them. new text end 25.7     new text begin Subd. 2. new text end new text begin Administrator. new text end new text begin "Administrator" means a third party other than the new text end 25.8 new text begin warrantor who is designated by the warrantor to be responsible for the administration new text end 25.9 new text begin of vehicle protection product warranties. new text end 25.10     new text begin Subd. 3. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of commerce. new text end 25.11     new text begin Subd. 4. new text end new text begin Department. new text end new text begin "Department" means the Department of Commerce. new text end 25.12     new text begin Subd. 5. new text end new text begin Incidental costs. new text end new text begin "Incidental costs" means expenses specified in the new text end 25.13 new text begin warranty incurred by the warranty holder related to the failure of the vehicle protection new text end 25.14 new text begin product to perform as provided in the warranty. Incidental costs may include, without new text end 25.15 new text begin limitation, insurance policy deductibles, rental vehicle charges, the difference between the new text end 25.16 new text begin actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, new text end 25.17 new text begin sales taxes, registration fees, transaction fees, and mechanical inspection fees. new text end 25.18     new text begin Subd. 6. new text end new text begin Service contract. new text end new text begin "Service contract" means a contract or agreement as new text end 25.19 new text begin regulated under chapter 59B. new text end 25.20     new text begin Subd. 7. new text end new text begin Vehicle protection product. new text end new text begin "Vehicle protection product" means a vehicle new text end 25.21 new text begin protection device, system, or service that: new text end 25.22     new text begin (1) is installed on or applied to a vehicle; new text end 25.23     new text begin (2) is designed to prevent loss or damage to a vehicle from a specific cause; and new text end 25.24     new text begin (3) includes a written warranty. new text end 25.25     new text begin For purposes of this section, vehicle protection product includes, without limitation, new text end 25.26 new text begin alarm systems; body part marking products; steering locks; window etch products; pedal new text end 25.27 new text begin and ignition locks; fuel and ignition kill switches; and electronic, radio, and satellite new text end 25.28 new text begin tracking devices. new text end 25.29     new text begin Subd. 8. new text end new text begin Vehicle protection product warranty or warranty. new text end new text begin "Vehicle protection new text end 25.30 new text begin product warranty" or "warranty" means, for the purposes of this chapter, a written new text end 25.31 new text begin agreement by a warrantor that provides if the vehicle protection product fails to prevent new text end 25.32 new text begin loss or damage to a vehicle from a specific cause, that the warranty holder must be new text end 25.33 new text begin paid specified incidental costs by the warrantor as a result of the failure of the vehicle new text end 25.34 new text begin protection product to perform pursuant to the terms of the warranty. new text end 26.1     new text begin Subd. 9. new text end new text begin Vehicle protection product warrantor or warrantor. new text end new text begin "Vehicle protection new text end 26.2 new text begin product warrantor" or "warrantor," for the purposes of this chapter, means a person who is new text end 26.3 new text begin contractually obligated to the warranty holder under the terms of the vehicle protection new text end 26.4 new text begin product warranty agreement. Warrantor does not include an authorized insurer providing a new text end 26.5 new text begin warranty reimbursement insurance policy. new text end 26.6     new text begin Subd. 10. new text end new text begin Warranty holder. new text end new text begin "Warranty holder," for the purposes of this chapter, new text end 26.7 new text begin means the person who purchases a vehicle protection product or who is a permitted new text end 26.8 new text begin transferee. new text end 26.9     new text begin Subd. 11. new text end new text begin Warranty reimbursement insurance policy. new text end new text begin "Warranty reimbursement new text end 26.10 new text begin insurance policy" means a policy of insurance that is issued to the vehicle protection new text end 26.11 new text begin product warrantor to provide reimbursement to, or to pay on behalf of, the warrantor all new text end 26.12 new text begin covered contractual obligations incurred by the warrantor under the terms and conditions new text end 26.13 new text begin of the insured vehicle protection product warranties sold by the warrantor. new text end 26.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 26.15    Sec. 24. new text begin [59C.03] SCOPE AND EXEMPTIONS. new text end 26.16     new text begin (a) No vehicle protection product may be sold or offered for sale in this state unless new text end 26.17 new text begin the seller, warrantor, and administrator, if any, comply with the provisions of this chapter. new text end 26.18     new text begin (b) Vehicle protection product warrantors and related vehicle protection product new text end 26.19 new text begin sellers and warranty administrators complying with this chapter are not required to comply new text end 26.20 new text begin with and are not subject to any other provision of chapters 59B to 72A, except that section new text end 26.21 new text begin 72A.20, subdivision 38, shall apply to vehicle protection product warranties in the same new text end 26.22 new text begin manner it applies to service contracts. new text end 26.23     new text begin (c) Service contract providers who do not sell vehicle protection products are not new text end 26.24 new text begin subject to the requirements of this chapter and sales of vehicle protection products are new text end 26.25 new text begin exempt from the requirements of chapter 59B. new text end 26.26     new text begin (d) Warranties, indemnity agreements, and guarantees that are not provided as a part new text end 26.27 new text begin of a vehicle protection product are not subject to the provisions of this chapter. new text end 26.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 26.29    Sec. 25. new text begin [59C.04] REGISTRATION AND FILING REQUIREMENTS OF new text end 26.30 new text begin WARRANTORS. new text end 26.31     new text begin Subdivision 1. new text end new text begin General requirement. new text end new text begin A person may not operate as a warrantor or new text end 26.32 new text begin represent to the public that the person is a warrantor unless the person is registered with new text end 26.33 new text begin the department on a form prescribed by the commissioner. new text end 27.1     new text begin Subd. 2. new text end new text begin Registration records. new text end new text begin A registrant shall file a warrantor registration new text end 27.2 new text begin record annually and shall update it within 30 days of any change. A registration record new text end 27.3 new text begin must contain the following information: new text end 27.4     new text begin (1) the warrantor's name, any fictitious names under which the warrantor does new text end 27.5 new text begin business in the state, principal office address, and telephone number; new text end 27.6     new text begin (2) the name and address of the warrantor's agent for service of process in the state if new text end 27.7 new text begin other than the warrantor; new text end 27.8     new text begin (3) the names of the warrantor's executive officer or officers directly responsible for new text end 27.9 new text begin the warrantor's vehicle protection product business; new text end 27.10     new text begin (4) the name, address, and telephone number of any administrators designated by new text end 27.11 new text begin the warrantor to be responsible for the administration of vehicle protection product new text end 27.12 new text begin warranties in this state; new text end 27.13     new text begin (5) a copy of the warranty reimbursement insurance policy or policies or other new text end 27.14 new text begin financial information required by section 59C.05; new text end 27.15     new text begin (6) a copy of each warranty the warrantor proposes to use in this state; and new text end 27.16     new text begin (7) a statement indicating under which provision of section 59C.05 the warrantor new text end 27.17 new text begin qualifies to do business in this state as a warrantor. new text end 27.18     new text begin Subd. 3. new text end new text begin Registration fee. new text end new text begin The commissioner may charge each registrant a new text end 27.19 new text begin reasonable fee to offset the cost of processing the registration and maintaining the records new text end 27.20 new text begin in an amount not to exceed $250 annually. The information in subdivision 2, clauses (1) new text end 27.21 new text begin and (2), must be made available to the public. new text end 27.22     new text begin Subd. 4. new text end new text begin Renewal. new text end new text begin If a registrant fails to register by the renewal deadline, the new text end 27.23 new text begin commissioner shall give them written notice of the failure and the registrant will have 30 new text end 27.24 new text begin days to complete the renewal of the registration before the commissioner suspends the new text end 27.25 new text begin registration. new text end 27.26     new text begin Subd. 5. new text end new text begin Exception. new text end new text begin An administrator or person who sells or solicits a sale of a new text end 27.27 new text begin vehicle protection product but who is not a warrantor shall not be required to register as a new text end 27.28 new text begin warrantor or be licensed under the insurance laws of this state to sell vehicle protection new text end 27.29 new text begin products. new text end 27.30 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 27.31    Sec. 26. new text begin [59C.05] FINANCIAL RESPONSIBILITY. new text end 27.32     new text begin Subdivision 1. new text end new text begin General requirements. new text end new text begin No vehicle protection product may be sold, new text end 27.33 new text begin or offered for sale in this state unless the warrantor meets either the requirements of new text end 27.34 new text begin subdivision 2 or 3 in order to ensure adequate performance under the warranty. No other new text end 27.35 new text begin financial security requirements or financial standards for warrantors is required. new text end 28.1     new text begin Subd. 2. new text end new text begin Warranty reimbursement insurance policy. new text end new text begin The vehicle protection new text end 28.2 new text begin product warrantor shall be insured under a warranty reimbursement insurance policy new text end 28.3 new text begin issued by an insurer authorized to do business in this state which provides that: new text end 28.4     new text begin (1) the insurer will pay to, or on behalf of the warrantor, 100 percent of all sums new text end 28.5 new text begin that the warrantor is legally obligated to pay according to the warrantor's contractual new text end 28.6 new text begin obligations under the warrantor's vehicle protection product warranty; new text end 28.7     new text begin (2) a true and correct copy of the warranty reimbursement insurance policy has been new text end 28.8 new text begin filed with the commissioner by the warrantor; and new text end 28.9     new text begin (3) the policy contains the provision required in section 59C.06. new text end 28.10     new text begin Subd. 3. new text end new text begin Network or stockholder's equity. new text end new text begin (1) The vehicle protection product new text end 28.11 new text begin warrantor, or its parent company in accordance with clause (2), shall maintain a net worth new text end 28.12 new text begin or stockholders' equity of $50,000,000; and new text end 28.13     new text begin (2) the warrantor shall provide the commissioner with a copy of the warrantor's or new text end 28.14 new text begin the warrantor's parent company's most recent Form 10-K or Form 20-F filed with the new text end 28.15 new text begin Securities and Exchange Commission within the last calendar year or, if the warrantor new text end 28.16 new text begin does not file with the Securities and Exchange Commission, a copy of the warrantor or new text end 28.17 new text begin the warrantor's parent company's audited financial statements that shows a net worth of new text end 28.18 new text begin the warrantor or its parent company of at least $50,000,000. If the warrantor's parent new text end 28.19 new text begin company's Form 10-K, Form 20-F, or audited financial statements are filed to meet new text end 28.20 new text begin the warrantor's financial stability requirement, then the parent company shall agree to new text end 28.21 new text begin guarantee the obligations of the warrantor relating to warranties issued by the warrantor in new text end 28.22 new text begin this state. The financial information provided to the commissioner under this paragraph new text end 28.23 new text begin is trade secret information for purposes of section 13.37. new text end 28.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 28.25    Sec. 27. new text begin [59C.06] WARRANTY REIMBURSEMENT POLICY new text end 28.26 new text begin REQUIREMENTS. new text end 28.27     new text begin No warranty reimbursement insurance policy may be issued, sold, or offered for sale new text end 28.28 new text begin in this state unless the policy meets the following conditions: new text end 28.29     new text begin (1) the policy states that the issuer of the policy will reimburse, or pay on behalf of new text end 28.30 new text begin the vehicle protection product warrantor, all covered sums that the warrantor is legally new text end 28.31 new text begin obligated to pay, or will provide all service that the warrantor is legally obligated to new text end 28.32 new text begin perform according to the warrantor's contractual obligations under the provisions of the new text end 28.33 new text begin insured warranties sold by the warrantor; new text end 28.34     new text begin (2) the policy states that in the event payment due under the terms of the warranty is new text end 28.35 new text begin not provided by the warrantor within 60 days after proof of loss has been filed according new text end 29.1 new text begin to the terms of the warranty by the warranty holder, the warranty holder may file directly new text end 29.2 new text begin with the warranty reimbursement insurance company for reimbursement; new text end 29.3     new text begin (3) the policy provides that a warranty reimbursement insurance company that new text end 29.4 new text begin insures a warranty is deemed to have received payment of the premium if the warranty new text end 29.5 new text begin holder paid for the vehicle protection product and the insurer's liability under the policy new text end 29.6 new text begin shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the new text end 29.7 new text begin issuance of a warranty to the insurer; and new text end 29.8     new text begin (4) the policy has the following provisions regarding cancellation of the policy: new text end 29.9     new text begin (i) the issuer of a reimbursement insurance policy shall not cancel the policy until a new text end 29.10 new text begin notice of cancellation in writing has been mailed or delivered to the commissioner and new text end 29.11 new text begin each insured warrantor; new text end 29.12     new text begin (ii) the cancellation of a reimbursement insurance policy shall not reduce the issuer's new text end 29.13 new text begin responsibility for vehicle protection products sold prior to the date of cancellation; and new text end 29.14     new text begin (iii) in the event an insurer cancels a policy that a warrantor has filed with the new text end 29.15 new text begin commissioner, the warrantor shall do either of the following: new text end 29.16     new text begin (A) file a copy of a new policy with the commissioner, before the termination of new text end 29.17 new text begin the prior policy, providing no lapse in coverage following the termination of the prior new text end 29.18 new text begin policy; or new text end 29.19     new text begin (B) discontinue offering warranties as of the termination date of the policy until a new text end 29.20 new text begin new policy becomes effective and is accepted by the commissioner. new text end 29.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 29.22    Sec. 28. new text begin [59C.07] DISCLOSURE TO WARRANTY HOLDER. new text end 29.23     new text begin A vehicle protection product warranty must not be sold or offered for sale in this new text end 29.24 new text begin state unless the warranty: new text end 29.25     new text begin (1) states, "The obligations of the warrantor to the warranty holder are guaranteed new text end 29.26 new text begin under a warranty reimbursement insurance policy" if the warrantor elects to meet its new text end 29.27 new text begin financial responsibility obligations under section 59C.05, subdivision 2, or states "The new text end 29.28 new text begin obligations of the warrantor under this warranty are backed by the full faith and credit new text end 29.29 new text begin of the warrantor" if the warrantor elects to meet its financial responsibility obligations new text end 29.30 new text begin under section 59C.05, subdivision 3; new text end 29.31     new text begin (2) states that in the event a warranty holder must make a claim against a party other new text end 29.32 new text begin than the warranty reimbursement insurance policy issuer, the warranty holder is entitled to new text end 29.33 new text begin make a direct claim against the insurer upon the failure of the warrantor to pay any claim new text end 29.34 new text begin or meet any obligation under the terms of the warranty within 60 days after proof of loss new text end 30.1 new text begin has been filed with the warrantor, if the warrantor elects to meet its financial responsibility new text end 30.2 new text begin obligations under section 59C.05, subdivision 2; new text end 30.3     new text begin (3) states the name and address of the issuer of the warranty reimbursement new text end 30.4 new text begin insurance policy, and this information need not be preprinted on the warranty form, but new text end 30.5 new text begin may be added to or stamped on the warranty, if the warrantor elects to meet its financial new text end 30.6 new text begin responsibility obligations under section 59C.05, subdivision 2; new text end 30.7     new text begin (4) identifies the warrantor, the seller, and the warranty holder; new text end 30.8     new text begin (5) sets forth the total purchase price and the terms under which it is to be paid, new text end 30.9 new text begin however, the purchase price is not required to be preprinted on the vehicle protection new text end 30.10 new text begin product warranty and may be negotiated with the consumer at the time of sale; new text end 30.11     new text begin (6) sets forth the procedure for making a claim, including a telephone number; new text end 30.12     new text begin (7) specifies the payments or performance to be provided under the warranty new text end 30.13 new text begin including payments for incidental costs expressed as either a fixed amount specified in the new text end 30.14 new text begin warranty or sales agreement or by the use of a formula itemizing specific incidental costs new text end 30.15 new text begin incurred by the warranty holder, the manner of calculation or determination of payments new text end 30.16 new text begin or performance, and any limitations, exceptions, or exclusions; new text end 30.17     new text begin (8) sets forth all of the obligations and duties of the warranty holder such as the duty new text end 30.18 new text begin to protect against any further damage to the vehicle, the obligation to notify the warrantor new text end 30.19 new text begin in advance of any repair, or other similar requirements, if any; new text end 30.20     new text begin (9) sets forth any terms, restrictions, or conditions governing transferability and new text end 30.21 new text begin cancellation of the warranty, if any; and new text end 30.22     new text begin (10) contains a disclosure that reads substantially as follows: "This agreement is a new text end 30.23 new text begin product warranty and is not insurance." new text end 30.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 30.25    Sec. 29. new text begin [59C.08] PROHIBITED ACTS. new text end 30.26     new text begin (a) Unless licensed as an insurance company, a vehicle protection product warrantor new text end 30.27 new text begin shall not use in its name, contracts, or literature, any of the words "insurance," "casualty," new text end 30.28 new text begin "surety," "mutual," or any other words descriptive of the insurance, casualty, or surety new text end 30.29 new text begin business or deceptively similar to the name or description of any insurance or surety new text end 30.30 new text begin corporation, or any other vehicle protection product warrantor. A warrantor may use the new text end 30.31 new text begin term "guaranty" or similar word in the warrantor's name. new text end 30.32     new text begin (b) A vehicle protection product seller or warrantor may not require as a condition of new text end 30.33 new text begin financing that a retail purchaser of a motor vehicle purchase a vehicle protection product. new text end 30.34 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 31.1    Sec. 30. new text begin [59C.09] RECORD KEEPING. new text end 31.2     new text begin (a) All vehicle protection product warrantors shall keep accurate accounts, books, new text end 31.3 new text begin and records concerning transactions regulated under this chapter. new text end 31.4     new text begin (b) A vehicle protection product warrantor's accounts, books, and records must new text end 31.5 new text begin include: new text end 31.6     new text begin (1) copies of all vehicle protection product warranties; new text end 31.7     new text begin (2) the name and address of each warranty holder; and new text end 31.8     new text begin (3) the dates, amounts, and descriptions of all receipts, claims, and expenditures. new text end 31.9     new text begin (c) A vehicle protection product warrantor shall retain all required accounts, books, new text end 31.10 new text begin and records pertaining to each warranty holder for at least two years after the specified new text end 31.11 new text begin period of coverage has expired. A warrantor discontinuing business in this state shall new text end 31.12 new text begin maintain its records until it furnishes the commissioner satisfactory proof that it has new text end 31.13 new text begin discharged all obligations to warranty holders in this state. new text end 31.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 31.15    Sec. 31. new text begin [59C.10] COMMISSIONER'S POWERS AND DUTIES. new text end 31.16     new text begin Subdivision 1. new text end new text begin Examination and compliance powers. new text end new text begin The commissioner may new text end 31.17 new text begin conduct examinations of warrantors, administrators, or other persons to enforce this new text end 31.18 new text begin chapter and protect warranty holders in this state. Upon request of the commissioner, a new text end 31.19 new text begin warrantor shall make available to the commissioner all accounts, books, and records new text end 31.20 new text begin concerning vehicle protection products sold by the warrantor and transactions regulated new text end 31.21 new text begin under this chapter that are necessary to enable the commissioner to reasonably determine new text end 31.22 new text begin compliance or noncompliance with this chapter. new text end 31.23     new text begin Subd. 2. new text end new text begin Enforcement authority. new text end new text begin The commissioner may take action that is new text end 31.24 new text begin necessary or appropriate to enforce the provisions of this chapter and the commissioner's new text end 31.25 new text begin rules and orders and to protect warranty holders in this state. The commissioner has the new text end 31.26 new text begin enforcement authority in chapter 45 available to enforce the provisions of the chapter and new text end 31.27 new text begin the rules adopted pursuant to it. new text end 31.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 31.29    Sec. 32. new text begin [59C.12] APPLICABILITY. new text end 31.30     new text begin This chapter applies to all vehicle protection products sold or offered for sale on new text end 31.31 new text begin or after the effective date of this chapter. The failure of any person to comply with this new text end 31.32 new text begin chapter before its effective date is not admissible in any court proceeding, administrative new text end 31.33 new text begin proceeding, arbitration, or alternative dispute resolution proceeding and may not otherwise new text end 32.1 new text begin be used to prove that the action of any person or the affected vehicle protection product new text end 32.2 new text begin was unlawful or otherwise improper. The adoption of this chapter does not imply that new text end 32.3 new text begin a vehicle protection product warranty was insurance before the effective date of this new text end 32.4 new text begin chapter. Nothing in this section may be construed to require the application of the penalty new text end 32.5 new text begin provisions where this section is not applicable. new text end 32.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 32.7    Sec. 33. new text begin [60K.365] PRODUCER TRAINING REQUIREMENTS FOR new text end 32.8 new text begin LONG-TERM CARE PARTNERSHIP PROGRAM INSURANCE PRODUCTS. new text end 32.9     new text begin (a) An individual may not sell, solicit, or negotiate long-term care insurance new text end 32.10 new text begin unless the individual is licensed as an insurance producer for accident and health or new text end 32.11 new text begin sickness insurance or life insurance and has completed an initial training course and new text end 32.12 new text begin ongoing training every 24 months thereafter. The training shall meet the requirements of new text end 32.13 new text begin paragraph (b). new text end 32.14     new text begin (b) The initial training course required by this subdivision shall be no less than new text end 32.15 new text begin eight hours and the ongoing training courses required by this subdivision shall be no less new text end 32.16 new text begin than four hours every 24 months. The courses shall be approved by the Department of new text end 32.17 new text begin Commerce and may be approved as continuing education courses under section 60K.56. new text end 32.18 new text begin The courses shall consist of topics related to long-term care insurance, long-term care new text end 32.19 new text begin services, and, if applicable, qualified state long-term care insurance partnership programs, new text end 32.20 new text begin including but not limited to: new text end 32.21     new text begin (1) state and federal regulations and requirements and the relationship between new text end 32.22 new text begin qualified state long-term care insurance partnership programs and other public and private new text end 32.23 new text begin coverage of long-term care services, including Medicaid; new text end 32.24     new text begin (2) available long-term care services and providers; new text end 32.25     new text begin (3) changes or improvements in long-term care services or providers; new text end 32.26     new text begin (4) alternatives to the purchase of private long-term care insurance; new text end 32.27     new text begin (5) the effect of inflation on benefits and the importance of inflation protection; and new text end 32.28     new text begin (6) consumer suitability standards and guidelines. new text end 32.29     new text begin The training required by this subdivision shall not include training that is insurer or new text end 32.30 new text begin company product specific or that includes any sales or marketing information, materials, new text end 32.31 new text begin or training, other than those required by state or federal law. new text end 32.32     new text begin (c) Insurers shall obtain verification that a producer has received the training new text end 32.33 new text begin required by this subdivision before a producer is permitted to sell, solicit, or negotiate the new text end 32.34 new text begin insurer's long-term care insurance products. Insurers shall maintain records verifying new text end 33.1 new text begin that the producer has received the training contained in this subdivision and make that new text end 33.2 new text begin verification available to the commissioner upon request. new text end 33.3     new text begin (d) Currently licensed producers must complete the initial training course by January new text end 33.4 new text begin 1, 2008. new text end 33.