1.1 	A bill for an act
1.2 	relating to state government; appropriating money for environment, natural 
1.3 	resources, energy, and commerce; modifying provisions related to agency service 
1.4 	requirements, land acquisition, authorized sales, railroad prairie right-of-ways, 
1.5 	county and municipality comprehensive plans, off-highway vehicles, prairie 
1.6 	plant seed production, invasive species, state recreation areas, canoe routes, 
1.7 	timber sales, mineral payments, wetlands, individual sewage treatment systems, 
1.8 	and genetically engineered organisms; providing for venison donation, plant and 
1.9 	tree pest control, community forest management, penalty orders, and local water 
1.10 	management oversight; modifying disposition of certain revenue; modifying 
1.11 	definitions; authorizing and requiring rulemaking; modifying certain license 
1.12 	requirements; modifying and establishing certain fees and surcharges; modifying 
1.13 	and creating certain accounts and funds; extending sunset of provisions related to 
1.14 	sustainable forest resources and the Mineral Coordinating Committee; modifying 
1.15 	authority of watershed district managers and soil and water conservation district 
1.16 	supervisors; providing for ditch buffers, a clean energy program, environmental 
1.17 	health tracking and biomonitoring, regulation of polybrominated diphenyl 
1.18 	ethers, classification of state forests, trail designation, forest protection, and 
1.19 	lease of certain tax-forfeited land; exempting certain exchanged land from the 
1.20 	tax-forfeited land assurance fee; establishing a wildlife management area; 
1.21 	designating state energy city; creating energy savings incentive and propane 
1.22 	prepurchase programs; modifying provisions for nuclear waste storage, public 
1.23 	utilities, cold weather rule, renewable energy research and production incentives, 
1.24 	hydrogen energy, the Legislative Electric Energy Task Force, and energy 
1.25 	planning; providing for intervenor compensation, low-income affordability 
1.26 	programs, clean resource teams, hydrogen refueling station grants, and carbon 
1.27 	sequestration studies; providing for certain power producing facilities in St. 
1.28 	Paul and Winona; modifying or adding provisions relating to vehicle protection 
1.29 	products, debt management services, long-term care insurance training, financial 
1.30 	institutions, securities regulation, mortgage originators, and low-income 
1.31 	weatherization and energy assistance programs; requiring studies and reports; 
1.32 	providing civil penalties;amending Minnesota Statutes 2006, sections 10A.01, 
1.33 	subdivision 35; 13.712, by adding a subdivision; 15.99, subdivision 3; 16A.531, 
1.34 	subdivision 1a; 17.4984, subdivision 1; 18G.03, by adding a subdivision; 
1.35 	18G.11; 45.011, subdivision 1; 46.04, subdivision 1; 46.05; 46.131, subdivision 
1.36 	2; 47.19; 47.59, subdivision 6; 47.60, subdivision 2; 47.62, subdivision 1; 
1.37 	47.75, subdivision 1; 48.15, subdivision 4; 58.04, subdivision 1; 58.05; 58.06, 
1.38 	subdivision 2, by adding a subdivision; 58.08, subdivision 3; 58.10, subdivision 
1.39 	1; 60K.55, subdivision 2; 80A.28, subdivision 1; 80A.65, subdivision 1; 
2.1 	82.24, subdivisions 1, 4; 82B.09, subdivision 1; 84.025, subdivision 9; 84.026, 
2.2 	subdivision 1; 84.027, by adding a subdivision; 84.0272, by adding a subdivision; 
2.3 	84.0855, subdivisions 1, 2; 84.777; 84.780; 84.922, subdivisions 1a, 5; 84.927, 
2.4 	subdivision 2; 84.963; 84D.02, by adding a subdivision; 84D.03, subdivision 1; 
2.5 	84D.12, subdivisions 1, 3; 84D.13, subdivision 7; 84D.14; 85.013, by adding 
2.6 	a subdivision; 85.054, by adding a subdivision; 85.32, subdivision 1; 86B.706, 
2.7 	subdivision 2; 88.01, by adding a subdivision; 88.79, subdivisions 1, 2; 88.82; 
2.8 	89.001, subdivision 8, by adding subdivisions; 89.01, subdivisions 1, 2, 4; 89.22, 
2.9 	subdivision 2; 89.51, subdivisions 1, 6, 9; 89.52; 89.53; 89.54; 89.55; 89.56, 
2.10 	subdivisions 1, 3; 89.57; 89.58; 89.59; 89.60; 89.61; 89A.11; 90.161, by adding a 
2.11 	subdivision; 93.0015, subdivision 3; 93.22, subdivision 1; 97A.045, by adding a 
2.12 	subdivision; 97A.055, subdivision 4; 97A.065, by adding a subdivision; 97A.133, 
2.13 	by adding a subdivision; 97A.205; 97A.405, subdivision 2; 97A.411, subdivision 
2.14 	1; 97A.451, subdivision 3a; 97A.465, by adding subdivisions; 97A.473, 
2.15 	subdivisions 3, 5; 97A.475, subdivisions 3, 7, 11, 12, by adding a subdivision; 
2.16 	97A.485, subdivision 7; 97B.601, subdivision 3; 97B.715, subdivision 1; 
2.17 	97B.801; 97C.081, subdivision 3; 97C.355, subdivision 2; 103B.101, by adding 
2.18 	a subdivision; 103C.321, by adding a subdivision; 103D.325, by adding a 
2.19 	subdivision; 103E.021, subdivisions 1, 2, 3, by adding a subdivision; 103E.315, 
2.20 	subdivision 8; 103E.321, subdivision 1; 103E.701, by adding a subdivision; 
2.21 	103E.705, subdivisions 1, 2, 3; 103E.728, subdivision 2; 103G.222, subdivisions 
2.22 	1, 3; 103G.2241, subdivisions 1, 2, 3, 6, 9, 11; 103G.2242, subdivisions 2, 
2.23 	2a, 9, 12, 15; 103G.2243, subdivision 2; 103G.235; 103G.301, subdivision 2; 
2.24 	115.55, subdivisions 1, 2, 3, by adding a subdivision; 116C.775; 116C.777; 
2.25 	116C.779, subdivision 1; 116C.92; 116C.94, subdivision 1; 116C.97, subdivision 
2.26 	2; 118A.03, subdivision 2; 216B.097, subdivisions 1, 3; 216B.098, subdivision 4; 
2.27 	216B.16, subdivisions 10, 15; 216B.241, subdivision 6; 216B.812, subdivisions 
2.28 	1, 2; 216C.051, subdivisions 2, 9; 216C.052, by adding a subdivision; 216C.41, 
2.29 	subdivision 3; 219.99; 239.101, subdivision 3; 282.04, subdivision 1; 325E.311, 
2.30 	subdivision 6; 325N.01; 332.54, subdivision 7; 394.23; 462.353, subdivision 2; 
2.31 	Laws 2003, chapter 128, article 1, sections 167, subdivision 1, as amended; 
2.32 	169; Laws 2006, chapter 236, article 1, section 21; proposing coding for new 
2.33 	law in Minnesota Statutes, chapters 16C; 17; 45; 58; 60K; 84; 84D; 85; 89; 97B; 
2.34 	103B; 103E; 103F; 144; 173; 216B; 216C; 325E; proposing coding for new law 
2.35 	as Minnesota Statutes, chapters 59C; 332A; repealing Minnesota Statutes 2006, 
2.36 	sections 18G.16; 46.043; 47.62, subdivision 5; 58.08, subdivision 1; 85.012, 
2.37 	subdivision 24b; 89.51, subdivision 8; 103G.2241, subdivision 8; 216B.095; 
2.38 	332.12; 332.13; 332.14; 332.15; 332.16; 332.17; 332.18; 332.19; 332.20; 332.21; 
2.39 	332.22; 332.23; 332.24; 332.25; 332.26; 332.27; 332.28; 332.29; Minnesota 
2.40 	Rules, parts 7820.1500; 7820.1600; 7820.1700; 7820.1750; 7820.1800; 
2.41 	7820.1900; 7820.2000; 7820.2100; 7820.2150; 7820.2200; 7820.2300.
2.42 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.43 	ARTICLE 1
2.44 	ENVIRONMENT AND NATURAL RESOURCES

2.45	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
2.46 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.47 	in this article.

2.48			2008
		2009
		Total
	
2.49	General
	$
	177,046,000
	$
	126,148,000
	$
	303,194,000
	
2.50
2.51	State Government Special 
Revenue
		48,000
		48,000
		96,000
	
3.1	Environmental
		62,425,000
		62,622,000
		125,047,000
	
3.2	Natural Resources
		82,211,000
		82,301,000
		164,512,000
	
3.3	Game and Fish
		89,988,000
		91,947,000
		181,935,000
	
3.4	Remediation
		11,116,000
		11,186,000
		22,302,000
	
3.5	Permanent School
		200,000
		200,000
		400,000
	
3.6	Total
	$
	423,034,000
	$
	374,452,000
	$
	797,486,000

3.7	Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
 	
3.8 	The sums shown in the columns marked "Appropriations" are appropriated to the 
3.9 	agencies and for the purposes specified in this article. The appropriations are from the 
3.10 	general fund, or another named fund, and are available for the fiscal years indicated 
3.11 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
3.12 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
3.13 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
3.14 	year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 
3.15 	year ending June 30, 2007, are effective the day following final enactment.

3.16				APPROPRIATIONS
	
3.17				Available for the Year
	
3.18				Ending June 30
	
3.19					2008
		2009

3.20	Sec. 3. POLLUTION CONTROL AGENCY

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

3.22	Appropriations by Fund
	
3.23		2008
	2009
	
3.24	General
	44,293,000
	12,632,000
	
3.25
3.26	State Government 
Special Revenue
	48,000
	48,000
	
3.27	Environmental
	62,425,000
	62,622,000
	
3.28	Remediation
	11,016,000
	11,086,000
	
3.29 	The amounts that may be spent for each 
3.30 	purpose are specified in the following 
3.31 	subdivisions.

3.32	Subd. 2.Water
 		58,053,000
		26,930,000

3.33	Appropriations by Fund
	
3.34	General
	38,656,000
	7,603,000
	
4.1
4.2	State Government 
Special Revenue
	48,000
	48,000
	
4.3	Environmental
	19,349,000
	19,279,000
	
4.4 	$2,348,000 the first year and $2,348,000 
4.5 	the second year are for the clean water 
4.6 	partnership program. Any balance remaining 
4.7 	in the first year does not cancel and 
4.8 	is available for the second year. This 
4.9 	appropriation may be used for grants to 
4.10 	local units of government for the purpose 
4.11 	of restoring impaired waters listed under 
4.12 	section 303(d) of the federal Clean Water 
4.13 	Act in accordance with adopted total 
4.14 	maximum daily loads (TMDLs), including 
4.15 	implementation of approved clean water 
4.16 	partnership diagnostic study work plans that 
4.17 	will assist in restoration of impaired waters, 
4.18 	in accordance with Minnesota Statutes, 
4.19 	chapter 114D.
4.20 	$2,324,000 the first year and $2,324,000 the 
4.21 	second year must be distributed as grants to 
4.22 	delegated counties to administer the county 
4.23 	feedlot program. Distribution of funds 
4.24 	must be as provided in Laws 2005, First 
4.25 	Special Session chapter 1, article 2, section 
4.26 	2, subdivision 2. The commissioner, in 
4.27 	consultation with the Minnesota Association 
4.28 	of County Feedlot Officers executive team, 
4.29 	may use up to five percent of the annual 
4.30 	appropriation for initiatives to enhance 
4.31 	existing delegated county feedlot programs, 
4.32 	information and education, or technical 
4.33 	assistance to reduce feedlot-related pollution 
4.34 	hazards. Any money remaining after the first 
4.35 	year is available for the second year.
5.1 	$335,000 the first year and $335,000 the 
5.2 	second year are for community technical 
5.3 	assistance and education, including grants 
5.4 	and technical assistance to communities for 
5.5 	local and basinwide water quality protection.
5.6 	$405,000 the first year and $405,000 the 
5.7 	second year are for individual sewage 
5.8 	treatment system (ISTS) administration and 
5.9 	grants. Of this amount, $86,000 each year 
5.10 	is for assistance to counties through grants 
5.11 	for ISTS program administration. Any 
5.12 	unexpended balance in the first year does not 
5.13 	cancel but is available in the second year.
5.14 	$480,000 the first year and $480,000 the 
5.15 	second year are from the environmental 
5.16 	fund to address the need for continued 
5.17 	increased activity in the areas of new 
5.18 	technology review, technical assistance 
5.19 	for local governments, and enforcement 
5.20 	under Minnesota Statutes, sections 115.55 
5.21 	to 115.58, and to complete the requirements 
5.22 	of Laws 2003, chapter 128, article 1, section 
5.23 	165. Of this amount, $48,000 each year is for 
5.24 	administration of individual septic tank fees.
5.25 	$31,009,000 the first year is to implement 
5.26 	the requirements of Minnesota Statutes, 
5.27 	chapter 114D. Of this amount, $12,634,000 
5.28 	is for completion of 20 percent of the needed 
5.29 	statewide assessments of surface water 
5.30 	quality and trends and $18,000,000 is to 
5.31 	develop TMDL's and TMDL implementation 
5.32 	plans for waters listed on the United States 
5.33 	Environmental Protection Agency approved 
5.34 	impaired waters list in accordance with 
5.35 	Minnesota Statutes, chapter 114D. The 
6.1 	agency shall complete an average of ten 
6.2 	percent of the TMDL's each year over the 
6.3 	biennium. The department shall monitor 
6.4 	and analyze endocrine disruptors in surface 
6.5 	waters in at least 20 additional sites. The data 
6.6 	must be placed on the agency's Web site.
6.7 	$1,035,000 the first year and $1,035,000 
6.8 	the second year are from the environmental 
6.9 	fund to provide regulatory services to the 
6.10 	ethanol, mining, and other developing 
6.11 	economic sectors. Priority shall be for 
6.12 	permitting new and emerging bioenergy crop 
6.13 	utilization technologies. This is a onetime 
6.14 	appropriation.
6.15 	$88,000 the first year is for the endocrine 
6.16 	disruptors report required to be completed 
6.17 	under this article.
6.18 	The commissioner shall transfer the 
6.19 	amount necessary, up to $600,000, from 
6.20 	the remediation fund to the commissioner 
6.21 	of health to conduct an evaluation under 
6.22 	Minnesota Statutes, section 115B.17, of point 
6.23 	of use water treatment units at removing 
6.24 	perfluorooctanoic acid, perfluorooctane 
6.25 	sulfonate, and perfluorobutanoic acid from 
6.26 	known concentrations of these compounds 
6.27 	in drinking water. The evaluation shall be 
6.28 	completed by December 31, 2007, and the 
6.29 	commissioner of health may contract for 
6.30 	services to complete the evaluation.
6.31 	By January 15, 2008, the commissioner shall 
6.32 	amend agency rules and, where legislative 
6.33 	action is necessary, provide recommendations 
6.34 	to the house of representatives and senate 
6.35 	divisions on environmental finance on 
7.1 	water and air fee changes that will result in 
7.2 	revenue to the environmental fund to pay for 
7.3 	regulatory services to the ethanol, mining, 
7.4 	and other developing economic sectors.
7.5 	Notwithstanding Minnesota Statutes, section 
7.6 	16A.28, the appropriations encumbered 
7.7 	under contract on or before June 30, 2009, 
7.8 	for clean water partnership, individual 
7.9 	sewage treatment systems (ISTS), Minnesota 
7.10 	River, total maximum daily loads (TMDL's), 
7.11 	stormwater contracts or grants, and local and 
7.12 	basinwide water quality protection contracts 
7.13 	or grants in this subdivision are available 
7.14 	until June 30, 2011.

7.15	Subd. 3.Air
 		11,003,000
		11,270,000

7.16	Appropriations by Fund
	
7.17	Environmental
	11,003,000
	11,270,000
	
7.18 	Up to $150,000 the first year and $150,000 
7.19 	the second year may be transferred from the 
7.20 	environmental fund to the small business 
7.21 	environmental improvement loan account 
7.22 	established in Minnesota Statutes, section 
7.23 	116.993.
7.24 	$200,000 the first year and $200,000 the 
7.25 	second year are from the environmental fund 
7.26 	for a monitoring program under Minnesota 
7.27 	Statutes, section 116.454.
7.28 	$125,000 the first year and $125,000 the 
7.29 	second year are from the environmental fund 
7.30 	for monitoring ambient air for hazardous 
7.31 	pollutants in the metropolitan area.
7.32 	$1,140,000 the first year and $1,140,000 
7.33 	the second year are from the environmental 
7.34 	fund to provide regulatory services to the 
8.1 	ethanol, mining, and other developing 
8.2 	economic sectors. Priority shall be for 
8.3 	permitting new and emerging bioenergy crop 
8.4 	utilization technologies. This is a onetime 
8.5 	appropriation.

8.6	Subd. 4.Land
 		19,081,000
		19,151,000

8.7	Appropriations by Fund
	
8.8	General
	1,000,000
	1,000,000
	
8.9	Environmental
	7,065,000
	7,065,000
	
8.10	Remediation
	11,016,000
	11,086,000
	
8.11 	All money for environmental response, 
8.12 	compensation, and compliance in the 
8.13 	remediation fund not otherwise appropriated 
8.14 	is appropriated to the commissioners of the 
8.15 	Pollution Control Agency and agriculture 
8.16 	for purposes of Minnesota Statutes, section 
8.17 	115B.20, subdivision 2, clauses (1), (2), 
8.18 	(3), (6), and (7). At the beginning of each 
8.19 	fiscal year, the two commissioners shall 
8.20 	jointly submit an annual spending plan 
8.21 	to the commissioner of finance and the 
8.22 	house and senate chairs of environment and 
8.23 	natural resources finance that maximizes the 
8.24 	utilization of resources and appropriately 
8.25 	allocates the money between the two 
8.26 	departments. This appropriation is available 
8.27 	until June 30, 2009.
8.28 	$3,616,000 the first year and $3,616,000 the 
8.29 	second year are from the petroleum tank fund 
8.30 	to be transferred to the remediation fund for 
8.31 	purposes of the leaking underground storage 
8.32 	tank program to protect the land.
8.33 	$252,000 the first year and $252,000 the 
8.34 	second year are from the remediation fund to 
8.35 	be transferred to the Department of Health for 
9.1 	private water supply monitoring and health 
9.2 	assessment costs in areas contaminated 
9.3 	by unpermitted mixed municipal solid 
9.4 	waste disposal facilities and drinking water 
9.5 	advisories and public information activities 
9.6 	for areas contaminated by hazardous releases.
9.7 	$1,000,000 each year is for environmental 
9.8 	health tracking and biomonitoring. Of this 
9.9 	amount, $900,000 each year is for transfer 
9.10 	to the Department of Health. The base 
9.11 	appropriation for this program for fiscal year 
9.12 	2010 and later is $500,000.

