HF 2123

CCR--HF2123B - 86th Legislature (2009 - 2010)

Posted on 01/15/2013 08:25 p.m.

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 2123 1.2A bill for an act 1.3relating to state government; environment, natural resources, and energy 1.4finance; appropriating money for environment and natural resources; authorizing 1.5sale of gift cards and certificates; establishing composting competitive grant 1.6program; modifying regulation of storm water discharges; modifying waste 1.7management reporting requirements and creating a work group; requiring 1.8nonresident all-terrain vehicle state trail pass; modifying horse trail and state 1.9park pass requirements; requiring disclosure of certain chemicals in children's 1.10products by manufacturers; requiring plastic yard waste bags to be compostable 1.11and establishing labeling standards; authorizing uses of the Hennepin County 1.12solid and hazardous waste fund; modifying greenhouse gas emissions provisions 1.13and requiring a registry; establishing and authorizing fees; providing for 1.14disposition of certain fees; modifying and establishing assessments for certain 1.15regulatory expenses; providing for fish consumption advisories in different 1.16languages; limiting use of certain funds; requiring reports; appropriating 1.17money to Department of Commerce and Public Utilities Commission to finance 1.18activities related to commerce and energy; modifying provisions related to 1.19Telecommunications Access Minnesota assessments, insurance audits, insurers 1.20and insurance products, certain financial institutions, regulated activities related 1.21to certain mortgage transactions and professionals, and debt management and 1.22debt settlement services; providing penalties and remedies; appropriating and 1.23allocating federal stimulus money for various energy programs;amending 1.24Minnesota Statutes 2008, sections 45.011, subdivision 1; 45.027, subdivision 1; 1.2546.04, subdivision 1; 46.05; 46.131, subdivision 2; 47.58, subdivision 1; 47.60, 1.26subdivisions 1, 3, 6; 48.21; 58.05, subdivision 3; 58.06, subdivision 2; 58.126; 1.2758.13, subdivision 1; 60A.124; 60A.14, subdivision 1; 60B.03, subdivision 15; 1.2860L.02, subdivision 3; 61B.19, subdivision 4; 61B.28, subdivisions 4, 8; 67A.01; 1.2967A.06; 67A.07; 67A.14, subdivisions 1, 7; 67A.18, subdivision 1; 84.0835, 1.30subdivision 3; 84.415, subdivision 5, by adding a subdivision; 84.63; 84.631; 1.3184.632; 84.788, subdivision 3; 84.922, subdivision 1a; 85.015, subdivision 1b; 1.3285.053, subdivision 10; 85.46, subdivisions 3, 4, 7; 93.481, subdivisions 1, 3, 5, 1.337; 97A.075, subdivision 1; 103G.301, subdivisions 2, 3; 115.03, subdivision 5c; 1.34115.073; 115.56, subdivision 4; 115.77, subdivision 1; 115A.1314, subdivision 2; 1.35115A.557, subdivision 3; 115A.931; 116.07, subdivision 4d; 116.41, subdivision 1.362; 116C.834, subdivision 1; 116D.045; 216B.62, subdivisions 3, 4, 5, by 1.37adding a subdivision; 216H.10, subdivision 7; 216H.11; 325E.311, subdivision 1.386; 332A.02, subdivisions 5, 8, 9, 10, 13, by adding a subdivision; 332A.04, 1.39subdivision 6; 332A.08; 332A.10; 332A.11, subdivision 2; 332A.14; Laws 2002, 1.40chapter 220, article 8, section 15; Laws 2007, chapter 57, article 1, section 1.414, subdivision 2; Laws 2008, chapter 363, article 5, section 4, subdivision 1.427; proposing coding for new law in Minnesota Statutes, chapters 60A; 61A; 2.167A; 84; 93; 115A; 116; 216H; 325E; 383B; proposing coding for new law as 2.2Minnesota Statutes, chapter 332B; repealing Minnesota Statutes 2008, sections 2.360A.129; 61B.19, subdivision 6; 67A.14, subdivision 5; 67A.17; 67A.19; Laws 2.42008, chapter 363, article 5, section 30; Minnesota Rules, parts 2675.2180; 2.52675.7100; 2675.7110; 2675.7120; 2675.7130; 2675.7140. 2.6May 4, 2009 2.7The Honorable Margaret Anderson Kelliher 2.8Speaker of the House of Representatives 2.9The Honorable James P. Metzen 2.10President of the Senate 2.11We, the undersigned conferees for H. F. No. 2123 report that we have agreed upon 2.12the items in dispute and recommend as follows: 2.13That the Senate recede from its amendment and that H. F. No. 2123 be further 2.14amended as follows: 2.15Delete everything after the enacting clause and insert: 2.16"ARTICLE 1 2.17ENVIRONMENT AND NATURAL RESOURCES FINANCE 2.18 Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end 2.19     new text begin The amounts shown in this section summarize direct appropriations, by fund, made new text end 2.20 new text begin in this article. new text end 2.21 new text begin 2010 new text end new text begin 2011 new text end new text begin Total new text end 2.22 new text begin General new text end new text begin $ new text end new text begin 112,820,000 new text end new text begin $ new text end new text begin 111,945,000 new text end new text begin $ new text end new text begin 224,765,000 new text end 2.23 2.24 new text begin State Government Special new text end new text begin Revenue new text end new text begin 48,000 new text end new text begin 48,000 new text end new text begin 96,000 new text end 2.25 new text begin Environmental new text end new text begin 69,064,000 new text end new text begin 69,188,000 new text end new text begin 138,252,000 new text end 2.26 new text begin Natural Resources new text end new text begin 82,010,000 new text end new text begin 80,910,000 new text end new text begin 162,920,000 new text end 2.27 new text begin Game and Fish new text end new text begin 94,312,000 new text end new text begin 93,912,000 new text end new text begin 188,224,000 new text end 2.28 new text begin Remediation new text end new text begin 11,186,000 new text end new text begin 11,186,000 new text end new text begin 22,372,000 new text end 2.29 new text begin Permanent School new text end new text begin 200,000 new text end new text begin 200,000 new text end new text begin 400,000 new text end 2.30 new text begin Total new text end new text begin $ new text end new text begin 369,640,000 new text end new text begin $ new text end new text begin 367,389,000 new text end new text begin $ new text end new text begin 737,029,000 new text end 2.31 Sec. 2. new text begin ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS. new text end 2.32     new text begin The sums shown in the columns marked "Appropriations" are appropriated to the new text end 2.33 new text begin agencies and for the purposes specified in this article. The appropriations are from the new text end 2.34 new text begin general fund, or another named fund, and are available for the fiscal years indicated new text end 3.1 new text begin for each purpose. The figures "2010" and "2011" used in this article mean that the new text end 3.2 new text begin appropriations listed under them are available for the fiscal year ending June 30, 2010, or new text end 3.3 new text begin June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal new text end 3.4 new text begin year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal new text end 3.5 new text begin year ending June 30, 2009, are effective the day following final enactment. new text end 3.6 new text begin APPROPRIATIONS new text end 3.7 new text begin Available for the Year new text end 3.8 new text begin Ending June 30 new text end 3.9 new text begin 2010 new text end new text begin 2011 new text end 3.10 Sec. 3. new text begin POLLUTION CONTROL AGENCY new text end 3.11 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 90,969,000 new text end new text begin $ new text end new text begin 90,493,000 new text end 3.12 new text begin Appropriations by Fund new text end 3.13 new text begin 2010 new text end new text begin 2011 new text end 3.14 new text begin General new text end new text begin 10,771,000 new text end new text begin 10,171,000 new text end 3.15 3.16 new text begin State Government new text end new text begin Special Revenue new text end new text begin 48,000 new text end new text begin 48,000 new text end 3.17 new text begin Environmental new text end new text begin 69,064,000 new text end new text begin 69,188,000 new text end 3.18 new text begin Remediation new text end new text begin 11,086,000 new text end new text begin 11,086,000 new text end 3.19 new text begin The amounts that may be spent for each new text end 3.20 new text begin purpose are specified in the following new text end 3.21 new text begin subdivisions. new text end 3.22 new text begin The commissioner shall require the chief new text end 3.23 new text begin financial officer or other financial staff to new text end 3.24 new text begin display the agency's budget on the agency's new text end 3.25 new text begin Web site in a manner that will allow citizens new text end 3.26 new text begin to understand more easily the value they are new text end 3.27 new text begin getting for their money. The agency must new text end 3.28 new text begin have an air permit and regulatory account, new text end 3.29 new text begin water permit and regulatory account, and new text end 3.30 new text begin solid waste permit and regulatory account to new text end 3.31 new text begin track revenues and expenses. new text end 4.1 new text begin By October 1, 2010 and 2011, the new text end 4.2 new text begin commissioner shall submit a report to the new text end 4.3 new text begin chairs of the legislative committees with new text end 4.4 new text begin primary jurisdiction over the environment new text end 4.5 new text begin and natural resources policy and finance new text end 4.6 new text begin that includes the number of environmental new text end 4.7 new text begin assessment worksheets completed in the new text end 4.8 new text begin previous fiscal year, the total number of new text end 4.9 new text begin staff hours spent on those environmental new text end 4.10 new text begin assessment worksheets, and the average and new text end 4.11 new text begin median number of hours spent per completed new text end 4.12 new text begin environmental assessment worksheet. new text end 4.13 new text begin Fee rules adopted by the agency during fiscal new text end 4.14 new text begin year 2010 are effective retroactively on July new text end 4.15 new text begin 1, 2009. new text end 4.16 new text begin A recipient of a grant funded by an new text end 4.17 new text begin appropriation under this section shall display new text end 4.18 new text begin on its Web site detailed information on new text end 4.19 new text begin the expenditure of the grant funds, and new text end 4.20 new text begin measurable outcomes as a result of the new text end 4.21 new text begin expenditure of funds, and submit this new text end 4.22 new text begin information to the agency by June 30 each new text end 4.23 new text begin year. A recipient without an active Web site new text end 4.24 new text begin shall report to the agency by June 30 each new text end 4.25 new text begin year detailed information on the expenditure new text end 4.26 new text begin of the grant funds, and measurable outcomes new text end 4.27 new text begin as a result of the expenditure of funds. The new text end 4.28 new text begin commissioner shall display the information new text end 4.29 new text begin received by recipients under this paragraph new text end 4.30 new text begin on the agency's Web site. new text end 4.31 new text begin Subd. 2. new text end new text begin Water new text end new text begin 33,867,000 new text end new text begin 33,267,000 new text end 4.32 new text begin Appropriations by Fund new text end 4.33 new text begin General new text end new text begin 8,148,000 new text end new text begin 7,548,000 new text end 5.1 5.2 new text begin State Government new text end new text begin Special Revenue new text end new text begin 48,000 new text end new text begin 48,000 new text end 5.3 new text begin Environmental new text end new text begin 25,671,000 new text end new text begin 25,671,000 new text end 5.4 new text begin $2,348,000 the first year and $2,348,000 new text end 5.5 new text begin the second year are for the clean water new text end 5.6 new text begin partnership program. Priority shall be new text end 5.7 new text begin given to projects preventing impairments new text end 5.8 new text begin and degradation of lakes, rivers, streams, new text end 5.9 new text begin and groundwater according to Minnesota new text end 5.10 new text begin Statutes, section 114D.20, subdivision 2, new text end 5.11 new text begin clause (4). Funds from this appropriation new text end 5.12 new text begin may not be used to purchase or use pesticides new text end 5.13 new text begin suspected by current science of being new text end 5.14 new text begin endocrine disruptors. To the extent possible, new text end 5.15 new text begin with money from this appropriation, a new text end 5.16 new text begin person must plant vegetation or sow seed new text end 5.17 new text begin only of ecotypes native to Minnesota, and new text end 5.18 new text begin preferably of the local ecotype, using a high new text end 5.19 new text begin diversity of species originating from as new text end 5.20 new text begin close to the restoration site as possible, and new text end 5.21 new text begin protect existing native prairies from genetic new text end 5.22 new text begin contamination. Any balance remaining in the new text end 5.23 new text begin first year does not cancel and is available for new text end 5.24 new text begin the second year. new text end 5.25 new text begin $2,164,000 the first year and $2,164,000 the new text end 5.26 new text begin second year must be distributed as grants to new text end 5.27 new text begin delegated counties to administer the county new text end 5.28 new text begin feedlot program under new Minnesota new text end 5.29 new text begin Statutes, section 116.0711, subdivisions 2 new text end 5.30 new text begin and 3. Any money remaining after the first new text end 5.31 new text begin year is available for the second year. new text end 5.32 new text begin $310,000 the first year and $310,000 the new text end 5.33 new text begin second year are for community technical new text end 5.34 new text begin assistance and education, including grants new text end 6.1 new text begin and technical assistance to communities for new text end 6.2 new text begin local and basinwide water quality protection. new text end 6.3 new text begin $100,000 the first year is for grants to new text end 6.4 new text begin local units of government to implement new text end 6.5 new text begin cost-effective projects to control runoff, new text end 6.6 new text begin prevent erosion, and provide ditch new text end 6.7 new text begin stabilization, in order to protect water quality new text end 6.8 new text begin in lakes, rivers, and streams and to protect new text end 6.9 new text begin groundwater from degradation. This is a new text end 6.10 new text begin onetime appropriation. new text end 6.11 new text begin $350,000 the first year and $350,000 the new text end 6.12 new text begin second year are for challenge grants to new text end 6.13 new text begin counties for subsurface sewage treatment new text end 6.14 new text begin system (SSTS) inventories that will new text end 6.15 new text begin determine the number of systems that are new text end 6.16 new text begin failing or that pose an imminent health threat new text end 6.17 new text begin and are located on riparian land or a lake new text end 6.18 new text begin or near wetlands or other sensitive waters. new text end 6.19 new text begin Counties must provide a nonstate match of new text end 6.20 new text begin at least 50 percent that may be in cash or in new text end 6.21 new text begin kind. The commissioner shall, by county, new text end 6.22 new text begin report: the number of systems evaluated, the new text end 6.23 new text begin number of systems determined to be failing new text end 6.24 new text begin or that pose an imminent health threat located new text end 6.25 new text begin on riparian land or a lake or near wetlands or new text end 6.26 new text begin other sensitive waters, the number replaced new text end 6.27 new text begin or soon to be replaced, and the gallons of new text end 6.28 new text begin sewage that are prevented from threatening new text end 6.29 new text begin waters. The commissioner shall develop new text end 6.30 new text begin recommendations and a plan for directly new text end 6.31 new text begin or indirectly inspecting and providing an new text end 6.32 new text begin inventory for all subsurface sewage treatment new text end 6.33 new text begin systems and submit a report to the chairs of new text end 6.34 new text begin the legislative committees having primary new text end 6.35 new text begin jurisdiction over environment and natural new text end 6.36 new text begin resources policy and finance no later than new text end 7.1 new text begin September 15, 2010. Direct inspection new text end 7.2 new text begin methods shall include field verification of new text end 7.3 new text begin each SSTS on riparian land or a lake or new text end 7.4 new text begin near wetlands or other sensitive waters to new text end 7.5 new text begin determine the owner, location, and which new text end 7.6 new text begin systems are failing or are an imminent new text end 7.7 new text begin health threat. Indirect inspection methods new text end 7.8 new text begin may include census-type data collection to new text end 7.9 new text begin determine the owner and location of each new text end 7.10 new text begin SSTS in the remaining portion of each new text end 7.11 new text begin county. An SSTS with a valid certificate of new text end 7.12 new text begin compliance may be considered inventoried new text end 7.13 new text begin without further work. This is a onetime new text end 7.14 new text begin appropriation. new text end 7.15 new text begin $375,000 the first year and $375,000 the new text end 7.16 new text begin second year are for subsurface sewage new text end 7.17 new text begin treatment system (SSTS) administration and new text end 7.18 new text begin grants. Of this amount, $80,000 each year new text end 7.19 new text begin is for assistance to counties through grants new text end 7.20 new text begin for SSTS program administration. Any new text end 7.21 new text begin unexpended balance in the first year does not new text end 7.22 new text begin cancel but is available in the second year. new text end 7.23 new text begin $740,000 the first year and $740,000 the new text end 7.24 new text begin second year are from the environmental new text end 7.25 new text begin fund to address the need for continued new text end 7.26 new text begin increased activity in the areas of new new text end 7.27 new text begin technology review, technical assistance new text end 7.28 new text begin for local governments, and enforcement new text end 7.29 new text begin under Minnesota Statutes, sections 115.55 new text end 7.30 new text begin to 115.58, and to complete the requirements new text end 7.31 new text begin of Laws 2003, chapter 128, article 1, section new text end 7.32 new text begin 165. Of this amount, $48,000 each year is for new text end 7.33 new text begin administration of individual septic tank fees, new text end 7.34 new text begin as provided in this article. new text end 8.1 new text begin $1,250,000 the first year and $1,250,000 new text end 8.2 new text begin the second year are for assessment and new text end 8.3 new text begin monitoring of lakes, rivers, and streams. new text end 8.4 new text begin $100,000 the first year and $100,000 the new text end 8.5 new text begin second year are for a grant to the Red River new text end 8.6 new text begin Watershed Management Board to enhance new text end 8.7 new text begin and expand existing river watch activities in new text end 8.8 new text begin the Red River of the North and shall enhance new text end 8.9 new text begin student understanding of the causes of new text end 8.10 new text begin flooding, flood prevention, and the impacts new text end 8.11 new text begin of flood waters on land and water resources. new text end 8.12 new text begin The Red River Watershed Management new text end 8.13 new text begin Board shall provide a report that includes new text end 8.14 new text begin formal evaluation results from the river new text end 8.15 new text begin watch program to the commissioners of new text end 8.16 new text begin education and the Pollution Control Agency new text end 8.17 new text begin and to the legislative committees with new text end 8.18 new text begin jurisdiction over the environment and natural new text end 8.19 new text begin resources policy and finance and K-12 policy new text end 8.20 new text begin and finance by February 15, 2011. This is a new text end 8.21 new text begin onetime appropriation. new text end 8.22 new text begin $7,540,000 the first year and $7,540,000 new text end 8.23 new text begin the second year are from the environmental new text end 8.24 new text begin fund for completion of 20 percent of the new text end 8.25 new text begin needed statewide assessments of surface new text end 8.26 new text begin water quality and trends. new text end 8.27 new text begin $500,000 the first year is to develop minimal new text end 8.28 new text begin impact design standards for urban storm new text end 8.29 new text begin water runoff. This is a onetime appropriation new text end 8.30 new text begin and is available until June 30, 2011. The new text end 8.31 new text begin commissioner shall report to the chairs and new text end 8.32 new text begin ranking minority members of the legislative new text end 8.33 new text begin committees and divisions having primary new text end 8.34 new text begin jurisdiction over environment and natural new text end 8.35 new text begin resources policy and finance no later than new text end 9.1 new text begin January 12, 2011, regarding the expenditure new text end 9.2 new text begin of this appropriation. new text end 9.3 new text begin By October 1, 2009 and 2010, the new text end 9.4 new text begin commissioner shall report to the chairs new text end 9.5 new text begin of the legislative committees having new text end 9.6 new text begin primary jurisdiction over environment and new text end 9.7 new text begin natural resources policy and finance on the new text end 9.8 new text begin effectiveness of enforcement actions in the new text end 9.9 new text begin previous fiscal year in preventing water new text end 9.10 new text begin pollution. new text end 9.11 new text begin The commissioner shall continue the new text end 9.12 new text begin rulemaking process to better align water new text end 9.13 new text begin permit fee revenue for fiscal years 2010, new text end 9.14 new text begin 2011, 2012, and 2013 with the cost of issuing new text end 9.15 new text begin permits, including environmental review. new text end 9.16 new text begin Notwithstanding Minnesota Statutes, section new text end 9.17 new text begin 16A.28, the appropriations encumbered on or new text end 9.18 new text begin before June 30, 2011, as grants or contracts new text end 9.19 new text begin for clean water partnership, SSTS's, surface new text end 9.20 new text begin water and groundwater assessments, total new text end 9.21 new text begin maximum daily loads, stormwater, and local new text end 9.22 new text begin basinwide water quality protection in this new text end 9.23 new text begin subdivision are available until June 30, 2013. new text end 9.24 new text begin Subd. 3. new text end new text begin Air new text end new text begin 11,871,000 new text end new text begin 12,131,000 new text end 9.25 new text begin Appropriations by Fund new text end 9.26 new text begin Environmental new text end new text begin 11,871,000 new text end new text begin 12,131,000 new text end 9.27 new text begin Up to $150,000 the first year and $150,000 new text end 9.28 new text begin the second year may be transferred from the new text end 9.29 new text begin environmental fund to the small business new text end 9.30 new text begin environmental improvement loan account new text end 9.31 new text begin established in Minnesota Statutes, section new text end 9.32 new text begin 116.993. new text end 10.1 new text begin $200,000 the first year and $200,000 the new text end 10.2 new text begin second year are from the environmental fund new text end 10.3 new text begin for a monitoring program under Minnesota new text end 10.4 new text begin Statutes, section 116.454. new text end 10.5 new text begin $125,000 the first year and $125,000 the new text end 10.6 new text begin second year are from the environmental fund new text end 10.7 new text begin for monitoring ambient air for hazardous new text end 10.8 new text begin pollutants in the metropolitan area. new text end 10.9 new text begin An agency report on the level of fine new text end 10.10 new text begin particulate matter in Minnesota's air must new text end 10.11 new text begin compare measured levels with a 24-hour new text end 10.12 new text begin PM 2.5 standard of 13 to 14 micrograms new text end 10.13 new text begin per cubic meter and an annual PM 2.5 new text end 10.14 new text begin standard of 30 to 35 micrograms per cubic new text end 10.15 new text begin meter, as recommended by the Particulate new text end 10.16 new text begin Matter Review Panel of the Environmental new text end 10.17 new text begin Protection Agency's Clean Air Scientific new text end 10.18 new text begin Advisory Committee in its June 2005 report, new text end 10.19 new text begin EPA's Review of the National Ambient Air new text end 10.20 new text begin Quality Standards for Particulate Matter new text end 10.21 new text begin (Second Draft PM Staff Paper, January new text end 10.22 new text begin 2005). new text end 10.23 new text begin $700,000 the first year and $700,000 the new text end 10.24 new text begin second year are from the environmental new text end 10.25 new text begin fund for an air emissions database, including new text end 10.26 new text begin monitoring greenhouse gas emissions. new text end 10.27 new text begin The commissioner shall continue the new text end 10.28 new text begin rulemaking process to better align air quality new text end 10.29 new text begin fee revenue for fiscal years 2010, 2011, 2012, new text end 10.30 new text begin and 2013 with the cost of issuing permits, new text end 10.31 new text begin including environmental review. new text end 10.32 new text begin Subd. 4. new text end new text begin Land new text end new text begin 18,467,000 new text end new text begin 18,467,000 new text end 11.1 new text begin Appropriations by Fund new text end 11.2 new text begin General new text end new text begin 465,000 new text end new text begin 465,000 new text end 11.3 new text begin Environmental new text end new text begin 6,916,000 new text end new text begin 6,916,000 new text end 11.4 new text begin Remediation new text end new text begin 11,086,000 new text end new text begin 11,086,000 new text end 11.5 new text begin All money for environmental response, new text end 11.6 new text begin compensation, and compliance in the new text end 11.7 new text begin remediation fund not otherwise appropriated new text end 11.8 new text begin is appropriated to the commissioners of the new text end 11.9 new text begin Pollution Control Agency and agriculture new text end 11.10 new text begin for purposes of Minnesota Statutes, section new text end 11.11 new text begin 115B.20, subdivision 2, clauses (1), (2), new text end 11.12 new text begin (3), (6), and (7). At the beginning of each new text end 11.13 new text begin fiscal year, the two commissioners shall new text end 11.14 new text begin jointly submit an annual spending plan to new text end 11.15 new text begin the commissioner of finance that maximizes new text end 11.16 new text begin the utilization of resources and appropriately new text end 11.17 new text begin allocates the money between the two new text end 11.18 new text begin departments. This appropriation is available new text end 11.19 new text begin until June 20, 2011. new text end 11.20 new text begin $3,616,000 the first year and $3,616,000 the new text end 11.21 new text begin second year are from the petroleum tank fund new text end 11.22 new text begin to be transferred to the remediation fund for new text end 11.23 new text begin purposes of the leaking underground storage new text end 11.24 new text begin tank program to protect the land. new text end 11.25 new text begin $252,000 the first year and $252,000 the new text end 11.26 new text begin second year are from the remediation fund to new text end 11.27 new text begin be transferred to the Department of Health for new text end 11.28 new text begin private water supply monitoring and health new text end 11.29 new text begin assessment costs in areas contaminated new text end 11.30 new text begin by unpermitted mixed municipal solid new text end 11.31 new text begin waste disposal facilities and drinking water new text end 11.32 new text begin advisories and public information activities new text end 11.33 new text begin for areas contaminated by hazardous releases. new text end 12.1 new text begin $500,000 each year is for environmental new text end 12.2 new text begin health tracking and biomonitoring of a new text end 12.3 new text begin representative sample of the population new text end 12.4 new text begin including indigenous people and people of new text end 12.5 new text begin color. Of this amount, $450,000 each year is new text end 12.6 new text begin for transfer to the Department of Health. new text end 12.7 12.8 new text begin Subd. 5. new text end new text begin Environmental Assistance and new text end new text begin Cross-Media new text end new text begin 25,420,000 new text end new text begin 25,284,000 new text end 12.9 new text begin Appropriations by Fund new text end 12.10 new text begin General new text end new text begin 814,000 new text end new text begin 814,000 new text end 12.11 new text begin Environmental new text end new text begin 24,606,000 new text end new text begin 24,470,000 new text end 12.12 new text begin $14,250,000 each year is from the new text end 12.13 new text begin environmental fund for SCORE block grants new text end 12.14 new text begin to counties. new text end 12.15 new text begin $250,000 each year is from the environmental new text end 12.16 new text begin fund to administer the composting new text end 12.17 new text begin grant program established under new new text end 12.18 new text begin Minnesota Statutes, section 115A.559. The new text end 12.19 new text begin appropriation is added to the agency base new text end 12.20 new text begin and available until June 30, 2011. new text end 12.21 new text begin By January 15, 2012, the commissioner shall new text end 12.22 new text begin report to the legislative committees with new text end 12.23 new text begin jurisdiction over environment and natural new text end 12.24 new text begin resources policy on: new text end 12.25 new text begin (1) the mixed municipal solid waste diversion new text end 12.26 new text begin rates accomplished by the grant program new text end 12.27 new text begin under new Minnesota Statutes, section new text end 12.28 new text begin 115A.559; new text end 12.29 new text begin (2) participants in the grant program and the new text end 12.30 new text begin programs developed with grant funds; and new text end 12.31 new text begin (3) the potential for new permanent programs new text end 12.32 new text begin based on results of projects funded with new text end 13.1 new text begin grants issued under new Minnesota Statutes, new text end 13.2 new text begin section 115A.559. new text end 13.3 new text begin $225,000 the first year and $89,000 the new text end 13.4 new text begin second year are from the environmental new text end 13.5 new text begin fund for duties related to harmful chemicals new text end 13.6 new text begin in products under new Minnesota Statutes, new text end 13.7 new text begin sections 116.9401 to 116.9407. Of this new text end 13.8 new text begin amount, $133,000 the first year and $57,000 new text end 13.9 new text begin the second year are for transfer to the new text end 13.10 new text begin Department of Health. new text end 13.11 new text begin $119,000 the first year and $119,000 the new text end 13.12 new text begin second year are from the environmental new text end 13.13 new text begin fund for environmental assistance grants new text end 13.14 new text begin or loans under Minnesota Statutes, section new text end 13.15 new text begin 115A.0716. Any unencumbered grant and new text end 13.16 new text begin loan balances in the first year do not cancel new text end 13.17 new text begin but are available for grants and loans in the new text end 13.18 new text begin second year. new text end 13.19 new text begin All money deposited in the environmental new text end 13.20 new text begin fund for the metropolitan solid waste new text end 13.21 new text begin landfill fee in accordance with Minnesota new text end 13.22 new text begin Statutes, section 473.843, and not otherwise new text end 13.23 new text begin appropriated, is appropriated for the purposes new text end 13.24 new text begin of Minnesota Statutes, section 473.844. new text end 13.25 new text begin Notwithstanding Minnesota Statutes, section new text end 13.26 new text begin 16A.28, the appropriations encumbered on new text end 13.27 new text begin or before June 30, 2011, as contracts or new text end 13.28 new text begin grants for surface water and groundwater new text end 13.29 new text begin assessments; environmental assistance new text end 13.30 new text begin awarded under Minnesota Statutes, section new text end 13.31 new text begin 115A.0716; technical and research assistance new text end 13.32 new text begin under Minnesota Statutes, section 115A.152; new text end 13.33 new text begin technical assistance under Minnesota new text end 13.34 new text begin Statutes, section 115A.52; and pollution new text end 13.35 new text begin prevention assistance under Minnesota new text end 14.1 new text begin Statutes, section 115D.04, are available until new text end 14.2 new text begin June 30, 2013. new text end 14.3 new text begin Before the governor makes budget new text end 14.4 new text begin recommendations to the legislature in 2011, new text end 14.5 new text begin the commissioner must report on revenues new text end 14.6 new text begin received and expenditures made under new text end 14.7 new text begin Minnesota Statutes, section 115A.1314, new text end 14.8 new text begin subdivision 2, during fiscal years 2010 new text end 14.9 new text begin and 2011 to determine if fees collected new text end 14.10 new text begin are covering the costs of the program and new text end 14.11 new text begin request that the governor recommend a direct new text end 14.12 new text begin appropriation for the purposes of that section. new text end 14.13 new text begin Subd. 6. new text end new text begin Administrative Support new text end new text begin 1,344,000 new text end new text begin 1,344,000 new text end 14.14 new text begin The commissioner shall transfer $40,000,000 new text end 14.15 new text begin from the environmental fund to the new text end 14.16 new text begin remediation fund for the purposes of the new text end 14.17 new text begin remediation fund under Minnesota Statutes, new text end 14.18 new text begin section 116.155, subdivision 2. new text end 14.19 Sec. 4. new text begin NATURAL RESOURCES new text end 14.20 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 245,313,000 new text end new text begin $ new text end new text begin 243,813,000 new text end 14.21 new text begin Appropriations by Fund new text end 14.22 new text begin 2010 new text end new text begin 2011 new text end 14.23 new text begin General new text end new text begin 74,411,000 new text end new text begin 74,411,000 new text end 14.24 new text begin Natural Resources new text end new text begin 76,290,000 new text end new text begin 75,190,000 new text end 14.25 new text begin Game and Fish new text end new text begin 94,312,000 new text end new text begin 93,912,000 new text end 14.26 new text begin Remediation new text end new text begin 100,000 new text end new text begin 100,000 new text end 14.27 new text begin Permanent School new text end new text begin 200,000 new text end new text begin 200,000 new text end 14.28 new text begin The amounts that may be spent for each new text end 14.29 new text begin purpose are specified in the following new text end 14.30 new text begin subdivisions. new text end 15.1 new text begin To the extent possible, a person conducting new text end 15.2 new text begin restoration with money appropriated in this new text end 15.3 new text begin section must plant vegetation or sow seed new text end 15.4 new text begin only of ecotypes native to Minnesota, and new text end 15.5 new text begin preferably of the local ecotype, using a high new text end 15.6 new text begin diversity of species originating from as new text end 15.7 new text begin close to the restoration site as possible, and new text end 15.8 new text begin protect existing native prairies from genetic new text end 15.9 new text begin contamination. new text end 15.10 new text begin A recipient of a grant funded by an new text end 15.11 new text begin appropriation under this section shall display new text end 15.12 new text begin on its Web site detailed information on new text end 15.13 new text begin the expenditure of the grant funds, and new text end 15.14 new text begin measurable outcomes as a result of the new text end 15.15 new text begin expenditure of funds, and submit this new text end 15.16 new text begin information to the department by June 30 new text end 15.17 new text begin each year. A recipient without an active new text end 15.18 new text begin Web site shall report to the department by new text end 15.19 new text begin June 30 each year detailed information on new text end 15.20 new text begin the expenditure of the grant funds, and new text end 15.21 new text begin measurable outcomes as a result of the new text end 15.22 new text begin expenditure of funds. The commissioner new text end 15.23 new text begin shall display the information received by new text end 15.24 new text begin recipients under this paragraph on the new text end 15.25 new text begin department's Web site. new text end 15.26 new text begin The commissioner shall require the chief new text end 15.27 new text begin financial officer or other financial staff new text end 15.28 new text begin to display the department's budget on the new text end 15.29 new text begin department's Web site in a manner that will new text end 15.30 new text begin allow citizens to easily understand the value new text end 15.31 new text begin they are getting for their money. new text end 15.32 15.33 new text begin Subd. 2. new text end new text begin Land and Mineral Resources new text end new text begin Management new text end new text begin 10,398,000 new text end new text begin 10,398,000 new text end 16.1 new text begin Appropriations by Fund new text end 16.2 new text begin General new text end new text begin 3,351,000 new text end new text begin 3,351,000 new text end 16.3 new text begin Natural Resources new text end new text begin 5,461,000 new text end new text begin 5,461,000 new text end 16.4 new text begin Game and Fish new text end new text begin 1,386,000 new text end new text begin 1,386,000 new text end 16.5 new text begin Permanent School new text end new text begin 200,000 new text end new text begin 200,000 new text end 16.6 new text begin $1,202,000 the first year and $1,202,000 new text end 16.7 new text begin the second year are from the mining new text end 16.8 new text begin administration account in the natural new text end 16.9 new text begin resources fund to cover the costs associated new text end 16.10 new text begin with issuing mining permits. new text end 16.11 new text begin $612,000 each year is from the dedicated new text end 16.12 new text begin receipts account in the natural resources fund new text end 16.13 new text begin to cover the costs associated with issuing new text end 16.14 new text begin licenses for land and water crossings and new text end 16.15 new text begin road easements. new text end 16.16 new text begin $351,000 the first year and $351,000 the new text end 16.17 new text begin second year are for iron ore cooperative new text end 16.18 new text begin research. Of this amount, $200,000 each year new text end 16.19 new text begin is from the minerals management account new text end 16.20 new text begin in the natural resources fund. $175,500 the new text end 16.21 new text begin first year and $175,500 the second year are new text end 16.22 new text begin available only as matched by $1 of nonstate new text end 16.23 new text begin money for each $1 of state money. The new text end 16.24 new text begin match may be cash or in-kind. new text end 16.25 new text begin $86,000 the first year and $86,000 the new text end 16.26 new text begin second year are for minerals cooperative new text end 16.27 new text begin environmental research, of which $43,000 new text end 16.28 new text begin the first year and $43,000 the second year are new text end 16.29 new text begin available only as matched by $1 of nonstate new text end 16.30 new text begin money for each $1 of state money. The new text end 16.31 new text begin match may be cash or in-kind. new text end 16.32 new text begin $2,696,000 the first year and $2,696,000 new text end 16.33 new text begin the second year are from the minerals new text end 17.1 new text begin management account in the natural resources new text end 17.2 new text begin fund for use as provided in Minnesota new text end 17.3 new text begin Statutes, section 93.2236, paragraph (c), new text end 17.4 new text begin for mineral resource management, projects new text end 17.5 new text begin to enhance future mineral income, and new text end 17.6 new text begin projects to promote new mineral resource new text end 17.7 new text begin opportunities. new text end 17.8 new text begin $200,000 the first year and $200,000 the new text end 17.9 new text begin second year are from the state forest suspense new text end 17.10 new text begin account in the permanent school fund to new text end 17.11 new text begin accelerate land exchanges, land sales, and new text end 17.12 new text begin commercial leasing of school trust lands and new text end 17.13 new text begin to identify, evaluate, and lease construction new text end 17.14 new text begin aggregate located on school trust lands. This new text end 17.15 new text begin appropriation is to be used for securing new text end 17.16 new text begin maximum long-term economic return new text end 17.17 new text begin from the school trust lands consistent with new text end 17.18 new text begin fiduciary responsibilities and sound natural new text end 17.19 new text begin resources conservation and management new text end 17.20 new text begin principles. new text end 17.21 new text begin Subd. 3. new text end new text begin Water Resources Management new text end new text begin 11,732,000 new text end new text begin 11,732,000 new text end 17.22 new text begin Appropriations by Fund new text end 17.23 new text begin General new text end new text begin 11,452,000 new text end new text begin 11,452,000 new text end 17.24 new text begin Natural Resources new text end new text begin 280,000 new text end new text begin 280,000 new text end 17.25 new text begin By January 15, 2010, the commissioner new text end 17.26 new text begin shall submit a report evaluating and new text end 17.27 new text begin recommending options to provide for the new text end 17.28 new text begin long-term protection of the state's surface new text end 17.29 new text begin water and groundwater resources and new text end 17.30 new text begin the funding of programs to provide this new text end 17.31 new text begin protection. new text end 17.32 new text begin $275,000 the first year and $275,000 the new text end 17.33 new text begin second year are for grants for up to 50 new text end 17.34 new text begin percent of the cost of implementation of new text end 18.1 new text begin the Red River mediation agreement. The new text end 18.2 new text begin commissioner shall submit a report to the new text end 18.3 new text begin chairs of the legislative committees having new text end 18.4 new text begin primary jurisdiction over environment and new text end 18.5 new text begin natural resources policy and finance on the new text end 18.6 new text begin accomplishments achieved with the grants new text end 18.7 new text begin by January 15, 2012. new text end 18.8 new text begin $60,000 the first year and $60,000 the new text end 18.9 new text begin second year are for a grant to the Mississippi new text end 18.10 new text begin Headwaters Board for up to 50 percent of new text end 18.11 new text begin the cost of implementing the comprehensive new text end 18.12 new text begin plan for the upper Mississippi within areas new text end 18.13 new text begin under the board's jurisdiction. new text end 18.14 new text begin $5,000 the first year and $5,000 the second new text end 18.15 new text begin year are for payment to the Leech Lake Band new text end 18.16 new text begin of Chippewa Indians to implement the band's new text end 18.17 new text begin portion of the comprehensive plan for the new text end 18.18 new text begin upper Mississippi. new text end 18.19 new text begin $125,000 the first year and $125,000 the new text end 18.20 new text begin second year are for the construction of ring new text end 18.21 new text begin dikes under Minnesota Statutes, section new text end 18.22 new text begin 103F.161. The ring dikes may be publicly new text end 18.23 new text begin or privately owned. If the appropriation in new text end 18.24 new text begin either year is insufficient, the appropriation new text end 18.25 new text begin in the other year is available for it. new text end 18.26 new text begin By October 1, 2009, the commissioner shall new text end 18.27 new text begin develop a plan for the development of an new text end 18.28 new text begin adequate groundwater level monitoring new text end 18.29 new text begin network of wells in the 11-county new text end 18.30 new text begin metropolitan area. The commissioner, new text end 18.31 new text begin working with the Metropolitan Council, new text end 18.32 new text begin the Department of Homeland Security, and new text end 18.33 new text begin the commissioner of the Pollution Control new text end 18.34 new text begin Agency, shall design the network so that new text end 18.35 new text begin the wells can be used to identify threats to new text end 19.1 new text begin groundwater quality and institute practices to new text end 19.2 new text begin protect the groundwater from degradation. new text end 19.3 new text begin The network must be sufficient to ensure new text end 19.4 new text begin that water use in the metropolitan area new text end 19.5 new text begin does not harm ecosystems, degrade water new text end 19.6 new text begin quality, or compromise the ability of future new text end 19.7 new text begin generations to meet their own needs. The new text end 19.8 new text begin plan should include recommendations on new text end 19.9 new text begin the necessary payment rates for users of the new text end 19.10 new text begin system expressed in cents per gallon for well new text end 19.11 new text begin drilling, operation, and maintenance. new text end 19.12 new text begin Subd. 4. new text end new text begin Forest Management new text end new text begin 39,609,000 new text end new text begin 38,259,000 new text end 19.13 new text begin Appropriations by Fund new text end 19.14 new text begin General new text end new text begin 25,952,000 new text end new text begin 25,952,000 new text end 19.15 new text begin Natural Resources new text end new text begin 12,193,000 new text end new text begin 11,093,000 new text end 19.16 new text begin Game and Fish new text end new text begin 1,464,000 new text end new text begin 1,214,000 new text end 19.17 new text begin $2,000,000 each year is to maintain forest new text end 19.18 new text begin management operations. This is a onetime new text end 19.19 new text begin appropriation. new text end 19.20 new text begin $1,200,000 the first year and $950,000 new text end 19.21 new text begin the second year are from the heritage new text end 19.22 new text begin enhancement account in the game and fish new text end 19.23 new text begin fund to maintain and expand the ecological new text end 19.24 new text begin classification system program on state forest new text end 19.25 new text begin lands and prevent the introduction and spread new text end 19.26 new text begin of invasive species on state lands. This is a new text end 19.27 new text begin onetime appropriation. new text end 19.28 new text begin $7,217,000 the first year and $7,217,000 new text end 19.29 new text begin the second year are for prevention, new text end 19.30 new text begin presuppression, and suppression costs of new text end 19.31 new text begin emergency firefighting and other costs new text end 19.32 new text begin incurred under Minnesota Statutes, section new text end 19.33 new text begin 88.12. If the appropriation for either new text end 20.1 new text begin year is insufficient to cover all costs of new text end 20.2 new text begin presuppression and suppression, the amount new text end 20.3 new text begin necessary to pay for these costs during the new text end 20.4 new text begin biennium is appropriated from the general new text end 20.5 new text begin fund. new text end 20.6 new text begin By January 15 of each year, the commissioner new text end 20.7 new text begin of natural resources shall submit a report to new text end 20.8 new text begin the chairs and ranking minority members new text end 20.9 new text begin of the house and senate committees new text end 20.10 new text begin and divisions having jurisdiction over new text end 20.11 new text begin environment and natural resources finance, new text end 20.12 new text begin identifying all firefighting costs incurred new text end 20.13 new text begin and reimbursements received in the prior new text end 20.14 new text begin fiscal year. These appropriations may new text end 20.15 new text begin not be transferred. Any reimbursement new text end 20.16 new text begin of firefighting expenditures made to the new text end 20.17 new text begin commissioner from any source other than new text end 20.18 new text begin federal mobilizations shall be deposited into new text end 20.19 new text begin the general fund. new text end 20.20 new text begin $12,193,000 the first year and $11,093,000 new text end 20.21 new text begin the second year are from the forest new text end 20.22 new text begin management investment account in the new text end 20.23 new text begin natural resources fund for only the purposes new text end 20.24 new text begin specified in Minnesota Statutes, section new text end 20.25 new text begin , subdivision 2. new text end 20.26 new text begin $780,000 the first year and $780,000 the new text end 20.27 new text begin second year are for the Forest Resources new text end 20.28 new text begin Council for implementation of the new text end 20.29 new text begin Sustainable Forest Resources Act. new text end 20.30 new text begin Subd. 5. new text end new text begin Parks and Trails Management new text end new text begin 67,372,000 new text end new text begin 67,372,000 new text end 20.31 new text begin Appropriations by Fund new text end 20.32 new text begin General new text end new text begin 21,857,000 new text end new text begin 21,857,000 new text end 21.1 new text begin Natural Resources new text end new text begin 43,321,000 new text end new text begin 43,321,000 new text end 21.2 new text begin Game and Fish new text end new text begin 2,194,000 new text end new text begin 2,194,000 new text end 21.3 new text begin $1,175,000 the first year and $1,175,000 the new text end 21.4 new text begin second year are from the water recreation new text end 21.5 new text begin account in the natural resources fund for new text end 21.6 new text begin enhancing public water access facilities. new text end 21.7 new text begin Of this amount, $100,000 is a onetime new text end 21.8 new text begin appropriation to provide downloadable new text end 21.9 new text begin GPS coordinates and river gauge data new text end 21.10 new text begin interpretation. The base appropriation is new text end 21.11 new text begin $1,075,000. new text end 21.12 new text begin The appropriation in Laws 2003, chapter new text end 21.13 new text begin 128, article 1, section 5, subdivision 6, from new text end 21.14 new text begin the water recreation account in the natural new text end 21.15 new text begin resources fund for a cooperative project with new text end 21.16 new text begin the United States Army Corps of Engineers new text end 21.17 new text begin to develop the Mississippi Whitewater Park new text end 21.18 new text begin is available until June 30, 2011. The project new text end 21.19 new text begin must be designed to prevent the spread of new text end 21.20 new text begin aquatic invasive species. new text end 21.21 new text begin $4,371,000 the first year and $4,371,000 the new text end 21.22 new text begin second year are from the natural resources new text end 21.23 new text begin fund for state park and recreation area new text end 21.24 new text begin operations. Of this amount, $375,000 each new text end 21.25 new text begin year is for coordinated activities with Explore new text end 21.26 new text begin Minnesota Tourism. This appropriation is new text end 21.27 new text begin from the revenue deposited in the natural new text end 21.28 new text begin resources fund under Minnesota Statutes, new text end 21.29 new text begin section 297A.94, paragraph (e), clause (2). new text end 21.30 new text begin $8,424,000 the first year and $8,424,000 new text end 21.31 new text begin the second year are from the snowmobile new text end 21.32 new text begin trails and enforcement account in the new text end 21.33 new text begin natural resources fund for the snowmobile new text end 21.34 new text begin grants-in-aid program. This additional new text end 22.1 new text begin money may be used for new grant-in-aid new text end 22.2 new text begin trails. Any unencumbered balance does not new text end 22.3 new text begin cancel at the end of the first year and is new text end 22.4 new text begin available for the second year. new text end 22.5 new text begin $400,000 the first year and $400,000 the new text end 22.6 new text begin second year are from the snowmobile trails new text end 22.7 new text begin and enforcement account in the natural new text end 22.8 new text begin resources fund for operation and maintenance new text end 22.9 new text begin of state trails and increased oversight and new text end 22.10 new text begin training for the grant-in-aid program. This is new text end 22.11 new text begin a onetime appropriation. new text end 22.12 new text begin $1,360,000 the first year and $1,360,000 new text end 22.13 new text begin the second year are from the natural new text end 22.14 new text begin resources fund for the off-highway vehicle new text end 22.15 new text begin grants-in-aid program. Of this amount, new text end 22.16 new text begin $1,110,000 each year is from the all-terrain new text end 22.17 new text begin vehicle account; $150,000 each year is from new text end 22.18 new text begin the off-highway motorcycle account; and new text end 22.19 new text begin $100,000 each year is from the off-road new text end 22.20 new text begin vehicle account. Any unencumbered balance new text end 22.21 new text begin does not cancel at the end of the first year new text end 22.22 new text begin and is available for the second year. new text end 22.23 new text begin $760,000 the first year and $760,000 the new text end 22.24 new text begin second year are from the natural resources new text end 22.25 new text begin fund for state trail operations. This new text end 22.26 new text begin appropriation is from the revenue deposited new text end 22.27 new text begin in the natural resources fund under Minnesota new text end 22.28 new text begin Statutes, section 297A.94, paragraph (e), new text end 22.29 new text begin clause (2). new text end 22.30 new text begin Subd. 6. new text end new text begin Fish and Wildlife Management new text end new text begin 67,574,000 new text end new text begin 67,424,000 new text end 22.31 new text begin Appropriations by Fund new text end 22.32 new text begin General new text end new text begin 1,340,000 new text end new text begin 1,340,000 new text end 23.1 new text begin Natural Resources new text end new text begin 1,976,000 new text end new text begin 1,976,000 new text end 23.2 new text begin Game and Fish new text end new text begin 64,258,000 new text end new text begin 64,108,000 new text end 23.3 new text begin $100,000 the first year and $100,000 the new text end 23.4 new text begin second year are from the nongame wildlife new text end 23.5 new text begin account in the natural resources fund for gray new text end 23.6 new text begin wolf research. new text end 23.7 new text begin $120,000 the first year and $120,000 the new text end 23.8 new text begin second year from the game and fish fund are new text end 23.9 new text begin for gray wolf management. new text end 23.10 new text begin $285,000 the first year and $285,000 the new text end 23.11 new text begin second year are from the walleye stamp new text end 23.12 new text begin account in the game and fish fund for the new text end 23.13 new text begin purposes specified under Minnesota Statutes, new text end 23.14 new text begin section 97A.075, subdivision 6. Of this new text end 23.15 new text begin amount, $25,000 must be spent in the first new text end 23.16 new text begin year to provide signage to each independent new text end 23.17 new text begin licensed dealer for display and promotion of new text end 23.18 new text begin the walleye stamp. new text end 23.19 new text begin $600,000 the first year and $600,000 the new text end 23.20 new text begin second year are to accelerate wildlife health new text end 23.21 new text begin programs. This is a onetime appropriation. new text end 23.22 new text begin $1,860,000 the first year and $1,860,000 the new text end 23.23 new text begin second year are from the wildlife acquisition new text end 23.24 new text begin surcharge account for only the purposes new text end 23.25 new text begin specified in Minnesota Statutes, section new text end 23.26 new text begin , subdivision 2a. This appropriation new text end 23.27 new text begin is available until spent. new text end 23.28 new text begin $8,167,000 the first year and $8,167,000 new text end 23.29 new text begin the second year are from the heritage new text end 23.30 new text begin enhancement account in the game and new text end 23.31 new text begin fish fund only for activities specified in new text end 23.32 new text begin Minnesota Statutes, section 297A.94, new text end 23.33 new text begin paragraph (e), clause (1). Of this amount, at new text end 24.1 new text begin least 20 percent must be used to purchase new text end 24.2 new text begin or restore land, of which over half must new text end 24.3 new