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 33.6    Sec. 34. Minnesota Statutes 2006, section 60K.55, subdivision 2, is amended to read: 33.7    Subd. 2. Licensing fees. (a) In addition to fees provided for examinations new text begin and the new text end 33.8 new text begin technology surcharge required under paragraph (d) new text end , each insurance producer licensed 33.9under this chapter shall pay to the commissioner a fee of: 33.10    (1) $50 for an initial life, accident and health, property, or casualty license issued to 33.11an individual insurance producer, and a fee of $50 for each renewal; 33.12    (2) $50 for an initial variable life and variable annuity license issued to an individual 33.13insurance producer, and a fee of $50 for each renewal; 33.14    (3) $50 for an initial personal lines license issued to an individual insurance 33.15producer, and a fee of $50 for each renewal; 33.16    (4) $50 for an initial limited lines license issued to an individual insurance producer, 33.17and a fee of $50 for each renewal; 33.18    (5) $200 for an initial license issued to a business entity, and a fee of $200 for each 33.19renewal; and 33.20    (6) $500 for an initial surplus lines license, and a fee of $500 for each renewal. 33.21    (b) Initial licenses issued under this chapter are valid for a period not to exceed 24 33.22months and expire on October 31 of the renewal year assigned by the commissioner. 33.23Each renewal insurance producer license is valid for a period of 24 months. Licensees 33.24who submit renewal applications postmarked or delivered on or before October 15 of the 33.25renewal year may continue to transact business whether or not the renewal license has been 33.26received by November 1. Licensees who submit applications postmarked or delivered 33.27after October 15 of the renewal year must not transact business after the expiration date 33.28of the license until the renewal license has been received. 33.29    (c) All fees are nonreturnable, except that an overpayment of any fee may be 33.30refunded upon proper application. 33.31     new text begin (d) In addition to the fees required under paragraph (a), individual insurance new text end 33.32 new text begin producers shall pay, for each initial license and renewal, a technology surcharge of up to new text end 33.33 new text begin $40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted new text end 33.34 new text begin under that section. new text end 34.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective October 1, 2007. new text end 34.2    Sec. 35. Minnesota Statutes 2006, section 65B.44, subdivision 2, is amended to read: 34.3    Subd. 2. Medical expense benefits. (a) Medical expense benefits shall reimburse 34.4all reasonable expenses for necessary: 34.5    (1) medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services, 34.6including prosthetic devices new text begin and items that provide relief from any injury new text end ; 34.7    (2) prescription drugs; 34.8    (3) ambulance and all other transportation expenses incurred in traveling to receive 34.9other covered medical expense benefits; 34.10    (4) sign interpreting and language translation services, other than such services 34.11provided by a family member of the patient, related to the receipt of medical, surgical, 34.12x-ray, optical, dental, chiropractic, hospital, extended care, nursing, and rehabilitative 34.13services; and 34.14    (5) hospital, extended care, and nursing services. 34.15    (b) Hospital room and board benefits may be limited, except for intensive care 34.16facilities, to the regular daily semiprivate room rates customarily charged by the institution 34.17in which the recipient of benefits is confined. 34.18    (c) Such benefits shall also include necessary remedial treatment and services 34.19recognized and permitted under the laws of this state for an injured person who relies 34.20upon spiritual means through prayer alone for healing in accordance with that person's 34.21religious beliefs. 34.22    (d) Medical expense loss includes medical expenses accrued prior to the death of a 34.23person notwithstanding the fact that benefits are paid or payable to the decedent's survivors. 34.24    (e) Medical expense benefits for rehabilitative services shall be subject to the 34.25provisions of section 65B.45. 34.26    Sec. 36. Minnesota Statutes 2006, section 65B.44, subdivision 3, is amended to read: 34.27    Subd. 3. Disability and income loss benefits. Disability and income loss benefits 34.28shall provide compensation for 85 percent of the injured person's loss of present and future 34.29gross income from inability to work proximately caused by the nonfatal injury subject 34.30to a maximum of $250 new text begin $500 new text end per week. Loss of income includes the costs incurred by a 34.31self-employed person to hire substitute employees to perform tasks which are necessary to 34.32maintain the income of the injured person, which are normally performed by the injured 34.33person, and which cannot be performed because of the injury. 35.1    If the injured person is unemployed at the time of injury and is receiving or is 35.2eligible to receive unemployment benefits under chapter 268, but the injured person loses 35.3eligibility for those benefits because of inability to work caused by the injury, disability 35.4and income loss benefits shall provide compensation for the lost benefits in an amount 35.5equal to the unemployment benefits which otherwise would have been payable, subject to 35.6a maximum of $250 new text begin $500 new text end per week. 35.7    Compensation under this subdivision shall be reduced by any income from substitute 35.8work actually performed by the injured person or by income the injured person would 35.9have earned in available appropriate substitute work which the injured person was capable 35.10of performing but unreasonably failed to undertake. 35.11    For the purposes of this section "inability to work" means disability which prevents 35.12the injured person from engaging in any substantial gainful occupation or employment 35.13on a regular basis, for wage or profit, for which the injured person is or may by training 35.14become reasonably qualified. If the injured person returns to employment and is unable by 35.15reason of the injury to work continuously, compensation for lost income shall be reduced 35.16by the income received while the injured person is actually able to work. The weekly 35.17maximums may not be prorated to arrive at a daily maximum, even if the injured person 35.18does not incur loss of income for a full week. 35.19    For the purposes of this section, an injured person who is "unable by reason of the 35.20injury to work continuously" includes, but is not limited to, a person who misses time 35.21from work, including reasonable travel time, and loses income, vacation, or sick leave 35.22benefits, to obtain medical treatment for an injury arising out of the maintenance or use 35.23of a motor vehicle. 35.24    Sec. 37. Minnesota Statutes 2006, section 65B.44, subdivision 4, is amended to read: 35.25    Subd. 4. Funeral and burial expenses. Funeral and burial benefits shall be 35.26reasonable expenses not in excess of $2,000 new text begin $5,000 new text end , including expenses for cremation or 35.27delivery under the Uniform Anatomical Gift Act (1987), sections 525.921 to 525.9224. 35.28    Sec. 38. Minnesota Statutes 2006, section 65B.44, subdivision 5, is amended to read: 35.29    Subd. 5. Replacement service and loss. Replacement service loss benefits shall 35.30reimburse all expenses reasonably incurred by or on behalf of the nonfatally injured 35.31person in obtaining usual and necessary substitute services in lieu of those that, had the 35.32injured person not been injured, the injured person would have performed not for income 35.33but for direct personal benefit or for the benefit of the injured person's household; if 35.34the nonfatally injured person normally, as a full time responsibility, provides care and 36.1maintenance of a home with or without children, the benefit to be provided under this 36.2subdivision shall be the reasonable value of such care and maintenance or the reasonable 36.3expenses incurred in obtaining usual and necessary substitute care and maintenance of 36.4the home, whichever is greater. These benefits shall be subject to a maximum of $200 36.5 new text begin $600 new text end per week. All replacement services loss sustained on the date of injury and the first 36.6seven days thereafter is excluded in calculating replacement services loss. 36.7    Sec. 39. Minnesota Statutes 2006, section 65B.47, subdivision 7, is amended to read: 36.8    Subd. 7. Adding policies together. Unless a policyholder makes a specific election 36.9 new text begin not new text end to have two or more policies added together the limit of liability for basic economic 36.10loss benefits for two or more motor vehicles may not new text begin must new text end be added together to determine 36.11the limit of insurance coverage available to an injured person for any one accident. An 36.12insurer shall notify policyholders that they may elect new text begin not new text end to have two or more policies 36.13added together. 36.14    Sec. 40. Minnesota Statutes 2006, section 65B.54, subdivision 1, is amended to read: 36.15    Subdivision 1. Payment of basic economic loss benefits. Basic economic loss 36.16benefits are payable monthly as loss accrues. Loss accrues not when injury occurs, but as 36.17income loss, replacement services loss, survivor's economic loss, survivor's replacement 36.18services loss, or medical or funeral expense is incurred. Benefits are overdue if not 36.19paid within 30 days after the reparation obligor receives reasonable proof of the fact 36.20and amount of loss realized, unless the reparation obligor elects to accumulate claims 36.21for periods not exceeding 31 days and pays them within 15 days after the period of 36.22accumulation. new text begin However, if the insurer notifies the insured that it is denying benefits, the new text end 36.23 new text begin insured need not continue to provide the insurer with proof of the bills, losses, or expenses. new text end 36.24If reasonable proof is supplied as to only part of a claim, and the part totals $100 or more, 36.25the part is overdue if not paid within the time provided by this section. Medical or funeral 36.26expense benefits may be paid by the reparation obligor directly to persons supplying 36.27products, services, or accommodations to the claimant. 36.28    Sec. 41. Minnesota Statutes 2006, section 65B.54, is amended by adding a subdivision 36.29to read: 36.30     new text begin Subd. 6. new text end new text begin Unethical practices. new text end new text begin (a) A licensed health care provider shall not initiate new text end 36.31 new text begin direct contact, in person, over the telephone, or by other electronic means, with any person new text end 36.32 new text begin who has suffered an injury arising out of the maintenance or use of an automobile, for the new text end 36.33 new text begin purpose of influencing that person to receive treatment or to purchase any good or item new text end 37.1 new text begin from the licensee or anyone associated with the licensee. This subdivision prohibits such new text end 37.2 new text begin direct contact whether initiated by the licensee individually or on behalf of the licensee by new text end 37.3 new text begin any employee, independent contractor, agent, or third party. This subdivision does not new text end 37.4 new text begin apply when an injured person voluntarily initiates contact with a licensee. new text end 37.5     new text begin (b) This subdivision does not prohibit licensees from mailing advertising literature new text end 37.6 new text begin directly to such persons, so long as: new text end 37.7     new text begin (1) the word "ADVERTISEMENT" appears clearly and conspicuously at the new text end 37.8 new text begin beginning of the written materials; new text end 37.9     new text begin (2) the name of the individual licensee appears clearly and conspicuously within new text end 37.10 new text begin the written materials; new text end 37.11     new text begin (3) the licensee is clearly identified as a licensed health care provider within the new text end 37.12 new text begin written materials; and new text end 37.13     new text begin (4) the licensee does not initiate, individually or through any employee, independent new text end 37.14 new text begin contractor, agent, or third party, direct contact with the person after the written materials new text end 37.15 new text begin are sent. new text end 37.16     new text begin (c) This subdivision does not apply to: new text end 37.17     new text begin (1) advertising that does not involve direct contact with specific prospective patients, new text end 37.18 new text begin in public media such as telephone directories, professional directories, ads in newspapers new text end 37.19 new text begin and other periodicals, radio or television ads, Web sites, billboards, or similar media; or new text end 37.20     new text begin (2) general marketing practices such as giving lectures; participating in special new text end 37.21 new text begin events, trade shows, or meetings of organizations; or making presentations relative to new text end 37.22 new text begin the benefits of chiropractic treatment; or new text end 37.23     new text begin (3) contact with friends or relatives, or statements made in a social setting. new text end 37.24     new text begin (d) A violation of this subdivision is grounds for the licensing authority to take new text end 37.25 new text begin disciplinary action against the licensee, including revocation in appropriate cases. new text end 37.26    Sec. 42. Minnesota Statutes 2006, section 80A.28, subdivision 1, is amended to read: 37.27    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of 37.28$100 for every application for registration or notice filing. There shall be an additional fee 37.29of one-tenth of one percent of the maximum aggregate offering price at which the securities 37.30are to be offered in this state, and the maximum combined fees shall not exceed $300. 37.31    (b) When an application for registration is withdrawn before the effective date or a 37.32preeffective stop order is entered under section 80A.13, subdivision 1, all but the $100 37.33filing fee shall be returned. If an application to register securities is denied, the total of all 37.34fees received shall be retained. 38.1    (c) Where a filing is made in connection with a federal covered security under 38.2section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 38.3If the filing is made in connection with redeemable securities issued by an open end 38.4management company or unit investment trust, as defined in the Investment Company Act 38.5of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate 38.6offering price at which the securities are to be offered in this state during the notice filing 38.7period. The fee must be paid at the time of the initial filing and thereafter in connection 38.8with each renewal no later than July 1 of each year and must be sufficient to cover the 38.9shares the issuer expects to sell in this state over the next 12 months. If during a current 38.10notice filing the issuer determines it is likely to sell shares in excess of the shares for 38.11which fees have been paid to the commissioner, the issuer shall submit an amended notice 38.12filing to the commissioner under section 80A.122, subdivision 1, clause (3), together with 38.13a fee of 1/20 of one percent of the maximum aggregate offering price of the additional 38.14shares. Shares for which a fee has been paid, but which have not been sold at the time 38.15of expiration of the notice filing, may not be sold unless an additional fee to cover the 38.16shares has been paid to the commissioner as provided in this section and section 80A.122, 38.17subdivision 4a . If the filing is made in connection with redeemable securities issued by 38.18such a company or trust, there is no maximum fee for securities filings made according to 38.19this paragraph. If the filing is made in connection with any other federal covered security 38.20under Section 18(b)(2) of the Securities Act of 1933, there is an additional fee of one-tenth 38.21of one percent of the maximum aggregate offering price at which the securities are to be 38.22offered in this state, and the combined fees shall not exceed $300. Beginning with fiscal 38.23year 2001 and continuing each fiscal year thereafter, as of the last day of each fiscal year, 38.24the commissioner shall determine the total amount of all fees that were collected under 38.25this paragraph in connection with any filings made for that fiscal year for securities of an 38.26open-end investment company on behalf of a security that is a federal covered security 38.27pursuant to section 18(b)(2) of the Securities Act of 1933. To the extent the total fees 38.28collected by the commissioner in connection with these filings exceed $25,000,000 in a 38.29fiscal year, the commissioner shall refund, on a pro rata basis, to all persons who paid any 38.30fees for that fiscal year, the amount of fees collected by the commissioner in excess of 38.31$25,000,000. No individual refund is required of amounts of $100 or less for a fiscal year. 38.32    Sec. 43. Minnesota Statutes 2006, section 80A.65, subdivision 1, is amended to read: 38.33    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of 38.34$100 for every application for registration or notice filing. There shall be an additional fee 39.1of one-tenth of one percent of the maximum aggregate offering price at which the securities 39.2are to be offered in this state, and the maximum combined fees shall not exceed $300. 39.3    (b) When an application for registration is withdrawn before the effective date 39.4or a preeffective stop order is entered under section 80A.54, all but the $100 filing fee 39.5shall be returned. If an application to register securities is denied, the total of all fees 39.6received shall be retained. 39.7    (c) Where a filing is made in connection with a federal covered security under 39.8section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 39.9If the filing is made in connection with redeemable securities issued by an open end 39.10management company or unit investment trust, as defined in the Investment Company Act 39.11of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate 39.12offering price at which the securities are to be offered in this state during the notice filing 39.13period. The fee must be paid at the time of the initial filing and thereafter in connection 39.14with each renewal no later than July 1 of each year and must be sufficient to cover the 39.15shares the issuer expects to sell in this state over the next 12 months. If during a current 39.16notice filing the issuer determines it is likely to sell shares in excess of the shares for which 39.17fees have been paid to the administrator, the issuer shall submit an amended notice filing 39.18to the administrator under section 80A.50, together with a fee of 1/20 of one percent of the 39.19maximum aggregate offering price of the additional shares. Shares for which a fee has 39.20been paid, but which have not been sold at the time of expiration of the notice filing, may 39.21not be sold unless an additional fee to cover the shares has been paid to the administrator 39.22as provided in this section and section 80A.50. If the filing is made in connection with 39.23redeemable securities issued by such a company or trust, there is no maximum fee for 39.24securities filings made according to this paragraph. If the filing is made in connection 39.25with any other federal covered security under Section 18(b)(2) of the Securities Act of 39.261933, there is an additional fee of one-tenth of one percent of the maximum aggregate 39.27offering price at which the securities are to be offered in this state, and the combined fees 39.28shall not exceed $300. Beginning with fiscal year 2001 and continuing each fiscal year 39.29thereafter, as of the last day of each fiscal year, the administrator shall determine the total 39.30amount of all fees that were collected under this paragraph in connection with any filings 39.31made for that fiscal year for securities of an open-end investment company on behalf of a 39.32security that is a federal covered security pursuant to section 18(b)(2) of the Securities 39.33Act of 1933. To the extent the total fees collected by the administrator in connection 39.34with these filings exceed $25,000,000 in a fiscal year, the administrator shall refund, on 39.35a pro rata basis, to all persons who paid any fees for that fiscal year, the amount of fees 40.1collected by the administrator in excess of $25,000,000. No individual refund is required 40.2of amounts of $100 or less for a fiscal year. 40.3    Sec. 44. Minnesota Statutes 2006, section 82.24, subdivision 1, is amended to read: 40.4    Subdivision 1. Amounts. The following fees shall be paid to the commissioner: 40.5    (a) a fee of $150 for each initial individual broker's license, and a fee of $100 for 40.6each renewal thereof; 40.7    (b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each 40.8renewal thereof; 40.9    (c) a fee of $85 for each initial real estate closing agent license, and a fee of $60 40.10for each renewal thereof; 40.11    (d) a fee of $150 for each initial corporate, limited liability company, or partnership 40.12license, and a fee of $100 for each renewal thereof; 40.13    (e) a fee for payment to the education, research and recovery fund in accordance 40.14with section 82.43; 40.15    (f) a fee of $20 for each transfer; 40.16    (g) a fee of $50 for license reinstatement; and 40.17    (h) a fee of $20 for reactivating a corporate, limited liability company, or partnership 40.18license without land new text begin ; and new text end 40.19     new text begin (i) in addition to the fees required under this subdivision, individual licensees under new text end 40.20 new text begin clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge new text end 40.21 new text begin of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge new text end 40.22 new text begin as permitted under that section new text end . 40.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 40.24    Sec. 45. Minnesota Statutes 2006, section 82.24, subdivision 4, is amended to read: 40.25    Subd. 4. Deposit of fees. Unless otherwise provided by this chapter, all fees 40.26collected under this chapter shall be deposited in the state treasury. new text begin The technology new text end 40.27 new text begin surcharge shall be deposited as required under section 45.24. new text end 40.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 40.29    Sec. 46. Minnesota Statutes 2006, section 82B.09, subdivision 1, is amended to read: 40.30    Subdivision 1. Amounts. new text begin (a) new text end The following fees must be paid to the commissioner: 40.31    (1) $150 for each initial individual real estate appraiser's license; and 40.32    (2) $100 for each renewal. 41.1     new text begin (b) In addition to the fees required under this subdivision, individual real estate new text end 41.2 new text begin appraisers shall pay a technology surcharge of up to $40 under section 45.24, unless the new text end 41.3 new text begin commissioner has adjusted the surcharge as permitted under that section. new text end 41.4 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 41.5    Sec. 47. Minnesota Statutes 2006, section 118A.03, subdivision 2, is amended to read: 41.6    Subd. 2. In lieu of surety bond. The following are the allowable forms of collateral 41.7in lieu of a corporate surety bond: 41.8    (1) United States government Treasury bills, Treasury notes, Treasury bonds; 41.9    (2) issues of United States government agencies and instrumentalities as quoted by a 41.10recognized industry quotation service available to the government entity; 41.11    (3) general obligation securities of any state or local government with taxing powers 41.12which is rated "A" or better by a national bond rating service, or revenue obligation 41.13securities of any state or local government with taxing powers which is rated "AA" or 41.14better by a national bond rating service; 41.15    (4) unrated general obligation securities of a local government with taxing powers 41.16may be pledged as collateral against funds deposited by that same local government entity; 41.17    (5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a 41.18municipality accompanied by written evidence that the bank's public debt is rated "AA" or 41.19better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and 41.20    (6) time deposits that are fully insured by any federal agency. 41.21    Sec. 48. Minnesota Statutes 2006, section 148.102, is amended by adding a subdivision 41.22to read: 41.23     new text begin Subd. 3a. new text end new text begin Reparation obligors. new text end new text begin A reparation obligor as defined in section 65B.43, new text end 41.24 new text begin subdivision 9, may submit any relevant information to the board in any case in which new text end 41.25 new text begin the reparation obligor has reason to believe that charges being billed by a licensee are new text end 41.26 new text begin fraudulent, unreasonable, or inconsistent with treatment actually received by the injured new text end 41.27 new text begin party involved. new text end 41.28     new text begin A reparation obligor that makes a report under this section shall provide the board new text end 41.29 new text begin with any additional information, related to the reported activities, requested by the board. new text end 41.30    Sec. 49. Minnesota Statutes 2006, section 239.101, subdivision 3, is amended to read: 41.31    Subd. 3. Petroleum inspection fee. (a) An inspection fee is imposed (1) on 41.32petroleum products when received by the first licensed distributor, and (2) on petroleum 41.33products received and held for sale or use by any person when the petroleum products 42.1have not previously been received by a licensed distributor. The petroleum inspection 42.2fee is $1 for every 1,000 gallons received. The commissioner of revenue shall collect 42.3the fee. The revenue from 81 cents of the fee is appropriated to the commissioner of 42.4commerce for the cost of operations of the Division of Weights and Measures, petroleum 42.5supply monitoring, and the oil burner retrofit program new text begin to make grants to providers of new text end 42.6 new text begin low-income weatherization services to install renewable energy equipment in households new text end 42.7 new text begin that are eligible for weatherization assistance under Minnesota's weatherization assistance new text end 42.8 new text begin program state plan new text end . The remainder of the fee must be deposited in the general fund. 42.9    (b) The commissioner of revenue shall credit a person for inspection fees previously 42.10paid in error or for any material exported or sold for export from the state upon filing of a 42.11report as prescribed by the commissioner of revenue. 42.12    (c) The commissioner of revenue may collect the inspection fee along with any 42.13taxes due under chapter 296A. 42.14    Sec. 50. new text begin [325E.027] DISCRIMINATION PROHIBITION. new text end 42.15     new text begin (a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil new text end 42.16 new text begin who has signed a low-income home energy assistance program vendor agreement with the new text end 42.17 new text begin department of commerce may refuse to deliver liquid propane gas or number 1 or number new text end 42.18 new text begin 2 fuel oil to any person located within the dealer's or distributor's normal delivery area new text end 42.19 new text begin who receives direct grants under the low-income home energy assistance program if: new text end 42.20     new text begin (1) the person has requested delivery; new text end 42.21     new text begin (2) the dealer or distributor has product available; new text end 42.22     new text begin (3) the person requesting delivery is capable of making full payment at the time of new text end 42.23 new text begin delivery; and new text end 42.24     new text begin (4) the person is not in arrears regarding any previous fuel purchase from that dealer new text end 42.25 new text begin or distributor. new text end 42.26     new text begin (b) A dealer or distributor making delivery to a person receiving direct grants new text end 42.27 new text begin under the low-income home energy assistance program may not charge that person any new text end 42.28 new text begin additional costs or fees that would not be charged to any other customer and must make new text end 42.29 new text begin available to that person any discount program on the same basis as the dealer or distributor new text end 42.30 new text begin makes available to any other customer. new text end 42.31    Sec. 51. Minnesota Statutes 2006, section 325E.311, subdivision 6, is amended to read: 42.32    Subd. 6. Telephone solicitation. "Telephone solicitation" means any voice 42.33communication over a telephone line for the purpose of encouraging the purchase or 42.34rental of, or investment in, property, goods, or services, whether the communication is 43.1made by a live operator, through the use of an automatic dialing-announcing device as 43.2defined in section 325E.26, subdivision 2, or by other means. Telephone solicitation 43.3does not include communications: 43.4    (1) to any residential subscriber with that subscriber's prior express invitation or 43.5permission; or 43.6    (2) by or on behalf of any person or entity with whom a residential subscriber has a 43.7prior or current business or personal relationship. 