9.13	Subd. 5.Multimedia
 		5,872,000
		5,215,000

9.14	Appropriations by Fund
	
9.15	General
	3,006,000
	2,349,000
	
9.16	Environmental
	2,866,000
	2,866,000
	
9.17 	$825,000 the first year and $825,000 the 
9.18 	second year are from the environmental 
9.19 	fund to provide regulatory services to the 
9.20 	ethanol, mining, and other developing 
9.21 	economic sectors. Priority shall be for 
9.22 	permitting new and emerging bioenergy crop 
9.23 	utilization technologies. This is a onetime 
9.24 	appropriation.
9.25 	$400,000 the first year is a onetime 
9.26 	appropriation for a grant to the Koochiching 
9.27 	Economic Development Authority for 
9.28 	a feasibility study for a plasma torch 
9.29 	gasification facility that converts municipal 
9.30 	solid waste into energy and slag.
9.31 	$300,000 the first year is for the biomass 
9.32 	gasification facilities air emissions study for 
9.33 	the purpose of fully characterizing the air 
9.34 	emissions exerted from biomass gasification 
10.1 	facilities across a range of feedstocks. This 
10.2 	is a onetime appropriation.
10.3 	Notwithstanding Minnesota Statutes, section 
10.4 	16A.28, the appropriations encumbered 
10.5 	under contract on or before June 30, 2009, for 
10.6 	total maximum daily load (TMDL) contracts 
10.7 	or grants are available until June 30, 2011.

10.8	Subd. 6.Environmental Assistance
 		22,142,000
		22,142,000
	
10.9 	This appropriation is from the environmental 
10.10 	fund.
10.11 	$14,000,000 each year is from the 
10.12 	environmental fund for SCORE block grants 
10.13 	to counties.
10.14 	Any unencumbered grant and loan balances 
10.15 	in the first year do not cancel but are available 
10.16 	for grants and loans in the second year.
10.17 	All money deposited in the environmental 
10.18 	fund for the metropolitan solid waste 
10.19 	landfill fee in accordance with Minnesota 
10.20 	Statutes, section 473.843, and not otherwise 
10.21 	appropriated, is appropriated for the purposes 
10.22 	of Minnesota Statutes, section 473.844.
10.23 	$119,000 the first year and $119,000 the 
10.24 	second year are for environmental assistance 
10.25 	grants or loans under Minnesota Statutes, 
10.26 	section 115A.0716.
10.27 	$1,200,000 the first year and $1,200,000 
10.28 	the second year are from the environmental 
10.29 	fund first to retrofit school buses statewide, 
10.30 	including buses for preschool children, 
10.31 	and, after completion, secondly for loans to 
10.32 	small trucking firms to install equipment to 
10.33 	reduce fuel consumption. This is a onetime 
10.34 	appropriation.
11.1 	Notwithstanding Minnesota Statutes, section 
11.2 	16A.28, the appropriations encumbered 
11.3 	under contract on or before June 30, 
11.4 	2009, for environmental assistance grants 
11.5 	awarded under Minnesota Statutes, section 
11.6 	115A.0716, and for technical and research 
11.7 	assistance under Minnesota Statutes, 
11.8 	section 115A.152, technical assistance 
11.9 	under Minnesota Statutes, section 115A.52, 
11.10 	and pollution prevention assistance under 
11.11 	Minnesota Statutes, section 115D.04, are 
11.12 	available until June 30, 2011.

11.13	Subd. 7.Administrative Support
 		1,631,000
		1,680,000
	
11.14 	The commissioner may transfer money from 
11.15 	the environmental fund to the remediation 
11.16 	fund as necessary for the purposes of the 
11.17 	remediation fund under Minnesota Statutes, 
11.18 	section 116.155, subdivision 2.

11.19	Sec. 4. NATURAL RESOURCES

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

11.21	Appropriations by Fund
	
11.22		2008
	2009
	
11.23	General
	87,775,000
	83,066,000
	
11.24	Natural Resources
	 77,014,000
	77,103,000
	
11.25	Game and Fish
	89,988,000
	91,947,000
	
11.26	Remediation
	100,000
	100,000
	
11.27	Permanent School
	200,000
	200,000
	
11.28 	The amounts that may be spent for each 
11.29 	purpose are specified in the following 
11.30 	subdivisions.

11.31
11.32	Subd. 2.Land and Mineral Resources 
Management
 		11,747,000
		11,272,000

11.33	Appropriations by Fund
	
11.34	General
	6,633,000
	6,230,000
	
11.35	Natural Resources
	3,551,000
	3,447,000
	
12.1	Game and Fish
	1,363,000
	1,395,000
	
12.2	Permanent School
	200,000
	200,000
	
12.3 	$475,000 the first year and $475,000 the 
12.4 	second year are for iron ore cooperative 
12.5 	research. Of this amount, $200,000 each year 
12.6 	is from the minerals management account in 
12.7 	the natural resources fund and $275,000 each 
12.8 	year is from the general fund. $237,500 the 
12.9 	first year and $237,500 the second year are 
12.10 	available only as matched by $1 of nonstate 
12.11 	money for each $1 of state money. The 
12.12 	match may be cash or in-kind.
12.13 	$86,000 the first year and $86,000 the 
12.14 	second year are for minerals cooperative 
12.15 	environmental research, of which $43,000 
12.16 	the first year and $43,000 the second year are 
12.17 	available only as matched by $1 of nonstate 
12.18 	money for each $1 of state money. The 
12.19 	match may be cash or in-kind.
12.20 	$2,800,000 the first year and $2,696,000 
12.21 	the second year are from the minerals 
12.22 	management account in the natural resources 
12.23 	fund for use as provided in Minnesota 
12.24 	Statutes, section 93.2236, paragraph (c).
12.25 	$200,000 the first year and $200,000 the 
12.26 	second year are from the state forest suspense 
12.27 	account in the permanent school fund to 
12.28 	accelerate land exchanges, land sales, and 
12.29 	commercial leasing of school trust lands and 
12.30 	to identify, evaluate, and lease construction 
12.31 	aggregate located on school trust lands. This 
12.32 	appropriation is to be used for securing 
12.33 	maximum long-term economic return 
12.34 	from the school trust lands consistent with 
12.35 	fiduciary responsibilities and sound natural 
13.1 	resources conservation and management 
13.2 	principles.
13.3 	$15,000 the first year is for a report 
13.4 	by February 1, 2008, to the house and 
13.5 	senate committees with jurisdiction over 
13.6 	environment and natural resources on 
13.7 	proposed minimum legal and conservation 
13.8 	standards that could be applied to 
13.9 	conservation easements acquired with public 
13.10 	money.
13.11 	$1,201,000 the first year and $701,000 the 
13.12 	second year are to support the land records 
13.13 	management system. Of this amount, 
13.14 	$326,000 the first year and $326,000 the 
13.15 	second year are from the game and fish fund 
13.16 	and $375,000 the first year and $375,000 the 
13.17 	second year are from the natural resources 
13.18 	fund. The commissioner must report to 
13.19 	the legislative chairs on environmental 
13.20 	finance on the outcomes of the land records 
13.21 	management support.
13.22 	$500,000 the first year and $500,000 the 
13.23 	second year are for land asset management. 
13.24 	This is a onetime appropriation.

13.25	Subd. 3.Water Resources Management
 		15,051,000
		12,522,000

13.26	Appropriations by Fund
	
13.27	General
	14,771,000
	12,242,000
	
13.28	Natural Resources
	280,000
	280,000
	
13.29 	$310,000 the first year and $310,000 the 
13.30 	second year are for grants associated with the 
13.31 	implementation of the Red River mediation 
13.32 	agreement.
13.33 	$65,000 the first year and $65,000 the 
13.34 	second year are for a grant to the Mississippi 
13.35 	Headwaters Board for up to 50 percent of 
14.1 	the cost of implementing the comprehensive 
14.2 	plan for the upper Mississippi within areas 
14.3 	under its jurisdiction.
14.4 	$5,000 the first year and $5,000 the second 
14.5 	year are for payment to the Leech Lake Band 
14.6 	of Chippewa Indians to implement its portion 
14.7 	of the comprehensive plan for the upper 
14.8 	Mississippi.
14.9 	$200,000 the first year and $200,000 the 
14.10 	second year are for the construction of ring 
14.11 	dikes under Minnesota Statutes, section 
14.12 	103F.161. The ring dikes may be publicly 
14.13 	or privately owned. If the appropriation in 
14.14 	either year is insufficient, the appropriation 
14.15 	in the other year is available for it. The base 
14.16 	appropriation for fiscal year 2010 and later 
14.17 	is $125,000.
14.18 	$2,250,000 the first year is to support the 
14.19 	identification of impaired waters and develop 
14.20 	plans to address those impairments, as 
14.21 	required by the federal Clean Water Act, in 
14.22 	accordance with Minnesota Statutes, chapter 
14.23 	114D. This is a onetime appropriation.
14.24 	By January 15, 2008, the commissioner shall 
14.25 	commence rulemaking under Minnesota 
14.26 	Statutes, chapter 14, to update the minimum 
14.27 	shoreland standards in Minnesota Rules, 
14.28 	chapter 6120.
14.29 	$60,000 the first year is a onetime 
14.30 	appropriation to the commissioner of natural 
14.31 	resources to conduct a feasibility study 
14.32 	in conjunction with U.S. Army Corps of 
14.33 	Engineers on the foundation and hydraulics 
14.34 	of the Rapidan Dam in Blue Earth County. 
14.35 	This appropriation must be equally matched 
15.1 	by Blue Earth County, and is available until 
15.2 	expended.
15.3 	$500,000 in fiscal year 2008 is for addressing 
15.4 	surface and groundwater issues related to 
15.5 	the development and expansion of ethanol 
15.6 	production.

15.7	Subd. 4.Forest Management
 		44,495,000
		43,393,000

15.8	Appropriations by Fund
	
15.9	General
	24,755,000
	24,836,000
	
15.10	Natural Resources
	19,483,000
	18,293,000
	
15.11	Game and Fish
	257,000
	264,000
	
15.12 	$7,217,000 the first year and $7,217,000 
15.13 	the second year are for prevention, 
15.14 	presuppression, and suppression costs of 
15.15 	emergency firefighting and other costs 
15.16 	incurred under Minnesota Statutes, section 
15.17 	88.12. If the appropriation for either 
15.18 	year is insufficient to cover all costs of 
15.19 	presuppression and suppression, the amount 
15.20 	necessary to pay for these costs during the 
15.21 	biennium is appropriated from the general 
15.22 	fund.
15.23 	By November 15 of each year, the 
15.24 	commissioner of natural resources shall 
15.25 	submit a report to the chairs of the house 
15.26 	and senate committees and divisions having 
15.27 	jurisdiction over environment and natural 
15.28 	resources finance, identifying all firefighting 
15.29 	costs incurred and reimbursements received 
15.30 	in the prior fiscal year. These appropriations 
15.31 	may not be transferred. Any reimbursement 
15.32 	of firefighting expenditures made to the 
15.33 	commissioner from any source other than 
15.34 	federal mobilizations shall be deposited into 
15.35 	the general fund.
16.1 	$17,983,000 the first year and $18,293,000 
16.2 	the second year are from the forest 
16.3 	management investment account in the 
16.4 	natural resources fund for only the purposes 
16.5 	specified in Minnesota Statutes, section 
16.6 	89.039, subdivision 2.
16.7 	Of this amount:
16.8 	(1) $750,000 each year is for additional staff 
16.9 	to enhance timber sales;
16.10 	(2) $1,000,000 each year is for forest 
16.11 	improvements;
16.12 	(3) $1,100,000 each year is for forest road 
16.13 	maintenance;
16.14 	(4) $600,000 each year is for the ecological 
16.15 	classification system on state forest lands;
16.16 	(5) $350,000 each year is for the prevention 
16.17 	of invasive species on state forest lands; and
16.18 	(6) $400,000 each year is for the re-inventory 
16.19 	of state forest lands.
16.20 	Money for forest road maintenance is 
16.21 	onetime.
16.22 	$780,000 the first year and $780,000 the 
16.23 	second year are for the Forest Resources 
16.24 	Council for implementation of the 
16.25 	Sustainable Forest Resources Act. 
16.26 	$40,000 the first year is for the Forest 
16.27 	Resources Council to provide a grant to 
16.28 	the University of Minnesota to prepare a 
16.29 	statewide plan to address the fragmentation 
16.30 	and parcelization of large blocks of forest 
16.31 	land in the state.
16.32 	$200,000 in fiscal year 2008 is for a grant 
16.33 	to the Forest Resources Research Advisory 
17.1 	Committee to provide direction on research 
17.2 	topics recommended by the governor's task 
17.3 	force on the competitiveness of Minnesota's 
17.4 	primary forest products industry.
17.5 	$350,000 the first year and $350,000 the 
17.6 	second year are for the FORIST timber 
17.7 	management information system, other 
17.8 	information systems, and for increased 
17.9 	forestry management. The amount in the 
17.10 	second year is also available in the first year.
17.11 	$257,000 the first year and $264,000 the 
17.12 	second year are from the game and fish 
17.13 	fund to implement ecological classification 
17.14 	systems (ECS) standards on forested 
17.15 	landscapes. This appropriation is from 
17.16 	revenue deposited in the game and fish fund 
17.17 	under Minnesota Statutes, section 297A.94, 
17.18 	paragraph (e), clause (1).
17.19 	$110,000 the first year is to develop and 
17.20 	implement a statewide information and 
17.21 	education campaign regarding the statewide 
17.22 	ban on the transport, storage, or use of 
17.23 	nonapproved firewood on state-administered 
17.24 	lands.
17.25 	$1,500,000 the first year is from the forest 
17.26 	management investment account in the 
17.27 	natural resources fund for the purposes of 
17.28 	section 157. This is a onetime appropriation.
17.29 	$75,000 the first year is to the Forest 
17.30 	Resources Council for a task force on 
17.31 	forest protection and $75,000 the second 
17.32 	year is appropriated to the commissioner 
17.33 	for grants to cities, counties, townships, 
17.34 	special recreation areas, and park and 
17.35 	recreation boards in cities of the first class 
18.1 	for the identification, removal, disposal, and 
18.2 	replacement of dead or dying shade trees 
18.3 	lost to forest pests or disease. For purposes 
18.4 	of this section, "shade tree" means a woody 
18.5 	perennial grown primarily for aesthetic or 
18.6 	environmental purposes with minimal to 
18.7 	residual timber value. The commissioner 
18.8 	shall consult with municipalities; park and 
18.9 	recreation boards in cities of the first class; 
18.10 	nonprofit organizations; and other interested 
18.11 	parties in developing eligibility criteria.
18.12 	$200,000 in fiscal year 2008 is for a grant 
18.13 	to the Natural Resources Research Institute 
18.14 	for silvicultural research to improve the 
18.15 	quality and quantity of timber fiber. The 
18.16 	appropriation must be matched in the amount 
18.17 	of $200,000 in cash or in-kind contributions 
18.18 	from the forest products industry members of 
18.19 	the Minnesota Forest Productivity Research 
18.20 	Cooperative.
18.21 	$1,000,000 the first year and $1,000,000 
18.22 	the second year are to support additional 
18.23 	technical and cost-share assistance to 
18.24 	nonindustrial private forest (NIPF) 
18.25 	landowners. The base appropriation in fiscal 
18.26 	year 2010 and later is $500,000.
18.27 	$200,000 the first year and $200,000 the 
18.28 	second year are to address escalating 
18.29 	land asset management demands, such as 
18.30 	boundary disputes, access easements, and 
18.31 	sale, exchange, and acquisition of forest 
18.32 	lands.

18.33	Subd. 5.Parks and Recreation Management
 		35,324,000
		36,319,000

19.1	Appropriations by Fund
	
19.2	General
	20,743,000
	21,283,000
	
19.3	Natural Resources
	14,581,000
	15,036,000
	
19.4 	$640,000 the first year and $640,000 the 
19.5 	second year are from the water recreation 
19.6 	account in the natural resources fund for state 
19.7 	park water access projects.
19.8 	$150,000 in the first year and $150,000 in the 
19.9 	second year are for additional interpretative 
19.10 	services.
19.11 	$3,996,000 the first year and $3,996,000 the 
19.12 	second year are from the natural resources 
19.13 	fund for state park and recreation area 
19.14 	operations. This appropriation is from the 
19.15 	revenue deposited in the natural resources 
19.16 	fund under Minnesota Statutes, section 
19.17 	297A.94, paragraph (e), clause (2).
19.18 	$10,000 in the first year is for payment 
19.19 	of expenses of the Cuyuna Country State 
19.20 	Recreation Area Citizens Advisory Council.
19.21 	The appropriation in Laws 2003, chapter 
19.22 	128, article 1, section 5, subdivision 6, from 
19.23 	the water recreation account in the natural 
19.24 	resources fund for a cooperative project with 
19.25 	the United States Army Corps of Engineers 
19.26 	to develop the Mississippi Whitewater Park 
19.27 	is available until June 30, 2009. The project 
19.28 	must be designed to prevent the spread of 
19.29 	aquatic invasive species.
19.30 	$500,000 the first year and $750,000 the 
19.31 	second year are from the natural resources 
19.32 	fund for increased park maintenance 
19.33 	work, resource management projects, and 
19.34 	conservation education for park users.