text begin be used for restoration. Notwithstanding new text end 24.4 new text begin Minnesota Statutes, section 297A.94, five new text end 24.5 new text begin percent of this appropriation may be used for new text end 24.6 new text begin expanding hunter and angler recruitment and new text end 24.7 new text begin retention. This appropriation may be used to new text end 24.8 new text begin leverage other funds and to provide fish and new text end 24.9 new text begin wildlife technical assistance for shallow lake new text end 24.10 new text begin management and restoration and stream and new text end 24.11 new text begin lake shoreland and habitat improvement and new text end 24.12 new text begin maintenance on private lands. new text end 24.13 new text begin Notwithstanding Minnesota Statutes, section new text end 24.14 new text begin , $13,000 the first year and $13,000 new text end 24.15 new text begin the second year from the critical habitat new text end 24.16 new text begin private sector matching account may be used new text end 24.17 new text begin to publicize the critical habitat license plate new text end 24.18 new text begin match program. new text end 24.19 new text begin $830,000 the first year and $830,000 the new text end 24.20 new text begin second year are from the trout and salmon new text end 24.21 new text begin management account for only the purposes new text end 24.22 new text begin specified in Minnesota Statutes, section new text end 24.23 new text begin , subdivision 3. new text end 24.24 new text begin $1,553,000 the first year and $1,553,000 the new text end 24.25 new text begin second year are from the deer management new text end 24.26 new text begin account for only the purposes specified new text end 24.27 new text begin in Minnesota Statutes, section new text end new text begin , new text end 24.28 new text begin subdivision 1, paragraph (b). new text end 24.29 new text begin $890,000 the first year and $890,000 the new text end 24.30 new text begin second year are from the deer and bear new text end 24.31 new text begin management account for only the purposes new text end 24.32 new text begin specified in Minnesota Statutes, section new text end 24.33 new text begin , subdivision 1, paragraph (c). new text end 24.34 new text begin $700,000 the first year and $700,000 the new text end 24.35 new text begin second year are from the waterfowl habitat new text end 25.1 new text begin improvement account for only the purposes new text end 25.2 new text begin specified in Minnesota Statutes, section new text end 25.3 new text begin , subdivision 2. new text end 25.4 new text begin $925,000 the first year and $925,000 the new text end 25.5 new text begin second year are from the pheasant habitat new text end 25.6 new text begin improvement account for only the purposes new text end 25.7 new text begin specified in Minnesota Statutes, section new text end 25.8 new text begin , subdivision 4. new text end 25.9 new text begin $192,000 the first year and $192,000 the new text end 25.10 new text begin second year are from the wild turkey new text end 25.11 new text begin management account for only the purposes new text end 25.12 new text begin specified in Minnesota Statutes, section new text end 25.13 new text begin , subdivision 5. Of this amount, new text end 25.14 new text begin $8,000 the first year and $8,000 the second new text end 25.15 new text begin year are transferred from the game and fish new text end 25.16 new text begin fund to the wild turkey management account. new text end 25.17 new text begin $535,000 the first year and $535,000 the new text end 25.18 new text begin second year are for preserving, restoring, and new text end 25.19 new text begin enhancing grassland/wetland complexes on new text end 25.20 new text begin public or private lands. new text end 25.21 new text begin Notwithstanding Minnesota Statutes, section new text end 25.22 new text begin , the appropriations encumbered new text end 25.23 new text begin under contract on or before June 30, 2011, for new text end 25.24 new text begin aquatic restoration grants and wildlife habitat new text end 25.25 new text begin grants are available until June 30, 2012. new text end 25.26 new text begin Subd. 7. new text end new text begin Ecological Services new text end new text begin 14,175,000 new text end new text begin 14,175,000 new text end 25.27 new text begin Appropriations by Fund new text end 25.28 new text begin General new text end new text begin 6,230,000 new text end new text begin 6,230,000 new text end 25.29 new text begin Natural Resources new text end new text begin 3,994,000 new text end new text begin 3,994,000 new text end 25.30 new text begin Game and Fish new text end new text begin 3,951,000 new text end new text begin 3,951,000 new text end 25.31 new text begin $1,223,000 the first year and $1,223,000 the new text end 25.32 new text begin second year are from the nongame wildlife new text end 25.33 new text begin management account in the natural resources new text end 26.1 new text begin fund for the purpose of nongame wildlife new text end 26.2 new text begin management. Notwithstanding Minnesota new text end 26.3 new text begin Statutes, section new text end new text begin , $100,000 the first new text end 26.4 new text begin year and $100,000 the second year may new text end 26.5 new text begin be used for nongame wildlife information, new text end 26.6 new text begin education, and promotion. new text end 26.7 new text begin $1,636,000 the first year and $1,636,000 new text end 26.8 new text begin the second year are from the heritage new text end 26.9 new text begin enhancement account in the game and new text end 26.10 new text begin fish fund for only the purposes specified new text end 26.11 new text begin in Minnesota Statutes, section 297A.94, new text end 26.12 new text begin paragraph (e), clause (1). new text end 26.13 new text begin $2,142,000 the first year and $2,142,000 the new text end 26.14 new text begin second year are from the invasive species new text end 26.15 new text begin account, and $2,090,000 the first year new text end 26.16 new text begin and $2,090,000 the second year are from new text end 26.17 new text begin the general fund for management, public new text end 26.18 new text begin awareness, assessment and monitoring new text end 26.19 new text begin research, law enforcement, and water access new text end 26.20 new text begin inspection to prevent the spread of invasive new text end 26.21 new text begin species; management of invasive plants in new text end 26.22 new text begin public waters; and management of terrestrial new text end 26.23 new text begin invasive species on state-administered lands. new text end 26.24 new text begin Funds from this appropriation may not be new text end 26.25 new text begin used to purchase or use pesticides suspected new text end 26.26 new text begin by current science of being endocrine new text end 26.27 new text begin disruptors. new text end 26.28 new text begin The commissioner shall report on the new text end 26.29 new text begin projected outcomes and goals for protecting new text end 26.30 new text begin species in all ecological provinces and the new text end 26.31 new text begin quantity and quality of groundwater and new text end 26.32 new text begin surface water of the state, including but not new text end 26.33 new text begin limited to, protecting rare and endangered new text end 26.34 new text begin species, native prairies, and wetlands, from new text end 26.35 new text begin merging ecological services and waters new text end 27.1 new text begin duties to the senate and house natural new text end 27.2 new text begin resources policy and finance committees and new text end 27.3 new text begin divisions. The commissioner shall not merge new text end 27.4 new text begin ecological services and waters duties prior to new text end 27.5 new text begin presenting the report to the committees and new text end 27.6 new text begin divisions. Any merger must include a variant new text end 27.7 new text begin of the word "ecology" in the title of the new new text end 27.8 new text begin division. new text end 27.9 new text begin Subd. 8. new text end new text begin Enforcement new text end new text begin 31,490,000 new text end new text begin 31,490,000 new text end 27.10 new text begin Appropriations by Fund new text end 27.11 new text begin General new text end new text begin 2,889,000 new text end new text begin 2,889,000 new text end 27.12 new text begin Natural Resources new text end new text begin 8,531,000 new text end new text begin 8,531,000 new text end 27.13 new text begin Game and Fish new text end new text begin 19,970,000 new text end new text begin 19,970,000 new text end 27.14 new text begin Remediation new text end new text begin 100,000 new text end new text begin 100,000 new text end 27.15 new text begin $1,082,000 the first year and $1,082,000 the new text end 27.16 new text begin second year are from the water recreation new text end 27.17 new text begin account in the natural resources fund for new text end 27.18 new text begin grants to counties for boat and water safety. new text end 27.19 new text begin $315,000 the first year and $315,000 the new text end 27.20 new text begin second year are from the snowmobile new text end 27.21 new text begin trails and enforcement account in the new text end 27.22 new text begin natural resources fund for grants to local new text end 27.23 new text begin law enforcement agencies for snowmobile new text end 27.24 new text begin enforcement activities. new text end 27.25 new text begin $1,164,000 the first year and $1,164,000 new text end 27.26 new text begin the second year are from the heritage new text end 27.27 new text begin enhancement account in the game and new text end 27.28 new text begin fish fund for only the purposes specified new text end 27.29 new text begin in Minnesota Statutes, section new text end new text begin , new text end 27.30 new text begin paragraph (e), clause (1). new text end 27.31 new text begin $510,000 the first year and $510,000 new text end 27.32 new text begin the second year are from the natural new text end 27.33 new text begin resources fund for grants to county law new text end 28.1 new text begin enforcement agencies for off-highway new text end 28.2 new text begin vehicle enforcement and public education new text end 28.3 new text begin activities based on off-highway vehicle use new text end 28.4 new text begin in the county. Of this amount, $498,000 each new text end 28.5 new text begin year is from the all-terrain vehicle account; new text end 28.6 new text begin $11,000 each year is from the off-highway new text end 28.7 new text begin motorcycle account; and $1,000 each year new text end 28.8 new text begin is from the off-road vehicle account. The new text end 28.9 new text begin county enforcement agencies may use new text end 28.10 new text begin money received under this appropriation new text end 28.11 new text begin to make grants to other local enforcement new text end 28.12 new text begin agencies within the county that have a high new text end 28.13 new text begin concentration of off-highway vehicle use. Of new text end 28.14 new text begin this appropriation, $25,000 each year is for new text end 28.15 new text begin administration of these grants. new text end 28.16 new text begin $250,000 the first year and $250,000 the new text end 28.17 new text begin second year are from the all-terrain vehicle new text end 28.18 new text begin account for grants to qualifying organizations new text end 28.19 new text begin to assist in safety and environmental new text end 28.20 new text begin education and monitoring trails on public new text end 28.21 new text begin lands under Minnesota Statutes, section new text end 28.22 new text begin 84.9011. Grants issued under this paragraph: new text end 28.23 new text begin (1) must be issued through a formal new text end 28.24 new text begin agreement with the organization; and (2) new text end 28.25 new text begin must not be used as a substitute for traditional new text end 28.26 new text begin spending by the organization. By December new text end 28.27 new text begin 15 each year, an organization receiving a new text end 28.28 new text begin grant under this paragraph shall report to the new text end 28.29 new text begin commissioner with details on expenditures new text end 28.30 new text begin and outcomes from the grant. By January new text end 28.31 new text begin 15, 2011, the commissioner shall report new text end 28.32 new text begin on the expenditures and outcomes of the new text end 28.33 new text begin grants to the chairs and ranking minority new text end 28.34 new text begin members of the natural resources policy new text end 28.35 new text begin and finance committees and divisions. Of new text end 29.1 new text begin this appropriation, $25,000 each year is for new text end 29.2 new text begin administration of these grants. new text end 29.3 new text begin The commissioner must publicize new text end 29.4 new text begin opportunities for conservation officer new text end 29.5 new text begin employment and recruit, when possible, new text end 29.6 new text begin conservation officer candidates from the new text end 29.7 new text begin biological sciences departments at colleges new text end 29.8 new text begin and universities. new text end 29.9 new text begin Subd. 9. new text end new text begin Operations Support new text end new text begin 2,963,000 new text end new text begin 2,963,000 new text end 29.10 new text begin Appropriations by Fund new text end 29.11 new text begin General new text end new text begin 1,340,000 new text end new text begin 1,340,000 new text end 29.12 new text begin Natural Resources new text end new text begin 534,000 new text end new text begin 534,000 new text end 29.13 new text begin Game and Fish new text end new text begin 1,089,000 new text end new text begin 1,089,000 new text end 29.14 new text begin The commissioner may redirect the general new text end 29.15 new text begin fund reduction of $800,000 in fiscal year new text end 29.16 new text begin 2010 and $800,000 in fiscal year 2011, to new text end 29.17 new text begin other subdivisions of this section. No grants new text end 29.18 new text begin may be reduced. The commissioner shall new text end 29.19 new text begin report by October 1, 2011, to the chairs of new text end 29.20 new text begin the legislative committees having primary new text end 29.21 new text begin jurisdiction over environment and natural new text end 29.22 new text begin resources policy and finance regarding any new text end 29.23 new text begin redirection and what department outcomes new text end 29.24 new text begin were affected by the redirection. new text end 29.25 new text begin $320,000 the first year and $320,000 the new text end 29.26 new text begin second year are from the natural resources new text end 29.27 new text begin fund for grants to be divided equally between new text end 29.28 new text begin the city of St. Paul for the Como Zoo new text end 29.29 new text begin and Conservatory and the city of Duluth new text end 29.30 new text begin for the Duluth Zoo. This appropriation new text end 29.31 new text begin is from the revenue deposited to the fund new text end 29.32 new text begin under Minnesota Statutes, section 297A.94, new text end 29.33 new text begin paragraph (e), clause (5). new text end 30.1 30.2 Sec. 5. new text begin BOARD OF WATER AND SOIL new text end new text begin RESOURCES new text end new text begin $ new text end new text begin 15,618,000 new text end new text begin $ new text end new text begin 15,343,000 new text end 30.3 new text begin $3,900,000 the first year and $3,900,000 the new text end 30.4 new text begin second year are for natural resources block new text end 30.5 new text begin grants to local governments. The board may new text end 30.6 new text begin reduce the amount of the natural resources new text end 30.7 new text begin block grant to a county by an amount equal to new text end 30.8 new text begin any reduction in the county's general services new text end 30.9 new text begin allocation to a soil and water conservation new text end 30.10 new text begin district from the county's previous year new text end 30.11 new text begin allocation when the board determines that new text end 30.12 new text begin the reduction was disproportionate. Grants new text end 30.13 new text begin must be matched with a combination of local new text end 30.14 new text begin cash or in-kind contributions. The base new text end 30.15 new text begin grant portion related to water planning must new text end 30.16 new text begin be matched by an amount as specified by new text end 30.17 new text begin Minnesota Statutes, section 103B.3369. new text end 30.18 new text begin $3,500,000 the first year and $3,500,000 new text end 30.19 new text begin the second year are for grants requested new text end 30.20 new text begin by soil and water conservation districts for new text end 30.21 new text begin general purposes, nonpoint engineering, new text end 30.22 new text begin and implementation of the reinvest in new text end 30.23 new text begin Minnesota conservation reserve program. new text end 30.24 new text begin Upon approval of the board, expenditures new text end 30.25 new text begin may be made from these appropriations for new text end 30.26 new text begin supplies and services benefiting soil and new text end 30.27 new text begin water conservation districts. Any district new text end 30.28 new text begin requesting a grant under this paragraph shall new text end 30.29 new text begin maintain a Web page that publishes, at a new text end 30.30 new text begin minimum, its annual plan, annual report, new text end 30.31 new text begin annual audit, annual budget, including new text end 30.32 new text begin membership dues, and meeting notices and new text end 30.33 new text begin minutes. new text end 31.1 new text begin $500,000 the first year and $500,000 the new text end 31.2 new text begin second year are for feedlot water quality new text end 31.3 new text begin grants for feedlots under 300 animal units new text end 31.4 new text begin where there are impaired waters. new text end 31.5 new text begin $2,000,000 the first year and $2,000,000 new text end 31.6 new text begin the second year are for grants to soil and new text end 31.7 new text begin water conservation districts for cost-sharing new text end 31.8 new text begin contracts for erosion control, water quality new text end 31.9 new text begin management, of which at least $900,000 new text end 31.10 new text begin each year is for establishing and maintaining new text end 31.11 new text begin riparian vegetation buffers of restored native new text end 31.12 new text begin prairie and restored prairie. new text end 31.13 new text begin $100,000 the first year and $100,000 new text end 31.14 new text begin the second year are available for county new text end 31.15 new text begin cooperative weed management programs and new text end 31.16 new text begin to restore native plants in selected invasive new text end 31.17 new text begin species management sites by providing local new text end 31.18 new text begin native seeds and plants to landowners for new text end 31.19 new text begin implementation. new text end 31.20 new text begin Notwithstanding Minnesota Statutes, section new text end 31.21 new text begin 103C.501, the board may shift cost-share new text end 31.22 new text begin funds in this section and may adjust the new text end 31.23 new text begin technical and administrative assistance new text end 31.24 new text begin portion of the grant funds to leverage new text end 31.25 new text begin federal or other nonstate funds or to address new text end 31.26 new text begin high-priority needs identified in local water new text end 31.27 new text begin management plans. new text end 31.28 new text begin $500,000 the first year and $500,000 the new text end 31.29 new text begin second year are for implementation and new text end 31.30 new text begin enforcement of the Wetland Conservation new text end 31.31 new text begin Act. The board must make available new text end 31.32 new text begin information about final enforcement actions new text end 31.33 new text begin on the board's Web site. new text end 31.34 new text begin $60,000 each year is for staff to monitor and new text end 31.35 new text begin enforce wetland replacement, wetland bank new text end 32.1 new text begin sites, and the Wetland Conservation Act. The new text end 32.2 new text begin board must include in its biennial report to new text end 32.3 new text begin the legislature information on all state and new text end 32.4 new text begin local units of government, including special new text end 32.5 new text begin purpose districts and impacts on wetlands new text end 32.6 new text begin in the state. This information must be made new text end 32.7 new text begin available on the board's Web site. new text end 32.8 new text begin $100,000 each year is for transfer to the new text end 32.9 new text begin commissioner of natural resources for new text end 32.10 new text begin enforcement of wetland violations. new text end 32.11 new text begin $100,000 each year is to make grants to local new text end 32.12 new text begin units of government within the 11-county new text end 32.13 new text begin metropolitan area to improve response to new text end 32.14 new text begin major wetland violations. new text end 32.15 new text begin $100,000 each year is for cost-share grants new text end 32.16 new text begin to local governments for public drainage new text end 32.17 new text begin records modernization. new text end 32.18 new text begin $212,000 each year is to provide assistance new text end 32.19 new text begin to local drainage management officials and new text end 32.20 new text begin for the costs of the Drainage Work Group. new text end 32.21 new text begin $90,000 the first year and $90,000 the second new text end 32.22 new text begin year are for a grant to the Red River Basin new text end 32.23 new text begin Commission for water quality and floodplain new text end 32.24 new text begin management, including administration of new text end 32.25 new text begin programs. The commission shall submit new text end 32.26 new text begin a report to the chairs of the legislative new text end 32.27 new text begin committees having primary jurisdiction new text end 32.28 new text begin over environment and natural resources new text end 32.29 new text begin policy and finance on the accomplishments new text end 32.30 new text begin achieved with this appropriation by January new text end 32.31 new text begin 15, 2012. If the appropriation in either year new text end 32.32 new text begin is insufficient, the appropriation in the other new text end 32.33 new text begin year is available for it. new text end 33.1 new text begin $90,000 each year is to the Minnesota River new text end 33.2 new text begin Basin Joint Powers Board, also known as new text end 33.3 new text begin the Minnesota River Board, for operating new text end 33.4 new text begin expenses to measure and report the results of new text end 33.5 new text begin projects in the 12 major watersheds within new text end 33.6 new text begin the Minnesota River basin. new text end 33.7 new text begin $130,000 each year is for grants to Area new text end 33.8 new text begin II, Minnesota River Basin Projects, new text end 33.9 new text begin for floodplain management, including new text end 33.10 new text begin administration of programs. new text end 33.11 new text begin Notwithstanding Minnesota Statutes, section new text end 33.12 new text begin 103C.501, a balance in the board's cost-share new text end 33.13 new text begin program is available for $150,000 each year new text end 33.14 new text begin for evaluating and reporting on performance, new text end 33.15 new text begin financial, and activity information of local new text end 33.16 new text begin water management entities as provided for in new text end 33.17 new text begin Minnesota Statutes, section 103B.102. new text end 33.18 new text begin The appropriations for grants in this new text end 33.19 new text begin section are available until expended. If an new text end 33.20 new text begin appropriation for grants in either year is new text end 33.21 new text begin insufficient, the appropriation in the other new text end 33.22 new text begin year is available for it. new text end 33.23 new text begin To the extent possible, any person conducting new text end 33.24 new text begin a restoration with money appropriated in new text end 33.25 new text begin this section must plant vegetation or sow new text end 33.26 new text begin seed only of ecotypes native to Minnesota, new text end 33.27 new text begin and preferably of the local ecotype, using a new text end 33.28 new text begin high diversity of species originating from as new text end 33.29 new text begin close to the restoration site as possible, and new text end 33.30 new text begin protect existing native prairies from genetic new text end 33.31 new text begin contamination. new text end 33.32 new text begin A recipient of a grant funded by an new text end 33.33 new text begin appropriation under this section shall display new text end 33.34 new text begin on its Web site detailed information on new text end 33.35 new text begin the expenditure of the grant funds, and new text end 34.1 new text begin measurable outcomes as a result of the new text end 34.2 new text begin expenditure of funds, and submit this new text end 34.3 new text begin information to the board by June 30 each new text end 34.4 new text begin year. A recipient without an active Web site new text end 34.5 new text begin shall report to the board by June 30 each year new text end 34.6 new text begin detailed information on the expenditure of new text end 34.7 new text begin the grant funds, and measurable outcomes new text end 34.8 new text begin as a result of the expenditure of funds. The new text end 34.9 new text begin board shall display the information received new text end 34.10 new text begin by recipients under this paragraph on the new text end 34.11 new text begin board's Web site. new text end 34.12 new text begin The board shall require the chief financial new text end 34.13 new text begin officer or other financial staff to display the new text end 34.14 new text begin board's budget on the board's Web site in a new text end 34.15 new text begin manner that will allow citizens to understand new text end 34.16 new text begin more easily the value they are getting for new text end 34.17 new text begin their money. new text end 34.18 Sec. 6. new text begin METROPOLITAN COUNCIL new text end new text begin $ new text end new text begin 8,880,000 new text end new text begin $ new text end new text begin 8,880,000 new text end 34.19 new text begin Appropriations by Fund new text end 34.20 new text begin 2010 new text end new text begin 2011 new text end 34.21 new text begin General new text end new text begin 3,810,000 new text end new text begin 3,810,000 new text end 34.22 new text begin Natural Resources new text end new text begin 5,070,000 new text end new text begin 5,070,000 new text end 34.23 new text begin $3,810,000 the first year and $3,810,000 new text end 34.24 new text begin the second year are for metropolitan area new text end 34.25 new text begin regional parks operation and maintenance new text end 34.26 new text begin according to Minnesota Statutes, section new text end 34.27 new text begin 473.351. new text end 34.28 new text begin $5,070,000 the first year and $5,070,000 the new text end 34.29 new text begin second year are from the natural resources new text end 34.30 new text begin fund for metropolitan area regional parks new text end 34.31 new text begin and trails maintenance and operations. This new text end 34.32 new text begin appropriation is from the revenue deposited new text end 34.33 new text begin in the natural resources fund under Minnesota new text end 35.1 new text begin Statutes, section 297A.94, paragraph (e), new text end 35.2 new text begin clause (3). new text end 35.3 35.4 Sec. 7. new text begin MINNESOTA CONSERVATION new text end new text begin CORPS new text end new text begin $ new text end new text begin 945,000 new text end new text begin $ new text end new text begin 945,000 new text end 35.5 new text begin Appropriations by Fund new text end 35.6 new text begin 2010 new text end new text begin 2011 new text end 35.7 new text begin General new text end new text begin 455,000 new text end new text begin 455,000 new text end 35.8 new text begin Natural Resources new text end new text begin 490,000 new text end new text begin 490,000 new text end 35.9 new text begin The Minnesota Conservation Corps may new text end 35.10 new text begin receive money appropriated from the new text end 35.11 new text begin natural resources fund under this section new text end 35.12 new text begin only as provided in an agreement with the new text end 35.13 new text begin commissioner of natural resources. new text end 35.14 Sec. 8. new text begin ZOOLOGICAL BOARD new text end new text begin $ new text end new text begin 6,728,000 new text end new text begin $ new text end new text begin 6,728,000 new text end 35.15 new text begin Appropriations by Fund new text end 35.16 new text begin 2010 new text end new text begin 2011 new text end 35.17 new text begin General new text end new text begin 6,568,000 new text end new text begin 6,568,000 new text end 35.18 new text begin Natural Resources new text end new text begin 160,000 new text end new text begin 160,000 new text end 35.19 new text begin $160,000 the first year and $160,000 the new text end 35.20 new text begin second year are from the natural resources new text end 35.21 new text begin fund from the revenue deposited under new text end 35.22 new text begin Minnesota Statutes, section 297A.94, new text end 35.23 new text begin paragraph (e), clause (5). new text end 35.24 35.25 Sec. 9. new text begin SCIENCE MUSEUM OF new text end new text begin MINNESOTA new text end new text begin $ new text end new text begin 1,187,000 new text end new text begin $ new text end new text begin 1,187,000 new text end 35.26    Sec. 10. Minnesota Statutes 2008, section 84.0835, subdivision 3, is amended to read: 35.27    Subd. 3. Citation authority. Employees designated by the commissioner under 35.28subdivision 1 may issue citations, as specifically authorized under this subdivision, for 35.29violations of: 36.1(1) sections 85.052, subdivision 3 (payment of camping fees in state parks), 36.285.45, subdivision 1 (cross-country ski pass), and 85.46 (horse trail pass) new text begin , and 84.9275 new text end 36.3 new text begin (nonresident all-terrain vehicle state trail pass) new text end ; 36.4(2) rules relating to hours and days of operation, restricted areas, noise, fireworks, 36.5environmental protection, fires and refuse, pets, picnicking, camping and dispersed 36.6camping, nonmotorized uses, construction of unauthorized permanent trails, mooring of 36.7boats, fish cleaning, swimming, storage and abandonment of personal property, structures 36.8and stands, animal trespass, state park individual and group motor vehicle permits, 36.9licensed motor vehicles, designated roads, and snowmobile operation off trails; 36.10(3) rules relating to off-highway vehicle registration, display of registration numbers, 36.11required equipment, operation restrictions, off-trail use for hunting and trapping, and 36.12operation in lakes, rivers, and streams; 36.13(4) rules relating to off-highway vehicle and snowmobile operation causing damage 36.14or in closed areas within the Richard J. Dorer Memorial Hardwood State Forest; 36.15(5) rules relating to parking, snow removal, and damage on state forest roads; and 36.16(6) rules relating to controlled hunting zones on major wildlife management units. 36.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2010. new text end 36.18    Sec. 11. new text begin [84.0854] GIFT CARD AND CERTIFICATE SALES; RECEIPTS; new text end 36.19 new text begin TRANSFERS; APPROPRIATION. new text end 36.20     new text begin Subdivision 1. new text end new text begin Sales authorized; gift cards and certificates. new text end new text begin The commissioner new text end 36.21 new text begin may sell gift cards and certificates that can be used to purchase licenses, permits, products, new text end 36.22 new text begin or services sold by the commissioner. Gift cards and certificates are valid until they new text end 36.23 new text begin are redeemed. The commissioner may advertise the availability of this program and new text end 36.24 new text begin items offered for sale under this section. The commissioner may make the purchase and new text end 36.25 new text begin redemption of gift cards available electronically. new text end 36.26     new text begin Subd. 2. new text end new text begin Receipts; disposition. new text end new text begin Proceeds of gift card and certificate sales shall be new text end 36.27 new text begin deposited in an account in the special revenue fund. When gift cards or certificates are new text end 36.28 new text begin redeemed, funds shall be transferred to the appropriate account or fund based on the new text end 36.29 new text begin license, permit, product, or service purchased. Money in the gift card and certificate new text end 36.30 new text begin account shall accrue interest, which shall be credited to the account. Interest on funds in new text end 36.31 new text begin the account is appropriated to the commissioner to help cover the cost of administering new text end 36.32 new text begin the gift card and certificate program. Money from gift cards and certificates sold but new text end 36.33 new text begin unredeemed after three years shall be transferred to the various accounts and funds new text end 36.34 new text begin receiving revenue from purchases of licenses, permits, products, or services purchased new text end 36.35 new text begin with gift card or certificate redemptions in the last two fiscal years. Unredeemed funds new text end 37.1 new text begin shall be distributed based on the dollar value of cards redeemed for the various licenses, new text end 37.2 new text begin permits, products, or services on a pro rata basis. new text end 37.3     new text begin Subd. 3. new text end new text begin Exemption from rulemaking. new text end new text begin This section is not subject to the new text end 37.4 new text begin rulemaking provisions of chapter 14 and section 14.386 does not apply. new text end 37.5    Sec. 12. Minnesota Statutes 2008, section 84.415, subdivision 5, is amended to read: 37.6    Subd. 5. Fee new text begin Fees; disposition new text end . new text begin (a) new text end In the event the construction of such lines 37.7causes damage to timber or other property of the state on or along the same, the license 37.8or permit shall also provide for payment to the commissioner of finance of the amount 37.9thereof new text begin of the damages new text end as may be determined by the commissioner. 37.10 new text begin (b) The application fee specified in Minnesota Rules is credited to the general fund. new text end 37.11All money received under such licenses or permits new text begin (c) The utility crossing fees new text end 37.12 new text begin specified in Minnesota Rules new text end shall be credited to the fund to which other income or 37.13proceeds of sale from such new text begin the new text end land would be credited, if provision therefor be made new text begin as new text end 37.14 new text begin provided new text end by law, otherwise to the general fund. 37.15 new text begin (d) Money received from licenses and permits issued under this section for use of new text end 37.16 new text begin the beds of navigable waters shall be credited to the permanent school fund. new text end 37.17 new text begin (e) Money received under subdivision 6 must be credited to the land management new text end 37.18 new text begin account in the natural resources fund and is appropriated to the commissioner of natural new text end 37.19 new text begin resources to cover the costs incurred for issuing and monitoring utility licenses. new text end 37.20    Sec. 13. Minnesota Statutes 2008, section 84.415, is amended by adding a subdivision 37.21to read: 37.22     new text begin Subd. 6. new text end new text begin Supplemental application fee and monitoring fee. new text end new text begin (a) In addition to the new text end 37.23 new text begin application fee and utility crossing fees specified in Minnesota Rules, the commissioner of new text end 37.24 new text begin natural resources shall assess the applicant for a utility license the following fees: new text end 37.25 new text begin (1) a supplemental application fee of $1,500 for a public water crossing license and new text end 37.26 new text begin a supplemental application fee of $4,500 for a public lands crossing license, to cover new text end 37.27 new text begin reasonable costs for reviewing the application and preparing the license; and new text end 37.28 new text begin (2) a monitoring fee to cover the projected reasonable costs for monitoring the new text end 37.29 new text begin construction of the utility line and preparing special terms and conditions of the license new text end 37.30 new text begin to ensure proper construction. The commissioner must give the applicant an estimate of new text end 37.31 new text begin the monitoring fee before the applicant submits the fee. new text end 37.32 new text begin (b) The applicant shall pay fees under this subdivision to the commissioner of new text end 37.33 new text begin natural resources. The commissioner shall not issue the license until the applicant has new text end 37.34 new text begin paid all fees in full. new text end 38.1 new text begin (c) Upon completion of construction of the improvement for which the license new text end 38.2 new text begin or permit was issued, the commissioner shall refund the unobligated balance from the new text end 38.3 new text begin monitoring fee revenue. The commissioner shall not return the application fees, even new text end 38.4 new text begin if the application is withdrawn or denied. new text end 38.5    Sec. 14. Minnesota Statutes 2008, section 84.63, is amended to read: 38.684.63 CONVEYANCE OF INTERESTS IN LANDS TO STATE AND 38.7FEDERAL GOVERNMENTS. 38.8 new text begin (a) new text end Notwithstanding any existing law to the contrary, the commissioner of natural 38.9resources is hereby authorized on behalf of the state to convey to the United States 38.10or to the state of Minnesota or any of its subdivisions, upon state-owned lands under 38.11the administration of the commissioner of natural resources, permanent or temporary 38.12easements for specified periods or otherwise for trails, highways, roads including 38.13limitation of right of access from the lands to adjacent highways and roads, flowage for 38.14development of fish and game resources, stream protection, flood control, and necessary 38.15appurtenances thereto, such conveyances to be made upon such terms and conditions 38.16including provision for reversion in the event of non-user as the commissioner of natural 38.17resources may determine. 38.18 new text begin (b) In addition to the fee for the market value of the easement, the commissioner of new text end 38.19 new text begin natural resources shall assess the applicant the following fees: new text end 38.20 new text begin (1) an application fee of $2,000 to cover reasonable costs for reviewing the new text end 38.21 new text begin application and preparing the easement; and new text end 38.22 new text begin (2) a monitoring fee to cover the projected reasonable costs for monitoring the new text end 38.23 new text begin construction of the improvement for which the easement was conveyed and preparing new text end 38.24 new text begin special terms and conditions for the easement. The commissioner must give the applicant new text end 38.25 new text begin an estimate of the monitoring fee before the applicant submits the fee. new text end 38.26 new text begin (c) The applicant shall pay these fees to the commissioner of natural resources. new text end 38.27 new text begin The commissioner shall not issue the easement until the applicant has paid in full the new text end 38.28 new text begin application fee, the monitoring fee, and the market value payment for the easement. new text end 38.29 new text begin (d) Upon completion of construction of the improvement for which the easement new text end 38.30 new text begin was conveyed, the commissioner shall refund the unobligated balance from the monitoring new text end 38.31 new text begin fee revenue. The commissioner shall not return the application fee, even if the application new text end 38.32 new text begin is withdrawn or denied. new text end 38.33 new text begin (e) Money received under paragraph (b) must be deposited in the land management new text end 38.34 new text begin account in the natural resources fund and is appropriated to the commissioner of natural new text end 38.35 new text begin resources to cover the reasonable costs incurred for issuing and monitoring easements. new text end 39.1    Sec. 15. Minnesota Statutes 2008, section 84.631, is amended to read: 39.284.631 ROAD EASEMENTS ACROSS STATE LANDS. 39.3(a) Except as provided in section 85.015, subdivision 1b, the commissioner, on 39.4behalf of the state, may convey a road easement across state land under the commissioner's 39.5jurisdiction other than school trust land, to a private person requesting an easement for 39.6access to property owned by the person only if the following requirements are met: (1) 39.7there are no reasonable alternatives to obtain access to the property; and (2) the exercise 39.8of the easement will not cause significant adverse environmental or natural resource 39.9management impacts. 39.10(b) The commissioner shall: 39.11(1) require the applicant to pay the market value of the easement; 39.12(2) provide that the easement reverts to the state in the event of nonuse; and 39.13(3) impose other terms and conditions of use as necessary and appropriate under 39.14the circumstances. 39.15(c) An applicant shall submit a new text begin an application new text end fee of up to $2,000 with each 39.16application for a road easement across state land. The commissioner must give the 39.17applicant an estimate of the costs of the road easement before the applicant submits the 39.18fee. The application fee is nonrefundable, even if the application is withdrawn or denied. 39.19(d) new text begin In addition to the payment for the market value of the easement and the new text end 39.20 new text begin application fee, the commissioner of natural resources shall assess the applicant a new text end 39.21 new text begin monitoring fee to cover the projected reasonable costs for monitoring the construction of new text end 39.22 new text begin the road and preparing special terms and conditions for the easement. The commissioner new text end 39.23 new text begin must give the applicant an estimate of the monitoring fee before the applicant submits new text end 39.24 new text begin the fee. The applicant shall pay the application and monitoring fees to the commissioner new text end 39.25 new text begin of natural resources. The commissioner shall not issue the easement until the applicant new text end 39.26 new text begin has paid in full the application fee, the monitoring fee, and the market value payment for new text end 39.27 new text begin the easement. new text end 39.28 new text begin (e) Upon completion of construction of the road, the commissioner shall refund the new text end 39.29 new text begin unobligated balance from the monitoring fee revenue. new text end 39.30 new text begin (f) new text end Fees collected under paragraph new text begin paragraphs new text end (c) new text begin and (d) new text end must be deposited in new text begin new text end 39.31 new text begin credited to new text end the land management account in the natural resources fund new text begin and are appropriated new text end 39.32 new text begin to the commissioner of natural resources to cover the reasonable costs incurred under new text end 39.33 new text begin this section new text end . 39.34    Sec. 16. Minnesota Statutes 2008, section 84.632, is amended to read: 39.3584.632 CONVEYANCE OF UNNEEDED STATE EASEMENTS. 40.1(a) Notwithstanding section 92.45, the commissioner of natural resources may, 40.2in the name of the state, release all or part of an easement acquired by the state upon 40.3application of a landowner whose property is burdened with the easement if the easement 40.4is not needed for state purposes. 40.5(b) All or part of an easement may be released by payment of consideration of not 40.6less than $500, to be determined by the commissioner new text begin the market value of the easement new text end . 40.7The release must be in a form approved by the attorney general. 40.8(c) Money received for release of the easement new text begin under paragraph (b) new text end must be credited 40.9to the account from which money was expended for purchase of the easement. If there is 40.10no specific account, the money must be credited to the land acquisition account established 40.11in section 94.165. 40.12 new text begin (d) In addition to payment under paragraph (b), the commissioner of natural new text end 40.13 new text begin resources shall assess a landowner who applies for a release under this section an new text end 40.14 new text begin application fee of $2,000 for reviewing the application and preparing the release of new text end 40.15 new text begin easement. The applicant shall pay the application fee to the commissioner of natural new text end 40.16 new text begin resources. The commissioner shall not issue the release of easement until the applicant new text end 40.17 new text begin has paid the application fee in full. The commissioner shall not return the application fee, new text end 40.18 new text begin even if the application is withdrawn or denied. new text end 40.19 new text begin (e) Money received under paragraph (d) must be credited to the land management new text end 40.20 new text begin account in the natural resources fund and is appropriated to the commissioner of natural new text end 40.21 new text begin resources to cover the reasonable costs incurred under this section. new text end 40.22    Sec. 17. Minnesota Statutes 2008, section 84.922, subdivision 1a, is amended to read: 40.23    Subd. 1a. Exemptions. All-terrain vehicles exempt from registration are: 40.24    (1) vehicles owned and used by the United States, the state, another state, or a 40.25political subdivision; 40.26    (2) vehicles registered in another state or country that have not been in this state for 40.27more than 30 consecutive days; 40.28 new text begin (3) vehicles that: new text end 40.29 new text begin (i) are owned by a resident of another state or country that does not require new text end 40.30 new text begin registration of all-terrain vehicles; new text end 40.31 new text begin (ii) have not been in this state for more than 30 consecutive days; and new text end 40.32 new text begin (iii) are operated on state and grant-in-aid trails by a nonresident possessing a new text end 40.33 new text begin nonresident all-terrain vehicle state trail pass; new text end 40.34    (3) new text begin (4) new text end vehicles used exclusively in organized track racing events; and 41.1    (4) new text begin (5) new text end vehicles that are 25 years old or older and were originally produced as a 41.2separate identifiable make by a manufacturer. 41.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2010. new text end 41.4    Sec. 18. new text begin [84.9275] NONRESIDENT ALL-TERRAIN VEHICLE STATE TRAIL new text end 41.5 new text begin PASS. new text end 41.6     new text begin Subdivision 1. new text end new text begin Pass required; fee. new text end new text begin (a) A nonresident may not operate an all-terrain new text end 41.7 new text begin vehicle on a state or grant-in-aid all-terrain vehicle trail unless the operator carries a valid new text end 41.8 new text begin nonresident all-terrain vehicle state trail pass in immediate possession. The pass must new text end 41.9 new text begin be available for inspection by a peace officer, a conservation officer, or an employee new text end 41.10 new text begin designated under section 84.0835. new text end 41.11 new text begin (b) The commissioner of natural resources shall issue a pass upon application and new text end 41.12 new text begin payment of a $20 fee. The pass is valid from January 1 through December 31. Fees new text end 41.13 new text begin collected under this section, except for the issuing fee for licensing agents, shall be new text end 41.14 new text begin deposited in the state treasury and credited to the all-terrain vehicle account in the natural new text end 41.15 new text begin resources fund and, except for the electronic licensing system commission established by new text end 41.16 new text begin the commissioner under section new text end new text begin , subdivision 15, must be used for grants-in-aid to new text end 41.17 new text begin counties and municipalities for all-terrain vehicle organizations to construct and maintain new text end 41.18 new text begin all-terrain vehicle trails and use areas. new text end 41.19     new text begin (c) A nonresident all-terrain vehicle state trail pass is not required for: new text end 41.20     new text begin (1) an all-terrain vehicle that is owned and used by the United States, another state, new text end 41.21 new text begin or a political subdivision thereof that is exempt from registration under section 84.922, new text end 41.22 new text begin subdivision 1a; or new text end 41.23     new text begin (2) a person operating an all-terrain vehicle only on the portion of a trail that is new text end 41.24 new text begin owned by the person or the person's spouse, child, or parent. new text end 41.25     new text begin Subd. 2. new text end new text begin License agents. new text end new text begin The commissioner may appoint agents to issue and sell new text end 41.26 new text begin nonresident all-terrain vehicle state trail passes. The commissioner may revoke the new text end 41.27 new text begin appointment of an agent at any time. The commissioner may adopt additional rules as new text end 41.28 new text begin provided in section new text end new text begin 97A.485, subdivision 11 new text end new text begin . An agent shall observe all rules adopted new text end 41.29 new text begin by the commissioner for accounting and handling of passes pursuant to section new text end new text begin 97A.485, new text end 41.30 new text begin subdivision 11 new text end new text begin . An agent shall promptly deposit and remit all money received from the new text end 41.31 new text begin sale of the passes, exclusive of the issuing fee, to the commissioner. new text end 41.32     new text begin Subd. 3. new text end new text begin Issuance of passes. new text end new text begin The commissioner and agents shall issue and sell new text end 41.33 new text begin nonresident all-terrain vehicle state trail passes. The commissioner shall also make the new text end 42.1 new text begin passes available through the electronic licensing system established under section 84.027, new text end 42.2 new text begin subdivision 15. new text end 42.3     new text begin Subd. 4. new text end new text begin Agent's fee. new text end new text begin In addition to the fee for a pass, an issuing fee of $1 per pass new text end 42.4 new text begin shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for new text end 42.5 new text begin passes issued by the commissioner shall be deposited in the all-terrain vehicle account in new text end 42.6 new text begin the natural resources fund and retained for the operation of the electronic licensing system. new text end 42.7     new text begin Subd. 5. new text end new text begin Duplicate passes. new text end new text begin The commissioner and agents shall issue a duplicate new text end 42.8 new text begin pass to persons whose pass is lost or destroyed using the process established under section new text end 42.9 new text begin 97A.405, subdivision 3 new text end new text begin , and rules adopted thereunder. The fee for a duplicate nonresident new text end 42.10 new text begin all-terrain vehicle state trail pass is $2, with an issuing fee of 50 cents. new text end 42.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2010. new text end 42.12    Sec. 19. Minnesota Statutes 2008, section 84D.15, subdivision 2, is amended to read: 42.13    Subd. 2. Receipts. Money received from surcharges on watercraft licenses under 42.14section 86B.415, subdivision 7, and civil penalties under section 84D.13 shall be deposited 42.15in the invasive species account. Each year, the commissioner of finance shall transfer from 42.16the game and fish fund to the invasive species account, the annual surcharge collected on 42.17nonresident fishing licenses under section 97A.475, subdivision 7, paragraph (b). new text begin In fiscal new text end 42.18 new text begin years 2010 and 2011, the commissioner of finance shall transfer $725,000 from the water new text end 42.19 new text begin recreation account under section 86B.706 to the invasive species account. new text end 42.20    Sec. 20. Minnesota Statutes 2008, section 85.015, subdivision 1b, is amended to read: 42.21    Subd. 1b. Easements for ingress and egress. new text begin (a) new text end Notwithstanding section 16A.695, 42.22 new text begin except as provided in paragraph (b), new text end when a trail is established under this section, a 42.23private property owner who has a preexisting right of ingress and egress over the trail 42.24right-of-way is granted, without charge, a permanent easement for ingress and egress 42.25purposes only. The easement is limited to the preexisting crossing and reverts to the state 42.26upon abandonment. Nothing in this subdivision is intended to diminish or alter any written 42.27or recorded easement that existed before the state acquired the land for the trail. 42.28 new text begin (b) The commissioner of natural resources shall assess the applicant an application new text end 42.29 new text begin fee of $2,000 for reviewing the application and preparing the easement. The applicant new text end 42.30 new text begin shall pay the application fee to the commissioner of natural resources. The commissioner new text end 42.31 new text begin shall not issue the easement until the applicant has paid the application fee in full. The new text end 42.32 new text begin commissioner shall not return the application fee, even if the application is withdrawn new text end 42.33 new text begin or denied. new text end 43.1 new text begin (c) Money received under paragraph (b) must be credited to the land management new text end 43.2 new text begin account in the natural resources fund and is appropriated to the commissioner of natural new text end 43.3 new text begin resources to cover the reasonable costs incurred under this section. new text end 43.4    Sec. 21. Minnesota Statutes 2008, section 85.053, subdivision 10, is amended to read: 43.5    Subd. 10. Free entrance; totally and permanently disabled veterans. The 43.6commissioner shall issue an annual park permit for no charge for new text begin to new text end any veteran with a 43.7total and permanent service-connected disability new text begin , as determined by the United States new text end 43.8 new text begin Department of Veterans Affairs, new text end who presents each year a copy of their determination 43.9letter to a park attendant or commissioner's designee. For the purposes of this section, 43.10"veteran new text begin " new text end with a total and permanent service-connected disability" means a resident who 43.11has a total and permanent service-connected disability as adjudicated by the United States 43.12Veterans Administration or by the retirement board of one of the several branches of the 43.13armed forces new text begin has the meaning given in section 197.447 new text end . 43.14 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2009, for state park permits new text end 43.15 new text begin issued on or after that date. new text end 43.16    Sec. 22. Minnesota Statutes 2008, section 85.46, subdivision 3, is amended to read: 43.17    Subd. 3. Issuance. The commissioner of natural resources and agents shall issue 43.18and sell horse trail passes. The pass shall include the applicant's signature and other 43.19information deemed necessary by the commissioner. To be valid, a new text begin daily or annual new text end pass 43.20must be signed by the person riding, leading, or driving the horse new text begin , and a commercial new text end 43.21 new text begin annual pass must be signed by the owner of the commercial trail riding facility new text end . 43.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2010. new text end 43.23    Sec. 23. Minnesota Statutes 2008, section 85.46, subdivision 4, is amended to read: 43.24    Subd. 4. Pass fees. (a) The fee for an annual horse trail pass is $20 for an individual 43.2516 years of age and over. The fee shall be collected at the time the pass is purchased. 43.26Annual passes are valid for one year beginning January 1 and ending December 31. 43.27(b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and 43.28over. The fee shall be collected at the time the pass is purchased. The daily pass is valid 43.29only for the date designated on the pass form. 43.30 new text begin (c) The fee for a commercial annual horse trail pass is $200 and includes issuance new text end 43.31 new text begin of 15 passes. Additional or individual commercial annual horse trail passes may be new text end 43.32 new text begin purchased by the commercial trail riding facility owner at a fee of $20 each. Commercial new text end 43.33 new text begin annual horse trail passes are valid for one year beginning January 1 and ending December new text end 44.1 new text begin 31 and may be affixed to the horse tack, saddle, or person. Commercial annual horse trail new text end 44.2 new text begin passes are not transferable to another commercial trail riding facility. For the purposes of new text end 44.3 new text begin this section, a "commercial trail riding facility" is an operation where horses are used for new text end 44.4 new text begin riding instruction or other equestrian activities for hire or use by others. new text end 44.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2010. new text end 44.6    Sec. 24. Minnesota Statutes 2008, section 85.46, subdivision 7, is amended to read: 44.7    Subd. 7. Duplicate horse trail passes. The commissioner of natural resources and 44.8agents shall issue a duplicate pass to a person new text begin or commercial trail riding facility owner new text end 44.9whose pass is lost or destroyed using the process established under section 97A.405, 44.10subdivision 3, and rules adopted thereunder. The fee for a duplicate horse trail pass is $2, 44.11with an issuing fee of 50 cents. 44.