1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 20961.2A bill for an act1.3relating to state government; appropriating money for environmental, natural 1.4resources, and energy purposes; establishing and modifying certain programs; 1.5modifying rulemaking authority; providing for accounts, assessments, and fees;1.6amending Minnesota Statutes 2006, sections 84.025, subdivision 9; 84.026, 1.7subdivision 1; 84.027, by adding a subdivision; 84.0855, subdivisions 1, 2; 1.884.780; 84.922, subdivisions 1a, 5; 84.927, subdivision 2; 84D.03, subdivision 1.91; 84D.12, subdivisions 1, 3; 84D.13, subdivision 7; 85.32, subdivision 1; 1.1086B.415, subdivisions 1, 2, 3, 4, 5, 7; 86B.706, subdivision 2; 89A.11; 93.0015, 1.11subdivision 3; 97A.045, by adding a subdivision; 97A.055, subdivision 4; 1.1297A.065, by adding a subdivision; 97A.405, subdivision 2; 97A.411, subdivision 1.131; 97A.451, subdivision 3a; 97A.465, by adding subdivisions; 97A.473, 1.14subdivisions 3, 5; 97A.475, subdivisions 3, 7, 11, 12, by adding a subdivision; 1.1597B.601, subdivision 3; 97B.715, subdivision 1; 97B.801; 97C.081, subdivision 1.163; 97C.355, subdivision 2; 116C.779, subdivision 1; 216B.812, subdivisions 1, 1.172; 216C.051, subdivision 9; Laws 2003, chapter 128, article 1, section 169; 1.18proposing coding for new law in Minnesota Statutes, chapters 84; 84D; 89; 103F; 1.19144; 216B; 216C; 325E; repealing Minnesota Statutes 2006, section 93.2236.1.20May 4, 20071.21The Honorable James P. Metzen1.22President of the Senate1.23The Honorable Margaret Anderson Kelliher1.24Speaker of the House of Representatives1.25We, the undersigned conferees for S.F. No. 2096 report that we have agreed upon 1.26the items in dispute and recommend as follows:1.27That the House recede from its amendments and that S.F. No. 2096 be further 1.28amended as follows:1.29Delete everything after the enacting clause and insert:1.30"ARTICLE 11.31ENVIRONMENT AND NATURAL RESOURCES

1.32Section 1.  SUMMARY OF APPROPRIATIONS.

1.33    The amounts shown in this section summarize direct appropriations, by fund, made 1.34in this article.

2.120082009Total2.2General$177,046,000$126,148,000$303,194,0002.32.4State Government Special Revenue48,00048,00096,0002.5Environmental62,425,00062,622,000125,047,0002.6Natural Resources82,211,00082,301,000164,512,0002.7Game and Fish89,988,00091,947,000181,935,0002.8Remediation11,116,00011,186,00022,302,0002.9Permanent School200,000200,000400,0002.10Total$423,034,000$374,452,000$797,486,000

2.11Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.

2.12    The sums shown in the columns marked "Appropriations" are appropriated to the 2.13agencies and for the purposes specified in this article. The appropriations are from the 2.14general fund, or another named fund, and are available for the fiscal years indicated 2.15for each purpose. The figures "2008" and "2009" used in this article mean that the 2.16appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.17June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.18year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 2.19year ending June 30, 2007, are effective the day following final enactment.

2.20APPROPRIATIONS2.21Available for the Year2.22Ending June 302.2320082009

2.24Sec. 3. POLLUTION CONTROL AGENCY

2.25Subdivision 1.Total Appropriation$117,782,000$86,388,000

2.26Appropriations by Fund2.27200820092.28General44,293,00012,632,0002.292.30State Government Special Revenue48,00048,0002.31Environmental62,425,00062,622,0002.32Remediation11,016,00011,086,000

2.33The amounts that may be spent for each 2.34purpose are specified in the following 2.35subdivisions.

2.36Subd. 2.Water58,053,00026,930,000

2.37Appropriations by Fund2.38General38,656,0007,603,0003.13.2State Government Special Revenue48,00048,0003.3Environmental19,349,00019,279,000

3.4$2,348,000 the first year and $2,348,000 3.5the second year are for the clean water 3.6partnership program. Any balance remaining 3.7in the first year does not cancel and 3.8is available for the second year. This 3.9appropriation may be used for grants to 3.10local units of government for the purpose 3.11of restoring impaired waters listed under 3.12section 303(d) of the federal Clean Water 3.13Act in accordance with adopted total 3.14maximum daily loads (TMDLs), including 3.15implementation of approved clean water 3.16partnership diagnostic study work plans that 3.17will assist in restoration of impaired waters, 3.18in accordance with Minnesota Statutes, 3.19chapter 114D.3.20$2,324,000 the first year and $2,324,000 the 3.21second year must be distributed as grants to 3.22delegated counties to administer the county 3.23feedlot program. Distribution of funds 3.24must be as provided in Laws 2005, First 3.25Special Session chapter 1, article 2, section 3.262, subdivision 2. The commissioner, in 3.27consultation with the Minnesota Association 3.28of County Feedlot Officers executive team, 3.29may use up to five percent of the annual 3.30appropriation for initiatives to enhance 3.31existing delegated county feedlot programs, 3.32information and education, or technical 3.33assistance to reduce feedlot-related pollution 3.34hazards. Any money remaining after the first 3.35year is available for the second year.4.1$335,000 the first year and $335,000 the 4.2second year are for community technical 4.3assistance and education, including grants 4.4and technical assistance to communities for 4.5local and basinwide water quality protection.4.6$405,000 the first year and $405,000 the 4.7second year are for individual sewage 4.8treatment system (ISTS) administration and 4.9grants. Of this amount, $86,000 each year 4.10is for assistance to counties through grants 4.11for ISTS program administration. Any 4.12unexpended balance in the first year does not 4.13cancel but is available in the second year.4.14$480,000 the first year and $480,000 the 4.15second year are from the environmental 4.16fund to address the need for continued 4.17increased activity in the areas of new 4.18technology review, technical assistance 4.19for local governments, and enforcement 4.20under Minnesota Statutes, sections 115.55 4.21to 115.58, and to complete the requirements 4.22of Laws 2003, chapter 128, article 1, section 4.23165. Of this amount, $48,000 each year is for 4.24administration of individual septic tank fees.4.25$31,009,000 the first year is to implement 4.26the requirements of Minnesota Statutes, 4.27chapter 114D. Of this amount, $12,634,000 4.28is for completion of 20 percent of the needed 4.29statewide assessments of surface water 4.30quality and trends and $18,000,000 is to 4.31develop TMDL's and TMDL implementation 4.32plans for waters listed on the United States 4.33Environmental Protection Agency approved 4.34impaired waters list in accordance with 4.35Minnesota Statutes, chapter 114D. The 4.36agency shall complete an average of ten 5.1percent of the TMDL's each year over the 5.2biennium. The department shall monitor 5.3and analyze endocrine disruptors in surface 5.4waters in at least 20 additional sites. The data 5.5must be placed on the agency's Web site.5.6$1,035,000 the first year and $1,035,000 5.7the second year are from the environmental 5.8fund to provide regulatory services to the 5.9ethanol, mining, and other developing 5.10economic sectors. Priority shall be for 5.11permitting new and emerging bioenergy crop 5.12utilization technologies. This is a onetime 5.13appropriation.5.14$88,000 the first year is for the endocrine 5.15disruptors report required to be completed 5.16under this article.5.17The commissioner shall transfer the 5.18amount necessary, up to $600,000, from 5.19the remediation fund to the commissioner 5.20of health to conduct an evaluation under 5.21Minnesota Statutes, section 115B.17, of point 5.22of use water treatment units at removing 5.23perfluorooctanoic acid, perfluorooctane 5.24sulfonate, and perfluorobutanoic acid from 5.25known concentrations of these compounds 5.26in drinking water. The evaluation shall be 5.27completed by December 31, 2007, and the 5.28commissioner of health may contract for 5.29services to complete the evaluation.5.30By January 15, 2008, the commissioner shall 5.31amend agency rules and, where legislative 5.32action is necessary, provide recommendations 5.33to the house of representatives and senate 5.34divisions on environmental finance on 5.35water and air fee changes that will result in 5.36revenue to the environmental fund to pay for 6.1regulatory services to the ethanol, mining, 6.2and other developing economic sectors.6.3Notwithstanding Minnesota Statutes, section 6.416A.28, the appropriations encumbered 6.5under contract on or before June 30, 2009, 6.6for clean water partnership, individual 6.7sewage treatment systems (ISTS), Minnesota 6.8River, total maximum daily loads (TMDL's), 6.9stormwater contracts or grants, and local and 6.10basinwide water quality protection contracts 6.11or grants in this subdivision are available 6.12until June 30, 2011.

6.13Subd. 3.Air11,003,00011,270,000

6.14Appropriations by Fund6.15Environmental11,003,00011,270,000

6.16Up to $150,000 the first year and $150,000 6.17the second year may be transferred from the 6.18environmental fund to the small business 6.19environmental improvement loan account 6.20established in Minnesota Statutes, section 6.21116.993.6.22$200,000 the first year and $200,000 the 6.23second year are from the environmental fund 6.24for a monitoring program under Minnesota 6.25Statutes, section 116.454.6.26$125,000 the first year and $125,000 the 6.27second year are from the environmental fund 6.28for monitoring ambient air for hazardous 6.29pollutants in the metropolitan area.6.30$1,140,000 the first year and $1,140,000 6.31the second year are from the environmental 6.32fund to provide regulatory services to the 6.33ethanol, mining, and other developing 6.34economic sectors. Priority shall be for 6.35permitting new and emerging bioenergy crop 7.1utilization technologies. This is a onetime 7.2appropriation.

7.3Subd. 4.Land19,081,00019,151,000

7.4Appropriations by Fund7.5General1,000,0001,000,0007.6Environmental7,065,0007,065,0007.7Remediation11,016,00011,086,000

7.8All money for environmental response, 7.9compensation, and compliance in the 7.10remediation fund not otherwise appropriated 7.11is appropriated to the commissioners of the 7.12Pollution Control Agency and agriculture 7.13for purposes of Minnesota Statutes, section 7.14115B.20, subdivision 2, clauses (1), (2), 7.15(3), (6), and (7). At the beginning of each 7.16fiscal year, the two commissioners shall 7.17jointly submit an annual spending plan 7.18to the commissioner of finance and the 7.19house and senate chairs of environment and 7.20natural resources finance that maximizes the 7.21utilization of resources and appropriately 7.22allocates the money between the two 7.23departments. This appropriation is available 7.24until June 30, 2009.7.25$3,616,000 the first year and $3,616,000 the 7.26second year are from the petroleum tank fund 7.27to be transferred to the remediation fund for 7.28purposes of the leaking underground storage 7.29tank program to protect the land.7.30$252,000 the first year and $252,000 the 7.31second year are from the remediation fund to 7.32be transferred to the Department of Health for 7.33private water supply monitoring and health 7.34assessment costs in areas contaminated 7.35by unpermitted mixed municipal solid 7.36waste disposal facilities and drinking water 8.1advisories and public information activities 8.2for areas contaminated by hazardous releases.8.3$1,000,000 each year is for environmental 8.4health tracking and biomonitoring. Of this 8.5amount, $900,000 each year is for transfer 8.6to the Department of Health. The base 8.7appropriation for this program for fiscal year 8.82010 and later is $500,000.

8.9Subd. 5.Multimedia5,872,0005,215,000

8.10Appropriations by Fund8.11General3,006,0002,349,0008.12Environmental2,866,0002,866,000

8.13$825,000 the first year and $825,000 the 8.14second year are from the environmental 8.15fund to provide regulatory services to the 8.16ethanol, mining, and other developing 8.17economic sectors. Priority shall be for 8.18permitting new and emerging bioenergy crop 8.19utilization technologies. This is a onetime 8.20appropriation.8.21$400,000 the first year is a onetime 8.22appropriation for a grant to the Koochiching 8.23Economic Development Authority for 8.24a feasibility study for a plasma torch 8.25gasification facility that converts municipal 8.26solid waste into energy and slag.8.27$300,000 the first year is for the biomass 8.28gasification facilities air emissions study for 8.29the purpose of fully characterizing the air 8.30emissions exerted from biomass gasification 8.31facilities across a range of feedstocks. This 8.32is a onetime appropriation.8.33Notwithstanding Minnesota Statutes, section 8.3416A.28, the appropriations encumbered 8.35under contract on or before June 30, 2009, for 9.1total maximum daily load (TMDL) contracts 9.2or grants are available until June 30, 2011.

9.3Subd. 6.Environmental Assistance22,142,00022,142,000

9.4This appropriation is from the environmental 9.5fund.9.6$14,000,000 each year is from the 9.7environmental fund for SCORE block grants 9.8to counties.9.9Any unencumbered grant and loan balances 9.10in the first year do not cancel but are available 9.11for grants and loans in the second year.9.12All money deposited in the environmental 9.13fund for the metropolitan solid waste 9.14landfill fee in accordance with Minnesota 9.15Statutes, section 473.843, and not otherwise 9.16appropriated, is appropriated for the purposes 9.17of Minnesota Statutes, section 473.844.9.18$119,000 the first year and $119,000 the 9.19second year are for environmental assistance 9.20grants or loans under Minnesota Statutes, 9.21section 115A.0716.9.22$1,200,000 the first year and $1,200,000 9.23the second year are from the environmental 9.24fund first to retrofit school buses statewide, 9.25including buses for preschool children, 9.26and, after completion, secondly for loans to 9.27small trucking firms to install equipment to 9.28reduce fuel consumption. This is a onetime 9.29appropriation.9.30Notwithstanding Minnesota Statutes, section 9.3116A.28, the appropriations encumbered 9.32under contract on or before June 30, 9.332009, for environmental assistance grants 9.34awarded under Minnesota Statutes, section 9.35115A.0716, and for technical and research 9.36assistance under Minnesota Statutes, 10.1section 115A.152, technical assistance 10.2under Minnesota Statutes, section 115A.52, 10.3and pollution prevention assistance under 10.4Minnesota Statutes, section 115D.04, are 10.5available until June 30, 2011.

10.6Subd. 7.Administrative Support1,631,0001,680,000

10.7The commissioner may transfer money from 10.8the environmental fund to the remediation 10.9fund as necessary for the purposes of the 10.10remediation fund under Minnesota Statutes, 10.11section 116.155, subdivision 2.

10.12Sec. 4. NATURAL RESOURCES

10.13Subdivision 1.Total Appropriation$255,077,000$252,416,000

10.14Appropriations by Fund10.152008200910.16General87,775,00083,066,00010.17Natural Resources 77,014,00077,103,00010.18Game and Fish89,988,00091,947,00010.19Remediation100,000100,00010.20Permanent School200,000200,000

10.21The amounts that may be spent for each 10.22purpose are specified in the following 10.23subdivisions.

10.2410.25Subd. 2.Land and Mineral Resources Management11,747,00011,272,000

10.26Appropriations by Fund10.27General6,633,0006,230,00010.28Natural Resources3,551,0003,447,00010.29Game and Fish1,363,0001,395,00010.30Permanent School200,000200,000

10.31$475,000 the first year and $475,000 the 10.32second year are for iron ore cooperative 10.33research. Of this amount, $200,000 each year 10.34is from the minerals management account in 10.35the natural resources fund and $275,000 each 10.36year is from the general fund. $237,500 the 10.37first year and $237,500 the second year are 10.38available only as matched by $1 of nonstate 11.1money for each $1 of state money. The 11.2match may be cash or in-kind.11.3$86,000 the first year and $86,000 the 11.4second year are for minerals cooperative 11.5environmental research, of which $43,000 11.6the first year and $43,000 the second year are 11.7available only as matched by $1 of nonstate 11.8money for each $1 of state money. The 11.9match may be cash or in-kind.11.10$2,800,000 the first year and $2,696,000 11.11the second year are from the minerals 11.12management account in the natural resources 11.13fund for use as provided in Minnesota 11.14Statutes, section 93.2236, paragraph (c).11.15$200,000 the first year and $200,000 the 11.16second year are from the state forest suspense 11.17account in the permanent school fund to 11.18accelerate land exchanges, land sales, and 11.19commercial leasing of school trust lands and 11.20to identify, evaluate, and lease construction 11.21aggregate located on school trust lands. This 11.22appropriation is to be used for securing 11.23maximum long-term economic return 11.24from the school trust lands consistent with 11.25fiduciary responsibilities and sound natural 11.26resources conservation and management 11.27principles.11.28$15,000 the first year is for a report 11.29by February 1, 2008, to the house and 11.30senate committees with jurisdiction over 11.31environment and natural resources on 11.32proposed minimum legal and conservation 11.33standards that could be applied to 11.34conservation easements acquired with public 11.35money.12.1$1,201,000 the first year and $701,000 the 12.2second year are to support the land records 12.3management system. Of this amount, 12.4$326,000 the first year and $326,000 the 12.5second year are from the game and fish fund 12.6and $375,000 the first year and $375,000 the 12.7second year are from the natural resources 12.8fund. The commissioner must report to 12.9the legislative chairs on environmental 12.10finance on the outcomes of the land records 12.11management support.12.12$500,000 the first year and $500,000 the 12.13second year are for land asset management. 12.14This is a onetime appropriation.

12.15Subd. 3.Water Resources Management15,051,00012,522,000

12.16Appropriations by Fund12.17General14,771,00012,242,00012.18Natural Resources280,000280,000

12.19$310,000 the first year and $310,000 the 12.20second year are for grants associated with the 12.21implementation of the Red River mediation 12.22agreement.12.23$65,000 the first year and $65,000 the 12.24second year are for a grant to the Mississippi 12.25Headwaters Board for up to 50 percent of 12.26the cost of implementing the comprehensive 12.27plan for the upper Mississippi within areas 12.28under its jurisdiction.12.29$5,000 the first year and $5,000 the second 12.30year are for payment to the Leech Lake Band 12.31of Chippewa Indians to implement its portion 12.32of the comprehensive plan for the upper 12.33Mississippi.12.34$200,000 the first year and $200,000 the 12.35second year are for the construction of ring 12.36dikes under Minnesota Statutes, section 13.1103F.161. The ring dikes may be publicly 13.2or privately owned. If the appropriation in 13.3either year is insufficient, the appropriation 13.4in the other year is available for it. The base 13.5appropriation for fiscal year 2010 and later 13.6is $125,000.13.7$2,250,000 the first year is to support the 13.8identification of impaired waters and develop 13.9plans to address those impairments, as 13.10required by the federal Clean Water Act, in 13.11accordance with Minnesota Statutes, chapter 13.12114D. This is a onetime appropriation.13.13By January 15, 2008, the commissioner shall 13.14commence rulemaking under Minnesota 13.15Statutes, chapter 14, to update the minimum 13.16shoreland standards in Minnesota Rules, 13.17chapter 6120.13.18$60,000 the first year is a onetime 13.19appropriation to the commissioner of natural 13.20resources to conduct a feasibility study 13.21in conjunction with U.S. Army Corps of 13.22Engineers on the foundation and hydraulics 13.23of the Rapidan Dam in Blue Earth County. 13.24This appropriation must be equally matched 13.25by Blue Earth County, and is available until 13.26expended.13.27$500,000 in fiscal year 2008 is for addressing 13.28surface and groundwater issues related to 13.29the development and expansion of ethanol 13.30production.

13.31Subd. 4.Forest Management44,495,00043,393,000

13.32Appropriations by Fund13.33General24,755,00024,836,00013.34Natural Resources19,483,00018,293,00013.35Game and Fish257,000264,000

14.1$7,217,000 the first year and $7,217,000 14.2the second year are for prevention, 14.3presuppression, and suppression costs of 14.4emergency firefighting and other costs 14.5incurred under Minnesota Statutes, section 14.688.12. If the appropriation for either 14.7year is insufficient to cover all costs of 14.8presuppression and suppression, the amount 14.9necessary to pay for these costs during the 14.10biennium is appropriated from the general 14.11fund.14.12By November 15 of each year, the 14.13commissioner of natural resources shall 14.14submit a report to the chairs of the house 14.15and senate committees and divisions having 14.16jurisdiction over environment and natural 14.17resources finance, identifying all firefighting 14.18costs incurred and reimbursements received 14.19in the prior fiscal year. These appropriations 14.20may not be transferred. Any reimbursement 14.21of firefighting expenditures made to the 14.22commissioner from any source other than 14.23federal mobilizations shall be deposited into 14.24the general fund.14.25$17,983,000 the first year and $18,293,000 14.26the second year are from the forest 14.27management investment account in the 14.28natural resources fund for only the purposes 14.29specified in Minnesota Statutes, section 14.3089.039, subdivision 2.14.31Of this amount:14.32(1) $750,000 each year is for additional staff 14.33to enhance timber sales;14.34(2) $1,000,000 each year is for forest 14.35improvements;15.1(3) $1,100,000 each year is for forest road 15.2maintenance;15.3(4) $600,000 each year is for the ecological 15.4classification system on state forest lands;15.5(5) $350,000 each year is for the prevention 15.6of invasive species on state forest lands; and15.7(6) $400,000 each year is for the re-inventory 15.8of state forest lands.15.9Money for forest road maintenance is 15.10onetime.15.11$780,000 the first year and $780,000 the 15.12second year are for the Forest Resources 15.13Council for implementation of the 15.14Sustainable Forest Resources Act. 15.15$40,000 the first year is for the Forest 15.16Resources Council to provide a grant to 15.17the University of Minnesota to prepare a 15.18statewide plan to address the fragmentation 15.19and parcelization of large blocks of forest 15.20land in the state.15.21$200,000 in fiscal year 2008 is for a grant 15.22to the Forest Resources Research Advisory 15.23Committee to provide direction on research 15.24topics recommended by the governor's task 15.25force on the competitiveness of Minnesota's 15.26primary forest products industry.15.27$350,000 the first year and $350,000 the 15.28second year are for the FORIST timber 15.29management information system, other 15.30information systems, and for increased 15.31forestry management. The amount in the 15.32second year is also available in the first year.15.33$257,000 the first year and $264,000 the 15.34second year are from the game and fish 15.35fund to implement ecological classification 15.36systems (ECS) standards on forested 16.1landscapes. This appropriation is from 16.2revenue deposited in the game and fish fund 16.3under Minnesota Statutes, section 297A.94, 16.4paragraph (e), clause (1).16.5$110,000 the first year is to develop and 16.6implement a statewide information and 16.7education campaign regarding the statewide 16.8ban on the transport, storage, or use of 16.9nonapproved firewood on state-administered 16.10lands.16.11$1,500,000 the first year is from the forest 16.12management investment account in the 16.13natural resources fund for the purposes of 16.14section 157. This is a onetime appropriation.16.15$75,000 the first year is to the Forest 16.16Resources Council for a task force on 16.17forest protection and $75,000 the second 16.18year is appropriated to the commissioner 16.19for grants to cities, counties, townships, 16.20special recreation areas, and park and 16.21recreation boards in cities of the first class 16.22for the identification, removal, disposal, and 16.23replacement of dead or dying shade trees 16.24lost to forest pests or disease. For purposes 16.25of this section, "shade tree" means a woody 16.26perennial grown primarily for aesthetic or 16.27environmental purposes with minimal to 16.28residual timber value. The commissioner 16.29shall consult with municipalities; park and 16.30recreation boards in cities of the first class; 16.31nonprofit organizations; and other interested 16.32parties in developing eligibility criteria.16.33$200,000 in fiscal year 2008 is for a grant 16.34to the Natural Resources Research Institute 16.35for silvicultural research to improve the 16.36quality and quantity of timber fiber. The 17.1appropriation must be matched in the amount 17.2of $200,000 in cash or in-kind contributions 17.3from the forest products industry members of 17.4the Minnesota Forest Productivity Research 17.5Cooperative.17.6$1,000,000 the first year and $1,000,000 17.7the second year are to support additional 17.8technical and cost-share assistance to 17.9nonindustrial private forest (NIPF) 17.10landowners. The base appropriation in fiscal 17.11year 2010 and later is $500,000.17.12$200,000 the first year and $200,000 the 17.13second year are to address escalating 17.14land asset management demands, such as 17.15boundary disputes, access easements, and 17.16sale, exchange, and acquisition of forest 17.17lands.

17.18Subd. 5.Parks and Recreation Management35,324,00036,319,000

17.19Appropriations by Fund17.20General20,743,00021,283,00017.21Natural Resources14,581,00015,036,000

17.22$640,000 the first year and $640,000 the 17.23second year are from the water recreation 17.24account in the natural resources fund for state 17.25park water access projects.17.26$150,000 in the first year and $150,000 in the 17.27second year are for additional interpretative 17.28services.17.29$3,996,000 the first year and $3,996,000 the 17.30second year are from the natural resources 17.31fund for state park and recreation area 17.32operations. This appropriation is from the 17.33revenue deposited in the natural resources 17.34fund under Minnesota Statutes, section 17.35297A.94, paragraph (e), clause (2).18.1$10,000 in the first year is for payment 18.2of expenses of the Cuyuna Country State 18.3Recreation Area Citizens Advisory Council.18.4The appropriation in Laws 2003, chapter 18.5128, article 1, section 5, subdivision 6, from 18.6the water recreation account in the natural 18.7resources fund for a cooperative project with 18.8the United States Army Corps of Engineers 18.9to develop the Mississippi Whitewater Park 18.10is available until June 30, 2009. The project 18.11must be designed to prevent the spread of 18.12aquatic invasive species.18.13$500,000 the first year and $750,000 the 18.14second year are from the natural resources 18.15fund for increased park maintenance 18.16work, resource management projects, and 18.17conservation education for park users.

18.18Subd. 6.Trails and Waterways Management 30,257,00030,492,000

18.19Appropriations by Fund18.20General2,538,0002,568,00018.21Natural Resources25,600,00025,730,00018.22Game and Fish2,119,0002,194,000

18.23$8,424,000 the first year and $8,424,000 18.24the second year are from the snowmobile 18.25trails and enforcement account in the natural 18.26resources fund for snowmobile grants-in-aid. 18.27The additional money under this item may 18.28be used for new grant-in-aid trails. Any 18.29unencumbered balance does not cancel at the 18.30end of the first year and is available for the 18.31second year.18.32$1,175,000 the first year and $1,325,000 the 18.33second year are from the natural resources 18.34fund for off-highway vehicle grants-in-aid. 18.35Of this amount, $825,000 the first year and 18.36$1,075,000 the second year are from the 19.1all-terrain vehicle account; $150,000 each 19.2year is from the off-highway motorcycle 19.3account; and $200,000 the first year and 19.4$100,000 the second year are from the 19.5off-road vehicle account. Any unencumbered 19.6balance does not cancel at the end of the first 19.7year and is available for the second year.19.8$261,000 the first year and $261,000 the 19.9second year are from the water recreation 19.10account in the natural resources fund for a 19.11safe harbor program on Lake Superior.19.12$742,000 the first year and $760,000 19.13the second year are from the natural 19.14resources fund for state trail operations 19.15and maintenance. The money may be used 19.16for trail maintenance, signage, mapping, 19.17interpretation, native prairie restoration 19.18using best management practices, and 19.19maintenance of nonmotorized forest trails. 19.20This appropriation is from the revenue 19.21deposited in the natural resources fund 19.22under Minnesota Statutes, section 297A.94, 19.23paragraph (e), clause (2).19.24$655,000 the first year and $655,000 the 19.25second year are from the natural resources 19.26fund for trail grants to local units of 19.27government on land to be maintained for 19.28at least 20 years for the purposes of the 19.29grant. This appropriation is from the revenue 19.30deposited in the natural resources fund 19.31under Minnesota Statutes, section 297A.94, 19.32paragraph (e), clause (4).19.33$150,000 the first year and $150,000 the 19.34second year are from the all-terrain vehicle 19.35account for two all-terrain vehicle trail 19.36specialists to assist and consult with on 20.1all-terrain vehicle grant-in-aid education and 20.2training for sustainable trail development and 20.3maintenance, as well as providing training 20.4for public and private sector trail monitoring. 20.5The specialists may assist in the evaluation 20.6of grant-in-aid trail proposals, but not in the 20.7promotion of new trails.20.8$1,965,000 the first year and $2,040,000 20.9the second year are from the game and fish 20.10fund for expenditures on water access sites 20.11according to the requirements of the federal 20.12sport and fish restoration program.20.13Money appropriated under Laws 2005, First 20.14Special Session chapter 1, article 2, section 20.1511, subdivision 6, paragraph (h), for the Paul 20.16Bunyan State Trail connection is available 20.17until June 30, 2008.20.18$400,000 each year is for operation and 20.19maintenance of nonmotorized trails within 20.20state forests. This is a onetime appropriation.20.21$75,000 each year is for additional wild and 20.22scenic rivers program activities.20.23$120,000 the first year is from the 20.24water recreation account in the natural 20.25resources fund to cooperate with local 20.26units of government in marking routes and 20.27designating river accesses and campsites 20.28under Minnesota Statutes, section 85.32. 20.29This is a onetime appropriation and available 20.30until spent.20.31The appropriation in Laws 2005, First 20.32Special Session chapter 1, article 2, section 20.333, subdivision 6, from the lottery in lieu 20.34account in the natural resources fund for 20.35trail grants to local units of government, is 20.36available until June 30, 2009.

21.1Subd. 7.Fish and Wildlife Management67,191,00068,533,000

21.2Appropriations by Fund21.3General3,459,0003,479,00021.4Natural Resources1,876,0001,876,00021.5Game and Fish61,856,00063,178,000

21.6$410,000 the first year and $418,000 the 21.7second year are for resource population 21.8surveys in the 1837 treaty area. Of this 21.9amount, $274,000 the first year and $288,000 21.10the second year are from the game and fish 21.11fund.21.12$1,790,000 the first year and $1,790,000 the 21.13second year are from the wildlife acquisition 21.14surcharge account for only the purposes of 21.15land costs as specified in Minnesota Statutes, 21.16section 97A.071, subdivision 2a. This 21.17appropriation is available until spent.21.18$8,061,000 the first year and $8,167,000 21.19the second year are from the heritage 21.20enhancement account in the game and 21.21fish fund only for activities that improve, 21.22enhance, or protect fish and wildlife 21.23resources as specified in Minnesota Statutes, 21.24section 297A.94, paragraph (e), clause (1). 21.25Notwithstanding Minnesota Statutes, section 21.26297A.94, money under this paragraph may 21.27be used for expanding hunter and angler 21.28recruitment and retention and public land 21.29user facilities. Of this amount, $1,175,000 21.30each year is for preserving, restoring, and 21.31enhancing grassland/wetland complexes.21.32Notwithstanding Minnesota Statutes, section 21.3384.943, $13,000 the first year and $13,000 21.34the second year from the critical habitat 21.35private sector matching account may be used 22.1to publicize the critical habitat license plate 22.2match program.22.3$830,000 the first year and $830,000 the 22.4second year are from the trout and salmon 22.5management account for only the purposes 22.6specified in Minnesota Statutes, section 22.797A.075, subdivision 3.22.8$1,353,000 the first year and $1,353,000 22.9the second year are from the deer habitat 22.10improvement account for only the purposes 22.11specified in Minnesota Statutes, section 22.1297A.075, subdivision 1, paragraph (b).22.13$715,000 the first year and $715,000 the 22.14second year are from the deer and bear 22.15management account for only the purposes 22.16specified in Minnesota Statutes, section 22.1797A.075, subdivision 1, paragraph (c).22.18$700,000 the first year and $700,000 the 22.19second year are from the waterfowl habitat 22.20improvement account for only the purposes 22.21specified in Minnesota Statutes, section 22.2297A.075, subdivision 2.22.23$875,000 the first year and $875,000 the 22.24second year are from the pheasant habitat 22.25improvement account for only the purposes 22.26specified in Minnesota Statutes, section 22.2797A.075, subdivision 4.22.28$172,000 the first year and $172,000 the 22.29second year are from the wild turkey 22.30management account for only the purposes 22.31specified in Minnesota Statutes, section 22.3297A.075, subdivision 5. Of this amount, 22.33$8,000 the first year and $8,000 the second 22.34year are appropriated from the game and 22.35fish fund for transfer to the wild turkey 22.36management account for purposes specified 23.1in Minnesota Statutes, section 97A.075, 23.2subdivision 5.23.3$108,000 the first year and $108,000 the 23.4second year are from the game and fish 23.5fund for costs associated with administering 23.6fishing contest permits.23.7$186,000 the first year and $132,000 the 23.8second year are to accelerate wildlife 23.9health programs. $54,000 in the first 23.10year is for fencing cattle-feeding areas in 23.11bovine tuberculosis control zones, under the 23.12emergency deterrent materials assistance 23.13program in Minnesota Statutes, section 23.1497A.028, subdivision 3. This appropriation 23.15is available until June 30, 2009. $61,000 of 23.16this amount is permanent.23.17$575,000 the first year and $575,000 the 23.18second year are for preserving, restoring, and 23.19enhancing grassland/wetland complexes on 23.20public or private lands.23.21The commissioner must report to the 23.22legislative chairs on environmental finance 23.23for money appropriated in this subdivision on 23.24grassland/wetland complexes with specific 23.25outcomes, including acres of wetlands and 23.26prairie grasses and forbs of a local ecotype 23.27preserved, restored, and enhanced during the 23.282008-2009 biennium.23.29$150,000 the first year and $150,000 the 23.30second year are from the game and fish fund 23.31for the roadsides for wildlife program.23.32$175,000 in the first year and $175,000 in the 23.33second year are for grants to Let's Go Fishing 23.34of Minnesota to promote opportunities for 23.35fishing. The grants must be matched with 23.36cash or in-kind contributions from nonstate 24.1sources. It is a condition of acceptance of 24.2this appropriation that Let's Go Fishing of 24.3Minnesota must submit a work program 24.4and annual progress reports in the form and 24.5manner determined by the commissioner of 24.6natural resources to the Budgetary Oversight 24.7Committee. The work program must identify 24.8capital expenditures and leases over $2,000 24.9and annual reports must describe the use 24.10of that capital equipment throughout its 24.11useful life. None of the money provided 24.12may be spent unless the commissioner 24.13has approved the work program. This is a 24.14onetime appropriation.24.15$90,000 each year from the game and fish 24.16fund is to staff the Budgetary Oversight 24.17Committee.24.18By November 15, 2008, the commissioner, 24.19in consultation with the Budgetary Oversight 24.20Committee, established in Minnesota 24.21Statutes, section 97A.055, subdivision 4b, 24.22paragraph (c), shall report to the house of 24.23representatives and senate policy and finance 24.24committees and divisions with jurisdiction 24.25over natural resources on game and fish fund 24.26receipt and expenditure imbalances between 24.27hunting-related and fishing-related activities. 24.28The report shall include, but is not limited to:24.29(1) a table showing the allocation of game 24.30and fish fund receipts and expenditures 24.31related to fishing and hunting activities for 24.32fiscal years 1989 to 2007 and projected 24.33receipts and expenditures for fiscal years 24.342008 and 2009;24.35(2) recommendations for short-term changes 24.36to correct any imbalances; and25.1(3) recommendations for long-term 25.2changes that will ensure that fishing license 25.3revenue is adequate to cover fishing-related 25.4expenditures and hunting license revenue 25.5is adequate to cover hunting-related 25.6expenditures.25.7Notwithstanding Minnesota Statutes, section 25.816A.28, the appropriations encumbered 25.9under contract on or before June 30, 2009, for 25.10aquatic restoration grants and wildlife habitat 25.11grants are available until June 30, 2010.25.12The commissioner of finance shall transfer 25.13$160,000 in fiscal year 2008 to the special 25.14revenue fund for the account under Minnesota 25.15Statutes, section 97A.065, subdivision 6.

25.16Subd. 8.Ecological Services16,175,00014,476,000

25.17Appropriations by Fund25.18General8,597,0006,531,00025.19Natural Resources3,696,0003,994,00025.20Game and Fish3,882,0003,951,000

25.21$1,194,000 the first year and $1,227,000 the 25.22second year are from the nongame wildlife 25.23management account in the natural resources 25.24fund for the purpose of nongame wildlife 25.25management.25.26Notwithstanding Minnesota Statutes, 25.27section 290.431, $100,000 the first year 25.28and $100,000 the second year may be used 25.29for nongame information, education, and 25.30promotion.25.31$1,612,000 the first year and $1,636,000 25.32the second year are from the heritage 25.33enhancement account in the game and 25.34fish fund for only the purposes specified 25.35in Minnesota Statutes, section 297A.94, 25.36paragraph (e), clause (1).26.1The commissioner must report to the 26.2legislative chairs on environmental finance 26.3for money appropriated in this subdivision on 26.4grassland/wetland complexes with specific 26.5outcomes, including acres of wetlands and 26.6prairie grasses and forbs of a local ecotype 26.7preserved, restored, and enhanced during the 26.82008-2009 biennium.26.9$2,938,000 in the first year and $4,385,000 26.10in the second year, of which $1,968,000 the 26.11first year and $2,195,000 the second year 26.12are from the invasive species account in the 26.13natural resources fund for law enforcement 26.14and water access inspection to prevent the 26.15spread of invasive species, grants to manage 26.16invasive plants in public waters, technical 26.17assistance to grant applicants for improving 26.18lake quality, and management of terrestrial 26.19invasive species on state-administered lands. 26.20Priority shall be given to preventing the 26.21spread of aquatic invertebrates, including, 26.22but not limited to, zebra mussels, spiny 26.23waterflea, and round goby. An applicant 26.24for a grant to manage invasive plants in 26.25public waters must have a workable plan for 26.26improving water quality and reducing the 26.27need for additional treatment. Grants may 26.28not be made for chemicals that are likely 26.29endocrine disruptors. A plan to prevent the 26.30introduction of asian carp into Minnesota 26.31waters must be made available to the public 26.32by November 1, 2007.26.33$125,000 the first year is to support a 26.34technical advisory committee and for land 26.35management units that manage grass lands 26.36in order to develop plans to optimize 27.1native prairie seed harvest and replanting 27.2on state-owned lands. The work must 27.3use best management practices with an 27.4outcome of ensuring the survival of the 27.5native prairie remaining in Minnesota and to 27.6estimate the value of the seeds. Maximizing 27.7seed harvest may include allowing seed 27.8producers to keep a portion of the seed as 27.9compensation for supplying equipment and 27.10labor. The Department of Natural Resources 27.11in cooperation with the Department of 27.12Agriculture and the Board of Water and 27.13Soil Resources shall establish the technical 27.14advisory committee which has the expertise 27.15to develop (1) criteria to identify public 27.16and private marginal lands which could be 27.17used to produce native prairie seeds of a 27.18local eco-type or restore native prairies that 27.19could be used to produce clean energy, (2) 27.20guidelines for production that ensure high 27.21carbon sequestration, protection of wildlife 27.22and waters, and minimization of inputs and 27.23that do not compromise the survival of the 27.24native prairie remaining in Minnesota, and 27.25(3) recommendations for incentives that will 27.26result in the production of native prairie seeds 27.27of a local eco-type or restore native prairies. 27.28In addition to agency members, the advisory 27.29committee shall have one member from 27.30each of two statewide farm organizations, 27.31one member from a statewide sustainable 27.32farmer organization, one member each from 27.33three statewide rural economic development 27.34organizations, one member each from three 27.35statewide environmental organizations, and 27.36one member each from three statewide 28.1wildlife or conservation organizations. 28.2No person registered as a lobbyist under 28.3Minnesota Statutes, section 10A.03, may 28.4serve on the technical advisory committee. 28.5The technical committee shall work with the 28.6NextGen Energy Board to develop a clean 28.7energy program. A report on outcomes from 28.8the technical committee is due December 28.915, 2007, to the legislative finance chairs on 28.10environment and natural resources.28.11$50,000 in the first year is for the 28.12commissioner, in consultation with the 28.13Environmental Quality Board, to report to 28.14the house and senate committees having 28.15jurisdiction over environmental policy 28.16and finance by February 1, 2008, on the 28.17Mississippi River critical area program. The 28.18report shall include the status of critical 28.19area plans, zoning ordinances, the number 28.20and types of revisions anticipated, and the 28.21nature and number of variances sought. The 28.22report shall include recommendations that 28.23adequately protect and manage the aesthetic 28.24integrity and natural environment of the river 28.25corridor.28.26$2,250,000 the first year is to support the 28.27identification of impaired waters and develop 28.28plans to address those impairments, as 28.29required by the federal Clean Water Act, in 28.30accordance with Minnesota Statutes, chapter 28.31114D. This is a onetime appropriation.28.32$477,000 the first year and $477,000 the 28.33second year are for the reinvest in Minnesota 28.34programs of game and fish, critical habitat, 28.35and wetlands established under Minnesota 28.36Statutes, section 84.95, subdivision 2.29.1$350,000 the first year is for a grant to 29.2the International Wolf Center for building 29.3renovations.29.4$500,000 the first year is for a grant to the 29.5city of Wabasha for programming at the 29.6National Bald Eagle Center.29.7$100,000 the first year is for a grant to the 29.8Wildlife Rehabilitation Center of Minnesota 29.9to retire loans incurred by the center for 29.10construction of its facility in the city of 29.11Roseville and to complete educational 29.12technology infrastructure at the center.29.13$115,000 in the first year and $116,000 in the 29.14second year is for the Project Wild program. 29.15Of this amount, $35,000 in the first year 29.16and $36,000 in the second year are from the 29.17natural resources fund, and $40,000 in the 29.18first year and $40,000 in the second year are 29.19from the game and fish fund.29.20$150,000 each year is from the all-terrain 29.21vehicle account in the natural resources fund 29.22for developing and maintaining all-terrain 29.23vehicle trails and environmental review.

29.24Subd. 9.Enforcement30,549,00031,596,000

29.25Appropriations by Fund29.26General3,564,0003,648,00029.27Natural Resources7,463,0007,963,00029.28Game and Fish19,422,00019,885,00029.29Remediation100,000100,000

29.30Until June 30, 2009, a conservation officer 29.31must be stationed at Mississippi Headwaters 29.32State Forest to work with local jurisdictions 29.33in enforcing state law along the Mississippi 29.34River from Lake Itasca downstream to Lake 29.35Bemidji and in the Bemidji region.29.36$1,082,000 the first year and $1,082,000 the 29.37second year are from the water recreation 30.1account in the natural resources fund for 30.2grants to counties for boat and water safety.30.3$100,000 the first year and $100,000 the 30.4second year are from the remediation fund 30.5for solid waste enforcement activities under 30.6Minnesota Statutes, section 116.073.30.7$315,000 the first year and $315,000 the 30.8second year are from the snowmobile 30.9trails and enforcement account in the 30.10natural resources fund for grants to local 30.11law enforcement agencies for snowmobile 30.12enforcement activities.30.13$1,164,000 the first year and $1,164,000 30.14the second year are from the heritage 30.15enhancement account in the game and 30.16fish fund for only activities that improve, 30.17enhance, or protect fish and wildlife resources 30.18specified in Minnesota Statutes, section 30.19297A.94, paragraph (e), clause (1).30.20Overtime must be distributed to conservation 30.21officers at historical levels; however, a 30.22reasonable reduction or addition may be 30.23made to the officer's allocation, if justified, 30.24based on an individual officer's workload. If 30.25funding for enforcement is reduced because 30.26of an unallotment, the overtime bank may be 30.27reduced in proportion to reductions made in 30.28other areas of the budget.30.29$325,000 the first year and $325,000 30.30the second year are from the natural 30.31resources fund for grants to county law 30.32enforcement agencies for off-highway 30.33vehicle enforcement and public education 30.34activities based on off-highway vehicle use 30.35in the county. Of this amount, $313,000 each 30.36year is from the all-terrain vehicle account; 31.1$11,000 each year is from the off-highway 31.2motorcycle account; and $1,000 each year 31.3is from the off-road vehicle account. The 31.4county enforcement agencies may use 31.5money received under this appropriation 31.6to make grants to other local enforcement 31.7agencies within the county that have a high 31.8concentration of off-highway vehicle use. Of 31.9this appropriation, $25,000 each year is for 31.10administration of these grants.31.11$250,000 the first year and $250,000 the 31.12second year are from the all-terrain vehicle 31.13account for grants to qualifying organizations 31.14to assist in safety and environmental 31.15education and monitoring trails on public 31.16lands under new Minnesota Statutes, 31.17section 84.9011. Grants issued under this 31.18paragraph: (1) must be issued through a 31.19formal agreement with the organization; 31.20and (2) must not be used as a substitute for 31.21traditional spending by the organization. By 31.22December 15, each year, an organization 31.23receiving a grant under this paragraph shall 31.24report to the commissioner with details 31.25on expenditures from the grant. Of this 31.26appropriation, $25,000 each year is for 31.27administration of these grants.31.28The commissioner must publicize 31.29opportunities for conservation officer 31.30employment and recruit, when possible, 31.31conservation officer candidates from the 31.32biological sciences departments at colleges 31.33and universities.

31.34Subd. 10.Operations Support4,288,0003,813,000

31.35Appropriations by Fund31.36General2,715,0002,249,00032.1Natural Resources484,000484,00032.2Game and Fish1,089,0001,080,000

32.3$38,000 in the first year is from the game and 32.4fish fund for the study on the natural stands 32.5of wild rice required in this article.32.6$270,000 the first year and $270,000 the 32.7second year are from the natural resources 32.8fund for grants to be divided equally between 32.9the city of St. Paul for the Como Zoo 32.10and Conservatory and the city of Duluth 32.11for the Duluth Zoo. This appropriation 32.12is from the revenue deposited to the fund 32.13under Minnesota Statutes, section 297A.94, 32.14paragraph (e), clause (5).32.15$55,000 in the first year and $7,000 in the 32.16second year are to be transferred to the 32.17Environmental Quality Board to fulfill the 32.18requirement of Minnesota Statutes, sections 32.19116C.92 and 116C.94.32.20$475,000 the first year is a onetime 32.21appropriation for terrestrial and geologic 32.22carbon sequestration reports and studies in 32.23this article. Of this amount, the commissioner 32.24shall make payments of $385,000 to the 32.25Board of Regents of the University of 32.26Minnesota for the purposes of terrestrial 32.27carbon sequestration activities, and $90,000 32.28to the Minnesota Geological Survey for the 32.29purposes of geologic carbon sequestration 32.30assessment.

32.3132.32Sec. 5. BOARD OF WATER AND SOIL RESOURCES$32,153,000$17,482,000

32.33$4,102,000 the first year and $4,102,000 the 32.34second year are for natural resources block 32.35grants to local governments. The board may 32.36reduce the amount of the natural resources 33.1block grant to a county by an amount equal to 33.2any reduction in the county's general services 33.3allocation to a soil and water conservation 33.4district from the county's previous year 33.5allocation when the board determines that 33.6the reduction was disproportionate. Grants 33.7must be matched with a combination of local 33.8cash or in-kind contributions. The base grant 33.9portion related to water planning must be 33.10matched by an amount that would be raised 33.11by a levy under Minnesota Statutes, section 33.12103B.3369.33.13$3,566,000 the first year and $3,566,000 33.14the second year are for grants requested 33.15by soil and water conservation districts for 33.16general purposes, nonpoint engineering, 33.17and implementation of the reinvest in 33.18Minnesota conservation reserve program. 33.19Upon approval of the board, expenditures 33.20may be made from these appropriations for 33.21supplies and services benefiting soil and 33.22water conservation districts. Any district 33.23requesting a grant under this paragraph 33.24shall create and maintain a Web page that 33.25publishes, at a minimum, its annual plan, 33.26annual report, annual audit, and annual 33.27budget, including membership dues and 33.28meeting notices and minutes.33.29$3,285,000 the first year and $3,285,000 33.30the second year are for grants to soil and 33.31water conservation districts for cost-sharing 33.32contracts for erosion control and water 33.33quality management. Of this amount, at least 33.34$1,200,000 the first year and $1,200,000 the 33.35second year are for grants for cost-sharing 33.36contracts to establish and maintain vegetation 34.1buffers of restored native prairie and restored 34.2prairie using seeds of a local ecotype region. 34.3$300,000 the first year and $300,000 the 34.4second year are available to begin county 34.5cooperative weed management programs 34.6on natural lands and private lands enrolled 34.7in state and federal conservation programs 34.8and to restore native plants in selected 34.9invasive species management sites by 34.10providing local native seeds and plants 34.11to landowners for implementation. This 34.12appropriation is available until expended. If 34.13the appropriation in either year is insufficient, 34.14the appropriation in the other year is available 34.15for it. Notwithstanding Minnesota Statutes, 34.16section 103C.501, any balance in the board's 34.17cost-share program that remains from the 34.18fiscal year 2007 appropriation is available 34.19in an amount up to $2,000 for a grant to 34.20the Faribault Soil and Water Conservation 34.21District to pay for erosion repair on the Blue 34.22Earth River, and up to $40,000 is available for 34.23grants to soil and water conservation districts 34.24for Web site development and reporting; and 34.25$100,000 in fiscal years 2008 and 2009 is 34.26for evaluating and reporting on performance, 34.27financial, and activity information of local 34.28water management entities as provided for in 34.29section 103.34.30The board shall develop a forestry practice 34.31docket for cost-share money. The board shall 34.32develop standards or policies for cost-share 34.33practices for the following purposes: (1) 34.34establishment and maintenance of vegetated 34.35buffers of restored prairie or restored native 34.36prairie using seeds of a local ecotype; 35.1(2) establishment of cooperative weed 35.2management programs on private natural 35.3lands and lands enrolled in state and federal 35.4conservation programs and restoration of 35.5native plants in selected invasive species 35.6management sites by providing local native 35.7seeds and plants to landowners; and (3) 35.8establishment of soil and water conservation 35.9and ecological improvement practices on 35.10private forest lands.35.11$100,000 the first year and $100,000 the 35.12second year are for a grant to the Red 35.13River Basin Commission to develop a Red 35.14River basin plan and to coordinate water 35.15management activities in the states and 35.16provinces bordering the Red River. The 35.17unencumbered balance in the first year does 35.18not cancel but is available for the second 35.19year.35.20$14,166,000 is for implementation of the 35.21Clean Water Legacy Act, in accordance 35.22with Minnesota Statutes, chapter 114D, as 35.23follows:35.24(1) $3,316,000 is for targeted nonpoint 35.25restoration cost-share and incentive 35.26payments, of which up to $3,116,000 35.27is available for grants. Of this amount, 35.28$1,500,000 is for agricultural watershed 35.29restoration projects that are located in a 35.30watershed impaired by nonpoint agricultural 35.31sources and are designed to provide 35.32long-term restoration of surface water 35.33quality through restoration of the natural 35.34hydrological function to working lands. Of 35.35this amount, $500,000 must be contracted for 35.36services with the Minnesota Conservation 36.1Corps. The grant funds are available until 36.2expended;36.3(2) $3,000,000 is for targeted nonpoint 36.4restoration and protection and technical, 36.5compliance, and engineering assistance 36.6activities, of which up to $2,400,000 is 36.7available for grants, and $225,000 the first 36.8year is to inventory wetland mitigation 36.9opportunities and water quality and 36.10watershed improvement projects in a greater 36.11than 80 percent area and of which $150,000 36.12the first year is to conduct a regionwide 36.13wetland mitigation siting analysis for 36.14greater than 80 percent areas. The $225,000 36.15amount shall include an inventory of the 36.16wetland and water resources that have been 36.17developed on former mine lands and an 36.18analysis of the functions and values of those 36.19wetland and water resources. This is a 36.20onetime appropriation and is available until 36.21June 30, 2009. The $150,000 amount for 36.22analysis shall (i) evaluate wetland mitigation 36.23opportunities in each watershed and wetland 36.24bank service area, (ii) develop goals for 36.25maintaining water quality in the greater than 36.2680 percent areas, and (iii) identify wetland 36.27mitigation opportunities in other regions with 36.28a greater loss of wetlands or with impaired 36.29waters. This is a onetime appropriation and 36.30is available until June 30, 2009. A report on 36.31the analysis outcomes shall be given to the 36.32house and senate chairs of the environment 36.33and natural resources policy and finance 36.34committees by January 15, 2009;36.35(3) $400,000 is for reporting and evaluating 36.36applied soil and water conservation practices;37.1(4) $2,450,000 is for grants to implement 37.2county individual sewage treatment system 37.3programs. Of this amount, after a county 37.4has complied with requirements to adopt 37.5ordinances pursuant to Minnesota Statutes, 37.6section 115.55, subdivision 2, the county may 37.7request grants of up to $130,000 to inventory 37.8properties with individual sewage treatment 37.9systems that are an imminent threat to public 37.10health or safety due to water discharges of 37.11untreated sewage, and require compliance 37.12under an applicable ordinance. The grant 37.13amount shall be proportional to the number 37.14of properties expected to be inventoried. 37.15Each county receiving an appropriation 37.16under this paragraph shall report the number 37.17of inspections and the number determined 37.18to be an imminent threat to public health or 37.19safety to the Pollution Control Agency by 37.20February 1 of each year;37.21(5) $3,000,000 is for feedlot water quality 37.22grants for feedlots under 300 animal units 37.23where there are impaired waters; 37.24(6) $1,000,000 in fiscal year 2008 is for 37.25grants to support local nonpoint source 37.26protection activities related to lake and river 37.27protection and management; and 37.28(7) $1,000,000 in fiscal year 2008 is for 37.29grants to address imminent threat and failing 37.30individual sewage treatment systems.37.31If the appropriations in clauses (1) to (7) in 37.32either year are insufficient, the appropriation 37.33in the other year is available for it. All of 37.34the money appropriated in clauses (1) to 37.35(7) as grants to local governments shall be 37.36administered through the Board of Water 38.1and Soil Resources' local water resources 38.2protection and management program under 38.3Minnesota Statutes, section 103B.3369.38.4$100,000 each year is to the Minnesota River 38.5Basin Joint Powers Board, also known as 38.6the Minnesota River Board, for operating 38.7expenses to measure and report the results of 38.8projects in the 12 major watersheds within 38.9the Minnesota River basin.38.10By January 1, 2008, the board shall report 38.11to the senate and house of representatives 38.12environmental finance divisions on the 38.13financial needs to bring all feedlots in the 38.14state that are under 300 animal units into 38.15compliance with Pollution Control Agency 38.16rules by October 1, 2010, and comply with 38.17the requirements of Minnesota Statutes, 38.18section 116.07, subdivision 7, paragraph (p).38.19$140,000 the first year and $140,000 38.20the second year are for a grant to Area 38.21II, Minnesota River Basin Projects, 38.22for floodplain management, including 38.23administration of programs.38.24$1,120,000 the first year and $1,060,000 the 38.25second year may be spent for the following 38.26purposes to support implementation of 38.27the Wetland Conservation Act: $250,000 38.28each year is to make grants to local units 38.29of governments within the 11-county 38.30metropolitan area to improve response to 38.31major wetland violations; $250,000 each 38.32year is for transfer to the commissioner 38.33of natural resources for enforcement of 38.34wetland violations; $500,000 each year is for 38.35staffing to provide adequate state oversight 38.36and technical support to local governments 39.1administering the Wetland Conservation Act; 39.2$60,000 each year is for staff to monitor and 39.3enforce wetland replacement and wetland 39.4bank sites; and $60,000 the first year is 39.5for rulemaking required by changes to the 39.6Wetland Conservation Act. The board must 39.7include in its biennial report to the legislature 39.8information on all state and local units 39.9of government, including special purpose 39.10districts, impacts on wetlands in the state.39.11$450,000 the first year and $800,000 39.12the second year are to implement 39.13recommendations of the Drainage Work 39.14Group to enhance public drainage and 39.15modernization as follows: $150,000 the first 39.16year is to develop guidelines for drainage 39.17records preservation and modernization; 39.18$500,000 the second year is for cost-share 39.19grants to local governments for public 39.20drainage records modernization; and 39.21$300,000 each year is to provide assistance 39.22to local drainage management officials, to 39.23facilitate the work of the Drainage Work 39.24Group, to staff a drainage assistance team, 39.25and to update the Minnesota Public Drainage 39.26Manual. All of the money appropriated in 39.27this paragraph as grants to local governments 39.28shall be administered through the Board 39.29of Water and Soil Resources' local water 39.30resources protection and management 39.31program under Minnesota Statutes, section 39.32103B.3369.39.33In addition to other authorities, the Board 39.34of Water and Soil Resources may reduce, 39.35withhold, or redirect grants and other funding 39.36if the local water management entity has 40.1not corrected deficiencies as prescribed in a 40.2notice from the board within one year from 40.3the date of the notice.40.4$500,000 the first year is to provide grants 40.5for bioenergy crop research and monitoring, 40.6including, but not limited to, water quality, 40.7water quantity utilized, soil carbon storage, 40.8biological diversity, wildlife and habitat 40.9impacts and benefits, and small diameter 40.10woody bioenergy. Of this amount, $300,000 40.11is for a grant to the Minnesota Forest 40.12Resources Council for conducting site level 40.13ecological research and assessments as 40.14identified by the council's biomass technical 40.15committee. Additional money from other 40.16sources should be sought to accomplish this 40.17purpose.40.18$200,000 in fiscal year 2008 is to develop 40.19clean energy program guidelines and 40.20standards.40.21$200,000 is for a grant to the city of Gaylord 40.22to construct and reconstruct storm water 40.23sewer drains and related facilities to divert 40.24water that currently drains into Lake Titlow 40.25into holding ponds south of the city. The 40.26cost of reconstructing city streets as part of 40.27this diversion, and as outlined in the city of 40.28Gaylord's street improvement plan, is the 40.29responsibility of the city. This diversion will 40.30keep phosphorus and other chemicals from 40.31entering the lake, and will improve the water 40.32quality of Lake Titlow.40.33The appropriations for grants in this 40.34section are available until expended. If an 40.35appropriation for grants in either year is 41.1insufficient, the appropriation in the other 41.2year is available for it.

