1.1A bill for an act1.2relating to state government; appropriating money for activities of the Science 1.3Museum, the Zoological Board, the Departments of Commerce, Natural 1.4Resources, and Health, the Pollution Control Agency, the Public Utilities 1.5Commission, the Board of Water and Soil Resources, the Metropolitan Council, 1.6and the Minnesota Conservation Corps; providing for grants and fund transfers; 1.7modifying disposition of certain revenue; authorizing certain sales; modifying 1.8and creating certain accounts; modifying and establishing certain fees and 1.9surcharges; establishing an off-highway vehicle safety and conservation 1.10program; defining certain terms; providing for venison donation; providing for 1.11prairie establishment guidance; creating the Cuyuna Country State Recreation 1.12Area Citizens Advisory Council; restricting certain off-road vehicle trails; 1.13modifying state park permit requirements; modifying timber sale provisions; 1.14exempting certain exchanged land from the tax-forfeited land assurance fee; 1.15authorizing certain leases of tax-forfeited lands; modifying definition of public 1.16official; modifying agency service requirements; creating a grant program; 1.17designating a state wildlife management area; improving oversight of local 1.18government water management; modifying authority of watershed district board 1.19of managers and soil and water conservation board of supervisors; modifying 1.20provisions for wetland conservation; modifying requirements for ditch buffers; 1.21modifying provisions for individual sewage treatment systems; providing for 1.22civil enforcement; modifying provisions for regulating genetically engineered 1.23organisms; establishing requirements for acquisition of easements; modifying 1.24access to certain wetlands; modifying percentage of gasoline use attributable to 1.25all-terrain vehicles; modifying trail designation requirements; eliminating sunset 1.26of sustainable forest resources provisions; authorizing rulemaking; establishing 1.27a wildlife management area; naming an island in Pelican Lake; modifying 1.28or adding provisions relating to financial institutions, investments of health 1.29savings accounts, mortgage originators, the Vehicle Protection Product Act, 1.30long-term care insurance, automobile insurance, an electronic licensing system 1.31and technology fees, allowable forms of collateral, securities regulation, charges 1.32billed by licensed health professionals, allocation of petroleum inspection fee 1.33for low-income weatherization assistance, delivery of home heating fuel, debt 1.34management services, the state energy city, energy savings, renewable energy 1.35research, a renewable hydrogen initiative, the Legislative Electric Energy Task 1.36Force, Clean Energy Resource Teams, landfill gas recovery, on-farm biogas 1.37recovery, nuisance liability of wind energy conversion systems, rural wind 1.38energy, petroleum violation escrow funds for K-12 school energy projects, 1.39renewable energy studies and reports, standards for hydrogen and fuel cells, 2.1hydrogen refueling stations, off-site renewable distributed generation, biofuel 2.2production permits, terrestrial and geologic carbon sequestration, dry cask 2.3storage at a nuclear power plant, utility charges and residential customers, the 2.4cold weather rule, a propane prepurchase program, and intervenor compensation 2.5for participants in proceedings before the Public Utilities Commission; requiring 2.6studies and reports; providing civil penalties; making technical and clarifying 2.7changes;amending Minnesota Statutes 2006, sections 10A.01, subdivision 35; 2.813.712, by adding a subdivision; 15.99, subdivision 3; 16A.531, subdivision 2.91a; 45.011, subdivision 1; 46.04, subdivision 1; 46.05; 46.131, subdivision 2; 2.1047.19; 47.59, subdivision 6; 47.60, subdivision 2; 47.62, subdivision 1; 47.75, 2.11subdivision 1; 48.15, subdivision 4; 58.04, subdivisions 1, 2; 58.05; 58.06, 2.12subdivision 2, by adding a subdivision; 58.08, subdivision 3; 58.10, subdivision 2.131; 60K.55, subdivision 2; 65B.44, subdivisions 2, 3, 4, 5; 65B.47, subdivision 2.147; 65B.54, subdivision 1, by adding a subdivision; 80A.28, subdivision 1; 2.1580A.65, subdivision 1; 82.24, subdivisions 1, 4; 82B.09, subdivision 1; 84.025, 2.16subdivision 9; 84.026, subdivision 1; 84.0272, by adding a subdivision; 84.0855, 2.17subdivisions 1, 2; 84.780; 84.927, subdivision 2; 84.963; 84D.02, by adding 2.18a subdivision; 84D.13, subdivision 7; 85.054, subdivision 12, by adding a 2.19subdivision; 86B.706, subdivision 2; 89.22, subdivision 2; 90.161, by adding 2.20a subdivision; 93.22, subdivision 1; 97A.055, subdivision 4; 97A.065, by 2.21adding a subdivision; 97A.133, by adding a subdivision; 97A.475, subdivision 2.227, by adding a subdivision; 97A.485, subdivision 7; 97C.081, subdivision 2.233; 103B.101, by adding a subdivision; 103C.321, by adding a subdivision; 2.24103D.325, by adding a subdivision; 103E.021, subdivisions 1, 2, 3, by adding a 2.25subdivision; 103E.315, subdivision 8; 103E.321, subdivision 1; 103E.701, by 2.26adding a subdivision; 103E.705, subdivisions 1, 2, 3; 103E.728, subdivision 2.272; 103G.222, subdivisions 1, 3; 103G.2241, subdivisions 1, 2, 3, 6, 9, 11; 2.28103G.2242, subdivisions 2, 2a, 9, 12, 15; 103G.2243, subdivision 2; 103G.235; 2.29103G.301, subdivision 2; 115.55, subdivisions 1, 2, 3, by adding a subdivision; 2.30116C.779, subdivision 2; 116C.92; 116C.94, subdivision 1; 116C.97, subdivision 2.312; 118A.03, subdivision 2; 148.102, by adding a subdivision; 216B.097, 2.32subdivisions 1, 3; 216B.098, subdivision 4; 216B.16, subdivisions 10, 15; 2.33216B.241, subdivision 6; 216B.812, subdivisions 1, 2; 216C.051, subdivisions 2, 2.349; 216C.41, subdivisions 1, 2, 3; 239.101, subdivision 3; 282.04, subdivision 1; 2.35296A.18, subdivision 4; 325E.311, subdivision 6; 325N.01; 332.54, subdivision 2.367; Laws 2003, chapter 128, article 1, section 169; Laws 2006, chapter 236, article 2.371, section 21; proposing coding for new law in Minnesota Statutes, chapters 2.381; 16C; 17; 45; 58; 60K; 84; 84D; 85; 89; 97B; 103B; 103E; 216B; 216C; 2.39325E; 561; proposing coding for new law as Minnesota Statutes, chapters 59C; 2.40332A; repealing Minnesota Statutes 2006, sections 46.043; 47.62, subdivision 2.415; 58.08, subdivision 1; 89A.11; 103G.2241, subdivision 8; 216B.095; 332.12; 2.42332.13; 332.14; 332.15; 332.16; 332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 2.43332.23; 332.24; 332.25; 332.26; 332.27; 332.28; 332.29; Minnesota Rules, 2.44parts 7831.0100; 7831.0200; 7831.0300; 7831.0400; 7831.0500; 7831.0600; 2.457831.0700; 7831.0800.2.46BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.47ARTICLE 12.48ENVIRONMENT AND NATURAL RESOURCES2.49APPROPRIATIONS

2.50Section 1.  SUMMARY OF APPROPRIATIONS.

2.51    The amounts shown in this section summarize direct appropriations, by fund, made 2.52in this article.

3.120082009Total3.2General$134,588,000$137,139,000$271,727,0003.33.4State Government Special Revenue48,00048,00096,0003.5Environmental61,425,00061,622,000123,047,0003.6Natural Resources79,811,00080,820,000160,631,0003.7Game and Fish90,073,00092,032,000182,105,0003.8Remediation11,666,00011,186,00022,852,0003.9Permanent School200,000200,000400,0003.10Total$377,811,000$383,047,000$760,858,000

3.11Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.

3.12    The sums shown in the columns marked "Appropriations" are appropriated to the 3.13agencies and for the purposes specified in this article. The appropriations are from the 3.14general fund, or another named fund, and are available for the fiscal years indicated 3.15for each purpose. The figures "2008" and "2009" used in this article mean that the 3.16appropriations listed under them are available for the fiscal year ending June 30, 2008, or 3.17June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 3.18year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 3.19year ending June 30, 2007, are effective the day following final enactment.

3.20APPROPRIATIONS3.21Available for the Year3.22Ending June 303.2320082009

3.24Sec. 3. POLLUTION CONTROL AGENCY

3.25Subdivision 1.Total Appropriation$100,271,000$99,989,000

3.26Appropriations by Fund3.27200820093.28General27,232,00027,233,0003.293.30State Government Special Revenue48,00048,0003.31Environmental61,425,00061,622,0003.32Remediation11,566,00011,086,000

3.33The amounts that may be spent for each 3.34purpose are specified in the following 3.35subdivisions.

3.36Subd. 2.Water42,928,00042,248,000

4.1Appropriations by Fund4.2General23,326,00023,266,0004.34.4State Government Special Revenue48,00048,0004.5Remediation550,000-0-4.6Environmental19,004,00018,934,000

4.7$2,348,000 the first year and $2,348,000 4.8the second year are for the clean water 4.9partnership program. Any balance remaining 4.10in the first year does not cancel and 4.11is available for the second year. This 4.12appropriation may be used for grants to 4.13local units of government for the purpose 4.14of restoring impaired waters listed under 4.15section 303(d) of the federal Clean Water 4.16Act in accordance with adopted total 4.17maximum daily loads (TMDL's), including 4.18implementation of approved clean water 4.19partnership diagnostic study work plans that 4.20will assist in restoration of such impaired 4.21waters.4.22$2,324,000 the first year and $2,324,000 4.23the second year are for grants to delegated 4.24counties to administer the county feedlot 4.25program. The commissioner, in consultation 4.26with the Minnesota Association of County 4.27Feedlot Officers executive team, may use up 4.28to five percent of the annual appropriation 4.29for initiatives to enhance existing delegated 4.30county feedlot programs, information and 4.31education, or technical assistance to reduce 4.32feedlot-related pollution hazards. Any 4.33unexpended balance in the first year does not 4.34cancel but is available in the second year.4.35$335,000 the first year and $335,000 the 4.36second year are for community technical 5.1assistance and education, including grants 5.2and technical assistance to communities for 5.3local and basinwide water quality protection.5.4$405,000 the first year and $405,000 the 5.5second year are for individual sewage 5.6treatment system (ISTS) administration and 5.7grants. Of this amount, $86,000 each year 5.8is for assistance to counties through grants 5.9for ISTS program administration. Any 5.10unexpended balance in the first year does not 5.11cancel but is available in the second year.5.12$480,000 the first year and $480,000 the 5.13second year are from the environmental 5.14fund to address the need for continued 5.15increased activity in the areas of new 5.16technology review, technical assistance 5.17for local governments, and enforcement 5.18under Minnesota Statutes, sections 115.55 5.19to 115.58, and to complete the requirements 5.20of Laws 2003, chapter 128, article 1, section 5.21165. Of this amount, $48,000 each year is for 5.22administration of individual septic tank fees.5.23$375,000 the first year and $375,000 the 5.24second year are to monitor and analyze 5.25endocrine disruptors in surface waters in at 5.26least 20 additional sites. The data must be 5.27placed on the agency's Web site.5.28$15,317,000 the first year and $15,317,000 5.29the second year are to implement the 5.30requirements of Minnesota Statutes, chapter 5.31114D. Of this amount, $6,317,000 each 5.32year is for completion of ten percent of the 5.33needed statewide assessments of surface 5.34water quality and trends and $9,000,000 5.35each year is to develop TMDL's and TMDL 6.1implementation plans for waters listed on 6.2the United States Environmental Protection 6.3Agency approved impaired waters list. The 6.4agency shall complete an average of ten 6.5percent of the TMDL's each year over the 6.6next ten years.6.7$690,000 the first year and $690,000 the 6.8second year are from the environmental fund 6.9to provide regulatory services to the ethanol, 6.10mining, and other developing economic 6.11sectors. This is a onetime appropriation.6.12$88,000 the first year is for the endocrine 6.13disruptors report required to be completed 6.14under article 2.6.15$550,000 is appropriated in fiscal year 6.162008 from the remediation fund to the 6.17commissioner of the Pollution Control 6.18Agency for transfer to the commissioner 6.19of health to conduct an evaluation of point 6.20of use water treatment units at removing 6.21perfluorooctanoic acid, perfluorooctane 6.22sulfonate, and perfluorobutanoic acid from 6.23known concentrations of these compounds 6.24in drinking water. The evaluation shall be 6.25completed by December 31, 2007, and the 6.26commissioner of health may contract for 6.27services to complete the evaluation.6.28By January 15, 2008, the commissioner shall 6.29amend agency rules and, where legislative 6.30action is necessary, provide recommendations 6.31to the house of representatives and senate 6.32divisions on environmental finance on 6.33water and air fee changes that will result in 6.34revenue to the environmental fund to pay for 7.1regulatory services to the ethanol, mining, 7.2and other developing economic sectors.7.3Notwithstanding Minnesota Statutes, section 7.416A.28, the appropriations encumbered 7.5under contract on or before June 30, 2009, 7.6for clean water partnership, individual 7.7sewage treatment systems (ISTS), Minnesota 7.8River, total maximum daily loads (TMDL's), 7.9stormwater contracts or grants, and local and 7.10basinwide water quality protection contracts 7.11or grants in this subdivision are available 7.12until June 30, 2011.

7.13Subd. 3.Air10,623,00010,890,000

7.14Appropriations by Fund7.15Environmental10,623,00010,890,000

7.16Up to $150,000 the first year and $150,000 7.17the second year may be transferred from the 7.18environmental fund to the small business 7.19environmental improvement loan account 7.20established in Minnesota Statutes, section 7.21116.993.7.22$200,000 the first year and $200,000 the 7.23second year are from the environmental fund 7.24for a monitoring program under Minnesota 7.25Statutes, section 116.454.7.26$125,000 the first year and $125,000 the 7.27second year are from the environmental fund 7.28for monitoring ambient air for hazardous 7.29pollutants in the metropolitan area.7.30$760,000 the first year and $760,000 the 7.31second year are from the environmental fund 7.32to provide regulatory services to the ethanol, 7.33mining, and other developing economic 7.34sectors. This is a onetime appropriation.

8.1Subd. 4.Land18,081,00018,151,000

8.2Appropriations by Fund8.3Environmental7,065,0007,065,0008.4Remediation11,016,00011,086,000

8.5All money for environmental response, 8.6compensation, and compliance in the 8.7remediation fund not otherwise appropriated 8.8is appropriated to the commissioners of the 8.9Pollution Control Agency and agriculture 8.10for purposes of Minnesota Statutes, section 8.11115B.20, subdivision 2, clauses (1), (2), 8.12(3), (6), and (7). At the beginning of each 8.13fiscal year, the two commissioners shall 8.14jointly submit an annual spending plan 8.15to the commissioner of finance and the 8.16house and senate chairs of environment and 8.17natural resources finance that maximizes the 8.18utilization of resources and appropriately 8.19allocates the money between the two 8.20departments. This appropriation is available 8.21until June 30, 2009.8.22$3,616,000 the first year and $3,616,000 8.23the second year are transferred from the 8.24petroleum tank fund to the remediation fund 8.25for appropriation to the commissioner for 8.26purposes of the leaking underground storage 8.27tank program to protect the land.8.28$252,000 the first year and $252,000 the 8.29second year are from the remediation fund to 8.30be transferred to the Department of Health 8.31for health assessments, drinking water 8.32advisories, and public information activities 8.33for areas contaminated by hazardous releases.

8.34Subd. 5.Multimedia4,879,0004,911,000

9.1Appropriations by Fund9.2General2,288,0002,320,0009.3Environmental2,591,0002,591,000

9.4$550,000 the first year and $550,000 the 9.5second year are from the environmental fund 9.6to provide regulatory services to the ethanol, 9.7mining, and other developing economic 9.8sectors. This is a onetime appropriation.9.9Notwithstanding Minnesota Statutes, section 9.1016A.28, the appropriations encumbered 9.11under contract on or before June 30, 2009, for 9.12total maximum daily load (TMDL) contracts 9.13or grants are available until June 30, 2011.

9.14Subd. 6.Environmental Assistance22,142,00022,142,000

9.15$14,000,000 each year is from the 9.16environmental fund for SCORE block grants 9.17to counties.9.18Any unencumbered grant and loan balances 9.19in the first year do not cancel but are available 9.20for grants and loans in the second year.9.21All money deposited in the environmental 9.22fund for the metropolitan solid waste landfill 9.23fee under Minnesota Statutes, section 9.24473.843, and not otherwise appropriated, is 9.25appropriated to the agency for the purposes 9.26of Minnesota Statutes, section 473.844.9.27$119,000 the first year and $119,000 the 9.28second year are from the environmental 9.29fund for environmental assistance grants 9.30or loans under Minnesota Statutes, section 9.31115A.0716.9.32$1,200,000 the first year and $1,200,000 the 9.33second year are from the environmental fund 9.34to retrofit school buses statewide, including 10.1buses for preschool children, and for loans to 10.2small trucking firms to install equipment to 10.3reduce fuel consumption. This is a onetime 10.4appropriation.10.5Notwithstanding Minnesota Statutes, section 10.616A.28, the appropriations encumbered 10.7under contract on or before June 30, 10.82009, for environmental assistance grants 10.9awarded under Minnesota Statutes, section 10.10115A.0716, and for technical and research 10.11assistance under Minnesota Statutes, 10.12section 115A.152, technical assistance 10.13under Minnesota Statutes, section 115A.52, 10.14and pollution prevention assistance under 10.15Minnesota Statutes, section 115D.04, are 10.16available until June 30, 2011.

10.17Subd. 7.Administrative Support1,618,0001,647,000

10.18The commissioner may transfer money from 10.19the environmental fund to the remediation 10.20fund as necessary for the purposes of the 10.21remediation fund under Minnesota Statutes, 10.22section 116.155, subdivision 2.

10.23Sec. 4. NATURAL RESOURCES

10.24Subdivision 1.Total Appropriation$ 245,711,000$ 250,870,000

10.25Appropriations by Fund10.262008200910.27General80,587,00082,778,00010.28Natural Resources 74,751,00075,760,00010.29Game and Fish90,073,00092,032,00010.30Remediation100,000100,00010.31Permanent School200,000200,000

10.32The amounts that may be spent for each 10.33purpose are specified in the following 10.34subdivisions.

11.111.2Subd. 2.Land and Mineral Resources Management11,461,00011,448,000

11.3Appropriations by Fund11.4General6,347,0006,406,00011.5Natural Resources3,551,0003,447,00011.6Game and Fish1,363,0001,395,00011.7Permanent School200,000200,000

11.8$475,000 the first year and $475,000 the 11.9second year are for iron ore cooperative 11.10research. Of this amount, $200,000 each year 11.11is from the minerals management account in 11.12the natural resources fund and $275,000 each 11.13year is from the general fund. $237,500 the 11.14first year and $237,500 the second year are 11.15available only as matched by $1 of nonstate 11.16money for each $1 of state money. The 11.17match may be cash or in-kind.11.18$86,000 the first year and $86,000 the 11.19second year are for minerals cooperative 11.20environmental research, of which $43,000 11.21the first year and $43,000 the second year are 11.22available only as matched by $1 of nonstate 11.23money for each $1 of state money. The 11.24match may be cash or in-kind.11.25$2,800,000 the first year and $2,696,000 11.26the second year are from the minerals 11.27management account in the natural resources 11.28fund for use as provided in Minnesota 11.29Statutes, section 93.2236, paragraph (c).11.30$200,000 the first year and $200,000 the 11.31second year are from the state forest suspense 11.32account in the permanent school fund to 11.33accelerate land exchanges, land sales, and 11.34commercial leasing of school trust lands and 11.35to identify, evaluate, and lease construction 11.36aggregate located on school trust lands. This 12.1appropriation is to be used for securing 12.2maximum long-term economic return 12.3from the school trust lands consistent with 12.4fiduciary responsibilities and sound natural 12.5resources conservation and management 12.6principles.12.7$15,000 the first year is for a report 12.8by February 1, 2008, to the house and 12.9senate committees with jurisdiction over 12.10environment and natural resources on 12.11proposed minimum legal and conservation 12.12standards that could be applied to 12.13conservation easements acquired with public 12.14money.12.15$701,000 the first year and $701,000 the 12.16second year are to support the land records 12.17management system. Of this amount, 12.18$326,000 the first year and $326,000 the 12.19second year are from the game and fish fund 12.20and $375,000 the first year and $375,000 the 12.21second year are from the natural resources 12.22fund.

12.23Subd. 3.Water Resources Management12,931,00013,116,000

12.24Appropriations by Fund12.25General12,651,00012,836,00012.26Natural Resources280,000280,000

12.27$310,000 the first year and $310,000 the 12.28second year are for grants for up to 50 12.29percent of the cost of implementing the Red 12.30River mediation agreement.12.31$65,000 the first year and $65,000 the 12.32second year are for a grant to the Mississippi 12.33Headwaters Board for up to 50 percent of 12.34the cost of implementing the comprehensive 13.1plan for the upper Mississippi within areas 13.2under the board's jurisdiction.13.3$5,000 the first year and $5,000 the second 13.4year are for payment to the Leech Lake Band 13.5of Chippewa Indians to implement the band's 13.6portion of the comprehensive plan for the 13.7upper Mississippi.13.8$200,000 the first year and $200,000 the 13.9second year are for the construction of ring 13.10dikes under Minnesota Statutes, section 13.11103F.161. The ring dikes may be publicly 13.12or privately owned. Any unencumbered 13.13balance does not cancel at the end of the 13.14first year and is available for the second 13.15year. If the appropriation in the first year is 13.16insufficient, the appropriation for the second 13.17year is available in the first year.13.18$1,280,000 the first year and $1,280,000 the 13.19second year are to support the identification 13.20of impaired waters and develop plans to 13.21address those impairments, as required by the 13.22federal Clean Water Act. This is a onetime 13.23appropriation.

13.24Subd. 4.Forest Management41,148,00041,930,000

13.25Appropriations by Fund13.26General22,858,00023,273,00013.27Natural Resources18,033,00018,393,00013.28Game and Fish257,000264,000

13.29$7,217,000 the first year and $7,217,000 13.30the second year are for prevention, 13.31presuppression, and suppression costs of 13.32emergency firefighting and other costs 13.33incurred under Minnesota Statutes, section 13.3488.12. If the appropriation for either 13.35year is insufficient to cover all costs of 14.1presuppression and suppression, the amount 14.2necessary to pay for these costs during the 14.3biennium is appropriated from the general 14.4fund.14.5By November 15 of each year, the 14.6commissioner of natural resources shall 14.7submit a report to the chairs of the house 14.8and senate committees and divisions having 14.9jurisdiction over environment and natural 14.10resources finance, identifying all firefighting 14.11costs incurred and reimbursements received 14.12in the prior fiscal year. These appropriations 14.13may not be transferred. Any reimbursement 14.14of firefighting expenditures made to the 14.15commissioner from any source other than 14.16federal mobilizations shall be deposited into 14.17the general fund.14.18$17,983,000 the first year and $18,293,000 14.19the second year are from the forest 14.20management investment account in the 14.21natural resources fund for only the purposes 14.22specified in Minnesota Statutes, section 14.2389.039, subdivision 2.14.24$780,000 the first year and $780,000 the 14.25second year are for the Forest Resources 14.26Council for implementation of the 14.27Sustainable Forest Resources Act.14.28$350,000 the first year and $350,000 the 14.29second year are for the FORIST timber 14.30management information system, other 14.31information systems, and for increased 14.32forestry management. The amount in the 14.33second year is also available in the first year.14.34$257,000 the first year and $264,000 the 14.35second year are from the game and fish 15.1fund to implement ecological classification 15.2systems (ECS) standards on forested 15.3landscapes. This appropriation is from 15.4revenue deposited in the game and fish fund 15.5under Minnesota Statutes, section 297A.94, 15.6paragraph (e), clause (1).15.7$55,000 the first year and $55,000 the 15.8second year are to develop and implement 15.9a statewide information and education 15.10campaign regarding the proposed statewide 15.11ban on the transport, storage, or use of 15.12nonapproved firewood on state administered 15.13land.15.14$75,000 the first year is to the Forest 15.15Resources Council for a task force on 15.16forest protection and $75,000 the second 15.17year is appropriated to the commissioner 15.18for grants to cities, counties, townships, 15.19special recreation areas, and park and 15.20recreation boards in cities of the first class 15.21for the identification, removal, disposal, and 15.22replacement of dead or dying shade trees 15.23lost to forest pests or disease. For purposes 15.24of this section, "shade tree" means a woody 15.25perennial grown primarily for aesthetic or 15.26environmental purposes with minimal to 15.27residual timber value. The commissioner 15.28shall consult with municipalities; park and 15.29recreation boards in cities of the first class; 15.30nonprofit organizations; and other interested 15.31parties in developing eligibility criteria.15.32$50,000 the first year and $100,000 the 15.33second year are from the natural resources 15.34fund for forest road maintenance in support 15.35of all-terrain vehicle trails.

16.1Subd. 5.Parks and Recreation Management35,141,00035,959,000

16.2Appropriations by Fund16.3General20,560,00020,923,00016.4Natural Resources14,581,00015,036,000

16.5$640,000 the first year and $640,000 the 16.6second year are from the water recreation 16.7account in the natural resources fund for state 16.8park water access projects.16.9$3,996,000 the first year and $3,996,000 the 16.10second year are from the natural resources 16.11fund for state park and recreation area 16.12operations. This appropriation is from the 16.13revenue deposited in the natural resources 16.14fund under Minnesota Statutes, section 16.15297A.94, paragraph (e), clause (2).16.16$5,000 each year is for payment of expenses 16.17of the Cuyuna Country State Recreation Area 16.18Citizens Advisory Council.16.19The commissioner of natural resources, in 16.20consultation with the local elected officials 16.21and citizens of Meeker County, shall develop 16.22a plan for Greenleaf Lake State Recreation 16.23Area. The commissioner shall submit the 16.24plan to the legislative committees with 16.25jurisdiction over state parks and capital 16.26investment by February 1, 2008.16.27The appropriation in Laws 2003, chapter 16.28128, article 1, section 5, subdivision 6, from 16.29the water recreation account in the natural 16.30resources fund for a cooperative project with 16.31the United States Army Corps of Engineers 16.32to develop the Mississippi Whitewater Park 16.33is available until June 30, 2009.

16.34Subd. 6.Trails and Waterways Management 29,942,00030,147,000

17.1Appropriations by Fund17.2General2,528,0002,548,00017.3Natural Resources 25,295,00025,405,00017.4Game and Fish2,119,0002,194,000

17.5$8,424,000 the first year and $8,424,000 17.6the second year are from the snowmobile 17.7trails and enforcement account in the natural 17.8resources fund for snowmobile grants-in-aid. 17.9The additional money under this paragraph 17.10may be used for new grant-in-aid trails. Any 17.11unencumbered balance does not cancel at the 17.12end of the first year and is available for the 17.13second year.17.14$1,140,000 the first year and $1,132,000 the 17.15second year are from the natural resources 17.16fund for off-highway vehicle grants-in-aid. 17.17Of this amount, $790,000 the first year 17.18and $882,000 the second year are from the 17.19all-terrain vehicle account; $150,000 each 17.20year is from the off-highway motorcycle 17.21account; and $200,000 the first year and 17.22$100,000 the second year are from the 17.23off-road vehicle account. Any unencumbered 17.24balance does not cancel at the end of the first 17.25year and is available for the second year.17.26$261,000 the first year and $261,000 the 17.27second year are from the water recreation 17.28account in the natural resources fund for a 17.29safe harbor program on Lake Superior.17.30$742,000 the first year and $760,000 17.31the second year are from the natural 17.32resources fund for state trail operations 17.33and maintenance. The money may be used 17.34for trail maintenance, signage, mapping, 17.35interpretation, native prairie restoration 18.1using best management practices, and 18.2maintenance of nonmotorized forest trails. 18.3This appropriation is from the revenue 18.4deposited in the natural resources fund 18.5under Minnesota Statutes, section 297A.94, 18.6paragraph (e), clause (2).18.7$32,000 the first year and $107,000 the 18.8second year are from the game and fish fund 18.9and is added to the base for expenditures 18.10on water access sites according to the 18.11requirements of the federal sport and fish 18.12restoration program.

18.13Subd. 7.Fish and Wildlife Management67,072,00068,394,000

18.14Appropriations by Fund18.15General3,255,0003,255,00018.16Natural Resources1,876,0001,876,00018.17Game and Fish61,941,00063,263,000

18.18$410,000 the first year and $418,000 the 18.19second year are for resource population 18.20surveys in the 1837 treaty area. Of this 18.21amount, $274,000 the first year and $288,000 18.22the second year are from the game and fish 18.23fund.18.24$8,061,000 the first year and $8,167,000 18.25the second year are from the heritage 18.26enhancement account in the game and 18.27fish fund for only the purposes specified 18.28in Minnesota Statutes, section 297A.94, 18.29paragraph (e), clause (1). Of this amount, 18.30$1,175,000 the first year and $1,175,000 the 18.31second year are for preserving, restoring, and 18.32enhancing grassland/wetland complexes on 18.33public lands.18.34Notwithstanding Minnesota Statutes, section 18.3584.943, $13,000 the first year and $13,000 19.1the second year from the critical habitat 19.2private sector matching account may be used 19.3to publicize the critical habitat license plate 19.4match program.19.5$8,000 the first year and $8,000 the second 19.6year are appropriated from the game and 19.7fish fund for transfer to the wild turkey 19.8management account for purposes specified 19.9in Minnesota Statutes, section 97A.075, 19.10subdivision 5.19.11$108,000 the first year and $108,000 the 19.12second year are from the game and fish 19.13fund for costs associated with administering 19.14fishing contest permits.19.15$182,000 the first year and $132,000 the 19.16second year are to accelerate wildlife health 19.17programs and to prevent the spread of 19.18disease from livestock and poultry to the 19.19wildlife population. $50,000 in the first 19.20year is for fencing cattle-feeding areas in 19.21bovine tuberculosis control zones, under the 19.22emergency deterrent materials assistance 19.23program in Minnesota Statutes, section 19.2497A.028, subdivision 3. This appropriation 19.25is available until June 30, 2009. $66,000 of 19.26this amount is permanent.19.27$575,000 the first year and $575,000 the 19.28second year are for preserving, restoring, and 19.29enhancing grassland/wetland complexes on 19.30public lands.19.31$150,000 the first year and $150,000 the 19.32second year are from the game and fish fund 19.33to expand the roadsides for wildlife program.19.34$175,000 the first year and $175,000 the 19.35second year are appropriated from the game 20.1and fish fund to the commissioner of natural 20.2resources for grants to Let's Go Fishing 20.3of Minnesota to promote opportunities 20.4for fishing. The grants must be matched 20.5equally with cash or in-kind contributions 20.6from nonstate sources. This is a onetime 20.7appropriation.20.8Notwithstanding Minnesota Statutes, section 20.916A.28, the appropriations encumbered 20.10under contract on or before June 30, 2009, for 20.11aquatic restoration grants and wildlife habitat 20.12grants are available until June 30, 2010.

20.13Subd. 8.Ecological Services14,201,00015,404,000

20.14Appropriations by Fund20.15General6,831,0007,934,00020.16Natural Resources3,488,0003,519,00020.17Game and Fish3,882,0003,951,000

20.18$1,192,000 the first year and $1,223,000 the 20.19second year are from the nongame wildlife 20.20management account in the natural resources 20.21fund for the purpose of nongame wildlife 20.22management. Notwithstanding Minnesota 20.23Statutes, section 290.431, $100,000 the first 20.24year and $100,000 the second year may be 20.25used for nongame information, education, 20.26and promotion.20.27$1,612,000 the first year and $1,636,000 20.28the second year are from the heritage 20.29enhancement account in the game and 20.30fish fund for only the purposes specified 20.31in Minnesota Statutes, section 297A.94, 20.32paragraph (e), clause (1), on public lands.20.33$2,765,000 in the first year and $3,985,000 20.34in the second year, of which $1,795,000 the 20.35first year and $1,795,000 the second year 21.1are from the invasive species account in the 21.2natural resources fund for law enforcement 21.3and water access inspection to prevent the 21.4spread of invasive species, grants to manage 21.5invasive plants in public waters, technical 21.6assistance to grant applicants for improving 21.7lake quality, and management of terrestrial 21.8invasive species on state-administered lands. 21.9Priority shall be given to preventing the 21.10spread of aquatic invertebrates. Of this 21.11amount, $250,000 the first year and $250,000 21.12the second year are for a zebra mussel pilot 21.13program. This is a onetime appropriation. 21.14An applicant for a grant to manage invasive 21.15plants in public waters must have a workable 21.16plan for improving water quality and 21.17reducing the need for additional treatment. 21.18Grants may not be made for chemicals that 21.19are likely endocrine disruptors. A plan to 21.20prevent the introduction of asian carp into 21.21Minnesota waters must be made available to 21.22the public by November 1, 2007.21.23$125,000 the first year is to support a 21.24technical advisory committee and for land 21.25management units that manage grass lands 21.26in order to develop plans to optimize 21.27native prairie seed harvest and replanting 21.28on state-owned lands. The work must 21.29use best management practices with an 21.30outcome of ensuring the survival of the 21.31native prairie remaining in Minnesota and to 21.32estimate the value of the seeds. Maximizing 21.33seed harvest may include allowing seed 21.34producers to keep a portion of the seed as 21.35compensation for supplying equipment and 21.36labor. The Department of Natural Resources 22.1in cooperation with the Department of 22.2Agriculture and the Board of Water and 22.3Soil Resources shall establish the technical 22.4advisory committee which has the expertise 22.5to develop (1) criteria to identify public 22.6and private marginal lands which could be 22.7used to produce native prairie seeds of a 22.8local eco-type or restore native prairies that 22.9could be used to produce clean energy, (2) 22.10guidelines for production that ensure high 22.11carbon sequestration, protection of wildlife 22.12and waters, and minimization of inputs and 22.13that do not compromise the survival of the 22.14native prairie remaining in Minnesota, and 22.15(3) recommendations for incentives that will 22.16result in the production of native prairie seeds 22.17of a local eco-type or restore native prairies. 22.18In addition to agency members, the advisory 22.19committee shall have one member from 22.20each of two farm organizations, one member 22.21from a sustainable farmer organization, one 22.22member each from three rural economic 22.23development organizations, one member 22.24each from three environmental organizations, 22.25and one member each from three wildlife or 22.26conservation organizations. The technical 22.27committee shall work with the NextGen 22.28Energy Board to develop a clean energy 22.29program. A report on outcomes from the 22.30technical committee is due December 15, 22.312007, to the legislative finance chairs on 22.32environment and natural resources.22.33$50,000 in the first year is for the 22.34commissioner, in consultation with the 22.35Environmental Quality Board, to report to 22.36the house and senate committees having 23.1jurisdiction over environmental policy 23.2and finance by February 1, 2008, on the 23.3Mississippi River critical area program. The 23.4report shall include the status of critical 23.5area plans, zoning ordinances, the number 23.6and types of revisions anticipated, and the 23.7nature and number of variances sought. The 23.8report shall include recommendations that 23.9adequately protect and manage the aesthetic 23.10integrity and natural environment of the river 23.11corridor.23.12$1,500,000 the first year and $1,500,000 the 23.13second year are to support the identification 23.14of impaired waters and develop plans to 23.15address those impairments, as required by the 23.16federal Clean Water Act. This is a onetime 23.17appropriation.

23.18Subd. 9.Enforcement30,021,00030,697,000

23.19Appropriations by Fund23.20General3,336,0003,392,00023.21Natural Resources7,163,0007,320,00023.22Game and Fish19,422,00019,885,00023.23Remediation100,000100,000

23.24$100,000 each year is for a conservation 23.25officer position to be stationed at Mississippi 23.26Headwaters State Forest to work with local 23.27jurisdictions in enforcing state law along 23.28the Mississippi River from Lake Itasca 23.29downstream to Lake Bemidji and in the 23.30Bemidji region.23.31$1,082,000 the first year and $1,082,000 the 23.32second year are from the water recreation 23.33account in the natural resources fund for 23.34grants to counties for boat and water safety.24.1$100,000 the first year and $100,000 the 24.2second year are from the remediation fund 24.3for solid waste enforcement activities under 24.4Minnesota Statutes, section 116.073.24.5$315,000 the first year and $315,000 the 24.6second year are from the snowmobile 24.7trails and enforcement account in the 24.8natural resources fund for grants to local 24.9law enforcement agencies for snowmobile 24.10enforcement activities.24.11$1,164,000 the first year and $1,164,000 24.12the second year are from the heritage 24.13enhancement account in the game and 24.14fish fund for only the purposes specified 24.15in Minnesota Statutes, section 297A.94, 24.16paragraph (e), clause (1).24.17$225,000 the first year and $225,000 24.18the second year are from the natural 24.19resources fund for grants to county law 24.20enforcement agencies for off-highway 24.21vehicle enforcement and public education 24.22activities based on off-highway vehicle use 24.23in the county. Of this amount, $213,000 each 24.24year is from the all-terrain vehicle account, 24.25$11,000 each year is from the off-highway 24.26motorcycle account, and $1,000 each year 24.27is from the off-road vehicle account. The 24.28county enforcement agencies may use 24.29money received under this appropriation 24.30to make grants to other local enforcement 24.31agencies within the county that have a high 24.32concentration of off-highway vehicle use. Of 24.33this appropriation, $25,000 each year is for 24.34administration of these grants.25.1$15,000 the first year and $5,000 the second 25.2year are from the off-road vehicle account 25.3in the natural resources fund to establish 25.4the off-road vehicle environment and safety 25.5education and training program under 25.6Minnesota Statutes, section 84.8015.25.7$50,000 the first year and $225,000 the 25.8second year are from the natural resources 25.9fund for grants to qualifying off-highway 25.10vehicle organizations to assist in safety and 25.11environmental education and monitoring 25.12trails on public lands. Of this appropriation, 25.13$25,000 each year is for administration of 25.14these grants.25.15Overtime must be distributed to conservation 25.16officers at historical levels; however, a 25.17reasonable reduction or addition may be 25.18made to the officer's allocation, if justified, 25.19based on an individual officer's workload. If 25.20funding for enforcement is reduced because 25.21of an unallotment, the overtime bank may be 25.22reduced in proportion to reductions made in 25.23other areas of the budget.

25.24Subd. 10.Operations Support3,794,0003,775,000

25.25Appropriations by Fund25.26General2,221,0002,211,00025.27Natural Resources484,000484,00025.28Game and Fish1,089,0001,080,000

25.29$38,000 in the first year is from the game and 25.30fish fund for the study on the natural stands 25.31of wild rice required in article 2.25.32$270,000 the first year and $270,000 the 25.33second year are from the natural resources 25.34fund for grants to be divided equally between 25.35the city of St. Paul for the Como Zoo 26.1and Conservatory and the city of Duluth 26.2for the Duluth Zoo. This appropriation 26.3is from the revenue deposited to the fund 26.4under Minnesota Statutes, section 297A.94, 26.5paragraph (e), clause (5).26.6$55,000 in the first year and $7,000 in the 26.7second year are to be transferred to the 26.8Environmental Quality Board to fulfill the 26.9requirement of Minnesota Statutes, sections 26.10116C.92 and 116C.94.

26.1126.12Sec. 5. BOARD OF WATER AND SOIL RESOURCES$22,369,000$22,728,000

26.13$4,102,000 the first year and $4,102,000 the 26.14second year are for natural resources block 26.15grants to local governments. The board may 26.16reduce the amount of the natural resources 26.17block grant to a county by an amount equal to 26.18any reduction in the county's general services 26.19allocation to a soil and water conservation 26.20district from the county's previous year 26.21allocation when the board determines that 26.22the reduction was disproportionate. Grants 26.23must be matched with a combination of local 26.24cash or in-kind contributions. The base grant 26.25portion related to water planning must be 26.26matched by an amount that would be raised 26.27by a levy under Minnesota Statutes, section 26.28103B.3369.26.29$3,566,000 the first year and $3,566,000 26.30the second year are for grants requested 26.31by soil and water conservation districts for 26.32general purposes, nonpoint engineering, 26.33and implementation of the reinvest in 26.34Minnesota conservation reserve program. 26.35Upon approval of the board, expenditures 27.1may be made from these appropriations for 27.2supplies and services benefiting soil and 27.3water conservation districts. Any district 27.4requesting a grant under this paragraph 27.5shall create and maintain a Web page that 27.6publishes, at a minimum, its annual plan, 27.7annual report, annual audit, and annual 27.8budget, including membership dues and 27.9meeting notices and minutes.27.10$3,250,000 the first year and $3,250,000 27.11the second year are for grants to soil and 27.12water conservation districts for cost-sharing 27.13contracts for erosion control and water 27.14quality management. Of this amount, at least 27.15$1,200,000 the first year and $1,200,000 the 27.16second year are for grants for cost-sharing 27.17contracts to establish and maintain vegetation 27.18buffers of restored native prairie and restored 27.19prairie using seeds of a local ecotype region. 27.20$300,000 the first year and $300,000 the 27.21second year are available to begin county 27.22cooperative weed management programs 27.23on natural lands and private lands enrolled 27.24in state and federal conservation programs 27.25and to restore native plants in selected 27.26invasive species management sites by 27.27providing local native seeds and plants 27.28to landowners for implementation. This 27.29appropriation is available until expended. If 27.30the appropriation in either year is insufficient, 27.31the appropriation in the other year is available 27.32for it. Notwithstanding Minnesota Statutes, 27.33section 103C.501, any balance in the board's 27.34cost-share program that remains from the 27.35fiscal year 2007 appropriation is available 27.36in an amount up to $2,000 for a grant to 28.1the Faribault Soil and Water Conservation 28.2District to pay for erosion repair on the Blue 28.3Earth River, and up to $40,000 is available for 28.4grants to soil and water conservation districts 28.5for Web site development and reporting; and 28.6$100,000 in fiscal years 2008 and 2009 is 28.7for evaluating and reporting on performance, 28.8financial, and activity information of local 28.9water management entities as provided for in 28.10article 2, section 38.28.11The board shall develop a forestry practice 28.12docket for cost-share money. The board shall 28.13develop standards or policies for cost-share 28.14practices for the following purposes: (1) 28.15establishment and maintenance of vegetated 28.16buffers of restored prairie or restored native 28.17prairie using seeds of a local ecotype; 28.18(2) establishment of cooperative weed 28.19management programs on private natural 28.20lands and lands enrolled in state and federal 28.21conservation programs and restoration of 28.22native plants in selected invasive species 28.23management sites by providing local native 28.24seeds and plants to landowners; and (3) 28.25establishment of soil and water conservation 28.26and ecological improvement practices on 28.27private forest lands.28.28$100,000 the first year and $100,000 the 28.29second year are for a grant to the Red 28.30River Basin Commission to develop a Red 28.31River basin plan and to coordinate water 28.32management activities in the states and 28.33provinces bordering the Red River. The 28.34unencumbered balance in the first year does 28.35not cancel but is available for the second 28.36year.29.1$5,450,000 the first year and $5,450,000 the 29.2second year are for implementation of the 29.3Clean Water Legacy Act as follows:29.4(1) $1,500,000 each year is for targeted 29.5nonpoint restoration cost-share and incentive 29.6payments, of which up to $1,400,000 each 29.7year is available for grants. Of this amount, 29.8$250,000 each year must be contracted for 29.9services with the Minnesota Conservation 29.10Corps. The grant funds are available until 29.11expended;29.12(2) $2,000,000 each year is for targeted 29.13nonpoint restoration and protection and 29.14technical, compliance, and engineering 29.15assistance activities, of which up to 29.16$1,325,000 the first year and $1,700,000 29.17the second year are available for grants, of 29.18which $225,000 the first year is to inventory 29.19wetland mitigation opportunities and water 29.20quality and watershed improvement projects 29.21in a greater than 80 percent area and of 29.22which $150,000 the first year is to conduct a 29.23regionwide wetland mitigation siting analysis 29.24for greater than 80 percent areas. The 29.25$225,000 amount shall include an inventory 29.26of the wetland and water resources that have 29.27been developed on former mine lands and 29.28an analysis of the functions and values of 29.29those wetland and water resources. This is a 29.30onetime appropriation and is available until 29.31June 30, 2009. The $150,000 amount for 29.32analysis shall (i) evaluate wetland mitigation 29.33opportunities in each watershed and wetland 29.34bank service area, (ii) develop goals for 29.35maintaining water quality in the greater than 29.3680 percent areas, and (iii) identify wetland 30.1mitigation opportunities in other regions with 30.2a greater loss of wetlands or with impaired 30.3waters. This is a onetime appropriation and 30.4is available until June 30, 2009. A report on 30.5the analysis outcomes shall be given to the 30.6house and senate chairs of the environment 30.7and natural resources policy and finance 30.8committees by January 15, 2009;30.9(3) $200,000 each year is for reporting 30.10and evaluating applied soil and water 30.11conservation practices;30.12(4) $1,000,000 each year is for grants 30.13to implement county individual sewage 30.14treatment system programs. Of this 30.15amount, after a county has complied with 30.16requirements to adopt ordinances pursuant 30.17to Minnesota Statutes, section 115.55, 30.18subdivision 2, the county may request grants 30.19of up to $60,000 the first year and $60,000 30.20the second year to inventory properties with 30.21individual sewage treatment systems that 30.22are an imminent threat to public health or 30.23safety due to water discharges of untreated 30.24sewage, and require compliance under an 30.25applicable ordinance. The grant amount 30.26shall be proportional to the number of 30.27properties expected to be inventoried. Each 30.28county receiving an appropriation under 30.29this paragraph shall report the number of 30.30inspections and the number determined to be 30.31an imminent threat to public health or safety 30.32to the Pollution Control Agency by February 30.331 of each year;31.1(5) $650,000 each year is for feedlot water 31.2quality grants for feedlots under 300 animal 31.3units where there are impaired waters; and31.4(6) $100,000 each year is to the Minnesota 31.5River Basin Joint Powers Board, also known 31.6as the Minnesota River Board, for operating 31.7expenses to measure and report the results of 31.8projects in the 12 major watersheds within 31.9the Minnesota River basin.31.10If the appropriations in clauses (1) to (6) in 31.11either year are insufficient, the appropriation 31.12in the other year is available for it. All of 31.13the money appropriated in clauses (1) to 31.14(6) as grants to local governments shall be 31.15administered through the Board of Water 31.16and Soil Resources' local water resources 31.17protection and management program under 31.18Minnesota Statutes, section 103B.3369.31.19$140,000 the first year and $140,000 31.20the second year are for a grant to Area 31.21II, Minnesota River Basin Projects, 31.22for floodplain management, including 31.23administration of programs.31.24$1,120,000 the first year and $1,060,000 the 31.25second year may be spent for the following 31.26purposes to support implementation of the 31.27Wetland Conservation Act: $500,000 each 31.28year is to make grants to local units of 31.29governments to improve response to major 31.30wetland violations; $500,000 each year is for 31.31staffing to provide adequate state oversight 31.32and technical support to local governments 31.33administering the Wetland Conservation Act; 31.34$60,000 each year is for staff to monitor and 31.35enforce wetland replacement and wetland 32.1bank sites; and $60,000 the first year is 32.2for rulemaking required by changes to the 32.3Wetland Conservation Act.32.4$450,000 the first year and $800,000 32.5the second year are to implement 32.6recommendations of the Drainage Work 32.7Group to enhance public drainage and 32.8modernization as follows: $150,000 the first 32.9year is to develop guidelines for drainage 32.10records preservation and modernization; 32.11$500,000 the second year is for cost-share 32.12grants to local governments for public 32.13drainage records modernization; and 32.14$300,000 each year is to provide assistance 32.15to local drainage management officials, to 32.16facilitate the work of the Drainage Work 32.17Group, to staff a drainage assistance team, 32.18and to update the Minnesota Public Drainage 32.19Manual. All of the money appropriated in 32.20this paragraph as grants to local governments 32.21shall be administered through the Board 32.22of Water and Soil Resources' local water 32.23resources protection and management 32.24program under Minnesota Statutes, section 32.25103B.3369. 32.26In addition to other authorities, the Board 32.27of Water and Soil Resources may reduce, 32.28withhold, or redirect grants and other funding 32.29if the local water management entity has 32.30not corrected deficiencies as prescribed in a 32.31notice from the board within one year from 32.32the date of the notice.