43.8Telephone solicitation also does not include communications if the caller is identified by a 43.9caller identification service and the call is: 43.10    (i) by or on behalf of an organization that is identified as a nonprofit organization 43.11under state or federal law new text begin , unless the organization is a debt management services provider new text end 43.12 new text begin defined in section 332A.02 new text end ; 43.13    (ii) by a person soliciting without the intent to complete, and who does not in 43.14fact complete, the sales presentation during the call, but who will complete the sales 43.15presentation at a later face-to-face meeting between the solicitor who makes the call 43.16and the prospective purchaser; or 43.17    (iii) by a political party as defined under section 200.02, subdivision 6. 43.18 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 43.19    Sec. 52. Minnesota Statutes 2006, section 325N.01, is amended to read: 43.20325N.01 DEFINITIONS. 43.21    The definitions in paragraphs (a) to (h) apply to sections 325N.01 to 325N.09. 43.22    (a) "Foreclosure consultant" means any person who, directly or indirectly, makes 43.23any solicitation, representation, or offer to any owner to perform for compensation or 43.24who, for compensation, performs any service which the person in any manner represents 43.25will in any manner do any of the following: 43.26    (1) stop or postpone the foreclosure sale; 43.27    (2) obtain any forbearance from any beneficiary or mortgagee; 43.28    (3) assist the owner to exercise the right of reinstatement provided in section 580.30; 43.29    (4) obtain any extension of the period within which the owner may reinstate the 43.30owner's obligation; 43.31    (5) obtain any waiver of an acceleration clause contained in any promissory note or 43.32contract secured by a mortgage on a residence in foreclosure or contained in the mortgage; 43.33    (6) assist the owner in foreclosure or loan default to obtain a loan or advance 43.34of funds; 44.1    (7) avoid or ameliorate the impairment of the owner's credit resulting from the 44.2recording of a notice of default or the conduct of a foreclosure sale; or 44.3    (8) save the owner's residence from foreclosure. 44.4    (b) A foreclosure consultant does not include any of the following: 44.5    (1) a person licensed to practice law in this state when the person renders service 44.6in the course of his or her practice as an attorney-at-law; 44.7    (2) a person licensed as a debt prorater under sections to new text begin management new text end 44.8 new text begin services provider under chapter 332A new text end , when the person is acting as a debt prorater new text begin new text end 44.9 new text begin management services provider new text end as defined in these sections new text begin that chapter new text end ; 44.10    (3) a person licensed as a real estate broker or salesperson under chapter 82 when the 44.11person engages in acts whose performance requires licensure under that chapter unless the 44.12person is engaged in offering services designed to, or purportedly designed to, enable the 44.13owner to retain possession of the residence in foreclosure; 44.14    (4) a person licensed as an accountant under chapter 326A when the person is acting 44.15in any capacity for which the person is licensed under those provisions; 44.16    (5) a person or the person's authorized agent acting under the express authority 44.17or written approval of the Department of Housing and Urban Development or other 44.18department or agency of the United States or this state to provide services; 44.19    (6) a person who holds or is owed an obligation secured by a lien on any residence 44.20in foreclosure when the person performs services in connection with this obligation or lien 44.21if the obligation or lien did not arise as the result of or as part of a proposed foreclosure 44.22reconveyance; 44.23    (7) any person or entity doing business under any law of this state, or of the United 44.24States relating to banks, trust companies, savings and loan associations, industrial loan and 44.25thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee 44.26which is a United States Department of Housing and Urban Development approved 44.27mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or 44.28employee of these persons or entities while engaged in the business of these persons 44.29or entities; 44.30    (8) a person licensed as a residential mortgage originator or servicer pursuant to 44.31chapter 58, when acting under the authority of that license or a foreclosure purchaser as 44.32defined in section 325N.10; 44.33    (9) a nonprofit agency or organization that offers counseling or advice to an owner 44.34of a home in foreclosure or loan default if they do not contract for services with for-profit 44.35lenders or foreclosure purchasers; and 45.1    (10) a judgment creditor of the owner, to the extent that the judgment creditor's claim 45.2accrued prior to the personal service of the foreclosure notice required by section 580.03, 45.3but excluding a person who purchased the claim after such personal service. 45.4    (c) "Foreclosure reconveyance" means a transaction involving: 45.5    (1) the transfer of title to real property by a foreclosed homeowner during a 45.6foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or 45.7by creation of a mortgage or other lien or encumbrance during the foreclosure process 45.8that allows the acquirer to obtain title to the property by redeeming the property as 45.9a junior lienholder; and 45.10    (2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest 45.11back to the foreclosed homeowner by the acquirer or a person acting in participation with 45.12the acquirer that allows the foreclosed homeowner to possess the real property following 45.13the completion of the foreclosure proceeding, which interest includes, but is not limited to, 45.14an interest in a contract for deed, purchase agreement, option to purchase, or lease. 45.15    (d) "Person" means any individual, partnership, corporation, limited liability 45.16company, association, or other group, however organized. 45.17    (e) "Service" means and includes, but is not limited to, any of the following: 45.18    (1) debt, budget, or financial counseling of any type; 45.19    (2) receiving money for the purpose of distributing it to creditors in payment or 45.20partial payment of any obligation secured by a lien on a residence in foreclosure; 45.21    (3) contacting creditors on behalf of an owner of a residence in foreclosure; 45.22    (4) arranging or attempting to arrange for an extension of the period within which 45.23the owner of a residence in foreclosure may cure the owner's default and reinstate his or 45.24her obligation pursuant to section 580.30; 45.25    (5) arranging or attempting to arrange for any delay or postponement of the time of 45.26sale of the residence in foreclosure; 45.27    (6) advising the filing of any document or assisting in any manner in the preparation 45.28of any document for filing with any bankruptcy court; or 45.29    (7) giving any advice, explanation, or instruction to an owner of a residence in 45.30foreclosure, which in any manner relates to the cure of a default in or the reinstatement 45.31of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of 45.32that obligation, or the postponement or avoidance of a sale of a residence in foreclosure, 45.33pursuant to a power of sale contained in any mortgage. 45.34    (f) "Residence in foreclosure" means residential real property consisting of one to 45.35four family dwelling units, one of which the owner occupies as his or her principal place 45.36of residence, and against which there is an outstanding notice of pendency of foreclosure, 46.1recorded pursuant to section 580.032, or against which a summons and complaint has 46.2been served under chapter 581. 46.3    (g) "Owner" means the record owner of the residential real property in foreclosure at 46.4the time the notice of pendency was recorded, or the summons and complaint served. 46.5    (h) "Contract" means any agreement, or any term in any agreement, between 46.6a foreclosure consultant and an owner for the rendition of any service as defined in 46.7paragraph (e). 46.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 46.9    Sec. 53. Minnesota Statutes 2006, section 332.54, subdivision 7, is amended to read: 46.10    Subd. 7. Fees. The fee for a credit services organization's registration is $100 46.11 new text begin $1,000 new text end for issuance or renewal for each location of business. 46.12 new text begin EFFECTIVE DATE; APPLICATION. new text end new text begin This section is effective July 1, 2007, and new text end 46.13 new text begin applies to registrations issued or renewed on or after that date. new text end 46.14    Sec. 54. new text begin [332A.02] DEFINITIONS. new text end 46.15     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin Unless a different meaning is clearly indicated by the context, new text end 46.16 new text begin for the purposes of this chapter the terms defined in this section have the meanings given new text end 46.17 new text begin them. new text end 46.18     new text begin Subd. 2. new text end new text begin Accreditation. new text end new text begin "Accreditation" means certification as an accredited new text end 46.19 new text begin credit counseling provider by the International Standards Organization or the Council on new text end 46.20 new text begin Accreditation. new text end 46.21     new text begin Subd. 3. new text end new text begin Attorney general. new text end new text begin "Attorney general" means the attorney general of the new text end 46.22 new text begin state of Minnesota. new text end 46.23     new text begin Subd. 4. new text end new text begin Commissioner. new text end new text begin "Commissioner" means commissioner of commerce. new text end 46.24     new text begin Subd. 5. new text end new text begin Controlling or affiliated party. new text end new text begin "Controlling or affiliated party" means new text end 46.25 new text begin any person directly or indirectly controlling, controlled by, or under common control new text end 46.26 new text begin with another person. new text end 46.27     new text begin Subd. 6. new text end new text begin Debt management services agreement. new text end new text begin "Debt management services new text end 46.28 new text begin agreement" means the written contract between the debt management services provider new text end 46.29 new text begin and the debtor. new text end 46.30     new text begin Subd. 7. new text end new text begin Debt management services plan. new text end new text begin "Debt management services plan" new text end 46.31 new text begin means the debtor's individualized package of debt management services set forth in the new text end 46.32 new text begin debt management services agreement. new text end 47.1     new text begin Subd. 8. new text end new text begin Debt management services provider. new text end new text begin "Debt management services new text end 47.2 new text begin provider" means any person offering or providing debt management services to a debtor new text end 47.3 new text begin domiciled in this state, regardless of whether or not a fee is charged for the services and new text end 47.4 new text begin regardless of whether the person maintains a physical presence in the state. This term does new text end 47.5 new text begin not include services performed by the following when engaged in the regular course of new text end 47.6 new text begin their respective businesses and professions: new text end 47.7     new text begin (1) attorneys at law, escrow agents, accountants, broker-dealers in securities; new text end 47.8     new text begin (2) state or national banks, trust companies, savings associations, title insurance new text end 47.9 new text begin companies, insurance companies, and all other lending institutions duly authorized to new text end 47.10 new text begin transact business in Minnesota, provided no fee is charged for the service; new text end 47.11     new text begin (3) persons who, as employees on a regular salary or wage of an employer not new text end 47.12 new text begin engaged in the business of debt management, perform credit services for their employer; new text end 47.13     new text begin (4) public officers acting in their official capacities and persons acting as a debt new text end 47.14 new text begin management services provider pursuant to court order; new text end 47.15     new text begin (5) any person while performing services incidental to the dissolution, winding up, new text end 47.16 new text begin or liquidation of a partnership, corporation, or other business enterprise; new text end 47.17     new text begin (6) the state, its political subdivisions, public agencies, and their employees; new text end 47.18     new text begin (7) credit unions and collection agencies, provided no fee is charged for the service; new text end 47.19     new text begin (8) "qualified organizations" designated as representative payees for purposes of the new text end 47.20 new text begin Social Security and Supplemental Security Income Representative Payee System and the new text end 47.21 new text begin federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508; and new text end 47.22     new text begin (9) accelerated mortgage payment providers. "Accelerated mortgage payment new text end 47.23 new text begin providers" are persons who, after satisfying the requirements of sections 332.30 to new text end 47.24 new text begin 332.303, receive funds to make mortgage payments to a lender or lenders, on behalf new text end 47.25 new text begin of mortgagors, in order to exceed regularly scheduled minimum payment obligations new text end 47.26 new text begin under the terms of the indebtedness. The term does not include: (i) persons or entities new text end 47.27 new text begin described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and new text end 47.28 new text begin thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to new text end 47.29 new text begin make loans under section 47.20, subdivision 1. For purposes of this clause and sections new text end 47.30 new text begin 332.30 to 332.303, "lender" means the original lender or that lender's assignee, whichever new text end 47.31 new text begin is the current mortgage holder. new text end 47.32     new text begin Subd. 9. new text end new text begin Debt management services. new text end new text begin "Debt management services" means the new text end 47.33 new text begin provision of any one or more of the following: new text end 47.34     new text begin (1) managing the financial affairs of an individual by distributing income or money new text end 47.35 new text begin to the individual's creditors; new text end 48.1     new text begin (2) receiving funds for the purpose of distributing the funds among creditors in new text end 48.2 new text begin payment or partial payment of obligations of a debtor; or new text end 48.3     new text begin (3) settling, adjusting, prorating, pooling, or liquidating the indebtedness of a debtor. new text end 48.4 new text begin Any person so engaged or holding out as so engaged is deemed to be engaged in the new text end 48.5 new text begin provision of debt management services regardless of whether or not a fee is charged for new text end 48.6 new text begin such services. new text end 48.7     new text begin Subd. 10. new text end new text begin Debtor. new text end new text begin "Debtor" means the person for whom the debt prorating service new text end 48.8 new text begin is performed. new text end 48.9     new text begin Subd. 11. new text end new text begin Person. new text end new text begin "Person" means any individual, firm, partnership, association, new text end 48.10 new text begin or corporation. new text end 48.11     new text begin Subd. 12. new text end new text begin Registrant. new text end new text begin "Registrant" means any person registered by the new text end 48.12 new text begin commissioner pursuant to this chapter and, where used in conjunction with an act or new text end 48.13 new text begin omission required or prohibited by this chapter, shall mean any person performing debt new text end 48.14 new text begin management services. new text end 48.15 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 48.16    Sec. 55. new text begin [332A.03] REQUIREMENT OF REGISTRATION. new text end 48.17     new text begin On or after August 1, 2007, it is unlawful for any person, whether or not located in new text end 48.18 new text begin this state, to operate as a debt management services provider or provide debt management new text end 48.19 new text begin services, including but not limited to offering, advertising, or executing or causing to new text end 48.20 new text begin be executed any debt management services or debt management services agreement, new text end 48.21 new text begin except as authorized by law without first becoming registered as provided in this new text end 48.22 new text begin chapter. A person who possesses a valid license as a debt prorater that was issued by the new text end 48.23 new text begin commissioner before August 1, 2007, is deemed to be registered as a debt management new text end 48.24 new text begin services provider until the date the debt prorater license expires, at which time the licensee new text end 48.25 new text begin must obtain a renewal as a debt management services provider in compliance with this new text end 48.26 new text begin chapter. Debt proraters who were not required to be licensed as debt proraters before new text end 48.27 new text begin August 1, 2007, may continue to provide debt management services without complying new text end 48.28 new text begin with this chapter to those debtors who entered into a contract to participate in a debt new text end 48.29 new text begin management plan before August 1, 2007, except that the debt prorater must comply with new text end 48.30 new text begin section 332A.13, subdivision 2. new text end 48.31 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 48.32    Sec. 56. new text begin [332A.04] REGISTRATION. new text end 49.1     new text begin Subdivision 1. new text end new text begin Form. new text end new text begin Application for registration to operate as a debt management new text end 49.2 new text begin services provider in this state must be made in writing to the commissioner, under oath, in new text end 49.3 new text begin the form prescribed by the commissioner, and must contain: new text end 49.4     new text begin (1) the full name of each principal of the entity applying; new text end 49.5     new text begin (2) the address, which must not be a post office box, and the telephone number and, new text end 49.6 new text begin if applicable, e-mail address, of the applicant; new text end 49.7     new text begin (3) identification of the trust account required under section 332A.13; new text end 49.8     new text begin (4) consent to the jurisdiction of the courts of this state; new text end 49.9     new text begin (5) the name and address of the registered agent authorized to accept service of new text end 49.10 new text begin process on behalf of the applicant or appointment of the commissioner as the applicant's new text end 49.11 new text begin agent for purposes of accepting service of process; new text end 49.12     new text begin (6) disclosure of: new text end 49.13     new text begin (i) whether any controlling or affiliated party has ever been convicted of a crime new text end 49.14 new text begin or found civilly liable for an offense involving moral turpitude, including forgery, new text end 49.15 new text begin embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to new text end 49.16 new text begin defraud, or any other similar offense or violation, or any violation of a federal or state law new text end 49.17 new text begin or regulation in connection with activities relating to the rendition of debt management new text end 49.18 new text begin services or involving any consumer fraud, false advertising, deceptive trade practices, or new text end 49.19 new text begin similar consumer protection law; new text end 49.20     new text begin (ii) any judgments, private or public litigation, tax liens, written complaints, new text end 49.21 new text begin administrative actions, or investigations by any government agency against the applicant new text end 49.22 new text begin or any officer, director, manager, or shareholder owning more than five percent interest new text end 49.23 new text begin in the applicant, unresolved or otherwise, filed or otherwise commenced within the new text end 49.24 new text begin preceding ten years; new text end 49.25     new text begin (iii) whether the applicant or any person employed by the applicant has had a record new text end 49.26 new text begin of having defaulted in the payment of money collected for others, including the discharge new text end 49.27 new text begin of debts through bankruptcy proceedings; and new text end 49.28     new text begin (iv) whether the applicant's license or registration to provide debt management new text end 49.29 new text begin services in any other state has ever been revoked or suspended; new text end 49.30     new text begin (7) a copy of the applicant's standard debt management services agreement that the new text end 49.31 new text begin applicant intends to execute with debtors; new text end 49.32     new text begin (8) proof of accreditation of: new text end 49.33     new text begin (i) the debt management services provider; and new text end 49.34     new text begin (ii) all individuals employed by, under contract with, or otherwise agents of the new text end 49.35 new text begin provider who offer to provide or provide debt management services; and new text end 49.36     new text begin (9) any other information and material as the commissioner may require. new text end 50.1     new text begin Subd. 2. new text end new text begin Term and scope of registration. new text end new text begin The registration must remain in full new text end 50.2 new text begin force and effect for one calendar year or until it is surrendered by the licensee or revoked new text end 50.3 new text begin or suspended by the commissioner. The registration is limited solely to the business new text end 50.4 new text begin of providing debt management services. new text end 50.5     new text begin Subd. 3. new text end new text begin Fees. new text end new text begin The registration application must be accompanied by payment of new text end 50.6 new text begin $1,000 as a registration fee. new text end 50.7     new text begin Subd. 4. new text end new text begin Bond. new text end new text begin The registration application must be accompanied by payment of new text end 50.8 new text begin the premium for a surety bond in which the applicant shall be the obligor, in a sum to be new text end 50.9 new text begin determined by the commissioner but not less than $5,000, and in which an insurance new text end 50.10 new text begin company, which is duly authorized by the state of Minnesota to transact the business of new text end 50.11 new text begin fidelity and surety insurance, shall be a surety. However, the commissioner may accept new text end 50.12 new text begin a deposit in cash, or securities that may legally be purchased by savings banks or for new text end 50.13 new text begin trust funds of an aggregate market value equal to the bond requirement, in lieu of the new text end 50.14 new text begin surety bond. The cash or securities must be deposited with the commissioner of finance. new text end 50.15 new text begin The commissioner may also require a fidelity bond in an appropriate amount covering new text end 50.16 new text begin employees of any applicant. Each branch office or additional place of business of an new text end 50.17 new text begin applicant must be bonded as provided in this subdivision. In determining the bond amount new text end 50.18 new text begin necessary for the maintenance of any office, whether it is a surety bond, fidelity bond, or new text end 50.19 new text begin both, the commissioner shall consider the financial responsibility, experience, character, new text end 50.20 new text begin and general fitness of the debt management services provider and its operators and owners; new text end 50.21 new text begin the volume of business handled or proposed to be handled; the location of the office new text end 50.22 new text begin and the geographical area served or proposed to be served; and other information the new text end 50.23 new text begin commissioner may deem pertinent based upon past performance, previous examinations, new text end 50.24 new text begin annual reports, and manner of business conducted in other states. new text end 50.25     new text begin Subd. 5. new text end new text begin Condition of bond. new text end new text begin The bond must run to the state of Minnesota for the new text end 50.26 new text begin use of the state and of any person or persons who may have a cause of action against the new text end 50.27 new text begin obligor arising out of the obligor's activities as a debt management services provider to new text end 50.28 new text begin a debtor domiciled in this state. The bond must be conditioned that the obligor will not new text end 50.29 new text begin commit any fraudulent act and will faithfully conform to and abide by the provisions of new text end 50.30 new text begin this chapter and of all rules lawfully made by the commissioner under this chapter and new text end 50.31 new text begin pay to the state and to any such person or persons any and all money that may become new text end 50.32 new text begin due or owing to the state or to such person or persons from the obligor under and by new text end 50.33 new text begin virtue of this chapter. new text end 50.34     new text begin Subd. 6. new text end new text begin Right of action on bond. new text end new text begin If the registrant has failed to account to a debtor new text end 50.35 new text begin or distribute to the debtor's creditors the amounts required by this chapter and the debt new text end 50.36 new text begin management services agreement between the debtor and registrant, the debtor or the new text end 51.1 new text begin debtor's legal representative or receiver, the commissioner, or the attorney general, shall new text end 51.2 new text begin have, in addition to all other legal remedies, a right of action in the name of the debtor new text end 51.3 new text begin on the bond or the security given under this section, for loss suffered by the debtor, not new text end 51.4 new text begin exceeding the face amount of the bond or security, and without the necessity of joining new text end 51.5 new text begin the registrant in the suit or action. new text end 51.6     new text begin Subd. 7. new text end new text begin Registrant list. new text end new text begin The commissioner must maintain a list of registered debt new text end 51.7 new text begin management services providers. The list must be made available to the public in written new text end 51.8 new text begin form upon request and on the Department of Commerce Web site. new text end 51.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 51.10    Sec. 57. new text begin [332A.05] NONASSIGNMENT OF REGISTRATION. new text end 51.11     new text begin A registration must not be transferred or assigned without the consent of the new text end 51.12 new text begin commissioner. new text end 51.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 51.14    Sec. 58. new text begin [332A.06] RENEWAL OF REGISTRATION. new text end 51.15     new text begin Each year, each registrant under the provisions of this chapter must, not more than new text end 51.16 new text begin 60 nor less than 30 days before its registration is to expire, apply to the commissioner for new text end 51.17 new text begin renewal of its registration on a form prescribed by the commissioner. The application must new text end 51.18 new text begin be signed by the registrant under penalty of perjury, contain current information on all new text end 51.19 new text begin matters required in the original application, and be accompanied by a payment of $250. new text end 51.20 new text begin The registrant must maintain a continuous surety bond that satisfies the requirements of new text end 51.21 new text begin section 332A.04, subdivision 4, provided that the commissioner may require a different new text end 51.22 new text begin amount that is at least equal to the largest amount that has accrued in the registrant's trust new text end 51.23 new text begin account during the previous year. The renewal is effective for one year. new text end 51.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 51.25    Sec. 59. new text begin [332A.07] OTHER DUTIES OF REGISTRANT. new text end 51.26     new text begin Subdivision 1. new text end new text begin Requirement to update information. new text end new text begin A registrant must update any new text end 51.27 new text begin information required by this chapter provided in its original or renewal application not new text end 51.28 new text begin later than 90 days after the date the events precipitating the update occurred. new text end 51.29     new text begin Subd. 2. new text end new text begin Inspection of debtor of registration. new text end new text begin Each registrant must maintain a new text end 51.30 new text begin copy of its registration in its files. The registrant must allow a debtor, upon request, to new text end 51.31 new text begin inspect the registration. new text end 52.