41.3Sec. 6. METROPOLITAN COUNCIL$8,620,000$8,620,000

41.4Appropriations by Fund41.52008200941.6General4,050,0004,050,00041.7Natural Resources4,570,0004,570,000

41.8$4,050,000 the first year and $4,050,000 41.9the second year are for metropolitan area 41.10regional parks maintenance and operations.41.11$4,570,000 the first year and $4,570,000 the 41.12second year are from the natural resources 41.13fund for metropolitan area regional parks 41.14and trails maintenance and operations. This 41.15appropriation is from the revenue deposited 41.16in the natural resources fund under Minnesota 41.17Statutes, section 297A.94, paragraph (e), 41.18clause (3).

41.1941.20Sec. 7. MINNESOTA CONSERVATION CORPS$1,015,000$965,000

41.21Appropriations by Fund41.222008200941.23General525,000475,00041.24Natural Resources490,000490,000

41.25The Minnesota Conservation Corps may 41.26receive money appropriated from the 41.27natural resources fund under this section 41.28only as provided in an agreement with the 41.29commissioner of natural resources.41.30$50,000 is to be used for learning stipends 41.31for deaf students and wages for interpreters 41.32participating in its summer youth program. 41.33The appropriation is available until June 30, 41.342009.

41.35Sec. 8. ZOOLOGICAL BOARD$7,137,000$7,331,000

41.36Appropriations by Fund41.372008200942.1General7,000,0007,193,00042.2Natural Resources137,000138,000

42.3$137,000 the first year and $138,000 the 42.4second year are from the natural resources 42.5fund from the revenue deposited under 42.6Minnesota Statutes, section 297A.94, 42.7paragraph (e), clause (5).42.8The general fund base budget for the 42.9Zoological Board is $7,068,000 each year in 42.10the 2010-2011 biennium.

42.1142.12Sec. 9. SCIENCE MUSEUM OF MINNESOTA$1,250,000$1,250,000

42.13    Sec. 10. Minnesota Statutes 2006, section 10A.01, subdivision 35, is amended to read:42.14    Subd. 35. Public official. "Public official" means any:42.15    (1) member of the legislature;42.16    (2) individual employed by the legislature as secretary of the senate, legislative 42.17auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or 42.18attorney in the Office of Senate Counsel and Research or House Research;42.19    (3) constitutional officer in the executive branch and the officer's chief administrative 42.20deputy;42.21    (4) solicitor general or deputy, assistant, or special assistant attorney general;42.22    (5) commissioner, deputy commissioner, or assistant commissioner of any state 42.23department or agency as listed in section 
         15.01 or 
         15.06, or the state chief information 42.24officer;42.25    (6) member, chief administrative officer, or deputy chief administrative officer of a 42.26state board or commission that has either the power to adopt, amend, or repeal rules under 42.27chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;42.28    (7) individual employed in the executive branch who is authorized to adopt, amend, 42.29or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;42.30    (8) executive director of the State Board of Investment;42.31    (9) deputy of any official listed in clauses (7) and (8);42.32    (10) judge of the Workers' Compensation Court of Appeals;42.33    (11) administrative law judge or compensation judge in the State Office of 42.34Administrative Hearings or referee in the Department of Employment and Economic 42.35Development;43.1    (12) member, regional administrator, division director, general counsel, or operations 43.2manager of the Metropolitan Council;43.3    (13) member or chief administrator of a metropolitan agency;43.4    (14) director of the Division of Alcohol and Gambling Enforcement in the 43.5Department of Public Safety;43.6    (15) member or executive director of the Higher Education Facilities Authority;43.7    (16) member of the board of directors or president of Minnesota Technology, Inc.; 43.8    (17) member of the board of directors or executive director of the Minnesota State 43.9High School League;43.10    (18) member of the Minnesota Ballpark Authority established in section 473.755; or 43.11    (19) citizen member of the Legislative-Citizen Commission on Minnesota 43.12Resources.;43.13    (20) manager of a watershed district, or member of a watershed management 43.14organization as defined under section 103B.205, subdivision 13; or43.15    (21) supervisor of a soil and water conservation district.43.16    Sec. 11. Minnesota Statutes 2006, section 15.99, subdivision 3, is amended to read:43.17    Subd. 3. Application; extensions. (a) The time limit in subdivision 2 begins upon 43.18the agency's receipt of a written request containing all information required by law or by 43.19a previously adopted rule, ordinance, or policy of the agency, including the applicable 43.20application fee. If an agency receives a written request that does not contain all required 43.21information, the 60-day limit starts over only if the agency sends written notice within 15 43.22business days of receipt of the request telling the requester what information is missing.43.23    (b) If a request relating to zoning, septic systems, watershed district review, soil and 43.24water conservation district review, or expansion of the metropolitan urban service area 43.25requires the approval of more than one state agency in the executive branch, the 60-day 43.26period in subdivision 2 begins to run for all executive branch agencies on the day a request 43.27containing all required information is received by one state agency. The agency receiving 43.28the request must forward copies to other state agencies whose approval is required.43.29    (c) An agency response, including an approval with conditions, meets the 60-day 43.30time limit if the agency can document that the response was sent within 60 days of receipt 43.31of the written request. Failure to satisfy the conditions, if any, may be a basis to revoke 43.32or rescind the approval by the agency and will not give rise to a claim that the 60-day 43.33limit was not met.43.34    (d) The time limit in subdivision 2 is extended if a state statute, federal law, or court 43.35order requires a process to occur before the agency acts on the request, and the time 44.1periods prescribed in the state statute, federal law, or court order make it impossible to 44.2act on the request within 60 days. In cases described in this paragraph, the deadline is 44.3extended to 60 days after completion of the last process required in the applicable statute, 44.4law, or order. Final approval of an agency receiving a request is not considered a process 44.5for purposes of this paragraph.44.6    (e) The time limit in subdivision 2 is extended if: (1) a request submitted to a state 44.7agency requires prior approval of a federal agency; or (2) an application submitted to 44.8a city, county, town, school district, metropolitan or regional entity, or other political 44.9subdivision requires prior approval of a state or federal agency. In cases described in 44.10this paragraph, the deadline for agency action is extended to 60 days after the required 44.11prior approval is granted.44.12    (f) An agency may extend the time limit in subdivision 2 before the end of the 44.13initial 60-day period by providing written notice of the extension to the applicant. The 44.14notification must state the reasons for the extension and its anticipated length, which may 44.15not exceed 60 days unless approved by the applicant.44.16    (g) An applicant may by written notice to the agency request an extension of the 44.17time limit under this section.44.18EFFECTIVE DATE.This section is effective the day following final enactment.44.19    Sec. 12. Minnesota Statutes 2006, section 16A.531, subdivision 1a, is amended to read:44.20    Subd. 1a. Revenues. The following revenues must be deposited in the 44.21environmental fund:44.22    (1) all revenue from the motor vehicle transfer fee imposed under section 
         115A.908; 44.23    (2) all fees collected under section 
         116.07, subdivision 4d; 44.24    (3) all money collected by the Pollution Control Agency in enforcement matters 44.25as provided in section 
         115.073; 44.26    (4) all revenues from license fees for individual sewage treatment systems under 44.27section 
         115.56; 44.28    (5) all loan repayments deposited under section 
         115A.0716; 44.29    (6) all revenue from pollution prevention fees imposed under section 
         115D.12; 44.30    (7) all loan repayments deposited under section 
         116.994; 44.31    (8) all fees collected under section 
         116C.834; 44.32    (9) revenue collected from the solid waste management tax pursuant to chapter 297H;44.33    (10) fees collected under section 
         473.844; and44.34    (11) interest accrued on the fund; and45.1    (12) money received in the form of gifts, grants, reimbursement, or appropriation 45.2from any source for any of the purposes provided in subdivision 2, except federal grants.45.3    Sec. 13. [17.035] VENISON DISTRIBUTION AND REIMBURSEMENT.45.4    Subdivision 1.Reimbursement.A meat processor holding a license under chapter 45.528A may apply to the commissioner of agriculture for reimbursement of $70 towards the 45.6cost of processing donated deer. The meat processor shall deliver the deer, processed into 45.7cuts or ground meat, to a charitable organization that is registered under chapter 309 and 45.8with the commissioner of agriculture and that operates a food assistance program. To 45.9request reimbursement, the processor shall submit an application, on a form prescribed by 45.10the commissioner of agriculture, the tag number under which the deer was taken, and a 45.11receipt for the deer from the charitable organization.45.12    Subd. 2.Distribution.(a) The commissioner of agriculture shall ensure the 45.13equitable statewide distribution of processed deer by requiring the charitable organization 45.14to allocate and distribute processed deer according to the allocation formula used in the 45.15distribution of United States Department of Agriculture commodities under the federal 45.16emergency food assistance program. The charitable organization must submit quarterly 45.17reports to the commissioner on forms prescribed by the commissioner. The reports must 45.18include, but are not limited to, information on the amount of processed deer received and 45.19the organizations to which the meat was distributed.45.20    (b) The commissioner of agriculture may adopt rules to implement this section.45.21    Sec. 14. Minnesota Statutes 2006, section 17.4984, subdivision 1, is amended to read:45.22    Subdivision 1. License required. (a) A person or entity may not operate an aquatic 45.23farm without first obtaining an aquatic farm license from the commissioner.45.24    (b) Applications for an aquatic farm license must be made on forms provided by 45.25the commissioner.45.26    (c) Licenses are valid for five years and are transferable upon notification to the 45.27commissioner.45.28    (d) The commissioner shall issue an aquatic farm license on payment of the required 45.29license fee under section 
         17.4988. 45.30    (e) A license issued by the commissioner is not a determination of private property 45.31rights, but is only based on a determination that the licensee does not have a significant 45.32detrimental impact on the public resource.46.1    (f) By January 15, 2008, the commissioner shall report to the senate and house 46.2of representatives committees on natural resource policy and finance on policy 46.3recommendations regarding aquaculture.46.4    Sec. 15. Minnesota Statutes 2006, section 18G.03, is amended by adding a subdivision 46.5to read:46.6    Subd. 5.Certain species not subject to chapter 18G.This chapter does not apply 46.7to exotic aquatic plants and wild animal species regulated under chapter 84D.46.8    Sec. 16. Minnesota Statutes 2006, section 18G.11, is amended to read:46.918G.11 COOPERATION WITH OTHER JURISDICTIONS.46.10    Subdivision 1.Detection and control agreements. The commissioner may enter 46.11into cooperative agreements with organizations, persons, civic groups, governmental 46.12agencies, or other organizations to adopt and execute plans to detect and control areas 46.13infested or infected with harmful plant pests. The cooperative agreements may include 46.14provisions of joint funding of any control treatment.46.15    If a harmful plant pest infestation or infection occurs and cannot be adequately 46.16controlled by individual persons, owners, tenants, or local units of government, the 46.17commissioner may conduct the necessary control measures independently or on a 46.18cooperative basis with federal or other units of government.46.19    Subd. 2.New and emerging plant pest programs.The commissioner may make 46.20grants to municipalities or enter into contracts with municipalities, nurseries, colleges, 46.21universities, state or federal agencies in connection with new or emerging plant pests 46.22programs, including research, or any other organization with the legal authority to enter 46.23into contractual agreements.46.24    Sec. 17. [84.02] DEFINITIONS.46.25    Subdivision 1.Definitions.For purposes of this chapter, the terms defined in this 46.26section shall have the meanings given them.46.27    Subd. 2.Best management practice for native prairie restoration."Best 46.28management practice for native prairie restoration" means using seeds collected from a 46.29native prairie within the same county or within 25 miles of the county's border, but not 46.30across the boundary of an ecotype region.46.31    Subd. 3.Created grassland."Created grassland" means a restoration using seeds 46.32or plants with origins outside of the state of Minnesota.47.1    Subd. 4.Ecotype region."Ecotype region" means the following ecological 47.2subsections and counties based on the Department of Natural Resources map, "County 47.3Landscape Groupings Based on Ecological Subsections," dated February 15, 2007.

47.4Ecotype RegionCounties or portions thereof:47.547.647.7Rochester Plateau, Blufflands, and Oak SavannaHouston, Winona, Fillmore, Wabasha, Goodhue, Mower, Freeborn, Steele, Olmsted, Rice, Waseca, Dakota, Dodge47.847.947.10Anoka Sand Plain, Big Woods, and St. Paul Baldwin Plains and MorainesAnoka, Hennepin, Ramsey, Washington, Chisago, Scott, Carver, McLeod, Wright, Benton, Isanti, Le Sueur, Sherburne47.1147.12Inner Coteau and Coteau MorainesLincoln, Lyon, Pipestone, Rock, Murray, Nobles, Jackson, Cottonwood47.13Red River Prairie (South)Traverse, Wilkin, Clay, Becker47.1447.1547.16Red River Prairie (North) and Aspen ParklandsKittson, Roseau, Red Lake, Pennington, Marshall, Clearwater, Mahnomen, Polk, Norman47.1747.1847.19Minnesota River Prairie (North)Big Stone, Pope, Stevens, Grant, Swift, Chippewa, Meeker, Kandiyohi, Renville, Lac qui Parle, Yellow Medicine47.2047.21Minnesota River Prairie (South)Nicollet, Redwood, Brown, Watonwan, Martin, Faribault, Blue Earth, Sibley47.2247.23Hardwood HillsDouglas, Morrison, Otter Tail, Stearns, Todd