32.33Sec. 6. METROPOLITAN COUNCIL$8,620,000$8,620,000

32.34Appropriations by Fund32.352008200933.1General4,050,0004,050,00033.2Natural Resources4,570,0004,570,000

33.3$4,050,000 the first year and $4,050,000 33.4the second year are for metropolitan parks 33.5operations.33.6$4,570,000 the first year and $4,570,000 the 33.7second year are from the natural resources 33.8fund for metropolitan area regional parks 33.9and trails maintenance and operations. This 33.10appropriation is from the revenue deposited 33.11in the natural resources fund under Minnesota 33.12Statutes, section 297A.94, paragraph (e), 33.13clause (3).

33.1433.15Sec. 7. MINNESOTA CONSERVATION CORPS$840,000$840,000

33.16Appropriations by Fund33.172008200933.18General350,000350,00033.19Natural Resources490,000490,000

33.20The Minnesota Conservation Corps may 33.21receive money appropriated from the 33.22natural resources fund under this section 33.23only as provided in an agreement with the 33.24commissioner of natural resources.33.25ARTICLE 233.26ENVIRONMENT AND NATURAL RESOURCES POLICY33.27    Section 1. Minnesota Statutes 2006, section 10A.01, subdivision 35, is amended to 33.28read:33.29    Subd. 35. Public official. "Public official" means any:33.30    (1) member of the legislature;33.31    (2) individual employed by the legislature as secretary of the senate, legislative 33.32auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or 33.33attorney in the Office of Senate Counsel and Research or House Research;34.1    (3) constitutional officer in the executive branch and the officer's chief administrative 34.2deputy;34.3    (4) solicitor general or deputy, assistant, or special assistant attorney general;34.4    (5) commissioner, deputy commissioner, or assistant commissioner of any state 34.5department or agency as listed in section 
         15.01 or 
         15.06, or the state chief information 34.6officer;34.7    (6) member, chief administrative officer, or deputy chief administrative officer of a 34.8state board or commission that has either the power to adopt, amend, or repeal rules under 34.9chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;34.10    (7) individual employed in the executive branch who is authorized to adopt, amend, 34.11or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;34.12    (8) executive director of the State Board of Investment;34.13    (9) deputy of any official listed in clauses (7) and (8);34.14    (10) judge of the Workers' Compensation Court of Appeals;34.15    (11) administrative law judge or compensation judge in the State Office of 34.16Administrative Hearings or referee in the Department of Employment and Economic 34.17Development;34.18    (12) member, regional administrator, division director, general counsel, or operations 34.19manager of the Metropolitan Council;34.20    (13) member or chief administrator of a metropolitan agency;34.21    (14) director of the Division of Alcohol and Gambling Enforcement in the 34.22Department of Public Safety;34.23    (15) member or executive director of the Higher Education Facilities Authority;34.24    (16) member of the board of directors or president of Minnesota Technology, Inc.; 34.25    (17) member of the board of directors or executive director of the Minnesota State 34.26High School League;34.27    (18) member of the Minnesota Ballpark Authority established in section 473.755; or 34.28    (19) citizen member of the Legislative-Citizen Commission on Minnesota 34.29Resources.;34.30    (20) manager of a watershed district or member of a watershed management 34.31organization; or34.32    (21) supervisor of a soil and water conservation district.34.33    Sec. 2. Minnesota Statutes 2006, section 15.99, subdivision 3, is amended to read:34.34    Subd. 3. Application; extensions. (a) The time limit in subdivision 2 begins upon 34.35the agency's receipt of a written request containing all information required by law or by 35.1a previously adopted rule, ordinance, or policy of the agency, including the applicable 35.2application fee. If an agency receives a written request that does not contain all required 35.3information, the 60-day limit starts over only if the agency sends written notice within 15 35.4business days of receipt of the request telling the requester what information is missing.35.5    (b) If a request relating to zoning, septic systems, watershed district review, soil and 35.6water conservation district review, or expansion of the metropolitan urban service area 35.7requires the approval of more than one state agency in the executive branch, the 60-day 35.8period in subdivision 2 begins to run for all executive branch agencies on the day a request 35.9containing all required information is received by one state agency. The agency receiving 35.10the request must forward copies to other state agencies whose approval is required.35.11    (c) An agency response, including an approval with conditions, meets the 60-day 35.12time limit if the agency can document that the response was sent within 60 days of receipt 35.13of the written request. Failure to satisfy the conditions, if any, may be a basis to revoke 35.14or rescind the approval by the agency and will not give rise to a claim that the 60-day 35.15limit was not met.35.16    (d) The time limit in subdivision 2 is extended if a state statute, federal law, or court 35.17order requires a process to occur before the agency acts on the request, and the time 35.18periods prescribed in the state statute, federal law, or court order make it impossible to 35.19act on the request within 60 days. In cases described in this paragraph, the deadline is 35.20extended to 60 days after completion of the last process required in the applicable statute, 35.21law, or order. Final approval of an agency receiving a request is not considered a process 35.22for purposes of this paragraph.35.23    (e) The time limit in subdivision 2 is extended if: (1) a request submitted to a state 35.24agency requires prior approval of a federal agency; or (2) an application submitted to 35.25a city, county, town, school district, metropolitan or regional entity, or other political 35.26subdivision requires prior approval of a state or federal agency. In cases described in 35.27this paragraph, the deadline for agency action is extended to 60 days after the required 35.28prior approval is granted.35.29    (f) An agency may extend the time limit in subdivision 2 before the end of the 35.30initial 60-day period by providing written notice of the extension to the applicant. The 35.31notification must state the reasons for the extension and its anticipated length, which may 35.32not exceed 60 days unless approved by the applicant.35.33    (g) An applicant may by written notice to the agency request an extension of the 35.34time limit under this section.35.35EFFECTIVE DATE.This section is effective the day following final enactment.36.1    Sec. 3. Minnesota Statutes 2006, section 16A.531, subdivision 1a, is amended to read:36.2    Subd. 1a. Revenues. The following revenues must be deposited in the 36.3environmental fund:36.4    (1) all revenue from the motor vehicle transfer fee imposed under section 
         115A.908; 36.5    (2) all fees collected under section 
         116.07, subdivision 4d; 36.6    (3) all money collected by the Pollution Control Agency in enforcement matters 36.7as provided in section 
         115.073; 36.8    (4) all revenues from license fees for individual sewage treatment systems under 36.9section 
         115.56; 36.10    (5) all loan repayments deposited under section 
         115A.0716; 36.11    (6) all revenue from pollution prevention fees imposed under section 
         115D.12; 36.12    (7) all loan repayments deposited under section 
         116.994; 36.13    (8) all fees collected under section 
         116C.834; 36.14    (9) revenue collected from the solid waste management tax pursuant to chapter 297H;36.15    (10) fees collected under section 
         473.844; and36.16    (11) interest accrued on the fund; and36.17    (12) money received in the form of gifts, grants, reimbursement, or appropriation 36.18from any source for any of the purposes provided in subdivision 2, except federal grants.36.19    Sec. 4. [17.035] VENISON DISTRIBUTION AND REIMBURSEMENT.36.20    Subdivision 1.Reimbursement.A meat processor holding a license under chapter 36.2128A may apply to the commissioner of agriculture for reimbursement of $70 towards the 36.22cost of processing a deer donated according to subdivision 1. The meat processor shall 36.23deliver the deer, processed into cuts or ground meat, to a charitable organization that is 36.24registered under chapter 309 and with the commissioner of agriculture and that operates 36.25a food assistance program. To request reimbursement, the processor shall submit an 36.26application, on a form prescribed by the commissioner of agriculture, the tag number 36.27under which the deer was taken, and a receipt for the deer from the charitable organization.36.28    Subd. 2.Distribution.(a) The commissioner of agriculture shall ensure the 36.29equitable statewide distribution of processed deer by requiring the charitable organization 36.30to allocate and distribute processed deer according to the allocation formula used in the 36.31distribution of United States Department of Agriculture commodities under the federal 36.32emergency food assistance program. The charitable organization must submit quarterly 36.33reports to the commissioner on forms prescribed by the commissioner. The reports must 36.34include, but are not limited to, information on the amount of processed deer received and 36.35the organizations to which the meat was distributed.37.1    (b) The commissioner of agriculture may adopt rules to implement this section.37.2    Sec. 5. Minnesota Statutes 2006, section 84.025, subdivision 9, is amended to read:37.3    Subd. 9. Professional services support account. The commissioner of natural 37.4resources may bill the various programs carried out by the commissioner for the costs of 37.5providing them with professional support services. Except as provided under section 37.689.421, receipts must be credited to a special account in the state treasury and are 37.7appropriated to the commissioner to pay the costs for which the billings were made.37.8    The commissioner of natural resources shall submit to the commissioner of finance 37.9before the start of each fiscal year a work plan showing the estimated work to be done 37.10during the coming year, the estimated cost of doing the work, and the positions and fees 37.11that will be necessary. This account is exempted from statewide and agency indirect 37.12cost payments.37.13    Sec. 6. [84.02] DEFINITIONS.37.14    Subdivision 1.Definitions.For purposes of this chapter, the terms defined in this 37.15section shall have the meanings given them.37.16    Subd. 2.Best management practice for native prairie restoration."Best 37.17management practice for native prairie restoration" means using seeds collected from a 37.18native prairie within the same county or within 25 miles of the county's border, but not 37.19across the boundary of an ecotype region.37.20    Subd. 3.Created grassland."Created grassland" means a restoration using seeds 37.21or plants with origins outside of the state of Minnesota.37.22    Subd. 4.Ecotype region."Ecotype region" means the following ecological 37.23subsections and counties based on the Department of Natural Resources map, "County 37.24Landscape Groupings Based on Ecological Subsections," dated February 15, 2007.

37.25Ecotype RegionCounties or portions thereof:37.2637.2737.28Rochester Plateau, Blufflands, and Oak SavannaHouston, Winona, Fillmore, Wabasha, Goodhue, Mower, Freeborn, Steele, Olmsted, Rice, Waseca, Dakota, Dodge37.2937.3037.31Anoka Sand Plain, Big Woods, and St. Paul Baldwin Plains and MorainesAnoka, Hennepin, Ramsey, Washington, Chisago, Scott, Carver, McLeod, Wright, Benton, Isanti, Le Sueur, Sherburne37.3237.33Inner Coteau and Coteau MorainesLincoln, Lyon, Pipestone, Rock, Murray, Nobles, Jackson, Cottonwood37.34Red River Prairie (South)Traverse, Wilkin, Clay, Becker37.3537.3637.37Red River Prairie (North) and Aspen ParklandsKittson, Roseau, Red Lake, Pennington, Marshall, Clearwater, Mahnomen, Polk, Norman38.138.238.3Minnesota River Prairie (North)Big Stone, Pope, Stevens, Grant, Swift, Chippewa, Meeker, Kandiyohi, Renville, Lac qui Parle, Yellow Medicine38.438.5Minnesota River Prairie (South)Nicollet, Redwood, Brown, Watonwan, Martin, Faribault, Blue Earth, Sibley38.638.7Hardwood HillsDouglas, Morrison, Otter Tail, Stearns, Todd