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 52.2    Sec. 60. new text begin [332A.08] DENIAL OF REGISTRATION. new text end 52.3     new text begin The commissioner, with notice to the applicant by certified mail sent to the address new text end 52.4 new text begin listed on the application, may deny an application for a registration upon finding that new text end 52.5 new text begin the applicant: new text end 52.6     new text begin (1) has submitted an application required under section 332A.04 that contains new text end 52.7 new text begin incorrect, misleading, incomplete, or materially untrue information. An application is new text end 52.8 new text begin incomplete if it does not include all the information required in section 332A.04; new text end 52.9     new text begin (2) has failed to pay any fee or pay or maintain any bond required by this chapter, new text end 52.10 new text begin or failed to comply with any order, decision, or finding of the commissioner made under new text end 52.11 new text begin and within the authority of this chapter; new text end 52.12     new text begin (3) has violated any provision of this chapter or any rule or direction lawfully made new text end 52.13 new text begin by the commissioner under and within the authority of this chapter; new text end 52.14     new text begin (4) or any controlling or affiliated party has ever been convicted of a crime or found new text end 52.15 new text begin civilly liable for an offense involving moral turpitude, including forgery, embezzlement, new text end 52.16 new text begin obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any new text end 52.17 new text begin other similar offense or violation, or any violation of a federal or state law or regulation new text end 52.18 new text begin in connection with activities relating to the rendition of debt management services or new text end 52.19 new text begin any consumer fraud, false advertising, deceptive trade practices, or similar consumer new text end 52.20 new text begin protection law; new text end 52.21     new text begin (5) has had a registration or license previously revoked or suspended in this state or new text end 52.22 new text begin any other state or the applicant or licensee has been permanently or temporarily enjoined new text end 52.23 new text begin by any court of competent jurisdiction from engaging in or continuing any conduct or new text end 52.24 new text begin practice involving any aspect of the debt management services provider business; or new text end 52.25 new text begin any controlling or affiliated party has been an officer, director, manager, or shareholder new text end 52.26 new text begin owning more than a ten percent interest in a debt management services provider whose new text end 52.27 new text begin registration has previously been revoked or suspended in this state or any other state, or new text end 52.28 new text begin who has been permanently or temporarily enjoined by any court of competent jurisdiction new text end 52.29 new text begin from engaging in or continuing any conduct or practice involving any aspect of the debt new text end 52.30 new text begin management services provider business; new text end 52.31     new text begin (6) has made any false statement or representation to the commissioner; new text end 52.32     new text begin (7) is insolvent; new text end 52.33     new text begin (8) refuses to fully comply with an investigation or examination of the debt new text end 52.34 new text begin management services provider by the commissioner; new text end 53.1     new text begin (9) has improperly withheld, misappropriated, or converted any money or properties new text end 53.2 new text begin received in the course of doing business; new text end 53.3     new text begin (10) has failed to have a trust account with an actual cash balance equal to or greater new text end 53.4 new text begin than the sum of the escrow balances of each debtor's account; new text end 53.5     new text begin (11) has defaulted in making payments to creditors on behalf of debtors as required new text end 53.6 new text begin by agreements between the provider and debtor; or new text end 53.7     new text begin (12) has used fraudulent, coercive, or dishonest practices, or demonstrated new text end 53.8 new text begin incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere. new text end 53.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 53.10    Sec. 61. new text begin [332A.09] SUSPENDING, REVOKING, OR REFUSING TO RENEW new text end 53.11 new text begin REGISTRATION. new text end 53.12     new text begin Subdivision 1. new text end new text begin Procedure. new text end new text begin The commissioner may revoke, suspend, or refuse new text end 53.13 new text begin to renew any registration issued under this chapter, or may levy a civil penalty under new text end 53.14 new text begin section 45.027, or any combination of actions, if the debt management services provider new text end 53.15 new text begin or any controlling or affiliated person has committed any act or omission for which the new text end 53.16 new text begin commissioner could have refused to issue an initial registration or renew an existing new text end 53.17 new text begin registration. Revocation of or refusal to renew a registration must be upon notice and new text end 53.18 new text begin hearing as prescribed in the Administrative Procedure Act, sections 14.57 to 14.69. The new text end 53.19 new text begin notice must set a time for hearing before the commissioner not less than 20 nor more than new text end 53.20 new text begin 30 days after service of the notice, provided the registrant may waive the 20-day minimum. new text end 53.21 new text begin The commissioner may, in the notice, suspend the registration for a period not to exceed 60 new text end 53.22 new text begin days. Unless the notice states that the registration is suspended, pending the determination new text end 53.23 new text begin of the main issue, the registrant may continue to transact business until the final decision of new text end 53.24 new text begin the commissioner. If the registration is suspended, the commissioner shall hold a hearing new text end 53.25 new text begin and render a final determination within ten days of a request by the registrant. If the new text end 53.26 new text begin commissioner fails to do so, the suspension shall terminate and be of no force or effect. new text end 53.27     new text begin Subd. 2. new text end new text begin Notification of interested persons. new text end new text begin After the notice and hearing required new text end 53.28 new text begin in subdivision 1, upon issuing an order suspending or revoking a registration or refusing to new text end 53.29 new text begin renew a registration, the commissioner may notify all individuals who have contracts with new text end 53.30 new text begin the affected registrant and all creditors who have agreed to a debt management services new text end 53.31 new text begin plan that the registration has been revoked and that the order is subject to appeal. new text end 53.32     new text begin Subd. 3. new text end new text begin Receiver for funds of sanctioned registrant. new text end new text begin When an order is issued new text end 53.33 new text begin revoking or refusing to renew a registration, the commissioner may apply for, and the new text end 53.34 new text begin district court must appoint, a receiver to temporarily or permanently receive the assets of new text end 53.35 new text begin the registrant pending a final determination of the validity of the order. new text end 54.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 54.2    Sec. 62. new text begin [332A.10] WRITTEN DEBT MANAGEMENT SERVICES new text end 54.3 new text begin AGREEMENT. new text end 54.4     new text begin Subdivision 1. new text end new text begin Written agreement required. new text end new text begin A debt management services provider new text end 54.5 new text begin may not perform any debt management services or receive any money related to a debt new text end 54.6 new text begin management plan until the provider has obtained a debt management services agreement new text end 54.7 new text begin that contains all terms of the agreement between the debt management services provider new text end 54.8 new text begin and the debtor. A debt management services agreement must be in writing, dated, and new text end 54.9 new text begin signed by the debt management services provider and the debtor. The registrant must new text end 54.10 new text begin furnish the debtor with a copy of the signed contract upon execution. new text end 54.11     new text begin Subd. 2. new text end new text begin Actions prior to written agreement. new text end new text begin No person may provide debt new text end 54.12 new text begin management services for a debtor unless the person first has: new text end 54.13     new text begin (1) provided the debtor individualized counseling and educational information new text end 54.14 new text begin that, at a minimum, addresses managing household finances, managing credit and debt, new text end 54.15 new text begin budgeting, and personal savings strategies; new text end 54.16     new text begin (2) prepared in writing and provided to the debtor, in a form that the debtor may new text end 54.17 new text begin keep, an individualized financial analysis and a proposed debt management plan listing the new text end 54.18 new text begin debtor's known debts with specific recommendations regarding actions the debtor should new text end 54.19 new text begin take to reduce or eliminate the amount of the debts, including written disclosure that new text end 54.20 new text begin debt management services are not suitable for all debtors and that there are other ways, new text end 54.21 new text begin including bankruptcy, to deal with indebtedness; new text end 54.22     new text begin (3) made a determination supported by an individualized financial analysis that the new text end 54.23 new text begin debtor can reasonably meet the requirements of the proposed debt management plan new text end 54.24 new text begin and that there is a net tangible benefit to the debtor of entering into the proposed debt new text end 54.25 new text begin management plan; and new text end 54.26     new text begin (4) prepared, in a form the debtor may keep, a written list identifying all known new text end 54.27 new text begin creditors of the debtor that the provider reasonably expects to participate in the plan new text end 54.28 new text begin and the creditors, including secured creditors, that the provider reasonably expects not new text end 54.29 new text begin to participate. new text end 54.30     new text begin Subd. 3. new text end new text begin Required terms. new text end new text begin (a) Each debt management services agreement must new text end 54.31 new text begin contain the following terms, which must be disclosed prominently and clearly in bold print new text end 54.32 new text begin on the front page of the agreement, segregated by bold lines from all other information on new text end 54.33 new text begin the page: new text end 54.34     new text begin (1) the fee amount to be paid by the debtor and whether the initial fee amount is new text end 54.35 new text begin refundable or nonrefundable; new text end 55.1     new text begin (2) the monthly fee amount or percentage to be paid by the debtor; and new text end 55.2     new text begin (3) the total amount of fees reasonably anticipated to be paid by the debtor over new text end 55.3 new text begin the term of the agreement. new text end 55.4     new text begin (b) Each debt management services agreement must also contain the following: new text end 55.5     new text begin (1) a disclosure that if the amount of debt owed is increased by interest, late fees, new text end 55.6 new text begin over the limit fees, and other amounts imposed by the creditors, the length of the debt new text end 55.7 new text begin management services agreement will be extended and remain in force and that the total new text end 55.8 new text begin dollar charges agreed upon may increase at the rate agreed upon in the original contract new text end 55.9 new text begin agreement; new text end 55.10     new text begin (2) a prominent statement describing the terms upon which the debtor may cancel new text end 55.11 new text begin the contract as set forth in section 332A.11; new text end 55.12     new text begin (3) a detailed description of all services to be performed by the debt management new text end 55.13 new text begin services provider for the debtor; new text end 55.14     new text begin (4) the debt management services provider's refund policy; and new text end 55.15     new text begin (5) the debt management services provider's principal business address and the name new text end 55.16 new text begin and address of its agent in this state authorized to receive service of process. new text end 55.17     new text begin Subd. 4. new text end new text begin Prohibited terms. new text end new text begin The following terms shall not be included in the debt new text end 55.18 new text begin management services agreement: new text end 55.19     new text begin (1) a hold harmless clause; new text end 55.20     new text begin (2) a confession of judgment, or a power of attorney to confess judgment against the new text end 55.21 new text begin debtor or appear as the debtor in any judicial proceeding; new text end 55.22     new text begin (3) a waiver of the right to a jury trial, if applicable, in any action brought by new text end 55.23 new text begin or against a debtor; new text end 55.24     new text begin (4) an assignment of or an order for payment of wages or other compensation for new text end 55.25 new text begin services; new text end 55.26     new text begin (5) a provision in which the debtor agrees not to assert any claim or defense arising new text end 55.27 new text begin out of the debt management services agreement; new text end 55.28     new text begin (6) a waiver of any provision of this chapter or a release of any obligation required new text end 55.29 new text begin to be performed on the part of the debt management services provider; or new text end 55.30     new text begin (7) a mandatory arbitration clause. new text end 55.31     new text begin Subd. 5. new text end new text begin New debt management services agreements; modification of existing new text end 55.32 new text begin agreements. new text end new text begin (a) Separate and additional debt management services agreements that new text end 55.33 new text begin comply with this chapter may be entered into by the debt management services provider new text end 55.34 new text begin and the debtor provided that no additional initial fee may be charged by the debt new text end 55.35 new text begin management services provider. new text end 56.1     new text begin (b) Any modification of an existing debt management services agreement, including new text end 56.2 new text begin any increase in the number or amount of debts included in the debt management service, new text end 56.3 new text begin must be in writing and signed by both parties. No fees, charges, or other consideration new text end 56.4 new text begin may be demanded from the debtor for the modification, other than an increase in the new text end 56.5 new text begin amount of the monthly maintenance fee established in the original debt management new text end 56.6 new text begin services agreement. new text end 56.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 56.8    Sec. 63. new text begin [332A.11] RIGHT TO CANCEL. new text end 56.9     new text begin Subdivision 1. new text end new text begin Debtor's right to cancel. new text end new text begin A debtor has the right to cancel the debt new text end 56.10 new text begin management services agreement without cause at any time upon ten days' written notice to new text end 56.11 new text begin the debt management services provider. In the event of cancellation, the debt management new text end 56.12 new text begin services provider must, within ten days of the cancellation, notify the debtor's creditors of new text end 56.13 new text begin the cancellation and provide a refund of all unexpended funds paid by or for the debtor to new text end 56.14 new text begin the debt management services provider. new text end 56.15     new text begin Subd. 2. new text end new text begin Notice of debtor's right to cancel. new text end new text begin A debt management services new text end 56.16 new text begin agreement must contain, on its face, in an easily readable typeface immediately adjacent new text end 56.17 new text begin to the space for signature by the debtor, the following notice: "Right To Cancel: You have new text end 56.18 new text begin the right to cancel this contract at any time on ten days' written notice." new text end 56.19     new text begin Subd. 3. new text end new text begin Automatic termination. new text end new text begin Upon the payment of all listed debts and new text end 56.20 new text begin fees, the debt management services agreement must automatically terminate, and all new text end 56.21 new text begin unexpended funds paid by or for the debtor to the debt management services provider new text end 56.22 new text begin must be immediately returned to the debtor. new text end 56.23     new text begin Subd. 4. new text end new text begin Debt management services provider's right to cancel. new text end new text begin A debt new text end 56.24 new text begin management services provider may cancel a debt management services agreement new text end 56.25 new text begin with good cause upon 30 days' written notice to the debtor. Within ten days after the new text end 56.26 new text begin cancellation, the debt management services provider must: (1) notify the debtor's creditors new text end 56.27 new text begin of the cancellation; and (2) return to the debtor all unexpended funds paid by or for the new text end 56.28 new text begin debtor. new text end 56.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 56.30    Sec. 64. new text begin [332A.12] BOOKS, RECORDS, AND INFORMATION. new text end 56.31     new text begin Subdivision 1. new text end new text begin Records retention. new text end new text begin Every registrant must keep, and use in the new text end 56.32 new text begin registrant's business, such books, accounts, and records, including electronic records, as new text end 56.33 new text begin will enable the commissioner to determine whether the registrant is complying with this new text end 57.1 new text begin chapter and of the rules, orders, and directives adopted by the commissioner under this new text end 57.2 new text begin chapter. Every registrant must preserve such books, accounts, and records for at least six new text end 57.3 new text begin years after making the final entry on any transaction recorded therein. Examinations of new text end 57.4 new text begin the books, records, and method of operations conducted under the supervision of the new text end 57.5 new text begin commissioner shall be done at the cost of the registrant. The cost must be assessed as new text end 57.6 new text begin determined under section 46.131. new text end 57.7     new text begin Subd. 2. new text end new text begin Statements to debtors. new text end new text begin Each registrant must maintain and must make new text end 57.8 new text begin available records and accounts that will enable each debtor to ascertain the amounts new text end 57.9 new text begin paid to the creditors of the debtor. A statement showing amounts received from the new text end 57.10 new text begin debtor, disbursements to each creditor, amounts which any creditor has agreed to accept new text end 57.11 new text begin as payment in full for any debt owed the creditor by the debtor, charges deducted by new text end 57.12 new text begin the registrant, and such other information as the commissioner may prescribe, must be new text end 57.13 new text begin furnished by the registrant to the debtor at least monthly and, in addition, upon any new text end 57.14 new text begin cancellation or termination of the contract. In addition to the statements required by this new text end 57.15 new text begin subdivision, each debtor must have reasonable access, without cost, by electronic or other new text end 57.16 new text begin means, to information in the registrant's files applicable to the debtor. These statements, new text end 57.17 new text begin records, and accounts must otherwise remain confidential except for duly authorized state new text end 57.18 new text begin and government officials, the commissioner, the attorney general, the debtor, and the new text end 57.19 new text begin debtor's representative and designees. Each registrant must prepare and retain in the file of new text end 57.20 new text begin each debtor a written analysis of the debtor's income and expenses to substantiate that the new text end 57.21 new text begin plan of payment is feasible and practicable. new text end 57.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 57.23    Sec. 65. new text begin [332A.13] FEES, PAYMENTS, AND CONSENT OF CREDITORS. new text end 57.24     new text begin Subdivision 1. new text end new text begin Origination fee; credit background report cost. new text end new text begin The registrant new text end 57.25 new text begin may charge a nonrefundable origination fee of not more than $50, which may be retained new text end 57.26 new text begin by the registrant from the initial amount paid by the debtor to the registrant. new text end 57.27     new text begin Subd. 2. new text end new text begin Monthly maintenance fee. new text end new text begin The registrant may charge a periodic fee for new text end 57.28 new text begin account maintenance or other purposes, but only if the fee is reasonable for the services new text end 57.29 new text begin provided and does exceed the lesser of 15 percent of the monthly payment amount or $75. new text end 57.30     new text begin Subd. 3. new text end new text begin Additional fees unauthorized. new text end new text begin A registrant may not impose any fee or new text end 57.31 new text begin other charge or receive any funds or other payment other than the initial fee or monthly new text end 57.32 new text begin maintenance fee authorized by this section. new text end 57.33     new text begin Subd. 4. new text end new text begin Amount of periodic payments retained. new text end new text begin The registrant may retain as new text end 57.34 new text begin payment for the fees authorized by this section no more than 15 percent of any periodic new text end 57.35 new text begin payment made to the registrant by the debtor. The remaining 85 percent must be disbursed new text end 58.1 new text begin to listed creditors under and in accordance with the debt management services agreement. new text end 58.2 new text begin No fees or charges may be received or retained by the registrant for any handling of new text end 58.3 new text begin recurring payments. Recurring payments include current rent, mortgage, utility, telephone, new text end 58.4 new text begin maintenance as defined in section 518.27, child support, insurance premiums, and such new text end 58.5 new text begin other payments as the commissioner may by rule prescribe. new text end 58.6     new text begin Subd. 5. new text end new text begin Advance payments. new text end new text begin No fees or charges may be received or retained for new text end 58.7 new text begin any payments by the debtor made more than the following number of days in advance new text end 58.8 new text begin of the date specified in the debt management services agreement on which they are due: new text end 58.9 new text begin (1) 42 days in the case of contracts requiring monthly payments; (2) 15 days in the case new text end 58.10 new text begin of agreements requiring biweekly payments; or (3) seven days in the case of agreements new text end 58.11 new text begin requiring weekly payments. For those agreements which do not require payments in new text end 58.12 new text begin specified amounts, a payment is deemed an advance payment to the extent it exceeds new text end 58.13 new text begin twice the average regular payment previously made by the debtor under that contract. This new text end 58.14 new text begin subdivision does not apply when the debtor intends to use the advance payments to satisfy new text end 58.15 new text begin future payment of obligations due within 30 days under the contract. This subdivision new text end 58.16 new text begin supersedes any inconsistent provision of this chapter. new text end 58.17     new text begin Subd. 6. new text end new text begin Consent of creditors. new text end new text begin A registrant must actively seek to obtain the consent new text end 58.18 new text begin of all creditors to the debt management services plan set forth in the debt management new text end 58.19 new text begin services agreement. Consent by a creditor may be express and in writing, or may be new text end 58.20 new text begin evidenced by acceptance of a payment made under the debt management services plan new text end 58.21 new text begin set forth in the contract. The registrant must notify the debtor within ten days after any new text end 58.22 new text begin failure to obtain the required consent and of the debtor's right to cancel without penalty. new text end 58.23 new text begin The notice must be in a form as the commissioner shall prescribe. Nothing contained in new text end 58.24 new text begin this section is deemed to require the return of any origination fee and any fees earned by new text end 58.25 new text begin the registrant prior to cancellation or default. new text end 58.26     new text begin Subd. 7. new text end new text begin Withdrawal of creditor. new text end new text begin Whenever a creditor withdraws from a debt new text end 58.27 new text begin management services plan, or refuses to participate in a debt management services plan, new text end 58.28 new text begin the registrant must promptly notify the debtor of the withdrawal or refusal. In no case new text end 58.29 new text begin may this notice be provided more than 15 days after the debt management services plan new text end 58.30 new text begin learns of the creditor's decision to withdraw from or refuse to participate in a plan. This new text end 58.31 new text begin notice must include the identity of the creditor withdrawing from the plan, the amount of new text end 58.32 new text begin the monthly payment to that creditor, and the right of the debtor to cancel the agreement new text end 58.33 new text begin under section 332A.11. new text end 58.34     new text begin Subd. 8. new text end new text begin Payments held in trust. new text end new text begin The registrant must maintain a separate trust new text end 58.35 new text begin account and deposit in the account all payments received from the moment that they are new text end 58.36 new text begin received, except that the registrant may commingle the payment with the registrant's new text end 59.1 new text begin own property or funds, but only to the extent necessary to ensure the maintenance of a new text end 59.2 new text begin minimum balance if the financial institution at which the trust account is held requires new text end 59.3 new text begin a minimum balance to avoid the assessment of fees or penalties for failure to maintain new text end 59.4 new text begin a minimum balance. All disbursements, whether to the debtor or to the creditors of the new text end 59.5 new text begin debtor, or to the registrant, must be made from such account. new text end 59.6     new text begin Subd. 9. new text end new text begin Timely payment of creditors. new text end new text begin The registrant must disburse any funds new text end 59.7 new text begin paid by or on behalf of a debtor to creditors of the consumer within 42 days after receipt new text end 59.8 new text begin of the funds, or earlier if necessary to comply with the due date in the contract between new text end 59.9 new text begin the debtor and the creditor, unless the reasonable payment of one or more of the debtor's new text end 59.10 new text begin obligations requires that the funds be held for a longer period so as to accumulate a sum new text end 59.11 new text begin certain, or where the debtor's payment is returned for insufficient funds or other reason new text end 59.12 new text begin that makes the withholding of such payments in the net interest of the debtor. new text end 59.