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

20.2	Appropriations by Fund
	
20.3	General
	2,538,000
	2,568,000
	
20.4	Natural Resources
	25,600,000
	25,730,000
	
20.5	Game and Fish
	2,119,000
	2,194,000
	
20.6 	$8,424,000 the first year and $8,424,000 
20.7 	the second year are from the snowmobile 
20.8 	trails and enforcement account in the natural 
20.9 	resources fund for snowmobile grants-in-aid. 
20.10 	The additional money under this item may 
20.11 	be used for new grant-in-aid trails. Any 
20.12 	unencumbered balance does not cancel at the 
20.13 	end of the first year and is available for the 
20.14 	second year.
20.15 	$1,175,000 the first year and $1,325,000 the 
20.16 	second year are from the natural resources 
20.17 	fund for off-highway vehicle grants-in-aid. 
20.18 	Of this amount, $825,000 the first year and 
20.19 	$1,075,000 the second year are from the 
20.20 	all-terrain vehicle account; $150,000 each 
20.21 	year is from the off-highway motorcycle 
20.22 	account; and $200,000 the first year and 
20.23 	$100,000 the second year are from the 
20.24 	off-road vehicle account. Any unencumbered 
20.25 	balance does not cancel at the end of the first 
20.26 	year and is available for the second year.
20.27 	$261,000 the first year and $261,000 the 
20.28 	second year are from the water recreation 
20.29 	account in the natural resources fund for a 
20.30 	safe harbor program on Lake Superior.
20.31 	$742,000 the first year and $760,000 
20.32 	the second year are from the natural 
20.33 	resources fund for state trail operations 
20.34 	and maintenance. The money may be used 
20.35 	for trail maintenance, signage, mapping, 
21.1 	interpretation, native prairie restoration 
21.2 	using best management practices, and 
21.3 	maintenance of nonmotorized forest trails. 
21.4 	This appropriation is from the revenue 
21.5 	deposited in the natural resources fund 
21.6 	under Minnesota Statutes, section 297A.94, 
21.7 	paragraph (e), clause (2).
21.8 	$655,000 the first year and $655,000 the 
21.9 	second year are from the natural resources 
21.10 	fund for trail grants to local units of 
21.11 	government on land to be maintained for 
21.12 	at least 20 years for the purposes of the 
21.13 	grant. This appropriation is from the revenue 
21.14 	deposited in the natural resources fund 
21.15 	under Minnesota Statutes, section 297A.94, 
21.16 	paragraph (e), clause (4).
21.17 	$150,000 the first year and $150,000 the 
21.18 	second year are from the all-terrain vehicle 
21.19 	account for two all-terrain vehicle trail 
21.20 	specialists to assist and consult with on 
21.21 	all-terrain vehicle grant-in-aid education and 
21.22 	training for sustainable trail development and 
21.23 	maintenance, as well as providing training 
21.24 	for public and private sector trail monitoring. 
21.25 	The specialists may assist in the evaluation 
21.26 	of grant-in-aid trail proposals, but not in the 
21.27 	promotion of new trails.
21.28 	$1,965,000 the first year and $2,040,000 
21.29 	the second year are from the game and fish 
21.30 	fund for expenditures on water access sites 
21.31 	according to the requirements of the federal 
21.32 	sport and fish restoration program.
21.33 	Money appropriated under Laws 2005, First 
21.34 	Special Session chapter 1, article 2, section 
21.35 	11, subdivision 6, paragraph (h), for the Paul 
22.1 	Bunyan State Trail connection is available 
22.2 	until June 30, 2008.
22.3 	$400,000 each year is for operation and 
22.4 	maintenance of nonmotorized trails within 
22.5 	state forests. This is a onetime appropriation.
22.6 	$75,000 each year is for additional wild and 
22.7 	scenic rivers program activities.
22.8 	$120,000 the first year is from the 
22.9 	water recreation account in the natural 
22.10 	resources fund to cooperate with local 
22.11 	units of government in marking routes and 
22.12 	designating river accesses and campsites 
22.13 	under Minnesota Statutes, section 85.32. 
22.14 	This is a onetime appropriation and available 
22.15 	until spent.
22.16 	The appropriation in Laws 2005, First 
22.17 	Special Session chapter 1, article 2, section 
22.18 	3, subdivision 6, from the lottery in lieu 
22.19 	account in the natural resources fund for 
22.20 	trail grants to local units of government, is 
22.21 	available until June 30, 2009.

22.22	Subd. 7.Fish and Wildlife Management
 		67,191,000
		68,533,000

22.23	Appropriations by Fund
	
22.24	General
	3,459,000
	3,479,000
	
22.25	Natural Resources
	1,876,000
	1,876,000
	
22.26	Game and Fish
	61,856,000
	63,178,000
	
22.27 	$410,000 the first year and $418,000 the 
22.28 	second year are for resource population 
22.29 	surveys in the 1837 treaty area. Of this 
22.30 	amount, $274,000 the first year and $288,000 
22.31 	the second year are from the game and fish 
22.32 	fund.
22.33 	$1,790,000 the first year and $1,790,000 the 
22.34 	second year are from the wildlife acquisition 
22.35 	surcharge account for only the purposes of 
23.1 	land costs as specified in Minnesota Statutes, 
23.2 	section 97A.071, subdivision 2a. This 
23.3 	appropriation is available until spent.
23.4 	$8,061,000 the first year and $8,167,000 
23.5 	the second year are from the heritage 
23.6 	enhancement account in the game and 
23.7 	fish fund only for activities that improve, 
23.8 	enhance, or protect fish and wildlife 
23.9 	resources as specified in Minnesota Statutes, 
23.10 	section 297A.94, paragraph (e), clause (1). 
23.11 	Notwithstanding Minnesota Statutes, section 
23.12 	297A.94, money under this paragraph may 
23.13 	be used for expanding hunter and angler 
23.14 	recruitment and retention and public land 
23.15 	user facilities. Of this amount, $1,175,000 
23.16 	each year is for preserving, restoring, and 
23.17 	enhancing grassland/wetland complexes.
23.18 	Notwithstanding Minnesota Statutes, section 
23.19 	84.943, $13,000 the first year and $13,000 
23.20 	the second year from the critical habitat 
23.21 	private sector matching account may be used 
23.22 	to publicize the critical habitat license plate 
23.23 	match program.
23.24 	$830,000 the first year and $830,000 the 
23.25 	second year are from the trout and salmon 
23.26 	management account for only the purposes 
23.27 	specified in Minnesota Statutes, section 
23.28 	97A.075, subdivision 3.
23.29 	$1,353,000 the first year and $1,353,000 
23.30 	the second year are from the deer habitat 
23.31 	improvement account for only the purposes 
23.32 	specified in Minnesota Statutes, section 
23.33 	97A.075, subdivision 1, paragraph (b).
23.34 	$715,000 the first year and $715,000 the 
23.35 	second year are from the deer and bear 
24.1 	management account for only the purposes 
24.2 	specified in Minnesota Statutes, section 
24.3 	97A.075, subdivision 1, paragraph (c).
24.4 	$700,000 the first year and $700,000 the 
24.5 	second year are from the waterfowl habitat 
24.6 	improvement account for only the purposes 
24.7 	specified in Minnesota Statutes, section 
24.8 	97A.075, subdivision 2.
24.9 	$875,000 the first year and $875,000 the 
24.10 	second year are from the pheasant habitat 
24.11 	improvement account for only the purposes 
24.12 	specified in Minnesota Statutes, section 
24.13 	97A.075, subdivision 4.
24.14 	$172,000 the first year and $172,000 the 
24.15 	second year are from the wild turkey 
24.16 	management account for only the purposes 
24.17 	specified in Minnesota Statutes, section 
24.18 	97A.075, subdivision 5. Of this amount, 
24.19 	$8,000 the first year and $8,000 the second 
24.20 	year are appropriated from the game and 
24.21 	fish fund for transfer to the wild turkey 
24.22 	management account for purposes specified 
24.23 	in Minnesota Statutes, section 97A.075, 
24.24 	subdivision 5.
24.25 	$108,000 the first year and $108,000 the 
24.26 	second year are from the game and fish 
24.27 	fund for costs associated with administering 
24.28 	fishing contest permits.
24.29 	$186,000 the first year and $132,000 the 
24.30 	second year are to accelerate wildlife 
24.31 	health programs. $54,000 in the first 
24.32 	year is for fencing cattle-feeding areas in 
24.33 	bovine tuberculosis control zones, under the 
24.34 	emergency deterrent materials assistance 
24.35 	program in Minnesota Statutes, section 
25.1 	97A.028, subdivision 3. This appropriation 
25.2 	is available until June 30, 2009. $61,000 of 
25.3 	this amount is permanent.
25.4 	$575,000 the first year and $575,000 the 
25.5 	second year are for preserving, restoring, and 
25.6 	enhancing grassland/wetland complexes on 
25.7 	public or private lands.
25.8 	The commissioner must report to the 
25.9 	legislative chairs on environmental finance 
25.10 	for money appropriated in this subdivision on 
25.11 	grassland/wetland complexes with specific 
25.12 	outcomes, including acres of wetlands and 
25.13 	prairie grasses and forbs of a local ecotype 
25.14 	preserved, restored, and enhanced during the 
25.15 	2008-2009 biennium.
25.16 	$150,000 the first year and $150,000 the 
25.17 	second year are from the game and fish fund 
25.18 	for the roadsides for wildlife program.
25.19 	$175,000 in the first year and $175,000 in the 
25.20 	second year are for grants to Let's Go Fishing 
25.21 	of Minnesota to promote opportunities for 
25.22 	fishing. The grants must be matched with 
25.23 	cash or in-kind contributions from nonstate 
25.24 	sources. It is a condition of acceptance of 
25.25 	this appropriation that Let's Go Fishing of 
25.26 	Minnesota must submit a work program 
25.27 	and annual progress reports in the form and 
25.28 	manner determined by the commissioner of 
25.29 	natural resources to the Budgetary Oversight 
25.30 	Committee. The work program must identify 
25.31 	capital expenditures and leases over $2,000 
25.32 	and annual reports must describe the use 
25.33 	of that capital equipment throughout its 
25.34 	useful life. None of the money provided 
25.35 	may be spent unless the commissioner 
26.1 	has approved the work program. This is a 
26.2 	onetime appropriation.
26.3 	$90,000 each year from the game and fish 
26.4 	fund is to staff the Budgetary Oversight 
26.5 	Committee.
26.6 	By November 15, 2008, the commissioner, 
26.7 	in consultation with the Budgetary Oversight 
26.8 	Committee, established in Minnesota 
26.9 	Statutes, section 97A.055, subdivision 4b, 
26.10 	paragraph (c), shall report to the house of 
26.11 	representatives and senate policy and finance 
26.12 	committees and divisions with jurisdiction 
26.13 	over natural resources on game and fish fund 
26.14 	receipt and expenditure imbalances between 
26.15 	hunting-related and fishing-related activities. 
26.16 	The report shall include, but is not limited to:
26.17 	(1) a table showing the allocation of game 
26.18 	and fish fund receipts and expenditures 
26.19 	related to fishing and hunting activities for 
26.20 	fiscal years 1989 to 2007 and projected 
26.21 	receipts and expenditures for fiscal years 
26.22 	2008 and 2009;
26.23 	(2) recommendations for short-term changes 
26.24 	to correct any imbalances; and
26.25 	(3) recommendations for long-term 
26.26 	changes that will ensure that fishing license 
26.27 	revenue is adequate to cover fishing-related 
26.28 	expenditures and hunting license revenue 
26.29 	is adequate to cover hunting-related 
26.30 	expenditures.
26.31 	Notwithstanding Minnesota Statutes, section 
26.32 	16A.28, the appropriations encumbered 
26.33 	under contract on or before June 30, 2009, for 
26.34 	aquatic restoration grants and wildlife habitat 
26.35 	grants are available until June 30, 2010.
27.1 	The commissioner of finance shall transfer 
27.2 	$160,000 in fiscal year 2008 to the special 
27.3 	revenue fund for the account under Minnesota 
27.4 	Statutes, section 97A.065, subdivision 6.

27.5	Subd. 8.Ecological Services
 		16,175,000
		14,476,000

27.6	Appropriations by Fund
	
27.7	General
	8,597,000
	6,531,000
	
27.8	Natural Resources
	3,696,000
	3,994,000
	
27.9	Game and Fish
	3,882,000
	3,951,000
	
27.10 	$1,194,000 the first year and $1,227,000 the 
27.11 	second year are from the nongame wildlife 
27.12 	management account in the natural resources 
27.13 	fund for the purpose of nongame wildlife 
27.14 	management.
27.15 	Notwithstanding Minnesota Statutes, 
27.16 	section 290.431, $100,000 the first year 
27.17 	and $100,000 the second year may be used 
27.18 	for nongame information, education, and 
27.19 	promotion.
27.20 	$1,612,000 the first year and $1,636,000 
27.21 	the second year are from the heritage 
27.22 	enhancement account in the game and 
27.23 	fish fund for only the purposes specified 
27.24 	in Minnesota Statutes, section 297A.94, 
27.25 	paragraph (e), clause (1).
27.26 	The commissioner must report to the 
27.27 	legislative chairs on environmental finance 
27.28 	for money appropriated in this subdivision on 
27.29 	grassland/wetland complexes with specific 
27.30 	outcomes, including acres of wetlands and 
27.31 	prairie grasses and forbs of a local ecotype 
27.32 	preserved, restored, and enhanced during the 
27.33 	2008-2009 biennium.
27.34 	$2,938,000 in the first year and $4,385,000 
27.35 	in the second year, of which $1,968,000 the 
28.1 	first year and $2,195,000 the second year 
28.2 	are from the invasive species account in the 
28.3 	natural resources fund for law enforcement 
28.4 	and water access inspection to prevent the 
28.5 	spread of invasive species, grants to manage 
28.6 	invasive plants in public waters, technical 
28.7 	assistance to grant applicants for improving 
28.8 	lake quality, and management of terrestrial 
28.9 	invasive species on state-administered lands. 
28.10 	Priority shall be given to preventing the 
28.11 	spread of aquatic invertebrates, including, 
28.12 	but not limited to, zebra mussels, spiny 
28.13 	waterflea, and round goby. An applicant 
28.14 	for a grant to manage invasive plants in 
28.15 	public waters must have a workable plan for 
28.16 	improving water quality and reducing the 
28.17 	need for additional treatment. Grants may 
28.18 	not be made for chemicals that are likely 
28.19 	endocrine disruptors. A plan to prevent the 
28.20 	introduction of asian carp into Minnesota 
28.21 	waters must be made available to the public 
28.22 	by November 1, 2007.
28.23 	$125,000 the first year is to support a 
28.24 	technical advisory committee and for land 
28.25 	management units that manage grass lands 
28.26 	in order to develop plans to optimize 
28.27 	native prairie seed harvest and replanting 
28.28 	on state-owned lands. The work must 
28.29 	use best management practices with an 
28.30 	outcome of ensuring the survival of the 
28.31 	native prairie remaining in Minnesota and to 
28.32 	estimate the value of the seeds. Maximizing 
28.33 	seed harvest may include allowing seed 
28.34 	producers to keep a portion of the seed as 
28.35 	compensation for supplying equipment and 
28.36 	labor. The Department of Natural Resources 
29.1 	in cooperation with the Department of 
29.2 	Agriculture and the Board of Water and 
29.3 	Soil Resources shall establish the technical 
29.4 	advisory committee which has the expertise 
29.5 	to develop (1) criteria to identify public 
29.6 	and private marginal lands which could be 
29.7 	used to produce native prairie seeds of a 
29.8 	local eco-type or restore native prairies that 
29.9 	could be used to produce clean energy, (2) 
29.10 	guidelines for production that ensure high 
29.11 	carbon sequestration, protection of wildlife 
29.12 	and waters, and minimization of inputs and 
29.13 	that do not compromise the survival of the 
29.14 	native prairie remaining in Minnesota, and 
29.15 	(3) recommendations for incentives that will 
29.16 	result in the production of native prairie seeds 
29.17 	of a local eco-type or restore native prairies. 
29.18 	In addition to agency members, the advisory 
29.19 	committee shall have one member from 
29.20 	each of two statewide farm organizations, 
29.21 	one member from a statewide sustainable 
29.22 	farmer organization, one member each from 
29.23 	three statewide rural economic development 
29.24 	organizations, one member each from three 
29.25 	statewide environmental organizations, and 
29.26 	one member each from three statewide 
29.27 	wildlife or conservation organizations. 
29.28 	No person registered as a lobbyist under 
29.29 	Minnesota Statutes, section 10A.03, may 
29.30 	serve on the technical advisory committee. 
29.31 	The technical committee shall work with the 
29.32 	NextGen Energy Board to develop a clean 
29.33 	energy program. A report on outcomes from 
29.34 	the technical committee is due December 
29.35 	15, 2007, to the legislative finance chairs on 
29.36 	environment and natural resources.
30.1 	$50,000 in the first year is for the 
30.2 	commissioner, in consultation with the 
30.3 	Environmental Quality Board, to report to 
30.4 	the house and senate committees having 
30.5 	jurisdiction over environmental policy 
30.6 	and finance by February 1, 2008, on the 
30.7 	Mississippi River critical area program. The 
30.8 	report shall include the status of critical 
30.9 	area plans, zoning ordinances, the number 
30.10 	and types of revisions anticipated, and the 
30.11 	nature and number of variances sought. The 
30.12 	report shall include recommendations that 
30.13 	adequately protect and manage the aesthetic 
30.14 	integrity and natural environment of the river 
30.15 	corridor.
30.16 	$2,250,000 the first year is to support the 
30.17 	identification of impaired waters and develop 
30.18 	plans to address those impairments, as 
30.19 	required by the federal Clean Water Act, in 
30.20 	accordance with Minnesota Statutes, chapter 
30.21 	114D. This is a onetime appropriation.
30.22 	$477,000 the first year and $477,000 the 
30.23 	second year are for the reinvest in Minnesota 
30.24 	programs of game and fish, critical habitat, 
30.25 	and wetlands established under Minnesota 
30.26 	Statutes, section 84.95, subdivision 2.
30.27 	$350,000 the first year is for a grant to 
30.28 	the International Wolf Center for building 
30.29 	renovations.
30.30 	$500,000 the first year is for a grant to the 
30.31 	city of Wabasha for programming at the 
30.32 	National Bald Eagle Center.
30.33 	$100,000 the first year is for a grant to the 
30.34 	Wildlife Rehabilitation Center of Minnesota 
30.35 	to retire loans incurred by the center for 
31.1 	construction of its facility in the city of 
31.2 	Roseville and to complete educational 
31.3 	technology infrastructure at the center.
31.4 	$115,000 in the first year and $116,000 in the 
31.5 	second year is for the Project Wild program. 
31.6 	Of this amount, $35,000 in the first year 
31.7 	and $36,000 in the second year are from the 
31.8 	natural resources fund, and $40,000 in the 
31.9 	first year and $40,000 in the second year are 
31.10 	from the game and fish fund.
31.11 	$150,000 each year is from the all-terrain 
31.12 	vehicle account in the natural resources fund 
31.13 	for developing and maintaining all-terrain 
31.14 	vehicle trails and environmental review.