47.24    Subd. 5.Native prairie."Native prairie" means land that has never been plowed 47.25where native prairie vegetation originating from the site currently predominates or, if 47.26disturbed, is predominantly covered with native prairie vegetation that originated from the 47.27site. Unbroken pasture land used for livestock grazing can be considered native prairie if it 47.28has predominantly native vegetation originating from the site and conservation practices 47.29have maintained biological diversity.47.30    Subd. 6.Native prairie species of a local ecotype."Native prairie species of a local 47.31ecotype" means a genetically differentiated population of a species that has at least one 47.32trait (morphological, biochemical, fitness, or phenological) that is evolutionarily adapted 47.33to local environmental conditions, notably plant competitors, pathogens, pollinators, soil 47.34microorganisms, growing season length, climate, hydrology, and soil.47.35    Subd. 7.Restored native prairie."Restored native prairie" means a restoration 47.36using at least 25 representative and biologically diverse native prairie plant species of a 47.37local ecotype originating in the same county as the restoration site or within 25 miles of 47.38the county's border, but not across the boundary of an ecotype region.48.1    Subd. 8.Restored prairie."Restored prairie" means a restoration using at least 48.225 representative and biologically diverse native prairie plant species originating from 48.3the same ecotype region in which the restoration occurs.48.4    Sec. 18. Minnesota Statutes 2006, section 84.025, subdivision 9, is amended to read:48.5    Subd. 9. Professional services support account. The commissioner of natural 48.6resources may bill the various programs carried out by the commissioner for the costs of 48.7providing them with professional support services. Except as provided under section 48.889.421, receipts must be credited to a special account in the state treasury and are 48.9appropriated to the commissioner to pay the costs for which the billings were made.48.10    The commissioner of natural resources shall submit to the commissioner of finance 48.11before the start of each fiscal year a work plan showing the estimated work to be done 48.12during the coming year, the estimated cost of doing the work, and the positions and fees 48.13that will be necessary. This account is exempted from statewide and agency indirect 48.14cost payments.48.15    Sec. 19. Minnesota Statutes 2006, section 84.026, subdivision 1, is amended to read:48.16    Subdivision 1. Contracts. The commissioner of natural resources is authorized 48.17to enter into contractual agreements with any public or private entity for the provision 48.18of statutorily prescribed natural resources services by the department. The contracts 48.19shall specify the services to be provided. Except as provided under section 89.421, funds 48.20generated in a contractual agreement made pursuant to this section shall be deposited in 48.21the special revenue fund and are appropriated to the department for purposes of providing 48.22the services specified in the contracts. The commissioner shall report revenues collected 48.23and expenditures made under this subdivision to the chairs of the Committees on Ways and 48.24Means in the house and Finance in the senate by January 1 of each odd-numbered year.48.25    Sec. 20. Minnesota Statutes 2006, section 84.027, is amended by adding a subdivision 48.26to read:48.27    Subd. 13a.Game and fish expedited permanent rules.In addition to the authority 48.28granted in subdivision 13, the commissioner of natural resources may adopt rules under 48.29section 14.389 that are authorized under:48.30    (1) chapters 97A, 97B, and 97C to describe zone or permit area boundaries, to 48.31designate fish spawning beds or fish preserves, to select hunters or anglers for areas, 48.32to provide for registration of game or fish, to prevent or control wildlife disease, or to 48.33correct errors or omissions in rules that do not have a substantive effect on the intent or 48.34application of the original rule; or49.1    (2) section 84D.12 to designate prohibited invasive species, regulated invasive 49.2species, and unregulated nonnative species.49.3    Sec. 21. Minnesota Statutes 2006, section 84.0272, is amended by adding a subdivision 49.4to read:49.5    Subd. 5.Easement information.Parties to an easement purchased under the 49.6authority of the commissioner must:49.7    (1) specify in the easement all provisions that are perpetual in nature;49.8    (2) file the easement with the county recorder or registrar of titles in the county 49.9in which the land is located; and49.10    (3) submit an electronic copy of the easement to the commissioner.49.11    Sec. 22. Minnesota Statutes 2006, section 84.0855, subdivision 1, is amended to read:49.12    Subdivision 1. Sales authorized; gift certificates. The commissioner may 49.13sell natural resources-related publications and maps; forest resource assessment 49.14products; federal migratory waterfowl, junior duck, and other federal stamps; and other 49.15nature-related merchandise, and may rent or sell items for the convenience of persons using 49.16Department of Natural Resources facilities or services. The commissioner may sell gift 49.17certificates for any items rented or sold. Notwithstanding section 
         16A.1285, a fee charged 49.18by the commissioner under this section may include a reasonable amount in excess of the 49.19actual cost to support Department of Natural Resources programs. The commissioner may 49.20advertise the availability of a program or item offered under this section. 49.21    Sec. 23. Minnesota Statutes 2006, section 84.0855, subdivision 2, is amended to read:49.22    Subd. 2. Receipts; appropriation.Except as provided under section 89.421, 49.23money received by the commissioner under this section or to buy supplies for the use of 49.24volunteers, may be credited to one or more special accounts in the state treasury and is 49.25appropriated to the commissioner for the purposes for which the money was received. 49.26Money received from sales at the state fair shall be available for state fair related costs. 49.27Money received from sales of intellectual property and software products or services shall 49.28be available for development, maintenance, and support of software products and systems.49.29    Sec. 24. Minnesota Statutes 2006, section 84.777, is amended to read:49.3084.777 OFF-HIGHWAY VEHICLE USE OF STATE LANDS RESTRICTED.49.31    Subdivision 1.Designated trails. (a) Except as otherwise allowed by law or rules 49.32adopted by the commissioner, effective June 1, 2003, notwithstanding sections 
         84.78749.33to 
         84.805 and 
         84.92 to 
         84.929, the use of off-highway vehicles is prohibited on state 50.1land administered by the commissioner of natural resources, and on county-administered 50.2forest land within the boundaries of a state forest, except on roads and trails specifically 50.3designated and posted by the commissioner for use by off-highway vehicles. 50.4    (b) Paragraph (a) does not apply to county-administered land within a state forest if 50.5the county board adopts a resolution that modifies restrictions on the use of off-highway 50.6vehicles on county-administered land within the forest.50.7    Subd. 2.Off-highway vehicle seasons.(a) The commissioner shall prescribe 50.8seasons for off-highway vehicle use on state forest lands. Except for designated forest 50.9roads, a person must not operate an off-highway vehicle on state forest lands outside of 50.10the seasons prescribed under this paragraph.50.11    (b) The commissioner may designate and post winter trails on state forest lands 50.12for use by off-highway vehicles.50.13    (c) For the purposes of this subdivision, "state forest lands" means forest lands under 50.14the authority of the commissioner as defined in section 89.001, subdivision 13, and lands 50.15managed by the commissioner under section 282.011.50.16    Subd. 3.Mapped trails.Except as provided in sections 84.926 and 84.928, after 50.17completion of off-highway vehicle maps for the area, a person must not operate an 50.18off-highway vehicle on state land that is not mapped for the type of off-highway vehicle.50.19    Subd. 4.Exemption from rulemaking.Determinations of the commissioner under 50.20this section may be by written order published in the State Register and are exempt from 50.21the rulemaking provisions of chapter 14. Section 14.386 does not apply.50.22    Sec. 25. Minnesota Statutes 2006, section 84.780, is amended to read:50.2384.780 OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.50.24    (a) The off-highway vehicle damage account is created in the natural resources fund. 50.25Money in the off-highway vehicle damage account is appropriated to the commissioner of 50.26natural resources for the repair or restoration of property damaged by the illegal operation 50.27of off-highway vehicles or the operation of off-highway vehicles in an unpermitted area 50.28after August 1, 2003, and for the costs of administration for this section. Before the 50.29commissioner may make a payment from this account, the commissioner must determine 50.30whether the damage to the property was caused by the unpermitted or illegal use of 50.31off-highway vehicles, that the applicant has made reasonable efforts to identify the 50.32responsible individual and obtain payment from the individual, and that the applicant has 50.33made reasonable efforts to prevent reoccurrence. By June 30, 2008, the commissioner of 50.34finance must transfer the remaining balance in the account to the off-highway motorcycle 51.1account under section 84.794, the off-road vehicle account under section 84.803, and the 51.2all-terrain vehicle account under section 84.927. The amount transferred to each account 51.3must be proportionate to the amounts received in the damage account from the relevant 51.4off-highway vehicle accounts.51.5    (b) Determinations of the commissioner under this section may be made by written 51.6order and are exempt from the rulemaking provisions of chapter 14. Section 
         14.38651.7does not apply.51.8    (c) This section expires July 1, 2008 Money in the account is available until 51.9expended.51.10    Sec. 26. [84.8045] RESTRICTIONS ON OFF-ROAD VEHICLE TRAILS.51.11    Notwithstanding any provision of sections 84.797 to 84.805 or other law to the 51.12contrary, the commissioner shall not permit land administered by the commissioner in 51.13Cass, Crow Wing, and Hubbard Counties to be used or developed for trails primarily for 51.14off-road vehicles as defined in section 84.797, subdivision 7, except:51.15    (1) upon approval by the legislature; or51.16    (2) in designated off-road vehicle use areas.51.17EFFECTIVE DATE.This section is effective the day following final enactment.51.18    Sec. 27. [84.9011] OFF-HIGHWAY VEHICLE SAFETY AND CONSERVATION 51.19PROGRAM.51.20    Subdivision 1.Creation.The commissioner of natural resources shall establish 51.21a program to promote the safe and responsible operation of off-highway vehicles in a 51.22manner that does not harm the environment.51.23    Subd. 2.Agreements.(a) The commissioner shall enter into  agreements with 51.24organizations for volunteer services that promote the safe and responsible operation 51.25of off-highway vehicles in a manner that does not harm the environment to maintain, 51.26make improvements to, and monitor trails on state forest land and other public lands. 51.27The organizations shall promote the operation of off-highway vehicles in a safe and 51.28responsible manner that complies with the laws and rules that relate to the operation 51.29of off-highway vehicles.51.30    (b) The organizations may provide assistance to the department in locating, 51.31recruiting, and training instructors for off-highway vehicle training programs.51.32    (c) The commissioner may provide assistance to enhance the comfort and safety 51.33of volunteers and to facilitate the implementation and administration of the safety and 51.34conservation program.52.1    (d) The commissioner shall establish standards, train, and certify organizations and 52.2individuals participating as volunteers under this section. The training shall include:52.3    (1) the identification of invasive species;52.4    (2) correctly reporting the location of invasive species; and52.5    (3) basic global positioning system operation.52.6    Subd. 3.Worker displacement prohibited.The commissioner may not enter into 52.7any agreement that has the purpose of or results in the displacement of public employees 52.8by volunteers participating in the off-highway safety and conservation program under 52.9this section. The commissioner must certify to the appropriate bargaining agent that the 52.10work performed by a volunteer will not result in the displacement of currently employed 52.11workers or workers on seasonal layoff or layoff from a substantially equivalent position, 52.12including partial displacement such as reduction in hours of nonovertime work, wages, or 52.13other employment benefits.52.14    Subd. 4.Off-Highway Vehicle Safety Advisory Council.(a) The commissioner 52.15of natural resources shall appoint an Off-Highway Vehicle Safety Advisory Council to 52.16advise the commissioner on:52.17    (1) off-highway vehicle safety; and52.18    (2) standards and certification for organizations and individuals participating as 52.19volunteers under this section.52.20    Sec. 28. Minnesota Statutes 2006, section 84.922, subdivision 1a, is amended to read:52.21    Subd. 1a. Exemptions. All-terrain vehicles exempt from registration are:52.22    (1) vehicles owned and used by the United States, the state, another state, or a 52.23political subdivision;52.24    (2) vehicles registered in another state or country that have not been in this state 52.25for more than 30 consecutive days; and52.26    (3) vehicles used exclusively in organized track racing events; and52.27    (4) vehicles that are 25 years old or older and were originally produced as a separate 52.28identifiable make by a manufacturer.52.29    Sec. 29. Minnesota Statutes 2006, section 84.922, subdivision 5, is amended to read:52.30    Subd. 5. Fees for registration. (a) The fee for a three-year registration of 52.31an all-terrain vehicle under this section, other than those registered by a dealer or 52.32manufacturer under paragraph (b) or (c), is:52.33    (1) for public use before January 1, 2005, $23;52.34    (2) for public use on January 1, 2005, and after, $30 $45;53.1    (3) (2) for private use, $6; and53.2    (4) (3) for a duplicate or transfer, $4.53.3    (b) The total registration fee for all-terrain vehicles owned by a dealer and operated 53.4for demonstration or testing purposes is $50 per year. Dealer registrations are not 53.5transferable.53.6    (c) The total registration fee for all-terrain vehicles owned by a manufacturer and 53.7operated for research, testing, experimentation, or demonstration purposes is $150 per 53.8year. Manufacturer registrations are not transferable.53.9    (d) The fees collected under this subdivision must be credited to the all-terrain 53.10vehicle account.53.11EFFECTIVE DATE.This section is effective January 1, 2008.53.12    Sec. 30. Minnesota Statutes 2006, section 84.927, subdivision 2, is amended to read:53.13    Subd. 2. Purposes. Subject to appropriation by the legislature, money in the 53.14all-terrain vehicle account may only be spent for:53.15    (1) the education and training program under section 
         84.925; 53.16    (2) administration, enforcement, and implementation of sections 
         84.773 to 
         84.929; 53.17    (3) acquisition, maintenance, and development of vehicle trails and use areas;53.18    (4) grant-in-aid programs to counties and municipalities to construct and maintain 53.19all-terrain vehicle trails and use areas;53.20    (5) grants-in-aid to local safety programs; and53.21    (6) enforcement and public education grants to local law enforcement agencies.; and53.22    (7) maintenance of minimum-maintenance forest roads designated under section 53.2389.71, subdivision 5, and county forest roads that are part of a designated trail system 53.24within state forest boundaries as established under section 89.021.53.25    The distribution of funds made available through grant-in-aid programs must be 53.26guided by the statewide comprehensive outdoor recreation plan.53.27    Sec. 31. Minnesota Statutes 2006, section 84.963, is amended to read:53.2884.963 PRAIRIE PLANT SEED PRODUCTION AREAS.53.29    (a) The commissioner of natural resources shall study the feasibility of establishing 53.30private or public prairie plant seed production areas within prairie land locations. If 53.31prairie plant seed production is feasible, the commissioner may aid the establishment of 53.32production areas. The commissioner may enter cost-share or sharecrop agreements with 53.33landowners having easements for conservation purposes of ten or more years on their land 53.34to commercially produce prairie plant seed of Minnesota origin. The commissioner may 54.1only aid prairie plant seed production areas on agricultural land used to produce crops 54.2before December 23, 1985, and cropped three out of five years between 1981 and 1985.54.3    (b) The commissioner shall compile, prepare, and electronically disseminate to 54.4the public prairie establishment guidance materials and resources. The resources must 54.5provide information and guidance on project planning, seed selection including ecotype 54.6and species mix, site preparation, seeding, maintenance, and technical service providers. 54.7The commissioner shall use actual prairie restoration projects under development on 54.8state-owned land to illustrate and demonstrate the practices described.54.9    Sec. 32. Minnesota Statutes 2006, section 84D.02, is amended by adding a subdivision 54.10to read:54.11    Subd. 7.Contracts for services for emergency invasive species prevention work; 54.12commissions to persons employed.The commissioner may contract for or accept the 54.13services of any persons whose aid is available, temporarily or otherwise, in emergency 54.14invasive species prevention work, either gratuitously or for compensation not in excess of 54.15the limits provided by law with respect to the employment of labor by the commissioner. 54.16The commissioner may issue a commission, or other written evidence of authority, to any 54.17person whose services are so arranged for and may thereby empower the person to act, 54.18temporarily or otherwise, in any other capacity, with powers and duties as may be specified 54.19in the commission or other written evidence of authority, but not in excess of the powers 54.20conferred by law. The commissioner of agriculture, under authority provided by law, shall 54.21cooperate with the commissioner in emergency control of invasive species prevention.54.22    Sec. 33. Minnesota Statutes 2006, section 84D.03, subdivision 1, is amended to read:54.23    Subdivision 1. Infested waters; restricted activities. (a) The commissioner shall 54.24designate a water of the state as an infested water if the commissioner determines that:54.25    (1) the water contains a population of an aquatic invasive species that could spread 54.26to other waters if use of the water and related activities are not regulated to prevent this; or54.27    (2) the water is highly likely to be infested by an aquatic invasive species because it 54.28is connected to a water that contains a population of an aquatic invasive species.54.29    (b) When determining which invasive species comprise infested waters, the 54.30commissioner shall consider:54.31    (1) the extent of a species distribution within the state;54.32    (2) the likely means of spread for a species; and54.33    (3) whether regulations specific to infested waters containing a specific species 54.34will effectively reduce that species' spread.55.1    (c) The presence of common carp and curly-leaf pondweed shall not be the basis for 55.2designating a water as infested.55.3    (d) The designation of infested waters by the commissioner shall be by written order 55.4published in the State Register. Designations are not subject to the rulemaking provisions 55.5of chapter 14 and section 14.386 does not apply.55.6    Sec. 34. Minnesota Statutes 2006, section 84D.12, subdivision 1, is amended to read:55.7    Subdivision 1. Required rules. The commissioner shall adopt rules:55.8    (1) designating infested waters, prohibited invasive species, regulated invasive 55.9species, and unregulated nonnative species of aquatic plants and wild animals;55.10    (2) governing the application for and issuance of permits under this chapter, which 55.11rules may include a fee schedule; and55.12    (3) governing notification under section 
         84D.08. 55.13    Sec. 35. Minnesota Statutes 2006, section 84D.12, subdivision 3, is amended to read:55.14    Subd. 3. Expedited rules. The commissioner may adopt rules under section 
         84.027, 55.15subdivision 13
         , that designate: 55.16    (1) prohibited invasive species of aquatic plants and wild animals;55.17    (2) regulated invasive species of aquatic plants and wild animals; and55.18    (3) unregulated nonnative species of aquatic plants and wild animals; and55.19    (4) infested waters.55.20    Sec. 36. Minnesota Statutes 2006, section 84D.13, subdivision 7, is amended to read:55.21    Subd. 7. Satisfaction of civil penalties. A civil penalty is due and a watercraft 55.22license suspension is effective 30 days after issuance of the civil citation. A civil penalty 55.23collected under this section is payable to the commissioner and must be credited to the 55.24water recreation account invasive species account.55.25    Sec. 37. Minnesota Statutes 2006, section 84D.14, is amended to read:55.2684D.14 EXEMPTIONS.55.27    This chapter does not apply to:55.28    (1) pathogens and terrestrial arthropods regulated under sections 
         18G.01 to 
         18G.1655.2918G.15; or 55.30    (2) mammals and birds defined by statute as livestock.55.31    Sec. 38. [84D.15] INVASIVE SPECIES ACCOUNT.56.1    Subdivision 1.Creation.The invasive species account is created in the state 56.2treasury in the natural resources fund.56.3    Subd. 2.Receipts.Money received from surcharges on watercraft licenses under 56.4section 86B.415, subdivision 7, and civil penalties under section 84D.13 shall be deposited 56.5in the invasive species account. Each year, the commissioner of finance shall transfer from 56.6the game and fish fund to the invasive species account, the annual surcharge collected on 56.7nonresident fishing licenses under section 97A.475, subdivision 7, paragraph (b).56.8    Subd. 3.Use of money in account.Money credited to the invasive species account 56.9in subdivision 2 shall be used for management of invasive species and implementation of 56.10this chapter as it pertains to invasive species, including control, public awareness, law 56.11enforcement, assessment and monitoring, management planning, and research.56.12    Sec. 39. Minnesota Statutes 2006, section 85.013, is amended by adding a subdivision 56.13to read:56.14    Subd. 11b.Greenleaf Lake State Recreation Area, which is hereby renamed from 56.15Greenleaf Lake State Park.56.16    Sec. 40. [85.0146] CUYUNA COUNTRY STATE RECREATION AREA; 56.17CITIZENS ADVISORY COUNCIL.56.18    Subdivision 1.Advisory council created.The Cuyuna Country State Recreation 56.19Area Citizens Advisory Council is established. Membership on the advisory council 56.20shall include:56.21    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers 56.22Board;56.23    (2) a representative of the Croft Mine Historical Park Joint Powers Board;56.24    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has 56.25worked as a miner in the local area;56.26    (4) a representative of the Crow Wing County Board;56.27    (5) an elected state official;56.28    (6) a representative of the Grand Rapids regional office of the Department of Natural 56.29Resources;56.30    (7) a designee of the Iron Range Resources and Rehabilitation Board;56.31    (8) a designee of the local business community selected by the area chambers of 56.32commerce;56.33    (9) a designee of the local environmental community selected by the Crow Wing 56.34County District 5 commissioner;57.1    (10) a designee of a local education organization selected by the Crosby-Ironton 57.2School Board; 57.3    (11) a designee of one of the recreation area user groups selected by the Cuyuna 57.4Range Chamber of Commerce; and 57.5    (12) a member of the Cuyuna Country Heritage Preservation Society.57.6    Subd. 2.Administration.(a) The advisory council must meet at least four times 57.7annually. The council shall elect a chair and meetings shall be at the call of the chair.57.8    (b) Members of the advisory council shall serve as volunteers for two-year terms 57.9with the ability to be reappointed. Members shall accept no per diem.57.10    (c) The state recreation area manager may attend the council meetings and advise 57.11the council of issues in management of the recreation area.57.12    (d) Before a major decision is implemented in the Cuyuna Country State Recreation 57.13Area, the area manager must consult with the council and take into consideration any 57.14council comments or advice that may impact the major decision.57.15    Sec. 41. Minnesota Statutes 2006, section 85.054, is amended by adding a subdivision 57.16to read:57.17    Subd. 13.Cuyuna Country State Recreation Area.A state park permit is not 57.18required and a fee may not be charged for motor vehicle entry or parking at Croft Mine 57.19Historical Park and Portsmouth Mine Lake Overlook in Cuyuna Country State Recreation 57.20Area, except for overnight camping. 57.21    Sec. 42. Minnesota Statutes 2006, section 85.32, subdivision 1, is amended to read:57.22    Subdivision 1. Areas marked. The commissioner of natural resources is authorized 57.23in cooperation with local units of government and private individuals and groups when 57.24feasible to mark canoe and boating routes on the Little Fork, Big Fork, Minnesota, 57.25St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, 57.26St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift 57.27County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in Swift County 57.28to Montevideo in Chippewa County, Long Prairie, Red River of the North, Sauk, Otter 57.29Tail, Redwood, and Crow Rivers which have historic and scenic values and to mark 57.30appropriately points of interest, portages, camp sites, and all dams, rapids, waterfalls, 57.31whirlpools, and other serious hazards which are dangerous to canoe and watercraft 57.32travelers.57.33    Sec. 43. Minnesota Statutes 2006, section 86B.706, subdivision 2, is amended to read:58.1    Subd. 2. Money deposited in account. The following shall be deposited in the state 58.2treasury and credited to the water recreation account:58.3    (1) fees and surcharges from titling and licensing of watercraft under this chapter;58.4    (2) fines, installment payments, and forfeited bail according to section 
         86B.705, 58.5subdivision 2
         ;58.6    (3) civil penalties according to section 84D.13;58.7    (4) mooring fees and receipts from the sale of marine gas at state-operated or 58.8state-assisted small craft harbors and mooring facilities according to section 
         86A.21;58.9    (5)(4) the unrefunded gasoline tax attributable to watercraft use under section 58.10296A.18
         ; and58.11    (6)(5) fees for permits issued to control or harvest aquatic plants other than wild 58.12rice under section 
         103G.615, subdivision 2.58.13    Sec. 44. Minnesota Statutes 2006, section 88.01, is amended by adding a subdivision 58.14to read:58.15    Subd. 27.Community forest."Community forest" means public and private trees 58.16and associated plants occurring individually, in small groups, or under forest conditions 58.17within a municipality.58.18    Sec. 45. Minnesota Statutes 2006, section 88.79, subdivision 1, is amended to read:58.19    Subdivision 1. Employment of competent foresters; service to private owners.58.20    The commissioner of natural resources may employ competent foresters to furnish owners 58.21of forest lands within the state of Minnesota who own not more than 1,000 acres of forest 58.22land, forest management services consisting of: 58.23    (1) advice in management and protection of timber, including written stewardship 58.24and forest management plans; 58.25    (2) selection and marking of timber to be cut; 58.26    (3) measurement of products; 58.27    (4) aid in marketing harvested products;58.28    (5) provision of tree-planting equipment; and58.29    (6) advice in community forest management; and58.30    (7) such other services as the commissioner of natural resources deems necessary 58.31or advisable to promote maximum sustained yield of timber and other benefits upon 58.32such forest lands.58.33    Sec. 46. Minnesota Statutes 2006, section 88.79, subdivision 2, is amended to read:59.1    Subd. 2. Charge for service; receipts to special revenue fund. The commissioner 59.2of natural resources may charge the owner receiving such services such sums as the 59.3commissioner shall determine to be fair and reasonable. The charges must account for 59.4differences in the value of timber and other benefits. The receipts from such services shall 59.5be credited to the special revenue fund and are annually appropriated to the commissioner 59.6for the purposes specified in subdivision 1.59.7    Sec. 47. Minnesota Statutes 2006, section 88.82, is amended to read:59.888.82 MINNESOTA RELEAF PROGRAM.59.9    The Minnesota releaf program is established in the Department of Natural Resources 59.10to encourage, promote, and fund the inventory, planting, assessment, maintenance, and59.11improvement, protection, and restoration of trees and forest resources in this state to 59.12enhance community forest ecosystem health and sustainability as well as to reduce 59.13atmospheric carbon dioxide levels and promote energy conservation.59.14    Sec. 48. Minnesota Statutes 2006, section 89.001, subdivision 8, is amended to read:59.15    Subd. 8. Forest resources. "Forest resources" means those natural assets of forest 59.16lands, including timber and other forest crops; biological diversity; recreation; fish and 59.17wildlife habitat; wilderness; rare and distinctive flora and fauna; air; water; soil; climate; 59.18and educational, aesthetic, and historic values.59.19    Sec. 49. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision 59.20to read:59.21    Subd. 15.Forest pest."Forest pest" means any vertebrate or invertebrate animal, 59.22plant pathogen, or plant that is determined by the commissioner to be harmful, injurious, 59.23or destructive to forests or timber.59.24    Sec. 50. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision 59.25to read:59.26    Subd. 16.Shade tree pest."Shade tree pest" means any vertebrate or invertebrate 59.27animal, plant pathogen, or plant that is determined by the commissioner to be harmful, 59.28injurious, or destructive to shade trees or community forests.59.29    Sec. 51. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision 59.30to read:59.31    Subd. 17.Community forest."Community forest" has the meaning given under 59.32section 88.01, subdivision 27.60.1    Sec. 52. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision 60.2to read:60.3    Subd. 18.Shade tree."Shade tree" means a woody perennial grown primarily 60.4for aesthetic or environmental purposes.60.5    Sec. 53. Minnesota Statutes 2006, section 89.01, subdivision 1, is amended to read:60.6    Subdivision 1. Best methods. The commissioner shall ascertain and observe the 60.7best methods of reforesting cutover and denuded lands, foresting waste lands, preventing 60.8destructionminimizing loss or damage of forests and landsforest resources by fire, forest 60.9pests, or shade tree pests, administering forests on forestry principles, encouraging private 60.10owners to preserve and grow trees or timber for commercial or other purposes, and 60.11conserving the forests around the head waters of streams and on the watersheds of the state.60.12    Sec. 54. Minnesota Statutes 2006, section 89.01, subdivision 2, is amended to read:60.13    Subd. 2. General duties. The commissioner shall execute all rules pertaining 60.14to forestry and forest protection within the jurisdiction of the state; have charge of the 60.15work of protecting all forests and lands from fire, forest pests, and shade tree pests; 60.16shall investigate the origin of all forest fires; and prosecute all violators as provided by 60.17law; shall prepare and print for public distribution an abstract of the forest fire laws of 60.18Minnesota, together with such rules as may be formulated.60.19    The commissioner shall prepare printed notices calling attention to the dangers from 60.20forest fires and cause them to be posted in conspicuous places.60.21    Sec. 55. Minnesota Statutes 2006, section 89.01, subdivision 4, is amended to read:60.22    Subd. 4. Forest plans. The commissioner shall cooperate with the several 60.23departments of the state and federal governments and with counties, towns, municipalities, 60.24corporations, or individuals in the preparation of plans for forest protection,and 60.25management, and planting or  replacement of trees, in wood lots, and community forests 60.26or on timber tracts, using such influence as time will permit toward the establishment of 60.27scientific forestry principles in the management, protection, and promotion of the forest 60.28resources of the state.60.29    Sec. 56. Minnesota Statutes 2006, section 89.22, subdivision 2, is amended to read:60.30    Subd. 2. Receipts to natural resources special revenue fund. Fees collected under 60.31subdivision 1 shall be credited to a forest land use account in the natural resources fund60.32the special revenue fund and are annually appropriated to the commissioner to recoup the 61.1costs of developing, operating, and maintaining facilities necessary for the specified uses 61.2in subdivision 1 or to prevent or mitigate resource impacts of those uses. 61.3EFFECTIVE DATE.This section is effective July 1, 2007, and applies to fees 61.4collected according to Minnesota Statutes, section 89.22, subdivision 1, after August 61.51, 2006.61.6    Sec. 57. [89.421] FOREST RESOURCE ASSESSMENT PRODUCTS AND 61.7SERVICES ACCOUNT.61.8    Subdivision 1.Creation.The forest resource assessment products and services 61.9account is created in the state treasury in the natural resources fund.61.10    Subd. 2.Receipts.Money received from forest resource assessment product sales 61.11and services provided by the commissioner under sections 84.025, subdivision 9; 84.026; 61.12and 84.0855 shall be credited to the forest resource assessment products and services 61.13account. Forest resource assessment products and services include the sale of aerial 61.14photography, remote sensing, and satellite imagery products and services.61.15    Subd. 3.Use of money in account.Money credited to the forest resource 61.16assessment products and services account under subdivision 2 is annually appropriated to 61.17the commissioner and shall be used to maintain the staff and facilities producing the aerial 61.18photography, remote sensing, and satellite imagery products and services.61.19    Sec. 58. Minnesota Statutes 2006, section 89.51, subdivision 1, is amended to read:61.20    Subdivision 1. Applicability. For the purposes of sections 
         89.51 to 
         89.61 89.64 the 61.21terms described in this section have the meanings ascribed to them. 61.22    Sec. 59. Minnesota Statutes 2006, section 89.51, subdivision 6, is amended to read:61.23    Subd. 6. Infestation."Infestation," includes actual, potential, incipient, or 61.24emergency emergent infestation or infection by forest pests or shade tree pests.61.25    Sec. 60. Minnesota Statutes 2006, section 89.51, subdivision 9, is amended to read:61.26    Subd. 9. Forest land or forest."Forest land" or "forest," means land on which 61.27occurs a stand or potential stand of trees valuable for timber products, watershed or 61.28wildlife protection, recreational uses, community forest benefits, or other purposes, and 61.29shall include lands owned or controlled by the state of Minnesota.61.30    Sec. 61. Minnesota Statutes 2006, section 89.52, is amended to read:61.3189.52 SURVEYS, INVESTIGATIONS.62.1    The commissioner shall make surveys and investigations to determine the presence 62.2of infestations of forest pests or shade tree pests. For this purpose, duly designated 62.3representatives of the commissioner may enter at reasonable times on public and private 62.4lands for the purpose of conducting such to conduct the surveys and investigations.62.5    Sec. 62. Minnesota Statutes 2006, section 89.53, is amended to read:62.689.53 CONTROL OF FOREST PESTS AND SHADE TREE PESTS.62.7    Subdivision 1. Commissioner's duties; notice of control measures. Whenever the 62.8commissioner finds that an area in the state is infested or threatened to be infested with 62.9forest pests or shade tree pests, the commissioner shall determine whether measures of 62.10control are needed and are available, what control measures are to be applied, and the area 62.11over which the control measures shall be applied. The commissioner shall prescribe 62.12a proposed zone of infestation covering the area in which control measures are to be 62.13applied and shall publish notice of the proposal once a week, for two successive weeks 62.14in a newspaper having a general circulation in each county located in whole or in part 62.15in the proposed zone of infestation. Prescribing zones of infestation isand prescribing 62.16measures of control are exempt from the rulemaking provisions of chapter 14 and section 62.1714.386
          does not apply. 62.18    Subd. 2. Notice requirements; public comment. The notice shall include a 62.19description of the boundaries of the proposed zone of infestation, the control measures 62.20to be applied, and a time and place where municipalities and owners of forest lands or 62.21shade trees in the zone may show cause orally or in writing why the zone and control 62.22measures should or should not be established. The commissioner shall consider any 62.23statements received in determining whether the zone shall be established and the control 62.24measures applied.62.25    Subd. 3.Experimental programs.The commissioner may establish experimental 62.26programs for the control of forest pests or shade tree pests and for municipal reforestation.62.27    Sec. 63. Minnesota Statutes 2006, section 89.54, is amended to read:62.2889.54 ZONES OF INFESTATION, ESTABLISHMENT.62.29    Upon the decision by the commissioner that the establishment of a zone of 62.30infestation is necessary, the commissioner shall make a written order establishing said62.31the  zone, and upon making said the order, said the zone shall be established. Notice of the 62.32establishment of the zone shall thereupon be published in a newspaper having a general 63.1circulation in each county located in whole or in part in the proposed zone and posted on 63.2the Department of Natural Resources Web site.63.3    Sec. 64. Minnesota Statutes 2006, section 89.55, is amended to read:63.489.55 INFESTATION CONTROL, COSTS.63.5    Upon the establishment of the zone of infestation, the commissioner may apply 63.6measures of infestation prevention and control on public and private forest and other 63.7lands within such zone and to any trees, timber, plants or shrubs thereon, wood or wood 63.8products, or contaminated soil  harboring or which may harbor the forest pests or shade 63.9tree pests. For this purpose, the duly authorized representatives of the commissioner 63.10are authorized to enter upon any lands, public or private within such the zone. The 63.11commissioner may enter into agreements with owners of the lands in the zone covering 63.12the control work on their lands, and fixing the pro rata basis on which the cost of such the63.13work will be shared between the commissioner and said the owner.63.14    Sec. 65. Minnesota Statutes 2006, section 89.56, subdivision 1, is amended to read:63.15    Subdivision 1. Statement of expenses; cost to owners. At the end of each fiscal 63.16year and upon completion of the infestation control measures in any zone of infestation, 63.17the commissioner shall prepare a certified statement of expenses incurred in carrying 63.18out such the measures, including expenses of owners covered by agreements entered 63.19into pursuant to section 
         89.55. The statement shall show the amount which that the 63.20commissioner determines to be its the commissioner's share of the expenses. The share of 63.21the commissioner may include funds and the value of other contributions made available 63.22by the federal government and other cooperators. The balance of such the costs shall 63.23constitute a charge on an acreage basis as provided herein against the owners of lands in 63.24the zone containing trees valuable or potentially valuable for commercial timber purposes 63.25and affected or likely to be affected by the forest pests or shade tree pests for which control 63.26measures were conducted. In fixing the rates at which charges shall be made against each 63.27owner, the commissioner shall consider the present commercial value of the trees on the 63.28land, the present and potential benefits to such the owner from the application of the 63.29control measures, and the cost of applying such the measures to the land, and such other 63.30factors as in the discretion of the commissioner will enable determination of an equitable 63.31distribution of the cost to all such owners. No charge shall be made against owners to the 63.32extent that they have individually or as members of a cooperative association contributed 63.33funds, supplies, or services pursuant to agreement under this section. 63.34    Sec. 66. Minnesota Statutes 2006, section 89.56, subdivision 3, is amended to read:64.1    Subd. 3. Collection. The unpaid charges assessed under sections 
         89.51 to 
         89.6164.289.64 and the actions of the commissioner on any protests filed pursuant to subdivision 2, 64.3shall be reported to the tax levying authority for the county in which the lands for which 64.4the charges are assessed are situated and shall be made a public record. Any charges 64.5finally determined to be due shall become a special assessment and shall be payable 64.6in the same manner and with the same interest and penalty charges and with the same 64.7procedure for collection as apply to ad valorem property taxes. Upon collection of the 64.8charges, the county treasurer shall forthwith cause the amounts thereof to be paid to the 64.9forest pest and shade tree pest control fund account created by section 
         89.58. Any unpaid 64.10charge or lien against the lands shall not be affected by the sale thereof or by dissolution 64.11of the zone of infestation. 64.12    Sec. 67. Minnesota Statutes 2006, section 89.57, is amended to read:64.1389.57 DISSOLUTION OF ZONE INFESTATION.64.14    Whenever the commissioner shall determine that forest pest or shade tree pest 64.15control work within an established zone of infestation is no longer necessary or feasible, 64.16the commissioner shall dissolve the zone.64.17    Sec. 68. Minnesota Statutes 2006, section 89.58, is amended to read:64.1889.58 FOREST PEST AND SHADE TREE PEST CONTROL ACCOUNT.64.19    All money collected under the provisions of sections 
         89.51 to 
         89.61 89.64, together 64.20with such money as may be appropriated by the legislature or allocated by the Legislative 64.21Advisory Commission for the purposes of sections 
         89.51 to 
         89.61 89.64, and such money 64.22as may be contributed or paid by the federal government, or any other public or private 64.23agency, organization or individual, shall be deposited in the state treasury, to the credit 64.24of the forest pest and shade tree pest control account, which account is hereby created, 64.25and any moneys therein are appropriated to the commissioner for use in carrying out the 64.26purposes hereof of sections 89.51 to 89.64. 64.27    Sec. 69. Minnesota Statutes 2006, section 89.59, is amended to read:64.2889.59 COOPERATION.64.29    The commissioner may cooperate with the United States or agencies thereof, other 64.30agencies of the state, county or municipal governments, agencies of neighboring states, or 64.31other public or private organizations or individuals and may accept such funds, equipment, 64.32supplies, or services from cooperators and others as itthe commissioner may provide in 65.1agreements with the United States or its agencies for matching of federal funds as required 65.2under laws of the United States relating to forest pests and shade tree pests.65.3    Sec. 70. Minnesota Statutes 2006, section 89.60, is amended to read:65.489.60 DUTIES, RULES; COMMISSIONER.65.5    The commissioner is authorized to employ personnel in accordance with the laws of 65.6this state, to procure necessary equipment, supplies, and service, to enter into contracts, to 65.7provide funds to any agency of the United States for work or services under sections 
         89.5165.8to 
         89.61 89.64, and to designate or appoint, as its the commissioner's representatives, 65.9employees of its cooperators, including employees of the United States or any agency 65.10thereof. The commissioner may prescribe rules for carrying out the purposes hereof65.11of this section. 65.12    Sec. 71. Minnesota Statutes 2006, section 89.61, is amended to read:65.1389.61 ACT SUPPLEMENTAL.65.14    Provisions of sections 
         89.51 to 
         89.61 89.64 are supplementary to and not to be 65.15construed to repeal existing legislation. 65.16    Sec. 72. [89.62] SHADE TREE PEST CONTROL; GRANT PROGRAM.65.17    Subdivision 1.Grants.The commissioner may make grants to aid in the control of 65.18a shade tree pest. To be eligible, a grantee must have a pest control program approved 65.19by the commissioner that:65.20    (1) defines tree ownership and who is responsible for the costs associated with 65.21control measures;65.22    (2) defines the zone of infestation within which the control measures are to be 65.23applied;65.24    (3) includes a tree inspector certified under section 89.63 and having the authority to 65.25enter and inspect private lands;65.26    (4) has the means to enforce measures needed to limit the spread of shade tree 65.27pests; and65.28    (5) provides that grant money received will be deposited in a separate fund to be 65.29spent only for the purposes authorized by this section.65.30    Subd. 2.Grant eligibility.The following are eligible for grants under this section:65.31    (1) a home rule charter or statutory city or a town that exercises municipal powers 65.32under section 368.01 or any general or special law; 65.33    (2) a special park district organized under chapter 398; 66.1    (3) a special-purpose park and recreation board; 66.2    (4) a soil and water conservation district; 66.3    (5) a county; or66.4    (6) any other organization with the legal authority to enter into contractual 66.5agreements.66.6    Subd. 3.Rules; applicability to municipalities.The rules and procedures adopted 66.7under this section by the commissioner apply in a municipality unless the municipality 66.8adopts an ordinance determined by the commissioner to be more stringent than the rules 66.9and procedures of the commissioner. The rules and procedures of the commissioner or 66.10the municipality apply to all state agencies, special purpose districts, and metropolitan 66.11commissions as defined in section 473.121, subdivision 5a, that own or control land 66.12adjacent to or within a zone of infestation.66.13    Sec. 73. [89.63] CERTIFICATION OF TREE INSPECTORS.66.14    (a) The governing body of a municipality may appoint a qualified tree inspector. 66.15Two or more municipalities may jointly appoint a tree inspector for the purpose of 66.16administering their respective pest control programs.66.17    (b) Upon a determination by the commissioner that a candidate for the position 66.18of tree inspector is qualified, the commissioner shall issue a certificate of qualification 66.19to the tree inspector. The certificate is valid for one year. A person certified as a tree 66.20inspector by the commissioner may enter and inspect any public or private property that 66.21might harbor forest pests or shade tree pests. The commissioner shall offer an annual tree 66.22inspector certification workshop, upon completion of which participants are qualified 66.23as tree inspectors.66.24    (c) The commissioner may suspend and, upon notice and hearing, decertify a 66.25tree inspector if the tree inspector fails to act competently or in the public interest in 66.26the performance of duties.66.27    Sec. 74. [89.64] EXEMPTIONS.66.28    This chapter does not supersede the authority of the Department of Agriculture 66.29under chapter 18G.66.30    Sec. 75. Minnesota Statutes 2006, section 89A.11, is amended to read:66.3189A.11 REPEALER.66.32    Sections 
         89A.01; 
         89A.02; 
         89A.03; 
         89A.04; 
         89A.05; 
         89A.06; 
         89A.07; 
         89A.08; 66.3389A.09
         ; 
         89A.10; and 
         89A.11, are repealed June 30, 2007 2017.67.1    Sec. 76. Minnesota Statutes 2006, section 90.161, is amended by adding a subdivision 67.2to read:67.3    Subd. 4.Change of security.Prior to any harvest activity, or activities incidental 67.4to the preparation for harvest, a purchaser having posted a bond for 100 percent of the 67.5purchase price of a sale may request the release of the bond and the commissioner shall 67.6grant the release upon cash payment to the commissioner of 15 percent of the appraised 67.7value of the sale, plus eight percent interest on the appraised value of the sale from the 67.8date of purchase to the date of release.67.9EFFECTIVE DATE.This section is effective the day following final enactment.67.10    Sec. 77. Minnesota Statutes 2006, section 93.0015, subdivision 3, is amended to read:67.11    Subd. 3. Expiration. Notwithstanding section 
         15.059, subdivision 5, or other law to 67.12the contrary, the committee expires June 30, 2007 2011. 67.13    Sec. 78. Minnesota Statutes 2006, section 93.22, subdivision 1, is amended to read:67.14    Subdivision 1. Generally.(a) All payments under sections 
         93.14 to 
         93.285 shall 67.15be made to the Department of Natural Resources and shall be credited according to this 67.16section. 67.17    (a) If the lands or minerals and mineral rights covered by a lease are held by the state 67.18by virtue of an act of Congress, payments made under the lease shall be credited to the 67.19permanent fund of the class of land to which the leased premises belong.67.20    (b) If a lease covers the bed of navigable waters, payments made under the lease 67.21shall be credited to the permanent school fund of the state.67.22    (c) If the lands or minerals and mineral rights covered by a lease are held by the 67.23state in trust for the taxing districts, payments made under the lease shall be distributed 67.24annually on the first day of September as follows:67.25    (1) 20 percent to the general fund; and67.26    (2) 80 percent to the respective counties in which the lands lie, to be apportioned 67.27among the taxing districts interested therein as follows: county, three-ninths; town or city, 67.28two-ninths; and school district, four-ninths.67.29    (d) Except as provided under this section and except where the disposition of 67.30payments may be otherwise directed by law, all payments shall be paid into the general 67.31fund of the state.67.32    (b) Twenty percent of all payments under sections 93.14 to 93.285 shall be 67.33credited to the minerals management account in the natural resources fund as costs for 68.1the administration and management of state mineral resources by the commissioner of 68.2natural resources.68.3    (c) The remainder of the payments shall be credited as follows:68.4    (1) if the lands or minerals and mineral rights covered by a lease are held by the state 68.5by virtue of an act of Congress, payments made under the lease shall be credited to the 68.6permanent fund of the class of land to which the leased premises belong;68.7    (2) if a lease covers the bed of navigable waters, payments made under the lease 68.8shall be credited to the permanent school fund of the state;68.9    (3) if the lands or minerals and mineral rights covered by a lease are held by the state 68.10in trust for the taxing districts, payments made under the lease shall be distributed annually 68.11on the first day of September to the respective counties in which the lands lie, to be 68.12apportioned among the taxing districts interested therein as follows: county, three-ninths; 68.13town or city, two-ninths; and school district, four-ninths;68.14    (4) if the lands or mineral rights covered by a lease became the absolute property of 68.15the state under the provisions of chapter 84A, payments made under the lease shall be 68.16distributed as follows: county containing the land from which the income was derived, 68.17five-eighths; and general fund of the state, three-eighths; and68.18    (5) except as provided under this section and except where the disposition of 68.19payments may be otherwise directed by law, payments made under a lease shall be paid 68.20into the general fund of the state.68.21    Sec. 79. Minnesota Statutes 2006, section 97A.045, is amended by adding a 68.22subdivision to read:68.23    Subd. 12.Establishing fees.Notwithstanding section 16A.1283, the commissioner 68.24may, by written order published in the State Register, establish fees providing for the use 68.25of state wildlife management area or aquatic management area lands for specific purposes, 68.26including dog trials, special events, and commercial uses. The fees are not subject to the 68.27rulemaking provisions of chapter 14 and section 14.386 does not apply.68.28    Sec. 80. Minnesota Statutes 2006, section 97A.055, subdivision 4, is amended to read:68.29    Subd. 4. Game and fish annual reports. (a) By December 15 each year, 68.30the commissioner shall submit to the legislative committees having jurisdiction over 68.31appropriations and the environment and natural resources reports on each of the following:68.32    (1) the amount of revenue from the following and purposes for which expenditures 68.33were made:68.34    (i) the small game license surcharge under section  
         97A.475, subdivision 4; 69.1    (ii) the Minnesota migratory waterfowl stamp under section  
         97A.475, subdivision 69.25
         , clause (1); 69.3    (iii) the trout and salmon stamp under section  
         97A.475, subdivision 10; 69.4    (iv) the pheasant stamp under section  
         97A.475, subdivision 5, clause (2); and69.5    (v) the turkey stamp under section  
         97A.475, subdivision 5, clause (3); and69.6    (vi) the deer license donations and surcharges under section 97A.475, subdivisions 69.73, paragraph (b), and 3a;69.8    (2) the amounts available under section  
         97A.075, subdivision 1, paragraphs (b) and 69.9(c), and the purposes for which these amounts were spent; 69.10    (3) money credited to the game and fish fund under this section and purposes for 69.11which expenditures were made from the fund;69.12    (4) outcome goals for the expenditures from the game and fish fund; and69.13    (5) summary and comments of citizen oversight committee reviews under 69.14subdivision 4b.69.15    (b) The report must include the commissioner's recommendations, if any, for 69.16changes in the laws relating to the stamps and surcharge referenced in paragraph (a).69.17    Sec. 81. Minnesota Statutes 2006, section 97A.065, is amended by adding a 69.18subdivision to read:69.19    Subd. 6.Deer license donations and surcharges.(a) The surcharges and donations 69.20collected under section 97A.475, subdivision 3, paragraph (b), and subdivision 3a, 69.21shall be deposited in an account in the special revenue fund and are appropriated to 69.22the commissioner for deer management, including for grants or payments to agencies, 69.23organizations, or individuals for assisting with the cost of processing deer taken for 69.24population management purposes for venison donation programs. None of the additional 69.25license fees shall be transferred to any other agency for administration of programs other 69.26than venison donation. If any money transferred by the commissioner is not used for a 69.27venison donation program, it shall be returned to the commissioner. 69.28    (b) By February 10, 2010, the commissioner shall report to the legislature on the 69.29participation in and the effectiveness of the venison donation program.69.30    Sec. 82. Minnesota Statutes 2006, section 97A.133, is amended by adding a 69.31subdivision to read:69.32    Subd. 66. Vermillion Highlands Wildlife Management Area, Dakota County.69.33    Sec. 83. Minnesota Statutes 2006, section 97A.205, is amended to read:69.3497A.205 ENFORCEMENT OFFICER POWERS.70.1    An enforcement officer is authorized to:70.2    (1) execute and serve court issued warrants and processes relating to wild animals, 70.3wild rice, public waters, water pollution, conservation, and use of water, in the same 70.4manner as a sheriff;70.5    (2) enter any land to carry out the duties and functions of the division;70.6    (3) make investigations of violations of the game and fish laws;70.7    (4) take an affidavit, if it aids an investigation;70.8    (5) arrest, without a warrant, a person who is detected in the actual violation of the 70.9game and fish laws, a provision of chapters 84, 84A, 84D, 85, 86A, 88 to 97C, 103E, 70.10103F, 103G, sections 
         86B.001 to 
         86B.815, 
         89.51 to 
         89.61 89.64; or 
         609.66, subdivision 1, 70.11clauses (1), (2), (5), and (7); and 
         609.68; and 70.12    (6) take an arrested person before a court in the county where the offense was 70.13committed and make a complaint.70.14    Nothing in this section grants an enforcement officer any greater powers than other 70.15licensed peace officers.70.16    Sec. 84. Minnesota Statutes 2006, section 97A.405, subdivision 2, is amended to read:70.17    Subd. 2. Personal possession. (a) A person acting under a license or traveling from 70.18an area where a licensed activity was performed must have in personal possession either: 70.19(1) the proper license, if the license has been issued to and received by the person; or (2) 70.20the proper license identification number or stamp validation, if the license has been sold to 70.21the person by electronic means but the actual license has not been issued and received.70.22    (b) If possession of a license or a license identification number is required, a person 70.23must exhibit, as requested by a conservation officer or peace officer, either: (1) the proper 70.24license if the license has been issued to and received by the person; or (2) the proper 70.25license identification number or stamp validation and a valid state driver's license, state 70.26identification card, or other form of identification provided by the commissioner, if the 70.27license has been sold to the person by electronic means but the actual license has not 70.28been issued and received.70.29    (c) If the actual license has been issued and received, a receipt for license fees, a 70.30copy of a license, or evidence showing the issuance of a license, including the license 70.31identification number or stamp validation, does not entitle a licensee to exercise the rights 70.32or privileges conferred by a license.70.33    (d) A license or stamp issued electronically and not immediately provided to the 70.34licensee shall be mailed to the licensee within 30 days of purchase of the license or stamp 70.35validation, except for a pictorial turkey stamp or a pictorial trout and salmon stamp. A 71.1pictorial turkey stamp or a pictorial, migratory waterfowl, pheasant, or trout and salmon 71.2stamp shall be mailed provided to the licensee after purchase of a license or stamp 71.3validation only if the licensee pays an additional $2 fee.71.4    Sec. 85. Minnesota Statutes 2006, section 97A.411, subdivision 1, is amended to read:71.5    Subdivision 1. License period. (a) Except as provided in paragraphs (b), (c), and71.6(d), and (e), a license is valid during the lawful time within the license year that the 71.7licensed activity may be performed. A license year begins on the first day of March and 71.8ends on the last day of February.71.9    (b) A license issued under section 
         97A.475, subdivision 6, clause (5), 
         97A.475, 71.10subdivision 7
         , clause (2), (3), (5), or (6), or 
         97A.475, subdivision 12, clause (2), is valid 71.11for the full license period even if this period extends into the next license year, provided 71.12that the license period selected by the licensee begins at the time of issuance. 71.13    (c) When the last day of February falls on a Saturday, an annual resident or 71.14nonresident fish house or dark house license, including a rental fish house or dark house 71.15license, obtained for the license year covering the last day of February, is valid through 71.16Sunday, March 1 and the angling license of the fish house licensee is extended through 71.17March 1.71.18    (d) A lifetime license issued under section 
         97A.473 or 
         97A.474 is valid during the 71.19lawful time within the license year that the licensed activity may be performed for the 71.20lifetime of the licensee. 71.21    (e) A three-year fish house or dark house license is valid during the license year that 71.22it is purchased and the two succeeding license years.71.23    Sec. 86. Minnesota Statutes 2006, section 97A.451, subdivision 3a, is amended to read:71.24    Subd. 3a. Nonresidents under age 16 18; small game. (a) A nonresident under 71.25age 16 18 may obtain a small game license at the resident fee under section 97A.475, 71.26subdivision 2, clause (2), if the nonresident:71.27    (1) possesses a firearms safety certificate; or71.28    (2) if age 13 or under, is accompanied by a parent or guardian when purchasing 71.29the license.71.30    (b) A nonresident age 13 or under must be accompanied by a parent or guardian 71.31to take small game. A nonresident age 12 or under is not required to possess a firearms 71.32safety certificate under section 
         97B.020 to take small game. 71.33    Sec. 87. Minnesota Statutes 2006, section 97A.465, is amended by adding a 71.34subdivision to read:72.1    Subd. 1a.Spouses of residents on active military duty.Notwithstanding section 72.297A.405, subdivision 5, the spouse of a resident who is on active military duty may obtain 72.3resident hunting and fishing licenses.72.4    Sec. 88. Minnesota Statutes 2006, section 97A.465, is amended by adding a 72.5subdivision to read:72.6    Subd. 1b.Residents discharged from active service.(a) A resident who has served 72.7at any time during the preceding 24 months in federal active service, as defined in section 72.8190.05, subdivision 5c, outside the United States as a member of the National Guard, or as 72.9a reserve component or active duty member of the United States armed forces and has 72.10been discharged from active service may take small game and fish without a license if the 72.11resident possesses official military discharge papers. The resident must obtain the seals, 72.12tags, and coupons required of a licensee, which must be furnished without charge.72.13    (b) The commissioner shall issue, without fee, a deer license to a resident who has 72.14served at any time during the preceding 24 months in federal active service, as defined 72.15in section 190.05, subdivision 5c, outside the United States as a member of the National 72.16Guard, or as a reserve component or active duty member of the United States armed 72.17forces and has been discharged from active service. Eligibility under this paragraph is 72.18limited to one license per resident.72.19    Sec. 89. Minnesota Statutes 2006, section 97A.473, subdivision 3, is amended to read:72.20    Subd. 3. Lifetime small game hunting license; fee. (a) A resident lifetime small 72.21game hunting license authorizes a person to hunt and trap small game in the state. The 72.22license authorizes those hunting and trapping activities authorized by the annual resident 72.23small game hunting license and trapping licenses. The license does not include a turkey 72.24stamp validation or any other hunting stamps required by law.72.25    (b) The fees for a resident lifetime small game hunting license are:72.26    (1) age 3 and under, $217;72.27    (2) age 4 to age 15, $290;72.28    (3) age 16 to age 50, $363; and72.29    (4) age 51 and over, $213.72.30EFFECTIVE DATE.This section is effective August 1, 2007, and applies 72.31retroactively to licenses issued after February 28, 2001.72.32    Sec. 90. Minnesota Statutes 2006, section 97A.473, subdivision 5, is amended to read:73.1    Subd. 5. Lifetime sporting license; fee. (a) A resident lifetime sporting license 73.2authorizes a person to take fish by angling and hunt and trap small game in the state. 73.3The license authorizes those activities authorized by the annual resident angling and,73.4resident small game hunting, and resident trapping licenses. The license does not include 73.5a trout and salmon stamp validation, a turkey stamp validation, or any other hunting 73.6stamps required by law.73.7    (b) The fees for a resident lifetime sporting license are:73.8    (1) age 3 and under, $357;73.9    (2) age 4 to age 15, $480;73.10    (3) age 16 to age 50, $613; and73.11    (4) age 51 and over, $413.73.12EFFECTIVE DATE.This section is effective August 1, 2007, and applies 73.13retroactively to licenses issued after February 28, 2001.73.14    Sec. 91. Minnesota Statutes 2006, section 97A.475, subdivision 3, is amended to read:73.15    Subd. 3. Nonresident hunting.(a) Fees for the following licenses, to be issued 73.16to nonresidents, are:73.17    (1) for persons age 18 and older to take small game, $73;73.18    (2) for persons age 18 and older to take deer with firearms, $135;73.19    (3) for persons age 18 and older to take deer by archery, the greater of:73.20    (i) an amount equal to the total amount of license fees and surcharges charged to a 73.21Minnesota resident to take deer by archery in the person's state or province of residence; or73.22    (ii) $135;73.23    (4) to take bear, $195;73.24    (5) to take turkey, $73;73.25    (6) to take raccoon,or bobcat,fox, or coyote, $155;73.26    (7) multizone license to take antlered deer in more than one zone, $270; and73.27    (8) to take Canada geese during a special season, $4;73.28    (9) for persons at least age 12 and under age 18 to take deer with firearms during the 73.29regular firearms season in any open zone or time period, $13; and73.30    (10) for persons at least age 12 and under age 18 to take deer by archery, $13.73.31    (b) A $5 surcharge shall be added to nonresident hunting licenses issued under 73.32paragraph (a), clauses (1) to (7). An additional commission may not be assessed on this 73.33surcharge.74.1    Sec. 92. Minnesota Statutes 2006, section 97A.475, is amended by adding a 74.2subdivision to read:74.3    Subd. 3a.Deer license surcharge.A person may agree to add a donation of $1, $3, 74.4or $5 to the fees for annual resident and nonresident licenses to take deer by firearms or 74.5archery established under subdivisions 2, clauses (4), (5), (9), and (11), and 3, clauses (2), 74.6(3), and (7). Beginning March 1, 2008, fees for bonus licenses to take deer by firearms or 74.7archery established under section 97B.301, subdivision 4, must be increased by a surcharge 74.8of $1. An additional commission may not be assessed on the donation or surcharge and 74.9the following statement must be included in the annual deer hunting regulations: "The 74.10deer license donations and surcharges are being paid by hunters for deer management, 74.11including assisting with the costs of processing deer donated for charitable purposes."74.12    Sec. 93. Minnesota Statutes 2006, section 97A.475, subdivision 7, is amended to read:74.13    Subd. 7. Nonresident fishing.(a) Fees for the following licenses, to be issued 74.14to nonresidents, are:74.15    (1) to take fish by angling, $34 $37.50;74.16    (2) to take fish by angling limited to seven consecutive days selected by the licensee, 74.17$24 $26.50;74.18    (3) to take fish by angling for a 72-hour period selected by the licensee, $20 $22;74.19    (4) to take fish by angling for a combined license for a family for one or both parents 74.20and dependent children under the age of 16, $46 $50.50;74.21    (5) to take fish by angling for a 24-hour period selected by the licensee, $8.50; and74.22    (6) to take fish by angling for a combined license for a married couple, limited to 14 74.23consecutive days selected by one of the licensees, $35 $38.50.74.24    (b) A $2 surcharge shall be added to all nonresident fishing licenses, except licenses 74.25issued under paragraph (a), clause (5). An additional commission may not be assessed 74.26on this surcharge.74.27EFFECTIVE DATE.This section is effective March 1, 2008.74.28    Sec. 94. Minnesota Statutes 2006, section 97A.475, subdivision 11, is amended to read:74.29    Subd. 11. Fish houses and dark houses; residents. Fees for the following licenses 74.30are:74.31    (1) annual for a fish house or dark house that is not rented, $11.50; and74.32    (2) annual for a fish house or dark house that is rented, $26;74.33    (3) three-year for a fish house or dark house that is not rented, $34.50; and74.34    (4) three-year for a fish house or dark house that is rented, $78.75.1    Sec. 95. Minnesota Statutes 2006, section 97A.475, subdivision 12, is amended to read:75.2    Subd. 12. Fish houses; nonresident. Fees for fish house licenses for a nonresident 75.3are:75.4    (1) annual, $33; and75.5    (2) seven consecutive days, $19; and75.6    (3) three-year, $99.75.7    Sec. 96. Minnesota Statutes 2006, section 97A.485, subdivision 7, is amended to read:75.8    Subd. 7. Electronic licensing system commission. The commissioner shall retain 75.9for the operation of the electronic licensing system the commission established under 75.10section 
         84.027, subdivision 15, and issuing fees collected by the commissioner on all 75.11license fees collected, excluding:75.12    (1) the small game surcharge; and75.13    (2) the deer license surcharges or donations under section 97A.475, subdivisions 3, 75.14paragraph (b), and 3a; and75.15    (3) $2.50 of the license fee for the licenses in section 
         97A.475, subdivisions 6, 75.16clauses (1)
         , (2), and (4), 7, 8, 12, and 13.75.17    Sec. 97. [97B.303] VENISON DONATIONS.75.18    An individual who legally takes a deer may donate the deer, for distribution to 75.19charitable food assistance programs, to a meat processor that is licensed under chapter 75.2028A. An individual donating a deer must supply the processor with the tag number under 75.21which the deer was taken.75.22    Sec. 98. Minnesota Statutes 2006, section 97B.601, subdivision 3, is amended to read:75.23    Subd. 3. Nonresidents: raccoon, or bobcat, fox, coyote. A nonresident may not 75.24take raccoon, or bobcat, fox, or coyote by firearms without a separate license to take that 75.25animal in addition to a small game license.75.26    Sec. 99. Minnesota Statutes 2006, section 97B.715, subdivision 1, is amended to read:75.27    Subdivision 1. Stamp required. (a) Except as provided in paragraph (b) or section 75.2897A.405, subdivision 2
         , a person required to possess a small game license may not hunt 75.29pheasants without:75.30    (1) a pheasant stamp in possession; and75.31    (2) a pheasant stamp validation on the small game license when issued electronically.75.32    (b) The following persons are exempt from this subdivision:75.33    (1) residents under age 18 or over age 65;76.1    (2) persons hunting on licensed commercial shooting preserves; and76.2    (3) resident disabled veterans with a license issued under section 
         97A.441, 76.3subdivision 6a
         . 76.4    Sec. 100. Minnesota Statutes 2006, section 97B.801, is amended to read:76.597B.801 MINNESOTA MIGRATORY WATERFOWL STAMP REQUIRED.76.6    (a) Except as provided in this section or section 
         97A.405, subdivision 2, a person 76.7required to possess a small game license may not take migratory waterfowl without:76.8    (1) a Minnesota migratory waterfowl stamp in possession; and76.9    (2) a migratory waterfowl stamp validation on the small game license when issued 76.10electronically.76.11    (b) Residents under age 18 or over age 65; resident disabled veterans with a license 76.12issued under section 