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 59.14    Sec. 66. new text begin [332A.14] PROHIBITIONS. new text end 59.15     new text begin A registrant shall not: new text end 59.16     new text begin (1) purchase from a creditor any obligation of a debtor; new text end 59.17     new text begin (2) use, threaten to use, seek to have used, or seek to have threatened the use of any new text end 59.18 new text begin legal process, including but not limited to garnishment and repossession of personal new text end 59.19 new text begin property, against any debtor while the debt management services agreement between the new text end 59.20 new text begin registrant and the debtor remains executory; new text end 59.21     new text begin (3) advise a debtor to stop paying a creditor until a debt management services plan is new text end 59.22 new text begin in place; new text end 59.23     new text begin (4) require as a condition of performing debt management services the purchase of new text end 59.24 new text begin any services, stock, insurance, commodity, or other property or any interest therein either new text end 59.25 new text begin by the debtor or the registrant; new text end 59.26     new text begin (5) compromise any debts unless the prior written approval of the debtor has been new text end 59.27 new text begin obtained to such compromise and unless such compromise inures solely to the benefit new text end 59.28 new text begin of the debtor; new text end 59.29     new text begin (6) receive from any debtor as security or in payment of any fee a promissory note new text end 59.30 new text begin or other promise to pay or any mortgage or other security, whether as to real or personal new text end 59.31 new text begin property; new text end 59.32     new text begin (7) lend money or provide credit to any debtor if any interest or fee is charged, new text end 59.33 new text begin or directly or indirectly collect any fee for referring, advising, procuring, arranging, or new text end 59.34 new text begin assisting a consumer in obtaining any extension of credit or other debtor service from a new text end 59.35 new text begin lender or services provider; new text end 60.1     new text begin (8) structure a debt management services agreement that would result in negative new text end 60.2 new text begin amortization of any debt in the plan; new text end 60.3     new text begin (9) engage in any unfair, deceptive, or unconscionable act or practice in connection new text end 60.4 new text begin with any service provided to any debtor; new text end 60.5     new text begin (10) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or other new text end 60.6 new text begin compensation to any person for referring any prospective customer to the registrant or for new text end 60.7 new text begin enrolling a debtor in a debt management services plan, or provide any other incentives new text end 60.8 new text begin for employees or agents of the debt management services provider to induce debtors to new text end 60.9 new text begin enter into a debt management plan; new text end 60.10     new text begin (11) receive any cash, fee, gift, bonus, premium, reward, or other compensation new text end 60.11 new text begin from any person other than the debtor or a person on the debtor's behalf in connection new text end 60.12 new text begin with activities as a registrant, provided that this paragraph does not apply to a registrant new text end 60.13 new text begin which is a bona fide nonprofit corporation duly organized under chapter 317A or under new text end 60.14 new text begin the similar laws of another state; new text end 60.15     new text begin (12) enter into a contract with a debtor unless a thorough written budget analysis new text end 60.16 new text begin indicates that the debtor can reasonably meet the requirements of the financial adjustment new text end 60.17 new text begin plan and will be benefited by the plan; new text end 60.18     new text begin (13) in any way charge or purport to charge or provide any debtor credit insurance in new text end 60.19 new text begin conjunction with any contract or agreement involved in the debt management services new text end 60.20 new text begin plan; new text end 60.21     new text begin (14) operate or employ a person who is an employee or owner of a collection agency new text end 60.22 new text begin or process-serving business; or new text end 60.23     new text begin (15) require or attempt to require payment of a sum that the registrant states, new text end 60.24 new text begin discloses, or advertises to be a voluntary contribution from the debtor. new text end 60.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 60.26    Sec. 67. new text begin [332A.16] ADVERTISEMENT OF DEBT MANAGEMENT SERVICES new text end 60.27 new text begin PLANS. new text end 60.28     new text begin No debt management services provider may make false, deceptive, or misleading new text end 60.29 new text begin statements or omissions about the rates, terms, or conditions of an actual or proposed new text end 60.30 new text begin debt management services plan or its debt management services, or create the likelihood new text end 60.31 new text begin of consumer confusion or misunderstanding regarding its services, including but not new text end 60.32 new text begin limited to the following: new text end 60.33     new text begin (1) represent that the debt management services provider is a nonprofit, not-for-profit, new text end 60.34 new text begin or has similar status or characteristics if some or all of the debt management services will new text end 61.1 new text begin be provided by a for-profit company that is a controlling or affiliated party to the debt new text end 61.2 new text begin management services provider; or new text end 61.3     new text begin (2) make any communication that gives the impression that the debt management new text end 61.4 new text begin services provider is acting on behalf of a government agency. new text end 61.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 61.6    Sec. 68. new text begin [332A.17] DEBT MANAGEMENT SERVICES AGREEMENT new text end 61.7 new text begin RESCISSION. new text end 61.8     new text begin Any debtor has the right to rescind any debt management services agreement with new text end 61.9 new text begin a debt management services provider that commits a material violation of this chapter. new text end 61.10 new text begin On rescission, all fees paid to the debt management services provider or any other person new text end 61.11 new text begin other than creditors of the debtor must be returned to the debtor entering into the debt new text end 61.12 new text begin management services agreement within ten days of rescission of the debt management new text end 61.13 new text begin services agreement. new text end 61.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 61.15    Sec. 69. new text begin [332A.18] ENFORCEMENT; REMEDIES. new text end 61.16     new text begin Subdivision 1. new text end new text begin Violation a deceptive practice. new text end new text begin A violation of any of the provisions new text end 61.17 new text begin of this chapter is considered an unfair or deceptive trade practice under section 8.31, new text end 61.18 new text begin subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in new text end 61.19 new text begin the public interest. new text end 61.20     new text begin Subd. 2. new text end new text begin Private right of action. new text end new text begin (a) A debt management services provider who new text end 61.21 new text begin fails to comply with any of the provisions of this chapter is liable under this section in new text end 61.22 new text begin an individual action for the sum of: (i) actual, incidental, and consequential damages new text end 61.23 new text begin sustained by the debtor as a result of the failure; and (ii) statutory damages of up to $1,000. new text end 61.24     new text begin (b) A debt management services provider who fails to comply with any of the new text end 61.25 new text begin provisions of this chapter is liable under this section in a class action for the sum of: (i) the new text end 61.26 new text begin amount that each named plaintiff could recover under paragraph (a), clause (i); and (ii) new text end 61.27 new text begin such amount as the court may allow for all other class members. new text end 61.28     new text begin (c) In determining the amount of statutory damages, the court shall consider, among new text end 61.29 new text begin other relevant factors: new text end 61.30     new text begin (1) the frequency, nature, and persistence of noncompliance; new text end 61.31     new text begin (2) the extent to which the noncompliance was intentional; and new text end 61.32     new text begin (3) in the case of a class action, the number of debtors adversely affected. new text end 62.1     new text begin (d) A plaintiff or class successful in a legal or equitable action under this section is new text end 62.2 new text begin entitled to the costs of the action, plus reasonable attorney fees. new text end 62.3     new text begin Subd. 3. new text end new text begin Injunctive relief. new text end new text begin A debtor may sue a debt management services provider new text end 62.4 new text begin for temporary or permanent injunctive or other appropriate equitable relief to prevent new text end 62.5 new text begin violations of any provision of this chapter. A court must grant injunctive relief on a new text end 62.6 new text begin showing that the debt management services provider has violated any provision of this new text end 62.7 new text begin chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to new text end 62.8 new text begin prevail on allegations that the debt management services provider violated any provision new text end 62.9 new text begin of this chapter. new text end 62.10     new text begin Subd. 4. new text end new text begin Remedies cumulative. new text end new text begin The remedies provided in this section are new text end 62.11 new text begin cumulative and do not restrict any remedy that is otherwise available. The provisions new text end 62.12 new text begin of this chapter are not exclusive and are in addition to any other requirements, rights, new text end 62.13 new text begin remedies, and penalties provided by law. new text end 62.14     new text begin Subd. 5. new text end new text begin Public enforcement. new text end new text begin The attorney general shall enforce this chapter new text end 62.15 new text begin under section 8.31. new text end 62.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 62.17    Sec. 70. new text begin [332A.19] INVESTIGATION. new text end 62.18     new text begin The commissioner may examine the books and records of every registrant and of new text end 62.19 new text begin any person engaged in the business of providing debt management services as defined in new text end 62.20 new text begin section 332A.02 at any reasonable time. The commissioner once during any calendar year new text end 62.21 new text begin may require the submission of an audit prepared by a certified public accountant of the new text end 62.22 new text begin books and records of each registrant. If the registrant has, within one year previous to the new text end 62.23 new text begin commissioner's demand, had an audit prepared for some other purpose, this audit may be new text end 62.24 new text begin submitted to satisfy the requirement of this section. The commissioner may investigate new text end 62.25 new text begin any complaint concerning violations of this chapter and may require the attendance and new text end 62.26 new text begin sworn testimony of witnesses and the production of documents. new text end 62.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2008. new text end 62.28    Sec. 71. new text begin LICENSE RENEWAL EXTENSION. new text end 62.29     new text begin The July 31, 2007, renewal date for mortgage originators is extended to October 30, new text end 62.30 new text begin 2007, because of the changes to the licensing requirements made by this article. new text end 62.31    Sec. 72. new text begin REPEALER. new text end 63.1 new text begin (a) new text end new text begin Minnesota Statutes 2006, sections 46.043; 47.62, subdivision 5; and 58.08, new text end 63.2 new text begin subdivision 1, new text end new text begin are repealed. new text end 63.3 new text begin (b) new text end new text begin Minnesota Statutes 2006, sections 332.12; 332.13; 332.14; 332.15; 332.16; new text end 63.4 new text begin 332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 332.23; 332.24; 332.25; 332.26; 332.27; new text end 63.5 new text begin 332.28; and 332.29, new text end new text begin are repealed effective January 1, 2008. new text end 63.6ARTICLE 3 63.7ENERGY 63.8    Section 1. new text begin [1.1499] STATE ENERGY CITY. new text end 63.9     new text begin The city of Elk River is designated as the state energy city. new text end 63.10    Sec. 2. new text begin [16C.141] EMPLOYEE SUGGESTIONS; ENERGY SAVINGS new text end 63.11 new text begin INCENTIVE PROGRAM. new text end 63.12     new text begin Subdivision 1. new text end new text begin Creation of program. new text end new text begin The commissioner of administration must new text end 63.13 new text begin implement a program using best practices and develop policies under which state new text end 63.14 new text begin employees may receive cash awards for making suggestions that result in documented cost new text end 63.15 new text begin savings to state agencies from reduced energy usage in state-owned buildings. The cash new text end 63.16 new text begin awards must be an amount equal to half the amount of the energy costs saved by agencies new text end 63.17 new text begin in the year immediately following the implementation of the employee suggestion, up to new text end 63.18 new text begin $1,000 per suggestion. The program must include methods for documenting submission new text end 63.19 new text begin of suggestions and for documenting savings achieved as a result of these suggestions. new text end 63.20     new text begin Subd. 2. new text end new text begin Funding. new text end new text begin To the extent necessary to fund the program under this section, new text end 63.21 new text begin the commissioner of administration, with approval of the commissioner of finance, may new text end 63.22 new text begin transfer a portion of the documented cost savings resulting from a suggestion under this new text end 63.23 new text begin section from the general services revolving fund to an energy savings reward account. new text end 63.24 new text begin Money in the energy savings reward account is appropriated to the commissioner for new text end 63.25 new text begin purposes of making cash rewards and paying the commissioner's incentive program new text end 63.26 new text begin developments costs and administrative expenses under this section. new text end 63.27     new text begin Subd. 3. new text end new text begin Report to legislature. new text end new text begin The commissioner of administration shall report to new text end 63.28 new text begin the chairs of the senate and house of representatives committees with jurisdiction over new text end 63.29 new text begin energy policy by January 1, 2008, on the development of the incentive program, and new text end 63.30 new text begin by January 15 each year thereafter on the implementation of this section, including the new text end 63.31 new text begin ideas submitted and energy savings realized. new text end 63.32     new text begin Subd. 4. new text end new text begin Minnesota State Colleges and Universities. new text end new text begin This section does not apply to new text end 63.33 new text begin the Minnesota State Colleges and Universities, except to the extent the Board of Trustees new text end 63.34 new text begin of the Minnesota State Colleges and Universities provides that the section does apply. new text end 64.1     new text begin Subd. 5. new text end new text begin Repeal. new text end new text begin This section is repealed July 1, 2009. new text end 64.2    Sec. 3. Minnesota Statutes 2006, section 116C.779, subdivision 2, is amended to read: 64.3    Subd. 2. Renewable energy production incentive. (a) Until January 1, 2018, up to 64.4$10,900,000 new text begin $11,400,000 new text end annually must be allocated from available funds in the account 64.5to fund renewable energy production incentives. $9,400,000 of this annual amount is for 64.6incentives for up to 200 megawatts of electricity generated by wind energy conversion 64.7systems that are eligible for the incentives under section 216C.41. The balance of this 64.8amount, Up to $1,500,000 new text begin $1,000,000 new text end annually, may be used for production incentives for 64.9on-farm biogas recovery facilities new text begin and landfill gas recovery facilities new text end that are eligible for 64.10the incentive under section 216C.41 or for production incentives for other renewables, to 64.11be provided in the same manner as under section 216C.41. new text begin Of this amount, no more than new text end 64.12 new text begin $500,000 may be used for production incentives for landfill gas recovery facilities. Up new text end 64.13 new text begin to $1,000,000 may be used for grants for qualified on-farm biogas recovery facilities as new text end 64.14 new text begin provided in section 216C.42. new text end Any portion of the $10,900,000 new text begin $11,400,000 new text end not expended 64.15in any calendar year for the incentive is available for other spending purposes under this 64.16section. This subdivision does not create an obligation to contribute funds to the account. 64.17    (b) The Department of Commerce shall determine eligibility of projects under 64.18section 216C.41 for the purposes of this subdivision. At least quarterly, the Department of 64.19Commerce shall notify the public utility of the name and address of each eligible project 64.20owner and the amount due to each project under section 216C.41. The public utility shall 64.21make payments within 15 working days after receipt of notification of payments due. 64.22    Sec. 4. Minnesota Statutes 2006, section 216B.241, subdivision 6, is amended to read: 64.23    Subd. 6. Renewable energy research. (a) A public utility that owns a nuclear 64.24generation facility in the state shall spend five percent of the total amount that utility 64.25is required to spend under this section to support basic and applied research and 64.26demonstration activities at the University of Minnesota Initiative for Renewable Energy 64.27and the Environment for the development of renewable energy sources and technologies. 64.28The utility shall transfer the required amount to the University of Minnesota on or before 64.29July 1 of each year and that annual amount shall be deducted from the amount of money the 64.30utility is required to spend under this section. The University of Minnesota shall transfer 64.31at least ten percent of these funds to at least one rural campus or experiment station. 64.32    (b) Research new text begin Activities new text end funded under this subdivision shall new text begin may new text end include new text begin , but are new text end 64.33 new text begin not limited to new text end : 65.1    (1) development of environmentally sound production, distribution, and use of 65.2energy, chemicals, and materials from renewable sources; 65.3    (2) processing and utilization of agricultural and forestry plant products and other 65.4bio-based, renewable sources as a substitute for fossil-fuel-based energy, chemicals, and 65.5materials using a variety of means including biocatalysis, biorefining, and fermentation; 65.6    (3) conversion of state wind resources to hydrogen for energy storage and 65.7transportation to areas of energy demand; 65.8    (4) improvements in scalable hydrogen fuel cell technologies; and 65.9    (5) production of hydrogen from bio-based, renewable sources; and sequestration 65.10of carbon. 65.11     new text begin (1) environmentally sound production of energy from a renewable energy source new text end 65.12 new text begin including biomass; new text end 65.13     new text begin (2) environmentally sound production of hydrogen from biomass and any other new text end 65.14 new text begin renewable energy source for energy storage and energy utilization; new text end 65.15     new text begin (3) development of energy conservation and efficient energy utilization technologies; new text end 65.16     new text begin (4) energy storage technologies; and new text end 65.17     new text begin (5) analysis of policy options to facilitate adoption of technologies that use or new text end 65.18 new text begin produce a renewable energy source. new text end 65.19    (c) Notwithstanding other law to the contrary, the utility may, but is not required to, 65.20spend more than two percent of its gross operating revenues from service provided in this 65.21state under this section or section 216B.2411. 65.22    (d) new text begin For the purposes of this subdivision: new text end 65.23     new text begin (1) "renewable energy source: means hydro, wind, solar, biomass and geothermal new text end 65.24 new text begin energy, and microorganisms used as an energy source; and new text end 65.25     new text begin (2) "biomass" means plant and animal material, agricultural and forest residues, new text end 65.26 new text begin mixed municipal solid waste, and sludge from wastewater treatment. new text end 65.27     new text begin (e) new text end This subdivision expires June 30, 2008 new text begin 2010 new text end . 65.28    Sec. 5. Minnesota Statutes 2006, section 216B.812, subdivision 1, is amended to read: 65.29    Subdivision 1. Early purchase and deployment of new text begin renewable new text end hydrogen, fuel 65.30cells, and related technologies by the state. (a) The Department of Commerce new text begin , new text end in 65.31conjunction new text begin coordination new text end with the Department of Administration new text begin and the Pollution Control new text end 65.32 new text begin Agency, new text end shall identify opportunities for demonstrating the use of new text begin deploying renewable new text end 65.33hydrogen, fuel cells, and related technologies within state-owned facilities, vehicle fleets, 65.34and operations new text begin in ways that demonstrate their commercial performance and economics new text end . 66.1    (b) The Department of Commerce shall recommend to the Department of 66.2Administration, when feasible, the purchase and demonstration new text begin deployment new text end of hydrogen, 66.3fuel cells, and related technologies new text begin , when feasible, new text end in ways that strategically contribute 66.4to realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109, and 66.5which contribute to the following nonexclusive list of objectives: 66.6    (1) provide needed performance data to the marketplace; 66.7    (2) identify code and regulatory issues to be resolved; 66.8    (3) foster economic development and job creation in the state; 66.9    (4) raise public awareness of new text begin renewable new text end hydrogen, fuel cells, and related 66.10technologies; or 66.11    (5) reduce emissions of carbon dioxide and other pollutants. 66.12     new text begin (c) The Department of Commerce and the Pollution Control Agency shall also new text end 66.13 new text begin recommend to the Department of Administration changes to the state's procurement new text end 66.14 new text begin guidelines and contracts in order to facilitate the purchase and deployment of cost-effective new text end 66.15 new text begin renewable hydrogen, fuel cells, and related technologies by all levels of government. new text end 66.16    Sec. 6. Minnesota Statutes 2006, section 216B.812, subdivision 2, is amended to read: 66.17    Subd. 2. Pilot projects. (a) In consultation with appropriate representatives from 66.18state agencies, local governments, universities, businesses, and other interested parties, 66.19the Department of Commerce shall report back to the legislature by November 1, 2005, 66.20and every two years thereafter, with a slate of proposed pilot projects that contribute to 66.21realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109. The 66.22Department of Commerce must consider the following nonexclusive list of priorities in 66.23developing the proposed slate of pilot projects: 66.24    (1) demonstrate new text begin deploy new text end "bridge" technologies such as hybrid-electric, off-road, and 66.25fleet vehicles running on hydrogen or fuels blended with hydrogen; 66.26    (2) develop new text begin lead to new text end cost-competitive, on-site new text begin renewable new text end hydrogen production 66.27technologies; 66.28    (3) demonstrate nonvehicle applications for hydrogen; 66.29    (4) improve the cost and efficiency of hydrogen from renewable energy sources; and 66.30    (5) improve the cost and efficiency of hydrogen production using direct solar energy 66.31without electricity generation as an intermediate step. 66.32    (b) For all demonstrations new text begin deployment projects that do not involve a demonstration new text end 66.33 new text begin component new text end , individual system components of the technology must new text begin should, if feasible, new text end meet 66.34commercial performance standards and systems modeling must be completed to predict 67.1commercial performance, risk, and synergies. In addition, the proposed pilots should meet 67.2as many of the following criteria as possible: 67.3    (1) advance energy security; 67.4    (2) capitalize on the state's native resources; 67.5    (3) result in economically competitive infrastructure being put in place; 67.6    (4) be located where it will link well with existing and related projects and be 67.7accessible to the public, now or in the future; 67.8    (5) demonstrate multiple, integrated aspects of new text begin renewable new text end hydrogen infrastructure; 67.9    (6) include an explicit public education and awareness component; 67.10    (7) be scalable to respond to changing circumstances and market demands; 67.11    (8) draw on firms and expertise within the state where possible; 67.12    (9) include an assessment of its economic, environmental, and social impact; and 67.13    (10) serve other needs beyond hydrogen development. 67.14    Sec. 7. new text begin [216B.813] MINNESOTA RENEWABLE HYDROGEN INITIATIVE. new text end 67.15     new text begin Subdivision 1. new text end new text begin Road map. new text end new text begin The Department of Commerce shall coordinate and new text end 67.16 new text begin administer directly or by contract the Minnesota renewable hydrogen initiative. If the new text end 67.17 new text begin department decides to contract for its duties under this section, it must contract with a new text end 67.18 new text begin nonpartisan, nonprofit organization within the state to develop the road map. The initiative new text end 67.19 new text begin may be run as a public-private partnership representing business, academic, governmental, new text end 67.20 new text begin and nongovernmental organizations. The initiative must oversee the development and new text end 67.21 new text begin implementation of a renewable hydrogen road map, including appropriate technology new text end 67.22 new text begin deployments, that achieve the hydrogen goal of section 216B.013. The road map should new text end 67.23 new text begin be compatible with the United States Department of Energy's National Hydrogen Energy new text end 67.24 new text begin Roadmap and be based on an assessment of marketplace economics and the state's new text end 67.25 new text begin opportunities in hydrogen, fuel cells, and related technologies, so as to capitalize on new text end 67.26 new text begin strengths. The road map should establish a vision, goals, general timeline, strategies for new text end 67.27 new text begin working with industry, and measurable milestones for achieving the state's renewable new text end 67.28 new text begin hydrogen goal. The road map should describe how renewable hydrogen and fuel cells fit new text end 67.29 new text begin in Minnesota's overall energy system, and should help foster a consistent, predictable, and new text end 67.30 new text begin prudent investment environment. The department must report to the legislature on the new text end 67.31 new text begin progress in implementing the road map by November 1 of each odd-numbered year. new text end 67.32     new text begin Subd. 2. new text end new text begin Grants. new text end new text begin (a) The commissioner of commerce shall operate a competitive new text end 67.33 new text begin grant program for projects to assist the state in attaining its renewable hydrogen energy new text end 67.34 new text begin goals. The commissioner of commerce shall assemble an advisory committee made up of new text end 67.35 new text begin industry, university, government, and nongovernment organizations to: new text end 68.1     new text begin (1) help identify the most promising technology deployment projects for public new text end 68.2 new text begin investment; new text end 68.3     new text begin (2) advise on the technical specifications for those projects; and new text end 68.4     new text begin (3) make recommendations on project grants. new text end 68.5     new text begin (b) The commissioner shall give preference to project concepts included in the new text end 68.6 new text begin department's most recent biennial report: Strategic Demonstration Projects to Accelerate new text end 68.7 new text begin the Commercialization of Renewable Hydrogen and Related Technologies in Minnesota. new text end 68.8 new text begin Projects eligible for funding must combine one or more of the hydrogen production new text end 68.9 new text begin options listed in the department's report with an end use that has significant commercial new text end 68.10 new text begin potential, preferably high visibility, and relies on fuel cells or related technologies. Each new text end 68.11 new text begin funded technology deployment must include an explicit education and awareness-raising new text end 68.12 new text begin component, be compatible with the renewable hydrogen deployment criteria defined in new text end 68.13 new text begin section 216B.812, and receive 50 percent of its total cost from nonstate sources. The 50 new text end 68.14 new text begin percent requirement does not apply for recipients that are public institutions. new text end 68.15    Sec. 8. Minnesota Statutes 2006, section 216C.051, subdivision 2, is amended to read: 68.16    Subd. 2. Establishment. (a) There is established a Legislative Electric Energy Task 68.17Force to study future electric energy sources and costs and to make recommendations 68.18for legislation for an environmentally and economically sustainable and advantageous 68.19electric energy supply. 