31.15	Subd. 9.Enforcement
 		30,549,000
		31,596,000

31.16	Appropriations by Fund
	
31.17	General
	3,564,000
	3,648,000
	
31.18	Natural Resources
	7,463,000
	7,963,000
	
31.19	Game and Fish
	19,422,000
	19,885,000
	
31.20	Remediation
	100,000
	100,000
	
31.21 	Until June 30, 2009, a conservation officer 
31.22 	must be stationed at Mississippi Headwaters 
31.23 	State Forest to work with local jurisdictions 
31.24 	in enforcing state law along the Mississippi 
31.25 	River from Lake Itasca downstream to Lake 
31.26 	Bemidji and in the Bemidji region.
31.27 	$1,082,000 the first year and $1,082,000 the 
31.28 	second year are from the water recreation 
31.29 	account in the natural resources fund for 
31.30 	grants to counties for boat and water safety.
31.31 	$100,000 the first year and $100,000 the 
31.32 	second year are from the remediation fund 
31.33 	for solid waste enforcement activities under 
31.34 	Minnesota Statutes, section 116.073.
32.1 	$315,000 the first year and $315,000 the 
32.2 	second year are from the snowmobile 
32.3 	trails and enforcement account in the 
32.4 	natural resources fund for grants to local 
32.5 	law enforcement agencies for snowmobile 
32.6 	enforcement activities.
32.7 	$1,164,000 the first year and $1,164,000 
32.8 	the second year are from the heritage 
32.9 	enhancement account in the game and 
32.10 	fish fund for only activities that improve, 
32.11 	enhance, or protect fish and wildlife resources 
32.12 	specified in Minnesota Statutes, section 
32.13 	297A.94, paragraph (e), clause (1).
32.14 	Overtime must be distributed to conservation 
32.15 	officers at historical levels; however, a 
32.16 	reasonable reduction or addition may be 
32.17 	made to the officer's allocation, if justified, 
32.18 	based on an individual officer's workload. If 
32.19 	funding for enforcement is reduced because 
32.20 	of an unallotment, the overtime bank may be 
32.21 	reduced in proportion to reductions made in 
32.22 	other areas of the budget.
32.23 	$325,000 the first year and $325,000 
32.24 	the second year are from the natural 
32.25 	resources fund for grants to county law 
32.26 	enforcement agencies for off-highway 
32.27 	vehicle enforcement and public education 
32.28 	activities based on off-highway vehicle use 
32.29 	in the county. Of this amount, $313,000 each 
32.30 	year is from the all-terrain vehicle account; 
32.31 	$11,000 each year is from the off-highway 
32.32 	motorcycle account; and $1,000 each year 
32.33 	is from the off-road vehicle account. The 
32.34 	county enforcement agencies may use 
32.35 	money received under this appropriation 
33.1 	to make grants to other local enforcement 
33.2 	agencies within the county that have a high 
33.3 	concentration of off-highway vehicle use. Of 
33.4 	this appropriation, $25,000 each year is for 
33.5 	administration of these grants.
33.6 	$250,000 the first year and $250,000 the 
33.7 	second year are from the all-terrain vehicle 
33.8 	account for grants to qualifying organizations 
33.9 	to assist in safety and environmental 
33.10 	education and monitoring trails on public 
33.11 	lands under new Minnesota Statutes, 
33.12 	section 84.9011. Grants issued under this 
33.13 	paragraph: (1) must be issued through a 
33.14 	formal agreement with the organization; 
33.15 	and (2) must not be used as a substitute for 
33.16 	traditional spending by the organization. By 
33.17 	December 15, each year, an organization 
33.18 	receiving a grant under this paragraph shall 
33.19 	report to the commissioner with details 
33.20 	on expenditures from the grant. Of this 
33.21 	appropriation, $25,000 each year is for 
33.22 	administration of these grants.
33.23 	The commissioner must publicize 
33.24 	opportunities for conservation officer 
33.25 	employment and recruit, when possible, 
33.26 	conservation officer candidates from the 
33.27 	biological sciences departments at colleges 
33.28 	and universities.

33.29	Subd. 10.Operations Support
 		4,288,000
		3,813,000

33.30	Appropriations by Fund
	
33.31	General
	2,715,000
	2,249,000
	
33.32	Natural Resources
	484,000
	484,000
	
33.33	Game and Fish
	1,089,000
	1,080,000
	
34.1 	$38,000 in the first year is from the game and 
34.2 	fish fund for the study on the natural stands 
34.3 	of wild rice required in this article.
34.4 	$270,000 the first year and $270,000 the 
34.5 	second year are from the natural resources 
34.6 	fund for grants to be divided equally between 
34.7 	the city of St. Paul for the Como Zoo 
34.8 	and Conservatory and the city of Duluth 
34.9 	for the Duluth Zoo. This appropriation 
34.10 	is from the revenue deposited to the fund 
34.11 	under Minnesota Statutes, section 297A.94, 
34.12 	paragraph (e), clause (5).
34.13 	$55,000 in the first year and $7,000 in the 
34.14 	second year are to be transferred to the 
34.15 	Environmental Quality Board to fulfill the 
34.16 	requirement of Minnesota Statutes, sections 
34.17 	116C.92 and 116C.94.
34.18 	$475,000 the first year is a onetime 
34.19 	appropriation for terrestrial and geologic 
34.20 	carbon sequestration reports and studies in 
34.21 	this article. Of this amount, the commissioner 
34.22 	shall make payments of $385,000 to the 
34.23 	Board of Regents of the University of 
34.24 	Minnesota for the purposes of terrestrial 
34.25 	carbon sequestration activities, and $90,000 
34.26 	to the Minnesota Geological Survey for the 
34.27 	purposes of geologic carbon sequestration 
34.28 	assessment.

34.29
34.30	Sec. 5. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	32,153,000
	$
	17,482,000
	
34.31 	$4,102,000 the first year and $4,102,000 the 
34.32 	second year are for natural resources block 
34.33 	grants to local governments. The board may 
34.34 	reduce the amount of the natural resources 
34.35 	block grant to a county by an amount equal to 
35.1 	any reduction in the county's general services 
35.2 	allocation to a soil and water conservation 
35.3 	district from the county's previous year 
35.4 	allocation when the board determines that 
35.5 	the reduction was disproportionate. Grants 
35.6 	must be matched with a combination of local 
35.7 	cash or in-kind contributions. The base grant 
35.8 	portion related to water planning must be 
35.9 	matched by an amount that would be raised 
35.10 	by a levy under Minnesota Statutes, section 
35.11 	103B.3369.
35.12 	$3,566,000 the first year and $3,566,000 
35.13 	the second year are for grants requested 
35.14 	by soil and water conservation districts for 
35.15 	general purposes, nonpoint engineering, 
35.16 	and implementation of the reinvest in 
35.17 	Minnesota conservation reserve program. 
35.18 	Upon approval of the board, expenditures 
35.19 	may be made from these appropriations for 
35.20 	supplies and services benefiting soil and 
35.21 	water conservation districts. Any district 
35.22 	requesting a grant under this paragraph 
35.23 	shall create and maintain a Web page that 
35.24 	publishes, at a minimum, its annual plan, 
35.25 	annual report, annual audit, and annual 
35.26 	budget, including membership dues and 
35.27 	meeting notices and minutes.
35.28 	$3,285,000 the first year and $3,285,000 
35.29 	the second year are for grants to soil and 
35.30 	water conservation districts for cost-sharing 
35.31 	contracts for erosion control and water 
35.32 	quality management. Of this amount, at least 
35.33 	$1,200,000 the first year and $1,200,000 the 
35.34 	second year are for grants for cost-sharing 
35.35 	contracts to establish and maintain vegetation 
35.36 	buffers of restored native prairie and restored 
36.1 	prairie using seeds of a local ecotype region. 
36.2 	$300,000 the first year and $300,000 the 
36.3 	second year are available to begin county 
36.4 	cooperative weed management programs 
36.5 	on natural lands and private lands enrolled 
36.6 	in state and federal conservation programs 
36.7 	and to restore native plants in selected 
36.8 	invasive species management sites by 
36.9 	providing local native seeds and plants 
36.10 	to landowners for implementation. This 
36.11 	appropriation is available until expended. If 
36.12 	the appropriation in either year is insufficient, 
36.13 	the appropriation in the other year is available 
36.14 	for it. Notwithstanding Minnesota Statutes, 
36.15 	section 103C.501, any balance in the board's 
36.16 	cost-share program that remains from the 
36.17 	fiscal year 2007 appropriation is available 
36.18 	in an amount up to $2,000 for a grant to 
36.19 	the Faribault Soil and Water Conservation 
36.20 	District to pay for erosion repair on the Blue 
36.21 	Earth River, and up to $40,000 is available for 
36.22 	grants to soil and water conservation districts 
36.23 	for Web site development and reporting; and 
36.24 	$100,000 in fiscal years 2008 and 2009 is 
36.25 	for evaluating and reporting on performance, 
36.26 	financial, and activity information of local 
36.27 	water management entities as provided for in 
36.28 	section 103.
36.29 	The board shall develop a forestry practice 
36.30 	docket for cost-share money. The board shall 
36.31 	develop standards or policies for cost-share 
36.32 	practices for the following purposes: (1) 
36.33 	establishment and maintenance of vegetated 
36.34 	buffers of restored prairie or restored native 
36.35 	prairie using seeds of a local ecotype; 
36.36 	(2) establishment of cooperative weed 
37.1 	management programs on private natural 
37.2 	lands and lands enrolled in state and federal 
37.3 	conservation programs and restoration of 
37.4 	native plants in selected invasive species 
37.5 	management sites by providing local native 
37.6 	seeds and plants to landowners; and (3) 
37.7 	establishment of soil and water conservation 
37.8 	and ecological improvement practices on 
37.9 	private forest lands.
37.10 	$100,000 the first year and $100,000 the 
37.11 	second year are for a grant to the Red 
37.12 	River Basin Commission to develop a Red 
37.13 	River basin plan and to coordinate water 
37.14 	management activities in the states and 
37.15 	provinces bordering the Red River. The 
37.16 	unencumbered balance in the first year does 
37.17 	not cancel but is available for the second 
37.18 	year.
37.19 	$14,166,000 is for implementation of the 
37.20 	Clean Water Legacy Act, in accordance 
37.21 	with Minnesota Statutes, chapter 114D, as 
37.22 	follows:
37.23 	(1) $3,316,000 is for targeted nonpoint 
37.24 	restoration cost-share and incentive 
37.25 	payments, of which up to $3,116,000 
37.26 	is available for grants. Of this amount, 
37.27 	$1,500,000 is for agricultural watershed 
37.28 	restoration projects that are located in a 
37.29 	watershed impaired by nonpoint agricultural 
37.30 	sources and are designed to provide 
37.31 	long-term restoration of surface water 
37.32 	quality through restoration of the natural 
37.33 	hydrological function to working lands. Of 
37.34 	this amount, $500,000 must be contracted for 
37.35 	services with the Minnesota Conservation 
38.1 	Corps. The grant funds are available until 
38.2 	expended;
38.3 	(2) $3,000,000 is for targeted nonpoint 
38.4 	restoration and protection and technical, 
38.5 	compliance, and engineering assistance 
38.6 	activities, of which up to $2,400,000 is 
38.7 	available for grants, and $225,000 the first 
38.8 	year is to inventory wetland mitigation 
38.9 	opportunities and water quality and 
38.10 	watershed improvement projects in a greater 
38.11 	than 80 percent area and of which $150,000 
38.12 	the first year is to conduct a regionwide 
38.13 	wetland mitigation siting analysis for 
38.14 	greater than 80 percent areas. The $225,000 
38.15 	amount shall include an inventory of the 
38.16 	wetland and water resources that have been 
38.17 	developed on former mine lands and an 
38.18 	analysis of the functions and values of those 
38.19 	wetland and water resources. This is a 
38.20 	onetime appropriation and is available until 
38.21 	June 30, 2009. The $150,000 amount for 
38.22 	analysis shall (i) evaluate wetland mitigation 
38.23 	opportunities in each watershed and wetland 
38.24 	bank service area, (ii) develop goals for 
38.25 	maintaining water quality in the greater than 
38.26 	80 percent areas, and (iii) identify wetland 
38.27 	mitigation opportunities in other regions with 
38.28 	a greater loss of wetlands or with impaired 
38.29 	waters. This is a onetime appropriation and 
38.30 	is available until June 30, 2009. A report on 
38.31 	the analysis outcomes shall be given to the 
38.32 	house and senate chairs of the environment 
38.33 	and natural resources policy and finance 
38.34 	committees by January 15, 2009;
38.35 	(3) $400,000 is for reporting and evaluating 
38.36 	applied soil and water conservation practices;
39.1 	(4) $2,450,000 is for grants to implement 
39.2 	county individual sewage treatment system 
39.3 	programs. Of this amount, after a county 
39.4 	has complied with requirements to adopt 
39.5 	ordinances pursuant to Minnesota Statutes, 
39.6 	section 115.55, subdivision 2, the county may 
39.7 	request grants of up to $130,000 to inventory 
39.8 	properties with individual sewage treatment 
39.9 	systems that are an imminent threat to public 
39.10 	health or safety due to water discharges of 
39.11 	untreated sewage, and require compliance 
39.12 	under an applicable ordinance. The grant 
39.13 	amount shall be proportional to the number 
39.14 	of properties expected to be inventoried. 
39.15 	Each county receiving an appropriation 
39.16 	under this paragraph shall report the number 
39.17 	of inspections and the number determined 
39.18 	to be an imminent threat to public health or 
39.19 	safety to the Pollution Control Agency by 
39.20 	February 1 of each year;
39.21 	(5) $3,000,000 is for feedlot water quality 
39.22 	grants for feedlots under 300 animal units 
39.23 	where there are impaired waters; 
39.24 	(6) $1,000,000 in fiscal year 2008 is for 
39.25 	grants to support local nonpoint source 
39.26 	protection activities related to lake and river 
39.27 	protection and management; and 
39.28 	(7) $1,000,000 in fiscal year 2008 is for 
39.29 	grants to address imminent threat and failing 
39.30 	individual sewage treatment systems.
39.31 	If the appropriations in clauses (1) to (7) in 
39.32 	either year are insufficient, the appropriation 
39.33 	in the other year is available for it. All of 
39.34 	the money appropriated in clauses (1) to 
39.35 	(7) as grants to local governments shall be 
40.1 	administered through the Board of Water 
40.2 	and Soil Resources' local water resources 
40.3 	protection and management program under 
40.4 	Minnesota Statutes, section 103B.3369.
40.5 	$100,000 each year is to the Minnesota River 
40.6 	Basin Joint Powers Board, also known as 
40.7 	the Minnesota River Board, for operating 
40.8 	expenses to measure and report the results of 
40.9 	projects in the 12 major watersheds within 
40.10 	the Minnesota River basin.
40.11 	By January 1, 2008, the board shall report 
40.12 	to the senate and house of representatives 
40.13 	environmental finance divisions on the 
40.14 	financial needs to bring all feedlots in the 
40.15 	state that are under 300 animal units into 
40.16 	compliance with Pollution Control Agency 
40.17 	rules by October 1, 2010, and comply with 
40.18 	the requirements of Minnesota Statutes, 
40.19 	section 116.07, subdivision 7, paragraph (p).
40.20 	$140,000 the first year and $140,000 
40.21 	the second year are for a grant to Area 
40.22 	II, Minnesota River Basin Projects, 
40.23 	for floodplain management, including 
40.24 	administration of programs.
40.25 	$1,120,000 the first year and $1,060,000 the 
40.26 	second year may be spent for the following 
40.27 	purposes to support implementation of 
40.28 	the Wetland Conservation Act: $250,000 
40.29 	each year is to make grants to local units 
40.30 	of governments within the 11-county 
40.31 	metropolitan area to improve response to 
40.32 	major wetland violations; $250,000 each 
40.33 	year is for transfer to the commissioner 
40.34 	of natural resources for enforcement of 
40.35 	wetland violations; $500,000 each year is for 
41.1 	staffing to provide adequate state oversight 
41.2 	and technical support to local governments 
41.3 	administering the Wetland Conservation Act; 
41.4 	$60,000 each year is for staff to monitor and 
41.5 	enforce wetland replacement and wetland 
41.6 	bank sites; and $60,000 the first year is 
41.7 	for rulemaking required by changes to the 
41.8 	Wetland Conservation Act. The board must 
41.9 	include in its biennial report to the legislature 
41.10 	information on all state and local units 
41.11 	of government, including special purpose 
41.12 	districts, impacts on wetlands in the state.
41.13 	$450,000 the first year and $800,000 
41.14 	the second year are to implement 
41.15 	recommendations of the Drainage Work 
41.16 	Group to enhance public drainage and 
41.17 	modernization as follows: $150,000 the first 
41.18 	year is to develop guidelines for drainage 
41.19 	records preservation and modernization; 
41.20 	$500,000 the second year is for cost-share 
41.21 	grants to local governments for public 
41.22 	drainage records modernization; and 
41.23 	$300,000 each year is to provide assistance 
41.24 	to local drainage management officials, to 
41.25 	facilitate the work of the Drainage Work 
41.26 	Group, to staff a drainage assistance team, 
41.27 	and to update the Minnesota Public Drainage 
41.28 	Manual. All of the money appropriated in 
41.29 	this paragraph as grants to local governments 
41.30 	shall be administered through the Board 
41.31 	of Water and Soil Resources' local water 
41.32 	resources protection and management 
41.33 	program under Minnesota Statutes, section 
41.34 	103B.3369.
41.35 	In addition to other authorities, the Board 
41.36 	of Water and Soil Resources may reduce, 
42.1 	withhold, or redirect grants and other funding 
42.2 	if the local water management entity has 
42.3 	not corrected deficiencies as prescribed in a 
42.4 	notice from the board within one year from 
42.5 	the date of the notice.
42.6 	$500,000 the first year is to provide grants 
42.7 	for bioenergy crop research and monitoring, 
42.8 	including, but not limited to, water quality, 
42.9 	water quantity utilized, soil carbon storage, 
42.10 	biological diversity, wildlife and habitat 
42.11 	impacts and benefits, and small diameter 
42.12 	woody bioenergy. Of this amount, $300,000 
42.13 	is for a grant to the Minnesota Forest 
42.14 	Resources Council for conducting site level 
42.15 	ecological research and assessments as 
42.16 	identified by the council's biomass technical 
42.17 	committee. Additional money from other 
42.18 	sources should be sought to accomplish this 
42.19 	purpose.
42.20 	$200,000 in fiscal year 2008 is to develop 
42.21 	clean energy program guidelines and 
42.22 	standards.
42.23 	$200,000 is for a grant to the city of Gaylord 
42.24 	to construct and reconstruct storm water 
42.25 	sewer drains and related facilities to divert 
42.26 	water that currently drains into Lake Titlow 
42.27 	into holding ponds south of the city. The 
42.28 	cost of reconstructing city streets as part of 
42.29 	this diversion, and as outlined in the city of 
42.30 	Gaylord's street improvement plan, is the 
42.31 	responsibility of the city. This diversion will 
42.32 	keep phosphorus and other chemicals from 
42.33 	entering the lake, and will improve the water 
42.34 	quality of Lake Titlow.
43.1 	The appropriations for grants in this 
43.2 	section are available until expended. If an 
43.3 	appropriation for grants in either year is 
43.4 	insufficient, the appropriation in the other 
43.5 	year is available for it.

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

43.7	Appropriations by Fund
	
43.8		2008
	2009
	
43.9	General
	4,050,000
	4,050,000
	
43.10	Natural Resources
	4,570,000
	4,570,000
	
43.11 	$4,050,000 the first year and $4,050,000 
43.12 	the second year are for metropolitan area 
43.13 	regional parks maintenance and operations.
43.14 	$4,570,000 the first year and $4,570,000 the 
43.15 	second year are from the natural resources 
43.16 	fund for metropolitan area regional parks 
43.17 	and trails maintenance and operations. This 
43.18 	appropriation is from the revenue deposited 
43.19 	in the natural resources fund under Minnesota 
43.20 	Statutes, section 297A.94, paragraph (e), 
43.21 	clause (3).