38.8    Subd. 5.Native prairie."Native prairie" means land that has never been plowed 38.9where native prairie vegetation originating from the site currently predominates or, if 38.10disturbed, is predominantly covered with native prairie vegetation that originated from the 38.11site. Unbroken pasture land used for livestock grazing can be considered native prairie if it 38.12has predominantly native vegetation originating from the site and conservation practices 38.13have maintained biological diversity.38.14    Subd. 6.Native prairie species of a local ecotype."Native prairie species of a local 38.15ecotype" means a genetically differentiated population of a species that has at least one 38.16trait (morphological, biochemical, fitness, or phenological) that is evolutionarily adapted 38.17to local environmental conditions, notably plant competitors, pathogens, pollinators, soil 38.18microorganisms, growing season length, climate, hydrology, and soil.38.19    Subd. 7.Restored native prairie."Restored native prairie" means a restoration 38.20using at least 25 representative and biologically diverse native prairie plant species of a 38.21local ecotype originating in the same county as the restoration site or within 25 miles of 38.22the county's border, but not across the boundary of an ecotype region.38.23    Subd. 8.Restored prairie."Restored prairie" means a restoration using at least 38.2425 representative and biologically diverse native prairie plant species originating from 38.25the same ecotype region in which the restoration occurs.38.26    Sec. 7. Minnesota Statutes 2006, section 84.026, subdivision 1, is amended to read:38.27    Subdivision 1. Contracts. The commissioner of natural resources is authorized 38.28to enter into contractual agreements with any public or private entity for the provision 38.29of statutorily prescribed natural resources services by the department. The contracts 38.30shall specify the services to be provided. Except as provided under section 89.421, funds 38.31generated in a contractual agreement made pursuant to this section shall be deposited in 38.32the special revenue fund and are appropriated to the department for purposes of providing 38.33the services specified in the contracts. The commissioner shall report revenues collected 38.34and expenditures made under this subdivision to the chairs of the Committees on Ways and 38.35Means in the house and Finance in the senate by January 1 of each odd-numbered year.39.1    Sec. 8. Minnesota Statutes 2006, section 84.0272, is amended by adding a subdivision 39.2to read:39.3    Subd. 5.Easement information.Parties to an easement purchased under the 39.4authority of the commissioner must:39.5    (1) specify in the easement all provisions that are perpetual in nature;39.6    (2) file the easement with the county recorder or registrar of titles in the county 39.7in which the land is located; and39.8    (3) submit an electronic copy of the easement to the commissioner.39.9    Sec. 9. Minnesota Statutes 2006, section 84.0855, subdivision 1, is amended to read:39.10    Subdivision 1. Sales authorized; gift certificates. The commissioner may 39.11sell natural resources-related publications and maps; forest resource assessment 39.12products; federal migratory waterfowl, junior duck, and other federal stamps; and other 39.13nature-related merchandise, and may rent or sell items for the convenience of persons using 39.14Department of Natural Resources facilities or services. The commissioner may sell gift 39.15certificates for any items rented or sold. Notwithstanding section 
         16A.1285, a fee charged 39.16by the commissioner under this section may include a reasonable amount in excess of the 39.17actual cost to support Department of Natural Resources programs. The commissioner may 39.18advertise the availability of a program or item offered under this section. 39.19    Sec. 10. Minnesota Statutes 2006, section 84.0855, subdivision 2, is amended to read:39.20    Subd. 2. Receipts; appropriation.Except as provided under section 89.421, 39.21money received by the commissioner under this section or to buy supplies for the use of 39.22volunteers, may be credited to one or more special accounts in the state treasury and is 39.23appropriated to the commissioner for the purposes for which the money was received. 39.24Money received from sales at the state fair shall be available for state fair related costs. 39.25Money received from sales of intellectual property and software products or services shall 39.26be available for development, maintenance, and support of software products and systems.39.27    Sec. 11. Minnesota Statutes 2006, section 84.780, is amended to read:39.2884.780 OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.39.29    (a) The off-highway vehicle damage account is created in the natural resources fund. 39.30Money in the off-highway vehicle damage account is appropriated to the commissioner 39.31of natural resources for the repair or restoration of property damaged by the operation of 39.32off-highway vehicles in an unpermittedillegal area after August 1, 2003, and for the costs 39.33of administration for this section. Before the commissioner may make a payment from 40.1this account, the commissioner must determine whether the damage to the property was 40.2caused by the unpermittedillegal use of off-highway vehicles, that the applicant has made 40.3reasonable efforts to identify the responsible individual and obtain payment from the 40.4individual, and that the applicant has made reasonable efforts to prevent reoccurrence. 40.5By June 30, 2008, the commissioner of finance must transfer the remaining balance in the 40.6account to the off-highway motorcycle account under section 84.794, the off-road vehicle 40.7account under section 84.803, and the all-terrain vehicle account under section 84.927. 40.8The amount transferred to each account must be proportionate to the amounts received in 40.9the damage account from the relevant off-highway vehicle accounts.40.10    (b) Determinations of the commissioner under this section may be made by written 40.11order and are exempt from the rulemaking provisions of chapter 14. Section 
         14.38640.12does not apply.40.13    (c) This section expires July 1, 2008 These funds are available until expended.40.14    Sec. 12. [84.8045] RESTRICTIONS ON OFF-ROAD VEHICLE TRAILS.40.15    Notwithstanding any provision of sections 84.797 to 84.805 or other law to the 40.16contrary, the commissioner shall not permit land administered by the commissioner in 40.17Beltrami, Cass, Crow Wing, and Hubbard Counties to be used or developed for trails 40.18primarily for off-road vehicles as defined in section 84.797, subdivision 7, except:40.19    (1) upon approval by the legislature; or40.20    (2) in designated off-road vehicle use areas.40.21EFFECTIVE DATE.This section is effective the day following final enactment.40.22    Sec. 13. [84.9011] OFF-HIGHWAY VEHICLE SAFETY AND CONSERVATION 40.23PROGRAM.40.24    Subdivision 1.Creation.The commissioner of natural resources shall establish 40.25a program to promote the safe and responsible operation of off-highway vehicles in a 40.26manner that does not harm the environment. The commissioner shall coordinate the 40.27program through the regional offices of the Department of Natural Resources.40.28    Subd. 2.Purpose.The purpose of the program is to encourage off-highway vehicle 40.29clubs to assist, on a volunteer basis, in improving, maintaining, and monitoring of trails on 40.30state forest land and other public lands.40.31    Subd. 3.Agreements.(a) The commissioner shall enter into informal agreements 40.32with off-highway vehicle clubs for volunteer services to maintain, make improvements to, 40.33and monitor trails on state forest land and other public lands. The off-highway vehicle 41.1clubs shall promote the operation of off-highway vehicles in a safe and responsible manner 41.2that complies with the laws and rules that relate to the operation of off-highway vehicles.41.3    (b) The off-highway vehicle clubs may provide assistance to the department in 41.4locating, recruiting, and training instructors for off-highway vehicle training programs.41.5    (c) The commissioner may provide assistance to enhance the comfort and safety 41.6of volunteers and to facilitate the implementation and administration of the safety and 41.7conservation program.41.8    Subd. 4.Worker displacement prohibited.The commissioner may not enter into 41.9any agreement that has the purpose of or results in the displacement of public employees 41.10by volunteers participating in the off-highway safety and conservation program under 41.11this section. The commissioner must certify to the appropriate bargaining agent that the 41.12work performed by a volunteer will not result in the displacement of currently employed 41.13workers or workers on seasonal layoff or layoff from a substantially equivalent position, 41.14including partial displacement such as reduction in hours of nonovertime work, wages, or 41.15other employment benefits.41.16    Sec. 14. Minnesota Statutes 2006, section 84.927, subdivision 2, is amended to read:41.17    Subd. 2. Purposes. Subject to appropriation by the legislature, money in the 41.18all-terrain vehicle account may only be spent for:41.19    (1) the education and training program under section 
         84.925; 41.20    (2) administration, enforcement, and implementation of sections 
         84.773 to 
         84.929; 41.21    (3) acquisition, maintenance, and development of vehicle trails and use areas;41.22    (4) grant-in-aid programs to counties and municipalities to construct and maintain 41.23all-terrain vehicle trails and use areas;41.24    (5) grants-in-aid to local safety programs; and41.25    (6) enforcement and public education grants to local law enforcement agencies.; and41.26    (7) maintenance of minimum-maintenance forest roads according to section 89.71, 41.27subdivision 5, and county forest roads within state forest boundaries as defined under 41.28section 89.021.41.29    The distribution of funds made available through grant-in-aid programs must be 41.30guided by the statewide comprehensive outdoor recreation plan.41.31    Sec. 15. Minnesota Statutes 2006, section 84.963, is amended to read:41.3284.963 PRAIRIE PLANT SEED PRODUCTION AREAS.41.33    (a) The commissioner of natural resources shall study the feasibility of establishing 41.34private or public prairie plant seed production areas within prairie land locations. If 42.1prairie plant seed production is feasible, the commissioner may aid the establishment of 42.2production areas. The commissioner may enter cost-share or sharecrop agreements with 42.3landowners having easements for conservation purposes of ten or more years on their land 42.4to commercially produce prairie plant seed of Minnesota origin. The commissioner may 42.5only aid prairie plant seed production areas on agricultural land used to produce crops 42.6before December 23, 1985, and cropped three out of five years between 1981 and 1985.42.7    (b) The commissioner shall compile, prepare, and electronically disseminate to 42.8the public prairie establishment guidance materials and resources. The resources must 42.9provide information and guidance on project planning, seed selection including ecotype 42.10and species mix, site preparation, seeding, maintenance, and technical service providers. 42.11The commissioner shall use actual prairie restoration projects under development on 42.12state-owned land to illustrate and demonstrate the practices described.42.13    Sec. 16. Minnesota Statutes 2006, section 84D.02, is amended by adding a subdivision 42.14to read:42.15    Subd. 7.Contracts for services for emergency invasive species prevention work; 42.16commissions to persons employed.The commissioner may contract for or accept the 42.17services of any persons whose aid is available, temporarily or otherwise, in emergency 42.18invasive species prevention work, either gratuitously or for compensation not in excess of 42.19the limits provided by law with respect to the employment of labor by the commissioner. 42.20The commissioner may issue a commission, or other written evidence of authority, to any 42.21person whose services are so arranged for and may thereby empower the person to act, 42.22temporarily or otherwise, in any other capacity, with powers and duties as may be specified 42.23in the commission or other written evidence of authority, but not in excess of the powers 42.24conferred by law. The commissioner of agriculture, under authority provided by law, shall 42.25cooperate with the commissioner in emergency control of invasive species prevention.42.26    Sec. 17. Minnesota Statutes 2006, section 84D.13, subdivision 7, is amended to read:42.27    Subd. 7. Satisfaction of civil penalties. A civil penalty is due and a watercraft 42.28license suspension is effective 30 days after issuance of the civil citation. A civil penalty 42.29collected under this section is payable to the commissioner and must be credited to the 42.30water recreation account invasive species account.42.31    Sec. 18. [84D.15] INVASIVE SPECIES ACCOUNT.42.32    Subdivision 1.Creation.The invasive species account is created in the state 42.33treasury in the natural resources fund.43.1    Subd. 2.Receipts.Money received from surcharges on watercraft licenses under 43.2section 86B.415, subdivision 7, and civil penalties under section 84D.13 shall be deposited 43.3in the invasive species account. Each year, the commissioner of finance shall transfer from 43.4the game and fish fund to the invasive species account, the annual surcharge collected on 43.5nonresident fishing licenses under section 97A.475, subdivision 7, paragraph (b).43.6    Subd. 3.Use of money in account.Money credited to the invasive species account 43.7in subdivision 2 shall be used for management of invasive species and implementation of 43.8this chapter as it pertains to invasive species, including control, public awareness, law 43.9enforcement, assessment and monitoring, management planning, and research.43.10    Sec. 19. [85.0146] CUYUNA COUNTRY STATE RECREATION AREA; 43.11CITIZENS ADVISORY COUNCIL.43.12    Subdivision 1.Advisory council created.The Cuyuna Country State Recreation 43.13Area Citizens Advisory Council is established. Membership on the advisory council 43.14shall include:43.15    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers 43.16Board;43.17    (2) a representative of the Croft Mine Historical Park Joint Powers Board;43.18    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has 43.19worked as a miner in the local area;43.20    (4) a representative of the Crow Wing County Board;43.21    (5) an elected state official;43.22    (6) a representative of the Grand Rapids regional office of the Department of Natural 43.23Resources;43.24    (7) a designee of the Iron Range Resources and Rehabilitation Board;43.25    (8) a designee of the local business community selected by the area chambers of 43.26commerce;43.27    (9) a designee of the local environmental community selected by the Crow Wing 43.28County District 5 commissioner;43.29    (10) a designee of a local education organization selected by the Crosby-Ironton 43.30School Board; 43.31    (11) a designee of one of the recreation area user groups selected by the Cuyuna 43.32Range Chamber of Commerce; and 43.33    (12) a member of the Cuyuna Country Heritage Preservation Society.43.34    Subd. 2.Administration.(a) The advisory council must meet at least four times 43.35annually. The council shall elect a chair and meetings shall be at the call of the chair.44.1    (b) Members of the advisory council shall serve as volunteers for two-year terms 44.2with the ability to be reappointed. Members shall accept no per diem.44.3    (c) The state recreation area manager may attend the council meetings and advise 44.4the council of issues in management of the recreation area.44.5    (d) Before a major decision is implemented in the Cuyuna Country State Recreation 44.6Area, the area manager must consult with the council and take into consideration any 44.7council comments or advice that may impact the major decision.44.8    Sec. 20. Minnesota Statutes 2006, section 85.054, subdivision 12, is amended to read:44.9    Subd. 12. Soudan Underground Mine State Park. A state park permit is not 44.10required and a fee may not be charged for motor vehicle entry or,  parking at the visitor 44.11parking area of Soudan Underground Mine State Park, or for tours of the High Energy 44.12Physics Lab by supervised kindergarten through grade 12 school classes during the school 44.13year.44.14    Sec. 21. Minnesota Statutes 2006, section 85.054, is amended by adding a subdivision 44.15to read:44.16    Subd. 13.Cuyuna Country State Recreation Area.A state park permit is not 44.17required and a fee may not be charged for motor vehicle entry or parking at Croft Mine 44.18Historical Park and Portsmouth Mine Lake Overlook in Cuyuna Country State Recreation 44.19Area, except for overnight camping. 44.20    Sec. 22. Minnesota Statutes 2006, section 86B.706, subdivision 2, is amended to read:44.21    Subd. 2. Money deposited in account. The following shall be deposited in the state 44.22treasury and credited to the water recreation account:44.23    (1) fees and surcharges from titling and licensing of watercraft under this chapter;44.24    (2) fines, installment payments, and forfeited bail according to section 
         86B.705, 44.25subdivision 2
         ;44.26    (3) civil penalties according to section 84D.13;44.27    (4) mooring fees and receipts from the sale of marine gas at state-operated or 44.28state-assisted small craft harbors and mooring facilities according to section 
         86A.21;44.29    (5)(4) the unrefunded gasoline tax attributable to watercraft use under section 44.30296A.18
         ; and44.31    (6)(5) fees for permits issued to control or harvest aquatic plants other than wild 44.32rice under section 
         103G.615, subdivision 2.45.1    Sec. 23. Minnesota Statutes 2006, section 89.22, subdivision 2, is amended to read:45.2    Subd. 2. Receipts to natural resources special revenue fund. Fees collected under 45.3subdivision 1 shall be credited to a forest land use account in the natural resources fund45.4the special revenue fund and are annually appropriated to the commissioner to recoup the 45.5costs of developing, operating, and maintaining facilities necessary for the specified uses 45.6in subdivision 1 or to prevent or mitigate resource impacts of those uses. 45.7EFFECTIVE DATE.This section is effective July 1, 2007, and applies to fees 45.8collected according to Minnesota Statutes, section 89.22, subdivision 1, after August 45.91, 2006.45.10    Sec. 24. [89.421] FOREST RESOURCE ASSESSMENT PRODUCTS AND 45.11SERVICES ACCOUNT.45.12    Subdivision 1.Creation.The forest resource assessment products and services 45.13account is created in the state treasury in the natural resources fund.45.14    Subd. 2.Receipts.Money received from forest resource assessment product sales 45.15and services provided by the commissioner under sections 84.025, subdivision 9; 84.026; 45.16and 84.0855 shall be credited to the forest resource assessment products and services 45.17account. Forest resource assessment products and services include the sale of aerial 45.18photography, remote sensing, and satellite imagery products and services.45.19    Subd. 3.Use of money in account.Money credited to the forest resource 45.20assessment products and services account under subdivision 2 is appropriated for fiscal 45.21years 2008 and 2009 to the commissioner and shall be used to maintain the staff and 45.22facilities producing the aerial photography, remote sensing, and satellite imagery products 45.23and services.45.24    Sec. 25. [89.62] SHADE TREE PEST CONTROL; GRANT PROGRAM.45.25    Subdivision 1.Grants.The commissioner may make grants to aid in the control of 45.26a shade tree pest. To be eligible, a grantee must have a pest control program approved 45.27by the commissioner that:45.28    (1) defines tree ownership and who is responsible for the costs associated with 45.29control measures;45.30    (2) defines the zone of infestation within which the control measures are to be 45.31applied;45.32    (3) includes a tree inspector certified under section 89.63 and having the authority to 45.33enter and inspect private lands;46.1    (4) has the means to enforce measures needed to limit the spread of shade tree 46.2pests; and46.3    (5) provides that grant money received will be deposited in a separate fund to be 46.4spent only for the purposes authorized by this section.46.5    Subd. 2.Grant eligibility.The following are eligible for grants under this section:46.6    (1) a home rule charter or statutory city or a town that exercises municipal powers 46.7under section 368.01 or any general or special law; 46.8    (2) a special park district organized under chapter 398; 46.9    (3) a special-purpose park and recreation board; 46.10    (4) a soil and water conservation district; 46.11    (5) a county; or46.12    (6) any other organization with the legal authority to enter into contractual 46.13agreements.46.14    Subd. 3.Rules; applicability to municipalities.The rules and procedures adopted 46.15under this section by the commissioner apply in a municipality unless the municipality 46.16adopts an ordinance determined by the commissioner to be more stringent than the rules 46.17and procedures of the commissioner. The rules and procedures of the commissioner or 46.18the municipality apply to all state agencies, special purpose districts, and metropolitan 46.19commissions as defined in section 473.121, subdivision 5a, that own or control land 46.20adjacent to or within a zone of infestation.46.21    Sec. 26. Minnesota Statutes 2006, section 90.161, is amended by adding a subdivision 46.22to read:46.23    Subd. 4.Change of security.Prior to any harvest activity, or activities incidental 46.24to the preparation for harvest, a purchaser having posted a bond for 100 percent of the 46.25purchase price of a sale may request the release of the bond and the commissioner 46.26shall grant such release upon cash payment to the commissioner of the down payment 46.27requirement of the sale, plus interest.46.28    Sec. 27. Minnesota Statutes 2006, section 93.22, subdivision 1, is amended to read:46.29    Subdivision 1. Generally.(a) All payments under sections 
         93.14 to 
         93.285 shall 46.30be made to the Department of Natural Resources and shall be credited according to this 46.31section. 46.32    (a) If the lands or minerals and mineral rights covered by a lease are held by the state 46.33by virtue of an act of Congress, payments made under the lease shall be credited to the 46.34permanent fund of the class of land to which the leased premises belong.47.1    (b) If a lease covers the bed of navigable waters, payments made under the lease 47.2shall be credited to the permanent school fund of the state.47.3    (c) If the lands or minerals and mineral rights covered by a lease are held by the 47.4state in trust for the taxing districts, payments made under the lease shall be distributed 47.5annually on the first day of September as follows:47.6    (1) 20 percent to the general fund; and47.7    (2) 80 percent to the respective counties in which the lands lie, to be apportioned 47.8among the taxing districts interested therein as follows: county, three-ninths; town or city, 47.9two-ninths; and school district, four-ninths.47.10    (d) Except as provided under this section and except where the disposition of 47.11payments may be otherwise directed by law, all payments shall be paid into the general 47.12fund of the state.47.13    (b) Twenty percent of all payments under sections 93.14 to 93.285 shall be 47.14credited to the minerals management account in the natural resources fund as costs for 47.15the administration and management of state mineral resources by the commissioner of 47.16natural resources.47.17    (c) The remainder of the payments shall be credited as follows:47.18    (1) if the lands or minerals and mineral rights covered by a lease are held by the state 47.19by virtue of an act of Congress, payments made under the lease shall be credited to the 47.20permanent fund of the class of land to which the leased premises belong;47.21    (2) if a lease covers the bed of navigable waters, payments made under the lease 47.22shall be credited to the permanent school fund of the state;47.23    (3) if the lands or minerals and mineral rights covered by a lease are held by the state 47.24in trust for the taxing districts, payments made under the lease shall be distributed annually 47.25on the first day of September to the respective counties in which the lands lie, to be 47.26apportioned among the taxing districts interested therein as follows: county, three-ninths; 47.27town or city, two-ninths; and school district, four-ninths;47.28    (4) if the lands or mineral rights covered by a lease became the absolute property of 47.29the state under the provisions of chapter 84A, payments made under the lease shall be 47.30distributed as follows: county containing the land from which the income was derived, 47.31five-eighths; and general fund of the state, three-eighths; and47.32    (5) except as provided under this section and except where the disposition of 47.33payments may be otherwise directed by law, payments made under a lease shall be paid 47.34into the general fund of the state.47.35    Sec. 28. Minnesota Statutes 2006, section 97A.055, subdivision 4, is amended to read:48.1    Subd. 4. Game and fish annual reports. (a) By December 15 each year, 48.2the commissioner shall submit to the legislative committees having jurisdiction over 48.3appropriations and the environment and natural resources reports on each of the following:48.4    (1) the amount of revenue from the following and purposes for which expenditures 48.5were made:48.6    (i) the small game license surcharge under section  
         97A.475, subdivision 4; 48.7    (ii) the Minnesota migratory waterfowl stamp under section  
         97A.475, subdivision 48.85
         , clause (1); 48.9    (iii) the trout and salmon stamp under section  
         97A.475, subdivision 10; 48.10    (iv) the pheasant stamp under section  
         97A.475, subdivision 5, clause (2); and48.11    (v) the turkey stamp under section  
         97A.475, subdivision 5, clause (3); and48.12    (vi) the deer license surcharge under section 97A.475, subdivision 3a;48.13    (2) the amounts available under section  
         97A.075, subdivision 1, paragraphs (b) and 48.14(c), and the purposes for which these amounts were spent; 48.15    (3) money credited to the game and fish fund under this section and purposes for 48.16which expenditures were made from the fund;48.17    (4) outcome goals for the expenditures from the game and fish fund; and48.18    (5) summary and comments of citizen oversight committee reviews under 48.19subdivision 4b.48.20    (b) The report must include the commissioner's recommendations, if any, for 48.21changes in the laws relating to the stamps and surcharge referenced in paragraph (a).48.22    Sec. 29. Minnesota Statutes 2006, section 97A.065, is amended by adding a 48.23subdivision to read:48.24    Subd. 6.Deer license surcharge. The surcharge collected under section 97A.475, 48.25subdivision 3a, shall be deposited in a special revenue account and is appropriated for fiscal 48.26years 2008 and 2009 to the commissioner for deer management, including for grants or 48.27payments to agencies, organizations, or individuals for assisting with the cost of processing 48.28deer taken for population management purposes for venison donation programs. None of 48.29the additional license fees shall be transferred to any other agency for administration of 48.30programs other than venison donation. If any money transferred by the commissioner is 48.31not used for a venison donation program, it shall be returned to the commissioner. 48.32    Sec. 30. Minnesota Statutes 2006, section 97A.133, is amended by adding a 48.33subdivision to read:48.34    Subd. 66. Vermillion Highlands Wildlife Management Area, Dakota County.49.1    Sec. 31. Minnesota Statutes 2006, section 97A.475, is amended by adding a 49.2subdivision to read:49.3    Subd. 3a.Deer license surcharge.Fees for annual resident and nonresident licenses 49.4to take deer by firearms or archery established under subdivisions 2, clauses (4), (5), (9), 49.5and (11), and 3, clauses (2), (3), and (7), must be increased by a surcharge of $1, except 49.6as provided under section 97A.065, subdivision 6. An additional commission may not 49.7be assessed on the surcharge and the following statement must be included in the annual 49.8deer hunting regulations: "The $1 deer license surcharge is being paid by hunters for deer 49.9management, including assisting with the costs of processing deer donated for charitable 49.10purposes."49.11    Sec. 32. Minnesota Statutes 2006, section 97A.475, subdivision 7, is amended to read:49.12    Subd. 7. Nonresident fishing.(a) Fees for the following licenses, to be issued 49.13to nonresidents, are:49.14    (1) to take fish by angling, $34;49.15    (2) to take fish by angling limited to seven consecutive days selected by the licensee, 49.16$24;49.17    (3) to take fish by angling for a 72-hour period selected by the licensee, $20;49.18    (4) to take fish by angling for a combined license for a family for one or both parents 49.19and dependent children under the age of 16, $46;49.20    (5) to take fish by angling for a 24-hour period selected by the licensee, $8.50; and49.21    (6) to take fish by angling for a combined license for a married couple, limited to 49.2214 consecutive days selected by one of the licensees, $35.49.23    (b) A $2 surcharge shall be added to all nonresident fishing licenses, except licenses 49.24issued under paragraph (a), clause (5). An additional commission may not be assessed 49.25on this surcharge.49.26EFFECTIVE DATE.This section is effective March 1, 2008.49.27    Sec. 33. Minnesota Statutes 2006, section 97A.485, subdivision 7, is amended to read:49.28    Subd. 7. Electronic licensing system commission. The commissioner shall retain 49.29for the operation of the electronic licensing system the commission established under 49.30section 
         84.027, subdivision 15, and issuing fees collected by the commissioner on all 49.31license fees collected, excluding:49.32    (1) the small game surcharge; and49.33    (2) the deer license surcharge; and50.1    (3) $2.50 of the license fee for the licenses in section 
         97A.475, subdivisions 6, 50.2clauses (1)
         , (2), and (4), 7, 8, 12, and 13.50.3    Sec. 34. [97B.303] VENISON DONATIONS.50.4    An individual who legally takes a deer may donate the deer, for distribution to 50.5charitable food assistance programs, to a meat processor that is licensed under chapter 50.628A. An individual donating a deer must supply the processor with the tag number under 50.7which the deer was taken.50.8    Sec. 35. Minnesota Statutes 2006, section 97C.081, subdivision 3, is amended to read:50.9    Subd. 3. Contests requiring a permit. (a) A person must have a permit from the 50.10commissioner to conduct a fishing contest that does not meet the criteria in subdivision 2. 50.11Permits shall be issued without a fee. The commissioner shall charge a fee for the permit 50.12that recovers the costs of issuing the permit and of monitoring the activities allowed by 50.13the permit. Receipts collected from this fee shall be credited to the game and fish fund. 50.14Notwithstanding section 16A.1283, the commissioner may, by written order published in 50.15the State Register, establish contest permit fees. The fees are not subject to the rulemaking 50.16provisions of chapter 14 and section 14.386 does not apply.50.17    (b) If entry fees are over $25 per person, or total prizes are valued at more than 50.18$25,000, and if the applicant has either:50.19    (1) not previously conducted a fishing contest requiring a permit under this 50.20subdivision; or50.21    (2) ever failed to make required prize awards in a fishing contest conducted by 50.22the applicant, the commissioner may require the applicant to furnish the commissioner 50.23evidence of financial responsibility in the form of a surety bond or bank letter of credit in 50.24the amount of $25,000.50.25    (c) The permit fee for any individual contest may not exceed the following amounts:50.26    (1) $120 for an open water contest not exceeding 100 participants and without 50.27off-site weigh-in;50.28    (2) $400 for an open water contest with more than 100 participants and without 50.29off-site weigh-in;50.30    (3) $500 for an open water contest not exceeding 100 participants with off-site 50.31weigh-in;50.32    (4) $1,000 for an open water contest with more than 100 participants with off-site 50.33weigh-in; or50.34    (5) $120 for an ice fishing contest with more than 150 participants.51.1    Sec. 36. Minnesota Statutes 2006, section 103B.101, is amended by adding a 51.2subdivision to read:51.3    Subd. 12.Authority to issue penalty orders.The board may issue an order 51.4requiring violations to be corrected and administratively assessing monetary penalties for 51.5violations of this chapter and chapters 103C, 103D, 103E, 103F, and 103G, any rules 51.6adopted under those chapters, and any standards, limitations, or conditions established 51.7by the board.51.8EFFECTIVE DATE.This section is effective the day following final enactment.51.9    Sec. 37. [103B.102] LOCAL WATER MANAGEMENT ACCOUNTABILITY 51.10AND OVERSIGHT.51.11    Subdivision 1.Findings; improving accountability and oversight.The legislature 51.12finds that a process is needed to monitor the performance and activities of local water 51.13management entities. The process should be preemptive so that problems can be identified 51.14early and systematically. Underperforming entities should be provided assistance and 51.15direction for improving performance in a reasonable time frame.51.16    Subd. 2.Definitions.For the purposes of this section, "local water management 51.17entities" means watershed districts, soil and water conservation districts, metropolitan 51.18water management organizations, and counties operating separately or jointly in their 51.19role as local water management authorities under chapter 103B, 103C, 103D, or 103G 51.20and chapter 114D.51.21    Subd. 3.Evaluation and report.The Board of Water and Soil Resources shall 51.22evaluate performance, financial, and activity information for each local water management 51.23entity. The board shall evaluate the entities' progress in accomplishing their adopted 51.24plans on a regular basis, but not less than once every five years. The board shall maintain 51.25a summary of local water management entity performance on the board's Web site. 51.26Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis 51.27of local water management entity performance to the chairs of the house and senate 51.28committees having jurisdiction over environment and natural resources policy.51.29    Subd. 4.Corrective actions.(a) In addition to other authorities, the Board of Water 51.30and Soil Resources may, based on its evaluation in subdivision 3, reduce, withhold, or 51.31redirect grants and other funding if the local water management entity has not corrected 51.32deficiencies as prescribed in a notice from the board within one year from the date of 51.33the notice.51.34    (b) The board may defer a decision on a termination petition filed under section 51.35103B.221, 103C.225, or 103D.271 for up to one year to conduct or update the evaluation 52.1under subdivision 3 or to communicate the results of the evaluation to petitioners or to 52.2local and state government agencies.52.3    Sec. 38. Minnesota Statutes 2006, section 103C.321, is amended by adding a 52.4subdivision to read:52.5    Subd. 6.Credit card use.The supervisors may authorize the use of a credit card 52.6by any soil and water conservation district officer or employee otherwise authorized 52.7to make a purchase on behalf of the soil and water conservation district. If a soil and 52.8water conservation district officer or employee makes a purchase by credit card that is not 52.9approved by the supervisors, the officer or employee is personally liable for the amount of 52.10the purchase. A purchase by credit card must otherwise comply with all statutes, rules, 52.11or soil and water conservation district policy applicable to soil and water conservation 52.12district purchases.52.13    Sec. 39. Minnesota Statutes 2006, section 103D.325, is amended by adding a 52.14subdivision to read:52.15    Subd. 4.Credit card use.The managers may authorize the use of a credit card 52.16by any watershed district officer or employee otherwise authorized to make a purchase 52.17on behalf of the watershed district. If a watershed district officer or employee makes a 52.18purchase by credit card that is not approved by the managers, the officer or employee is 52.19personally liable for the amount of the purchase. A purchase by credit card must otherwise 52.20comply with all statutes, rules, or watershed district policy applicable to watershed district 52.21purchases.52.22    Sec. 40. Minnesota Statutes 2006, section 103E.021, subdivision 1, is amended to read:52.23    Subdivision 1. Spoil banks must be spread and grass planted permanent 52.24vegetation established. In any proceeding to establish, construct, improve, or do any 52.25work affecting a public drainage system under any law that appoints viewers to assess 52.26benefits and damages, the authority having jurisdiction over the proceeding shall order 52.27spoil banks to be spread consistent with the plan and function of the drainage system. The 52.28authority shall order that permanent grass, other than a noxious weed, be planted on 52.29the banks ditch side slopes and on a strip that a permanent strip of perennial vegetation 52.30approved by the drainage authority be established on each side of the ditch. Preference 52.31should be given to planting native species of a local ecotype. The approved perennial 52.32vegetation shall not impede future maintenance of the ditch. The permanent strips of 52.33perennial vegetation shall be 16-1/2 feet in width measured outward from the top edge 53.1of the constructed channel resulting from the proceeding, or to the crown of the leveled 53.2spoil bank, whichever is the greater, on each side of the top edge of the channel of the 53.3ditch. except for an action by a drainage authority that results only in a redetermination of 53.4benefits and damages, for which the required width shall be 16-1/2 feet. Drainage system 53.5rights-of-way for the acreage and additional property required for the planting permanent 53.6strips must be acquired by the authority having jurisdiction.53.7    Sec. 41. Minnesota Statutes 2006, section 103E.021, subdivision 2, is amended to read:53.8    Subd. 2. Reseeding and harvesting grass perennial vegetation. The authority 53.9having jurisdiction over the repair and maintenance of the drainage system shall supervise 53.10all necessary reseeding. The permanent grass strips of perennial vegetation must be 53.11maintained in the same manner as other drainage system repairs. Harvest of the grass53.12vegetation from the grass permanent strip in a manner not harmful to the grass vegetation53.13or the drainage system is the privilege of the fee owner or assigns. The county drainage 53.14inspector shall establish rules for the fee owner and assigns to harvest the grass vegetation.53.15    Sec. 42. Minnesota Statutes 2006, section 103E.021, subdivision 3, is amended to read:53.16    Subd. 3. Agricultural practices prohibited. Agricultural practices, other than 53.17those required for the maintenance of a permanent growth of grass perennial vegetation, 53.18are not permitted on any portion of the property acquired for planting perennial vegetation.53.19    Sec. 43. Minnesota Statutes 2006, section 103E.021, is amended by adding a 53.20subdivision to read:53.21    Subd. 6.Incremental implementation of vegetated ditch buffer strips and side 53.22inlet controls.(a) Notwithstanding other provisions of this chapter requiring appointment 53.23of viewers and redetermination of benefits and damages, a drainage authority may 53.24implement permanent buffer strips of perennial vegetation approved by the drainage 53.25authority or side inlet controls, or both, adjacent to a public drainage ditch, where 53.26necessary to control erosion and sedimentation, improve water quality, or maintain the 53.27efficiency of the drainage system. Preference should be given to planting native species of 53.28a local ecotype. The approved perennial vegetation shall not impede future maintenance 53.29of the ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width 53.30measured outward from the top edge of the existing constructed channel. Drainage system 53.31rights-of-way for the acreage and additional property required for the permanent strips 53.32must be acquired by the authority having jurisdiction.54.1    (b) A project under this subdivision shall be implemented as a repair according to 54.2section 103E.705, except that the drainage authority may appoint an engineer to examine 54.3the drainage system and prepare an engineer's repair report for the project.54.4    (c) Damages shall be determined by the drainage authority, or viewers, appointed by 54.5the drainage authority, according to section 103E.315, subdivision 8. A damages statement 54.6shall be prepared, including an explanation of how the damages were determined for each 54.7property affected by the project, and filed with the auditor or watershed district. Within 30 54.8days after the damages statement is filed, the auditor or watershed district shall prepare 54.9property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2), 54.10(6), (7), and (8), and mail a copy of the property owner's report and damages statement to 54.11each owner of property affected by the proposed project.54.12    (d) After a damages statement is filed, the drainage authority shall set a time, by 54.13order, not more than 30 days after the date of the order, for a hearing on the project. At 54.14least ten days before the hearing, the auditor or watershed district shall give notice by mail 54.15of the time and location of the hearing to the owners of property and political subdivisions 54.16likely to be affected by the project.54.17    (e) The drainage authority shall make findings and order the repairs to be made if 54.18the drainage authority determines from the evidence presented at the hearing and by the 54.19viewers and engineer, if appointed, that the repairs are necessary for the drainage system 54.20and the costs of the repairs are within the limitations of section 103E.705.54.21    Sec. 44. [103E.067] DITCH BUFFER STRIP ANNUAL REPORTING.54.22    The drainage authority shall annually submit a report to the Board of Water and Soil 54.23Resources for the calendar year including:54.24    (1) the number and types of actions for which viewers were appointed;54.25    (2) the number of miles of buffer strips established according to section 103E.021;54.26    (3) the number of drainage system inspections conducted; and54.27    (4) the number of violations of section 103E.021 identified and enforcement actions 54.28taken.54.29    Sec. 45. Minnesota Statutes 2006, section 103E.315, subdivision 8, is amended to read:54.30    Subd. 8. Extent of damages. Damages to be paid may include:54.31    (1) the fair market value of the property required for the channel of an open ditch 54.32and the permanent grass strip of perennial vegetation under section 
         103E.021; 54.33    (2) the diminished value of a farm due to severing a field by an open ditch;54.34    (3) loss of crop production during drainage project construction; and55.1    (4) the diminished productivity or land value from increased overflow.; and55.2    (5) costs to restore a perennial vegetative cover or structural practice existing 55.3under a federal or state conservation program adjacent to the permanent drainage system 55.4right-of-way and damaged by the drainage project.55.5    Sec. 46. Minnesota Statutes 2006, section 103E.321, subdivision 1, is amended to read:55.6    Subdivision 1. Requirements. The viewers' report must show, in tabular form, 55.7for each lot, 40-acre tract, and fraction of a lot or tract under separate ownership that 55.8is benefited or damaged:55.9    (1) a description of the lot or tract, under separate ownership, that is benefited or 55.10damaged;55.11    (2) the names of the owners as they appear on the current tax records of the county 55.12and their addresses;55.13    (3) the number of acres in each tract or lot;55.14    (4) the number and value of acres added to a tract or lot by the proposed drainage of 55.15public waters;55.16    (5) the damage, if any, to riparian rights;55.17    (6) the damages paid for the permanent grass strip of perennial vegetation under 55.18section 
         103E.021; 55.19    (7) the total number and value of acres added to a tract or lot by the proposed 55.20drainage of public waters, wetlands, and other areas not currently being cultivated;55.21    (8) the number of acres and amount of benefits being assessed for drainage of areas 55.22which before the drainage benefits could be realized would require a public waters work 55.23permit to work in public waters under section 
         103G.245 to excavate or fill a navigable 55.24water body under United States Code, title 33, section 403, or a permit to discharge into 55.25waters of the United States under United States Code, title 33, section 1344; 55.26    (9) the number of acres and amount of benefits being assessed for drainage of areas 55.27that would be considered conversion of a wetland under United States Code, title 16, 55.28section 3821, if the area was placed in agricultural production;55.29    (10) the amount of right-of-way acreage required; and55.30    (11) the amount that each tract or lot will be benefited or damaged.55.31    Sec. 47. Minnesota Statutes 2006, section 103E.701, is amended by adding a 55.32subdivision to read:55.33    Subd. 7.Restoration; disturbance or destruction by repair.If a drainage system 55.34repair disturbs or destroys a perennial vegetative cover or structural practice existing 56.1under a federal or state conservation program adjacent to the permanent drainage system 56.2right-of-way, the practice must be restored according to the applicable practice plan or 56.3as determined by the drainage authority, if a practice plan is not available. Restoration 56.4costs shall be paid by the drainage system.56.5    Sec. 48. Minnesota Statutes 2006, section 103E.705, subdivision 1, is amended to read:56.6    Subdivision 1. Inspection. After the construction of a drainage system has been 56.7completed, the drainage authority shall maintain the drainage system that is located in its 56.8jurisdiction, including grass the permanent strips of perennial vegetation under section 56.9103E.021
         , and provide the repairs necessary to make the drainage system efficient. The 56.10drainage authority shall have the drainage system inspected on a regular basis by an 56.11inspection committee of the drainage authority or a drainage inspector appointed by the 56.12drainage authority. Open drainage ditches shall be inspected at a minimum of every five 56.13years when no violation of section 103E.021 is found and annually when a violation of 56.14section 103E.021 is found, until one year after the violation is corrected.56.15    Sec. 49. Minnesota Statutes 2006, section 103E.705, subdivision 2, is amended to read:56.16    Subd. 2. Grass Permanent strip of perennial vegetation inspection and 56.17compliance notice. (a) The drainage authority having jurisdiction over a drainage system 56.18must inspect the drainage system for violations of section 
         103E.021. If an inspection 56.19committee of the drainage authority or a drainage inspector determines that permanent 56.20grass strips of perennial vegetation are not being maintained in compliance with section 56.21103E.021
         , a compliance notice must be sent to the property owner. 56.22    (b) The notice must state:56.23    (1) the date the ditch was inspected;56.24    (2) the persons making the inspection;56.25    (3) that spoil banks are to be spread in a manner consistent with the plan and function 56.26of the drainage system and that the drainage system has acquired a grass permanent strip 56.2716-1/2 feet in width or to the crown of the spoil bank, whichever is greater of perennial 56.28vegetation, according to section 103E.021;56.29    (4) the violations of section 
         103E.021; 56.30    (5) the measures that must be taken by the property owner to comply with section 56.31103E.021
          and the date when the property must be in compliance; and 56.32    (6) that if the property owner does not comply by the date specified, the drainage 56.33authority will perform the work necessary to bring the area into compliance with section 56.34103E.021
          and charge the cost of the work to the property owner. 57.1    (c) If a property owner does not bring an area into compliance with section 
         103E.02157.2as provided in the compliance notice, the inspection committee or drainage inspector 57.3must notify the drainage authority. 57.4    (d) This subdivision applies to property acquired under section 
         103E.021. 57.5    Sec. 50. Minnesota Statutes 2006, section 103E.705, subdivision 3, is amended to read:57.6    Subd. 3. Drainage inspection report. For each drainage system that the board 57.7designates and requires the drainage inspector to examine, the drainage inspector shall 57.8make a drainage inspection report in writing to the board after examining a drainage 57.9system, designating portions that need repair or maintenance of grass the permanent57.10strips of perennial vegetation and the location and nature of the repair or maintenance. 57.11The board shall consider the drainage inspection report at its next meeting and may repair 57.12all or any part of the drainage system as provided under this chapter. The grass permanent57.13strips of perennial vegetation must be maintained in compliance with section 
         103E.021. 57.14    Sec. 51. Minnesota Statutes 2006, section 103E.728, subdivision 2, is amended to read:57.15    Subd. 2. Additional assessment for agricultural practices on grass permanent57.16strip of perennial vegetation. (a) The drainage authority may, after notice and hearing, 57.17charge an additional assessment on property that has agricultural practices on or otherwise 57.18violates provisions related to the permanent grass strip of perennial vegetation acquired 57.19under section 
         103E.021. 57.20    (b) The drainage authority may determine the cost of the repair per mile of open 57.21ditch on the ditch system. Property that is in violation of the grass requirement shall be 57.22assessed a cost of 20 percent of the repair cost per open ditch mile multiplied by the length 57.23of open ditch in miles on the property in violation.57.24    (c) After the amount of the additional assessment is determined and applied to the 57.25repair cost, the balance of the repair cost may be apportioned pro rata as provided in 57.26subdivision 1.57.27    Sec. 52. Minnesota Statutes 2006, section 103G.222, subdivision 1, is amended to read:57.28    Subdivision 1. Requirements. (a) Wetlands must not be drained or filled, wholly 57.29or partially, unless replaced by restoring or creating wetland areas of at least equal 57.30public value under a replacement plan approved as provided in section 
         103G.2242, a 57.31replacement plan under a local governmental unit's comprehensive wetland protection 57.32and management plan approved by the board under section 
         103G.2243, or, if a permit to 57.33mine is required under section 
         93.481, under a mining reclamation plan approved by the 58.1commissioner under the permit to mine. Mining reclamation plans shall apply the same 58.2principles and standards for replacing wetlands by restoration or creation of wetland areas 58.3that are applicable to mitigation plans approved as provided in section 
         103G.2242. Public 58.4value must be determined in accordance with section 
         103B.3355 or a comprehensive 58.5wetland protection and management plan established under section 
         103G.2243. Sections 58.6103G.221
          to 
         103G.2372 also apply to excavation in permanently and semipermanently 58.7flooded areas of types 3, 4, and 5 wetlands. 58.8    (b) Replacement must be guided by the following principles in descending order 58.9of priority:58.10    (1) avoiding the direct or indirect impact of the activity that may destroy or diminish 58.11the wetland;58.12    (2) minimizing the impact by limiting the degree or magnitude of the wetland 58.13activity and its implementation;58.14    (3) rectifying the impact by repairing, rehabilitating, or restoring the affected 58.15wetland environment;58.16    (4) reducing or eliminating the impact over time by preservation and maintenance 58.17operations during the life of the activity;58.18    (5) compensating for the impact by restoring a wetland; and58.19    (6) compensating for the impact by replacing or providing substitute wetland 58.20resources or environments.58.21    For a project involving the draining or filling of wetlands in an amount not exceeding 58.2210,000 square feet more than the applicable amount in section 
         103G.2241, subdivision 9, 58.23paragraph (a), the local government unit may make an on-site sequencing determination 58.24without a written alternatives analysis from the applicant. 58.25    (c) If a wetland is located in a cultivated field, then replacement must be 58.26accomplished through restoration only without regard to the priority order in paragraph 58.27(b), provided that a deed restriction is placed on the altered wetland prohibiting 58.28nonagricultural use for at least ten years.58.29    (d) If a wetland is drained under section 103G.2241, subdivision 2, the local 58.30government unit may require a deed restriction that prohibits nonagricultural use for at 58.31least ten years unless the drained wetland is replaced as provided under this section. The 58.32local government unit may require the deed restriction if it determines the wetland area 58.33drained is at risk of conversion to a nonagricultural use within ten years based on the 58.34zoning classification, proximity to a municipality or full service road, or other criteria as 58.35determined by the local government unit.59.1    (e) Restoration and replacement of wetlands must be accomplished in accordance 59.2with the ecology of the landscape area affected and ponds that are created primarily to 59.3fulfill stormwater management, and water quality treatment requirements may not be 59.4used to satisfy replacement requirements under this chapter unless the design includes 59.5pretreatment of runoff and the pond is functioning as a wetland.59.6    (e) (f) Except as provided in paragraph (f) (g), for a wetland or public waters wetland 59.7located on nonagricultural land, replacement must be in the ratio of two acres of replaced 59.8wetland for each acre of drained or filled wetland.59.9    (f) (g) For a wetland or public waters wetland located on agricultural land or in a 59.10greater than 80 percent area, replacement must be in the ratio of one acre of replaced 59.11wetland for each acre of drained or filled wetland.59.12    (g) (h) Wetlands that are restored or created as a result of an approved replacement 59.13plan are subject to the provisions of this section for any subsequent drainage or filling.59.14    (h) (i) Except in a greater than 80 percent area, only wetlands that have been 59.15restored from previously drained or filled wetlands, wetlands created by excavation in 59.16nonwetlands, wetlands created by dikes or dams along public or private drainage ditches, 59.17or wetlands created by dikes or dams associated with the restoration of previously drained 59.18or filled wetlands may be used in a statewide banking program established in rules adopted 59.19under section 
         103G.2242, subdivision 1. Modification or conversion of nondegraded 59.20naturally occurring wetlands from one type to another are not eligible for enrollment in a 59.21statewide wetlands bank. 59.22    (i) (j) The Technical Evaluation Panel established under section 
         103G.2242, 59.23subdivision 2
         , shall ensure that sufficient time has occurred for the wetland to develop 59.24wetland characteristics of soils, vegetation, and hydrology before recommending that the 59.25wetland be deposited in the statewide wetland bank. If the Technical Evaluation Panel has 59.26reason to believe that the wetland characteristics may change substantially, the panel shall 59.27postpone its recommendation until the wetland has stabilized. 59.28    (j) (k) This section and sections 
         103G.223 to 
         103G.2242, 
         103G.2364, and 59.29103G.2365
          apply to the state and its departments and agencies. 59.30    (k) (l) For projects involving draining or filling of wetlands associated with a new 59.31public transportation project, and for projects expanded solely for additional traffic 59.32capacity, public transportation authorities may purchase credits from the board at the cost 59.33to the board to establish credits. Proceeds from the sale of credits provided under this 59.34paragraph are appropriated to the board for the purposes of this paragraph.59.35    (l) (m) A replacement plan for wetlands is not required for individual projects that 59.36result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction, 60.1or replacement of a currently serviceable existing state, city, county, or town public road 60.2necessary, as determined by the public transportation authority, to meet state or federal 60.3design or safety standards or requirements, excluding new roads or roads expanded solely 60.4for additional traffic capacity lanes. This paragraph only applies to authorities for public 60.5transportation projects that:60.6    (1) minimize the amount of wetland filling or draining associated with the project 60.7and consider mitigating important site-specific wetland functions on-site;60.8    (2) except as provided in clause (3), submit project-specific reports to the board, the 60.9Technical Evaluation Panel, the commissioner of natural resources, and members of the 60.10public requesting a copy at least 30 days prior to construction that indicate the location, 60.11amount, and type of wetlands to be filled or drained by the project or, alternatively, 60.12convene an annual meeting of the parties required to receive notice to review projects to 60.13be commenced during the upcoming year; and60.14    (3) for minor and emergency maintenance work impacting less than 10,000 square 60.15feet, submit project-specific reports, within 30 days of commencing the activity, to the 60.16board that indicate the location, amount, and type of wetlands that have been filled 60.17or drained.60.18    Those required to receive notice of public transportation projects may appeal 60.19minimization, delineation, and on-site mitigation decisions made by the public 60.20transportation authority to the board according to the provisions of section 
         103G.2242, 60.21subdivision 9
         . The Technical Evaluation Panel shall review minimization and delineation 60.22decisions made by the public transportation authority and provide recommendations 60.23regarding on-site mitigation if requested to do so by the local government unit, a 60.24contiguous landowner, or a member of the Technical Evaluation Panel. 60.25    Except for state public transportation projects, for which the state Department of 60.26Transportation is responsible, the board must replace the wetlands, and wetland areas of 60.27public waters if authorized by the commissioner or a delegated authority, drained or filled 60.28by public transportation projects on existing roads.60.29    Public transportation authorities at their discretion may deviate from federal and 60.30state design standards on existing road projects when practical and reasonable to avoid 60.31wetland filling or draining, provided that public safety is not unreasonably compromised. 60.32The local road authority and its officers and employees are exempt from liability for 60.33any tort claim for injury to persons or property arising from travel on the highway and 60.34related to the deviation from the design standards for construction or reconstruction under 60.35this paragraph. This paragraph does not preclude an action for damages arising from 60.36negligence in construction or maintenance on a highway.61.1    (m) (n) If a landowner seeks approval of a replacement plan after the proposed 61.2project has already affected the wetland, the local government unit may require the 61.3landowner to replace the affected wetland at a ratio not to exceed twice the replacement 61.4ratio otherwise required.61.5    (n) (o) A local government unit may request the board to reclassify a county or 61.6watershed on the basis of its percentage of presettlement wetlands remaining. After 61.7receipt of satisfactory documentation from the local government, the board shall change 61.8the classification of a county or watershed. If requested by the local government unit, 61.9the board must assist in developing the documentation. Within 30 days of its action to 61.10approve a change of wetland classifications, the board shall publish a notice of the change 61.11in the Environmental Quality Board Monitor.61.12    (o) (p) One hundred citizens who reside within the jurisdiction of the local 61.13government unit may request the local government unit to reclassify a county or watershed 61.14on the basis of its percentage of presettlement wetlands remaining. In support of their 61.15petition, the citizens shall provide satisfactory documentation to the local government unit. 61.16The local government unit shall consider the petition and forward the request to the board 61.17under paragraph (n) (o) or provide a reason why the petition is denied.61.18EFFECTIVE DATE.This section is effective the day following final enactment.61.19    Sec. 53. Minnesota Statutes 2006, section 103G.222, subdivision 3, is amended to read:61.20    Subd. 3. Wetland replacement siting. (a) Siting wetland replacement must follow 61.21this priority order:61.22    (1) on site or in the same minor watershed as the affected wetland;61.23    (2) in the same watershed as the affected wetland;61.24    (3) in the same county as the affected wetland;61.25    (4) for replacement by wetland banking, in the same wetland bank service area as 61.26the impacted wetland, except that impacts in a 50 to 80 percent area must be replaced in 61.27a 50 to 80 percent area and impacts in a less than 50 percent area must be replaced in a 61.28less than 50 percent area;61.29    (5) for project specific replacement, in an adjacent watershed or county to the 61.30affected wetland, or for replacement by wetland banking, in an adjacent wetland bank 61.31service area, except that impacts in a 50 to 80 percent area must be replaced in a 50 to 61.3280 percent area and impacts in a less than 50 percent area must be replaced in a less 61.33than 50 percent area; and61.34    (5) (6) statewide, only for wetlands affected in greater than 80 percent areas and for 61.35public transportation projects, except that wetlands affected in less than 50 percent areas 62.1must be replaced in less than 50 percent areas, and wetlands affected in the seven-county 62.2metropolitan area must be replaced at a ratio of two to one in: (i) the affected county or, 62.3(ii) in another of the seven metropolitan counties, or (iii) in one of the major watersheds 62.4that are wholly or partially within the seven-county metropolitan area, but at least one to 62.5one must be replaced within the seven-county metropolitan area.62.6    (b) Notwithstanding paragraph (a), siting wetland replacement in greater than 80 62.7percent areas may follow the priority order under this paragraph: (1) by wetland banking 62.8after evaluating on-site replacement and replacement within the watershed; (2) replaced 62.9in an adjacent wetland bank service area if wetland bank credits are not reasonably 62.10available in the same wetland bank service area as the affected wetland, as determined 62.11by the local government unit or by a comprehensive inventory approved by the board; 62.12and (3) statewide.62.13    (c) Notwithstanding paragraph (a), siting wetland replacement in the seven-county 62.14metropolitan area must follow the priority order under this paragraph: (1) in the affected 62.15county; (2) in another of the seven metropolitan counties; or (3) in one of the major 62.16watersheds that are wholly or partially within the seven-county metropolitan area, but at 62.17least one to one must be replaced within the seven-county metropolitan area.62.18    (d) The exception in paragraph (a), clause (5) (6), does not apply to replacement 62.19completed using wetland banking credits established by a person who submitted a 62.20complete wetland banking application to a local government unit by April 1, 1996.62.21    (c) (e) When reasonable, practicable, and environmentally beneficial replacement 62.22opportunities are not available in siting priorities listed in paragraph (a), the applicant 62.23may seek opportunities at the next level.62.24    (d) (f) For the purposes of this section, "reasonable, practicable, and environmentally 62.25beneficial replacement opportunities" are defined as opportunities that:62.26    (1) take advantage of naturally occurring hydrogeomorphological conditions and 62.27require minimal landscape alteration;62.28    (2) have a high likelihood of becoming a functional wetland that will continue 62.29in perpetuity;62.30    (3) do not adversely affect other habitat types or ecological communities that are 62.31important in maintaining the overall biological diversity of the area; and62.32    (4) are available and capable of being done after taking into consideration cost, 62.33existing technology, and logistics consistent with overall project purposes.62.34    (e) (g) Regulatory agencies, local government units, and other entities involved in 62.35wetland restoration shall collaborate to identify potential replacement opportunities within 62.36their jurisdictional areas.63.1EFFECTIVE DATE.This section is effective the day following final enactment.63.2    Sec. 54. Minnesota Statutes 2006, section 103G.2241, subdivision 1, is amended to 63.3read:63.4    Subdivision 1. Agricultural activities.(a) A replacement plan for wetlands is 63.5not required for:63.6    (1) activities in a wetland that was planted with annually seeded crops, was in a crop 63.7rotation seeding of pasture grass or legumes, or was required to be set aside to receive 63.8price support or other payments under United States Code, title 7, sections 1421 to 1469, 63.9in six of the last ten years prior to January 1, 1991;63.10    (2) activities in a wetland that is or has been enrolled in the federal conservation 63.11reserve program under United States Code, title 16, section 3831, that:63.12    (i) was planted with annually seeded crops, was in a crop rotation seeding, or was 63.13required to be set aside to receive price support or payment under United States Code, 63.14title 7, sections 1421 to 1469, in six of the last ten years prior to being enrolled in the 63.15program; and63.16    (ii) has not been restored with assistance from a public or private wetland restoration 63.17program;63.18    (3) activities in a wetland that has received a commenced drainage determination 63.19provided for by the federal Food Security Act of 1985, that was made to the county 63.20Agricultural Stabilization and Conservation Service office prior to September 19, 1988, 63.21and a ruling and any subsequent appeals or reviews have determined that drainage of the 63.22wetland had been commenced prior to December 23, 1985;63.23    (4) activities in a type 1 wetland on agricultural land, except for bottomland 63.24hardwood type 1 wetlands, and activities in a type 2 or type 6 wetland that is less than two 63.25acres in size and located on agricultural land;63.26    (1) activities in a wetland conducted as part of normal farming practices. For 63.27purposes of this clause, "normal farming practices" means farming, silvicultural, grazing, 63.28and ranching activities such as plowing, seeding, cultivating, and harvesting for the 63.29production of feed, food, fuel, fiber, and forest products, but does not include activities 63.30that result in the draining or filling of wetlands in whole or part;63.31    (2) soil and water conservation practices approved by the soil and water conservation 63.32district, after review by the Technical Evaluation Panel;63.33    (5) (3) aquaculture activities including pond excavation and construction and 63.34maintenance of associated access roads and dikes authorized under, and conducted in 63.35accordance with, a permit issued by the United States Army Corps of Engineers under 64.1section 404 of the federal Clean Water Act, United States Code, title 33, section 1344, but 64.2not including construction or expansion of buildings; or64.3    (6) (4) wild rice production activities, including necessary diking and other activities 64.4authorized under a permit issued by the United States Army Corps of Engineers under 64.5section 404 of the federal Clean Water Act, United States Code, title 33, section 1344;.64.6    (7) normal agricultural practices to control noxious or secondary weeds as defined 64.7by rule of the commissioner of agriculture, in accordance with applicable requirements 64.8under state and federal law, including established best management practices; and64.9    (8) agricultural activities in a wetland that is on agricultural land:64.10    (i) annually enrolled in the federal Agriculture Improvement and Reform Act of 64.111996 and is subject to United States Code, title 16, sections 3821 to 3823, in effect on 64.12January 1, 2000; or64.13    (ii) subject to subsequent federal farm program restrictions that meet minimum 64.14state standards under this chapter and sections 103A.202 and 103B.3355 and that have 64.15been approved by the Board of Water and Soil Resources, the commissioners of natural 64.16resources and agriculture, and the Pollution Control Agency. 64.17    (b) Land enrolled in a federal farm program under paragraph (a), clause (8), is 64.18eligible for easement participation for those acres not already compensated under a federal 64.19program.64.20    (c) The exemption under paragraph (a), clause (4), may be expanded to additional 64.21acreage, including types 1, 2, and 6 wetlands that are part of a larger wetland system, when 64.22the additional acreage is part of a conservation plan approved by the local soil and water 64.23conservation district, the additional draining or filling is necessary for efficient operation 64.24of the farm, the hydrology of the larger wetland system is not adversely affected, and 64.25wetlands other than types 1, 2, and 6 are not drained or filled.64.26EFFECTIVE DATE.This section is effective the day following final enactment.64.27    Sec. 55. Minnesota Statutes 2006, section 103G.2241, subdivision 2, is amended to 64.28read:64.29    Subd. 2. Drainage. (a) For the purposes of this subdivision, "public drainage 64.30system" means a drainage system as defined in section 
         103E.005, subdivision 12, and any 64.31ditch or tile lawfully connected to the drainage system. If wetlands drained under this 64.32subdivision are converted to uses prohibited under paragraph (b), clause (2), during the 64.33ten-year period following drainage, the wetlands must be replaced according to section 64.34103G.222.65.1    (b) A replacement plan is not required for draining of type 1 wetlands, or up to five 65.2acres of type 2 or 6 wetlands, in an unincorporated area on land that has been assessed 65.3drainage benefits for a public drainage system, provided that:65.4    (1) during the 20-year period that ended January 1, 1992:65.5    (i) there was an expenditure made from the drainage system account for the public 65.6drainage system;65.7    (ii) the public drainage system was repaired or maintained as approved by the 65.8drainage authority; or65.9    (iii) no repair or maintenance of the public drainage system was required under 65.10section 
         103E.705, subdivision 1, as determined by the public drainage authority; and 65.11    (2) the wetlands are not drained for conversion to:65.12    (i) platted lots;65.13    (ii) planned unit, commercial, or industrial developments; or65.14    (iii) any development with more than one residential unit per 40 acres.65.15If wetlands drained under this paragraph are converted to uses prohibited under clause 65.16(2) during the ten-year period following drainage, the wetlands must be replaced under 65.17section 103G.222. 65.18    (c) A replacement plan is not required for draining or filling of wetlands, except for 65.19draining types 3, 4, and 5 wetlands that have been in existence for more than 25 years, 65.20resulting from maintenance and repair of existing public drainage systems.65.21    (d) A replacement plan is not required for draining or filling of wetlands, except 65.22for draining wetlands that have been in existence for more than 25 years, resulting from 65.23maintenance and repair of existing drainage systems other than public drainage systems.65.24    (e) A replacement plan is not required for draining or filling of wetlands resulting 65.25from activities conducted as part of a public drainage system improvement project that 65.26received final approval from the drainage authority before July 1, 1991, and after July 1, 65.271986, if:65.28    (1) the approval remains valid;65.29    (2) the project remains active; and65.30    (3) no additional drainage will occur beyond that originally approved.65.31    (e) A replacement plan is not required for draining agricultural land that: (1) was 65.32planted with annually seeded crops before June 10, except for crops that are normally 65.33planted after that date, in eight out of the ten most recent years prior to the impact; (2) 65.34was in a crop rotation seeding of pasture grass or legumes in eight out of the ten most 65.35recent years prior to the impact; or (3) was enrolled in a state or federal land conservation 65.36program and met the requirements of clause (1) or (2) before enrollment.66.1    (f) The public drainage authority may, as part of the repair, install control structures, 66.2realign the ditch, construct dikes along the ditch, or make other modifications as necessary 66.3to prevent drainage of the wetland.66.4    (g) Wetlands of all types that would be drained as a part of a public drainage repair 66.5project are eligible for the permanent wetlands preserve under section 
         103F.516. The 66.6board shall give priority to acquisition of easements on types 3, 4, and 5 wetlands that have 66.7been in existence for more than 25 years on public drainage systems and other wetlands 66.8that have the greatest risk of drainage from a public drainage repair project. 66.9EFFECTIVE DATE.This section is effective the day following final enactment.66.10    Sec. 56. Minnesota Statutes 2006, section 103G.2241, subdivision 3, is amended to 66.11read:66.12    Subd. 3. Federal approvals. A replacement plan for wetlands is not required for:66.13    (1) activities exempted from federal regulation under United States Code, title 33, 66.14section 1344(f), as in effect on January 1, 1991;66.15    (2) activities authorized under, and conducted in accordance with, an applicable 66.16general permit issued by the United States Army Corps of Engineers under section 404 66.17of the federal Clean Water Act, United States Code, title 33, section 1344, except the 66.18nationwide permit in Code of Federal Regulations, title 33, section 330.5, paragraph (a), 66.19clauses (14), limited to when a new road crosses a wetland, and (26), as in effect on 66.20January 1, 1991; or66.21    (3) activities authorized under the federal Clean Water Act, section 404, or the 66.22Rivers and Harbors Act, section 10, regulations that meet minimum state standards 66.23under this chapter and sections 
         103A.202 and 
         103B.3355 and that have been approved 66.24by the Board of Water and Soil Resources, the commissioners of natural resources and 66.25agriculture, and the Pollution Control Agency. 66.26EFFECTIVE DATE.This section is effective the day following final enactment.66.27    Sec. 57. Minnesota Statutes 2006, section 103G.2241, subdivision 6, is amended to 66.28read:66.29    Subd. 6. Utilities; public works.(a) A replacement plan for wetlands is not 66.30required for:66.31    (1) placement, maintenance, repair, enhancement, or replacement of utility or 66.32utility-type service if:67.1    (i) the impacts of the proposed project on the hydrologic and biological 67.2characteristics of the wetland have been avoided and minimized to the extent possible; and67.3    (ii) the proposed project significantly modifies or alters less than one-half acre of 67.4wetlands;67.5    (2) activities associated with routine maintenance of utility and pipeline 67.6rights-of-way, provided the activities do not result in additional intrusion into the wetland;67.7    (3) alteration of a wetland associated with the operation, maintenance, or repair of 67.8an interstate pipeline within all existing or acquired interstate pipeline rights-of-way;67.9    (4) emergency repair and normal maintenance and repair of existing public works, 67.10provided the activity does not result in additional intrusion of the public works into the 67.11wetland and does not result in the draining or filling, wholly or partially, of a wetland;67.12    (5) normal maintenance and minor repair of structures causing no additional 67.13intrusion of an existing structure into the wetland, and maintenance and repair of private 67.14crossings that do not result in the draining or filling, wholly or partially, of a wetland; or67.15    (6) repair and updating of existing individual sewage treatment systems as necessary 67.16to comply with local, state, and federal regulations.67.17    (1) new placement or maintenance, repair, enhancement, or replacement of existing 67.18utility or utility-type service, including pipelines, if:67.19    (i) the direct and indirect impacts of the proposed project have been avoided and 67.20minimized to the extent possible; and67.21    (ii) the proposed project significantly modifies or alters less than one-half acre of 67.22wetlands;67.23    (2) activities associated with operation, routine maintenance, or emergency repair of 67.24existing utilities and public work structures, including pipelines, provided the activities 67.25do not result in additional wetland intrusion or additional draining or filling of a wetland 67.26either wholly or partially; or67.27    (3) repair and updating of existing individual sewage treatment systems necessary to 67.28comply with local, state, and federal regulations.67.29    (b) For maintenance, repair, and replacement, the local government unit may issue 67.30a seasonal or annual exemption certification or the utility may proceed without local 67.31government unit certification if the utility is carrying out the work according to approved 67.32best management practices. Work of an emergency nature may proceed as necessary 67.33and any drain or fill activities shall be addressed with the local government unit after 67.34the emergency work has been completed.67.35EFFECTIVE DATE.This section is effective the day following final enactment.68.1    Sec. 58. Minnesota Statutes 2006, section 103G.2241, subdivision 9, is amended to 68.2read:68.3    Subd. 9. De minimis. (a) Except as provided in paragraphs (b) and (c), a 68.4replacement plan for wetlands is not required for draining or filling the following amounts 68.5of wetlands as part of a project:68.6    (1) 10,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and 68.7tamarack wetlands, outside of the shoreland wetland protection zone in a greater than 68.880 percent area;68.9    (2) 5,000 2,500 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar 68.10and tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80 68.11percent area;68.12    (3) 2,000 1,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland 68.13wetland protection zone in a less than 50 percent area;68.14    (4) 400100 square feet of wetland types not listed in clauses (1) to (3) outside of 68.15the building setback zone of the shoreland wetland protection zones in all counties; or68.16    (5) 400 square feet of type 1, 2, 3, 4, 5, 6, 7, or 8 wetland types listed in clauses (1) 68.17to (3), in beyond the building setback zone, as defined in the local shoreland management 68.18ordinance, but within the shoreland wetland protection zone, except that. In a greater 68.19than 80 percent area, the local government unit may increase the de minimis amount 68.20up to 1,000 square feet in the shoreland protection zone in areas beyond the building 68.21setback if the wetland is isolated and is determined to have no direct surficial connection 68.22to the public water. To the extent that a local shoreland management ordinance is more 68.23restrictive than this provision, the local shoreland ordinance applies; or68.24    (6) up to 20 square feet of wetland, regardless of type or location.68.25    (b) The amounts listed in paragraph (a), clauses (1) to (5) (6), may not be combined 68.26on a project.68.27    (c) This exemption no longer applies to a landowner's portion of a wetland when 68.28the cumulative area drained or filled of the landowner's portion since January 1, 1992, is 68.29the greatest of:68.30    (1) the applicable area listed in paragraph (a), if the landowner owns the entire 68.31wetland;68.32    (2) five percent of the landowner's portion of the wetland; or68.33    (3) 400 square feet.68.34    (d) This exemption may not be combined with another exemption in this section on 68.35a project.68.36    (e) Property may not be divided to increase the amounts listed in paragraph (a).69.1EFFECTIVE DATE.This section is effective the day following final enactment.69.2    Sec. 59. Minnesota Statutes 2006, section 103G.2241, subdivision 11, is amended to 69.3read:69.4    Subd. 11. Exemption conditions. (a) A person conducting an activity in a wetland 69.5under an exemption in subdivisions 1 to 10 shall ensure that:69.6    (1) appropriate erosion control measures are taken to prevent sedimentation of 69.7the water;69.8    (2) the activity does not block fish passage in a watercourse; and69.9    (3) the activity is conducted in compliance with all other applicable federal, 69.10state, and local requirements, including best management practices and water resource 69.11protection requirements established under chapter 103H.69.12    (b) An activity is exempt if it qualifies for any one of the exemptions, even though it 69.13may be indicated as not exempt under another exemption.69.14    (c) Persons proposing to conduct an exempt activity are encouraged to contact the 69.15local government unit or the local government unit's designee for advice on minimizing 69.16wetland impacts.69.17    (d) The board shall develop rules that address the application and implementation 69.18of exemptions and that provide for estimates and reporting of exempt wetland impacts, 69.19including those in section 103G.2241, subdivisions 2, 6, and 9.69.20EFFECTIVE DATE.This section is effective the day following final enactment.69.21    Sec. 60. Minnesota Statutes 2006, section 103G.2242, subdivision 2, is amended to 69.22read:69.23    Subd. 2. Evaluation. (a) Questions concerning the public value, location, size, 69.24or type of a wetland shall be submitted to and determined by a Technical Evaluation 69.25Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of 69.26a technical professional employee of the board, a technical professional employee of 69.27the local soil and water conservation district or districts, a technical professional with 69.28expertise in water resources management appointed by the local government unit, and 69.29a technical professional employee of the Department of Natural Resources for projects 69.30affecting public waters or wetlands adjacent to public waters. The panel shall use the 69.31"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987), 69.32including updates, supplementary guidance, and replacements, if any, "Wetlands of 69.33the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition), 69.34and "Classification of Wetlands and Deepwater Habitats of the United States" (1979 70.1edition). The panel shall provide the wetland determination and recommendations on 70.2other technical matters to the local government unit that must approve a replacement 70.3plan, wetland banking plan, exemption determination, no-loss determination, or wetland 70.4boundary or type determination and may recommend approval or denial of the plan. The 70.5authority must consider and include the decision of the Technical Evaluation Panel in their 70.6approval or denial of a plan or determination.70.7    (b) Persons conducting wetland or public waters boundary delineations or type 70.8determinations are exempt from the requirements of chapter 326. By January 15, 2001, 70.9the board, in consultation with the Minnesota Association of Professional Soil Scientists, 70.10the University of Minnesota, and the Wetland Delineators' Association, shall submit a plan 70.11for a professional wetland delineator certification program to the legislature. The board 70.12may develop a professional wetland delineator certification program.70.13EFFECTIVE DATE.This section is effective the day following final enactment.70.14    Sec. 61. Minnesota Statutes 2006, section 103G.2242, subdivision 2a, is amended to 70.15read:70.16    Subd. 2a. Wetland boundary or type determination. (a) A landowner may apply 70.17for a wetland boundary or type determination from the local government unit. The 70.18landowner applying for the determination is responsible for submitting proof necessary 70.19to make the determination, including, but not limited to, wetland delineation field data, 70.20observation well data, topographic mapping, survey mapping, and information regarding 70.21soils, vegetation, hydrology, and groundwater both within and outside of the proposed 70.22wetland boundary.70.23    (b) A local government unit that receives an application under paragraph (a) may 70.24seek the advice of the Technical Evaluation Panel as described in subdivision 2, and, if 70.25necessary, expand the Technical Evaluation Panel. The local government unit may delegate 70.26the decision authority for wetland boundary or type determinations with the zoning 70.27administrator to designated staff, or establish other procedures it considers appropriate.70.28    (c) The local government unit decision must be made in compliance with section 70.2915.99
         . Within ten calendar days of the decision, the local government unit decision must 70.30be mailed to the landowner, members of the Technical Evaluation Panel, the watershed 70.31district or watershed management organization, if one exists, and individual members of 70.32the public who request a copy. 70.33    (d) Appeals of decisions made by designated local government staff must be made 70.34to the local government unit. Notwithstanding any law to the contrary, a ruling on an 71.1appeal must be made by the local government unit within 30 days from the date of the 71.2filing of the appeal.71.3    (e) The local government unit decision is valid for three years unless the Technical 71.4Evaluation Panel determines that natural or artificial changes to the hydrology, vegetation, 71.5or soils of the area have been sufficient to alter the wetland boundary or type.71.6EFFECTIVE DATE.This section is effective the day following final enactment.71.7    Sec. 62. Minnesota Statutes 2006, section 103G.2242, subdivision 9, is amended to 71.8read:71.9    Subd. 9. Appeal. (a) Appeal of a replacement plan, exemption, wetland banking, 71.10wetland boundary or type determination, or no-loss decision, or restoration order may 71.11be obtained by mailing a petition and payment of a filing fee of $200, which shall be 71.12retained by the board to defray administrative costs, to the board within 30 days after the 71.13postmarked date of the mailing specified in subdivision 7. If appeal is not sought within 71.1430 days, the decision becomes final. The local government unit may require the petitioner 71.15to post a letter of credit, cashier's check, or cash in an amount not to exceed $500. If the 71.16petition for hearing is accepted, the amount posted must be returned to the petitioner. 71.17Appeal may be made by:71.18    (1) the wetland owner;71.19    (2) any of those to whom notice is required to be mailed under subdivision 7; or71.20    (3) 100 residents of the county in which a majority of the wetland is located.71.21    (b) Within 30 days after receiving a petition, the board shall decide whether to 71.22grant the petition and hear the appeal. The board shall grant the petition unless the board 71.23finds that:71.24    (1) the appeal is meritless, trivial, or brought solely for the purposes of delay;71.25    (2) the petitioner has not exhausted all local administrative remedies;71.26    (3) expanded technical review is needed;71.27    (4) the local government unit's record is not adequate; or71.28    (5) the petitioner has not posted a letter of credit, cashier's check, or cash if required 71.29by the local government unit.71.30    (c) In determining whether to grant the appeal, the board shall also consider the 71.31size of the wetland, other factors in controversy, any patterns of similar acts by the local 71.32government unit or petitioner, and the consequences of the delay resulting from the appeal.71.33    (d) All appeals must be heard by the committee for dispute resolution of the board, 71.34and a decision made within 60 days of filing the local government unit's record and the 71.35written briefs submitted for the appeal. The decision must be served by mail on the parties 72.1to the appeal, and is not subject to the provisions of chapter 14. A decision whether to 72.2grant a petition for appeal and a decision on the merits of an appeal must be considered the 72.3decision of an agency in a contested case for purposes of judicial review under sections 72.414.63
          to 
         14.69. 72.5    (e) Notwithstanding section 16A.1283, the board shall establish a fee schedule to 72.6defray the administrative costs of appeals made to the board under this subdivision. Fees 72.7established under this authority shall not exceed $1,000. Establishment of the fee is not 72.8subject to the rulemaking process of chapter 14 and section 14.386 does not apply.72.9EFFECTIVE DATE.This section is effective the day following final enactment.72.10    Sec. 63. Minnesota Statutes 2006, section 103G.2242, subdivision 12, is amended to 72.11read:72.12    Subd. 12. Replacement credits. (a) No public or private wetland restoration, 72.13enhancement, or construction may be allowed for replacement unless specifically 72.14designated for replacement and paid for by the individual or organization performing the 72.15wetland restoration, enhancement, or construction, and is completed prior to any draining 72.16or filling of the wetland.72.17    (b) Paragraph (a) does not apply to a wetland whose owner has paid back with 72.18interest the individual or organization restoring, enhancing, or constructing the wetland.72.19    (c) Notwithstanding section 
         103G.222, subdivision 1, paragraph (h) (i), the 72.20following actions, and others established in rule, that are consistent with criteria in rules 72.21adopted by the board in conjunction with the commissioners of natural resources and 72.22agriculture, are eligible for replacement credit as determined by the local government unit, 72.23including enrollment in a statewide wetlands bank: 72.24    (1) reestablishment of permanent native, noninvasive vegetative cover on a wetland 72.25on agricultural land that was planted with annually seeded crops, was in a crop rotation 72.26seeding of pasture grasses or legumes, or was in a land retirement program during the 72.27past ten years;72.28    (2) buffer areas of permanent native, noninvasive vegetative cover established or 72.29preserved on upland adjacent to replacement wetlands;72.30    (3) wetlands restored for conservation purposes under terminated easements or 72.31contracts; and72.32    (4) water quality treatment ponds constructed to pretreat storm water runoff prior 72.33to discharge to wetlands, public waters, or other water bodies, provided that the water 72.34quality treatment ponds must be associated with an ongoing or proposed project that 72.35will impact a wetland and replacement credit for the treatment ponds is based on the 73.1replacement of wetland functions and on an approved stormwater management plan for 73.2the local government.73.3    (d) Notwithstanding section 
         103G.222, subdivision 1, paragraphs (e) (f) and (f) (g), 73.4the board may establish by rule different replacement ratios for restoration projects with 73.5exceptional natural resource value. 73.6EFFECTIVE DATE.This section is effective the day following final enactment.73.7    Sec. 64. Minnesota Statutes 2006, section 103G.2242, subdivision 15, is amended to 73.8read:73.9    Subd. 15. Fees paid to board. All fees established in subdivision subdivisions 9 73.10and 14 must be paid to the Board of Water and Soil Resources and credited to the general 73.11fund to be used for the purpose of administration of the wetland bank and to process 73.12appeals under section 103G.2242, subdivision 9.73.13EFFECTIVE DATE.This section is effective the day following final enactment.73.14    Sec. 65. Minnesota Statutes 2006, section 103G.2243, subdivision 2, is amended to 73.15read:73.16    Subd. 2. Plan contents. A comprehensive wetland protection and management 73.17plan may:73.18    (1) provide for classification of wetlands in the plan area based on:73.19    (i) an inventory of wetlands in the plan area;73.20    (ii) an assessment of the wetland functions listed in section 
         103B.3355, using a 73.21methodology chosen by the Technical Evaluation Panel from one of the methodologies 73.22established or approved by the board under that section; and 73.23    (iii) the resulting public values;73.24    (2) vary application of the sequencing standards in section 
         103G.222, subdivision 1, 73.25paragraph (b), for projects based on the classification and criteria set forth in the plan; 73.26    (3) vary the replacement standards of section 
         103G.222, subdivision 1, paragraphs 73.27(e) (f) and (f) (g), based on the classification and criteria set forth in the plan, for specific 73.28wetland impacts provided there is no net loss of public values within the area subject to 73.29the plan, and so long as: 73.30    (i) in a 50 to 80 percent area, a minimum acreage requirement of one acre of replaced 73.31wetland for each acre of drained or filled wetland requiring replacement is met within 73.32the area subject to the plan; and74.1    (ii) in a less than 50 percent area, a minimum acreage requirement of two acres of 74.2replaced wetland for each acre of drained or filled wetland requiring replacement is met 74.3within the area subject to the plan, except that replacement for the amount above a 1:1 74.4ratio can be accomplished as described in section 
         103G.2242, subdivision 12; and74.5    (4) in a greater than 80 percent area, allow replacement credit, based on the 74.6classification and criteria set forth in the plan, for any project that increases the public 74.7value of wetlands, including activities on adjacent upland acres; and.74.8    (5) in a greater than 80 percent area, based on the classification and criteria set forth 74.9in the plan, expand the application of the exemptions in section 103G.2241, subdivision 74.101, paragraph (a), clause (4), to also include nonagricultural land, provided there is no 74.11net loss of wetland values.74.12EFFECTIVE DATE.This section is effective the day following final enactment.74.13    Sec. 66. Minnesota Statutes 2006, section 103G.235, is amended to read:74.14103G.235 RESTRICTIONS ON ACCESS TO PUBLIC WATERS WETLANDS.74.15    Subdivision 1.Wetlands adjacent to roads. To protect the public health or safety, 74.16local units of government may by ordinance restrict public access to public waters 74.17wetlands from municipality, county, or township roads that abut public waters wetlands.74.18    Subd. 2.Privately restored or created wetlands.When a landowner creates a new 74.19wetland or restores a formerly existing wetland on private land that is adjacent to public 74.20land or a public road right-of-way, there is no public access to the created or restored 74.21wetland if posted by the landowner.74.22    Sec. 67. Minnesota Statutes 2006, section 103G.301, subdivision 2, is amended to read:74.23    Subd. 2. Permit application fees. (a) A permit application fee to defray the costs of 74.24receiving, recording, and processing the application must be paid for a permit authorized 74.25under this chapter and for each request to amend or transfer an existing permit.74.26    (b) The fee to apply for a permit to appropriate water by a nonpublic applicant or a 74.27nonagricultural irrigation applicant must be assessed to recover the reasonable costs of 74.28preparing and issuing the permit. Fees collected under this paragraph must be credited 74.29to an account in the natural resources fund and are appropriated for fiscal years 2008 74.30and 2009 to the commissioner.74.31    (b) (c) The fee to apply for a permit to appropriate water, other than a permit subject 74.32to the fee under paragraph (b); a permit to construct or repair a dam that is subject to dam 74.33safety inspection,; or a state general permit or to apply for the state water bank program is 75.1$150. The application fee for a permit to work in public waters or to divert waters for 75.2mining must be at least $150, but not more than $1,000, according to a schedule of fees 75.3adopted under section 
         16A.1285.75.4    Sec. 68. Minnesota Statutes 2006, section 115.55, subdivision 1, is amended to read:75.5    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to sections 75.6115.55
          to 
         115.56. 75.7    (b) "Advisory committee" means the Advisory Committee on Individual Sewage 75.8Treatment Systems established under the individual sewage treatment system rules. The 75.9advisory committee must be appointed to ensure geographic representation of the state 75.10and include elected public officials.75.11    (c) "Applicable requirements" means:75.12    (1) local ordinances that comply with the individual sewage treatment system rules, 75.13as required in subdivision 2; or75.14    (2) in areas not subject to the ordinances described in clause (1), the individual 75.15sewage treatment system rules.75.16    (d) "City" means a statutory or home rule charter city.75.17    (e) "Commissioner" means the commissioner of the Pollution Control Agency.75.18    (f) "Dwelling" means a building or place used or intended to be used by human 75.19occupants as a single-family or two-family unit.75.20    (g) "Individual sewage treatment system" or "system" means a sewage treatment 75.21system, or part thereof, serving a dwelling, other establishment, or group thereof, that 75.22uses subsurface soil treatment and disposal, or a holding tank, serving a dwelling, other 75.23establishment, or a group thereof.75.24    (h) "Individual sewage treatment system professional" means an inspector, installer, 75.25site evaluator or designer, or pumper.75.26    (i) "Individual sewage treatment system rules" means rules adopted by the agency 75.27that establish minimum standards and criteria for the design, location, installation, use, 75.28and maintenance of individual sewage treatment systems.75.29    (j) "Inspector" means a person who inspects individual sewage treatment systems for 75.30compliance with the applicable requirements.75.31    (k) "Installer" means a person who constructs or repairs individual sewage treatment 75.32systems.75.33    (l) "Local unit of government" means a township, city, or county.75.34    (m) "Performance-based system" means a system that is designed specifically for a 75.35site and the environmental conditions on that site and designed to adequately protect the 76.1public health and the environment and provide long-term performance. At a minimum, a 76.2performance based system must ensure that applicable water quality standards are met in 76.3both ground and surface water that ultimately receive the treated wastewater. 76.4    (n) "Pumper" means a person who maintains components of individual sewage 76.5treatment systems including, but not limited to, septic, aerobic, and holding tanks.76.6    (n) (o) "Seasonal dwelling" means a dwelling that is occupied or used for less than 76.7180 days per year and less than 120 consecutive days.76.8    (o) (p) "Septic system tank" means any covered receptacle designed, constructed, 76.9and installed as part of an individual sewage treatment system.76.10    (p) (q) "Site evaluator or designer" means a person who:76.11    (1) investigates soils and site characteristics to determine suitability, limitations, and 76.12sizing requirements; and76.13    (2) designs individual sewage treatment systems.76.14    (q) (r) "Straight-pipe system" means a sewage disposal system that includes toilet 76.15waste and transports raw or partially settled sewage directly to a lake, a stream, a drainage 76.16system, or ground surface.76.17    Sec. 69. Minnesota Statutes 2006, section 115.55, subdivision 2, is amended to read:76.18    Subd. 2. Local ordinances. (a) All counties that did not adopt ordinances by 76.19May 7, 1994, or that do not have ordinances, must adopt ordinances that comply with 76.20revisions to the individual sewage treatment system rules by January 1, 1999, unless all 76.21towns and cities in the county have adopted such ordinances within two years of the final 76.22adoption by the agency. County ordinances must apply to all areas of the county other 76.23than cities or towns that have adopted ordinances that comply with this section and are 76.24as strict as the applicable county ordinances. Any ordinance adopted by a local unit of 76.25government before May 7, 1994, to regulate individual sewage treatment systems must be 76.26in compliance with the individual sewage treatment system rules by January 1, 1998.76.27    (b) A copy of each ordinance adopted under this subdivision must be submitted to 76.28the commissioner upon adoption.76.29    (c) A local unit of government must make available to the public upon request a 76.30written list of any differences between its ordinances and rules adopted under this section.76.31    Sec. 70. Minnesota Statutes 2006, section 115.55, subdivision 3, is amended to read:76.32    Subd. 3. Rules. (a) The agency shall adopt rules containing minimum standards and 76.33criteria for the design, location, installation, use, and maintenance of individual sewage 76.34treatment systems. The rules must include:77.1    (1) how the agency will ensure compliance under subdivision 2;77.2    (2) how local units of government shall enforce ordinances under subdivision 2, 77.3including requirements for permits and inspection programs;77.4    (3) how the advisory committee will participate in review and implementation of 77.5the rules;77.6    (4) provisions for alternative nonstandard  systems and performance-based systems;77.7    (5) provisions for handling and disposal of effluent;77.8    (6) provisions for system abandonment; and77.9    (7) procedures for variances, including the consideration of variances based on cost 77.10and variances that take into account proximity of a system to other systems.77.11    (b) The agency shall consult with the advisory committee before adopting rules 77.12under this subdivision.77.13    (c) Notwithstanding the repeal of the agency rule under which the commissioner 77.14has established a list of warrantied individual sewage treatment systems, the warranties 77.15for all systems so listed as of the effective date of the repeal shall continue to be valid 77.16for the remainder of the warranty period.77.17    (d) The rules required in paragraph (a) must also address the following:77.18    (1) a definition of redoximorphic features and other criteria that can be used by 77.19system designers and inspectors;77.20    (2) direction on the interpretation of observed soil features that may be 77.21redoximorphic and their relation to zones of seasonal saturation; and77.22    (3) procedures on how to resolve professional disagreements on seasonally saturated 77.23soils.77.24These rules must be in place by March 31, 2006.77.25    Sec. 71. Minnesota Statutes 2006, section 115.55, is amended by adding a subdivision 77.26to read:77.27    Subd. 12.Advisory committee; county individual sewage treatment system 77.28management plan.(a) A county may adopt an individual sewage treatment system 77.29management plan that describes how the county plans on carrying out individual sewage 77.30treatment system needs. The commissioner of the Pollution Control Agency shall form an 77.31advisory committee to determine what the plans should address. The advisory committee 77.32shall be made up of representatives of the Association of Minnesota Counties, Pollution 77.33Control Agency, Board of Water and Soil Resources, Department of Health, and other 77.34public agencies or local units of government that have an interest in individual sewage 77.35treatment systems.78.1    (b) The advisory committee shall advise the agency on the standards, management, 78.2monitoring, and reporting requirements for performance-based systems.78.3    Sec. 72. Minnesota Statutes 2006, section 116C.92, is amended to read:78.4116C.92 COORDINATION OF ACTIVITIES.78.5    Subdivision 1.State coordinating organization. The Environmental Quality Board 78.6is designated the state coordinating organization for state and federal regulatory activities 78.7relating to genetically engineered organisms.78.8    Subd. 2.Notice of nationwide action.The board shall notify interested parties if a 78.9permit to release genetically engineered wild rice is issued anywhere in the United States. 78.10For purposes of this subdivision, "interested parties" means:78.11    (1) the state's wild rice industry;78.12    (2) the legislature;78.13    (3) federally recognized tribes within Minnesota; and78.14    (4) individuals who request to be notified.78.15    Sec. 73. Minnesota Statutes 2006, section 116C.94, subdivision 1, is amended to read:78.16    Subdivision 1. General authority.(a) Except as provided in paragraph (b), the 78.17board shall adopt rules consistent with sections 
         116C.91 to 
         116C.96 that require an 78.18environmental assessment worksheet and otherwise comply with chapter 116D and rules 78.19adopted under it for a proposed release and a permit for a release. The board may place 78.20conditions on a permit and may deny, modify, suspend, or revoke a permit. 78.21    (b) The board shall adopt rules that require an environmental impact statement and 78.22otherwise comply with chapter 116D and rules adopted under it for a proposed release and 78.23a permit for a release of genetically engineered wild rice. The board may place conditions 78.24on the permit and may deny, modify, suspend, or revoke the permit. 78.25    Sec. 74. Minnesota Statutes 2006, section 116C.97, subdivision 2, is amended to read:78.26    Subd. 2. Federal oversight. (a) If the board determines, upon its own volition or at 78.27the request of any person, that a federal program exists for regulating the release of certain 78.28genetically engineered organisms and the federal oversight under the program is adequate 78.29to protect human health or the environment, then any person may release such genetically 78.30engineered organisms after obtaining the necessary federal approval and without obtaining 78.31a state release permit or a significant environmental permit or complying with the other 78.32requirements of sections 
         116C.91 to 
         116C.96 and the rules of the board adopted pursuant 78.33to section 
         116C.94. 79.1    (b) If the board determines the federal program is adequate to meet only certain 79.2requirements of sections 
         116C.91 to 
         116C.96 and the rules of the board adopted pursuant 79.3to section 
         116C.94, the board may exempt such releases from those requirements. 79.4    (c) A person proposing a release for which a federal authorization is required may 79.5apply to the board for an exemption from the board's permit or to a state agency with a 79.6significant environmental permit for the proposed release for an exemption from the 79.7agency's permit. The proposer must file with the board or state agency a written request 79.8for exemption with a copy of the federal application and the information necessary to 79.9determine if there is a potential for significant environmental effects under chapter 116D 79.10and rules adopted under it. The board or state agency shall give public notice of the request 79.11in the first available issue of the EQB Monitor and shall provide an opportunity for public 79.12comment on the environmental review process consistent with chapter 116D and rules 79.13adopted under it. The board or state agency may grant the exemption if the board or state 79.14agency finds that the federal authorization issued is adequate to meet the requirements of 79.15chapter 116D and rules adopted under it and any other requirement of the board's or state 79.16agency's authority regarding the release of genetically engineered organisms. The board 79.17or state agency must grant or deny the exemption within 45 days after the receipt of the 79.18written request and the information required by the board or state agency.79.19    (d) This subdivision does not apply to genetically engineered organisms for which 79.20an environmental impact statement is required under sections 116C.91 to 116C.96.79.21    Sec. 75. Minnesota Statutes 2006, section 282.04, subdivision 1, is amended to read:79.22    Subdivision 1. Timber sales; land leases and uses. (a) The county auditor may 79.23sell timber upon any tract that may be approved by the natural resources commissioner. 79.24The sale of timber shall be made for cash at not less than the appraised value determined 79.25by the county board to the highest bidder after not less than one week's published notice 79.26in an official paper within the county. Any timber offered at the public sale and not sold 79.27may thereafter be sold at private sale by the county auditor at not less than the appraised 79.28value thereof, until the time as the county board may withdraw the timber from sale. The 79.29appraised value of the timber and the forestry practices to be followed in the cutting of 79.30said timber shall be approved by the commissioner of natural resources.79.31    (b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be 79.32made in cash at the time of the timber sale, except in the case of oral or sealed bid auction 79.33sales, the down payment shall be no less than 15 percent of the appraised value, and the 79.34balance shall be paid prior to entry. In the case of auction sales that are partitioned and 79.35sold as a single sale with predetermined cutting blocks, the down payment shall be no less 80.1than 15 percent of the appraised price of the entire timber sale which may be held until the 80.2satisfactory completion of the sale or applied in whole or in part to the final cutting block. 80.3The value of each separate block must be paid in full before any cutting may begin in that 80.4block. With the permission of the county contract administrator the purchaser may enter 80.5unpaid blocks and cut necessary timber incidental to developing logging roads as may 80.6be needed to log other blocks provided that no timber may be removed from an unpaid 80.7block until separately scaled and paid for. If payment is provided as specified in this 80.8paragraph as security under paragraph (a) and no cutting has taken place on the contract, 80.9the county auditor may credit the security provided, less any down payment required for 80.10an auction sale under this paragraph, to any other contract issued to the contract holder 80.11by the county under this chapter to which the contract holder requests in writing that it 80.12be credited, provided the request and transfer is made within the same calendar year as 80.13the security was received.80.14    (c) The county board may require final settlement on the basis of a scale of cut 80.15products sell any timber, including biomass, as appraised or scaled. Any parcels of land 80.16from which timber is to be sold by scale of cut products shall be so designated in the 80.17published notice of sale under paragraph (a), in which case the notice shall contain a 80.18description of the parcels, a statement of the estimated quantity of each species of timber, 80.19and the appraised price of each species of timber for 1,000 feet, per cord or per piece, as 80.20the case may be. In those cases any bids offered over and above the appraised prices shall 80.21be by percentage, the percent bid to be added to the appraised price of each of the different 80.22species of timber advertised on the land. The purchaser of timber from the parcels shall 80.23pay in cash at the time of sale at the rate bid for all of the timber shown in the notice of 80.24sale as estimated to be standing on the land, and in addition shall pay at the same rate for 80.25any additional amounts which the final scale shows to have been cut or was available for 80.26cutting on the land at the time of sale under the terms of the sale. Where the final scale 80.27of cut products shows that less timber was cut or was available for cutting under terms 80.28of the sale than was originally paid for, the excess payment shall be refunded from the 80.29forfeited tax sale fund upon the claim of the purchaser, to be audited and allowed by the 80.30county board as in case of other claims against the county. No timber, except hardwood 80.31pulpwood, may be removed from the parcels of land or other designated landings until 80.32scaled by a person or persons designated by the county board and approved by the 80.33commissioner of natural resources. Landings other than the parcel of land from which 80.34timber is cut may be designated for scaling by the county board by written agreement 80.35with the purchaser of the timber. The county board may, by written agreement with the 80.36purchaser and with a consumer designated by the purchaser when the timber is sold by the 81.1county auditor, and with the approval of the commissioner of natural resources, accept the 81.2consumer's scale of cut products delivered at the consumer's landing. No timber shall be 81.3removed until fully paid for in cash. Small amounts of timber not exceeding $3,000 in 81.4appraised valuation may be sold for not less than the full appraised value at private sale 81.5to individual persons without first publishing notice of sale or calling for bids, provided 81.6that in case of a sale involving a total appraised value of more than $200 the sale shall be 81.7made subject to final settlement on the basis of a scale of cut products in the manner above 81.8provided and not more than two of the sales, directly or indirectly to any individual shall 81.9be in effect at one time.81.10    (d) As directed by the county board, the county auditor may lease tax-forfeited land 81.11to individuals, corporations or organized subdivisions of the state at public or private sale, 81.12and at the prices and under the terms as the county board may prescribe, for use as cottage 81.13and camp sites and for agricultural purposes and for the purpose of taking and removing of 81.14hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden 81.15sites and other temporary uses provided that no leases shall be for a period to exceed ten 81.16years; provided, further that any leases involving a consideration of more than $12,000 per 81.17year, except to an organized subdivision of the state shall first be offered at public sale in 81.18the manner provided herein for sale of timber. Upon the sale of any leased land, it shall 81.19remain subject to the lease for not to exceed one year from the beginning of the term of the 81.20lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation 81.21shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be 81.22audited and allowed by the county board as in case of other claims against the county.81.23    (e) As directed by the county board, the county auditor may lease tax-forfeited land 81.24to individuals, corporations, or organized subdivisions of the state at public or private sale, 81.25at the prices and under the terms as the county board may prescribe, for the purpose 81.26of taking and removing for use for road construction and other purposes tax-forfeited 81.27stockpiled iron-bearing material. The county auditor must determine that the material is 81.28needed and suitable for use in the construction or maintenance of a road, tailings basin, 81.29settling basin, dike, dam, bank fill, or other works on public or private property, and 81.30that the use would be in the best interests of the public. No lease shall exceed ten years. 81.31The use of a stockpile for these purposes must first be approved by the commissioner of 81.32natural resources. The request shall be deemed approved unless the requesting county 81.33is notified to the contrary by the commissioner of natural resources within six months 81.34after receipt of a request for approval for use of a stockpile. Once use of a stockpile has 81.35been approved, the county may continue to lease it for these purposes until approval is 81.36withdrawn by the commissioner of natural resources.82.1    (f) The county auditor, with the approval of the county board is authorized to grant 82.2permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean 82.3ores, tailings, or waste products from mines or ore milling plants, upon the conditions and 82.4for the consideration and for the period of time, not exceeding 15 years, as the county 82.5board may determine. The permits, licenses, or leases are subject to approval by the 82.6commissioner of natural resources.82.7    (g) Any person who removes any timber from tax-forfeited land before said 82.8timber has been scaled and fully paid for as provided in this subdivision is guilty of a 82.9misdemeanor.82.10    (h) The county auditor may, with the approval of the county board, and without first 82.11offering at public sale, grant leases, for a term not exceeding 25 years, for the removal 82.12of peat and for the production or removal of farm-grown closed-loop biomass as defined 82.13in section 
         216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited 82.14lands upon the terms and conditions as the county board may prescribe. Any lease for 82.15the removal of peat, farm-grown closed-loop biomass, or short-rotation woody crops 82.16from tax-forfeited lands must first be reviewed and approved by the commissioner of 82.17natural resources if the lease covers 320 or more acres. No lease for the removal of 82.18peat, farm-grown closed-loop biomass, or short-rotation woody crops shall be made by 82.19the county auditor pursuant to this section without first holding a public hearing on the 82.20auditor's intention to lease. One printed notice in a legal newspaper in the county at least 82.21ten days before the hearing, and posted notice in the courthouse at least 20 days before 82.22the hearing shall be given of the hearing.82.23    (i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis 82.24County auditor may, at the discretion of the county board, sell timber to the party who 82.25bids the highest price for all the several kinds of timber, as provided for sales by the 82.26commissioner of natural resources under section 
         90.14. Bids offered over and above the 82.27appraised price need not be applied proportionately to the appraised price of each of 82.28the different species of timber.82.29    (j) In lieu of any payment or deposit required in paragraph (b), as directed by the 82.30county board and under terms set by the county board, the county auditor may accept an 82.31irrevocable bank letter of credit in the amount equal to the amount otherwise determined 82.32in paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph, 82.33at the written request of the purchaser, the county may periodically allow the bank letter 82.34of credit to be reduced by an amount proportionate to the value of timber that has been 82.35harvested and for which the county has received payment. The remaining amount of 82.36the bank letter of credit after a reduction under this paragraph must not be less than 20 83.1percent of the value of the timber purchased. If an irrevocable bank letter of credit or 83.2cash deposit is provided for the down payment required in paragraph (b), and no cutting 83.3of timber has taken place on the contract for which a letter of credit has been provided, 83.4the county may allow the transfer of the letter of credit to any other contract issued to the 83.5contract holder by the county under this chapter to which the contract holder requests in 83.6writing that it be credited.83.7    Sec. 76. Minnesota Statutes 2006, section 296A.18, subdivision 4, is amended to read:83.8    Subd. 4. All-terrain vehicle. Approximately 0.150.27 of one percent of all gasoline 83.9received in or produced or brought into this state, except gasoline used for aviation 83.10purposes, is being used for the operation of all-terrain vehicles in this state, and of the total 83.11revenue derived from the imposition of the gasoline fuel tax, 0.150.27 of one percent is 83.12the amount of tax on fuel used in all-terrain vehicles operated in this state.83.13    Sec. 77. Laws 2003, chapter 128, article 1, section 169, is amended to read:83.14    Sec. 169. CONTINUOUS TRAIL DESIGNATION.83.15    (a) The commissioner of natural resources shall locate, plan, design, map, construct, 83.16designate, and sign a new trail for use by all-terrain vehicles and off-highway motorcycles 83.17of not less than 70 continuous miles in length on any land owned by the state or in 83.18cooperation with any county on land owned by that county or on a combination of any of 83.19these lands. This new trail shall be ready for use by April 1, 2007 June 30, 2009.83.20    (b) All funding for this new trail shall come from the all-terrain vehicle dedicated 83.21account and is appropriated each year as needed.83.22    (c) This new trail shall have at least two areas of access complete with appropriate 83.23parking for vehicles and trailers and enough room for loading and unloading all-terrain 83.24vehicles. Some existing trails, that are strictly all-terrain vehicle trails, and are not 83.25inventoried forest roads, may be incorporated into the design of this new all-terrain vehicle 83.26trail. This new trail may be of a continuous loop design and shall provide for spurs to other 83.27all-terrain vehicle trails as long as those spurs do not count toward the 70 continuous miles 83.28of this new all-terrain vehicle trail. Four rest areas shall be provided along the way.83.29    Sec. 78. Laws 2006, chapter 236, article 1, section 21, is amended to read:83.30    Sec. 21. EXCHANGE OF TAX-FORFEITED LAND; PRIVATE SALE; 83.31ITASCA COUNTY.83.32    (a) For the purpose of a land exchange for use in connection with a proposed 83.33steel mill in Itasca County referenced in Laws 1999, chapter 240, article 1, section 8, 84.1subdivision 3, title examination and approval of the land described in paragraph (b) 84.2shall be undertaken as a condition of exchange of the land for class B land, and shall be 84.3governed by Minnesota Statutes, section 
         94.344, subdivisions 9 and 10, and the provisions 84.4of this section. Notwithstanding the evidence of title requirements in Minnesota Statutes, 84.5section 
         94.344, subdivisions 9 and 10, the county attorney shall examine one or more title 84.6reports or title insurance commitments prepared or underwritten by a title insurer licensed 84.7to conduct title insurance business in this state, regardless of whether abstracts were 84.8created or updated in the preparation of the title reports or commitments. The opinion of 84.9the county attorney, and approval by the attorney general, shall be based on those title 84.10reports or commitments.84.11    (b) The land subject to this section is located in Itasca County and is described as:84.12    (1) Sections 3, 4, 7, 10, 14, 15, 16, 17, 18, 20, 21, 22, 23, 26, 28, and 29, Township 84.1356 North, Range 22 West;84.14    (2) Sections 3, 4, 9, 10, 13, and 14, Township 56 North, Range 23 West;84.15    (3) Section 30, Township 57 North, Range 22 West; and84.16    (4) Sections 25, 26, 34, 35, and 36, Township 57 North, Range 23 West.84.17    (c) Riparian land given in exchange by Itasca County for the purpose of the steel 84.18mill referenced in paragraph (a), is exempt from the restrictions imposed by Minnesota 84.19Statutes, section 
         94.342, subdivision 3.84.20    (d) Notwithstanding Minnesota Statutes, sections 
         92.45 and 
         282.018, subdivision 1, 84.21and the public sale provisions of Minnesota Statutes, chapter 282, Itasca County may sell, 84.22by private sale, any land received in exchange for the purpose of the steel mill referenced 84.23in paragraph (a), under the remaining provisions of Minnesota Statutes, chapter 282. The 84.24sale must be in a form approved by the attorney general.84.25    (e) Notwithstanding Minnesota Statutes, section 284.28, subdivision 8, or any other 84.26law to the contrary, land acquired through an exchange under this section is exempt from 84.27payment of three percent of the sales price required to be collected by the county auditor 84.28at the time of sale for deposit in the state treasury.84.29    Sec. 79. ENDOCRINE DISRUPTOR REPORT.84.30    The commissioner of the Pollution Control Agency shall prepare a report on 84.31strategies to prevent the entry of endocrine disruptors into waters of the state. The report 84.32must include an estimate for each strategy of the proportion of endocrine disruptors that 84.33are prevented from entering the waters of the state. The commissioner shall submit the 84.34report to the house and senate committees having jurisdiction over environment and 84.35natural resources policy and finance by January 15, 2008.85.1    Sec. 80. EASEMENT REPORT REQUIRED.85.2    By January 1, 2008, the commissioner of natural resources must report to the 85.3house and senate committees with jurisdiction over environment and natural resources 85.4finance with proposed minimum legal and conservation standards that could be applied 85.5to conservation easements acquired with public money.85.6    Sec. 81. TAX-FORFEITED LANDS LEASE; ITASCA COUNTY.85.7    Notwithstanding Minnesota Statutes, section 282.04, or other law to the contrary, 85.8the Itasca County auditor may lease tax-forfeited land to Minnesota Steel for a period of 85.920 years, for use as a tailings basin and buffer area. A lease entered under this section 85.10is renewable.85.11    Sec. 82. WILD RICE STUDY.85.12    By February 15, 2008, the commissioner of natural resources must prepare a study 85.13for natural wild rice that includes:85.14    (1) the current location and estimated acreage and area of natural stands;85.15    (2) identified threats to natural stands, including, but not limited to, development 85.16pressure, water levels, pollution, invasive species, and genetic strains; and85.17    (3) recommendations to the house and senate committees with jurisdiction over 85.18natural resources on protecting and increasing natural wild rice stands in the state.85.19    In developing the study, the commissioner must contact and ask for comments 85.20from the state's wild rice industry, the commissioner of agriculture, local officials with 85.21significant areas of wild rice within their jurisdictions, tribal leaders within affected 85.22federally recognized tribes, and interested citizens.85.23EFFECTIVE DATE.This section is effective the day following final enactment.85.24    Sec. 83. CONSTRUCTION.85.25    Nothing in sections 73, 74, 75, and 83 affects, alters, or modifies the authorities, 85.26responsibilities, obligations, or powers of the state or any political subdivision thereof or 85.27any federally recognized tribe.85.28    Sec. 84. SEPTIC BEST PRACTICES ASSISTANCE.85.29    The commissioner of the Pollution Control Agency shall establish a database of 85.30best practices regarding the installation, management, and maintenance of individual 85.31sewage treatment systems. The database must be made available to any interested public 85.32or private party.86.1    Sec. 85. RULEMAKING.86.2    Within 90 days of the effective date of this section, the Board of Water and Soil 86.3Resources shall adopt rules that amend Minnesota Rules, chapter 8420, to incorporate 86.4statute changes and to address the related wetland exemption provisions in Minnesota 86.5Rules, parts 8420.0115 to 8420.0210, and the wetland replacement and banking provisions 86.6in Minnesota Rules, parts 8420.0500 to 8420.0760. These rules are exempt from the 86.7rulemaking provisions of Minnesota Statutes, chapter 14, except that Minnesota Statutes, 86.8section 14.386, applies and the proposed rules must be submitted to the senate and house 86.9committees having jurisdiction over environment and natural resources at least 30 days 86.10prior to being published in the State Register. The amended rules are effective for two 86.11years from the date of publication in the State Register unless they are superseded by 86.12permanent rules.86.13EFFECTIVE DATE.This section is effective the day following final enactment.86.14    Sec. 86. VERMILLION HIGHLANDS WILDLIFE MANAGEMENT AREA.86.15    (a) The following area is established and designated as the Vermillion Highlands 86.16Wildlife Management Area, subject to the special permitted uses authorized in this section:86.17    The approximately 2,840 acres owned by the University of Minnesota lying within 86.18the area legally described as approximately the southerly 3/4 of the Southwest 1/4 of 86.19Section 1, the Southeast 1/4 of Section 2, the East 1/2 of Section 10, Section 11, the 86.20West 1/2 of Section 12, Section 13, and Section 14, all in Township 114 North, Range 86.2119 West, Dakota County.86.22    (b) Notwithstanding Minnesota Statutes, section 86A.05, subdivision 8, paragraph 86.23(c), permitted uses in the Vermillion Highlands Wildlife Management Area include:86.24    (1) education, outreach, and agriculture with the intent to eventually phase out 86.25agriculture leases and plant and restore native prairie;86.26    (2) research by the University of Minnesota or other permitted researchers;86.27    (3) hiking, hunting, fishing, trapping, and other compatible wildlife-related 86.28recreation of a natural outdoors experience, without constructing new hard surface trails 86.29or roads, and supporting management and improvements;86.30    (4) designated trails for hiking, horseback riding, biking, and cross-country skiing 86.31and necessary trailhead support with minimal impact on the permitted uses in clause (3);86.32    (5) shooting sports facilities for sporting clays, skeet,  trapshooting, and rifle and 86.33pistol shooting, including sanctioned events and training for responsible handling and 86.34use of firearms;86.35    (6) grant-in-aid snowmobile trails; and87.1    (7) leases for small-scale farms to market vegetable farming.87.2    (c) With the concurrence of representatives of the University of Minnesota and 87.3Dakota County, the commissioner of natural resources may, by posting or rule, restrict the 87.4permitted uses as follows:87.5    (1) temporarily close areas or trails, by posting at the access points, to facilitate 87.6hunting. When temporarily closing trails under this clause, the commissioner shall avoid 87.7closing all trail loops simultaneously whenever practical; or87.8    (2) limit other permitted uses to accommodate hunting and trapping after providing 87.9advance public notice. Research conducted by the university may not be limited unless 87.10mutually agreed by the commissioner and the University of Minnesota.87.11    (d) Road maintenance within the wildlife management area shall be minimized, with 87.12the intent to abandon interior roads when no longer needed for traditional agriculture 87.13purposes.87.14    (e) Money collected on leases from lands within the wildlife management area 87.15must be kept in a separate account and spent within the wildlife management area under 87.16direction of the representatives listed in paragraph (c). $200,000 of this money may be 87.17transferred to the commissioner of natural resources for a master planning process and 87.18resource inventory of the land identified in Minnesota Statutes, section 137.50, subdivision 87.196, in order to provide needed prairie and wetland restoration. The commissioner must work 87.20with affected officials from the University of Minnesota and Dakota County to complete 87.21these requirements and inform landowners and lessees about the planning process.87.22    (f) Notwithstanding Minnesota Statutes, sections 97A.061 and 477A.11, the state 87.23of Minnesota shall not provide payments in lieu of taxes for the lands described in 87.24paragraph (a).87.25    Sec. 87. STRAND'S STATE ISLAND.87.26    Notwithstanding Minnesota Statutes, section 83A.02, the commissioner of natural 87.27resources shall change the name of Big Island in Pelican Lake in St. Louis County 87.28to Strand's State Island.87.29    Sec. 88.  REPEALER.87.30(a) Minnesota Statutes 2006, section 89A.11, is repealed.87.31(b) Minnesota Statutes 2006, section 103G.2241, subdivision 8, is repealed.87.32EFFECTIVE DATE.Paragraph (a) of this section is effective July 1, 2007. 87.33Paragraph (b) of this section is effective the day following final enactment.88.1ARTICLE 388.2SCIENCE MUSEUM AND STATE ZOO