         97A.441, subdivision 6a; and persons hunting on their own property 76.13are not required to possess a stamp or a license validation under this section. 76.14    Sec. 101. Minnesota Statutes 2006, section 97C.081, subdivision 3, is amended to read:76.15    Subd. 3. Contests requiring a permit. (a) A person must have a permit from the 76.16commissioner to conduct a fishing contest that does not meet the criteria in subdivision 2. 76.17Permits shall be issued without a fee. The commissioner shall charge a fee for the permit 76.18that recovers the costs of issuing the permit and of monitoring the activities allowed by 76.19the permit. The commissioner may waive the fee under this subdivision for a charitable 76.20organization. Notwithstanding section 16A.1283, the commissioner may, by written order 76.21published in the State Register, establish contest permit fees. The fees are not subject to 76.22the rulemaking provisions of chapter 14 and section 14.386 does not apply.76.23    (b) If entry fees are over $25 per person, or total prizes are valued at more than 76.24$25,000, and if the applicant has either:76.25    (1) not previously conducted a fishing contest requiring a permit under this 76.26subdivision; or76.27    (2) ever failed to make required prize awards in a fishing contest conducted by 76.28the applicant, the commissioner may require the applicant to furnish the commissioner 76.29evidence of financial responsibility in the form of a surety bond or bank letter of credit in 76.30the amount of $25,000.76.31    (c) The permit fee for any individual contest may not exceed the following amounts:76.32    (1) $120 for an open water contest not exceeding 100 participants and without 76.33off-site weigh-in;77.1    (2) $400 for an open water contest with more than 100 participants and without 77.2off-site weigh-in;77.3    (3) $500 for an open water contest not exceeding 100 participants with off-site 77.4weigh-in;77.5    (4) $1,000 for an open water contest with more than 100 participants with off-site 77.6weigh-in; or77.7    (5) $120 for an ice fishing contest with more than 150 participants.77.8    Sec. 102. Minnesota Statutes 2006, section 97C.355, subdivision 2, is amended to read:77.9    Subd. 2. License required. A person may not take fish from a dark house or fish 77.10house that is left unattended on the ice overnight unless the house is licensed and has a 77.11license tag attached to the exterior in a readily visible location, except as provided in this 77.12subdivision. The commissioner must issue a tag with a dark house or fish house license, 77.13marked with a number to correspond with the license and the year of issue. A dark house 77.14or fish house license is not required of a resident on boundary waters where the adjacent 77.15state does not charge a fee for the same activity.77.16    Sec. 103. Minnesota Statutes 2006, section 103B.101, is amended by adding a 77.17subdivision to read:77.18    Subd. 12.Authority to issue penalty orders.(a) The board may issue an order 77.19requiring violations to be corrected and administratively assessing monetary penalties of 77.20up to $10,000 per violation for violations of this chapter and chapters 103C, 103D, 103E, 77.21103F, and 103G, any rules adopted under those chapters, and any standards, limitations, or 77.22conditions established by the board.77.23    (b) Administrative penalties issued under paragraph (a) may be appealed according 77.24to section 116.072, if the recipient of the penalty requests a hearing by notifying the 77.25commissioner in writing within 30 days after receipt of the order. For the purposes of this 77.26section, the terms "commissioner" and "agency" as used in section 116.072 mean the 77.27board. If a hearing is not requested within the 30-day period, the order becomes a final 77.28order not subject to further review.77.29    (c) Administrative penalty orders issued under paragraph (a) may be enforced 77.30under section 116.072, subdivision 9. Penalty amounts must be remitted within 30 days 77.31of issuance of the order.77.32EFFECTIVE DATE.This section is effective the day following final enactment.78.1    Sec. 104. [103B.102] LOCAL WATER MANAGEMENT ACCOUNTABILITY 78.2AND OVERSIGHT.78.3    Subdivision 1.Findings; improving accountability and oversight.The legislature 78.4finds that a process is needed to monitor the performance and activities of local water 78.5management entities. The process should be preemptive so that problems can be identified 78.6early and systematically. Underperforming entities should be provided assistance and 78.7direction for improving performance in a reasonable time frame.78.8    Subd. 2.Definitions.For the purposes of this section, "local water management 78.9entities" means watershed districts, soil and water conservation districts, metropolitan 78.10water management organizations, and counties operating separately or jointly in their 78.11role as local water management authorities under chapter 103B, 103C, 103D, or 103G 78.12and chapter 114D.78.13    Subd. 3.Evaluation and report.The Board of Water and Soil Resources shall 78.14evaluate performance, financial, and activity information for each local water management 78.15entity. The board shall evaluate the entities' progress in accomplishing their adopted 78.16plans on a regular basis, but not less than once every five years. The board shall maintain 78.17a summary of local water management entity performance on the board's Web site. 78.18Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis 78.19of local water management entity performance to the chairs of the house and senate 78.20committees having jurisdiction over environment and natural resources policy.78.21    Subd. 4.Corrective actions.(a) In addition to other authorities, the Board of Water 78.22and Soil Resources may, based on its evaluation in subdivision 3, reduce, withhold, or 78.23redirect grants and other funding if the local water management entity has not corrected 78.24deficiencies as prescribed in a notice from the board within one year from the date of 78.25the notice.78.26    (b) The board may defer a decision on a termination petition filed under section 78.27103B.221, 103C.225, or 103D.271 for up to one year to conduct or update the evaluation 78.28under subdivision 3 or to communicate the results of the evaluation to petitioners or to 78.29local and state government agencies.78.30    Sec. 105. Minnesota Statutes 2006, section 103C.321, is amended by adding a 78.31subdivision to read:78.32    Subd. 6.Credit card use.The supervisors may authorize the use of a credit card 78.33by any soil and water conservation district officer or employee otherwise authorized 78.34to make a purchase on behalf of the soil and water conservation district. If a soil and 79.1water conservation district officer or employee makes a purchase by credit card that is not 79.2approved by the supervisors, the officer or employee is personally liable for the amount of 79.3the purchase. A purchase by credit card must otherwise comply with all statutes, rules, 79.4or soil and water conservation district policy applicable to soil and water conservation 79.5district purchases.79.6    Sec. 106. Minnesota Statutes 2006, section 103D.325, is amended by adding a 79.7subdivision to read:79.8    Subd. 4.Credit card use.The managers may authorize the use of a credit card 79.9by any watershed district officer or employee otherwise authorized to make a purchase 79.10on behalf of the watershed district. If a watershed district officer or employee makes a 79.11purchase by credit card that is not approved by the managers, the officer or employee is 79.12personally liable for the amount of the purchase. A purchase by credit card must otherwise 79.13comply with all statutes, rules, or watershed district policy applicable to watershed district 79.14purchases.79.15    Sec. 107. Minnesota Statutes 2006, section 103E.021, subdivision 1, is amended to 79.16read:79.17    Subdivision 1. Spoil banks must be spread and grass planted permanent 79.18vegetation established. In any proceeding to establish, construct, improve, or do any 79.19work affecting a public drainage system under any law that appoints viewers to assess 79.20benefits and damages, the authority having jurisdiction over the proceeding shall order 79.21spoil banks to be spread consistent with the plan and function of the drainage system. The 79.22authority shall order that permanent grass, other than a noxious weed, be planted on 79.23the banks ditch side slopes and on a strip that a permanent strip of perennial vegetation 79.24approved by the drainage authority be established on each side of the ditch. Preference 79.25should be given to planting native species of a local ecotype. The approved perennial 79.26vegetation shall not impede future maintenance of the ditch. The permanent strips of 79.27perennial vegetation shall be 16-1/2 feet in width measured outward from the top edge 79.28of the constructed channel resulting from the proceeding, or to the crown of the leveled 79.29spoil bank, whichever is the greater, on each side of the top edge of the channel of the 79.30ditch. except for an action by a drainage authority that results only in a redetermination of 79.31benefits and damages, for which the required width shall be 16-1/2 feet. Drainage system 79.32rights-of-way for the acreage and additional property required for the planting permanent 79.33strips must be acquired by the authority having jurisdiction.80.1    Sec. 108. Minnesota Statutes 2006, section 103E.021, subdivision 2, is amended to 80.2read:80.3    Subd. 2. Reseeding and harvesting grass perennial vegetation. The authority 80.4having jurisdiction over the repair and maintenance of the drainage system shall supervise 80.5all necessary reseeding. The permanent grass strips of perennial vegetation must be 80.6maintained in the same manner as other drainage system repairs. Harvest of the grass80.7vegetation from the grass permanent strip in a manner not harmful to the grass vegetation80.8or the drainage system is the privilege of the fee owner or assigns. The county drainage 80.9inspector shall establish rules for the fee owner and assigns to harvest the grass vegetation.80.10    Sec. 109. Minnesota Statutes 2006, section 103E.021, subdivision 3, is amended to 80.11read:80.12    Subd. 3. Agricultural practices prohibited. Agricultural practices, other than 80.13those required for the maintenance of a permanent growth of grass perennial vegetation, 80.14are not permitted on any portion of the property acquired for planting perennial vegetation.80.15    Sec. 110. Minnesota Statutes 2006, section 103E.021, is amended by adding a 80.16subdivision to read:80.17    Subd. 6.Incremental implementation of vegetated ditch buffer strips and side 80.18inlet controls.(a) Notwithstanding other provisions of this chapter requiring appointment 80.19of viewers and redetermination of benefits and damages, a drainage authority may 80.20implement permanent buffer strips of perennial vegetation approved by the drainage 80.21authority or side inlet controls, or both, adjacent to a public drainage ditch, where 80.22necessary to control erosion and sedimentation, improve water quality, or maintain the 80.23efficiency of the drainage system. Preference should be given to planting native species of 80.24a local ecotype. The approved perennial vegetation shall not impede future maintenance 80.25of the ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width 80.26measured outward from the top edge of the existing constructed channel. Drainage system 80.27rights-of-way for the acreage and additional property required for the permanent strips 80.28must be acquired by the authority having jurisdiction.80.29    (b) A project under this subdivision shall be implemented as a repair according to 80.30section 103E.705, except that the drainage authority may appoint an engineer to examine 80.31the drainage system and prepare an engineer's repair report for the project.80.32    (c) Damages shall be determined by the drainage authority, or viewers, appointed by 80.33the drainage authority, according to section 103E.315, subdivision 8. A damages statement 80.34shall be prepared, including an explanation of how the damages were determined for each 80.35property affected by the project, and filed with the auditor or watershed district. Within 30 81.1days after the damages statement is filed, the auditor or watershed district shall prepare 81.2property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2), 81.3(6), (7), and (8), and mail a copy of the property owner's report and damages statement to 81.4each owner of property affected by the proposed project.81.5    (d) After a damages statement is filed, the drainage authority shall set a time, by 81.6order, not more than 30 days after the date of the order, for a hearing on the project. At 81.7least ten days before the hearing, the auditor or watershed district shall give notice by mail 81.8of the time and location of the hearing to the owners of property and political subdivisions 81.9likely to be affected by the project.81.10    (e) The drainage authority shall make findings and order the repairs to be made if 81.11the drainage authority determines from the evidence presented at the hearing and by the 81.12viewers and engineer, if appointed, that the repairs are necessary for the drainage system 81.13and the costs of the repairs are within the limitations of section 103E.705.81.14    Sec. 111. [103E.067] DITCH BUFFER STRIP ANNUAL REPORTING.81.15    The drainage authority shall annually submit a report to the Board of Water and Soil 81.16Resources for the calendar year including:81.17    (1) the number and types of actions for which viewers were appointed;81.18    (2) the number of miles of buffer strips established according to section 103E.021;81.19    (3) the number of drainage system inspections conducted; and81.20    (4) the number of violations of section 103E.021 identified and enforcement actions 81.21taken.81.22    Sec. 112. Minnesota Statutes 2006, section 103E.315, subdivision 8, is amended to 81.23read:81.24    Subd. 8. Extent of damages. Damages to be paid may include:81.25    (1) the fair market value of the property required for the channel of an open ditch 81.26and the permanent grass strip of perennial vegetation under section 
         103E.021; 81.27    (2) the diminished value of a farm due to severing a field by an open ditch;81.28    (3) loss of crop production during drainage project construction; and81.29    (4) the diminished productivity or land value from increased overflow.; and81.30    (5) costs to restore a perennial vegetative cover or structural practice existing 81.31under a federal or state conservation program adjacent to the permanent drainage system 81.32right-of-way and damaged by the drainage project.81.33    Sec. 113. Minnesota Statutes 2006, section 103E.321, subdivision 1, is amended to 81.34read:82.1    Subdivision 1. Requirements. The viewers' report must show, in tabular form, 82.2for each lot, 40-acre tract, and fraction of a lot or tract under separate ownership that 82.3is benefited or damaged:82.4    (1) a description of the lot or tract, under separate ownership, that is benefited or 82.5damaged;82.6    (2) the names of the owners as they appear on the current tax records of the county 82.7and their addresses;82.8    (3) the number of acres in each tract or lot;82.9    (4) the number and value of acres added to a tract or lot by the proposed drainage of 82.10public waters;82.11    (5) the damage, if any, to riparian rights;82.12    (6) the damages paid for the permanent grass strip of perennial vegetation under 82.13section 
         103E.021; 82.14    (7) the total number and value of acres added to a tract or lot by the proposed 82.15drainage of public waters, wetlands, and other areas not currently being cultivated;82.16    (8) the number of acres and amount of benefits being assessed for drainage of areas 82.17which before the drainage benefits could be realized would require a public waters work 82.18permit to work in public waters under section 
         103G.245 to excavate or fill a navigable 82.19water body under United States Code, title 33, section 403, or a permit to discharge into 82.20waters of the United States under United States Code, title 33, section 1344; 82.21    (9) the number of acres and amount of benefits being assessed for drainage of areas 82.22that would be considered conversion of a wetland under United States Code, title 16, 82.23section 3821, if the area was placed in agricultural production;82.24    (10) the amount of right-of-way acreage required; and82.25    (11) the amount that each tract or lot will be benefited or damaged.82.26    Sec. 114. Minnesota Statutes 2006, section 103E.701, is amended by adding a 82.27subdivision to read:82.28    Subd. 7.Restoration; disturbance or destruction by repair.If a drainage system 82.29repair disturbs or destroys a perennial vegetative cover or structural practice existing 82.30under a federal or state conservation program adjacent to the permanent drainage system 82.31right-of-way, the practice must be restored according to the applicable practice plan or 82.32as determined by the drainage authority, if a practice plan is not available. Restoration 82.33costs shall be paid by the drainage system.82.34    Sec. 115. Minnesota Statutes 2006, section 103E.705, subdivision 1, is amended to 82.35read:83.1    Subdivision 1. Inspection. After the construction of a drainage system has been 83.2completed, the drainage authority shall maintain the drainage system that is located in its 83.3jurisdiction, including grass the permanent strips of perennial vegetation under section 83.4103E.021
         , and provide the repairs necessary to make the drainage system efficient. The 83.5drainage authority shall have the drainage system inspected on a regular basis by an 83.6inspection committee of the drainage authority or a drainage inspector appointed by the 83.7drainage authority. Open drainage ditches shall be inspected at a minimum of every five 83.8years when no violation of section 103E.021 is found and annually when a violation of 83.9section 103E.021 is found, until one year after the violation is corrected.83.10    Sec. 116. Minnesota Statutes 2006, section 103E.705, subdivision 2, is amended to 83.11read:83.12    Subd. 2. Grass Permanent strip of perennial vegetation inspection and 83.13compliance notice. (a) The drainage authority having jurisdiction over a drainage system 83.14must inspect the drainage system for violations of section 
         103E.021. If an inspection 83.15committee of the drainage authority or a drainage inspector determines that permanent 83.16grass strips of perennial vegetation are not being maintained in compliance with section 83.17103E.021
         , a compliance notice must be sent to the property owner. 83.18    (b) The notice must state:83.19    (1) the date the ditch was inspected;83.20    (2) the persons making the inspection;83.21    (3) that spoil banks are to be spread in a manner consistent with the plan and function 83.22of the drainage system and that the drainage system has acquired a grass permanent strip 83.2316-1/2 feet in width or to the crown of the spoil bank, whichever is greater of perennial 83.24vegetation, according to section 103E.021;83.25    (4) the violations of section 
         103E.021; 83.26    (5) the measures that must be taken by the property owner to comply with section 83.27103E.021
          and the date when the property must be in compliance; and 83.28    (6) that if the property owner does not comply by the date specified, the drainage 83.29authority will perform the work necessary to bring the area into compliance with section 83.30103E.021
          and charge the cost of the work to the property owner. 83.31    (c) If a property owner does not bring an area into compliance with section 
         103E.02183.32as provided in the compliance notice, the inspection committee or drainage inspector 83.33must notify the drainage authority. 83.34    (d) This subdivision applies to property acquired under section 
         103E.021. 84.1    Sec. 117. Minnesota Statutes 2006, section 103E.705, subdivision 3, is amended to 84.2read:84.3    Subd. 3. Drainage inspection report. For each drainage system that the board 84.4designates and requires the drainage inspector to examine, the drainage inspector shall 84.5make a drainage inspection report in writing to the board after examining a drainage 84.6system, designating portions that need repair or maintenance of grass the permanent84.7strips of perennial vegetation and the location and nature of the repair or maintenance. 84.8The board shall consider the drainage inspection report at its next meeting and may repair 84.9all or any part of the drainage system as provided under this chapter. The grass permanent84.10strips of perennial vegetation must be maintained in compliance with section 
         103E.021. 84.11    Sec. 118. Minnesota Statutes 2006, section 103E.728, subdivision 2, is amended to 84.12read:84.13    Subd. 2. Additional assessment for agricultural practices on grass permanent84.14strip of perennial vegetation. (a) The drainage authority may, after notice and hearing, 84.15charge an additional assessment on property that has agricultural practices on or otherwise 84.16violates provisions related to the permanent grass strip of perennial vegetation acquired 84.17under section 
         103E.021. 84.18    (b) The drainage authority may determine the cost of the repair per mile of open 84.19ditch on the ditch system. Property that is in violation of the grass requirement shall be 84.20assessed a cost of 20 percent of the repair cost per open ditch mile multiplied by the length 84.21of open ditch in miles on the property in violation.84.22    (c) After the amount of the additional assessment is determined and applied to the 84.23repair cost, the balance of the repair cost may be apportioned pro rata as provided in 84.24subdivision 1.84.25    Sec. 119. [103F.518] REINVEST IN MINNESOTA CLEAN ENERGY 84.26PROGRAM.84.27    Subdivision 1.Establishment of program. (a) The board, in consultation with the 84.28technical committee established in subdivision 11, shall establish and administer a reinvest 84.29in Minnesota (RIM) clean energy program that is in addition to the program under section 84.30103F.515.  Selection of land for the clean energy program must be based on its potential 84.31benefits for bioenergy crop production, water quality, soil health, reduction of chemical 84.32inputs, soil carbon storage, biodiversity, and wildlife habitat.84.33    (b) For the purposes of this section, "diverse native prairie" means a prairie planted 84.34from a mix of  local Minnesota native prairie species. A selection from all available native 84.35prairie species may be made so as to match species appropriate to local site conditions. 85.1    Subd. 2.Eligible land.Eligible land under this section must:85.2    (1) be owned by the landowner, or a parent or other blood relative of the landowner, 85.3for at least one year before the date of application;85.4    (2) be at least five acres in size;85.5    (3) not be currently set aside, enrolled, or diverted under another federal or state 85.6government program; and 85.7    (4) have been in agricultural use, as defined in section 17.81, subdivision 4, or have 85.8been set aside, enrolled, or diverted under another federal or state program for at least two 85.9of the last five years before the date of application.85.10    Subd. 3.Designation of project areas.The board shall develop a process to 85.11designate defined project areas. The designation process shall prioritize projects that 85.12include coordinated cooperation of a cellulosic biofuel facility or a bioenergy production 85.13facility, target impaired waters, or support other state or local natural resource plans, 85.14goals, or objectives.85.15    Subd. 4.Easements.The board may acquire, or accept by gift or donation, 85.16easements on eligible land. An easement may be permanent or of limited duration. An 85.17easement of limited duration may not be acquired if it is for a period less than 20 years. 85.18The negotiation and acquisition of easements authorized by this section are exempt from 85.19the contractual provisions of chapters 16B and 16C.85.20    Subd. 5.Nature of property rights acquired.(a) An easement must prohibit:85.21    (1) agricultural crop production, unless approved by the board for energy production 85.22purposes; and85.23    (2) spraying with chemicals, except as necessary to comply with noxious weed 85.24control laws, emergency pest control necessary to protect public health, or as needed 85.25to establish a productive planting as determined by the technical committee under 85.26subdivision 11.85.27    (b) An easement is subject to the terms of the agreement provided in subdivision 6.85.28    (c) Agricultural crop production and harvest are limited to native, perennial 85.29bioenergy crops. Harvest shall occur outside of bird nesting season.85.30    (d) An easement must allow repairs, improvements, and inspections necessary to 85.31maintain public drainage systems provided the easement area is restored to the condition 85.32required by the terms of the easement.85.33    (e) An easement may allow nonnative perennial prairie or pasture established by 85.34September 1, 2007, that meet the other objectives outlined in subdivision 7.86.1    (f) An easement may allow grazing of livestock only if practiced under a plan, 86.2approved by the board, that protects water quality, wildlife habitat, and biodiversity.86.3    Subd. 6.Agreements by landowner.The board may enroll eligible land in the 86.4reinvest in Minnesota clean energy program by signing an agreement in recordable form 86.5with a landowner in which the landowner agrees:86.6    (1) to convey to the state an easement that is not subject to any prior title, lien, or 86.7encumbrance;86.8    (2) to seed the land subject to the easement, as specified in the agreement, at 86.9seeding rates determined by the board, or carry out other long-term capital improvements 86.10approved by the board; and86.11    (3) that the easement duration may be lengthened through mutual agreement with 86.12the board.86.13    Subd. 7.Payments for easements.The board must develop a tiered payment 86.14system for easements partially based on the benefits of the bioenergy crop production for 86.15water quality, soil health, reduction in chemical inputs, soil carbon storage, biodiversity, 86.16and wildlife habitat using cash rent or a similar system as may be determined by the 86.17board. The payment system must provide that the highest per-acre payment is for diverse 86.18native prairie and perennials.86.19    Subd. 8.Easement renewal.When an easement of limited duration expires, a 86.20new easement and agreement for an additional period of not less than 20 years may be 86.21acquired by agreement of the board and the landowner under the terms of this section. 86.22The board may adjust payment rates as a result of renewing an agreement and easement 86.23only after examining the condition of the established plantings, conservation practices, 86.24and land values.86.25    Subd. 9.Correction of easement boundary lines.To correct errors in legal 86.26descriptions for easements that affect the ownership interest in the state and adjacent 86.27landowners, the board may, in the name of the state, with the approval of the attorney 86.28general, convey, without consideration, interests of the state necessary to correct legal 86.29descriptions of boundaries. The conveyance must be by quitclaim deed or release in 86.30a form approved by the attorney general.86.31    Subd. 10.Enforcement and damages.(a) A landowner who violates the term of 86.32an easement or agreement under this section, or induces, assists, or allows another to do 86.33so, is liable to the state for treble damages if the trespass is willful, but liable for double 86.34damages only if the trespass is not willful. The amount of damages is the amount needed 87.1to make the state whole or the amount the landowner has gained due to the violation, 87.2whichever is greater.87.3    (b) Upon the request of the board, the attorney general may commence an action for 87.4specific performances, injunctive relief, damages, including attorney fees, and any other 87.5appropriate relief to enforce this section in district court in the county where all or part 87.6of the violation is alleged to have been committed, or where the landowner resides or 87.7has a principal place of business.87.8    Subd. 11.Technical committee.To ensure that public benefits, including water 87.9quality, soil health, reduction of chemical inputs, soil carbon storage, biodiversity, and 87.10wildlife habitat are secured along with bioenergy crop production, the Board of Water and 87.11Soil Resources shall appoint a technical committee consisting of one representative from 87.12the Departments of Agriculture, Natural Resources, and Commerce and the Pollution 87.13Control Agency; two farm organizations; one sustainable agriculture farmer organization; 87.14three rural economic development organizations; three environmental organizations; and 87.15three conservation or wildlife organizations. The board and technical committee shall 87.16consult with private sector organizations and University of Minnesota researchers involved 87.17in biomass establishment and bioenergy or biofuel conversion. The technical committee 87.18is to develop program guidelines and standards, as appropriate to ensure that reinvest in 87.19Minnesota clean energy program contracts provide public benefits commensurate with the 87.20public investment. The technical committee shall review and make recommendations on 87.21the guidelines and standards every five years.87.22    Sec. 120. Minnesota Statutes 2006, section 103G.222, subdivision 1, is amended to 87.23read:87.24    Subdivision 1. Requirements. (a) Wetlands must not be drained or filled, wholly 87.25or partially, unless replaced by restoring or creating wetland areas of at least equal 87.26public value under a replacement plan approved as provided in section 
         103G.2242, a 87.27replacement plan under a local governmental unit's comprehensive wetland protection 87.28and management plan approved by the board under section 
         103G.2243, or, if a permit to 87.29mine is required under section 
         93.481, under a mining reclamation plan approved by the 87.30commissioner under the permit to mine. Mining reclamation plans shall apply the same 87.31principles and standards for replacing wetlands by restoration or creation of wetland areas 87.32that are applicable to mitigation plans approved as provided in section 
         103G.2242. Public 87.33value must be determined in accordance with section 
         103B.3355 or a comprehensive 87.34wetland protection and management plan established under section 
         103G.2243. Sections 88.1103G.221
          to 
         103G.2372 also apply to excavation in permanently and semipermanently 88.2flooded areas of types 3, 4, and 5 wetlands. 88.3    (b) Replacement must be guided by the following principles in descending order 88.4of priority:88.5    (1) avoiding the direct or indirect impact of the activity that may destroy or diminish 88.6the wetland;88.7    (2) minimizing the impact by limiting the degree or magnitude of the wetland 88.8activity and its implementation;88.9    (3) rectifying the impact by repairing, rehabilitating, or restoring the affected 88.10wetland environment;88.11    (4) reducing or eliminating the impact over time by preservation and maintenance 88.12operations during the life of the activity;88.13    (5) compensating for the impact by restoring a wetland; and88.14    (6) compensating for the impact by replacing or providing substitute wetland 88.15resources or environments.88.16    For a project involving the draining or filling of wetlands in an amount not exceeding 88.1710,000 square feet more than the applicable amount in section 
         103G.2241, subdivision 9, 88.18paragraph (a), the local government unit may make an on-site sequencing determination 88.19without a written alternatives analysis from the applicant. 88.20    (c) If a wetland is located in a cultivated field, then replacement must be 88.21accomplished through restoration only without regard to the priority order in paragraph 88.22(b), provided that a deed restriction is placed on the altered wetland prohibiting 88.23nonagricultural use for at least ten years.88.24    (d) If a wetland is drained under section 103G.2241, subdivision 2, paragraphs 88.25(b) and (e), the local government unit may require a deed restriction that prohibits 88.26nonagricultural use for at least ten years unless the drained wetland is replaced as provided 88.27under this section. The local government unit may require the deed restriction if it 88.28determines the wetland area drained is at risk of conversion to a nonagricultural use within 88.29ten years based on the zoning classification, proximity to a municipality or full service 88.30road, or other criteria as determined by the local government unit.88.31    (e) Restoration and replacement of wetlands must be accomplished in accordance 88.32with the ecology of the landscape area affected and ponds that are created primarily to 88.33fulfill stormwater management, and water quality treatment requirements may not be 88.34used to satisfy replacement requirements under this chapter unless the design includes 88.35pretreatment of runoff and the pond is functioning as a wetland.89.1    (e) (f) Except as provided in paragraph (f) (g), for a wetland or public waters wetland 89.2located on nonagricultural land, replacement must be in the ratio of two acres of replaced 89.3wetland for each acre of drained or filled wetland.89.4    (f) (g) For a wetland or public waters wetland located on agricultural land or in a 89.5greater than 80 percent area, replacement must be in the ratio of one acre of replaced 89.6wetland for each acre of drained or filled wetland.89.7    (g) (h) Wetlands that are restored or created as a result of an approved replacement 89.8plan are subject to the provisions of this section for any subsequent drainage or filling.89.9    (h) (i) Except in a greater than 80 percent area, only wetlands that have been 89.10restored from previously drained or filled wetlands, wetlands created by excavation in 89.11nonwetlands, wetlands created by dikes or dams along public or private drainage ditches, 89.12or wetlands created by dikes or dams associated with the restoration of previously drained 89.13or filled wetlands may be used in a statewide banking program established in rules adopted 89.14under section 
         103G.2242, subdivision 1. Modification or conversion of nondegraded 89.15naturally occurring wetlands from one type to another are not eligible for enrollment in a 89.16statewide wetlands bank. 89.17    (i) (j) The Technical Evaluation Panel established under section 
         103G.2242, 89.18subdivision 2
         , shall ensure that sufficient time has occurred for the wetland to develop 89.19wetland characteristics of soils, vegetation, and hydrology before recommending that the 89.20wetland be deposited in the statewide wetland bank. If the Technical Evaluation Panel has 89.21reason to believe that the wetland characteristics may change substantially, the panel shall 89.22postpone its recommendation until the wetland has stabilized. 89.23    (j) (k) This section and sections 
         103G.223 to 
         103G.2242, 
         103G.2364, and 89.24103G.2365
          apply to the state and its departments and agencies. 89.25    (k) (l) For projects involving draining or filling of wetlands associated with a new 89.26public transportation project, and for projects expanded solely for additional traffic 89.27capacity, public transportation authorities may purchase credits from the board at the cost 89.28to the board to establish credits. Proceeds from the sale of credits provided under this 89.29paragraph are appropriated to the board for the purposes of this paragraph.89.30    (l) (m) A replacement plan for wetlands is not required for individual projects that 89.31result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction, 89.32or replacement of a currently serviceable existing state, city, county, or town public road 89.33necessary, as determined by the public transportation authority, to meet state or federal 89.34design or safety standards or requirements, excluding new roads or roads expanded solely 89.35for additional traffic capacity lanes. This paragraph only applies to authorities for public 89.36transportation projects that:90.1    (1) minimize the amount of wetland filling or draining associated with the project 90.2and consider mitigating important site-specific wetland functions on-site;90.3    (2) except as provided in clause (3), submit project-specific reports to the board, the 90.4Technical Evaluation Panel, the commissioner of natural resources, and members of the 90.5public requesting a copy at least 30 days prior to construction that indicate the location, 90.6amount, and type of wetlands to be filled or drained by the project or, alternatively, 90.7convene an annual meeting of the parties required to receive notice to review projects to 90.8be commenced during the upcoming year; and90.9    (3) for minor and emergency maintenance work impacting less than 10,000 square 90.10feet, submit project-specific reports, within 30 days of commencing the activity, to the 90.11board that indicate the location, amount, and type of wetlands that have been filled 90.12or drained.90.13    Those required to receive notice of public transportation projects may appeal 90.14minimization, delineation, and on-site mitigation decisions made by the public 90.15transportation authority to the board according to the provisions of section 
         103G.2242, 90.16subdivision 9
         . The Technical Evaluation Panel shall review minimization and delineation 90.17decisions made by the public transportation authority and provide recommendations 90.18regarding on-site mitigation if requested to do so by the local government unit, a 90.19contiguous landowner, or a member of the Technical Evaluation Panel. 90.20    Except for state public transportation projects, for which the state Department of 90.21Transportation is responsible, the board must replace the wetlands, and wetland areas of 90.22public waters if authorized by the commissioner or a delegated authority, drained or filled 90.23by public transportation projects on existing roads.90.24    Public transportation authorities at their discretion may deviate from federal and 90.25state design standards on existing road projects when practical and reasonable to avoid 90.26wetland filling or draining, provided that public safety is not unreasonably compromised. 90.27The local road authority and its officers and employees are exempt from liability for 90.28any tort claim for injury to persons or property arising from travel on the highway and 90.29related to the deviation from the design standards for construction or reconstruction under 90.30this paragraph. This paragraph does not preclude an action for damages arising from 90.31negligence in construction or maintenance on a highway.90.32    (m) (n) If a landowner seeks approval of a replacement plan after the proposed 90.33project has already affected the wetland, the local government unit may require the 90.34landowner to replace the affected wetland at a ratio not to exceed twice the replacement 90.35ratio otherwise required.91.1    (n) (o) A local government unit may request the board to reclassify a county or 91.2watershed on the basis of its percentage of presettlement wetlands remaining. After 91.3receipt of satisfactory documentation from the local government, the board shall change 91.4the classification of a county or watershed. If requested by the local government unit, 91.5the board must assist in developing the documentation. Within 30 days of its action to 91.6approve a change of wetland classifications, the board shall publish a notice of the change 91.7in the Environmental Quality Board Monitor.91.8    (o) (p) One hundred citizens who reside within the jurisdiction of the local 91.9government unit may request the local government unit to reclassify a county or watershed 91.10on the basis of its percentage of presettlement wetlands remaining. In support of their 91.11petition, the citizens shall provide satisfactory documentation to the local government unit. 91.12The local government unit shall consider the petition and forward the request to the board 91.13under paragraph (n) (o) or provide a reason why the petition is denied.91.14EFFECTIVE DATE.This section is effective the day following final enactment.91.15    Sec. 121. Minnesota Statutes 2006, section 103G.222, subdivision 3, is amended to 91.16read:91.17    Subd. 3. Wetland replacement siting. (a) Siting wetland replacement must follow 91.18this priority order:91.19    (1) on site or in the same minor watershed as the affected wetland;91.20    (2) in the same watershed as the affected wetland;91.21    (3) in the same county as the affected wetland;91.22    (4) for replacement by wetland banking, in the same wetland bank service area as 91.23the impacted wetland, except that impacts in a 50 to 80 percent area must be replaced in 91.24a 50 to 80 percent area and impacts in a less than 50 percent area must be replaced in a 91.25less than 50 percent area;91.26    (5) for project specific replacement, in an adjacent watershed or county to the 91.27affected wetland, or for replacement by wetland banking, in an adjacent wetland bank 91.28service area, except that impacts in a 50 to 80 percent area must be replaced in a 50 to 91.2980 percent area and impacts in a less than 50 percent area must be replaced in a less 91.30than 50 percent area; and91.31    (5) (6) statewide, only for wetlands affected in greater than 80 percent areas and for 91.32public transportation projects, except that wetlands affected in less than 50 percent areas 91.33must be replaced in less than 50 percent areas, and wetlands affected in the seven-county 91.34metropolitan area must be replaced at a ratio of two to one in: (i) the affected county or, 91.35(ii) in another of the seven metropolitan counties, or (iii) in one of the major watersheds 92.1that are wholly or partially within the seven-county metropolitan area, but at least one to 92.2one must be replaced within the seven-county metropolitan area.92.3    (b) Notwithstanding paragraph (a), siting wetland replacement in greater than 80 92.4percent areas may follow the priority order under this paragraph: (1) by wetland banking 92.5after evaluating on-site replacement and replacement within the watershed; (2) replaced 92.6in an adjacent wetland bank service area if wetland bank credits are not reasonably 92.7available in the same wetland bank service area as the affected wetland, as determined by 92.8a comprehensive inventory approved by the board; and (3) statewide.92.9    (c) Notwithstanding paragraph (a), siting wetland replacement in the seven-county 92.10metropolitan area must follow the priority order under this paragraph: (1) in the affected 92.11county; (2) in another of the seven metropolitan counties; or (3) in one of the major 92.12watersheds that are wholly or partially within the seven-county metropolitan area, but at 92.13least one to one must be replaced within the seven-county metropolitan area.92.14    (d) The exception in paragraph (a), clause (5) (6), does not apply to replacement 92.15completed using wetland banking credits established by a person who submitted a 92.16complete wetland banking application to a local government unit by April 1, 1996.92.17    (c) (e) When reasonable, practicable, and environmentally beneficial replacement 92.18opportunities are not available in siting priorities listed in paragraph (a), the applicant 92.19may seek opportunities at the next level.92.20    (d) (f) For the purposes of this section, "reasonable, practicable, and environmentally 92.21beneficial replacement opportunities" are defined as opportunities that:92.22    (1) take advantage of naturally occurring hydrogeomorphological conditions and 92.23require minimal landscape alteration;92.24    (2) have a high likelihood of becoming a functional wetland that will continue 92.25in perpetuity;92.26    (3) do not adversely affect other habitat types or ecological communities that are 92.27important in maintaining the overall biological diversity of the area; and92.28    (4) are available and capable of being done after taking into consideration cost, 92.29existing technology, and logistics consistent with overall project purposes.92.30    (e) (g) Regulatory agencies, local government units, and other entities involved in 92.31wetland restoration shall collaborate to identify potential replacement opportunities within 92.32their jurisdictional areas.92.33EFFECTIVE DATE.This section is effective the day following final enactment.92.34    Sec. 122. Minnesota Statutes 2006, section 103G.2241, subdivision 1, is amended to 92.35read:93.1    Subdivision 1. Agricultural activities.(a) A replacement plan for wetlands is 93.2not required for:93.3    (1) activities in a wetland that was planted with annually seeded crops, was in a crop 93.4rotation seeding of pasture grass or legumes, or was required to be set aside to receive 93.5price support or other payments under United States Code, title 7, sections 1421 to 1469, 93.6in six of the last ten years prior to January 1, 1991;93.7    (2) activities in a wetland that is or has been enrolled in the federal conservation 93.8reserve program under United States Code, title 16, section 3831, that:93.9    (i) was planted with annually seeded crops, was in a crop rotation seeding, or was 93.10required to be set aside to receive price support or payment under United States Code, 93.11title 7, sections 1421 to 1469, in six of the last ten years prior to being enrolled in the 93.12program; and93.13    (ii) has not been restored with assistance from a public or private wetland restoration 93.14program;93.15    (3) activities in a wetland that has received a commenced drainage determination 93.16provided for by the federal Food Security Act of 1985, that was made to the county 93.17Agricultural Stabilization and Conservation Service office prior to September 19, 1988, 93.18and a ruling and any subsequent appeals or reviews have determined that drainage of the 93.19wetland had been commenced prior to December 23, 1985;93.20    (4) (2) activities in a type 1 wetland on agricultural pasture land that remains in the 93.21same use, except for bottomland hardwood type 1 wetlands, and activities in a type 2 93.22or type 6 wetland that is less than two acres in size and located on agricultural pasture 93.23land that remains in the same use;93.24    (3) activities in a wetland conducted as part of normal farming practices. For 93.25purposes of this clause, "normal farming practices" means farming, silvicultural, grazing, 93.26and ranching activities such as plowing, seeding, cultivating, and harvesting for the 93.27production of feed, food, and fiber products, but does not include activities that result in 93.28the draining of wetlands;93.29    (4) soil and water conservation practices approved by the soil and water conservation 93.30district, after review by the Technical Evaluation Panel;93.31    (5) aquaculture activities including pond excavation and construction and 93.32maintenance of associated access roads and dikes authorized under, and conducted in 93.33accordance with, a permit issued by the United States Army Corps of Engineers under 93.34section 404 of the federal Clean Water Act, United States Code, title 33, section 1344, 93.35but not including construction or expansion of buildings;94.1    (6) wild rice production activities, including necessary diking and other activities 94.2authorized under a permit issued by the United States Army Corps of Engineers under 94.3section 404 of the federal Clean Water Act, United States Code, title 33, section 1344; or94.4    (7) normal agricultural practices to control noxious or secondary weeds as defined 94.5by rule of the commissioner of agriculture, in accordance with applicable requirements 94.6under state and federal law, including established best management practices; and94.7    (8) (7) agricultural activities in a wetland that is on agricultural land:94.8    (i) annually enrolled in the federal Agriculture Improvement and Reform Act of 94.91996 and is subject to United States Code, title 16, sections 3821 to 3823, in effect on 94.10January 1, 2000; or94.11    (ii) that is subject to subsequent federal farm program restrictions that meet 94.12minimum state standards under this chapter and sections 
         103A.202 and 
         103B.3355 and 94.13that have been approved by the Board of Water and Soil Resources, the commissioners of 94.14natural resources and agriculture, and the Pollution Control Agency. 94.15    (b) Land enrolled in a federal farm program under paragraph (a), clause (8), is 94.16eligible for easement participation for those acres not already compensated under a federal 94.17program.94.18    (c) The exemption under paragraph (a), clause (4), may be expanded to additional 94.19acreage, including types 1, 2, and 6 wetlands that are part of a larger wetland system, when 94.20the additional acreage is part of a conservation plan approved by the local soil and water 94.21conservation district, the additional draining or filling is necessary for efficient operation 94.22of the farm, the hydrology of the larger wetland system is not adversely affected, and 94.23wetlands other than types 1, 2, and 6 are not drained or filled.94.24    Sec. 123. Minnesota Statutes 2006, section 103G.2241, subdivision 2, is amended to 94.25read:94.26    Subd. 2. Drainage. (a) For the purposes of this subdivision, "public drainage 94.27system" means a drainage system as defined in section 
         103E.005, subdivision 12, and any 94.28ditch or tile lawfully connected to the drainage system. 94.29    (b) A replacement plan is not required for draining of type 1 wetlands, or up to five 94.30acres of type 2 or 6 wetlands, in an unincorporated area on land that has been assessed 94.31drainage benefits for a public drainage system, provided that:94.32    (1) during the 20-year period that ended January 1, 1992:94.33    (i) there was an expenditure made from the drainage system account for the public 94.34drainage system;95.1    (ii) the public drainage system was repaired or maintained as approved by the 95.2drainage authority; or95.3    (iii) no repair or maintenance of the public drainage system was required under 95.4section 
         103E.705, subdivision 1, as determined by the public drainage authority; and 95.5    (2) the wetlands are not drained for conversion to:95.6    (i) platted lots;95.7    (ii) planned unit, commercial, or industrial developments; or95.8    (iii) any development with more than one residential unit per 40 acres, except for 95.9parcels subject to local zoning standards that allow for family members to establish an 95.10additional residence on the same 40 acres.95.11If wetlands drained under this paragraph are converted to uses prohibited under clause 95.12(2) during the ten-year period following drainage, the wetlands must be replaced under 95.13section 
         103G.222. 95.14    (c) A replacement plan is not required for draining or filling of wetlands, except for 95.15draining types 3, 4, and 5 wetlands that have been in existence for more than 25 years, 95.16resulting from maintenance and repair of existing public drainage systems.95.17    (d) A replacement plan is not required for draining or filling of wetlands, except 95.18for draining wetlands that have been in existence for more than 25 years, resulting from 95.19maintenance and repair of existing drainage systems other than public drainage systems.95.20    (e) A replacement plan is not required for draining or filling of wetlands resulting 95.21from activities conducted as part of a public drainage system improvement project that 95.22received final approval from the drainage authority before July 1, 1991, and after July 1, 95.231986, if:95.24    (1) the approval remains valid;95.25    (2) the project remains active; and95.26    (3) no additional drainage will occur beyond that originally approved.95.27    (e) A replacement plan is not required for draining agricultural land that: (1) was 95.28planted with annually seeded crops before July 5, except for crops that are normally 95.29planted after that date, in eight out of the ten most recent years prior to the impact; (2) was 95.30in a crop rotation seeding of pasture grass, cover crop, or legumes, or was fallow for a 95.31crop production purpose, in eight out of the ten most recent years prior to the impact; or 95.32(3) was enrolled in a state or federal land conservation program and met the requirements 95.33of clause (1) or (2) before enrollment.95.34    (f) The public drainage authority may, as part of the repair, install control structures, 95.35realign the ditch, construct dikes along the ditch, or make other modifications as necessary 95.36to prevent drainage of the wetland.96.1    (g) Wetlands of all types that would be drained as a part of a public drainage repair 96.2project are eligible for the permanent wetlands preserve under section 
         103F.516. The 96.3board shall give priority to acquisition of easements on types 3, 4, and 5 wetlands that have 96.4been in existence for more than 25 years on public drainage systems and other wetlands 96.5that have the greatest risk of drainage from a public drainage repair project.96.6    Sec. 124. Minnesota Statutes 2006, section 103G.2241, subdivision 3, is amended to 96.7read:96.8    Subd. 3. Federal approvals. A replacement plan for wetlands is not required for:96.9    (1) activities exempted from federal regulation under United States Code, title 33, 96.10section 1344(f), as in effect on January 1, 1991;96.11    (2) activities authorized under, and conducted in accordance with, an applicable 96.12general permit issued by the United States Army Corps of Engineers under section 404 96.13of the federal Clean Water Act, United States Code, title 33, section 1344, except the 96.14nationwide permit in Code of Federal Regulations, title 33, section 330.5, paragraph (a), 96.15clauses (14), limited to when a new road crosses a wetland, and (26), as in effect on 96.16January 1, 1991; or96.17    (3) activities authorized under the federal Clean Water Act, section 404, or the 96.18Rivers and Harbors Act, section 10, regulations that meet minimum state standards 96.19under this chapter and sections 
         103A.202 and 
         103B.3355 and that have been approved 96.20by the Board of Water and Soil Resources, the commissioners of natural resources and 96.21agriculture, and the Pollution Control Agency. 96.22EFFECTIVE DATE.This section is effective the day following final enactment.96.23    Sec. 125. Minnesota Statutes 2006, section 103G.2241, subdivision 6, is amended to 96.24read:96.25    Subd. 6. Utilities; public works.(a) A replacement plan for wetlands is not 96.26required for:96.27    (1) placement, maintenance, repair, enhancement, or replacement of utility or 96.28utility-type service if:96.29    (i) the impacts of the proposed project on the hydrologic and biological 96.30characteristics of the wetland have been avoided and minimized to the extent possible; and96.31    (ii) the proposed project significantly modifies or alters less than one-half acre of 96.32wetlands;96.33    (2) activities associated with routine maintenance of utility and pipeline 96.34rights-of-way, provided the activities do not result in additional intrusion into the wetland;97.1    (3) alteration of a wetland associated with the operation, maintenance, or repair of 97.2an interstate pipeline within all existing or acquired interstate pipeline rights-of-way;97.3    (4) emergency repair and normal maintenance and repair of existing public works, 97.4provided the activity does not result in additional intrusion of the public works into the 97.5wetland and does not result in the draining or filling, wholly or partially, of a wetland;97.6    (5) normal maintenance and minor repair of structures causing no additional 97.7intrusion of an existing structure into the wetland, and maintenance and repair of private 97.8crossings that do not result in the draining or filling, wholly or partially, of a wetland; or97.9    (6) repair and updating of existing individual sewage treatment systems as necessary 97.10to comply with local, state, and federal regulations.97.11    (1) new placement or maintenance, repair, enhancement, or replacement of existing 97.12utility or utility-type service, including pipelines, if:97.13    (i) the direct and indirect impacts of the proposed project have been avoided and 97.14minimized to the extent possible; and97.15    (ii) the proposed project significantly modifies or alters less than one-half acre of 97.16wetlands;97.17    (2) activities associated with operation, routine maintenance, or emergency repair of 97.18existing utilities and public work structures, including pipelines, provided the activities 97.19do not result in additional wetland intrusion or additional draining or filling of a wetland 97.20either wholly or partially; or97.21    (3) repair and updating of existing individual sewage treatment systems necessary to 97.22comply with local, state, and federal regulations.97.23    (b) For maintenance, repair, and replacement, the local government unit may issue 97.24a seasonal or annual exemption certification or the utility may proceed without local 97.25government unit certification if the utility is carrying out the work according to approved 97.26best management practices. Work of an emergency nature may proceed as necessary 97.27and any drain or fill activities shall be addressed with the local government unit after 97.28the emergency work has been completed.97.29EFFECTIVE DATE.This section is effective the day following final enactment.97.30    Sec. 126. Minnesota Statutes 2006, section 103G.2241, subdivision 9, is amended to 97.31read:97.32    Subd. 9. De minimis. (a) Except as provided in paragraphs (b) and (c), a 97.33replacement plan for wetlands is not required for draining or filling the following amounts 97.34of wetlands as part of a project:98.1    (1) 10,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and 98.2tamarack wetlands, outside of the shoreland wetland protection zone in a greater than 98.380 percent area;98.4    (2) 5,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and 98.5tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80 percent 98.6area, except within the 11-county metropolitan area;98.7    (3) 2,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland wetland 98.8protection zone in a less than 50 percent area, except within the 11-county metropolitan 98.9area;98.10    (4) 400100 square feet of wetland types not listed in clauses (1) to (3) outside of 98.11the building setback zone of the shoreland wetland protection zones in all counties; or98.12    (5) 400 square feet of type 1, 2, 3, 4, 5, 6, 7, or 8 wetland types listed in clauses (1) 98.13to (3), in beyond the building setback zone, as defined in the local shoreland management 98.14ordinance, but within the shoreland wetland protection zone, except that. In a greater 98.15than 80 percent area, the local government unit may increase the de minimis amount 98.16up to 1,000 square feet in the shoreland protection zone in areas beyond the building 98.17setback if the wetland is isolated and is determined to have no direct surficial connection 98.18to the public water. To the extent that a local shoreland management ordinance is more 98.19restrictive than this provision, the local shoreland ordinance applies.;98.20    (6) up to 20 square feet of wetland, regardless of type or location;98.21    (7) 2,500 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and 98.22tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80 percent 98.23area within the 11-county metropolitan area; or98.24    (8) 1,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland wetland 98.25protection zone in a less than 50 percent area within the 11-county metropolitan area.98.26    For purposes of this paragraph, the 11-county metropolitan area consists of the 98.27counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, 98.28Washington, and Wright.98.29    (b) The amounts listed in paragraph (a), clauses (1) to (5) (8), may not be combined 98.30on a project.98.31    (c) This exemption no longer applies to a landowner's portion of a wetland when 98.32the cumulative area drained or filled of the landowner's portion since January 1, 1992, is 98.33the greatest of:98.34    (1) the applicable area listed in paragraph (a), if the landowner owns the entire 98.35wetland;98.36    (2) five percent of the landowner's portion of the wetland; or99.1    (3) 400 square feet.99.2    (d) This exemption may not be combined with another exemption in this section on 99.3a project.99.4    (e) Property may not be divided to increase the amounts listed in paragraph (a).99.5EFFECTIVE DATE.This section is effective the day following final enactment.99.6    Sec. 127. Minnesota Statutes 2006, section 103G.2241, subdivision 11, is amended to 99.7read:99.8    Subd. 11. Exemption conditions. (a) A person conducting an activity in a wetland 99.9under an exemption in subdivisions 1 to 10 shall ensure that:99.10    (1) appropriate erosion control measures are taken to prevent sedimentation of 99.11the water;99.12    (2) the activity does not block fish passage in a watercourse; and99.13    (3) the activity is conducted in compliance with all other applicable federal, 99.14state, and local requirements, including best management practices and water resource 99.15protection requirements established under chapter 103H.99.16    (b) An activity is exempt if it qualifies for any one of the exemptions, even though it 99.17may be indicated as not exempt under another exemption.99.18    (c) Persons proposing to conduct an exempt activity are encouraged to contact the 99.19local government unit or the local government unit's designee for advice on minimizing 99.20wetland impacts.99.21    (d) The board shall develop rules that address the application and implementation 99.22of exemptions and that provide for estimates and reporting of exempt wetland impacts, 99.23including those in section 103G.2241, subdivisions 2, 6, and 9.99.24EFFECTIVE DATE.This section is effective the day following final enactment.99.25    Sec. 128. Minnesota Statutes 2006, section 103G.2242, subdivision 2, is amended to 99.26read:99.27    Subd. 2. Evaluation. (a) Questions concerning the public value, location, size, 99.28or type of a wetland shall be submitted to and determined by a Technical Evaluation 99.29Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of 99.30a technical professional employee of the board, a technical professional employee of 99.31the local soil and water conservation district or districts, a technical professional with 99.32expertise in water resources management appointed by the local government unit, and 99.33a technical professional employee of the Department of Natural Resources for projects 99.34affecting public waters or wetlands adjacent to public waters. The panel shall use the 100.1"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987), 100.2including updates, supplementary guidance, and replacements, if any, "Wetlands of 100.3the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition), 100.4and "Classification of Wetlands and Deepwater Habitats of the United States" (1979 100.5edition). The panel shall provide the wetland determination and recommendations on 100.6other technical matters to the local government unit that must approve a replacement 100.7plan, wetland banking plan, exemption determination, no-loss determination, or wetland 100.8boundary or type determination and may recommend approval or denial of the plan. The 100.9authority must consider and include the decision of the Technical Evaluation Panel in their 100.10approval or denial of a plan or determination.100.11    (b) Persons conducting wetland or public waters boundary delineations or type 100.12determinations are exempt from the requirements of chapter 326. By January 15, 2001, 100.13the board, in consultation with the Minnesota Association of Professional Soil Scientists, 100.14the University of Minnesota, and the Wetland Delineators' Association, shall submit a plan 100.15for a professional wetland delineator certification program to the legislature. The board 100.16may develop a professional wetland delineator certification program.100.17EFFECTIVE DATE.This section is effective the day following final enactment.100.18    Sec. 129. Minnesota Statutes 2006, section 103G.2242, subdivision 2a, is amended to 100.19read:100.20    Subd. 2a. Wetland boundary or type determination. (a) A landowner may apply 100.21for a wetland boundary or type determination from the local government unit. The 100.22landowner applying for the determination is responsible for submitting proof necessary 100.23to make the determination, including, but not limited to, wetland delineation field data, 100.24observation well data, topographic mapping, survey mapping, and information regarding 100.25soils, vegetation, hydrology, and groundwater both within and outside of the proposed 100.26wetland boundary.100.27    (b) A local government unit that receives an application under paragraph (a) may 100.28seek the advice of the Technical Evaluation Panel as described in subdivision 2, and, if 100.29necessary, expand the Technical Evaluation Panel. The local government unit may delegate 100.30the decision authority for wetland boundary or type determinations with the zoning 100.31administrator to designated staff, or establish other procedures it considers appropriate.100.32    (c) The local government unit decision must be made in compliance with section 100.3315.99
         . Within ten calendar days of the decision, the local government unit decision must 100.34be mailed to the landowner, members of the Technical Evaluation Panel, the watershed 101.1district or watershed management organization, if one exists, and individual members of 101.2the public who request a copy. 101.3    (d) Appeals of decisions made by designated local government staff must be made 101.4to the local government unit. Notwithstanding any law to the contrary, a ruling on an 101.5appeal must be made by the local government unit within 30 days from the date of the 101.6filing of the appeal.101.7    (e) The local government unit decision is valid for three years unless the Technical 101.8Evaluation Panel determines that natural or artificial changes to the hydrology, vegetation, 101.9or soils of the area have been sufficient to alter the wetland boundary or type.101.10EFFECTIVE DATE.This section is effective the day following final enactment.101.11    Sec. 130. Minnesota Statutes 2006, section 103G.2242, subdivision 9, is amended to 101.12read:101.13    Subd. 9. Appeal. (a) Appeal of a replacement plan, exemption, wetland banking, 101.14wetland boundary or type determination, or no-loss decision, or restoration order may 101.15be obtained by mailing a petition and payment of a filing fee of $200, which shall be 101.16retained by the board to defray administrative costs, to the board within 30 days after the 101.17postmarked date of the mailing specified in subdivision 7. If appeal is not sought within 101.1830 days, the decision becomes final. The local government unit may require the petitioner 101.19to post a letter of credit, cashier's check, or cash in an amount not to exceed $500. If the 101.20petition for hearing is accepted, the amount posted must be returned to the petitioner. 101.21Appeal may be made by:101.22    (1) the wetland owner;101.23    (2) any of those to whom notice is required to be mailed under subdivision 7; or101.24    (3) 100 residents of the county in which a majority of the wetland is located.101.25    (b) Within 30 days after receiving a petition, the board shall decide whether to 101.26grant the petition and hear the appeal. The board shall grant the petition unless the board 101.27finds that:101.28    (1) the appeal is meritless, trivial, or brought solely for the purposes of delay;101.29    (2) the petitioner has not exhausted all local administrative remedies;101.30    (3) expanded technical review is needed;101.31    (4) the local government unit's record is not adequate; or101.32    (5) the petitioner has not posted a letter of credit, cashier's check, or cash if required 101.33by the local government unit.102.1    (c) In determining whether to grant the appeal, the board shall also consider the 102.2size of the wetland, other factors in controversy, any patterns of similar acts by the local 102.3government unit or petitioner, and the consequences of the delay resulting from the appeal.102.4    (d) All appeals must be heard by the committee for dispute resolution of the board, 102.5and a decision made within 60 days of filing the local government unit's record and the 102.6written briefs submitted for the appeal. The decision must be served by mail on the parties 102.7to the appeal, and is not subject to the provisions of chapter 14. A decision whether to 102.8grant a petition for appeal and a decision on the merits of an appeal must be considered the 102.9decision of an agency in a contested case for purposes of judicial review under sections 102.1014.63
          to 
         14.69. 102.11    (e) Notwithstanding section 16A.1283, the board shall establish a fee schedule to 102.12defray the administrative costs of appeals made to the board under this subdivision. Fees 102.13established under this authority shall not exceed $1,000. Establishment of the fee is not 102.14subject to the rulemaking process of chapter 14 and section 14.386 does not apply.102.15EFFECTIVE DATE.This section is effective the day following final enactment.102.16    Sec. 131. Minnesota Statutes 2006, section 103G.2242, subdivision 12, is amended to 102.17read:102.18    Subd. 12. Replacement credits. (a) No public or private wetland restoration, 102.19enhancement, or construction may be allowed for replacement unless specifically 102.20designated for replacement and paid for by the individual or organization performing the 102.21wetland restoration, enhancement, or construction, and is completed prior to any draining 102.22or filling of the wetland.102.23    (b) Paragraph (a) does not apply to a wetland whose owner has paid back with 102.24interest the individual or organization restoring, enhancing, or constructing the wetland.102.25    (c) Notwithstanding section 
         103G.222, subdivision 1, paragraph (h) (i), the 102.26following actions, and others established in rule, that are consistent with criteria in rules 102.27adopted by the board in conjunction with the commissioners of natural resources and 102.28agriculture, are eligible for replacement credit as determined by the local government unit, 102.29including enrollment in a statewide wetlands bank: 102.30    (1) reestablishment of permanent native, noninvasive vegetative cover on a wetland 102.31on agricultural land that was planted with annually seeded crops, was in a crop rotation 102.32seeding of pasture grasses or legumes, or was in a land retirement program during the 102.33past ten years;102.34    (2) buffer areas of permanent native, noninvasive vegetative cover established or 102.35preserved on upland adjacent to replacement wetlands;103.1    (3) wetlands restored for conservation purposes under terminated easements or 103.2contracts; and103.3    (4) water quality treatment ponds constructed to pretreat storm water runoff prior 103.4to discharge to wetlands, public waters, or other water bodies, provided that the water 103.5quality treatment ponds must be associated with an ongoing or proposed project that 103.6will impact a wetland and replacement credit for the treatment ponds is based on the 103.7replacement of wetland functions and on an approved stormwater management plan for 103.8the local government.103.9    (d) Notwithstanding section 
         103G.222, subdivision 1, paragraphs (e) (f) and (f) (g), 103.10the board may establish by rule different replacement ratios for restoration projects with 103.11exceptional natural resource value. 103.12EFFECTIVE DATE.This section is effective the day following final enactment.103.13    Sec. 132. Minnesota Statutes 2006, section 103G.2242, subdivision 15, is amended to 103.14read:103.15    Subd. 15. Fees paid to board. All fees established in subdivision subdivisions 9 103.16and 14 must be paid to the Board of Water and Soil Resources and credited to the general 103.17fund to be used for the purpose of administration of the wetland bank and to process 103.18appeals under section 103G.2242, subdivision 9.103.19EFFECTIVE DATE.This section is effective the day following final enactment.103.20    Sec. 133. Minnesota Statutes 2006, section 103G.2243, subdivision 2, is amended to 103.21read:103.22    Subd. 2. Plan contents. A comprehensive wetland protection and management 103.23plan may:103.24    (1) provide for classification of wetlands in the plan area based on:103.25    (i) an inventory of wetlands in the plan area;103.26    (ii) an assessment of the wetland functions listed in section 
         103B.3355, using a 103.27methodology chosen by the Technical Evaluation Panel from one of the methodologies 103.28established or approved by the board under that section; and 103.29    (iii) the resulting public values;103.30    (2) vary application of the sequencing standards in section 
         103G.222, subdivision 1, 103.31paragraph (b), for projects based on the classification and criteria set forth in the plan; 103.32    (3) vary the replacement standards of section 
         103G.222, subdivision 1, paragraphs 103.33(e) (f) and (f) (g), based on the classification and criteria set forth in the plan, for specific 104.1wetland impacts provided there is no net loss of public values within the area subject to 104.2the plan, and so long as: 104.3    (i) in a 50 to 80 percent area, a minimum acreage requirement of one acre of replaced 104.4wetland for each acre of drained or filled wetland requiring replacement is met within 104.5the area subject to the plan; and104.6    (ii) in a less than 50 percent area, a minimum acreage requirement of two acres of 104.7replaced wetland for each acre of drained or filled wetland requiring replacement is met 104.8within the area subject to the plan, except that replacement for the amount above a 1:1 104.9ratio can be accomplished as described in section 
         103G.2242, subdivision 12; and104.10    (4) in a greater than 80 percent area, allow replacement credit, based on the 104.11classification and criteria set forth in the plan, for any project that increases the public 104.12value of wetlands, including activities on adjacent upland acres; and.104.13    (5) in a greater than 80 percent area, based on the classification and criteria set forth 104.14in the plan, expand the application of the exemptions in section 103G.2241, subdivision 104.151, paragraph (a), clause (4), to also include nonagricultural land, provided there is no 104.16net loss of wetland values.104.17EFFECTIVE DATE.This section is effective the day following final enactment.104.18    Sec. 134. Minnesota Statutes 2006, section 103G.235, is amended to read:104.19103G.235 RESTRICTIONS ON ACCESS TO PUBLIC WATERS WETLANDS.104.20    Subdivision 1.Wetlands adjacent to roads. To protect the public health or safety, 104.21local units of government may by ordinance restrict public access to public waters 104.22wetlands from municipality, county, or township roads that abut public waters wetlands.104.23    Subd. 2.Privately restored or created wetlands.When a landowner creates a new 104.24wetland or restores a formerly existing wetland on private land that is adjacent to public 104.25land or a public road right-of-way, there is no public access to the created or restored 104.26wetland if posted by the landowner.104.27    Sec. 135. Minnesota Statutes 2006, section 103G.301, subdivision 2, is amended to 104.28read:104.29    Subd. 2. Permit application fees. (a) A permit application fee to defray the costs of 104.30receiving, recording, and processing the application must be paid for a permit authorized 104.31under this chapter and for each request to amend or transfer an existing permit.104.32    (b) The fee for a project appropriating water in excess of 100 million gallons per 104.33year must be assessed to recover the reasonable costs of preparing and processing the 104.34permit, including costs for environmental review. Fees collected under this paragraph 105.1must be credited to an account in the natural resources fund and are appropriated to the 105.2commissioner for fiscal years 2008 and 2009.105.3    (b) (c) The fee to apply for a permit to appropriate water, other than a permit subject 105.4to the fee under paragraph (b); a permit to construct or repair a dam that is subject to dam 105.5safety inspection,; or a state general permit or to apply for the state water bank program is 105.6$150. The application fee for a permit to work in public waters or to divert waters for 105.7mining must be at least $150, but not more than $1,000, according to a schedule of fees 105.8adopted under section 