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2010. new text end 44.13    Sec. 25. new text begin [86A.055] PROHIBITION ON SALES OF OUTDOOR RECREATION new text end 44.14 new text begin SYSTEM LANDS FOR CERTAIN PURPOSES. new text end 44.15 new text begin Notwithstanding Laws 2005, chapter 156, article 2, section 45, as amended by Laws new text end 44.16 new text begin 2007, chapter 148, article 2, section 73, or other law to the contrary, a state agency shall new text end 44.17 new text begin not sell land that, on or after the effective date of this section, is classified as a unit of the new text end 44.18 new text begin outdoor recreation system under section 86A.05, for the purpose of anticipated savings new text end 44.19 new text begin to the general fund. new text end 44.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 44.21    Sec. 26. Minnesota Statutes 2008, section 92.685, is amended to read: 44.2292.685 LAND MANAGEMENT ACCOUNT. 44.23The land management account is created in the natural resources fund. Money 44.24credited to the account is appropriated annually to the commissioner of natural resources 44.25for the Lands and Minerals Division to administer new text begin the utility easement program under new text end 44.26 new text begin section 84.415, the easement program under section 84.63, new text end the road easement program 44.27under section 84.631 new text begin , the easement release program under section 84.632, and the trail new text end 44.28 new text begin easement program under section 85.015, subdivision 1b new text end . 44.29    Sec. 27. Minnesota Statutes 2008, section 93.481, subdivision 1, is amended to read: 44.30    Subdivision 1. Prohibition against mining without permit; application for 44.31permit. Except as provided in this subdivision, after June 30, 1975, no person shall 45.1engage in or carry out a mining operation for metallic minerals within the state unless the 45.2person has first obtained a permit to mine from the commissioner. Any person engaging 45.3in or carrying out a mining operation as of the effective date of the rules promulgated new text begin new text end 45.4 new text begin adopted new text end under section 93.47 shall apply for a permit to mine within 180 days after the 45.5effective date of such rules. Any such existing mining operation may continue during the 45.6pendency of the application for the permit to mine. The person applying for a permit shall 45.7apply on forms prescribed by the commissioner and shall submit such information as the 45.8commissioner may require, including but not limited to the following: 45.9(a) new text begin (1) new text end a proposed plan for the reclamation or restoration, or both, of any mining 45.10area affected by mining operations to be conducted on and after the date on which permits 45.11are required for mining under this section; 45.12(b) new text begin (2) new text end a certificate issued by an insurance company authorized to do business in 45.13the United States that the applicant has a public liability insurance policy in force for 45.14the mining operation for which the permit is sought, or evidence that the applicant has 45.15satisfied other state or federal self-insurance requirements, to provide personal injury 45.16and property damage protection in an amount adequate to compensate any persons who 45.17might be damaged as a result of the mining operation or any reclamation or restoration 45.18operations connected with the mining operation; 45.19 new text begin (3) an application fee of: new text end 45.20 new text begin (i) $25,000 for a permit to mine for a taconite mining operation; new text end 45.21 new text begin (ii) $50,000 for a permit to mine for a nonferrous metallic minerals operation; new text end 45.22 new text begin (iii) $10,000 for a permit to mine for a scram mining operation; or new text end 45.23 new text begin (iv) $5,000 for a permit to mine for a peat operation; new text end 45.24(c) new text begin (4) new text end a bond which may be required pursuant to section 93.49; and 45.25(d) new text begin (5) new text end a copy of the applicant's advertisement of the ownership, location, and 45.26boundaries of the proposed mining area and reclamation or restoration operations, which 45.27advertisement shall be published in a legal newspaper in the locality of the proposed site 45.28at least once a week for four successive weeks before the application is filed, except that if 45.29the application is for a permit to conduct lean ore stockpile removal the advertisement 45.30need be published only once. 45.31    Sec. 28. Minnesota Statutes 2008, section 93.481, subdivision 3, is amended to read: 45.32    Subd. 3. Term of permit; amendment. A permit issued by the commissioner 45.33pursuant to this section shall be granted for the term determined necessary by the 45.34commissioner for the completion of the proposed mining operation, including reclamation 45.35or restoration. A permit may be amended upon written application to the commissioner. 46.1 new text begin A permit amendment application fee must be submitted with the written application. The new text end 46.2 new text begin permit amendment application fee is ten percent of the amount provided for in subdivision new text end 46.3 new text begin 1, clause (3), for an application for the applicable permit to mine. new text end If the commissioner 46.4determines that the proposed amendment constitutes a substantial change to the permit, 46.5the person applying for the amendment shall publish notice in the same manner as for a 46.6new permit, and a hearing shall be held if written objections are received in the same 46.7manner as for a new permit. An amendment may be granted by the commissioner if the 46.8commissioner determines that lawful requirements have been met. 46.9    Sec. 29. Minnesota Statutes 2008, section 93.481, subdivision 5, is amended to read: 46.10    Subd. 5. Assignment. A permit may not be assigned or otherwise transferred 46.11without the written approval of the commissioner. new text begin A permit assignment application fee new text end 46.12 new text begin must be submitted with the written application. The permit assignment application fee new text end 46.13 new text begin is ten percent of the amount provided for in subdivision 1, clause (3), for an application new text end 46.14 new text begin for the applicable permit to mine. new text end 46.15    Sec. 30. Minnesota Statutes 2008, section 93.481, subdivision 7, is amended to read: 46.16    Subd. 7. Mining administration account. The mining administration account is 46.17established as an account in the natural resources fund. Ferrous mining administrative 46.18Fees charged to owners, operators, or managers of mines new text begin under this section and section new text end 46.19 new text begin 93.482 new text end shall be credited to the account and may be appropriated to the commissioner 46.20to cover the costs of providing and monitoring permits to mine ferrous metals under 46.21this section. new text begin Earnings accruing from investment of the account remain with the account new text end 46.22 new text begin until appropriated. new text end 46.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 46.24    Sec. 31. new text begin [93.482] RECLAMATION FEES. new text end 46.25     new text begin Subdivision 1. new text end new text begin Annual permit to mine fee. new text end new text begin (a) The commissioner shall charge new text end 46.26 new text begin every person holding a permit to mine an annual permit fee. The fee is payable to the new text end 46.27 new text begin commissioner by June 30 of each year, beginning in 2009. new text end 46.28 new text begin (b) The annual permit to mine fee for a taconite mining operation is $60,000 if the new text end 46.29 new text begin operation had production within the calendar year immediately preceding the year in new text end 46.30 new text begin which payment is due and $30,000 if there was no production within the immediately new text end 46.31 new text begin preceding calendar year. new text end 46.32 new text begin (c) The annual permit to mine fee for a nonferrous metallic minerals mining new text end 46.33 new text begin operation is $75,000 if the operation had production within the calendar year immediately new text end 47.1 new text begin preceding the year in which payment is due and $37,500 if there was no production within new text end 47.2 new text begin the immediately preceding calendar year. new text end 47.3 new text begin (d) The annual permit to mine fee for a scram mining operation is $5,000 if the new text end 47.4 new text begin operation had production within the calendar year immediately preceding the year in new text end 47.5 new text begin which payment is due and $2,500 if there was no production within the immediately new text end 47.6 new text begin preceding calendar year. new text end 47.7 new text begin (e) The annual permit to mine fee for a peat mining operation is $1,000 if the new text end 47.8 new text begin operation had production within the calendar year immediately preceding the year in new text end 47.9 new text begin which payment is due and $500 if there was no production within the immediately new text end 47.10 new text begin preceding calendar year. new text end 47.11     new text begin Subd. 2. new text end new text begin Supplemental application fee for taconite and nonferrous metallic new text end 47.12 new text begin minerals mining operation. new text end new text begin (a) In addition to the application fee specified in section new text end 47.13 new text begin 93.481, the commissioner shall assess a person submitting an application for a permit to new text end 47.14 new text begin mine for a taconite or a nonferrous metallic minerals mining operation the reasonable new text end 47.15 new text begin costs for reviewing the application and preparing the permit to mine. For nonferrous new text end 47.16 new text begin metallic minerals mining, the commissioner shall assess reasonable costs for monitoring new text end 47.17 new text begin construction of the mining facilities. new text end 47.18 new text begin (b) The commissioner must give the applicant an estimate of the supplemental new text end 47.19 new text begin application fee under this subdivision. The estimate must include a brief description new text end 47.20 new text begin of the tasks to be performed and the estimated cost of each task. The application fee new text end 47.21 new text begin under section 93.481 must be subtracted from the estimate of costs to determine the new text end 47.22 new text begin supplemental application fee. new text end 47.23 new text begin (c) The applicant and the commissioner shall enter into a written agreement to cover new text end 47.24 new text begin the estimated costs to be incurred by the commissioner. new text end 47.25 new text begin (d) The commissioner shall not issue the permit to mine until the applicant has paid new text end 47.26 new text begin all fees in full. Upon completion of construction of a nonferrous metallic minerals facility, new text end 47.27 new text begin the commissioner shall refund the unobligated balance of the monitoring fee revenue. new text end 47.28     new text begin Subd. 3. new text end new text begin Reclamation fee on taconite iron ore produced. new text end new text begin (a) For the purposes new text end 47.29 new text begin of this subdivision: new text end 47.30 new text begin (1) "fee owner" means a person having any right, title, or interest in any minerals new text end 47.31 new text begin or mineral rights in this state from which taconite iron ore is mined. Fee owner does not new text end 47.32 new text begin include the United States, the state, or the University of Minnesota; new text end 47.33 new text begin (2) "taconite iron ore" means a ferruginous chert or ferruginous slate in the form of new text end 47.34 new text begin compact siliceous rock, in which the iron oxide is so finely disseminated that substantially new text end 47.35 new text begin all of the iron bearing particles of merchantable grade are smaller than 20 mesh; and new text end 47.36 new text begin (3) "ton" means a gross ton of 2,240 pounds. new text end 48.1 new text begin (b) A fee owner is subject to a reclamation fee of $.0075 per ton of taconite iron ore new text end 48.2 new text begin mined from the minerals or mineral rights owned by the fee owner. new text end 48.3 new text begin (c) The fee owner shall make payment to the commissioner no later than January new text end 48.4 new text begin 20 of each calendar year for ore removed during the previous calendar year. The fee new text end 48.5 new text begin owner is liable for the payment of the reclamation fee. The fee owner may enter into an new text end 48.6 new text begin agreement with the mining operator to make the payment on their behalf from royalties new text end 48.7 new text begin due and owing or other financial terms. new text end 48.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 48.9    Sec. 32. Minnesota Statutes 2008, section 94.342, subdivision 3, is amended to read: 48.10    Subd. 3. Additional restrictions on riparian land. new text begin (a) new text end Land bordering on or 48.11adjacent to any meandered or other public waters and withdrawn from sale by law is 48.12riparian land. Riparian land may not be given in exchange unless new text begin : new text end 48.13 new text begin (1) new text end expressly authorized by the legislature or unless new text begin ; new text end 48.14 new text begin (2) new text end through the same exchange the state acquires land on the same or other public 48.15waters in the same general vicinity affording at least equal opportunity for access to the 48.16waters and other riparian use by the public; 48.17 new text begin (3) Class A land is being exchanged for Class A land; or new text end 48.18 provided, that any new text begin (4) the new text end exchange with new text begin is an agency of new text end the United States or any 48.19agency thereof may be made free from this limitation upon condition that new text begin and new text end the state 48.20land given in exchange bordering on public waters shall be subject to reservations by 48.21the state for public travel along the shores as provided by section 92.45, unless waived 48.22as provided in this subdivision new text begin paragraph (b) new text end , and that there shall be reserved by the 48.23state such additional rights of public use upon suitable portions of such state land as 48.24the commissioner of natural resources, with the approval of the Land Exchange Board, 48.25may deem necessary or desirable for camping, hunting, fishing, access to the water, and 48.26other public uses. 48.27 In regard to new text begin (b) For new text end Class B or riparian land that is contained within that portion 48.28of the Superior National Forest that is designated as the Boundary Waters Canoe Area 48.29Wilderness, the condition that state land given in exchange bordering on public waters 48.30must be subject to the public travel reservations provided in section 92.45, may be waived 48.31by the Land Exchange Board upon the recommendation of the commissioner of natural 48.32resources and, if the land is Class B land, the additional recommendation of the county 48.33board in which the land is located. 48.34    Sec. 33. Minnesota Statutes 2008, section 97A.075, subdivision 1, is amended to read: 49.1    Subdivision 1. Deer, bear, and lifetime licenses. (a) For purposes of this 49.2subdivision, "deer license" means a license issued under section 97A.475, subdivisions 2, 49.3clauses (5), (6), (7), (11), (13), (15), (16), and (17), and 3, clauses (2), (3), (4), (9), (11), 49.4(12), and (13), and licenses issued under section 97B.301, subdivision 4. 49.5    (b) $2 from each annual deer license and $2 annually from the lifetime fish and 49.6wildlife trust fund, established in section 97A.4742, for each license issued under section 49.797A.473, subdivision 4 , shall be credited to the deer management account and shall be 49.8used for deer habitat improvement or deer management programs. 49.9    (c) $1 from each annual deer license and each bear license and $1 annually from 49.10the lifetime fish and wildlife trust fund, established in section 97A.4742, for each license 49.11issued under section 97A.473, subdivision 4, shall be credited to the deer and bear 49.12management account and shall be used for deer and bear management programs, including 49.13a computerized licensing system. 49.14    (d) Fifty cents from each deer license is credited to the emergency deer feeding 49.15and wild cervidae health management account and is appropriated for emergency deer 49.16feeding and wild cervidae health management. Money appropriated for emergency 49.17deer feeding and wild cervidae health management is available until expended. When 49.18the unencumbered balance in the appropriation for emergency deer feeding and wild 49.19cervidae health management at the end of a fiscal year exceeds $2,500,000 for the first 49.20time, $750,000 is canceled to the unappropriated balance of the game and fish fund. 49.21The commissioner must inform the legislative chairs of the natural resources finance 49.22committees every two years on how the money for emergency deer feeding and wild 49.23cervidae health management has been spent. 49.24    Thereafter, When the unencumbered balance in the appropriation for emergency 49.25deer feeding and wild cervidae health management exceeds $2,500,000 at the end of a 49.26fiscal year, the unencumbered balance in excess of $2,500,000 is canceled and available 49.27for deer and bear management programs and computerized licensing. 49.28    Sec. 34. Minnesota Statutes 2008, section 103G.271, subdivision 6, is amended to read: 49.29    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs 49.30(b) to (f), a water use permit processing fee must be prescribed by the commissioner in 49.31accordance with the schedule of fees in this subdivision for each water use permit in force 49.32at any time during the year. The schedule is as follows, with the stated fee in each clause 49.33applied to the total amount appropriated: 49.34    (1) $140 for amounts not exceeding 50,000,000 gallons per year; 50.1    (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less 50.2than 100,000,000 gallons per year; 50.3    (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less 50.4than 150,000,000 gallons per year; 50.5    (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but 50.6less than 200,000,000 gallons per year; 50.7    (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less 50.8than 250,000,000 gallons per year; 50.9    (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but 50.10less than 300,000,000 gallons per year; 50.11    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less 50.12than 350,000,000 gallons per year; 50.13    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but 50.14less than 400,000,000 gallons per year; 50.15    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less 50.16than 450,000,000 gallons per year; 50.17    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but 50.18less than 500,000,000 gallons per year; and 50.19    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year. 50.20    (b) For once-through cooling systems, a water use processing fee must be prescribed 50.21by the commissioner in accordance with the following schedule of fees for each water use 50.22permit in force at any time during the year: 50.23    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and 50.24    (2) for all other users, $420 per 1,000,000 gallons. 50.25    (c) The fee is payable based on the amount of water appropriated during the year 50.26and, except as provided in paragraph (f), the minimum fee is $100. 50.27    (d) For water use processing fees other than once-through cooling systems: 50.28    (1) the fee for a city of the first class may not exceed $250,000 per year; 50.29    (2) the fee for other entities for any permitted use may not exceed: 50.30    (i) $50,000 new text begin $60,000 new text end per year for an entity holding three or fewer permits; 50.31    (ii) $75,000 new text begin $90,000 new text end per year for an entity holding four or five permits; 50.32    (iii) $250,000 new text begin $300,000 new text end per year for an entity holding more than five permits; 50.33    (3) the fee for agricultural irrigation may not exceed $750 per year; 50.34    (4) the fee for a municipality that furnishes electric service and cogenerates steam 50.35for home heating may not exceed $10,000 for its permit for water use related to the 50.36cogeneration of electricity and steam; and 51.1    (5) no fee is required for a project involving the appropriation of surface water to 51.2prevent flood damage or to remove flood waters during a period of flooding, as determined 51.3by the commissioner. 51.4    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two 51.5percent per month calculated from the original due date must be imposed on the unpaid 51.6balance of fees remaining 30 days after the sending of a second notice of fees due. A fee 51.7may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal 51.8governmental agency holding a water appropriation permit. 51.9    (f) The minimum water use processing fee for a permit issued for irrigation of 51.10agricultural land is $20 for years in which: 51.11    (1) there is no appropriation of water under the permit; or 51.12    (2) the permit is suspended for more than seven consecutive days between May 1 51.13and October 1. 51.14    (g) A surcharge of $20 new text begin $30 new text end per million gallons in addition to the fee prescribed in 51.15paragraph (a) shall be applied to the volume of water used in each of the months of June, 51.16July, and August that exceeds the volume of water used in January for municipal water 51.17use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities 51.18with more than one permit shall be determined based on the total appropriations from all 51.19permits that supply a common distribution system. 51.20    Sec. 35. Minnesota Statutes 2008, section 103G.301, subdivision 2, is amended to read: 51.21    Subd. 2. Permit application fees. (a) A permit application fee to defray the costs of 51.22receiving, recording, and processing the application must be paid for a permit authorized 51.23under this chapter and for each request to amend or transfer an existing permit. new text begin Fees new text end 51.24 new text begin established under this subdivision, unless specified in paragraph (c), shall be compliant new text end 51.25 new text begin with section 16A.1285. new text end 51.26    (b) The fee for a project appropriating new text begin Proposed projects that require new text end water in excess 51.27of 100 million gallons per year must be assessed new text begin fees new text end to recover the reasonable costs 51.28of preparing and processing the permit, including costs new text begin incurred to evaluate the project new text end 51.29 new text begin and the costs incurred new text end for environmental review. Fees collected under this paragraph 51.30must be credited to an account in the natural resources fund and are appropriated to the 51.31commissioner for fiscal years 2008 and 2009. 51.32    (c) The fee to apply for a permit to appropriate water, other than a permit subject 51.33to the new text begin in addition to any new text end fee under paragraph (b); a permit to construct or repair a dam 51.34that is subject to dam safety inspection; or a state general permit or to apply for the state 51.35water bank program is $150. The application fee for a permit to work in public waters or 52.1to divert waters for mining must be at least $150, but not more than $1,000, according to a 52.2schedule of fees adopted under section . 52.3    Sec. 36. Minnesota Statutes 2008, section 103G.301, subdivision 3, is amended to read: 52.4    Subd. 3. Field inspection fees. (a) In addition to the application fee, the 52.5commissioner may charge a field inspection fee for: 52.6(1) projects requiring a mandatory environmental assessment under chapter 116D; 52.7(2) projects undertaken without a required permit or application; and 52.8(3) projects undertaken in excess of limitations established in an issued permit. 52.9(b) The fee must be at least $100 but not more than actual inspection costs. 52.10(c) The fee is to cover actual costs related to a permit applied for under this chapter 52.11or for a project undertaken without proper authorization. 52.12(d) The commissioner shall establish a schedule of field inspection fees under section 52.1316A.1285 . The schedule must include actual costs related to field inspection, including 52.14investigations of the area affected by the proposed activity, analysis of the proposed 52.15activity, consultant services, and subsequent monitoring, if any, of the activity authorized 52.16by the permit. new text begin Fees collected under this subdivision must be credited to an account in the new text end 52.17 new text begin natural resources fund and are appropriated to the commissioner. new text end 52.18    Sec. 37. Minnesota Statutes 2008, section 115.03, subdivision 5c, is amended to read: 52.19    Subd. 5c. Regulation of storm water discharges. (a) The agency may issue a 52.20general permit to any category or subcategory of point source storm water discharges 52.21that it deems administratively reasonable and efficient without making any findings 52.22under agency rules. Nothing in this subdivision precludes the agency from requiring an 52.23individual permit for a point source storm water discharge if the agency finds that it is 52.24appropriate under applicable legal or regulatory standards. 52.25(b) Pursuant to this paragraph, the legislature authorizes the agency to adopt and 52.26enforce rules regulating point source storm water discharges. No further legislative 52.27approval is required under any other legal or statutory provision whether enacted before or 52.28after May 29, 2003. 52.29 new text begin (c) The agency shall develop performance standards, design standards, or other new text end 52.30 new text begin tools to enable and promote the implementation of low-impact development and other new text end 52.31 new text begin storm water management techniques. For the purposes of this section, "low-impact new text end 52.32 new text begin development" means an approach to storm water management that mimics a site's natural new text end 52.33 new text begin hydrology as the landscape is developed. Using the low-impact development approach, new text end 52.34 new text begin storm water is managed on-site and the rate and volume of predevelopment storm water new text end 53.1 new text begin reaching receiving waters is unchanged. The calculation of predevelopment hydrology is new text end 53.2 new text begin based on native soil and vegetation. new text end 53.3    Sec. 38. Minnesota Statutes 2008, section 115.073, is amended to read: 53.4115.073 ENFORCEMENT FUNDING. 53.5Except as provided in section 115C.05, all money recovered by the state under this 53.6chapter and chapters 115A and 116, including civil penalties and money paid under an 53.7agreement, stipulation, or settlement, excluding money paid for past due fees or taxes, 53.8up to the amount appropriated for implementation of Laws 1991, chapter 347, must be 53.9deposited in the state treasury and credited to the environmental fund. 53.10    Sec. 39. Minnesota Statutes 2008, section 115.56, subdivision 4, is amended to read: 53.11    Subd. 4. License fee. new text begin (a) new text end new text begin Until the agency adopts a final rule establishing fees for new text end 53.12 new text begin licenses under subdivision 2, new text end the fee for a license required under subdivision 2 is $100 new text begin new text end 53.13 new text begin $200 new text end per year new text begin and the annual license fee for a business with multiple licenses shall not new text end 53.14 new text begin exceed $400 new text end . 53.15 new text begin (b) new text end Revenue from the new text begin any new text end fees new text begin charged by the agency for licenses under subdivision new text end 53.16 new text begin 2 new text end must be credited to the environmental fund and is exempt from section 16A.1285. 53.17    Sec. 40. Minnesota Statutes 2008, section 115.77, subdivision 1, is amended to read: 53.18    Subdivision 1. Fees established. The following fees are established for the 53.19purposes indicated: new text begin agency shall collect fees in amounts necessary, but no greater than the new text end 53.20 new text begin amounts necessary, to cover the reasonable costs of reviewing applications and issuing new text end 53.21 new text begin certifications. new text end 53.22(1) application for examination, $32; 53.23(2) issuance of certificate, $23; 53.24(3) reexamination resulting from failure to pass an examination, $32; 53.25(4) renewal of certificate, $23; 53.26(5) replacement certificate, $10; and 53.27(6) reinstatement or reciprocity certificate, $40. 53.28    Sec. 41. Minnesota Statutes 2008, section 115A.1314, subdivision 2, is amended to 53.29read: 53.30    Subd. 2. Creation of account; appropriations. (a) The electronic waste account 53.31is established in the environmental fund. The commissioner of revenue must deposit 53.32receipts from the fee established in subdivision 1 in the account. Any interest earned on 54.1the account must be credited to the account. Money from other sources may be credited to 54.2the account. Beginning in the second program year and continuing each program year 54.3thereafter, as of the last day of each program year, the commissioner of revenue shall 54.4determine the total amount of the variable fees that were collected. By July 15, 2009, and 54.5each July 15 thereafter, the commissioner of the Pollution Control Agency shall inform 54.6the commissioner of revenue of the amount necessary to operate the program in the new 54.7program year. To the extent that the total fees collected by the commissioner of revenue 54.8in connection with this section exceed the amount the commissioner of the Pollution 54.9Control Agency determines necessary to operate the program for the new program 54.10year, the commissioner of revenue shall refund on a pro rata basis, to all manufacturers 54.11who paid any fees for the previous program year, the amount of fees collected by the 54.12commissioner of revenue in excess of the amount necessary to operate the program for the 54.13new program year. No individual refund is required of amounts of $100 or less for a fiscal 54.14year. Manufacturers who report collections less than 50 percent of their obligation for the 54.15previous program year are not eligible for a refund. Amounts not refunded pursuant to this 54.16paragraph shall remain in the account. The commissioner of revenue shall issue refunds 54.17by August 10. In lieu of issuing a refund, the commissioner of revenue may grant credit 54.18against a manufacturer's variable fee due by September 1. 54.19    (b) Until June 30, 2009 new text begin 2011 new text end , money in the account is annually appropriated to the 54.20Pollution Control Agency: 54.21    (1) for the purpose of implementing sections 115A.1312 to 115A.1330, including 54.22transfer to the commissioner of revenue to carry out the department's duties under 54.23section 115A.1320, subdivision 2, and transfer to the commissioner of administration for 54.24responsibilities under section 115A.1324; and 54.25    (2) to the commissioner of the Pollution Control Agency to be distributed on a 54.26competitive basis through contracts with counties outside the 11-county metropolitan 54.27area, as defined in paragraph (c), and with private entities that collect for recycling 54.28covered electronic devices in counties outside the 11-county metropolitan area, where the 54.29collection and recycling is consistent with the respective county's solid waste plan, for 54.30the purpose of carrying out the activities under sections 115A.1312 to 115A.1330. In 54.31awarding competitive grants under this clause, the commissioner must give preference to 54.32counties and private entities that are working cooperatively with manufacturers to help 54.33them meet their recycling obligations under section 115A.1318, subdivision 1. 54.34    (c) The 11-county metropolitan area consists of the counties of Anoka, Carver, 54.35Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright. 55.1    Sec. 42. Minnesota Statutes 2008, section 115A.557, subdivision 1, is amended to read: 55.2    Subdivision 1. Distribution; formula. Any funds appropriated to the commissioner 55.3for the purpose of distribution to counties under this section must be distributed each fiscal 55.4year by the commissioner based on population, except a county may not receive less than 55.5$55,000 in a fiscal year. If the amount available for distribution under this section is less 55.6 new text begin or more new text end than the amount available in fiscal year 2001, the minimum county payment under 55.7this section is reduced new text begin or increased new text end proportionately. For purposes of this subdivision, 55.8"population" has the definition given in section 477A.011, subdivision 3. A county that 55.9participates in a multicounty district that manages solid waste and that has responsibility 55.10for recycling programs as authorized in section 115A.552, must pass through to the 55.11districts funds received by the county in excess of the minimum county payment under 55.12this section in proportion to the population of the county served by that district. 55.13    Sec. 43. new text begin [115A.559] COMPOSTING COMPETITIVE GRANT PROGRAM. new text end 55.14     new text begin Subdivision 1. new text end new text begin Grant program established. new text end new text begin The commissioner shall make new text end 55.15 new text begin competitive grants to political subdivisions to increase composting, reduce the amount of new text end 55.16 new text begin organic wastes entering disposal facilities, and reduce the costs associated with hauling new text end 55.17 new text begin waste by locating the composting site as close as possible to the site where the waste is new text end 55.18 new text begin generated. To achieve the purpose of the grant program, the commissioner shall actively new text end 55.19 new text begin recruit potential applicants beyond traditional solid waste professionals and organizations, new text end 55.20 new text begin such as soil and water conservation districts and schools. Each grant must include an new text end 55.21 new text begin educational component on the methods and benefits of composting. new text end 55.22     new text begin Subd. 2. new text end new text begin Application. new text end new text begin (a) The commissioner must develop forms and procedures new text end 55.23 new text begin for soliciting and reviewing applications for grants under this section. new text end 55.24 new text begin (b) The determination of whether to make a grant under this section is within the new text end 55.25 new text begin discretion of the commissioner, subject to subdivision 4. The commissioner's decisions new text end 55.26 new text begin are not subject to judicial review, except for abuse of discretion. new text end 55.27     new text begin Subd. 3. new text end new text begin Priorities; eligible projects. new text end new text begin (a) If applications for grants exceed the new text end 55.28 new text begin available appropriations, grants must be made for projects that, in the commissioner's new text end 55.29 new text begin judgment, provide the highest return in public benefits. new text end 55.30 new text begin (b) To be eligible to receive a grant, a project must: new text end 55.31 new text begin (1) be locally administered; new text end 55.32 new text begin (2) have measurable outcomes; and new text end 55.33 new text begin (3) include at least one of the following elements: new text end 55.34 new text begin (i) the development of erosion control methods that use compost; new text end 56.1 new text begin (ii) activities to encourage on-site composting by homeowners; or new text end 56.2 new text begin (iii) activities to encourage composting by schools or public institutions. new text end 56.3     new text begin Subd. 4. new text end new text begin Cancellation of grant. new text end new text begin If a grant is awarded under this section and new text end 56.4 new text begin funds are not encumbered for the grant within four years after the award date, the grant new text end 56.5 new text begin must be canceled. new text end 56.6    Sec. 44. Minnesota Statutes 2008, section 115A.931, is amended to read: 56.7115A.931 YARD WASTE PROHIBITION. 56.8(a) Except as authorized by the agency, in the metropolitan area after January 1, 56.91990, and outside the metropolitan area after January 1, 1992, a person may not place 56.10yard waste: 56.11(1) in mixed municipal solid waste; 56.12(2) in a disposal facility; or 56.13(3) in a resource recovery facility except for the purposes of reuse, composting, or 56.14cocomposting. 56.15    (b) [Renumbered 115A.03, subd 38] 56.16 new text begin (c) On or after January 1, 2010, a person may not place yard waste or new text end 56.17 new text begin source-separated compostable materials generated in a metropolitan county in a plastic bag new text end 56.18 new text begin delivered to a transfer station or compost facility unless the bag meets all the specifications new text end 56.19 new text begin in ASTM Standard Specification for Compostable Plastics (D6400). For purposes of this new text end 56.20 new text begin paragraph, "metropolitan county" has the meaning given in section 473.121, subdivision new text end 56.21 new text begin 4, and "ASTM" has the meaning given in section 296A.01, subdivision 6. new text end 56.22 new text begin (d) A person who immediately empties a plastic bag containing yard waste or new text end 56.23 new text begin source-separated compostable materials delivered to a transfer station or compost facility new text end 56.24 new text begin and removes the plastic bag from the transfer station or compost facility is exempt from new text end 56.25 new text begin paragraph (c). new text end 56.26 new text begin (e) Residents of a city of the first class that currently contracts for the collection of new text end 56.27 new text begin yard waste are exempt from paragraph (c) until January 1, 2013, if, by that date, the new text end 56.28 new text begin city implements a citywide source-separated compostable materials collection program new text end 56.29 new text begin using durable carts. new text end 56.30    Sec. 45. Minnesota Statutes 2008, section 116.0711, is amended to read: 56.31116.0711 FEEDLOT PERMIT CONDITIONS new text begin PERMITS; CONDITIONS; new text end 56.32 new text begin COUNTY GRANTS new text end . 56.33     new text begin Subdivision 1. new text end new text begin Conditions. new text end (a) The agency shall not require feedlot permittees to 56.34maintain records as to rainfall or snowfall as a condition of a general feedlot permit if the 57.1owner directs the commissioner or agent of the commissioner to appropriate data on 57.2precipitation maintained by a government agency or educational institution. 57.3(b) A feedlot permittee shall give notice to the agency when the permittee proposes 57.4to transfer ownership or control of the feedlot to a new party. The commissioner shall 57.5not unreasonably withhold or unreasonably delay approval of any transfer request. This 57.6request shall be handled in accordance with sections 116.07 and 15.992. 57.7(c) The Environmental Quality Board shall review and recommend modifications 57.8to environmental review rules related to phased actions and animal agriculture facilities. 57.9The Environmental Quality Board shall report recommendations to the chairs of the 57.10committees of the senate and house of representatives with jurisdiction over agriculture 57.11and the environment by January 15, 2002. 57.12(d) If the owner of an animal feedlot requests an extension for an application for a 57.13national pollutant discharge elimination permit or state disposal system permit by June 1, 57.142001, then the agency shall grant an extension for the application to September 1, 2001. 57.15(e) new text begin (c) new text end An animal feedlot in shoreland that has been unused may resume operation 57.16after obtaining a permit from the agency or county, regardless of the number of years that 57.17the feedlot was unused. 57.18     new text begin Subd. 2. new text end new text begin County feedlot program grants; three-part formula. new text end new text begin (a) Money new text end 57.19 new text begin appropriated to the commissioner to make grants to delegated counties to administer new text end 57.20 new text begin the county feedlot program must be distributed according to the three-part formula in new text end 57.21 new text begin paragraphs (b) to (d). new text end 57.22     new text begin (b) Number of feedlots in the county: 60 percent of the total appropriation must be new text end 57.23 new text begin distributed according to the number of feedlots that are required to be registered in the new text end 57.24 new text begin county. Grants awarded under this paragraph must be matched with a combination of local new text end 57.25 new text begin cash and in-kind contributions. new text end 57.26     new text begin (c) Minimum program requirements: 25 percent of the total appropriation must be new text end 57.27 new text begin distributed based on the county (1) conducting an annual number of inspections at feedlots new text end 57.28 new text begin that is equal to or greater than seven percent of the total number of registered feedlots that new text end 57.29 new text begin are required to be registered in the county; and (2) meeting noninspection minimum new text end 57.30 new text begin program requirements as identified in the county feedlot workplan form. Counties that do new text end 57.31 new text begin not meet the inspection requirement must not receive 50 percent of the eligible funding new text end 57.32 new text begin under this paragraph. Counties must receive funding for noninspection requirements under new text end 57.33 new text begin this paragraph according to a scoring system checklist administered by the commissioner. new text end 57.34 new text begin The commissioner, in consultation with the Minnesota Association of County Feedlot new text end 57.35 new text begin Officers executive team, shall make a final decision regarding any appeal by a county new text end 57.36 new text begin regarding the terms and conditions of this paragraph. new text end 58.1     new text begin (d) Performance credits: 15 percent of the total appropriation must be distributed new text end 58.2 new text begin according to work that has been done by the counties during the fiscal year. The amount new text end 58.3 new text begin must be determined by the number of performance credits a county accumulates during new text end 58.4 new text begin the year based on a performance credit matrix jointly agreed upon by the commissioner new text end 58.5 new text begin in consultation with the Minnesota Association of County Feedlot Officers executive new text end 58.6 new text begin team. To receive an award under this paragraph, the county must meet the requirements new text end 58.7 new text begin of paragraph (c), clause (1), and achieve 90 percent of the requirements according to new text end 58.8 new text begin paragraph (c), clause (2), of the formula. The rate of reimbursement per performance new text end 58.9 new text begin credit item must not exceed $200. new text end 58.10     new text begin Subd. 3. new text end new text begin Minimum grant; prorated grant; transfers. new text end new text begin Delegated counties are new text end 58.11 new text begin eligible for a minimum grant of $7,500. To receive the full $7,500 amount, a county must new text end 58.12 new text begin meet the requirements under subdivision 2, paragraph (c). Nondelegated counties that new text end 58.13 new text begin apply for delegation shall receive a grant prorated according to the number of full quarters new text end 58.14 new text begin remaining in the program year from the date of commissioner approval of the delegation. new text end 58.15 new text begin Awards to any newly delegated counties must be made out of the appropriation reserved new text end 58.16 new text begin under subdivision 2, paragraph (d). The commissioner, in consultation with the Minnesota new text end 58.17 new text begin Association of County Feedlot Officers executive team, may decide to use money reserved new text end 58.18 new text begin under subdivision 2, paragraph (d), in an amount not to exceed five percent of the total new text end 58.19 new text begin annual appropriation for initiatives to enhance existing delegated county feedlot programs, new text end 58.20 new text begin information and education, or technical assistance efforts to reduce feedlot-related new text end 58.21 new text begin pollution hazards. Any amount remaining after distribution under subdivision 2, new text end 58.22 new text begin paragraphs (b) and (c), must be transferred for purposes of subdivision 2, paragraph (d). new text end 58.23    Sec. 46. Minnesota Statutes 2008, section 116.41, subdivision 2, is amended to read: 58.24    Subd. 2. Training and certification programs. The agency shall develop standards 58.25of competence for persons operating and inspecting various classes of disposal facilities. 58.26The agency shall conduct training programs for persons operating facilities for the 58.27disposal of waste and for inspectors of such facilities, and may new text begin shall new text end charge such fees as 58.28are necessary to cover the actual costs of the training programs. All fees received shall be 58.29paid into the state treasury and credited to the Pollution Control Agency training account 58.30and are appropriated to the agency to pay expenses relating to the training of disposal 58.31facility personnel. 58.32The agency shall require operators and inspectors of such facilities to obtain from 58.33the agency a certificate of competence. The agency shall conduct examinations to test the 58.34competence of applicants for certification, and shall require that certificates be renewed at 58.35reasonable intervals. The agency may charge such fees as are necessary to cover the actual 59.1costs of receiving and processing applications, conducting examinations, and issuing 59.2and renewing certificates. Certificates shall not be required for a private individual for 59.3land-spreading and associated interim and temporary storage of sewage sludge on property 59.4owned or farmed by that individual. 59.5    Sec. 47. new text begin [116.9401] DEFINITIONS. new text end 59.6 new text begin (a) For the purposes of sections 116.9401 to 116.9407, the following terms have new text end 59.7 new text begin the meanings given them. new text end 59.8 new text begin (b) "Agency" means the Pollution Control Agency. new text end 59.9 new text begin (c) "Alternative" means a substitute process, product, material, chemical, strategy, new text end 59.10 new text begin or combination of these that is technically feasible and serves a functionally equivalent new text end 59.11 new text begin purpose to a chemical in a children's product. new text end 59.12 new text begin (d) "Chemical" means a substance with a distinct molecular composition or a group new text end 59.13 new text begin of structurally related substances and includes the breakdown products of the substance or new text end 59.14 new text begin substances that form through decomposition, degradation, or metabolism. new text end 59.15 new text begin (e) "Chemical of high concern" means a chemical identified on the basis of credible new text end 59.16 new text begin scientific evidence by a state, federal, or international agency as being known or suspected new text end 59.17 new text begin with a high degree of probability to: new text end 59.18 new text begin (1) harm the normal development of a fetus or child or cause other developmental new text end 59.19 new text begin toxicity; new text end 59.20 new text begin (2) cause cancer, genetic damage, or reproductive harm; new text end 59.21 new text begin (3) disrupt the endocrine or hormone system; new text end 59.22 new text begin (4) damage the nervous system, immune system, or organs, or cause other systemic new text end 59.23 new text begin toxicity; new text end 59.24 new text begin (5) be persistent, bioaccumulative, and toxic; or new text end 59.25 new text begin (6) be very persistent and very bioaccumulative. new text end 59.26 new text begin (f) "Child" means a person under 12 years of age. new text end 59.27 new text begin (g) "Children's product" means a consumer product intended for use by children, new text end 59.28 new text begin such as baby products, toys, car seats, personal care products, and clothing. new text end 59.29 new text begin (h) "Commissioner" means the commissioner of the Pollution Control Agency. new text end 59.30 new text begin (i) "Department" means the Department of Health. new text end 59.31 new text begin (j) "Distributor" means a person who sells consumer products to retail establishments new text end 59.32 new text begin on a wholesale basis. new text end 59.33 new text begin (k) "Green chemistry" means an approach to designing and manufacturing products new text end 59.34 new text begin that minimizes the use and generation of toxic substances. new text end 60.1 new text begin (l) "Manufacturer" means any person who manufactures a final consumer product new text end 60.2 new text begin sold at retail or whose brand name is affixed to the consumer product. In the case of a new text end 60.3 new text begin consumer product imported into the United States, manufacturer includes the importer new text end 60.4 new text begin or domestic distributor of the consumer product if the person who manufactured or new text end 60.5 new text begin assembled the consumer product or whose brand name is affixed to the consumer product new text end 60.6 new text begin does not have a presence in the United States. new text end 60.7 new text begin (m) "Priority chemical" means a chemical identified by the Department of Health as new text end 60.8 new text begin a chemical of high concern that meets the criteria in section 116.9403. new text end 60.9 new text begin (n) "Safer alternative" means an alternative whose potential to harm human health is new text end 60.10 new text begin less than that of the use of a priority chemical that it could replace. new text end 60.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 60.12    Sec. 48. new text begin [116.9402] IDENTIFICATION OF CHEMICALS OF HIGH CONCERN. new text end 60.13 new text begin (a) By July 1, 2010, the department shall, after consultation with the agency, new text end 60.14 new text begin generate a list of chemicals of high concern. new text end 60.15 new text begin (b) The department must periodically review and revise the list of chemicals of high new text end 60.16 new text begin concern at least every three years. The department may add chemicals to the list if the new text end 60.17 new text begin chemical meets one or more of the criteria in section 116.9401, paragraph (e). new text end 60.18 new text begin (c) The department shall consider chemicals listed as a suspected carcinogen, new text end 60.19 new text begin reproductive or developmental toxicant, or as being persistent, bioaccumulative, and new text end 60.20 new text begin toxic, or very persistent and very bioaccumulative by a state, federal, or international new text end 60.21 new text begin agency. These agencies may include, but are not limited to, the California Environmental new text end 60.22 new text begin Protection Agency, the Washington Department of Ecology, the United States Department new text end 60.23 new text begin of Health, the United States Environmental Protection Agency, the United Nation's World new text end 60.24 new text begin Health Organization, and European Parliament Annex X1V concerning the Registration, new text end 60.25 new text begin Evaluation, Authorisation, and Restriction of Chemicals. new text end 60.26 new text begin (d) The department may consider chemicals listed by another state as harmful to new text end 60.27 new text begin human health or the environment for possible inclusion in the list of chemicals of high new text end 60.28 new text begin concern. new text end 60.29 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 60.30    Sec. 49. new text begin [116.9403] IDENTIFICATION OF PRIORITY CHEMICALS. new text end 60.31 new text begin (a) The department, after consultation with the agency, may designate a chemical of new text end 60.32 new text begin high concern as a priority chemical if the department finds that the chemical: new text end 60.33 new text begin (1) has been identified as a high-production volume chemical by the United States new text end 60.34 new text begin Environmental Protection Agency; and new text end 61.1 new text begin (2) meets any of the following criteria: new text end 61.2 new text begin (i) the chemical has been found through biomonitoring to be present in human blood, new text end 61.3 new text begin including umbilical cord blood, breast milk, urine, or other bodily tissues or fluids; new text end 61.4 new text begin (ii) the chemical has been found through sampling and analysis to be present in new text end 61.5 new text begin household dust, indoor air, drinking water, or elsewhere in the home environment; or new text end 61.6 new text begin (iii) the chemical has been found through monitoring to be present in fish, wildlife, new text end 61.7 new text begin or the natural environment. new text end 61.8 new text begin (b) By February 1, 2011, the department shall publish a list of priority chemicals in new text end 61.9 new text begin the State Register and on the department's Internet Web site and shall update the published new text end 61.10 new text begin list whenever a new priority chemical is designated. new text end 61.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 61.12    Sec. 50. new text begin [116.9405] APPLICABILITY. new text end 61.13 new text begin The requirements of sections 116.9401 to 116.9407 do not apply to: new text end 61.14 new text begin (1) chemicals in used children's products; new text end 61.15 new text begin (2) priority chemicals used in the manufacturing process, but that are not present new text end 61.16 new text begin in the final product; new text end 61.17 new text begin (3) priority chemicals used in agricultural production; new text end 61.18 new text begin (4) motor vehicles as defined in chapter 168 or watercraft as defined in chapter new text end 61.19 new text begin 86B or their component parts, except that the use of priority chemicals in detachable new text end 61.20 new text begin car seats is not exempt; new text end 61.21 new text begin (5) priority chemicals generated solely as combustion by-products or that are present new text end 61.22 new text begin in combustible fuels; new text end 61.23 new text begin (6) retailers; new text end 61.24 new text begin (7) pharmaceutical products or biologics; new text end 61.25 new text begin (8) a medical device as defined in the federal Food, Drug, and Cosmetic Act, United new text end 61.26 new text begin States Code, title 21, section 321(h); new text end 61.27 new text begin (9) food and food or beverage packaging, except a container containing baby food new text end 61.28 new text begin or infant formula; new text end 61.29 new text begin (10) consumer electronics products and electronic components, including but not new text end 61.30 new text begin limited to personal computers; audio and video equipment; calculators; digital displays; new text end 61.31 new text begin wireless phones; cameras; game consoles; printers; and handheld electronic and electrical new text end 61.32 new text begin devices used to access interactive software or their associated peripherals; or products that new text end 61.33 new text begin comply with the provisions of directive 2002/95/EC of the European Union, adopted by new text end 61.34 new text begin the European Parliament and Council of the European Union now or hereafter in effect; or new text end 62.1     new text begin (11) outdoor sport equipment, including snowmobiles as defined in section 84.81, new text end 62.2 new text begin subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal new text end 62.3 new text begin watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section new text end 62.4 new text begin 86B.005, subdivision 18; and off-highway motorcycles, as defined in section 84.787, new text end 62.5 new text begin subdivision 7, and all attachments and repair parts for all of this equipment. new text end 62.6 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 62.7    Sec. 51. new text begin [116.9406] DONATIONS TO THE STATE. new text end 62.8 new text begin The commissioner may accept donations, grants, and other funds to carry out the new text end 62.9 new text begin purposes of sections 116.9401 to 116.9407. All donations, grants, and other funds must new text end 62.10 new text begin be accepted without preconditions regarding the outcomes of the regulatory oversight new text end 62.11 new text begin processes set forth in sections 116.9401 to 116.9407. new text end 62.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 62.13    Sec. 52. new text begin [116.9407] PARTICIPATION IN INTERSTATE CHEMICALS new text end 62.14 new text begin CLEARINGHOUSE. new text end 62.15 new text begin The state may cooperate with other states in an interstate chemicals clearinghouse new text end 62.16 new text begin regarding chemicals in consumer products, including the classification of priority new text end 62.17 new text begin chemicals in commerce; organizing and managing available data on chemicals, including new text end 62.18 new text begin information on uses, hazards, risks, and environmental and health concerns; and producing new text end 62.19 new text begin and evaluating information on safer alternatives to specific uses of priority chemicals. new text end 62.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 62.21    Sec. 53. Minnesota Statutes 2008, section 116C.834, subdivision 1, is amended to read: 62.22    Subdivision 1. Costs. All costs incurred by the state to carry out its responsibilities 62.23under the compact and under sections 116C.833 to 116C.843 shall be paid by generators 62.24of low-level radioactive waste in this state through fees assessed by the Pollution Control 62.25Agency. Fees may be reasonably assessed on the basis of volume or degree of hazard of 62.26the waste produced by a generator. Costs for which fees may be assessed include, but 62.27are not limited to: 62.28(1) the state contribution required to join the compact; 62.29(2) the expenses of the commission member and state agency costs incurred to 62.30support the work of the Interstate Commission; and 62.31(3) regulatory costs. 62.32The fees are exempt from section . 