68.20    (b) The task force consists of: 68.21    (1) ten members of the house of representatives including the chairs of the 68.22Environment and Natural Resources Committee and Regulated Industries Subcommittee new text begin new text end 68.23 new text begin the Energy Finance and Policy Division new text end and eight members to be appointed by the speaker 68.24of the house, four of whom must be from the minority caucus; and 68.25    (2) ten members of the senate including the chairs of the Environment new text begin , Energy new text end and 68.26Natural Resources new text begin Budget Division new text end and Jobs, Energy, and Community Development new text begin new text end 68.27 new text begin Utilities, Technology and Communications new text end committees and eight members to be appointed 68.28by the Subcommittee on Committees, four of whom must be from the minority caucus. 68.29    (c) The task force may employ staff, contract for consulting services, and may 68.30reimburse the expenses of persons requested to assist it in its duties other than state 68.31employees or employees of electric utilities. The director of the Legislative Coordinating 68.32Commission shall assist the task force in administrative matters. The task force shall 68.33elect cochairs, one member of the house and one member of the senate from among the 68.34committee and subcommittee chairs named to the committee. The task force members 69.1from the house shall elect the house cochair, and the task force members from the senate 69.2shall elect the senate cochair. 69.3    Sec. 9. Minnesota Statutes 2006, section 216C.051, subdivision 9, is amended to read: 69.4    Subd. 9. Expiration. This section is repealed June 30, 2007 new text begin 2008 new text end . 69.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 69.6    Sec. 10. new text begin [216C.385] CLEAN ENERGY RESOURCE TEAMS. new text end 69.7     new text begin Subdivision 1. new text end new text begin Findings. new text end new text begin The legislature finds that community-based energy new text end 69.8 new text begin programs are an effective means of implementing improved energy practices including new text end 69.9 new text begin conservation, greater efficiency in energy use, and the production and use of renewable new text end 69.10 new text begin resources such as wind, solar, biomass, and biofuels. Further, community-based energy new text end 69.11 new text begin programs are found to be a public purpose for which public money may be spent. new text end 69.12     new text begin Subd. 2. new text end new text begin Mission, organization, and membership. new text end new text begin The Clean Energy Resource new text end 69.13 new text begin Teams (CERT's) project is an innovative state, university, and nonprofit partnership that new text end 69.14 new text begin serves as a catalyst for community energy planning and projects. The mission of CERT's new text end 69.15 new text begin is to give citizens a voice in the energy planning process by connecting them with the new text end 69.16 new text begin necessary technical resources to identify and implement community-scale renewable new text end 69.17 new text begin energy and energy efficiency projects. In 2003, the Department of Commerce designated new text end 69.18 new text begin the CERT's project as a statewide collaborative venture and recognized six regional teams new text end 69.19 new text begin based on their geography: Central, Northeast, Northwest, Southeast, Southwest, and new text end 69.20 new text begin West-Central. Membership of CERT's may include but is not limited to representatives new text end 69.21 new text begin of utilities; federal, state, and local governments; small business; labor; senior citizens; new text end 69.22 new text begin academia; and other interested parties. The Department of Commerce may certify new text end 69.23 new text begin additional Clean Energy Resource Teams by regional geography, including teams in new text end 69.24 new text begin the Twin Cities metropolitan area. new text end 69.25     new text begin Subd. 3. new text end new text begin Powers and duties. new text end new text begin In order to develop and implement community-based new text end 69.26 new text begin energy programs, a Clean Energy Resource Team may: new text end 69.27     new text begin (1) analyze social and economic impacts caused by energy expenditures; new text end 69.28     new text begin (2) analyze regional renewable and energy efficiency resources and opportunities; new text end 69.29     new text begin (3) link community members and community energy projects to the knowledge new text end 69.30 new text begin and capabilities of the University of Minnesota, the State Energy Office, nonprofit new text end 69.31 new text begin organizations, and regional community members, among others; new text end 69.32     new text begin (4) plan, set priorities for, provide technical assistance to, and catalyze local energy new text end 69.33 new text begin efficiency and renewable energy projects that help to meet state energy policy goals and new text end 69.34 new text begin maximize local economic development opportunities; new text end 70.1     new text begin (5) provide a broad-based resource and communications network that links local, new text end 70.2 new text begin county, and regional energy efficiency and renewable energy project efforts around the new text end 70.3 new text begin state (both interregional and intraregional); new text end 70.4     new text begin (6) seek, accept, and disburse grants and other aids from public or private sources new text end 70.5 new text begin for purposes authorized in this subdivision; new text end 70.6     new text begin (7) provides a convening and networking function within CERT's regions to facilitate new text end 70.7 new text begin education, knowledge formation, and project replication; and new text end 70.8     new text begin (8) exercise other powers and duties imposed on it by statute, charter, or ordinance. new text end 70.9     new text begin Subd. 4. new text end new text begin Department assistance. new text end new text begin The commissioner, via the Clean Energy new text end 70.10 new text begin Resource Teams, may provide professional, technical, organizational, and financial new text end 70.11 new text begin assistance to regions and communities to develop and implement community energy new text end 70.12 new text begin programs and projects, within available resources. new text end 70.13    Sec. 11. new text begin [216C.39] RURAL WIND ENERGY DEVELOPMENT REVOLVING new text end 70.14 new text begin LOAN FUND. new text end 70.15     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin A rural wind energy development revolving loan new text end 70.16 new text begin fund is established as an account in the special revenue fund in the state treasury. The new text end 70.17 new text begin commissioner of finance shall credit to the account the amounts authorized under this new text end 70.18 new text begin section and appropriations and transfers to the account. Earnings, such as interest, new text end 70.19 new text begin dividends, and any other earnings arising from fund assets, must be credited to the account. new text end 70.20     new text begin Subd. 2. new text end new text begin Purpose. new text end new text begin The rural wind energy development revolving loan fund new text end 70.21 new text begin is created to provide financial assistance, through partnership with local owners and new text end 70.22 new text begin communities, in developing community wind energy projects that meet the specifications new text end 70.23 new text begin of section 216B.1612, subdivision 2, paragraph (f). new text end 70.24     new text begin Subd. 3. new text end new text begin Expenditures. new text end new text begin Money in the fund is appropriated to the commissioner new text end 70.25 new text begin of commerce, and may be used to make loans to qualifying owners of wind energy new text end 70.26 new text begin projects, as defined in section 216B.1612, subdivision 2, paragraph (f), to assist in funding new text end 70.27 new text begin wind studies and transmission interconnection studies. The loans must be structured for new text end 70.28 new text begin repayment within 30 days after the project begins commercial operations or two years new text end 70.29 new text begin from the date the loan is issued, whichever is sooner. new text end 70.30     new text begin Subd. 4. new text end new text begin Limitations. new text end new text begin A loan may not be approved for an amount exceeding new text end 70.31 new text begin $100,000. This limit applies to all money loaned to a single project or single entity, new text end 70.32 new text begin whether paid to one or more qualifying owners and whether paid in one or more fiscal new text end 70.33 new text begin years. new text end 70.34     new text begin Subd. 5. new text end new text begin Administration; eligible projects. new text end new text begin (a) Applications for a loan under new text end 70.35 new text begin this section must be made in a manner and on forms prescribed by the commissioner. new text end 71.1 new text begin Loans to eligible projects must be made in the order in which complete applications are new text end 71.2 new text begin received by the commissioner. Loan funds must be disbursed to an applicant within ten new text end 71.3 new text begin days of submission of a payment request by the applicant that demonstrates a payment new text end 71.4 new text begin due to the Midwest Independent System Operator. Interest payable on the loan amount new text end 71.5 new text begin may not exceed 1.5 percent per annum. new text end 71.6     new text begin (b) A project is eligible for a loan under this program if: new text end 71.7     new text begin (1) the project has completed an adequate interconnection feasibility study that new text end 71.8 new text begin indicates the project may be interconnected with system upgrades of less than ten percent new text end 71.9 new text begin of the estimated project costs; new text end 71.10     new text begin (2) the project has a signed power purchase agreement with an electric utility or new text end 71.11 new text begin provides evidence that the project is under serious consideration for such an agreement by new text end 71.12 new text begin an electric utility; new text end 71.13     new text begin (3) the ownership and structure of the project allows it to qualify as a new text end 71.14 new text begin community-based energy development (C-BED) project under section 216B.1612, and the new text end 71.15 new text begin developer commits to obtaining and maintaining C-BED status; and new text end 71.16     new text begin (4) the commissioner has determined that sufficient funds are available to make a new text end 71.17 new text begin loan to the project. new text end 71.18    Sec. 12. Minnesota Statutes 2006, section 216C.41, subdivision 1, is amended to read: 71.19    Subdivision 1. Definitions. (a) new text begin Unless otherwise provided, new text end the definitions in this 71.20subdivision apply to this section. 71.21    (b) "Qualified hydroelectric facility" means a hydroelectric generating facility in 71.22this state that: 71.23    (1) is located at the site of a dam, if the dam was in existence as of March 31, 71.241994; and 71.25    (2) begins generating electricity after July 1, 1994, or generates electricity after 71.26substantial refurbishing of a facility that begins after July 1, 2001. 71.27    (c) "Qualified wind energy conversion facility" means a wind energy conversion 71.28system in this state that: 71.29    (1) produces two megawatts or less of electricity as measured by nameplate rating 71.30and begins generating electricity after December 31, 1996, and before July 1, 1999; 71.31    (2) begins generating electricity after June 30, 1999, produces two megawatts or 71.32less of electricity as measured by nameplate rating, and is: 71.33    (i) owned by a resident of Minnesota or an entity that is organized under the laws 71.34of this state, is not prohibited from owning agricultural land under section 500.24, and 71.35owns the land where the facility is sited; 72.1    (ii) owned by a Minnesota small business as defined in section 645.445; 72.2    (iii) owned by a Minnesota nonprofit organization; 72.3    (iv) owned by a tribal council if the facility is located within the boundaries of 72.4the reservation; 72.5    (v) owned by a Minnesota municipal utility or a Minnesota cooperative electric 72.6association; or 72.7    (vi) owned by a Minnesota political subdivision or local government, including, 72.8but not limited to, a county, statutory or home rule charter city, town, school district, or 72.9any other local or regional governmental organization such as a board, commission, or 72.10association; or 72.11    (3) begins generating electricity after June 30, 1999, produces seven megawatts or 72.12less of electricity as measured by nameplate rating, and: 72.13    (i) is owned by a cooperative organized under chapter 308A other than a Minnesota 72.14cooperative electric association; and 72.15    (ii) all shares and membership in the cooperative are held by an entity that is not 72.16prohibited from owning agricultural land under section 500.24. 72.17    (d) "Qualified on-farm biogas recovery facility" means an anaerobic digester system 72.18that: 72.19    (1) is located at the site of an agricultural operation; and 72.20    (2) is owned by an entity that is not prohibited from owning agricultural land under 72.21section 500.24 and that owns or rents the land where the facility is located. 72.22    (e) "Anaerobic digester system" means a system of components that processes 72.23animal waste based on the absence of oxygen and produces gas used to generate electricity. 72.24     new text begin (f) "Qualified landfill gas recovery facility" means a landfill that is operating or new text end 72.25 new text begin closed, that generates gas from the decomposition of organic matter, and that installs a new text end 72.26 new text begin system to collect the gas after July 1, 2007. new text end 72.27    Sec. 13. Minnesota Statutes 2006, section 216C.41, subdivision 2, is amended to read: 72.28    Subd. 2. Incentive payment; appropriation. (a) Incentive payments must be made 72.29according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner 72.30or operator of a qualified hydropower facility or qualified wind energy conversion facility 72.31for electric energy generated and sold by the facility, (3) a publicly owned hydropower 72.32facility for electric energy that is generated by the facility and used by the owner of the 72.33facility outside the facility, or (4) the owner of a publicly owned dam that is in need of 72.34substantial repair, for electric energy that is generated by a hydropower facility at the 72.35dam and the annual incentive payments will be used to fund the structural repairs and 73.1replacement of structural components of the dam, or to retire debt incurred to fund those 73.2repairs new text begin , or (5) a qualified landfill gas recovery facility new text end . 73.3    (b) Payment may only be made upon receipt by the commissioner of commerce of 73.4an incentive payment application that establishes that the applicant is eligible to receive an 73.5incentive payment and that satisfies other requirements the commissioner deems necessary. 73.6The application must be in a form and submitted at a time the commissioner establishes. 73.7    (c) There is annually appropriated from the renewable development account 73.8under section 116C.779 to the commissioner of commerce sums sufficient to make the 73.9payments required under this section, in addition to the amounts funded by the renewable 73.10development account as specified in subdivision 5a. 73.11    Sec. 14. Minnesota Statutes 2006, section 216C.41, subdivision 3, is amended to read: 73.12    Subd. 3. Eligibility window. Payments may be made under this section only for new text begin : new text end 73.13     new text begin (a) new text end electricity generated new text begin from new text end : 73.14    (1) from a qualified hydroelectric facility that is operational and generating 73.15electricity before December 31, 2009; 73.16    (2) from a qualified wind energy conversion facility that is operational and 73.17generating electricity before January 1, 2008; or 73.18    (3) from a qualified on-farm biogas recovery facility from July 1, 2001, through 73.19December 31, 2017 new text begin ; and new text end 73.20     new text begin (b) gas generated from: new text end 73.21     new text begin (1) a qualified on-farm biogas recovery facility from July 1, 2007, through December new text end 73.22 new text begin 31, 2017; or new text end 73.23     new text begin (2) a qualified landfill gas recovery facility from July 1, 2007, through December new text end 73.24 new text begin 31, 2017 new text end . 73.25    Sec. 15. new text begin [216C.42] ON-FARM BIOGAS RECOVERY GRANTS. new text end 73.26     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin For the purpose of this section, the following terms new text end 73.27 new text begin have the meanings given. new text end 73.28     new text begin (a) "Qualified on-farm biogas recovery facility" means an anaerobic digester system new text end 73.29 new text begin that: new text end 73.30     new text begin (1) is located at the site of an agricultural operation; new text end 73.31     new text begin (2) is owned by an entity that is not prohibited from owning agricultural land under new text end 73.32 new text begin section 500.24 and that owns or rents the land where the facility is located; and new text end 73.33     new text begin (3) is owned by a qualified owner as defined in section 216B.1612, subdivision 2, new text end 73.34 new text begin paragraph (c). new text end 74.1     new text begin (b) "Anaerobic digester system" means a system of components that processes new text end 74.2 new text begin animal waste based on the absence of oxygen and produces gas. new text end 74.3     new text begin (c) "Commissioner" means the commissioner of agriculture. new text end 74.4     new text begin Subd. 2. new text end new text begin Eligibility. new text end new text begin Subject to the availability of funds, the commissioner must new text end 74.5 new text begin approve grants to a qualified owner of a qualified on-farm biogas recovery facility for the new text end 74.6 new text begin total installed costs of capital investments associated with the facility, up to a maximum of new text end 74.7 new text begin $500,000. new text end 74.8     new text begin Subd. 3. new text end new text begin Application. new text end new text begin Application for a grant under this section must be made by a new text end 74.9 new text begin qualified owner to the commissioner on a form the commissioner prescribes by rule. The new text end 74.10 new text begin commissioner must review each application to determine: new text end 74.11     new text begin (1) whether the application is complete; new text end 74.12     new text begin (2) whether the information, calculations, and estimates contained in the application new text end 74.13 new text begin are appropriate, accurate, and reasonable; new text end 74.14     new text begin (3) whether the project is eligible for a grant; new text end 74.15     new text begin (4) the amount of the grant for which the project is eligible; and new text end 74.16     new text begin (5) other funding sources the owner proposes to use to finance the project in addition new text end 74.17 new text begin to a grant authorized by this section. new text end 74.18 new text begin An applicant may submit only one grant application each year under this section. new text end 74.19     new text begin Subd. 4. new text end new text begin Additional information. new text end new text begin During application review, the commissioner new text end 74.20 new text begin may request additional information about a proposed project, including information on new text end 74.21 new text begin project cost. Failure to provide information requested disqualifies a grant application. new text end 74.22     new text begin Subd. 5. new text end new text begin Public accessibility of grant application data. new text end new text begin Data contained in an new text end 74.23 new text begin application submitted to the commissioner for a grant under this section, including new text end 74.24 new text begin supporting technical documentation, is classified as public data not on individuals under new text end 74.25 new text begin section 13.02, subdivision 14. new text end 74.26     new text begin Subd. 6. new text end new text begin Rules. new text end new text begin The commissioner must adopt rules necessary to implement this new text end 74.27 new text begin section. The rules must contain at a minimum: new text end 74.28     new text begin (1) standards for project eligibility; new text end 74.29     new text begin (2) criteria for reviewing grant applications; and new text end 74.30     new text begin (3) procedures and guidelines for program monitoring and evaluation. new text end 74.31     new text begin Subd. 7. new text end new text begin Right of first refusal. new text end new text begin A utility that provides electric service at retail in new text end 74.32 new text begin the area where the qualified on-farm biogas recovery facility is located has the right of new text end 74.33 new text begin first refusal for any gas produced by a qualified on-farm biogas recovery facility that has new text end 74.34 new text begin received a grant under this section. A utility's right of first refusal expires if: new text end 75.1     new text begin (1) within 45 days after the qualified owner files an incentive payment application new text end 75.2 new text begin with the commissioner, the utility fails to send a letter of intent to the qualified owner new text end 75.3 new text begin indicating the utility's willingness to negotiate a purchase agreement; or new text end 75.4     new text begin (2) the parties enter negotiations but fail to reach agreement within 120 days after new text end 75.5 new text begin the qualified owner files an incentive payment application with the commissioner. new text end 75.6     new text begin Subd. 8. new text end new text begin Eligibility toward renewable energy objective. new text end new text begin Any gas generated by new text end 75.7 new text begin a qualified on-farm biogas recovery facility awarded a grant under this section that is new text end 75.8 new text begin purchased by a utility may be counted toward the utility's renewable energy objective new text end 75.9 new text begin under section 216B.1691, subdivision 2. new text end 75.10     new text begin Subd. 9. new text end new text begin Appropriation. new text end new text begin Up to $1,000,000 is appropriated annually from the new text end 75.11 new text begin renewable development account through fiscal year 2015 to the commissioner of new text end 75.12 new text begin agriculture for the purpose of providing grants to qualified on-farm biogas recovery new text end 75.13 new text begin facilities. new text end 75.14    Sec. 16. new text begin [561.20] NUISANCE LIABILITY OF WIND ENERGY CONVERSION new text end 75.15 new text begin SYSTEMS. new text end 75.16     new text begin Subdivision 1. new text end new text begin Definition. new text end new text begin For the purposes of this section, "wind energy conversion new text end 75.17 new text begin system" has the meaning given in section 216C.06. new text end 75.18     new text begin Subd. 2. new text end new text begin Wind energy conversion system not a nuisance. new text end new text begin (a) A wind energy new text end 75.19 new text begin conversion system is not and does not become a private or public nuisance after two years new text end 75.20 new text begin from the date it begins generating electricity as a matter of law if the system: new text end 75.21     new text begin (1) complies with all applicable federal, state, or county laws, regulations, rules, and new text end 75.22 new text begin ordinances and any permits issued for it; and new text end 75.23     new text begin (2) operates according to generally accepted practices. new text end 75.24     new text begin (b) For a period of two years from the date it begins generating electricity, there is new text end 75.25 new text begin a rebuttable presumption that a wind energy conversion system in compliance with the new text end 75.26 new text begin requirements of paragraph (a) is not a public or private nuisance. new text end 75.27     new text begin (c) This subdivision does not apply: new text end 75.28     new text begin (1) to any prosecution for the crime of public nuisance as provided in section new text end 75.29 new text begin 609.74 or to an action by a public authority to abate a particular condition that is a public new text end 75.30 new text begin nuisance; or new text end 75.31     new text begin (2) to any enforcement action brought by a local unit of government related to new text end 75.32 new text begin zoning under chapter 394 or 462. new text end 75.33     new text begin Subd. 3. new text end new text begin Existing contracts. new text end new text begin This section must not be construed to invalidate any new text end 75.34 new text begin contracts or commitments made before the effective date of this section. new text end 76.1     new text begin Subd. 4. new text end new text begin Severability. new text end new text begin If a provision of this section, or application thereof to any new text end 76.2 new text begin person or set of circumstances, is held invalid or unconstitutional, the invalidity does not new text end 76.3 new text begin affect other provisions or applications of this section that can be given effect without the new text end 76.4 new text begin invalid provision or application. To that end, the provisions of this section are declared to new text end 76.5 new text begin be severable. new text end 76.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 76.7    Sec. 17. new text begin PETROLEUM VIOLATION ESCROW FUNDS. new text end 76.8     new text begin (a) Petroleum violation escrow funds appropriated to the commissioner of commerce new text end 76.9 new text begin by Laws 1988, chapter 686, article 1, section 38, for state energy loan programs for new text end 76.10 new text begin schools, hospitals, and public buildings must be used for grants to kindergarten through new text end 76.11 new text begin grade 12 schools to develop energy conservation or renewable energy projects. A grant new text end 76.12 new text begin may not exceed $500,000. The commissioner must endeavor to award grants throughout new text end 76.13 new text begin the regions of the state. No more than one grant may be awarded in a county, unless an new text end 76.14 new text begin insufficient number of applications is received from schools located in other counties to new text end 76.15 new text begin exhaust available funds. new text end 76.16     new text begin (b) The commissioner of commerce must petition the federal Department of Energy new text end 76.17 new text begin for a waiver from any federal regulation that limits the proportion of federal funds new text end 76.18 new text begin expended on state energy programs that may be spent on energy efficiency. new text end 76.19     new text begin (c) For purposes of this subdivision, "renewable energy" means wind, solar, new text end 76.20 new text begin hydroelectric with a capacity of less than 60 megawatts, geothermal, hydrogen, fuel cells new text end 76.21 new text begin made from renewable resources, herbaceous crops, agricultural crops, agricultural waste, new text end 76.22 new text begin and aquatic plant matter. new text end 76.