         16A.1285.105.9    Sec. 136. Minnesota Statutes 2006, section 115.55, subdivision 1, is amended to read:105.10    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to sections 105.11115.55
          to 
         115.56. 105.12    (b) "Advisory committee" means the Advisory Committee on Individual Sewage 105.13Treatment Systems established under the individual sewage treatment system rules. The 105.14advisory committee must be appointed to ensure geographic representation of the state 105.15and include elected public officials.105.16    (c) "Applicable requirements" means:105.17    (1) local ordinances that comply with the individual sewage treatment system rules, 105.18as required in subdivision 2; or105.19    (2) in areas not subject to the ordinances described in clause (1), the individual 105.20sewage treatment system rules.105.21    (d) "City" means a statutory or home rule charter city.105.22    (e) "Commissioner" means the commissioner of the Pollution Control Agency.105.23    (f) "Dwelling" means a building or place used or intended to be used by human 105.24occupants as a single-family or two-family unit.105.25    (g) "Individual sewage treatment system" or "system" means a sewage treatment 105.26system, or part thereof, serving a dwelling, other establishment, or group thereof, that 105.27uses subsurface soil treatment and disposal, or a holding tank, serving a dwelling, other 105.28establishment, or a group thereof.105.29    (h) "Individual sewage treatment system professional" means an inspector, installer, 105.30site evaluator or designer, or pumper.105.31    (i) "Individual sewage treatment system rules" means rules adopted by the agency 105.32that establish minimum standards and criteria for the design, location, installation, use, 105.33and maintenance of individual sewage treatment systems.105.34    (j) "Inspector" means a person who inspects individual sewage treatment systems for 105.35compliance with the applicable requirements.106.1    (k) "Installer" means a person who constructs or repairs individual sewage treatment 106.2systems.106.3    (l) "Local unit of government" means a township, city, or county.106.4    (m) "Performance-based system" means a system that is designed specifically for a 106.5site and the environmental conditions on that site and designed to adequately protect the 106.6public health and the environment and provide long-term performance. At a minimum, a 106.7performance based system must ensure that applicable water quality standards are met in 106.8both ground and surface water that ultimately receive the treated wastewater. 106.9    (n) "Pumper" means a person who maintains components of individual sewage 106.10treatment systems including, but not limited to, septic, aerobic, and holding tanks.106.11    (n) (o) "Seasonal dwelling" means a dwelling that is occupied or used for less than 106.12180 days per year and less than 120 consecutive days.106.13    (o) (p) "Septic system tank" means any covered receptacle designed, constructed, 106.14and installed as part of an individual sewage treatment system.106.15    (p) (q) "Site evaluator or designer" means a person who:106.16    (1) investigates soils and site characteristics to determine suitability, limitations, and 106.17sizing requirements; and106.18    (2) designs individual sewage treatment systems.106.19    (q) (r) "Straight-pipe system" means a sewage disposal system that includes toilet 106.20waste and transports raw or partially settled sewage directly to a lake, a stream, a drainage 106.21system, or ground surface.106.22    Sec. 137. Minnesota Statutes 2006, section 115.55, subdivision 2, is amended to read:106.23    Subd. 2. Local ordinances. (a) All counties that did not adopt ordinances by 106.24May 7, 1994, or that do not have ordinances, must adopt ordinances that comply with 106.25revisions to the individual sewage treatment system rules by January 1, 1999, unless all 106.26towns and cities in the county have adopted such ordinances within two years of the final 106.27adoption by the agency. County ordinances must apply to all areas of the county other 106.28than cities or towns that have adopted ordinances that comply with this section and are 106.29as strict as the applicable county ordinances. Any ordinance adopted by a local unit of 106.30government before May 7, 1994, to regulate individual sewage treatment systems must be 106.31in compliance with the individual sewage treatment system rules by January 1, 1998.106.32    (b) A copy of each ordinance adopted under this subdivision must be submitted to 106.33the commissioner upon adoption.106.34    (c) A local unit of government must make available to the public upon request a 106.35written list of any differences between its ordinances and rules adopted under this section.107.1    Sec. 138. Minnesota Statutes 2006, section 115.55, subdivision 3, is amended to read:107.2    Subd. 3. Rules. (a) The agency shall adopt rules containing minimum standards and 107.3criteria for the design, location, installation, use, and maintenance of individual sewage 107.4treatment systems. The rules must include:107.5    (1) how the agency will ensure compliance under subdivision 2;107.6    (2) how local units of government shall enforce ordinances under subdivision 2, 107.7including requirements for permits and inspection programs;107.8    (3) how the advisory committee will participate in review and implementation of 107.9the rules;107.10    (4) provisions for alternative nonstandard  systems and performance-based systems;107.11    (5) provisions for handling and disposal of effluent;107.12    (6) provisions for system abandonment; and107.13    (7) procedures for variances, including the consideration of variances based on cost 107.14and variances that take into account proximity of a system to other systems.107.15    (b) The agency shall consult with the advisory committee before adopting rules 107.16under this subdivision.107.17    (c) Notwithstanding the repeal of the agency rule under which the commissioner 107.18has established a list of warrantied individual sewage treatment systems, the warranties 107.19for all systems so listed as of the effective date of the repeal shall continue to be valid 107.20for the remainder of the warranty period.107.21    (d) The rules required in paragraph (a) must also address the following:107.22    (1) a definition of redoximorphic features and other criteria that can be used by 107.23system designers and inspectors;107.24    (2) direction on the interpretation of observed soil features that may be 107.25redoximorphic and their relation to zones of seasonal saturation; and107.26    (3) procedures on how to resolve professional disagreements on seasonally saturated 107.27soils.107.28These rules must be in place by March 31, 2006.107.29    Sec. 139. Minnesota Statutes 2006, section 115.55, is amended by adding a subdivision 107.30to read:107.31    Subd. 12.Advisory committee; county individual sewage treatment system 107.32management plan.(a) A county may adopt an individual sewage treatment system 107.33management plan that describes how the county plans on carrying out individual sewage 107.34treatment system needs. The commissioner of the Pollution Control Agency shall form an 107.35advisory committee to determine what the plans should address. The advisory committee 108.1shall be made up of representatives of the Association of Minnesota Counties, Pollution 108.2Control Agency, Board of Water and Soil Resources, Department of Health, and other 108.3public agencies or local units of government that have an interest in individual sewage 108.4treatment systems.108.5    (b) The advisory committee shall advise the agency on the standards, management, 108.6monitoring, and reporting requirements for performance-based systems.108.7    Sec. 140. Minnesota Statutes 2006, section 116C.92, is amended to read:108.8116C.92 COORDINATION OF ACTIVITIES.108.9    Subdivision 1.State coordinating organization. The Environmental Quality Board 108.10is designated the state coordinating organization for state and federal regulatory activities 108.11relating to genetically engineered organisms.108.12    Subd. 2.Notice of nationwide action.The board shall notify interested parties if a 108.13permit to release genetically engineered wild rice is issued anywhere in the United States. 108.14For purposes of this subdivision, "interested parties" means:108.15    (1) the state's wild rice industry;108.16    (2) the legislature;108.17    (3) federally recognized tribes within Minnesota; and108.18    (4) individuals who request to be notified.108.19    Sec. 141. Minnesota Statutes 2006, section 116C.94, subdivision 1, is amended to read:108.20    Subdivision 1. General authority.(a) Except as provided in paragraph (b), the 108.21board shall adopt rules consistent with sections 
         116C.91 to 
         116C.96 that require an 108.22environmental assessment worksheet and otherwise comply with chapter 116D and rules 108.23adopted under it for a proposed release and a permit for a release. The board may place 108.24conditions on a permit and may deny, modify, suspend, or revoke a permit. 108.25    (b) The board shall adopt rules that require an environmental impact statement and 108.26otherwise comply with chapter 116D and rules adopted under it for a proposed release and 108.27a permit for a release of genetically engineered wild rice. The board may place conditions 108.28on the permit and may deny, modify, suspend, or revoke the permit. 108.29    Sec. 142. Minnesota Statutes 2006, section 116C.97, subdivision 2, is amended to read:108.30    Subd. 2. Federal oversight. (a) If the board determines, upon its own volition or at 108.31the request of any person, that a federal program exists for regulating the release of certain 108.32genetically engineered organisms and the federal oversight under the program is adequate 108.33to protect human health or the environment, then any person may release such genetically 109.1engineered organisms after obtaining the necessary federal approval and without obtaining 109.2a state release permit or a significant environmental permit or complying with the other 109.3requirements of sections 
         116C.91 to 
         116C.96 and the rules of the board adopted pursuant 109.4to section 
         116C.94. 109.5    (b) If the board determines the federal program is adequate to meet only certain 109.6requirements of sections 
         116C.91 to 
         116C.96 and the rules of the board adopted pursuant 109.7to section 
         116C.94, the board may exempt such releases from those requirements. 109.8    (c) A person proposing a release for which a federal authorization is required may 109.9apply to the board for an exemption from the board's permit or to a state agency with a 109.10significant environmental permit for the proposed release for an exemption from the 109.11agency's permit. The proposer must file with the board or state agency a written request 109.12for exemption with a copy of the federal application and the information necessary to 109.13determine if there is a potential for significant environmental effects under chapter 116D 109.14and rules adopted under it. The board or state agency shall give public notice of the request 109.15in the first available issue of the EQB Monitor and shall provide an opportunity for public 109.16comment on the environmental review process consistent with chapter 116D and rules 109.17adopted under it. The board or state agency may grant the exemption if the board or state 109.18agency finds that the federal authorization issued is adequate to meet the requirements of 109.19chapter 116D and rules adopted under it and any other requirement of the board's or state 109.20agency's authority regarding the release of genetically engineered organisms. The board 109.21or state agency must grant or deny the exemption within 45 days after the receipt of the 109.22written request and the information required by the board or state agency.109.23    (d) This subdivision does not apply to genetically engineered organisms for which 109.24an environmental impact statement is required under sections 116C.91 to 116C.96.109.25    Sec. 143. [144.995] DEFINITIONS; ENVIRONMENTAL HEALTH TRACKING 109.26AND BIOMONITORING.109.27    (a) For purposes of sections 144.995 to 144.998, the terms in this section have 109.28the meanings given.109.29    (b) "Advisory panel" means the Environmental Health Tracking and Biomonitoring 109.30Advisory Panel established under section 144.998.109.31    (c) "Biomonitoring" means the process by which chemicals and their metabolites are 109.32identified and measured within a biospecimen.109.33    (d) "Biospecimen" means a sample of human fluid, serum, or tissue that is reasonably 109.34available as a medium to measure the presence and concentration of chemicals or their 109.35metabolites in a human body.110.1    (e) "Commissioner" means the commissioner of the Department of Health.110.2    (f) "Community" means geographically or nongeographically based populations that 110.3may participate in the biomonitoring program. A "nongeographical community" includes, 110.4but is not limited to, populations that may share a common chemical exposure through 110.5similar occupations, populations experiencing a common health outcome that may be 110.6linked to chemical exposures, populations that may experience similar chemical exposures 110.7because of comparable consumption, lifestyle, product use, and subpopulations that share 110.8ethnicity, age, or gender.110.9    (g) "Department" means the Department of Health.110.10    (h) "Designated chemicals" means those chemicals that are known to, or strongly 110.11suspected of, adversely impacting human health or development, based upon scientific, 110.12peer-reviewed animal, human, or in vitro studies, and baseline human exposure data, 110.13and consists of chemical families or metabolites that are included in the federal Centers 110.14for Disease Control and Prevention studies that are known collectively as the National 110.15Reports on Human Exposure to Environmental Chemicals Program and any substances 110.16specified by the commissioner after receiving recommendations under section 144.998, 110.17subdivision 3, clause (6).110.18    (i) "Environmental hazard" means a chemical or other substance for which scientific, 110.19peer-reviewed studies of humans, animals, or cells have demonstrated that the chemical is 110.20known or reasonably anticipated to adversely impact human health.110.21    (j) "Environmental health tracking" means collection, integration, analysis, and 110.22dissemination of data on human exposures to  chemicals in the environment and on 110.23diseases potentially caused or aggravated by those chemicals.110.24    Sec. 144. [144.996] ENVIRONMENTAL HEALTH TRACKING; 110.25BIOMONITORING.110.26    Subdivision 1.Environmental health tracking.In cooperation with the 110.27commissioner of the Pollution Control Agency, the commissioner shall establish an 110.28environmental health tracking program to:110.29    (1) coordinate data collection with the Pollution Control Agency, Department of 110.30Agriculture, University of Minnesota, and any other relevant state agency and work to 110.31promote the sharing of and access to health and environmental databases to develop an 110.32environmental health tracking system for Minnesota, consistent with applicable data 110.33practices laws;110.34    (2) facilitate the dissemination of aggregate public health tracking data to the public 110.35and researchers in accessible format;111.1    (3) develop a strategic plan that includes a mission statement, the identification 111.2of core priorities for research and epidemiologic surveillance, and the identification of 111.3internal and external stakeholders, and a work plan describing future program development 111.4and addressing issues having to do with compatibility with the Centers for Disease Control 111.5and Prevention's National Environmental Public Health Tracking Program;111.6    (4) develop written data sharing agreements as needed with the Pollution Control 111.7Agency, Department of Agriculture, and other relevant state agencies and organizations, 111.8and develop additional procedures as needed to protect individual privacy;111.9    (5) organize, analyze, and interpret available data, in order to:111.10    (i) characterize statewide and localized trends and geographic patterns of 111.11population-based measures of chronic diseases including, but not limited to, cancer, 111.12respiratory diseases, reproductive problems, birth defects, neurologic diseases, and 111.13developmental disorders;111.14    (ii) characterize statewide and localized trends and geographic patterns in the 111.15occurrence of environmental hazards and exposures;111.16    (iii) assess the feasibility of integrating disease rate data with indicators of exposure 111.17to the selected environmental hazards such as biomonitoring data, and other health and 111.18environmental data;111.19    (iv) incorporate newly collected and existing health tracking and biomonitoring 111.20data into efforts to identify communities with elevated rates of chronic disease, higher 111.21likelihood of exposure to environmental hazards, or both;111.22    (v) analyze occurrence of environmental hazards, exposures, and diseases with 111.23relation to socioeconomic status, race, and ethnicity;111.24    (vi) develop and implement targeted plans to conduct more intensive health tracking 111.25and biomonitoring among communities; and111.26    (vii) work with the Pollution Control Agency, the Department of Agriculture, and 111.27other relevant state agency personnel and organizations to develop, implement, and 111.28evaluate preventive measures to reduce elevated rates of diseases and exposures identified 111.29through activities performed under sections 144.995 to 144.998; and111.30    (6) submit a biennial report to the chairs and ranking members of the committees 111.31with jurisdiction over environment and health by January 15, beginning January 15, 2009, 111.32on the status of environmental health tracking activities and related research programs, 111.33with recommendations for a comprehensive environmental public health tracking program.111.34    Subd. 2.Biomonitoring.The commissioner shall:112.1    (1) conduct biomonitoring of communities on a voluntary  basis by collecting and 112.2analyzing biospecimens, as appropriate, to assess environmental exposures to designated 112.3chemicals;112.4    (2) conduct biomonitoring of pregnant women and minors on a voluntary basis, 112.5when scientifically appropriate; 112.6    (3) communicate findings to the public, and plan ensuing stages of biomonitoring 112.7and disease tracking work to further develop and refine the integrated analysis;112.8    (4) share analytical results with the advisory panel and work with the panel 112.9to interpret results, communicate findings to the public, and plan ensuing stages of 112.10biomonitoring work; and112.11    (5) submit a biennial report to the chairs and ranking members of the committees 112.12with jurisdiction over environment and health by January 15, beginning January 15, 2009, 112.13on the status of the biomonitoring program and any recommendations for improvement.112.14    Subd. 3.Health data.Data collected under the biomonitoring program are health 112.15data under section 13.3805.112.16    Sec. 145. [144.997] BIOMONITORING PILOT PROGRAM.112.17    Subdivision 1.Pilot program.With advice from the advisory panel, and after the 112.18program guidelines in subdivision 4 are developed, the commissioner shall implement a 112.19biomonitoring pilot program. The program shall collect one biospecimen from each of 112.20the voluntary participants. The biospecimen selected must be the biospecimen that most 112.21accurately represents body concentration of the chemical of interest. Each biospecimen 112.22from the voluntary participants must be analyzed for one type or class of related chemicals. 112.23The commissioner shall determine the chemical or class of chemicals to which community 112.24members were most likely exposed. The program shall collect and assess biospecimens in 112.25accordance with the following: 112.26    (1) 30 voluntary participants from each of three communities that the commissioner 112.27identifies as likely to have been exposed to a designated chemical; 112.28    (2) 100 voluntary participants from each of two communities:112.29    (i) that the commissioner identifies as likely to have been exposed to arsenic; and112.30    (ii) that the commissioner identifies as likely to have been exposed to mercury; and 112.31    (3) 100 voluntary participants from each of two communities that the commissioner 112.32identifies as likely to have been exposed to perfluorinated chemicals, including 112.33perfluorobutanoic acid.113.1    Subd. 2.Base program.(a) By January 15, 2008, the commissioner shall submit a 113.2report on the results of the biomonitoring pilot program to the chairs and ranking members 113.3of the committees with jurisdiction over health and environment. 113.4    (b) Following the conclusion of the pilot program, the commissioner shall:113.5    (1) work with the advisory panel to assess the usefulness of continuing biomonitoring 113.6among members of communities assessed during the pilot program and to identify other 113.7communities and other designated chemicals to be assessed via biomonitoring;113.8    (2) work with the advisory panel to assess the pilot program, including but not 113.9limited to the validity and accuracy of the analytical measurements and adequacy of the 113.10guidelines and protocols;113.11    (3) communicate the results of the pilot program to the public; and113.12    (4) after consideration of the findings and recommendations in clauses (1) and (2), 113.13and within the appropriations available, develop and implement a base program.113.14    Subd. 3.Participation.(a) Participation in the biomonitoring program by providing 113.15biospecimens is voluntary and requires written, informed consent. Minors may participate 113.16in the program if a written consent is signed by the minor's parent or legal guardian. 113.17The written consent must include the information required to be provided under this 113.18subdivision to all voluntary participants.113.19    (b) All participants shall be evaluated for the presence of the designated chemical 113.20of interest as a component of the biomonitoring process. Participants shall be provided 113.21with information and fact sheets about the program's activities and its findings. 113.22Individual participants shall, if requested, receive their complete results. Any results 113.23provided to participants shall be subject to the Department of Health Institutional 113.24Review Board protocols and guidelines. When either physiological or chemical data 113.25obtained from a participant indicate a significant known health risk, program staff 113.26experienced in communicating biomonitoring results shall consult with the individual 113.27and recommend follow-up steps, as appropriate. Program administrators shall receive 113.28training in administering the program in an ethical, culturally sensitive, participatory, 113.29and community-based manner.113.30    Subd. 4.Program guidelines.(a) The commissioner, in consultation with the 113.31advisory panel, shall develop:113.32    (1) protocols or program guidelines that address the science and practice of 113.33biomonitoring to be utilized and procedures for changing those protocols to incorporate 113.34new and more accurate or efficient technologies as they become available. The 113.35commissioner and the advisory panel shall be guided by protocols and guidelines 114.1developed by the Centers for Disease Control and Prevention and the National 114.2Biomonitoring Program;114.3    (2) guidelines for ensuring the privacy of information; informed consent; follow-up 114.4counseling and support; and communicating findings to participants, communities, and 114.5the general public. The informed consent used for the program must meet the informed 114.6consent protocols developed by the National Institutes of Health;114.7    (3) educational and outreach materials that are culturally appropriate for 114.8dissemination to program participants and communities. Priority shall be given to the 114.9development of materials specifically designed to ensure that parents are informed about 114.10all of the benefits of breastfeeding so that the program does not result in an unjustified fear 114.11of toxins in breast milk, which might inadvertently lead parents to avoid breastfeeding. 114.12The materials shall communicate relevant scientific findings; data on the accumulation 114.13of pollutants to community health; and the required responses by local, state, and other 114.14governmental entities in regulating toxicant exposures;114.15    (4) a training program that is culturally sensitive specifically for health care 114.16providers, health educators, and other program administrators; 114.17    (5) a designation process for state and private laboratories that are qualified to 114.18analyze biospecimens and report the findings; and 114.19    (6) a method for informing affected communities and local governments representing 114.20those communities concerning biomonitoring activities and for receiving comments from 114.21citizens concerning those activities.114.22    (b) The commissioner may enter into contractual agreements with health clinics, 114.23community-based organizations, or experts in a particular field to perform any of the 114.24activities described under this section.114.25    Sec. 146. [144.998] ENVIRONMENTAL HEALTH TRACKING AND 114.26BIOMONITORING ADVISORY PANEL.114.27    Subdivision 1.Creation.The commissioner shall establish the Environmental 114.28Health Tracking and Biomonitoring Advisory Panel. The commissioner shall appoint, 114.29from the panel's membership, a chair. The panel shall meet as often as it deems necessary 114.30but, at a minimum, on a quarterly basis. Members of the panel shall serve without 114.31compensation but shall be reimbursed for travel and other necessary expenses incurred 114.32through performance of their duties. Members appointed by the commissioner are 114.33appointed for a three-year term and may be reappointed. Legislative appointees serve at 114.34the pleasure of the appointing authority.115.1    Subd. 2.Members.(a) The commissioner shall appoint eight members, none of 115.2whom may be lobbyists registered under chapter 10A, who have backgrounds or training 115.3in designing, implementing, and interpreting health tracking and biomonitoring studies or 115.4in related fields of science, including epidemiology, biostatistics, environmental health, 115.5laboratory sciences, occupational health, industrial hygiene, toxicology, and public health, 115.6including:115.7    (1) at least two scientists representative of each of the following:115.8    (i) nongovernmental organizations with a focus on environmental health, 115.9environmental justice, children's health, or on specific chronic diseases; and115.10    (ii) statewide business organizations; and115.11    (2) at least one scientist who is a representative of the University of Minnesota.115.12    (b) Two citizen panel members meeting the scientific qualifications in paragraph (a) 115.13shall be appointed, one by the speaker of the house and one by the senate majority leader.115.14    (c) In addition, one representative each shall be appointed by the commissioners of 115.15the Pollution Control Agency and the Department of Agriculture, and by the commissioner 115.16of health to represent the department's Health Promotion and Chronic Disease Division.115.17    Subd. 3.Duties.The advisory panel shall make recommendations to the 115.18commissioner and the legislature on:115.19    (1) priorities for health tracking;115.20    (2) priorities for biomonitoring that are based on sound science and practice, and 115.21that will advance the state of public health in Minnesota;115.22    (3) specific chronic diseases to study under the environmental health tracking system;115.23    (4) specific environmental hazard exposures to study under the environmental health 115.24tracking system, with the agreement of at least nine of the advisory panel members;115.25    (5) specific communities and geographic areas on which to focus environmental 115.26health tracking and biomonitoring efforts;115.27    (6) specific chemicals to study under the biomonitoring program, with the agreement 115.28of at least nine of the advisory panel members; in making these recommendations, the 115.29panel may consider the following criteria:115.30    (i) the degree of potential exposure to the public or specific subgroups, including, 115.31but not limited to, occupational;115.32    (ii) the likelihood of a chemical being a carcinogen or toxicant based on 115.33peer-reviewed health data, the chemical structure, or the toxicology of chemically related 115.34compounds;115.35    (iii) the limits of laboratory detection for the chemical, including the ability to detect 115.36the chemical at low enough levels that could be expected in the general population;116.1    (iv) exposure or potential exposure to the public or specific subgroups;116.2    (v) the known or suspected health effects resulting from the same level of exposure 116.3based on peer-reviewed scientific studies;116.4    (vi) the need to assess the efficacy of public health actions to reduce exposure to a 116.5chemical;116.6    (vii) the availability of a biomonitoring analytical method with adequate accuracy, 116.7precision, sensitivity, specificity, and speed;116.8    (viii) the availability of adequate biospecimen samples; or116.9    (ix) other criteria that the panel may agree to; and116.10    (7) other aspects of the design, implementation, and evaluation of the environmental 116.11health tracking and biomonitoring system, including, but not limited to:116.12    (i) identifying possible community partners and sources of additional public or 116.13private funding;116.14    (ii) developing outreach and educational methods and materials; and116.15    (iii) disseminating environmental health tracking and biomonitoring findings to 116.16the public.116.17    Subd. 4.Liability.No member of the panel shall be held civilly or criminally liable 116.18for an act or omission by that person if the act or omission was in good faith and within 116.19the scope of the member's responsibilities under sections 144.995 to 144.998.116.20    Sec. 147. Minnesota Statutes 2006, section 219.99, is amended to read:116.21219.99 RAILROAD PRAIRIE RIGHT-OF-WAY; BEST MANAGEMENT 116.22PRACTICES.116.23    The commissioner of natural resources shall conduct a field review of railroad 116.24rights-of-way to identify native prairie. The priority will be to identify and conduct a field 116.25review of any surveys which have been conducted previously, whether by public or private 116.26persons, of native prairies within railroad rights-of-way in this state. In cooperation with 116.27railroad companies, the commissioner shall identify management practices used to control 116.28vegetation along railroad rights-of-way. The commissioner shall then assess the impact 116.29of those management practices on the prairie lands within the railroad rights-of-way. 116.30Based on that assessment, the commissioner and railroad companies shall jointly develop 116.31voluntary best management practices for prairie lands within railroad rights-of-way. The 116.32commissioner shall, to the extent feasible, work with private individuals and groups 116.33to cause to be erected markers at either end of each native prairie within a railroad 116.34right-of-way.117.1    Sec. 148. Minnesota Statutes 2006, section 282.04, subdivision 1, is amended to read:117.2    Subdivision 1. Timber sales; land leases and uses. (a) The county auditor may 117.3sell timber upon any tract that may be approved by the natural resources commissioner. 117.4The sale of timber shall be made for cash at not less than the appraised value determined 117.5by the county board to the highest bidder after not less than one week's published notice 117.6in an official paper within the county. Any timber offered at the public sale and not sold 117.7may thereafter be sold at private sale by the county auditor at not less than the appraised 117.8value thereof, until the time as the county board may withdraw the timber from sale. The 117.9appraised value of the timber and the forestry practices to be followed in the cutting of 117.10said timber shall be approved by the commissioner of natural resources.117.11    (b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be 117.12made in cash at the time of the timber sale, except in the case of oral or sealed bid auction 117.13sales, the down payment shall be no less than 15 percent of the appraised value, and the 117.14balance shall be paid prior to entry. In the case of auction sales that are partitioned and 117.15sold as a single sale with predetermined cutting blocks, the down payment shall be no less 117.16than 15 percent of the appraised price of the entire timber sale which may be held until the 117.17satisfactory completion of the sale or applied in whole or in part to the final cutting block. 117.18The value of each separate block must be paid in full before any cutting may begin in that 117.19block. With the permission of the county contract administrator the purchaser may enter 117.20unpaid blocks and cut necessary timber incidental to developing logging roads as may 117.21be needed to log other blocks provided that no timber may be removed from an unpaid 117.22block until separately scaled and paid for. If payment is provided as specified in this 117.23paragraph as security under paragraph (a) and no cutting has taken place on the contract, 117.24the county auditor may credit the security provided, less any down payment required for 117.25an auction sale under this paragraph, to any other contract issued to the contract holder 117.26by the county under this chapter to which the contract holder requests in writing that it 117.27be credited, provided the request and transfer is made within the same calendar year as 117.28the security was received.117.29    (c) The county board may require final settlement on the basis of a scale of cut 117.30products sell any timber, including biomass, as appraised or scaled. Any parcels of land 117.31from which timber is to be sold by scale of cut products shall be so designated in the 117.32published notice of sale under paragraph (a), in which case the notice shall contain a 117.33description of the parcels, a statement of the estimated quantity of each species of timber, 117.34and the appraised price of each species of timber for 1,000 feet, per cord or per piece, as 117.35the case may be. In those cases any bids offered over and above the appraised prices shall 117.36be by percentage, the percent bid to be added to the appraised price of each of the different 118.1species of timber advertised on the land. The purchaser of timber from the parcels shall 118.2pay in cash at the time of sale at the rate bid for all of the timber shown in the notice of 118.3sale as estimated to be standing on the land, and in addition shall pay at the same rate for 118.4any additional amounts which the final scale shows to have been cut or was available for 118.5cutting on the land at the time of sale under the terms of the sale. Where the final scale 118.6of cut products shows that less timber was cut or was available for cutting under terms 118.7of the sale than was originally paid for, the excess payment shall be refunded from the 118.8forfeited tax sale fund upon the claim of the purchaser, to be audited and allowed by the 118.9county board as in case of other claims against the county. No timber, except hardwood 118.10pulpwood, may be removed from the parcels of land or other designated landings until 118.11scaled by a person or persons designated by the county board and approved by the 118.12commissioner of natural resources. Landings other than the parcel of land from which 118.13timber is cut may be designated for scaling by the county board by written agreement 118.14with the purchaser of the timber. The county board may, by written agreement with the 118.15purchaser and with a consumer designated by the purchaser when the timber is sold by the 118.16county auditor, and with the approval of the commissioner of natural resources, accept the 118.17consumer's scale of cut products delivered at the consumer's landing. No timber shall be 118.18removed until fully paid for in cash. Small amounts of timber not exceeding $3,000 in 118.19appraised valuation may be sold for not less than the full appraised value at private sale 118.20to individual persons without first publishing notice of sale or calling for bids, provided 118.21that in case of a sale involving a total appraised value of more than $200 the sale shall be 118.22made subject to final settlement on the basis of a scale of cut products in the manner above 118.23provided and not more than two of the sales, directly or indirectly to any individual shall 118.24be in effect at one time.118.25    (d) As directed by the county board, the county auditor may lease tax-forfeited land 118.26to individuals, corporations or organized subdivisions of the state at public or private sale, 118.27and at the prices and under the terms as the county board may prescribe, for use as cottage 118.28and camp sites and for agricultural purposes and for the purpose of taking and removing of 118.29hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden 118.30sites and other temporary uses provided that no leases shall be for a period to exceed ten 118.31years; provided, further that any leases involving a consideration of more than $12,000 per 118.32year, except to an organized subdivision of the state shall first be offered at public sale in 118.33the manner provided herein for sale of timber. Upon the sale of any leased land, it shall 118.34remain subject to the lease for not to exceed one year from the beginning of the term of the 118.35lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation 119.1shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be 119.2audited and allowed by the county board as in case of other claims against the county.119.3    (e) As directed by the county board, the county auditor may lease tax-forfeited land 119.4to individuals, corporations, or organized subdivisions of the state at public or private sale, 119.5at the prices and under the terms as the county board may prescribe, for the purpose 119.6of taking and removing for use for road construction and other purposes tax-forfeited 119.7stockpiled iron-bearing material. The county auditor must determine that the material is 119.8needed and suitable for use in the construction or maintenance of a road, tailings basin, 119.9settling basin, dike, dam, bank fill, or other works on public or private property, and 119.10that the use would be in the best interests of the public. No lease shall exceed ten years. 119.11The use of a stockpile for these purposes must first be approved by the commissioner of 119.12natural resources. The request shall be deemed approved unless the requesting county 119.13is notified to the contrary by the commissioner of natural resources within six months 119.14after receipt of a request for approval for use of a stockpile. Once use of a stockpile has 119.15been approved, the county may continue to lease it for these purposes until approval is 119.16withdrawn by the commissioner of natural resources.119.17    (f) The county auditor, with the approval of the county board is authorized to grant 119.18permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean 119.19ores, tailings, or waste products from mines or ore milling plants, upon the conditions and 119.20for the consideration and for the period of time, not exceeding 15 years, as the county 119.21board may determine. The permits, licenses, or leases are subject to approval by the 119.22commissioner of natural resources.119.23    (g) Any person who removes any timber from tax-forfeited land before said 119.24timber has been scaled and fully paid for as provided in this subdivision is guilty of a 119.25misdemeanor.119.26    (h) The county auditor may, with the approval of the county board, and without first 119.27offering at public sale, grant leases, for a term not exceeding 25 years, for the removal 119.28of peat and for the production or removal of farm-grown closed-loop biomass as defined 119.29in section 
         216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited 119.30lands upon the terms and conditions as the county board may prescribe. Any lease for 119.31the removal of peat, farm-grown closed-loop biomass, or short-rotation woody crops 119.32from tax-forfeited lands must first be reviewed and approved by the commissioner of 119.33natural resources if the lease covers 320 or more acres. No lease for the removal of 119.34peat, farm-grown closed-loop biomass, or short-rotation woody crops shall be made by 119.35the county auditor pursuant to this section without first holding a public hearing on the 119.36auditor's intention to lease. One printed notice in a legal newspaper in the county at least 120.1ten days before the hearing, and posted notice in the courthouse at least 20 days before 120.2the hearing shall be given of the hearing.120.3    (i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis 120.4County auditor may, at the discretion of the county board, sell timber to the party who 120.5bids the highest price for all the several kinds of timber, as provided for sales by the 120.6commissioner of natural resources under section 
         90.14. Bids offered over and above the 120.7appraised price need not be applied proportionately to the appraised price of each of 120.8the different species of timber.120.9    (j) In lieu of any payment or deposit required in paragraph (b), as directed by the 120.10county board and under terms set by the county board, the county auditor may accept an 120.11irrevocable bank letter of credit in the amount equal to the amount otherwise determined 120.12in paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph, 120.13at the written request of the purchaser, the county may periodically allow the bank letter 120.14of credit to be reduced by an amount proportionate to the value of timber that has been 120.15harvested and for which the county has received payment. The remaining amount of 120.16the bank letter of credit after a reduction under this paragraph must not be less than 20 120.17percent of the value of the timber purchased. If an irrevocable bank letter of credit or 120.18cash deposit is provided for the down payment required in paragraph (b), and no cutting 120.19of timber has taken place on the contract for which a letter of credit has been provided, 120.20the county may allow the transfer of the letter of credit to any other contract issued to the 120.21contract holder by the county under this chapter to which the contract holder requests in 120.22writing that it be credited.120.23    Sec. 149. [325E.385] PRODUCTS CONTAINING POLYBROMINATED 120.24DIPHENYL ETHER.120.25    Subdivision 1.Definitions.For the purposes of sections 325E.386 to 325E.388, 120.26the terms in this section have the meanings given them.120.27    Subd. 2.Commercial decabromodiphenyl ether."Commercial 120.28decabromodiphenyl ether" means the chemical mixture of decabromodiphenyl ether, 120.29including associated polybrominated diphenyl ether impurities not intentionally added.120.30    Subd. 3.Commissioner."Commissioner" means the commissioner of the Pollution 120.31Control Agency.120.32    Subd. 4.Manufacturer."Manufacturer" means any person, firm, association, 120.33partnership, corporation, governmental entity, organization, or joint venture that produces 121.1a product containing polybrominated diphenyl ethers or an importer or domestic 121.2distributor of a noncomestible product containing polybrominated diphenyl ethers.121.3    Subd. 5.Polybrominated diphenyl ethers or PBDE's."Polybrominated diphenyl 121.4ethers" or "PBDE's" means chemical forms that consist of diphenyl ethers bound with 121.5bromine atoms. Polybrominated diphenyl ethers include, but are not limited to, the 121.6three primary forms of the commercial mixtures known as pentabromodiphenyl ether, 121.7octabromodiphenyl ether, and decabromodiphenyl ether.121.8    Subd. 6.Retailer."Retailer" means a person who offers a product for sale at retail 121.9through any means, including, but not limited to, remote offerings such as sales outlets, 121.10catalogs, or the Internet, but does not include a sale that is a wholesale transaction with a 121.11distributor or a retailer.121.12    Subd. 7.Used product."Used product" means any product that has been previously 121.13owned, purchased, or sold in commerce. Used product does not include any product 121.14manufactured after January 1, 2008.121.15    Sec. 150. [325E.386] PRODUCTS CONTAINING CERTAIN 121.16POLYBROMINATED DIPHENYL ETHERS BANNED; EXEMPTIONS.121.17    Subdivision 1.Penta- and octabromodiphenyl ethers.Except as provided in 121.18subdivision 3, beginning January 1, 2008, a person may not manufacture, process, or 121.19distribute in commerce a product or flame-retardant part of a product containing more 121.20than one-tenth of one percent of pentabromodiphenyl ether or octabromodiphenyl ether 121.21by mass.121.22    Subd. 2.Exemptions.The following products containing polybrominated diphenyl 121.23ethers are exempt from subdivision 1 and section 325E.387, subdivision 2:121.24    (1) the sale or distribution of any used transportation vehicle with component parts 121.25containing polybrominated diphenyl ethers;121.26    (2) the sale or distribution of any used transportation vehicle parts or new 121.27transportation vehicle parts manufactured before January 1, 2008, that contain 121.28polybrominated diphenyl ethers;121.29    (3) the manufacture, sale, repair, distribution, maintenance, refurbishment, or 121.30modification of equipment containing polybrominated diphenyl ethers and used primarily 121.31for military or federally funded space program applications. This exemption does not 121.32cover consumer-based goods with broad applicability;121.33    (4) the sale or distribution by a business, charity, public entity, or private party of 121.34any used product containing polybrominated diphenyl ethers;122.1    (5) the manufacture, sale, or distribution of new carpet cushion made from recycled 122.2foam containing more than one-tenth of one percent polybrominated diphenyl ether; 122.3    (6) medical devices; or122.4    (7) the manufacture, sale, repair, distribution, maintenance, refurbishment, or 122.5modification of telecommunications equipment containing polybrominated diphenyl 122.6ethers used by entities eligible to hold authorization in the Public Safety Pool under Code 122.7of Federal Regulations, title 47, part 90.122.8    In-state retailers in possession of products on January 1, 2008, that are banned for 122.9sale under subdivision 1 may exhaust their stock through sales to the public. Nothing in 122.10this section restricts the ability of a manufacturer, importer, or distributor  from transporting 122.11products containing polybrominated diphenyl ethers through the state,  or storing such 122.12products in the state for later distribution outside the state.122.13    Sec. 151. [325E.387] REVIEW OF DECABROMODIPHENYL ETHER.122.14    Subdivision 1.Commissioner duties.The commissioner in consultation 122.15with the commissioners of health and public safety shall review uses of commercial 122.16decabromodiphenyl ether, availability of technically feasible and safer alternatives, fire 122.17safety, and any evidence regarding the potential harm to public health and the environment 122.18posed by commercial decabromodiphenyl ether and the alternatives. The commissioner 122.19must consult with key stakeholders. The commissioner must also review the findings from 122.20similar state and federal agencies and must report their findings and recommendations to 122.21the appropriate committees of the legislature no later than January 15, 2008.122.22    Subd. 2.State procurement.By January 1, 2008, the commissioner of 122.23administration shall make available for purchase and use by all state agencies equipment, 122.24supplies, and other products that do not contain polybrominated diphenyl ethers, unless 122.25exempted under section 325E.386, subdivision 2.122.26    Sec. 152. [325E.388] PENALTIES.122.27    A manufacturer who violates sections 325E.386 to 325E.388 is subject to a 122.28civil penalty not to exceed $1,000 for each violation in the case of a first offense. A 122.29manufacturer is subject to a civil penalty not to exceed $5,000 for each repeat offense. 122.30Penalties collected under this section must be deposited in an account in the special 122.31revenue fund and are appropriated in fiscal years 2008 and 2009 to the commissioner to 122.32implement and enforce this section.122.33    Sec. 153. Minnesota Statutes 2006, section 394.23, is amended to read:123.1394.23 COMPREHENSIVE PLAN.123.2    The board has the power and authority to prepare and adopt by ordinance, a 123.3comprehensive plan. A comprehensive plan or plans when adopted by ordinance must be 123.4the basis for official controls adopted under the provisions of sections 
         394.21 to 
         394.37. 123.5The commissioner of natural resources must provide the natural heritage data from the 123.6county biological survey, if available, to each county for use in the comprehensive plan.123.7    Sec. 154. Minnesota Statutes 2006, section 462.353, subdivision 2, is amended to read:123.8    Subd. 2. Studies and reports. In exercising its powers under subdivision 1, a 123.9municipality may collect and analyze data, prepare maps, charts, tables, and other 123.10illustrations and displays, and conduct necessary studies. A municipality may publicize its 123.11purposes, suggestions, and findings on planning matters, may distribute reports thereon, 123.12and may advise the public on the planning matters within the scope of its duties and 123.13objectives. The commissioner of natural resources must provide the natural heritage 123.14data from the county biological survey, if available, to each municipality for use in the 123.15comprehensive plan.123.16    Sec. 155. Laws 2003, chapter 128, article 1, section 167, subdivision 1, as amended by 123.17Laws 2005, First Special Session chapter 1, article 2, section 152, is amended to read:123.18    Subdivision 1. Forest classification status review. (a) By December 31, 2006, the 123.19commissioner of natural resources shall complete a review of the forest classification status 123.20of all state forests classified as managed or limited, all forest lands under the authority of 123.21the commissioner as defined in Minnesota Statutes, section 
         89.001, subdivision 13, and 123.22lands managed by the commissioner under Minnesota Statutes, section 
         282.011. The 123.23review must be conducted on a forest-by-forest and area-by-area basis in accordance with 123.24the process and criteria under Minnesota Rules, part 
         6100.1950. Except as provided in 123.25paragraph (d), after each forest is reviewed, the commissioner must change itsthe status 123.26  of the lands within each forest to limited or closed, and . The commissioner may classify 123.27portions of a limited forest as closed. The commissioner must also provide a similar 123.28status for each of the other areas subject to review under this section after each individual 123.29review is completed.123.30    (b) If the commissioner determines on January 1, 2005, that the review required 123.31under this section cannot be completed by December 31, 2006, the completion date for the 123.32review shall be extended to December 31, 2008. By January 15, 2005, the commissioner 123.33shall report to the chairs of the legislative committees with jurisdiction over natural 123.34resources policy and finance regarding the status of the process required by this section.124.1    (c) Until December 31, 2010, the state forests and areas subject to review under this 124.2section are exempt from Minnesota Statutes, section 
         84.777, unless an individual forest or 124.3area has been classified as limited or closed.124.4    (d) Notwithstanding the restrictions in paragraph (a), and Minnesota Statutes, 124.5section 
         84.777, subdivision 1, all forest lands under the authority of the commissioner as 124.6defined in Minnesota Statutes, section 
         89.001, subdivision 13, and lands managed by the 124.7commissioner under Minnesota Statutes, section 
         282.011, that are north of U.S. Highway 124.82 shall maintain their present classification unless the commissioner reclassifies the lands 124.9under Minnesota Rules, part 
         6100.1950. The commissioner shall provide for seasonal 124.10trail closures when conditions warrant them. By December 31, 2008, the commissioner 124.11shall complete the review and designate trails on forest lands north of Highway 2 as 124.12provided in this section.124.13    Sec. 156. Laws 2003, chapter 128, article 1, section 169, is amended to read:124.14    Sec. 169. CONTINUOUS TRAIL DESIGNATION.124.15    (a) The commissioner of natural resources shall locate, plan, design, map, construct, 124.16designate, and sign a new trail for use by all-terrain vehicles and off-highway motorcycles 124.17of not less than 70 continuous miles in length on any land owned by the state or in 124.18cooperation with any county on land owned by that county or on a combination of any of 124.19these lands. This new trail shall be ready for use by April 1, 2007 June 30, 2009.124.20    (b) All funding for this new trail shall come from the all-terrain vehicle dedicated 124.21account and is appropriated each year as needed.124.22    (c) This new trail shall have at least two areas of access complete with appropriate 124.23parking for vehicles and trailers and enough room for loading and unloading all-terrain 124.24vehicles. Some existing trails, that are strictly all-terrain vehicle trails, and are not 124.25inventoried forest roads, may be incorporated into the design of this new all-terrain vehicle 124.26trail. This new trail may be of a continuous loop design and shall provide for spurs to other 124.27all-terrain vehicle trails as long as those spurs do not count toward the 70 continuous miles 124.28of this new all-terrain vehicle trail. Four rest areas shall be provided along the way.124.29    Sec. 157. Laws 2006, chapter 236, article 1, section 21, is amended to read:124.30    Sec. 21. EXCHANGE OF TAX-FORFEITED LAND; PRIVATE SALE; 124.31ITASCA COUNTY.124.32    (a) For the purpose of a land exchange for use in connection with a proposed 124.33steel mill in Itasca County referenced in Laws 1999, chapter 240, article 1, section 8, 124.34subdivision 3, title examination and approval of the land described in paragraph (b) 124.35shall be undertaken as a condition of exchange of the land for class B land, and shall be 125.1governed by Minnesota Statutes, section 
         94.344, subdivisions 9 and 10, and the provisions 125.2of this section. Notwithstanding the evidence of title requirements in Minnesota Statutes, 125.3section 
         94.344, subdivisions 9 and 10, the county attorney shall examine one or more title 125.4reports or title insurance commitments prepared or underwritten by a title insurer licensed 125.5to conduct title insurance business in this state, regardless of whether abstracts were 125.6created or updated in the preparation of the title reports or commitments. The opinion of 125.7the county attorney, and approval by the attorney general, shall be based on those title 125.8reports or commitments.125.9    (b) The land subject to this section is located in Itasca County and is described as:125.10    (1) Sections 3, 4, 7, 10, 14, 15, 16, 17, 18, 20, 21, 22, 23, 26, 28, and 29, Township 125.1156 North, Range 22 West;125.12    (2) Sections 3, 4, 9, 10, 13, and 14, Township 56 North, Range 23 West;125.13    (3) Section 30, Township 57 North, Range 22 West; and125.14    (4) Sections 25, 26, 34, 35, and 36, Township 57 North, Range 23 West.125.15    (c) Riparian land given in exchange by Itasca County for the purpose of the steel 125.16mill referenced in paragraph (a), is exempt from the restrictions imposed by Minnesota 125.17Statutes, section 
         94.342, subdivision 3.125.18    (d) Notwithstanding Minnesota Statutes, sections 
         92.45 and 
         282.018, subdivision 1, 125.19and the public sale provisions of Minnesota Statutes, chapter 282, Itasca County may sell, 125.20by private sale, any land received in exchange for the purpose of the steel mill referenced 125.21in paragraph (a), under the remaining provisions of Minnesota Statutes, chapter 282. The 125.22sale must be in a form approved by the attorney general.125.23    (e) Notwithstanding Minnesota Statutes, section 284.28, subdivision 8, or any other 125.24law to the contrary, land acquired through an exchange under this section is exempt from 125.25payment of three percent of the sales price required to be collected by the county auditor 125.26at the time of sale for deposit in the state treasury.125.27    Sec. 158. RELIEF PAYMENTS FOR TIMBER SALE PERMITS.125.28    (a) Notwithstanding Minnesota Statutes, section 90.161, 90.173, 90.211, or other law 125.29to the contrary, the commissioner of natural resources shall provide payment to permittees 125.30with eligible permits subject to the following limits and conditions:125.31    (1) permittees will receive a payment equal to the lesser of $2,250 or 60 percent of 125.32the 15 percent down payment required under Minnesota Statutes, section 90.14, for each 125.33eligible permit forfeited within 60 days following the effective date of this section; or125.34    (2) permittees will receive a payment equal to 60 percent of the 15 percent down 125.35payment required under Minnesota Statutes, section 90.14, for each eligible permit the 126.1permittee commits to cut and close by the earlier of June 30, 2010, or when the permit 126.2expires. This commitment must be made within 60 days following the effective date of 126.3this section. Payment must be returned to the state for each permit for which the permittee 126.4fails to fulfill the commitment under this clause.126.5    (b) Payments under paragraph (a) shall be mailed to permittees by August 31, 2007. 126.6    (c) An "eligible permit" means a state timber permit:126.7    (1) that was issued on or after June 1, 2004, but before April 1, 2006; and126.8    (2) for which there has been no harvesting, road building, or other on-the-ground 126.9actions taken.126.10    (d) Permittees in default or trespass status are not eligible for payments under this 126.11section. A permittee may forfeit any number of complete permits, not to exceed 7,500 126.12cords in total. Partial permits may not be forfeited to meet the 7,500-cord maximum.126.13    (e) The commissioner shall reoffer the forfeited sales no later than January 31, 2008.126.14EFFECTIVE DATE.This section is effective the day following final enactment.126.15    Sec. 159. FOREST PROTECTION PLAN.126.16    Subdivision 1.Task force plan.(a) The Forest Resources Council shall create a task 126.17force to develop a plan to prepare the state for early detection, appropriate response, and 126.18educating the public regarding invasive pests that threaten the tree cover of Minnesota. The 126.19task force also may give advice on how to best promote forest diversity and the planting of 126.20trees to address environmental challenges with the state. The plan must address:126.21    (1) current efforts to address forest pests, what geographic areas and property types 126.22have regular and active monitoring of forest pests, and gaps in the adequacy of the current 126.23oversight and detection system;126.24    (2) how the state may establish a flexible, yet comprehensive, system of tree 126.25monitoring so that trees in all areas of Minnesota will be covered by active early pest 126.26detection efforts. In analyzing this, the task force shall consider possible roles for certified 126.27tree inspectors, volunteers, and state and local government;126.28    (3) current storm damage response and how that might be improved for forest health 126.29and to minimize vulnerability to pest infection;126.30    (4) the adequacy of the current response plan, the clarity of state and local roles and 126.31responsibilities, emergency communication plans, and the availability of needed funding 126.32for pest outbreak response and how to scale it up should a major outbreak be detected;126.33    (5) recommendations for clear delineation of state and local roles in notifying 126.34property owners and enforcing remediation actions;127.1    (6) the best approach to broad public education on the threats of new invasive tree 127.2pests, the expected response to an outbreak, the value of trees to our environment, and the 127.3promotion of a more diversified tree cover statewide; and127.4    (7) an assessment of funding needs and options for the above activities and possible 127.5funding approaches to promote the planting of a more diverse tree cover, along with 127.6assisting in the costs of tree removal and replacement for public entities and property 127.7owners.127.8    (b) A report and recommendations to the legislative committees with jurisdiction 127.9over natural resources and to the Legislative-Citizen Commission on Minnesota Resources 127.10shall be due on December 15, 2007.127.11    Subd. 2.Task force creation.The chair of the Forest Resources Council and the 127.12commissioners of agriculture and natural resources shall jointly appoint the members 127.13of the task force, which shall include up to 15 members with representatives of the 127.14University of Minnesota; city, township, and county associations; commercial timber 127.15and forest industries of varying size; nursery and landscape architecture; arborists and 127.16certified tree inspectors; nonprofit organizations engaged in tree advocacy, planting, and 127.17education; master gardeners; and the Minnesota Shade Tree Advisory Council and a tribal 127.18representative recommended by the Indian Affairs Council.127.19    Representatives of the Departments of Agriculture and Natural Resources shall serve 127.20as ex-officio members and assist the task force in its work.127.21    Sec. 160. ENDOCRINE DISRUPTOR REPORT.127.22    (a) The commissioner of the Pollution Control Agency, in consultation with the 127.23commissioner of agriculture, the commissioner of health, the commissioner of natural 127.24resources, the University of Minnesota, and the United States Environmental Protection 127.25Agency, shall prepare a report on strategies to address endocrine disruptors in waters of 127.26the state. The report shall include:127.27    (1) a review of the current literature of known endocrine-disrupting compounds to 127.28determine which ones are most likely to be of significance to humans, fish, and wildlife 127.29in Minnesota;127.30    (2) a review of scientific studies to determine whether these compounds have the 127.31potential to account for known effects on humans, fish, and wildlife in Minnesota;127.32    (3) a review of the comparative risk posed by endocrine-disrupting compounds to 127.33the long-term viability of populations of fish and wildlife; and128.1    (4) an evaluation of the practicability and the cost of prevention and remediation 128.2strategies for any endocrine-disrupting compounds found in clauses (1) and (2), as well as 128.3other potential endocrine disruptors.128.4    (b) By January 15, 2008, the commissioner shall submit the report to the house of 128.5representatives and senate committees and divisions with jurisdiction over environment 128.6and natural resources policy and finance.128.7    Sec. 161. EASEMENT REPORT REQUIRED.128.8    By January 1, 2008, the commissioner of natural resources must report to the 128.9house and senate committees with jurisdiction over environment and natural resources 128.10finance with proposed minimum legal and conservation standards that could be applied 128.11to conservation easements acquired with public money.128.12    Sec. 162. TAX-FORFEITED LANDS LEASE; ITASCA COUNTY.128.13    Notwithstanding Minnesota Statutes, section 282.04, or other law to the contrary, 128.14the Itasca County auditor may lease tax-forfeited land to a proposed steel mill in Itasca 128.15County for a period of 20 years, for use as a tailings basin and buffer area. A lease entered 128.16under this section is renewable.128.17    Sec. 163. WILD RICE STUDY.128.18    By February 15, 2008, the commissioner of natural resources must prepare a study 128.19for natural wild rice that includes:128.20    (1) the current location and estimated acreage and area of natural stands;128.21    (2) potential threats to natural stands, including, but not limited to, development 128.22pressure, water levels, pollution, invasive species, and genetically engineered strains; and128.23    (3) recommendations to the house and senate committees with jurisdiction over 128.24natural resources on protecting and increasing natural wild rice stands in the state.128.25    In developing the study, the commissioner must contact and ask for comments 128.26from the state's wild rice industry, the commissioner of agriculture, local officials with 128.27significant areas of wild rice within their jurisdictions, tribal leaders within affected 128.28federally recognized tribes, and interested citizens.128.29EFFECTIVE DATE.This section is effective the day following final enactment.128.30    Sec. 164. CONSTRUCTION.128.31    Nothing in sections 139, 140, 141, and 162 affects, alters, or modifies the authorities, 128.32responsibilities, obligations, or powers of the state or any political subdivision thereof or 128.33any federally recognized tribe.129.1    Sec. 165. SEPTIC BEST PRACTICES ASSISTANCE.129.2    The commissioner of the Pollution Control Agency shall establish a database of 129.3best practices regarding the installation, management, and maintenance of individual 129.4sewage treatment systems. The database must be made available to any interested public 129.5or private party.129.6    Sec. 166. RULEMAKING.129.7    Within 90 days of the effective date of this section, the Board of Water and Soil 129.8Resources shall adopt rules that amend Minnesota Rules, chapter 8420, to incorporate 129.9statute changes and to address the related wetland exemption provisions in Minnesota 129.10Rules, parts 8420.0115 to 8420.0210, and the wetland replacement and banking provisions 129.11in Minnesota Rules, parts 8420.0500 to 8420.0760. These rules are exempt from the 129.12rulemaking provisions of Minnesota Statutes, chapter 14, except that Minnesota Statutes, 129.13section 14.386, applies and the proposed rules must be submitted to the senate and house 129.14committees having jurisdiction over environment and natural resources at least 30 days 129.15prior to being published in the State Register. The amended rules are effective for two 129.16years from the date of publication in the State Register unless they are superseded by 129.17permanent rules.129.18EFFECTIVE DATE.This section is effective the day following final enactment.129.19    Sec. 167. GREENLEAF LAKE STATE RECREATION AREA.129.20    Subdivision 1. [85.013] [Subd. 11b.] Greenleaf Lake State Recreation Area.129.21    In addition to the lands designated under Laws 2003, First Special Session chapter 13, 129.22section 6, as amended by Laws 2004, chapter 262, article 2, section 10, the following lands 129.23are added to the Greenleaf Lake State Recreation Area:129.24(1) the West 1104.98 feet of Government Lot 4, Section 21, Township 118 North, Range 129.2530 West, Meeker County, Minnesota; and129.26(2) that part of Government Lot 7 of Section 20, Township 118, Range 30, which lies 129.27south of the following described line and its extensions: said line commencing at the 129.28southwest corner of said Section 20; thence on an assumed bearing of North 08 degrees 129.2922 minutes 44 seconds West, along the west line of said section, a distance of 1350.00 129.30feet to the point of beginning of the line to be described; thence North 88 degrees 28 129.31minutes 35 seconds East, a distance of 699 feet to the shoreline of Greenleaf Lake and 129.32said line terminating thereat; and Government Lot 8 of said section except the following 129.33described tract: said tract being that part of said Government Lot 8 lying east of the 129.34following described line: said line commencing at the southwest corner of said section; 130.1thence easterly, along the south line of said section, a distance of 734.60 feet to the point 130.2of beginning of the line to be described; thence north at a right angle, a distance of 100 130.3feet and said line terminating thereat.130.4    Subd. 2.Management.The commissioner of natural resources, in consultation with 130.5local elected officials and citizens of Meeker County and other interested stakeholders, 130.6shall develop a comprehensive management plan that provides for opportunities for 130.7outdoor recreation, as defined under Minnesota Statutes, section 86A.03, subdivision 3, in 130.8Greenleaf Lake State Recreation Area. The completed management plan shall serve as the 130.9master plan for purposes of Minnesota Statutes, section 86A.09.130.10    Sec. 168. VERMILLION HIGHLANDS WILDLIFE MANAGEMENT AREA.130.11    (a) The following area is established and designated as the Vermillion Highlands 130.12Wildlife Management Area, subject to the special permitted uses authorized in this section:130.13    The approximately 2,840 acres owned by the University of Minnesota lying within 130.14the area legally described as approximately the southerly 3/4 of the Southwest 1/4 of 130.15Section 1, the Southeast 1/4 of Section 2, the East 1/2 of Section 10, Section 11, the 130.16West 1/2 of Section 12, Section 13, and Section 14, all in Township 114 North, Range 130.1719 West, Dakota County.130.18    (b) Notwithstanding Minnesota Statutes, section 86A.05, subdivision 8, paragraph 130.19(c), permitted uses in the Vermillion Highlands Wildlife Management Area include:130.20    (1) education, outreach, and agriculture with the intent to eventually phase out 130.21agriculture leases and plant and restore native prairie;130.22    (2) research by the University of Minnesota or other permitted researchers;130.23    (3) hiking, hunting, fishing, trapping, and other compatible wildlife-related 130.24recreation of a natural outdoors experience, without constructing new hard surface trails 130.25or roads, and supporting management and improvements;130.26    (4) designated trails for hiking, horseback riding, biking, and cross-country skiing 130.27and necessary trailhead support with minimal impact on the permitted uses in clause (3);130.28    (5) shooting sports facilities for sporting clays, skeet,  trapshooting, and rifle and 130.29pistol shooting, including sanctioned events and training for responsible handling and 130.30use of firearms;130.31    (6) grant-in-aid snowmobile trails; and130.32    (7) leases for small-scale farms to market vegetable farming.130.33    (c) With the concurrence of representatives of the University of Minnesota and 130.34Dakota County, the commissioner of natural resources may, by posting or rule, restrict the 130.35permitted uses as follows:131.1    (1) temporarily close areas or trails, by posting at the access points, to facilitate 131.2hunting. When temporarily closing trails under this clause, the commissioner shall avoid 131.3closing all trail loops simultaneously whenever practical; or131.4    (2) limit other permitted uses to accommodate hunting and trapping after providing 131.5advance public notice. Research conducted by the university may not be limited unless 131.6mutually agreed by the commissioner and the University of Minnesota.131.7    (d) Road maintenance within the wildlife management area shall be minimized, with 131.8the intent to abandon interior roads when no longer needed for traditional agriculture 131.9purposes.131.10    (e) Money collected on leases from lands within the wildlife management area 131.11must be kept in a separate account and spent within the wildlife management area under 131.12direction of the representatives listed in paragraph (c). $200,000 of this money may be 131.13transferred to the commissioner of natural resources for a master planning process and 131.14resource inventory of the land identified in Minnesota Statutes, section 137.50, subdivision 131.156, in order to provide needed prairie and wetland restoration. The commissioner must work 131.16with affected officials from the University of Minnesota and Dakota County to complete 131.17these requirements and inform landowners and lessees about the planning process.131.18    (f) Notwithstanding Minnesota Statutes, sections 97A.061 and 477A.11, the state 131.19of Minnesota shall not provide payments in lieu of taxes for the lands described in 131.20paragraph (a).131.21    Sec. 169. INFORMATION SHARING.131.22    On or before August 1, 2007, the commissioner of health, the Pollution Control 131.23Agency, and the University of Minnesota are requested to jointly develop and sign 131.24a memorandum of understanding declaring their intent to share new and existing 131.25environmental hazard, exposure, and health outcome data, within applicable data privacy 131.26laws, and to cooperate and communicate effectively to ensure sufficient clarity and 131.27understanding of the data by divisions and offices within both departments. The signed 131.28memorandum of understanding shall be reported to the chairs and ranking members of 131.29the senate and house of representatives committees having jurisdiction over judiciary, 131.30environment, and health and human services.131.31    Sec. 170.  REPEALER.131.32(a) Minnesota Statutes 2006, sections 18G.16; and 89.51, subdivision 8, are repealed.131.33(b) Minnesota Statutes 2006, section 103G.2241, subdivision 8, is repealed the 131.34day following final enactment.131.35(c) Minnesota Statutes 2006, section 85.012, subdivision 24b, is repealed.132.1ARTICLE 2132.2ENERGY