63.1    Sec. 54. new text begin [216H.021] GREENHOUSE GAS EMISSIONS REPORTING. new text end 63.2     new text begin Subdivision 1. new text end new text begin Commissioner to establish reporting system and maintain new text end 63.3 new text begin inventory. new text end new text begin In order to measure the progress in meeting the goals of section 216H.02, new text end 63.4 new text begin subdivision 1, and to provide information to develop strategies to achieve those goals, the new text end 63.5 new text begin commissioner of the Pollution Control Agency shall establish a system for reporting and new text end 63.6 new text begin maintaining an inventory of greenhouse gas emissions. The commissioner must consult new text end 63.7 new text begin with the chief information officer of the Office of Enterprise Technology about system new text end 63.8 new text begin design and operation. Greenhouse gas emissions include those emissions described in new text end 63.9 new text begin section 216H.01, subdivision 2. new text end 63.10     new text begin Subd. 2. new text end new text begin Reporting system design. new text end new text begin (a) The commissioner shall, to the extent new text end 63.11 new text begin practicable, design the system to coordinate with other regional or federal greenhouse gas new text end 63.12 new text begin emissions-reporting and inventory systems. The coordination may, without limitation, new text end 63.13 new text begin include the use of similar forms and reports, the sharing of information, and the use of new text end 63.14 new text begin common facilities, systems, and databases. new text end 63.15 new text begin (b) The reporting system need not include all sources of emissions nor all amounts new text end 63.16 new text begin of emissions but, at its outset, must include: new text end 63.17 new text begin (1) all stationary sources and other facilities required to obtain a permit under Title new text end 63.18 new text begin V of the federal Clean Air Act, United States Code, title 42, section 7401 et. seq.; and new text end 63.19 new text begin (2) facilities whose annual carbon dioxide equivalent emissions, as defined in new text end 63.20 new text begin section 216H.10, subdivision 3, exceed a threshold set by the commissioner at between new text end 63.21 new text begin 10,000 tons and 25,000 tons. The reporting threshold set by the commissioner must new text end 63.22 new text begin be consistent with the goal of accurately tracking progress in attaining greenhouse new text end 63.23 new text begin gas emissions-reduction goals and the need for emissions data to assist in developing new text end 63.24 new text begin greenhouse gas emissions-reduction strategies. new text end 63.25 new text begin (c) In designing the greenhouse gas emissions reporting system, the commissioner new text end 63.26 new text begin shall consider requiring the reporting of greenhouse gas emissions from transportation new text end 63.27 new text begin fuels and greenhouse gas emissions from natural gas combustion that are not included new text end 63.28 new text begin in reporting from stationary sources. In determining whether to include reporting of new text end 63.29 new text begin these emissions, the commissioner must consider both the goal of accurately tracking new text end 63.30 new text begin progress in attaining greenhouse gas emissions-reduction goals and the need for emissions new text end 63.31 new text begin data to assist in developing greenhouse gas emissions-reduction strategies recommended new text end 63.32 new text begin by the Minnesota Climate Change Advisory Group. If the commissioner decides that new text end 63.33 new text begin transportation fuels and portions of natural gas combustion should not be included in new text end 63.34 new text begin the initial emissions reporting system, the commissioner must report to the chairs and new text end 63.35 new text begin ranking minority members of the senate and house of representatives committees with new text end 63.36 new text begin primary jurisdiction over energy and environmental policy the reasons for that decision new text end 64.1 new text begin and suggestions for steps that should be taken to allow their inclusion in the emissions new text end 64.2 new text begin reporting system in the future. new text end 64.3 new text begin (d) A facility reporting greenhouse gas emissions under this section must maintain new text end 64.4 new text begin the data used to create the reports for a minimum of five years. new text end 64.5     new text begin Subd. 3. new text end new text begin Rules. new text end new text begin The commissioner of the Pollution Control Agency may adopt rules new text end 64.6 new text begin for the purposes of this section. new text end 64.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 64.8    Sec. 55. Minnesota Statutes 2008, section 216H.10, subdivision 7, is amended to read: 64.9    Subd. 7. High-GWP greenhouse gas. "High-GWP greenhouse gas" means 64.10hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride new text begin , nitrous trifluoride, and any new text end 64.11 new text begin other gas the agency determines by rule to have a high global warming potential new text end . 64.12    Sec. 56. Minnesota Statutes 2008, section 216H.11, is amended to read: 64.13216H.11 HIGH-GWP GREENHOUSE GAS REPORTING. 64.14    Subdivision 1. Gas manufacturers. Beginning new text begin By new text end October 1, 2008, and each year 64.15thereafter, a manufacturer of a high-GWP greenhouse gas must report to the agency the 64.16total amount of each high-GWP greenhouse gas sold to a purchaser in this state during 64.17the previous year. 64.18    Subd. 2. Purchases. Beginning new text begin By new text end October 1, 2008, and each year thereafter, 64.19a person in this state who purchases 500 new text begin 10,000 new text end metric tons or more carbon dioxide 64.20equivalent of a high-GWP greenhouse gas new text begin for use or retail sale in this state new text end must report 64.21to the agency, on a form prescribed by the commissioner, the total amount of each 64.22high-GWP greenhouse gas purchased new text begin for use or retail sale in this state new text end during the previous 64.23year and the purpose for which the gas was used. new text begin The commissioner may adopt rules new text end 64.24 new text begin under chapter 14 to establish a different reporting threshold or to adopt specific reporting new text end 64.25 new text begin requirements for commercial or industrial facilities that purchase high-GWP gases for use new text end 64.26 new text begin or retail sale in this state. new text end 64.27    Subd. 3. Acceptance of federal filing. With the approval of the commissioner, this 64.28section may be satisfied by filing with the commissioner a copy of a greenhouse gas 64.29emissions report filed with a federal agency new text begin or a regional or national greenhouse gas new text end 64.30 new text begin registry, provided that the entity with which the report is filed requires the emissions new text end 64.31 new text begin data to be verified new text end . 64.32    Sec. 57. new text begin [325E.046] STANDARDS FOR LABELING PLASTIC BAGS. new text end 65.1     new text begin Subdivision 1. new text end new text begin "Biodegradable" label. new text end new text begin A manufacturer, distributor, or wholesaler new text end 65.2 new text begin may not offer for sale in this state a plastic bag labeled "biodegradable," "degradable," new text end 65.3 new text begin or any form of those terms, or in any way imply that the bag will chemically decompose new text end 65.4 new text begin into innocuous elements in a reasonably short period of time in a landfill, composting, or new text end 65.5 new text begin other terrestrial environment unless a scientifically based standard for biodegradability is new text end 65.6 new text begin developed and the bags are certified as meeting the standard. new text end 65.7     new text begin Subd. 2. new text end new text begin "Compostable" label. new text end new text begin A manufacturer, distributor, or wholesaler may not new text end 65.8 new text begin offer for sale in this state a plastic bag labeled "compostable" unless, at the time of sale, new text end 65.9 new text begin the bag meets the ASTM Standard Specification for Compostable Plastics (D6400). Each new text end 65.10 new text begin bag must be labeled to reflect that it meets the standard. For purposes of this subdivision, new text end 65.11 new text begin "ASTM" has the meaning given in section 296A.01, subdivision 6. new text end 65.12     new text begin Subd. 3. new text end new text begin Enforcement; civil penalty; injunctive relief. new text end new text begin (a) A manufacturer, new text end 65.13 new text begin distributor, or wholesaler who violates subdivision 1 or 2 is subject to a civil penalty of new text end 65.14 new text begin $100 for each prepackaged saleable unit offered for sale up to a maximum of $5,000 new text end 65.15 new text begin and may be enjoined from those violations. new text end 65.16 new text begin (b) The attorney general may bring an action in the name of the state in a court of new text end 65.17 new text begin competent jurisdiction for recovery of civil penalties or for injunctive relief as provided in new text end 65.18 new text begin this subdivision. The attorney general may accept an assurance of discontinuance of acts new text end 65.19 new text begin in violation of subdivision 1 or 2 in the manner provided in section 8.31, subdivision 2b. new text end 65.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective January 1, 2010. new text end 65.21    Sec. 58. new text begin [383B.236] WASTE MANAGEMENT BY HENNEPIN COUNTY. new text end 65.22 new text begin The Hennepin County Board of Commissioners may utilize money received from new text end 65.23 new text begin the sale of energy and recovered materials and placed in the county solid and hazardous new text end 65.24 new text begin waste fund under section 473.811, subdivision 9, for program expenses of the Department new text end 65.25 new text begin of Environmental Services, or the department or office succeeding to the functions of the new text end 65.26 new text begin Department of Environmental Services. This authority shall be in addition to the authority new text end 65.27 new text begin given in section 473.811, subdivision 9. new text end 65.28    Sec. 59. Laws 2005, chapter 156, article 2, section 45, as amended by Laws 2007, 65.29chapter 148, article 2, section 73, is amended to read: 65.30    Sec. 45. SALE OF STATE LAND. 65.31    Subdivision 1. State land sales. The commissioner of administration shall 65.32coordinate with the head of each department or agency having control of state-owned land 65.33to identify and sell at least $6,440,000 of state-owned land. Sales should be completed 65.34according to law and as provided in this section as soon as practicable but no later than 66.1June 30, 2009 new text begin 2011 new text end . Notwithstanding Minnesota Statutes, sections 16B.281 and 16B.282, 66.294.09 and 94.10, or any other law to the contrary, the commissioner may offer land 66.3for public sale by only providing notice of lands or an offer of sale of lands to state 66.4departments or agencies, the University of Minnesota, cities, counties, towns, school 66.5districts, or other public entities. 66.6    Subd. 2. Anticipated savings. Notwithstanding Minnesota Statutes, section 66.794.16, subdivision 3 , or other law to the contrary, the amount of the proceeds from the 66.8sale of land under this section that exceeds the actual expenses of selling the land must 66.9be deposited in the general fund, except as otherwise provided by the commissioner of 66.10finance. Notwithstanding Minnesota Statutes, section 94.11 or 16B.283, the commissioner 66.11of finance may establish the timing of payments for land purchased under this section. If 66.12the total of all money deposited into the general fund from the proceeds of the sale of land 66.13under this section is anticipated to be less than $6,440,000, the governor must allocate the 66.14amount of the difference as reductions to general fund operating expenditures for other 66.15executive agencies for the biennium ending June 30, 2009 new text begin 2011 new text end . 66.16    Subd. 3. Sale of state lands revolving loan fund. $290,000 is appropriated from 66.17the general fund in fiscal year 2006 to the commissioner of administration for purposes 66.18of paying the actual expenses of selling state-owned lands to achieve the anticipated 66.19savings required in this section. From the gross proceeds of land sales under this section, 66.20the commissioner of administration must cancel the amount of the appropriation in this 66.21subdivision to the general fund by June 30, 2009 new text begin 2011 new text end . 66.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 66.23    Sec. 60. Laws 2007, chapter 57, article 1, section 4, subdivision 2, is amended to read: 66.24 66.25 Subd. 2.Land and Mineral Resources Management 11,747,000 11,272,000 66.26 Appropriations by Fund 66.27 General 6,633,000 6,230,000 66.28 Natural Resources 3,551,000 3,447,000 66.29 Game and Fish 1,363,000 1,395,000 66.30 Permanent School 200,000 200,000 66.31$475,000 the first year and $475,000 the 66.32second year are for iron ore cooperative 67.1research. Of this amount, $200,000 each year 67.2is from the minerals management account in 67.3the natural resources fund and $275,000 each 67.4year is from the general fund. $237,500 the 67.5first year and $237,500 the second year are 67.6available only as matched by $1 of nonstate 67.7money for each $1 of state money. The 67.8match may be cash or in-kind. 67.9$86,000 the first year and $86,000 the 67.10second year are for minerals cooperative 67.11environmental research, of which $43,000 67.12the first year and $43,000 the second year are 67.13available only as matched by $1 of nonstate 67.14money for each $1 of state money. The 67.15match may be cash or in-kind. 67.16$2,800,000 the first year and $2,696,000 67.17the second year are from the minerals 67.18management account in the natural resources 67.19fund for use as provided in Minnesota 67.20Statutes, section 93.2236, paragraph (c). 67.21$200,000 the first year and $200,000 the 67.22second year are from the state forest suspense 67.23account in the permanent school fund to 67.24accelerate land exchanges, land sales, and 67.25commercial leasing of school trust lands and 67.26to identify, evaluate, and lease construction 67.27aggregate located on school trust lands. This 67.28appropriation is to be used for securing 67.29maximum long-term economic return 67.30from the school trust lands consistent with 67.31fiduciary responsibilities and sound natural 67.32resources conservation and management 67.33principles. 67.34$15,000 the first year is for a report 67.35by February 1, 2008, to the house and 68.1senate committees with jurisdiction over 68.2environment and natural resources on 68.3proposed minimum legal and conservation 68.4standards that could be applied to 68.5conservation easements acquired with public 68.6money. 68.7$1,201,000 the first year and $701,000 the 68.8second year are to support the land records 68.9management system. Of this amount, 68.10$326,000 the first year and $326,000 the 68.11second year are from the game and fish fund 68.12and $375,000 the first year and $375,000 the 68.13second year are from the natural resources 68.14fund. new text begin The unexpended balances are available new text end 68.15 new text begin until June 30, 2011. new text end The commissioner 68.16must report to the legislative chairs on 68.17environmental finance on the outcomes of 68.18the land records management support. 68.19$500,000 the first year and $500,000 the 68.20second year are for land asset management. 68.21This is a onetime appropriation. 68.22    Sec. 61. Laws 2008, chapter 363, article 5, section 4, subdivision 7, is amended to read: 68.23 Subd. 7.Fish and Wildlife Management 123,000 119,000 68.24 Appropriations by Fund 68.25 General -0- (427,000) 68.26 Game and Fish 123,000 546,000 68.27$329,000 in 2009 is a reduction for fish and 68.28wildlife management. 68.29$46,000 in 2009 is a reduction in the 68.30appropriation for the Minnesota Shooting 68.31Sports Education Center. 68.32$52,000 in 2009 is a reduction for licensing. 69.1$123,000 in 2008 and $246,000 in 2009 are 69.2from the game and fish fund to implement 69.3fish virus surveillance, prepare infrastructure 69.4to handle possible outbreaks, and implement 69.5control procedures for highest risk waters 69.6and fish production operations. This is a 69.7onetime appropriation. 69.8Notwithstanding Minnesota Statutes, section 69.9297A.94 , paragraph (e), $300,000 in 2009 69.10is from the second year appropriation in 69.11Laws 2007, chapter 57, article 1, section 4, 69.12subdivision 7, from the heritage enhancement 69.13account in the game and fish fund to study, 69.14predesign, and design new text begin a new text end shooting sports 69.15facilities at the Vermillion Highlands Wildlife 69.16Management Area authorized by Laws 2007, 69.17chapter 57, article 1, section 168 new text begin facility in new text end 69.18 new text begin the seven-county metropolitan area new text end . This is 69.19available onetime only and is available until 69.20expended. 69.21$300,000 in 2009 is appropriated from the 69.22game and fish fund for only activities that 69.23improve, enhance, or protect fish and wildlife 69.24resources. This is a onetime appropriation. 69.25    Sec. 62. new text begin SCORE REPORTING. new text end 69.26     new text begin Subdivision 1. new text end new text begin 2010 requirement. new text end new text begin The requirements for the report specified in new text end 69.27 new text begin Minnesota Statutes, section 115A.557, subdivision 3, paragraph (b), clause (2), that is due new text end 69.28 new text begin April 1, 2010, shall be abbreviated in scope. The information collected shall be sufficient new text end 69.29 new text begin for the commissioner of the Pollution Control Agency to determine that counties have new text end 69.30 new text begin complied with the requirements of this subdivision. new text end 69.31     new text begin Subd. 2. new text end new text begin Recommendations; report. new text end new text begin The commissioner of the Pollution Control new text end 69.32 new text begin Agency, in consultation with the Association of Minnesota Counties, the Solid Waste new text end 69.33 new text begin Administrators Association, the Solid Waste Management Coordinating Board, and other new text end 69.34 new text begin interested parties shall make recommendations to amend the reporting requirements under new text end 70.1 new text begin Minnesota Statutes, section 115A.557, subdivision 3, in ways that reduce the resources new text end 70.2 new text begin counties employ to collect the data reported, while ensuring that estimation methods used new text end 70.3 new text begin to report data are consistent across counties and that the data reported are accurate and new text end 70.4 new text begin useful as a guide to solid waste management policy makers. The commissioner shall also new text end 70.5 new text begin make recommendations regarding the feasibility and desirability of multicounty reporting new text end 70.6 new text begin of the data. The commissioner's recommendations must be presented in a report submitted new text end 70.7 new text begin to the chairs and ranking minority members of the senate and house of representatives new text end 70.8 new text begin committees and divisions with primary jurisdiction over solid waste policy and finance new text end 70.9 new text begin no later than January 15, 2010. new text end 70.10    Sec. 63. new text begin PRIORITY CHEMICAL REPORTS. new text end 70.11 new text begin (a) By January 15, 2010, the commissioner of health, in consultation with the new text end 70.12 new text begin Pollution Control Agency, shall report to the chairs and ranking minority members new text end 70.13 new text begin of the senate and house of representatives committees with primary jurisdiction over new text end 70.14 new text begin environment and natural resources policy, commerce, and public health regarding the new text end 70.15 new text begin progress on implementing new Minnesota Statutes, sections 116.9401 to 116.9406, and new text end 70.16 new text begin information on the progress of federal, international, and other states in identifying, new text end 70.17 new text begin prioritizing, evaluating, regulating, and reducing the use of chemicals of high concern new text end 70.18 new text begin and priority chemicals in children's products and in determining the availability of safer new text end 70.19 new text begin alternatives for specific applications and promoting the use of those safer alternatives. new text end 70.20 new text begin (b) By December 15, 2010, the commissioner of the Pollution Control Agency new text end 70.21 new text begin shall report to the chairs and ranking minority members of the senate and house of new text end 70.22 new text begin representatives committees with primary jurisdiction over environment and natural new text end 70.23 new text begin resources policy, commerce, and public health assessing mechanisms used by other states, new text end 70.24 new text begin the federal government, and other countries to reduce and phase out the use of priority new text end 70.25 new text begin chemicals in children's products and promote the use of safer alternatives. The report shall new text end 70.26 new text begin include potential funding mechanisms to implement this process. The report must include new text end 70.27 new text begin recommendations to promote and provide incentives for product design that use principles new text end 70.28 new text begin of green chemistry and life-cycle analysis. In developing the report, the agency may new text end 70.29 new text begin consult with stakeholders, including representatives of state agencies, manufacturers of new text end 70.30 new text begin children's products, chemical manufacturers, public health experts, independent scientists, new text end 70.31 new text begin and public interest groups. The report must include information on any stakeholder new text end 70.32 new text begin process consulted with or used in developing the report. new text end 70.33 new text begin (c) By January 15, 2010, the agency shall provide an interim report about the new text end 70.34 new text begin progress in developing the report required under paragraph (b), including information new text end 70.35 new text begin on the status of any stakeholder process. new text end 71.1 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 71.2    Sec. 64. new text begin REORGANIZATION PROHIBITION; ENVIRONMENTAL QUALITY new text end 71.3 new text begin BOARD. new text end 71.4 new text begin Notwithstanding Minnesota Statutes, section 16B.37, unless expressly provided by new text end 71.5 new text begin law, the commissioner of administration shall not reorganize the Environmental Quality new text end 71.6 new text begin Board within another agency, prior to July 1, 2011. new text end 71.7    Sec. 65. new text begin ENVIRONMENTAL REVIEW STREAMLINING REPORT. new text end 71.8 new text begin By February 15, 2010, the commissioner of the Pollution Control Agency, in new text end 71.9 new text begin consultation with staff from the Environmental Quality Board, shall submit a report new text end 71.10 new text begin to the environment and natural resources policy and finance committees of the house new text end 71.11 new text begin and senate on options to streamline the environmental review process under Minnesota new text end 71.12 new text begin Statutes, chapter 116D. In preparing the report, the commissioner shall consult with state new text end 71.13 new text begin agencies, local government units, and business, agriculture, and environmental advocacy new text end 71.14 new text begin organizations with an interest in the environmental review process. The report shall new text end 71.15 new text begin include options that will reduce the time required to complete environmental review and new text end 71.16 new text begin the cost of the process to responsible governmental units and project proposers while new text end 71.17 new text begin maintaining or improving air, land, and water quality standards. new text end 71.18    Sec. 66. new text begin COMPENSATION OF GOVERNOR'S STAFF. new text end 71.19 new text begin For fiscal years 2010 and 2011, the Department of Natural Resources, the Pollution new text end 71.20 new text begin Control Agency, and the Board of Water and Soil Resources may not use funds new text end 71.21 new text begin appropriated in this article or funds from any statutory or open appropriation to pay new text end 71.22 new text begin directly or indirectly for the compensation costs of staff in the office of the governor. new text end 71.23    Sec. 67. new text begin FISH CONSUMPTION ADVISORIES. new text end 71.24     new text begin The commissioner of natural resources, in cooperation with the commissioner of new text end 71.25 new text begin health, shall ensure that fish consumption advisories are displayed in at least four different new text end 71.26 new text begin languages, one of which must be English, to fairly represent the population of the state. new text end 71.27    Sec. 68. new text begin CARBON SEQUESTRATION FORESTRY REPORT. new text end 71.28 new text begin The Minnesota Forest Resources Council shall review the Minnesota Climate new text end 71.29 new text begin Change Advisory Group's recommendation to increase carbon sequestration in forests by new text end 71.30 new text begin planting 1,000,000 acres of trees and shall submit a report to the chairs of the house of new text end 71.31 new text begin representatives and senate committees with jurisdiction over energy and energy finance, new text end 71.32 new text begin environment and natural resources, and environment and natural resources finance; the new text end 72.1 new text begin governor; and the commissioner of natural resources by January 15, 2010. The report new text end 72.2 new text begin shall, at a minimum, include recommendations on implementation and analysis of the new text end 72.3 new text begin number and ownership of acres available for tree planting, the types of native species best new text end 72.4 new text begin suited for planting, the availability of planting stock, and potential costs. new text end 72.5    Sec. 69. new text begin REPEALER. new text end 72.6 new text begin Laws 2008, chapter 363, article 5, section 30, new text end new text begin is repealed. new text end 72.7ARTICLE 2 72.8ENERGY FINANCE 72.9 Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end 72.10     new text begin The amounts shown in this section summarize direct appropriations, by fund, made new text end 72.11 new text begin in this article. new text end 72.12 new text begin 2010 new text end new text begin 2011 new text end new text begin Total new text end 72.13 new text begin General new text end new text begin $ new text end new text begin 27,291,000 new text end new text begin $ new text end new text begin 27,041,000 new text end new text begin $ new text end new text begin 54,332,000 new text end 72.14 new text begin Petroleum Tank Cleanup new text end new text begin 1,084,000 new text end new text begin 1,084,000 new text end new text begin 2,168,000 new text end 72.15 new text begin Workers' Compensation new text end new text begin 751,000 new text end new text begin 751,000 new text end new text begin 1,502,000 new text end 72.16 72.17 new text begin Telecommunications Access new text end new text begin Minnesota new text end new text begin 600,000 new text end new text begin 600,000 new text end new text begin 1,200,000 new text end 72.18 new text begin Special Revenue new text end new text begin 1,350,000 new text end new text begin 625,000 new text end new text begin 1,975,000 new text end 72.19 new text begin Total new text end new text begin $ new text end new text begin 31,076,000 new text end new text begin $ new text end new text begin 30,101,000 new text end new text begin $ new text end new text begin 61,177,000 new text end 72.20 Sec. 2. new text begin ENERGY FINANCE APPROPRIATIONS. new text end 72.21     new text begin The sums shown in the columns marked "Appropriations" are appropriated to the new text end 72.22 new text begin agencies and for the purposes specified in this article. The appropriations are from the new text end 72.23 new text begin general fund, or another named fund, and are available for the fiscal years indicated new text end 72.24 new text begin for each purpose. The figures "2010" and "2011" used in this article mean that the new text end 72.25 new text begin appropriations listed under them are available for the fiscal year ending June 30, 2010, or new text end 72.26 new text begin June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal new text end 72.27 new text begin year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal new text end 72.28 new text begin year ending June 30, 2009, are effective the day following final enactment. new text end 72.29 new text begin APPROPRIATIONS new text end 72.30 new text begin Available for the Year new text end 72.31 new text begin Ending June 30 new text end 72.32 new text begin 2010 new text end new text begin 2011 new text end 73.1 Sec. 3. new text begin DEPARTMENT OF COMMERCE new text end 73.2 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 25,643,000 new text end new text begin $ new text end new text begin 24,668,000 new text end 73.3 new text begin Appropriations by Fund new text end 73.4 new text begin 2010 new text end new text begin 2011 new text end 73.5 new text begin General new text end new text begin 21,858,000 new text end new text begin 21,608,000 new text end 73.6 new text begin Petroleum Cleanup new text end new text begin 1,084,000 new text end new text begin 1,084,000 new text end 73.7 73.8 new text begin Workers' new text end new text begin Compensation new text end new text begin 751,000 new text end new text begin 751,000 new text end 73.9 new text begin Special Revenue new text end new text begin 1,350,000 new text end new text begin 625,000 new text end 73.10 73.11 new text begin Telecommunications new text end new text begin Access Minnesota new text end new text begin 600,000 new text end new text begin 600,000 new text end 73.12 new text begin The amounts that may be spent for each new text end 73.13 new text begin purpose are specified in the following new text end 73.14 new text begin subdivisions. new text end 73.15 new text begin Subd. 2. new text end new text begin Financial Institutions new text end new text begin 6,638,000 new text end new text begin 6,638,000 new text end 73.16 new text begin $1,000 each year is for consumer small loan new text end 73.17 new text begin regulation modifications in article 7. This new text end 73.18 new text begin appropriation is added to the department's new text end 73.19 new text begin base. new text end 73.20 73.21 new text begin Subd. 3. new text end new text begin Petroleum Tank Release Cleanup new text end new text begin Board new text end new text begin 1,084,000 new text end new text begin 1,084,000 new text end 73.22 new text begin This appropriation is from the petroleum new text end 73.23 new text begin tank release cleanup fund. The base funding new text end 73.24 new text begin for this program ends June 30, 2012. new text end 73.25 new text begin Subd. 4. new text end new text begin Administrative Services new text end new text begin 4,300,000 new text end new text begin 4,300,000 new text end 73.26 new text begin Subd. 5. new text end new text begin Telecommunications new text end new text begin 1,010,000 new text end new text begin 1,010,000 new text end 73.27 new text begin Subd. 6. new text end new text begin Market Assurance new text end new text begin 7,421,000 new text end new text begin 7,421,000 new text end 74.1 new text begin Appropriations by Fund new text end 74.2 new text begin General new text end new text begin 6,670,000 new text end new text begin 6,670,000 new text end 74.3 74.4 new text begin Workers' new text end new text begin Compensation new text end new text begin 751,000 new text end new text begin 751,000 new text end 74.5 new text begin Subd. 7. new text end new text begin Office of Energy Security new text end new text begin 4,590,000 new text end new text begin 3,615,000 new text end 74.6 new text begin Appropriations by Fund new text end 74.7 new text begin General new text end new text begin 3,240,000 new text end new text begin 2,990,000 new text end 74.8 new text begin Special Revenue new text end new text begin 1,350,000 new text end new text begin 625,000 new text end 74.9 new text begin $250,000 the first year is for E-85 grants new text end 74.10 new text begin under Laws 2007, chapter 57, article 2, new text end 74.11 new text begin section 3, subdivision 6. Grants for on-site new text end 74.12 new text begin blending pumps must include up to 75 new text end 74.13 new text begin percent of the total cost of the project, up to new text end 74.14 new text begin a maximum of $15,000 per pump. This is a new text end 74.15 new text begin onetime appropriation. new text end 74.16 new text begin The utility subject to Minnesota Statutes, new text end 74.17 new text begin section 116C.779, shall transfer $1,350,000 new text end 74.18 new text begin in fiscal year 2010 and $625,000 in fiscal new text end 74.19 new text begin year 2011 only to the Department of new text end 74.20 new text begin Commerce on a schedule determined by the new text end 74.21 new text begin commissioner of commerce. These funds new text end 74.22 new text begin must be deposited in the special revenue fund new text end 74.23 new text begin and are appropriated to the commissioner new text end 74.24 new text begin for grants to promote renewable energy new text end 74.25 new text begin projects and community energy outreach and new text end 74.26 new text begin assistance. Of the amounts identified: new text end 74.27 new text begin (1) $300,000 the first year is for a grant new text end 74.28 new text begin to the Board of Regents of the University new text end 74.29 new text begin of Minnesota for the Natural Resources new text end 74.30 new text begin and Research Institute at the University of new text end 74.31 new text begin Minnesota, Duluth, to develop statewide new text end 74.32 new text begin heat flow maps in order to determine new text end 75.1 new text begin the geothermal potential of the state of new text end 75.2 new text begin Minnesota; new text end 75.3 new text begin (2) $625,000 each year is for continued new text end 75.4 new text begin funding of community energy technical new text end 75.5 new text begin assistance and outreach on renewable new text end 75.6 new text begin energy and energy efficiency, as described new text end 75.7 new text begin in Minnesota Statutes, section 216C.385. new text end 75.8 new text begin Of this amount, $125,000 each year is for new text end 75.9 new text begin technical assistance in the metropolitan area; new text end 75.10 new text begin (3) $25,000 the first year is for a grant to new text end 75.11 new text begin a nonprofit organization with experience new text end 75.12 new text begin in creating innovative partnerships through new text end 75.13 new text begin collaborative action with diverse interests, new text end 75.14 new text begin including businesses, government agencies, new text end 75.15 new text begin environmental organizations, and others, new text end 75.16 new text begin to manage a stakeholder process on green new text end 75.17 new text begin jobs that would integrate the work of the new text end 75.18 new text begin state Green Jobs Task Force and the mayors' new text end 75.19 new text begin initiative on green manufacturing; and new text end 75.20 new text begin (4) $400,000 the first year is to provide new text end 75.21 new text begin financial rebates for new solar electricity new text end 75.22 new text begin projects. new text end 75.23 75.24 new text begin Subd. 8. new text end new text begin Telecommunications Access new text end new text begin Minnesota new text end new text begin 600,000 new text end new text begin 600,000 new text end 75.25 new text begin $300,000 the first year and $300,000 new text end 75.26 new text begin the second year are for transfer to the new text end 75.27 new text begin commissioner of human services to new text end 75.28 new text begin supplement the ongoing operational expenses new text end 75.29 new text begin of the Minnesota Commission Serving new text end 75.30 new text begin Deaf and Hard-of-Hearing People. This new text end 75.31 new text begin appropriation is from the telecommunication new text end 75.32 new text begin access Minnesota fund, and is added to new text end 75.33 new text begin the commission's base. This appropriation new text end 75.34 new text begin consolidates, and is not in addition to, new text end 76.1 new text begin appropriation language from Laws 2006, new text end 76.2 new text begin chapter 282, article 11, section 4, and new text end 76.3 new text begin Laws 2007, chapter 57, article 2, section 3, new text end 76.4 new text begin subdivision 7. new text end 76.5 new text begin $300,000 each year is from the new text end 76.6 new text begin telecommunications access fund to the new text end 76.7 new text begin commissioner of commerce for a grant to new text end 76.8 new text begin the Legislative Coordinating Commission new text end 76.9 new text begin for a pilot program to provide captioning new text end 76.10 new text begin of live streaming of legislative sessions new text end 76.11 new text begin on the commission's Web site and a grant new text end 76.12 new text begin to the Commission of Deaf, DeafBlind, new text end 76.13 new text begin and Hard-of-Hearing Minnesotans to new text end 76.14 new text begin provide information on their Web site in new text end 76.15 new text begin American Sign Language and to provide new text end 76.16 new text begin technical assistance to state agencies. The new text end 76.17 new text begin commissioner of commerce may allocate new text end 76.18 new text begin a portion of this money to the Office new text end 76.19 new text begin of Technology to coordinate technology new text end 76.20 new text begin accessibility and usability. new text end 76.21 new text begin Subd. 9. new text end new text begin Transfers new text end 76.22 new text begin By July 31, 2009, the commissioner of new text end 76.23 new text begin finance shall transfer $500,000 from the new text end 76.24 new text begin unexpended balance in the auto theft new text end 76.25 new text begin prevention account to the general fund. new text end 76.26 Sec. 4. new text begin PUBLIC UTILITIES COMMISSION new text end new text begin $ new text end new text begin 5,433,000 new text end new text begin $ new text end new text begin 5,433,000 new text end 76.27    Sec. 5. Minnesota Statutes 2008, section 45.027, subdivision 1, is amended to read: 76.28    Subdivision 1. General powers. In connection with the duties and responsibilities 76.29entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner 76.30of commerce may: 76.31(1) make public or private investigations within or without this state as the 76.32commissioner considers necessary to determine whether any person has violated or is 77.1about to violate any law, rule, or order related to the duties and responsibilities entrusted 77.2to the commissioner; 77.3(2) require or permit any person to file a statement in writing, under oath or otherwise 77.4as the commissioner determines, as to all the facts and circumstances concerning the 77.5matter being investigated; 77.6(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the 77.7duties and responsibilities entrusted to the commissioner; 77.8(4) conduct investigations and hold hearings for the purpose of compiling 77.9information related to the duties and responsibilities entrusted to the commissioner; 77.10(5) examine the books, accounts, records, and files of every licensee, and of every 77.11person who is engaged in any activity regulated; the commissioner or a designated 77.12representative shall have free access during normal business hours to the offices and 77.13places of business of the person, and to all books, accounts, papers, records, files, safes, 77.14and vaults maintained in the place of business; 77.15(6) publish information which is contained in any order issued by the commissioner; 77.16and 77.17(7) require any person subject to duties and responsibilities entrusted to the 77.18commissioner, to report all sales or transactions that are regulated. The reports must 77.19be made within ten days after the commissioner has ordered the report. The report is 77.20accessible only to the respondent and other governmental agencies unless otherwise 77.21ordered by a court of competent jurisdiction. new text begin ; and new text end 77.22 new text begin (8) assess a licensee the necessary expenses of the investigation performed by the new text end 77.23 new text begin department when an investigation is made by order of the commissioner. The cost of the new text end 77.24 new text begin investigation shall be determined by the commissioner and is based on the salary cost new text end 77.25 new text begin of investigators or assistants and at an average rate per day or fraction thereof so as to new text end 77.26 new text begin provide for the total cost of the investigations. All money collected must be deposited into new text end 77.27 new text begin the general fund. A natural person licensed under chapter 60K or 82 shall not be charged new text end 77.28 new text begin costs of an investigation if the investigation results in no finding of a violation. new text end 77.29    Sec. 6. Minnesota Statutes 2008, section 60A.14, subdivision 1, is amended to read: 77.30    Subdivision 1. Fees other than examination fees. In addition to the fees and 77.31charges provided for examinations, the following fees must be paid to the commissioner 77.32for deposit in the general fund: 77.33(a) by township mutual fire insurance companies; 77.34(1) for filing certificate of incorporation $25 and amendments thereto, $10; 77.35(2) for filing annual statements, $15; 78.1(3) for each annual certificate of authority, $15; 78.2(4) for filing bylaws $25 and amendments thereto, $10; 78.3(b) by other domestic and foreign companies including fraternals and reciprocal 78.4exchanges; 78.5(1) for filing an application for an initial certification of authority to be admitted 78.6to transact business in this state, $1,500; 78.7(2) for filing certified copy of certificate of articles of incorporation, $100; 78.8(3) for filing annual statement, $225; 78.9(4) for filing certified copy of amendment to certificate or articles of incorporation, 78.10$100; 78.11(5) for filing bylaws, $75 or amendments thereto, $75; 78.12(6) for each company's certificate of authority, $575, annually; 78.13(c) the following general fees apply: 78.14(1) for each certificate, including certified copy of certificate of authority, renewal, 78.15valuation of life policies, corporate condition or qualification, $25; 78.16(2) for each copy of paper on file in the commissioner's office 50 cents per page, 78.17and $2.50 for certifying the same; 78.18(3) for license to procure insurance in unadmitted foreign companies, $575; 78.19(4) for valuing the policies of life insurance companies, one cent per $1,000 of 78.20insurance so valued, provided that the fee shall not exceed $13,000 per year for any 78.21company. The commissioner may, in lieu of a valuation of the policies of any foreign life 78.22insurance company admitted, or applying for admission, to do business in this state, accept 78.23a certificate of valuation from the company's own actuary or from the commissioner of 78.24insurance of the state or territory in which the company is domiciled; 78.25(5) for receiving and filing certificates of policies by the company's actuary, or by 78.26the commissioner of insurance of any other state or territory, $50; 78.27(6) for each appointment of an agent filed with the commissioner, $10; 78.28(7) for filing forms, rates, and compliance certifications under section 60A.315, $90 new text begin new text end 78.29 new text begin $140 new text end per filing, or $75 new text begin $125 new text end per filing when submitted via electronic filing system. Filing 78.30fees may be paid on a quarterly basis in response to an invoice. Billing and payment may 78.31be made electronically; 78.32(8) for annual renewal of surplus lines insurer license, $300. 78.33The commissioner shall adopt rules to define filings that are subject to a fee. 78.34    Sec. 7. new text begin [116J.438] MINNESOTA GREEN ENTERPRISE ASSISTANCE. new text end 79.1 new text begin (a) The commissioner of employment and economic development, in consultation new text end 79.2 new text begin with the commissioner of commerce, shall lead a multiagency project to advise, new text end 79.3 new text begin promote, market, and coordinate state agency collaboration on green enterprise and new text end 79.4 new text begin green economy projects, as defined in section 116J.437. The multiagency project must new text end 79.5 new text begin include the commissioners of employment and economic development, natural resources, new text end 79.6 new text begin agriculture, transportation, and commerce, and the Pollution Control Agency. The new text end 79.7 new text begin project must involve collaboration with the chairs and ranking minority members of new text end 79.8 new text begin legislative committees overseeing energy policy and energy finance, state agencies, new text end 79.9 new text begin local governments, representatives from business and agriculture, and other interested new text end 79.10 new text begin stakeholders. The objective of the project is to utilize existing state resources to expedite new text end 79.11 new text begin the delivery of grants, licenses, permits, and other state authorizations and approvals for new text end 79.12 new text begin green economy projects. The commissioner shall appoint a lead person to coordinate new text end 79.13 new text begin green enterprise assistance activities. new text end 79.14 new text begin (b) The commissioner of employment and economic development shall seek out and new text end 79.15 new text begin may select persons from the business community to assist the commissioner in project new text end 79.16 new text begin activities. new text end 79.17 new text begin (c) The commissioner may accept gifts, contributions, and in-kind services for the new text end 79.18 new text begin purposes of this section, under the authority provided in section 116J.035, subdivision new text end 79.19 new text begin 1. Any funds received must be placed in a special revenue account for the purposes of new text end 79.20 new text begin this section. new text end 79.21 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 79.22    Sec. 8. Minnesota Statutes 2008, section 216B.62, subdivision 3, is amended to read: 79.23    Subd. 3. Assessing all public utilities. The department and commission shall 79.24quarterly, at least 30 days before the start of each quarter, estimate the total of their 79.25expenditures in the performance of their duties relating to (1) public utilities under section 79.26, sections new text begin 216A.085 and new text end 216B.01 to 216B.67, other than amounts chargeable 79.27to public utilities under subdivision 2 or new text begin , new text end 6, and (2) alternative energy engineering 79.28activity under section new text begin or 7 new text end . The remainder, except the amount assessed 79.29against cooperatives and municipalities for alternative energy engineering activity under 79.30subdivision 5, shall be assessed by the commission and department to the several public 79.31utilities in proportion to their respective gross operating revenues from retail sales of gas 79.32or electric service within the state during the last calendar year. The assessment shall be 79.33paid into the state treasury within 30 days after the bill has been transmitted via mail, 79.34personal delivery, or electronic service to the several public utilities, which shall constitute 79.35notice of the assessment and demand of payment thereof. The total amount which may 80.1be assessed to the public utilities, under authority of this subdivision, shall not exceed 80.2one-sixth of one percent of the total gross operating revenues of the public utilities 80.3during the calendar year from retail sales of gas or electric service within the state. The 80.4assessment for the third quarter of each fiscal year shall be adjusted to compensate for the 80.5amount by which actual expenditures by the commission and department for the preceding 80.6fiscal year were more or less than the estimated expenditures previously assessed. 80.7    Sec. 9. Minnesota Statutes 2008, section 216B.62, subdivision 4, is amended to read: 80.8    Subd. 4. Objections. Within 30 days after the date of the transmittal of any bill as 80.9provided by subdivisions new text begin subdivision new text end 2 and new text begin , new text end 3, new text begin or 7, new text end the public utility against which the bill 80.10has been rendered may file with the commission objections setting out the grounds upon 80.11which it is claimed the bill is excessive, erroneous, unlawful or invalid. The commission 80.12shall within 60 days hold a hearing and issue an order in accordance with its findings. The 80.13order shall be appealable in the same manner as other final orders of the commission. 80.14    Sec. 10. Minnesota Statutes 2008, section 216B.62, subdivision 5, is amended to read: 80.15    Subd. 5. Assessing cooperatives and municipals. The commission and department 80.16may charge cooperative electric associations, generation and transmission cooperative 80.17electric associations, municipal power agencies, and municipal electric utilities their 80.18proportionate share of the expenses incurred in the review and disposition of resource 80.19plans, adjudication of service area disputes, proceedings under section 216B.1691, 80.20216B.2425 , or 216B.243, and the costs incurred in the adjudication of complaints over 80.21service standards, practices, and rates. Cooperative electric associations electing to 80.22become subject to rate regulation by the commission pursuant to section 216B.026, 80.23subdivision 4 , are also subject to this section. Neither a cooperative electric association 80.24nor a municipal electric utility is liable for costs and expenses in a calendar year in excess 80.25of the limitation on costs that may be assessed against public utilities under subdivision 80.262. A cooperative electric association, generation and transmission cooperative electric 80.27association, municipal power agency, or municipal electric utility may object to and appeal 80.28bills of the commission and department as provided in subdivision 4. 80.29The department shall assess cooperatives and municipalities for the costs of 80.30alternative energy engineering activities under section . Each cooperative and 80.31municipality shall be assessed in proportion that its gross operating revenues for the sale 80.32of gas and electric service within the state for the last calendar year bears to the total of 80.33those revenues for all public utilities, cooperatives, and municipalities. 81.1    Sec. 11. Minnesota Statutes 2008, section 216B.62, is amended by adding a subdivision 81.2to read: 81.3     new text begin Subd. 7. new text end new text begin Assessing all utilities. new text end new text begin The department shall assess public utilities, new text end 81.4 new text begin cooperative electric associations, and municipal utilities for the costs of activities under new text end 81.5 new text begin chapter 216C. The department shall not assess for costs of grants, loans, or other aids or new text end 81.6 new text begin for costs that can be recovered through other assessment authority. Each public utility, new text end 81.7 new text begin cooperative, and municipal utility shall be assessed in the proportion that its gross new text end 81.8 new text begin operating revenue for the sale of gas and electric service within the state for the last new text end 81.9 new text begin calendar year bears to the total of those revenues for all public utilities, cooperatives, new text end 81.10 new text begin and municipalities. new text end 81.11    Sec. 12. new text begin BULK INSTALLATION OF SOLAR PHOTOVOLTAIC PANELS ON new text end 81.12 new text begin SCHOOL BUILDINGS; FEASIBILITY STUDY AND REPORT. new text end 81.13 new text begin The director of the Office of Energy Security, in consultation with the commissioner new text end 81.14 new text begin of education, schools, school districts, and solar industry experts, must study the economic new text end 81.15 new text begin and technical feasibility of bulk installation of solar photovoltaic panels on school new text end 81.16 new text begin buildings in this state. The study must use a power-purchase agreement model in which new text end 81.17 new text begin a private company would pay for, install, and own the solar photovoltaic panels. No new text end 81.18 new text begin later than January 15, 2010, the director of the Office of Energy Security must report new text end 81.19 new text begin the results of the feasibility study, including whether the proposed model would reduce new text end 81.20 new text begin carbon emissions and result in savings to school districts, to the chairs and ranking new text end 81.21 new text begin minority members of the house of representatives and senate committees with jurisdiction new text end 81.22 new text begin over energy policy and finance. new text end 81.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 81.24    Sec. 13. new text begin APPROPRIATIONS; CANCELLATIONS. new text end 81.25 new text begin (a) The remaining balance of the fiscal year 2009 special revenue fund appropriation new text end 81.26 new text begin for the Green Jobs Task Force under Laws 2008, chapter 363, article 6, section 3, new text end 81.27 new text begin subdivision 4, is transferred and appropriated to the commissioner of employment and new text end 81.28 new text begin economic development for the purposes of green enterprise assistance under Minnesota new text end 81.29 new text begin Statutes, section 116J.438. This appropriation is available until spent. new text end 81.30 new text begin (b) The unencumbered balance of the fiscal year 2008 appropriation to the new text end 81.31 new text begin commissioner of commerce for the rural and energy development revolving loan new text end 81.32 new text begin fund under Laws 2007, chapter 57, article 2, section 3, subdivision 6, is canceled and new text end 81.33 new text begin reappropriated as follows: new text end 82.1 new text begin (1) $1,500,000 is for a grant to the Board of Trustees of the Minnesota State Colleges new text end 82.2 new text begin and Universities for the International Renewable Energy Technology Institute (IRETI) to new text end 82.3 new text begin be located at Minnesota State University, Mankato, as a public and private partnership to new text end 82.4 new text begin support applied research in renewable energy and energy efficiency to aid in the transfer of new text end 82.5 new text begin technology from Sweden to Minnesota and to support technology commercialization from new text end 82.6 new text begin companies located in Minnesota and throughout the world; and new text end 82.7 new text begin (2) the remaining balance is for a grant to the Board of Regents of the University of new text end 82.8 new text begin Minnesota for the initiative for renewable energy and the environment to fund start up new text end 82.9 new text begin costs related to a national solar testing and certification laboratory to test, rate, and certify new text end 82.10 new text begin the performance of equipment and devices that utilize solar energy for heating and cooling new text end 82.11 new text begin air and water and for generating electricity. new text end 82.12 new text begin This appropriation is available until expended. new text end 82.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 82.14ARTICLE 3 82.15DEPARTMENT OF COMMERCE; OTHER REGULATORY PROVISIONS 82.16    Section 1. Minnesota Statutes 2008, section 47.58, subdivision 1, is amended to read: 82.17    Subdivision 1. Definitions. For the purposes of this section, the terms defined in this 82.18subdivision have the meanings given them. 82.19(a) "Reverse mortgage loan" means a loan: 82.20(1) Made to a borrower wherein the committed principal amount is paid to the 82.21borrower in equal or unequal installments over a period of months or years, interest is 82.22assessed, and authorized closing costs are incurred as specified in the loan agreement; 82.23(2) Which is secured by a mortgage on residential property owned solely by the 82.24borrower; and 82.25(3) Which is due when the committed principal amount has been fully paid to the 82.26borrower, or upon sale of the property securing the loan, or upon the death of the last 82.27surviving borrower, or upon the borrower terminating use of the property as principal 82.28residence so as to disqualify the property from the homestead credit given in chapter 290A. 82.29(b) "Lender" means any bank subject to chapter 48, credit union subject to chapter 82.3052, savings bank organized and operated pursuant to chapter 50, savings association 82.31subject to chapter 51A, new text begin any residential mortgage originator subject to chapter 58, new text end or any 82.32insurance company as defined in section 60A.02, subdivision 4. "Lender" also includes 82.33any federally chartered bank supervised by the comptroller of the currency or federally 82.34chartered savings association supervised by the Federal Home Loan Bank Board or 83.1federally chartered credit union supervised by the National Credit Union Administration, 83.2to the extent permitted by federal law. 83.3(c) "Borrower" includes any natural person holding an interest in severalty or as joint 83.4tenant or tenant-in-common in the property securing a reverse mortgage loan. 83.5(d) "Outstanding loan balance" means the current net amount of money owed by the 83.6borrower to the lender whether or not that sum is suspended pursuant to the terms of the 83.7reverse mortgage loan agreement or is immediately due and payable. The outstanding 83.8loan balance is calculated by adding the current totals of the items described in clauses (1) 83.9to (5) and subtracting the current totals of the item described in clause (6): 83.10(1) The sum of all payments made by the lender which are necessary to clear the 83.11property securing the loan of any outstanding mortgage encumbrance or mechanics or 83.12material supplier's lien. 83.13(2) The total disbursements made by the lender to date pursuant to the loan 83.14agreement as formulated in accordance with subdivision 3. 83.15(3) All taxes, assessments, insurance premiums and other similar charges paid to 83.16date by the lender pursuant to subdivision 6, which charges were not reimbursed by the 83.17borrower within 60 days. 83.18(4) All actual closing costs which the borrower has deferred, if a deferral provision 83.19is contained in the loan agreement as authorized by subdivision 7. 83.20(5) The total accrued interest to date, as authorized by subdivision 5. 83.21(6) All payments made by the borrower pursuant to subdivision 4. 83.22(e) "Actual closing costs" mean reasonable charges or sums ordinarily paid at the 83.23time of closing for the following, whether or not retained by the lender: 83.24(1) Any insurance premiums on policies covering the mortgaged property including 83.25but not limited to premiums for title insurance, fire and extended coverage insurance, flood 83.26insurance, and private mortgage insurance. 