43.22
43.23	Sec. 7. MINNESOTA CONSERVATION 
CORPS
 	$
	1,015,000
	$
	965,000

43.24	Appropriations by Fund
	
43.25		2008
	2009
	
43.26	General
	525,000
	475,000
	
43.27	Natural Resources
	490,000
	490,000
	
43.28 	The Minnesota Conservation Corps may 
43.29 	receive money appropriated from the 
43.30 	natural resources fund under this section 
43.31 	only as provided in an agreement with the 
43.32 	commissioner of natural resources.
43.33 	$50,000 is to be used for learning stipends 
43.34 	for deaf students and wages for interpreters 
44.1 	participating in its summer youth program. 
44.2 	The appropriation is available until June 30, 
44.3 	2009.

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

44.5	Appropriations by Fund
	
44.6		2008
	2009
	
44.7	General
	7,000,000
	7,193,000
	
44.8	Natural Resources
	137,000
	138,000
	
44.9 	$137,000 the first year and $138,000 the 
44.10 	second year are from the natural resources 
44.11 	fund from the revenue deposited under 
44.12 	Minnesota Statutes, section 297A.94, 
44.13 	paragraph (e), clause (5).
44.14 	The general fund base budget for the 
44.15 	Zoological Board is $7,068,000 each year in 
44.16 	the 2010-2011 biennium.

44.17
44.18	Sec. 9. SCIENCE MUSEUM OF 
MINNESOTA
 	$
	1,250,000
	$
	1,250,000

44.19 	Sec. 10. Minnesota Statutes 2006, section 10A.01, subdivision 35, is amended to read:
44.20 		Subd. 35.Public official. "Public official" means any:
44.21 	(1) member of the legislature;
44.22 	(2) individual employed by the legislature as secretary of the senate, legislative 
44.23 	auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or 
44.24 	attorney in the Office of Senate Counsel and Research or House Research;
44.25 	(3) constitutional officer in the executive branch and the officer's chief administrative 
44.26 	deputy;
44.27 	(4) solicitor general or deputy, assistant, or special assistant attorney general;
44.28 	(5) commissioner, deputy commissioner, or assistant commissioner of any state 
44.29 	department or agency as listed in section 15.01 or 15.06, or the state chief information 
44.30 	officer;
44.31 	(6) member, chief administrative officer, or deputy chief administrative officer of a 
44.32 	state board or commission that has either the power to adopt, amend, or repeal rules under 
44.33 	chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
45.1 	(7) individual employed in the executive branch who is authorized to adopt, amend, 
45.2 	or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
45.3 	(8) executive director of the State Board of Investment;
45.4 	(9) deputy of any official listed in clauses (7) and (8);
45.5 	(10) judge of the Workers' Compensation Court of Appeals;
45.6 	(11) administrative law judge or compensation judge in the State Office of 
45.7 	Administrative Hearings or referee in the Department of Employment and Economic 
45.8 	Development;
45.9 	(12) member, regional administrator, division director, general counsel, or operations 
45.10 	manager of the Metropolitan Council;
45.11 	(13) member or chief administrator of a metropolitan agency;
45.12 	(14) director of the Division of Alcohol and Gambling Enforcement in the 
45.13 	Department of Public Safety;
45.14 	(15) member or executive director of the Higher Education Facilities Authority;
45.15 	(16) member of the board of directors or president of Minnesota Technology, Inc.; 
45.16 	(17) member of the board of directors or executive director of the Minnesota State 
45.17 	High School League;
45.18 	(18) member of the Minnesota Ballpark Authority established in section 473.755; or 
45.19 	(19) citizen member of the Legislative-Citizen Commission on Minnesota 
45.20 	Resources.;
45.21 	(20) manager of a watershed district, or member of a watershed management 
45.22 	organization as defined under section 103B.205, subdivision 13; or
45.23 	(21) supervisor of a soil and water conservation district.

45.24 	Sec. 11. Minnesota Statutes 2006, section 15.99, subdivision 3, is amended to read:
45.25 		Subd. 3.Application; extensions. (a) The time limit in subdivision 2 begins upon 
45.26 	the agency's receipt of a written request containing all information required by law or by 
45.27 	a previously adopted rule, ordinance, or policy of the agency, including the applicable 
45.28 	application fee. If an agency receives a written request that does not contain all required 
45.29 	information, the 60-day limit starts over only if the agency sends written notice within 15 
45.30 	business days of receipt of the request telling the requester what information is missing.
45.31 	(b) If a request relating to zoning, septic systems, watershed district review, soil and 
45.32 	water conservation district review, or expansion of the metropolitan urban service area 
45.33 	requires the approval of more than one state agency in the executive branch, the 60-day 
45.34 	period in subdivision 2 begins to run for all executive branch agencies on the day a request 
46.1 	containing all required information is received by one state agency. The agency receiving 
46.2 	the request must forward copies to other state agencies whose approval is required.
46.3 	(c) An agency response, including an approval with conditions, meets the 60-day 
46.4 	time limit if the agency can document that the response was sent within 60 days of receipt 
46.5 	of the written request. Failure to satisfy the conditions, if any, may be a basis to revoke 
46.6 	or rescind the approval by the agency and will not give rise to a claim that the 60-day 
46.7 	limit was not met.
46.8 	(d) The time limit in subdivision 2 is extended if a state statute, federal law, or court 
46.9 	order requires a process to occur before the agency acts on the request, and the time 
46.10 	periods prescribed in the state statute, federal law, or court order make it impossible to 
46.11 	act on the request within 60 days. In cases described in this paragraph, the deadline is 
46.12 	extended to 60 days after completion of the last process required in the applicable statute, 
46.13 	law, or order. Final approval of an agency receiving a request is not considered a process 
46.14 	for purposes of this paragraph.
46.15 	(e) The time limit in subdivision 2 is extended if: (1) a request submitted to a state 
46.16 	agency requires prior approval of a federal agency; or (2) an application submitted to 
46.17 	a city, county, town, school district, metropolitan or regional entity, or other political 
46.18 	subdivision requires prior approval of a state or federal agency. In cases described in 
46.19 	this paragraph, the deadline for agency action is extended to 60 days after the required 
46.20 	prior approval is granted.
46.21 	(f) An agency may extend the time limit in subdivision 2 before the end of the 
46.22 	initial 60-day period by providing written notice of the extension to the applicant. The 
46.23 	notification must state the reasons for the extension and its anticipated length, which may 
46.24 	not exceed 60 days unless approved by the applicant.
46.25 	(g) An applicant may by written notice to the agency request an extension of the 
46.26 	time limit under this section.

46.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.28 	Sec. 12. Minnesota Statutes 2006, section 16A.531, subdivision 1a, is amended to read:
46.29 		Subd. 1a.Revenues. The following revenues must be deposited in the 
46.30 	environmental fund:
46.31 	(1) all revenue from the motor vehicle transfer fee imposed under section 115A.908; 
46.32 	(2) all fees collected under section 116.07, subdivision 4d; 
46.33 	(3) all money collected by the Pollution Control Agency in enforcement matters 
46.34 	as provided in section 115.073; 
47.1 	(4) all revenues from license fees for individual sewage treatment systems under 
47.2 	section 115.56; 
47.3 	(5) all loan repayments deposited under section 115A.0716; 
47.4 	(6) all revenue from pollution prevention fees imposed under section 115D.12; 
47.5 	(7) all loan repayments deposited under section 116.994; 
47.6 	(8) all fees collected under section 116C.834; 
47.7 	(9) revenue collected from the solid waste management tax pursuant to chapter 297H;
47.8 	(10) fees collected under section 473.844; and
47.9 	(11) interest accrued on the fund; and
47.10 	(12) money received in the form of gifts, grants, reimbursement, or appropriation 
47.11 	from any source for any of the purposes provided in subdivision 2, except federal grants.

47.12 	Sec. 13. [17.035] VENISON DISTRIBUTION AND REIMBURSEMENT.
47.13 		Subdivision 1.Reimbursement. A meat processor holding a license under chapter 
47.14 	28A may apply to the commissioner of agriculture for reimbursement of $70 towards the 
47.15 	cost of processing donated deer. The meat processor shall deliver the deer, processed into 
47.16 	cuts or ground meat, to a charitable organization that is registered under chapter 309 and 
47.17 	with the commissioner of agriculture and that operates a food assistance program. To 
47.18 	request reimbursement, the processor shall submit an application, on a form prescribed by 
47.19 	the commissioner of agriculture, the tag number under which the deer was taken, and a 
47.20 	receipt for the deer from the charitable organization.
47.21 		Subd. 2.Distribution. (a) The commissioner of agriculture shall ensure the 
47.22 	equitable statewide distribution of processed deer by requiring the charitable organization 
47.23 	to allocate and distribute processed deer according to the allocation formula used in the 
47.24 	distribution of United States Department of Agriculture commodities under the federal 
47.25 	emergency food assistance program. The charitable organization must submit quarterly 
47.26 	reports to the commissioner on forms prescribed by the commissioner. The reports must 
47.27 	include, but are not limited to, information on the amount of processed deer received and 
47.28 	the organizations to which the meat was distributed.
47.29 	(b) The commissioner of agriculture may adopt rules to implement this section.

47.30 	Sec. 14. Minnesota Statutes 2006, section 17.4984, subdivision 1, is amended to read:
47.31 		Subdivision 1.License required. (a) A person or entity may not operate an aquatic 
47.32 	farm without first obtaining an aquatic farm license from the commissioner.
47.33 	(b) Applications for an aquatic farm license must be made on forms provided by 
47.34 	the commissioner.
48.1 	(c) Licenses are valid for five years and are transferable upon notification to the 
48.2 	commissioner.
48.3 	(d) The commissioner shall issue an aquatic farm license on payment of the required 
48.4 	license fee under section 17.4988. 
48.5 	(e) A license issued by the commissioner is not a determination of private property 
48.6 	rights, but is only based on a determination that the licensee does not have a significant 
48.7 	detrimental impact on the public resource.
48.8 	(f) By January 15, 2008, the commissioner shall report to the senate and house 
48.9 	of representatives committees on natural resource policy and finance on policy 
48.10 	recommendations regarding aquaculture.

48.11 	Sec. 15. Minnesota Statutes 2006, section 18G.03, is amended by adding a subdivision 
48.12 	to read:
48.13 		Subd. 5.Certain species not subject to chapter 18G. This chapter does not apply 
48.14 	to exotic aquatic plants and wild animal species regulated under chapter 84D.

48.15 	Sec. 16. Minnesota Statutes 2006, section 18G.11, is amended to read:
48.16 	18G.11 COOPERATION WITH OTHER JURISDICTIONS.
48.17 		Subdivision 1.Detection and control agreements. The commissioner may enter 
48.18 	into cooperative agreements with organizations, persons, civic groups, governmental 
48.19 	agencies, or other organizations to adopt and execute plans to detect and control areas 
48.20 	infested or infected with harmful plant pests. The cooperative agreements may include 
48.21 	provisions of joint funding of any control treatment.
48.22 	If a harmful plant pest infestation or infection occurs and cannot be adequately 
48.23 	controlled by individual persons, owners, tenants, or local units of government, the 
48.24 	commissioner may conduct the necessary control measures independently or on a 
48.25 	cooperative basis with federal or other units of government.
48.26 		Subd. 2.New and emerging plant pest programs. The commissioner may make 
48.27 	grants to municipalities or enter into contracts with municipalities, nurseries, colleges, 
48.28 	universities, state or federal agencies in connection with new or emerging plant pests 
48.29 	programs, including research, or any other organization with the legal authority to enter 
48.30 	into contractual agreements.

48.31 	Sec. 17. [84.02] DEFINITIONS.
48.32 		Subdivision 1.Definitions. For purposes of this chapter, the terms defined in this 
48.33 	section shall have the meanings given them.
49.1 		Subd. 2.Best management practice for native prairie restoration. "Best 
49.2 	management practice for native prairie restoration" means using seeds collected from a 
49.3 	native prairie within the same county or within 25 miles of the county's border, but not 
49.4 	across the boundary of an ecotype region.
49.5 		Subd. 3.Created grassland. "Created grassland" means a restoration using seeds 
49.6 	or plants with origins outside of the state of Minnesota.
49.7 		Subd. 4.Ecotype region. "Ecotype region" means the following ecological 
49.8 	subsections and counties based on the Department of Natural Resources map, "County 
49.9 	Landscape Groupings Based on Ecological Subsections," dated February 15, 2007.

49.10	Ecotype Region
	Counties or portions thereof:
	
49.11
49.12
49.13	Rochester Plateau, Blufflands, and Oak 
Savanna
	Houston, Winona, Fillmore, Wabasha, 
Goodhue, Mower, Freeborn, Steele, 
Olmsted, Rice, Waseca, Dakota, Dodge
	
49.14
49.15
49.16	Anoka Sand Plain, Big Woods, and St. 
Paul Baldwin Plains and Moraines
	Anoka, Hennepin, Ramsey, Washington, 
Chisago, Scott, Carver, McLeod, Wright, 
Benton, Isanti, Le Sueur, Sherburne
	
49.17
49.18	Inner Coteau and Coteau Moraines
	Lincoln, Lyon, Pipestone, Rock, Murray, 
Nobles, Jackson, Cottonwood
	
49.19	Red River Prairie (South)
	Traverse, Wilkin, Clay, Becker
	
49.20
49.21
49.22	Red River Prairie (North) and Aspen 
Parklands
	Kittson, Roseau, Red Lake, Pennington, 
Marshall, Clearwater, Mahnomen, Polk, 
Norman
	
49.23
49.24
49.25	Minnesota River Prairie (North)
	Big Stone, Pope, Stevens, Grant, Swift, 
Chippewa, Meeker, Kandiyohi, Renville, 
Lac qui Parle, Yellow Medicine
	
49.26
49.27	Minnesota River Prairie (South)
	Nicollet, Redwood, Brown, Watonwan, 
Martin, Faribault, Blue Earth, Sibley
	
49.28
49.29	Hardwood Hills
	Douglas, Morrison, Otter Tail, Stearns, 
Todd
	
49.30 		Subd. 5.Native prairie. "Native prairie" means land that has never been plowed 
49.31 	where native prairie vegetation originating from the site currently predominates or, if 
49.32 	disturbed, is predominantly covered with native prairie vegetation that originated from the 
49.33 	site. Unbroken pasture land used for livestock grazing can be considered native prairie if it 
49.34 	has predominantly native vegetation originating from the site and conservation practices 
49.35 	have maintained biological diversity.
49.36 		Subd. 6.Native prairie species of a local ecotype. "Native prairie species of a local 
49.37 	ecotype" means a genetically differentiated population of a species that has at least one 
49.38 	trait (morphological, biochemical, fitness, or phenological) that is evolutionarily adapted 
49.39 	to local environmental conditions, notably plant competitors, pathogens, pollinators, soil 
49.40 	microorganisms, growing season length, climate, hydrology, and soil.
50.1 		Subd. 7.Restored native prairie. "Restored native prairie" means a restoration 
50.2 	using at least 25 representative and biologically diverse native prairie plant species of a 
50.3 	local ecotype originating in the same county as the restoration site or within 25 miles of 
50.4 	the county's border, but not across the boundary of an ecotype region.
50.5 		Subd. 8.Restored prairie. "Restored prairie" means a restoration using at least 
50.6 	25 representative and biologically diverse native prairie plant species originating from 
50.7 	the same ecotype region in which the restoration occurs.

50.8 	Sec. 18. Minnesota Statutes 2006, section 84.025, subdivision 9, is amended to read:
50.9 		Subd. 9.Professional services support account. The commissioner of natural 
50.10 	resources may bill the various programs carried out by the commissioner for the costs of 
50.11 	providing them with professional support services. Except as provided under section 
50.12 	89.421, receipts must be credited to a special account in the state treasury and are 
50.13 	appropriated to the commissioner to pay the costs for which the billings were made.
50.14 	The commissioner of natural resources shall submit to the commissioner of finance 
50.15 	before the start of each fiscal year a work plan showing the estimated work to be done 
50.16 	during the coming year, the estimated cost of doing the work, and the positions and fees 
50.17 	that will be necessary. This account is exempted from statewide and agency indirect 
50.18 	cost payments.

50.19 	Sec. 19. Minnesota Statutes 2006, section 84.026, subdivision 1, is amended to read:
50.20 		Subdivision 1.Contracts. The commissioner of natural resources is authorized 
50.21 	to enter into contractual agreements with any public or private entity for the provision 
50.22 	of statutorily prescribed natural resources services by the department. The contracts 
50.23 	shall specify the services to be provided. Except as provided under section 89.421, funds 
50.24 	generated in a contractual agreement made pursuant to this section shall be deposited in 
50.25 	the special revenue fund and are appropriated to the department for purposes of providing 
50.26 	the services specified in the contracts. The commissioner shall report revenues collected 
50.27 	and expenditures made under this subdivision to the chairs of the Committees on Ways and 
50.28 	Means in the house and Finance in the senate by January 1 of each odd-numbered year.

50.29 	Sec. 20. Minnesota Statutes 2006, section 84.027, is amended by adding a subdivision 
50.30 	to read:
50.31 		Subd. 13a.Game and fish expedited permanent rules. In addition to the authority 
50.32 	granted in subdivision 13, the commissioner of natural resources may adopt rules under 
50.33 	section 14.389 that are authorized under:
51.1 	(1) chapters 97A, 97B, and 97C to describe zone or permit area boundaries, to 
51.2 	designate fish spawning beds or fish preserves, to select hunters or anglers for areas, 
51.3 	to provide for registration of game or fish, to prevent or control wildlife disease, or to 
51.4 	correct errors or omissions in rules that do not have a substantive effect on the intent or 
51.5 	application of the original rule; or
51.6 	(2) section 84D.12 to designate prohibited invasive species, regulated invasive 
51.7 	species, and unregulated nonnative species.

51.8 	Sec. 21. Minnesota Statutes 2006, section 84.0272, is amended by adding a subdivision 
51.9 	to read:
51.10 		Subd. 5.Easement information. Parties to an easement purchased under the 
51.11 	authority of the commissioner must:
51.12 	(1) specify in the easement all provisions that are perpetual in nature;
51.13 	(2) file the easement with the county recorder or registrar of titles in the county 
51.14 	in which the land is located; and
51.15 	(3) submit an electronic copy of the easement to the commissioner.

51.16 	Sec. 22. Minnesota Statutes 2006, section 84.0855, subdivision 1, is amended to read:
51.17 		Subdivision 1.Sales authorized; gift certificates. The commissioner may 
51.18 	sell natural resources-related publications and maps; forest resource assessment 
51.19 	products; federal migratory waterfowl, junior duck, and other federal stamps; and other 
51.20 	nature-related merchandise, and may rent or sell items for the convenience of persons using 
51.21 	Department of Natural Resources facilities or services. The commissioner may sell gift 
51.22 	certificates for any items rented or sold. Notwithstanding section 16A.1285, a fee charged 
51.23 	by the commissioner under this section may include a reasonable amount in excess of the 
51.24 	actual cost to support Department of Natural Resources programs. The commissioner may 
51.25 	advertise the availability of a program or item offered under this section. 