88.3Section 1.  SUMMARY OF APPROPRIATIONS.

88.4    The amounts shown in this section summarize direct appropriations by fund made 88.5in this article.

88.620082009Total88.7General$8,313,000$8,440,000$16,753,00088.8Natural Resources137,000138,000275,00088.9Total$8,450,000$8,578,000$17,028,000

88.1088.11Sec. 2. SCIENCE MUSEUM OF MINNESOTA$1,250,000$1,250,000

88.12The base budget for the Science Museum 88.13of Minnesota is $1,000,000 each year in the 88.142010-2011 biennium.

88.15Sec. 3. ZOOLOGICAL BOARD$7,200,000$7,328,000

88.16Appropriations by Fund88.172008200988.18General7,063,0007,190,00088.19Natural Resources137,000138,000

88.20$137,000 the first year and $138,000 the 88.21second year are from the natural resources 88.22fund from the revenue deposited under 88.23Minnesota Statutes, section 297A.94, 88.24paragraph (e), clause (5). This is a onetime 88.25appropriation.88.26The general fund base budget for the 88.27Zoological Board is $6,940,000 each year in 88.28the 2010-2011 biennium.88.29ARTICLE 488.30ENERGY APPROPRIATIONS

88.31Section 1.  SUMMARY OF APPROPRIATIONS.

89.1    The amounts shown in this section summarize direct appropriations, by fund, made 89.2in this article.

89.320082009Total89.4General$51,752,000$ 33,542,000$ 85,294,00089.5Petroleum Tank Cleanup1,084,0001,084,0002,168,00089.6Workers' Compensation835,000835,0001,670,00089.7Special Revenue5,600,0004,600,00010,200,00089.8Total$59,271,000$ 40,061,000$99,332,000

89.9Sec. 2. ENERGY FINANCE APPROPRIATIONS.

89.10    The sums shown in the columns marked "Appropriations" are appropriated to the 89.11agencies and for the purposes specified in this article. The appropriations are from the 89.12general fund, or another named fund, and are available for the fiscal years indicated 89.13for each purpose. The figures "2008" and "2009" used in this article mean that the 89.14appropriations listed under them are available for the fiscal year ending June 30, 2008, or 89.15June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 89.16year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 89.17year ending June 30, 2007, are effective the day following final enactment.

89.18APPROPRIATIONS89.19Available for the Year89.20Ending June 3089.2120082009

89.22Sec. 3. DEPARTMENT OF COMMERCE.

89.23Subdivision 1.Total Appropriation$51,721,000$33,695,000

89.24Appropriations by Fund89.252008200989.26General44,202,00027,176,00089.27Petroleum Cleanup1,084,0001,084,00089.2889.29Workers' Compensation835,000835,00089.30Special Revenue5,600,0004,600,000

89.31The amounts that may be spent for each 89.32purpose are specified in the following 89.33subdivisions.

89.34Subd. 2.Financial Examinations6,432,0006,519,000

89.3589.36Subd. 3.Petroleum Tank Release Cleanup Board1,084,0001,084,000

90.1This appropriation is from the petroleum 90.2tank release cleanup fund. 

90.3Subd. 4.Administrative Services4,477,0004,540,000

90.4Subd. 5.Market Assurance6,902,0006,999,000

90.5Appropriations by Fund90.6General6,067,0006,164,00090.790.8Workers' Compensation835,000835,000

90.9Subd. 6.Energy and Telecommunications32,726,00014,453,000

90.10Appropriations by Fund90.11General27,226,0009,953,00090.12Special Revenue5,500,0004,500,000

90.13$2,000,000 the first year and $2,000,000 the 90.14second year are for E85 cost-share grants. 90.15Notwithstanding Minnesota Statutes, section 90.1616A.28, this appropriation is available 90.17until expended. The base appropriation for 90.18these grants is $2,000,000 each year in the 90.192010-2011 biennium. Funding for these 90.20grants ends June 30, 2011. Up to ten percent 90.21of the funds may be used for cost-share grants 90.22for pumps dispensing fuel that contains at 90.23least ten percent biodiesel fuel by volume.90.24The utility subject to Minnesota Statutes, 90.25section 116C.779, shall transfer $2,500,000 90.26in fiscal year 2008 and $2,500,000 in fiscal 90.27year 2009 to the Department of Commerce 90.28on a schedule to be determined by the 90.29commissioner of commerce. The funds must 90.30be deposited in the special revenue fund 90.31and are appropriated to the commissioner 90.32for grants to promote renewable energy 90.33projects and community energy outreach and 90.34assistance. Of the amounts identified:91.1(1) $500,000 each year for capital grants for 91.2on-farm biogas recovery facilities; eligible 91.3projects will be selected in coordination 91.4with the Department of Agriculture and the 91.5Pollution Control Agency;91.6(2) $500,000 each year to provide financial 91.7rebates to new solar electricity projects;91.8(3) $500,000 each year for continued funding 91.9of community energy technical assistance 91.10and outreach on renewable energy and 91.11energy efficiency; and91.12(4) $1,000,000 each year for technical 91.13analysis and demonstration funding for 91.14automotive technology projects, with a 91.15special focus on plug-in hybrid electric 91.16vehicles.91.17The utility subject to Minnesota Statutes, 91.18section 116C.779, shall transfer $3,000,000 91.19in fiscal year 2008 and $2,000,000 in fiscal 91.20year 2009 to the Department of Commerce 91.21on a schedule to be determined by the 91.22commissioner of commerce. The funds must 91.23be deposited in the special revenue fund and 91.24are appropriated to the commissioner for 91.25grants to provide competitive, cost-share 91.26grants to fund renewable energy research in 91.27Minnesota. These grants must be awarded 91.28by a three-member panel made up of the 91.29commissioners of commerce, pollution 91.30control, and agriculture, or their designees. 91.31Grant applications must be ranked and grants 91.32issued according to how well the applications 91.33meet state energy policy research goals 91.34established by the commissioners, the quality 91.35and experience of the research teams, the 92.1cross-interdisciplinary and cross-institutional 92.2nature of the research teams, and the ability 92.3of the research team to leverage nonstate 92.4funds.92.5$3,000,000 the second year is for a grant to 92.6the Board of Regents of the University of 92.7Minnesota for the Initiative for Renewable 92.8Energy and the Environment. The grant 92.9is for the purposes set forth in Minnesota 92.10Statutes, section 216B.241, subdivision 6. 92.11The appropriation is available until spent. 92.12The base budget for this grant to the Board 92.13of Regents of the University of Minnesota 92.14for the Initiative for Renewable Energy and 92.15the Environment is $5,000,000 each year in 92.16the 2010-2011 fiscal biennium.92.17As a condition of this grant, beginning in 92.18the 2010-2011 biennium, the Initiative for 92.19Renewable Energy and the Environment 92.20must set aside at least 15 percent of the 92.21funds received annually under the grant for 92.22qualified projects conducted at a rural campus 92.23or experiment station. Any amount of the 92.24set aside funds that has not been awarded to 92.25a rural campus or experiment station at the 92.26end of the fiscal year must revert back to the 92.27initiative for its exclusive use.92.28$10,000,000 the first year is for the renewable 92.29hydrogen initiative in Minnesota Statutes, 92.30section 216B.813, to fund the competitive 92.31grant program included in that section. The 92.32commissioner may use up to two percent of 92.33the competitive grant program appropriation 92.34for grant administration and to develop and 92.35implement the renewable hydrogen road 93.1map. This is a onetime appropriation and is 93.2available until expended.93.3$3,100,000 the first year is for deposit in the 93.4rural wind energy development revolving 93.5loan fund under Minnesota Statutes, section 93.6216C.39. This appropriation does not cancel. 93.7This is a onetime appropriation.93.8$1,000,000 the first year and $1,000,000 the 93.9second year are for a grant to the Center for 93.10Rural Policy and Development for the rural 93.11wind energy development program in article 93.123. This is a onetime appropriation and is 93.13available until expended.93.14$50,000 the first year is a onetime 93.15appropriation for a comprehensive technical, 93.16economic, and environmental analysis of the 93.17benefits to be derived from greater use in this 93.18state of geothermal heat pump systems for 93.19heating and cooling air and heating water. 93.20The analysis must:93.21(1) estimate the extent of geothermal heat 93.22pump systems currently installed in this state 93.23in residential, commercial, and institutional 93.24buildings;93.25(2) estimate energy and economic savings of 93.26geothermal heat pump systems in comparison 93.27with fossil fuel-based heating and cooling 93.28systems, including electricity use, on a 93.29capital cost and life-cycle cost basis, for both 93.30newly constructed and retrofitted residential, 93.31commercial, and institutional buildings;93.32(3) compare the emission of pollutants and 93.33greenhouse gases from geothermal heat 93.34pump systems and fossil fuel-based heating 93.35and cooling systems;94.1(4) identify financial assistance available 94.2from state and federal sources and Minnesota 94.3utilities to defray the costs of installing 94.4geothermal heat pump systems;94.5(5) identify Minnesota firms currently 94.6manufacturing or installing the physical 94.7components of geothermal heat pump 94.8systems and estimate the economic 94.9development potential in this state if demand 94.10for such systems increases significantly;94.11(6) identify the barriers to more widespread 94.12adoption of geothermal heat pump systems in 94.13this state and suggest strategies to overcome 94.14those barriers; and94.15(7) make recommendations for legislative 94.16action.94.17Not later than March 15, 2008, the 94.18commissioner shall submit the results of the 94.19analysis in a report to the chairs of the senate 94.20and house of representatives committees 94.21with primary jurisdiction over energy policy.94.22$45,000 the first year is a onetime 94.23appropriation for a grant to Linden Hills 94.24Power and Light for preliminary engineering 94.25design work and other technical and legal 94.26services required for a community digester 94.27and neighborhood district heating and 94.28cooling system demonstration project in the 94.29Linden Hills neighborhood of Minneapolis. 94.30Funds may be expended upon a determination 94.31by the commissioner of commerce that the 94.32project is technically and economically 94.33feasible. A portion of the appropriation 94.34may be used to expand the scope of the 94.35project feasibility study to include portions 95.1of adjacent communities including St. Louis 95.2Park and Edina.95.3$3,000,000 the first year is for the purpose 95.4of the propane prepurchase program under 95.5Minnesota Statutes, section 216B.0951. This 95.6is a onetime appropriation and is available 95.7for the biennium.95.8$4,000,000 the first year is for a onetime 95.9grant to the St. Paul Port Authority for 95.10environmental review and permitting, 95.11preliminary engineering, and development of 95.12a steam-producing facility to be located in 95.13St. Paul using fuels consistent with eligible 95.14energy technologies as defined in Minnesota 95.15Statutes, section 216B.243, subdivision 3a.95.16Grant funds for the project may only 95.17be expended when the commissioner of 95.18commerce has reviewed and approved a 95.19project plan that includes the following 95.20elements:95.21(i) total project cost estimates;95.22(ii) cost estimates for project design and 95.23engineering tasks;95.24(iii) a preliminary plan for fuel source 95.25procurement from a renewable energy source 95.26as defined in Minnesota Statutes, section 95.27216B.243, subdivision 3a; and95.28(iv) a preliminary financing plan for the 95.29entire project.95.30$150,000 the first year is appropriated to the 95.31commissioner of commerce for grants for 95.32demonstration projects of electric vehicles 95.33with advanced transmission technologies 95.34incorporating, if feasible, batteries, 96.1converters, and other components developed 96.2in Minnesota. Funds may be expended 96.3under the grants only if grantees enter into 96.4agreements specifying that commercial 96.5production of these vehicles and components 96.6will, to the extent possible, take place in 96.7Minnesota.