83.27(2) Abstracting, title examination and search, and examination of public records 83.28related to the mortgaged property. 83.29(3) The preparation and recording of any or all documents required by law or custom 83.30for closing a reverse mortgage loan agreement. 83.31(4) Appraisal and survey of real property securing a reverse mortgage loan. 83.32(5) A single service charge, which service charge shall include any consideration, 83.33not otherwise specified in this section as an "actual closing cost," paid by the borrower to 83.34the lender for or in relation to the acquisition, making, refinancing or modification of a 83.35reverse mortgage loan, and shall also include any consideration received by the lender 83.36for making a commitment for a reverse mortgage loan, whether or not an actual loan 84.1follows the commitment. The service charge shall not exceed one percent of the bona fide 84.2committed principal amount of the reverse mortgage loan. 84.3(6) Charges and fees necessary for or related to the transfer of real property securing 84.4a reverse mortgage loan or the closing of a reverse mortgage loan agreement paid by the 84.5borrower and received by any party other than the lender. 84.6    Sec. 2. Minnesota Statutes 2008, section 47.60, subdivision 1, is amended to read: 84.7    Subdivision 1. Definitions. For purposes of this section, the terms defined have 84.8the meanings given them: 84.9(a) "Consumer small loan" is a loan transaction in which cash is advanced to a 84.10borrower for the borrower's own personal, family, or household purpose. A consumer 84.11small loan is a short-term, unsecured loan to be repaid in a single installment. The cash 84.12advance of a consumer small loan is equal to or less than $350. A consumer small loan 84.13includes an indebtedness evidenced by but not limited to a promissory note or agreement 84.14to defer the presentation of a personal check for a fee. 84.15(b) "Consumer small loan lender" is a financial institution as defined in section 84.1647.59 or a person new text begin business entity new text end registered with the commissioner and engaged in the 84.17business of making consumer small loans. 84.18    Sec. 3. Minnesota Statutes 2008, section 47.60, subdivision 3, is amended to read: 84.19    Subd. 3. Filing. Before a person new text begin business entity new text end other than a financial institution 84.20as defined by section 47.59 engages in the business of making consumer small loans new text begin to new text end 84.21 new text begin Minnesota residents new text end , the person new text begin business entity new text end shall file with the commissioner as a 84.22consumer small loan lender. The filing must be on a form prescribed by the commissioner 84.23together with a fee of $250 for each place of business and contain the following 84.24information in addition to the information required by the commissioner: 84.25(1) evidence that the filer has available for the operation of the business at the 84.26location specified, liquid assets of at least $50,000; and 84.27(2) a biographical statement on the principal person responsible for the operation 84.28and management of the business to be certified. 84.29Revocation of the filing and the right to engage in the business of a consumer small 84.30loan lender is the same as in the case of a regulated lender license in section 56.09. 84.31 new text begin For purposes of this subdivision, "business entity" includes one that does not have a new text end 84.32 new text begin physical location in Minnesota that makes a consumer small loan electronically via the new text end 84.33 new text begin Internet. new text end 85.1    Sec. 4. Minnesota Statutes 2008, section 47.60, subdivision 6, is amended to read: 85.2    Subd. 6. Penalties for violation. A person new text begin business entity new text end or the person's new text begin entity's new text end 85.3members, officers, directors, agents, and employees who violate or participate in the 85.4violation of any of the provisions of this section may be liable in the same manner as in 85.5section 56.19. 85.6    Sec. 5. Minnesota Statutes 2008, section 48.21, is amended to read: 85.748.21 REAL ESTATE; RESTRICTIONS ON HOLDING. 85.8    Subdivision 1. Specific restrictions. new text begin (a) new text end A bank may purchase, carry as an asset, 85.9and convey real estate only: 85.10(1) as provided for in section 47.10; 85.11(2) if acquired through foreclosure of a mortgage given to it in good faith as security 85.12for loans made by or money due to it; 85.13(3) if conveyed to it in satisfaction of debts previously contracted in good faith in 85.14the course of its dealings; 85.15(4) if acquired by sale on execution or judgment of a court in its favor; or 85.16(5) if reasonably necessary to mitigate or avoid loss on a loan or investment 85.17theretofore made. 85.18 new text begin (b) new text end Real estate acquired under new text begin paragraph (a), new text end clauses (2) to (5) new text begin , new text end shall be carried as an 85.19asset only in accordance with rules the commissioner prescribes. new text begin The maximum period for new text end 85.20 new text begin holding other real estate as an asset shall be five years, provided that upon application to new text end 85.21 new text begin the commissioner, the commissioner may approve the possession of such real estate by a new text end 85.22 new text begin bank for a period longer than five years, but not to exceed an additional five years, if: new text end 85.23 new text begin (1) the bank has made a good faith attempt to dispose of the real estate within the new text end 85.24 new text begin initial five-year period; or new text end 85.25 new text begin (2) disposal within the initial five-year period would be detrimental to the bank. new text end 85.26    Subd. 2. Real estate holdings not bank liabilities. Real estate owned by a bank as 85.27a result of actions authorized in clauses (2) to (5) of subdivision 1 new text begin , paragraph (a), clauses new text end 85.28 new text begin (2) to (5), new text end and subsequently sold to any buyer on a contract for deed may not be considered 85.29creating a liability to a bank for purposes of section 48.24. 85.30    Subd. 3. Real estate holdings not sold; authority to write off. Notwithstanding 85.31any rules of the commissioner to the contrary, if real estate owned by a bank pursuant to 85.32clauses (2) to (5) of subdivision 1 new text begin , paragraph (a), clauses (2) to (5), new text end is not sold or otherwise 85.33disposed of within the maximum period established by rule by the commissioner, the 86.1bank may write off any remaining balance at a rate not less than one-fifth of that balance 86.2each subsequent calendar year. 86.3    Sec. 6. Minnesota Statutes 2008, section 58.05, subdivision 3, is amended to read: 86.4    Subd. 3. Certificate of exemption. A person must obtain a certificate of exemption 86.5from the commissioner to qualify as an exempt person under section 58.04, subdivision 1, 86.6paragraph (c), a financial institution under clause (2), or by order of the commissioner 86.7under clause (6); or under section 58.04, subdivision 2, paragraph (b), as a financial 86.8institution under clause (3) new text begin (4) new text end , or by order of the commissioner under clause (7) new text begin (8) new text end . 86.9    Sec. 7. Minnesota Statutes 2008, section 58.06, subdivision 2, is amended to read: 86.10    Subd. 2. Application contents. (a) The application must contain the name and 86.11complete business address or addresses of the license applicant. The license applicant 86.12must be a partnership, limited liability partnership, association, limited liability company, 86.13corporation, or other form of business organization, and the application must contain the 86.14names and complete business addresses of each partner, member, director, and principal 86.15officer. The application must also include a description of the activities of the license 86.16applicant, in the detail and for the periods the commissioner may require. 86.17    (b) An new text begin A residential mortgage originator new text end applicant must submit one of the following: 86.18    (1) evidence which shows, to the commissioner's satisfaction, that either the federal 86.19Department of Housing and Urban Development or the Federal National Mortgage 86.20Association has approved the new text begin residential mortgage originator new text end applicant as a mortgagee; 86.21    (2) a surety bond or irrevocable letter of credit in the amount of not less than 86.22$50,000 in a form approved by the commissioner, issued by an insurance company or bank 86.23authorized to do so in this state. The bond or irrevocable letter of credit must be available 86.24for the recovery of expenses, fines, and fees levied by the commissioner under this chapter 86.25and for losses incurred by borrowers. The bond or letter of credit must be submitted with 86.26the license application, and evidence of continued coverage must be submitted with each 86.27renewal. Any change in the bond or letter of credit must be submitted for approval by the 86.28commissioner within ten days of its execution; or 86.29    (3) a copy of the new text begin residential mortgage originator new text end applicant's most recent audited 86.30financial statement, including balance sheet, statement of income or loss, statements of 86.31changes in shareholder equity, and statement of changes in financial position. Financial 86.32statements must be as of a date within 12 months of the date of application. 86.33    (c) The application must also include all of the following: 86.34    (1) an affirmation under oath that the applicant: 87.1    (i) is in compliance with the requirements of section 58.125; 87.2    (ii) will maintain a perpetual roster of individuals employed as residential mortgage 87.3originators, including employees and independent contractors, which includes the date new text begin new text end 87.4 new text begin dates new text end that mandatory new text begin testing, new text end initial education was new text begin , and continuing education were new text end 87.5completed. In addition, the roster must be made available to the commissioner on demand, 87.6within three business days of the commissioner's request; 87.7    (iii) will advise the commissioner of any material changes to the information 87.8submitted in the most recent application within ten days of the change; 87.9    (iv) will advise the commissioner in writing immediately of any bankruptcy petitions 87.10filed against or by the applicant or licensee; 87.11    (v) will maintain at all times either a net worth, net of intangibles, of at least 87.12$250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000; 87.13    (vi) complies with federal and state tax laws; and 87.14    (vii) complies with sections 345.31 to 345.60, the Minnesota unclaimed property 87.15law; 87.16    (2) information as to the mortgage lending, servicing, or brokering experience of the 87.17applicant and persons in control of the applicant; 87.18    (3) information as to criminal convictions, excluding traffic violations, of persons in 87.19control of the license applicant; 87.20    (4) whether a court of competent jurisdiction has found that the applicant or persons 87.21in control of the applicant have engaged in conduct evidencing gross negligence, fraud, 87.22misrepresentation, or deceit in performing an act for which a license is required under 87.23this chapter; 87.24    (5) whether the applicant or persons in control of the applicant have been the subject 87.25of: an order of suspension or revocation, cease and desist order, or injunctive order, or 87.26order barring involvement in an industry or profession issued by this or another state or 87.27federal regulatory agency or by the Secretary of Housing and Urban Development within 87.28the ten-year period immediately preceding submission of the application; and 87.29    (6) other information required by the commissioner. 87.30    Sec. 8. Minnesota Statutes 2008, section 58.126, is amended to read: 87.3158.126 EDUCATION new text begin AND TESTING new text end REQUIREMENT. 87.32     new text begin (a) new text end No individual shall engage in residential mortgage origination or make residential 87.33mortgage loans, whether as an employee or independent contractor, before the completion 87.34of 15 new text begin 20 new text end hours of educational training which has been approved by the commissioner, and 87.35covering state and federal laws concerning residential mortgage lending. 88.1 new text begin (b) In addition to the initial education requirements in paragraph (a), each individual new text end 88.2 new text begin must also complete eight hours of continuing education annually. The education must new text end 88.3 new text begin include: new text end 88.4 new text begin (1) three hours of federal law and regulations; new text end 88.5 new text begin (2) two hours of ethics, which must include fraud, consumer protection, and fair new text end 88.6 new text begin lending; and new text end 88.7 new text begin (3) two hours of standards governing nontraditional mortgage lending. new text end 88.8 new text begin (c) The commissioner may by rule establish testing requirements for individuals new text end 88.9 new text begin subject to the requirements of paragraphs (a) and (b). An individual must satisfy the new text end 88.10 new text begin testing requirements established by the commissioner before engaging in residential new text end 88.11 new text begin mortgage loan origination or making residential mortgage loans. new text end 88.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective September 1, 2009, and applies to new text end 88.13 new text begin license applications and renewals made on or after that date. new text end 88.14    Sec. 9. Minnesota Statutes 2008, section 58.13, subdivision 1, is amended to read: 88.15    Subdivision 1. Generally. (a) No person acting as a residential mortgage originator 88.16or servicer, including a person required to be licensed under this chapter, and no person 88.17exempt from the licensing requirements of this chapter under section 58.04, except as 88.18otherwise provided in paragraph (b), shall: 88.19    (1) fail to maintain a trust account to hold trust funds received in connection with a 88.20residential mortgage loan; 88.21    (2) fail to deposit all trust funds into a trust account within three business days of 88.22receipt; commingle trust funds with funds belonging to the licensee or exempt person; or 88.23use trust account funds for any purpose other than that for which they are received; 88.24    (3) unreasonably delay the processing of a residential mortgage loan application, 88.25or the closing of a residential mortgage loan. For purposes of this clause, evidence of 88.26unreasonable delay includes but is not limited to those factors identified in section 47.206, 88.27subdivision 7 , clause (d); 88.28    (4) fail to disburse funds according to its contractual or statutory obligations; 88.29    (5) fail to perform in conformance with its written agreements with borrowers, 88.30investors, other licensees, or exempt persons; 88.31    (6) charge a fee for a product or service where the product or service is not actually 88.32provided, or misrepresent the amount charged by or paid to a third party for a product 88.33or service; 88.34    (7) fail to comply with sections 345.31 to 345.60, the Minnesota unclaimed property 88.35law; 89.1    (8) violate any provision of any other applicable state or federal law regulating 89.2residential mortgage loans including, without limitation, sections 47.20 to 47.208 new text begin , and new text end 89.3 new text begin 47.58 new text end ; 89.4    (9) make or cause to be made, directly or indirectly, any false, deceptive, or 89.5misleading statement or representation in connection with a residential loan transaction 89.6including, without limitation, a false, deceptive, or misleading statement or representation 89.7regarding the borrower's ability to qualify for any mortgage product; 89.8    (10) conduct residential mortgage loan business under any name other than that 89.9under which the license or certificate of exemption was issued; 89.10    (11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for 89.11the purpose of influencing the independent judgment of the appraiser with respect to the 89.12value of real estate that is to be covered by a residential mortgage or is being offered as 89.13security according to an application for a residential mortgage loan; 89.14    (12) issue any document indicating conditional qualification or conditional approval 89.15for a residential mortgage loan, unless the document also clearly indicates that final 89.16qualification or approval is not guaranteed, and may be subject to additional review; 89.17    (13) make or assist in making any residential mortgage loan with the intent that the 89.18loan will not be repaid and that the residential mortgage originator will obtain title to 89.19the property through foreclosure; 89.20    (14) provide or offer to provide for a borrower, any brokering or lending services 89.21under an arrangement with a person other than a licensee or exempt person, provided that 89.22a person may rely upon a written representation by the residential mortgage originator that 89.23it is in compliance with the licensing requirements of this chapter; 89.24    (15) claim to represent a licensee or exempt person, unless the person is an employee 89.25of the licensee or exempt person or unless the person has entered into a written agency 89.26agreement with the licensee or exempt person; 89.27    (16) fail to comply with the record keeping and notification requirements identified 89.28in section 58.14 or fail to abide by the affirmations made on the application for licensure; 89.29    (17) represent that the licensee or exempt person is acting as the borrower's agent 89.30after providing the nonagency disclosure required by section 58.15, unless the disclosure 89.31is retracted and the licensee or exempt person complies with all of the requirements of 89.32section 58.16; 89.33    (18) make, provide, or arrange for a residential mortgage loan that is of a lower 89.34investment grade if the borrower's credit score or, if the originator does not utilize credit 89.35scoring or if a credit score is unavailable, then comparable underwriting data, indicates 89.36that the borrower may qualify for a residential mortgage loan, available from or through 90.1the originator, that is of a higher investment grade, unless the borrower is informed that 90.2the borrower may qualify for a higher investment grade loan with a lower interest rate 90.3and/or lower discount points, and consents in writing to receipt of the lower investment 90.4grade loan; 90.5    For purposes of this section, "investment grade" refers to a system of categorizing 90.6residential mortgage loans in which the loans are: (i) commonly referred to as "prime" or 90.7"subprime"; (ii) commonly designated by an alphabetical character with "A" being the 90.8highest investment grade; and (iii) are distinguished by interest rate or discount points 90.9or both charged to the borrower, which vary according to the degree of perceived risk 90.10of default based on factors such as the borrower's credit, including credit score and 90.11credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior 90.12bankruptcy or foreclosure; 90.13    (19) make, publish, disseminate, circulate, place before the public, or cause to be 90.14made, directly or indirectly, any advertisement or marketing materials of any type, or any 90.15statement or representation relating to the business of residential mortgage loans that is 90.16false, deceptive, or misleading; 90.17    (20) advertise loan types or terms that are not available from or through the licensee 90.18or exempt person on the date advertised, or on the date specified in the advertisement. 90.19For purposes of this clause, advertisement includes, but is not limited to, a list of sample 90.20mortgage terms, including interest rates, discount points, and closing costs provided by 90.21licensees or exempt persons to a print or electronic medium that presents the information 90.22to the public; 90.23    (21) use or employ phrases, pictures, return addresses, geographic designations, or 90.24other means that create the impression, directly or indirectly, that a licensee or other 90.25person is a governmental agency, or is associated with, sponsored by, or in any manner 90.26connected to, related to, or endorsed by a governmental agency, if that is not the case; 90.27    (22) violate section 82.49, relating to table funding; 90.28(23) make, provide, or arrange for a residential mortgage loan all or a portion 90.29of the proceeds of which are used to fully or partially pay off a "special mortgage" 90.30unless the borrower has obtained a written certification from an authorized independent 90.31loan counselor that the borrower has received counseling on the advisability of the 90.32loan transaction. For purposes of this section, "special mortgage" means a residential 90.33mortgage loan originated, subsidized, or guaranteed by or through a state, tribal, or 90.34local government, or nonprofit organization, that bears one or more of the following 90.35nonstandard payment terms which substantially benefit the borrower: (i) payments vary 90.36with income; (ii) payments of principal or interest are not required or can be deferred under 91.1specified conditions; (iii) principal or interest is forgivable under specified conditions; 91.2or (iv) where no interest or an annual interest rate of two percent or less is charged in 91.3connection with the loan. For purposes of this section, "authorized independent loan 91.4counselor" means a nonprofit, third-party individual or organization providing homebuyer 91.5education programs, foreclosure prevention services, mortgage loan counseling, or credit 91.6counseling certified by the United States Department of Housing and Urban Development, 91.7the Minnesota Home Ownership Center, the Minnesota Mortgage Foreclosure Prevention 91.8Association, AARP, or NeighborWorks America; 91.9    (24) make, provide, or arrange for a residential mortgage loan without verifying 91.10the borrower's reasonable ability to pay the scheduled payments of the following, as 91.11applicable: principal; interest; real estate taxes; homeowner's insurance, assessments, 91.12and mortgage insurance premiums. For loans in which the interest rate may vary, the 91.13reasonable ability to pay shall be determined based on a fully indexed rate and a repayment 91.14schedule which achieves full amortization over the life of the loan. For all residential 91.15mortgage loans, the borrower's income and financial resources must be verified by tax 91.16returns, payroll receipts, bank records, or other similarly reliable documents. 91.17    Nothing in this section shall be construed to limit a mortgage originator's or exempt 91.18person's ability to rely on criteria other than the borrower's income and financial resources 91.19to establish the borrower's reasonable ability to repay the residential mortgage loan, 91.20including criteria established by the United States Department of Veterans Affairs or the 91.21United States Department of Housing and Urban Development for interest rate reduction 91.22refinancing loans or streamline loans, or criteria authorized or promulgated by the 91.23Federal National Mortgage Association or Federal Home Loan Mortgage Corporation; 91.24however, such other criteria must be verified through reasonably reliable methods and 91.25documentation. The mortgage originator's analysis of the borrower's reasonable ability 91.26to repay may include, but is not limited to, consideration of the following items, if 91.27verified: (1) the borrower's current and expected income; (2) current and expected cash 91.28flow; (3) net worth and other financial resources other than the consumer's equity in the 91.29dwelling that secures the loan; (4) current financial obligations; (5) property taxes and 91.30insurance; (6) assessments on the property; (7) employment status; (8) credit history; (9) 91.31debt-to-income ratio; (10) credit scores; (11) tax returns; (12) pension statements; and 91.32(13) employment payment records, provided that no mortgage originator shall disregard 91.33facts and circumstances that indicate that the financial or other information submitted by 91.34the consumer is inaccurate or incomplete. A statement by the borrower to the residential 91.35mortgage originator or exempt person of the borrower's income and resources or sole 92.1reliance on any single item listed above is not sufficient to establish the existence of the 92.2income or resources when verifying the reasonable ability to pay. 92.3    (25) engage in "churning." As used in this section, "churning" means knowingly or 92.4intentionally making, providing, or arranging for a residential mortgage loan when the 92.5new residential mortgage loan does not provide a reasonable, tangible net benefit to the 92.6borrower considering all of the circumstances including the terms of both the new and 92.7refinanced loans, the cost of the new loan, and the borrower's circumstances; 92.8    (26) the first time a residential mortgage originator orally informs a borrower of the 92.9anticipated or actual periodic payment amount for a first-lien residential mortgage loan 92.10which does not include an amount for payment of property taxes and hazard insurance, 92.11the residential mortgage originator must inform the borrower that an additional amount 92.12will be due for taxes and insurance and, if known, disclose to the borrower the amount of 92.13the anticipated or actual periodic payments for property taxes and hazard insurance. This 92.14same oral disclosure must be made each time the residential mortgage originator orally 92.15informs the borrower of a different anticipated or actual periodic payment amount change 92.16from the amount previously disclosed. A residential mortgage originator need not make 92.17this disclosure concerning a refinancing loan if the residential mortgage originator knows 92.18that the borrower's existing loan that is anticipated to be refinanced does not have an 92.19escrow account; or 92.20    (27) make, provide, or arrange for a residential mortgage loan, other than a reverse 92.21mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance 92.22with any repayment option offered pursuant to the terms of the loan will result in negative 92.23amortization during any six-month period. 92.24    (b) Paragraph (a), clauses (24) through (27), do not apply to a state or federally 92.25chartered bank, savings bank, or credit union, an institution chartered by Congress under 92.26the Farm Credit Act, or to a person making, providing, or arranging a residential mortgage 92.27loan originated or purchased by a state agency or a tribal or local unit of government. This 92.28paragraph supersedes any inconsistent provision of this chapter. 92.29    Sec. 10. Minnesota Statutes 2008, section 60A.124, is amended to read: 92.3060A.124 INDEPENDENT AUDIT. 92.31The audit report of the independent certified public accountant that performs the 92.32audit of an insurer's annual statement as required under section 60A.129 new text begin 60A.1291 new text end , 92.33subdivision 3 new text begin 2 new text end , paragraph (a), should contain a statement as to whether anything, in 92.34connection with their audit, came to their attention that caused them to believe that the 93.1insurer failed to adopt and consistently apply the valuation procedure as required by 93.2sections 60A.122 and 60A.123. 93.3    Sec. 11. new text begin [60A.1291] ANNUAL AUDIT. new text end 93.4     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin The definitions in this subdivision apply to this section. new text end 93.5 new text begin (a) "Accountant" and "independent public accountant" mean an independent certified new text end 93.6 new text begin public accountant or accounting firm in good standing with the American Institute of new text end 93.7 new text begin Certified Public Accountants and in all states in which the accountant or firm is licensed new text end 93.8 new text begin or is required to be licensed to practice. For Canadian and British companies, the term new text end 93.9 new text begin means a Canadian-chartered or British-chartered accountant. new text end 93.10 new text begin (b) "Audit committee" means a committee or equivalent body established by the new text end 93.11 new text begin board of directors of an entity for the purpose of overseeing the accounting and financial new text end 93.12 new text begin reporting processes of an insurer or group of insurers, and audits of financial statements of new text end 93.13 new text begin the insurer or group of insurers. The audit committee of any entity that controls a group of new text end 93.14 new text begin insurers may be deemed to be the audit committee for one or more of these controlled new text end 93.15 new text begin insurers solely for the purposes of this section at the election of the controlling person new text end 93.16 new text begin under subdivision 15, paragraph (e). If an audit committee is not designated by the insurer, new text end 93.17 new text begin the insurer's entire board of directors constitutes the audit committee. new text end 93.18 new text begin (c) "Indemnification" means an agreement of indemnity or a release from liability new text end 93.19 new text begin where the intent or effect is to shift or limit in any manner the potential liability of the new text end 93.20 new text begin person or firm for failure to adhere to applicable auditing or professional standards, new text end 93.21 new text begin whether or not resulting in part from knowing of other misrepresentations made by the new text end 93.22 new text begin insurer or its representatives. new text end 93.23 new text begin (d) "Independent board member" has the same meaning as described in subdivision new text end 93.24 new text begin 15, paragraph (c). new text end 93.25 new text begin (e) "Internal control over financial reporting" means a process effected by an entity's new text end 93.26 new text begin board of directors, management, and other personnel designed to provide reasonable new text end 93.27 new text begin assurance regarding the reliability of the financial statements, for example, those items new text end 93.28 new text begin specified in subdivision 4, paragraphs (a), clauses (2) to (6), (b), and (c), and includes new text end 93.29 new text begin those policies and procedures that: new text end 93.30 new text begin (1) pertain to the maintenance of records that, in reasonable detail, accurately and new text end 93.31 new text begin fairly reflect the transactions and dispositions of assets; new text end 93.32 new text begin (2) provide reasonable assurance that transactions are recorded as necessary to permit new text end 93.33 new text begin preparation of the financial statements, for example, those items specified in subdivision 4, new text end 93.34 new text begin paragraphs (a), clauses (2) to (6), (b), and (c), and that receipts and expenditures are being new text end 93.35 new text begin made only in accordance with authorizations of management and directors; and new text end 94.1 new text begin (3) provide reasonable assurance regarding prevention or timely detection of new text end 94.2 new text begin unauthorized acquisition, use, or disposition of assets that could have a material effect on new text end 94.3 new text begin the financial statements, for example, those items specified in subdivision 4, paragraphs new text end 94.4 new text begin (a), clauses (2) to (6), (b), and (c). new text end 94.5 new text begin (f) "SEC" means the United States Securities and Exchange Commission. new text end 94.6 new text begin (g) "Section 404" means Section 404 of the Sarbanes-Oxley Act of 2002 and the new text end 94.7 new text begin SEC's rules and regulations promulgated under it. new text end 94.8 new text begin (h) "Section 404 report" means management's report on "internal control over new text end 94.9 new text begin financial reporting" as defined by the SEC and the related attestation report of the new text end 94.10 new text begin independent certified public accountant as described in paragraph (a). new text end 94.11 new text begin (i) "SOX compliant entity" means an entity that either is required to be new text end 94.12 new text begin compliant with, or voluntarily is compliant with, all of the following provisions of the new text end 94.13 new text begin Sarbanes-Oxley Act of 2002: (i) the preapproval requirements of Section 201 (section new text end 94.14 new text begin 10A(i) of the Securities Exchange Act of 1934); (ii) the audit committee independence new text end 94.15 new text begin requirements of Section 301 (section 10A(m)(3) of the Securities Exchange Act of 1934); new text end 94.16 new text begin and (iii) the internal control over financial reporting requirements of Section 404 (Item new text end 94.17 new text begin 308 of SEC Regulation S-K). new text end 94.18     new text begin Subd. 2. new text end new text begin Filing requirements. new text end new text begin Every insurance company doing business in this new text end 94.19 new text begin state, including fraternal benefit societies, reciprocal exchanges, service plan corporations new text end 94.20 new text begin licensed pursuant to chapter 62C, and legal service plans licensed pursuant to chapter new text end 94.21 new text begin 62G, unless exempted by the commissioner pursuant to subdivision 9, paragraph (a), or by new text end 94.22 new text begin subdivision 18, shall have an annual audit of the financial activities of the most recently new text end 94.23 new text begin completed calendar year performed by an independent certified public accountant, and new text end 94.24 new text begin shall file the report of this audit with the commissioner on or before June 1 for the new text end 94.25 new text begin immediately preceding year ending December 31. The commissioner may require an new text end 94.26 new text begin insurer to file an audited financial report earlier than June 1 with 90 days' advance notice new text end 94.27 new text begin to the insurer. new text end 94.28 new text begin Extensions of the June 1 filing date may be granted by the commissioner for 30-day new text end 94.29 new text begin periods upon a showing by the insurer and its independent certified public accountant of new text end 94.30 new text begin the reasons for requesting the extension and a determination by the commissioner of good new text end 94.31 new text begin cause for the extension. new text end 94.32 new text begin The request for extension must be submitted in writing not less than ten days before new text end 94.33 new text begin the due date in sufficient detail to permit the commissioner to make an informed decision new text end 94.34 new text begin with respect to the requested extension. new text end 95.1 new text begin If an extension is granted in accordance with this subdivision, a similar extension of new text end 95.2 new text begin 30 days is granted to the filing of management's report of internal control over financial new text end 95.3 new text begin reporting. new text end 95.4 new text begin Every insurer required to file an annual audited financial report pursuant to this new text end 95.5 new text begin subdivision shall designate a group of individuals as constituting its audit committee. The new text end 95.6 new text begin audit committee of an entity that controls an insurer may be deemed to be the insurer's new text end 95.7 new text begin audit committee for purposes of this subdivision at the election of the controlling person. new text end 95.8     new text begin Subd. 3. new text end new text begin Exemptions. new text end new text begin Foreign and alien insurers filing audited financial reports new text end 95.9 new text begin in another state under the other state's requirements of audited financial reports which new text end 95.10 new text begin have been found by the commissioner to be substantially similar to these requirements new text end 95.11 new text begin are exempt from this section if a copy of the audited financial report, communication of new text end 95.12 new text begin internal control related matters noted in an audit, accountant's letter of qualifications, and new text end 95.13 new text begin report on significant deficiencies in internal controls, which are filed with the other state, new text end 95.14 new text begin are filed with the commissioner in accordance with the filing dates specified in subdivision new text end 95.15 new text begin 2 (Canadian insurers may submit accountants' reports as filed with the Canadian Dominion new text end 95.16 new text begin Department of Insurance); and a copy of any notification of adverse financial condition new text end 95.17 new text begin report filed with the other state is filed with the commissioner within the time specified new text end 95.18 new text begin in subdivision 11. Foreign or alien insurers required to file management's report of new text end 95.19 new text begin internal control over financial reporting in another state are exempt from filing the report new text end 95.20 new text begin in this state provided the other state has substantially similar reporting requirements and new text end 95.21 new text begin the report is filed with the commissioner of the other state within the time specified. new text end 95.22 new text begin This subdivision does not prohibit or in any way limit the commissioner from ordering, new text end 95.23 new text begin conducting, and performing examinations of insurers under the authority of this chapter. new text end 95.24     new text begin Subd. 4. new text end new text begin Contents of annual audit; financial report. new text end new text begin (a) The annual audited new text end 95.25 new text begin financial report must report, in conformity with statutory accounting practices required new text end 95.26 new text begin or permitted by the commissioner of insurance of the state of domicile, the financial new text end 95.27 new text begin position of the insurer as of the end of the most recent calendar year and the results of new text end 95.28 new text begin its operations, cash flows, and changes in capital and surplus for the year ended. The new text end 95.29 new text begin annual audited financial report must include: new text end 95.30 new text begin (1) a report of an independent certified public accountant; new text end 95.31 new text begin (2) a balance sheet reporting admitted assets, liabilities, capital, and surplus; new text end 95.32 new text begin (3) a statement of operations; new text end 95.33 new text begin (4) a statement of cash flows; new text end 95.34 new text begin (5) a statement of changes in capital and surplus; and new text end 95.35 new text begin (6) notes to the financial statements. new text end 96.1 new text begin (b) The notes required under paragraph (a) are those required by the appropriate new text end 96.2 new text begin National Association of Insurance Commissioners (NAIC) annual statement instructions new text end 96.3 new text begin and National Association of Insurance Commissioners Accounting Practices and new text end 96.4 new text begin Procedures Manual and include reconciliation of differences, if any, between the audited new text end 96.5 new text begin statutory financial statements and the annual statement filed under section 60A.13, new text end 96.6 new text begin subdivision 1, with a written description of the nature of these differences. new text end 96.7 new text begin (c) The financial statements included in the audited financial report must be prepared new text end 96.8 new text begin in a form and using language and groupings substantially the same as the relevant sections new text end 96.9 new text begin of the annual statement of the insurer filed with the commissioner. The financial statement new text end 96.10 new text begin must be comparative, presenting the amounts as of December 31 of the current year and new text end 96.11 new text begin the amounts as of the immediately preceding December 31. In the first year in which new text end 96.12 new text begin an insurer is required to file an audited financial report, the comparative data may be new text end 96.13 new text begin omitted. The amounts may be rounded to the nearest $1,000, and all immaterial amounts new text end 96.14 new text begin may be combined. new text end 96.15     new text begin Subd. 5. new text end new text begin Designation of independent certified public accountant. new text end new text begin Each insurer new text end 96.16 new text begin required by this section to file an annual audited financial report must notify the new text end 96.17 new text begin commissioner in writing of the name and address of the independent certified public new text end 96.18 new text begin accountant or accounting firm retained to conduct the annual audit within 60 days after new text end 96.19 new text begin becoming subject to the annual audit requirement. The insurer shall obtain from the new text end 96.20 new text begin accountant a letter which states that the accountant is aware of the provisions that relate new text end 96.21 new text begin to accounting and financial matters in the insurance laws and the rules of the insurance new text end 96.22 new text begin regulatory authority of the state of domicile. The letter shall affirm that the accountant will new text end 96.23 new text begin express an opinion on the financial statements in terms of their conformity to the statutory new text end 96.24 new text begin accounting practices prescribed or otherwise permitted by that insurance regulatory new text end 96.25 new text begin authority, specifying the exceptions believed to be appropriate. A copy of the accountant's new text end 96.26 new text begin letter shall be filed with the commissioner. new text end 96.27     new text begin Subd. 6. new text end new text begin Report of disagreements. new text end new text begin If an accountant who was the accountant for new text end 96.28 new text begin the immediately preceding filed audited financial report is dismissed or resigns, the new text end 96.29 new text begin insurer shall notify the commissioner of this event within five business days. Within new text end 96.30 new text begin ten business days of this notification, the insurer shall also furnish the commissioner new text end 96.31 new text begin with a separate letter stating whether in the 24 months preceding this event there were new text end 96.32 new text begin any disagreements with the former accountant on any matter of accounting principles or new text end 96.33 new text begin practices, financial statement disclosure, or auditing scope or procedure, which, if not new text end 96.34 new text begin resolved to the satisfaction of the former accountant, would have caused that person to new text end 96.35 new text begin make reference to the subject matter of the disagreement in connection with the opinion new text end 96.36 new text begin on the financial statements. The disagreements required to be reported in response to this new text end 97.1 new text begin subdivision include both those resolved to the former accountant's satisfaction and those new text end 97.2 new text begin not resolved to the former accountant's satisfaction. Disagreements contemplated by this new text end 97.3 new text begin subdivision are those disagreements between personnel of the insurer responsible for new text end 97.4 new text begin presentation of its financial statements and personnel of the accounting firm responsible new text end 97.5 new text begin for rendering its report. The insurer shall also in writing request the former accountant new text end 97.6 new text begin to furnish a letter addressed to the insurer stating whether the accountant agrees with new text end 97.7 new text begin the statements contained in the insurer's letter and, if not, stating the reasons for any new text end 97.8 new text begin disagreement. The insurer shall furnish this responsive letter from the former accountant new text end 97.9 new text begin to the commissioner together with its own. new text end 97.10     new text begin Subd. 7. new text end new text begin Qualifications of independent certified public accountant. new text end new text begin (a) The new text end 97.11 new text begin commissioner shall not recognize any person or firm as a qualified independent certified new text end 97.12 new text begin public accountant that is not in good standing with the American Institute of Certified new text end 97.13 new text begin Public Accountants and in all states in which the accountant is licensed or is required new text end 97.14 new text begin to be licensed to practice, or for a Canadian or British company, that is not a chartered new text end 97.15 new text begin accountant, or that has either directly or indirectly entered into an agreement of indemnity new text end 97.16 new text begin or release from liability (collectively referred to as an indemnification agreement) with new text end 97.17 new text begin respect to the audit of the insurer. Except as otherwise provided, an independent certified new text end 97.18 new text begin public accountant must be recognized as qualified as long as the person conforms to the new text end 97.19 new text begin standards of the person's profession, as contained in the Code of Professional Conduct new text end 97.20 new text begin of the American Institute of Certified Public Accountants and the Code of Professional new text end 97.21 new text begin Conduct of the Minnesota Board of Public Accountancy or similar code and the person is new text end 97.22 new text begin properly licensed in good standing with all required state boards of accountancy. new text end 97.23 new text begin (b) The lead or coordinating audit partner, having primary responsibility for the new text end 97.24 new text begin audit, may not act in that capacity for more than five consecutive years. The person shall new text end 97.25 new text begin be disqualified from acting in that or a similar capacity for the same company or its new text end 97.26 new text begin insurance subsidiaries or affiliates for a period of five consecutive years. An insurer may new text end 97.27 new text begin make application to the commissioner for relief from this rotation requirement on the new text end 97.28 new text begin basis of unusual circumstances. This application must be made at least 30 days before new text end 97.29 new text begin the end of the calendar year. The commissioner may consider the following factors in new text end 97.30 new text begin determining if the relief should be granted: new text end 97.31 new text begin (1) number of partners, expertise of the partners, or the number of insurance clients new text end 97.32 new text begin in the currently registered firm; new text end 97.33 new text begin (2) premium volume of the insurer; or new text end 97.34 new text begin (3) number of jurisdictions in which the insurer transacts business. new text end 97.35 new text begin The insurer shall file, with its annual statement filing, the approval for relief from this new text end 97.36 new text begin paragraph with the states that it is licensed in or doing business in and with the NAIC. If new text end 98.1 new text begin the nondomestic state accepts electronic filing with the NAIC, the insurer shall file the new text end 98.2 new text begin approval in an electronic format acceptable to the NAIC. new text end 98.3 new text begin (c) The commissioner shall not recognize as a qualified independent certified public new text end 98.4 new text begin accountant, nor accept an annual audited financial report, prepared in whole or in part by new text end 98.5 new text begin an accountant who provides to an insurer, contemporaneously with the audit, the following new text end 98.6 new text begin nonaudit services: new text end 98.7 new text begin (1) bookkeeping or other services related to the accounting records or financial new text end 98.8 new text begin statements of the insurer; new text end 98.9 new text begin (2) financial information systems design and implementation; new text end 98.10 new text begin (3) appraisal or valuation services, fairness opinions, or contribution in-kind reports; new text end 98.11 new text begin (4) actuarially oriented advisory services involving the determination of amounts new text end 98.12 new text begin recorded in the financial statements. The accountant may assist an insurer in understanding new text end 98.13 new text begin the methods, assumptions, and inputs used in the determination of amounts recorded in the new text end 98.14 new text begin financial statement only if it is reasonable to conclude that the services provided will not new text end 98.15 new text begin be subject to audit procedures during an audit of the insurer's financial statements. An new text end 98.16 new text begin accountant's actuary may also issue an actuarial opinion or certification on an insurer's new text end 98.17 new text begin reserves if the following conditions have been met: new text end 98.18 new text begin (i) neither the accountant nor the accountant's actuary has performed any new text end 98.19 new text begin management functions or made any management decisions; new text end 98.20 new text begin (ii) the insurer has competent personnel, or engages a third-party actuary, to estimate new text end 98.21 new text begin the loss reserves for which management takes responsibility; and new text end 98.22 new text begin (iii) the accountant's actuary tests the reasonableness of the reserves after the new text end 98.23 new text begin insurer's management has determined the amount of the loss reserves; new text end 98.24 new text begin (5) internal audit outsourcing services; new text end 98.25 new text begin (6) management functions or human resources; new text end 98.26 new text begin (7) broker or dealer, investment adviser, or investment banking services; new text end 98.27 new text begin (8) legal services or expert services unrelated to the audit; and new text end 98.28 new text begin (9) any other services that the commissioner determines, by rule, are impermissible. new text end 98.29 new text begin (d) The commissioner shall not recognize as a qualified independent certified public new text end 98.30 new text begin accountant, nor accept any audited financial report, prepared in whole or in part by any new text end 98.31 new text begin natural person who has been convicted of fraud, bribery, a violation of the Racketeer new text end 98.32 new text begin Influenced and Corrupt Organizations Act, United States Code, title 18, sections 1961 to new text end 98.33 new text begin 1968, or any dishonest conduct or practices under federal or state law, has been found to new text end 98.34 new text begin have violated the insurance laws of this state with respect to any previous reports submitted new text end 98.35 new text begin under this section, or has demonstrated a pattern or practice of failing to detect or disclose new text end 98.36 new text begin material information in previous reports filed under the provisions of this section. new text end 99.1 new text begin (e) The commissioner, after notice and hearing under chapter 14, may find that new text end 99.2 new text begin the accountant is not qualified for purposes of expressing an opinion on the financial new text end 99.3 new text begin statements in the annual audited financial report. The commissioner may require the new text end 99.4 new text begin insurer to replace the accountant with another whose relationship with the insurer is new text end 99.5 new text begin qualified within the meaning of this section. new text end 99.6     new text begin Subd. 8. new text end new text begin Exemptions to qualifications of certified public accountant. new text end new text begin (a) Insurers new text end 99.7 new text begin having direct written and assumed premiums of less than $100,000,000 in any calendar new text end 99.8 new text begin year may request an exemption from subdivision 7, paragraph (c). The insurer shall new text end 99.9 new text begin file with the commissioner a written statement discussing the reasons why the insurer new text end 99.10 new text begin should be exempt from these provisions. If the commissioner finds, upon review of this new text end 99.11 new text begin statement, that compliance with this section would constitute a financial or organizational new text end 99.12 new text begin hardship upon the insurer, an exemption may be granted. new text end 99.13 new text begin (b) A qualified independent certified public accountant who performs the audit new text end 99.14 new text begin may engage in other nonaudit services, including tax services, that are not described in new text end 99.15 new text begin subdivision 7, paragraph (c), only if the activity is approved in advance by the audit new text end 99.16 new text begin committee, in accordance with paragraph (c). new text end 99.17 new text begin (c) All auditing services and nonaudit services provided to an insurer by the qualified new text end 99.18 new text begin independent certified public accountant of the insurer must be preapproved by the audit new text end 99.19 new text begin committee. The preapproval requirement is waived with respect to nonaudit services if new text end 99.20 new text begin the insurer is a SOX compliant entity or a direct or indirect wholly owned subsidiary of a new text end 99.21 new text begin SOX compliant entity or: new text end 99.22 new text begin (1) the aggregate amount of all such nonaudit services provided to the insurer new text end 99.23 new text begin constitutes not more than five percent of the total amount of fees paid by the insurer to new text end 99.24 new text begin its qualified independent certified public accountant during the fiscal year in which the new text end 99.25 new text begin nonaudit services are provided; new text end 99.26 new text begin (2) the services were not recognized by the insurer at the time of the engagement to new text end 99.27 new text begin be nonaudit services; and new text end 99.28 new text begin (3) the services are promptly brought to the attention of the audit committee and new text end 99.29 new text begin approved before the completion of the audit by the audit committee or by one or more new text end 99.30 new text begin members of the audit committee who are the members of the board of directors to whom new text end 99.31 new text begin authority to grant such approvals has been delegated by the audit committee. new text end 99.32 new text begin (d) The audit committee may delegate to one or more designated members of the new text end 99.33 new text begin audit committee the authority to grant the preapprovals required by paragraph (c). The new text end 99.34 new text begin decisions of any member to whom this authority is delegated must be presented to the full new text end 99.35 new text begin audit committee at each of its scheduled meetings. new text end 100.1 new text begin (e) The commissioner shall not recognize an independent certified public accountant new text end 100.2 new text begin as qualified for a particular insurer if a member of the board, president, chief executive new text end 100.3 new text begin officer, controller, chief financial officer, chief accounting officer, or any person serving in new text end 100.4 new text begin an equivalent position for that insurer, was employed by the independent certified public new text end 100.5 new text begin accountant and participated in the audit of that insurer during the one-year period preceding new text end 100.6 new text begin the date that the most current statutory opinion is due. This paragraph applies only to new text end 100.7 new text begin partners and senior managers involved in the audit. An insurer may make application to new text end 100.8 new text begin the commissioner for relief from this paragraph on the basis of unusual circumstances. new text end 100.9 new text begin (f) The insurer shall file, with its annual statement filing, the approval for relief with new text end 100.10 new text begin the states that it is licensed in or doing business in and the NAIC. If the nondomestic state new text end 100.11 new text begin accepts electronic filing with the NAIC, the insurer shall file the approval in an electronic new text end 100.12 new text begin format acceptable to the NAIC. new text end 100.13     new text begin Subd. 9. new text end new text begin Consolidated or combined audits. new text end new text begin (a) The commissioner may allow new text end 100.14 new text begin an insurer to file consolidated or combined audited financial statements required by new text end 100.15 new text begin subdivision 2, in lieu of separate annual audited financial statements, where it can be new text end 100.16 new text begin demonstrated that an insurer is part of a group of insurance companies that has a pooling new text end 100.17 new text begin or 100 percent reinsurance agreement which substantially affects the solvency and new text end 100.18 new text begin integrity of the reserves of the insurer and the insurer cedes all of its direct and assumed new text end 100.19 new text begin business to the pool. An affiliated insurance company not meeting these requirements may new text end 100.20 new text begin be included in the consolidated or combined audited financial statements, if the company's new text end 100.21 new text begin total admitted assets are less than five percent of the consolidated group's total admitted new text end 100.22 new text begin assets. If these circumstances exist, then the company may file a written application to new text end 100.23 new text begin file consolidated or combined audited financial statements. This application must be for new text end 100.24 new text begin a specified period. new text end 100.25 new text begin (b) Upon written application by a domestic insurer, the commissioner may new text end 100.26 new text begin authorize the domestic insurer to include additional affiliated insurance companies in the new text end 100.27 new text begin consolidated or combined audited financial statements. A foreign insurer must obtain the new text end 100.28 new text begin prior written authorization of the commissioner of its state of domicile in order to submit new text end 100.29 new text begin an application for authority to file consolidated or combined audited financial statements. new text end 100.30 new text begin This application must be for a specified period. new text end 100.31 new text begin (c) A consolidated annual audit filing must include a columnar consolidated or new text end 100.32 new text begin combining worksheet. Amounts shown on the audited consolidated or combined financial new text end 100.33 new text begin statement must be shown on the worksheet. Amounts for each insurer must be stated new text end 100.34 new text begin separately. Noninsurance operations may be shown on the worksheet on a combined or new text end 100.35 new text begin individual basis. Explanations of consolidating or eliminating entries must be shown on new text end 100.36 new text begin the worksheet. A reconciliation of any differences