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day after the commissioner of new text end 76.24 new text begin commerce receives the waiver described in paragraph (b). new text end 76.25    Sec. 18. new text begin RURAL WIND ENERGY DEVELOPMENT PROGRAM. new text end 76.26     new text begin (a) The Center for Rural Policy and Development shall make a grant to a nonprofit new text end 76.27 new text begin organization with experience dealing with energy and community wind issues to design new text end 76.28 new text begin and implement a rural wind energy development assistance program. The program must new text end 76.29 new text begin be designed to maximize rural economic development and stabilize rural community new text end 76.30 new text begin institutions, including hospitals and schools, by increasing the income of local residents new text end 76.31 new text begin and increasing local tax revenues. The grant may be disbursed in two installments. The new text end 76.32 new text begin program must provide assistance to rural entities seeking to develop wind generation new text end 76.33 new text begin projects that meet the specifications of Minnesota Statutes, section 216B.1612, subdivision new text end 77.1 new text begin 2, paragraph (f), and to sell the electricity the projects produce. Among other strategies, new text end 77.2 new text begin the program may consider aggregating rural entities and others into groups with the size new text end 77.3 new text begin and market power necessary to plan and develop significant rural wind energy projects. new text end 77.4     new text begin (b) The program must provide assistance that includes, but is not limited to: new text end 77.5     new text begin (1) providing legal, engineering, and financial services; new text end 77.6     new text begin (2) identifying target communities with favorable wind resources, community new text end 77.7 new text begin interest, and local political support; new text end 77.8     new text begin (3) providing assistance to reserve, obtain, and ensure the maintenance over time of new text end 77.9 new text begin wind turbines; new text end 77.10     new text begin (4) creating market opportunities for utilities to meet their renewable energy standard new text end 77.11 new text begin obligations through purchases from rural community wind projects; new text end 77.12     new text begin (5) assisting in negotiating fair power purchase agreements; new text end 77.13     new text begin (6) facilitating transmission interconnection and delivery of energy from community new text end 77.14 new text begin wind projects; and new text end 77.15     new text begin (7) lowering the market risk facing potential wind investors by supporting all phases new text end 77.16 new text begin of project development. new text end 77.17     new text begin The grantee must demonstrate an ability to sustain program functions with ongoing new text end 77.18 new text begin revenue from sources other than state funding and shall provide a 35 percent grant match. new text end 77.19 new text begin The grant must be awarded on a competitive basis. The center must use best practices new text end 77.20 new text begin regarding grant management functions, including selection and monitoring of the grantee, new text end 77.21 new text begin compliance review, and financial oversight. Grant management fees are limited to 2.5 new text end 77.22 new text begin percent of the grant. new text end 77.23    Sec. 19. new text begin UNIFORM CODES AND STANDARDS FOR HYDROGEN, FUEL new text end 77.24 new text begin CELLS, AND RELATED TECHNOLOGIES; RECOMMENDATIONS AND new text end 77.25 new text begin REPORT. new text end 77.26     new text begin (a) The commissioner of labor and industry, in consultation with the Department of new text end 77.27 new text begin Commerce and other relevant public and private interests, shall develop recommendations new text end 77.28 new text begin regarding the adoption of uniform codes and standards for hydrogen infrastructure, fuel new text end 77.29 new text begin cells, and related technologies, and report those recommendations to the legislature by new text end 77.30 new text begin December 31, 2008. new text end 77.31     new text begin (b) The goal of the recommendations is to have all regulatory jurisdictions in the new text end 77.32 new text begin state have the same safety standards with regard to the production, storage, transportation, new text end 77.33 new text begin distribution, and use of hydrogen, fuel cells, and related technologies. The commissioner's new text end 77.34 new text begin recommendations must, without limitation, include: new text end 78.1     new text begin (1) codes and standards that already exist for hydrogen, fuel cells, and related new text end 78.2 new text begin technologies, and how the state should formalize their use; new text end 78.3     new text begin (2) codes and standards still under development by various official standard-making new text end 78.4 new text begin bodies; new text end 78.5     new text begin (3) gaps between existing codes and standards, those under development, and those new text end 78.6 new text begin that may still be needed but are not yet being developed; new text end 78.7     new text begin (4) the need for, and estimated cost of, additional education and training for new text end 78.8 new text begin emergency management and code officials; new text end 78.9     new text begin (5) any changes needed to environmental and other permitting processes to new text end 78.10 new text begin accommodate the commercialization of hydrogen, fuel cells, and related technologies; and new text end 78.11     new text begin (6) recommendations on appropriate codes and standards for educational and new text end 78.12 new text begin research institutions. new text end 78.13    Sec. 20. new text begin HYDROGEN REFUELING STATION GRANTS. new text end 78.14     new text begin In addition to the purposes specified in Laws 2005, chapter 97, article 13, section new text end 78.15 new text begin 4, for which the commissioner of commerce may make grants, the commissioner may new text end 78.16 new text begin make grants under that law for the purpose of developing, deploying, and encouraging new text end 78.17 new text begin commercially promising renewable hydrogen production systems and hydrogen end new text end 78.18 new text begin uses in partnership with industry. The authority of the commissioner to make grants new text end 78.19 new text begin and assessments under Laws 2005, chapter 97, article 13, section 4, continues until the new text end 78.20 new text begin authorized grants and assessments are made. new text end 78.21    Sec. 21. new text begin OFF-SITE RENEWABLE DISTRIBUTED GENERATION. new text end 78.22     new text begin The commissioner of commerce shall convene a broad group of interested new text end 78.23 new text begin stakeholders to evaluate the feasibility and potential for the interconnection and parallel new text end 78.24 new text begin operation of off-site renewable distributed generation in a manner consistent with new text end 78.25 new text begin Minnesota Statutes, sections 216B.37 to 216B.43, and shall issue recommendations to new text end 78.26 new text begin the chairs of the house of representatives and senate committees with jurisdiction over new text end 78.27 new text begin energy issues by February 1, 2008. new text end 78.28ARTICLE 4 78.29ENVIRONMENT 78.30    Section 1. new text begin BIOFUEL PERMITTING REPORT. new text end 78.31     new text begin By January 15, 2008, the Pollution Control Agency, the commissioner of natural new text end 78.32 new text begin resources, and the Environmental Quality Board shall report to the house of representatives new text end 78.33 new text begin and senate committees and divisions with jurisdiction over agriculture and environment new text end 79.1 new text begin policy and budget on the process to issue permits for biofuel production facilities. The new text end 79.2 new text begin report shall include: new text end 79.3     new text begin (1) information on the timing of the permits and measures taken to improve the new text end 79.4 new text begin timing of the permitting process; new text end 79.5     new text begin (2) recommended changes to statutes, rules, or procedures to improve the biofuel new text end 79.6 new text begin facility permitting process and reduce the groundwater needed for production; and new text end 79.7     new text begin (3) other information or analysis that may be helpful in understanding or improving new text end 79.8 new text begin the biofuel production facility permitting process. new text end 79.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 79.10    Sec. 2. new text begin DEFINITIONS. new text end 79.11     new text begin Subdivision 1. new text end new text begin Terrestrial carbon sequestration. new text end new text begin "Terrestrial carbon sequestration" new text end 79.12 new text begin means the long-term storage of carbon in soil and vegetation to prevent its collection in new text end 79.13 new text begin the atmosphere as carbon dioxide. new text end 79.14     new text begin Subd. 2. new text end new text begin Geologic carbon sequestration. new text end new text begin "Geologic carbon sequestration" means new text end 79.15 new text begin injecting carbon dioxide into underground geologic formations where it can be stored for new text end 79.16 new text begin long periods of time to prevent its escape to the atmosphere. new text end 79.17    Sec. 3. new text begin TERRESTRIAL CARBON SEQUESTRATION ACTIVITIES. new text end 79.18     new text begin Subdivision 1. new text end new text begin Study; scope. new text end new text begin The Board of Regents of the University of Minnesota new text end 79.19 new text begin is requested to conduct a study assessing the potential capacity for carbon sequestration in new text end 79.20 new text begin Minnesota's terrestrial systems. The study must: new text end 79.21     new text begin (1) conduct a statewide inventory and construct a database of lands across several new text end 79.22 new text begin land types, such as forests, agricultural lands, peatlands, and wetlands, that have the new text end 79.23 new text begin potential to sequester significant quantities of carbon and of lands that currently contain new text end 79.24 new text begin large stocks of carbon that are at risk of being emitted to the atmosphere as a result of new text end 79.25 new text begin changes in land use and climate; new text end 79.26     new text begin (2) quantify the ability of various land use practices, such as the growth of different new text end 79.27 new text begin species of crops, grasses, and trees, to sequester carbon and their impacts on other new text end 79.28 new text begin ecological services of value, including air and water quality, biodiversity, and wildlife new text end 79.29 new text begin habitat; new text end 79.30     new text begin (3) identify a network of benchmark monitoring sites to measure the impact of new text end 79.31 new text begin long-term, large-scale factors, such as changes in climate, carbon dioxide levels, and land new text end 79.32 new text begin use, on the terrestrial carbon sequestration capacity of various land types, to improve new text end 79.33 new text begin understanding of carbon-terrestrial interactions and dynamics; new text end 80.1     new text begin (4) identify long-term demonstration projects to measure the impact of deliberate new text end 80.2 new text begin sequestration practices, including the establishment of biofuel production systems, on new text end 80.3 new text begin forest, agricultural, wetland, and prairie ecosystems; and new text end 80.4     new text begin (5) evaluate current state policies and programs that affect the levels of terrestrial new text end 80.5 new text begin sequestration on public and private lands and identify gaps and recommend policy changes new text end 80.6 new text begin to increase sequestration rates. new text end 80.7     new text begin Subd. 2. new text end new text begin Coordination of terrestrial carbon sequestration activities. new text end new text begin Planning new text end 80.8 new text begin and implementation of the study described in subdivision 1 will be coordinated by new text end 80.9 new text begin the Minnesota Terrestrial Carbon Sequestration Initiative, a task force consisting of new text end 80.10 new text begin representatives from the University of Minnesota, the Department of Agriculture, the new text end 80.11 new text begin Board of Water and Soil Resources, the Department of Commerce, the Department new text end 80.12 new text begin of Natural Resources, and the Pollution Control Agency and agricultural, forestry, new text end 80.13 new text begin conservation, and business stakeholders. new text end 80.14     new text begin Subd. 3. new text end new text begin Contracting. new text end new text begin The University of Minnesota may contract with another new text end 80.15 new text begin party to perform any of the tasks listed in subdivision 1. new text end 80.16     new text begin Subd. 4. new text end new text begin Report. new text end new text begin The commissioner of natural resources must submit a report new text end 80.17 new text begin with the results of the study to the senate and house of representatives committees with new text end 80.18 new text begin jurisdiction over environmental and energy policies no later than February 1, 2008. new text end 80.19    Sec. 4. new text begin GEOLOGIC CARBON SEQUESTRATION ASSESSMENT. new text end 80.20     new text begin Subdivision 1. new text end new text begin Study; scope. new text end new text begin (a) The Minnesota Geological Survey shall conduct new text end 80.21 new text begin a study assessing the potential capacity for geologic carbon sequestration in the new text end 80.22 new text begin Midcontinent Rift system in Minnesota. The study must assess the potential of porous new text end 80.23 new text begin and permeable sandstone layers deeper than one kilometer below the surface that are new text end 80.24 new text begin capped by less permeable shale and must identify potential risks to carbon storage, such new text end 80.25 new text begin as areas of low permeability in injection zones, low storage capacity, and potential seal new text end 80.26 new text begin failure. The study must identify the most promising formations and geographic areas for new text end 80.27 new text begin physical analysis of carbon sequestration potential. The study must review geologic new text end 80.28 new text begin maps, published reports and surveys, and any relevant unpublished raw data with respect new text end 80.29 new text begin to attributes that are pertinent for the long-term sequestration of carbon in geologic new text end 80.30 new text begin formations, in particular, those that bear on formation injectivity, capacity, and seal new text end 80.31 new text begin effectiveness. The study must examine the following characteristics of key sedimentary new text end 80.32 new text begin units within the Midcontinent Rift system in Minnesota: new text end 80.33     new text begin (1) likely depth, temperature, and pressure; new text end 80.34     new text begin (2) physical properties, including the ability to contain and transmit fluids; new text end 80.35     new text begin (3) the type of rocks present; new text end 81.1     new text begin (4) structure and geometry, including folds and faults; and new text end 81.2     new text begin (5) hydrogeology, including water chemistry and water flow. new text end 81.3     new text begin (b) The commissioner of natural resources, in consultation with the Minnesota new text end 81.4 new text begin Geological Survey, shall contract for a study to estimate the properties of the Midcontinent new text end 81.5 new text begin Rift system in Minnesota, as described in paragraph (a), clauses (1) to (5), through the new text end 81.6 new text begin use of computer models developed for similar geologic formations located outside of new text end 81.7 new text begin Minnesota which have been studied in greater detail. new text end 81.8     new text begin Subd. 2. new text end new text begin Consultation. new text end new text begin The Minnesota Geological Survey shall consult with the new text end 81.9 new text begin Minnesota Mineral Coordinating Committee, established in Minnesota Statutes, section new text end 81.10 new text begin 93.0015, in planning and implementing the study design. new text end 81.11     new text begin Subd. 3. new text end new text begin Report. new text end new text begin The commissioner of natural resources must submit a report new text end 81.12 new text begin with the results of the study to the senate and house of representatives committees with new text end 81.13 new text begin jurisdiction over environmental and energy policies no later than February 1, 2008. new text end 81.14    Sec. 5. new text begin STAY EXTENDED; DRY CASK STORAGE AT MONTICELLO. new text end 81.15     new text begin The stay of a Public Utilities Commission decision to approve an application for new text end 81.16 new text begin a certificate of need for additional dry cask storage at the Monticello nuclear power new text end 81.17 new text begin generating facility, imposed under Minnesota Statutes, section 116C.83, subdivision 3, new text end 81.18 new text begin is extended until June 1, 2008. new text end 81.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 81.20ARTICLE 5 81.21HEATING ASSISTANCE AND UTILITIES 81.22    Section 1. new text begin [216B.091] MONTHLY REPORTS. new text end 81.23     new text begin (a) Each public utility must report the following data on residential customers to the new text end 81.24 new text begin commission monthly, in a format determined by the commission: new text end 81.25     new text begin (1) number of customers; new text end 81.26     new text begin (2) number and total amount of accounts past due; new text end 81.27     new text begin (3) average customer past due amount; new text end 81.28     new text begin (4) total revenue received from the low-income home energy assistance program and new text end 81.29 new text begin other sources contributing to the bills of low-income persons; new text end 81.30     new text begin (5) average monthly bill; new text end 81.31     new text begin (6) total sales revenue; new text end 81.32     new text begin (7) total write-offs due to uncollectible bills; new text end 81.33     new text begin (8) number of disconnection notices mailed; new text end 82.1     new text begin (9) number of accounts disconnected for nonpayment; new text end 82.2     new text begin (10) number of accounts reconnected to service; and new text end 82.3     new text begin (11) number of accounts that remain disconnected, grouped by the duration of new text end 82.4 new text begin disconnection, as follows: new text end 82.5     new text begin (i) 1-30 days; new text end 82.6     new text begin (ii) 31-60 days; and new text end 82.7     new text begin (iii) more than 60 days. new text end 82.8     new text begin (b) Monthly reports for October through April must also include the following data: new text end 82.9     new text begin (1) number of cold weather protection requests; new text end 82.10     new text begin (2) number of payment arrangement requests received and granted; new text end 82.11     new text begin (3) number of right to appeal notices mailed to customers; new text end 82.12     new text begin (4) number of reconnect request appeals withdrawn; new text end 82.13     new text begin (5) number of occupied heat-affected accounts disconnected for 24 hours or more new text end 82.14 new text begin for electric and natural gas service separately; new text end 82.15     new text begin (6) number of occupied non-heat-affected accounts disconnected for 24 hours or new text end 82.16 new text begin more for electric and gas service separately; new text end 82.17     new text begin (7) number of customers granted cold weather rule protection; new text end 82.18     new text begin (8) number of customers disconnected who did not request cold weather rule new text end 82.19 new text begin protection; and new text end 82.20     new text begin (9) number of customers disconnected who requested cold weather rule protection. new text end 82.21     new text begin (c) The data reported under paragraphs (a) and (b) is presumed to be accurate upon new text end 82.22 new text begin submission and must be made available through the commission's electronic filing system. new text end 82.23    Sec. 2. new text begin [216B.0951] PROPANE PREPURCHASE PROGRAM. new text end 82.24     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin The commissioner of commerce shall operate, or new text end 82.25 new text begin contract to operate, a propane fuel prepurchase fuel program. The commissioner may new text end 82.26 new text begin contract at any time of the year to purchase the lesser of one-third of the liquid propane new text end 82.27 new text begin fuel consumed by low-income home energy assistance program recipients during the new text end 82.28 new text begin previous heating season or the amount that can be purchased with available funds. The new text end 82.29 new text begin propane fuel prepurchase program must be available statewide through each local agency new text end 82.30 new text begin that administers the energy assistance program. The commissioner may decide to limit or new text end 82.31 new text begin not engage in prepurchasing if the commissioner finds that there is a reasonable likelihood new text end 82.32 new text begin that prepurchasing will not provide fuel-cost savings. new text end 82.33     new text begin Subd. 2. new text end new text begin Hedge account. new text end new text begin The commissioner may establish a hedge account with new text end 82.34 new text begin realized program savings due to prepurchasing. The account must be used to compensate new text end 82.35 new text begin program recipients an amount up to the difference in cost for fuel provided to the recipient new text end 83.1 new text begin if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No new text end 83.2 new text begin more than ten percent of the aggregate prepurchase program savings may be used to new text end 83.3 new text begin establish the hedge account. new text end 83.4     new text begin Subd. 3. new text end new text begin Report. new text end new text begin The Department of Commerce shall issue a report by June 30, new text end 83.5 new text begin 2008, made available electronically on its Web site and in print upon request, that contains new text end 83.6 new text begin the following information: new text end 83.7     new text begin (1) the cost per gallon of prepurchased fuel; new text end 83.8     new text begin (2) the total gallons of fuel prepurchased; new text end 83.9     new text begin (3) the average cost of propane each month between October and the following April; new text end 83.10     new text begin (4) the number of energy assistance program households receiving prepurchased new text end 83.11 new text begin fuel; and new text end 83.12     new text begin (5) the average savings accruing or benefit increase provided to energy assistance new text end 83.13 new text begin households. new text end 83.14    Sec. 3. new text begin [216B.096] COLD WEATHER RULE; PUBLIC UTILITIES. new text end 83.15     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin This section applies only to residential customers of a new text end 83.16 new text begin public utility. new text end 83.17     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) The terms used in this section have the meanings given new text end 83.18 new text begin them in this subdivision. new text end 83.19     new text begin (b) "Cold weather period" means the period from October 15 through April 15 of new text end 83.20 new text begin the following year. new text end 83.21     new text begin (c) "Customer" means a residential customer of a utility. new text end 83.22     new text begin (d) "Customer's income" means the actual monthly income of the customer or the new text end 83.23 new text begin average monthly income of the customer computed on a calendar year basis, whichever is new text end 83.24 new text begin less, and does not include any amount received for energy assistance. new text end 83.25     new text begin (e) "Disconnection" means the involuntary loss of utility heating service as a result new text end 83.26 new text begin of a physical act by a utility to discontinue service. Disconnection includes installation of new text end 83.27 new text begin a service or load limiter or any device that limits or interrupts utility service in any way. new text end 83.28     new text begin (f) "Household income" means the combined income, as defined in section 290A.03, new text end 83.29 new text begin subdivision 3, of all residents of the customer's household, computed on an annual basis. new text end 83.30 new text begin Household income does not include any amount received for energy assistance. new text end 83.31     new text begin (g) "Reasonably timely payment" means payment within seven calendar days of new text end 83.32 new text begin agreed-upon due dates. new text end 83.33     new text begin (h) "Reconnection" means the restoration of utility heating service after it has been new text end 83.34 new text begin disconnected. new text end 84.1     new text begin (i) "Third party notice" means a commission-approved notice containing, at a new text end 84.2 new text begin minimum, the following information: new text end 84.3     new text begin (1) a statement that the utility will send a copy of any future notice of proposed new text end 84.4 new text begin disconnection of utility heating service to a third party designated by the residential new text end 84.5 new text begin customer; new text end 84.6     new text begin (2) instructions on how to request this service; and new text end 84.7     new text begin (3) a statement that the residential customer should contact the person the customer new text end 84.8 new text begin intends to designate as the third party contact before providing the utility with the party's new text end 84.9 new text begin name. new text end 84.10     new text begin (j) "Utility" means a public utility as defined in section 216B.02. new text end 84.11     new text begin (k) "Utility heating service" means natural gas or electricity used as a primary new text end 84.12 new text begin heating source, including electricity service necessary to operate gas heating equipment. new text end 84.13     new text begin (l) "Working days" means Mondays through Fridays, excluding legal holidays. new text end 84.14     new text begin Subd. 3. new text end new text begin Utility obligations before cold weather period. new text end new text begin (a) Each year, between new text end 84.15 new text begin September 1 and October 15, each utility must notify all customers of the provisions of new text end 84.16 new text begin this section. Notice must also be provided to all new residential customers when service is new text end 84.17 new text begin initiated. Notice must, at a minimum, include: new text end 84.18     new text begin (1) an explanation of the customer's rights and responsibilities under subdivision 5; new text end 84.19     new text begin (2) an explanation of no-cost and low-cost methods to reduce the consumption new text end 84.20 new text begin of energy; and new text end 84.21     new text begin (3) a third party notice. new text end 84.22     new text begin (b) Also, each year, between September 1 and October 15, each utility must attempt new text end 84.23 new text begin to contact, establish a payment agreement, and reconnect utility heating service to all new text end 84.24 new text begin customers who were disconnected after the preceding heating season. A record must be new text end 84.25 new text begin made of all contacts and attempted contacts. new text end 84.26     new text begin Subd. 4. new text end new text begin Notice before disconnection during cold weather period. new text end new text begin Before new text end 84.27 new text begin disconnecting utility heating service during the cold weather period, a utility must provide new text end 84.28 new text begin notice to a customer, in easy-to-understand language, that contains the following: new text end 84.29     new text begin (1) the date of the scheduled disconnection; new text end 84.30     new text begin (2) the amount due; new text end 84.31     new text begin (3) ways to avoid disconnection; new text end 84.32     new text begin (4) information regarding payment agreements; new text end 84.33     new text begin (5) a statement explaining the customer's rights and responsibilities, including the new text end 84.34 new text begin right to appeal a determination by the utility that the customer is not eligible for protection new text end 84.35 new text begin and the right to request commission intervention if the utility and customer cannot arrive new text end 84.36 new text begin at a mutually acceptable payment agreement; new text end 85.1     new text begin (6) a list of local energy assistance and weatherization providers in each county new text end 85.2 new text begin served by the utility; and new text end 85.3     new text begin (7) a third party notice. new text end 85.4     new text begin Subd. 5. new text end new text begin Cold weather rule. new text end new text begin (a) During the cold weather period, a utility may new text end 85.5 new text begin not disconnect and must reconnect a customer whose household income is at or below new text end 85.6 new text begin 50 percent of the state median income if the customer enters into and makes reasonably new text end 85.7 new text begin timely payments under a mutually acceptable payment agreement with the utility that is new text end 85.8 new text begin based on the financial resources and circumstances of the household; provided that, a new text end 85.9 new text begin utility may not require a customer to pay more than ten percent of the customer's income new text end 85.10 new text begin toward current and past utility bills for utility heating service. new text end 85.11     new text begin (b) A utility may accept more than ten percent of the household income as the new text end 85.12 new text begin payment arrangement amount if agreed to by the customer. new text end 85.13     new text begin (c) The customer or a designated third party may request a modification of the terms new text end 85.14 new text begin of a payment agreement previously entered into if the customer's financial circumstances new text end 85.15 new text begin have changed or the customer is unable to make reasonably timely payments. The utility new text end 85.16 new text begin may refer to commission staff