96.896.9Subd. 7.Telecommunications Access Minnesota100,000100,000

96.10$100,000 the first year and $100,000 96.11the second year are appropriated to the 96.12commissioner of commerce for transfer 96.13to the commissioner of human services to 96.14supplement the ongoing operational expenses 96.15of the Minnesota Commission Serving 96.16Deaf and Hard-of-Hearing People. This 96.17appropriation is from the telecommunication 96.18access Minnesota fund, and is added to the 96.19commission's base.

96.20Sec. 4. PUBLIC UTILITIES COMMISSION$5,315,000$ 5,366,000

96.2196.22Sec. 5. DEPARTMENT OF NATURAL RESOURCES$535,000$0

96.23$475,000 the first year is a onetime 96.24appropriation for terrestrial and geologic 96.25carbon sequestration reports and studies in 96.26article 4. Of this amount, the commissioner 96.27shall make payments of $385,000 to the 96.28Board of Regents of the University of 96.29Minnesota for the purposes of terrestrial 96.30carbon sequestration activities, and $90,000 96.31to the Minnesota Geological Survey for the 96.32purposes of geologic carbon sequestration 96.33assessment.97.1$60,000 the first year is a onetime 97.2appropriation to the commissioner of natural 97.3resources to conduct a feasibility study 97.4in conjunction with U.S. Army Corps of 97.5Engineers on the foundation and hydraulics 97.6of the Rapidan Dam in Blue Earth County. 97.7This appropriation must be equally matched 97.8by Blue Earth County, and is available until 97.9expended.

97.10Sec. 6. POLLUTION CONTROL AGENCY$700,000$0

97.11$400,000 the first year is a onetime 97.12appropriation for a grant to the Koochiching 97.13Economic Development Authority for 97.14a feasibility study for a plasma torch 97.15gasification facility that converts municipal 97.16solid waste into energy and slag.97.17$300,000 the first year is for the biomass 97.18gasification facilities air emissions study for 97.19the purpose of fully characterizing the air 97.20emissions exerted from biomass gasification 97.21facilities across a range of feedstocks. This 97.22is a onetime appropriation.