between the amounts shown in the new text end 101.1 new text begin individual insurer columns of the worksheet and comparable amounts shown on the annual new text end 101.2 new text begin statement of the insurers must be included on the worksheet. new text end 101.3     new text begin Subd. 10. new text end new text begin Scope of audit and report of independent certified public accountant. new text end 101.4 new text begin Financial statements furnished pursuant to subdivision 4 must be examined by an new text end 101.5 new text begin independent certified public accountant. The audit of the insurer's financial statements new text end 101.6 new text begin must be conducted in accordance with generally accepted auditing standards. In new text end 101.7 new text begin accordance with AICPA Statement on Auditing Standards (SAS) No. 109, Understanding new text end 101.8 new text begin the Entity and its Environment and Assessing the Risks of Material Misstatement, or its new text end 101.9 new text begin replacement, the independent certified public accountant should obtain an understanding new text end 101.10 new text begin of internal control sufficient to plan the audit. To the extent required by SAS No. 109, new text end 101.11 new text begin for those insurers required to file a management's report of internal control over financial new text end 101.12 new text begin reporting pursuant to subdivision 17, the independent certified public accountant should new text end 101.13 new text begin consider (as that term is defined in SAS No. 102, Defining Professional Requirements in new text end 101.14 new text begin Statements on Auditing Standards or its replacement) the most recently available report in new text end 101.15 new text begin planning and performing the audit of the statutory financial statements. Consideration new text end 101.16 new text begin should be given to other procedures illustrated in the Financial Condition Examiners new text end 101.17 new text begin Handbook promulgated by the National Association of Insurance Commissioners as the new text end 101.18 new text begin independent certified public accountant deems necessary. new text end 101.19     new text begin Subd. 11. new text end new text begin Notification of adverse financial condition. new text end new text begin The insurer required to new text end 101.20 new text begin furnish the annual audited financial report shall require the independent certified public new text end 101.21 new text begin accountant to provide written notice within five business days to the board of directors of new text end 101.22 new text begin the insurer or its audit committee of any determination by that independent certified public new text end 101.23 new text begin accountant that the insurer has materially misstated its financial condition as reported to new text end 101.24 new text begin the commissioner as of the balance sheet date currently under audit or that the insurer does new text end 101.25 new text begin not meet the minimum capital and surplus requirement of sections new text end new text begin , new text end new text begin , and new text end 101.26 new text begin as of that date. An insurer required to file an annual audited financial report who new text end 101.27 new text begin received a notification of adverse financial condition from the accountant shall file a new text end 101.28 new text begin copy of the notification with the commissioner within five business days of the receipt new text end 101.29 new text begin of the notification. The insurer shall provide the independent certified public accountant new text end 101.30 new text begin making the notification with evidence of the report being furnished to the commissioner. new text end 101.31 new text begin If the independent certified public accountant fails to receive the evidence within the new text end 101.32 new text begin required five-day period, the independent certified public accountant shall furnish to the new text end 101.33 new text begin commissioner a copy of the notification to the board of directors or its audit committee new text end 101.34 new text begin within the next five business days. No independent certified public accountant is liable in new text end 101.35 new text begin any manner to any person for any statement made in connection with this subdivision if new text end 101.36 new text begin the statement is made in good faith in compliance with this subdivision. If the accountant new text end 102.1 new text begin becomes aware of facts which might have affected the audited financial report after new text end 102.2 new text begin the date it was filed, the accountant shall take the action prescribed by AU section new text end 102.3 new text begin 561, Subsequent Discovery of Facts Existing at the Date of the Auditor's Report of the new text end 102.4 new text begin Professional Standards issued by the American Institute of Certified Public Accountants, new text end 102.5 new text begin or its replacement. new text end 102.6     new text begin Subd. 12. new text end new text begin Communication of internal control related matters noted in an new text end 102.7 new text begin audit. new text end new text begin In addition to the annual audited financial report, each insurer shall furnish the new text end 102.8 new text begin commissioner with a written communication as to any unremediated material weaknesses new text end 102.9 new text begin in its internal control over financial reporting noted during the audit. The communication new text end 102.10 new text begin must be prepared by the accountant within 60 days after the filing of the annual audited new text end 102.11 new text begin financial report, and must contain a description of any unremediated material weakness, as new text end 102.12 new text begin the term material weakness is defined by SAS No. 115, Communicating Internal Control new text end 102.13 new text begin Related Matters Identified in an Audit, or its replacement, as of December 31 immediately new text end 102.14 new text begin preceding so as to coincide with the audited financial report discussed in subdivision 2 in new text end 102.15 new text begin the insurer's internal control over financial reporting noted by the accountant during the new text end 102.16 new text begin course of their audit of the financial statements. If no unremediated material weaknesses new text end 102.17 new text begin were noted, the communication should so state. new text end 102.18 new text begin The insurer is required to provide a description of remedial actions taken or new text end 102.19 new text begin proposed to correct unremediated material weaknesses, if the actions are not described in new text end 102.20 new text begin the accountant's communication. new text end 102.21     new text begin Subd. 13. new text end new text begin Accountant's letter of qualification. new text end new text begin The accountant shall furnish the new text end 102.22 new text begin insurer in connection with, and for inclusion in, the filing of the annual audited financial new text end 102.23 new text begin report, a letter stating that the accountant is independent with respect to the insurer and new text end 102.24 new text begin conforms to the standards of the accountant's profession as contained in the Code of new text end 102.25 new text begin Professional Conduct of the American Institute of Certified Public Accountants and the new text end 102.26 new text begin Code of Professional Conduct of the Minnesota Board of Accountancy or similar code; new text end 102.27 new text begin the background and experience in general, and the experience in audits of insurers of the new text end 102.28 new text begin staff assigned to the engagement and whether each is an independent certified public new text end 102.29 new text begin accountant; that the accountant understands that the annual audited financial report and the new text end 102.30 new text begin opinion on it will be filed in compliance with this statute and that the commissioner will new text end 102.31 new text begin be relying on this information in the monitoring and regulation of the financial position of new text end 102.32 new text begin insurers; that the accountant consents to the requirements of subdivision 14 and that the new text end 102.33 new text begin accountant consents and agrees to make available for review by the commissioner, or the new text end 102.34 new text begin commissioner's designee or appointed agent, the work papers, as defined in subdivision new text end 102.35 new text begin 14; a representation that the accountant is properly licensed in good standing by the new text end 102.36 new text begin appropriate state licensing authorities and is a member in good standing in the American new text end 103.1 new text begin Institute of Certified Public Accountants; and a representation that the accountant complies new text end 103.2 new text begin with subdivision 7. Nothing in this section prohibits the accountant from utilizing staff new text end 103.3 new text begin the accountant deems appropriate where use is consistent with the standards prescribed new text end 103.4 new text begin by generally accepted auditing standards. new text end 103.5     new text begin Subd. 14. new text end new text begin Availability and maintenance of independent certified public new text end 103.6 new text begin accountants' work papers. new text end new text begin Work papers are the records kept by the independent certified new text end 103.7 new text begin public accountant of the procedures followed, tests performed, information obtained, and new text end 103.8 new text begin conclusions reached pertinent to the independent certified public accountant's audit of the new text end 103.9 new text begin financial statements of an insurer. Work papers may include audit planning documents, new text end 103.10 new text begin work programs, analyses, memoranda, letters of confirmation and representation, new text end 103.11 new text begin management letters, abstracts of company documents, and schedules or commentaries new text end 103.12 new text begin prepared or obtained by the independent certified public accountant in the course of the new text end 103.13 new text begin audit of the financial statements of an insurer and that support the accountant's opinion. new text end 103.14 new text begin Every insurer required to file an audited financial report shall require the accountant, new text end 103.15 new text begin through the insurer, to make available for review by the examiners the work papers new text end 103.16 new text begin prepared in the conduct of the audit and any communications related to the audit between new text end 103.17 new text begin the accountant and the insurer. The work papers must be made available at the offices of new text end 103.18 new text begin the insurer, at the offices of the commissioner, or at any other reasonable place designated new text end 103.19 new text begin by the commissioner. The insurer shall require that the accountant retain the audit work new text end 103.20 new text begin papers and communications until the commissioner has filed a report on examination new text end 103.21 new text begin covering the period of the audit but no longer than seven years after the period reported new text end 103.22 new text begin upon, provided retention of the working papers beyond the seven years is not required by new text end 103.23 new text begin other professional or regulatory requirements. In the conduct of the periodic review by new text end 103.24 new text begin the examiners, it must be agreed that photocopies of pertinent audit work papers may be new text end 103.25 new text begin made and retained by the commissioner. These copies shall be part of the commissioner's new text end 103.26 new text begin work papers and must be given the same confidentiality as other examination work papers new text end 103.27 new text begin generated by the commissioner. new text end 103.28     new text begin Subd. 15. new text end new text begin Requirements for audit committee. new text end new text begin (a) The audit committee must new text end 103.29 new text begin be directly responsible for the appointment, compensation, and oversight of the work new text end 103.30 new text begin of any accountant including resolution of disagreements between management and the new text end 103.31 new text begin accountant regarding financial reporting for the purpose of preparing or issuing the audited new text end 103.32 new text begin financial report or related work pursuant to this section. Each accountant shall report new text end 103.33 new text begin directly to the audit committee. new text end 103.34 new text begin (b) Each member of the audit committee must be a member of the board of directors new text end 103.35 new text begin of the insurer or a member of the board of directors of an entity elected pursuant to new text end 103.36 new text begin paragraph (e) and subdivision 1, paragraph (b). new text end 104.1 new text begin (c) In order to be considered independent for purposes of this section, a member of new text end 104.2 new text begin the audit committee may not, other than in his or her capacity as a member of the audit new text end 104.3 new text begin committee, the board of directors, or any other board committee, accept any consulting, new text end 104.4 new text begin advisory, or other compensatory fee from the entity or be an affiliated person of the entity new text end 104.5 new text begin or any subsidiary of the entity. However, if law requires board participation by otherwise new text end 104.6 new text begin nonindependent members, that law shall prevail and such members may participate in the new text end 104.7 new text begin audit committee and be designated as independent for audit committee purposes, unless new text end 104.8 new text begin they are an officer or employee of the insurer or one of its affiliates. new text end 104.9 new text begin (d) If a member of the audit committee ceases to be independent for reasons outside new text end 104.10 new text begin the member's reasonable control, that person, with notice by the responsible entity to the new text end 104.11 new text begin state, may remain an audit committee member of the responsible entity until the earlier of new text end 104.12 new text begin the next annual meeting of the responsible entity or one year from the occurrence of the new text end 104.13 new text begin event that caused the member to be no longer independent. new text end 104.14 new text begin (e) To exercise the election of the controlling person to designate the audit committee new text end 104.15 new text begin for purposes of this section, the ultimate controlling person shall provide written notice to new text end 104.16 new text begin the commissioners of the affected insurers. Notification must be made timely before the new text end 104.17 new text begin issuance of the statutory audit report and include a description of the basis for the election. new text end 104.18 new text begin The election can be changed through notice to the commissioner by the insurer, which new text end 104.19 new text begin shall include a description of the basis for the change. The election remains in effect for new text end 104.20 new text begin perpetuity, until rescinded. new text end 104.21 new text begin (f) The audit committee shall require the accountant that performs for an insurer any new text end 104.22 new text begin audit required by this section to timely report to the audit committee in accordance with new text end 104.23 new text begin the requirements of SAS No. 114, The Auditor's Communication with Those Charged new text end 104.24 new text begin with Governance, or its replacement, including: new text end 104.25 new text begin (1) all significant accounting policies and material permitted practices; new text end 104.26 new text begin (2) all material alternative treatments of financial information within statutory new text end 104.27 new text begin accounting principles that have been discussed with management officials of the insurer, new text end 104.28 new text begin ramifications of the use of the alternative disclosures and treatments, and the treatment new text end 104.29 new text begin preferred by the accountant; and new text end 104.30 new text begin (3) other material written communications between the accountant and the new text end 104.31 new text begin management of the insurer, such as any management letter or schedule of unadjusted new text end 104.32 new text begin differences. new text end 104.33 new text begin (g) If an insurer is a member of an insurance holding company system, the reports new text end 104.34 new text begin required by paragraph (f) may be provided to the audit committee on an aggregate basis new text end 104.35 new text begin for insurers in the holding company system, provided that any substantial differences new text end 104.36 new text begin among insurers in the system are identified to the audit committee. new text end 105.1 new text begin (h) The proportion of independent audit committee members shall meet or exceed new text end 105.2 new text begin the following criteria: new text end 105.3 new text begin (1) for companies with prior calendar year direct written and assumed premiums $0 new text end 105.4 new text begin to $300,000,000, no minimum requirements; new text end 105.5 new text begin (2) for companies with prior calendar year direct written and assumed premiums new text end 105.6 new text begin over $300,000,000 to $500,000,000, majority of members must be independent; and new text end 105.7 new text begin (3) for companies with prior calendar year direct written and assumed premiums new text end 105.8 new text begin over $500,000,000, 75 percent or more must be independent. new text end 105.9 new text begin (i) An insurer with direct written and assumed premium, excluding premiums new text end 105.10 new text begin reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less new text end 105.11 new text begin than $500,000,000 may make application to the commissioner for a waiver from the new text end 105.12 new text begin requirements of this subdivision based upon hardship. The insurer shall file, with its new text end 105.13 new text begin annual statement filing, the approval for relief from this subdivision with the states that new text end 105.14 new text begin it is licensed in or doing business in and the NAIC. If the nondomestic state accepts new text end 105.15 new text begin electronic filing with the NAIC, the insurer shall file the approval in an electronic format new text end 105.16 new text begin acceptable to the NAIC. new text end 105.17 new text begin This subdivision does not apply to foreign or alien insurers licensed in this state or new text end 105.18 new text begin an insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary new text end 105.19 new text begin of a SOX compliant entity. new text end 105.20     new text begin Subd. 16. new text end new text begin Conduct of insurer in connection with the preparation of required new text end 105.21 new text begin reports and documents. new text end new text begin (a) No director or officer of an insurer shall, directly or indirectly: new text end 105.22 new text begin (1) make or cause to be made a materially false or misleading statement to an new text end 105.23 new text begin accountant in connection with any audit, review, or communication required under this new text end 105.24 new text begin section; or new text end 105.25 new text begin (2) omit to state, or cause another person to omit to state, any material fact necessary new text end 105.26 new text begin in order to make statements made, in light of the circumstances under which the statements new text end 105.27 new text begin were made, not misleading to an accountant in connection with any audit, review, or new text end 105.28 new text begin communication required under this section. new text end 105.29 new text begin (b) No officer or director of an insurer, or any other person acting under the direction new text end 105.30 new text begin thereof, shall directly or indirectly take any action to coerce, manipulate, mislead, or new text end 105.31 new text begin fraudulently influence any accountant engaged in the performance of an audit pursuant to new text end 105.32 new text begin this section if that person knew or should have known that the action, if successful, could new text end 105.33 new text begin result in rendering the insurer's financial statements materially misleading. new text end 105.34 new text begin (c) For purposes of paragraph (b), actions that, "if successful, could result in new text end 105.35 new text begin rendering the insurer's financial statements materially misleading" include, but are not new text end 106.1 new text begin limited to, actions taken at any time with respect to the professional engagement period to new text end 106.2 new text begin coerce, manipulate, mislead, or fraudulently influence an accountant: new text end 106.3 new text begin (1) to issue or reissue a report on an insurer's financial statements that is not new text end 106.4 new text begin warranted in the circumstances due to material violations of statutory accounting new text end 106.5 new text begin principles prescribed by the commissioner, generally accepted auditing standards, or new text end 106.6 new text begin other professional or regulatory standards; new text end 106.7 new text begin (2) not to perform audit, review, or other procedures required by generally accepted new text end 106.8 new text begin auditing standards or other professional standards; new text end 106.9 new text begin (3) not to withdraw an issued report; or new text end 106.10 new text begin (4) not to communicate matters to an insurer's audit committee. new text end 106.11     new text begin Subd. 17. new text end new text begin Management's report of internal control over financial reporting. new text end 106.12 new text begin (a) Every insurer required to file an audited financial report pursuant to this section that new text end 106.13 new text begin has annual direct written and assumed premiums, excluding premiums reinsured with the new text end 106.14 new text begin Federal Crop Insurance Corporation and Federal Flood Program, of $500,000,000 or new text end 106.15 new text begin more, shall prepare a report of the insurer's or group of insurers' internal control over new text end 106.16 new text begin financial reporting, as these terms are defined in subdivision 1. The report must be filed new text end 106.17 new text begin with the commissioner along with the communication of internal control related matters new text end 106.18 new text begin noted in an audit described under subdivision 12. Management's report of internal control new text end 106.19 new text begin over financial reporting shall be as of December 31 immediately preceding. new text end 106.20 new text begin (b) Notwithstanding the premium threshold in paragraph (a), the commissioner may new text end 106.21 new text begin require an insurer to file management's report of internal control over financial reporting new text end 106.22 new text begin if the insurer is in any RBC level event, or meets any one or more of the standards of new text end 106.23 new text begin an insurer deemed to be in hazardous financial condition pursuant to sections 60G.20 new text end 106.24 new text begin to 60G.22. new text end 106.25 new text begin (c) An insurer or a group of insurers that is: new text end 106.26 new text begin (1) directly subject to Section 404; new text end 106.27 new text begin (2) part of a holding company system whose parent is directly subject to Section 404; new text end 106.28 new text begin (3) not directly subject to Section 404 but is a SOX compliant entity; or new text end 106.29 new text begin (4) a member of a holding company system whose parent is not directly subject to new text end 106.30 new text begin Section 404 but is a SOX compliant entity; new text end 106.31 new text begin may file its or its parent's Section 404 report and an addendum in satisfaction of this new text end 106.32 new text begin requirement provided that those internal controls of the insurer or group of insurers new text end 106.33 new text begin having a material impact on the preparation of the insurer's or group of insurers' audited new text end 106.34 new text begin statutory financial statements, consisting of those items included in subdivision 4, new text end 106.35 new text begin paragraphs (a), clauses (2) to (6), (b), and (c), were included in the scope of the Section new text end 106.36 new text begin 404 report. The addendum shall be a positive statement by management that there are new text end 107.1 new text begin no material processes with respect to the preparation of the insurer's or group of insurers' new text end 107.2 new text begin audited statutory financial statements, consisting of those items included in subdivision 4, new text end 107.3 new text begin paragraphs (a), clauses (2) to (6), (b), and (c), excluded from the Section 404 report. If new text end 107.4 new text begin there are internal controls of the insurer or group of insurers that have a material impact on new text end 107.5 new text begin the preparation of the insurer's or group of insurers' audited statutory financial statements new text end 107.6 new text begin and those internal controls were not included in the scope of the Section 404 report, the new text end 107.7 new text begin insurer or group of insurers may either file (i) a report under this subdivision, or (ii) the new text end 107.8 new text begin Section 404 report and a report under this subdivision for those internal controls that have new text end 107.9 new text begin a material impact on the preparation of the insurer's or group of insurers' audited statutory new text end 107.10 new text begin financial statements not covered by the Section 404 report. new text end 107.11 new text begin (d) Management's report of internal control over financial reporting shall include: new text end 107.12 new text begin (1) a statement that management is responsible for establishing and maintaining new text end 107.13 new text begin adequate internal control over financial reporting; new text end 107.14 new text begin (2) a statement that management has established internal control over financial new text end 107.15 new text begin reporting and an assertion, to the best of management's knowledge and belief, after diligent new text end 107.16 new text begin inquiry, as to whether its internal control over financial reporting is effective to provide new text end 107.17 new text begin reasonable assurance regarding the reliability of financial statements in accordance with new text end 107.18 new text begin statutory accounting principles; new text end 107.19 new text begin (3) a statement that briefly describes the approach or processes by which new text end 107.20 new text begin management evaluated the effectiveness of its internal control over financial reporting; new text end 107.21 new text begin (4) a statement that briefly describes the scope of work that is included and whether new text end 107.22 new text begin any internal controls were excluded; new text end 107.23 new text begin (5) disclosure of any unremediated material weaknesses in the internal control over new text end 107.24 new text begin financial reporting identified by management as of December 31 immediately preceding. new text end 107.25 new text begin Management is not permitted to conclude that the internal control over financial reporting new text end 107.26 new text begin is effective to provide reasonable assurance regarding the reliability of financial statements new text end 107.27 new text begin in accordance with statutory accounting principles if there is one or more unremediated new text end 107.28 new text begin material weaknesses in its internal control over financial reporting; new text end 107.29 new text begin (6) a statement regarding the inherent limitations of internal control systems; and new text end 107.30 new text begin (7) signatures of the chief executive officer and the chief financial officer or new text end 107.31 new text begin equivalent position or title. new text end 107.32 new text begin (e) Management shall document and make available upon financial condition new text end 107.33 new text begin examination the basis upon which its assertions, required in paragraph (d), are made. new text end 107.34 new text begin Management may base its assertions, in part, upon its review, monitoring, and testing of new text end 107.35 new text begin internal controls undertaken in the normal course of its activities. new text end 108.1 new text begin (1) Management has discretion as to the nature of the internal control framework new text end 108.2 new text begin used, and the nature and extent of documentation, in order to make its assertion in a new text end 108.3 new text begin cost-effective manner and, as such, may include assembly of or reference to existing new text end 108.4 new text begin documentation. new text end 108.5 new text begin (2) Management's report on internal control over financial reporting, required by new text end 108.6 new text begin paragraph (a), and any documentation provided in support of the report during the course new text end 108.7 new text begin of a financial condition examination, must be kept confidential by the Department of new text end 108.8 new text begin Commerce. new text end 108.9     new text begin Subd. 18. new text end new text begin Exemptions. new text end new text begin (a) Upon written application of any insurer, the new text end 108.10 new text begin commissioner may grant an exemption from compliance with the provisions of this new text end 108.11 new text begin section. In order to receive an exemption, an insurer must demonstrate to the satisfaction new text end 108.12 new text begin of the commissioner that compliance would constitute a financial or organizational new text end 108.13 new text begin hardship upon the insurer. An exemption may be granted at any time and from time new text end 108.14 new text begin to time for specified periods. Within ten days from the denial of an insurer's written new text end 108.15 new text begin request for an exemption, the insurer may request in writing a hearing on its application new text end 108.16 new text begin for an exemption. This hearing must be held in accordance with chapter 14. Upon written new text end 108.17 new text begin application of any insurer, the commissioner may permit an insurer to file annual audited new text end 108.18 new text begin financial reports on some basis other than a calendar year basis for a specified period. An new text end 108.19 new text begin exemption may not be granted until the insurer presents an alternative method satisfying new text end 108.20 new text begin the purposes of this section. Within ten days from a denial of a written request for an new text end 108.21 new text begin exemption, the insurer may request in writing a hearing on its application. The hearing new text end 108.22 new text begin must be held in accordance with chapter 14. new text end 108.23 new text begin (b) This section applies to all insurers, unless otherwise indicated, required to file new text end 108.24 new text begin an annual audit by subdivision 2, except insurers having less than $1,000,000 of direct new text end 108.25 new text begin written premiums in this state in any calendar year and fewer than 1,000 policyholders new text end 108.26 new text begin or certificate holders of directly written policies nationwide at the end of the calendar new text end 108.27 new text begin year, are exempt from this section for that year, unless the commissioner makes a new text end 108.28 new text begin specific finding that compliance is necessary for the commissioner to carry out statutory new text end 108.29 new text begin responsibilities, except that insurers having assumed premiums from reinsurance contracts new text end 108.30 new text begin or treaties of $1,000,000 or more are not exempt. new text end 108.31     new text begin Subd. 19. new text end new text begin Canadian and British companies. new text end new text begin (a) In the case of Canadian and new text end 108.32 new text begin British insurers, the annual audited financial report means the annual statement of total new text end 108.33 new text begin business on the form filed by these companies with their domiciliary supervision authority new text end 108.34 new text begin and duly audited by an independent chartered accountant. new text end 108.35 new text begin (b) For these insurers the letter required in subdivision 5 shall state that the new text end 108.36 new text begin accountant is aware of the requirements relating to the annual audited statement filed new text end 109.1 new text begin with the commissioner under subdivision 2, and shall affirm that the opinion expressed new text end 109.2 new text begin is in conformity with those requirements. new text end 109.3     new text begin Subd. 20. new text end new text begin Commercial mortgage loan valuation procedures. new text end new text begin A report of the new text end 109.4 new text begin independent certified public accountant that performs the audit of an insurer's annual new text end 109.5 new text begin statement as required under subdivision 2, shall be filed and contain a statement as to new text end 109.6 new text begin whether anything in connection with the audit came to the accountant's attention that new text end 109.7 new text begin caused the accountant to believe that the insurer failed to adopt and consistently apply the new text end 109.8 new text begin valuation procedures as required by sections new text end new text begin and new text end new text begin . new text end 109.9     new text begin Subd. 21. new text end new text begin Examinations. new text end new text begin (a) The commissioner or a designated representative shall new text end 109.10 new text begin determine the nature, scope, and frequency of examinations under this section conducted new text end 109.11 new text begin by examiners under section new text end new text begin . These examinations may cover all aspects of the new text end 109.12 new text begin insurer's assets, condition, affairs, and operations and may include and be supplemented new text end 109.13 new text begin by audit procedures performed by independent certified public accountants. Scheduling new text end 109.14 new text begin of examinations will take into account all relevant matters with respect to the insurer's new text end 109.15 new text begin condition, including results of the National Association of Insurance Commissioners, new text end 109.16 new text begin Insurance Regulatory Information Systems, changes in management, results of market new text end 109.17 new text begin conduct examinations, and audited financial reports. The type of examinations performed new text end 109.18 new text begin by examiners under this section must be compliance examinations, targeted examinations, new text end 109.19 new text begin and comprehensive examinations. new text end 109.20 new text begin (b) Compliance examinations will consist of a review of the accountant's workpapers new text end 109.21 new text begin defined under this section and a general review of the insurer's corporate affairs and new text end 109.22 new text begin insurance operations to determine compliance with the Minnesota insurance laws and new text end 109.23 new text begin the rules of the Department of Commerce. The examiners may perform alternative or new text end 109.24 new text begin additional examination procedures to supplement those performed by the accountant new text end 109.25 new text begin when the examiners determine that the procedures are necessary to verify the financial new text end 109.26 new text begin condition of the insurer. new text end 109.27 new text begin (c) Targeted examinations may cover limited areas of the insurer's operations as new text end 109.28 new text begin the commissioner may deem appropriate. new text end 109.29 new text begin (d) Comprehensive examinations will be performed when the report of the new text end 109.30 new text begin accountant as provided for in subdivision 7, paragraph (b), the notification required by new text end 109.31 new text begin subdivision 7, paragraph (c), the results of compliance or targeted examinations, or other new text end 109.32 new text begin circumstances indicate in the judgment of the commissioner or a designated representative new text end 109.33 new text begin that a complete examination of the condition and affairs of the insurer is necessary. new text end 109.34 new text begin (e) Upon completion of each targeted, compliance, or comprehensive examination, new text end 109.35 new text begin the examiner appointed by the commissioner shall make a full and true report on the new text end 109.36 new text begin results of the examination. Each report shall include a general description of the audit new text end 110.1 new text begin procedures performed by the examiners and the procedures of the accountant that new text end 110.2 new text begin the examiners may have utilized to supplement their examination procedures and the new text end 110.3 new text begin procedures that were performed by the registered independent certified public accountant new text end 110.4 new text begin if included as a supplement to the examination. new text end 110.5     new text begin Subd. 22. new text end new text begin Penalties. new text end new text begin An annual statement, report, or document related to the new text end 110.6 new text begin business of insurance must not be filed with the commissioner or issued to the public if it new text end 110.7 new text begin is signed by anyone who is represented in the instrument as an "accountant," unless the new text end 110.8 new text begin person is qualified as defined by this section. A violation of this subdivision is a violation new text end 110.9 new text begin of section new text end new text begin and punishable in accordance with section new text end new text begin . new text end 110.10 new text begin EFFECTIVE DATE. new text end new text begin (a) Domestic insurers retaining a certified public accountant new text end 110.11 new text begin on the effective date of this section who qualify as independent shall comply with this new text end 110.12 new text begin section for the year ending December 31, 2010, and each year thereafter unless the new text end 110.13 new text begin commissioner permits otherwise. new text end 110.14 new text begin (b) Domestic insurers not retaining a certified public accountant on the effective new text end 110.15 new text begin date of this section who qualifies as independent shall meet the following schedule for new text end 110.16 new text begin compliance unless the commissioner permits otherwise. new text end 110.17 new text begin (1) As of December 31, 2010, file with the commissioner an audited financial report. new text end 110.18 new text begin (2) For the year ending December 31, 2010, and each year thereafter, such insurers new text end 110.19 new text begin shall file with the commissioner all reports and communication required by this section. new text end 110.20 new text begin (c) Foreign insurers shall comply with this section for the year ending December 31, new text end 110.21 new text begin 2010, and each year thereafter, unless the commissioner permits otherwise. new text end 110.22 new text begin (d) The requirements of subdivision 7, paragraph (b), are in effect for audits of the new text end 110.23 new text begin year beginning January 1, 2010, and thereafter. new text end 110.24 new text begin (e) The requirements of subdivision 15 are in effect January 1, 2010. An insurer or new text end 110.25 new text begin group of insurers that is not required to have independent audit committee members or new text end 110.26 new text begin only a majority of independent audit committee members, as opposed to a supermajority, new text end 110.27 new text begin because the total written and assumed premium is below the threshold and subsequently new text end 110.28 new text begin becomes subject to one of the independence requirements due to changes in premium has new text end 110.29 new text begin one year following the year the threshold is exceeded, but not earlier than January 1, new text end 110.30 new text begin 2010, to comply with the independence requirements. Likewise, an insurer that becomes new text end 110.31 new text begin subject to one of the independence requirements as a result of a business combination new text end 110.32 new text begin has one calendar year following the date of acquisition or combination to comply with new text end 110.33 new text begin the independence requirements. new text end 110.34 new text begin (f) An insurer or group of insurers that is not required to file a report because the total new text end 110.35 new text begin written premium is below the threshold and subsequently becomes subject to the reporting new text end 110.36 new text begin requirements has two years following the year the threshold is exceeded, but not earlier new text end 111.1 new text begin than December 31, 2010, to file a report. Likewise, an insurer acquired in a business new text end 111.2 new text begin combination has two calendar years following the date of acquisition or combination to new text end 111.3 new text begin comply with the reporting requirements. new text end 111.4 new text begin (g) The requirements and provisions contained in this section are effective January new text end 111.5 new text begin 1, 2010, and thereafter. new text end 111.6    Sec. 12. Minnesota Statutes 2008, section 60B.03, subdivision 15, is amended to read: 111.7    Subd. 15. Insolvency. "Insolvency" means: 111.8(a) For an insurer organized under sections 67A.01 to 67A.26, the inability to pay 111.9any uncontested debt as it becomes due or any other loss within 30 days after the due date 111.10specified in the first assessment notice issued pursuant to section . 111.11(b) For any other insurer, that it is unable to pay its debts or meet its obligations 111.12as they mature or that its assets do not exceed its liabilities plus the greater of (1) any 111.13capital and surplus required by law to be constantly maintained, or (2) its authorized and 111.14issued capital stock. For purposes of this subdivision, "assets" includes one-half of the 111.15maximum total assessment liability of the policyholders of the insurer, and "liabilities" 111.16includes reserves required by law. For policies issued on the basis of unlimited assessment 111.17liability, the maximum total liability, for purposes of determining solvency only, shall be 111.18deemed to be that amount that could be obtained if there were 100 percent collection of an 111.19assessment at the rate of ten mills per dollar of insurance written by it and in force. 111.20    Sec. 13. Minnesota Statutes 2008, section 60L.02, subdivision 3, is amended to read: 111.21    Subd. 3. Additional requirements. (a) In order to be eligible to be governed by 111.22sections 60L.01 to 60L.15, the insurer must meet the requirements specified under this 111.23subdivision. 111.24(b) The insurer shall: 111.25(1) have been in continuous operation for a minimum of five years; and 111.26(2) maintain a minimum claims-paying, financial strength, or equivalent rating from 111.27at least one nationally recognized statistical rating organization in one of the organization's 111.28three highest rating categories for the time period during which sections 60L.01 to 60L.15 111.29apply to the insurer. For purposes of this subdivision, the rating must be based on a 111.30review of the insurer by the nationally recognized statistical rating organization with the 111.31cooperation of the insurer; must not depend on a guarantee or other credit enhancement 111.32from another entity; and must not be modified or otherwise qualified to show dependence 111.33of the rating on the performance or a contractual obligation of, or the insurer's affiliation 111.34with, another insurer. 112.1(c) The insurer or an affiliate, as defined in section 60D.15, subdivision 2, of the 112.2insurer shall employ at least one individual as a professional investment manager for 112.3the insurer's investments whom the board of directors or trustees of the insurer finds 112.4is qualified on the basis of experience, education or training, competence, personal 112.5integrity, and who conducts professional investment management activities in accordance 112.6with the Code of Ethics and Standards of Professional Conduct of the Association for 112.7Investment Management and Research. For purposes of complying with this paragraph, 112.8an employee of an affiliate may only be used if they are responsible for managing the 112.9insurer's investments. 112.10(d) The board of directors of the insurer must annually adopt a resolution finding 112.11that the insurer or an affiliate, as defined in section 60D.15, subdivision 2, of the insurer 112.12has employed a professional investment manager for the insurer's investments with 112.13sufficient expertise and has sufficient other resources to implement and monitor the 112.14insurer's investment policies and strategies. 112.15(e) In the report required under section 60A.129 new text begin 60A.1291 new text end , subdivision 3 new text begin 12 new text end , 112.16paragraph (l), the insurer's independent auditor shall not have identified any significant 112.17deficiencies in the insurer's internal control structure related to investments during any of 112.18the five years immediately preceding the date on which sections 60L.01 to 60L.15 begin to 112.19apply to the insurer, and as long as sections 60L.01 to 60L.15 apply to the insurer. 112.20    Sec. 14. new text begin [61A.258] PRENEED INSURANCE PRODUCTS; MINIMUM new text end 112.21 new text begin MORTALITY STANDARDS FOR RESERVES AND NONFORFEITURE VALUES. new text end 112.22     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin For the purposes of this section, the following terms new text end 112.23 new text begin have the meanings given them: new text end 112.24 new text begin (1) "2001 CSO Mortality Table (2001 CSO)" means that mortality table, consisting new text end 112.25 new text begin of separate rates of mortality for male and female lives, developed by the American new text end 112.26 new text begin Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table new text end 112.27 new text begin developed by the Society of Actuaries Individual Life Insurance Valuation Mortality new text end 112.28 new text begin Task Force, and adopted by the National Association of Insurance Commissioners new text end 112.29 new text begin (NAIC) in December 2002. The 2001 CSO Mortality Table (2001 CSO) is included in new text end 112.30 new text begin the Proceedings of the NAIC (2nd Quarter 2002). Unless the context indicates otherwise, new text end 112.31 new text begin the "2001 CSO Mortality Table (2001 CSO)" includes both the ultimate form of that new text end 112.32 new text begin table and the select and ultimate form of that table and includes both the smoker and new text end 112.33 new text begin nonsmoker mortality tables and the composite mortality tables. It also includes both the new text end 112.34 new text begin age-nearest-birthday and age-last-birthday bases of the mortality tables; new text end 113.1 new text begin (2) "Ultimate 1980 CSO" means the Commissioners' 1980 Standard Ordinary Life new text end 113.2 new text begin Valuation Mortality Tables (1980 CSO) without ten-year selection factors, incorporated new text end 113.3 new text begin into the 1980 amendments to the NAIC Standard Valuation Law approved in December new text end 113.4 new text begin 1983; and new text end 113.5 new text begin (3) "preneed insurance" is any life insurance policy or certificate that is issued new text end 113.6 new text begin in combination with, in support of, with an assignment to, or as a guarantee for a new text end 113.7 new text begin prearrangement agreement for goods and services to be provided at the time of and new text end 113.8 new text begin immediately following the death of the insured. Goods and services may include, but new text end 113.9 new text begin are not limited to embalming, cremation, body preparation, viewing or visitation, coffin new text end 113.10 new text begin or urn, memorial stone, and transportation of the deceased. The status of the policy or new text end 113.11 new text begin contract as preneed insurance is determined at the time of issue in accordance with the new text end 113.12 new text begin policy form filing. new text end 113.13     new text begin Subd. 2. new text end new text begin Minimum valuation mortality standards. new text end new text begin For preneed insurance new text end 113.14 new text begin contracts, the minimum mortality standard for determining reserve liabilities and new text end 113.15 new text begin nonforfeiture values for both male and female insureds shall be the Ultimate 1980 CSO. new text end 113.16     new text begin Subd. 3. new text end new text begin Minimum valuation interest rate standards. new text end new text begin (a) The interest rates used new text end 113.17 new text begin in determining the minimum standard for valuation of preneed insurance shall be the new text end 113.18 new text begin calendar year statutory valuation interest rates as defined in section 61A.25. new text end 113.19 new text begin (b) The interest rates used in determining the minimum standard for nonforfeiture new text end 113.20 new text begin values for preneed insurance shall be the calendar year statutory nonforfeiture interest new text end 113.21 new text begin rates as defined in section 61A.24. new text end 113.22     new text begin Subd. 4. new text end new text begin Minimum valuation method standards. new text end new text begin (a) The method used in new text end 113.23 new text begin determining the standard for the minimum valuation of reserves of preneed insurance shall new text end 113.24 new text begin be the method defined in section 61A.25. new text end 113.25 new text begin (b) The method used in determining the standard for the minimum nonforfeiture new text end 113.26 new text begin values for preneed insurance shall be the method defined in section 61A.24. new text end 113.27 new text begin EFFECTIVE DATE; TRANSITION RULES. new text end new text begin (a) This section is effective January new text end 113.28 new text begin 1, 2009, and applies to preneed insurance policies and certificates issued on or after that new text end 113.29 new text begin date. new text end 113.30 new text begin (b) For preneed insurance policies issued on or after the effective date of this new text end 113.31 new text begin section and before January 1, 2012, the 2001 CSO may be used as the minimum standard new text end 113.32 new text begin for reserves and minimum standard for nonforfeiture benefits for both male and female new text end 113.33 new text begin insureds. new text end 113.34 new text begin (c) If an insurer elects to use the 2001 CSO as a minimum standard for any policy new text end 113.35 new text begin issued on or after the effective date of this section and before January 1, 2012, the insurer new text end 114.1 new text begin shall provide, as a part of the actuarial opinion memorandum submitted in support of new text end 114.2 new text begin the company's asset adequacy testing, an annual written notification to the domiciliary new text end 114.3 new text begin commissioner. The notification shall include: new text end 114.4 new text begin (1) a complete list of all preneed policy forms that use the 2001 CSO as a minimum new text end 114.5 new text begin standard; new text end 114.6 new text begin (2) a certification signed by the appointed actuary stating that the reserve new text end 114.7 new text begin methodology employed by the company in determining reserves for the preneed policies new text end 114.8 new text begin issued after the effective date and using the 2001 CSO as a minimum standard, develops new text end 114.9 new text begin adequate reserves (For the purposes of this certification, the preneed insurance policies new text end 114.10 new text begin using the 2001 CSO as a minimum standard cannot be aggregated with any other new text end 114.11 new text begin policies.); and new text end 114.12 new text begin (3) supporting information regarding the adequacy of reserves for preneed insurance new text end 114.13 new text begin policies issued after the effective date of this section and using the 2001 CSO as a new text end 114.14 new text begin minimum standard for reserves. new text end 114.15 new text begin (d) Preneed insurance policies issued on or after January 1, 2012, must use the new text end 114.16 new text begin Ultimate 1980 CSO in the calculation of minimum nonforfeiture values and minimum new text end 114.17 new text begin reserves. new text end 114.18    Sec. 15. Minnesota Statutes 2008, section 61B.19, subdivision 4, is amended to read: 114.19    Subd. 4. Limitation of benefits. The benefits for which the association may become 114.20liable shall in no event exceed the lesser of: 114.21(1) the contractual obligations for which the insurer is liable or would have been 114.22liable if it were not an impaired or insolvent insurer; or 114.23(2) subject to the limitation in clause (5), with respect to any one life, regardless of 114.24the number of policies or contracts: 114.25(i) $300,000 new text begin $500,000 new text end in life insurance death benefits, but not more than $100,000 new text begin new text end 114.26 new text begin $130,000 new text end in net cash surrender and net cash withdrawal values for life insurance; 114.27(ii) $300,000 new text begin $500,000 new text end in health insurance benefits, including any net cash surrender 114.28and net cash withdrawal values; 114.29(iii) $100,000 new text begin $250,000 new text end in annuity net cash surrender and net cash withdrawal values; 114.30(iv) $300,000 new text begin $410,000 new text end in present value of annuity benefits for structured settlement 114.31annuities or for annuities in regard to which periodic annuity benefits, for a period of not 114.32less than the annuitant's lifetime or for a period certain of not less than ten years, have 114.33begun to be paid, on or before the date of impairment or insolvency; or 114.34(3) subject to the limitations in clauses (5) and (6), with respect to each individual 114.35resident participating in a retirement plan, except a defined benefit plan, established under 115.1section 401, 403(b), or 457 of the Internal Revenue Code of 1986, as amended through 115.2December 31, 1992, covered by an unallocated annuity contract, or the beneficiaries 115.3of each such individual if deceased, in the aggregate, $100,000 new text begin $250,000 new text end in net cash 115.4surrender and net cash withdrawal values; 115.5(4) where no coverage limit has been specified for a covered policy or benefit, the 115.6coverage limit shall be $300,000 new text begin $500,000 new text end in present value; 115.7(5) in no event shall the association be liable to expend more than $300,000 new text begin new text end 115.8 new text begin $500,000 new text end in the aggregate with respect to any one life under clause (2), items (i), (ii), (iii), 115.9(iv), and clause (4), and any one individual under clause (3); 115.10(6) in no event shall the association be liable to expend more than $7,500,000 new text begin new text end 115.11 new text begin $10,000,000 new text end with respect to all unallocated annuities of a retirement plan, except a defined 115.12benefit plan, established under section 401, 403(b), or 457 of the Internal Revenue Code 115.13of 1986, as amended through December 31, 1992. If total claims from a plan exceed 115.14$7,500,000 new text begin $10,000,000 new text end , the $7,500,000 new text begin $10,000,000 new text end shall be prorated among the 115.15claimants; 115.16(7) for purposes of applying clause (2)(ii) and clause (5), with respect only to 115.17health insurance benefits, the term "any one life" applies to each individual covered by a 115.18health insurance policy; 115.19(8) where covered contractual obligations are equal to or less than the limits stated in 115.20this subdivision, the association will pay the difference between the covered contractual 115.21obligations and the amount credited by the estate of the insolvent or impaired insurer, if 115.22that amount has been determined or, if it has not, the covered contractual limit, subject 115.23to the association's right of subrogation; 115.24(9) where covered contractual obligations exceed the limits stated in this subdivision, 115.25the amount payable by the association will be determined as though the covered 115.26contractual obligations were equal to those limits. In making the determination, the estate 115.27shall be deemed to have credited the covered person the same amount as the estate would 115.28credit a covered person with contractual obligations equal to those limits; or 115.29(10) the following illustrates how the principles stated in clauses (8) and (9) apply. 115.30The example illustrated concerns hypothetical claims subject to the limit stated in clause 115.31(2)(iii). The principles stated in clauses (8) and (9), and illustrated in this clause, apply 115.32to claims subject to any limits stated in this subdivision. 115.33CONTRACTUAL OBLIGATIONS OF: 116.1 $50,000 116.2 116.3 Estate Guaranty Association 116.4 116.5 0% recovery from estate $ 0 $ 50,000 116.6 116.7 25% recovery from estate $ 12,500 $ 37,500 116.8 116.9 50% recovery from estate $ 25,000 $ 25,000 116.10 116.11 75% recovery from estate $ 37,500 $ 12,500 116.12 $100,000 116.13 116.14 Estate Guaranty Association 116.15 116.16 0% recovery from estate $ 0 $ 100,000 116.17 116.18 25% recovery from estate $ 25,000 $ 75,000 116.19 116.20 50% recovery from estate $ 50,000 $ 50,000 116.21 116.22 75% recovery from estate $ 75,000 $ 25,000 116.23 $200,000 116.24 116.25 Estate Guaranty Association 116.26 116.27 0% recovery from estate $ 0 $ 100,000 116.28 116.29 25% recovery from estate $ 50,000 $ 75,000 117.1 117.2 50% recovery from estate $ 100,000 $ 50,000 117.3 117.4 75% recovery from estate $ 150,000 $ 25,000 117.5For purposes of this subdivision, the commissioner shall determine the discount rate 117.6to be used in determining the present value of annuity benefits. 117.