132.3Section 1.  SUMMARY OF APPROPRIATIONS.

132.4    The amounts shown in this section summarize direct appropriations, by fund, made 132.5in this article.

132.620082009Total132.7General$37,870,000$29,459,000$67,329,000132.8Petroleum Tank Cleanup1,084,0001,084,0002,168,000132.9Workers' Compensation835,000835,0001,670,000132.10Special Revenue7,725,0007,725,00015,450,000132.11Total$47,514,000$39,103,000$86,617,000

132.12Sec. 2. ENERGY FINANCE APPROPRIATIONS.

132.13    The sums shown in the columns marked "Appropriations" are appropriated to the 132.14agencies and for the purposes specified in this article. The appropriations are from the 132.15general fund, or another named fund, and are available for the fiscal years indicated 132.16for each purpose. The figures "2008" and "2009" used in this article mean that the 132.17appropriations listed under them are available for the fiscal year ending June 30, 2008, or 132.18June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 132.19year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 132.20year ending June 30, 2007, are effective the day following final enactment.

132.21APPROPRIATIONS132.22Available for the Year132.23Ending June 30132.2420082009

132.25Sec. 3. DEPARTMENT OF COMMERCE.

132.26Subdivision 1.Total Appropriation$42,167,000$33,670,000

132.27Appropriations by Fund132.2820082009132.29General32,523,00024,026,000132.30Petroleum Cleanup1,084,0001,084,000132.31132.32Workers' Compensation835,000835,000132.33Special Revenue7,725,0007,725,000

132.34The amounts that may be spent for each 132.35purpose are specified in the following 132.36subdivisions.

132.37Subd. 2.Financial Examinations6,489,0006,637,000

132.38132.39Subd. 3.Petroleum Tank Release Cleanup Board1,084,0001,084,000

133.1This appropriation is from the petroleum 133.2tank release cleanup fund. 

133.3Subd. 4.Administrative Services4,508,0004,604,000

133.4Subd. 5.Market Assurance6,950,0007,097,000

133.5Appropriations by Fund133.6General6,115,0006,262,000133.7133.8Workers' Compensation835,000835,000

133.9Subd. 6.Energy and Telecommunications$23,036,000$14,148,000

133.10Appropriations by Fund133.11General15,411,0006,523,000133.12Special Revenue7,625,0007,625,000

133.13The utility subject to Minnesota Statutes, 133.14section 116C.779, shall transfer $7,625,000 133.15in fiscal year 2008 and $7,625,000 in fiscal 133.16year 2009 to the Department of Commerce 133.17on a schedule to be determined by the 133.18commissioner of commerce. The funds must 133.19be deposited in the special revenue fund 133.20and are appropriated to the commissioner 133.21for grants to promote renewable energy 133.22projects and community energy outreach and 133.23assistance. Of the amounts identified:133.24(1) $500,000 each year for capital grants for 133.25on-farm biogas recovery facilities; eligible 133.26projects will be selected in coordination 133.27with the Department of Agriculture and the 133.28Pollution Control Agency;133.29(2) $500,000 each year to provide financial 133.30rebates to new solar electricity projects;133.31(3) $625,000 each year for continued funding 133.32of community energy technical assistance 133.33and outreach on renewable energy and 133.34energy efficiency, as described in section 25. 133.35Of this amount, $125,000 is for technical 133.36assistance in the metropolitan area;134.1(4) $1,000,000 each year is for technical 134.2analysis and demonstration funding for 134.3automotive technology projects, with a 134.4special focus on plug-in hybrid electric 134.5vehicles and to study environmental-friendly 134.6manufacturing and assembly processes to 134.7identify ones that could employ workers 134.8formerly employed at the St. Paul Ford 134.9manufacturing plant and other large 134.10manufacturing facilities in Minnesota;134.11(5) $750,000 in the first year is for the 134.12purpose of preparing the hydrogen road map 134.13and making grants under Minnesota Statutes, 134.14section 216B.813;134.15(6) $2,000,000 in the first year is for deposit 134.16with the rural wind energy development 134.17revolving loan fund under Minnesota 134.18Statutes, section 216C.39;134.19(7) $2,250,000 the first year and $2,000,000 134.20the second year are to provide competitive, 134.21cost-share grants to fund renewable energy 134.22research in Minnesota. These grants must be 134.23awarded by a three-member panel made up 134.24of the commissioners of commerce, pollution 134.25control, and agriculture, or their designees. 134.26Grant applications must be ranked and grants 134.27issued according to how well the applications 134.28meet state energy policy research goals 134.29established by the commissioners, the quality 134.30and experience of the research teams, the 134.31cross-interdisciplinary and cross-institutional 134.32nature of the research teams, and the ability 134.33of the research team to leverage nonstate 134.34funds; and134.35(8) $3,000,000 the second year is for a grant 134.36to the Board of Regents of the University of 135.1Minnesota for the Initiative for Renewable 135.2Energy and the Environment. The grant 135.3is for the purposes set forth in Minnesota 135.4Statutes, section 216B.241, subdivision 6. 135.5The appropriation is available until spent. 135.6The budget for this grant to the Board of 135.7Regents of the University of Minnesota for 135.8the Initiative for Renewable Energy and the 135.9Environment is $5,000,000 each year in the 135.102010-2011 fiscal biennium.135.11As a condition of this grant, beginning in 135.12the 2010-2011 biennium, the Initiative for 135.13Renewable Energy and the Environment 135.14must set aside at least 15 percent of the 135.15funds received annually under the grant for 135.16qualified projects conducted at a rural campus 135.17or experiment station. Any amount of the 135.18set aside funds that has not been awarded to 135.19a rural campus or experiment station at the 135.20end of the fiscal year must revert back to the 135.21initiative for its exclusive use.135.22$1,500,000 the first year and $1,500,000 the 135.23second year are for E85 cost-share grants. 135.24The commissioner may reimburse owners 135.25of gasoline service stations for up to 75 135.26percent of the total cost of installing an E85 135.27pump, including the tank and any related 135.28components, up to a maximum of $15,000 135.29per E85 pump. Notwithstanding Minnesota 135.30Statutes, section 16A.28, this appropriation is 135.31available until expended. Up to ten percent of 135.32the funds may be used for cost-share grants to 135.33convert or install underground tanks at retail 135.34gasoline service stations storing biodiesel 135.35fuel that is at least 99.9 percent biodiesel 135.36fuel by volume for on-site blending and for 136.1dispensing systems at retail gasoline service 136.2stations that dispense biodiesel fuel blends of 136.3at least ten percent biodiesel fuel by volume. 136.4In awarding grants, the commissioner of 136.5commerce must consult with the Minnesota 136.6Soybean Growers Association and may 136.7consult with other organizations deemed 136.8appropriate. This is a onetime appropriation.136.9$4,500,000 the first year is for a onetime 136.10grant to the St. Paul Port Authority in part 136.11for a study related to a steam and electrical 136.12energy facility to supply energy to a customer 136.13using steam in a paper recycling operation.136.14The port authority shall convene and 136.15regularly involve a citizen advisory 136.16committee composed of members 136.17recommended by St. Paul district councils 136.1811, 12, 13, and 14 and other members as 136.19appropriate to advise on the scope of the 136.20study. The citizen advisory committee 136.21must meet regularly throughout the course 136.22of the study and the development of 136.23recommendations. The citizen advisory 136.24committee shall have the right to include 136.25its separate recommendations as part of the 136.26port authority recommendations submitted at 136.27the public meeting and to the St. Paul City 136.28Council.136.29The study shall:136.30(1) assess the economic and technical 136.31feasibility of various fuel types to power the 136.32plant;136.33(2) provide a full description and analysis of 136.34each fuel type and their respective economic 136.35and noneconomic impacts;137.1(3) provide a full description and analysis 137.2of each fuel type and their respective 137.3environmental emissions, including carbon 137.4dioxide, and the cost of controlling those 137.5emissions that affect human health;137.6(4) describe public subsidies related to the 137.7production and use of each fuel type;137.8(5) describe potential energy efficiency 137.9improvement that can be made to the paper 137.10recycling operation and subsidies available 137.11for each improvement; and137.12(6) evaluate additional uses for the steam and 137.13electricity produced at the facility and the 137.14cost of infrastructure needed to implement 137.15the additional uses.137.16In addition, the grant may be used 137.17for environmental review, permitting, 137.18preliminary engineering, and development of 137.19total project cost estimates, including project 137.20design and engineering, other preliminary 137.21work, and a preliminary financing plan for 137.22the steam and electricity producing facility. 137.23The St. Paul Port Authority shall present 137.24the findings of its analysis and its preferred 137.25alternative for an eligible energy technology 137.26fuel mix in at least two public meetings 137.27that must be held in the area encompassing 137.28districts 11, 12, 13, and 14 in the city of 137.29St. Paul. "Eligible energy technology" has 137.30the meaning given in Minnesota Statutes, 137.31section 216B.1691, subdivision 1, except 137.32that it does not include mixed municipal 137.33solid waste as an eligible energy technology. 137.34The recommendation of the St. Paul Port 137.35Authority concerning its preferred alternative 137.36fuel mix must be based on the alternative 138.1that has the least environmental impact 138.2consistent with the economic viability 138.3and technical feasibility of the facility. 138.4Testimony shall be taken at the meetings 138.5from citizens who live in the affected 138.6communities. Resolutions concerning the 138.7facility from district councils 11, 12, 13, 138.8and 14 must be solicited by the city council. 138.9Construction of the facility may not be 138.10commenced unless and until the St. Paul City 138.11Council has adopted a resolution approving 138.12the construction after consideration of the 138.13findings of the port authority, resolutions 138.14from the district councils, and other public 138.15input. The appropriation does not cancel and 138.16is available until expended. Of this amount, 138.17$500,000 is transferred to the Department 138.18of Natural Resources for the Ecological 138.19Services Division to prepare, authorize, and 138.20implement habitat restoration plans on public 138.21or private properties to fulfill ecological 138.22principles of restoration ecology, while 138.23providing roadside access to the byproduct 138.24of the management actions at no cost to the 138.25operator of a biomass-fueled cogeneration 138.26facility located in St. Paul. The division 138.27may provide grants or otherwise transfer 138.28some or all of these funds to other public or 138.29private entities to accomplish these purposes. 138.30If a higher value nonbiomass market is 138.31available for some of the byproduct of this 138.32management, the division is authorized to 138.33sell the material to that market, provided 138.34that all of the proceeds are spent for the 138.35further purposes of this appropriation. 138.36The nonbiomass market sales of material 139.1from this management cannot exceed 20 139.2percent by weight of the total byproducts 139.3produced by all approved activities under 139.4this appropriation. The restoration activities 139.5shall take place on land located within 75 139.6miles by road of the city of St. Paul. The 139.7division shall consult with the operator of the 139.8biomass facility and other appropriate parties 139.9regarding planned projects to be funded with 139.10this appropriation. The division shall report 139.11annually to the legislative policy and finance 139.12committees for natural resources and energy 139.13regarding the expenditures and results of the 139.14program. This appropriation does not cancel 139.15but is available until spent.139.16$150,000 the first year is appropriated to the 139.17commissioner of commerce for grants for 139.18demonstration projects of electric vehicles 139.19with advanced transmission technologies 139.20incorporating, if feasible, batteries, 139.21converters, and other components developed 139.22in Minnesota. Funds may be expended 139.23under the grants only if grantees enter into 139.24agreements specifying that commercial 139.25production of these vehicles and components 139.26will, to the extent possible, take place in 139.27Minnesota.139.28(a) $1,000,000 each year is to the Center for 139.29Rural Policy and Development at Minnesota 139.30State University at Mankato to make a grant 139.31to a nonprofit organization with experience 139.32dealing with energy and community wind 139.33issues to design and implement a rural wind 139.34energy development assistance program. 139.35This is a onetime only appropriation. The 139.36program must be designed to maximize rural 140.1economic development and stabilize rural 140.2community institutions, including hospitals 140.3and schools, by increasing the income of 140.4local residents and increasing local tax 140.5revenues. The grant may be disbursed in 140.6two installments. The program must provide 140.7assistance to rural entities seeking to develop 140.8wind energy electric generation projects 140.9and to sell the energy from the projects. 140.10Among other strategies, the program may 140.11consider combining rural entities and others 140.12into groups with the size and market power 140.13necessary for planning and developing 140.14significant rural wind energy projects.140.15(b) The program must provide assistance by, 140.16among other things:140.17(1) providing legal, engineering, and 140.18financial services;140.19(2) identifying target communities with 140.20favorable wind resources, community 140.21interest, and local political support;140.22(3) providing assistance to reserve, obtain, 140.23and assure the maintenance over time of 140.24wind turbines;140.25(4) creating market opportunities for utilities 140.26to meet their renewable energy obligations 140.27through purchases of rural community wind;140.28(5) assisting in the negotiation of fair power 140.29purchase agreements;140.30(6) facilitating transmission interconnection 140.31and delivery of energy from rural and 140.32community wind projects; and 140.33(7) lowering the market risk facing potential 140.34wind investors by supporting local wind 140.35development from start to finish.141.1The grantee must demonstrate an ability 141.2to sustain program functions with ongoing 141.3revenue from sources other than state funding 141.4and shall provide a 35 percent grant match 141.5in the first year. The grant must be awarded 141.6on a competitive basis. The center must use 141.7best practices regarding grant management 141.8functions, including selection and monitoring 141.9of the grantee, compliance review, and 141.10financial oversight. Grant management fees 141.11are limited to 2.5 percent of the grant.141.12(c) The commissioner of commerce shall 141.13monitor the activities of the rural wind 141.14energy development assistance program 141.15created under paragraphs (a) to (c). By 141.16November 1, 2008, the commissioner shall 141.17submit an evaluation of the program to 141.18the chairs of the house of representatives 141.19and senate committees with jurisdiction 141.20over energy policy and finance, including 141.21recommendations for legislative or 141.22administrative action to better achieve the 141.23program goals described in paragraph (a).141.24$1,000,000 in fiscal year 2008 is for 141.25distribution to eligible households for home 141.26heating assistance during the 2007 calendar 141.27year. The commissioner must distribute 141.28funds to eligible households according to 141.29the formula developed for the distribution 141.30of the federal Low-Income Home Energy 141.31Assistance Program for fiscal year 2008. 141.32This appropriation is available until spent.141.33$3,250,000 the first year is for the renewable 141.34hydrogen initiative in Minnesota Statutes, 141.35section 216B.813, to fund the competitive 141.36grant program included in that section. The 142.1commissioner may use up to two percent of 142.2the competitive grant program appropriation 142.3for grant administration and to develop and 142.4implement the renewable hydrogen road 142.5map. This is a onetime appropriation and is 142.6available until expended.142.7$50,000 the first year is a onetime 142.8appropriation for a comprehensive technical, 142.9economic, and environmental analysis of the 142.10benefits to be derived from greater use in this 142.11state of geothermal heat pump systems for 142.12heating and cooling air and heating water. 142.13The analysis must:142.14(1) estimate the extent of geothermal heat 142.15pump systems currently installed in this state 142.16in residential, commercial, and institutional 142.17buildings;142.18(2) estimate energy and economic savings of 142.19geothermal heat pump systems in comparison 142.20with fossil fuel-based heating and cooling 142.21systems, including electricity use, on a 142.22capital cost and life-cycle cost basis, for both 142.23newly constructed and retrofitted residential, 142.24commercial, and institutional buildings;142.25(3) compare the emission of pollutants and 142.26greenhouse gases from geothermal heat 142.27pump systems and fossil fuel-based heating 142.28and cooling systems;142.29(4) identify financial assistance available 142.30from state and federal sources and Minnesota 142.31utilities to defray the costs of installing 142.32geothermal heat pump systems;142.33(5) identify Minnesota firms currently 142.34manufacturing or installing the physical 142.35components of geothermal heat pump 142.36systems and estimate the economic 143.1development potential in this state if demand 143.2for such systems increases significantly;143.3(6) identify the barriers to more widespread 143.4adoption of geothermal heat pump systems in 143.5this state and suggest strategies to overcome 143.6those barriers; and143.7(7) make recommendations for legislative 143.8action.143.9Not later than March 15, 2008, the 143.10commissioner shall submit the results of the 143.11analysis in a report to the chairs of the senate 143.12and house of representatives committees 143.13with primary jurisdiction over energy policy.143.14$45,000 the first year is a onetime 143.15appropriation for a grant to Linden Hills 143.16Power and Light for preliminary engineering 143.17design work and other technical and legal 143.18services required for a community digester 143.19and neighborhood district heating and 143.20cooling system demonstration project in the 143.21Linden Hills neighborhood of Minneapolis. 143.22Funds may be expended upon a determination 143.23by the commissioner of commerce that the 143.24project is technically and economically 143.25feasible. A portion of the appropriation 143.26may be used to expand the scope of the 143.27project feasibility study to include portions 143.28of adjacent communities including St. Louis 143.29Park and Edina.

143.30143.31Subd. 7.Telecommunications Access Minnesota100,000100,000

143.32$100,000 the first year and $100,000 143.33the second year are for transfer to the 143.34commissioner of human services to 143.35supplement the ongoing operational expenses 143.36of the Minnesota Commission Serving 144.1Deaf and Hard-of-Hearing People. This 144.2appropriation is from the telecommunication 144.3access Minnesota fund, and is added to the 144.4commission's base.