97.23Sec. 7. DEPARTMENT OF HEALTH$1,000,000$1,000,000

97.24$1,000,000 the first year and $1,000,000 97.25the second year are appropriated to the 97.26commissioner of health for grants for lead 97.27environmental risk assessment conducted 97.28by local units of government, as required 97.29under Minnesota Statutes, section 144.9504, 97.30subdivision 2, and lead cleanup. Of 97.31these amounts, $500,000 the first year 97.32and $500,000 the second year must be 97.33awarded to the federally designated nonprofit 98.1organization operating the Clear Corps 98.2program. This is a onetime appropriation.98.3ARTICLE 598.4COMMERCE98.5    Section 1. Minnesota Statutes 2006, section 13.712, is amended by adding a 98.6subdivision to read:98.7    Subd. 3.Vehicle protection product warrantors.Financial information provided 98.8to the commissioner of commerce by vehicle protection product warrantors is classified 98.9under section 59C.05, subdivision 3.98.10EFFECTIVE DATE.This section is effective January 1, 2008.98.11    Sec. 2. Minnesota Statutes 2006, section 45.011, subdivision 1, is amended to read:98.12    Subdivision 1. Scope. As used in chapters 45 to 83, 155A,  332, 332A, 345, and 98.13359, and sections 
         325D.30 to 
         325D.42, 
         326.83 to 
         326.991, and 
         386.61 to 
         386.78, unless 98.14the context indicates otherwise, the terms defined in this section have the meanings given 98.15them. 98.16EFFECTIVE DATE.This section is effective January 1, 2008.98.17    Sec. 3. [45.24] LICENSE TECHNOLOGY FEES.98.18    (a) The commissioner may establish and maintain an electronic licensing database 98.19system for license origination, renewal, and tracking the completion of continuing 98.20education requirements by individual licensees who have continuing education 98.21requirements, and other related purposes.98.22    (b) The commissioner shall pay for the cost of operating and maintaining the 98.23electronic database system described in paragraph (a) through a technology surcharge 98.24imposed upon the fee for license origination and renewal, for individual licenses that 98.25require continuing education.98.26    (c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year 98.27licensing period, except as otherwise provided in paragraph (f), and shall be payable at the 98.28time of license origination and renewal.98.29    (d) The Commerce Department technology account is hereby created as an account 98.30in the special revenue fund.99.1    (e) The commissioner shall deposit the surcharge permitted under this section in 99.2the account created in paragraph (d), and funds in the account are appropriated to the 99.3commissioner in the amounts needed for purposes of this section.99.4    (f) The commissioner shall temporarily reduce or suspend the surcharge as necessary 99.5if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of 99.6any calendar year and shall increase or decrease the surcharge as necessary to keep the 99.7fund balance at an adequate level but not in excess of $2,000,000.99.8EFFECTIVE DATE.This section is effective the day following final enactment.99.9    Sec. 4. Minnesota Statutes 2006, section 46.04, subdivision 1, is amended to read:99.10    Subdivision 1. General. The commissioner of commerce, referred to in chapters 99.1146 to 59A, and sections 332.12 to 332.29 chapter 332A, as the commissioner, is vested 99.12with all the powers, authority, and privileges which, prior to the enactment of Laws 1909, 99.13chapter 201, were conferred by law upon the public examiner, and shall take over all 99.14duties in relation to state banks, savings banks, trust companies, savings associations, and 99.15other financial institutions within the state which, prior to the enactment of chapter 201, 99.16were imposed upon the public examiner. The commissioner of commerce shall exercise 99.17a constant supervision, either personally or through the examiners herein provided for, 99.18over the books and affairs of all state banks, savings banks, trust companies, savings 99.19associations, credit unions, industrial loan and thrift companies, and other financial 99.20institutions doing business within this state; and shall, through examiners, examine each 99.21financial institution at least once every 24 calendar months. In satisfying this examination 99.22requirement, the commissioner may accept reports of examination prepared by a federal 99.23agency having comparable supervisory powers and examination procedures. With the 99.24exception of industrial loan and thrift companies which do not have deposit liabilities 99.25and licensed regulated lenders, it shall be the principal purpose of these examinations to 99.26inspect and verify the assets and liabilities of each and so far investigate the character 99.27and value of the assets of each institution as to determine with reasonable certainty that 99.28the values are correctly carried on its books. Assets and liabilities shall be verified in 99.29accordance with methods of procedure which the commissioner may determine to be 99.30adequate to carry out the intentions of this section. It shall be the further purpose of 99.31these examinations to assess the adequacy of capital protection and the capacity of the 99.32institution to meet usual and reasonably anticipated deposit withdrawals and other cash 99.33commitments without resorting to excessive borrowing or sale of assets at a significant 99.34loss, and to investigate each institution's compliance with applicable laws and rules. Based 99.35on the examination findings, the commissioner shall make a determination as to whether 100.1the institution is being operated in a safe and sound manner. None of the above provisions 100.2limits the commissioner in making additional examinations as deemed necessary or 100.3advisable. The commissioner shall investigate the methods of operation and conduct of 100.4these institutions and their systems of accounting, to ascertain whether these methods and 100.5systems are in accordance with law and sound banking principles. The commissioner may 100.6make requirements as to records as deemed necessary to facilitate the carrying out of the 100.7commissioner's duties and to properly protect the public interest. The commissioner may 100.8examine, or cause to be examined by these examiners, on oath, any officer, director, 100.9trustee, owner, agent, clerk, customer, or depositor of any financial institution touching 100.10the affairs and business thereof, and may issue, or cause to be issued by the examiners, 100.11subpoenas, and administer, or cause to be administered by the examiners, oaths. In 100.12case of any refusal to obey any subpoena issued under the commissioner's direction, 100.13the refusal may at once be reported to the district court of the district in which the bank 100.14or other financial institution is located, and this court shall enforce obedience to these 100.15subpoenas in the manner provided by law for enforcing obedience to subpoenas of the 100.16court. In all matters relating to official duties, the commissioner of commerce has the 100.17power possessed by courts of law to issue subpoenas and cause them to be served and 100.18enforced, and all officers, directors, trustees, and employees of state banks, savings banks, 100.19trust companies, savings associations, and other financial institutions within the state, 100.20and all persons having dealings with or knowledge of the affairs or methods of these 100.21institutions, shall afford reasonable facilities for these examinations, make returns and 100.22reports to the commissioner of commerce as the commissioner may require; attend and 100.23answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books, 100.24accounts, documents, and property as the commissioner may desire to inspect, and in all 100.25things aid the commissioner in the performance of duties. 100.26EFFECTIVE DATE.This section is effective January 1, 2008.100.27    Sec. 5. Minnesota Statutes 2006, section 46.05, is amended to read:100.2846.05 SUPERVISION OVER FINANCIAL INSTITUTIONS.100.29    Every state bank, savings bank, trust company, savings association, debt 100.30management services provider, and other financial institutions shall be at all times under 100.31the supervision and subject to the control of the commissioner of commerce. If, and 100.32whenever in the performance of duties, the commissioner finds it necessary to make a 100.33special investigation of any financial institution under the commissioner's supervision, 100.34and other than a complete examination, the commissioner shall make a charge therefor to 101.1include only the necessary costs thereof. Such a fee shall be payable to the commissioner 101.2on the commissioner's making a request for payment.101.3EFFECTIVE DATE.This section is effective January 1, 2008.101.4    Sec. 6. Minnesota Statutes 2006, section 46.131, subdivision 2, is amended to read:101.5    Subd. 2. Assessment authority. Each bank, trust company, savings bank, savings 101.6association, regulated lender, industrial loan and thrift company, credit union, motor 101.7vehicle sales finance company, debt prorating agency management services provider and 101.8insurance premium finance company organized under the laws of this state or required 101.9to be administered by the commissioner of commerce shall pay into the state treasury its 101.10proportionate share of the cost of maintaining the Department of Commerce.101.11EFFECTIVE DATE.This section is effective January 1, 2008.101.12    Sec. 7. Minnesota Statutes 2006, section 47.19, is amended to read:101.1347.19 CORPORATION MAY BE MEMBER OR STOCKHOLDER OF 101.14FEDERAL AGENCY.101.15    Any corporation is hereby empowered and authorized to become a member of, 101.16or stockholder in, any such agency, and to that end to purchase stock in, or securities 101.17of, or deposit money with, such agency and/or to comply with any other conditions of 101.18membership or credit; to borrow money from such agency upon such rates of interest, not 101.19exceeding the contract rate of interest in this state, and upon such terms and conditions 101.20as may be agreed upon by such corporation and such agency, for the purpose of making 101.21loans, paying withdrawals, paying maturities, paying debts, and for any other purpose not 101.22inconsistent with the objects of the corporation; provided, that the aggregate amount of the 101.23indebtedness, so incurred by such corporation, which shall be outstanding at any time shall 101.24not exceed 25 35 percent of the then total assets of the corporation; to assign, pledge and 101.25hypothecate its bonds, mortgages or other assets; and, in case of savings associations, to 101.26repledge with such agency the shares of stock in such association which any owner thereof 101.27may have pledged as collateral security, without obtaining the consent thereunto of such 101.28owner, as security for the repayment of the indebtedness so created by such corporation 101.29and as evidenced by its note or other evidence of indebtedness given for such borrowed 101.30money; and to do any and all things which shall or may be necessary or convenient in 101.31order to comply with and to obtain the benefits of the provisions of any act of Congress 101.32creating such agency, or any amendments thereto.102.1    Sec. 8. Minnesota Statutes 2006, section 47.59, subdivision 6, is amended to read:102.2    Subd. 6. Additional charges. (a) For purposes of this subdivision, "financial 102.3institution" includes a person described in subdivision 4, paragraph (a). In addition to the 102.4finance charges permitted by this section, a financial institution may contract for and 102.5receive the following additional charges that may be included in the principal amount 102.6of the loan or credit sale unpaid balances:102.7    (1) official fees and taxes;102.8    (2) charges for insurance as described in paragraph (b);102.9    (3) with respect to a loan or credit sale contract secured by real estate, the following 102.10"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of 102.11circumvention or evasion of this section:102.12    (i) fees or premiums for title examination, abstract of title, title insurance, surveys, 102.13or similar purposes;102.14    (ii) fees for preparation of a deed, mortgage, settlement statement, or other 102.15documents, if not paid to the financial institution;102.16    (iii) escrows for future payments of taxes, including assessments for improvements, 102.17insurance, and water, sewer, and land rents;102.18    (iv) fees for notarizing deeds and other documents;102.19    (v) appraisal and credit report fees; and102.20    (vi) fees for determining whether any portion of the property is located in a flood 102.21zone and fees for ongoing monitoring of the property to determine changes, if any, 102.22in flood zone status;102.23    (4) a delinquency charge on a payment, including the minimum payment due in 102.24connection with open-end credit, not paid in full on or before the tenth day after its due 102.25date in an amount not to exceed five percent of the amount of the payment or $5.20, 102.26whichever is greater;102.27    (5) for a returned check or returned automatic payment withdrawal request, an 102.28amount not in excess of the service charge limitation in section 
         604.113, except that, on 102.29a loan transaction that is a consumer small loan as defined in section 47.60, subdivision 102.301, paragraph (a), in which cash is advanced in exchange for a personal check, the civil 102.31penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded 102.32or assessed against the borrower; and 102.33    (6) charges for other benefits, including insurance, conferred on the borrower that 102.34are of a type that is not for credit.103.1    (b) An additional charge may be made for insurance written in connection with the 103.2loan or credit sale contract, which may be included in the principal amount of the loan or 103.3credit sale unpaid balances:103.4    (1) with respect to insurance against loss of or damage to property, or against 103.5liability arising out of the ownership or use of property, if the financial institution furnishes 103.6a clear, conspicuous, and specific statement in writing to the borrower setting forth the 103.7cost of the insurance if obtained from or through the financial institution and stating that 103.8the borrower may choose the person through whom the insurance is to be obtained;103.9    (2) with respect to credit insurance or mortgage insurance providing life, accident, 103.10health, or unemployment coverage, if the insurance coverage is not required by the 103.11financial institution, and this fact is clearly and conspicuously disclosed in writing to 103.12the borrower, and the borrower gives specific, dated, and separately signed affirmative 103.13written indication of the borrower's desire to do so after written disclosure to the borrower 103.14of the cost of the insurance; and103.15    (3) with respect to the vendor's single interest insurance, but only (i) to the extent 103.16that the insurer has no right of subrogation against the borrower; and (ii) to the extent that 103.17the insurance does not duplicate the coverage of other insurance under which loss is 103.18payable to the financial institution as its interest may appear, against loss of or damage 103.19to property for which a separate charge is made to the borrower according to clause (1); 103.20and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the 103.21financial institution to the borrower setting forth the cost of the insurance if obtained from 103.22or through the financial institution and stating that the borrower may choose the person 103.23through whom the insurance is to be obtained.103.24    (c) In addition to the finance charges and other additional charges permitted by 103.25this section, a financial institution may contract for and receive the following additional 103.26charges in connection with open-end credit, which may be included in the principal 103.27amount of the loan or balance upon which the finance charge is computed:103.28    (1) annual charges, not to exceed $50 per annum, payable in advance, for the 103.29privilege of opening and maintaining open-end credit;103.30    (2) charges for the use of an automated teller machine;103.31    (3) charges for any monthly or other periodic payment period in which the borrower 103.32has exceeded or, except for the financial institution's dishonor would have exceeded, 103.33the maximum approved credit limit, in an amount not in excess of the service charge 103.34permitted in section 
         604.113; 103.35    (4) charges for obtaining a cash advance in an amount not to exceed the service 103.36charge permitted in section 
         604.113; and 104.1    (5) charges for check and draft copies and for the replacement of lost or stolen 104.2credit cards.104.3    (d) In addition to the finance charges and other additional charges permitted by this 104.4section, a financial institution may contract for and receive a onetime loan administrative 104.5fee not exceeding $25 in connection with closed-end credit, which may be included in the 104.6principal balance upon which the finance charge is computed. This paragraph applies only 104.7to closed-end credit in an original principal amount of $4,320 or less. The determination 104.8of an original principal amount must exclude the administrative fee contracted for and 104.9received according to this paragraph.104.10    Sec. 9. Minnesota Statutes 2006, section 47.60, subdivision 2, is amended to read:104.11    Subd. 2. Authorization, terms, conditions, and prohibitions. (a) In lieu of the 104.12interest, finance charges, or fees in any other law, a consumer small loan lender may 104.13charge the following:104.14    (1) on any amount up to and including $50, a charge of $5.50 may be added;104.15    (2) on amounts in excess of $50, but not more than $100, a charge may be added 104.16equal to ten percent of the loan proceeds plus a $5 administrative fee;104.17    (3) on amounts in excess of $100, but not more than $250, a charge may be 104.18added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5 104.19administrative fee;104.20    (4) for amounts in excess of $250 and not greater than the maximum in subdivision 104.211, paragraph (a), a charge may be added equal to six percent of the loan proceeds with a 104.22minimum of $17.50 plus a $5 administrative fee.104.23    (b) The term of a loan made under this section shall be for no more than 30 calendar 104.24days.104.25    (c) After maturity, the contract rate must not exceed 
         2.75 percent per month of the 104.26remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly 104.27rate in the contract for each calendar day the balance is outstanding. 104.28    (d) No insurance charges or other charges must be permitted to be charged, collected, 104.29or imposed on a consumer small loan except as authorized in this section.104.30    (e) On a loan transaction in which cash is advanced in exchange for a personal 104.31check, a return check charge may be charged as authorized by section 
         604.113, subdivision 104.322
         , paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph 104.33(b), may not be demanded or assessed against the borrower.104.34    (f) A loan made under this section must not be repaid by the proceeds of another 104.35loan made under this section by the same lender or related interest. The proceeds from a 105.1loan made under this section must not be applied to another loan from the same lender or 105.2related interest. No loan to a single borrower made pursuant to this section shall be split or 105.3divided and no single borrower shall have outstanding more than one loan with the result 105.4of collecting a higher charge than permitted by this section or in an aggregate amount of 105.5principal exceed at any one time the maximum of $350.105.6    Sec. 10. Minnesota Statutes 2006, section 47.62, subdivision 1, is amended to read:105.7    Subdivision 1. General authority. Any person may establish and maintain one 105.8or more electronic financial terminals. Any financial institution may provide for its 105.9customers the use of an electronic financial terminal by entering into an agreement with 105.10any person who has established and maintains one or more electronic financial terminals if 105.11that person authorizes use of the electronic financial terminal to all financial institutions 105.12on a nondiscriminatory basis pursuant to section 
         47.64. Electronic financial terminals to 105.13be established and maintained in this state by financial institutions located in states other 105.14than Minnesota must file a notification to the commissioner as required in this section. 105.15The notification may be in the form lawfully required by the state regulator responsible 105.16for the examination and supervision of that financial institution. If there is no such 105.17requirement, then notification must be in the form required by this section for Minnesota 105.18financial institutions.105.19    Sec. 11. Minnesota Statutes 2006, section 47.75, subdivision 1, is amended to read:105.20    Subdivision 1. Retirement, health savings, and medical savings accounts. (a) A 105.21commercial bank, savings bank, savings association, credit union, or industrial loan and 105.22thrift company may act as trustee or custodian:105.23    (1) under the Federal Self-Employed Individual Tax Retirement Act of 1962, as 105.24amended;105.25    (2) of a medical savings account under the Federal Health Insurance Portability and 105.26Accountability Act of 1996, as amended;105.27    (3) of a health savings account under the Medicare Prescription Drug, Improvement, 105.28and Modernization Act of 2003, as amended; and105.29    (4) under the Federal Employee Retirement Income Security Act of 1974, as 105.30amended.105.31    (b) The trustee or custodian may accept the trust funds if the funds are invested 105.32only in savings accounts or time deposits in the commercial bank, savings bank, savings 105.33association, credit union, or industrial loan and thrift company, except that health savings 105.34accounts may also be invested in transaction accounts. Health savings accounts invested in 106.1transaction accounts shall not be subject to the restrictions in section 48.512, subdivision 106.23. All funds held in the fiduciary capacity may be commingled by the financial institution 106.3in the conduct of its business, but individual records shall be maintained by the fiduciary 106.4for each participant and shall show in detail all transactions engaged under authority 106.5of this subdivision.106.6EFFECTIVE DATE. This section is effective the day following final enactment.106.7    Sec. 12. Minnesota Statutes 2006, section 48.15, subdivision 4, is amended to read:106.8    Subd. 4. Retirement, health savings, and medical savings accounts. (a) A state 106.9bank may act as trustee or custodian:106.10    (1) of a self-employed retirement plan under the Federal Self-Employed Individual 106.11Tax Retirement Act of 1962, as amended;106.12    (2) of a medical savings account under the Federal Health Insurance Portability and 106.13Accountability Act of 1996, as amended;106.14    (3) of a health savings account under the Medicare Prescription Drug, Improvement, 106.15and Modernization Act of 2003, as amended; and106.16    (4) of an individual retirement account under the Federal Employee Retirement 106.17Income Security Act of 1974, as amended, if the bank's duties as trustee or custodian are 106.18essentially ministerial or custodial in nature and the funds are invested only (i) in the 106.19bank's own savings or time deposits, except that health savings accounts may also be 106.20invested in transaction accounts. Health savings accounts invested in transaction accounts 106.21shall not be subject to the restrictions in section 48.512, subdivision 3; or (ii) in any 106.22other assets at the direction of the customer if the bank does not exercise any investment 106.23discretion, invest the funds in collective investment funds administered by it, or provide 106.24any investment advice with respect to those account assets.106.25    (b) Affiliated discount brokers may be utilized by the bank acting as trustee or 106.26custodian for self-directed IRAs, if specifically authorized and directed in appropriate 106.27documents. The relationship between the affiliated broker and the bank must be fully 106.28disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should 106.29be accurately disclosed. Provisions should be made for disclosure of any changes in 106.30commission rates prior to their becoming effective. The affiliated broker may not provide 106.31investment advice to the customer.106.32    (c) All funds held in the fiduciary capacity may be commingled by the financial 106.33institution in the conduct of its business, but individual records shall be maintained by 106.34the fiduciary for each participant and shall show in detail all transactions engaged under 106.35authority of this subdivision.107.1    (d) The authority granted by this section is in addition to, and not limited by, section 107.247.75
         .107.3EFFECTIVE DATE. This section is effective the day following final enactment.107.4    Sec. 13. Minnesota Statutes 2006, section 58.04, subdivision 1, is amended to read:107.5    Subdivision 1. Residential mortgage originator licensing requirements. (a) 107.6Beginning August 1, 1999, No person shall act as a residential mortgage originator, or 107.7make residential mortgage loans without first obtaining a license from the commissioner 107.8according to the licensing procedures provided in this chapter.107.9    (b) A licensee must be either a partnership, limited liability partnership, association, 107.10limited liability company, corporation, or other form of business organization, and must 107.11have and maintain at all times one of the following: approval as a mortgagee by either the 107.12federal Department of Housing and Urban Development or the Federal National Mortgage 107.13Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety bond 107.14or irrevocable letter of credit in the amount of $100,000. Net worth, net of intangibles, 107.15must be calculated in accordance with generally accepted accounting principles.107.16    (c) The following persons are exempt from the residential mortgage originator 107.17licensing requirements:107.18    (1) an employee of one mortgage originator licensee or one person holding a 107.19certificate of exemption;107.20    (2) a person licensed as a real estate broker under chapter 82 who is not licensed to 107.21another real estate broker;107.22    (3) an individual real estate licensee who is licensed to a real estate broker as 107.23described in clause (2) if:107.24    (i) the individual licensee acts only under the name, authority, and supervision of the 107.25broker to whom the licensee is licensed;107.26    (ii) the broker to whom the licensee is licensed obtains a certificate of exemption 107.27according to section 58.05, subdivision 2; 107.28    (iii) the broker does not collect an advance fee for its residential mortgage-related 107.29activities; and107.30    (iv) the residential mortgage origination activities are incidental to the real estate 107.31licensee's primary activities as a real estate broker or salesperson;107.32    (4) an individual licensed as a property/casualty or life/health insurance agent under 107.33chapter 60K if:107.34    (i) the insurance agent acts on behalf of only one residential mortgage originator, 107.35which is in compliance with chapter 58;108.1    (ii) the insurance agent has entered into a written contract with the mortgage 108.2originator under the terms of which the mortgage originator agrees to accept responsibility 108.3for the insurance agent's residential mortgage-related activities;108.4    (iii) the insurance agent obtains a certificate of exemption under section 58.05, 108.5subdivision 2; and 108.6    (iv) the insurance agent does not collect an advance fee for the insurance agent's 108.7residential mortgage-related activities;108.8    (5) (1) a person who is not in the business of making residential mortgage loans and 108.9who makes no more than three such loans, with its own funds, during any 12-month period;108.10    (6) (2) a financial institution as defined in section 
         58.02, subdivision 10; 108.11    (7) (3) an agency of the federal government, or of a state or municipal government;108.12    (8) (4) an employee or employer pension plan making loans only to its participants;108.13    (9) (5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result 108.14of a specific order issued by a court of competent jurisdiction; or108.15    (10) (6) a person exempted by order of the commissioner.108.16    Sec. 14. Minnesota Statutes 2006, section 58.04, subdivision 2, is amended to read:108.17    Subd. 2. Residential mortgage servicer licensing requirements. (a) Beginning 108.18August 1, 1999, No person shall engage in activities or practices that fall within the 108.19definition of "servicing a residential mortgage loan" under section 
         58.02, subdivision 108.2022
         , without first obtaining a license from the commissioner according to the licensing 108.21procedures provided in this chapter. 108.22    (b) The following persons are exempt from the residential mortgage servicer 108.23licensing requirements:108.24    (1) a person licensed as a residential mortgage originator;108.25    (2) an employee of one licensee or one person holding a certificate of exemption 108.26based on an exemption under this subdivision;108.27    (3) (2) a person servicing loans made with itsthe person's own funds, if no more 108.28than three such loans are made in any 12-month period;108.29    (4) (3) a financial institution as defined in section 
         58.02, subdivision 10; 108.30    (5) (4) an agency of the federal government, or of a state or municipal government;108.31    (6) (5) an employee or employer pension plan making loans only to its participants;108.32    (7) (6) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result 108.33of a specific order issued by a court of competent jurisdiction; or108.34    (8) (7) a person exempted by order of the commissioner.109.1    Sec. 15. Minnesota Statutes 2006, section 58.05, is amended to read:109.258.05 EXEMPTIONS FROM LICENSE.109.3    Subdivision 1. Exempt person. An exempt person as defined by section 
         58.04, 109.4subdivision 1
         , paragraph (b) (c), and subdivision 2, paragraph (b), is exempt from the 109.5licensing requirements of this chapter, but is subject to all other provisions of this chapter. 109.6    Subd. 3. Certificate of exemption. A person must obtain a certificate of exemption 109.7from the commissioner to qualify as an exempt person under section 
         58.04, subdivision 109.81
         , paragraph (b) (c), as a real estate broker under clause (2), an insurance agent under 109.9clause (4), a financial institution under clause (6) (2), or by order of the commissioner 109.10under clause (10) (6); or under section 
         58.04, subdivision 2, paragraph (b), as a financial 109.11institution under clause (4) (3), or by order of the commissioner under clause (8) (7). 109.12    Sec. 16. Minnesota Statutes 2006, section 58.06, subdivision 2, is amended to read:109.13    Subd. 2. Application contents.(a) The application must contain the name and 109.14complete business address or addresses of the license applicant. If The license applicant is109.15must be a partnership, limited liability partnership, association, limited liability company, 109.16corporation, or other form of business organization, and the application must contain the 109.17names and complete business addresses of each partner, member, director, and principal 109.18officer. The application must also include a description of the activities of the license 109.19applicant, in the detail and for the periods the commissioner may require.109.20    (b) An applicant must submit one of the following:109.21    (1) evidence which shows, to the commissioner's satisfaction, that either the federal 109.22Department of Housing and Urban Development or the Federal National Mortgage 109.23Association has approved the applicant as a mortgagee;109.24    (2) a surety bond or irrevocable letter of credit in the amount of not less than 109.25$100,000 in a form approved by the commissioner, issued by an insurance company 109.26or bank authorized to do so in this state. The bond or irrevocable letter of credit must 109.27be available for the recovery of expenses, fines, and fees levied by the commissioner 109.28under this chapter and for losses incurred by borrowers. The bond or letter of credit must 109.29be submitted with the license application, and evidence of continued coverage must be 109.30submitted with each renewal. Any change in the bond or letter of credit must be submitted 109.31for approval by the commissioner within ten days of its execution; or109.32    (3) a copy of the applicant's most recent audited financial statement, including 109.33balance sheet, statement of income or loss, statements of changes in shareholder equity, 109.34and statement of changes in financial position. Financial statements must be as of a date 109.35within 12 months of the date of application.110.1    (c) The application must also include all of the following:110.2    (a) (1) an affirmation under oath that the applicant:110.3    (1) will maintain competent staff and adequate staffing levels, through direct 110.4employees or otherwise, to meet the requirements of this chapter; (i) is in compliance 110.5with the requirements of section 58.125;110.6    (ii) will maintain a perpetual roster of individuals employed as residential mortgage 110.7originators, including employees and independent contractors, which includes the date that 110.8mandatory initial education was completed. In addition, the roster must be made available 110.9to the commissioner on demand, within three business days of the commissioner's request;110.10    (2) (iii) will advise the commissioner of any material changes to the information 110.11submitted in the most recent application within ten days of the change;110.12    (3) (iv) will advise the commissioner in writing immediately of any bankruptcy 110.13petitions filed against or by the applicant or licensee;110.14    (4) is financially solvent; (v) will maintain at all times either a net worth, net of 110.15intangibles, of at least $250,000 or a surety bond or irrevocable letter of credit in the 110.16amount of at least $100,000;110.17    (5) (vi) complies with federal and state tax laws; and110.18    (6) (vii) complies with sections 
         345.31 to 
         345.60, the Minnesota unclaimed property 110.19law; and110.20    (7) is, or that a person in control of the license applicant is, at least 18 years of age;110.21    (b) (2) information as to the mortgage lending, servicing, or brokering experience 110.22of the applicant and persons in control of the applicant;110.23    (c) (3) information as to criminal convictions, excluding traffic violations, of persons 110.24in control of the license applicant;110.25    (d) (4) whether a court of competent jurisdiction has found that the applicant or 110.26persons in control of the applicant have engaged in conduct evidencing gross negligence, 110.27fraud, misrepresentation, or deceit in performing an act for which a license is required 110.28under this chapter;110.29    (e) (5) whether the applicant or persons in control of the applicant have been the 110.30subject of: an order of suspension or revocation, cease and desist order, or injunctive 110.31order, or order barring involvement in an industry or profession issued by this or another 110.32state or federal regulatory agency or by the Secretary of Housing and Urban Development 110.33within the ten-year period immediately preceding submission of the application; and110.34    (f) (6) other information required by the commissioner.111.1    Sec. 17. Minnesota Statutes 2006, section 58.06, is amended by adding a subdivision 111.2to read:111.3    Subd. 3.Waiver.The commissioner may, for good cause shown, waive any 111.4requirement of this section with respect to any license application or to permit a license 111.5applicant to submit substituted information in its license application in lieu of the 111.6information required by this section.111.7    Sec. 18. Minnesota Statutes 2006, section 58.08, subdivision 3, is amended to read:111.8    Subd. 3. Exemption.Subdivisions 1 and Subdivision 2 do does not apply to 111.9mortgage originators or mortgage servicers who are approved as seller/servicers by the 111.10Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.111.11    Sec. 19. Minnesota Statutes 2006, section 58.10, subdivision 1, is amended to read:111.12    Subdivision 1. Amounts. The following fees must be paid to the commissioner:111.13    (1) for an initial residential mortgage originator license, $850 $2,550, $50 of which 111.14is credited to the consumer education account in the special revenue fund;111.15    (2) for a renewal license, $450 $1,350, $50 of which is credited to the consumer 111.16education account in the special revenue fund;111.17    (3) for an initial residential mortgage servicer's license, $1,000;111.18    (4) for a renewal license, $500; and111.19    (5) for a certificate of exemption, $100.111.20    Sec. 20. [58.115] EXAMINATIONS.111.21    The commissioner has under this chapter the same powers with respect to 111.22examinations that the commissioner has under section 46.04, including the authority to 111.23charge for the direct costs of the examination, including travel and per diem expenses.111.24    Sec. 21. [58.126] EDUCATION REQUIREMENT.111.25    No individual shall engage in residential mortgage origination or make residential 111.26mortgage loans, whether as an employee or independent contractor, before the completion 111.27of 15 hours of educational training which has been approved by the commissioner, and 111.28covering state and federal laws concerning residential mortgage lending.111.29    Sec. 22. [59C.01] SHORT TITLE.111.30    This chapter may be cited as the Vehicle Protection Product Act.111.31EFFECTIVE DATE.This section is effective January 1, 2008.112.1    Sec. 23. [59C.02] DEFINITIONS.112.2    Subdivision 1.Terms.For purposes of this chapter, the terms defined in subdivisions 112.32 to 11 have the meanings given them.112.4    Subd. 2.Administrator."Administrator" means a third party other than the 112.5warrantor who is designated by the warrantor to be responsible for the administration 112.6of vehicle protection product warranties.112.7    Subd. 3.Commissioner."Commissioner" means the commissioner of commerce.112.8    Subd. 4.Department."Department" means the Department of Commerce.112.9    Subd. 5.Incidental costs."Incidental costs" means expenses specified in the 112.10warranty incurred by the warranty holder related to the failure of the vehicle protection 112.11product to perform as provided in the warranty. Incidental costs may include, without 112.12limitation, insurance policy deductibles, rental vehicle charges, the difference between the 112.13actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, 112.14sales taxes, registration fees, transaction fees, and mechanical inspection fees.112.15    Subd. 6.Service contract."Service contract" means a contract or agreement as 112.16regulated under chapter 59B.112.17    Subd. 7.Vehicle protection product."Vehicle protection product" means a vehicle 112.18protection device, system, or service that:112.19    (1) is installed on or applied to a vehicle;112.20    (2) is designed to prevent loss or damage to a vehicle from a specific cause; and112.21    (3) includes a written warranty. 112.22    For purposes of this section, vehicle protection product includes, without limitation, 112.23alarm systems; body part marking products; steering locks; window etch products; pedal 112.24and ignition locks; fuel and ignition kill switches; and electronic, radio, and satellite 112.25tracking devices.112.26    Subd. 8.Vehicle protection product warranty or warranty."Vehicle protection 112.27product warranty" or "warranty" means, for the purposes of this chapter, a written 112.28agreement by a warrantor that provides if the vehicle protection product fails to prevent 112.29loss or damage to a vehicle from a specific cause, that the warranty holder must be 112.30paid specified incidental costs by the warrantor as a result of the failure of the vehicle 112.31protection product to perform pursuant to the terms of the warranty.112.32    Subd. 9.Vehicle protection product warrantor or warrantor."Vehicle protection 112.33product warrantor" or "warrantor," for the purposes of this chapter, means a person who is 112.34contractually obligated to the warranty holder under the terms of the vehicle protection 112.35product warranty agreement. Warrantor does not include an authorized insurer providing a 112.36warranty reimbursement insurance policy.113.1    Subd. 10.Warranty holder."Warranty holder," for the purposes of this chapter, 113.2means the person who purchases a vehicle protection product or who is a permitted 113.3transferee.113.4    Subd. 11.Warranty reimbursement insurance policy."Warranty reimbursement 113.5insurance policy" means a policy of insurance that is issued to the vehicle protection 113.6product warrantor to provide reimbursement to, or to pay on behalf of, the warrantor all 113.7covered contractual obligations incurred by the warrantor under the terms and conditions 113.8of the insured vehicle protection product warranties sold by the warrantor.113.9EFFECTIVE DATE.This section is effective January 1, 2008.113.10    Sec. 24. [59C.03] SCOPE AND EXEMPTIONS.113.11    (a) No vehicle protection product may be sold or offered for sale in this state unless 113.12the seller, warrantor, and administrator, if any, comply with the provisions of this chapter.113.13    (b) Vehicle protection product warrantors and related vehicle protection product 113.14sellers and warranty administrators complying with this chapter are not required to comply 113.15with and are not subject to any other provision of chapters 59B to 72A, except that section 113.1672A.20, subdivision 38, shall apply to vehicle protection product warranties in the same 113.17manner it applies to service contracts.113.18    (c) Service contract providers who do not sell vehicle protection products are not 113.19subject to the requirements of this chapter and sales of vehicle protection products are 113.20exempt from the requirements of chapter 59B.113.21    (d) Warranties, indemnity agreements, and guarantees that are not provided as a part 113.22of a vehicle protection product are not subject to the provisions of this chapter.113.23EFFECTIVE DATE.This section is effective January 1, 2008.113.24    Sec. 25. [59C.04] REGISTRATION AND FILING REQUIREMENTS OF 113.25WARRANTORS.113.26    Subdivision 1.General requirement.  A person may not operate as a warrantor or 113.27represent to the public that the person is a warrantor unless the person is registered with 113.28the department on a form prescribed by the commissioner.113.29    Subd. 2.Registration records.A registrant shall file a warrantor registration 113.30record annually and shall update it within 30 days of any change. A registration record 113.31must contain the following information:113.32    (1) the warrantor's name, any fictitious names under which the warrantor does 113.33business in the state, principal office address, and telephone number;114.1    (2) the name and address of the warrantor's agent for service of process in the state if 114.2other than the warrantor;114.3    (3) the names of the warrantor's executive officer or officers directly responsible for 114.4the warrantor's vehicle protection product business;114.5    (4) the name, address, and telephone number of any administrators designated by 114.6the warrantor to be responsible for the administration of vehicle protection product 114.7warranties in this state;114.8    (5) a copy of the warranty reimbursement insurance policy or policies or other 114.9financial information required by section 59C.05;114.10    (6) a copy of each warranty the warrantor proposes to use in this state; and 114.11    (7) a statement indicating under which provision of section 59C.05 the warrantor 114.12qualifies to do business in this state as a warrantor.114.13    Subd. 3.Registration fee.The commissioner may charge each registrant a 114.14reasonable fee to offset the cost of processing the registration and maintaining the records 114.15in an amount not to exceed $250 annually. The information in subdivision 2, clauses (1) 114.16and (2), must be made available to the public.114.17    Subd. 4.Renewal.If a registrant fails to register by the renewal deadline, the 114.18commissioner shall give them written notice of the failure and the registrant will have 30 114.19days to complete the renewal of the registration before the commissioner suspends the 114.20registration.114.21    Subd. 5.Exception. An administrator or person who sells or solicits a sale of a 114.22vehicle protection product but who is not a warrantor shall not be required to register as a 114.23warrantor or be licensed under the insurance laws of this state to sell vehicle protection 114.24products.114.25EFFECTIVE DATE.This section is effective January 1, 2008.114.26    Sec. 26. [59C.05] FINANCIAL RESPONSIBILITY.114.27    Subdivision 1.General requirements.No vehicle protection product may be sold, 114.28or offered for sale in this state unless the warrantor meets either the requirements of 114.29subdivision 2 or 3 in order to ensure adequate performance under the warranty. No other 114.30financial security requirements or financial standards for warrantors is required.114.31    Subd. 2.Warranty reimbursement insurance policy.The vehicle protection 114.32product warrantor shall be insured under a warranty reimbursement insurance policy 114.33issued by an insurer authorized to do business in this state which provides that:115.1    (1) the insurer will pay to, or on behalf of the warrantor, 100 percent of all sums 115.2that the warrantor is legally obligated to pay according to the warrantor's contractual 115.3obligations under the warrantor's vehicle protection product warranty;115.4    (2) a true and correct copy of the warranty reimbursement insurance policy has been 115.5filed with the commissioner by the warrantor; and115.6    (3) the policy contains the provision required in section 59C.06.115.7    Subd. 3.Network or stockholder's equity.(1) The vehicle protection product 115.8warrantor, or its parent company in accordance with clause (2), shall maintain a net worth 115.9or stockholders' equity of $50,000,000; and115.10    (2) the warrantor shall provide the commissioner with a copy of the warrantor's or 115.11the warrantor's parent company's most recent Form 10-K or Form 20-F filed with the 115.12Securities and Exchange Commission within the last calendar year or, if the warrantor 115.13does not file with the Securities and Exchange Commission, a copy of the warrantor or 115.14the warrantor's parent company's audited financial statements that shows a net worth of 115.15the warrantor or its parent company of at least $50,000,000. If the warrantor's parent 115.16company's Form 10-K, Form 20-F, or audited financial statements are filed to meet 115.17the warrantor's financial stability requirement, then the parent company shall agree to 115.18guarantee the obligations of the warrantor relating to warranties issued by the warrantor in 115.19this state. The financial information provided to the commissioner under this paragraph 115.20is trade secret information for purposes of section 13.37.115.21EFFECTIVE DATE.This section is effective January 1, 2008.115.22    Sec. 27. [59C.06] WARRANTY REIMBURSEMENT POLICY 115.23REQUIREMENTS.115.24    No warranty reimbursement insurance policy may be issued, sold, or offered for sale 115.25in this state unless the policy meets the following conditions:115.26    (1) the policy states that the issuer of the policy will reimburse, or pay on behalf of 115.27the vehicle protection product warrantor, all covered sums that the warrantor is legally 115.28obligated to pay, or will provide all service that the warrantor is legally obligated to 115.29perform according to the warrantor's contractual obligations under the provisions of the 115.30insured warranties sold by the warrantor;115.31    (2) the policy states that in the event payment due under the terms of the warranty is 115.32not provided by the warrantor within 60 days after proof of loss has been filed according 115.33to the terms of the warranty by the warranty holder, the warranty holder may file directly 115.34with the warranty reimbursement insurance company for reimbursement;116.1    (3) the policy provides that a warranty reimbursement insurance company that 116.2insures a warranty is deemed to have received payment of the premium if the warranty 116.3holder paid for the vehicle protection product and the insurer's liability under the policy 116.4shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the 116.5issuance of a warranty to the insurer; and116.6    (4) the policy has the following provisions regarding cancellation of the policy:116.7    (i) the issuer of a reimbursement insurance policy shall not cancel the policy until a 116.8notice of cancellation in writing has been mailed or delivered to the commissioner and 116.9each insured warrantor;116.10    (ii) the cancellation of a reimbursement insurance policy shall not reduce the issuer's 116.11responsibility for vehicle protection products sold prior to the date of cancellation; and116.12    (iii) in the event an insurer cancels a policy that a warrantor has filed with the 116.13commissioner, the warrantor shall do either of the following:116.14    (A) file a copy of a new policy with the commissioner, before the termination of 116.15the prior policy, providing no lapse in coverage following the termination of the prior 116.16policy; or 116.17    (B) discontinue offering warranties as of the termination date of the policy until a 116.18new policy becomes effective and is accepted by the commissioner.116.19EFFECTIVE DATE.This section is effective January 1, 2008.116.20    Sec. 28. [59C.07] DISCLOSURE TO WARRANTY HOLDER.116.21    A vehicle protection product warranty must not be sold or offered for sale in this 116.22state unless the warranty:116.23    (1) states, "The obligations of the warrantor to the warranty holder are guaranteed 116.24under a warranty reimbursement insurance policy" if the warrantor elects to meet its 116.25financial responsibility obligations under section 59C.05, subdivision 2, or states "The 116.26obligations of the warrantor under this warranty are backed by the full faith and credit 116.27of the warrantor" if the warrantor elects to meet its financial responsibility obligations 116.28under section 59C.05, subdivision 3;116.29    (2) states that in the event a warranty holder must make a claim against a party other 116.30than the warranty reimbursement insurance policy issuer, the warranty holder is entitled to 116.31make a direct claim against the insurer upon the failure of the warrantor to pay any claim 116.32or meet any obligation under the terms of the warranty within 60 days after proof of loss 116.33has been filed with the warrantor, if the warrantor elects to meet its financial responsibility 116.34obligations under section 59C.05, subdivision 2;117.1    (3) states the name and address of the issuer of the warranty reimbursement 117.2insurance policy, and this information need not be preprinted on the warranty form, but 117.3may be added to or stamped on the warranty, if the warrantor elects to meet its financial 117.4responsibility obligations under section 59C.05, subdivision 2;117.5    (4) identifies the warrantor, the seller, and the warranty holder;117.6    (5) sets forth the total purchase price and the terms under which it is to be paid, 117.7however, the purchase price is not required to be preprinted on the vehicle protection 117.8product warranty and may be negotiated with the consumer at the time of sale;117.9    (6) sets forth the procedure for making a claim, including a telephone number;117.10    (7) specifies the payments or performance to be provided under the warranty 117.11including payments for incidental costs expressed as either a fixed amount specified in the 117.12warranty or sales agreement or by the use of a formula itemizing specific incidental costs 117.13incurred by the warranty holder, the manner of calculation or determination of payments 117.14or performance, and any limitations, exceptions, or exclusions;117.15    (8) sets forth all of the obligations and duties of the warranty holder such as the duty 117.16to protect against any further damage to the vehicle, the obligation to notify the warrantor 117.17in advance of any repair, or other similar requirements, if any;117.18    (9) sets forth any terms, restrictions, or conditions governing transferability and 117.19cancellation of the warranty, if any; and117.20    (10) contains a disclosure that reads substantially as follows: "This agreement is a 117.21product warranty and is not insurance."117.22EFFECTIVE DATE.This section is effective January 1, 2008.117.23    Sec. 29. [59C.08] PROHIBITED ACTS.117.24    (a) Unless licensed as an insurance company, a vehicle protection product warrantor 117.25shall not use in its name, contracts, or literature, any of the words "insurance," "casualty," 117.26"surety," "mutual," or any other words descriptive of the insurance, casualty, or surety 117.27business or deceptively similar to the name or description of any insurance or surety 117.28corporation, or any other vehicle protection product warrantor. A warrantor may use the 117.29term "guaranty" or similar word in the warrantor's name.117.30    (b) A vehicle protection product seller or warrantor may not require as a condition of 117.31financing that a retail purchaser of a motor vehicle purchase a vehicle protection product.117.32EFFECTIVE DATE.This section is effective January 1, 2008.117.33    Sec. 30. [59C.09] RECORD KEEPING.118.1    (a) All vehicle protection product warrantors shall keep accurate accounts, books, 118.2and records concerning transactions regulated under this chapter.118.3    (b) A vehicle protection product warrantor's accounts, books, and records must 118.4include:118.5    (1) copies of all vehicle protection product warranties;118.6    (2) the name and address of each warranty holder; and118.7    (3) the dates, amounts, and descriptions of all receipts, claims, and expenditures.118.8    (c) A vehicle protection product warrantor shall retain all required accounts, books, 118.9and records pertaining to each warranty holder for at least two years after the specified 118.10period of coverage has expired. A warrantor discontinuing business in this state shall 118.11maintain its records until it furnishes the commissioner satisfactory proof that it has 118.12discharged all obligations to warranty holders in this state.118.13EFFECTIVE DATE.This section is effective January 1, 2008.118.14    Sec. 31. [59C.10] COMMISSIONER'S POWERS AND DUTIES.118.15    Subdivision 1.Examination and compliance powers.The commissioner may 118.16conduct examinations of warrantors, administrators, or other persons to enforce this 118.17chapter and protect warranty holders in this state. Upon request of the commissioner, a 118.18warrantor shall make available to the commissioner all accounts, books, and records 118.19concerning vehicle protection products sold by the warrantor and transactions regulated 118.20under this chapter that are necessary to enable the commissioner to reasonably determine 118.21compliance or noncompliance with this chapter.118.22    Subd. 2.Enforcement authority.The commissioner may take action that is 118.23necessary or appropriate to enforce the provisions of this chapter and the commissioner's 118.24rules and orders and to protect warranty holders in this state. The commissioner has the 118.25enforcement authority in chapter 45 available to enforce the provisions of the chapter and 118.26the rules adopted pursuant to it.118.27EFFECTIVE DATE.This section is effective January 1, 2008.118.28    Sec. 32. [59C.12] APPLICABILITY.118.29    This chapter applies to all vehicle protection products sold or offered for sale on 118.30or after the effective date of this chapter. The failure of any person to comply with this 118.31chapter before its effective date is not admissible in any court proceeding, administrative 118.32proceeding, arbitration, or alternative dispute resolution proceeding and may not otherwise 118.33be used to prove that the action of any person or the affected vehicle protection product 119.1was unlawful or otherwise improper. The adoption of this chapter does not imply that 119.2a vehicle protection product warranty was insurance before the effective date of this 119.3chapter. Nothing in this section may be construed to require the application of the penalty 119.4provisions where this section is not applicable.119.5EFFECTIVE DATE.This section is effective January 1, 2008.119.6    Sec. 33. [60K.365] PRODUCER TRAINING REQUIREMENTS FOR 119.7LONG-TERM CARE PARTNERSHIP PROGRAM INSURANCE PRODUCTS.119.8    (a) An individual may not sell, solicit, or negotiate long-term care insurance 119.9unless the individual is licensed as an insurance producer for accident and health or 119.10sickness insurance or life insurance and has completed an initial training course and 119.11ongoing training every 24 months thereafter. The training shall meet the requirements of 119.12paragraph (b).119.13    (b) The initial training course required by this subdivision shall be no less than 119.14eight hours and the ongoing training courses required by this subdivision shall be no less 119.15than four hours every 24 months. The courses shall be approved by the Department of 119.16Commerce and may be approved as continuing education courses under section 60K.56. 119.17The courses shall consist of topics related to long-term care insurance, long-term care 119.18services, and, if applicable, qualified state long-term care insurance partnership programs, 119.19including but not limited to:119.20    (1) state and federal regulations and requirements and the relationship between 119.21qualified state long-term care insurance partnership programs and other public and private 119.22coverage of long-term care services, including Medicaid;119.23    (2) available long-term care services and providers;119.24    (3) changes or improvements in long-term care services or providers;119.25    (4) alternatives to the purchase of private long-term care insurance;119.26    (5) the effect of inflation on benefits and the importance of inflation protection; and119.27    (6) consumer suitability standards and guidelines.119.28    The training required by this subdivision shall not include training that is insurer or 119.29company product specific or that includes any sales or marketing information, materials, 119.30or training, other than those required by state or federal law.119.31    (c) Insurers shall obtain verification that a producer has received the training 119.32required by this subdivision before a producer is permitted to sell, solicit, or negotiate the 119.33insurer's long-term care insurance products. Insurers shall maintain records verifying 119.34that the producer has received the training contained in this subdivision and make that 119.35verification available to the commissioner upon request.120.1    (d) Currently licensed producers must complete the initial training course by January 120.21, 2008.120.3EFFECTIVE DATE.This section is effective the day following final enactment.120.4    Sec. 34. Minnesota Statutes 2006, section 60K.55, subdivision 2, is amended to read:120.5    Subd. 2. Licensing fees. (a) In addition to fees provided for examinations and the 120.6technology surcharge required under paragraph (d), each insurance producer licensed 120.7under this chapter shall pay to the commissioner a fee of:120.8    (1) $50 for an initial life, accident and health, property, or casualty license issued to 120.9an individual insurance producer, and a fee of $50 for each renewal;120.10    (2) $50 for an initial variable life and variable annuity license issued to an individual 120.11insurance producer, and a fee of $50 for each renewal;120.12    (3) $50 for an initial personal lines license issued to an individual insurance 120.13producer, and a fee of $50 for each renewal;120.14    (4) $50 for an initial limited lines license issued to an individual insurance producer, 120.15and a fee of $50 for each renewal;120.16    (5) $200 for an initial license issued to a business entity, and a fee of $200 for each 120.17renewal; and120.18    (6) $500 for an initial surplus lines license, and a fee of $500 for each renewal.120.19    (b) Initial licenses issued under this chapter are valid for a period not to exceed 24 120.20months and expire on October 31 of the renewal year assigned by the commissioner. 120.21Each renewal insurance producer license is valid for a period of 24 months. Licensees 120.22who submit renewal applications postmarked or delivered on or before October 15 of the 120.23renewal year may continue to transact business whether or not the renewal license has been 120.24received by November 1. Licensees who submit applications postmarked or delivered 120.25after October 15 of the renewal year must not transact business after the expiration date 120.26of the license until the renewal license has been received.120.27    (c) All fees are nonreturnable, except that an overpayment of any fee may be 120.28refunded upon proper application.120.29    (d) In addition to the fees required under paragraph (a), individual insurance 120.30producers shall pay, for each initial license and renewal, a technology surcharge of up to 120.31$40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted 120.32under that section.120.33EFFECTIVE DATE.This section is effective October 1, 2007.121.1    Sec. 35. Minnesota Statutes 2006, section 65B.44, subdivision 2, is amended to read:121.2    Subd. 2. Medical expense benefits. (a) Medical expense benefits shall reimburse 121.3all reasonable expenses for necessary:121.4    (1) medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services, 121.5including prosthetic devices and items that provide relief from any injury;121.6    (2) prescription drugs;121.7    (3) ambulance and all other transportation expenses incurred in traveling to receive 121.8other covered medical expense benefits;121.9    (4) sign interpreting and language translation services, other than such services 121.10provided by a family member of the patient, related to the receipt of medical, surgical, 121.11x-ray, optical, dental, chiropractic, hospital, extended care, nursing, and rehabilitative 121.12services; and121.13    (5) hospital, extended care, and nursing services.121.14    (b) Hospital room and board benefits may be limited, except for intensive care 121.15facilities, to the regular daily semiprivate room rates customarily charged by the institution 121.16in which the recipient of benefits is confined.121.17    (c) Such benefits shall also include necessary remedial treatment and services 121.18recognized and permitted under the laws of this state for an injured person who relies 121.19upon spiritual means through prayer alone for healing in accordance with that person's 121.20religious beliefs.121.21    (d) Medical expense loss includes medical expenses accrued prior to the death of a 121.22person notwithstanding the fact that benefits are paid or payable to the decedent's survivors.121.23    (e) Medical expense benefits for rehabilitative services shall be subject to the 121.24provisions of section 
         65B.45. 121.25    Sec. 36. Minnesota Statutes 2006, section 65B.44, subdivision 3, is amended to read:121.26    Subd. 3. Disability and income loss benefits. Disability and income loss benefits 121.27shall provide compensation for 85 percent of the injured person's loss of present and future 121.28gross income from inability to work proximately caused by the nonfatal injury subject 121.29to a maximum of $250$500 per week. Loss of income includes the costs incurred by a 121.30self-employed person to hire substitute employees to perform tasks which are necessary to 121.31maintain the income of the injured person, which are normally performed by the injured 121.32person, and which cannot be performed because of the injury.121.33    If the injured person is unemployed at the time of injury and is receiving or is 121.34eligible to receive unemployment benefits under chapter 268, but the injured person loses 121.35eligibility for those benefits because of inability to work caused by the injury, disability 122.1and income loss benefits shall provide compensation for the lost benefits in an amount 122.2equal to the unemployment benefits which otherwise would have been payable, subject to 122.3a maximum of $250$500 per week.122.4    Compensation under this subdivision shall be reduced by any income from substitute 122.5work actually performed by the injured person or by income the injured person would 122.6have earned in available appropriate substitute work which the injured person was capable 122.7of performing but unreasonably failed to undertake.122.8    For the purposes of this section "inability to work" means disability which prevents 122.9the injured person from engaging in any substantial gainful occupation or employment 122.10on a regular basis, for wage or profit, for which the injured person is or may by training 122.11become reasonably qualified. If the injured person returns to employment and is unable by 122.12reason of the injury to work continuously, compensation for lost income shall be reduced 122.13by the income received while the injured person is actually able to work. The weekly 122.14maximums may not be prorated to arrive at a daily maximum, even if the injured person 122.15does not incur loss of income for a full week.122.16    For the purposes of this section, an injured person who is "unable by reason of the 122.17injury to work continuously" includes, but is not limited to, a person who misses time 122.18from work, including reasonable travel time, and loses income, vacation, or sick leave 122.19benefits, to obtain medical treatment for an injury arising out of the maintenance or use 122.20of a motor vehicle.122.21    Sec. 37. Minnesota Statutes 2006, section 65B.44, subdivision 4, is amended to read:122.22    Subd. 4. Funeral and burial expenses. Funeral and burial benefits shall be 122.23reasonable expenses not in excess of $2,000 $5,000, including expenses for cremation or 122.24delivery under the Uniform Anatomical Gift Act (1987), sections 
         525.921 to 
         525.9224. 122.25    Sec. 38. Minnesota Statutes 2006, section 65B.44, subdivision 5, is amended to read:122.26    Subd. 5. Replacement service and loss. Replacement service loss benefits shall 122.27reimburse all expenses reasonably incurred by or on behalf of the nonfatally injured 122.28person in obtaining usual and necessary substitute services in lieu of those that, had the 122.29injured person not been injured, the injured person would have performed not for income 122.30but for direct personal benefit or for the benefit of the injured person's household; if 122.31the nonfatally injured person normally, as a full time responsibility, provides care and 122.32maintenance of a home with or without children, the benefit to be provided under this 122.33subdivision shall be the reasonable value of such care and maintenance or the reasonable 122.34expenses incurred in obtaining usual and necessary substitute care and maintenance of 123.1the home, whichever is greater. These benefits shall be subject to a maximum of $200123.2$600 per week. All replacement services loss sustained on the date of injury and the first 123.3seven days thereafter is excluded in calculating replacement services loss.123.4    Sec. 39. Minnesota Statutes 2006, section 65B.47, subdivision 7, is amended to read:123.5    Subd. 7. Adding policies together. Unless a policyholder makes a specific election 123.6not to have two or more policies added together the limit of liability for basic economic 123.7loss benefits for two or more motor vehicles may notmust be added together to determine 123.8the limit of insurance coverage available to an injured person for any one accident. An 123.9insurer shall notify policyholders that they may elect not to have two or more policies 123.10added together.123.11    Sec. 40. Minnesota Statutes 2006, section 65B.54, subdivision 1, is amended to read:123.12    Subdivision 1. Payment of basic economic loss benefits. Basic economic loss 123.13benefits are payable monthly as loss accrues. Loss accrues not when injury occurs, but as 123.14income loss, replacement services loss, survivor's economic loss, survivor's replacement 123.15services loss, or medical or funeral expense is incurred. Benefits are overdue if not 123.16paid within 30 days after the reparation obligor receives reasonable proof of the fact 123.17and amount of loss realized, unless the reparation obligor elects to accumulate claims 123.18for periods not exceeding 31 days and pays them within 15 days after the period of 123.19accumulation. However, if the insurer notifies the insured that it is denying benefits, the 123.20insured need not continue to provide the insurer with proof of the bills, losses, or expenses.123.21If reasonable proof is supplied as to only part of a claim, and the part totals $100 or more, 123.22the part is overdue if not paid within the time provided by this section. Medical or funeral 123.23expense benefits may be paid by the reparation obligor directly to persons supplying 123.24products, services, or accommodations to the claimant.123.25    Sec. 41. Minnesota Statutes 2006, section 65B.54, is amended by adding a subdivision 123.26to read:123.27    Subd. 6.Unethical practices.(a) A licensed health care provider shall not initiate 123.28direct contact, in person, over the telephone, or by other electronic means, with any person 123.29who has suffered an injury arising out of the maintenance or use of an automobile, for the 123.30purpose of influencing that person to receive treatment or to purchase any good or item 123.31from the licensee or anyone associated with the licensee. This subdivision prohibits such 123.32direct contact whether initiated by the licensee individually or on behalf of the licensee by 124.1any employee, independent contractor, agent, or third party. This subdivision does not 124.2apply when an injured person voluntarily initiates contact with a licensee.124.3    (b) This subdivision does not prohibit licensees from mailing advertising literature 124.4directly to such persons, so long as:124.5    (1) the word "ADVERTISEMENT" appears clearly and conspicuously at the 124.6beginning of the written materials;124.7    (2) the name of the individual licensee appears clearly and conspicuously within 124.8the written materials;124.9    (3) the licensee is clearly identified as a licensed health care provider within the 124.10written materials; and124.11    (4) the licensee does not initiate, individually or through any employee, independent 124.12contractor, agent, or third party, direct contact with the person after the written materials 124.13are sent.124.14    (c) This subdivision does not apply to:124.15    (1) advertising that does not involve direct contact with specific prospective patients, 124.16in public media such as telephone directories, professional directories, ads in newspapers 124.17and other periodicals, radio or television ads, Web sites, billboards, or similar media; or124.18    (2) general marketing practices such as giving lectures; participating in special 124.19events, trade shows, or meetings of organizations; or making presentations relative to 124.20the benefits of chiropractic treatment; or124.21    (3) contact with friends or relatives, or statements made in a social setting.124.22    (d) A violation of this subdivision is grounds for the licensing authority to take 124.23disciplinary action against the licensee, including revocation in appropriate cases.124.24    Sec. 42. Minnesota Statutes 2006, section 80A.28, subdivision 1, is amended to read:124.25    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of 124.26$100 for every application for registration or notice filing. There shall be an additional fee 124.27of one-tenth of one percent of the maximum aggregate offering price at which the securities 124.28are to be offered in this state, and the maximum combined fees shall not exceed $300.124.29    (b) When an application for registration is withdrawn before the effective date or a 124.30preeffective stop order is entered under section 
         80A.13, subdivision 1, all but the $100 124.31filing fee shall be returned. If an application to register securities is denied, the total of all 124.32fees received shall be retained. 124.33    (c) Where a filing is made in connection with a federal covered security under 124.34section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 124.35If the filing is made in connection with redeemable securities issued by an open end 125.1management company or unit investment trust, as defined in the Investment Company Act 125.2of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate 125.3offering price at which the securities are to be offered in this state during the notice filing 125.4period. The fee must be paid at the time of the initial filing and thereafter in connection 125.5with each renewal no later than July 1 of each year and must be sufficient to cover the 125.6shares the issuer expects to sell in this state over the next 12 months. If during a current 125.7notice filing the issuer determines it is likely to sell shares in excess of the shares for 125.8which fees have been paid to the commissioner, the issuer shall submit an amended notice 125.9filing to the commissioner under section 