51.26 	Sec. 23. Minnesota Statutes 2006, section 84.0855, subdivision 2, is amended to read:
51.27 		Subd. 2.Receipts; appropriation. Except as provided under section 89.421, 
51.28 	money received by the commissioner under this section or to buy supplies for the use of 
51.29 	volunteers, may be credited to one or more special accounts in the state treasury and is 
51.30 	appropriated to the commissioner for the purposes for which the money was received. 
51.31 	Money received from sales at the state fair shall be available for state fair related costs. 
51.32 	Money received from sales of intellectual property and software products or services shall 
51.33 	be available for development, maintenance, and support of software products and systems.

52.1 	Sec. 24. Minnesota Statutes 2006, section 84.777, is amended to read:
52.2 	84.777 OFF-HIGHWAY VEHICLE USE OF STATE LANDS RESTRICTED.
52.3 		Subdivision 1.Designated trails. (a) Except as otherwise allowed by law or rules 
52.4 	adopted by the commissioner, effective June 1, 2003, notwithstanding sections 84.787
52.5 	to 84.805 and 84.92 to 84.929, the use of off-highway vehicles is prohibited on state 
52.6 	land administered by the commissioner of natural resources, and on county-administered 
52.7 	forest land within the boundaries of a state forest, except on roads and trails specifically 
52.8 	designated and posted by the commissioner for use by off-highway vehicles. 
52.9 	(b) Paragraph (a) does not apply to county-administered land within a state forest if 
52.10 	the county board adopts a resolution that modifies restrictions on the use of off-highway 
52.11 	vehicles on county-administered land within the forest.
52.12 		Subd. 2.Off-highway vehicle seasons. (a) The commissioner shall prescribe 
52.13 	seasons for off-highway vehicle use on state forest lands. Except for designated forest 
52.14 	roads, a person must not operate an off-highway vehicle on state forest lands outside of 
52.15 	the seasons prescribed under this paragraph.
52.16 	(b) The commissioner may designate and post winter trails on state forest lands 
52.17 	for use by off-highway vehicles.
52.18 	(c) For the purposes of this subdivision, "state forest lands" means forest lands under 
52.19 	the authority of the commissioner as defined in section 89.001, subdivision 13, and lands 
52.20 	managed by the commissioner under section 282.011.
52.21 		Subd. 3.Mapped trails. Except as provided in sections 84.926 and 84.928, after 
52.22 	completion of off-highway vehicle maps for the area, a person must not operate an 
52.23 	off-highway vehicle on state land that is not mapped for the type of off-highway vehicle.
52.24 		Subd. 4.Exemption from rulemaking. Determinations of the commissioner under 
52.25 	this section may be by written order published in the State Register and are exempt from 
52.26 	the rulemaking provisions of chapter 14. Section 14.386 does not apply.

52.27 	Sec. 25. Minnesota Statutes 2006, section 84.780, is amended to read:
52.28 	84.780 OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.
52.29 	(a) The off-highway vehicle damage account is created in the natural resources fund. 
52.30 	Money in the off-highway vehicle damage account is appropriated to the commissioner of 
52.31 	natural resources for the repair or restoration of property damaged by the illegal operation 
52.32 	of off-highway vehicles or the operation of off-highway vehicles in an unpermitted area 
52.33 	after August 1, 2003, and for the costs of administration for this section. Before the 
52.34 	commissioner may make a payment from this account, the commissioner must determine 
52.35 	whether the damage to the property was caused by the unpermitted or illegal use of 
53.1 	off-highway vehicles, that the applicant has made reasonable efforts to identify the 
53.2 	responsible individual and obtain payment from the individual, and that the applicant has 
53.3 	made reasonable efforts to prevent reoccurrence. By June 30, 2008, the commissioner of 
53.4 	finance must transfer the remaining balance in the account to the off-highway motorcycle 
53.5 	account under section 84.794, the off-road vehicle account under section 84.803, and the 
53.6 	all-terrain vehicle account under section 84.927. The amount transferred to each account 
53.7 	must be proportionate to the amounts received in the damage account from the relevant 
53.8 	off-highway vehicle accounts.
53.9 	(b) Determinations of the commissioner under this section may be made by written 
53.10 	order and are exempt from the rulemaking provisions of chapter 14. Section 14.386
53.11 	does not apply.
53.12 	(c) This section expires July 1, 2008 Money in the account is available until 
53.13 	expended.

53.14 	Sec. 26. [84.8045] RESTRICTIONS ON OFF-ROAD VEHICLE TRAILS.
53.15 	Notwithstanding any provision of sections 84.797 to 84.805 or other law to the 
53.16 	contrary, the commissioner shall not permit land administered by the commissioner in 
53.17 	Cass, Crow Wing, and Hubbard Counties to be used or developed for trails primarily for 
53.18 	off-road vehicles as defined in section 84.797, subdivision 7, except:
53.19 	(1) upon approval by the legislature; or
53.20 	(2) in designated off-road vehicle use areas.

53.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

53.22 	Sec. 27. [84.9011] OFF-HIGHWAY VEHICLE SAFETY AND CONSERVATION 
53.23 	PROGRAM.
53.24 		Subdivision 1.Creation. The commissioner of natural resources shall establish 
53.25 	a program to promote the safe and responsible operation of off-highway vehicles in a 
53.26 	manner that does not harm the environment.
53.27 		Subd. 2.Agreements. (a) The commissioner shall enter into  agreements with 
53.28 	organizations for volunteer services that promote the safe and responsible operation 
53.29 	of off-highway vehicles in a manner that does not harm the environment to maintain, 
53.30 	make improvements to, and monitor trails on state forest land and other public lands. 
53.31 	The organizations shall promote the operation of off-highway vehicles in a safe and 
53.32 	responsible manner that complies with the laws and rules that relate to the operation 
53.33 	of off-highway vehicles.
54.1 	(b) The organizations may provide assistance to the department in locating, 
54.2 	recruiting, and training instructors for off-highway vehicle training programs.
54.3 	(c) The commissioner may provide assistance to enhance the comfort and safety 
54.4 	of volunteers and to facilitate the implementation and administration of the safety and 
54.5 	conservation program.
54.6 	(d) The commissioner shall establish standards, train, and certify organizations and 
54.7 	individuals participating as volunteers under this section. The training shall include:
54.8 	(1) the identification of invasive species;
54.9 	(2) correctly reporting the location of invasive species; and
54.10 	(3) basic global positioning system operation.
54.11 		Subd. 3.Worker displacement prohibited. The commissioner may not enter into 
54.12 	any agreement that has the purpose of or results in the displacement of public employees 
54.13 	by volunteers participating in the off-highway safety and conservation program under 
54.14 	this section. The commissioner must certify to the appropriate bargaining agent that the 
54.15 	work performed by a volunteer will not result in the displacement of currently employed 
54.16 	workers or workers on seasonal layoff or layoff from a substantially equivalent position, 
54.17 	including partial displacement such as reduction in hours of nonovertime work, wages, or 
54.18 	other employment benefits.
54.19 		Subd. 4.Off-Highway Vehicle Safety Advisory Council. (a) The commissioner 
54.20 	of natural resources shall appoint an Off-Highway Vehicle Safety Advisory Council to 
54.21 	advise the commissioner on:
54.22 	(1) off-highway vehicle safety; and
54.23 	(2) standards and certification for organizations and individuals participating as 
54.24 	volunteers under this section.

54.25 	Sec. 28. Minnesota Statutes 2006, section 84.922, subdivision 1a, is amended to read:
54.26 		Subd. 1a.Exemptions. All-terrain vehicles exempt from registration are:
54.27 	(1) vehicles owned and used by the United States, the state, another state, or a 
54.28 	political subdivision;
54.29 	(2) vehicles registered in another state or country that have not been in this state 
54.30 	for more than 30 consecutive days; and
54.31 	(3) vehicles used exclusively in organized track racing events; and
54.32 	(4) vehicles that are 25 years old or older and were originally produced as a separate 
54.33 	identifiable make by a manufacturer.

54.34 	Sec. 29. Minnesota Statutes 2006, section 84.922, subdivision 5, is amended to read:
55.1 		Subd. 5.Fees for registration. (a) The fee for a three-year registration of 
55.2 	an all-terrain vehicle under this section, other than those registered by a dealer or 
55.3 	manufacturer under paragraph (b) or (c), is:
55.4 	(1) for public use before January 1, 2005, $23;
55.5 	(2) for public use on January 1, 2005, and after, $30 $45;
55.6 	(3) (2) for private use, $6; and
55.7 	(4) (3) for a duplicate or transfer, $4.
55.8 	(b) The total registration fee for all-terrain vehicles owned by a dealer and operated 
55.9 	for demonstration or testing purposes is $50 per year. Dealer registrations are not 
55.10 	transferable.
55.11 	(c) The total registration fee for all-terrain vehicles owned by a manufacturer and 
55.12 	operated for research, testing, experimentation, or demonstration purposes is $150 per 
55.13 	year. Manufacturer registrations are not transferable.
55.14 	(d) The fees collected under this subdivision must be credited to the all-terrain 
55.15 	vehicle account.

55.16 	EFFECTIVE DATE. This section is effective January 1, 2008.

55.17 	Sec. 30. Minnesota Statutes 2006, section 84.927, subdivision 2, is amended to read:
55.18 		Subd. 2.Purposes. Subject to appropriation by the legislature, money in the 
55.19 	all-terrain vehicle account may only be spent for:
55.20 	(1) the education and training program under section 84.925; 
55.21 	(2) administration, enforcement, and implementation of sections 84.773 to 84.929; 
55.22 	(3) acquisition, maintenance, and development of vehicle trails and use areas;
55.23 	(4) grant-in-aid programs to counties and municipalities to construct and maintain 
55.24 	all-terrain vehicle trails and use areas;
55.25 	(5) grants-in-aid to local safety programs; and
55.26 	(6) enforcement and public education grants to local law enforcement agencies.; and
55.27 	(7) maintenance of minimum-maintenance forest roads designated under section 
55.28 	89.71, subdivision 5, and county forest roads that are part of a designated trail system 
55.29 	within state forest boundaries as established under section 89.021.
55.30 	The distribution of funds made available through grant-in-aid programs must be 
55.31 	guided by the statewide comprehensive outdoor recreation plan.

55.32 	Sec. 31. Minnesota Statutes 2006, section 84.963, is amended to read:
55.33 	84.963 PRAIRIE PLANT SEED PRODUCTION AREAS.
56.1 	(a) The commissioner of natural resources shall study the feasibility of establishing 
56.2 	private or public prairie plant seed production areas within prairie land locations. If 
56.3 	prairie plant seed production is feasible, the commissioner may aid the establishment of 
56.4 	production areas. The commissioner may enter cost-share or sharecrop agreements with 
56.5 	landowners having easements for conservation purposes of ten or more years on their land 
56.6 	to commercially produce prairie plant seed of Minnesota origin. The commissioner may 
56.7 	only aid prairie plant seed production areas on agricultural land used to produce crops 
56.8 	before December 23, 1985, and cropped three out of five years between 1981 and 1985.
56.9 	(b) The commissioner shall compile, prepare, and electronically disseminate to 
56.10 	the public prairie establishment guidance materials and resources. The resources must 
56.11 	provide information and guidance on project planning, seed selection including ecotype 
56.12 	and species mix, site preparation, seeding, maintenance, and technical service providers. 
56.13 	The commissioner shall use actual prairie restoration projects under development on 
56.14 	state-owned land to illustrate and demonstrate the practices described.

56.15 	Sec. 32. Minnesota Statutes 2006, section 84D.02, is amended by adding a subdivision 
56.16 	to read:
56.17 		Subd. 7.Contracts for services for emergency invasive species prevention work; 
56.18 	commissions to persons employed. The commissioner may contract for or accept the 
56.19 	services of any persons whose aid is available, temporarily or otherwise, in emergency 
56.20 	invasive species prevention work, either gratuitously or for compensation not in excess of 
56.21 	the limits provided by law with respect to the employment of labor by the commissioner. 
56.22 	The commissioner may issue a commission, or other written evidence of authority, to any 
56.23 	person whose services are so arranged for and may thereby empower the person to act, 
56.24 	temporarily or otherwise, in any other capacity, with powers and duties as may be specified 
56.25 	in the commission or other written evidence of authority, but not in excess of the powers 
56.26 	conferred by law. The commissioner of agriculture, under authority provided by law, shall 
56.27 	cooperate with the commissioner in emergency control of invasive species prevention.

56.28 	Sec. 33. Minnesota Statutes 2006, section 84D.03, subdivision 1, is amended to read:
56.29 		Subdivision 1.Infested waters; restricted activities. (a) The commissioner shall 
56.30 	designate a water of the state as an infested water if the commissioner determines that:
56.31 	(1) the water contains a population of an aquatic invasive species that could spread 
56.32 	to other waters if use of the water and related activities are not regulated to prevent this; or
56.33 	(2) the water is highly likely to be infested by an aquatic invasive species because it 
56.34 	is connected to a water that contains a population of an aquatic invasive species.
57.1 	(b) When determining which invasive species comprise infested waters, the 
57.2 	commissioner shall consider:
57.3 	(1) the extent of a species distribution within the state;
57.4 	(2) the likely means of spread for a species; and
57.5 	(3) whether regulations specific to infested waters containing a specific species 
57.6 	will effectively reduce that species' spread.
57.7 	(c) The presence of common carp and curly-leaf pondweed shall not be the basis for 
57.8 	designating a water as infested.
57.9 	(d) The designation of infested waters by the commissioner shall be by written order 
57.10 	published in the State Register. Designations are not subject to the rulemaking provisions 
57.11 	of chapter 14 and section 14.386 does not apply.

57.12 	Sec. 34. Minnesota Statutes 2006, section 84D.12, subdivision 1, is amended to read:
57.13 		Subdivision 1.Required rules. The commissioner shall adopt rules:
57.14 	(1) designating infested waters, prohibited invasive species, regulated invasive 
57.15 	species, and unregulated nonnative species of aquatic plants and wild animals;
57.16 	(2) governing the application for and issuance of permits under this chapter, which 
57.17 	rules may include a fee schedule; and
57.18 	(3) governing notification under section 84D.08. 

57.19 	Sec. 35. Minnesota Statutes 2006, section 84D.12, subdivision 3, is amended to read:
57.20 		Subd. 3.Expedited rules. The commissioner may adopt rules under section 84.027, 
57.21 	subdivision 13, that designate: 
57.22 	(1) prohibited invasive species of aquatic plants and wild animals;
57.23 	(2) regulated invasive species of aquatic plants and wild animals; and
57.24 	(3) unregulated nonnative species of aquatic plants and wild animals; and
57.25 	(4) infested waters.

57.26 	Sec. 36. Minnesota Statutes 2006, section 84D.13, subdivision 7, is amended to read:
57.27 		Subd. 7.Satisfaction of civil penalties. A civil penalty is due and a watercraft 
57.28 	license suspension is effective 30 days after issuance of the civil citation. A civil penalty 
57.29 	collected under this section is payable to the commissioner and must be credited to the 
57.30 	water recreation account invasive species account.

57.31 	Sec. 37. Minnesota Statutes 2006, section 84D.14, is amended to read:
57.32 	84D.14 EXEMPTIONS.
58.1 	This chapter does not apply to:
58.2 	(1) pathogens and terrestrial arthropods regulated under sections 18G.01 to 18G.16
58.3 	18G.15; or 
58.4 	(2) mammals and birds defined by statute as livestock.

58.5 	Sec. 38. [84D.15] INVASIVE SPECIES ACCOUNT.
58.6 		Subdivision 1.Creation. The invasive species account is created in the state 
58.7 	treasury in the natural resources fund.
58.8 		Subd. 2.Receipts. Money received from surcharges on watercraft licenses under 
58.9 	section 86B.415, subdivision 7, and civil penalties under section 84D.13 shall be deposited 
58.10 	in the invasive species account. Each year, the commissioner of finance shall transfer from 
58.11 	the game and fish fund to the invasive species account, the annual surcharge collected on 
58.12 	nonresident fishing licenses under section 97A.475, subdivision 7, paragraph (b).
58.13 		Subd. 3.Use of money in account. Money credited to the invasive species account 
58.14 	in subdivision 2 shall be used for management of invasive species and implementation of 
58.15 	this chapter as it pertains to invasive species, including control, public awareness, law 
58.16 	enforcement, assessment and monitoring, management planning, and research.

58.17 	Sec. 39. Minnesota Statutes 2006, section 85.013, is amended by adding a subdivision 
58.18 	to read:
58.19 		Subd. 11b. Greenleaf Lake State Recreation Area, which is hereby renamed from 
58.20 	Greenleaf Lake State Park.

58.21 	Sec. 40. [85.0146] CUYUNA COUNTRY STATE RECREATION AREA; 
58.22 	CITIZENS ADVISORY COUNCIL.
58.23 		Subdivision 1.Advisory council created. The Cuyuna Country State Recreation 
58.24 	Area Citizens Advisory Council is established. Membership on the advisory council 
58.25 	shall include:
58.26 	(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers 
58.27 	Board;
58.28 	(2) a representative of the Croft Mine Historical Park Joint Powers Board;
58.29 	(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has 
58.30 	worked as a miner in the local area;
58.31 	(4) a representative of the Crow Wing County Board;
58.32 	(5) an elected state official;
59.1 	(6) a representative of the Grand Rapids regional office of the Department of Natural 
59.2 	Resources;
59.3 	(7) a designee of the Iron Range Resources and Rehabilitation Board;
59.4 	(8) a designee of the local business community selected by the area chambers of 
59.5 	commerce;
59.6 	(9) a designee of the local environmental community selected by the Crow Wing 
59.7 	County District 5 commissioner;
59.8 	(10) a designee of a local education organization selected by the Crosby-Ironton 
59.9 	School Board; 
59.10 	(11) a designee of one of the recreation area user groups selected by the Cuyuna 
59.11 	Range Chamber of Commerce; and 
59.12 	(12) a member of the Cuyuna Country Heritage Preservation Society.
59.13 		Subd. 2.Administration. (a) The advisory council must meet at least four times 
59.14 	annually. The council shall elect a chair and meetings shall be at the call of the chair.
59.15 	(b) Members of the advisory council shall serve as volunteers for two-year terms 
59.16 	with the ability to be reappointed. Members shall accept no per diem.
59.17 	(c) The state recreation area manager may attend the council meetings and advise 
59.18 	the council of issues in management of the recreation area.
59.19 	(d) Before a major decision is implemented in the Cuyuna Country State Recreation 
59.20 	Area, the area manager must consult with the council and take into consideration any 
59.21 	council comments or advice that may impact the major decision.

59.22 	Sec. 41. Minnesota Statutes 2006, section 85.054, is amended by adding a subdivision 
59.23 	to read:
59.24 		Subd. 13.Cuyuna Country State Recreation Area. A state park permit is not 
59.25 	required and a fee may not be charged for motor vehicle entry or parking at Croft Mine 
59.26 	Historical Park and Portsmouth Mine Lake Overlook in Cuyuna Country State Recreation 
59.27 	Area, except for overnight camping. 