a customer who requests more than two modifications of a new text end 85.17 new text begin payment agreement during a single cold weather rule period if no payments have been new text end 85.18 new text begin made. new text end 85.19     new text begin (d) The payment agreement terminates at the expiration of the cold weather period new text end 85.20 new text begin unless a longer period is mutually agreed to by the customer and the utility. new text end 85.21     new text begin Subd. 6. new text end new text begin Verification of income. new text end new text begin (a) In verifying a customer's household income, new text end 85.22 new text begin a utility may: new text end 85.23     new text begin (1) accept the signed statement of a customer that the customer is income eligible; new text end 85.24     new text begin (2) obtain income verification from a local energy assistance provider or a new text end 85.25 new text begin government agency; new text end 85.26     new text begin (3) consider one or more of the following: new text end 85.27     new text begin (i) the most recent income tax return filed by members of the customer's household; new text end 85.28     new text begin (ii) for each employed member of the customer's household, paycheck stubs for the new text end 85.29 new text begin last two months or a written statement from the employer reporting wages earned during new text end 85.30 new text begin the preceding two months; new text end 85.31     new text begin (iii) a customer's Medicaid card, documentation that the customer receives food new text end 85.32 new text begin stamps, or a food support eligibility document; new text end 85.33     new text begin (iv) documentation that the customer receives a pension from the Department of new text end 85.34 new text begin Human Services, the Social Security Administration, the Veteran's Administration, or new text end 85.35 new text begin other pension provider; new text end 86.1     new text begin (v) a letter showing the customer's dismissal from a job or other documentation of new text end 86.2 new text begin unemployment; or new text end 86.3     new text begin (vi) other documentation that supports the customer's declaration of income new text end 86.4 new text begin eligibility. new text end 86.5     new text begin (b) A customer who receives energy assistance benefits under any federal, state, new text end 86.6 new text begin or county government programs in which eligibility is defined as household income at new text end 86.7 new text begin or below 50 percent of state median income is deemed to be automatically eligible for new text end 86.8 new text begin protection under this section and no other verification of income may be required. new text end 86.9     new text begin Subd. 7. new text end new text begin Prohibitions and requirements. new text end new text begin During the cold weather period: new text end 86.10     new text begin (a) A utility may not charge a deposit or delinquency charge to a customer who has new text end 86.11 new text begin entered into a payment agreement or a customer who has appealed to the commission new text end 86.12 new text begin under subdivision 8. new text end 86.13     new text begin (b) A utility may not disconnect service during the following periods: new text end 86.14     new text begin (1) during the pendency of any appeal under subdivision 8; new text end 86.15     new text begin (2) earlier than ten working days after a utility has deposited in first class mail, new text end 86.16 new text begin or seven working days after a utility has personally served, the notice required under new text end 86.17 new text begin subdivision 4 to a customer in an occupied dwelling; new text end 86.18     new text begin (3) earlier than ten working days after the utility has deposited in first class mail new text end 86.19 new text begin the notice required under subdivision 4 to the recorded billing address of the customer, new text end 86.20 new text begin if the utility has reasonably determined from an on-site inspection that the dwelling new text end 86.21 new text begin is unoccupied; new text end 86.22     new text begin (4) on a Friday, unless the utility makes personal contact with, and offers a payment new text end 86.23 new text begin agreement to, the customer; new text end 86.24     new text begin (5) on a Saturday, Sunday, holiday, or the day before a holiday; new text end 86.25     new text begin (6) when utility offices are closed; new text end 86.26     new text begin (7) when no utility personnel are available to resolve disputes, enter into payment new text end 86.27 new text begin agreements, accept payments, and reconnect service; or new text end 86.28     new text begin (8) when commission offices are closed. new text end 86.29     new text begin (c) Also, a utility may not discontinue service until the utility investigates whether new text end 86.30 new text begin the dwelling is actually occupied. At a minimum, the investigation must include one visit new text end 86.31 new text begin by the utility to the dwelling during normal working hours. If no contact is made and new text end 86.32 new text begin there is reason to believe that the dwelling is occupied, the utility must attempt a second new text end 86.33 new text begin contact during nonbusiness hours. If personal contact is made, the utility representative new text end 86.34 new text begin must provide notice required under subdivision 4 and, if the utility representative is not new text end 86.35 new text begin authorized to enter into a payment agreement, the telephone number the customer can call new text end 86.36 new text begin to establish a payment agreement. new text end 87.1     new text begin (d) Each utility must reconnect utility service if, following disconnection, the new text end 87.2 new text begin dwelling is found to be occupied and the customer agrees to enter into a payment new text end 87.3 new text begin agreement or appeals to the commission because the customer and the utility are unable to new text end 87.4 new text begin agree on a payment agreement. new text end 87.5     new text begin Subd. 8. new text end new text begin Disputes; customer appeals. new text end new text begin (a) A utility must provide the customer new text end 87.6 new text begin and any designated third party with a commission-approved written notice of the right new text end 87.7 new text begin to appeal: new text end 87.8     new text begin (1) upon a utility determination that the customer's household income is more than new text end 87.9 new text begin 50 percent of state median household income; or new text end 87.10     new text begin (2) when the utility and customer are unable to agree on the establishment or new text end 87.11 new text begin modification of a payment agreement. new text end 87.12     new text begin (b) A customer's appeal must be filed with the commission no later than seven new text end 87.13 new text begin working days after the customer's receipt of a personally served disconnection notice, or new text end 87.14 new text begin within ten working days after the utility has deposited a first class mail notice. If no new text end 87.15 new text begin disconnection notice has been issued, an appeal may be filed at any time. new text end 87.16     new text begin (c) The commission must determine all customer appeals on an informal basis, new text end 87.17 new text begin within 30 calendar days of receipt of a customer's written appeal. In making its new text end 87.18 new text begin determination, the commission must consider one or more of the factors in subdivision 6, new text end 87.19 new text begin paragraph (a), clauses (2) and (3). new text end 87.20     new text begin (d) Notwithstanding any other law, following an appeals decision adverse to the new text end 87.21 new text begin customer, a utility may not disconnect utility heating service for seven working days new text end 87.22 new text begin after the utility has personally served a disconnection notice, or for ten working days new text end 87.23 new text begin after the utility has deposited a first class mail notice. The notice must contain, in new text end 87.24 new text begin easy-to-understand language, the date on or after which disconnection will occur, the new text end 87.25 new text begin reason for disconnection, and ways to avoid disconnection. new text end 87.26     new text begin Subd. 9. new text end new text begin Utility appeals. new text end new text begin A utility may file an appeal of the commission's informal new text end 87.27 new text begin determination under subdivision 8 within 14 working days after it is issued. An appeal new text end 87.28 new text begin must be in writing, on forms prescribed by the commission. A copy of the appeal and a new text end 87.29 new text begin commission-approved letter explaining that the customer may have service disconnected new text end 87.30 new text begin must be mailed by the utility to the local human services or social services agency and new text end 87.31 new text begin the local energy assistance provider on the same day as the utility mails its appeal to new text end 87.32 new text begin the commission. new text end 87.33     new text begin Subd. 10. new text end new text begin Reporting. new text end new text begin Annually on November 1, a utility must file with the new text end 87.34 new text begin commission a report specifying the number of utility heating service customers whose new text end 87.35 new text begin service is disconnected or remains disconnected as of October 1 and October 15. If new text end 88.1 new text begin customers remain disconnected on October 15, a utility must file a report each week new text end 88.2 new text begin between November 1 and the end of the cold weather period specifying: new text end 88.3     new text begin (1) the number of utility heating service customers that are or remain disconnected new text end 88.4 new text begin from service; and new text end 88.5     new text begin (2) the number of utility heating service customers that are reconnected to service new text end 88.6 new text begin each week. The utility may discontinue weekly reporting if the number of utility heating new text end 88.7 new text begin service customers that are or remain disconnected reaches zero before the end of the new text end 88.8 new text begin cold weather period. new text end 88.9    Sec. 4. Minnesota Statutes 2006, section 216B.097, subdivision 1, is amended to read: 88.10    Subdivision 1. Application; notice to residential customer. (a) A municipal utility 88.11or a cooperative electric association must not disconnect new text begin and must reconnect new text end the utility 88.12service of a residential customer during the period between October 15 and April 15 if 88.13the disconnection affects the primary heat source for the residential unit when new text begin and all of new text end 88.14the following conditions are met: 88.15    (1) the customer has declared inability to pay on forms provided by the utility. For 88.16the purposes of this clause, a customer that is receiving energy assistance is deemed 88.17to have demonstrated an inability to pay; 88.18    (2) The household income of the customer is less than new text begin at or below new text end 50 percent of the 88.19state median new text begin household new text end income; new text begin . A municipal utility or cooperative electric association new text end 88.20 new text begin utility may (i) verify income on forms it provides or (ii) obtain new text end 88.21    (3) verification of income may be conducted by new text begin from new text end the local energy assistance 88.22provider or the utility, unless the new text begin . A new text end customer is new text begin deemed new text end automatically eligible for new text begin to meet new text end 88.23 new text begin the income requirements of this clause new text end protection against disconnection as a recipient of new text begin new text end 88.24 new text begin if the customer receives new text end any form of public assistance, including energy assistance new text begin , new text end that 88.25uses new text begin an new text end income eligibility in an amount new text begin threshold set new text end at or below the income eligibility in 88.26clause (2); new text begin 50 percent of the state median household income. new text end 88.27    (4) new text begin (2) new text end A customer whose account is current for the billing period immediately prior 88.28to October 15 or who, at any time, enters into new text begin and makes reasonably timely payments new text end 88.29 new text begin under new text end a payment schedule new text begin agreement new text end that considers the financial resources of the 88.30household and is reasonably current with payments under the schedule; and new text begin . new text end 88.31    (5) the new text begin (3) A new text end customer receives referrals to energy assistance programs, 88.32weatherization, conservation, or other programs likely to reduce the customer's energy 88.33bills. 89.1    (b) A municipal utility or a cooperative electric association must, between August 89.215 and October 15 of each year, notify all residential customers of the provisions of this 89.3section. 89.4    Sec. 5. Minnesota Statutes 2006, section 216B.097, subdivision 3, is amended to read: 89.5    Subd. 3. Restrictions if disconnection necessary. (a) If a residential customer must 89.6be involuntarily disconnected between October 15 and April 15 for failure to comply with 89.7the provisions of subdivision 1, the disconnection must not occur new text begin : new text end 89.8     new text begin (1) new text end on a Friday or on the day before a holiday new text begin , unless the customer declines to enter new text end 89.9 new text begin into a payment agreement offered that day in person or via personal contact by telephone new text end 89.10 new text begin by a municipal utility or cooperative electric association; new text end 89.11     new text begin (2) on a weekend, holiday, or the day before a holiday; new text end 89.12     new text begin (3) when utility offices are closed; or new text end 89.13     new text begin (4) after the close of business on a day when disconnection is permitted, unless new text end 89.14 new text begin a field representative of a municipal utility or cooperative electric association who is new text end 89.15 new text begin authorized to enter into a payment agreement, accept payment, and continue service, new text end 89.16 new text begin offers a payment agreement to the customer new text end . 89.17Further, the disconnection must not occur until at least 20 days after the notice required 89.18in subdivision 2 has been mailed to the customer or 15 days after the notice has been 89.19personally delivered to the customer. 89.20    (b) If a customer does not respond to a disconnection notice, the customer must 89.21not be disconnected until the utility investigates whether the residential unit is actually 89.22occupied. If the unit is found to be occupied, the utility must immediately inform the 89.23occupant of the provisions of this section. If the unit is unoccupied, the utility must give 89.24seven days' written notice of the proposed disconnection to the local energy assistance 89.25provider before making a disconnection. 89.26    (c) If, prior to disconnection, a customer appeals a notice of involuntary 89.27disconnection, as provided by the utility's established appeal procedure, the utility must 89.28not disconnect until the appeal is resolved. 89.29    Sec. 6. Minnesota Statutes 2006, section 216B.098, subdivision 4, is amended to read: 89.30    Subd. 4. Undercharges. new text begin (a) new text end A utility shall offer a payment agreement to customers 89.31who have been undercharged if no culpable conduct by the customer or resident of 89.32the customer's household caused the undercharge. The agreement must cover a period 89.33equal to the time over which the undercharge occurred or a different time period that is 89.34mutually agreeable to the customer and the utility new text begin , except that the duration of a payment new text end 90.1 new text begin agreement offered by a utility to a customer whose household income is at or below 50 new text end 90.2 new text begin percent of state median household income must consider the financial circumstances of new text end 90.3 new text begin the customer's household new text end . 90.4     new text begin (b) new text end No interest or delinquency fee may be charged under this new text begin as part of an new text end 90.5 new text begin undercharge new text end agreement new text begin under this subdivision new text end . 90.6     new text begin (c) If a customer inquiry or complaint results in the utility's discovery of the new text end 90.7 new text begin undercharge, the utility may bill for undercharges incurred after the date of the inquiry new text end 90.8 new text begin or complaint only if the utility began investigating the inquiry or complaint within a new text end 90.9 new text begin reasonable time after when it was made. new text end 90.10    Sec. 7. Minnesota Statutes 2006, section 216B.16, subdivision 10, is amended to read: 90.11    Subd. 10. Intervenor payment new text begin compensation new text end . new text begin (a) An organization or individual new text end 90.12 new text begin granted formal intervenor status by the commission is eligible to receive compensation. new text end 90.13     new text begin (b) new text end The commission may order a utility to pay all or a portion of a party's intervention 90.14 new text begin compensate all or part of an eligible intervenor's reasonable new text end costs not to exceed $20,000 90.15per intervenor in any proceeding new text begin of participation in a general rate case that comes before new text end 90.16 new text begin the commission new text end when the commission finds that the intervenor has materially assisted 90.17the commission's deliberation and the intervenor has insufficient financial resources to 90.18afford the costs of intervention new text begin and when a lack of compensation would present financial new text end 90.19 new text begin hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor new text end 90.20 new text begin in any proceeding. For the purpose of this subdivision, "materially assisted" means that new text end 90.21 new text begin the intervenor's participation and presentation was useful and seriously considered, or new text end 90.22 new text begin otherwise substantially contributed to the commission's deliberations in the proceeding. new text end 90.23     new text begin (c) In determining whether an intervenor has materially assisted the commission's new text end 90.24 new text begin deliberation, the commission must consider, at a minimum, whether: new text end 90.25     new text begin (1) the intervenor represented an interest that would not otherwise have been new text end 90.26 new text begin adequately represented; new text end 90.27     new text begin (2) the evidence or arguments presented or the positions taken by the intervenor new text end 90.28 new text begin were an important factor in producing a fair decision; new text end 90.29     new text begin (3) the intervenor's position promoted a public purpose or policy; new text end 90.30     new text begin (4) the evidence presented, arguments made, issues raised, or positions taken by the new text end 90.31 new text begin intervenor would not have been a part of the record without the intervenor's participation; new text end 90.32 new text begin and new text end 90.33     new text begin (5) the administrative law judge or the commission adopted, in whole or in part, a new text end 90.34 new text begin position advocated by the intervenor. new text end 91.1     new text begin (d) In determining whether the absence of compensation would present financial new text end 91.2 new text begin hardship to the intervenor, the commission must consider: new text end 91.3     new text begin (1) whether the costs presented in the intervenor's claim reflect reasonable fees for new text end 91.4 new text begin attorneys and expert witnesses and other reasonable costs; and new text end 91.5     new text begin (2) the ratio between the costs of intervention and the intervenor's unrestricted funds. new text end 91.6     new text begin (e) An intervenor seeking compensation must file a request and an affidavit of service new text end 91.7 new text begin with the commission, and serve a copy of the request on each party to the proceeding. new text end 91.8 new text begin The request must be filed 30 days after the later of (1) the expiration of the period within new text end 91.9 new text begin which a petition for rehearing, amendment, vacation, reconsideration, or reargument must new text end 91.10 new text begin be filed or (2) the date the commission issues an order following rehearing, amendment, new text end 91.11 new text begin vacation, reconsideration, or reargument. new text end 91.12     new text begin (f) The compensation request must include: new text end 91.13     new text begin (1) the name and address of the intervenor or representative of the nonprofit new text end 91.14 new text begin organization the intervenor is representing; new text end 91.15     new text begin (2) if necessary, proof of the organization's nonprofit, tax-exempt status; new text end 91.16     new text begin (3) the name and docket number of the proceeding for which compensation is new text end 91.17 new text begin requested; new text end 91.18     new text begin (4) a list of actual annual revenues and expenses of the organization the intervenor is new text end 91.19 new text begin representing for the preceding year and projected revenues, revenue sources, and expenses new text end 91.20 new text begin for the current year; new text end 91.21     new text begin (5) the organization's balance sheet for the preceding year and a current monthly new text end 91.22 new text begin balance sheet; new text end 91.23     new text begin (6) an itemization of intervenor costs and the total compensation request; and new text end 91.24     new text begin (7) a narrative explaining why additional organizational funds cannot be devoted new text end 91.25 new text begin to the intervention. new text end 91.26     new text begin (g) Within 30 days after service of the request for compensation, a party may file new text end 91.27 new text begin a response, together with an affidavit of service, with the commission. A copy of the new text end 91.28 new text begin response must be served on the intervenor and all other parties to the proceeding. new text end 91.29     new text begin (h) Within 15 days after the response is filed, the intervenor may file a reply with new text end 91.30 new text begin the commission. A copy of the reply and an affidavit of service must be served on all new text end 91.31 new text begin other parties to the proceeding. new text end 91.32     new text begin (i) If additional costs are incurred as a result of additional proceedings following new text end 91.33 new text begin the commission's initial order, the intervenor may file an amended request within 30 new text end 91.34 new text begin days after the commission issues an amended order. Paragraphs (e) to (h) apply to an new text end 91.35 new text begin amended request. new text end 92.1     new text begin (j) The commission must issue a decision on intervenor compensation within 60 new text end 92.2 new text begin days of a filing by an intervenor. new text end 92.3     new text begin (k) A party may request reconsideration of the commission's compensation decision new text end 92.4 new text begin within 30 days of the decision. new text end 92.5     new text begin (l) If the commission issues an order requiring payment of intervenor compensation, new text end 92.6 new text begin the utility that was the subject of the proceeding must pay the compensation to the new text end 92.7 new text begin intervenor, and file with the commission proof of payment, within 30 days after the later new text end 92.8 new text begin of (1) the expiration of the period within which a petition for reconsideration of the new text end 92.9 new text begin commission's compensation decision must be filed or (2) the date the commission issues new text end 92.10 new text begin an order following reconsideration of its order on intervenor compensation new text end . 92.11    Sec. 8. Minnesota Statutes 2006, section 216B.16, subdivision 15, is amended to read: 92.12    Subd. 15. Low-income new text begin affordability new text end programs. (a) The commission may new text begin must new text end 92.13consider ability to pay as a factor in setting utility rates and may establish new text begin affordability new text end 92.14programs for low-income residential ratepayers in order to ensure affordable, reliable, and 92.15continuous service to low-income utility customers. new text begin By September 1, 2007, a public new text end 92.16 new text begin utility serving low-income residential ratepayers who use natural gas for heating must new text end 92.17 new text begin file an affordability program with the commission. For purposes of this subdivision, new text end 92.18 new text begin "low-income residential ratepayers" means ratepayers who receive energy assistance from new text end 92.19 new text begin the low-income home energy assistance program (LIHEAP). new text end 92.20    (b) The purpose of the low-income programs is to new text begin Any affordability program the new text end 92.21 new text begin commission orders a utility to implement must: new text end 92.22     new text begin (1) new text end lower the percentage of income that new text begin participating new text end low-income households devote 92.23to energy bills, to new text begin ; new text end 92.24     new text begin (2) new text end increase new text begin participating new text end customer payments, and to new text begin over time by increasing the new text end 92.25 new text begin frequency of payments; new text end 92.26     new text begin (3) decrease or eliminate participating customer arrears; new text end 92.27     new text begin (4) new text end lower the utility costs associated with customer account collection activities new text begin ; and new text end 92.28     new text begin (5) coordinate the program with other available low-income bill payment assistance new text end 92.29 new text begin and conservation resources new text end . 92.30In ordering low-income new text begin affordability new text end programs, the commission may require public 92.31utilities to file program evaluations, including the coordination of other available 92.32low-income bill payment and conservation resources and new text begin that measure new text end the effect of the 92.33 new text begin affordability new text end program on: 92.34    (1) reducing the percentage of income that participating households devote to energy 92.35bills; 93.1    (2) service disconnections; and 93.2    (3) new text begin frequency of new text end customer payment behavior new text begin payments new text end , utility collection costs, 93.3arrearages, and bad debt. 93.4     new text begin (c) The commission must issue orders necessary to implement, administer, and new text end 93.5 new text begin evaluate affordability programs, and to allow a utility to recover program costs, including new text end 93.6 new text begin administrative costs, on a timely basis. The commission may not allow a utility to recover new text end 93.7 new text begin administrative costs, excluding start-up costs, in excess of five percent of total program new text end 93.8 new text begin costs, or program evaluation costs in excess of two percent of total program costs. The new text end 93.9 new text begin commission must permit deferred accounting, with carrying costs, for recovery of program new text end 93.10 new text begin costs incurred during the period between general rate cases. new text end 93.11     new text begin (d) Public utilities may use information collected or created for the purpose of new text end 93.12 new text begin administering energy assistance to administer affordability programs. new text end 93.13    Sec. 9. new text begin RULES; INSTRUCTION TO COMMISSION AND REVISOR. new text end 93.14     new text begin Subdivision 1. new text end new text begin Public Utilities Commission. new text end new text begin The commission must amend new text end 93.15 new text begin Minnesota Rules, chapters 7820 and 7831, to conform with the provisions of Minnesota new text end 93.16 new text begin Statutes, section 216B.096, as authorized under Minnesota Statutes, section 14.388, new text end 93.17 new text begin subdivision 1, clause (3). new text end 93.18     new text begin Subd. 2. new text end new text begin Revisor of statutes. new text end new text begin The revisor of statutes shall change the reference from new text end 93.19 new text begin "216B.095" to "216B.096" wherever found in Minnesota Rules, chapter 7820. new text end 93.20    Sec. 10. new text begin REPEALER. new text end 93.21 new text begin (a) new text end new text begin Minnesota Rules, parts 7831.0100; 7831.0200; 7831.0300; 7831.0400; new text end 93.22 new text begin 7831.0500; 7831.0600; 7831.0700; and 7831.0800, new text end new text begin are repealed as they pertain to a new text end 93.23 new text begin general rate case for a gas or electric utility held before the commission. new text end 93.24 new text begin (b) new text end new text begin Minnesota Statutes 2006, section 216B.095, new text end new text begin is repealed. new text end