         80A.122, subdivision 1, clause (3), together with 125.10a fee of 1/20 of one percent of the maximum aggregate offering price of the additional 125.11shares. Shares for which a fee has been paid, but which have not been sold at the time 125.12of expiration of the notice filing, may not be sold unless an additional fee to cover the 125.13shares has been paid to the commissioner as provided in this section and section 
         80A.122, 125.14subdivision 4a
         . If the filing is made in connection with redeemable securities issued by 125.15such a company or trust, there is no maximum fee for securities filings made according to 125.16this paragraph. If the filing is made in connection with any other federal covered security 125.17under Section 18(b)(2) of the Securities Act of 1933, there is an additional fee of one-tenth 125.18of one percent of the maximum aggregate offering price at which the securities are to be 125.19offered in this state, and the combined fees shall not exceed $300. Beginning with fiscal 125.20year 2001 and continuing each fiscal year thereafter, as of the last day of each fiscal year, 125.21the commissioner shall determine the total amount of all fees that were collected under 125.22this paragraph in connection with any filings made for that fiscal year for securities of an 125.23open-end investment company on behalf of a security that is a federal covered security 125.24pursuant to section 18(b)(2) of the Securities Act of 1933. To the extent the total fees 125.25collected by the commissioner in connection with these filings exceed $25,000,000 in a 125.26fiscal year, the commissioner shall refund, on a pro rata basis, to all persons who paid any 125.27fees for that fiscal year, the amount of fees collected by the commissioner in excess of 125.28$25,000,000. No individual refund is required of amounts of $100 or less for a fiscal year. 125.29    Sec. 43. Minnesota Statutes 2006, section 80A.65, subdivision 1, is amended to read:125.30    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of 125.31$100 for every application for registration or notice filing.  There shall be an additional fee 125.32of one-tenth of one percent of the maximum aggregate offering price at which the securities 125.33are to be offered in this state, and the maximum combined fees shall not exceed $300.125.34    (b) When an application for registration is withdrawn before the effective date 125.35or a preeffective stop order is entered under section 80A.54, all but the $100 filing fee 126.1shall be returned.  If an application to register securities is denied, the total of all fees 126.2received shall be retained.126.3    (c) Where a filing is made in connection with a federal covered security under 126.4section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 126.5If the filing is made in connection with redeemable securities issued by an open end 126.6management company or unit investment trust, as defined in the Investment Company Act 126.7of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate 126.8offering price at which the securities are to be offered in this state during the notice filing 126.9period.  The fee must be paid at the time of the initial filing and thereafter in connection 126.10with each renewal no later than July 1 of each year and must be sufficient to cover the 126.11shares the issuer expects to sell in this state over the next 12 months.  If during a current 126.12notice filing the issuer determines it is likely to sell shares in excess of the shares for which 126.13fees have been paid to the administrator, the issuer shall submit an amended notice filing 126.14to the administrator under section 80A.50, together with a fee of 1/20 of one percent of the 126.15maximum aggregate offering price of the additional shares.  Shares for which a fee has 126.16been paid, but which have not been sold at the time of expiration of the notice filing, may 126.17not be sold unless an additional fee to cover the shares has been paid to the administrator 126.18as provided in this section and section 80A.50.  If the filing is made in connection with 126.19redeemable securities issued by such a company or trust, there is no maximum fee for 126.20securities filings made according to this paragraph.  If the filing is made in connection 126.21with any other federal covered security under Section 18(b)(2) of the Securities Act of 126.221933, there is an additional fee of one-tenth of one percent of the maximum aggregate 126.23offering price at which the securities are to be offered in this state, and the combined fees 126.24shall not exceed $300.  Beginning with fiscal year 2001 and continuing each fiscal year 126.25thereafter, as of the last day of each fiscal year, the administrator shall determine the total 126.26amount of all fees that were collected under this paragraph in connection with any filings 126.27made for that fiscal year for securities of an open-end investment company on behalf of a 126.28security that is a federal covered security pursuant to section 18(b)(2) of the Securities 126.29Act of 1933.  To the extent the total fees collected by the administrator in connection 126.30with these filings exceed $25,000,000 in a fiscal year, the administrator shall refund, on 126.31a pro rata basis, to all persons who paid any fees for that fiscal year, the amount of fees 126.32collected by the administrator in excess of $25,000,000.  No individual refund is required 126.33of amounts of $100 or less for a fiscal year.126.34    Sec. 44. Minnesota Statutes 2006, section 82.24, subdivision 1, is amended to read:126.35    Subdivision 1. Amounts. The following fees shall be paid to the commissioner:127.1    (a) a fee of $150 for each initial individual broker's license, and a fee of $100 for 127.2each renewal thereof;127.3    (b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each 127.4renewal thereof;127.5    (c) a fee of $85 for each initial real estate closing agent license, and a fee of $60 127.6for each renewal thereof;127.7    (d) a fee of $150 for each initial corporate, limited liability company, or partnership 127.8license, and a fee of $100 for each renewal thereof;127.9    (e) a fee for payment to the education, research and recovery fund in accordance 127.10with section 
         82.43; 127.11    (f) a fee of $20 for each transfer;127.12    (g) a fee of $50 for license reinstatement; and127.13    (h) a fee of $20 for reactivating a corporate, limited liability company, or partnership 127.14license without land; and127.15    (i) in addition to the fees required under this subdivision, individual licensees under 127.16clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge 127.17of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge 127.18as permitted under that section.127.19EFFECTIVE DATE.This section is effective the day following final enactment.127.20    Sec. 45. Minnesota Statutes 2006, section 82.24, subdivision 4, is amended to read:127.21    Subd. 4. Deposit of fees. Unless otherwise provided by this chapter, all fees 127.22collected under this chapter shall be deposited in the state treasury. The technology 127.23surcharge shall be deposited as required under section 45.24.127.24EFFECTIVE DATE.This section is effective the day following final enactment.127.25    Sec. 46. Minnesota Statutes 2006, section 82B.09, subdivision 1, is amended to read:127.26    Subdivision 1. Amounts.(a) The following fees must be paid to the commissioner:127.27    (1) $150 for each initial individual real estate appraiser's license; and127.28    (2) $100 for each renewal.127.29    (b) In addition to the fees required under this subdivision, individual real estate 127.30appraisers shall pay a technology surcharge of up to $40 under section 45.24, unless the 127.31commissioner has adjusted the surcharge as permitted under that section.127.32EFFECTIVE DATE.This section is effective the day following final enactment.128.1    Sec. 47. Minnesota Statutes 2006, section 118A.03, subdivision 2, is amended to read:128.2    Subd. 2. In lieu of surety bond. The following are the allowable forms of collateral 128.3in lieu of a corporate surety bond:128.4    (1) United States government Treasury bills, Treasury notes, Treasury bonds;128.5    (2) issues of United States government agencies and instrumentalities as quoted by a 128.6recognized industry quotation service available to the government entity;128.7    (3) general obligation securities of any state or local government with taxing powers 128.8which is rated "A" or better by a national bond rating service, or revenue obligation 128.9securities of any state or local government with taxing powers which is rated "AA" or 128.10better by a national bond rating service;128.11    (4) unrated general obligation securities of a local government with taxing powers 128.12may be pledged as collateral against funds deposited by that same local government entity;128.13    (5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a 128.14municipality accompanied by written evidence that the bank's public debt is rated "AA" or 128.15better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and128.16    (6) time deposits that are fully insured by any federal agency.128.17    Sec. 48. Minnesota Statutes 2006, section 148.102, is amended by adding a subdivision 128.18to read:128.19    Subd. 3a.Reparation obligors.A reparation obligor as defined in section 65B.43, 128.20subdivision 9, may submit any relevant information to the board in any case in which 128.21the reparation obligor has reason to believe that charges being billed by a licensee are 128.22fraudulent, unreasonable, or inconsistent with treatment actually received by the injured 128.23party involved.128.24    A reparation obligor that makes a report under this section shall provide the board 128.25with any additional information, related to the reported activities, requested by the board.128.26    Sec. 49. Minnesota Statutes 2006, section 239.101, subdivision 3, is amended to read:128.27    Subd. 3. Petroleum inspection fee. (a) An inspection fee is imposed (1) on 128.28petroleum products when received by the first licensed distributor, and (2) on petroleum 128.29products received and held for sale or use by any person when the petroleum products 128.30have not previously been received by a licensed distributor. The petroleum inspection 128.31fee is $1 for every 1,000 gallons received. The commissioner of revenue shall collect 128.32the fee. The revenue from 81 cents of the fee is appropriated to the commissioner of 128.33commerce for the cost of operations of the Division of Weights and Measures, petroleum 128.34supply monitoring, and the oil burner retrofit program to make grants to providers of 129.1low-income weatherization services to install renewable energy equipment in households 129.2that are eligible for weatherization assistance under Minnesota's weatherization assistance 129.3program state plan. The remainder of the fee must be deposited in the general fund.129.4    (b) The commissioner of revenue shall credit a person for inspection fees previously 129.5paid in error or for any material exported or sold for export from the state upon filing of a 129.6report as prescribed by the commissioner of revenue.129.7    (c) The commissioner of revenue may collect the inspection fee along with any 129.8taxes due under chapter 296A.129.9    Sec. 50. [325E.027] DISCRIMINATION PROHIBITION.129.10    (a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil 129.11who has signed a low-income home energy assistance program vendor agreement with the 129.12department of commerce may refuse to deliver liquid propane gas or number 1 or number 129.132 fuel oil to any person located within the dealer's or distributor's normal delivery area 129.14who receives direct grants under the low-income home energy assistance program if:129.15    (1) the person has requested delivery;129.16    (2) the dealer or distributor has product available;129.17    (3) the person requesting delivery is capable of making full payment at the time of 129.18delivery; and129.19    (4) the person is not in arrears regarding any previous fuel purchase from that dealer 129.20or distributor.129.21    (b) A dealer or distributor making delivery to a person receiving direct grants 129.22under the low-income home energy assistance program may not charge that person any 129.23additional costs or fees that would not be charged to any other customer and must make 129.24available to that person any discount program on the same basis as the dealer or distributor 129.25makes available to any other customer.129.26    Sec. 51. Minnesota Statutes 2006, section 325E.311, subdivision 6, is amended to read:129.27    Subd. 6. Telephone solicitation. "Telephone solicitation" means any voice 129.28communication over a telephone line for the purpose of encouraging the purchase or 129.29rental of, or investment in, property, goods, or services, whether the communication is 129.30made by a live operator, through the use of an automatic dialing-announcing device as 129.31defined in section 
         325E.26, subdivision 2, or by other means. Telephone solicitation 129.32does not include communications:129.33    (1) to any residential subscriber with that subscriber's prior express invitation or 129.34permission; or130.1    (2) by or on behalf of any person or entity with whom a residential subscriber has a 130.2prior or current business or personal relationship.130.3Telephone solicitation also does not include communications if the caller is identified by a 130.4caller identification service and the call is:130.5    (i) by or on behalf of an organization that is identified as a nonprofit organization 130.6under state or federal law, unless the organization is a debt management services provider 130.7defined in section 332A.02;130.8    (ii) by a person soliciting without the intent to complete, and who does not in 130.9fact complete, the sales presentation during the call, but who will complete the sales 130.10presentation at a later face-to-face meeting between the solicitor who makes the call 130.11and the prospective purchaser; or130.12    (iii) by a political party as defined under section 
         200.02, subdivision 6.130.13EFFECTIVE DATE.This section is effective January 1, 2008.130.14    Sec. 52. Minnesota Statutes 2006, section 325N.01, is amended to read:130.15325N.01 DEFINITIONS.130.16    The definitions in paragraphs (a) to (h) apply to sections 
         325N.01 to 
         325N.09. 130.17    (a) "Foreclosure consultant" means any person who, directly or indirectly, makes 130.18any solicitation, representation, or offer to any owner to perform for compensation or 130.19who, for compensation, performs any service which the person in any manner represents 130.20will in any manner do any of the following:130.21    (1) stop or postpone the foreclosure sale;130.22    (2) obtain any forbearance from any beneficiary or mortgagee;130.23    (3) assist the owner to exercise the right of reinstatement provided in section 
         580.30; 130.24    (4) obtain any extension of the period within which the owner may reinstate the 130.25owner's obligation;130.26    (5) obtain any waiver of an acceleration clause contained in any promissory note or 130.27contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;130.28    (6) assist the owner in foreclosure or loan default to obtain a loan or advance 130.29of funds;130.30    (7) avoid or ameliorate the impairment of the owner's credit resulting from the 130.31recording of a notice of default or the conduct of a foreclosure sale; or130.32    (8) save the owner's residence from foreclosure.130.33    (b) A foreclosure consultant does not include any of the following:131.1    (1) a person licensed to practice law in this state when the person renders service 131.2in the course of his or her practice as an attorney-at-law;131.3    (2) a person licensed as a debt prorater under sections 332.12 to 332.29 management 131.4services provider under chapter 332A, when the person is acting as a debt prorater131.5management services provider as defined in these sections that chapter; 131.6    (3) a person licensed as a real estate broker or salesperson under chapter 82 when the 131.7person engages in acts whose performance requires licensure under that chapter unless the 131.8person is engaged in offering services designed to, or purportedly designed to, enable the 131.9owner to retain possession of the residence in foreclosure;131.10    (4) a person licensed as an accountant under chapter 326A when the person is acting 131.11in any capacity for which the person is licensed under those provisions;131.12    (5) a person or the person's authorized agent acting under the express authority 131.13or written approval of the Department of Housing and Urban Development or other 131.14department or agency of the United States or this state to provide services;131.15    (6) a person who holds or is owed an obligation secured by a lien on any residence 131.16in foreclosure when the person performs services in connection with this obligation or lien 131.17if the obligation or lien did not arise as the result of or as part of a proposed foreclosure 131.18reconveyance;131.19    (7) any person or entity doing business under any law of this state, or of the United 131.20States relating to banks, trust companies, savings and loan associations, industrial loan and 131.21thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee 131.22which is a United States Department of Housing and Urban Development approved 131.23mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or 131.24employee of these persons or entities while engaged in the business of these persons 131.25or entities;131.26    (8) a person licensed as a residential mortgage originator or servicer pursuant to 131.27chapter 58, when acting under the authority of that license or a foreclosure purchaser as 131.28defined in section 
         325N.10; 131.29    (9) a nonprofit agency or organization that offers counseling or advice to an owner 131.30of a home in foreclosure or loan default if they do not contract for services with for-profit 131.31lenders or foreclosure purchasers; and131.32    (10) a judgment creditor of the owner, to the extent that the judgment creditor's claim 131.33accrued prior to the personal service of the foreclosure notice required by section 
         580.03, 131.34but excluding a person who purchased the claim after such personal service. 131.35    (c) "Foreclosure reconveyance" means a transaction involving:132.1    (1) the transfer of title to real property by a foreclosed homeowner during a 132.2foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or 132.3by creation of a mortgage or other lien or encumbrance during the foreclosure process 132.4that allows the acquirer to obtain title to the property by redeeming the property as 132.5a junior lienholder; and132.6    (2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest 132.7back to the foreclosed homeowner by the acquirer or a person acting in participation with 132.8the acquirer that allows the foreclosed homeowner to possess the real property following 132.9the completion of the foreclosure proceeding, which interest includes, but is not limited to, 132.10an interest in a contract for deed, purchase agreement, option to purchase, or lease.132.11    (d) "Person" means any individual, partnership, corporation, limited liability 132.12company, association, or other group, however organized.132.13    (e) "Service" means and includes, but is not limited to, any of the following:132.14    (1) debt, budget, or financial counseling of any type;132.15    (2) receiving money for the purpose of distributing it to creditors in payment or 132.16partial payment of any obligation secured by a lien on a residence in foreclosure;132.17    (3) contacting creditors on behalf of an owner of a residence in foreclosure;132.18    (4) arranging or attempting to arrange for an extension of the period within which 132.19the owner of a residence in foreclosure may cure the owner's default and reinstate his or 132.20her obligation pursuant to section 
         580.30; 132.21    (5) arranging or attempting to arrange for any delay or postponement of the time of 132.22sale of the residence in foreclosure;132.23    (6) advising the filing of any document or assisting in any manner in the preparation 132.24of any document for filing with any bankruptcy court; or132.25    (7) giving any advice, explanation, or instruction to an owner of a residence in 132.26foreclosure, which in any manner relates to the cure of a default in or the reinstatement 132.27of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of 132.28that obligation, or the postponement or avoidance of a sale of a residence in foreclosure, 132.29pursuant to a power of sale contained in any mortgage.132.30    (f) "Residence in foreclosure" means residential real property consisting of one to 132.31four family dwelling units, one of which the owner occupies as his or her principal place 132.32of residence, and against which there is an outstanding notice of pendency of foreclosure, 132.33recorded pursuant to section 
         580.032, or against which a summons and complaint has 132.34been served under chapter 581. 132.35    (g) "Owner" means the record owner of the residential real property in foreclosure at 132.36the time the notice of pendency was recorded, or the summons and complaint served.133.1    (h) "Contract" means any agreement, or any term in any agreement, between 133.2a foreclosure consultant and an owner for the rendition of any service as defined in 133.3paragraph (e).133.4EFFECTIVE DATE.This section is effective January 1, 2008.133.5    Sec. 53. Minnesota Statutes 2006, section 332.54, subdivision 7, is amended to read:133.6    Subd. 7. Fees. The fee for a credit services organization's registration is $100133.7$1,000 for issuance or renewal for each location of business.133.8EFFECTIVE DATE; APPLICATION.This section is effective July 1, 2007, and 133.9applies to registrations issued or renewed on or after that date.133.10    Sec. 54. [332A.02] DEFINITIONS.133.11    Subdivision 1.Scope.Unless a different meaning is clearly indicated by the context, 133.12for the purposes of this chapter the terms defined in this section have the meanings given 133.13them.133.14    Subd. 2.Accreditation."Accreditation" means certification as an accredited 133.15credit counseling provider by the International Standards Organization or the Council on 133.16Accreditation.133.17    Subd. 3.Attorney general."Attorney general" means the attorney general of the 133.18state of Minnesota.133.19    Subd. 4.Commissioner."Commissioner" means commissioner of commerce.133.20    Subd. 5.Controlling or affiliated party."Controlling or affiliated party" means 133.21any person directly or indirectly controlling, controlled by, or under common control 133.22with another person.133.23    Subd. 6.Debt management services agreement."Debt management services 133.24agreement" means the written contract between the debt management services provider 133.25and the debtor.133.26    Subd. 7.Debt management services plan."Debt management services plan" 133.27means the debtor's individualized package of debt management services set forth in the 133.28debt management services agreement.133.29    Subd. 8.Debt management services provider."Debt management services 133.30provider" means any person offering or providing debt management services to a debtor 133.31domiciled in this state, regardless of whether or not a fee is charged for the services and 133.32regardless of whether the person maintains a physical presence in the state. This term does 134.1not include services performed by the following when engaged in the regular course of 134.2their respective businesses and professions:134.3    (1) attorneys at law, escrow agents, accountants, broker-dealers in securities;134.4    (2) state or national banks, trust companies, savings associations, title insurance 134.5companies, insurance companies, and all other lending institutions duly authorized to 134.6transact business in Minnesota, provided no fee is charged for the service;134.7    (3) persons who, as employees on a regular salary or wage of an employer not 134.8engaged in the business of debt management, perform credit services for their employer;134.9    (4) public officers acting in their official capacities and persons acting as a debt 134.10management services provider pursuant to court order;134.11    (5) any person while performing services incidental to the dissolution, winding up, 134.12or liquidation of a partnership, corporation, or other business enterprise;134.13    (6) the state, its political subdivisions, public agencies, and their employees;134.14    (7) credit unions and collection agencies, provided no fee is charged for the service;134.15    (8) "qualified organizations" designated as representative payees for purposes of the 134.16Social Security and Supplemental Security Income Representative Payee System and the 134.17federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508; and134.18    (9) accelerated mortgage payment providers. "Accelerated mortgage payment 134.19providers" are persons who, after satisfying the requirements of sections 332.30 to 134.20332.303, receive funds to make mortgage payments to a lender or lenders, on behalf 134.21of mortgagors, in order to exceed regularly scheduled minimum payment obligations 134.22under the terms of the indebtedness. The term does not include: (i) persons or entities 134.23described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and 134.24thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to 134.25make loans under section 47.20, subdivision 1. For purposes of this clause and sections 134.26332.30 to 332.303, "lender" means the original lender or that lender's assignee, whichever 134.27is the current mortgage holder.134.28    Subd. 9.Debt management services."Debt management services" means the 134.29provision of any one or more of the following:134.30    (1) managing the financial affairs of an individual by distributing income or money 134.31to the individual's creditors; 134.32    (2) receiving funds for the purpose of distributing the funds among creditors in 134.33payment or partial payment of obligations of a debtor; or134.34    (3) settling, adjusting, prorating, pooling, or liquidating the indebtedness of a debtor. 134.35Any person so engaged or holding out as so engaged is deemed to be engaged in the 135.1provision of debt management services regardless of whether or not a fee is charged for 135.2such services.135.3    Subd. 10.Debtor."Debtor" means the person for whom the debt prorating service 135.4is performed.135.5    Subd. 11.Person."Person" means any individual, firm, partnership, association, 135.6or corporation.135.7    Subd. 12.Registrant."Registrant" means any person registered by the 135.8commissioner pursuant to this chapter and, where used in conjunction with an act or 135.9omission required or prohibited by this chapter, shall mean any person performing debt 135.10management services.135.11EFFECTIVE DATE.This section is effective January 1, 2008.135.12    Sec. 55. [332A.03] REQUIREMENT OF REGISTRATION.135.13    On or after August 1, 2007, it is unlawful for any person, whether or not located in 135.14this state, to operate as a debt management services provider or provide debt management 135.15services, including but not limited to offering, advertising, or executing or causing to 135.16be executed any debt management services or debt management services agreement, 135.17except as authorized by law without first becoming registered as provided in this 135.18chapter. A person who possesses a valid license as a debt prorater that was issued by the 135.19commissioner before August 1, 2007, is deemed to be registered as a debt management 135.20services provider until the date the debt prorater license expires, at which time the licensee 135.21must obtain a renewal as a debt management services provider in compliance with this 135.22chapter. Debt proraters who were not required to be licensed as debt proraters before 135.23August 1, 2007, may continue to provide debt management services without complying 135.24with this chapter to those debtors who entered into a contract to participate in a debt 135.25management plan before August 1, 2007, except that the debt prorater must comply with 135.26section 332A.13, subdivision 2.135.27EFFECTIVE DATE.This section is effective January 1, 2008.135.28    Sec. 56. [332A.04] REGISTRATION.135.29    Subdivision 1.Form.Application for registration to operate as a debt management 135.30services provider in this state must be made in writing to the commissioner, under oath, in 135.31the form prescribed by the commissioner, and must contain:135.32    (1) the full name of each principal of the entity applying;136.1    (2) the address, which must not be a post office box, and the telephone number and, 136.2if applicable, e-mail address, of the applicant;136.3    (3) identification of the trust account required under section 332A.13;136.4    (4) consent to the jurisdiction of the courts of this state;136.5    (5) the name and address of the registered agent authorized to accept service of 136.6process on behalf of the applicant or appointment of the commissioner as the applicant's 136.7agent for purposes of accepting service of process;136.8    (6) disclosure of:136.9    (i) whether any controlling or affiliated party has ever been convicted of a crime 136.10or found civilly liable for an offense involving moral turpitude, including forgery, 136.11embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to 136.12defraud, or any other similar offense or violation, or any violation of a federal or state law 136.13or regulation in connection with activities relating to the rendition of debt management 136.14services or involving any consumer fraud, false advertising, deceptive trade practices, or 136.15similar consumer protection law;136.16    (ii) any judgments, private or public litigation, tax liens, written complaints, 136.17administrative actions, or investigations by any government agency against the applicant 136.18or any officer, director, manager, or shareholder owning more than five percent interest 136.19in the applicant, unresolved or otherwise, filed or otherwise commenced within the 136.20preceding ten years;136.21    (iii) whether the applicant or any person employed by the applicant has had a record 136.22of having defaulted in the payment of money collected for others, including the discharge 136.23of debts through bankruptcy proceedings; and136.24    (iv) whether the applicant's license or registration to provide debt management 136.25services in any other state has ever been revoked or suspended;136.26    (7) a copy of the applicant's standard debt management services agreement that the 136.27applicant intends to execute with debtors;136.28    (8) proof of accreditation of:136.29    (i) the debt management services provider; and136.30    (ii) all individuals employed by, under contract with, or otherwise agents of the 136.31provider who offer to provide or provide debt management services; and136.32    (9) any other information and material as the commissioner may require.136.33    Subd. 2.Term and scope of registration.The registration must remain in full 136.34force and effect for one calendar year or until it is surrendered by the licensee or revoked 136.35or suspended by the commissioner. The registration is limited solely to the business 136.36of providing debt management services.137.1    Subd. 3.Fees.The registration application must be accompanied by payment of 137.2$1,000 as a registration fee.137.3    Subd. 4.Bond.The registration application must be accompanied by payment of 137.4the premium for a surety bond in which the applicant shall be the obligor, in a sum to be 137.5determined by the commissioner but not less than $5,000, and in which an insurance 137.6company, which is duly authorized by the state of Minnesota to transact the business of 137.7fidelity and surety insurance, shall be a surety. However, the commissioner may accept 137.8a deposit in cash, or securities that may legally be purchased by savings banks or for 137.9trust funds of an aggregate market value equal to the bond requirement, in lieu of the 137.10surety bond. The cash or securities must be deposited with the commissioner of finance. 137.11The commissioner may also require a fidelity bond in an appropriate amount covering 137.12employees of any applicant. Each branch office or additional place of business of an 137.13applicant must be bonded as provided in this subdivision. In determining the bond amount 137.14necessary for the maintenance of any office, whether it is a surety bond, fidelity bond, or 137.15both, the commissioner shall consider the financial responsibility, experience, character, 137.16and general fitness of the debt management services provider and its operators and owners; 137.17the volume of business handled or proposed to be handled; the location of the office 137.18and the geographical area served or proposed to be served; and other information the 137.19commissioner may deem pertinent based upon past performance, previous examinations, 137.20annual reports, and manner of business conducted in other states.137.21    Subd. 5.Condition of bond. The bond must run to the state of Minnesota for the 137.22use of the state and of any person or persons who may have a cause of action against the 137.23obligor arising out of the obligor's activities as a debt management services provider to 137.24a debtor domiciled in this state. The bond must be conditioned that the obligor will not 137.25commit any fraudulent act and will faithfully conform to and abide by the provisions of 137.26this chapter and of all rules lawfully made by the commissioner under this chapter and 137.27pay to the state and to any such person or persons any and all money that may become 137.28due or owing to the state or to such person or persons from the obligor under and by 137.29virtue of this chapter.137.30    Subd. 6.Right of action on bond.If the registrant has failed to account to a debtor 137.31or distribute to the debtor's creditors the amounts required by this chapter and the debt 137.32management services agreement between the debtor and registrant, the debtor or the 137.33debtor's legal representative or receiver, the commissioner, or the attorney general, shall 137.34have, in addition to all other legal remedies, a right of action in the name of the debtor 137.35on the bond or the security given under this section, for loss suffered by the debtor, not 138.1exceeding the face amount of the bond or security, and without the necessity of joining 138.2the registrant in the suit or action.138.3    Subd. 7.Registrant list.The commissioner must maintain a list of registered debt 138.4management services providers. The list must be made available to the public in written 138.5form upon request and on the Department of Commerce Web site.138.6EFFECTIVE DATE.This section is effective January 1, 2008.138.7    Sec. 57. [332A.05] NONASSIGNMENT OF REGISTRATION.138.8    A registration must not be transferred or assigned without the consent of the 138.9commissioner.138.10EFFECTIVE DATE.This section is effective January 1, 2008.138.11    Sec. 58. [332A.06] RENEWAL OF REGISTRATION.138.12    Each year, each registrant under the provisions of this chapter must, not more than 138.1360 nor less than 30 days before its registration is to expire, apply to the commissioner for 138.14renewal of its registration on a form prescribed by the commissioner. The application must 138.15be signed by the registrant under penalty of perjury, contain current information on all 138.16matters required in the original application, and be accompanied by a payment of $250. 138.17The registrant must maintain a continuous surety bond that satisfies the requirements of 138.18section 332A.04, subdivision 4, provided that the commissioner may require a different 138.19amount that is at least equal to the largest amount that has accrued in the registrant's trust 138.20account during the previous year. The renewal is effective for one year.138.21EFFECTIVE DATE.This section is effective January 1, 2008.138.22    Sec. 59. [332A.07] OTHER DUTIES OF REGISTRANT.138.23    Subdivision 1.Requirement to update information.A registrant must update any 138.24information required by this chapter provided in its original or renewal application not 138.25later than 90 days after the date the events precipitating the update occurred.138.26    Subd. 2.Inspection of debtor of registration.Each registrant must maintain a 138.27copy of its registration in its files. The registrant must allow a debtor, upon request, to 138.28inspect the registration.138.29EFFECTIVE DATE.This section is effective January 1, 2008.138.30    Sec. 60. [332A.08] DENIAL OF REGISTRATION.139.1    The commissioner, with notice to the applicant by certified mail sent to the address 139.2listed on the application, may deny an application for a registration upon finding that 139.3the applicant:139.4    (1) has submitted an application required under section 332A.04 that contains 139.5incorrect, misleading, incomplete, or materially untrue information. An application is 139.6incomplete if it does not include all the information required in section 332A.04;139.7    (2) has failed to pay any fee or pay or maintain any bond required by this chapter, 139.8or failed to comply with any order, decision, or finding of the commissioner made under 139.9and within the authority of this chapter;139.10    (3) has violated any provision of this chapter or any rule or direction lawfully made 139.11by the commissioner under and within the authority of this chapter;139.12    (4) or any controlling or affiliated party has ever been convicted of a crime or found 139.13civilly liable for an offense involving moral turpitude, including forgery, embezzlement, 139.14obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any 139.15other similar offense or violation, or any violation of a federal or state law or regulation 139.16in connection with activities relating to the rendition of debt management services or 139.17any consumer fraud, false advertising, deceptive trade practices, or similar consumer 139.18protection law;139.19    (5) has had a registration or license previously revoked or suspended in this state or 139.20any other state or the applicant or licensee has been permanently or temporarily enjoined 139.21by any court of competent jurisdiction from engaging in or continuing any conduct or 139.22practice involving any aspect of the debt management services provider business; or 139.23any controlling or affiliated party has been an officer, director, manager, or shareholder 139.24owning more than a ten percent interest in a debt management services provider whose 139.25registration has previously been revoked or suspended in this state or any other state, or 139.26who has been permanently or temporarily enjoined by any court of competent jurisdiction 139.27from engaging in or continuing any conduct or practice involving any aspect of the debt 139.28management services provider business;139.29    (6) has made any false statement or representation to the commissioner;139.30    (7) is insolvent;139.31    (8) refuses to fully comply with an investigation or examination of the debt 139.32management services provider by the commissioner;139.33    (9) has improperly withheld, misappropriated, or converted any money or properties 139.34received in the course of doing business;139.35    (10) has failed to have a trust account with an actual cash balance equal to or greater 139.36than the sum of the escrow balances of each debtor's account;140.1    (11) has defaulted in making payments to creditors on behalf of debtors as required 140.2by agreements between the provider and debtor; or140.3    (12) has used fraudulent, coercive, or dishonest practices, or demonstrated 140.4incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere.140.5EFFECTIVE DATE.This section is effective January 1, 2008.140.6    Sec. 61. [332A.09] SUSPENDING, REVOKING, OR REFUSING TO RENEW 140.7REGISTRATION.140.8    Subdivision 1.Procedure.The commissioner may revoke, suspend, or refuse 140.9to renew any registration issued under this chapter, or may levy a civil penalty under 140.10section 45.027, or any combination of actions, if the debt management services provider 140.11or any controlling or affiliated person has committed any act or omission for which the 140.12commissioner could have refused to issue an initial registration or renew an existing 140.13registration. Revocation of or refusal to renew a registration must be upon notice and 140.14hearing as prescribed in the Administrative Procedure Act, sections 14.57 to 14.69. The 140.15notice must set a time for hearing before the commissioner not less than 20 nor more than 140.1630 days after service of the notice, provided the registrant may waive the 20-day minimum. 140.17The commissioner may, in the notice, suspend the registration for a period not to exceed 60 140.18days. Unless the notice states that the registration is suspended, pending the determination 140.19of the main issue, the registrant may continue to transact business until the final decision of 140.20the commissioner. If the registration is suspended, the commissioner shall hold a hearing 140.21and render a final determination within ten days of a request by the registrant. If the 140.22commissioner fails to do so, the suspension shall terminate and be of no force or effect.140.23    Subd. 2.Notification of interested persons.After the notice and hearing required 140.24in subdivision 1, upon issuing an order suspending or revoking a registration or refusing to 140.25renew a registration, the commissioner may notify all individuals who have contracts with 140.26the affected registrant and all creditors who have agreed to a debt management services 140.27plan that the registration has been revoked and that the order is subject to appeal.140.28    Subd. 3.Receiver for funds of sanctioned registrant.When an order is issued 140.29revoking or refusing to renew a registration, the commissioner may apply for, and the 140.30district court must appoint, a receiver to temporarily or permanently receive the assets of 140.31the registrant pending a final determination of the validity of the order.140.32EFFECTIVE DATE.This section is effective January 1, 2008.141.1    Sec. 62. [332A.10] WRITTEN DEBT MANAGEMENT SERVICES 141.2AGREEMENT.141.3    Subdivision 1.Written agreement required.A debt management services provider 141.4may not perform any debt management services or receive any money related to a debt 141.5management plan until the provider has obtained a debt management services agreement 141.6that contains all  terms of the agreement between the debt management services provider 141.7and the debtor. A debt management services agreement must be in writing, dated, and 141.8signed by the debt management services provider and the debtor. The registrant must 141.9furnish the debtor with a copy of the signed contract upon execution.141.10    Subd. 2.Actions prior to written agreement.No person may provide debt 141.11management services for a debtor unless the person first has:141.12    (1) provided the debtor individualized counseling and educational information 141.13that, at a minimum, addresses managing household finances, managing credit and debt, 141.14budgeting, and personal savings strategies;141.15    (2) prepared in writing and provided to the debtor, in a form that the debtor may 141.16keep, an individualized financial analysis and a proposed debt management plan listing the 141.17debtor's known debts with specific recommendations regarding actions the debtor should 141.18take to reduce or eliminate the amount of the debts, including written disclosure that 141.19debt management services are not suitable for all debtors and that there are other ways, 141.20including bankruptcy, to deal with indebtedness;141.21    (3) made a determination supported by an individualized financial analysis that the 141.22debtor can reasonably meet the requirements of the proposed debt management plan 141.23and that there is a net tangible benefit to the debtor of entering into the proposed debt 141.24management plan; and141.25    (4) prepared, in a form the debtor may keep, a written list identifying all known 141.26creditors of the debtor that the provider reasonably expects to participate in the plan 141.27and the creditors, including secured creditors, that the provider reasonably expects not 141.28to participate.141.29    Subd. 3.Required terms.(a) Each debt management services agreement must 141.30contain the following terms, which must be disclosed prominently and clearly in bold print 141.31on the front page of the agreement, segregated by bold lines from all other information on 141.32the page:141.33    (1) the fee amount to be paid by the debtor and whether the initial fee amount is 141.34refundable or nonrefundable;141.35    (2) the monthly fee amount or percentage to be paid by the debtor; and142.1    (3) the total amount of fees reasonably anticipated to be paid by the debtor over 142.2the term of the agreement.142.3    (b) Each debt management services agreement must also contain the following:142.4    (1) a disclosure that if the amount of debt owed is increased by interest, late fees, 142.5over the limit fees, and other amounts imposed by the creditors, the length of the debt 142.6management services agreement will be extended and remain in force and that the total 142.7dollar charges agreed upon may increase at the rate agreed upon in the original contract 142.8agreement;142.9    (2) a prominent statement describing the terms upon which the debtor may cancel 142.10the contract as set forth in section 332A.11;142.11    (3) a detailed description of all services to be performed by the debt management 142.12services provider for the debtor;142.13    (4) the debt management services provider's refund policy; and142.14    (5) the debt management services provider's principal business address and the name 142.15and address of its agent in this state authorized to receive service of process.142.16    Subd. 4.Prohibited terms.The following terms shall not be included in the debt 142.17management services agreement:142.18    (1) a hold harmless clause;142.19    (2) a confession of judgment, or a power of attorney to confess judgment against the 142.20debtor or appear as the debtor in any judicial proceeding;142.21    (3) a waiver of the right to a jury trial, if applicable, in any action brought by 142.22or against a debtor;142.23    (4) an assignment of or an order for payment of wages or other compensation for 142.24services;142.25    (5) a provision in which the debtor agrees not to assert any claim or defense arising 142.26out of the debt management services agreement;142.27    (6) a waiver of any provision of this chapter or a release of any obligation required 142.28to be performed on the part of the debt management services provider; or142.29    (7) a mandatory arbitration clause.142.30    Subd. 5.New debt management services agreements; modification of existing 142.31agreements.(a) Separate and additional debt management services agreements that 142.32comply with this chapter may be entered into by the debt management services provider 142.33and the debtor provided that no additional initial fee may be charged by the debt 142.34management services provider.142.35    (b) Any modification of an existing debt management services agreement, including 142.36any increase in the number or amount of debts included in the debt management service, 143.1must be in writing and signed by both parties. No fees, charges, or other consideration 143.2may be demanded from the debtor for the modification, other than an increase in the 143.3amount of the monthly maintenance fee established in the original debt management 143.4services agreement.143.5EFFECTIVE DATE.This section is effective January 1, 2008.143.6    Sec. 63. [332A.11] RIGHT TO CANCEL.143.7    Subdivision 1.Debtor's right to cancel.A debtor has the right to cancel the debt 143.8management services agreement without cause at any time upon ten days' written notice to 143.9the debt management services provider. In the event of cancellation, the debt management 143.10services provider must, within ten days of the cancellation, notify the debtor's creditors of 143.11the cancellation and provide a refund of all unexpended funds paid by or for the debtor to 143.12the debt management services provider.143.13    Subd. 2.Notice of debtor's right to cancel.A debt management services 143.14agreement must contain, on its face, in an easily readable typeface immediately adjacent 143.15to the space for signature by the debtor, the following notice: "Right To Cancel: You have 143.16the right to cancel this contract at any time on ten days' written notice." 143.17    Subd. 3.Automatic termination.Upon the payment of all listed debts and 143.18fees, the debt management services agreement must automatically terminate, and all 143.19unexpended funds paid by or for the debtor to the debt management services provider 143.20must be immediately returned to the debtor.143.21    Subd. 4.Debt management services provider's right to cancel.A debt 143.22management services provider may cancel a debt management services agreement 143.23with good cause upon 30 days' written notice to the debtor. Within ten days after the 143.24cancellation, the debt management services provider must: (1) notify the debtor's creditors 143.25of the cancellation; and (2) return to the debtor all unexpended funds paid by or for the 143.26debtor.143.27EFFECTIVE DATE.This section is effective January 1, 2008.143.28    Sec. 64. [332A.12] BOOKS, RECORDS, AND INFORMATION.143.29    Subdivision 1.Records retention.Every registrant must keep, and use in the 143.30registrant's business, such books, accounts, and records, including electronic records, as 143.31will enable the commissioner to determine whether the registrant is complying with this 143.32chapter and of the rules, orders, and directives adopted by the commissioner under this 143.33chapter. Every registrant must preserve such books, accounts, and records for at least six 144.1years after making the final entry on any transaction recorded therein. Examinations of 144.2the books, records, and method of operations conducted under the supervision of the 144.3commissioner shall be done at the cost of the registrant. The cost must be assessed as 144.4determined under section 46.131.144.5    Subd. 2.Statements to debtors.Each registrant must maintain and must make 144.6available records and accounts that will enable each debtor to ascertain the amounts 144.7paid to the creditors of the debtor. A statement showing amounts received from the 144.8debtor, disbursements to each creditor, amounts which any creditor has agreed to accept 144.9as payment in full for any debt owed the creditor by the debtor, charges deducted by 144.10the registrant, and such other information as the commissioner may prescribe, must be 144.11furnished by the registrant to the debtor at least monthly and, in addition, upon any 144.12cancellation or termination of the contract. In addition to the statements required by this 144.13subdivision, each debtor must have reasonable access, without cost, by electronic or other 144.14means, to information in the registrant's files applicable to the debtor. These statements, 144.15records, and accounts must otherwise remain confidential except for duly authorized state 144.16and government officials, the commissioner, the attorney general, the debtor, and the 144.17debtor's representative and designees. Each registrant must prepare and retain in the file of 144.18each debtor a written analysis of the debtor's income and expenses to substantiate that the 144.19plan of payment is feasible and practicable.144.20EFFECTIVE DATE.This section is effective January 1, 2008.144.21    Sec. 65. [332A.13] FEES, PAYMENTS, AND CONSENT OF CREDITORS.144.22    Subdivision 1.Origination fee; credit background report cost.The registrant 144.23may charge a nonrefundable origination fee of not more than $50, which may be retained 144.24by the registrant from the initial amount paid by the debtor to the registrant. 144.25    Subd. 2.Monthly maintenance fee.The registrant may charge a periodic fee for 144.26account maintenance or other purposes, but only if the fee is reasonable for the services 144.27provided and does exceed the lesser of 15 percent of the monthly payment amount or $75.144.28    Subd. 3.Additional fees unauthorized.A registrant may not impose any fee or 144.29other charge or receive any funds or other payment other than the initial fee or monthly 144.30maintenance fee authorized by this section.144.31    Subd. 4.Amount of periodic payments retained.The registrant may retain as 144.32payment for the fees authorized by this section no more than 15 percent of any periodic 144.33payment made to the registrant by the debtor. The remaining 85 percent must be disbursed 144.34to listed creditors under and in accordance with the debt management services agreement. 144.35No fees or charges may be received or retained by the registrant for any handling of 145.1recurring payments. Recurring payments include current rent, mortgage, utility, telephone, 145.2maintenance as defined in section 518.27, child support, insurance premiums, and such 145.3other payments as the commissioner may by rule prescribe.145.4    Subd. 5.Advance payments.No fees or charges may be received or retained for 145.5any payments by the debtor made more than the following number of days in advance 145.6of the date specified in the debt management services agreement on which they are due: 145.7(1) 42 days in the case of contracts requiring monthly payments; (2) 15 days in the case 145.8of agreements requiring biweekly payments; or (3) seven days in the case of agreements 145.9requiring weekly payments. For those agreements which do not require payments in 145.10specified amounts, a payment is deemed an advance payment to the extent it exceeds 145.11twice the average regular payment previously made by the debtor under that contract. This 145.12subdivision does not apply when the debtor intends to use the advance payments to satisfy 145.13future payment of obligations due within 30 days under the contract. This subdivision 145.14supersedes any inconsistent provision of this chapter.145.15    Subd. 6.Consent of creditors.A registrant must actively seek to obtain the consent 145.16of all creditors to the debt management services plan set forth in the debt management 145.17services agreement. Consent by a creditor may be express and in writing, or may be 145.18evidenced by acceptance of a payment made under the debt management services plan 145.19set forth in the contract. The registrant must notify the debtor within ten days after any 145.20failure to obtain the required consent and of the debtor's right to cancel without penalty. 145.21The notice must be in a form as the commissioner shall prescribe. Nothing contained in 145.22this section is deemed to require the return of any origination fee and any fees earned by 145.23the registrant prior to cancellation or default.145.24    Subd. 7.Withdrawal of creditor.Whenever a creditor withdraws from a debt 145.25management services plan, or refuses to participate in a debt management services plan, 145.26the registrant must promptly notify the debtor of the withdrawal or refusal. In no case 145.27may this notice be provided more than 15 days after the debt management services plan 145.28learns of the creditor's decision to withdraw from or refuse to participate in a plan. This 145.29notice must include the identity of the creditor withdrawing from the plan, the amount of 145.30the monthly payment to that creditor, and the right of the debtor to cancel the agreement 145.31under section 332A.11.145.32    Subd. 8.Payments held in trust.The registrant must maintain a separate trust 145.33account and deposit in the account all payments received from the moment that they are 145.34received, except that the registrant may commingle the payment with the registrant's 145.35own property or funds, but only to the extent necessary to ensure the maintenance of a 145.36minimum balance if the financial institution at which the trust account is held requires 146.1a minimum balance to avoid the assessment of fees or penalties for failure to maintain 146.2a minimum balance. All disbursements, whether to the debtor or to the creditors of the 146.3debtor, or to the registrant, must be made from such account.146.4    Subd. 9.Timely payment of creditors.The registrant must disburse any funds 146.5paid by or on behalf of a debtor to creditors of the consumer within 42 days after receipt 146.6of the funds, or earlier if necessary to comply with the due date in the contract between 146.7the debtor and the creditor, unless the reasonable payment of one or more of the debtor's 146.8obligations requires that the funds be held for a longer period so as to accumulate a sum 146.9certain, or where the debtor's payment is returned for insufficient funds or other reason 146.10that makes the withholding of such payments in the net interest of the debtor.146.11EFFECTIVE DATE.This section is effective January 1, 2008.146.12    Sec. 66. [332A.14] PROHIBITIONS.146.13    A registrant shall not:146.14    (1) purchase from a creditor any obligation of a debtor;146.15    (2) use, threaten to use, seek to have used, or seek to have threatened the use of any 146.16legal process, including but not limited to garnishment and repossession of personal 146.17property, against any debtor while the debt management services agreement between the 146.18registrant and the debtor remains executory;146.19    (3) advise a debtor to stop paying a creditor until a debt management services plan is 146.20in place;146.21    (4) require as a condition of performing debt management services the purchase of 146.22any services, stock, insurance, commodity, or other property or any interest therein either 146.23by the debtor or the registrant;146.24    (5) compromise any debts unless the prior written approval of the debtor has been 146.25obtained to such compromise and unless such compromise inures solely to the benefit 146.26of the debtor;146.27    (6) receive from any debtor as security or in payment of any fee a promissory note 146.28or other promise to pay or any mortgage or other security, whether as to real or personal 146.29property;146.30    (7) lend money or provide credit to any debtor if any interest or fee is charged, 146.31or directly or indirectly collect any fee for referring, advising, procuring, arranging, or 146.32assisting a consumer in obtaining any extension of credit or other debtor service from a 146.33lender or services provider;146.34    (8) structure a debt management services agreement that would result in negative 146.35amortization of any debt in the plan;147.1    (9) engage in any unfair, deceptive, or unconscionable act or practice in connection 147.2with any service provided to any debtor;147.3    (10) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or other 147.4compensation to any person for referring any prospective customer to the registrant or for 147.5enrolling a debtor in a debt management services plan, or provide any other incentives 147.6for employees or agents of the debt management services provider to induce debtors to 147.7enter into a debt management plan;147.8    (11) receive any cash, fee, gift, bonus, premium, reward, or other compensation 147.9from any person other than the debtor or a person on the debtor's behalf in connection 147.10with activities as a registrant, provided that this paragraph does not apply to a registrant 147.11which is a bona fide nonprofit corporation duly organized under chapter 317A or under 147.12the similar laws of another state;147.13    (12) enter into a contract with a debtor unless a thorough written budget analysis 147.14indicates that the debtor can reasonably meet the requirements of the financial adjustment 147.15plan and will be benefited by the plan;147.16    (13) in any way charge or purport to charge or provide any debtor credit insurance in 147.17conjunction with any contract or agreement involved in the debt management services 147.18plan;147.19    (14) operate or employ a person who is an employee or owner of a collection agency 147.20or process-serving business; or147.21    (15) require or attempt to require payment of a sum that the registrant states, 147.22discloses, or advertises to be a voluntary contribution from the debtor.147.23EFFECTIVE DATE.This section is effective January 1, 2008.147.24    Sec. 67. [332A.16] ADVERTISEMENT OF DEBT MANAGEMENT SERVICES 147.25PLANS.147.26    No debt management services provider may make false, deceptive, or misleading 147.27statements or omissions about the rates, terms, or conditions of an actual or proposed 147.28debt management services plan or its debt management services, or create the likelihood 147.29of consumer confusion or misunderstanding regarding its services, including but not 147.30limited to the following:147.31    (1) represent that the debt management services provider is a nonprofit, not-for-profit, 147.32or has similar status or characteristics if some or all of the debt management services will 147.33be provided by a for-profit company that is a controlling or affiliated party to the debt 147.34management services provider; or148.1    (2) make any communication that gives the impression that the debt management 148.2services provider is acting on behalf of a government agency.148.3EFFECTIVE DATE.This section is effective January 1, 2008.148.4    Sec. 68. [332A.17] DEBT MANAGEMENT SERVICES AGREEMENT 148.5RESCISSION.148.6    Any debtor has the right to rescind any debt management services agreement with 148.7a debt management services provider that commits a material violation of this chapter. 148.8On rescission, all fees paid to the debt management services provider or any other person 148.9other than creditors of the debtor must be returned to the debtor entering into the debt 148.10management services agreement within ten days of rescission of the debt management 148.11services agreement.148.12EFFECTIVE DATE.This section is effective January 1, 2008.148.13    Sec. 69. [332A.18] ENFORCEMENT; REMEDIES.148.14    Subdivision 1.Violation a deceptive practice.A violation of any of the provisions 148.15of this chapter is considered an unfair or deceptive trade practice under section 8.31, 148.16subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in 148.17the public interest.148.18    Subd. 2.Private right of action.(a) A debt management services provider who 148.19fails to comply with any of the provisions of this chapter is liable under this section in 148.20an individual action for the sum of: (i) actual, incidental, and consequential damages 148.21sustained by the debtor as a result of the failure; and (ii) statutory damages of up to $1,000.148.22    (b) A debt management services provider who fails to comply with any of the 148.23provisions of this chapter is liable under this section in a class action for the sum of: (i) the 148.24amount that each named plaintiff could recover under paragraph (a), clause (i); and (ii) 148.25such amount as the court may allow for all other class members.148.26    (c) In determining the amount of statutory damages, the court shall consider, among 148.27other relevant factors:148.28    (1) the frequency, nature, and persistence of noncompliance;148.29    (2) the extent to which the noncompliance was intentional; and148.30    (3) in the case of a class action, the number of debtors adversely affected.148.31    (d) A plaintiff or class successful in a legal or equitable action under this section is 148.32entitled to the costs of the action, plus reasonable attorney fees.149.1    Subd. 3.Injunctive relief.A debtor may sue a debt management services provider 149.2for temporary or permanent injunctive or other appropriate equitable relief to prevent 149.3violations of any provision of this chapter. A court must grant injunctive relief on a 149.4showing that the debt management services provider has violated any provision of this 149.5chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to 149.6prevail on allegations that the debt management services provider violated  any provision 149.7of this chapter.149.8    Subd. 4.Remedies cumulative.The remedies provided in this section are 149.9cumulative and do not restrict any remedy that is otherwise available. The provisions 149.10of this chapter are not exclusive and are in addition to any other requirements, rights, 149.11remedies, and penalties provided by law.149.12    Subd. 5.Public enforcement.The attorney general shall enforce this chapter 149.13under section 8.31.149.14EFFECTIVE DATE.This section is effective January 1, 2008.149.15    Sec. 70. [332A.19] INVESTIGATION.149.16    The commissioner may examine the books and records of every registrant and of 149.17any person engaged in the business of providing debt management services as defined in 149.18section 332A.02 at any reasonable time. The commissioner once during any calendar year 149.19may require the submission of an audit prepared by a certified public accountant of the 149.20books and records of each registrant. If the registrant has, within one year previous to the 149.21commissioner's demand, had an audit prepared for some other purpose, this audit may be 149.22submitted to satisfy the requirement of this section. The commissioner may investigate 149.23any complaint concerning violations of this chapter and may require the attendance and 149.24sworn testimony of witnesses and the production of documents.149.25EFFECTIVE DATE.This section is effective January 1, 2008.149.26    Sec. 71. LICENSE RENEWAL EXTENSION.149.27    The July 31, 2007, renewal date for mortgage originators is extended to October 30, 149.282007, because of the changes to the licensing requirements made by this article.149.29    Sec. 72.  REPEALER.149.30(a) Minnesota Statutes 2006, sections 46.043; 47.62, subdivision 5; and 58.08, 149.31subdivision 1, are repealed.150.1(b) Minnesota Statutes 2006, sections 332.12; 332.13; 332.14; 332.15; 332.16; 150.2332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 332.23; 332.24; 332.25; 332.26; 332.27; 150.3332.28; and 332.29, are repealed effective January 1, 2008.150.4ARTICLE 6150.5ENERGY150.6    Section 1. [1.1499] STATE ENERGY CITY.150.7    The city of Elk River is designated as the state energy city.150.8    Sec. 2. [16C.141] EMPLOYEE SUGGESTIONS; ENERGY SAVINGS 150.9INCENTIVE PROGRAM.150.10    Subdivision 1.Creation of program.The commissioner of administration must 150.11implement a program using best practices and develop policies under which state 150.12employees may receive cash awards for making suggestions that result in documented cost 150.13savings to state agencies from reduced energy usage in state-owned buildings. The cash 150.14awards must be an amount equal to half the amount of the energy costs saved by agencies 150.15in the year immediately following the implementation of the employee suggestion, up to 150.16$1,000 per suggestion. The program must include methods for documenting submission 150.17of suggestions and for documenting savings achieved as a result of these suggestions.150.18    Subd. 2.Funding.To the extent necessary to fund the program under this section, 150.19the commissioner of administration, with approval of the commissioner of finance, may 150.20transfer a portion of the documented cost savings resulting from a suggestion under this 150.21section from the general services revolving fund to an energy savings reward account. 150.22Money in the energy savings reward account is appropriated to the commissioner for 150.23purposes of making cash rewards and paying the commissioner's incentive program 150.24developments costs and administrative expenses under this section.150.25    Subd. 3.Report to legislature.The commissioner of administration shall report to 150.26the chairs of the senate and house of representatives committees with jurisdiction over 150.27energy policy by January 1, 2008, on the development of the incentive program, and 150.28by January 15 each year thereafter on the implementation of this section, including the 150.29ideas submitted and energy savings realized.150.30    Subd. 4.Minnesota State Colleges and Universities.This section does not apply to 150.31the Minnesota State Colleges and Universities, except to the extent the Board of Trustees 150.32of the Minnesota State Colleges and Universities provides that the section does apply.150.33    Subd. 5.Repeal.This section is repealed July 1, 2009.151.1    Sec. 3. Minnesota Statutes 2006, section 116C.779, subdivision 2, is amended to read:151.2    Subd. 2. Renewable energy production incentive. (a) Until January 1, 2018, up to 151.3$10,900,000 $11,400,000 annually must be allocated from available funds in the account 151.4to fund renewable energy production incentives and on-farm biogas recovery facility 151.5grants. $9,400,000 of this annual amount is for incentives for up to 200 megawatts of 151.6electricity generated by wind energy conversion systems that are eligible for the incentives 151.7under section 
         216C.41. The balance of this amount, Up to $1,500,000 $1,000,000151.8annually, may be used for production incentives for on-farm biogas recovery facilities 151.9and landfill gas recovery facilities that are eligible for the incentive under section 
         216C.41151.10or for production incentives for other renewables, to be provided in the same manner 151.11as under section 
         216C.41. Of this amount, no more than $500,000 may be used for 151.12production incentives for landfill gas recovery facilities. Up to $1,000,000 may be used 151.13for grants for qualified on-farm biogas recovery facilities as provided in section 216C.42. 151.14Any portion of the $10,900,000 $11,400,000 not expended in any calendar year for the 151.15incentive is available for other spending purposes under this section. This subdivision 151.16does not create an obligation to contribute funds to the account.151.17    (b) The Department of Commerce shall determine eligibility of projects under 151.18section 
         216C.41 for the purposes of this subdivision. At least quarterly, the Department of 151.19Commerce shall notify the public utility of the name and address of each eligible project 151.20owner and the amount due to each project under section 
         216C.41. The public utility shall 151.21make payments within 15 working days after receipt of notification of payments due.151.22    Sec. 4. Minnesota Statutes 2006, section 216B.241, subdivision 6, is amended to read:151.23    Subd. 6. Renewable energy research. (a) A public utility that owns a nuclear 151.24generation facility in the state shall spend five percent of the total amount that utility 151.25is required to spend under this section to support basic and applied research and 151.26demonstration activities at the University of Minnesota Initiative for Renewable Energy 151.27and the Environment for the development of renewable energy sources and technologies. 151.28The utility shall transfer the required amount to the University of Minnesota on or before 151.29July 1 of each year and that annual amount shall be deducted from the amount of money the 151.30utility is required to spend under this section. The University of Minnesota shall transfer 151.31at least ten percent of these funds to at least one rural campus or experiment station.151.32    (b) Research Activities funded under this subdivision shall may include, but are 151.33not limited to:151.34    (1) development of environmentally sound production, distribution, and use of 151.35energy, chemicals, and materials from renewable sources;152.1    (2) processing and utilization of agricultural and forestry plant products and other 152.2bio-based, renewable sources as a substitute for fossil-fuel-based energy, chemicals, and 152.3materials using a variety of means including biocatalysis, biorefining, and fermentation;152.4    (3) conversion of state wind resources to hydrogen for energy storage and 152.5transportation to areas of energy demand;152.6    (4) improvements in scalable hydrogen fuel cell technologies; and152.7    (5) production of hydrogen from bio-based, renewable sources; and sequestration 152.8of carbon.152.9    (1) environmentally sound production of energy from a renewable energy source 152.10including biomass; 152.11    (2) environmentally sound production of hydrogen from biomass and any other 152.12renewable energy source for energy storage and energy utilization; 152.13    (3) development of energy conservation and efficient energy utilization technologies; 152.14    (4) energy storage technologies; and 152.15    (5) analysis of policy options to facilitate adoption of technologies that use or 152.16produce  a  renewable energy source. 152.17    (c) Notwithstanding other law to the contrary, the utility may, but is not required to, 152.18spend more than two percent of its gross operating revenues from service provided in this 152.19state under this section or section 