59.28 	Sec. 42. Minnesota Statutes 2006, section 85.32, subdivision 1, is amended to read:
59.29 		Subdivision 1.Areas marked. The commissioner of natural resources is authorized 
59.30 	in cooperation with local units of government and private individuals and groups when 
59.31 	feasible to mark canoe and boating routes on the Little Fork, Big Fork, Minnesota, 
59.32 	St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, 
59.33 	St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift 
59.34 	County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in Swift County 
60.1 	to Montevideo in Chippewa County, Long Prairie, Red River of the North, Sauk, Otter 
60.2 	Tail, Redwood, and Crow Rivers which have historic and scenic values and to mark 
60.3 	appropriately points of interest, portages, camp sites, and all dams, rapids, waterfalls, 
60.4 	whirlpools, and other serious hazards which are dangerous to canoe and watercraft 
60.5 	travelers.

60.6 	Sec. 43. Minnesota Statutes 2006, section 86B.706, subdivision 2, is amended to read:
60.7 		Subd. 2.Money deposited in account. The following shall be deposited in the state 
60.8 	treasury and credited to the water recreation account:
60.9 	(1) fees and surcharges from titling and licensing of watercraft under this chapter;
60.10 	(2) fines, installment payments, and forfeited bail according to section 86B.705, 
60.11 	subdivision 2;
60.12 	(3) civil penalties according to section 84D.13;
60.13 	(4) mooring fees and receipts from the sale of marine gas at state-operated or 
60.14 	state-assisted small craft harbors and mooring facilities according to section 86A.21;
60.15 	(5)(4) the unrefunded gasoline tax attributable to watercraft use under section 
60.16 	296A.18; and
60.17 	(6)(5) fees for permits issued to control or harvest aquatic plants other than wild 
60.18 	rice under section 103G.615, subdivision 2.

60.19 	Sec. 44. Minnesota Statutes 2006, section 88.01, is amended by adding a subdivision 
60.20 	to read:
60.21 		Subd. 27.Community forest. "Community forest" means public and private trees 
60.22 	and associated plants occurring individually, in small groups, or under forest conditions 
60.23 	within a municipality.

60.24 	Sec. 45. Minnesota Statutes 2006, section 88.79, subdivision 1, is amended to read:
60.25 		Subdivision 1.Employment of competent foresters; service to private owners.
 60.26 	The commissioner of natural resources may employ competent foresters to furnish owners 
60.27 	of forest lands within the state of Minnesota who own not more than 1,000 acres of forest 
60.28 	land, forest management services consisting of: 
60.29 	(1) advice in management and protection of timber, including written stewardship 
60.30 	and forest management plans; 
60.31 	(2) selection and marking of timber to be cut; 
60.32 	(3) measurement of products; 
60.33 	(4) aid in marketing harvested products;
61.1 	(5) provision of tree-planting equipment; and
61.2 	(6) advice in community forest management; and
61.3 	(7) such other services as the commissioner of natural resources deems necessary 
61.4 	or advisable to promote maximum sustained yield of timber and other benefits upon 
61.5 	such forest lands.

61.6 	Sec. 46. Minnesota Statutes 2006, section 88.79, subdivision 2, is amended to read:
61.7 		Subd. 2.Charge for service; receipts to special revenue fund. The commissioner 
61.8 	of natural resources may charge the owner receiving such services such sums as the 
61.9 	commissioner shall determine to be fair and reasonable. The charges must account for 
61.10 	differences in the value of timber and other benefits. The receipts from such services shall 
61.11 	be credited to the special revenue fund and are annually appropriated to the commissioner 
61.12 	for the purposes specified in subdivision 1.

61.13 	Sec. 47. Minnesota Statutes 2006, section 88.82, is amended to read:
61.14 	88.82 MINNESOTA RELEAF PROGRAM.
61.15 	The Minnesota releaf program is established in the Department of Natural Resources 
61.16 	to encourage, promote, and fund the inventory, planting, assessment, maintenance, and
61.17 	improvement, protection, and restoration of trees and forest resources in this state to 
61.18 	enhance community forest ecosystem health and sustainability as well as to reduce 
61.19 	atmospheric carbon dioxide levels and promote energy conservation.

61.20 	Sec. 48. Minnesota Statutes 2006, section 89.001, subdivision 8, is amended to read:
61.21 		Subd. 8.Forest resources. "Forest resources" means those natural assets of forest 
61.22 	lands, including timber and other forest crops; biological diversity; recreation; fish and 
61.23 	wildlife habitat; wilderness; rare and distinctive flora and fauna; air; water; soil; climate; 
61.24 	and educational, aesthetic, and historic values.

61.25 	Sec. 49. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision 
61.26 	to read:
61.27 		Subd. 15.Forest pest. "Forest pest" means any vertebrate or invertebrate animal, 
61.28 	plant pathogen, or plant that is determined by the commissioner to be harmful, injurious, 
61.29 	or destructive to forests or timber.

61.30 	Sec. 50. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision 
61.31 	to read:
62.1 		Subd. 16.Shade tree pest. "Shade tree pest" means any vertebrate or invertebrate 
62.2 	animal, plant pathogen, or plant that is determined by the commissioner to be harmful, 
62.3 	injurious, or destructive to shade trees or community forests.

62.4 	Sec. 51. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision 
62.5 	to read:
62.6 		Subd. 17.Community forest. "Community forest" has the meaning given under 
62.7 	section 88.01, subdivision 27.

62.8 	Sec. 52. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision 
62.9 	to read:
62.10 		Subd. 18.Shade tree. "Shade tree" means a woody perennial grown primarily 
62.11 	for aesthetic or environmental purposes.

62.12 	Sec. 53. Minnesota Statutes 2006, section 89.01, subdivision 1, is amended to read:
62.13 		Subdivision 1.Best methods. The commissioner shall ascertain and observe the 
62.14 	best methods of reforesting cutover and denuded lands, foresting waste lands, preventing 
62.15 	destructionminimizing loss or damage of forests and landsforest resources by fire, forest 
62.16 	pests, or shade tree pests, administering forests on forestry principles, encouraging private 
62.17 	owners to preserve and grow trees or timber for commercial or other purposes, and 
62.18 	conserving the forests around the head waters of streams and on the watersheds of the state.

62.19 	Sec. 54. Minnesota Statutes 2006, section 89.01, subdivision 2, is amended to read:
62.20 		Subd. 2.General duties. The commissioner shall execute all rules pertaining 
62.21 	to forestry and forest protection within the jurisdiction of the state; have charge of the 
62.22 	work of protecting all forests and lands from fire, forest pests, and shade tree pests; 
62.23 	shall investigate the origin of all forest fires; and prosecute all violators as provided by 
62.24 	law; shall prepare and print for public distribution an abstract of the forest fire laws of 
62.25 	Minnesota, together with such rules as may be formulated.
62.26 	The commissioner shall prepare printed notices calling attention to the dangers from 
62.27 	forest fires and cause them to be posted in conspicuous places.

62.28 	Sec. 55. Minnesota Statutes 2006, section 89.01, subdivision 4, is amended to read:
62.29 		Subd. 4.Forest plans. The commissioner shall cooperate with the several 
62.30 	departments of the state and federal governments and with counties, towns, municipalities, 
62.31 	corporations, or individuals in the preparation of plans for forest protection,and 
63.1 	management, and planting or  replacement of trees, in wood lots, and community forests 
63.2 	or on timber tracts, using such influence as time will permit toward the establishment of 
63.3 	scientific forestry principles in the management, protection, and promotion of the forest 
63.4 	resources of the state.

63.5 	Sec. 56. Minnesota Statutes 2006, section 89.22, subdivision 2, is amended to read:
63.6 		Subd. 2.Receipts to natural resources special revenue fund. Fees collected under 
63.7 	subdivision 1 shall be credited to a forest land use account in the natural resources fund
63.8 	the special revenue fund and are annually appropriated to the commissioner to recoup the 
63.9 	costs of developing, operating, and maintaining facilities necessary for the specified uses 
63.10 	in subdivision 1 or to prevent or mitigate resource impacts of those uses. 

63.11 	EFFECTIVE DATE. This section is effective July 1, 2007, and applies to fees 
63.12 	collected according to Minnesota Statutes, section 89.22, subdivision 1, after August 
63.13 	1, 2006.

63.14 	Sec. 57. [89.421] FOREST RESOURCE ASSESSMENT PRODUCTS AND 
63.15 	SERVICES ACCOUNT.
63.16 		Subdivision 1.Creation. The forest resource assessment products and services 
63.17 	account is created in the state treasury in the natural resources fund.
63.18 		Subd. 2.Receipts. Money received from forest resource assessment product sales 
63.19 	and services provided by the commissioner under sections 84.025, subdivision 9; 84.026; 
63.20 	and 84.0855 shall be credited to the forest resource assessment products and services 
63.21 	account. Forest resource assessment products and services include the sale of aerial 
63.22 	photography, remote sensing, and satellite imagery products and services.
63.23 		Subd. 3.Use of money in account. Money credited to the forest resource 
63.24 	assessment products and services account under subdivision 2 is annually appropriated to 
63.25 	the commissioner and shall be used to maintain the staff and facilities producing the aerial 
63.26 	photography, remote sensing, and satellite imagery products and services.

63.27 	Sec. 58. Minnesota Statutes 2006, section 89.51, subdivision 1, is amended to read:
63.28 		Subdivision 1.Applicability. For the purposes of sections 89.51 to 89.61 89.64 the 
63.29 	terms described in this section have the meanings ascribed to them. 

63.30 	Sec. 59. Minnesota Statutes 2006, section 89.51, subdivision 6, is amended to read:
63.31 		Subd. 6.Infestation. "Infestation," includes actual, potential, incipient, or 
63.32 	emergency emergent infestation or infection by forest pests or shade tree pests.

64.1 	Sec. 60. Minnesota Statutes 2006, section 89.51, subdivision 9, is amended to read:
64.2 		Subd. 9.Forest land or forest. "Forest land" or "forest," means land on which 
64.3 	occurs a stand or potential stand of trees valuable for timber products, watershed or 
64.4 	wildlife protection, recreational uses, community forest benefits, or other purposes, and 
64.5 	shall include lands owned or controlled by the state of Minnesota.

64.6 	Sec. 61. Minnesota Statutes 2006, section 89.52, is amended to read:
64.7 	89.52 SURVEYS, INVESTIGATIONS.
64.8 	The commissioner shall make surveys and investigations to determine the presence 
64.9 	of infestations of forest pests or shade tree pests. For this purpose, duly designated 
64.10 	representatives of the commissioner may enter at reasonable times on public and private 
64.11 	lands for the purpose of conducting such to conduct the surveys and investigations.

64.12 	Sec. 62. Minnesota Statutes 2006, section 89.53, is amended to read:
64.13 	89.53 CONTROL OF FOREST PESTS AND SHADE TREE PESTS.
64.14 		Subdivision 1.Commissioner's duties; notice of control measures. Whenever the 
64.15 	commissioner finds that an area in the state is infested or threatened to be infested with 
64.16 	forest pests or shade tree pests, the commissioner shall determine whether measures of 
64.17 	control are needed and are available, what control measures are to be applied, and the area 
64.18 	over which the control measures shall be applied. The commissioner shall prescribe 
64.19 	a proposed zone of infestation covering the area in which control measures are to be 
64.20 	applied and shall publish notice of the proposal once a week, for two successive weeks 
64.21 	in a newspaper having a general circulation in each county located in whole or in part 
64.22 	in the proposed zone of infestation. Prescribing zones of infestation isand prescribing 
64.23 	measures of control are exempt from the rulemaking provisions of chapter 14 and section 
64.24 	14.386 does not apply. 
64.25 		Subd. 2.Notice requirements; public comment. The notice shall include a 
64.26 	description of the boundaries of the proposed zone of infestation, the control measures 
64.27 	to be applied, and a time and place where municipalities and owners of forest lands or 
64.28 	shade trees in the zone may show cause orally or in writing why the zone and control 
64.29 	measures should or should not be established. The commissioner shall consider any 
64.30 	statements received in determining whether the zone shall be established and the control 
64.31 	measures applied.
64.32 		Subd. 3.Experimental programs. The commissioner may establish experimental 
64.33 	programs for the control of forest pests or shade tree pests and for municipal reforestation.

65.1 	Sec. 63. Minnesota Statutes 2006, section 89.54, is amended to read:
65.2 	89.54 ZONES OF INFESTATION, ESTABLISHMENT.
65.3 	Upon the decision by the commissioner that the establishment of a zone of 
65.4 	infestation is necessary, the commissioner shall make a written order establishing said
65.5 	the  zone, and upon making said the order, said the zone shall be established. Notice of the 
65.6 	establishment of the zone shall thereupon be published in a newspaper having a general 
65.7 	circulation in each county located in whole or in part in the proposed zone and posted on 
65.8 	the Department of Natural Resources Web site.

65.9 	Sec. 64. Minnesota Statutes 2006, section 89.55, is amended to read:
65.10 	89.55 INFESTATION CONTROL, COSTS.
65.11 	Upon the establishment of the zone of infestation, the commissioner may apply 
65.12 	measures of infestation prevention and control on public and private forest and other 
65.13 	lands within such zone and to any trees, timber, plants or shrubs thereon, wood or wood 
65.14 	products, or contaminated soil  harboring or which may harbor the forest pests or shade 
65.15 	tree pests. For this purpose, the duly authorized representatives of the commissioner 
65.16 	are authorized to enter upon any lands, public or private within such the zone. The 
65.17 	commissioner may enter into agreements with owners of the lands in the zone covering 
65.18 	the control work on their lands, and fixing the pro rata basis on which the cost of such the
65.19 	work will be shared between the commissioner and said the owner.

65.20 	Sec. 65. Minnesota Statutes 2006, section 89.56, subdivision 1, is amended to read:
65.21 		Subdivision 1.Statement of expenses; cost to owners. At the end of each fiscal 
65.22 	year and upon completion of the infestation control measures in any zone of infestation, 
65.23 	the commissioner shall prepare a certified statement of expenses incurred in carrying 
65.24 	out such the measures, including expenses of owners covered by agreements entered 
65.25 	into pursuant to section 89.55. The statement shall show the amount which that the 
65.26 	commissioner determines to be its the commissioner's share of the expenses. The share of 
65.27 	the commissioner may include funds and the value of other contributions made available 
65.28 	by the federal government and other cooperators. The balance of such the costs shall 
65.29 	constitute a charge on an acreage basis as provided herein against the owners of lands in 
65.30 	the zone containing trees valuable or potentially valuable for commercial timber purposes 
65.31 	and affected or likely to be affected by the forest pests or shade tree pests for which control 
65.32 	measures were conducted. In fixing the rates at which charges shall be made against each 
65.33 	owner, the commissioner shall consider the present commercial value of the trees on the 
65.34 	land, the present and potential benefits to such the owner from the application of the 
66.1 	control measures, and the cost of applying such the measures to the land, and such other 
66.2 	factors as in the discretion of the commissioner will enable determination of an equitable 
66.3 	distribution of the cost to all such owners. No charge shall be made against owners to the 
66.4 	extent that they have individually or as members of a cooperative association contributed 
66.5 	funds, supplies, or services pursuant to agreement under this section. 

66.6 	Sec. 66. Minnesota Statutes 2006, section 89.56, subdivision 3, is amended to read:
66.7 		Subd. 3.Collection. The unpaid charges assessed under sections 89.51 to 89.61
66.8 	89.64 and the actions of the commissioner on any protests filed pursuant to subdivision 2, 
66.9 	shall be reported to the tax levying authority for the county in which the lands for which 
66.10 	the charges are assessed are situated and shall be made a public record. Any charges 
66.11 	finally determined to be due shall become a special assessment and shall be payable 
66.12 	in the same manner and with the same interest and penalty charges and with the same 
66.13 	procedure for collection as apply to ad valorem property taxes. Upon collection of the 
66.14 	charges, the county treasurer shall forthwith cause the amounts thereof to be paid to the 
66.15 	forest pest and shade tree pest control fund account created by section 89.58. Any unpaid 
66.16 	charge or lien against the lands shall not be affected by the sale thereof or by dissolution 
66.17 	of the zone of infestation. 

66.18 	Sec. 67. Minnesota Statutes 2006, section 89.57, is amended to read:
66.19 	89.57 DISSOLUTION OF ZONE INFESTATION.
66.20 	Whenever the commissioner shall determine that forest pest or shade tree pest 
66.21 	control work within an established zone of infestation is no longer necessary or feasible, 
66.22 	the commissioner shall dissolve the zone.

66.23 	Sec. 68. Minnesota Statutes 2006, section 89.58, is amended to read:
66.24 	89.58 FOREST PEST AND SHADE TREE PEST CONTROL ACCOUNT.
66.25 	All money collected under the provisions of sections 89.51 to 89.61 89.64, together 
66.26 	with such money as may be appropriated by the legislature or allocated by the Legislative 
66.27 	Advisory Commission for the purposes of sections 89.51 to 89.61 89.64, and such money 
66.28 	as may be contributed or paid by the federal government, or any other public or private 
66.29 	agency, organization or individual, shall be deposited in the state treasury, to the credit 
66.30 	of the forest pest and shade tree pest control account, which account is hereby created, 
66.31 	and any moneys therein are appropriated to the commissioner for use in carrying out the 
66.32 	purposes hereof of sections 89.51 to 89.64. 

67.1 	Sec. 69. Minnesota Statutes 2006, section 89.59, is amended to read:
67.2 	89.59 COOPERATION.
67.3 	The commissioner may cooperate with the United States or agencies thereof, other 
67.4 	agencies of the state, county or municipal governments, agencies of neighboring states, or 
67.5 	other public or private organizations or individuals and may accept such funds, equipment, 
67.6 	supplies, or services from cooperators and others as itthe commissioner may provide in 
67.7 	agreements with the United States or its agencies for matching of federal funds as required 
67.8 	under laws of the United States relating to forest pests and shade tree pests.

67.9 	Sec. 70. Minnesota Statutes 2006, section 89.60, is amended to read:
67.10 	89.60 DUTIES, RULES; COMMISSIONER.
67.11 	The commissioner is authorized to employ personnel in accordance with the laws of 
67.12 	this state, to procure necessary equipment, supplies, and service, to enter into contracts, to 
67.13 	provide funds to any agency of the United States for work or services under sections 89.51
67.14 	to 89.61 89.64, and to designate or appoint, as its the commissioner's representatives, 
67.15 	employees of its cooperators, including employees of the United States or any agency 
67.16 	thereof. The commissioner may prescribe rules for carrying out the purposes hereof
67.17 	of this section. 

67.18 	Sec. 71. Minnesota Statutes 2006, section 89.61, is amended to read:
67.19 	89.61 ACT SUPPLEMENTAL.
67.20 	Provisions of sections 89.51 to 89.61 89.64 are supplementary to and not to be 
67.21 	construed to repeal existing legislation. 