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 117.8 new text begin and applies to member insurers who are first determined to be impaired or insolvent on or new text end 117.9 new text begin after that date. Member insurers who are subject to an order of impairment in effect on the new text end 117.10 new text begin effective date but are not declared insolvent until after the effective date shall continue to new text end 117.11 new text begin be governed by the law in effect prior to the effective date. new text end 117.12    Sec. 16. Minnesota Statutes 2008, section 61B.28, subdivision 4, is amended to read: 117.13    Subd. 4. Prohibited sales practice. No person, including an insurer, agent, or 117.14affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the 117.15public, or cause directly or indirectly, to be made, published, disseminated, circulated, 117.16or placed before the public, in any newspaper, magazine, or other publication, or in the 117.17form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television 117.18station, or in any other way, an advertisement, announcement, or statement, written or 117.19oral, which uses the existence of the Minnesota Life and Health Insurance Guaranty 117.20Association for the purpose of sales, solicitation, or inducement to purchase any form of 117.21insurance covered by sections 61B.18 to 61B.32. The notice required by subdivision 8 117.22is not a violation of this subdivision new text begin nor is it a violation of this subdivision to explain new text end 117.23 new text begin verbally to an applicant or potential applicant the coverage provided by the Minnesota new text end 117.24 new text begin Life and Health Insurance Guaranty Association at any time during the application process new text end 117.25 new text begin or thereafter new text end . This subdivision does not apply to the Minnesota Life and Health Insurance 117.26Guaranty Association or an entity that does not sell or solicit insurance. A person violating 117.27this section is guilty of a misdemeanor. 117.28    Sec. 17. Minnesota Statutes 2008, section 61B.28, subdivision 8, is amended to read: 117.29    Subd. 8. Form. The form of notice referred to in subdivision 7, paragraph (a), 117.30is as follows: 117.31".................... 117.32.................... 117.33.................... 118.1(insert name, current address, and 118.2telephone number of insurer) 118.3NOTICE CONCERNING POLICYHOLDER RIGHTS IN AN 118.4INSOLVENCY UNDER THE MINNESOTA LIFE AND HEALTH 118.5INSURANCE GUARANTY ASSOCIATION LAW 118.6If the insurer that issued your life, annuity, or health insurance policy becomes 118.7impaired or insolvent, you are entitled to compensation for your policy from the assets of 118.8that insurer. The amount you recover will depend on the financial condition of the insurer. 118.9In addition, residents of Minnesota who purchase life insurance, annuities, or health 118.10insurance from insurance companies authorized to do business in Minnesota are protected, 118.11SUBJECT TO LIMITS AND EXCLUSIONS, in the event the insurer becomes financially 118.12impaired or insolvent. This protection is provided by the Minnesota Life and Health 118.13Insurance Guaranty Association. 118.14Minnesota Life and Health Insurance Guaranty Association 118.15(insert current 118.16address and telephone number) 118.17The maximum amount the guaranty association will pay for all policies issued on 118.18one life by the same insurer is limited to $300,000 new text begin $500,000 new text end . Subject to this $300,000 new text begin new text end 118.19 new text begin $500,000 new text end limit, the guaranty association will pay up to $300,000 new text begin $500,000 new text end in life 118.20insurance death benefits, $100,000 new text begin $130,000 new text end in net cash surrender and net cash withdrawal 118.21values for life insurance, $300,000 new text begin $500,000 new text end in health insurance benefits, including any 118.22net cash surrender and net cash withdrawal values, $100,000 new text begin $250,000 new text end in annuity net 118.23cash surrender and net cash withdrawal values, $300,000 new text begin $410,000 new text end in present value of 118.24annuity benefits for annuities which are part of a structured settlement or for annuities 118.25in regard to which periodic annuity benefits, for a period of not less than the annuitant's 118.26lifetime or for a period certain of not less than ten years, have begun to be paid on or 118.27before the date of impairment or insolvency, or if no coverage limit has been specified 118.28for a covered policy or benefit, the coverage limit shall be $300,000 new text begin $500,000 new text end in present 118.29value. Unallocated annuity contracts issued to retirement plans, other than defined benefit 118.30plans, established under section 401, 403(b), or 457 of the Internal Revenue Code of 118.311986, as amended through December 31, 1992, are covered up to $100,000 new text begin $250,000 new text end in 118.32net cash surrender and net cash withdrawal values, for Minnesota residents covered by 118.33the plan provided, however, that the association shall not be responsible for more than 118.34$7,500,000 new text begin $10,000,000 new text end in claims from all Minnesota residents covered by the plan. If 118.35total claims exceed $7,500,000 new text begin $10,000,000 new text end , the $7,500,000 new text begin $10,000,000 new text end shall be prorated 118.36among all claimants. These are the maximum claim amounts. Coverage by the guaranty 118.37association is also subject to other substantial limitations and exclusions and requires 118.38continued residency in Minnesota. If your claim exceeds the guaranty association's limits, 119.1you may still recover a part or all of that amount from the proceeds of the liquidation of 119.2the insolvent insurer, if any exist. Funds to pay claims may not be immediately available. 119.3The guaranty association assesses insurers licensed to sell life and health insurance in 119.4Minnesota after the insolvency occurs. Claims are paid from this assessment. 119.5THE COVERAGE PROVIDED BY THE GUARANTY ASSOCIATION IS NOT 119.6A SUBSTITUTE FOR USING CARE IN SELECTING INSURANCE COMPANIES 119.7THAT ARE WELL MANAGED AND FINANCIALLY STABLE. IN SELECTING AN 119.8INSURANCE COMPANY OR POLICY, YOU SHOULD NOT RELY ON COVERAGE 119.9BY THE GUARANTY ASSOCIATION. 119.10THIS NOTICE IS REQUIRED BY MINNESOTA STATE LAW TO ADVISE 119.11POLICYHOLDERS OF LIFE, ANNUITY, OR HEALTH INSURANCE POLICIES 119.12OF THEIR RIGHTS IN THE EVENT THEIR INSURANCE CARRIER BECOMES 119.13FINANCIALLY INSOLVENT. THIS NOTICE IN NO WAY IMPLIES THAT THE 119.14COMPANY CURRENTLY HAS ANY TYPE OF FINANCIAL PROBLEMS. ALL LIFE, 119.15ANNUITY, AND HEALTH INSURANCE POLICIES ARE REQUIRED TO PROVIDE 119.16THIS NOTICE." 119.17Additional language may be added to the notice if approved by the commissioner 119.18prior to its use in the form. This section does not apply to fraternal benefit societies 119.19regulated under chapter 64B. 119.20    Sec. 18. Minnesota Statutes 2008, section 67A.01, is amended to read: 119.2167A.01 NUMBER OF MEMBERS REQUIRED, PROPERTY AND 119.22TERRITORY. 119.23     new text begin Subdivision 1. new text end new text begin Number of members. new text end (a) It shall be lawful for any number of 119.24persons, not less than 25, residing in adjoining townships new text begin counties new text end in this state, who shall 119.25collectively own property worth at least $50,000, to form themselves into a corporation 119.26for mutual insurance against loss or damage by the perils listed in section 67A.13. 119.27(b) Except as otherwise provided in this section, the company shall operate in no 119.28more than 150 adjoining townships in the aggregate at the same time. The company may, 119.29if approval has been granted by the commissioner, operate in more than 150 adjoining 119.30townships in the aggregate at the same time, subject to a maximum of 300 townships. 119.31If the company confines its operations to one county it may transact business in that 119.32county by so providing in its certificate of incorporation. In case of merger of two or 119.33more companies having contiguous territories, the surviving company in the merger may 119.34transact business in the entire territory of the merged companies, but the territory of the 119.35surviving company in the merger must not be larger than 300 townships. 120.1     new text begin Subd. 2. new text end new text begin Authorized territory. new text end new text begin (a) A township mutual fire insurance company may new text end 120.2 new text begin be authorized to write business in up to nine adjoining counties in the aggregate at the new text end 120.3 new text begin same time. If policyholder surplus is at least $500,000 as reported in the company's last new text end 120.4 new text begin annual financial statement filed with the commissioner, the company may, if approval has new text end 120.5 new text begin been granted by the commissioner, be authorized to write business in ten or more counties new text end 120.6 new text begin in the aggregate at the same time, subject to a maximum of 20 adjoining counties, in new text end 120.7 new text begin accordance with the following schedule: new text end 120.8 120.9 new text begin Number of new text end new text begin Counties new text end new text begin Surplus new text end new text begin Requirement new text end 120.10 new text begin 10 new text end new text begin $500,000 new text end 120.11 new text begin 11 new text end new text begin 600,000 new text end 120.12 new text begin 12 new text end new text begin 700,000 new text end 120.13 new text begin 13 new text end new text begin 800,000 new text end 120.14 new text begin 14 new text end new text begin 900,000 new text end 120.15 new text begin 15 new text end new text begin 1,000,000 new text end 120.16 new text begin 16 new text end new text begin 1,100,000 new text end 120.17 new text begin 17 new text end new text begin 1,200,000 new text end 120.18 new text begin 18 new text end new text begin 1,300,000 new text end 120.19 new text begin 19 new text end new text begin 1,400,000 new text end 120.20 new text begin 20 new text end new text begin 1,500,000 new text end 120.21 new text begin (b) In the case of a merger of two or more companies having contiguous territories, new text end 120.22 new text begin the surviving company in the merger may transact business in the entire territory of the new text end 120.23 new text begin merged companies; however, the territory of the surviving company in the merger may not new text end 120.24 new text begin be larger than 20 counties. new text end 120.25 new text begin (c) A township mutual fire insurance company may write new and renewal insurance new text end 120.26 new text begin on property in cities within the company's authorized territory having a population less new text end 120.27 new text begin than 25,000. A township mutual may continue to write new and renewal insurance once new text end 120.28 new text begin the population increases to 25,000 or greater provided that amended and restated articles new text end 120.29 new text begin are filed with the commissioner along with a certification that such city's population has new text end 120.30 new text begin increased to 25,000 or greater. new text end 120.31 new text begin (d) A township mutual fire insurance company may write new and renewal insurance new text end 120.32 new text begin on property in cities within the company's authorized territory with a population of 25,000 new text end 120.33 new text begin or greater, but less than 150,000, if approval has been granted by the commissioner. new text end 121.1 new text begin No township mutual fire insurance company shall insure any property in cities with a new text end 121.2 new text begin population of 150,000 or greater. new text end 121.3 new text begin (e) If a township mutual fire insurance company provides evidence to the new text end 121.4 new text begin commissioner that the company had insurance in force on December 31, 2007, in a city new text end 121.5 new text begin within the company's authorized territory with a population of 25,000 or greater, but less new text end 121.6 new text begin than 150,000, the company may write new and renewal insurance on property in that city new text end 121.7 new text begin provided that the company files amended and restated articles by July 31, 2010, naming new text end 121.8 new text begin that city. new text end 121.9    Sec. 19. Minnesota Statutes 2008, section 67A.06, is amended to read: 121.1067A.06 POWERS OF CORPORATION. 121.11Every corporation formed under the provisions of sections 67A.01 to 67A.26, 121.12shall have power: 121.13(1) to have succession by its corporate name for the time stated in its certificate of 121.14incorporation; 121.15(2) to sue and be sued in any court; 121.16(3) to have and use a common seal and alter the same at pleasure; 121.17(4) to acquire, by purchase or otherwise, and to hold, enjoy, improve, lease, 121.18encumber, and convey all real and personal property necessary for the purpose of its 121.19organization, subject to such limitations as may be imposed by law or by its articles of 121.20incorporation; 121.21(5) to elect or appoint in such manner as it may determine all necessary or proper 121.22officers, agents, boards, and committees, fix their compensation, and define their powers 121.23and duties; 121.24(6) to make and amend consistently with law bylaws providing for the management 121.25of its property and the regulation and government of its affairs; 121.26(7) to wind up and liquidate its business in the manner provided by chapter 60B; and 121.27(8) to indemnify certain persons against expenses and liabilities as provided in 121.28section 302A.521. In applying section 302A.521 for this purpose, the term "members" 121.29shall be substituted for the terms "shareholders" and "stockholders." new text begin ; and new text end 121.30 new text begin (9) to eliminate or limit a director's personal liability to the company or its members new text end 121.31 new text begin for monetary damages for breach of fiduciary duty as a director. A company shall not new text end 121.32 new text begin eliminate or limit the liability of a director: new text end 121.33 new text begin (i) for breach of loyalty to the company or its members; new text end 121.34 new text begin (ii) for acts or omissions made in bad faith or with intentional misconduct or new text end 121.35 new text begin knowing violation of law; new text end 122.1 new text begin (iii) for transactions from which the director derived an improper personal benefit; or new text end 122.2 new text begin (iv) for acts or omissions occurring before the date that the provisions in the articles new text end 122.3 new text begin eliminating or limiting liability become effective. new text end 122.4    Sec. 20. Minnesota Statutes 2008, section 67A.07, is amended to read: 122.567A.07 PRINCIPAL OFFICE. 122.6The principal office of a township mutual fire insurance company shall be located in 122.7a township or in a city in a township new text begin county new text end in which the company is authorized to do 122.8business. 122.9    Sec. 21. Minnesota Statutes 2008, section 67A.14, subdivision 1, is amended to read: 122.10    Subdivision 1. Kinds of property new text begin ; property outside authorized territory new text end . (a) 122.11Township mutual fire insurance companies may insure qualified property. Qualified 122.12property means dwellings, household goods, appurtenant structures, farm buildings, farm 122.13personal property, churches, church personal property, county fair buildings, community 122.14and township meeting halls and their usual contents. 122.15(b) Township mutual fire insurance companies may extend coverage to include 122.16an insured's secondary property if the township mutual fire insurance company covers 122.17qualified property belonging to the insured. Secondary property means any real or 122.18personal property that is not considered qualified property for a township mutual fire 122.19insurance company to cover under this chapter. The maximum amount of coverage that a 122.20township mutual fire insurance company may write for secondary property is 25 percent of 122.21the total limit of liability of the policy issued to an insured covering the qualified property. 122.22 new text begin (c) A township mutual fire insurance company may insure any real or personal new text end 122.23 new text begin property, including qualified or secondary property, subject to the limitations in new text end 122.24 new text begin subdivision 1, paragraph (b), located outside the limits of the territory in which the new text end 122.25 new text begin company is authorized by its certificate or articles of incorporation to transact business, if new text end 122.26 new text begin the company is already covering qualified property belonging to the insured, inside the new text end 122.27 new text begin limits of the company's territory. new text end 122.28 new text begin (d) A township mutual fire insurance company may insure property temporarily new text end 122.29 new text begin outside of the authorized territory of the township mutual fire insurance company. new text end 122.30    Sec. 22. Minnesota Statutes 2008, section 67A.14, subdivision 7, is amended to read: 122.31    Subd. 7. Amount of insurable risk. No township mutual new text begin fire new text end insurance company 122.32shall insure or reinsure a single risk or hazard in a larger sum than the greater of $3,000, or 122.33one tenth of its net assets plus two tenths of a mill of its insurance in force; provided that 123.1no portion of any such risk or hazard which shall have been reinsured, as authorized by 123.2the laws of this state, shall be included in determining the limitation of risk prescribed 123.3by this subdivision. 123.4    Sec. 23. new text begin [67A.175] SURPLUS REQUIREMENTS. new text end 123.5     new text begin Subdivision 1. new text end new text begin Minimum. new text end new text begin Township mutual fire insurance companies shall maintain new text end 123.6 new text begin a minimum policyholders' surplus of $300,000 at all times. new text end 123.7     new text begin Subd. 2. new text end new text begin Corrective action plan; filing. new text end new text begin A township mutual fire insurance company new text end 123.8 new text begin that falls below the $300,000 minimum surplus requirement must file a corrective action new text end 123.9 new text begin plan with the commissioner. The plan shall state how the company will correct its surplus new text end 123.10 new text begin deficiency. The plan must be submitted within 45 days of the company falling below the new text end 123.11 new text begin minimum surplus level. new text end 123.12     new text begin Subd. 3. new text end new text begin Corrective action plan; commissioner's notification. new text end new text begin Within 30 days new text end 123.13 new text begin after the submission by a township mutual fire insurance company of a corrective action new text end 123.14 new text begin plan, the commissioner shall notify the insurer whether the plan may be implemented or new text end 123.15 new text begin is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines new text end 123.16 new text begin the plan is unsatisfactory, the notification to the company must set forth the reasons for the new text end 123.17 new text begin determination, and may set forth proposed revisions that will render the plan satisfactory new text end 123.18 new text begin in the judgment of the commissioner. Upon notification from the commissioner, the new text end 123.19 new text begin insurer shall prepare a revised corrective action plan that may incorporate by reference new text end 123.20 new text begin any revisions proposed by the commissioner, and shall submit the revised plan to the new text end 123.21 new text begin commissioner within 45 days. new text end 123.22    Sec. 24. Minnesota Statutes 2008, section 67A.18, subdivision 1, is amended to read: 123.23    Subdivision 1. By member. Any member may terminate membership in the 123.24company by giving written notice or returning the member's policy to the secretary and 123.25paying the withdrawing member's share of all existing claims. 123.26    Sec. 25. new text begin REPEALER. new text end 123.27     new text begin Subdivision 1. new text end new text begin Annual audits. new text end new text begin Minnesota Statutes 2008, section 60A.129, new text end new text begin is new text end 123.28 new text begin repealed. new text end 123.29     new text begin Subd. 2. new text end new text begin Township mutual insured properties, joint or partial risks, and new text end 123.30 new text begin assessments. new text end new text begin Minnesota Statutes 2008, sections 67A.14, subdivision 5; 67A.17; and new text end 123.31 new text begin 67A.19, new text end new text begin are repealed. new text end 124.1     new text begin Subd. 3. new text end new text begin Banking procedures; real estate tax records. new text end new text begin Minnesota Rules, part new text end 124.2 new text begin 2675.2180, new text end new text begin is repealed. new text end 124.3     new text begin Subd. 4. new text end new text begin Debt prorating companies. new text end new text begin Minnesota Rules, parts 2675.7100; new text end 124.4 new text begin 2675.7110; 2675.7120; 2675.7130; and 2675.7140, new text end new text begin are repealed. new text end 124.5     new text begin Subd. 5. new text end new text begin Guaranty association; inflation indexing. new text end new text begin Minnesota Statutes 2008, new text end 124.6 new text begin section 61B.19, subdivision 6, new text end new text begin is repealed. new text end 124.7ARTICLE 4 124.8DEBT MANAGEMENT SERVICES 124.9    Section 1. Minnesota Statutes 2008, section 45.011, subdivision 1, is amended to read: 124.10    Subdivision 1. Scope. As used in chapters 45 to 83, 155A, 332, 332A, new text begin 332B, new text end 124.11345, and 359, and sections 325D.30 to 325D.42, 326B.802 to 326B.885, and 386.61 to 124.12386.78 , unless the context indicates otherwise, the terms defined in this section have 124.13the meanings given them. 124.14    Sec. 2. Minnesota Statutes 2008, section 46.04, subdivision 1, is amended to read: 124.15    Subdivision 1. General. The commissioner of commerce, referred to in chapters 46 124.16to 59A, and chapter 332A, new text begin and 332B new text end as the commissioner, is vested with all the powers, 124.17authority, and privileges which, prior to the enactment of Laws 1909, chapter 201, were 124.18conferred by law upon the public examiner, and shall take over all duties in relation to 124.19state banks, savings banks, trust companies, savings associations, and other financial 124.20institutions within the state which, prior to the enactment of chapter 201, were imposed 124.21upon the public examiner. The commissioner of commerce shall exercise a constant 124.22supervision, either personally or through the examiners herein provided for, over the 124.23books and affairs of all state banks, savings banks, trust companies, savings associations, 124.24credit unions, industrial loan and thrift companies, and other financial institutions doing 124.25business within this state; and shall, through examiners, examine each financial institution 124.26at least once every 24 calendar months. In satisfying this examination requirement, the 124.27commissioner may accept reports of examination prepared by a federal agency having 124.28comparable supervisory powers and examination procedures. With the exception of 124.29industrial loan and thrift companies which do not have deposit liabilities and licensed 124.30regulated lenders, it shall be the principal purpose of these examinations to inspect and 124.31verify the assets and liabilities of each and so far investigate the character and value of 124.32the assets of each institution as to determine with reasonable certainty that the values are 124.33correctly carried on its books. Assets and liabilities shall be verified in accordance with 124.34methods of procedure which the commissioner may determine to be adequate to carry out 125.1the intentions of this section. It shall be the further purpose of these examinations to 125.2assess the adequacy of capital protection and the capacity of the institution to meet usual 125.3and reasonably anticipated deposit withdrawals and other cash commitments without 125.4resorting to excessive borrowing or sale of assets at a significant loss, and to investigate 125.5each institution's compliance with applicable laws and rules. Based on the examination 125.6findings, the commissioner shall make a determination as to whether the institution 125.7is being operated in a safe and sound manner. None of the above provisions limits the 125.8commissioner in making additional examinations as deemed necessary or advisable. The 125.9commissioner shall investigate the methods of operation and conduct of these institutions 125.10and their systems of accounting, to ascertain whether these methods and systems are 125.11in accordance with law and sound banking principles. The commissioner may make 125.12requirements as to records as deemed necessary to facilitate the carrying out of the 125.13commissioner's duties and to properly protect the public interest. The commissioner may 125.14examine, or cause to be examined by these examiners, on oath, any officer, director, 125.15trustee, owner, agent, clerk, customer, or depositor of any financial institution touching 125.16the affairs and business thereof, and may issue, or cause to be issued by the examiners, 125.17subpoenas, and administer, or cause to be administered by the examiners, oaths. In 125.18case of any refusal to obey any subpoena issued under the commissioner's direction, 125.19the refusal may at once be reported to the district court of the district in which the bank 125.20or other financial institution is located, and this court shall enforce obedience to these 125.21subpoenas in the manner provided by law for enforcing obedience to subpoenas of the 125.22court. In all matters relating to official duties, the commissioner of commerce has the 125.23power possessed by courts of law to issue subpoenas and cause them to be served and 125.24enforced, and all officers, directors, trustees, and employees of state banks, savings banks, 125.25trust companies, savings associations, and other financial institutions within the state, 125.26and all persons having dealings with or knowledge of the affairs or methods of these 125.27institutions, shall afford reasonable facilities for these examinations, make returns and 125.28reports to the commissioner of commerce as the commissioner may require; attend and 125.29answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books, 125.30accounts, documents, and property as the commissioner may desire to inspect, and in all 125.31things aid the commissioner in the performance of duties. 125.32    Sec. 3. Minnesota Statutes 2008, section 46.05, is amended to read: 125.3346.05 SUPERVISION OVER FINANCIAL INSTITUTIONS. 125.34    Every state bank, savings bank, trust company, savings association, debt management 125.35services provider, new text begin debt settlement services provider, new text end and other financial institutions shall 126.1be at all times under the supervision and subject to the control of the commissioner 126.2of commerce. If, and whenever in the performance of duties, the commissioner finds 126.3it necessary to make a special investigation of any financial institution under the 126.4commissioner's supervision, and other than a complete examination, the commissioner 126.5shall make a charge therefor to include only the necessary costs thereof. Such a fee shall 126.6be payable to the commissioner on the commissioner's making a request for payment. 126.7    Sec. 4. Minnesota Statutes 2008, section 46.131, subdivision 2, is amended to read: 126.8    Subd. 2. Assessment authority. Each bank, trust company, savings bank, savings 126.9association, regulated lender, industrial loan and thrift company, credit union, motor 126.10vehicle sales finance company, debt management services provider new text begin , debt settlement new text end 126.11 new text begin services provider, new text end and insurance premium finance company organized under the laws of 126.12this state or required to be administered by the commissioner of commerce shall pay 126.13into the state treasury its proportionate share of the cost of maintaining the Department 126.14of Commerce. 126.15    Sec. 5. Minnesota Statutes 2008, section 325E.311, subdivision 6, is amended to read: 126.16    Subd. 6. Telephone solicitation. "Telephone solicitation" means any voice 126.17communication over a telephone line for the purpose of encouraging the purchase or 126.18rental of, or investment in, property, goods, or services, whether the communication is 126.19made by a live operator, through the use of an automatic dialing-announcing device as 126.20defined in section 325E.26, subdivision 2, or by other means. Telephone solicitation 126.21does not include communications: 126.22    (1) to any residential subscriber with that subscriber's prior express invitation or 126.23permission; or 126.24    (2) by or on behalf of any person or entity with whom a residential subscriber has a 126.25prior or current business or personal relationship. 126.26Telephone solicitation also does not include communications if the caller is identified by a 126.27caller identification service and the call is: 126.28    (i) by or on behalf of an organization that is identified as a nonprofit organization 126.29under state or federal law, unless the organization is a debt management services provider 126.30defined in section 332A.02 new text begin or a debt settlement services provider defined in section new text end 126.31 new text begin 332B.02 new text end ; 126.32    (ii) by a person soliciting without the intent to complete, and who does not in 126.33fact complete, the sales presentation during the call, but who will complete the sales 127.1presentation at a later face-to-face meeting between the solicitor who makes the call 127.2and the prospective purchaser; or 127.3    (iii) by a political party as defined under section 200.02, subdivision 6. 127.4    Sec. 6. Minnesota Statutes 2008, section 332A.02, is amended by adding a subdivision 127.5to read: 127.6     new text begin Subd. 2a. new text end new text begin Advertise. new text end new text begin "Advertise" means to solicit business through any means or new text end 127.7 new text begin medium. new text end 127.8    Sec. 7. Minnesota Statutes 2008, section 332A.02, subdivision 5, is amended to read: 127.9    Subd. 5. Controlling or affiliated party. "Controlling or affiliated party" means 127.10any person new text begin or entity that controls or is controlled, new text end directly or indirectly controlling, 127.11controlled by, or new text begin is new text end under common control with another person. new text begin Controlling or affiliated new text end 127.12 new text begin party includes, but is not limited to, employees, officers, independent contractors, new text end 127.13 new text begin corporations, partnerships, and limited liability corporations. new text end 127.14    Sec. 8. Minnesota Statutes 2008, section 332A.02, is amended by adding a subdivision 127.15to read: 127.16     new text begin Subd. 5a. new text end new text begin Creditor. new text end new text begin "Creditor" means any party: new text end 127.17 new text begin (1) named by the debtor as a creditor in the debt management services plan or debt new text end 127.18 new text begin management services agreement; new text end 127.19 new text begin (2) that acquires or holds the debt; or new text end 127.20 new text begin (3) to whom interactions with the debt management services is assigned in relation new text end 127.21 new text begin to the debt listed in the debt management services plan or debt management services new text end 127.22 new text begin agreement. new text end 127.23    Sec. 9. Minnesota Statutes 2008, section 332A.02, subdivision 8, is amended to read: 127.24    Subd. 8. Debt management services provider. "Debt management services 127.25provider" means any person offering or providing debt management services to a debtor 127.26domiciled in this state, regardless of whether or not a fee is charged for the services and 127.27regardless of whether the person maintains a physical presence in the state. This term 127.28 new text begin includes any person to whom debt management services are delegated, and new text end does not 127.29include services performed by the following when engaged in the regular course of their 127.30respective businesses and professions: 127.31    (1) attorneys at law, escrow agents, accountants, broker-dealers in securities; 128.1    (2) state or national banks, new text begin credit unions, new text end trust companies, savings associations, 128.2title insurance companies, insurance companies, and all other lending institutions duly 128.3authorized to transact business in Minnesota, provided no fee is charged for the service; 128.4    (3) persons who, as employees on a regular salary or wage of an employer not 128.5engaged in the business of debt management, perform credit services for their employer; 128.6    (4) public officers acting in their official capacities and persons acting as a debt 128.7management services provider pursuant to court order; 128.8    (5) any person while performing services incidental to the dissolution, winding up, 128.9or liquidation of a partnership, corporation, or other business enterprise; 128.10    (6) the state, its political subdivisions, public agencies, and their employees; 128.11    (7) credit unions and collection agencies, provided no fee is charged for the service 128.12 new text begin that the services are provided to a creditor new text end ; 128.13    (8) "qualified organizations" designated as representative payees for purposes of the 128.14Social Security and Supplemental Security Income Representative Payee System and the 128.15federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508; 128.16    (9) accelerated mortgage payment providers. "Accelerated mortgage payment 128.17providers" are persons who, after satisfying the requirements of sections 332.30 to 128.18332.303 , receive funds to make mortgage payments to a lender or lenders, on behalf 128.19of mortgagors, in order to exceed regularly scheduled minimum payment obligations 128.20under the terms of the indebtedness. The term does not include: (i) persons or entities 128.21described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and 128.22thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to 128.23make loans under section 47.20, subdivision 1. For purposes of this clause and sections 128.24332.30 to 332.303, "lender" means the original lender or that lender's assignee, whichever 128.25is the current mortgage holder; 128.26    (10) trustees, guardians, and conservators; and 128.27    (11) debt settlement new text begin services new text end providers. 128.28    Sec. 10. Minnesota Statutes 2008, section 332A.02, subdivision 9, is amended to read: 128.29    Subd. 9. Debt management services. "Debt management services" means the 128.30provision of any one or more of the following services in connection with debt incurred 128.31primarily for personal, family, or household services: 128.32    (1) managing the financial affairs of an individual by distributing income or money 128.33to the individual's creditors; 128.34    (2) receiving funds for the purpose of distributing the funds among creditors in 128.35payment or partial payment of obligations of a debtor; or 129.1    (3) adjusting, prorating, pooling, or liquidating the indebtedness of a debtor new text begin whereby new text end 129.2 new text begin a debt management services provider assists in managing the financial affairs of a debtor new text end 129.3 new text begin by distributing periodic payments to the debtor's creditors from funds that the debt new text end 129.4 new text begin management services provider receives from the debtor and where the primary purpose of new text end 129.5 new text begin the services is to effect full repayment of debt incurred primarily for personal, family, or new text end 129.6 new text begin household services new text end . 129.7Any person so engaged or holding out as so engaged is deemed to be engaged in the 129.8provision of debt management services regardless of whether or not a fee is charged for 129.9such services. 129.10    Sec. 11. Minnesota Statutes 2008, section 332A.02, subdivision 10, is amended to read: 129.11    Subd. 10. Debtor. "Debtor" means the person for whom the debt prorating service 129.12is new text begin management services are new text end performed. 129.13    Sec. 12. Minnesota Statutes 2008, section 332A.02, subdivision 13, is amended to read: 129.14    Subd. 13. Debt settlement new text begin services new text end provider. "Debt settlement new text begin services new text end provider" 129.15means any person engaging in or holding out as engaging in the business of negotiating, 129.16adjusting, or settling debt incurred primarily for personal, family, or household purposes 129.17without holding or receiving the debtor's funds or personal property and without paying 129.18the debtor's funds to, or distributing the debtor's property among, creditors new text begin has the new text end 129.19 new text begin meaning given in section 332B.02, subdivision 11 new text end . The term shall not include persons 129.20listed in subdivision 8, clauses (1) to (10). 129.21    Sec. 13. Minnesota Statutes 2008, section 332A.04, subdivision 6, is amended to read: 129.22    Subd. 6. Right of action on bond. If the registrant has failed to account to a debtor 129.23or distribute to the debtor's creditors the amounts required by this chapter and new text begin , or has new text end 129.24 new text begin failed to perform any of the services promised in new text end the debt management services agreement 129.25between the debtor and registrant, new text begin the registrant is in default. new text end The debtor or the debtor's 129.26legal representative or receiver, the commissioner, or the attorney general, shall have, in 129.27addition to all other legal remedies, a right of action in the name of the debtor on the bond 129.28or the security given under this section, for loss suffered by the debtor, not exceeding the 129.29face amount of the bond or security, and without the necessity of joining the registrant 129.30in the suit or action new text begin based on the default new text end . 129.31    Sec. 14. Minnesota Statutes 2008, section 332A.08, is amended to read: 129.32332A.08 DENIAL OF REGISTRATION. 130.1    The commissioner, with notice to the applicant by certified mail sent to the address 130.2listed on the application, may deny an application for a registration upon finding that 130.3the applicant: 130.4    (1) has submitted an application required under section 332A.04 that contains 130.5incorrect, misleading, incomplete, or materially untrue information. An application is 130.6incomplete if it does not include all the information required in section 332A.04; 130.7    (2) has failed to pay any fee or pay or maintain any bond required by this chapter, 130.8or failed to comply with any order, decision, or finding of the commissioner made under 130.9and within the authority of this chapter; 130.10    (3) has violated any provision of this chapter or any rule or direction lawfully made 130.11by the commissioner under and within the authority of this chapter; 130.12    (4) or any controlling or affiliated party has ever been convicted of a crime or found 130.13civilly liable for an offense involving moral turpitude, including forgery, embezzlement, 130.14obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any 130.15other similar offense or violation, or any violation of a federal or state law or regulation 130.16in connection with activities relating to the rendition of debt management services or 130.17any consumer fraud, false advertising, deceptive trade practices, or similar consumer 130.18protection law; 130.19    (5) has had a registration or license previously revoked or suspended in this state or 130.20any other state or the applicant or licensee has been permanently or temporarily enjoined 130.21by any court of competent jurisdiction from engaging in or continuing any conduct or 130.22practice involving any aspect of the debt management services provider business; or 130.23any controlling or affiliated party has been an officer, director, manager, or shareholder 130.24owning more than a ten percent interest in a debt management services provider whose 130.25registration has previously been revoked or suspended in this state or any other state, or 130.26who has been permanently or temporarily enjoined by any court of competent jurisdiction 130.27from engaging in or continuing any conduct or practice involving any aspect of the debt 130.28management services provider business; 130.29    (6) has made any false statement or representation to the commissioner; 130.30    (7) is insolvent; 130.31    (8) refuses to fully comply with an investigation or examination of the debt 130.32management services provider by the commissioner; 130.33    (9) has improperly withheld, misappropriated, or converted any money or properties 130.34received in the course of doing business; 130.35    (10) has failed to have a trust account with an actual cash balance equal to or greater 130.36than the sum of the escrow balances of each debtor's account; 131.1    (11) has defaulted in making payments to creditors on behalf of debtors as required 131.2by agreements between the provider and debtor; or 131.3    (12) has used fraudulent, coercive, or dishonest practices, or demonstrated 131.4incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere new text begin ; or new text end 131.5 new text begin (13) has been shown to have engaged in a pattern of failing to perform the services new text end 131.6 new text begin promised new text end . 131.7    Sec. 15. Minnesota Statutes 2008, section 332A.10, is amended to read: 131.8332A.10 WRITTEN DEBT MANAGEMENT SERVICES AGREEMENT. 131.9    Subdivision 1. Written agreement required. new text begin (a) new text end A debt management services 131.10provider may not perform any debt management services or receive any money related 131.11to a debt management services plan until the provider has obtained a debt management 131.12services agreement that contains all terms of the agreement between the debt management 131.13services provider and the debtor. 131.14 new text begin (b) new text end A debt management services agreement must new text begin : new text end 131.15 new text begin (1) new text end be in writing, dated, and signed by the debt management services provider and 131.16the debtor new text begin ; new text end 131.17 new text begin (2) conspicuously indicate whether or not the debt management services provider new text end 131.18 new text begin is registered with the Minnesota Department of Commerce and include any registration new text end 131.19 new text begin number; and new text end 131.20 new text begin (3) be written in the debtor's primary language if the debt management services new text end 131.21 new text begin provider advertised in that language new text end . 131.22 new text begin (c) new text end The registrant must furnish the debtor with a copy of the signed contract upon 131.23execution. 131.24    Subd. 2. Actions prior to written agreement. No person may provide debt 131.25management services for a debtor new text begin or execute a debt management services agreement new text end 131.26unless the person first has: 131.27    (1) provided the debtor individualized counseling and educational information 131.28that, at a minimum, addresses managing household finances, managing credit and debt, 131.29budgeting, and personal savings strategies; 131.30    (2) prepared in writing and provided to the debtor, in a form that the debtor may 131.31keep, an individualized financial analysis and a proposed debt management services 131.32plan listing the debtor's known debts with specific recommendations regarding actions 131.33the debtor should take to reduce or eliminate the amount of the debts, including written 131.34disclosure that debt management services are not suitable for all debtors and that there are 131.35other ways, including bankruptcy, to deal with indebtedness; 132.1    (3) made a determination supported by an individualized financial analysis that the 132.2debtor can reasonably meet the requirements of the proposed debt management services 132.3plan and that there is a net tangible benefit to the debtor of entering into the proposed debt 132.4management services plan; and 132.5    (4) prepared, in a form the debtor may keep, a written list identifying all known 132.6creditors of the debtor that the provider reasonably expects to participate in the plan 132.7and the creditors, including secured creditors, that the provider reasonably expects not 132.8to participate new text begin ; and new text end 132.9 new text begin (5) disclosed, in addition to the written disclosure on the agreement required under new text end 132.10 new text begin subdivision 1, whether or not the debt management services provider is registered with the new text end 132.11 new text begin Minnesota Department of Commerce and any registration number new text end . 132.12    Subd. 3. Required terms. (a) Each debt management services agreement must 132.13contain the following terms, which must be disclosed prominently and clearly in bold print 132.14on the front page of the agreement, segregated by bold lines from all other information on 132.15the page: 132.16    (1) the new text begin origination new text end fee amount to be paid by the debtor and whether new text begin all or a portion new text end 132.17 new text begin of new text end the initial new text begin origination new text end fee amount is refundable or nonrefundable; 132.18    (2) the monthly fee amount or percentage to be paid by the debtor; and 132.19    (3) the total amount of fees reasonably anticipated to be paid by the debtor over 132.20the term of the agreement. 132.21    (b) Each debt management services agreement must also contain the following: 132.22    (1) a disclosure that if the amount of debt owed is increased by interest, late fees, 132.23over the limit fees, and other amounts imposed by the creditors, the length of the debt 132.24management services agreement will be extended and remain in force and that the total 132.25dollar charges agreed upon may increase at the rate agreed upon in the original contract 132.26agreement; 132.27    (2) a prominent statement describing the terms upon which the debtor may cancel 132.28the contract as set forth in section 332A.11; 132.29    (3) a detailed description of all services to be performed by the debt management 132.30services provider for the debtor; 132.31    (4) the debt management services provider's refund policy; and 132.32    (5) the debt management services provider's principal business address and the name 132.33and address of its agent in this state authorized to receive service of process. 132.34    Subd. 4. Prohibited terms. The following terms shall not be included in the debt 132.35management services agreement: 132.36    (1) a hold harmless clause; 133.1    (2) a confession of judgment, or a power of attorney to confess judgment against the 133.2debtor or appear as the debtor in any judicial proceeding; 133.3    (3) a waiver of the right to a jury trial, if applicable, in any action brought by 133.4or against a debtor; 133.5    (4) an assignment of or an order for payment of wages or other compensation for 133.6services; 133.7    (5) a provision in which the debtor agrees not to assert any claim or defense arising 133.8out of the debt management services agreement; 133.9    (6) a waiver of any provision of this chapter or a release of any obligation required 133.10to be performed on the part of the debt management services provider; or 133.11    (7) a mandatory arbitration clause new text begin or a clause selecting a law other than the laws of new text end 133.12 new text begin Minnesota under which the debt management services agreement or any other dispute new text end 133.13 new text begin involving the provision of debt management services is governed or enforced new text end . 133.14    Subd. 5. New debt management services agreements; modification of existing 133.15agreements. (a) Separate and additional debt management services agreements that 133.16comply with this chapter may be entered into by the debt management services provider 133.17and the debtor provided that no additional initial new text begin origination new text end fee may be charged by the 133.18debt management services provider. 133.19    (b) Any modification of an existing debt management services agreement, including 133.20any increase in the number or amount of debts included in the debt management service new text begin new text end 133.21 new text begin services agreement new text end , must be in writing and signed by both parties, except that the signature 133.22of the debtor is not required if: 133.23    (1) a creditor is added to or deleted from a debt management services agreement 133.24at the request of the debtor or a debtor voluntarily increases the amount of a payment, 133.25provided the debt management services provider must provide an updated payment 133.26schedule to the debtor within seven days; or 133.27    (2) the payment amount to a creditor in the agreement increases by $10 or less 133.28and the total payment amount to all creditors increases a total of $20 or less as a result 133.29of incorrect or incomplete information provided by the debtor regarding the amount of 133.30debt owed a creditor, provided the debt management services provider must notify the 133.31debtor of the increase within seven days. 133.32    No fees, charges, or other consideration may be demanded from the debtor for 133.33the modification, other than an increase in the amount of the monthly maintenance fee 133.34established in the original debt management services agreement. 133.35    Sec. 16. Minnesota Statutes 2008, section 332A.11, subdivision 2, is amended to read: 134.1    Subd. 2. Notice of debtor's right to cancel. A debt management services 134.2agreement must contain, on its face, in an easily readable typeface new text begin type new text end immediately 134.3adjacent to the space for signature by the debtor, the following notice: "Right To Cancel: 134.4You have the right to cancel this contract at any time on ten days' written notice." 134.5    Sec. 17. Minnesota Statutes 2008, section 332A.14, is amended to read: 134.6332A.14 PROHIBITIONS. 134.7    A registrant new text begin No debt management services provider new text end shall not: 134.8    (1) purchase from a creditor any obligation of a debtor; 134.9    (2) use, threaten to use, seek to have used, or seek to have threatened the use of any 134.10legal process, including but not limited to garnishment and repossession of personal 134.11property, against any debtor while the debt management services agreement between the 134.12registrant and the debtor remains executory; 134.13    (3) advise new text begin , counsel, or encourage new text end a debtor to stop paying a creditor until a debt 134.14management services plan is in place new text begin , or imply, infer, encourage, or in any other way new text end 134.15 new text begin indicate, that it is advisable to stop paying a creditor new text end ; 134.16 new text begin (4) sanction or condone the act by a debtor of ceasing payments or imply, infer, new text end 134.17 new text begin or in any manner indicate that the act of ceasing payments is advisable or beneficial to new text end 134.18 new text begin the debtor; new text end 134.19    (4) new text begin (5) new text end require as a condition of performing debt management services the purchase 134.20of any services, stock, insurance, commodity, or other property or any interest therein 134.21either by the debtor or the registrant; 134.22    (5) new text begin (6) new text end compromise any debts unless the prior written new text begin or contractual new text end approval of the 134.23debtor has been obtained to such compromise and unless such compromise inures solely 134.24to the benefit of the debtor; 134.25    (6) new text begin (7) new text end receive from any debtor as security or in payment of any fee a promissory 134.26note or other promise to pay or any mortgage or other security, whether as to real or 134.27personal property; 134.28    (7) new text begin (8) new text end lend money or provide credit to any debtor if any interest or fee is charged, 134.29or directly or indirectly collect any fee for referring, advising, procuring, arranging, or 134.30assisting a consumer in obtaining any extension of credit or other debtor service from a 134.31lender or debt management services provider; 134.32    (8) new text begin (9) new text end structure a debt management services agreement that would result in negative 134.33amortization of any debt in the plan; 134.34    (9) new text begin (10) new text end engage in any unfair, deceptive, or unconscionable act or practice in 134.35connection with any service provided to any debtor; 135.1    (10) new text begin (11) new text end offer, pay, or give any material cash fee, gift, bonus, premium, reward, or 135.2other compensation to any person for referring any prospective customer to the registrant 135.3or for enrolling a debtor in a debt management services plan, or provide any other 135.4incentives for employees or agents of the debt management services provider to induce 135.5debtors to enter into a debt management services plan; 135.6    (11) new text begin (12) new text end receive any cash, fee, gift, bonus, premium, reward, or other compensation 135.7from any person other than the debtor or a person on the debtor's behalf in connection 135.8with activities as a registrant, provided that this paragraph does not apply to a registrant 135.9which is a bona fide nonprofit corporation duly organized under chapter 317A or under 135.10the similar laws of another state; 135.11    (12) new text begin (13) new text end enter into a contract with a debtor unless a thorough written budget analysis 135.12indicates that the debtor can reasonably meet the requirements of the financial adjustment 135.13plan and will be benefited by the plan; 135.14    (13) new text begin (14) new text end in any way charge or purport to charge or provide any debtor credit 135.15insurance in conjunction with any contract or agreement involved in the debt management 135.16services plan; 135.17    (14) new text begin (15) new text end operate or employ a person who is an employee or owner of a collection 135.18agency or process-serving business; or 135.19    (15) new text begin (16) new text end solicit, demand, collect, require, or attempt to require payment of a sum 135.20that the registrant states, discloses, or advertises to be a voluntary contribution new text begin to a debt new text end 135.21 new text begin management services provider or designee new text end from the debtor. 135.22    Sec. 18. Minnesota Statutes 2008, section 332A.16, is amended to read: 135.23332A.16 ADVERTISEMENT OF DEBT MANAGEMENT SERVICES PLANS. 135.24    No debt management services provider may make false, deceptive, or misleading 135.25statements or omissions about the rates, terms, or conditions of an actual or proposed 135.26debt management services plan or its debt management services, or create the likelihood 135.27of consumer confusion or misunderstanding regarding its services, including but not 135.28limited to the following: 135.29    (1) represent that the debt management services provider is a nonprofit, 135.30not-for-profit, or has similar status or characteristics if some or all of the debt management 135.31services will be provided by a for-profit company that is a controlling or affiliated party to 135.32the debt management services provider; or 135.33    (2) make any communication that gives the impression that the debt management 135.34services provider is acting on behalf of a government agency. 