144.5Sec. 4. PUBLIC UTILITIES COMMISSION$5,347,000$5,433,000

144.6Sec. 5. NEXTGEN ENERGY BOARD

144.7By October 1 of 2007 and 2008, an entity 144.8receiving renewable development funds to 144.9conduct energy research under this article 144.10must present a research plan outlining the 144.11activities to be conducted with those funds, 144.12and any results from research completed with 144.13those funds during the previous year, to the 144.14NextGen Energy Board established under 144.15Minnesota Statutes, section 41A.05, for its 144.16review and comment.144.17    Sec. 6. [16C.141] EMPLOYEE SUGGESTIONS; ENERGY SAVINGS 144.18INCENTIVE PROGRAM.144.19    Subdivision 1.Creation of program.The commissioner of administration must 144.20implement a program using best practices and develop policies under which state 144.21employees may receive cash awards for making suggestions that result in documented 144.22cost savings to state agencies from reduced energy usage in state-owned buildings. The 144.23program must be structured to provide state employees an opportunity to receive a cash 144.24award for suggestions that are implemented and result in documented cost savings to state 144.25agencies from reduced energy use in state-owned buildings. The program must also 144.26include methods to document submissions of suggestions and energy and cost savings 144.27resulting from the implementation of employee suggestions.144.28    Subd. 2.Funding.To the extent necessary to fund the program under this section, 144.29the commissioner of administration, with approval of the commissioner of finance, may 144.30transfer a portion of the documented cost savings resulting from a suggestion under this 144.31section from the general services revolving fund to an energy savings reward account. 144.32Money in the energy savings reward account is appropriated to the commissioner for 144.33purposes of making cash rewards and paying the commissioner's incentive program 144.34developments costs and administrative expenses under this section.145.1    Subd. 3.Report to legislature.The commissioner of administration shall report to 145.2the chairs of the senate and house of representatives committees with jurisdiction over 145.3energy policy by January 1, 2008, on the development of the incentive program, and 145.4by January 15 each year thereafter on the implementation of this section, including the 145.5ideas submitted and energy savings realized.145.6    Subd. 4.Minnesota State Colleges and Universities.This section does not apply to 145.7the Minnesota State Colleges and Universities, except to the extent the Board of Trustees 145.8of the Minnesota State Colleges and Universities provides that the section does apply.145.9    Subd. 5.Repeal.This section is repealed July 1, 2009.145.10    Sec. 7. Minnesota Statutes 2006, section 116C.775, is amended to read:145.11116C.775 SHIPMENT PRIORITIES; PRAIRIE ISLAND NUCLEAR PLANTS.145.12    If a storage or disposal site becomes available outside of the state to accept 145.13high-level nuclear waste stored at Prairie Island or Monticello, the waste contained in dry 145.14casks shall be shipped to that site before the shipment of any waste from the spent nuclear 145.15fuel storage pool. Once waste is shipped that was contained in a cask, the cask must be 145.16decommissioned and not used for further storage.145.17    Sec. 8. Minnesota Statutes 2006, section 116C.777, is amended to read:145.18116C.777 SITE.145.19    The spent fuel contents of dry casks located on Prairie Island must be moved 145.20immediately upon the availability of another site for storage of the spent fuel that is not 145.21located on Prairie Island or at Monticello.145.22    Sec. 9. Minnesota Statutes 2006, section 116C.779, subdivision 1, is amended to read:145.23    Subdivision 1. Renewable development account. (a) The public utility that owns 145.24the Prairie Island nuclear generating plant must transfer to a renewable development 145.25account $16,000,000 annually each year the plant is in operation, and $7,500,000 each 145.26year the plant is not in operation if ordered by the commission pursuant to paragraph 145.27(c) (d). The fund transfer must be made if nuclear waste is stored in a dry cask at the 145.28independent spent-fuel storage facility at Prairie Island for any part of a year. Funds 145.29in the account may be expended only for development of renewable energy sources. 145.30Preference must be given to development of renewable energy source projects located 145.31within the state. The utility that owns a nuclear generating plant is eligible to apply for 145.32renewable development fund grants. The utility's proposals must be evaluated by the 146.1renewable development fund board in a manner consistent with that used to evaluate other 146.2renewable development fund project proposals.146.3    (b) The public utility that owns the Monticello nuclear generating plant must transfer 146.4to the renewable development account $350,000 each year for each dry cask containing 146.5spent fuel that is located at the Monticello nuclear power plant for each year the plant is 146.6in operation, and $5,250,000 each year the plant is not in operation if ordered by the 146.7commission pursuant to paragraph (d). The fund transfer must be made if nuclear waste 146.8is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 146.9any part of a year.146.10    (b)(c) Expenditures from the account may only be made after approval by order of 146.11the Public Utilities Commission upon a petition by the public utility.146.12    (c)(d) After discontinuation of operation of the Prairie Island nuclear plant or the 146.13Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 146.14Prairie Islanddiscontinued facility, the commission shall require the public utility to pay 146.15$7,500,000 for the discontinued Prairie Island facility and $5,250,000 for the discontinued 146.16Monticello facility for any year in which the commission finds, by the preponderance of 146.17the evidence, that the public utility did not make a good faith effort to remove the spent 146.18nuclear fuel stored at Prairie Islandthe facility to a permanent or interim storage site out 146.19of the state. This determination shall be made at least every two years.146.20    Sec. 10. [173.0851] STATE ENERGY CITY.146.21    The city of Elk River is designated as a state energy city.146.22    Sec. 11. [216B.091] MONTHLY REPORTS.146.23    (a) Each public utility must report the following data on residential customers to the 146.24commission monthly, in a format determined by the commission:146.25    (1) number of customers;146.26    (2) number and total amount of accounts past due;146.27    (3) average customer past due amount;146.28    (4) total revenue received from the low-income home energy assistance program and 146.29other sources contributing to the bills of low-income persons;146.30    (5) average monthly bill;146.31    (6) total sales revenue;146.32    (7) total write-offs due to uncollectible bills;146.33    (8) number of disconnection notices mailed;146.34    (9) number of accounts disconnected for nonpayment;146.35    (10) number of accounts reconnected to service; and147.1    (11) number of accounts that remain disconnected, grouped by the duration of 147.2disconnection, as follows:  147.3    (i) 1-30 days; 147.4    (ii) 31-60 days; and147.5    (iii) more than 60 days.147.6    (b) Monthly reports for October through April must also include the following data:147.7    (1) number of cold weather protection requests;147.8    (2) number of payment arrangement requests received and granted;147.9    (3) number of right to appeal notices mailed to customers;147.10    (4) number of reconnect request appeals withdrawn;147.11    (5) number of occupied heat-affected accounts disconnected for 24 hours or more 147.12for electric and natural gas service separately;147.13    (6) number of occupied non-heat-affected accounts disconnected for 24 hours or 147.14more for electric and gas service separately;147.15    (7) number of customers granted cold weather rule protection;147.16    (8) number of customers disconnected who did not request cold weather rule 147.17protection; and147.18    (9) number of customers disconnected who requested cold weather rule protection.147.19    (c) The data reported under paragraphs (a) and (b) is presumed to be accurate upon 147.20submission and must be made available through the commission's electronic filing system.147.21    Sec. 12. [216B.0951] PROPANE PREPURCHASE PROGRAM.147.22    Subdivision 1.Establishment.The commissioner of commerce shall operate, or 147.23contract to operate, a propane fuel prepurchase fuel program. The commissioner may 147.24contract at any time of the year to purchase the lesser of one-third of the liquid propane 147.25fuel consumed by low-income home energy assistance program recipients during the 147.26previous heating season or the amount that can be purchased with available funds. The 147.27propane fuel prepurchase program must be available statewide through each local agency 147.28that administers the energy assistance program. The commissioner may decide to limit or 147.29not engage in prepurchasing if the commissioner finds that there is a reasonable likelihood 147.30that prepurchasing will not provide fuel-cost savings.147.31    Subd. 2.Hedge account.The commissioner may establish a hedge account with 147.32realized program savings due to prepurchasing. The account must be used to compensate 147.33program recipients an amount up to the difference in cost for fuel provided to the recipient 147.34if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No 148.1more than ten percent of the aggregate prepurchase program savings may be used to 148.2establish the hedge account.148.3    Subd. 3.Report.The Department of Commerce shall issue a report by June 30, 148.42008, made available electronically on its Web site and in print upon request, that contains 148.5the following information:148.6    (1) the cost per gallon of prepurchased fuel;148.7    (2) the total gallons of fuel prepurchased;148.8    (3) the average cost of propane each month between October and the following April;148.9    (4) the number of energy assistance program households receiving prepurchased 148.10fuel; and148.11    (5) the average savings accruing or benefit increase provided to energy assistance 148.12households.148.13    Sec. 13. [216B.096] COLD WEATHER RULE; PUBLIC UTILITIES.148.14    Subdivision 1.Scope. This section applies only to residential customers of a utility.148.15    Subd. 2.Definitions.(a) The terms used in this section have the meanings given 148.16them in this subdivision.148.17    (b) "Cold weather period" means the period from October 15 through April 15 of 148.18the following year.148.19    (c) "Customer" means a residential customer of a utility.148.20    (d) "Disconnection" means the involuntary loss of utility heating service as a result 148.21of a physical act by a utility to discontinue service. Disconnection includes installation of 148.22a service or load limiter or any device that limits or interrupts utility service in any way.148.23    (e) "Household income" means the combined income, as defined in section 290A.03, 148.24subdivision 3, of all residents of the customer's household, computed on an annual basis. 148.25Household income does not include any amount received for energy assistance.148.26    (f) "Reasonably timely payment" means payment within five working days of 148.27agreed-upon due dates.148.28    (g) "Reconnection" means the restoration of utility heating service after it has been 148.29disconnected.148.30    (h) "Summary of rights and responsibilities" means a commission-approved notice 148.31that contains, at a minimum, the following:148.32    (1) an explanation of the provisions of subdivision 5;148.33    (2) an explanation of no-cost and low-cost methods to reduce the consumption 148.34of energy;148.35    (3) a third-party notice;149.1    (4) ways to avoid disconnection;149.2    (5) information regarding payment agreements;149.3    (6) an explanation of the customer's right to appeal a determination of income by the 149.4utility and the right to appeal if the utility and the customer cannot arrive at a mutually 149.5acceptable payment agreement; and149.6    (7) a list of names and telephone numbers for county and local energy assistance and 149.7weatherization providers in each county served by the utility.149.8    (i) "Third-party notice"  means a commission-approved notice containing, at a 149.9minimum, the following information:149.10    (1) a statement that the utility will send a copy of any future notice of proposed 149.11disconnection of utility heating service to a third party designated by the residential 149.12customer;149.13    (2) instructions on how to request this service; and149.14    (3) a statement that the residential customer should contact the person the customer 149.15intends to designate as the third-party contact before providing the utility with the party's 149.16name.149.17    (j) "Utility" means a public utility as defined in section 216B.02, and a cooperative 149.18electric association electing to be a public utility under section 216B.026. Utility also 149.19means a municipally owned gas or electric utility for nonresident consumers of the 149.20municipally owned utility and a cooperative electric association when a complaint in 149.21connection with utility heating service during the cold weather period is filed under 149.22section 216B.17, subdivision 6 or 6a.149.23    (k) "Utility heating service" means natural gas or electricity used as a  primary 149.24heating source, including electricity service necessary to operate gas heating equipment, 149.25for the customer's primary residence.149.26    (l) "Working days" means Mondays through Fridays, excluding legal holidays. The 149.27day of receipt of a personally served notice and the day of mailing of a notice shall not 149.28be counted in calculating working days.149.29    Subd. 3.Utility obligations before cold weather period.Each year, between 149.30September 1 and October 15, each utility must provide all customers, personally or by first 149.31class mail, a summary of rights and responsibilities. The summary must also be provided 149.32to all new residential customers when service is initiated.149.33    Subd. 4.Notice before disconnection during cold weather period.Before 149.34disconnecting utility heating service during the cold weather period, a utility must 149.35provide, personally or by first class mail, a commission-approved notice to a customer, 150.1in easy-to-understand language, that contains, at a minimum, the date of the scheduled 150.2disconnection, the amount due, and a summary of rights and responsibilities.150.3    Subd. 5.Cold weather rule.(a) During the cold weather period, a utility may not 150.4disconnect and must reconnect utility heating service of a customer whose household 150.5income is at or below 50 percent of the state median income if the customer enters into 150.6and makes reasonably timely payments under a mutually acceptable payment agreement 150.7with the utility that is based on the financial resources and circumstances of the household; 150.8provided that, a utility may not require a customer to pay more than ten percent of the 150.9household income toward current and past utility bills for utility heating service. 150.10    (b) A utility may accept more than ten percent of the household income as the 150.11payment arrangement amount if agreed to by the customer.150.12    (c) The customer or a designated third party may request a modification of the terms 150.13of a payment agreement previously entered into if the customer's financial circumstances 150.14have changed or the customer is unable to make reasonably timely payments.150.15    (d) The payment agreement terminates at the expiration of the cold weather period 150.16unless a longer period is mutually agreed to by the customer and the utility.150.17    Subd. 6.Verification of income.(a) In verifying a customer's household income, 150.18a utility may:150.19    (1) accept the signed statement of a customer that the customer is income eligible;150.20    (2) obtain income verification from a local energy assistance provider or a 150.21government agency;150.22    (3) consider one or more of the following:150.23    (i) the most recent income tax return filed by members of the customer's household;150.24    (ii) for each employed member of the customer's household, paycheck stubs for the 150.25last two months or a written statement from the employer reporting wages earned during 150.26the preceding two months;150.27    (iii) documentation that the customer receives a pension from the Department of 150.28Human Services, the Social Security Administration, the Veteran's Administration, or 150.29other pension provider;150.30    (iv) a letter showing the customer's dismissal from a job or other documentation of 150.31unemployment; or150.32    (v) other documentation that supports the customer's declaration of income 150.33eligibility.150.34    (b) A customer who receives energy assistance benefits under any federal, state, 150.35or county government programs in which eligibility is defined as household income at 151.1or below 50 percent of state median income is deemed to be automatically eligible for 151.2protection under this section and no other verification of income may be required.151.3    Subd. 7.Prohibitions and requirements.(a) This subdivision applies during 151.4the cold weather period.151.5    (b) A utility may not charge a deposit or delinquency charge to a customer who has 151.6entered into a payment agreement or a customer who has appealed to the commission 151.7under subdivision 8.151.8    (c) A utility may not disconnect service during the following periods:151.9    (1) during the pendency of any appeal under subdivision 8;151.10    (2) earlier than ten working days after a utility has deposited in first class mail, 151.11or seven working days after a utility has personally served, the notice required under 151.12subdivision 4 to a customer in an occupied dwelling;151.13    (3) earlier than ten working days after the utility has deposited in first class mail 151.14the notice required under subdivision 4 to the recorded billing address of the customer, 151.15if the utility has reasonably determined from an on-site inspection that the dwelling 151.16is unoccupied;151.17    (4) on a Friday, unless the utility makes personal contact with, and offers a payment 151.18agreement consistent with this section to the customer;151.19    (5) on a Saturday, Sunday, holiday, or the day before a holiday;151.20    (6) when utility offices are closed;151.21    (7) when no utility personnel are available to resolve disputes, enter into payment 151.22agreements, accept payments, and reconnect service; or151.23    (8) when commission offices are closed.151.24    (d) A utility may not discontinue service until the utility investigates whether the 151.25dwelling is actually occupied. At a minimum, the investigation must include one visit 151.26by the utility to the dwelling during normal working hours. If no contact is made and 151.27there is reason to believe that the dwelling is occupied, the utility must attempt a second 151.28contact during nonbusiness hours. If personal contact is made, the utility representative 151.29must provide notice required under subdivision 4 and, if the utility representative is not 151.30authorized to enter into a payment agreement, the telephone number the customer can call 151.31to establish a payment agreement.151.32    (e) Each utility must reconnect utility service if, following disconnection, the 151.33dwelling is found to be occupied and the customer agrees to enter into a payment 151.34agreement or appeals to the commission because the customer and the utility are unable to 151.35agree on a payment agreement.152.1    Subd. 8.Disputes; customer appeals.(a) A utility must provide the customer 152.2and any designated third party with a commission-approved written notice of the right 152.3to appeal:152.4    (1) a utility determination that the customer's household income is more than 50 152.5percent of state median household income; or152.6    (2) when the utility and customer are unable to agree on the establishment or 152.7modification of a payment agreement.152.8    (b) A customer's appeal must be filed with the commission no later than seven 152.9working days after the customer's receipt of a personally served appeal notice, or within 152.10ten working days after the utility has deposited a first class mail appeal notice.152.11    (c) The commission must determine all customer appeals on an informal basis, 152.12within 20 working days of receipt of a customer's written appeal. In making its 152.13determination, the commission must consider one or more of the factors in subdivision 6.152.14    (d) Notwithstanding any other law, following an appeals decision adverse to the 152.15customer, a utility may not disconnect utility heating service for seven working days 152.16after the utility has personally served a disconnection notice, or for ten working days 152.17after the utility has deposited a first class mail notice. The notice must contain, in 152.18easy-to-understand language, the date on or after which disconnection will occur, the 152.19reason for disconnection, and ways to avoid disconnection.152.20    Subd. 8a.Cooperative and municipal disputes.Complaints in connection with 152.21utility heating service during the cold weather period filed against a municipal or a 152.22cooperative electric association with the commission under section 216B.17, subdivision 6 152.23or 6a, are governed by section 216B.097.152.24    Subd. 9.Customers above 50 percent of state median income.During the 152.25cold weather period, a customer whose household income is above 50 percent of state 152.26median income:152.27    (1) has the right to a payment agreement that takes into consideration any 152.28extenuating circumstances of the household; and152.29    (2) may not be disconnected and must be reconnected if the customer makes timely 152.30payments under a payment agreement accepted by a utility.152.31Subdivision 7, paragraph (b), does not apply to customers whose household income is 152.32above 50 percent of state median income.152.33    Subd. 10.Reporting.Annually on November 1, a utility must electronically file 152.34with the commission a report, in a format specified by the commission, specifying the 152.35number of utility heating service customers whose service is disconnected or remains 153.1disconnected for nonpayment as of October 1 and October 15. If customers remain 153.2disconnected on October 15, a utility must file a report each week between November 1 153.3and the end of the cold weather period specifying:153.4    (1) the number of utility heating service customers that are or remain disconnected 153.5from service for nonpayment; and153.6    (2) the number of utility heating service customers that are reconnected to service 153.7each week. The utility may discontinue weekly reporting if the number of utility heating 153.8service customers that are or remain disconnected reaches zero before the end of the 153.9cold weather period.153.10The data reported under this subdivision are presumed to be accurate upon submission and 153.11must be made available through the commission's electronic filing system.153.12    Sec. 14. Minnesota Statutes 2006, section 216B.097, subdivision 1, is amended to read:153.13    Subdivision 1. Application; notice to residential customer. (a) A municipal utility 153.14or a cooperative electric association must not disconnect and must reconnect the utility 153.15service of a residential customer during the period between October 15 and April 15 if 153.16the disconnection affects the primary heat source for the residential unit when and all of153.17the following conditions are met:153.18    (1) the customer has declared inability to pay on forms provided by the utility. For 153.19the purposes of this clause, a customer that is receiving energy assistance is deemed 153.20to have demonstrated an inability to pay;153.21    (2) The household income of the customer is less than at or below 50 percent of the 153.22state median household income;. A municipal utility or cooperative electric association 153.23utility may (i) verify income on forms it provides or (ii) obtain153.24    (3) verification of income may be conducted by from the local energy assistance 153.25provider or the utility, unless the. A customer is automatically eligible for protection 153.26against disconnection as a recipient of deemed to meet the income requirements of this 153.27clause if the customer receives  any form of public assistance, including energy assistance,153.28that uses an income eligibility in an amount threshold set at or below the income eligibility 153.29in clause (2) 50 percent of the state median household income;153.30    (4) (2) A customer whose account is current for the billing period immediately prior 153.31to October 15 or who, at any time, enters into and makes reasonably timely payments 153.32under a payment schedule agreement that considers the financial resources of the 153.33household and is reasonably current with payments under the schedule; and154.1    (5) the (3) A customer receives referrals to energy assistance programs, 154.2weatherization, conservation, or other programs likely to reduce the customer's energy 154.3bills.154.4    (b) A municipal utility or a cooperative electric association must, between August 154.515 and October 15 of each year, notify all residential customers of the provisions of this 154.6section.154.7    Sec. 15. Minnesota Statutes 2006, section 216B.097, subdivision 3, is amended to read:154.8    Subd. 3. Restrictions if disconnection necessary. (a) If a residential customer must 154.9be involuntarily disconnected between October 15 and April 15 for failure to comply with 154.10the provisions of subdivision 1, the disconnection must not occur:154.11    (1) on a Friday or on the day before a holiday, unless the customer declines to enter 154.12into a payment agreement offered that day in person or via personal contact by telephone 154.13by a municipal utility or cooperative electric association;154.14    (2) on a weekend, holiday, or the day before a holiday;154.15    (3) when utility offices are closed; or154.16    (4) after the close of business on a day when disconnection is permitted, unless 154.17a field representative of a municipal utility or cooperative electric association who is 154.18authorized to enter into a payment agreement, accept payment, and continue service, 154.19offers a payment agreement to the customer. 154.20Further, the disconnection must not occur until at least 20 days after the notice required 154.21in subdivision 2 has been mailed to the customer or 15 days after the notice has been 154.22personally delivered to the customer.154.23    (b) If a customer does not respond to a disconnection notice, the customer must 154.24not be disconnected until the utility investigates whether the residential unit is actually 154.25occupied. If the unit is found to be occupied, the utility must immediately inform the 154.26occupant of the provisions of this section. If the unit is unoccupied, the utility must give 154.27seven days' written notice of the proposed disconnection to the local energy assistance 154.28provider before making a disconnection.154.29    (c) If, prior to disconnection, a customer appeals a notice of involuntary 154.30disconnection, as provided by the utility's established appeal procedure, the utility must 154.31not disconnect until the appeal is resolved.154.32    Sec. 16. Minnesota Statutes 2006, section 216B.098, subdivision 4, is amended to read:154.33    Subd. 4. Undercharges.(a) A utility shall offer a payment agreement to customers 154.34who have been undercharged if no culpable conduct by the customer or resident of 154.35the customer's household caused the undercharge. The agreement must cover a period 155.1equal to the time over which the undercharge occurred or a different time period that is 155.2mutually agreeable to the customer and the utility, except that the duration of a payment 155.3agreement offered by a utility to a customer whose household income is at or below 50 155.4percent of state median household income must consider the financial circumstances of 155.5the customer's household. 155.6    (b) No interest or delinquency fee may be charged under this as part of an 155.7undercharge agreement under this subdivision.155.8    (c) If a customer inquiry or complaint results in the utility's discovery of the 155.9undercharge, the utility may bill for undercharges incurred after the date of the inquiry 155.10or complaint only if the utility began investigating the inquiry or complaint within a 155.11reasonable time after when it was made.155.12    Sec. 17. Minnesota Statutes 2006, section 216B.812, subdivision 1, is amended to read:155.13    Subdivision 1. Early purchase and deployment of renewable hydrogen, fuel 155.14cells, and related technologies by the state. (a) The Department of Commerce, in 155.15conjunction coordination with the Department of Administration and the Pollution Control 155.16Agency, shall identify opportunities for demonstrating the use ofdeploying renewable 155.17hydrogen, fuel cells, and related technologies within state-owned facilities, vehicle fleets, 155.18and operations in ways that demonstrate their commercial performance and economics.155.19    (b) The Department of Commerce shall recommend to the Department of 155.20Administration, when feasible, the purchase and demonstrationdeployment of hydrogen, 155.21fuel cells, and related technologies, when feasible,  in ways that strategically contribute 155.22to realizing Minnesota's hydrogen economy goal as set forth in section 
         216B.8109, and 155.23which contribute to the following nonexclusive list of objectives:155.24    (1) provide needed performance data to the marketplace;155.25    (2) identify code and regulatory issues to be resolved;155.26    (3) foster economic development and job creation in the state;155.27    (4) raise public awareness of renewable hydrogen, fuel cells, and related 155.28technologies; or155.29    (5) reduce emissions of carbon dioxide and other pollutants.155.30    (c) The Department of Commerce and the Pollution Control Agency shall also 155.31recommend to the Department of Administration changes to the state's procurement 155.32guidelines and contracts in order to facilitate the purchase and deployment of cost-effective 155.33renewable hydrogen, fuel cells, and related technologies by all levels of government.155.34    Sec. 18. Minnesota Statutes 2006, section 216B.16, subdivision 10, is amended to read:156.1    Subd. 10. Intervenor payment compensation.(a) A nonprofit organization or 156.2an individual granted formal intervenor status by the commission is eligible to receive 156.3compensation.156.4    (b) The commission may order a utility to pay all or a portion of a party's intervention156.5 compensate all or part of an eligible intervenor's reasonable costs not to exceed $20,000 156.6per intervenor in any proceeding of participation in a general rate case that comes before 156.7the commission when the commission finds that the intervenor has materially assisted 156.8the commission's deliberation and the intervenor has insufficient financial resources to 156.9afford the costs of intervention and when a lack of compensation would present financial 156.10hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor 156.11in any proceeding. For the purpose of this subdivision, "materially assisted" means that 156.12the intervenor's participation and presentation was useful and seriously considered, or 156.13otherwise substantially contributed to the commission's deliberations in the proceeding. 156.14    (c) In determining whether an intervenor has materially assisted the commission's 156.15deliberation, the commission must consider, among other factors, whether: 156.16    (1) the intervenor represented an interest that would not otherwise have been 156.17adequately represented; 156.18    (2) the evidence or arguments presented or the positions taken by the intervenor 156.19were an important factor in producing a fair decision; 156.20    (3) the intervenor's position promoted a public purpose or policy; 156.21    (4) the evidence presented, arguments made, issues raised, or positions taken by the 156.22intervenor would not have been a part of the record without the intervenor's participation; 156.23and 156.24    (5) the administrative law judge or the commission adopted, in whole or in part, a 156.25position advocated by the intervenor. 156.26    (d) In determining whether the absence of compensation would present financial 156.27hardship to the intervenor, the commission must consider: 156.28    (1) whether the costs presented in the intervenor's claim reflect reasonable fees for 156.29attorneys and expert witnesses and other reasonable costs; and156.30    (2) the ratio between the costs of intervention and the intervenor's unrestricted funds.156.31    (e) An intervenor seeking compensation must file a request and an affidavit of service 156.32with the commission, and serve a copy of the request on each party to the proceeding. 156.33The request must be filed 30 days after the later of (1) the expiration of the period within 156.34which a petition for rehearing, amendment, vacation, reconsideration, or reargument must 156.35be filed or (2) the date the commission issues an order following rehearing, amendment, 156.36vacation, reconsideration, or reargument.157.1    (f) The compensation request must include: 157.2    (1) the name and address of the intervenor or representative of the nonprofit 157.3organization the intervenor is representing; 157.4    (2) proof of the organization's nonprofit, tax-exempt status; 157.5    (3) the name and docket number of the proceeding for which compensation is 157.6requested; 157.7    (4) a list of actual annual revenues and expenses of the organization the intervenor is 157.8representing for the preceding year and projected revenues, revenue sources, and expenses 157.9for the current year; 157.10    (5) the organization's balance sheet for the preceding year and a current monthly 157.11balance sheet; 157.12    (6) an itemization of intervenor costs and the total compensation request; and 157.13    (7) a narrative explaining why additional organizational funds cannot be devoted 157.14to the intervention.157.15    (g) Within 30 days after service of the request for compensation, a party may file 157.16a response, together with an affidavit of service, with the commission. A copy of the 157.17response must be served on the intervenor and all other parties to the proceeding. 157.18    (h) Within 15 days after the response is filed, the intervenor may file a reply with 157.19the commission. A copy of the reply and an affidavit of service must be served on all 157.20other parties to the proceeding. 157.21    (i) If additional costs are incurred as a result of additional proceedings following 157.22the commission's initial order, the intervenor may file an amended request within 30 157.23days after the commission issues an amended order. Paragraphs (e) to (h) apply to an 157.24amended request. 157.25    (j) The commission must issue a decision on intervenor compensation within 60 157.26days of a filing by an intervenor. 157.27    (k) A party may request reconsideration of the commission's compensation decision 157.28within 30 days of the decision. 157.29    (l) If the commission issues an order requiring payment of intervenor compensation, 157.30the utility that was the subject of the proceeding must pay the compensation to the 157.31intervenor, and file with the commission proof of payment, within 30 days after the later 157.32of (1) the expiration of the period within which a petition for reconsideration of the 157.33commission's compensation decision must be filed or (2) the date the commission issues 157.34an order following reconsideration of its order on intervenor compensation.157.35    Sec. 19. Minnesota Statutes 2006, section 216B.16, subdivision 15, is amended to read:158.1    Subd. 15. Low-income affordability programs. (a) The commission may must158.2consider ability to pay as a factor in setting utility rates and may establish affordability158.3programs for low-income residential ratepayers in order to ensure affordable, reliable, and 158.4continuous service to low-income utility customers. By September 1, 2007, a public 158.5utility serving low-income residential ratepayers who use natural gas for heating must 158.6file an affordability program with the commission. For purposes of this subdivision, 158.7"low-income residential ratepayers" means ratepayers who receive energy assistance from 158.8the low-income home energy assistance program (LIHEAP).158.9    (b) The purpose of the low-income programs is to Any affordability program the 158.10commission orders a utility to implement must:158.11    (1) lower the percentage of income that participating low-income households devote 158.12to energy bills, to;158.13    (2) increase participating customer payments, and to over time by increasing the 158.14frequency of payments;158.15    (3) decrease or eliminate participating customer arrears;158.16    (4) lower the utility costs associated with customer account collection activities; and 158.17    (5) coordinate the program with other available low-income bill payment assistance 158.18and conservation resources. 158.19In ordering low-income affordability programs, the commission may require public 158.20utilities to file program evaluations, including the coordination of other available 158.21low-income bill payment and conservation resources and that measure the effect of the 158.22affordability program on:158.23    (1) reducing the percentage of income that participating households devote to energy 158.24bills;158.25    (2) service disconnections; and158.26    (3) frequency of customer payment behavior payments, utility collection costs, 158.27arrearages, and bad debt.158.28    (c) The commission must issue orders necessary to implement, administer, and 158.29evaluate affordability programs, and to allow a utility to recover program costs, including 158.30administrative costs, on a timely basis. The commission may not allow a utility to recover 158.31administrative costs, excluding start-up costs, in excess of five percent of total program 158.32costs, or program evaluation costs in excess of two percent of total program costs. The 158.33commission must permit deferred accounting, with carrying costs, for recovery of program 158.34costs incurred during the period between general rate cases.158.35    (d) Public utilities may use information collected or created for the purpose of 158.36administering energy assistance to administer affordability programs.159.1    Sec. 20. [216B.1637] RECOVERY OF CERTAIN LIMITED UTILITY 159.2GREENHOUSE GAS INFRASTRUCTURE COSTS.159.3    A public utility that owns a nuclear power plant and a public utility furnishing gas 159.4service may file for recovery of investments and expenses associated with the replacement 159.5of cast iron natural gas distribution and service lines owned by the utility and to replace 159.6breakers that contain sodium hexafluoride in order to reduce the risk of greenhouse gases 159.7being released into the atmosphere. Upon a finding that the projects are consistent with 159.8the public interest and do not impose excessive costs on customers, the commission shall 159.9provide timely recovery of the utility's investment and expenses on any approved projects 159.10through a rate adjustment mechanism similar to that provided for transmission projects 159.11under section 216B.16, subdivision 7b, paragraphs (b) to (d).159.12    Sec. 21. Minnesota Statutes 2006, section 216B.241, subdivision 6, is amended to read:159.13    Subd. 6. Renewable energy research. (a) A public utility that owns a nuclear 159.14generation facility in the state shall spend five percent of the total amount that utility 159.15is required to spend under this section to support basic and applied research and 159.16demonstration activities at the University of Minnesota Initiative for Renewable Energy 159.17and the Environment for the development of renewable energy sources and technologies. 159.18The utility shall transfer the required amount to the University of Minnesota on or before 159.19July 1 of each year and that annual amount shall be deducted from the amount of money the 159.20utility is required to spend under this section. The University of Minnesota shall transfer 159.21at least ten percent of these funds to at least one rural campus or experiment station.159.22    (b) Research Activities funded under this subdivision shall may include, but are 159.23not limited to:159.24    (1) development of environmentally sound production, distribution, and use of 159.25energy, chemicals, and materials from renewable sources;159.26    (2) processing and utilization of agricultural and forestry plant products and other 159.27bio-based, renewable sources as a substitute for fossil-fuel-based energy, chemicals, and 159.28materials using a variety of means including biocatalysis, biorefining, and fermentation;159.29    (3) conversion of state wind resources to hydrogen for energy storage and 159.30transportation to areas of energy demand;159.31    (4) improvements in scalable hydrogen fuel cell technologies; and159.32    (5) production of hydrogen from bio-based, renewable sources; and sequestration 159.33of carbon.159.34    (1) environmentally sound production of energy from a renewable energy source 159.35including biomass; 160.1    (2) environmentally sound production of hydrogen from biomass and any other 160.2renewable energy source for energy storage and energy utilization; 160.3    (3) development of energy conservation and efficient energy utilization technologies; 160.4    (4) energy storage technologies; and 160.5    (5) analysis of policy options to facilitate adoption of technologies that use or 160.6produce low-carbon renewable energy. 160.7    (c) Notwithstanding other law to the contrary, the utility may, but is not required to, 160.8spend more than two percent of its gross operating revenues from service provided in this 160.9state under this section or section 
         216B.2411. 160.10    (d) For the purposes of this subdivision:160.11    (1) "renewable energy source: means hydro, wind, solar, biomass and geothermal 160.12energy, and microorganisms used as an energy source; and160.13    (2) "biomass" means plant and animal material, agricultural and forest residues, 160.14mixed municipal solid waste, and sludge from wastewater treatment.160.15    (e) This subdivision expires June 30, 2008 2010.160.16    Sec. 22. Minnesota Statutes 2006, section 216B.812, subdivision 2, is amended to read:160.17    Subd. 2. Pilot projects. (a) In consultation with appropriate representatives from 160.18state agencies, local governments, universities, businesses, and other interested parties, 160.19the Department of Commerce shall report back to the legislature by November 1, 2005, 160.20and every two years thereafter, with a slate of proposed pilot projects that contribute to 160.21realizing Minnesota's hydrogen economy goal as set forth in section 
         216B.8109. The 160.22Department of Commerce must consider the following nonexclusive list of priorities in 160.23developing the proposed slate of pilot projects:160.24    (1) demonstratedeploy "bridge" technologies such as hybrid-electric, off-road, and 160.25fleet vehicles running on hydrogen or fuels blended with hydrogen;160.26    (2) developlead to cost-competitive, on-site renewable hydrogen production 160.27technologies;160.28    (3) demonstrate nonvehicle applications for hydrogen;160.29    (4) improve the cost and efficiency of hydrogen from renewable energy sources; and160.30    (5) improve the cost and efficiency of hydrogen production using direct solar energy 160.31without electricity generation as an intermediate step.160.32    (b) For all demonstrations deployment projects that do not involve a demonstration 160.33component, individual system components of the technology mustshould, if feasible, meet 160.34commercial performance standards and systems modeling must be completed to predict 161.1commercial performance, risk, and synergies. In addition, the proposed pilots should meet 161.2as many of the following criteria as possible:161.3    (1) advance energy security;161.4    (2) capitalize on the state's native resources;161.5    (3) result in economically competitive infrastructure being put in place;161.6    (4) be located where it will link well with existing and related projects and be 161.7accessible to the public, now or in the future;161.8    (5) demonstrate multiple, integrated aspects of renewable hydrogen infrastructure;161.9    (6) include an explicit public education and awareness component;161.10    (7) be scalable to respond to changing circumstances and market demands;161.11    (8) draw on firms and expertise within the state where possible;161.12    (9) include an assessment of its economic, environmental, and social impact; and161.13    (10) serve other needs beyond hydrogen development.161.14    Sec. 23. [216B.813] MINNESOTA RENEWABLE HYDROGEN INITIATIVE.161.15    Subdivision 1.Road map.The Department of Commerce shall coordinate and 161.16administer directly or by contract the Minnesota renewable hydrogen initiative. If the 161.17department decides to contract for its duties under this section, it must contract with a 161.18nonpartisan, nonprofit organization within the state to develop the road map. The initiative 161.19may be run as a public-private partnership representing business, academic, governmental, 161.20and nongovernmental organizations. The initiative must oversee the development and 161.21implementation of a renewable hydrogen road map, including appropriate technology 161.22deployments, that achieve the hydrogen goal of section 216B.013. The road map should 161.23be compatible with the United States Department of Energy's National Hydrogen Energy 161.24Roadmap and be based on an assessment of marketplace economics and the state's 161.25opportunities in hydrogen, fuel cells, and related technologies, so as to capitalize on 161.26strengths. The road map should establish a vision, goals, general timeline, strategies for 161.27working with industry, and measurable milestones for achieving the state's renewable 161.28hydrogen goal. The road map should describe how renewable hydrogen and fuel cells fit 161.29in Minnesota's overall energy system, and should help foster a consistent, predictable, and 161.30prudent investment environment. The department must report to the legislature on the 161.31progress in implementing the road map by November 1 of each odd-numbered year.161.32    Subd. 2.Grants.(a) The commissioner of commerce shall operate a competitive 161.33grant program for projects to assist the state in attaining its renewable hydrogen energy 161.34goals. The commissioner of commerce shall assemble an advisory committee made up of 161.35industry, university, government, and nongovernment organizations to:162.1    (1) help identify the most promising technology deployment projects for public 162.2investment;162.3    (2) advise on the technical specifications for those projects; and162.4    (3) make recommendations on project grants.162.5    (b) The commissioner shall give preference to project concepts included in the 162.6department's most recent biennial report: Strategic Demonstration Projects to Accelerate 162.7the Commercialization of Renewable Hydrogen and Related Technologies in Minnesota. 162.8Projects eligible for funding must combine one or more of the hydrogen production 162.9options listed in the department's report with an end use that has significant commercial 162.10potential, preferably high visibility, and relies on fuel cells or related technologies. Each 162.11funded technology deployment must include an explicit education and awareness-raising 162.12component, be compatible with the renewable hydrogen deployment criteria defined in 162.13section 216B.812, and receive 50 percent of its total cost from nonstate sources. The 50 162.14percent requirement does not apply for recipients that are public institutions.162.15    Sec. 24. Minnesota Statutes 2006, section 216C.051, subdivision 2, is amended to read:162.16    Subd. 2. Establishment. (a) There is established a Legislative Electric Energy Task 162.17Force to study future electric energy sources and costs and to make recommendations 162.18for legislation for an environmentally and economically sustainable and advantageous 162.19electric energy supply.162.20    (b) The task force consists of:162.21    (1) ten members of the house of representatives including the chairs of the 162.22Environment and Natural Resources Committee and Regulated Industries Subcommittee162.23the Energy Finance and Policy Division and eight members to be appointed by the speaker 162.24of the house, four of whom must be from the minority caucus; and162.25    (2) ten members of the senate including the chairs of the Environment, Energy and 162.26Natural Resources Budget Division and Jobs, Energy, and Community Development162.27Utilities, Technology and Communications committees and eight members to be appointed 162.28by the Subcommittee on Committees, four of whom must be from the minority caucus.162.29    (c) The task force may employ staff, contract for consulting services, and may 162.30reimburse the expenses of persons requested to assist it in its duties other than state 162.31employees or employees of electric utilities. The director of the Legislative Coordinating 162.32Commission shall assist the task force in administrative matters. The task force shall 162.33elect cochairs, one member of the house and one member of the senate from among the 162.34committee and subcommittee chairs named to the committee. The task force members 163.1from the house shall elect the house cochair, and the task force members from the senate 163.2shall elect the senate cochair.163.3    Sec. 25. Minnesota Statutes 2006, section 216C.051, subdivision 9, is amended to read:163.4    Subd. 9. Expiration. This section is repealed June 30, 2007 2010.163.5EFFECTIVE DATE.This section is effective the day following final enactment.163.6    Sec. 26. Minnesota Statutes 2006, section 216C.052, is amended by adding a 163.7subdivision to read:163.8    Subd. 8a.Manitoba Hydro information.By January 1, 2008, and each year 163.9thereafter, the task force shall request the Manitoba Hydro-Electric Board to provide 163.10the following information for each community that is a signatory to the Northern Flood 163.11Agreement, including South Indian Lake:163.12    (1) median household income and number of residents employed full time and 163.13part time;163.14    (2) the number of outstanding claims filed against Manitoba Hydro by individuals 163.15and communities and the number of claims settled by Manitoba Hydro; and163.16    (3) the amount of shoreline damaged by flooding and erosion and the amount of 163.17shoreline restored and cleaned.163.18    For the purposes of this subdivision, "Northern Flood Agreement" means the 163.19agreement entered into by the Northern Flood Committee, Incorporated, the Manitoba 163.20Hydro-Electric Board, the province of Manitoba, and the government of Canada on 163.21December 16, 1977.163.22    Sec. 27. [216C.385] CLEAN ENERGY RESOURCE TEAMS.163.23    Subdivision 1.Findings.The legislature finds that community-based energy 163.24programs are an effective means of implementing improved energy practices including 163.25conservation, greater efficiency in energy use, and the production and use of renewable 163.26resources such as wind, solar, biomass, and biofuels. Further, community-based energy 163.27programs are found to be a public purpose for which public money may be spent.163.28    Subd. 2.Mission, organization, and membership.The clean energy resource 163.29teams (CERT's) project is an innovative state, university, and nonprofit partnership that 163.30serves as a catalyst for community energy planning and projects. The mission of CERT's 163.31is to give citizens a voice in the energy planning process by connecting them with the 163.32necessary technical resources to identify and implement community-scale renewable 163.33energy and energy efficiency projects. In 2003, the Department of Commerce designated 164.1the CERT's project as a statewide collaborative venture and recognized six regional teams 164.2based on their geography: Central, Northeast, Northwest, Southeast, Southwest, and 164.3West-Central. Membership of CERT's may include but is not limited to representatives 164.4of utilities; federal, state, and local governments; small business; labor; senior citizens; 164.5academia; and other interested parties. The Department of Commerce may certify 164.6additional clean energy resource teams by regional geography, including teams in the Twin 164.7Cities metropolitan area.164.8    Subd. 3.Powers and duties.In order to develop and implement community-based 164.9energy programs, a clean energy resource team may:164.10    (1) analyze social and economic impacts caused by energy expenditures;164.11    (2) analyze regional renewable and energy efficiency resources and opportunities;164.12    (3) link community members and community energy projects to the knowledge 164.13and capabilities of the University of Minnesota, the State Energy Office, nonprofit 164.14organizations, and regional community members, among others;164.15    (4) plan, set priorities for, provide technical assistance to, and catalyze local energy 164.16efficiency and renewable energy projects that help to meet state energy policy goals and 164.17maximize local economic development opportunities;164.18    (5) provide a broad-based resource and communications network that links local, 164.19county, and regional energy efficiency and renewable energy project efforts around the 164.20state (both interregional and intraregional);164.21    (6) seek, accept, and disburse grants and other aids from public or private sources 164.22for purposes authorized in this subdivision;164.23    (7) provides a convening and networking function within CERT's regions to facilitate 164.24education, knowledge formation, and project replication; and164.25    (8) exercise other powers and duties imposed on it by statute, charter, or ordinance.164.26    Subd. 4.Department assistance.The commissioner, via the clean energy resource 164.27teams, may provide professional, technical, organizational, and financial assistance to 164.28regions and communities to develop and implement community energy programs and 164.29projects, within available resources.164.30    Sec. 28. [216C.39] RURAL WIND ENERGY DEVELOPMENT REVOLVING 164.31LOAN FUND.164.32    Subdivision 1.Establishment.A rural wind energy development revolving loan 164.33fund is established as an account in the special revenue fund in the state treasury. The 164.34commissioner of finance shall credit to the account the amounts authorized under this 165.1section and appropriations and transfers to the account. Earnings, such as interest, 165.2dividends, and any other earnings arising from fund assets, must be credited to the account.165.3    Subd. 2.Purpose.The rural wind energy development revolving loan fund 165.4is created to provide financial assistance, through partnership with local owners and 165.5communities, in developing community wind energy projects that meet the specifications 165.6of section 216B.1612, subdivision 2, paragraph (f).165.7    Subd. 3.Expenditures.Money in the fund is appropriated to the commissioner 165.8of commerce, and may be used to make loans to qualifying owners of wind energy 165.9projects, as defined in section 216B.1612, subdivision 2, paragraph (f), to assist in funding 165.10wind studies and transmission interconnection studies. The loans must be structured 165.11for repayment within 30 days after the project begins commercial operations or two 165.12years from the date the loan is issued, whichever is sooner. The commissioner may pay 165.13reasonable and actual costs of administering the loan program, not to exceed interest 165.14earned on fund assets.165.15    Subd. 4.Limitations.A loan may not be approved for an amount exceeding 165.16$100,000. This limit applies to all money loaned to a single project or single entity, 165.17whether paid to one or more qualifying owners and whether paid in one or more fiscal 165.18years.165.19    Subd. 5.Administration; eligible projects.(a) Applications for a loan under 165.20this section must be made in a manner and on forms prescribed by the commissioner. 165.21Loans to eligible projects must be made in the order in which complete applications are 165.22received by the commissioner. Loan funds must be disbursed to an applicant within ten 165.23days of submission of a payment request by the applicant that demonstrates a payment 165.24due to the Midwest Independent System Operator. Interest payable on the loan amount 165.25may not exceed 1.5 percent per annum.165.26    (b) A project is eligible for a loan under this program if:165.27    (1) the project has completed an adequate interconnection feasibility study that 165.28indicates the project may be interconnected with system upgrades of less than ten percent 165.29of the estimated project costs;165.30    (2) the project has a signed power purchase agreement with an electric utility or 165.31provides evidence that the project is under serious consideration for such an agreement by 165.32an electric utility;165.33    (3) the ownership and structure of the project allows it to qualify as a 165.34community-based energy development (C-BED) project under section 216B.1612, and the 165.35developer commits to obtaining and maintaining C-BED status; and166.1    (4) the commissioner has determined that sufficient funds are available to make a 166.2loan to the project.166.3    Sec. 29. Minnesota Statutes 2006, section 216C.41, subdivision 3, is amended to read:166.4    Subd. 3. Eligibility window. Payments may be made under this section only for:166.5    (a) electricity generated from:166.6    (1) from a qualified hydroelectric facility that is operational and generating 166.7electricity before December 31, 2009;166.8    (2) from a qualified wind energy conversion facility that is operational and 166.9generating electricity before January 1, 2008; or166.10    (3) from a qualified on-farm biogas recovery facility from July 1, 2001, through 166.11December 31, 2017; and166.12    (b) gas generated from a qualified on-farm biogas recovery facility from July 1, 166.132007, through December 31, 2017.166.14    Sec. 30. PETROLEUM VIOLATION ESCROW FUNDS.166.15    (a) Petroleum violation escrow funds appropriated to the commissioner of commerce 166.16by  Laws 1988, chapter 686, article 1, section 38, for state energy loan programs for 166.17schools,  hospitals, and public buildings must be used for grants to kindergarten through 166.18grade 12 schools to develop energy conservation or renewable energy projects. A grant 166.19may not exceed $500,000. The commissioner must endeavor to award grants throughout 166.20the regions of the state. No more than one grant may be awarded in a county, unless an 166.21insufficient number of applications is received from schools located in other counties to 166.22exhaust available funds.166.23    (b) The commissioner of commerce must petition the federal Department of Energy 166.24for a waiver from any federal regulation that limits the proportion of federal funds 166.25expended on state energy programs that may be spent on energy efficiency.166.26    (c) For purposes of this subdivision, "renewable energy" means wind, solar, 166.27hydroelectric with a capacity of less than 60 megawatts, geothermal, hydrogen, fuel cells 166.28made from renewable resources, herbaceous crops, agricultural crops, agricultural waste, 166.29and aquatic plant matter.166.30EFFECTIVE DATE.This section is effective the day after the commissioner of 166.31commerce receives the waiver described in paragraph (b).167.1    Sec. 31. UNIFORM CODES AND STANDARDS FOR HYDROGEN, FUEL 167.2CELLS, AND RELATED TECHNOLOGIES; RECOMMENDATIONS AND 167.3REPORT.167.4    (a) The commissioner of labor and industry, in consultation with the Department of 167.5Commerce and other relevant public and private interests, shall develop recommendations 167.6regarding the adoption of uniform codes and standards for hydrogen infrastructure, fuel 167.7cells, and related technologies, and report those recommendations to the legislature by 167.8December 31, 2008.167.9    (b) The goal of the recommendations is to have all regulatory jurisdictions in the 167.10state have the same safety standards with regard to the production, storage, transportation, 167.11distribution, and use of hydrogen, fuel cells, and related technologies. The commissioner's 167.12recommendations must, without limitation, include:167.13    (1) codes and standards that already exist for hydrogen, fuel cells, and related 167.14technologies, and how the state should formalize their use;167.15    (2) codes and standards still under development by various official standard-making 167.16bodies;167.17    (3) gaps between existing codes and standards, those under development, and those 167.18that may still be needed but are not yet being developed;167.19    (4) the need for, and estimated cost of, additional education and training for 167.20emergency management and code officials;167.21    (5) any changes needed to environmental and other permitting processes to 167.22accommodate the commercialization of hydrogen, fuel cells, and related technologies; and167.23    (6) recommendations on appropriate codes and standards for educational and 167.24research institutions.167.25    Sec. 32. HYDROGEN REFUELING STATION GRANTS.167.26    In addition to the purposes specified in Laws 2005, chapter 97, article 13, section 167.274, for which the commissioner of commerce may make grants, the commissioner may 167.28make grants under that law for the purpose of developing, deploying, and encouraging 167.29commercially promising renewable hydrogen production systems and hydrogen end 167.30uses in partnership with industry. The authority of the commissioner to make grants 167.31and assessments under Laws 2005, chapter 97, article 13, section 4, continues until the 167.32authorized grants and assessments are made.167.33    Sec. 33. OFF-SITE RENEWABLE DISTRIBUTED GENERATION.167.34    The commissioner of commerce shall convene a broad group of interested 167.35stakeholders to evaluate the feasibility and potential for the interconnection and parallel 168.1operation of off-site renewable distributed generation in a manner consistent with 168.2Minnesota Statutes, sections 216B.37 to 216B.43, and shall issue recommendations to 168.3the chairs of the house of representatives and senate committees with jurisdiction over 168.4energy issues by February 1, 2008.168.5    Sec. 34. DEFINITIONS.168.6    For purposes of sections 32 to 34, the following definitions apply:168.7    (1) "terrestrial carbon sequestration" means the long-term storage of carbon in soil 168.8and vegetation to prevent its collection in the atmosphere as carbon dioxide; and168.9    (2) "geologic carbon sequestration" means injecting carbon dioxide into underground 168.10geologic formations where it can be stored for long periods of time to prevent its escape 168.11to the atmosphere.168.12    Sec. 35. TERRESTRIAL CARBON SEQUESTRATION ACTIVITIES.168.13    Subdivision 1.Study; scope.The Board of Regents of the University of Minnesota 168.14is requested to conduct a study assessing the potential capacity for carbon sequestration in 168.15Minnesota's terrestrial systems. The study must: 168.16    (1) conduct a statewide inventory and construct a database of lands across several 168.17land types, such as forests, agricultural lands, peatlands, and wetlands, that have the 168.18potential to sequester significant quantities of carbon and of lands that currently contain 168.19large stocks of carbon that are at risk of being emitted to the atmosphere as a result of 168.20changes in land use and climate; 168.21    (2) quantify the ability of various land use practices, such as the growth of different 168.22species of crops, grasses, and trees, to sequester carbon and their impacts on other 168.23ecological services of value, including air and water quality, biodiversity, and wildlife 168.24habitat; 168.25    (3) identify a network of benchmark monitoring sites to measure the impact of 168.26long-term, large-scale factors, such as changes in climate, carbon dioxide levels, and land 168.27use, on the terrestrial carbon sequestration capacity of various land types, to improve 168.28understanding of carbon-terrestrial interactions and dynamics; 168.29    (4) identify long-term demonstration projects to measure the impact of deliberate 168.30sequestration practices, including the establishment of biofuel production systems, on 168.31forest, agricultural, wetland, and prairie ecosystems; and 168.32    (5) evaluate current state policies and programs that affect the levels of terrestrial 168.33sequestration on public and private lands and identify gaps and recommend policy changes 168.34to increase sequestration rates.169.1    Subd. 2.Coordination of terrestrial carbon sequestration activities.Planning 169.2and implementation of the study described in subdivision 1 will be coordinated by 169.3the Minnesota Terrestrial Carbon Sequestration Initiative, a task force consisting of 169.4representatives from the University of Minnesota, the Department of Agriculture, the 169.5Board of Water and Soil Resources, the Department of Commerce, the Department 169.6of Natural Resources, and the Pollution Control Agency and agricultural, forestry, 169.7conservation, and business stakeholders.169.8    Subd. 3.Contracting.The University of Minnesota may contract with another 169.9party to perform any of the tasks listed in subdivision 1.169.10    Subd. 4.Report.The commissioner of natural resources must submit a report 169.11with the results of the study to the senate and house committees with jurisdiction over 169.12environmental and energy policies no later than February 1, 2008.169.13    Sec. 36. GEOLOGIC CARBON SEQUESTRATION ASSESSMENT.169.14    Subdivision 1.Study; scope.(a) The Minnesota Geological Survey shall conduct 169.15a study assessing the potential capacity for geologic carbon sequestration in the 169.16Midcontinent Rift system in Minnesota. The study must assess the potential of porous 169.17and permeable sandstone layers deeper than one kilometer below the surface that are 169.18capped by less permeable shale and must identify potential risks to carbon storage, such 169.19as areas of low permeability in injection zones, low storage capacity, and potential seal 169.20failure. The study must identify the most promising formations and geographic areas for 169.21physical analysis of carbon sequestration potential. The study must review geologic 169.22maps, published reports and surveys, and any relevant unpublished raw data with respect 169.23to attributes that are pertinent for the long-term sequestration of carbon in geologic 169.24formations, in particular, those that bear on formation injectivity, capacity, and seal 169.25effectiveness. The study must examine the following characteristics of key sedimentary 169.26units within the Midcontinent Rift system in Minnesota:169.27    (1) likely depth, temperature, and pressure; 169.28    (2) physical properties, including the ability to contain and transmit fluids; 169.29    (3) the type of rocks present; 169.30    (4) structure and geometry, including folds and faults; and 169.31    (5) hydrogeology, including water chemistry and water flow.169.32    (b) The commissioner of natural resources, in consultation with the Minnesota 169.33Geological Survey, shall contract for a study to estimate the properties of the Midcontinent 169.34Rift system in Minnesota, as described in paragraph (a), clauses (1) to (5), through the 170.1use of computer models developed for similar geologic formations located outside of 170.2Minnesota which have been studied in greater detail.170.3    Subd. 2.Consultation.The Minnesota Geological Survey shall consult with the 170.4Minnesota Mineral Coordinating Committee, established in Minnesota Statutes, section 170.593.0015, in planning and implementing the study design.170.6    Subd. 3.Report.The commissioner of natural resources must submit a report 170.7with the results of the study to the senate and house committees with jurisdiction over 170.8environmental and energy policies no later than February 1, 2008.170.9    Sec. 37. ST. PAUL PORT AUTHORITY.170.10    Notwithstanding Minnesota Statutes, section 465.717, the St. Paul Port Authority 170.11may create a not-for-profit corporation for purposes of owning or operating, or both, a 170.12steam and electricity producing facility to be located in St. Paul that uses primarily fuel 170.13from an eligible energy technology as defined in Minnesota Statutes, section 216B.1691, 170.14subdivision 1, except that it does not include mixed municipal solid waste as an eligible 170.15energy technology. Steam produced by the facility may be used by a customer in a paper 170.16recycling operation. Nothing in this section authorizes or prohibits the retail sale of energy 170.17produced by the facility to other retail customers.170.18    Sec. 38. BIOFUEL PERMITTING REPORT.170.19    By January 15, 2008, the Pollution Control Agency, the commissioner of natural 170.20resources, and the Environmental Quality Board shall report to the house of representatives 170.21and senate committees and divisions with jurisdiction over agriculture and environment 170.22policy and budget on the process to issue permits for biofuel production facilities. The 170.23report shall include:170.24    (1) information on the timing of the permits and measures taken to improve the 170.25timing of the permitting process;170.26    (2) recommended changes to statutes, rules, procedures, or fees to improve the 170.27biofuel facility permitting process and reduce the groundwater needed for production; and170.28    (3) other information or analysis that may be helpful in understanding or improving 170.29the biofuel production facility permitting process.170.30EFFECTIVE DATE.This section is effective the day following final enactment.170.31    Sec. 39. WINONA COUNTY; ELECTRIC POWER PLANT.170.32    The county of Winona may own, construct, acquire, purchase, issue bonds and 170.33certificates of indebtedness for, maintain, and operate a wind energy conversion system, or 171.1a portion of a wind energy conversion system, within its corporate limits, and may sell the 171.2output from that facility at wholesale on such terms and conditions as the county board 171.3deems is in the best interests of the public. With respect to any wind energy conversion 171.4system, or any portion of a wind energy conversion system, the county may exercise the 171.5powers granted to a municipal power agency and to a city under Minnesota Statutes, 171.6sections 453.52, subdivisions 1, 6, 7, and 9 to 13; 453.54, subdivisions 1, 2, 4 to 6, 10, 11, 171.714, 15, and 17 to 21; 453.55; 453.57; 453.58, subdivisions 2, 3, and 4; 453.59; 453.60; 171.8453.61; and 453.62, except that output from that wind energy conversion system may not 171.9be sold or distributed at retail or provided for end use by the county. Minnesota Statutes, 171.10section 453.58, subdivision 3, does not give the county the authority to enter into contracts 171.11with a municipal power agency for the purchase, sale, exchange, or transmission of 171.12electric energy and other services. 171.13EFFECTIVE DATE.This section is effective the day after the governing body of 171.14the county of Winona and its chief clerical officer comply with Minnesota Statutes, section 171.15645.021, subdivisions 2 and 3.171.16    Sec. 40. APPLICATION OF RULES.171.17    Minnesota Rules, parts 7831.0100; 7831.0200; 7831.0300; 7831.0400; 7831.0500; 171.187831.0600; 7831.0700; and 7831.0800, do not apply to a general rate case for a gas 171.19or electric utility held before the commission. The Public Utilities Commission shall 171.20timely adopt rules to conform with this section and Minnesota Statutes, section 216B.16, 171.21subdivision 10, as amended by this act, under the exempt rule procedures of Minnesota 171.22Statutes, section 14.388, subdivision 1, clause (3).171.23    Sec. 41. REVISOR'S INSTRUCTION.171.24    The revisor of statutes must change the reference from "216B.095" to "216B.096" 171.25wherever found in Minnesota Rules, chapter 7820.171.26    Sec. 42.  REPEALER.171.27(a) Minnesota Statutes 2006, section 216B.095, is repealed.171.28(b) Minnesota Rules, parts 7820.1500; 7820.1600; 7820.1700; 7820.1750; 171.297820.1800; 7820.1900; 7820.2000; 7820.2100; 7820.2150; 7820.2200; and 7820.2300,171.30are repealed.171.31    Sec. 43. EFFECTIVE DATE.171.32    Sections 13, 39, and 40 are effective September 1, 2008.172.1ARTICLE 3172.2COMMERCE172.3    Section 1. Minnesota Statutes 2006, section 13.712, is amended by adding a 172.4subdivision to read:172.5    Subd. 3.Vehicle protection product warrantors.Financial information provided 172.6to the commissioner of commerce by vehicle protection product warrantors is classified 172.7under section 59C.05, subdivision 3.172.8EFFECTIVE DATE.This section is effective January 1, 2008.172.9    Sec. 2. Minnesota Statutes 2006, section 45.011, subdivision 1, is amended to read:172.10    Subdivision 1. Scope. As used in chapters 45 to 83, 155A,  332, 332A, 345, and 172.11359, and sections 
         325D.30 to 
         325D.42, 
         326.83 to 
         326.991, and 
         386.61 to 
         386.78, unless 172.12the context indicates otherwise, the terms defined in this section have the meanings given 172.13them. 172.14EFFECTIVE DATE.This section is effective January 1, 2008.172.15    Sec. 3. [45.24] LICENSE TECHNOLOGY FEES.172.16    (a) The commissioner may establish and maintain an electronic licensing database 172.17system for license origination, renewal, and tracking the completion of continuing 172.18education requirements by individual licensees who have continuing education 172.19requirements, and other related purposes.172.20    (b) The commissioner shall pay for the cost of operating and maintaining the 172.21electronic database system described in paragraph (a) through a technology surcharge 172.22imposed upon the fee for license origination and renewal, for individual licenses that 172.23require continuing education.172.24    (c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year 172.25licensing period, except as otherwise provided in paragraph (f), and shall be payable at the 172.26time of license origination and renewal.172.27    (d) The Commerce Department technology account is hereby created as an account 172.28in the special revenue fund.172.29    (e) The commissioner shall deposit the surcharge permitted under this section in 172.30the account created in paragraph (d), and funds in the account are appropriated to the 172.31commissioner in the amounts needed for purposes of this section.172.32    (f) The commissioner shall temporarily reduce or suspend the surcharge as necessary 172.33if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of 173.1any calendar year and shall increase or decrease the surcharge as necessary to keep the 173.2fund balance at an adequate level but not in excess of $2,000,000.173.3EFFECTIVE DATE.This section is effective the day following final enactment.173.4    Sec. 4. Minnesota Statutes 2006, section 46.04, subdivision 1, is amended to read:173.5    Subdivision 1. General. The commissioner of commerce, referred to in chapters 173.646 to 59A, and sections 332.12 to 332.29 chapter 332A, as the commissioner, is vested 173.7with all the powers, authority, and privileges which, prior to the enactment of Laws 1909, 173.8chapter 201, were conferred by law upon the public examiner, and shall take over all 173.9duties in relation to state banks, savings banks, trust companies, savings associations, and 173.10other financial institutions within the state which, prior to the enactment of chapter 201, 173.11were imposed upon the public examiner. The commissioner of commerce shall exercise 173.12a constant supervision, either personally or through the examiners herein provided for, 173.13over the books and affairs of all state banks, savings banks, trust companies, savings 173.14associations, credit unions, industrial loan and thrift companies, and other financial 173.15institutions doing business within this state; and shall, through examiners, examine each 173.16financial institution at least once every 24 calendar months. In satisfying this examination 173.17requirement, the commissioner may accept reports of examination prepared by a federal 173.18agency having comparable supervisory powers and examination procedures. With the 173.19exception of industrial loan and thrift companies which do not have deposit liabilities 173.20and licensed regulated lenders, it shall be the principal purpose of these examinations to 173.21inspect and verify the assets and liabilities of each and so far investigate the character 173.22and value of the assets of each institution as to determine with reasonable certainty that 173.23the values are correctly carried on its books. Assets and liabilities shall be verified in 173.24accordance with methods of procedure which the commissioner may determine to be 173.25adequate to carry out the intentions of this section. It shall be the further purpose of 173.26these examinations to assess the adequacy of capital protection and the capacity of the 173.27institution to meet usual and reasonably anticipated deposit withdrawals and other cash 173.28commitments without resorting to excessive borrowing or sale of assets at a significant 173.29loss, and to investigate each institution's compliance with applicable laws and rules. Based 173.30on the examination findings, the commissioner shall make a determination as to whether 173.31the institution is being operated in a safe and sound manner. None of the above provisions 173.32limits the commissioner in making additional examinations as deemed necessary or 173.33advisable. The commissioner shall investigate the methods of operation and conduct of 173.34these institutions and their systems of accounting, to ascertain whether these methods and 173.35systems are in accordance with law and sound banking principles. The commissioner may 174.1make requirements as to records as deemed necessary to facilitate the carrying out of the 174.2commissioner's duties and to properly protect the public interest. The commissioner may 174.3examine, or cause to be examined by these examiners, on oath, any officer, director, 174.4trustee, owner, agent, clerk, customer, or depositor of any financial institution touching 174.5the affairs and business thereof, and may issue, or cause to be issued by the examiners, 174.6subpoenas, and administer, or cause to be administered by the examiners, oaths. In 174.7case of any refusal to obey any subpoena issued under the commissioner's direction, 174.8the refusal may at once be reported to the district court of the district in which the bank 174.9or other financial institution is located, and this court shall enforce obedience to these 174.10subpoenas in the manner provided by law for enforcing obedience to subpoenas of the 174.11court. In all matters relating to official duties, the commissioner of commerce has the 174.12power possessed by courts of law to issue subpoenas and cause them to be served and 174.13enforced, and all officers, directors, trustees, and employees of state banks, savings banks, 174.14trust companies, savings associations, and other financial institutions within the state, 174.15and all persons having dealings with or knowledge of the affairs or methods of these 174.16institutions, shall afford reasonable facilities for these examinations, make returns and 174.17reports to the commissioner of commerce as the commissioner may require; attend and 174.18answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books, 174.19accounts, documents, and property as the commissioner may desire to inspect, and in all 174.20things aid the commissioner in the performance of duties. 174.21EFFECTIVE DATE.This section is effective January 1, 2008.174.22    Sec. 5. Minnesota Statutes 2006, section 46.05, is amended to read:174.2346.05 SUPERVISION OVER FINANCIAL INSTITUTIONS.174.24    Every state bank, savings bank, trust company, savings association, debt 174.25management services provider, and other financial institutions shall be at all times under 174.26the supervision and subject to the control of the commissioner of commerce. If, and 174.27whenever in the performance of duties, the commissioner finds it necessary to make a 174.28special investigation of any financial institution under the commissioner's supervision, 174.29and other than a complete examination, the commissioner shall make a charge therefor to 174.30include only the necessary costs thereof. Such a fee shall be payable to the commissioner 174.31on the commissioner's making a request for payment.174.32EFFECTIVE DATE.This section is effective January 1, 2008.174.33    Sec. 6. Minnesota Statutes 2006, section 46.131, subdivision 2, is amended to read:175.1    Subd. 2. Assessment authority. Each bank, trust company, savings bank, savings 175.2association, regulated lender, industrial loan and thrift company, credit union, motor 175.3vehicle sales finance company, debt prorating agency management services provider and 175.4insurance premium finance company organized under the laws of this state or required 175.5to be administered by the commissioner of commerce shall pay into the state treasury its 175.6proportionate share of the cost of maintaining the Department of Commerce.175.7EFFECTIVE DATE.This section is effective January 1, 2008.175.8    Sec. 7. Minnesota Statutes 2006, section 47.19, is amended to read:175.947.19 CORPORATION MAY BE MEMBER OR STOCKHOLDER OF 175.10FEDERAL AGENCY.175.11    Any corporation is hereby empowered and authorized to become a member of, 175.12or stockholder in, any such agency, and to that end to purchase stock in, or securities 175.13of, or deposit money with, such agency and/or to comply with any other conditions of 175.14membership or credit; to borrow money from such agency upon such rates of interest, not 175.15exceeding the contract rate of interest in this state, and upon such terms and conditions 175.16as may be agreed upon by such corporation and such agency, for the purpose of making 175.17loans, paying withdrawals, paying maturities, paying debts, and for any other purpose not 175.18inconsistent with the objects of the corporation; provided, that the aggregate amount of the 175.19indebtedness, so incurred by such corporation, which shall be outstanding at any time shall 175.20not exceed 25 35 percent of the then total assets of the corporation; to assign, pledge and 175.21hypothecate its bonds, mortgages or other assets; and, in case of savings associations, to 175.22repledge with such agency the shares of stock in such association which any owner thereof 175.23may have pledged as collateral security, without obtaining the consent thereunto of such 175.24owner, as security for the repayment of the indebtedness so created by such corporation 175.25and as evidenced by its note or other evidence of indebtedness given for such borrowed 175.26money; and to do any and all things which shall or may be necessary or convenient in 175.27order to comply with and to obtain the benefits of the provisions of any act of Congress 175.28creating such agency, or any amendments thereto.175.29    Sec. 8. Minnesota Statutes 2006, section 47.59, subdivision 6, is amended to read:175.30    Subd. 6. Additional charges. (a) For purposes of this subdivision, "financial 175.31institution" includes a person described in subdivision 4, paragraph (a). In addition to the 175.32finance charges permitted by this section, a financial institution may contract for and 175.33receive the following additional charges that may be included in the principal amount 175.34of the loan or credit sale unpaid balances:176.1    (1) official fees and taxes;176.2    (2) charges for insurance as described in paragraph (b);176.3    (3) with respect to a loan or credit sale contract secured by real estate, the following 176.4"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of 176.5circumvention or evasion of this section:176.6    (i) fees or premiums for title examination, abstract of title, title insurance, surveys, 176.7or similar purposes;176.8    (ii) fees for preparation of a deed, mortgage, settlement statement, or other 176.9documents, if not paid to the financial institution;176.10    (iii) escrows for future payments of taxes, including assessments for improvements, 176.11insurance, and water, sewer, and land rents;176.12    (iv) fees for notarizing deeds and other documents;176.13    (v) appraisal and credit report fees; and176.14    (vi) fees for determining whether any portion of the property is located in a flood 176.15zone and fees for ongoing monitoring of the property to determine changes, if any, 176.16in flood zone status;176.17    (4) a delinquency charge on a payment, including the minimum payment due in 176.18connection with open-end credit, not paid in full on or before the tenth day after its due 176.19date in an amount not to exceed five percent of the amount of the payment or $5.20, 176.20whichever is greater;176.21    (5) for a returned check or returned automatic payment withdrawal request, an 176.22amount not in excess of the service charge limitation in section 
         604.113, except that, on 176.23a loan transaction that is a consumer small loan as defined in section 47.60, subdivision 176.241, paragraph (a), in which cash is advanced in exchange for a personal check, the civil 176.25penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded 176.26or assessed against the borrower; and 176.27    (6) charges for other benefits, including insurance, conferred on the borrower that 176.28are of a type that is not for credit.176.29    (b) An additional charge may be made for insurance written in connection with the 176.30loan or credit sale contract, which may be included in the principal amount of the loan or 176.31credit sale unpaid balances:176.32    (1) with respect to insurance against loss of or damage to property, or against 176.33liability arising out of the ownership or use of property, if the financial institution furnishes 176.34a clear, conspicuous, and specific statement in writing to the borrower setting forth the 176.35cost of the insurance if obtained from or through the financial institution and stating that 176.36the borrower may choose the person through whom the insurance is to be obtained;177.1    (2) with respect to credit insurance or mortgage insurance providing life, accident, 177.2health, or unemployment coverage, if the insurance coverage is not required by the 177.3financial institution, and this fact is clearly and conspicuously disclosed in writing to 177.4the borrower, and the borrower gives specific, dated, and separately signed affirmative 177.5written indication of the borrower's desire to do so after written disclosure to the borrower 177.6of the cost of the insurance; and177.7    (3) with respect to the vendor's single interest insurance, but only (i) to the extent 177.8that the insurer has no right of subrogation against the borrower; and (ii) to the extent that 177.9the insurance does not duplicate the coverage of other insurance under which loss is 177.10payable to the financial institution as its interest may appear, against loss of or damage 177.11to property for which a separate charge is made to the borrower according to clause (1); 177.12and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the 177.13financial institution to the borrower setting forth the cost of the insurance if obtained from 177.14or through the financial institution and stating that the borrower may choose the person 177.15through whom the insurance is to be obtained.177.16    (c) In addition to the finance charges and other additional charges permitted by 177.17this section, a financial institution may contract for and receive the following additional 177.18charges in connection with open-end credit, which may be included in the principal 177.19amount of the loan or balance upon which the finance charge is computed:177.20    (1) annual charges, not to exceed $50 per annum, payable in advance, for the 177.21privilege of opening and maintaining open-end credit;177.22    (2) charges for the use of an automated teller machine;177.23    (3) charges for any monthly or other periodic payment period in which the borrower 177.24has exceeded or, except for the financial institution's dishonor would have exceeded, 177.25the maximum approved credit limit, in an amount not in excess of the service charge 177.26permitted in section 
         604.113; 177.27    (4) charges for obtaining a cash advance in an amount not to exceed the service 177.28charge permitted in section 
         604.113; and 177.29    (5) charges for check and draft copies and for the replacement of lost or stolen 177.30credit cards.177.31    (d) In addition to the finance charges and other additional charges permitted by this 177.32section, a financial institution may contract for and receive a onetime loan administrative 177.33fee not exceeding $25 in connection with closed-end credit, which may be included in the 177.34principal balance upon which the finance charge is computed. This paragraph applies only 177.35to closed-end credit in an original principal amount of $4,320 or less. The determination 178.1of an original principal amount must exclude the administrative fee contracted for and 178.2received according to this paragraph.178.3    Sec. 9. Minnesota Statutes 2006, section 47.60, subdivision 2, is amended to read:178.4    Subd. 2. Authorization, terms, conditions, and prohibitions. (a) In lieu of the 178.5interest, finance charges, or fees in any other law, a consumer small loan lender may 178.6charge the following:178.7    (1) on any amount up to and including $50, a charge of $5.50 may be added;178.8    (2) on amounts in excess of $50, but not more than $100, a charge may be added 178.9equal to ten percent of the loan proceeds plus a $5 administrative fee;178.10    (3) on amounts in excess of $100, but not more than $250, a charge may be 178.11added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5 178.12administrative fee;178.13    (4) for amounts in excess of $250 and not greater than the maximum in subdivision 178.141, paragraph (a), a charge may be added equal to six percent of the loan proceeds with a 178.15minimum of $17.50 plus a $5 administrative fee.178.16    (b) The term of a loan made under this section shall be for no more than 30 calendar 178.17days.178.18    (c) After maturity, the contract rate must not exceed 
         2.75 percent per month of the 178.19remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly 178.20rate in the contract for each calendar day the balance is outstanding. 178.21    (d) No insurance charges or other charges must be permitted to be charged, collected, 178.22or imposed on a consumer small loan except as authorized in this section.178.23    (e) On a loan transaction in which cash is advanced in exchange for a personal 178.24check, a return check charge may be charged as authorized by section 
         604.113, subdivision 178.252
         , paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph 178.26(b), may not be demanded or assessed against the borrower.178.27    (f) A loan made under this section must not be repaid by the proceeds of another 178.28loan made under this section by the same lender or related interest. The proceeds from a 178.29loan made under this section must not be applied to another loan from the same lender or 178.30related interest. No loan to a single borrower made pursuant to this section shall be split or 178.31divided and no single borrower shall have outstanding more than one loan with the result 178.32of collecting a higher charge than permitted by this section or in an aggregate amount of 178.33principal exceed at any one time the maximum of $350.178.34    Sec. 10. Minnesota Statutes 2006, section 47.62, subdivision 1, is amended to read:179.1    Subdivision 1. General authority. Any person may establish and maintain one 179.2or more electronic financial terminals. Any financial institution may provide for its 179.3customers the use of an electronic financial terminal by entering into an agreement with 179.4any person who has established and maintains one or more electronic financial terminals if 179.5that person authorizes use of the electronic financial terminal to all financial institutions 179.6on a nondiscriminatory basis pursuant to section 
         47.64. Electronic financial terminals to 179.7be established and maintained in this state by financial institutions located in states other 179.8than Minnesota must file a notification to the commissioner as required in this section. 179.9The notification may be in the form lawfully required by the state regulator responsible 179.10for the examination and supervision of that financial institution. If there is no such 179.11requirement, then notification must be in the form required by this section for Minnesota 179.12financial institutions.179.13    Sec. 11. Minnesota Statutes 2006, section 47.75, subdivision 1, is amended to read:179.14    Subdivision 1. Retirement, health savings, and medical savings accounts. (a) A 179.15commercial bank, savings bank, savings association, credit union, or industrial loan and 179.16thrift company may act as trustee or custodian:179.17    (1) under the Federal Self-Employed Individual Tax Retirement Act of 1962, as 179.18amended;179.19    (2) of a medical savings account under the Federal Health Insurance Portability and 179.20Accountability Act of 1996, as amended;179.21    (3) of a health savings account under the Medicare Prescription Drug, Improvement, 179.22and Modernization Act of 2003, as amended; and179.23    (4) under the Federal Employee Retirement Income Security Act of 1974, as 179.24amended.179.25    (b) The trustee or custodian may accept the trust funds if the funds are invested 179.26only in savings accounts or time deposits in the commercial bank, savings bank, savings 179.27association, credit union, or industrial loan and thrift company, except that health savings 179.28accounts may also be invested in transaction accounts. Health savings accounts invested in 179.29transaction accounts shall not be subject to the restrictions in section 48.512, subdivision 179.303. All funds held in the fiduciary capacity may be commingled by the financial institution 179.31in the conduct of its business, but individual records shall be maintained by the fiduciary 179.32for each participant and shall show in detail all transactions engaged under authority 179.33of this subdivision.179.34EFFECTIVE DATE. This section is effective the day following final enactment.180.1    Sec. 12. Minnesota Statutes 2006, section 48.15, subdivision 4, is amended to read:180.2    Subd. 4. Retirement, health savings, and medical savings accounts. (a) A state 180.3bank may act as trustee or custodian:180.4    (1) of a self-employed retirement plan under the Federal Self-Employed Individual 180.5Tax Retirement Act of 1962, as amended;180.6    (2) of a medical savings account under the Federal Health Insurance Portability and 180.7Accountability Act of 1996, as amended;180.8    (3) of a health savings account under the Medicare Prescription Drug, Improvement, 180.9and Modernization Act of 2003, as amended; and180.10    (4) of an individual retirement account under the Federal Employee Retirement 180.11Income Security Act of 1974, as amended, if the bank's duties as trustee or custodian are 180.12essentially ministerial or custodial in nature and the funds are invested only (i) in the 180.13bank's own savings or time deposits, except that health savings accounts may also be 180.14invested in transaction accounts. Health savings accounts invested in transaction accounts 180.15shall not be subject to the restrictions in section 48.512, subdivision 3; or (ii) in any 180.16other assets at the direction of the customer if the bank does not exercise any investment 180.17discretion, invest the funds in collective investment funds administered by it, or provide 180.18any investment advice with respect to those account assets.180.19    (b) Affiliated discount brokers may be utilized by the bank acting as trustee or 180.20custodian for self-directed IRAs, if specifically authorized and directed in appropriate 180.21documents. The relationship between the affiliated broker and the bank must be fully 180.22disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should 180.23be accurately disclosed. Provisions should be made for disclosure of any changes in 180.24commission rates prior to their becoming effective. The affiliated broker may not provide 180.25investment advice to the customer.180.26    (c) All funds held in the fiduciary capacity may be commingled by the financial 180.27institution in the conduct of its business, but individual records shall be maintained by 180.28the fiduciary for each participant and shall show in detail all transactions engaged under 180.29authority of this subdivision.180.30    (d) The authority granted by this section is in addition to, and not limited by, section 180.3147.75
         .180.32EFFECTIVE DATE. This section is effective the day following final enactment.180.33    Sec. 13. Minnesota Statutes 2006, section 58.04, subdivision 1, is amended to read:180.34    Subdivision 1. Residential mortgage originator licensing requirements. (a) 180.35Beginning August 1, 1999, No person shall act as a residential mortgage originator, or 181.1make residential mortgage loans without first obtaining a license from the commissioner 181.2according to the licensing procedures provided in this chapter.181.3    (b) A licensee must be either a partnership, limited liability partnership, association, 181.4limited liability company, corporation, or other form of business organization, and must 181.5have and maintain at all times one of the following: approval as a mortgagee by either the 181.6federal Department of Housing and Urban Development or the Federal National Mortgage 181.7Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety 181.8bond or irrevocable letter of credit in the amount of $50,000. Net worth, net of intangibles, 181.9must be calculated in accordance with generally accepted accounting principles.181.10    (c) The following persons are exempt from the residential mortgage originator 181.11licensing requirements:181.12    (1) an employee of one mortgage originator licensee or one person holding a 181.13certificate of exemption;181.14    (2) a person licensed as a real estate broker under chapter 82 who is not licensed to 181.15another real estate broker;181.16    (3) an individual real estate licensee who is licensed to a real estate broker as 181.17described in clause (2) if:181.18    (i) the individual licensee acts only under the name, authority, and supervision of the 181.19broker to whom the licensee is licensed;181.20    (ii) the broker to whom the licensee is licensed obtains a certificate of exemption 181.21according to section 58.05, subdivision 2; 181.22    (iii) the broker does not collect an advance fee for its residential mortgage-related 181.23activities; and181.24    (iv) the residential mortgage origination activities are incidental to the real estate 181.25licensee's primary activities as a real estate broker or salesperson;181.26    (4) an individual licensed as a property/casualty or life/health insurance agent under 181.27chapter 60K if:181.28    (i) the insurance agent acts on behalf of only one residential mortgage originator, 181.29which is in compliance with chapter 58;181.30    (ii) the insurance agent has entered into a written contract with the mortgage 181.31originator under the terms of which the mortgage originator agrees to accept responsibility 181.32for the insurance agent's residential mortgage-related activities;181.33    (iii) the insurance agent obtains a certificate of exemption under section 58.05, 181.34subdivision 2; and 181.35    (iv) the insurance agent does not collect an advance fee for the insurance agent's 181.36residential mortgage-related activities;182.1    (5) (1) a person who is not in the business of making residential mortgage loans and 182.2who makes no more than three such loans, with its own funds, during any 12-month period;182.3    (6) (2) a financial institution as defined in section 
         58.02, subdivision 10; 182.4    (7) (3) an agency of the federal government, or of a state or municipal government;182.5    (8) (4) an employee or employer pension plan making loans only to its participants;182.6    (9) (5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result 182.7of a specific order issued by a court of competent jurisdiction; or182.8    (10) (6) a person exempted by order of the commissioner.182.9    Sec. 14. Minnesota Statutes 2006, section 58.05, is amended to read:182.1058.05 EXEMPTIONS FROM LICENSE.182.11    Subdivision 1. Exempt person. An exempt person as defined by section 
         58.04, 182.12subdivision 1
         , paragraph (b) (c), and subdivision 2, paragraph (b), is exempt from the 182.13licensing requirements of this chapter, but is subject to all other provisions of this chapter. 182.14    Subd. 3. Certificate of exemption. A person must obtain a certificate of exemption 182.15from the commissioner to qualify as an exempt person under section 
         58.04, subdivision 182.161
         , paragraph (b) (c), as a real estate broker under clause (2), an insurance agent under 182.17clause (4), a financial institution under clause (6) (2), or by order of the commissioner 182.18under clause (10) (6); or under section 
         58.04, subdivision 2, paragraph (b), as a financial 182.19institution under clause (4) (3), or by order of the commissioner under clause (8) (7). 182.20    Sec. 15. Minnesota Statutes 2006, section 58.06, subdivision 2, is amended to read:182.21    Subd. 2. Application contents.(a) The application must contain the name and 182.22complete business address or addresses of the license applicant. If The license applicant is182.23must be a partnership, limited liability partnership, association, limited liability company, 182.24corporation, or other form of business organization, and the application must contain the 182.25names and complete business addresses of each partner, member, director, and principal 182.26officer. The application must also include a description of the activities of the license 182.27applicant, in the detail and for the periods the commissioner may require.182.28    (b) An applicant must submit one of the following:182.29    (1) evidence which shows, to the commissioner's satisfaction, that either the federal 182.30Department of Housing and Urban Development or the Federal National Mortgage 182.31Association has approved the applicant as a mortgagee;182.32    (2) a surety bond or irrevocable letter of credit in the amount of not less than 182.33$50,000 in a form approved by the commissioner, issued by an insurance company or bank 182.34authorized to do so in this state. The bond or irrevocable letter of credit must be available 183.1for the recovery of expenses, fines, and fees levied by the commissioner under this chapter 183.2and for losses incurred by borrowers. The bond or letter of credit must be submitted with 183.3the license application, and evidence of continued coverage must be submitted with each 183.4renewal. Any change in the bond or letter of credit must be submitted for approval by the 183.5commissioner within ten days of its execution; or183.6    (3) a copy of the applicant's most recent audited financial statement, including 183.7balance sheet, statement of income or loss, statements of changes in shareholder equity, 183.8and statement of changes in financial position. Financial statements must be as of a date 183.9within 12 months of the date of application.183.10    (c) The application must also include all of the following:183.11    (a) (1) an affirmation under oath that the applicant:183.12    (1) will maintain competent staff and adequate staffing levels, through direct 183.13employees or otherwise, to meet the requirements of this chapter; (i) is in compliance 183.14with the requirements of section 58.125;183.15    (ii) will maintain a perpetual roster of individuals employed as residential mortgage 183.16originators, including employees and independent contractors, which includes the date that 183.17mandatory initial education was completed. In addition, the roster must be made available 183.18to the commissioner on demand, within three business days of the commissioner's request;183.19    (2) (iii) will advise the commissioner of any material changes to the information 183.20submitted in the most recent application within ten days of the change;183.21    (3) (iv) will advise the commissioner in writing immediately of any bankruptcy 183.22petitions filed against or by the applicant or licensee;183.23    (4) is financially solvent; (v) will maintain at all times either a net worth, net of 183.24intangibles, of at least $250,000 or a surety bond or irrevocable letter of credit in the 183.25amount of at least $50,000;183.26    (5) (vi) complies with federal and state tax laws; and183.27    (6) (vii) complies with sections 