         216B.2411. 152.20    (d) For the purposes of this subdivision:152.21    (1) "renewable energy source: means hydro, wind, solar, biomass and geothermal 152.22energy, and microorganisms used as an energy source; and152.23    (2) "biomass" means plant and animal material, agricultural and forest residues, 152.24mixed municipal solid waste, and sludge from wastewater treatment.152.25    (e) This subdivision expires June 30, 2008 2010.152.26    Sec. 5. Minnesota Statutes 2006, section 216B.812, subdivision 1, is amended to read:152.27    Subdivision 1. Early purchase and deployment of renewable hydrogen, fuel 152.28cells, and related technologies by the state. (a) The Department of Commerce, in 152.29conjunction coordination with the Department of Administration and the Pollution Control 152.30Agency, shall identify opportunities for demonstrating the use ofdeploying renewable 152.31hydrogen, fuel cells, and related technologies within state-owned facilities, vehicle fleets, 152.32and operations in ways that demonstrate their commercial performance and economics.152.33    (b) The Department of Commerce shall recommend to the Department of 152.34Administration, when feasible, the purchase and demonstrationdeployment of hydrogen, 152.35fuel cells, and related technologies, when feasible,  in ways that strategically contribute 153.1to realizing Minnesota's hydrogen economy goal as set forth in section 
         216B.8109, and 153.2which contribute to the following nonexclusive list of objectives:153.3    (1) provide needed performance data to the marketplace;153.4    (2) identify code and regulatory issues to be resolved;153.5    (3) foster economic development and job creation in the state;153.6    (4) raise public awareness of renewable hydrogen, fuel cells, and related 153.7technologies; or153.8    (5) reduce emissions of carbon dioxide and other pollutants.153.9    (c) The Department of Commerce and the Pollution Control Agency shall also 153.10recommend to the Department of Administration changes to the state's procurement 153.11guidelines and contracts in order to facilitate the purchase and deployment of cost-effective 153.12renewable hydrogen, fuel cells, and related technologies by all levels of government.153.13    Sec. 6. Minnesota Statutes 2006, section 216B.812, subdivision 2, is amended to read:153.14    Subd. 2. Pilot projects. (a) In consultation with appropriate representatives from 153.15state agencies, local governments, universities, businesses, and other interested parties, 153.16the Department of Commerce shall report back to the legislature by November 1, 2005, 153.17and every two years thereafter, with a slate of proposed pilot projects that contribute to 153.18realizing Minnesota's hydrogen economy goal as set forth in section 
         216B.8109. The 153.19Department of Commerce must consider the following nonexclusive list of priorities in 153.20developing the proposed slate of pilot projects:153.21    (1) demonstratedeploy "bridge" technologies such as hybrid-electric, off-road, and 153.22fleet vehicles running on hydrogen or fuels blended with hydrogen;153.23    (2) developlead to cost-competitive, on-site renewable hydrogen production 153.24technologies;153.25    (3) demonstrate nonvehicle applications for hydrogen;153.26    (4) improve the cost and efficiency of hydrogen from renewable energy sources; and153.27    (5) improve the cost and efficiency of hydrogen production using direct solar energy 153.28without electricity generation as an intermediate step.153.29    (b) For all demonstrations deployment projects that do not involve a demonstration 153.30component, individual system components of the technology mustshould, if feasible, meet 153.31commercial performance standards and systems modeling must be completed to predict 153.32commercial performance, risk, and synergies. In addition, the proposed pilots should meet 153.33as many of the following criteria as possible:153.34    (1) advance energy security;153.35    (2) capitalize on the state's native resources;154.1    (3) result in economically competitive infrastructure being put in place;154.2    (4) be located where it will link well with existing and related projects and be 154.3accessible to the public, now or in the future;154.4    (5) demonstrate multiple, integrated aspects of renewable hydrogen infrastructure;154.5    (6) include an explicit public education and awareness component;154.6    (7) be scalable to respond to changing circumstances and market demands;154.7    (8) draw on firms and expertise within the state where possible;154.8    (9) include an assessment of its economic, environmental, and social impact; and154.9    (10) serve other needs beyond hydrogen development.154.10    Sec. 7. [216B.813] MINNESOTA RENEWABLE HYDROGEN INITIATIVE.154.11    Subdivision 1.Road map.The Department of Commerce shall coordinate and 154.12administer directly or by contract the Minnesota renewable hydrogen initiative. If the 154.13department decides to contract for its duties under this section, it must contract with a 154.14nonpartisan, nonprofit organization within the state to develop the road map. The initiative 154.15may be run as a public-private partnership representing business, academic, governmental, 154.16and nongovernmental organizations. The initiative must oversee the development and 154.17implementation of a renewable hydrogen road map, including appropriate technology 154.18deployments, that achieve the hydrogen goal of section 216B.013. The road map should 154.19be compatible with the United States Department of Energy's National Hydrogen Energy 154.20Roadmap and be based on an assessment of marketplace economics and the state's 154.21opportunities in hydrogen, fuel cells, and related technologies, so as to capitalize on 154.22strengths. The road map should establish a vision, goals, general timeline, strategies for 154.23working with industry, and measurable milestones for achieving the state's renewable 154.24hydrogen goal. The road map should describe how renewable hydrogen and fuel cells fit 154.25in Minnesota's overall energy system, and should help foster a consistent, predictable, and 154.26prudent investment environment. The department must report to the legislature on the 154.27progress in implementing the road map by November 1 of each odd-numbered year.154.28    Subd. 2.Grants.(a) The commissioner of commerce shall operate a competitive 154.29grant program for projects to assist the state in attaining its renewable hydrogen energy 154.30goals. The commissioner of commerce shall assemble an advisory committee made up of 154.31industry, university, government, and nongovernment organizations to:154.32    (1) help identify the most promising technology deployment projects for public 154.33investment;154.34    (2) advise on the technical specifications for those projects; and154.35    (3) make recommendations on project grants.155.1    (b) The commissioner shall give preference to project concepts included in the 155.2department's most recent biennial report: Strategic Demonstration Projects to Accelerate 155.3the Commercialization of Renewable Hydrogen and Related Technologies in Minnesota. 155.4Projects eligible for funding must combine one or more of the hydrogen production 155.5options listed in the department's report with an end use that has significant commercial 155.6potential, preferably high visibility, and relies on fuel cells or related technologies. Each 155.7funded technology deployment must include an explicit education and awareness-raising 155.8component, be compatible with the renewable hydrogen deployment criteria defined in 155.9section 216B.812, and receive 50 percent of its total cost from nonstate sources. The 50 155.10percent requirement does not apply for recipients that are public institutions.155.11    Sec. 8. Minnesota Statutes 2006, section 216C.051, subdivision 2, is amended to read:155.12    Subd. 2. Establishment. (a) There is established a Legislative Electric Energy Task 155.13Force to study future electric energy sources and costs and to make recommendations 155.14for legislation for an environmentally and economically sustainable and advantageous 155.15electric energy supply.155.16    (b) The task force consists of:155.17    (1) ten members of the house of representatives including the chairs of the 155.18Environment and Natural Resources Committee and Regulated Industries Subcommittee155.19the Energy Finance and Policy Division and eight members to be appointed by the speaker 155.20of the house, four of whom must be from the minority caucus; and155.21    (2) ten members of the senate including the chairs of the Environment, Energy and 155.22Natural Resources Budget Division and Jobs, Energy, and Community Development155.23Utilities, Technology and Communications committees and eight members to be appointed 155.24by the Subcommittee on Committees, four of whom must be from the minority caucus.155.25    (c) The task force may employ staff, contract for consulting services, and may 155.26reimburse the expenses of persons requested to assist it in its duties other than state 155.27employees or employees of electric utilities. The director of the Legislative Coordinating 155.28Commission shall assist the task force in administrative matters. The task force shall 155.29elect cochairs, one member of the house and one member of the senate from among the 155.30committee and subcommittee chairs named to the committee. The task force members 155.31from the house shall elect the house cochair, and the task force members from the senate 155.32shall elect the senate cochair.155.33    Sec. 9. Minnesota Statutes 2006, section 216C.051, subdivision 9, is amended to read:155.34    Subd. 9. Expiration. This section is repealed June 30, 2007 2008.156.1EFFECTIVE DATE.This section is effective the day following final enactment.156.2    Sec. 10. [216C.385] CLEAN ENERGY RESOURCE TEAMS.156.3    Subdivision 1.Findings.The legislature finds that community-based energy 156.4programs are an effective means of implementing improved energy practices including 156.5conservation, greater efficiency in energy use, and the production and use of renewable 156.6resources such as wind, solar, biomass, and biofuels. Further, community-based energy 156.7programs are found to be a public purpose for which public money may be spent.156.8    Subd. 2.Mission, organization, and membership.The Clean Energy Resource 156.9Teams (CERT's) project is an innovative state, university, and nonprofit partnership that 156.10serves as a catalyst for community energy planning and projects. The mission of CERT's 156.11is to give citizens a voice in the energy planning process by connecting them with the 156.12necessary technical resources to identify and implement community-scale renewable 156.13energy and energy efficiency projects. In 2003, the Department of Commerce designated 156.14the CERT's project as a statewide collaborative venture and recognized six regional teams 156.15based on their geography: Central, Northeast, Northwest, Southeast, Southwest, and 156.16West-Central. Membership of CERT's may include but is not limited to representatives 156.17of utilities; federal, state, and local governments; small business; labor; senior citizens; 156.18academia; and other interested parties. The Department of Commerce may certify 156.19additional Clean Energy Resource Teams by regional geography, including teams in 156.20the Twin Cities metropolitan area.156.21    Subd. 3.Powers and duties.In order to develop and implement community-based 156.22energy programs, a Clean Energy Resource Team may:156.23    (1) analyze social and economic impacts caused by energy expenditures;156.24    (2) analyze regional renewable and energy efficiency resources and opportunities;156.25    (3) link community members and community energy projects to the knowledge 156.26and capabilities of the University of Minnesota, the State Energy Office, nonprofit 156.27organizations, and regional community members, among others;156.28    (4) plan, set priorities for, provide technical assistance to, and catalyze local energy 156.29efficiency and renewable energy projects that help to meet state energy policy goals and 156.30maximize local economic development opportunities;156.31    (5) provide a broad-based resource and communications network that links local, 156.32county, and regional energy efficiency and renewable energy project efforts around the 156.33state (both interregional and intraregional);156.34    (6) seek, accept, and disburse grants and other aids from public or private sources 156.35for purposes authorized in this subdivision;157.1    (7) provides a convening and networking function within CERT's regions to facilitate 157.2education, knowledge formation, and project replication; and157.3    (8) exercise other powers and duties imposed on it by statute, charter, or ordinance.157.4    Subd. 4.Department assistance.The commissioner, via the Clean Energy 157.5Resource Teams, may provide professional, technical, organizational, and financial 157.6assistance to regions and communities to develop and implement community energy 157.7programs and projects, within available resources.157.8    Sec. 11. [216C.39] RURAL WIND ENERGY DEVELOPMENT REVOLVING 157.9LOAN FUND.157.10    Subdivision 1.Establishment.A rural wind energy development revolving loan 157.11fund is established as an account in the special revenue fund in the state treasury. The 157.12commissioner of finance shall credit to the account the amounts authorized under this 157.13section and appropriations and transfers to the account. Earnings, such as interest, 157.14dividends, and any other earnings arising from fund assets, must be credited to the account.157.15    Subd. 2.Purpose.The rural wind energy development revolving loan fund 157.16is created to provide financial assistance, through partnership with local owners and 157.17communities, in developing community wind energy projects that meet the specifications 157.18of section 216B.1612, subdivision 2, paragraph (f).157.19    Subd. 3.Expenditures.Money in the fund is appropriated to the commissioner 157.20of commerce, and may be used to make loans to qualifying owners of wind energy 157.21projects, as defined in section 216B.1612, subdivision 2, paragraph (f), to assist in funding 157.22wind studies and transmission interconnection studies. The loans must be structured for 157.23repayment within 30 days after the project begins commercial operations or two years 157.24from the date the loan is issued, whichever is sooner.157.25    Subd. 4.Limitations.A loan may not be approved for an amount exceeding 157.26$100,000. This limit applies to all money loaned to a single project or single entity, 157.27whether paid to one or more qualifying owners and whether paid in one or more fiscal 157.28years.157.29    Subd. 5.Administration; eligible projects.(a) Applications for a loan under 157.30this section must be made in a manner and on forms prescribed by the commissioner. 157.31Loans to eligible projects must be made in the order in which complete applications are 157.32received by the commissioner. Loan funds must be disbursed to an applicant within ten 157.33days of submission of a payment request by the applicant that demonstrates a payment 157.34due to the Midwest Independent System Operator. Interest payable on the loan amount 157.35may not exceed 1.5 percent per annum.158.1    (b) A project is eligible for a loan under this program if:158.2    (1) the project has completed an adequate interconnection feasibility study that 158.3indicates the project may be interconnected with system upgrades of less than ten percent 158.4of the estimated project costs;158.5    (2) the project has a signed power purchase agreement with an electric utility or 158.6provides evidence that the project is under serious consideration for such an agreement by 158.7an electric utility;158.8    (3) the ownership and structure of the project allows it to qualify as a 158.9community-based energy development (C-BED) project under section 216B.1612, and the 158.10developer commits to obtaining and maintaining C-BED status; and158.11    (4) the commissioner has determined that sufficient funds are available to make a 158.12loan to the project.158.13    Sec. 12. Minnesota Statutes 2006, section 216C.41, subdivision 1, is amended to read:158.14    Subdivision 1. Definitions. (a) Unless otherwise provided, the definitions in this 158.15subdivision apply to this section.158.16    (b) "Qualified hydroelectric facility" means a hydroelectric generating facility in 158.17this state that:158.18    (1) is located at the site of a dam, if the dam was in existence as of March 31, 158.191994; and158.20    (2) begins generating electricity after July 1, 1994, or generates electricity after 158.21substantial refurbishing of a facility that begins after July 1, 2001.158.22    (c) "Qualified wind energy conversion facility" means a wind energy conversion 158.23system in this state that:158.24    (1) produces two megawatts or less of electricity as measured by nameplate rating 158.25and begins generating electricity after December 31, 1996, and before July 1, 1999;158.26    (2) begins generating electricity after June 30, 1999, produces two megawatts or 158.27less of electricity as measured by nameplate rating, and is:158.28    (i) owned by a resident of Minnesota or an entity that is organized under the laws 158.29of this state, is not prohibited from owning agricultural land under section 
         500.24, and 158.30owns the land where the facility is sited;158.31    (ii) owned by a Minnesota small business as defined in section 
         645.445;158.32    (iii) owned by a Minnesota nonprofit organization;158.33    (iv) owned by a tribal council if the facility is located within the boundaries of 158.34the reservation;159.1    (v) owned by a Minnesota municipal utility or a Minnesota cooperative electric 159.2association; or159.3    (vi) owned by a Minnesota political subdivision or local government, including, 159.4but not limited to, a county, statutory or home rule charter city, town, school district, or 159.5any other local or regional governmental organization such as a board, commission, or 159.6association; or159.7    (3) begins generating electricity after June 30, 1999, produces seven megawatts or 159.8less of electricity as measured by nameplate rating, and:159.9    (i) is owned by a cooperative organized under chapter 308A other than a Minnesota 159.10cooperative electric association; and159.11    (ii) all shares and membership in the cooperative are held by an entity that is not 159.12prohibited from owning agricultural land under section 
         500.24.159.13    (d) "Qualified on-farm biogas recovery facility" means an anaerobic digester system 159.14that:159.15    (1) is located at the site of an agricultural operation; and159.16    (2) is owned by an entity that is not prohibited from owning agricultural land under 159.17section 
         500.24 and that owns or rents the land where the facility is located.159.18    (e) "Anaerobic digester system" means a system of components that processes 159.19animal waste based on the absence of oxygen and produces gas used to generate electricity.159.20    (f) "Qualified landfill gas recovery facility" means a landfill that is operating or 159.21closed, that generates gas from the decomposition of organic matter, and that installs a 159.22system to collect the gas after July 1, 2007.159.23    Sec. 13. Minnesota Statutes 2006, section 216C.41, subdivision 2, is amended to read:159.24    Subd. 2. Incentive payment; appropriation. (a) Incentive payments must be made 159.25according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner 159.26or operator of a qualified hydropower facility or qualified wind energy conversion facility 159.27for electric energy generated and sold by the facility, (3) a publicly owned hydropower 159.28facility for electric energy that is generated by the facility and used by the owner of the 159.29facility outside the facility, or (4) the owner of a publicly owned dam that is in need of 159.30substantial repair, for electric energy that is generated by a hydropower facility at the 159.31dam and the annual incentive payments will be used to fund the structural repairs and 159.32replacement of structural components of the dam, or to retire debt incurred to fund those 159.33repairs, or (5) a qualified landfill gas recovery facility.159.34    (b) Payment may only be made upon receipt by the commissioner of commerce of 159.35an incentive payment application that establishes that the applicant is eligible to receive an 160.1incentive payment and that satisfies other requirements the commissioner deems necessary. 160.2The application must be in a form and submitted at a time the commissioner establishes.160.3    (c) There is annually appropriated from the renewable development account 160.4under section 
         116C.779 to the commissioner of commerce sums sufficient to make the 160.5payments required under this section, in addition to the amounts funded by the renewable 160.6development account as specified in subdivision 5a.160.7    Sec. 14. Minnesota Statutes 2006, section 216C.41, subdivision 3, is amended to read:160.8    Subd. 3. Eligibility window. Payments may be made under this section only for:160.9    (a) electricity generated from:160.10    (1) from a qualified hydroelectric facility that is operational and generating 160.11electricity before December 31, 2009;160.12    (2) from a qualified wind energy conversion facility that is operational and 160.13generating electricity before January 1, 2008; or160.14    (3) from a qualified on-farm biogas recovery facility from July 1, 2001, through 160.15December 31, 2017; and160.16    (b) gas generated from: 160.17    (1) a qualified on-farm biogas recovery facility from July 1, 2007, through December 160.1831, 2017; or 160.19    (2) a qualified landfill gas recovery facility from July 1, 2007, through December 160.2031, 2017.160.21    Sec. 15. [216C.42] ON-FARM BIOGAS RECOVERY GRANTS.160.22    Subdivision 1.Definitions.For the purpose of this section, the following terms 160.23have the meanings given.160.24    (a) "Qualified on-farm biogas recovery facility" means an anaerobic digester system 160.25that:160.26    (1) is located at the site of an agricultural operation;160.27    (2) is owned by an entity that is not prohibited from owning agricultural land under 160.28section 500.24 and that owns or rents the land where the facility is located; and160.29    (3) is owned by a qualified owner as defined in section 216B.1612, subdivision 2, 160.30paragraph (c).160.31    (b) "Anaerobic digester system" means a system of components that processes 160.32animal waste based on the absence of oxygen and produces gas.160.33    (c) "Commissioner" means the commissioner of agriculture.161.1    Subd. 2.Eligibility.Subject to the availability of funds, the commissioner must 161.2approve grants to a qualified owner of a qualified on-farm biogas recovery facility for the 161.3total installed costs of capital investments associated with the facility, up to a maximum of 161.4$500,000.161.5    Subd. 3.Application.Application for a grant under this section must be made by a 161.6qualified owner to the commissioner on a form the commissioner prescribes by rule. The 161.7commissioner must review each application to determine:161.8    (1) whether the application is complete;161.9    (2) whether the information, calculations, and estimates contained in the application 161.10are appropriate, accurate, and reasonable;161.11    (3) whether the project is eligible for a grant;161.12    (4) the amount of the grant for which the project is eligible; and161.13    (5) other funding sources the owner proposes to use to finance the project in addition 161.14to a grant authorized by this section. 161.15An applicant may submit only one grant application each year under this section.161.16    Subd. 4.Additional information.During application review, the commissioner 161.17may request additional information about a proposed project, including information on 161.18project cost. Failure to provide information requested disqualifies a grant application.161.19    Subd. 5.Public accessibility of grant application data.Data contained in an 161.20application submitted to the commissioner for a grant under this section, including 161.21supporting technical documentation, is classified as public data not on individuals under 161.22section 13.02, subdivision 14.161.23    Subd. 6.Rules.The commissioner must adopt rules necessary to implement this 161.24section. The rules must contain at a minimum:161.25    (1) standards for project eligibility;161.26    (2) criteria for reviewing grant applications; and161.27    (3) procedures and guidelines for program monitoring and evaluation.161.28    Subd. 7.Right of first refusal.A utility that provides electric service at retail in 161.29the area where the qualified on-farm biogas recovery facility is located has the right of 161.30first refusal for any gas produced by a qualified on-farm biogas recovery facility that has 161.31received a grant under this section. A utility's right of first refusal expires if:161.32    (1) within 45 days after the qualified owner files an incentive payment application 161.33with the commissioner of commerce, the utility fails to send a letter of intent to the 161.34qualified owner indicating the utility's willingness to negotiate a purchase agreement; or162.1    (2) the parties enter negotiations but fail to reach agreement within 120 days after 162.2the qualified owner files an incentive payment application with the commissioner of 162.3commerce.162.4    Subd. 8.Eligibility toward renewable energy objective and standard.Any gas 162.5generated by a qualified on-farm biogas recovery facility awarded a grant under this 162.6section that is purchased by a utility may be counted toward the utility's renewable energy 162.7objective and standard under section 216B.1691. 162.8    Subd. 9.Appropriation.Up to $1,000,000 is appropriated annually from the 162.9renewable development account through fiscal year 2015 to the commissioner of 162.10agriculture for the purpose of providing grants to qualified on-farm biogas recovery 162.11facilities.162.12    Sec. 16. [561.20] NUISANCE LIABILITY OF WIND ENERGY CONVERSION 162.13SYSTEMS.162.14    Subdivision 1.Definition.For the purposes of this section, "wind energy conversion 162.15system" has the meaning given in section 216C.06.162.16    Subd. 2.Wind energy conversion system not a nuisance. (a) A wind energy 162.17conversion system is not and does not become a private or public nuisance after two years 162.18from the date it begins generating electricity as a matter of law if the system:162.19    (1) complies with all applicable federal, state, or county laws, regulations, rules, and 162.20ordinances and any permits issued for it; and162.21    (2) operates according to generally accepted practices.162.22    (b) For a period of two years from the date it begins generating electricity, there is 162.23a rebuttable presumption that a wind energy conversion system in compliance with the 162.24requirements of paragraph (a) is not a public or private nuisance.162.25    (c) This subdivision does not apply:162.26    (1) to any prosecution for the crime of public nuisance as provided in section 162.27609.74 or to an action by a public authority to abate a particular condition that is a public 162.28nuisance; or162.29    (2) to any enforcement action brought by a local unit of government related to 162.30zoning under chapter 394 or 462.162.31    Subd. 3.Existing contracts.This section must not be construed to invalidate any 162.32contracts or commitments made before the effective date of this section.162.33    Subd. 4.Severability.If a provision of this section, or application thereof to any 162.34person or set of circumstances, is held invalid or unconstitutional, the invalidity does not 162.35affect other  provisions or applications of this section that can be given effect without the 163.1invalid provision  or application. To that end, the provisions of this section are declared to 163.2be severable.163.3EFFECTIVE DATE.This section is effective the day following final enactment.163.4    Sec. 17. PETROLEUM VIOLATION ESCROW FUNDS.163.5    (a) Petroleum violation escrow funds appropriated to the commissioner of commerce 163.6by  Laws 1988, chapter 686, article 1, section 38, for state energy loan programs for 163.7schools,  hospitals, and public buildings must be used for grants to kindergarten through 163.8grade 12 schools to develop energy conservation or renewable energy projects. A grant 163.9may not exceed $500,000. The commissioner must endeavor to award grants throughout 163.10the regions of the state. No more than one grant may be awarded in a county, unless an 163.11insufficient number of applications is received from schools located in other counties to 163.12exhaust available funds.163.13    (b) The commissioner of commerce must petition the federal Department of Energy 163.14for a waiver from any federal regulation that limits the proportion of federal funds 163.15expended on state energy programs that may be spent on energy efficiency.163.16    (c) For purposes of this subdivision, "renewable energy" means wind, solar, 163.17hydroelectric with a capacity of less than 60 megawatts, geothermal, hydrogen, fuel cells 163.18made from renewable resources, herbaceous crops, agricultural crops, agricultural waste, 163.19and aquatic plant matter.163.20EFFECTIVE DATE.This section is effective the day after the commissioner of 163.21commerce receives the waiver described in paragraph (b).163.22    Sec. 18. RURAL WIND ENERGY DEVELOPMENT PROGRAM.163.23    (a) The Center for Rural Policy and Development shall make a grant to a nonprofit 163.24organization with experience dealing with energy and community wind issues to design 163.25and implement a rural wind energy development assistance program. The program must 163.26be designed to maximize rural economic development and stabilize rural community 163.27institutions, including hospitals and schools, by increasing the income of local residents 163.28and increasing local tax revenues. The grant may be disbursed in two installments. The 163.29program must provide assistance to rural entities seeking to develop wind generation 163.30projects that meet the specifications of Minnesota Statutes, section 216B.1612, subdivision 163.312, paragraph (f), and to sell the electricity the projects produce. Among other strategies, 163.32the program may consider aggregating rural entities and others into groups with the size 163.33and market power necessary to plan and develop significant rural wind energy projects.164.1    (b) The program must provide assistance that includes, but is not limited to:164.2    (1) providing legal, engineering, and financial services;164.3    (2) identifying target communities with favorable wind resources, community 164.4interest, and local political support;164.5    (3) providing assistance to reserve, obtain, and ensure the maintenance over time of 164.6wind turbines;164.7    (4) creating market opportunities for utilities to meet their renewable energy standard 164.8obligations through purchases from rural community wind projects;164.9    (5) assisting in negotiating fair power purchase agreements;164.10    (6) facilitating transmission interconnection and delivery of energy from community 164.11wind projects; and 164.12    (7) lowering the market risk facing potential wind investors by supporting all phases 164.13of project development.164.14    The grantee must demonstrate an ability to sustain program functions with ongoing 164.15revenue from sources other than state funding and shall provide a 35 percent grant match. 164.16The grant must be awarded on a competitive basis. The center must use best practices 164.17regarding grant management functions, including selection and monitoring of the grantee, 164.18compliance review, and financial oversight. Grant management fees are limited to 2.5 164.19percent of the grant.164.20    (c) The commissioner of commerce shall monitor the activities of the rural wind 164.21energy development assistance program created under this section.  By November 1, 2008, 164.22the commissioner shall submit an evaluation of the program to the chairs of the house of 164.23representatives and senate committees with jurisdiction over energy policy and finance, 164.24including recommendations for legislative or administrative action to better achieve the 164.25program goals described in paragraph (a).164.26    Sec. 19. UNIFORM CODES AND STANDARDS FOR HYDROGEN, FUEL 164.27CELLS, AND RELATED TECHNOLOGIES; RECOMMENDATIONS AND 164.28REPORT.164.29    (a) The commissioner of labor and industry, in consultation with the Department of 164.30Commerce and other relevant public and private interests, shall develop recommendations 164.31regarding the adoption of uniform codes and standards for hydrogen infrastructure, fuel 164.32cells, and related technologies, and report those recommendations to the legislature by 164.33December 31, 2008.164.34    (b) The goal of the recommendations is to have all regulatory jurisdictions in the 164.35state have the same safety standards with regard to the production, storage, transportation, 165.1distribution, and use of hydrogen, fuel cells, and related technologies. The commissioner's 165.2recommendations must, without limitation, include:165.3    (1) codes and standards that already exist for hydrogen, fuel cells, and related 165.4technologies, and how the state should formalize their use;165.5    (2) codes and standards still under development by various official standard-making 165.6bodies;165.7    (3) gaps between existing codes and standards, those under development, and those 165.8that may still be needed but are not yet being developed;165.9    (4) the need for, and estimated cost of, additional education and training for 165.10emergency management and code officials;165.11    (5) any changes needed to environmental and other permitting processes to 165.12accommodate the commercialization of hydrogen, fuel cells, and related technologies; and165.13    (6) recommendations on appropriate codes and standards for educational and 165.14research institutions.165.15    Sec. 20. HYDROGEN REFUELING STATION GRANTS.165.16    In addition to the purposes specified in Laws 2005, chapter 97, article 13, section 165.174, for which the commissioner of commerce may make grants, the commissioner may 165.18make grants under that law for the purpose of developing, deploying, and encouraging 165.19commercially promising renewable hydrogen production systems and hydrogen end 165.20uses in partnership with industry. The authority of the commissioner to make grants 165.21and assessments under Laws 2005, chapter 97, article 13, section 4, continues until the 165.22authorized grants and assessments are made.165.23    Sec. 21. OFF-SITE RENEWABLE DISTRIBUTED GENERATION.165.24    The commissioner of commerce shall convene a broad group of interested 165.25stakeholders to evaluate the feasibility and potential for the interconnection and parallel 165.26operation of off-site renewable distributed generation in a manner consistent with 165.27Minnesota Statutes, sections 216B.37 to 216B.43, and shall issue recommendations to 165.28the chairs of the house of representatives and senate committees with jurisdiction over 165.29energy issues by February 1, 2008.165.30ARTICLE 7165.31ENVIRONMENT165.32    Section 1. BIOFUEL PERMITTING REPORT.166.1    By January 15, 2008, the Pollution Control Agency, the commissioner of natural 166.2resources, and the Environmental Quality Board shall report to the house of representatives 166.3and senate committees and divisions with jurisdiction over agriculture and environment 166.4policy and budget on the process to issue permits for biofuel production facilities. The 166.5report shall include:166.6    (1) information on the timing of the permits and measures taken to improve the 166.7timing of the permitting process;166.8    (2) recommended changes to statutes, rules, or procedures to improve the biofuel 166.9facility permitting process and reduce the groundwater needed for production; and166.10    (3) other information or analysis that may be helpful in understanding or improving 166.11the biofuel production facility permitting process.166.12EFFECTIVE DATE.This section is effective the day following final enactment.166.13    Sec. 2. DEFINITIONS.166.14    Subdivision 1.Terrestrial carbon sequestration."Terrestrial carbon sequestration" 166.15means the long-term storage of carbon in soil and vegetation to prevent its collection in 166.16the atmosphere as carbon dioxide.166.17    Subd. 2.Geologic carbon sequestration."Geologic carbon sequestration" means 166.18injecting carbon dioxide into underground geologic formations where it can be stored for 166.19long periods of time to prevent its escape to the atmosphere.166.20    Sec. 3. TERRESTRIAL CARBON SEQUESTRATION ACTIVITIES.166.21    Subdivision 1.Study; scope.The Board of Regents of the University of Minnesota 166.22is requested to conduct a study assessing the potential capacity for carbon sequestration in 166.23Minnesota's terrestrial systems. The study must: 166.24    (1) conduct a statewide inventory and construct a database of lands across several 166.25land types, such as forests, agricultural lands, peatlands, and wetlands, that have the 166.26potential to sequester significant quantities of carbon and of lands that currently contain 166.27large stocks of carbon that are at risk of being emitted to the atmosphere as a result of 166.28changes in land use and climate; 166.29    (2) quantify the ability of various land use practices, such as the growth of different 166.30species of crops, grasses, and trees, to sequester carbon and their impacts on other 166.31ecological services of value, including air and water quality, biodiversity, and wildlife 166.32habitat; 166.33    (3) identify a network of benchmark monitoring sites to measure the impact of 166.34long-term, large-scale factors, such as changes in climate, carbon dioxide levels, and land 167.1use, on the terrestrial carbon sequestration capacity of various land types, to improve 167.2understanding of carbon-terrestrial interactions and dynamics; 167.3    (4) identify long-term demonstration projects to measure the impact of deliberate 167.4sequestration practices, including the establishment of biofuel production systems, on 167.5forest, agricultural, wetland, and prairie ecosystems; and 167.6    (5) evaluate current state policies and programs that affect the levels of terrestrial 167.7sequestration on public and private lands and identify gaps and recommend policy changes 167.8to increase sequestration rates.167.9    Subd. 2.Coordination of terrestrial carbon sequestration activities.Planning 167.10and implementation of the study described in subdivision 1 will be coordinated by 167.11the Minnesota Terrestrial Carbon Sequestration Initiative, a task force consisting of 167.12representatives from the University of Minnesota, the Department of Agriculture, the 167.13Board of Water and Soil Resources, the Department of Commerce, the Department 167.14of Natural Resources, and the Pollution Control Agency and agricultural, forestry, 167.15conservation, and business stakeholders. 167.16    Subd. 3.Contracting.The University of Minnesota may contract with another 167.17party to perform any of the tasks listed in subdivision 1.167.18    Subd. 4.Report.The commissioner of natural resources must submit a report 167.19with the results of the study to the senate and house of representatives committees with 167.20jurisdiction over environmental and energy policies no later than February 1, 2008.167.21    Sec. 4. GEOLOGIC CARBON SEQUESTRATION ASSESSMENT.167.22    Subdivision 1.Study; scope.(a) The Minnesota Geological Survey shall conduct 167.23a study assessing the potential capacity for geologic carbon sequestration in the 167.24Midcontinent Rift system in Minnesota. The study must assess the potential of porous 167.25and permeable sandstone layers deeper than one kilometer below the surface that are 167.26capped by less permeable shale and must identify potential risks to carbon storage, such 167.27as areas of low permeability in injection zones, low storage capacity, and potential seal 167.28failure. The study must identify the most promising formations and geographic areas for 167.29physical analysis of carbon sequestration potential. The study must review geologic 167.30maps, published reports and surveys, and any relevant unpublished raw data with respect 167.31to attributes that are pertinent for the long-term sequestration of carbon in geologic 167.32formations, in particular, those that bear on formation injectivity, capacity, and seal 167.33effectiveness. The study must examine the following characteristics of key sedimentary 167.34units within the Midcontinent Rift system in Minnesota:167.35    (1) likely depth, temperature, and pressure; 168.1    (2) physical properties, including the ability to contain and transmit fluids; 168.2    (3) the type of rocks present; 168.3    (4) structure and geometry, including folds and faults; and 168.4    (5) hydrogeology, including water chemistry and water flow.168.5    (b) The commissioner of natural resources, in consultation with the Minnesota 168.6Geological Survey, shall contract for a study to estimate the properties of the Midcontinent 168.7Rift system in Minnesota, as described in paragraph (a), clauses (1) to (5), through the 168.8use of computer models developed for similar geologic formations located outside of 168.9Minnesota which have been studied in greater detail.168.10    Subd. 2.Consultation.The Minnesota Geological Survey shall consult with the 168.11Minnesota Mineral Coordinating Committee, established in Minnesota Statutes, section 168.1293.0015, in planning and implementing the study design.168.13    Subd. 3.Report.The commissioner of natural resources must submit a report 168.14with the results of the study to the senate and house of representatives committees with 168.15jurisdiction over environmental and energy policies no later than February 1, 2008.168.16    Sec. 5. STAY EXTENDED; DRY CASK STORAGE AT MONTICELLO.168.17    The stay of a Public Utilities Commission decision to approve an application for 168.18a certificate of need for additional dry cask storage at the Monticello nuclear power 168.19generating facility, imposed under Minnesota Statutes, section 116C.83, subdivision 3, 168.20is extended until June 1, 2008.168.21EFFECTIVE DATE.This section is effective the day following final enactment.168.22ARTICLE 8168.23HEATING ASSISTANCE AND UTILITIES168.24    Section 1. [216B.091] MONTHLY REPORTS.168.25    (a) Each public utility must report the following data on residential customers to the 168.26commission monthly, in a format determined by the commission:168.27    (1) number of customers;168.28    (2) number and total amount of accounts past due;168.29    (3) average customer past due amount;168.30    (4) total revenue received from the low-income home energy assistance program and 168.31other sources contributing to the bills of low-income persons;168.32    (5) average monthly bill;168.33    (6) total sales revenue;169.1    (7) total write-offs due to uncollectible bills;169.2    (8) number of disconnection notices mailed;169.3    (9) number of accounts disconnected for nonpayment;169.4    (10) number of accounts reconnected to service; and169.5    (11) number of accounts that remain disconnected, grouped by the duration of 169.6disconnection, as follows:  169.7    (i) 1-30 days; 169.8    (ii) 31-60 days; and169.9    (iii) more than 60 days.169.10    (b) Monthly reports for October through April must also include the following data:169.11    (1) number of cold weather protection requests;169.12    (2) number of payment arrangement requests received and granted;169.13    (3) number of right to appeal notices mailed to customers;169.14    (4) number of reconnect request appeals withdrawn;169.15    (5) number of occupied heat-affected accounts disconnected for 24 hours or more 169.16for electric and natural gas service separately;169.17    (6) number of occupied non-heat-affected accounts disconnected for 24 hours or 169.18more for electric and gas service separately;169.19    (7) number of customers granted cold weather rule protection;169.20    (8) number of customers disconnected who did not request cold weather rule 169.21protection; and169.22    (9) number of customers disconnected who requested cold weather rule protection.169.23    (c) The data reported under paragraphs (a) and (b) is presumed to be accurate upon 169.24submission and must be made available through the commission's electronic filing system.169.25    Sec. 2. [216B.0951] PROPANE PREPURCHASE PROGRAM.169.26    Subdivision 1.Establishment.The commissioner of commerce shall operate, or 169.27contract to operate, a propane fuel prepurchase fuel program. The commissioner may 169.28contract at any time of the year to purchase the lesser of one-third of the liquid propane 169.29fuel consumed by low-income home energy assistance program recipients during the 169.30previous heating season or the amount that can be purchased with available funds. The 169.31propane fuel prepurchase program must be available statewide through each local agency 169.32that administers the energy assistance program. The commissioner may decide to limit or 169.33not engage in prepurchasing if the commissioner finds that there is a reasonable likelihood 169.34that prepurchasing will not provide fuel-cost savings.170.1    Subd. 2.Hedge account.The commissioner may establish a hedge account with 170.2realized program savings due to prepurchasing. The account must be used to compensate 170.3program recipients an amount up to the difference in cost for fuel provided to the recipient 170.4if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No 170.5more than ten percent of the aggregate prepurchase program savings may be used to 170.6establish the hedge account.170.7    Subd. 3.Report.The Department of Commerce shall issue a report by June 30, 170.82008, made available electronically on its Web site and in print upon request, that contains 170.9the following information:170.10    (1) the cost per gallon of prepurchased fuel;170.11    (2) the total gallons of fuel prepurchased;170.12    (3) the average cost of propane each month between October and the following April;170.13    (4) the number of energy assistance program households receiving prepurchased 170.14fuel; and170.15    (5) the average savings accruing or benefit increase provided to energy assistance 170.16households.170.17    Sec. 3. [216B.096] COLD WEATHER RULE; PUBLIC UTILITIES.170.18    Subdivision 1.Scope. This section applies only to residential customers of a 170.19public utility.170.20    Subd. 2.Definitions.(a) The terms used in this section have the meanings given 170.21them in this subdivision.170.22    (b) "Cold weather period" means the period from October 15 through April 15 of 170.23the following year.170.24    (c) "Customer" means a residential customer of a utility.170.25    (d) "Customer's income" means the actual monthly income of the customer or the 170.26average monthly income of the customer computed on a calendar year basis, whichever is 170.27less, and does not include any amount received for energy assistance.170.28    (e) "Disconnection" means the involuntary loss of utility heating service as a result 170.29of a physical act by a utility to discontinue service. Disconnection includes installation of 170.30a service or load limiter or any device that limits or interrupts utility service in any way.170.31    (f) "Household income" means the combined income, as defined in section 290A.03, 170.32subdivision 3, of all residents of the customer's household, computed on an annual basis. 170.33Household income does not include any amount received for energy assistance.170.34    (g) "Reasonably timely payment" means payment within seven calendar days of 170.35agreed-upon due dates.171.1    (h) "Reconnection" means the restoration of utility heating service after it has been 171.2disconnected.171.3    (i) "Third party notice"  means a commission-approved notice containing, at a 171.4minimum, the following information:171.5    (1) a statement that the utility will send a copy of any future notice of proposed 171.6disconnection of utility heating service to a third party designated by the residential 171.7customer;171.8    (2) instructions on how to request this service; and171.9    (3) a statement that the residential customer should contact the person the customer 171.10intends to designate as the third party contact before providing the utility with the party's 171.11name.171.12    (j) "Utility" means a public utility as defined in section 216B.02.171.13    (k) "Utility heating service" means natural gas or electricity used as a  primary 171.14heating source, including electricity service necessary to operate gas heating equipment.171.15    (l) "Working days" means Mondays through Fridays, excluding legal holidays.171.16    Subd. 3.Utility obligations before cold weather period.(a) Each year, between 171.17September 1 and October 15, each utility must notify all customers of the provisions of 171.18this section. Notice must also be provided to all new residential customers when service is 171.19initiated. Notice must, at a minimum, include:171.20    (1) an explanation of the customer's rights and responsibilities under subdivision 5;171.21    (2) an explanation of no-cost and low-cost methods to reduce the consumption 171.22of energy; and171.23    (3) a third party notice.171.24    (b) Also, each year, between September 1 and October 15, each utility must attempt 171.25to contact, establish a payment agreement, and reconnect utility heating service to all 171.26customers who were disconnected after the preceding heating season. A record must be 171.27made of all contacts and attempted contacts.171.28    Subd. 4.Notice before disconnection during cold weather period.Before 171.29disconnecting utility heating service during the cold weather period, a utility must provide 171.30notice to a customer, in easy-to-understand language, that contains the following:171.31    (1) the date of the scheduled disconnection;171.32    (2) the amount due;171.33    (3) ways to avoid disconnection;171.34    (4) information regarding payment agreements;171.35    (5) a statement explaining the customer's rights and responsibilities, including the 171.36right to appeal a determination by the utility that the customer is not eligible for protection 172.1and the right to request commission intervention if the utility and customer cannot arrive 172.2at a mutually acceptable payment agreement;172.3    (6) a list of local energy assistance and weatherization providers in each county 172.4served by the utility; and172.5    (7) a third party notice.172.6    Subd. 5.Cold weather rule.(a) During the cold weather period, a utility may 172.7not disconnect and must reconnect a customer whose household income is at or below 172.850 percent of the state median income if the customer enters into and makes reasonably 172.9timely payments under a mutually acceptable payment agreement with the utility that is 172.10based on the financial resources and circumstances of the household; provided that, a 172.11utility may not require a customer to pay  more than ten percent of the customer's income 172.12toward current and past utility bills for utility heating service. 172.13    (b) A utility may accept more than ten percent of the household income as the 172.14payment arrangement amount if agreed to by the customer.172.15    (c) The customer or a designated third party may request a modification of the terms 172.16of a payment agreement previously entered into if the customer's financial circumstances 172.17have changed or the customer is unable to make reasonably timely payments. The utility 172.18may refer to commission staff a customer who requests more than two modifications of a 172.19payment agreement during a single cold weather rule period if no payments have been 172.20made.172.21    (d) The payment agreement terminates at the expiration of the cold weather period 172.22unless a longer period is mutually agreed to by the customer and the utility.172.23    Subd. 6.Verification of income.(a) In verifying a customer's household income, 172.24a utility may:172.25    (1) accept the signed statement of a customer that the customer is income eligible;172.26    (2) obtain income verification from a local energy assistance provider or a 172.27government agency;172.28    (3) consider one or more of the following:172.29    (i) the most recent income tax return filed by members of the customer's household;172.30    (ii) for each employed member of the customer's household, paycheck stubs for the 172.31last two months or a written statement from the employer reporting wages earned during 172.32the preceding two months;172.33    (iii) a customer's Medicaid card, documentation that the customer receives food 172.34stamps, or a food support eligibility document;173.1    (iv) documentation that the customer receives a pension from the Department of 173.2Human Services, the Social Security Administration, the Veteran's Administration, or 173.3other pension provider;173.4    (v) a letter showing the customer's dismissal from a job or other documentation of 173.5unemployment; or173.6    (vi) other documentation that supports the customer's declaration of income 173.7eligibility.173.8    (b) A customer who receives energy assistance benefits under any federal, state, 173.9or county government programs in which eligibility is defined as household income at 173.10or below 50 percent of state median income is deemed to be automatically eligible for 173.11protection under this section and no other verification of income may be required.173.12    Subd. 7.Prohibitions and requirements.During the cold weather period:173.13    (a) A utility may not charge a deposit or delinquency charge to a customer who has 173.14entered into a payment agreement or a customer who has appealed to the commission 173.15under subdivision 8.173.16    (b) A utility may not disconnect service during the following periods:173.17    (1) during the pendency of any appeal under subdivision 8;173.18    (2) earlier than ten working days after a utility has deposited in first class mail, 173.19or seven working days after a utility has personally served, the notice required under 173.20subdivision 4 to a customer in an occupied dwelling;173.21    (3) earlier than ten working days after the utility has deposited in first class mail 173.22the notice required under subdivision 4 to the recorded billing address of the customer, 173.23if the utility has reasonably determined from an on-site inspection that the dwelling 173.24is unoccupied;173.25    (4) on a Friday, unless the utility makes personal contact with, and offers a payment 173.26agreement to, the customer;173.27    (5) on a Saturday, Sunday, holiday, or the day before a holiday;173.28    (6) when utility offices are closed;173.29    (7) when no utility personnel are available to resolve disputes, enter into payment 173.30agreements, accept payments, and reconnect service; or173.31    (8) when commission offices are closed.173.32    (c) Also, a utility may not discontinue service until the utility investigates whether 173.33the dwelling is actually occupied. At a minimum, the investigation must include one visit 173.34by the utility to the dwelling during normal working hours. If no contact is made and 173.35there is reason to believe that the dwelling is occupied, the utility must attempt a second 173.36contact during nonbusiness hours. If personal contact is made, the utility representative 174.1must provide notice required under subdivision 4 and, if the utility representative is not 174.2authorized to enter into a payment agreement, the telephone number the customer can call 174.3to establish a payment agreement.174.4    (d) Each utility must reconnect utility service if, following disconnection, the 174.5dwelling is found to be occupied and the customer agrees to enter into a payment 174.6agreement or appeals to the commission because the customer and the utility are unable to 174.7agree on a payment agreement.174.8    Subd. 8.Disputes; customer appeals.(a) A utility must provide the customer 174.9and any designated third party with a commission-approved written notice of the right 174.10to appeal:174.11    (1) upon a utility determination that the customer's household income is more than 174.1250 percent of state median household income; or174.13    (2) when the utility and customer are unable to agree on the establishment or 174.14modification of a payment agreement.174.15    (b) A customer's appeal must be filed with the commission no later than seven 174.16working days after the customer's receipt of a personally served disconnection notice, or 174.17within ten working days after the utility has deposited a first class mail notice. If no 174.18disconnection notice has been issued, an appeal may be filed at any time.174.19    (c) The commission must determine all customer appeals on an informal basis, 174.20within 30 calendar days of receipt of a customer's written appeal. In making its 174.21determination, the commission must consider one or more of the factors in subdivision 6, 174.22paragraph (a), clauses (2) and (3).174.23    (d) Notwithstanding any other law, following an appeals decision adverse to the 174.24customer, a utility may not disconnect utility heating service for seven working days 174.25after the utility has personally served a disconnection notice, or for ten working days 174.26after the utility has deposited a first class mail notice. The notice must contain, in 174.27easy-to-understand language, the date on or after which disconnection will occur, the 174.28reason for disconnection, and ways to avoid disconnection.174.29    Subd. 9.Utility appeals.A utility may file an appeal of the commission's informal 174.30determination under subdivision 8 within 14 working days after it is issued. An appeal 174.31must be in writing, on forms prescribed by the commission. A copy of the appeal and a 174.32commission-approved letter explaining that the customer may have service disconnected 174.33must be mailed by the utility to the local human services or social services agency and 174.34the local energy assistance provider on the same day as the utility mails its appeal to 174.35the commission.175.1    Subd. 10.Reporting.Annually on November 1, a utility must file with the 175.2commission a report specifying the number of utility heating service customers whose 175.3service is disconnected or remains disconnected as of October 1 and October 15. If 175.4customers remain disconnected on October 15, a utility must file a report each week 175.5between November 1 and the end of the cold weather period specifying:175.6    (1) the number of utility heating service customers that are or remain disconnected 175.7from service; and175.8    (2) the number of utility heating service customers that are reconnected to service 175.9each week. The utility may discontinue weekly reporting if the number of utility heating 175.10service customers that are or remain disconnected reaches zero before the end of the 175.11cold weather period.175.12    Sec. 4. Minnesota Statutes 2006, section 216B.097, subdivision 1, is amended to read:175.13    Subdivision 1. Application; notice to residential customer. (a) A municipal utility 175.14or a cooperative electric association must not disconnect and must reconnect the utility 175.15service of a residential customer during the period between October 15 and April 15 if 175.16the disconnection affects the primary heat source for the residential unit when and all of175.17the following conditions are met:175.18    (1) the customer has declared inability to pay on forms provided by the utility. For 175.19the purposes of this clause, a customer that is receiving energy assistance is deemed 175.20to have demonstrated an inability to pay;175.21    (2) The household income of the customer is less than at or below 50 percent of the 175.22state median household income;. A municipal utility or cooperative electric association 175.23utility may (i) verify income on forms it provides or (ii) obtain175.24    (3) verification of income may be conducted by from the local energy assistance 175.25provider or the utility, unless the. A customer is deemed automatically eligible forto meet 175.26the income requirements of this clauseprotection against disconnection as a recipient of175.27if the customer receives  any form of public assistance, including energy assistance, that 175.28uses an income eligibility in an amount threshold set at or below the income eligibility in 175.29clause (2); 50 percent of the state median household income.175.30    (4) (2) A customer whose account is current for the billing period immediately prior 175.31to October 15 or who, at any time, enters into and makes reasonably timely payments 175.32under a payment schedule agreement that considers the financial resources of the 175.33household and is reasonably current with payments under the schedule; and.176.1    (5) the (3) A customer receives referrals to energy assistance programs, 176.2weatherization, conservation, or other programs likely to reduce the customer's energy 176.3bills.176.4    (b) A municipal utility or a cooperative electric association must, between August 176.515 and October 15 of each year, notify all residential customers of the provisions of this 176.6section.176.7    Sec. 5. Minnesota Statutes 2006, section 216B.097, subdivision 3, is amended to read:176.8    Subd. 3. Restrictions if disconnection necessary. (a) If a residential customer must 176.9be involuntarily disconnected between October 15 and April 15 for failure to comply with 176.10the provisions of subdivision 1, the disconnection must not occur:176.11    (1) on a Friday or on the day before a holiday, unless the customer declines to enter 176.12into a payment agreement offered that day in person or via personal contact by telephone 176.13by a municipal utility or cooperative electric association;176.14    (2) on a weekend, holiday, or the day before a holiday;176.15    (3) when utility offices are closed; or176.16    (4) after the close of business on a day when disconnection is permitted, unless 176.17a field representative of a municipal utility or cooperative electric association who is 176.18authorized to enter into a payment agreement, accept payment, and continue service, 176.19offers a payment agreement to the customer. 176.20Further, the disconnection must not occur until at least 20 days after the notice required 176.21in subdivision 2 has been mailed to the customer or 15 days after the notice has been 176.22personally delivered to the customer.176.23    (b) If a customer does not respond to a disconnection notice, the customer must 176.24not be disconnected until the utility investigates whether the residential unit is actually 176.25occupied. If the unit is found to be occupied, the utility must immediately inform the 176.26occupant of the provisions of this section. If the unit is unoccupied, the utility must give 176.27seven days' written notice of the proposed disconnection to the local energy assistance 176.28provider before making a disconnection.176.29    (c) If, prior to disconnection, a customer appeals a notice of involuntary 176.30disconnection, as provided by the utility's established appeal procedure, the utility must 176.31not disconnect until the appeal is resolved.176.32    Sec. 6. Minnesota Statutes 2006, section 216B.098, subdivision 4, is amended to read:176.33    Subd. 4. Undercharges.(a) A utility shall offer a payment agreement to customers 176.34who have been undercharged if no culpable conduct by the customer or resident of 177.1the customer's household caused the undercharge. The agreement must cover a period 177.2equal to the time over which the undercharge occurred or a different time period that is 177.3mutually agreeable to the customer and the utility, except that the duration of a payment 177.4agreement offered by a utility to a customer whose household income is at or below 50 177.5percent of state median household income must consider the financial circumstances of 177.6the customer's household. 177.7    (b) No interest or delinquency fee may be charged under this as part of an 177.8undercharge agreement under this subdivision.177.9    (c) If a customer inquiry or complaint results in the utility's discovery of the 177.10undercharge, the utility may bill for undercharges incurred after the date of the inquiry 177.11or complaint only if the utility began investigating the inquiry or complaint within a 177.12reasonable time after when it was made.177.13    Sec. 7. Minnesota Statutes 2006, section 216B.16, subdivision 10, is amended to read:177.14    Subd. 10. Intervenor payment compensation.(a) An organization or individual 177.15granted formal intervenor status by the commission is eligible to receive compensation.177.16    (b) The commission may order a utility to pay all or a portion of a party's intervention177.17 compensate all or part of an eligible intervenor's reasonable costs not to exceed $20,000 177.18per intervenor in any proceeding of participation in a general rate case that comes before 177.19the commission  when the commission finds that the intervenor has materially assisted 177.20the commission's deliberation and the intervenor has insufficient financial resources to 177.21afford the costs of intervention and when a lack of compensation would present financial 177.22hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor 177.23in any proceeding. For the purpose of this subdivision, "materially assisted" means that 177.24the intervenor's participation and presentation was useful and seriously considered, or 177.25otherwise substantially contributed to the commission's deliberations in the proceeding. 177.26    (c) In determining whether an intervenor has materially assisted the commission's 177.27deliberation, the commission must consider, at a minimum, whether: 177.28    (1) the intervenor represented an interest that would not otherwise have been 177.29adequately represented; 177.30    (2) the evidence or arguments presented or the positions taken by the intervenor 177.31were an important factor in producing a fair decision; 177.32    (3) the intervenor's position promoted a public purpose or policy; 177.33    (4) the evidence presented, arguments made, issues raised, or positions taken by the 177.34intervenor would not have been a part of the record without the intervenor's participation; 177.35and 178.1    (5) the administrative law judge or the commission adopted, in whole or in part, a 178.2position advocated by the intervenor. 178.3    (d) In determining whether the absence of compensation would present financial 178.4hardship to the intervenor, the commission must consider: 178.5    (1) whether the costs presented in the intervenor's claim reflect reasonable fees for 178.6attorneys and expert witnesses and other reasonable costs; and 178.7    (2) the ratio between the costs of intervention and the intervenor's unrestricted funds.178.8    (e) An intervenor seeking compensation must file a request and an affidavit of service 178.9with the commission, and serve a copy of the request on each party to the proceeding. 178.10The request must be filed 30 days after the later of (1) the expiration of the period within 178.11which a petition for rehearing, amendment, vacation, reconsideration, or reargument must 178.12be filed or (2) the date the commission issues an order following rehearing, amendment, 178.13vacation, reconsideration, or reargument.178.14    (f) The compensation request must include: 178.15    (1) the name and address of the intervenor or representative of the nonprofit 178.16organization the intervenor is representing; 178.17    (2) if necessary, proof of the organization's nonprofit, tax-exempt status; 178.18    (3) the name and docket number of the proceeding for which compensation is 178.19requested; 178.20    (4) a list of actual annual revenues and expenses of the organization the intervenor is 178.21representing for the preceding year and projected revenues, revenue sources, and expenses 178.22for the current year; 178.23    (5) the organization's balance sheet for the preceding year and a current monthly 178.24balance sheet; 178.25    (6) an itemization of intervenor costs and the total compensation request; and178.26    (7) a narrative explaining why additional organizational funds cannot be devoted 178.27to the intervention.178.28    (g) Within 30 days after service of the request for compensation, a party may file 178.29a response, together with an affidavit of service, with the commission. A copy of the 178.30response must be served on the intervenor and all other parties to the proceeding. 178.31    (h) Within 15 days after the response is filed, the intervenor may file a reply with 178.32the commission. A copy of the reply and an affidavit of service must be served on all 178.33other parties to the proceeding. 178.34    (i) If additional costs are incurred as a result of additional proceedings following 178.35the commission's initial order, the intervenor may file an amended request within 30 179.1days after the commission issues an amended order. Paragraphs (e) to (h) apply to an 179.2amended request. 179.3    (j) The commission must issue a decision on intervenor compensation within 60 179.4days of a filing by an intervenor. 179.5    (k) A party may request reconsideration of the commission's compensation decision 179.6within 30 days of the decision. 179.7    (l) If the commission issues an order requiring payment of intervenor compensation, 179.8the utility that was the subject of the proceeding must pay the compensation to the 179.9intervenor, and file with the commission proof of payment, within 30 days after the later 179.10of (1) the expiration of the period within which a petition for reconsideration of the 179.11commission's compensation decision must be filed or (2) the date the commission issues 179.12an order following reconsideration of its order on intervenor compensation.179.13    Sec. 8. Minnesota Statutes 2006, section 216B.16, subdivision 15, is amended to read:179.14    Subd. 15. Low-income affordability programs. (a) The commission may must179.15consider ability to pay as a factor in setting utility rates and may establish affordability179.16programs for low-income residential ratepayers in order to ensure affordable, reliable, and 179.17continuous service to low-income utility customers. By September 1, 2007, a public 179.18utility serving low-income residential ratepayers who use natural gas for heating must 179.19file an affordability program with the commission. For purposes of this subdivision, 179.20"low-income residential ratepayers" means ratepayers who receive energy assistance from 179.21the low-income home energy assistance program (LIHEAP).179.22    (b) The purpose of the low-income programs is to Any affordability program the 179.23commission orders a utility to implement must:179.24    (1) lower the percentage of income that participating low-income households devote 179.25to energy bills, to;179.26    (2) increase participating customer payments, and to over time by increasing the 179.27frequency of payments;179.28    (3) decrease or eliminate participating customer arrears;179.29    (4) lower the utility costs associated with customer account collection activities; and 179.30    (5) coordinate the program with other available low-income bill payment assistance 179.31and conservation resources. 179.32In ordering low-income affordability programs, the commission may require public 179.33utilities to file program evaluations, including the coordination of other available 179.34low-income bill payment and conservation resources and that measure the effect of the 179.35affordability program on:180.1    (1) reducing the percentage of income that participating households devote to energy 180.2bills;180.3    (2) service disconnections; and180.4    (3) frequency of customer payment behavior payments, utility collection costs, 180.5arrearages, and bad debt.180.6    (c) The commission must issue orders necessary to implement, administer, and 180.7evaluate affordability programs, and to allow a utility to recover program costs, including 180.8administrative costs, on a timely basis. The commission may not allow a utility to recover 180.9administrative costs, excluding start-up costs, in excess of five percent of total program 180.10costs, or program evaluation costs in excess of two percent of total program costs. The 180.11commission must permit deferred accounting, with carrying costs, for recovery of program 180.12costs incurred during the period between general rate cases.180.13    (d) Public utilities may use information collected or created for the purpose of 180.14administering energy assistance to administer affordability programs.180.15    Sec. 9. RULES; INSTRUCTION TO COMMISSION AND REVISOR.180.16    Subdivision 1.Public Utilities Commission.The commission must amend 180.17Minnesota Rules, chapters 7820 and 7831, to conform with the provisions of Minnesota 180.18Statutes, section 216B.096, as authorized under Minnesota Statutes, section 14.388, 180.19subdivision 1, clause (3).180.20    Subd. 2.Revisor of statutes.The revisor of statutes shall change the reference from 180.21"216B.095" to "216B.096" wherever found in Minnesota Rules, chapter 7820.180.22    Sec. 10.  REPEALER.180.23(a) Minnesota Rules, parts 7831.0100; 7831.0200; 7831.0300; 7831.0400; 180.247831.0500; 7831.0600; 7831.0700; and 7831.0800, are repealed as they pertain to a 180.25general rate case for a gas or electric utility held before the commission. The Public 180.26Utilities Commission shall timely adopt rules to conform with this repealer and Minnesota 180.27Statutes, section 216B.16, subdivision 10, as amended by this act, under the exempt rule 180.28procedures of Minnesota Statutes, section 14.388, subdivision 1, clause (3).180.29(b) Minnesota Statutes 2006, section 216B.095, is repealed.