136.1    Sec. 19. new text begin [332B.02] DEFINITIONS. new text end 136.2     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin Unless a different meaning is clearly indicated by the context, new text end 136.3 new text begin for the purposes of this chapter, the terms defined in this section have the meanings given new text end 136.4 new text begin them. new text end 136.5     new text begin Subd. 2. new text end new text begin Accreditation. new text end new text begin "Accreditation" means certification as an accredited credit new text end 136.6 new text begin counseling provider by the Council on Accreditation, the Bureau Veritas Certification new text end 136.7 new text begin North America, Inc., or BSI Management Systems America, Inc. new text end 136.8     new text begin Subd. 3. new text end new text begin Advertise. new text end new text begin "Advertise" means to solicit business through any means or new text end 136.9 new text begin medium. new text end 136.10     new text begin Subd. 4. new text end new text begin Aggregate debt. new text end new text begin "Aggregate debt" means the total of principal and interest new text end 136.11 new text begin that is owed by the debtor to the creditors at the time of execution of the debt settlement new text end 136.12 new text begin agreement. new text end 136.13     new text begin Subd. 5. new text end new text begin Attorney general. new text end new text begin "Attorney general" means the attorney general of the new text end 136.14 new text begin state of Minnesota. new text end 136.15     new text begin Subd. 6. new text end new text begin Commissioner. new text end new text begin "Commissioner" means the commissioner of commerce. new text end 136.16     new text begin Subd. 7. new text end new text begin Controlling or affiliated party. new text end new text begin "Controlling or affiliated party" means new text end 136.17 new text begin any person or entity that controls or is controlled, directly or indirectly, or is under new text end 136.18 new text begin common control with another person. Controlling or affiliated party includes, but is not new text end 136.19 new text begin limited to, employees, officers, independent contractors, corporations, partnerships, and new text end 136.20 new text begin limited liability corporations. new text end 136.21     new text begin Subd. 8. new text end new text begin Credit counseling. new text end new text begin "Credit counseling" means the provision of counseling new text end 136.22 new text begin and advice on managing household finances, including but not limited to, managing credit new text end 136.23 new text begin and debt, budgeting, and personal savings. new text end 136.24     new text begin Subd. 9. new text end new text begin Creditor. new text end new text begin "Creditor" means any party: new text end 136.25 new text begin (1) named by the debtor as a creditor in the debt settlement services plan or debt new text end 136.26 new text begin settlement services agreement; new text end 136.27 new text begin (2) that acquires or holds the debt; or new text end 136.28 new text begin (3) to whom interactions with the debt settlement services is assigned in relation to new text end 136.29 new text begin the debt listed in the debt settlement services plan or debt settlement services agreement. new text end 136.30     new text begin Subd. 10. new text end new text begin Debt settlement services. new text end new text begin "Debt settlement services" means any one or new text end 136.31 new text begin more of the following activities: new text end 136.32 new text begin (1) offering to provide advice, or offering to act or acting as an intermediary between new text end 136.33 new text begin a debtor and one or more of the debtor's creditors, where the primary purpose of the new text end 136.34 new text begin advice or action is to obtain a settlement for less than the full amount of debt, whether new text end 137.1 new text begin in principal, interest, fees, or other charges, incurred primarily for personal, family, or new text end 137.2 new text begin household purposes including, but not limited to, offering debt negotiation, debt reduction, new text end 137.3 new text begin or debt relief services; or new text end 137.4 new text begin (2) advising, encouraging, assisting, or counseling a debtor to accumulate funds in new text end 137.5 new text begin an account for future payment of a reduced amount of debt to one or more of the debtor's new text end 137.6 new text begin creditors. new text end 137.7 new text begin Any person so engaged or holding out as so engaged is deemed to be engaged in new text end 137.8 new text begin the provision of debt settlement services, regardless of whether or not a fee is charged for new text end 137.9 new text begin such services. new text end 137.10     new text begin Subd. 11. new text end new text begin Debt settlement services agreement. new text end new text begin "Debt settlement services new text end 137.11 new text begin agreement" means the written contract between the debt settlement services provider new text end 137.12 new text begin and the debtor. new text end 137.13     new text begin Subd. 12. new text end new text begin Debt settlement services plan. new text end new text begin "Debt settlement services plan" means new text end 137.14 new text begin the debtor's individualized package of debt settlement services set forth in the debt new text end 137.15 new text begin settlement services agreement. new text end 137.16     new text begin Subd. 13. new text end new text begin Debt settlement services provider. new text end new text begin "Debt settlement services provider" new text end 137.17 new text begin means any person offering or providing debt settlement services to a debtor domiciled new text end 137.18 new text begin in this state, regardless of whether or not a fee is charged for the services and regardless new text end 137.19 new text begin of whether the person maintains a physical presence in the state. The term includes new text end 137.20 new text begin any person to whom debt settlement duties are delegated. The term shall not include new text end 137.21 new text begin persons listed in section 332A.02, subdivision 8, clauses (1) to (10), or a debt management new text end 137.22 new text begin services provider. new text end 137.23     new text begin Subd. 14. new text end new text begin Lead generator. new text end new text begin "Lead generator" means a person that, without providing new text end 137.24 new text begin debt settlement services: (1) solicits debtors to engage in debt settlement through mail, new text end 137.25 new text begin in person, or electronic Web site-based solicitation or any other means, (2) acts as an new text end 137.26 new text begin intermediary or referral agent between a debtor and an entity actually providing debt new text end 137.27 new text begin settlement services, or (3) obtains a debtor's personally identifiable information and new text end 137.28 new text begin transmits that information to a debt settlement services provider. new text end 137.29     new text begin Subd. 15. new text end new text begin Person. new text end new text begin "Person" means an individual, firm, partnership, association, new text end 137.30 new text begin or corporation. new text end 137.31     new text begin Subd. 16. new text end new text begin Registrant. new text end new text begin "Registrant" means any person registered by the new text end 137.32 new text begin commissioner pursuant to this chapter and, where used in conjunction with an act or new text end 137.33 new text begin omission required or prohibited by this chapter, shall mean any person performing debt new text end 137.34 new text begin settlement services. new text end 138.1    Sec. 20. new text begin [332B.03] REQUIREMENT OF REGISTRATION. new text end 138.2 new text begin On or after August 1, 2009, it is unlawful for any person, whether or not located new text end 138.3 new text begin in this state, to operate as a debt settlement services provider or provide debt settlement new text end 138.4 new text begin services including, but not limited to, offering, advertising, or executing or causing to be new text end 138.5 new text begin executed any debt settlement services or debt settlement services agreement, except as new text end 138.6 new text begin authorized by law, without first becoming registered as provided in this chapter. Debt new text end 138.7 new text begin settlement services providers may continue to provide debt settlement services without new text end 138.8 new text begin complying with this chapter to those debtors who entered into a contract to participate new text end 138.9 new text begin in a debt settlement services plan prior to August 1, 2009, but may not enter into a debt new text end 138.10 new text begin settlement services agreement with a debt on or after August 1, 2009, without complying new text end 138.11 new text begin with this chapter. new text end 138.12    Sec. 21. new text begin [332B.04] REGISTRATION. new text end 138.13     new text begin Subdivision 1. new text end new text begin Form. new text end new text begin Application for registration to operate as a debt settlement new text end 138.14 new text begin services provider in this state must be made in writing to the commissioner, under oath, in new text end 138.15 new text begin the form prescribed by the commissioner, and must contain: new text end 138.16 new text begin (1) the full name of each principal of the entity applying; new text end 138.17 new text begin (2) the address, which must not be a post office box, and the telephone number and, new text end 138.18 new text begin if applicable, the e-mail address, of the applicant; new text end 138.19 new text begin (3) consent to the jurisdiction of the courts of this state; new text end 138.20 new text begin (4) the name and address of the registered agent authorized to accept service of new text end 138.21 new text begin process on behalf of the applicant or appointment of the commissioner as the applicant's new text end 138.22 new text begin agent for purposes of accepting service of process; new text end 138.23 new text begin (5) disclosure of: new text end 138.24 new text begin (i) whether any controlling or affiliated party has ever been convicted of a crime new text end 138.25 new text begin or found civilly liable for an offense involving moral turpitude, including forgery, new text end 138.26 new text begin embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to new text end 138.27 new text begin defraud, or any other similar offense or violation, or any violation of a federal or state new text end 138.28 new text begin law or regulation in connection with activities relating to the rendition of debt settlement new text end 138.29 new text begin services or involving any consumer fraud, false advertising, deceptive trade practices, or new text end 138.30 new text begin similar consumer protection law; new text end 138.31 new text begin (ii) any judgments, private or public litigation, tax liens, written complaints, new text end 138.32 new text begin administrative actions, or investigations by any government agency against the applicant new text end 138.33 new text begin or any officer, director, manager, or shareholder owning more than five percent interest new text end 138.34 new text begin in the applicant, unresolved or otherwise, filed or otherwise commenced within the new text end 138.35 new text begin preceding ten years; new text end 139.1 new text begin (iii) whether the applicant or any person employed by the applicant has had a record new text end 139.2 new text begin of having defaulted in the payment of money collected for others, including the discharge new text end 139.3 new text begin of debts through bankruptcy proceedings; and new text end 139.4 new text begin (iv) whether the applicant's license or registration to provide debt settlement services new text end 139.5 new text begin in any other state has ever been revoked or suspended; new text end 139.6 new text begin (6) a copy of the applicant's standard debt settlement services agreement that the new text end 139.7 new text begin applicant intends to execute with debtors; new text end 139.8 new text begin (7) proof of accreditation, unless the applicant submits an affidavit attesting that the new text end 139.9 new text begin applicant does not provide credit counseling services; and new text end 139.10 new text begin (8) any other information and material as the commissioner may require. new text end 139.11 new text begin The commissioner may, for good cause shown, temporarily waive any requirement new text end 139.12 new text begin of this subdivision. new text end 139.13     new text begin Subd. 2. new text end new text begin Term and scope of registration. new text end new text begin A registration is effective until 11:59 new text end 139.14 new text begin p.m. on December 31 of the year for which the application for registration is filed or until new text end 139.15 new text begin it is surrendered by the registrant or revoked or suspended by the commissioner. The new text end 139.16 new text begin registration is limited solely to the business of providing debt settlement services. new text end 139.17     new text begin Subd. 3. new text end new text begin Fees; bond. new text end new text begin An applicant for registration as a debt settlement services new text end 139.18 new text begin provider must comply with the requirements of section 332A.04, subdivisions 3, 4, and 5. new text end 139.19     new text begin Subd. 4. new text end new text begin Right of action on bond. new text end new text begin If the registrant has failed to account to a debtor, new text end 139.20 new text begin or has failed to perform any of the services promised, the registrant is in default. The new text end 139.21 new text begin debtor or the debtor's legal representative or receiver, the commissioner, or the attorney new text end 139.22 new text begin general, shall have, in addition to all other legal remedies, a right of action in the name of new text end 139.23 new text begin the debtor on the bond or the security given under this section, for loss suffered by the new text end 139.24 new text begin debtor, not exceeding the face amount of the bond or security, and without the necessity of new text end 139.25 new text begin joining the registrant in the suit or action based on the default. new text end 139.26     new text begin Subd. 5. new text end new text begin Registrant list. new text end new text begin The commissioner must maintain a list of registered debt new text end 139.27 new text begin settlement services providers. The list must be made available to the public in written new text end 139.28 new text begin form upon request and on the Department of Commerce Web site. new text end 139.29     new text begin Subd. 6. new text end new text begin Renewal of registration. new text end new text begin Each year, each registrant under the provisions new text end 139.30 new text begin of this chapter must, not more than 60 nor less than 30 days before its registration is to new text end 139.31 new text begin expire, apply to the commissioner for renewal of its registration on a form prescribed by new text end 139.32 new text begin the commissioner. The application must be signed by the registrant under penalty of new text end 139.33 new text begin perjury, contain current information on all matters required in the original application, and new text end 139.34 new text begin be accompanied by a payment of $250. The registrant must maintain a continuous surety new text end 139.35 new text begin bond that satisfies the requirements of section 332A.04, subdivision 4. The renewal is new text end 140.1 new text begin effective for one year. The commissioner may, for good cause shown, temporarily waive new text end 140.2 new text begin any requirement of this section. new text end 140.3    Sec. 22. new text begin [332B.05] DENIAL, SUSPENSION, REVOCATION, OR new text end 140.4 new text begin NONRENEWAL OF REGISTRATION. new text end 140.5     new text begin Subdivision 1. new text end new text begin Denial. new text end new text begin The commissioner, with notice to the applicant by certified new text end 140.6 new text begin mail sent to the address listed on the application, may deny an application for a registration new text end 140.7 new text begin for any of the reasons specified under section 332A.08. new text end 140.8     new text begin Subd. 2. new text end new text begin Suspension, revocation, or nonrenewal. new text end new text begin The commissioner may suspend, new text end 140.9 new text begin revoke, or refuse to renew any registration issued under this chapter, or may levy a civil new text end 140.10 new text begin penalty under section 45.027, or any combination of actions, if the debt settlement services new text end 140.11 new text begin provider or any controlling or affiliated person has committed any act or omission for new text end 140.12 new text begin which the commissioner could have refused to issue an initial registration. new text end 140.13     new text begin Subd. 3. new text end new text begin Procedure. new text end new text begin Suspension, revocation, or nonrenewal must be upon notice new text end 140.14 new text begin and under the conditions prescribed in section 332A.09, subdivision 1. Upon issuance of new text end 140.15 new text begin an order suspending, revoking, or refusing to renew a registration, the commissioner: new text end 140.16 new text begin (1) shall follow the procedure established in section 332A.09, subdivision 2; and new text end 140.17 new text begin (2) may follow the procedure specified in section 332A.09, subdivision 3, concerning new text end 140.18 new text begin the appointment of a receiver for funds of sanctioned registrants. new text end 140.19    Sec. 23. new text begin [332B.06] WRITTEN DEBT SETTLEMENT SERVICES AGREEMENT; new text end 140.20 new text begin DISCLOSURES; TRUST ACCOUNT. new text end 140.21     new text begin Subdivision 1. new text end new text begin Written agreement required. new text end new text begin (a) A debt settlement services new text end 140.22 new text begin provider may not perform, or impose any charges or receive any payment for, any debt new text end 140.23 new text begin settlement services until the provider and the debtor have executed a debt settlement new text end 140.24 new text begin services agreement that contains all terms of the agreement between the debt settlement new text end 140.25 new text begin services provider and the debtor and complies with all the applicable requirements of new text end 140.26 new text begin this chapter. new text end 140.27 new text begin (b) A debt settlement services agreement must: new text end 140.28 new text begin (1) be in writing, dated, and signed by the debt settlement services provider and new text end 140.29 new text begin the debtor; new text end 140.30 new text begin (2) conspicuously indicate whether or not the debt settlement services provider is new text end 140.31 new text begin registered with the Minnesota Department of Commerce and include any registration new text end 140.32 new text begin number; and new text end 140.33 new text begin (3) be written in the debtor's primary language if the debt settlement services new text end 140.34 new text begin provider advertises in that language. new text end 141.1 new text begin (c) The registrant must furnish the debtor with a copy of the signed contract upon new text end 141.2 new text begin execution. new text end 141.3     new text begin Subd. 2. new text end new text begin Actions prior to executing a written agreement. new text end new text begin No person may provide new text end 141.4 new text begin debt settlement services for a debtor or execute a debt settlement services agreement new text end 141.5 new text begin unless the person first has: new text end 141.6 new text begin (1) informed the debtor, in writing, that debt settlement is not appropriate for all new text end 141.7 new text begin debtors and that there are other ways to deal with debt, including using credit counseling new text end 141.8 new text begin or debt management services, or filing bankruptcy; new text end 141.9 new text begin (2) prepared in writing and provided to the debtor, in a form the debtor may keep, new text end 141.10 new text begin an individualized financial analysis of the debtor's financial circumstances, including new text end 141.11 new text begin income and liabilities, and made a determination supported by the individualized financial new text end 141.12 new text begin analysis that: new text end 141.13 new text begin (i) the debt settlement plan proposed for addressing the debt is suitable for the new text end 141.14 new text begin individual debtor; new text end 141.15 new text begin (ii) the debtor can reasonably meet the requirements of the proposed debt settlement new text end 141.16 new text begin services plan; and new text end 141.17 new text begin (iii) based on the totality of the circumstances, there is a net tangible benefit to the new text end 141.18 new text begin debtor of entering into the proposed debt settlement services plan; and new text end 141.19 new text begin (3) provided, on a document separate from any other document, the total amount and new text end 141.20 new text begin an itemization of fees, including any origination fees, monthly fees, and settlement fees new text end 141.21 new text begin reasonably anticipated to be paid by the debtor over the term of the agreement. new text end 141.22     new text begin Subd. 3. new text end new text begin Determination concerning creditor participation. new text end new text begin (a) Before executing a new text end 141.23 new text begin debt settlement services agreement or providing any services, a debt settlement services new text end 141.24 new text begin provider must make a determination, supported by sufficient bases, which creditors listed new text end 141.25 new text begin by the debtor are reasonably likely, and which are not reasonably likely, to participate in new text end 141.26 new text begin the debt settlement services plan set forth in the debt settlement services agreement. new text end 141.27 new text begin (b) A debt settlement services provider has a defense against a claim that no new text end 141.28 new text begin sufficient basis existed to make a determination that a creditor was likely to participate if new text end 141.29 new text begin the debt settlement services provider can produce: new text end 141.30 new text begin (1) written confirmation from the creditor that, at the time the determination was new text end 141.31 new text begin made, the creditor and the debt settlement services provider were engaged in negotiations new text end 141.32 new text begin to settle a debt for another debtor; or new text end 141.33 new text begin (2) evidence that the provider and the creditor had entered into a settlement of a debt new text end 141.34 new text begin within the six months prior to the date of the determination. new text end 141.35 new text begin (c) The debt settlement services provider must notify the debtor as soon as new text end 141.36 new text begin practicable after the provider has made a determination of the likelihood of participation new text end 142.1 new text begin or nonparticipation of all the creditors listed for inclusion in the debt settlement services new text end 142.2 new text begin agreement or debt settlement services plan. If not all creditors listed in the debt settlement new text end 142.3 new text begin services agreement are reasonably likely to participate in the debt settlement services plan, new text end 142.4 new text begin the debt settlement services provider must obtain the written authorization from the debtor new text end 142.5 new text begin to proceed with the debt settlement services agreement without the likely participation of new text end 142.6 new text begin all listed creditors. new text end 142.7     new text begin Subd. 4. new text end new text begin Disclosures. new text end new text begin (a) A person offering to provide or providing debt settlement new text end 142.8 new text begin services must disclose both orally and in writing whether or not the person is registered new text end 142.9 new text begin with the Minnesota Department of Commerce and any registration number. new text end 142.10 new text begin (b) No person may provide debt settlement services unless the person first has new text end 142.11 new text begin provided, both orally and in writing, on a single sheet of paper, separate from any other new text end 142.12 new text begin document or writing, the following verbatim notice: new text end 142.13 new text begin CAUTION new text end 142.14 new text begin We CANNOT GUARANTEE that you will successfully reduce or eliminate your new text end 142.15 new text begin debt. new text end 142.16 new text begin If you stop paying your creditors, there is a strong likelihood some or all of the new text end 142.17 new text begin following may happen: new text end 142.18 new text begin • YOUR WAGES OR BANK ACCOUNT MAY STILL BE GARNISHED. new text end 142.19 new text begin • YOU MAY STILL BE CONTACTED BY CREDITORS. new text end 142.20 new text begin • YOU MAY STILL BE SUED BY CREDITORS for the money you owe. new text end 142.21 new text begin • FEES, INTEREST, AND OTHER CHARGES WILL CONTINUE TO MOUNT new text end 142.22 new text begin UP DURING THE (INSERT NUMBER) MONTHS THIS PLAN IS IN EFFECT. new text end 142.23 new text begin Even if we do settle your debt, YOU MAY STILL HAVE TO PAY TAXES on new text end 142.24 new text begin the amount forgiven. new text end 142.25 new text begin Your credit rating may be adversely affected. new text end 142.26 new text begin (c) The heading, "CAUTION," must be in bold, underlined, 28-point type, and the new text end 142.27 new text begin remaining text must be in 14-point type, with a double space between each statement. new text end 142.28 new text begin (d) The disclosures and notices required under this subdivision must be provided new text end 142.29 new text begin in the debtor's primary language if the debt settlement services provider advertises in new text end 142.30 new text begin that language. new text end 142.31     new text begin Subd. 5. new text end new text begin Required terms. new text end new text begin (a) Each debt settlement services agreement must contain new text end 142.32 new text begin on the front page of the agreement, segregated by bold lines from all other information new text end 142.33 new text begin on the page and disclosed prominently and clearly in bold print, the total amount and an new text end 142.34 new text begin itemization of fees, including any origination fees, monthly fees, and settlement fees new text end 142.35 new text begin reasonably anticipated to be paid by the debtor over the term of the agreement. new text end 142.36 new text begin (b) Each debt settlement services agreement must also contain the following: new text end 143.1 new text begin (1) a prominent statement describing the terms upon which the debtor may cancel new text end 143.2 new text begin the contract as set forth in section 332B.07; new text end 143.3 new text begin (2) a detailed description of all services to be performed by the debt settlement new text end 143.4 new text begin services provider for the debtor; new text end 143.5 new text begin (3) the debt settlement services provider's refund policy; new text end 143.6 new text begin (4) the debt settlement services provider's principal business address, which must new text end 143.7 new text begin not be a post office box, and the name and address of its agent in this state authorized to new text end 143.8 new text begin receive service of process; and new text end 143.9 new text begin (5) the name of each creditor the debtor has listed and the aggregate debt owed to new text end 143.10 new text begin each creditor that will be the subject of settlement. new text end 143.11     new text begin Subd. 6. new text end new text begin Prohibited terms. new text end new text begin A debt settlement services agreement may not contain new text end 143.12 new text begin any of the terms prohibited under section 332A.10, subdivision 4. new text end 143.13     new text begin Subd. 7. new text end new text begin New debt settlement services agreements; modifications of existing new text end 143.14 new text begin agreements. new text end new text begin (a) Separate and additional debt settlement services agreements that comply new text end 143.15 new text begin with this chapter may be entered into by the debt settlement services provider and the new text end 143.16 new text begin debtor, provided that no additional origination fee may be charged by the debt settlement new text end 143.17 new text begin services provider. new text end 143.18 new text begin (b) Any modification of an existing debt settlement services agreement, including new text end 143.19 new text begin any increase in the number or amount of debts included in the debt settlement services new text end 143.20 new text begin agreement, must be in writing and signed by both parties. No fee may be charged to new text end 143.21 new text begin modify an existing agreement. new text end 143.22     new text begin Subd. 8. new text end new text begin Funds held in trust. new text end new text begin Debtor funds may be held in trust for the purpose new text end 143.23 new text begin of writing exchange checks for no longer than 42 days. If the registrant holds debtor new text end 143.24 new text begin funds, the registrant must maintain a separate trust account, except that the registrant may new text end 143.25 new text begin commingle debtor funds with the registrant's own funds, in the form of an imprest fund, new text end 143.26 new text begin to the extent necessary to ensure maintenance of a minimum balance, if the financial new text end 143.27 new text begin institution at which the trust account is held requires a minimum balance to avoid the new text end 143.28 new text begin assessment of fees or penalties for failure to maintain a minimum balance. new text end 143.29    Sec. 24. new text begin [332B.07] RIGHT TO CANCEL. new text end 143.30     new text begin Subdivision 1. new text end new text begin Debtor's right to cancel. new text end new text begin (a) A debtor has the right to cancel a debt new text end 143.31 new text begin settlement services agreement without cause at any time upon ten days' written notice new text end 143.32 new text begin to the debt settlement services provider. new text end 143.33 new text begin (b) In the event of cancellation, the debt settlement services provider must, within new text end 143.34 new text begin ten days of the cancellation, notify the debtor's creditors with whom the debt settlement new text end 144.1 new text begin services provider is or has been, under the terms of the debt settlement agreement, in new text end 144.2 new text begin communication, of the cancellation and immediately refund all fees paid by the debtor to new text end 144.3 new text begin the debt settlement services provider that exceed the fees allowed under section 332B.09. new text end 144.4 new text begin (c) Upon cancellation, the debt settlement services provider must cease collection of new text end 144.5 new text begin any monthly fees beginning in the month following cancellation. new text end 144.6     new text begin Subd. 2. new text end new text begin Notice of debtor's right to cancel. new text end new text begin A debt settlement services agreement new text end 144.7 new text begin must contain, on its face, in an easily readable type immediately adjacent to the space for new text end 144.8 new text begin signature by the debtor, the following notice: "Right to Cancel: You have the right to new text end 144.9 new text begin cancel this contract at any time on ten days' written notice." new text end 144.10     new text begin Subd. 3. new text end new text begin Automatic termination. new text end new text begin Upon the payment of all listed or settled debts new text end 144.11 new text begin and fees, the debt settlement services agreement must automatically terminate, and all new text end 144.12 new text begin funds held by the debt settlement services provider that exceed the fees allowed under new text end 144.13 new text begin section 332B.09 must be immediately returned to the debtor. new text end 144.14     new text begin Subd. 4. new text end new text begin Debt settlement services provider's right to cancel. new text end new text begin (a) A debt settlement new text end 144.15 new text begin services provider may cancel a debt settlement services agreement with good cause upon new text end 144.16 new text begin 30 days' written notice to the debtor. new text end 144.17 new text begin (b) Within ten days after the cancellation, the debt settlement services provider new text end 144.18 new text begin must notify the debtor's creditors with whom the debt settlement services provider is or new text end 144.19 new text begin has been, under the terms of the debt settlement services agreement, in communication, new text end 144.20 new text begin of the cancellation. new text end 144.21 new text begin (c) Upon cancellation, the debt settlement services provider must cease collection of new text end 144.22 new text begin any monthly fees beginning in the month following cancellation. new text end 144.23 new text begin (d) A debt settlement services provider is entitled to the full amount of the fees new text end 144.24 new text begin provided for in the debt settlement services agreement if the provider can show that: new text end 144.25 new text begin (1) the provider obtained a settlement offer from the creditor or creditors in new text end 144.26 new text begin accordance with the debt settlement services agreement; new text end 144.27 new text begin (2) the debtor rejected the settlement offer; or new text end 144.28 new text begin (3) within the period contemplated in the debt settlement services agreement, the new text end 144.29 new text begin debtor entered into a settlement agreement with the same creditor or creditors for an new text end 144.30 new text begin amount equal to or lower than the settlement offer obtained by the provider. new text end 144.31    Sec. 25. new text begin [332B.08] BOOKS, RECORDS, AND INFORMATION. new text end 144.32     new text begin Subdivision 1. new text end new text begin Records retention; annual report. new text end new text begin Every registrant must keep, and new text end 144.33 new text begin use in the registrant's business, such books, accounts, and records, including electronic new text end 144.34 new text begin records, as will enable the commissioner to determine whether the registrant is complying new text end 145.1 new text begin with this chapter and the rules, orders, and directives adopted by the commissioner under new text end 145.2 new text begin this chapter. Every registrant must preserve such books, accounts, and records for at least new text end 145.3 new text begin six years after making the final entry on any transaction recorded therein. Examinations new text end 145.4 new text begin of the books, records, and method of operations conducted under the supervision of the new text end 145.5 new text begin commissioner shall be done at the cost of the registrant. The cost must be assessed as new text end 145.6 new text begin determined under section 46.131. new text end 145.7     new text begin Subd. 2. new text end new text begin Annual report. new text end new text begin On or before March 15 of each calendar year, new text end 145.8 new text begin each registrant must file a report with the commissioner containing information the new text end 145.9 new text begin commissioner may require about the preceding calendar year. The report must be in a new text end 145.10 new text begin form the commissioner prescribes. new text end 145.11     new text begin Subd. 3. new text end new text begin Statements to debtors. new text end new text begin (a) Each registrant must: new text end 145.12 new text begin (1) maintain and make available records and accounts that will enable each debtor to new text end 145.13 new text begin ascertain the amounts paid to the creditors, if any. A statement showing amounts received new text end 145.14 new text begin from the debtor, disbursements, if any, to each creditor, amounts that any creditor has new text end 145.15 new text begin agreed to as payment in full for any debt owed the creditor by the debtor, fees deducted by new text end 145.16 new text begin the registrant, and other information the commissioner may prescribe, must be furnished new text end 145.17 new text begin by the registrant to the debtor at least monthly and, in addition, upon any cancellation or new text end 145.18 new text begin termination of the contract; new text end 145.19 new text begin (2) include in the statement furnished to debtors a list of all activities conducted new text end 145.20 new text begin pursuant to the contract, including the nature of communications and progress of new text end 145.21 new text begin negotiations with each creditor during the reporting period; and new text end 145.22 new text begin (3) prepare and retain in the file of each debtor a written analysis of the debtor's new text end 145.23 new text begin income and expenses to substantiate that the plan of payment is feasible and practicable. new text end 145.24 new text begin (b) Each debtor must have reasonable access, without cost, by electronic or other new text end 145.25 new text begin means, to information in the registrant's files applicable to the debtor. These statements, new text end 145.26 new text begin records, and accounts must otherwise remain confidential, except for duly authorized new text end 145.27 new text begin state and government officials, the commissioner, the attorney general, the debtor, and new text end 145.28 new text begin the debtor's representative and designees. new text end 145.29    Sec. 26. new text begin [332B.09] FEES; WITHDRAWAL OF CREDITORS; NOTIFICATION new text end 145.30 new text begin TO DEBTOR OF SETTLEMENT OFFER. new text end 145.31     new text begin Subdivision 1. new text end new text begin Choice of fee structure. new text end new text begin A debt settlement services provider may new text end 145.32 new text begin calculate fees on a percentage of debt basis or on a percentage of savings basis. The fee new text end 145.33 new text begin structure shall be clearly disclosed and explained in the debt settlement services agreement. new text end 146.1     new text begin Subd. 2. new text end new text begin Fees as a percentage of debt. new text end new text begin (a) The total amount of the fees claimed, new text end 146.2 new text begin demanded, charged, collected, or received under this subdivision shall be calculated as new text end 146.3 new text begin 15 percent of the aggregate debt. A debt settlement services provider that calculates new text end 146.4 new text begin fees as a percentage of debt may: new text end 146.5 new text begin (1) charge an origination fee, which may be designated by the debt settlement new text end 146.6 new text begin services provider as nonrefundable, of: new text end 146.7 new text begin (i) $200 on aggregate debt of less than $20,000; or new text end 146.8 new text begin (ii) $400 on aggregate debt of $20,000 or more; new text end 146.9 new text begin (2) charge a monthly fee of: new text end 146.10 new text begin (i) no greater than $50 per month on aggregate debt of less than $40,000; and new text end 146.11 new text begin (ii) no greater than $60 per month on aggregate debt of $40,000 or more; and new text end 146.12 new text begin (3) charge a settlement fee for the remainder of the allowable fees, which may be new text end 146.13 new text begin demanded and collected no earlier than upon delivery to the debt settlement services new text end 146.14 new text begin provider by a creditor of a bona fide written settlement offer consistent with the terms of new text end 146.15 new text begin the debt settlement services agreement. A settlement fee may be assessed for each debt new text end 146.16 new text begin settled, but the sum total of the origination fee, the monthly fee, and the settlement fee new text end 146.17 new text begin may not exceed 15 percent of the aggregate debt. new text end 146.18 new text begin (b) When a settlement offer is obtained by a debt settlement services provider from a new text end 146.19 new text begin creditor, the collection of any monthly fees shall cease beginning the month following the new text end 146.20 new text begin month in which the settlement offer was obtained by the debt settlement services provider. new text end 146.21 new text begin (c) In no event may more than 40 percent of the total amount of fees allowable be new text end 146.22 new text begin claimed, demanded, charged, collected, or received by a debt settlement services provider new text end 146.23 new text begin any earlier than upon delivery to the debt settlement services provider by a creditor of new text end 146.24 new text begin a bona fide written settlement offer consistent with the terms of the debt settlement new text end 146.25 new text begin services agreement. new text end 146.26     new text begin Subd. 3. new text end new text begin Fees as a percentage of savings. new text end new text begin (a) The total amount of the fees claimed, new text end 146.27 new text begin demanded, charged, collected, or received under this subdivision shall be calculated as 30 new text end 146.28 new text begin percent of the savings actually negotiated by the debt settlement services provider. The new text end 146.29 new text begin savings shall be calculated as the difference between the aggregate debt that is stated new text end 146.30 new text begin in the debt settlement services agreement at the time of its execution and total amount new text end 146.31 new text begin that the debtor actually pays to settle all the debts stated in the debt settlement services new text end 146.32 new text begin agreement, provided that only savings resulting from concessions actually negotiated by new text end 146.33 new text begin the debt settlement services provider may be counted. A debt settlement services provider new text end 146.34 new text begin that calculates fees as a percentage of debt may: new text end 146.35 new text begin (1) charge an origination fee, which may be designated by the debt settlement new text end 146.36 new text begin services provider as nonrefundable, of: new text end 147.1 new text begin (i) $300 on aggregate debt of less than $20,000; or new text end 147.2 new text begin (ii) $500 on aggregate debt of $20,000 or more; new text end 147.3 new text begin (2) charge a monthly fee of: new text end 147.4 new text begin (i) no greater than $65 on aggregate debt of less than $40,000; and new text end 147.5 new text begin (ii) no greater than $75 on aggregate debt of $40,000 or more; and new text end 147.6 new text begin (3) charge a settlement fee for the remainder of the allowable fees, which may be new text end 147.7 new text begin demanded and collected no earlier than upon delivery to the debt settlement services new text end 147.8 new text begin provider by a creditor of a bona fide, final written settlement offer consistent with the new text end 147.9 new text begin terms of the debt settlement services agreement. A settlement fee may be assessed for each new text end 147.10 new text begin debt settled, but the sum total of the origination fee, the monthly fee, and the settlement new text end 147.11 new text begin fee may not exceed 30 percent of the savings, as calculated under paragraph (a). new text end 147.12 new text begin (b) The collection of monthly fees shall cease under this subdivision when the new text end 147.13 new text begin total of monthly fees and the origination fee equals 50 percent of the total fees allowable new text end 147.14 new text begin under this subdivision. For the purposes of this subdivision, 50 percent of the total fees new text end 147.15 new text begin allowable shall assume a settlement of 50 cents on the dollar. new text end 147.16 new text begin (c) In no event may more than 50 percent of the total amount of fees allowable be new text end 147.17 new text begin claimed, demanded, charged, collected, or received by a debt settlement services provider new text end 147.18 new text begin any earlier than upon delivery to the debt settlement services provider by a creditor of a new text end 147.19 new text begin bona fide, final written settlement offer consistent with the terms of the debt settlement new text end 147.20 new text begin services agreement. new text end 147.21     new text begin Subd. 4. new text end new text begin Fees exclusive. new text end new text begin No fees, charges, assessments, or any other compensation new text end 147.22 new text begin may be claimed, demanded, charged, collected, or received other than the fees allowed new text end 147.23 new text begin under this section. Any fees collected in excess of those allowed under this section must new text end 147.24 new text begin be immediately returned to the debtor. new text end 147.25     new text begin Subd. 5. new text end new text begin Withdrawal of creditor. new text end new text begin Whenever a creditor withdraws from a debt new text end 147.26 new text begin settlement services plan, the debt settlement services provider must promptly notify the new text end 147.27 new text begin debtor of the withdrawal, identify the creditor, and inform the debtor of the right to modify new text end 147.28 new text begin the debt settlement services agreement, unless at least 50 percent of the listed creditors new text end 147.29 new text begin withdraw, in which case the debt settlement services provider must notify the debtor of the new text end 147.30 new text begin debtor's right to cancel. In no case may this notice be provided more than 15 days after the new text end 147.31 new text begin debt settlement services provider learns of the creditor's decision to withdraw from a plan. new text end 147.32     new text begin Subd. 6. new text end new text begin Timely notification of settlement offer. new text end new text begin A debt settlement services new text end 147.33 new text begin provider must make all reasonable efforts to notify the debtor within 24 hours of a new text end 147.34 new text begin settlement offer made by a creditor. new text end 147.35    Sec. 27. new text begin [332B.10] PROHIBITIONS. new text end 148.1 new text begin No debt settlement services provider shall: new text end 148.2 new text begin (1) engage in any activity, act, or omission prohibited under section 332A.14; new text end 148.3 new text begin (2) promise, guarantee, or directly or indirectly imply, infer, or in any manner new text end 148.4 new text begin represent that any debt will be settled prior to the presentation to the debtor of an offer by new text end 148.5 new text begin the creditors participating in the debt settlement plan to settle; new text end 148.6 new text begin (3) misrepresent the timing of negotiations with creditors; new text end 148.7 new text begin (4) imply, infer, or in any manner represent that: new text end 148.8 new text begin (i) fees, interest, and other charges will not continue to accrue prior to the time new text end 148.9 new text begin debts are settled; new text end 148.10 new text begin (ii) wages or bank accounts are not subject to garnishment; new text end 148.11 new text begin (iii) creditors will not continue to contact the debtor; new text end 148.12 new text begin (iv) the debtor is not subject to legal action; and new text end 148.13 new text begin (v) the debtor will not be subject to tax consequences for the portion of any debts new text end 148.14 new text begin forgiven; new text end 148.15 new text begin (5) execute a power of attorney or any other agreement, oral or written, express new text end 148.16 new text begin or implied, that extinguishes or limits the debtor's right at any time to contract or new text end 148.17 new text begin communicate with any creditor or the creditor's right at any time to communicate with new text end 148.18 new text begin the debtor; new text end 148.19 new text begin (6) exercise or attempt to exercise a power of attorney after an individual has new text end 148.20 new text begin terminated an agreement; new text end 148.21 new text begin (7) state, imply, infer, or, in any other manner, indicate that entering into a debt new text end 148.22 new text begin settlement services agreement or settling debts will either have no effect on, or improve, new text end 148.23 new text begin the debtor's credit, credit rating, and credit score; new text end 148.24 new text begin (8) challenge a debt without the written consent of the debtor; new text end 148.25 new text begin (9) make any false or misleading claim regarding a creditor's right to collect a debt; new text end 148.26 new text begin (10) falsely represent that the debt settlement services provider can negotiate better new text end 148.27 new text begin settlement terms with a creditor than the debtor alone can negotiate; new text end 148.28 new text begin (11) provide or offer to provide legal advice or legal services unless the person new text end 148.29 new text begin providing or offering to provide legal advice is licensed to practice law in the state; new text end 148.30 new text begin (12) misrepresent that it is authorized or competent to furnish legal advice or new text end 148.31 new text begin perform legal services; and new text end 148.32 new text begin (13) settle a debt or lead an individual to believe that a payment to a creditor is in new text end 148.33 new text begin settlement of a debt to the creditor unless, at the time of settlement, the individual receives new text end 148.34 new text begin a certification from the creditor that the payment is in full settlement of the debt. new text end 149.1    Sec. 28. new text begin [332B.11] ADVERTISEMENT AND SOLICITATION OF DEBT new text end 149.2 new text begin SETTLEMENT SERVICES. new text end 149.3     new text begin Subdivision 1. new text end new text begin Advertisement. new text end new text begin No debt settlement services provider or lead new text end 149.4 new text begin generator may: new text end 149.5 new text begin (1) make any false, deceptive, or misleading statements or omissions about the rates, new text end 149.6 new text begin terms, or conditions of an actual or proposed debt settlement services plan, or create the new text end 149.7 new text begin likelihood of consumer confusion or misunderstanding regarding its services; new text end 149.8 new text begin (2) represent that the debt settlement services provider is a nonprofit, not-for-profit, new text end 149.9 new text begin or has similar status or characteristics if some or all of the debt settlement services will new text end 149.10 new text begin be provided by a for-profit company that is a controlling or affiliated party to the debt new text end 149.11 new text begin settlement services provider; new text end 149.12 new text begin (3) make any communication that gives the impression that the debt settlement new text end 149.13 new text begin services provider is acting on behalf of a government agency; or new text end 149.14 new text begin (4) represent, claim, imply, or infer that secured debts may be settled. new text end 149.15     new text begin Subd. 2. new text end new text begin Solicitation by lead generators. new text end new text begin (a) In all print, electronic, and nonprint new text end 149.16 new text begin solicitations, including Web sites and radio or television advertising, a lead generator must new text end 149.17 new text begin prominently make the following verbatim disclosure: "This company does not actually new text end 149.18 new text begin provide any debt settlement, debt consolidation, or other credit counseling services. We new text end 149.19 new text begin ONLY refer you to companies that want to provide some or all of those services." new text end 149.20 new text begin (b) A lead generator may not, in any advertising or solicitation to debtors: new text end 149.21 new text begin (1) represent that any service is guaranteed; or new text end 149.22 new text begin (2) misrepresent the benefits of its services or debt settlement or consolidation in new text end 149.23 new text begin comparison to credit counseling, debt management, or bankruptcy. new text end 149.24    Sec. 29. new text begin [332B.12] DEBT SETTLEMENT SERVICES AGREEMENT new text end 149.25 new text begin RESCISSION. new text end 149.26 new text begin Any debtor has the right to rescind any debt settlement services agreement with a new text end 149.27 new text begin debt settlement services provider that commits a material violation of this chapter. On new text end 149.28 new text begin rescission, all fees paid to the debt settlement services provider or any other person other new text end 149.29 new text begin than creditors of the debtor must be returned to the debtor entering into the debt settlement new text end 149.30 new text begin services agreement within ten days of rescission of the debt settlement services agreement. new text end 149.31    Sec. 30. new text begin [332B.13] ENFORCEMENT; REMEDIES. new text end 149.32     new text begin Subdivision 1. new text end new text begin Violation as deceptive practice. new text end new text begin A violation of any of the provisions new text end 149.33 new text begin of this chapter is considered an unfair or deceptive trade practice under section 8.31, new text end 150.1 new text begin subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in new text end 150.2 new text begin the public interest. new text end 150.3     new text begin Subd. 2. new text end new text begin Private right of action. new text end new text begin (a) A debt settlement provider who fails to new text end 150.4 new text begin comply with any of the provisions of this chapter, or a lead generator who violates section new text end 150.5 new text begin 332B.11, is liable under this section in an individual action for the sum of: new text end 150.6 new text begin (1) actual, incidental, and consequential damages sustained by the debtor as a result new text end 150.7 new text begin of the failure; and new text end 150.8 new text begin (2) statutory damages of up to $5,000. new text end 150.9 new text begin (b) A debt settlement provider who fails to comply with any of the provisions of new text end 150.10 new text begin this chapter, or a lead generator who violates section 332B.11, is liable to the named new text end 150.11 new text begin plaintiffs under this section in a class action for the amount that each named plaintiff new text end 150.12 new text begin could recover under paragraph (a), clause (1), and to the other class members for such new text end 150.13 new text begin amount as the court may allow. new text end 150.14 new text begin (c) In determining the amount of statutory damages, the court shall consider, among new text end 150.15 new text begin other relevant factors: new text end 150.16 new text begin (1) the frequency, nature, and persistence of noncompliance; new text end 150.17 new text begin (2) the extent to which the noncompliance was intentional; and new text end 150.18 new text begin (3) in the case of a class action, the number of debtors adversely affected. new text end 150.19 new text begin (d) A plaintiff or class successful in a legal or equitable action under this section is new text end 150.20 new text begin entitled to the costs of the action, plus reasonable attorney fees. new text end 150.21     new text begin Subd. 3. new text end new text begin Injunctive relief. new text end new text begin (a) A debtor may sue a debt settlement services provider new text end 150.22 new text begin for temporary or permanent injunctive or other appropriate equitable relief to prevent new text end 150.23 new text begin violations of any provision of this chapter. A court must grant injunctive relief on a new text end 150.24 new text begin showing that the debt settlement services provider has violated any provision of this new text end 150.25 new text begin chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to new text end 150.26 new text begin prevail on allegations that the debt settlement services provider violated any provision new text end 150.27 new text begin of this chapter. new text end 150.28 new text begin (b) A debtor may sue a lead generator for temporary or permanent injunctive or other new text end 150.29 new text begin appropriate equitable relief to prevent violations of section 332B.11. A court must grant new text end 150.30 new text begin injunctive relief on a showing that the lead generator has violated section 332B.11, or in new text end 150.31 new text begin the case of a temporary injunction, on a showing that the debtor is likely to prevail on new text end 150.32 new text begin allegations that the lead generator violated section 332B.11. new text end 150.33     new text begin Subd. 4. new text end new text begin Remedies cumulative. new text end new text begin The remedies provided in this section are new text end 150.34 new text begin cumulative and do not restrict any remedy that is otherwise available. The provisions new text end 151.1 new text begin of this chapter are not exclusive and are in addition to any other requirements, rights, new text end 151.2 new text begin remedies, and penalties provided by law. new text end 151.3     new text begin Subd. 5. new text end new text begin Public enforcement. new text end new text begin The attorney general shall enforce this chapter new text end 151.4 new text begin under section 8.31. new text end 151.5    Sec. 31. new text begin [332B.14] INVESTIGATIONS. new text end 151.6 new text begin At any reasonable time, the commissioner may examine the books and records of new text end 151.7 new text begin every registrant and of any person engaged in the business of providing debt settlement new text end 151.8 new text begin services. The commissioner, once during any calendar year, may require the submission new text end 151.9 new text begin of an audit prepared by a certified public accountant of the books and records of each new text end 151.10 new text begin registrant. If the registrant has, within one year previous to the commissioner's demand, new text end 151.11 new text begin had an audit prepared for some other purpose, this audit may be submitted to satisfy the new text end 151.12 new text begin requirement of this section. The commissioner may investigate any complaint concerning new text end 151.13 new text begin violations of this chapter and may require the attendance and sworn testimony of witnesses new text end 151.14 new text begin and the production of documents. new text end " 151.15Delete the title and insert: 151.16"A bill for an act 151.17relating to state government; appropriating money for environment, natural 151.18resources, and energy; authorizing sale of gift cards and certificates; establishing 151.19composting competitive grant program; modifying regulation of storm water 151.20discharges; modifying waste management reporting requirements; requiring 151.21nonresident all-terrain vehicle state trail pass; modifying horse trail and state park 151.22pass requirements; extending certain land sale requirements; prohibiting certain 151.23sales of outdoor recreation system lands; providing for exchange of riparian land; 151.24requiring disclosure of certain chemicals in children's products by manufacturers; 151.25requiring plastic yard waste bags to be compostable and establishing labeling 151.26standards; modifying feedlot permit and grant provisions; authorizing uses of 151.27the Hennepin County solid and hazardous waste fund; modifying greenhouse 151.28gas emissions provisions and requiring a registry; establishing, modifying, 151.29and authorizing fees and surcharges; providing for disposition of certain fees; 151.30modifying and establishing assessments for certain regulatory expenses; 151.31modifying prior appropriations; prohibiting certain reorganizations; providing for 151.32fish consumption advisories in different languages; limiting use of certain funds; 151.33requiring studies and reports; appropriating money to Department of Commerce 151.34and Public Utilities Commission to finance activities related to commerce and 151.35energy; providing for green enterprise assistance; modifying provisions related to 151.36insurance audits, insurers and insurance products, certain financial institutions, 151.37regulated activities related to certain mortgage transactions and professionals, 151.38and debt management and debt settlement services; providing penalties and 151.39remedies;amending Minnesota Statutes 2008, sections 45.011, subdivision 1; 151.4045.027, subdivision 1; 46.04, subdivision 1; 46.05; 46.131, subdivision 2; 47.58, 151.41subdivision 1; 47.60, subdivisions 1, 3, 6; 48.21; 58.05, subdivision 3; 58.06, 151.42subdivision 2; 58.126; 58.13, subdivision 1; 60A.124; 60A.14, subdivision 151.431; 60B.03, subdivision 15; 60L.02, subdivision 3; 61B.19, subdivision 4; 151.4461B.28, subdivisions 4, 8; 67A.01; 67A.06; 67A.07; 67A.14, subdivisions 151.451, 7; 67A.18, subdivision 1; 84.0835, subdivision 3; 84.415, subdivision 151.465, by adding a subdivision; 84.63; 84.631; 84.632; 84.922, subdivision 1a; 152.184D.15, subdivision 2; 85.015, subdivision 1b; 85.053, subdivision 10; 85.46, 152.2subdivisions 3, 4, 7; 92.685; 93.481, subdivisions 1, 3, 5, 7; 94.342, subdivision 152.33; 97A.075, subdivision 1; 103G.271, subdivision 6; 103G.301, subdivisions 2, 152.43; 115.03, subdivision 5c; 115.073; 115.56, subdivision 4; 115.77, subdivision 152.51; 115A.1314, subdivision 2; 115A.557, subdivision 1; 115A.931; 116.0711; 152.6116.41, subdivision 2; 116C.834, subdivision 1; 216B.62, subdivisions 3, 4, 5, by 152.7adding a subdivision; 216H.10, subdivision 7; 216H.11; 325E.311, subdivision 152.86; 332A.02, subdivisions 5, 8, 9, 10, 13, by adding subdivisions; 332A.04, 152.9subdivision 6; 332A.08; 332A.10; 332A.11, subdivision 2; 332A.14; 332A.16; 152.10Laws 2005, chapter 156, article 2, section 45, as amended; Laws 2007, chapter 152.1157, article 1, section 4, subdivision 2; Laws 2008, chapter 363, article 5, section 152.124, subdivision 7; proposing coding for new law in Minnesota Statutes, chapters 152.1360A; 61A; 67A; 84; 86A; 93; 115A; 116; 116J; 216H; 325E; 383B; proposing 152.14coding for new law as Minnesota Statutes, chapter 332B; repealing Minnesota 152.15Statutes 2008, sections 60A.129; 61B.19, subdivision 6; 67A.14, subdivision 5; 152.1667A.17; 67A.19; Laws 2008, chapter 363, article 5, section 30; Minnesota Rules, 152.17parts 2675.2180; 2675.7100; 2675.7110; 2675.7120; 2675.7130; 2675.7140." We request the adoption of this report and repassage of the bill.House Conferees: (Signed) Jean Wagenius, Bill Hilty, Kate Knuth, Rick Hansen, Jenifer LoonSenate Conferees: (Signed) Ellen Anderson, Tom Saxhaug, Satveer Chaudhary, Dennis Frederickson, Patricia Torres Ray 153.1 We request the adoption of this report and repassage of the bill. 153.2 House Conferees:(Signed) 153.3 ..... ..... 153.4 Jean Wagenius Bill Hilty 153.5 ..... ..... 153.6 Kate Knuth Rick Hansen 153.7 ..... 153.8 Jenifer Loon 153.9 Senate Conferees:(Signed) 153.10 ..... ..... 153.11 Ellen Anderson Tom Saxhaug 153.12 ..... ..... 153.13 Satveer Chaudhary Dennis Frederickson 153.14 ..... 153.15 Patricia Torres Ray