         345.31 to 
         345.60, the Minnesota unclaimed property 183.28law; and183.29    (7) is, or that a person in control of the license applicant is, at least 18 years of age;183.30    (b) (2) information as to the mortgage lending, servicing, or brokering experience 183.31of the applicant and persons in control of the applicant;183.32    (c) (3) information as to criminal convictions, excluding traffic violations, of persons 183.33in control of the license applicant;183.34    (d) (4) whether a court of competent jurisdiction has found that the applicant or 183.35persons in control of the applicant have engaged in conduct evidencing gross negligence, 184.1fraud, misrepresentation, or deceit in performing an act for which a license is required 184.2under this chapter;184.3    (e) (5) whether the applicant or persons in control of the applicant have been the 184.4subject of: an order of suspension or revocation, cease and desist order, or injunctive 184.5order, or order barring involvement in an industry or profession issued by this or another 184.6state or federal regulatory agency or by the Secretary of Housing and Urban Development 184.7within the ten-year period immediately preceding submission of the application; and184.8    (f) (6) other information required by the commissioner.184.9    Sec. 16. Minnesota Statutes 2006, section 58.06, is amended by adding a subdivision 184.10to read:184.11    Subd. 3.Waiver.The commissioner may, for good cause shown, waive any 184.12requirement of this section with respect to an initial license application or to permit a 184.13license applicant to submit substituted information in its license application in lieu of 184.14the information required by this section.184.15    Sec. 17. Minnesota Statutes 2006, section 58.08, subdivision 3, is amended to read:184.16    Subd. 3. Exemption.Subdivisions 1 and Subdivision 2 do does not apply to 184.17mortgage originators or mortgage servicers who are approved as seller/servicers by the 184.18Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.184.19    Sec. 18. Minnesota Statutes 2006, section 58.10, subdivision 1, is amended to read:184.20    Subdivision 1. Amounts. The following fees must be paid to the commissioner:184.21    (1) for an initial residential mortgage originator license, $850 $2,125, $50 of which 184.22is credited to the consumer education account in the special revenue fund;184.23    (2) for a renewal license, $450 $1,125, $50 of which is credited to the consumer 184.24education account in the special revenue fund;184.25    (3) for an initial residential mortgage servicer's license, $1,000;184.26    (4) for a renewal license, $500; and184.27    (5) for a certificate of exemption, $100.184.28    Sec. 19. [58.115] EXAMINATIONS.184.29    The commissioner has under this chapter the same powers with respect to 184.30examinations that the commissioner has under section 46.04, including the authority to 184.31charge for the direct costs of the examination, including travel and per diem expenses.184.32    Sec. 20. [58.126] EDUCATION REQUIREMENT.185.1    No individual shall engage in residential mortgage origination or make residential 185.2mortgage loans, whether as an employee or independent contractor, before the completion 185.3of 15 hours of educational training which has been approved by the commissioner, and 185.4covering state and federal laws concerning residential mortgage lending.185.5EFFECTIVE DATE.This section is effective March 1, 2008.185.6    Sec. 21. [59C.01] SHORT TITLE.185.7    This chapter may be cited as the Vehicle Protection Product Act.185.8EFFECTIVE DATE.This section is effective January 1, 2008.185.9    Sec. 22. [59C.02] DEFINITIONS.185.10    Subdivision 1.Terms.For purposes of this chapter, the terms defined in subdivisions 185.112 to 11 have the meanings given them.185.12    Subd. 2.Administrator."Administrator" means a third party other than the 185.13warrantor who is designated by the warrantor to be responsible for the administration 185.14of vehicle protection product warranties.185.15    Subd. 3.Commissioner."Commissioner" means the commissioner of commerce.185.16    Subd. 4.Department."Department" means the Department of Commerce.185.17    Subd. 5.Incidental costs."Incidental costs" means expenses specified in the 185.18warranty incurred by the warranty holder related to the failure of the vehicle protection 185.19product to perform as provided in the warranty. Incidental costs may include, without 185.20limitation, insurance policy deductibles, rental vehicle charges, the difference between the 185.21actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, 185.22sales taxes, registration fees, transaction fees, and mechanical inspection fees.185.23    Subd. 6.Service contract."Service contract" means a contract or agreement as 185.24regulated under chapter 59B.185.25    Subd. 7.Vehicle protection product."Vehicle protection product" means a vehicle 185.26protection device, system, or service that:185.27    (1) is installed on or applied to a vehicle;185.28    (2) is designed to prevent loss or damage to a vehicle from a specific cause; and185.29    (3) includes a written warranty. 185.30    For purposes of this section, vehicle protection product includes, without limitation, 185.31alarm systems; body part marking products; steering locks; window etch products; pedal 186.1and ignition locks; fuel and ignition kill switches; and electronic, radio, and satellite 186.2tracking devices.186.3    Subd. 8.Vehicle protection product warranty or warranty."Vehicle protection 186.4product warranty" or "warranty" means, for the purposes of this chapter, a written 186.5agreement by a warrantor that provides if the vehicle protection product fails to prevent 186.6loss or damage to a vehicle from a specific cause, that the warranty holder must be 186.7paid specified incidental costs by the warrantor as a result of the failure of the vehicle 186.8protection product to perform pursuant to the terms of the warranty.186.9    Subd. 9.Vehicle protection product warrantor or warrantor."Vehicle protection 186.10product warrantor" or "warrantor," for the purposes of this chapter, means a person who is 186.11contractually obligated to the warranty holder under the terms of the vehicle protection 186.12product warranty agreement. Warrantor does not include an authorized insurer providing a 186.13warranty reimbursement insurance policy.186.14    Subd. 10.Warranty holder."Warranty holder," for the purposes of this chapter, 186.15means the person who purchases a vehicle protection product or who is a permitted 186.16transferee.186.17    Subd. 11.Warranty reimbursement insurance policy."Warranty reimbursement 186.18insurance policy" means a policy of insurance that is issued to the vehicle protection 186.19product warrantor to provide reimbursement to, or to pay on behalf of, the warrantor all 186.20covered contractual obligations incurred by the warrantor under the terms and conditions 186.21of the insured vehicle protection product warranties sold by the warrantor.186.22EFFECTIVE DATE.This section is effective January 1, 2008.186.23    Sec. 23. [59C.03] SCOPE AND EXEMPTIONS.186.24    (a) No vehicle protection product may be sold or offered for sale in this state unless 186.25the seller, warrantor, and administrator, if any, comply with the provisions of this chapter.186.26    (b) Vehicle protection product warrantors and related vehicle protection product 186.27sellers and warranty administrators complying with this chapter are not required to comply 186.28with and are not subject to any other provision of chapters 59B to 72A, except that section 186.2972A.20, subdivision 38, shall apply to vehicle protection product warranties in the same 186.30manner it applies to service contracts.186.31    (c) Service contract providers who do not sell vehicle protection products are not 186.32subject to the requirements of this chapter and sales of vehicle protection products are 186.33exempt from the requirements of chapter 59B.187.1    (d) Warranties, indemnity agreements, and guarantees that are not provided as a part 187.2of a vehicle protection product are not subject to the provisions of this chapter.187.3EFFECTIVE DATE.This section is effective January 1, 2008.187.4    Sec. 24. [59C.04] REGISTRATION AND FILING REQUIREMENTS OF 187.5WARRANTORS.187.6    Subdivision 1.General requirement.  A person may not operate as a warrantor or 187.7represent to the public that the person is a warrantor unless the person is registered with 187.8the department on a form prescribed by the commissioner.187.9    Subd. 2.Registration records.A registrant shall file a warrantor registration 187.10record annually and shall update it within 30 days of any change. A registration record 187.11must contain the following information:187.12    (1) the warrantor's name, any fictitious names under which the warrantor does 187.13business in the state, principal office address, and telephone number;187.14    (2) the name and address of the warrantor's agent for service of process in the state if 187.15other than the warrantor;187.16    (3) the names of the warrantor's executive officer or officers directly responsible for 187.17the warrantor's vehicle protection product business;187.18    (4) the name, address, and telephone number of any administrators designated by 187.19the warrantor to be responsible for the administration of vehicle protection product 187.20warranties in this state;187.21    (5) a copy of the warranty reimbursement insurance policy or policies or other 187.22financial information required by section 59C.05;187.23    (6) a copy of each warranty the warrantor proposes to use in this state; and 187.24    (7) a statement indicating under which provision of section 59C.05 the warrantor 187.25qualifies to do business in this state as a warrantor.187.26    Subd. 3.Registration fee.The commissioner may charge each registrant a 187.27reasonable fee to offset the cost of processing the registration and maintaining the records 187.28in an amount of $250 annually. The information in subdivision 2, clauses (1) and (2), must 187.29be made available to the public.187.30    Subd. 4.Renewal.The registrant will have 30 days to complete the renewal of the 187.31registration before the commissioner suspends the registration.187.32    Subd. 5.Exception. An administrator or person who sells or solicits a sale of a 187.33vehicle protection product but who is not a warrantor shall not be required to register as a 188.1warrantor or be licensed under the insurance laws of this state to sell vehicle protection 188.2products.188.3EFFECTIVE DATE.This section is effective January 1, 2008.188.4    Sec. 25. [59C.05] FINANCIAL RESPONSIBILITY.188.5    Subdivision 1.General requirements.No vehicle protection product may be sold, 188.6or offered for sale in this state unless the warrantor meets either the requirements of 188.7subdivision 2 or 3 in order to ensure adequate performance under the warranty. No other 188.8financial security requirements or financial standards for warrantors is required.188.9    Subd. 2.Warranty reimbursement insurance policy.The vehicle protection 188.10product warrantor shall be insured under a warranty reimbursement insurance policy 188.11issued by an insurer authorized to do business in this state which provides that:188.12    (1) the insurer will pay to, or on behalf of the warrantor, 100 percent of all sums 188.13that the warrantor is legally obligated to pay according to the warrantor's contractual 188.14obligations under the warrantor's vehicle protection product warranty;188.15    (2) a true and correct copy of the warranty reimbursement insurance policy has been 188.16filed with the commissioner by the warrantor; and188.17    (3) the policy contains the provision required in section 59C.06.188.18    Subd. 3.Network or stockholder's equity.(1) The vehicle protection product 188.19warrantor, or its parent company in accordance with clause (2), shall maintain a net worth 188.20or stockholders' equity of $50,000,000; and188.21    (2) the warrantor shall provide the commissioner with a copy of the warrantor's or 188.22the warrantor's parent company's most recent Form 10-K or Form 20-F filed with the 188.23Securities and Exchange Commission within the last calendar year or, if the warrantor 188.24does not file with the Securities and Exchange Commission, a copy of the warrantor or 188.25the warrantor's parent company's audited financial statements that shows a net worth of 188.26the warrantor or its parent company of at least $50,000,000. If the warrantor's parent 188.27company's Form 10-K, Form 20-F, or audited financial statements are filed to meet 188.28the warrantor's financial stability requirement, then the parent company shall agree to 188.29guarantee the obligations of the warrantor relating to warranties issued by the warrantor in 188.30this state. The financial information provided to the commissioner under this paragraph 188.31is trade secret information for purposes of section 13.37.188.32EFFECTIVE DATE.This section is effective January 1, 2008.189.1    Sec. 26. [59C.06] WARRANTY REIMBURSEMENT POLICY 189.2REQUIREMENTS.189.3    No warranty reimbursement insurance policy may be issued, sold, or offered for sale 189.4in this state unless the policy meets the following conditions:189.5    (1) the policy states that the issuer of the policy will reimburse, or pay on behalf of 189.6the vehicle protection product warrantor, all covered sums that the warrantor is legally 189.7obligated to pay, or will provide all service that the warrantor is legally obligated to 189.8perform according to the warrantor's contractual obligations under the provisions of the 189.9insured warranties sold by the warrantor;189.10    (2) the policy states that in the event payment due under the terms of the warranty is 189.11not provided by the warrantor within 60 days after proof of loss has been filed according 189.12to the terms of the warranty by the warranty holder, the warranty holder may file directly 189.13with the warranty reimbursement insurance company for reimbursement;189.14    (3) the policy provides that a warranty reimbursement insurance company that 189.15insures a warranty is deemed to have received payment of the premium if the warranty 189.16holder paid for the vehicle protection product and the insurer's liability under the policy 189.17shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the 189.18issuance of a warranty to the insurer; and189.19    (4) the policy has the following provisions regarding cancellation of the policy:189.20    (i) the issuer of a reimbursement insurance policy shall not cancel the policy until a 189.21notice of cancellation in writing has been mailed or delivered to the commissioner and 189.22each insured warrantor;189.23    (ii) the cancellation of a reimbursement insurance policy shall not reduce the issuer's 189.24responsibility for vehicle protection products sold prior to the date of cancellation; and189.25    (iii) in the event an insurer cancels a policy that a warrantor has filed with the 189.26commissioner, the warrantor shall do either of the following:189.27    (A) file a copy of a new policy with the commissioner, before the termination of 189.28the prior policy, providing no lapse in coverage following the termination of the prior 189.29policy; or 189.30    (B) discontinue offering warranties as of the termination date of the policy until a 189.31new policy becomes effective and is accepted by the commissioner.189.32EFFECTIVE DATE.This section is effective January 1, 2008.189.33    Sec. 27. [59C.07] DISCLOSURE TO WARRANTY HOLDER.189.34    A vehicle protection product warranty must not be sold or offered for sale in this 189.35state unless the warranty:190.1    (1) states, "The obligations of the warrantor to the warranty holder are guaranteed 190.2under a warranty reimbursement insurance policy" if the warrantor elects to meet its 190.3financial responsibility obligations under section 59C.05, subdivision 2, or states "The 190.4obligations of the warrantor under this warranty are backed by the full faith and credit 190.5of the warrantor" if the warrantor elects to meet its financial responsibility obligations 190.6under section 59C.05, subdivision 3;190.7    (2) states that in the event a warranty holder must make a claim against a party other 190.8than the warranty reimbursement insurance policy issuer, the warranty holder is entitled to 190.9make a direct claim against the insurer upon the failure of the warrantor to pay any claim 190.10or meet any obligation under the terms of the warranty within 60 days after proof of loss 190.11has been filed with the warrantor, if the warrantor elects to meet its financial responsibility 190.12obligations under section 59C.05, subdivision 2;190.13    (3) states the name and address of the issuer of the warranty reimbursement 190.14insurance policy, and this information need not be preprinted on the warranty form, but 190.15may be added to or stamped on the warranty, if the warrantor elects to meet its financial 190.16responsibility obligations under section 59C.05, subdivision 2;190.17    (4) identifies the warrantor, the seller, and the warranty holder;190.18    (5) sets forth the total purchase price and the terms under which it is to be paid, 190.19however, the purchase price is not required to be preprinted on the vehicle protection 190.20product warranty and may be negotiated with the consumer at the time of sale;190.21    (6) sets forth the procedure for making a claim, including a telephone number;190.22    (7) specifies the payments or performance to be provided under the warranty 190.23including payments for incidental costs expressed as either a fixed amount specified in the 190.24warranty or sales agreement or by the use of a formula itemizing specific incidental costs 190.25incurred by the warranty holder, the manner of calculation or determination of payments 190.26or performance, and any limitations, exceptions, or exclusions;190.27    (8) sets forth all of the obligations and duties of the warranty holder such as the duty 190.28to protect against any further damage to the vehicle, the obligation to notify the warrantor 190.29in advance of any repair, or other similar requirements, if any;190.30    (9) sets forth any terms, restrictions, or conditions governing transferability and 190.31cancellation of the warranty, if any; and190.32    (10) contains a disclosure that reads substantially as follows: "This agreement is a 190.33product warranty and is not insurance."190.34EFFECTIVE DATE.This section is effective January 1, 2008.190.35    Sec. 28. [59C.08] PROHIBITED ACTS.191.1    (a) Unless licensed as an insurance company, a vehicle protection product warrantor 191.2shall not use in its name, contracts, or literature, any of the words "insurance," "casualty," 191.3"surety," "mutual," or any other words descriptive of the insurance, casualty, or surety 191.4business or deceptively similar to the name or description of any insurance or surety 191.5corporation, or any other vehicle protection product warrantor. A warrantor may use the 191.6term "guaranty" or similar word in the warrantor's name.191.7    (b) A vehicle protection product seller or warrantor may not require as a condition of 191.8financing that a retail purchaser of a motor vehicle purchase a vehicle protection product.191.9EFFECTIVE DATE.This section is effective January 1, 2008.191.10    Sec. 29. [59C.09] RECORD KEEPING.191.11    (a) All vehicle protection product warrantors shall keep accurate accounts, books, 191.12and records concerning transactions regulated under this chapter.191.13    (b) A vehicle protection product warrantor's accounts, books, and records must 191.14include:191.15    (1) copies of all vehicle protection product warranties;191.16    (2) the name and address of each warranty holder; and191.17    (3) the dates, amounts, and descriptions of all receipts, claims, and expenditures.191.18    (c) A vehicle protection product warrantor shall retain all required accounts, books, 191.19and records pertaining to each warranty holder for at least two years after the specified 191.20period of coverage has expired. A warrantor discontinuing business in this state shall 191.21maintain its records until it furnishes the commissioner satisfactory proof that it has 191.22discharged all obligations to warranty holders in this state.191.23EFFECTIVE DATE.This section is effective January 1, 2008.191.24    Sec. 30. [59C.10] COMMISSIONER'S POWERS AND DUTIES.191.25    Subdivision 1.Examination and compliance powers.The commissioner may 191.26conduct examinations of warrantors, administrators, or other persons to enforce this 191.27chapter and protect warranty holders in this state. Upon request of the commissioner, a 191.28warrantor shall make available to the commissioner all accounts, books, and records 191.29concerning vehicle protection products sold by the warrantor and transactions regulated 191.30under this chapter that are necessary to enable the commissioner to reasonably determine 191.31compliance or noncompliance with this chapter.191.32    Subd. 2.Enforcement authority.The commissioner may take action that is 191.33necessary or appropriate to enforce the provisions of this chapter and the commissioner's 192.1rules and orders and to protect warranty holders in this state. The commissioner has the 192.2enforcement authority in chapter 45 available to enforce the provisions of the chapter and 192.3the rules adopted pursuant to it.192.4EFFECTIVE DATE.This section is effective January 1, 2008.192.5    Sec. 31. [59C.12] APPLICABILITY.192.6    This chapter applies to all vehicle protection products sold or offered for sale on 192.7or after the effective date of this chapter. The failure of any person to comply with this 192.8chapter before its effective date is not admissible in any court proceeding, administrative 192.9proceeding, arbitration, or alternative dispute resolution proceeding and may not otherwise 192.10be used to prove that the action of any person or the affected vehicle protection product 192.11was unlawful or otherwise improper. The adoption of this chapter does not imply that 192.12a vehicle protection product warranty was insurance before the effective date of this 192.13chapter. Nothing in this section may be construed to require the application of the penalty 192.14provisions where this section is not applicable.192.15EFFECTIVE DATE.This section is effective January 1, 2008.192.16    Sec. 32. [60K.365] PRODUCER TRAINING REQUIREMENTS FOR 192.17LONG-TERM CARE INSURANCE PRODUCTS.192.18    (a) An individual may not sell, solicit, or negotiate long-term care insurance 192.19unless the individual is licensed as an insurance producer for accident and health or 192.20sickness insurance or life insurance and has completed an initial training course and 192.21ongoing training every 24 months thereafter. The training must meet the requirements of 192.22paragraph (b).192.23    (b) The initial training course required by this section must be no less than eight 192.24hours, and the ongoing training courses required by this section must be no less than four 192.25hours every 24 months. The courses must be approved by the commissioner and may be 192.26approved as continuing education courses under section 60K.56. The courses must consist 192.27of topics related to long-term care insurance, long-term care services, and qualified state 192.28long-term care insurance partnership programs, including, but not limited to:192.29    (1) state and federal regulations and requirements and the relationship between 192.30qualified state long-term care insurance partnership programs and other public and private 192.31coverage of long-term care services, including Medicaid/Minnesota medical assistance;192.32    (2) available long-term care services and providers;192.33    (3) changes or improvements in long-term care services or providers;192.34    (4) alternatives to the purchase of private long-term care insurance;193.1    (5) the effect of inflation on benefits and the importance of inflation protection; and193.2    (6) consumer suitability standards and guidelines.193.3    The training required by this section must not include training that is insurer or 193.4company product specific or that includes any sales or marketing information, materials, 193.5or training, other than those required by state or federal law.193.6    (c) Insurers shall obtain verification that a producer has received the training 193.7required by this section before a producer is permitted to sell, solicit, or negotiate the 193.8insurer's long-term care insurance products. Insurers shall maintain records verifying that 193.9the producer has received the training contained in this section and make that verification 193.10available to the commissioner upon request.193.11    (d) The satisfaction of these initial training requirements in any state shall be deemed 193.12to satisfy the initial training requirements of this section.193.13    (e) Nonresident producers selling partnership policies shall be expected to 193.14demonstrate knowledge about unique aspects of the Minnesota medical assistance system. 193.15An insurer offering partnership products in Minnesota shall maintain records verifying that 193.16its nonresident producers have attained the required training and make that verification 193.17available to the commissioner upon request.193.18EFFECTIVE DATE; APPLICATION.This section is effective the day following 193.19final enactment; producers have until January 1, 2008, to complete the initial training 193.20course.193.21    Sec. 33. Minnesota Statutes 2006, section 60K.55, subdivision 2, is amended to read:193.22    Subd. 2. Licensing fees. (a) In addition to fees provided for examinations and the 193.23technology surcharge required under paragraph (d), each insurance producer licensed 193.24under this chapter shall pay to the commissioner a fee of:193.25    (1) $50 for an initial life, accident and health, property, or casualty license issued to 193.26an individual insurance producer, and a fee of $50 for each renewal;193.27    (2) $50 for an initial variable life and variable annuity license issued to an individual 193.28insurance producer, and a fee of $50 for each renewal;193.29    (3) $50 for an initial personal lines license issued to an individual insurance 193.30producer, and a fee of $50 for each renewal;193.31    (4) $50 for an initial limited lines license issued to an individual insurance producer, 193.32and a fee of $50 for each renewal;193.33    (5) $200 for an initial license issued to a business entity, and a fee of $200 for each 193.34renewal; and193.35    (6) $500 for an initial surplus lines license, and a fee of $500 for each renewal.194.1    (b) Initial licenses issued under this chapter are valid for a period not to exceed 24 194.2months and expire on October 31 of the renewal year assigned by the commissioner. 194.3Each renewal insurance producer license is valid for a period of 24 months. Licensees 194.4who submit renewal applications postmarked or delivered on or before October 15 of the 194.5renewal year may continue to transact business whether or not the renewal license has been 194.6received by November 1. Licensees who submit applications postmarked or delivered 194.7after October 15 of the renewal year must not transact business after the expiration date 194.8of the license until the renewal license has been received.194.9    (c) All fees are nonreturnable, except that an overpayment of any fee may be 194.10refunded upon proper application.194.11    (d) In addition to the fees required under paragraph (a), individual insurance 194.12producers shall pay, for each initial license and renewal, a technology surcharge of up to 194.13$40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted 194.14under that section.194.15EFFECTIVE DATE.This section is effective August 31, 2007.194.16    Sec. 34. Minnesota Statutes 2006, section 80A.28, subdivision 1, is amended to read:194.17    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of 194.18$100 for every application for registration or notice filing. There shall be an additional fee 194.19of one-tenth of one percent of the maximum aggregate offering price at which the securities 194.20are to be offered in this state, and the maximum combined fees shall not exceed $300.194.21    (b) When an application for registration is withdrawn before the effective date or a 194.22preeffective stop order is entered under section 
         80A.13, subdivision 1, all but the $100 194.23filing fee shall be returned. If an application to register securities is denied, the total of all 194.24fees received shall be retained. 194.25    (c) Where a filing is made in connection with a federal covered security under 194.26section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 194.27If the filing is made in connection with redeemable securities issued by an open end 194.28management company or unit investment trust, as defined in the Investment Company 194.29Act of 1940, there is an additional annual fee of 1/20 of one percent of the maximum 194.30aggregate offering price at which the securities are to be offered in this state during the 194.31notice filing period. The fee must be paid at the time of the initial filing and thereafter 194.32in connection with each renewal no later than July 1 of each year and must be sufficient 194.33to cover the shares the issuer expects to sell in this state over the next 12 months. If 194.34during a current notice filing the issuer determines it is likely to sell shares in excess of 194.35the shares for which fees have been paid to the commissioner, the issuer shall submit an 195.1amended notice filing to the commissioner under section 
         80A.122, subdivision 1, clause 195.2(3), together with a fee of 1/20 of one percent of the maximum aggregate offering price 195.3of the additional shares. Shares for which a fee has been paid, but which have not been 195.4sold at the time of expiration of the notice filing, may not be sold unless an additional fee 195.5to cover the shares has been paid to the commissioner as provided in this section and 195.6section 
         80A.122, subdivision 4a. If the filing is made in connection with redeemable 195.7securities issued by such a company or trust, there is no maximum fee for securities filings 195.8made according to this paragraph. If the filing is made in connection with any other 195.9federal covered security under Section 18(b)(2) of the Securities Act of 1933, there is an 195.10additional fee of one-tenth of one percent of the maximum aggregate offering price at 195.11which the securities are to be offered in this state, and the combined fees shall not exceed 195.12$300. Beginning with fiscal year 2001 and continuing each fiscal year thereafter, as of the 195.13last day of each fiscal year, the commissioner shall determine the total amount of all fees 195.14that were collected under this paragraph in connection with any filings made for that fiscal 195.15year for securities of an open-end investment company on behalf of a security that is a 195.16federal covered security pursuant to section 18(b)(2) of the Securities Act of 1933. To the 195.17extent the total fees collected by the commissioner in connection with these filings exceed 195.18$25,000,000$25,600,000 in a fiscal year, the commissioner shall refund, on a pro rata 195.19basis, to all persons who paid any fees for that fiscal year, the amount of fees collected by 195.20the commissioner in excess of $25,000,000 $25,600,000. No individual refund is required 195.21of amounts of $100 or less for a fiscal year. 195.22    Sec. 35. Minnesota Statutes 2006, section 80A.65, subdivision 1, is amended to read:195.23    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of 195.24$100 for every application for registration or notice filing.  There shall be an additional fee 195.25of one-tenth of one percent of the maximum aggregate offering price at which the securities 195.26are to be offered in this state, and the maximum combined fees shall not exceed $300.195.27    (b) When an application for registration is withdrawn before the effective date 195.28or a preeffective stop order is entered under section 80A.54, all but the $100 filing fee 195.29shall be returned.  If an application to register securities is denied, the total of all fees 195.30received shall be retained.195.31    (c) Where a filing is made in connection with a federal covered security under 195.32section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 195.33If the filing is made in connection with redeemable securities issued by an open end 195.34management company or unit investment trust, as defined in the Investment Company Act 195.35of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate 196.1offering price at which the securities are to be offered in this state during the notice filing 196.2period.  The fee must be paid at the time of the initial filing and thereafter in connection 196.3with each renewal no later than July 1 of each year and must be sufficient to cover the 196.4shares the issuer expects to sell in this state over the next 12 months.  If during a current 196.5notice filing the issuer determines it is likely to sell shares in excess of the shares for which 196.6fees have been paid to the administrator, the issuer shall submit an amended notice filing 196.7to the administrator under section 80A.50, together with a fee of 1/20 of one percent of the 196.8maximum aggregate offering price of the additional shares.  Shares for which a fee has 196.9been paid, but which have not been sold at the time of expiration of the notice filing, may 196.10not be sold unless an additional fee to cover the shares has been paid to the administrator 196.11as provided in this section and section 80A.50.  If the filing is made in connection with 196.12redeemable securities issued by such a company or trust, there is no maximum fee for 196.13securities filings made according to this paragraph.  If the filing is made in connection with 196.14any other federal covered security under Section 18(b)(2) of the Securities Act of 1933, 196.15there is an additional fee of one-tenth of one percent of the maximum aggregate offering 196.16price at which the securities are to be offered in this state, and the combined fees shall not 196.17exceed $300.  Beginning with fiscal year 2001 and continuing each fiscal year thereafter, 196.18as of the last day of each fiscal year, the administrator shall determine the total amount of 196.19all fees that were collected under this paragraph in connection with any filings made for 196.20that fiscal year for securities of an open-end investment company on behalf of a security 196.21that is a federal covered security pursuant to section 18(b)(2) of the Securities Act of 196.221933.  To the extent the total fees collected by the administrator in connection with these 196.23filings exceed $25,000,000$25,600,000 in a fiscal year, the administrator shall refund, 196.24on a pro rata basis, to all persons who paid any fees for that fiscal year, the amount of 196.25fees collected by the administrator in excess of $25,000,000 $25,600,000.  No individual 196.26refund is required of amounts of $100 or less for a fiscal year.196.27    Sec. 36. Minnesota Statutes 2006, section 82.24, subdivision 1, is amended to read:196.28    Subdivision 1. Amounts. The following fees shall be paid to the commissioner:196.29    (a) a fee of $150 for each initial individual broker's license, and a fee of $100 for 196.30each renewal thereof;196.31    (b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each 196.32renewal thereof;196.33    (c) a fee of $85 for each initial real estate closing agent license, and a fee of $60 196.34for each renewal thereof;197.1    (d) a fee of $150 for each initial corporate, limited liability company, or partnership 197.2license, and a fee of $100 for each renewal thereof;197.3    (e) a fee for payment to the education, research and recovery fund in accordance 197.4with section 
         82.43; 197.5    (f) a fee of $20 for each transfer;197.6    (g) a fee of $50 for license reinstatement; and197.7    (h) a fee of $20 for reactivating a corporate, limited liability company, or partnership 197.8license without land; and197.9    (i) in addition to the fees required under this subdivision, individual licensees under 197.10clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge 197.11of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge 197.12as permitted under that section.197.13EFFECTIVE DATE; APPLICATION.This section is effective the day following 197.14final enactment and applies to new licensees effective September 1, 2007.197.15    Sec. 37. Minnesota Statutes 2006, section 82.24, subdivision 4, is amended to read:197.16    Subd. 4. Deposit of fees. Unless otherwise provided by this chapter, all fees 197.17collected under this chapter shall be deposited in the state treasury. The technology 197.18surcharge shall be deposited as required under section 45.24.197.19EFFECTIVE DATE.This section is effective the day following final enactment.197.20    Sec. 38. Minnesota Statutes 2006, section 82B.09, subdivision 1, is amended to read:197.21    Subdivision 1. Amounts.(a) The following fees must be paid to the commissioner:197.22    (1) $150 for each initial individual real estate appraiser's license; and197.23    (2) $100 for each renewal.197.24    (b) In addition to the fees required under this subdivision, individual real estate 197.25appraisers shall pay a technology surcharge of up to $40 under section 45.24, unless the 197.26commissioner has adjusted the surcharge as permitted under that section.197.27EFFECTIVE DATE.This section is effective June 30, 2007.197.28    Sec. 39. Minnesota Statutes 2006, section 118A.03, subdivision 2, is amended to read:197.29    Subd. 2. In lieu of surety bond. The following are the allowable forms of collateral 197.30in lieu of a corporate surety bond:197.31    (1) United States government Treasury bills, Treasury notes, Treasury bonds;198.1    (2) issues of United States government agencies and instrumentalities as quoted by a 198.2recognized industry quotation service available to the government entity;198.3    (3) general obligation securities of any state or local government with taxing powers 198.4which is rated "A" or better by a national bond rating service, or revenue obligation 198.5securities of any state or local government with taxing powers which is rated "AA" or 198.6better by a national bond rating service;198.7    (4) unrated general obligation securities of a local government with taxing powers 198.8may be pledged as collateral against funds deposited by that same local government entity;198.9    (5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a 198.10municipality accompanied by written evidence that the bank's public debt is rated "AA" or 198.11better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and198.12    (6) time deposits that are fully insured by any federal agency.198.13    Sec. 40. Minnesota Statutes 2006, section 239.101, subdivision 3, is amended to read:198.14    Subd. 3. Petroleum inspection fee. (a) An inspection fee is imposed (1) on 198.15petroleum products when received by the first licensed distributor, and (2) on petroleum 198.16products received and held for sale or use by any person when the petroleum products 198.17have not previously been received by a licensed distributor. The petroleum inspection 198.18fee is $1 for every 1,000 gallons received. The commissioner of revenue shall collect 198.19the fee. The revenue from 81 cents of the fee is appropriated to the commissioner of 198.20commerce for the cost of operations of the Division of Weights and Measures, petroleum 198.21supply monitoring, and the oil burner retrofit program to make grants to providers of 198.22low-income weatherization services to install renewable energy equipment in households 198.23that are eligible for weatherization assistance under Minnesota's weatherization assistance 198.24program state plan. The remainder of the fee must be deposited in the general fund.198.25    (b) The commissioner of revenue shall credit a person for inspection fees previously 198.26paid in error or for any material exported or sold for export from the state upon filing of a 198.27report as prescribed by the commissioner of revenue.198.28    (c) The commissioner of revenue may collect the inspection fee along with any 198.29taxes due under chapter 296A.198.30    Sec. 41. [325E.027] DISCRIMINATION PROHIBITION.198.31    (a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil 198.32who has signed a low-income home energy assistance program vendor agreement with the 198.33department of commerce may refuse to deliver liquid propane gas or number 1 or number 198.342 fuel oil to any person located within the dealer's or distributor's normal delivery area 198.35who receives direct grants under the low-income home energy assistance program if:199.1    (1) the person has requested delivery;199.2    (2) the dealer or distributor has product available;199.3    (3) the person requesting delivery is capable of making full payment at the time of 199.4delivery; and199.5    (4) the person is not in arrears regarding any previous fuel purchase from that dealer 199.6or distributor.199.7    (b) A dealer or distributor making delivery to a person receiving direct grants 199.8under the low-income home energy assistance program may not charge that person any 199.9additional costs or fees that would not be charged to any other customer and must make 199.10available to that person any discount program on the same basis as the dealer or distributor 199.11makes available to any other customer.199.12    Sec. 42. Minnesota Statutes 2006, section 325E.311, subdivision 6, is amended to read:199.13    Subd. 6. Telephone solicitation. "Telephone solicitation" means any voice 199.14communication over a telephone line for the purpose of encouraging the purchase or 199.15rental of, or investment in, property, goods, or services, whether the communication is 199.16made by a live operator, through the use of an automatic dialing-announcing device as 199.17defined in section 
         325E.26, subdivision 2, or by other means. Telephone solicitation 199.18does not include communications:199.19    (1) to any residential subscriber with that subscriber's prior express invitation or 199.20permission; or199.21    (2) by or on behalf of any person or entity with whom a residential subscriber has a 199.22prior or current business or personal relationship.199.23Telephone solicitation also does not include communications if the caller is identified by a 199.24caller identification service and the call is:199.25    (i) by or on behalf of an organization that is identified as a nonprofit organization 199.26under state or federal law, unless the organization is a debt management services provider 199.27defined in section 332A.02;199.28    (ii) by a person soliciting without the intent to complete, and who does not in 199.29fact complete, the sales presentation during the call, but who will complete the sales 199.30presentation at a later face-to-face meeting between the solicitor who makes the call 199.31and the prospective purchaser; or199.32    (iii) by a political party as defined under section 
         200.02, subdivision 6.199.33EFFECTIVE DATE.This section is effective January 1, 2008.199.34    Sec. 43. Minnesota Statutes 2006, section 325N.01, is amended to read:200.1325N.01 DEFINITIONS.200.2    The definitions in paragraphs (a) to (h) apply to sections 
         325N.01 to 
         325N.09. 200.3    (a) "Foreclosure consultant" means any person who, directly or indirectly, makes 200.4any solicitation, representation, or offer to any owner to perform for compensation or 200.5who, for compensation, performs any service which the person in any manner represents 200.6will in any manner do any of the following:200.7    (1) stop or postpone the foreclosure sale;200.8    (2) obtain any forbearance from any beneficiary or mortgagee;200.9    (3) assist the owner to exercise the right of reinstatement provided in section 
         580.30; 200.10    (4) obtain any extension of the period within which the owner may reinstate the 200.11owner's obligation;200.12    (5) obtain any waiver of an acceleration clause contained in any promissory note or 200.13contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;200.14    (6) assist the owner in foreclosure or loan default to obtain a loan or advance 200.15of funds;200.16    (7) avoid or ameliorate the impairment of the owner's credit resulting from the 200.17recording of a notice of default or the conduct of a foreclosure sale; or200.18    (8) save the owner's residence from foreclosure.200.19    (b) A foreclosure consultant does not include any of the following:200.20    (1) a person licensed to practice law in this state when the person renders service 200.21in the course of his or her practice as an attorney-at-law;200.22    (2) a person licensed as a debt prorater under sections 332.12 to 332.29 management 200.23services provider under chapter 332A, when the person is acting as a debt prorater200.24management services provider as defined in these sections that chapter; 200.25    (3) a person licensed as a real estate broker or salesperson under chapter 82 when the 200.26person engages in acts whose performance requires licensure under that chapter unless the 200.27person is engaged in offering services designed to, or purportedly designed to, enable the 200.28owner to retain possession of the residence in foreclosure;200.29    (4) a person licensed as an accountant under chapter 326A when the person is acting 200.30in any capacity for which the person is licensed under those provisions;200.31    (5) a person or the person's authorized agent acting under the express authority 200.32or written approval of the Department of Housing and Urban Development or other 200.33department or agency of the United States or this state to provide services;200.34    (6) a person who holds or is owed an obligation secured by a lien on any residence 200.35in foreclosure when the person performs services in connection with this obligation or lien 201.1if the obligation or lien did not arise as the result of or as part of a proposed foreclosure 201.2reconveyance;201.3    (7) any person or entity doing business under any law of this state, or of the United 201.4States relating to banks, trust companies, savings and loan associations, industrial loan and 201.5thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee 201.6which is a United States Department of Housing and Urban Development approved 201.7mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or 201.8employee of these persons or entities while engaged in the business of these persons 201.9or entities;201.10    (8) a person licensed as a residential mortgage originator or servicer pursuant to 201.11chapter 58, when acting under the authority of that license or a foreclosure purchaser as 201.12defined in section 
         325N.10; 201.13    (9) a nonprofit agency or organization that offers counseling or advice to an owner 201.14of a home in foreclosure or loan default if they do not contract for services with for-profit 201.15lenders or foreclosure purchasers; and201.16    (10) a judgment creditor of the owner, to the extent that the judgment creditor's claim 201.17accrued prior to the personal service of the foreclosure notice required by section 
         580.03, 201.18but excluding a person who purchased the claim after such personal service. 201.19    (c) "Foreclosure reconveyance" means a transaction involving:201.20    (1) the transfer of title to real property by a foreclosed homeowner during a 201.21foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or 201.22by creation of a mortgage or other lien or encumbrance during the foreclosure process 201.23that allows the acquirer to obtain title to the property by redeeming the property as 201.24a junior lienholder; and201.25    (2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest 201.26back to the foreclosed homeowner by the acquirer or a person acting in participation with 201.27the acquirer that allows the foreclosed homeowner to possess the real property following 201.28the completion of the foreclosure proceeding, which interest includes, but is not limited to, 201.29an interest in a contract for deed, purchase agreement, option to purchase, or lease.201.30    (d) "Person" means any individual, partnership, corporation, limited liability 201.31company, association, or other group, however organized.201.32    (e) "Service" means and includes, but is not limited to, any of the following:201.33    (1) debt, budget, or financial counseling of any type;201.34    (2) receiving money for the purpose of distributing it to creditors in payment or 201.35partial payment of any obligation secured by a lien on a residence in foreclosure;201.36    (3) contacting creditors on behalf of an owner of a residence in foreclosure;202.1    (4) arranging or attempting to arrange for an extension of the period within which 202.2the owner of a residence in foreclosure may cure the owner's default and reinstate his or 202.3her obligation pursuant to section 
         580.30; 202.4    (5) arranging or attempting to arrange for any delay or postponement of the time of 202.5sale of the residence in foreclosure;202.6    (6) advising the filing of any document or assisting in any manner in the preparation 202.7of any document for filing with any bankruptcy court; or202.8    (7) giving any advice, explanation, or instruction to an owner of a residence in 202.9foreclosure, which in any manner relates to the cure of a default in or the reinstatement 202.10of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of 202.11that obligation, or the postponement or avoidance of a sale of a residence in foreclosure, 202.12pursuant to a power of sale contained in any mortgage.202.13    (f) "Residence in foreclosure" means residential real property consisting of one to 202.14four family dwelling units, one of which the owner occupies as his or her principal place 202.15of residence, and against which there is an outstanding notice of pendency of foreclosure, 202.16recorded pursuant to section 
         580.032, or against which a summons and complaint has 202.17been served under chapter 581. 202.18    (g) "Owner" means the record owner of the residential real property in foreclosure at 202.19the time the notice of pendency was recorded, or the summons and complaint served.202.20    (h) "Contract" means any agreement, or any term in any agreement, between 202.21a foreclosure consultant and an owner for the rendition of any service as defined in 202.22paragraph (e).202.23EFFECTIVE DATE.This section is effective January 1, 2008.202.24    Sec. 44. Minnesota Statutes 2006, section 332.54, subdivision 7, is amended to read:202.25    Subd. 7. Fees. The fee for a credit services organization's registration is $100202.26$1,000 for issuance or renewal for each location of business.202.27EFFECTIVE DATE; APPLICATION.This section is effective July 1, 2007, and 202.28applies to registrations issued or renewed on or after that date.202.29    Sec. 45. [332A.02] DEFINITIONS.202.30    Subdivision 1.Scope.Unless a different meaning is clearly indicated by the context, 202.31for the purposes of this chapter the terms defined in this section have the meanings given 202.32them.203.1    Subd. 2.Accreditation."Accreditation" means certification as an accredited credit 203.2counseling provider by the Council on Accreditation.203.3    Subd. 3.Attorney general."Attorney general" means the attorney general of the 203.4state of Minnesota.203.5    Subd. 4.Commissioner."Commissioner" means commissioner of commerce.203.6    Subd. 5.Controlling or affiliated party."Controlling or affiliated party" means 203.7any person directly or indirectly controlling, controlled by, or under common control 203.8with another person.203.9    Subd. 6.Debt management services agreement."Debt management services 203.10agreement" means the written contract between the debt management services provider 203.11and the debtor.203.12    Subd. 7.Debt management services plan."Debt management services plan" 203.13means the debtor's individualized package of debt management services set forth in the 203.14debt management services agreement.203.15    Subd. 8.Debt management services provider."Debt management services 203.16provider" means any person offering or providing debt management services to a debtor 203.17domiciled in this state, regardless of whether or not a fee is charged for the services and 203.18regardless of whether the person maintains a physical presence in the state. This term does 203.19not include services performed by the following when engaged in the regular course of 203.20their respective businesses and professions:203.21    (1) attorneys at law, escrow agents, accountants, broker-dealers in securities;203.22    (2) state or national banks, trust companies, savings associations, title insurance 203.23companies, insurance companies, and all other lending institutions duly authorized to 203.24transact business in Minnesota, provided no fee is charged for the service;203.25    (3) persons who, as employees on a regular salary or wage of an employer not 203.26engaged in the business of debt management, perform credit services for their employer;203.27    (4) public officers acting in their official capacities and persons acting as a debt 203.28management services provider pursuant to court order;203.29    (5) any person while performing services incidental to the dissolution, winding up, 203.30or liquidation of a partnership, corporation, or other business enterprise;203.31    (6) the state, its political subdivisions, public agencies, and their employees;203.32    (7) credit unions and collection agencies, provided no fee is charged for the service;204.1    (8) "qualified organizations" designated as representative payees for purposes of the 204.2Social Security and Supplemental Security Income Representative Payee System and the 204.3federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508;204.4    (9) accelerated mortgage payment providers. "Accelerated mortgage payment 204.5providers" are persons who, after satisfying the requirements of sections 332.30 to 204.6332.303, receive funds to make mortgage payments to a lender or lenders, on behalf 204.7of mortgagors, in order to exceed regularly scheduled minimum payment obligations 204.8under the terms of the indebtedness. The term does not include: (i) persons or entities 204.9described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and 204.10thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to 204.11make loans under section 47.20, subdivision 1. For purposes of this clause and sections 204.12332.30 to 332.303, "lender" means the original lender or that lender's assignee, whichever 204.13is the current mortgage holder;204.14    (10) trustees, guardians, and conservators; and204.15    (11) debt settlement providers.204.16    Subd. 9.Debt management services."Debt management services" means the 204.17provision of any one or more of the following services in connection with debt incurred 204.18primarily for personal, family, or household services:204.19    (1) managing the financial affairs of an individual by distributing income or money 204.20to the individual's creditors; 204.21    (2) receiving funds for the purpose of distributing the funds among creditors in 204.22payment or partial payment of obligations of a debtor; or204.23    (3) adjusting, prorating, pooling, or liquidating the indebtedness of a debtor. Any 204.24person so engaged or holding out as so engaged is deemed to be engaged in the provision of 204.25debt management services regardless of whether or not a fee is charged for such services.204.26    Subd. 10.Debtor."Debtor" means the person for whom the debt prorating service 204.27is performed.204.28    Subd. 11.Person."Person" means any individual, firm, partnership, association, 204.29or corporation.204.30    Subd. 12.Registrant."Registrant" means any person registered by the 204.31commissioner pursuant to this chapter and, where used in conjunction with an act or 204.32omission required or prohibited by this chapter, shall mean any person performing debt 204.33management services.205.1    Subd. 13.Debt settlement provider."Debt settlement provider" means any person 205.2engaging in or holding out as engaging in the business of negotiating, adjusting, or settling 205.3debt incurred primarily for personal, family, or household purposes without holding or 205.4receiving the debtor's funds or personal property and without paying the debtor's funds to, 205.5or distributing the debtor's property among, creditors. The term shall not include persons 205.6listed in subdivision 8, clauses (1) to (10).205.7EFFECTIVE DATE.This section is effective January 1, 2008.205.8    Sec. 46. [332A.03] REQUIREMENT OF REGISTRATION.205.9    On or after August 1, 2007, it is unlawful for any person, whether or not located in 205.10this state, to operate as a debt management services provider or provide debt management 205.11services, including but not limited to offering, advertising, or executing or causing to 205.12be executed any debt management services or debt management services agreement, 205.13except as authorized by law without first becoming registered as provided in this 205.14chapter. A person who possesses a valid license as a debt prorater that was issued by the 205.15commissioner before August 1, 2007, is deemed to be registered as a debt management 205.16services provider until the date the debt prorater license expires, at which time the licensee 205.17must obtain a renewal as a debt management services provider in compliance with this 205.18chapter. Debt proraters who were not required to be licensed as debt proraters before 205.19August 1, 2007, may continue to provide debt management services without complying 205.20with this chapter to those debtors who entered into a contract to participate in a debt 205.21management plan before August 1, 2007, except that the debt prorater must comply with 205.22section 332A.13, subdivision 2.205.23EFFECTIVE DATE.This section is effective January 1, 2008.205.24    Sec. 47. [332A.04] REGISTRATION.205.25    Subdivision 1.Form.Application for registration to operate as a debt management 205.26services provider in this state must be made in writing to the commissioner, under oath, in 205.27the form prescribed by the commissioner, and must contain:205.28    (1) the full name of each principal of the entity applying;205.29    (2) the address, which must not be a post office box, and the telephone number and, 205.30if applicable, e-mail address, of the applicant;205.31    (3) identification of the trust account required under section 332A.13;205.32    (4) consent to the jurisdiction of the courts of this state;206.1    (5) the name and address of the registered agent authorized to accept service of 206.2process on behalf of the applicant or appointment of the commissioner as the applicant's 206.3agent for purposes of accepting service of process;206.4    (6) disclosure of:206.5    (i) whether any controlling or affiliated party has ever been convicted of a crime 206.6or found civilly liable for an offense involving moral turpitude, including forgery, 206.7embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to 206.8defraud, or any other similar offense or violation, or any violation of a federal or state law 206.9or regulation in connection with activities relating to the rendition of debt management 206.10services or involving any consumer fraud, false advertising, deceptive trade practices, or 206.11similar consumer protection law;206.12    (ii) any judgments, private or public litigation, tax liens, written complaints, 206.13administrative actions, or investigations by any government agency against the applicant 206.14or any officer, director, manager, or shareholder owning more than five percent interest 206.15in the applicant, unresolved or otherwise, filed or otherwise commenced within the 206.16preceding ten years;206.17    (iii) whether the applicant or any person employed by the applicant has had a record 206.18of having defaulted in the payment of money collected for others, including the discharge 206.19of debts through bankruptcy proceedings; and206.20    (iv) whether the applicant's license or registration to provide debt management 206.21services in any other state has ever been revoked or suspended;206.22    (7) a copy of the applicant's standard debt management services agreement that the 206.23applicant intends to execute with debtors;206.24    (8) proof of accreditation; and206.25    (9) any other information and material as the commissioner may require.206.26    Subd. 2.Term and scope of registration.The registration must remain in full force 206.27and effect for one year or until it is surrendered by the registrant or revoked or suspended 206.28by the commissioner. The registration is limited solely to the business of providing debt 206.29management services.206.30    Subd. 3.Fees.The registration application must be accompanied by payment of 206.31$1,000 as a registration fee.206.32    Subd. 4.Bond.The registration application must be accompanied by payment of 206.33the premium for a surety bond in which the applicant shall be the obligor, in a sum to be 206.34determined by the commissioner but not less than $5,000, and in which an insurance 206.35company, which is duly authorized by the state of Minnesota to transact the business of 207.1fidelity and surety insurance, shall be a surety. However, the commissioner may accept 207.2a deposit in cash, or securities that may legally be purchased by savings banks or for 207.3trust funds of an aggregate market value equal to the bond requirement, in lieu of the 207.4surety bond. The cash or securities must be deposited with the commissioner of finance. 207.5The commissioner may also require a fidelity bond in an appropriate amount covering 207.6employees of any applicant. Each branch office or additional place of business in this state 207.7of an applicant must be bonded as provided in this subdivision. In determining the bond 207.8amount necessary for the maintenance of any office, whether it is a surety bond, fidelity 207.9bond, or both, the commissioner shall consider the financial responsibility, experience, 207.10character, and general fitness of the debt management services provider and its operators 207.11and owners; the volume of business handled or proposed to be handled; the location of the 207.12office and the geographical area served or proposed to be served; and other information the 207.13commissioner may deem pertinent based upon past performance, previous examinations, 207.14annual reports, and manner of business conducted in other states.207.15    Subd. 5.Condition of bond. The bond must run to the state of Minnesota for the 207.16use of the state and of any person or persons who may have a cause of action against the 207.17obligor arising out of the obligor's activities as a debt management services provider to 207.18a debtor domiciled in this state. The bond must be conditioned that the obligor will not 207.19commit any fraudulent act and will faithfully conform to and abide by the provisions of 207.20this chapter and of all rules lawfully made by the commissioner under this chapter and 207.21pay to the state and to any such person or persons any and all money that may become 207.22due or owing to the state or to such person or persons from the obligor under and by 207.23virtue of this chapter.207.24    Subd. 6.Right of action on bond.If the registrant has failed to account to a debtor 207.25or distribute to the debtor's creditors the amounts required by this chapter and the debt 207.26management services agreement between the debtor and registrant, the debtor or the 207.27debtor's legal representative or receiver, the commissioner, or the attorney general, shall 207.28have, in addition to all other legal remedies, a right of action in the name of the debtor 207.29on the bond or the security given under this section, for loss suffered by the debtor, not 207.30exceeding the face amount of the bond or security, and without the necessity of joining 207.31the registrant in the suit or action.207.32    Subd. 7.Registrant list.The commissioner must maintain a list of registered debt 207.33management services providers. The list must be made available to the public in written 207.34form upon request and on the Department of Commerce Web site.207.35EFFECTIVE DATE.This section is effective January 1, 2008.208.1    Sec. 48. [332A.05] NONASSIGNMENT OF REGISTRATION.208.2    A registration must not be transferred or assigned without the consent of the 208.3commissioner.208.4EFFECTIVE DATE.This section is effective January 1, 2008.208.5    Sec. 49. [332A.06] RENEWAL OF REGISTRATION.208.6    Each year, each registrant under the provisions of this chapter must, not more than 208.760 nor less than 30 days before its registration is to expire, apply to the commissioner for 208.8renewal of its registration on a form prescribed by the commissioner. The application must 208.9be signed by the registrant under penalty of perjury, contain current information on all 208.10matters required in the original application, and be accompanied by a payment of $250. 208.11The registrant must maintain a continuous surety bond that satisfies the requirements of 208.12section 332A.04, subdivision 4, provided that the commissioner may require a different 208.13amount that is at least equal to the largest amount that has accrued in the registrant's trust 208.14account during the previous year. The renewal is effective for one year.208.15EFFECTIVE DATE.This section is effective January 1, 2008.208.16    Sec. 50. [332A.07] OTHER DUTIES OF REGISTRANT.208.17    Subdivision 1.Requirement to update information.A registrant must update any 208.18information required by this chapter provided in its original or renewal application not 208.19later than 90 days after the date the events precipitating the update occurred.208.20    Subd. 2.Inspection of debtor of registration.Each registrant must maintain a 208.21copy of its registration in its files. The registrant must allow a debtor, upon request, to 208.22inspect the registration.208.23EFFECTIVE DATE.This section is effective January 1, 2008.208.24    Sec. 51. [332A.08] DENIAL OF REGISTRATION.208.25    The commissioner, with notice to the applicant by certified mail sent to the address 208.26listed on the application, may deny an application for a registration upon finding that 208.27the applicant:208.28    (1) has submitted an application required under section 332A.04 that contains 208.29incorrect, misleading, incomplete, or materially untrue information. An application is 208.30incomplete if it does not include all the information required in section 332A.04;209.1    (2) has failed to pay any fee or pay or maintain any bond required by this chapter, 209.2or failed to comply with any order, decision, or finding of the commissioner made under 209.3and within the authority of this chapter;209.4    (3) has violated any provision of this chapter or any rule or direction lawfully made 209.5by the commissioner under and within the authority of this chapter;209.6    (4) or any controlling or affiliated party has ever been convicted of a crime or found 209.7civilly liable for an offense involving moral turpitude, including forgery, embezzlement, 209.8obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any 209.9other similar offense or violation, or any violation of a federal or state law or regulation 209.10in connection with activities relating to the rendition of debt management services or 209.11any consumer fraud, false advertising, deceptive trade practices, or similar consumer 209.12protection law;209.13    (5) has had a registration or license previously revoked or suspended in this state or 209.14any other state or the applicant or licensee has been permanently or temporarily enjoined 209.15by any court of competent jurisdiction from engaging in or continuing any conduct or 209.16practice involving any aspect of the debt management services provider business; or 209.17any controlling or affiliated party has been an officer, director, manager, or shareholder 209.18owning more than a ten percent interest in a debt management services provider whose 209.19registration has previously been revoked or suspended in this state or any other state, or 209.20who has been permanently or temporarily enjoined by any court of competent jurisdiction 209.21from engaging in or continuing any conduct or practice involving any aspect of the debt 209.22management services provider business;209.23    (6) has made any false statement or representation to the commissioner;209.24    (7) is insolvent;209.25    (8) refuses to fully comply with an investigation or examination of the debt 209.26management services provider by the commissioner;209.27    (9) has improperly withheld, misappropriated, or converted any money or properties 209.28received in the course of doing business;209.29    (10) has failed to have a trust account with an actual cash balance equal to or greater 209.30than the sum of the escrow balances of each debtor's account;209.31    (11) has defaulted in making payments to creditors on behalf of debtors as required 209.32by agreements between the provider and debtor; or209.33    (12) has used fraudulent, coercive, or dishonest practices, or demonstrated 209.34incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere.209.35EFFECTIVE DATE.This section is effective January 1, 2008.210.1    Sec. 52. [332A.09] SUSPENDING, REVOKING, OR REFUSING TO RENEW 210.2REGISTRATION.210.3    Subdivision 1.Procedure.The commissioner may revoke, suspend, or refuse 210.4to renew any registration issued under this chapter, or may levy a civil penalty under 210.5section 45.027, or any combination of actions, if the debt management services provider 210.6or any controlling or affiliated person has committed any act or omission for which the 210.7commissioner could have refused to issue an initial registration or renew an existing 210.8registration. Revocation of or refusal to renew a registration must be upon notice and 210.9hearing as prescribed in the Administrative Procedure Act, sections 14.57 to 14.69. The 210.10notice must set a time for hearing before the commissioner not less than 20 nor more than 210.1130 days after service of the notice, provided the registrant may waive the 20-day minimum. 210.12The commissioner may, in the notice, suspend the registration for a period not to exceed 60 210.13days. Unless the notice states that the registration is suspended, pending the determination 210.14of the main issue, the registrant may continue to transact business until the final decision of 210.15the commissioner. If the registration is suspended, the commissioner shall hold a hearing 210.16and render a final determination within ten days of a request by the registrant. If the 210.17commissioner fails to do so, the suspension shall terminate and be of no force or effect.210.18    Subd. 2.Notification of interested persons.After the notice and hearing required 210.19in subdivision 1, upon issuing an order suspending or revoking a registration or refusing to 210.20renew a registration, the commissioner may notify all individuals who have contracts with 210.21the affected registrant and all creditors who have agreed to a debt management services 210.22plan that the registration has been revoked and that the order is subject to appeal.210.23    Subd. 3.Receiver for funds of sanctioned registrant.When an order is issued 210.24revoking or refusing to renew a registration, the commissioner may apply for, and the 210.25district court must appoint, a receiver to temporarily or permanently receive the assets of 210.26the registrant pending a final determination of the validity of the order.210.27EFFECTIVE DATE.This section is effective January 1, 2008.210.28    Sec. 53. [332A.10] WRITTEN DEBT MANAGEMENT SERVICES 210.29AGREEMENT.210.30    Subdivision 1.Written agreement required.A debt management services provider 210.31may not perform any debt management services or receive any money related to a debt 210.32management services plan until the provider has obtained a debt management services 210.33agreement that contains all  terms of the agreement between the debt management services 210.34provider and the debtor. A debt management services agreement must be in writing, dated, 211.1and signed by the debt management services provider and the debtor. The registrant must 211.2furnish the debtor with a copy of the signed contract upon execution.211.3    Subd. 2.Actions prior to written agreement.No person may provide debt 211.4management services for a debtor unless the person first has:211.5    (1) provided the debtor individualized counseling and educational information 211.6that, at a minimum, addresses managing household finances, managing credit and debt, 211.7budgeting, and personal savings strategies;211.8    (2) prepared in writing and provided to the debtor, in a form that the debtor may 211.9keep, an individualized financial analysis and a proposed debt management services 211.10plan listing the debtor's known debts with specific recommendations regarding actions 211.11the debtor should take to reduce or eliminate the amount of the debts, including written 211.12disclosure that debt management services are not suitable for all debtors and that there are 211.13other ways, including bankruptcy, to deal with indebtedness;211.14    (3) made a determination supported by an individualized financial analysis that the 211.15debtor can reasonably meet the requirements of the proposed debt management services 211.16plan and that there is a net tangible benefit to the debtor of entering into the proposed debt 211.17management services plan; and211.18    (4) prepared, in a form the debtor may keep, a written list identifying all known 211.19creditors of the debtor that the provider reasonably expects to participate in the plan 211.20and the creditors, including secured creditors, that the provider reasonably expects not 211.21to participate.211.22    Subd. 3.Required terms.(a) Each debt management services agreement must 211.23contain the following terms, which must be disclosed prominently and clearly in bold print 211.24on the front page of the agreement, segregated by bold lines from all other information on 211.25the page:211.26    (1) the fee amount to be paid by the debtor and whether the initial fee amount is 211.27refundable or nonrefundable;211.28    (2) the monthly fee amount or percentage to be paid by the debtor; and211.29    (3) the total amount of fees reasonably anticipated to be paid by the debtor over 211.30the term of the agreement.211.31    (b) Each debt management services agreement must also contain the following:211.32    (1) a disclosure that if the amount of debt owed is increased by interest, late fees, 211.33over the limit fees, and other amounts imposed by the creditors, the length of the debt 211.34management services agreement will be extended and remain in force and that the total 212.1dollar charges agreed upon may increase at the rate agreed upon in the original contract 212.2agreement;212.3    (2) a prominent statement describing the terms upon which the debtor may cancel 212.4the contract as set forth in section 332A.11;212.5    (3) a detailed description of all services to be performed by the debt management 212.6services provider for the debtor;212.7    (4) the debt management services provider's refund policy; and212.8    (5) the debt management services provider's principal business address and the name 212.9and address of its agent in this state authorized to receive service of process.212.10    Subd. 4.Prohibited terms.The following terms shall not be included in the debt 212.11management services agreement:212.12    (1) a hold harmless clause;212.13    (2) a confession of judgment, or a power of attorney to confess judgment against the 212.14debtor or appear as the debtor in any judicial proceeding;212.15    (3) a waiver of the right to a jury trial, if applicable, in any action brought by 212.16or against a debtor;212.17    (4) an assignment of or an order for payment of wages or other compensation for 212.18services;212.19    (5) a provision in which the debtor agrees not to assert any claim or defense arising 212.20out of the debt management services agreement;212.21    (6) a waiver of any provision of this chapter or a release of any obligation required 212.22to be performed on the part of the debt management services provider; or212.23    (7) a mandatory arbitration clause.212.24    Subd. 5.New debt management services agreements; modification of existing 212.25agreements.(a) Separate and additional debt management services agreements that 212.26comply with this chapter may be entered into by the debt management services provider 212.27and the debtor provided that no additional initial fee may be charged by the debt 212.28management services provider.212.29    (b) Any modification of an existing debt management services agreement, including 212.30any increase in the number or amount of debts included in the debt management service, 212.31must be in writing and signed by both parties. No fees, charges, or other consideration 212.32may be demanded from the debtor for the modification, other than an increase in the 212.33amount of the monthly maintenance fee established in the original debt management 212.34services agreement.212.35EFFECTIVE DATE.This section is effective January 1, 2008.213.1    Sec. 54. [332A.11] RIGHT TO CANCEL.213.2    Subdivision 1.Debtor's right to cancel.A debtor has the right to cancel the debt 213.3management services agreement without cause at any time upon ten days' written notice to 213.4the debt management services provider. In the event of cancellation, the debt management 213.5services provider must, within ten days of the cancellation, notify the debtor's creditors of 213.6the cancellation and provide a refund of all unexpended funds paid by or for the debtor to 213.7the debt management services provider.213.8    Subd. 2.Notice of debtor's right to cancel.A debt management services 213.9agreement must contain, on its face, in an easily readable typeface immediately adjacent 213.10to the space for signature by the debtor, the following notice: "Right To Cancel: You have 213.11the right to cancel this contract at any time on ten days' written notice." 213.12    Subd. 3.Automatic termination.Upon the payment of all listed debts and 213.13fees, the debt management services agreement must automatically terminate, and all 213.14unexpended funds paid by or for the debtor to the debt management services provider 213.15must be immediately returned to the debtor.213.16    Subd. 4.Debt management services provider's right to cancel.A debt 213.17management services provider may cancel a debt management services agreement 213.18with good cause upon 30 days' written notice to the debtor. Within ten days after the 213.19cancellation, the debt management services provider must: (1) notify the debtor's creditors 213.20of the cancellation; and (2) return to the debtor all unexpended funds paid by or for the 213.21debtor.213.22EFFECTIVE DATE.This section is effective January 1, 2008.213.23    Sec. 55. [332A.12] BOOKS, RECORDS, AND INFORMATION.213.24    Subdivision 1.Records retention.Every registrant must keep, and use in the 213.25registrant's business, such books, accounts, and records, including electronic records, as 213.26will enable the commissioner to determine whether the registrant is complying with this 213.27chapter and of the rules, orders, and directives adopted by the commissioner under this 213.28chapter. Every registrant must preserve such books, accounts, and records for at least six 213.29years after making the final entry on any transaction recorded therein. Examinations of 213.30the books, records, and method of operations conducted under the supervision of the 213.31commissioner shall be done at the cost of the registrant. The cost must be assessed as 213.32determined under section 46.131.214.1    Subd. 2.Statements to debtors.Each registrant must maintain and must make 214.2available records and accounts that will enable each debtor to ascertain the amounts 214.3paid to the creditors of the debtor. A statement showing amounts received from the 214.4debtor, disbursements to each creditor, amounts which any creditor has agreed to accept 214.5as payment in full for any debt owed the creditor by the debtor, charges deducted by 214.6the registrant, and such other information as the commissioner may prescribe, must be 214.7furnished by the registrant to the debtor at least monthly and, in addition, upon any 214.8cancellation or termination of the contract. In addition to the statements required by this 214.9subdivision, each debtor must have reasonable access, without cost, by electronic or other 214.10means, to information in the registrant's files applicable to the debtor. These statements, 214.11records, and accounts must otherwise remain confidential except for duly authorized state 214.12and government officials, the commissioner, the attorney general, the debtor, and the 214.13debtor's representative and designees. Each registrant must prepare and retain in the file of 214.14each debtor a written analysis of the debtor's income and expenses to substantiate that the 214.15plan of payment is feasible and practicable.214.16EFFECTIVE DATE.This section is effective January 1, 2008.214.17    Sec. 56. [332A.13] FEES, PAYMENTS, AND CONSENT OF CREDITORS.214.18    Subdivision 1.Origination fee.The registrant may charge a nonrefundable 214.19origination fee of not more than $50, which may be retained by the registrant from the 214.20initial amount paid by the debtor to the registrant. 214.21    Subd. 2.Monthly maintenance fee.The registrant may charge a periodic fee for 214.22account maintenance or other purposes, but only if the fee is reasonable for the services 214.23provided and does not exceed the lesser of 15 percent of the monthly payment amount or 214.24$75.214.25    Subd. 3.Additional fees unauthorized.A registrant may not impose any fee or 214.26other charge or receive any funds or other payment other than the initial fee or monthly 214.27maintenance fee authorized by this section.214.28    Subd. 4.Amount of periodic payments retained.The registrant may retain as 214.29payment for the fees authorized by this section no more than 15 percent of any periodic 214.30payment made to the registrant by the debtor. The remaining 85 percent must be disbursed 214.31to listed creditors under and in accordance with the debt management services agreement. 214.32No fees or charges may be received or retained by the registrant for any handling of 214.33recurring payments. Recurring payments include current rent, mortgage, utility, telephone, 215.1maintenance as defined in section 518.27, child support, insurance premiums, and such 215.2other payments as the commissioner may by rule prescribe.215.3    Subd. 5.Advance payments.No fees or charges may be received or retained for 215.4any payments by the debtor made more than the following number of days in advance 215.5of the date specified in the debt management services agreement on which they are due: 215.6(1) 42 days in the case of contracts requiring monthly payments; (2) 15 days in the case 215.7of agreements requiring biweekly payments; or (3) seven days in the case of agreements 215.8requiring weekly payments. For those agreements which do not require payments in 215.9specified amounts, a payment is deemed an advance payment to the extent it exceeds 215.10twice the average regular payment previously made by the debtor under that contract. This 215.11subdivision does not apply when the debtor intends to use the advance payments to satisfy 215.12future payment of obligations due within 30 days under the contract. This subdivision 215.13supersedes any inconsistent provision of this chapter.215.14    Subd. 6.Consent of creditors.A registrant must actively seek to obtain the consent 215.15of all creditors to the debt management services plan set forth in the debt management 215.16services agreement. Consent by a creditor may be express and in writing, or may be 215.17evidenced by acceptance of a payment made under the debt management services plan 215.18set forth in the contract. The registrant must notify the debtor within ten days after any 215.19failure to obtain the required consent and of the debtor's right to cancel without penalty. 215.20The notice must be in a form as the commissioner shall prescribe. Nothing contained in 215.21this section is deemed to require the return of any origination fee and any fees earned by 215.22the registrant prior to cancellation or default.215.23    Subd. 7.Withdrawal of creditor.Whenever a creditor withdraws from a debt 215.24management services plan, or refuses to participate in a debt management services plan, 215.25the registrant must promptly notify the debtor of the withdrawal or refusal. In no case may 215.26this notice be provided more than 15 days after the debt management services provider 215.27learns of the creditor's decision to withdraw from or refuse to participate in a plan. This 215.28notice must include the identity of the creditor withdrawing from the plan, the amount of 215.29the monthly payment to that creditor, and the right of the debtor to cancel the agreement 215.30under section 332A.11.215.31    Subd. 8.Payments held in trust.The registrant must maintain a separate trust 215.32account and deposit in the account all payments received from the moment that they are 215.33received, except that the registrant may commingle the payment with the registrant's 215.34own property or funds, but only to the extent necessary to ensure the maintenance of a 215.35minimum balance if the financial institution at which the trust account is held requires 216.1a minimum balance to avoid the assessment of fees or penalties for failure to maintain 216.2a minimum balance. All disbursements, whether to the debtor or to the creditors of the 216.3debtor, or to the registrant, must be made from such account.216.4    Subd. 9.Timely payment of creditors.The registrant must disburse any funds paid 216.5by or on behalf of a debtor to creditors of the consumer within 42 days after receipt of 216.6the funds, or earlier if necessary to comply with the due date in the agreement between 216.7the debtor and the creditor, unless the reasonable payment of one or more of the debtor's 216.8obligations requires that the funds be held for a longer period so as to accumulate a sum 216.9certain, or where the debtor's payment is returned for insufficient funds or other reason 216.10that makes the withholding of such payments in the net interest of the debtor.216.11EFFECTIVE DATE.This section is effective January 1, 2008.216.12    Sec. 57. [332A.14] PROHIBITIONS.216.13    A registrant shall not:216.14    (1) purchase from a creditor any obligation of a debtor;216.15    (2) use, threaten to use, seek to have used, or seek to have threatened the use of any 216.16legal process, including but not limited to garnishment and repossession of personal 216.17property, against any debtor while the debt management services agreement between the 216.18registrant and the debtor remains executory;216.19    (3) advise a debtor to stop paying a creditor until a debt management services plan is 216.20in place;216.21    (4) require as a condition of performing debt management services the purchase of 216.22any services, stock, insurance, commodity, or other property or any interest therein either 216.23by the debtor or the registrant;216.24    (5) compromise any debts unless the prior written approval of the debtor has been 216.25obtained to such compromise and unless such compromise inures solely to the benefit 216.26of the debtor;216.27    (6) receive from any debtor as security or in payment of any fee a promissory note 216.28or other promise to pay or any mortgage or other security, whether as to real or personal 216.29property;216.30    (7) lend money or provide credit to any debtor if any interest or fee is charged, 216.31or directly or indirectly collect any fee for referring, advising, procuring, arranging, or 216.32assisting a consumer in obtaining any extension of credit or other debtor service from a 216.33lender or debt management services provider;216.34    (8) structure a debt management services agreement that would result in negative 216.35amortization of any debt in the plan;217.1    (9) engage in any unfair, deceptive, or unconscionable act or practice in connection 217.2with any service provided to any debtor;217.3    (10) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or other 217.4compensation to any person for referring any prospective customer to the registrant or for 217.5enrolling a debtor in a debt management services plan, or provide any other incentives 217.6for employees or agents of the debt management services provider to induce debtors to 217.7enter into a debt management services plan;217.8    (11) receive any cash, fee, gift, bonus, premium, reward, or other compensation 217.9from any person other than the debtor or a person on the debtor's behalf in connection 217.10with activities as a registrant, provided that this paragraph does not apply to a registrant 217.11which is a bona fide nonprofit corporation duly organized under chapter 317A or under 217.12the similar laws of another state;217.13    (12) enter into a contract with a debtor unless a thorough written budget analysis 217.14indicates that the debtor can reasonably meet the requirements of the financial adjustment 217.15plan and will be benefited by the plan;217.16    (13) in any way charge or purport to charge or provide any debtor credit insurance in 217.17conjunction with any contract or agreement involved in the debt management services 217.18plan;217.19    (14) operate or employ a person who is an employee or owner of a collection agency 217.20or process-serving business; or217.21    (15) solicit, demand, collect, require, or attempt to require payment of a sum that the 217.22registrant states, discloses, or advertises to be a voluntary contribution from the debtor.217.23EFFECTIVE DATE.This section is effective January 1, 2008.217.24    Sec. 58. [332A.16] ADVERTISEMENT OF DEBT MANAGEMENT SERVICES 217.25PLANS.217.26    No debt management services provider may make false, deceptive, or misleading 217.27statements or omissions about the rates, terms, or conditions of an actual or proposed 217.28debt management services plan or its debt management services, or create the likelihood 217.29of consumer confusion or misunderstanding regarding its services, including but not 217.30limited to the following:217.31    (1) represent that the debt management services provider is a nonprofit, not-for-profit, 217.32or has similar status or characteristics if some or all of the debt management services will 217.33be provided by a for-profit company that is a controlling or affiliated party to the debt 217.34management services provider; or218.1    (2) make any communication that gives the impression that the debt management 218.2services provider is acting on behalf of a government agency.218.3EFFECTIVE DATE.This section is effective January 1, 2008.218.4    Sec. 59. [332A.17] DEBT MANAGEMENT SERVICES AGREEMENT 218.5RESCISSION.218.6    Any debtor has the right to rescind any debt management services agreement with 218.7a debt management services provider that commits a material violation of this chapter. 218.8On rescission, all fees paid to the debt management services provider or any other person 218.9other than creditors of the debtor must be returned to the debtor entering into the debt 218.10management services agreement within ten days of rescission of the debt management 218.11services agreement.218.12EFFECTIVE DATE.This section is effective January 1, 2008.218.13    Sec. 60. [332A.18] ENFORCEMENT; REMEDIES.218.14    Subdivision 1.Violation a deceptive practice.A violation of any of the provisions 218.15of this chapter is considered an unfair or deceptive trade practice under section 8.31, 218.16subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in 218.17the public interest.218.18    Subd. 2.Private right of action.(a) A debt management services provider who 218.19fails to comply with any of the provisions of this chapter is liable under this section in an 218.20individual action for the sum of (i) actual, incidental, and consequential damages sustained 218.21by the debtor as a result of the failure; and (ii) statutory damages of up to $1,000.218.22    (b) A debt management services provider who fails to comply with any of the 218.23provisions of this chapter is liable to the named plaintiffs under this section in a class 218.24action for the amount that each named plaintiff could recover under paragraph (a), clause 218.25(i), and to the other class members for such amount as the court may allow.218.26    (c) In determining the amount of statutory damages, the court shall consider, among 218.27other relevant factors:218.28    (1) the frequency, nature, and persistence of noncompliance;218.29    (2) the extent to which the noncompliance was intentional; and218.30    (3) in the case of a class action, the number of debtors adversely affected.218.31    (d) A plaintiff or class successful in a legal or equitable action under this section is 218.32entitled to the costs of the action, plus reasonable attorney fees.219.1    Subd. 3.Injunctive relief.A debtor may sue a debt management services provider 219.2for temporary or permanent injunctive or other appropriate equitable relief to prevent 219.3violations of any provision of this chapter. A court must grant injunctive relief on a 219.4showing that the debt management services provider has violated any provision of this 219.5chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to 219.6prevail on allegations that the debt management services provider violated  any provision 219.7of this chapter.219.8    Subd. 4.Remedies cumulative.The remedies provided in this section are 219.9cumulative and do not restrict any remedy that is otherwise available. The provisions 219.10of this chapter are not exclusive and are in addition to any other requirements, rights, 219.11remedies, and penalties provided by law.219.12    Subd. 5.Public enforcement.The attorney general shall enforce this chapter 219.13under section 8.31.219.14EFFECTIVE DATE.This section is effective January 1, 2008.219.15    Sec. 61. [332A.19] INVESTIGATION.219.16    At any reasonable time, the commissioner may examine the books and records of 219.17every registrant and of any person engaged in the business of providing debt management 219.18services as defined in section 332A.02. The commissioner once during any calendar year 219.19may require the submission of an audit prepared by a certified public accountant of the 219.20books and records of each registrant. If the registrant has, within one year previous to the 219.21commissioner's demand, had an audit prepared for some other purpose, this audit may be 219.22submitted to satisfy the requirement of this section. The commissioner may investigate 219.23any complaint concerning violations of this chapter and may require the attendance and 219.24sworn testimony of witnesses and the production of documents.219.25EFFECTIVE DATE.This section is effective January 1, 2008.219.26    Sec. 62. LICENSE RENEWAL EXTENSION.219.27    The July 31, 2007, renewal date for mortgage originators is extended to October 30, 219.282007, because of the changes to the licensing requirements made by this article.219.29    Sec. 63. DELAYED LICENSE RENEWAL DATE FOR REAL ESTATE 219.30BROKERS AND SALESPERSONS.219.31    The June 30, 2007, renewal date for licenses of real estate brokers and salespersons 219.32is extended to August 31, 2007, due to the technology surcharge created in this act.220.1    Sec. 64.  REPEALER.220.2(a) Minnesota Statutes 2006, sections 46.043; 47.62, subdivision 5; and 58.08, 220.3subdivision 1, are repealed.220.4(b) Minnesota Statutes 2006, sections 332.12; 332.13; 332.14; 332.15; 332.16; 220.5332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 332.23; 332.24; 332.25; 332.26; 332.27; 220.6332.28; and 332.29, are repealed effective January 1, 2008."220.7Delete the title and insert:220.8"A bill for an act220.9relating to state government; appropriating money for environment, natural 220.10resources, energy, and commerce; modifying provisions related to agency service 220.11requirements, land acquisition, authorized sales, railroad prairie right-of-ways, 220.12county and municipality comprehensive plans, off-highway vehicles, prairie 220.13plant seed production, invasive species, state recreation areas, canoe routes, 220.14timber sales, mineral payments, wetlands, individual sewage treatment systems, 220.15and genetically engineered organisms; providing for venison donation, plant and 220.16tree pest control, community forest management, penalty orders, and local water 220.17management oversight; modifying disposition of certain revenue; modifying 220.18definitions; authorizing and requiring rulemaking; modifying certain license 220.19requirements; modifying and establishing certain fees and surcharges; modifying 220.20and creating certain accounts and funds; extending sunset of provisions related to 220.21sustainable forest resources and the Mineral Coordinating Committee; modifying 220.22authority of watershed district managers and soil and water conservation district 220.23supervisors; providing for ditch buffers, a clean energy program, environmental 220.24health tracking and biomonitoring, regulation of polybrominated diphenyl 220.25ethers, classification of state forests, trail designation, forest protection, and 220.26lease of certain tax-forfeited land; exempting certain exchanged land from the 220.27tax-forfeited land assurance fee; establishing a wildlife management area; 220.28designating state energy city; creating energy savings incentive and propane 220.29prepurchase programs; modifying provisions for nuclear waste storage, public 220.30utilities, cold weather rule, renewable energy research and production incentives, 220.31hydrogen energy, the Legislative Electric Energy Task Force, and energy 220.32planning; providing for intervenor compensation, low-income affordability 220.33programs, clean resource teams, hydrogen refueling station grants, and carbon 220.34sequestration studies; providing for certain power producing facilities in St. 220.35Paul and Winona; modifying or adding provisions relating to vehicle protection 220.36products, debt management services, long-term care insurance training, financial 220.37institutions, securities regulation, mortgage originators, and low-income 220.38weatherization and energy assistance programs; requiring studies and reports; 220.39providing civil penalties;amending Minnesota Statutes 2006, sections 10A.01, 220.40subdivision 35; 13.712, by adding a subdivision; 15.99, subdivision 3; 16A.531, 220.41subdivision 1a; 17.4984, subdivision 1; 18G.03, by adding a subdivision; 220.4218G.11; 45.011, subdivision 1; 46.04, subdivision 1; 46.05; 46.131, subdivision 220.432; 47.19; 47.59, subdivision 6; 47.60, subdivision 2; 47.62, subdivision 1; 220.4447.75, subdivision 1; 48.15, subdivision 4; 58.04, subdivision 1; 58.05; 58.06, 220.45subdivision 2, by adding a subdivision; 58.08, subdivision 3; 58.10, subdivision 220.461; 60K.55, subdivision 2; 80A.28, subdivision 1; 80A.65, subdivision 1; 220.4782.24, subdivisions 1, 4; 82B.09, subdivision 1; 84.025, subdivision 9; 84.026, 220.48subdivision 1; 84.027, by adding a subdivision; 84.0272, by adding a subdivision; 220.4984.0855, subdivisions 1, 2; 84.777; 84.780; 84.922, subdivisions 1a, 5; 84.927, 220.50subdivision 2; 84.963; 84D.02, by adding a subdivision; 84D.03, subdivision 1; 220.5184D.12, subdivisions 1, 3; 84D.13, subdivision 7; 84D.14; 85.013, by adding 220.52a subdivision; 85.054, by adding a subdivision; 85.32, subdivision 1; 86B.706, 221.1subdivision 2; 88.01, by adding a subdivision; 88.79, subdivisions 1, 2; 88.82; 221.289.001, subdivision 8, by adding subdivisions; 89.01, subdivisions 1, 2, 4; 89.22, 221.3subdivision 2; 89.51, subdivisions 1, 6, 9; 89.52; 89.53; 89.54; 89.55; 89.56, 221.4subdivisions 1, 3; 89.57; 89.58; 89.59; 89.60; 89.61; 89A.11; 90.161, by adding a 221.5subdivision; 93.0015, subdivision 3; 93.22, subdivision 1; 97A.045, by adding a 221.6subdivision; 97A.055, subdivision 4; 97A.065, by adding a subdivision; 97A.133, 221.7by adding a subdivision; 97A.205; 97A.405, subdivision 2; 97A.411, subdivision 221.81; 97A.451, subdivision 3a; 97A.465, by adding subdivisions; 97A.473, 221.9subdivisions 3, 5; 97A.475, subdivisions 3, 7, 11, 12, by adding a subdivision; 221.1097A.485, subdivision 7; 97B.601, subdivision 3; 97B.715, subdivision 1; 221.1197B.801; 97C.081, subdivision 3; 97C.355, subdivision 2; 103B.101, by adding 221.12a subdivision; 103C.321, by adding a subdivision; 103D.325, by adding a 221.13subdivision; 103E.021, subdivisions 1, 2, 3, by adding a subdivision; 103E.315, 221.14subdivision 8; 103E.321, subdivision 1; 103E.701, by adding a subdivision; 221.15103E.705, subdivisions 1, 2, 3; 103E.728, subdivision 2; 103G.222, subdivisions 221.161, 3; 103G.2241, subdivisions 1, 2, 3, 6, 9, 11; 103G.2242, subdivisions 2, 221.172a, 9, 12, 15; 103G.2243, subdivision 2; 103G.235; 103G.301, subdivision 2; 221.18115.55, subdivisions 1, 2, 3, by adding a subdivision; 116C.775; 116C.777; 221.19116C.779, subdivision 1; 116C.92; 116C.94, subdivision 1; 116C.97, subdivision 221.202; 118A.03, subdivision 2; 216B.097, subdivisions 1, 3; 216B.098, subdivision 4; 221.21216B.16, subdivisions 10, 15; 216B.241, subdivision 6; 216B.812, subdivisions 221.221, 2; 216C.051, subdivisions 2, 9; 216C.052, by adding a subdivision; 216C.41, 221.23subdivision 3; 219.99; 239.101, subdivision 3; 282.04, subdivision 1; 325E.311, 221.24subdivision 6; 325N.01; 332.54, subdivision 7; 394.23; 462.353, subdivision 2; 221.25Laws 2003, chapter 128, article 1, sections 167, subdivision 1, as amended; 221.26169; Laws 2006, chapter 236, article 1, section 21; proposing coding for new 221.27law in Minnesota Statutes, chapters 16C; 17; 45; 58; 60K; 84; 84D; 85; 89; 97B; 221.28103B; 103E; 103F; 144; 173; 216B; 216C; 325E; proposing coding for new law 221.29as Minnesota Statutes, chapters 59C; 332A; repealing Minnesota Statutes 2006, 221.30sections 18G.16; 46.043; 47.62, subdivision 5; 58.08, subdivision 1; 85.012, 221.31subdivision 24b; 89.51, subdivision 8; 103G.2241, subdivision 8; 216B.095; 221.32332.12; 332.13; 332.14; 332.15; 332.16; 332.17; 332.18; 332.19; 332.20; 332.21; 221.33332.22; 332.23; 332.24; 332.25; 332.26; 332.27; 332.28; 332.29; Minnesota 221.34Rules, parts 7820.1500; 7820.1600; 7820.1700; 7820.1750; 7820.1800; 221.357820.1900; 7820.2000; 7820.2100; 7820.2150; 7820.2200; 7820.2300."
         		We request the adoption of this report and repassage of the bill.Senate Conferees: (Signed) Ellen R. Anderson, Dennis R. Frederickson, Tom Saxhaug, Satveer S. Chaudhary, Patricia Torres RayHouse Conferees: (Signed) Jean Wagenius, Bill Hilty, Rick Hansen, David Dill, Dennis Ozment

222.1We request the adoption of this report and repassage of the bill.222.2Senate Conferees:
                  (Signed)222.3222.4Ellen R. AndersonDennis R. Frederickson222.5222.6Tom SaxhaugSatveer S. Chaudhary222.7222.8Patricia Torres Ray222.9House Conferees:
                  (Signed)222.10222.11Jean WageniusBill Hilty222.12222.13Rick HansenDavid Dill222.14222.15Dennis Ozment