67.22 	Sec. 72. [89.62] SHADE TREE PEST CONTROL; GRANT PROGRAM.
67.23 		Subdivision 1.Grants. The commissioner may make grants to aid in the control of 
67.24 	a shade tree pest. To be eligible, a grantee must have a pest control program approved 
67.25 	by the commissioner that:
67.26 	(1) defines tree ownership and who is responsible for the costs associated with 
67.27 	control measures;
67.28 	(2) defines the zone of infestation within which the control measures are to be 
67.29 	applied;
67.30 	(3) includes a tree inspector certified under section 89.63 and having the authority to 
67.31 	enter and inspect private lands;
68.1 	(4) has the means to enforce measures needed to limit the spread of shade tree 
68.2 	pests; and
68.3 	(5) provides that grant money received will be deposited in a separate fund to be 
68.4 	spent only for the purposes authorized by this section.
68.5 		Subd. 2.Grant eligibility. The following are eligible for grants under this section:
68.6 	(1) a home rule charter or statutory city or a town that exercises municipal powers 
68.7 	under section 368.01 or any general or special law; 
68.8 	(2) a special park district organized under chapter 398; 
68.9 	(3) a special-purpose park and recreation board; 
68.10 	(4) a soil and water conservation district; 
68.11 	(5) a county; or
68.12 	(6) any other organization with the legal authority to enter into contractual 
68.13 	agreements.
68.14 		Subd. 3.Rules; applicability to municipalities. The rules and procedures adopted 
68.15 	under this section by the commissioner apply in a municipality unless the municipality 
68.16 	adopts an ordinance determined by the commissioner to be more stringent than the rules 
68.17 	and procedures of the commissioner. The rules and procedures of the commissioner or 
68.18 	the municipality apply to all state agencies, special purpose districts, and metropolitan 
68.19 	commissions as defined in section 473.121, subdivision 5a, that own or control land 
68.20 	adjacent to or within a zone of infestation.

68.21 	Sec. 73. [89.63] CERTIFICATION OF TREE INSPECTORS.
68.22 	(a) The governing body of a municipality may appoint a qualified tree inspector. 
68.23 	Two or more municipalities may jointly appoint a tree inspector for the purpose of 
68.24 	administering their respective pest control programs.
68.25 	(b) Upon a determination by the commissioner that a candidate for the position 
68.26 	of tree inspector is qualified, the commissioner shall issue a certificate of qualification 
68.27 	to the tree inspector. The certificate is valid for one year. A person certified as a tree 
68.28 	inspector by the commissioner may enter and inspect any public or private property that 
68.29 	might harbor forest pests or shade tree pests. The commissioner shall offer an annual tree 
68.30 	inspector certification workshop, upon completion of which participants are qualified 
68.31 	as tree inspectors.
68.32 	(c) The commissioner may suspend and, upon notice and hearing, decertify a 
68.33 	tree inspector if the tree inspector fails to act competently or in the public interest in 
68.34 	the performance of duties.

69.1 	Sec. 74. [89.64] EXEMPTIONS.
69.2 	This chapter does not supersede the authority of the Department of Agriculture 
69.3 	under chapter 18G.

69.4 	Sec. 75. Minnesota Statutes 2006, section 89A.11, is amended to read:
69.5 	89A.11 REPEALER.
69.6 	Sections 89A.01; 89A.02; 89A.03; 89A.04; 89A.05; 89A.06; 89A.07; 89A.08; 
69.7 	89A.09; 89A.10; and 89A.11, are repealed June 30, 2007 2017.

69.8 	Sec. 76. Minnesota Statutes 2006, section 90.161, is amended by adding a subdivision 
69.9 	to read:
69.10 		Subd. 4.Change of security. Prior to any harvest activity, or activities incidental 
69.11 	to the preparation for harvest, a purchaser having posted a bond for 100 percent of the 
69.12 	purchase price of a sale may request the release of the bond and the commissioner shall 
69.13 	grant the release upon cash payment to the commissioner of 15 percent of the appraised 
69.14 	value of the sale, plus eight percent interest on the appraised value of the sale from the 
69.15 	date of purchase to the date of release.

69.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

69.17 	Sec. 77. Minnesota Statutes 2006, section 93.0015, subdivision 3, is amended to read:
69.18 		Subd. 3.Expiration. Notwithstanding section 15.059, subdivision 5, or other law to 
69.19 	the contrary, the committee expires June 30, 2007 2011. 

69.20 	Sec. 78. Minnesota Statutes 2006, section 93.22, subdivision 1, is amended to read:
69.21 		Subdivision 1.Generally. (a) All payments under sections 93.14 to 93.285 shall 
69.22 	be made to the Department of Natural Resources and shall be credited according to this 
69.23 	section. 
69.24 	(a) If the lands or minerals and mineral rights covered by a lease are held by the state 
69.25 	by virtue of an act of Congress, payments made under the lease shall be credited to the 
69.26 	permanent fund of the class of land to which the leased premises belong.
69.27 	(b) If a lease covers the bed of navigable waters, payments made under the lease 
69.28 	shall be credited to the permanent school fund of the state.
69.29 	(c) If the lands or minerals and mineral rights covered by a lease are held by the 
69.30 	state in trust for the taxing districts, payments made under the lease shall be distributed 
69.31 	annually on the first day of September as follows:
70.1 	(1) 20 percent to the general fund; and
70.2 	(2) 80 percent to the respective counties in which the lands lie, to be apportioned 
70.3 	among the taxing districts interested therein as follows: county, three-ninths; town or city, 
70.4 	two-ninths; and school district, four-ninths.
70.5 	(d) Except as provided under this section and except where the disposition of 
70.6 	payments may be otherwise directed by law, all payments shall be paid into the general 
70.7 	fund of the state.
70.8 	(b) Twenty percent of all payments under sections 93.14 to 93.285 shall be 
70.9 	credited to the minerals management account in the natural resources fund as costs for 
70.10 	the administration and management of state mineral resources by the commissioner of 
70.11 	natural resources.
70.12 	(c) The remainder of the payments shall be credited as follows:
70.13 	(1) if the lands or minerals and mineral rights covered by a lease are held by the state 
70.14 	by virtue of an act of Congress, payments made under the lease shall be credited to the 
70.15 	permanent fund of the class of land to which the leased premises belong;
70.16 	(2) if a lease covers the bed of navigable waters, payments made under the lease 
70.17 	shall be credited to the permanent school fund of the state;
70.18 	(3) if the lands or minerals and mineral rights covered by a lease are held by the state 
70.19 	in trust for the taxing districts, payments made under the lease shall be distributed annually 
70.20 	on the first day of September to the respective counties in which the lands lie, to be 
70.21 	apportioned among the taxing districts interested therein as follows: county, three-ninths; 
70.22 	town or city, two-ninths; and school district, four-ninths;
70.23 	(4) if the lands or mineral rights covered by a lease became the absolute property of 
70.24 	the state under the provisions of chapter 84A, payments made under the lease shall be 
70.25 	distributed as follows: county containing the land from which the income was derived, 
70.26 	five-eighths; and general fund of the state, three-eighths; and
70.27 	(5) except as provided under this section and except where the disposition of 
70.28 	payments may be otherwise directed by law, payments made under a lease shall be paid 
70.29 	into the general fund of the state.

70.30 	Sec. 79. Minnesota Statutes 2006, section 97A.045, is amended by adding a 
70.31 	subdivision to read:
70.32 		Subd. 12.Establishing fees. Notwithstanding section 16A.1283, the commissioner 
70.33 	may, by written order published in the State Register, establish fees providing for the use 
70.34 	of state wildlife management area or aquatic management area lands for specific purposes, 
71.1 	including dog trials, special events, and commercial uses. The fees are not subject to the 
71.2 	rulemaking provisions of chapter 14 and section 14.386 does not apply.

71.3 	Sec. 80. Minnesota Statutes 2006, section 97A.055, subdivision 4, is amended to read:
71.4 		Subd. 4.Game and fish annual reports. (a) By December 15 each year, 
71.5 	the commissioner shall submit to the legislative committees having jurisdiction over 
71.6 	appropriations and the environment and natural resources reports on each of the following:
71.7 	(1) the amount of revenue from the following and purposes for which expenditures 
71.8 	were made:
71.9 	(i) the small game license surcharge under section  97A.475, subdivision 4; 
71.10 	(ii) the Minnesota migratory waterfowl stamp under section  97A.475, subdivision 
71.11 	5, clause (1); 
71.12 	(iii) the trout and salmon stamp under section  97A.475, subdivision 10; 
71.13 	(iv) the pheasant stamp under section  97A.475, subdivision 5, clause (2); and
71.14 	(v) the turkey stamp under section  97A.475, subdivision 5, clause (3); and
71.15 	(vi) the deer license donations and surcharges under section 97A.475, subdivisions 
71.16 	3, paragraph (b), and 3a;
71.17 	(2) the amounts available under section  97A.075, subdivision 1, paragraphs (b) and 
71.18 	(c), and the purposes for which these amounts were spent; 
71.19 	(3) money credited to the game and fish fund under this section and purposes for 
71.20 	which expenditures were made from the fund;
71.21 	(4) outcome goals for the expenditures from the game and fish fund; and
71.22 	(5) summary and comments of citizen oversight committee reviews under 
71.23 	subdivision 4b.
71.24 	(b) The report must include the commissioner's recommendations, if any, for 
71.25 	changes in the laws relating to the stamps and surcharge referenced in paragraph (a).

71.26 	Sec. 81. Minnesota Statutes 2006, section 97A.065, is amended by adding a 
71.27 	subdivision to read:
71.28 		Subd. 6.Deer license donations and surcharges. (a) The surcharges and donations 
71.29 	collected under section 97A.475, subdivision 3, paragraph (b), and subdivision 3a, 
71.30 	shall be deposited in an account in the special revenue fund and are appropriated to 
71.31 	the commissioner for deer management, including for grants or payments to agencies, 
71.32 	organizations, or individuals for assisting with the cost of processing deer taken for 
71.33 	population management purposes for venison donation programs. None of the additional 
71.34 	license fees shall be transferred to any other agency for administration of programs other 
72.1 	than venison donation. If any money transferred by the commissioner is not used for a 
72.2 	venison donation program, it shall be returned to the commissioner. 
72.3 	(b) By February 10, 2010, the commissioner shall report to the legislature on the 
72.4 	participation in and the effectiveness of the venison donation program.

72.5 	Sec. 82. Minnesota Statutes 2006, section 97A.133, is amended by adding a 
72.6 	subdivision to read:
72.7 		Subd. 66. Vermillion Highlands Wildlife Management Area, Dakota County.

72.8 	Sec. 83. Minnesota Statutes 2006, section 97A.205, is amended to read:
72.9 	97A.205 ENFORCEMENT OFFICER POWERS.
72.10 	An enforcement officer is authorized to:
72.11 	(1) execute and serve court issued warrants and processes relating to wild animals, 
72.12 	wild rice, public waters, water pollution, conservation, and use of water, in the same 
72.13 	manner as a sheriff;
72.14 	(2) enter any land to carry out the duties and functions of the division;
72.15 	(3) make investigations of violations of the game and fish laws;
72.16 	(4) take an affidavit, if it aids an investigation;
72.17 	(5) arrest, without a warrant, a person who is detected in the actual violation of the 
72.18 	game and fish laws, a provision of chapters 84, 84A, 84D, 85, 86A, 88 to 97C, 103E, 
72.19 	103F, 103G, sections 86B.001 to 86B.815, 89.51 to 89.61 89.64; or 609.66, subdivision 1, 
72.20 	clauses (1), (2), (5), and (7); and 609.68; and 
72.21 	(6) take an arrested person before a court in the county where the offense was 
72.22 	committed and make a complaint.
72.23 	Nothing in this section grants an enforcement officer any greater powers than other 
72.24 	licensed peace officers.

72.25 	Sec. 84. Minnesota Statutes 2006, section 97A.405, subdivision 2, is amended to read:
72.26 		Subd. 2.Personal possession. (a) A person acting under a license or traveling from 
72.27 	an area where a licensed activity was performed must have in personal possession either: 
72.28 	(1) the proper license, if the license has been issued to and received by the person; or (2) 
72.29 	the proper license identification number or stamp validation, if the license has been sold to 
72.30 	the person by electronic means but the actual license has not been issued and received.
72.31 	(b) If possession of a license or a license identification number is required, a person 
72.32 	must exhibit, as requested by a conservation officer or peace officer, either: (1) the proper 
72.33 	license if the license has been issued to and received by the person; or (2) the proper 
73.1 	license identification number or stamp validation and a valid state driver's license, state 
73.2 	identification card, or other form of identification provided by the commissioner, if the 
73.3 	license has been sold to the person by electronic means but the actual license has not 
73.4 	been issued and received.
73.5 	(c) If the actual license has been issued and received, a receipt for license fees, a 
73.6 	copy of a license, or evidence showing the issuance of a license, including the license 
73.7 	identification number or stamp validation, does not entitle a licensee to exercise the rights 
73.8 	or privileges conferred by a license.
73.9 	(d) A license or stamp issued electronically and not immediately provided to the 
73.10 	licensee shall be mailed to the licensee within 30 days of purchase of the license or stamp 
73.11 	validation, except for a pictorial turkey stamp or a pictorial trout and salmon stamp. A 
73.12 	pictorial turkey stamp or a pictorial, migratory waterfowl, pheasant, or trout and salmon 
73.13 	stamp shall be mailed provided to the licensee after purchase of a license or stamp 
73.14 	validation only if the licensee pays an additional $2 fee.

73.15 	Sec. 85. Minnesota Statutes 2006, section 97A.411, subdivision 1, is amended to read:
73.16 		Subdivision 1.License period. (a) Except as provided in paragraphs (b), (c), and
73.17 	(d), and (e), a license is valid during the lawful time within the license year that the 
73.18 	licensed activity may be performed. A license year begins on the first day of March and 
73.19 	ends on the last day of February.
73.20 	(b) A license issued under section 97A.475, subdivision 6, clause (5), 97A.475, 
73.21 	subdivision 7, clause (2), (3), (5), or (6), or 97A.475, subdivision 12, clause (2), is valid 
73.22 	for the full license period even if this period extends into the next license year, provided 
73.23 	that the license period selected by the licensee begins at the time of issuance. 
73.24 	(c) When the last day of February falls on a Saturday, an annual resident or 
73.25 	nonresident fish house or dark house license, including a rental fish house or dark house 
73.26 	license, obtained for the license year covering the last day of February, is valid through 
73.27 	Sunday, March 1 and the angling license of the fish house licensee is extended through 
73.28 	March 1.
73.29 	(d) A lifetime license issued under section 97A.473 or 97A.474 is valid during the 
73.30 	lawful time within the license year that the licensed activity may be performed for the 
73.31 	lifetime of the licensee. 
73.32 	(e) A three-year fish house or dark house license is valid during the license year that 
73.33 	it is purchased and the two succeeding license years.

73.34 	Sec. 86. Minnesota Statutes 2006, section 97A.451, subdivision 3a, is amended to read:
74.1 		Subd. 3a.Nonresidents under age 16 18; small game. (a) A nonresident under 
74.2 	age 16 18 may obtain a small game license at the resident fee under section 97A.475, 
74.3 	subdivision 2, clause (2), if the nonresident:
74.4 	(1) possesses a firearms safety certificate; or
74.5 	(2) if age 13 or under, is accompanied by a parent or guardian when purchasing 
74.6 	the license.
74.7 	(b) A nonresident age 13 or under must be accompanied by a parent or guardian 
74.8 	to take small game. A nonresident age 12 or under is not required to possess a firearms 
74.9 	safety certificate under section 97B.020 to take small game. 

74.10 	Sec. 87. Minnesota Statutes 2006, section 97A.465, is amended by adding a 
74.11 	subdivision to read:
74.12 		Subd. 1a.Spouses of residents on active military duty. Notwithstanding section 
74.13 	97A.405, subdivision 5, the spouse of a resident who is on active military duty may obtain 
74.14 	resident hunting and fishing licenses.

74.15 	Sec. 88. Minnesota Statutes 2006, section 97A.465, is amended by adding a 
74.16 	subdivision to read:
74.17 		Subd. 1b.Residents discharged from active service. (a) A resident who has served 
74.18 	at any time during the preceding 24 months in federal active service, as defined in section 
74.19 	190.05, subdivision 5c, outside the United States as a member of the National Guard, or as 
74.20 	a reserve component or active duty member of the United States armed forces and has 
74.21 	been discharged from active service may take small game and fish without a license if the 
74.22 	resident possesses official military discharge papers. The resident must obtain the seals, 
74.23 	tags, and coupons required of a licensee, which must be furnished without charge.
74.24 	(b) The commissioner shall issue, without fee, a deer license to a resident who has 
74.25 	served at any time during the preceding 24 months in federal active service, as defined 
74.26 	in section 190.05, subdivision 5c, outside the United States as a member of the National 
74.27 	Guard, or as a reserve component or active duty member of the United States armed 
74.28 	forces and has been discharged from active service. Eligibility under this paragraph is 
74.29 	limited to one license per resident.

74.30 	Sec. 89. Minnesota Statutes 2006, section 97A.473, subdivision 3, is amended to read:
74.31 		Subd. 3.Lifetime small game hunting license; fee. (a) A resident lifetime small 
74.32 	game hunting license authorizes a person to hunt and trap small game in the state. The 
74.33 	license authorizes those hunting and trapping activities authorized by the annual resident 
75.1 	small game hunting license and trapping licenses. The license does not include a turkey 
75.2 	stamp validation or any other hunting stamps required by law.
75.3 	(b) The fees for a resident lifetime small game hunting license are:
75.4 	(1) age 3 and under, $217;
75.5 	(2) age 4 to age 15, $290;
75.6 	(3) age 16 to age 50, $363; and
75.7 	(4) age 51 and over, $213.

75.8 	EFFECTIVE DATE. This section is effective August 1, 2007, and applies 
75.9 	retroactively to licenses issued after February 28, 2001.

75.10 	Sec. 90. Minnesota Statutes 2006, section 97A.473, subdivision 5, is amended to read:
75.11 		Subd. 5.Lifetime sporting license; fee. (a) A resident lifetime sporting license 
75.12 	authorizes a person to take fish by angling and hunt and trap small game in the state. 
75.13 	The license authorizes those activities authorized by the annual resident angling and,
75.14 	resident small game hunting, and resident trapping licenses. The license does not include 
75.15 	a trout and salmon stamp validation, a turkey stamp validation, or any other hunting 
75.16 	stamps required by law.
75.17 	(b) The fees for a resident lifetime sporting license are:
75.18 	(1) age 3 and under, $357;
75.19 	(2) age 4 to age 15, $480;
75.20 	(3) age 16 to age 50, $613; and
75.21 	(4) age 51 and over, $413.

75.22 	EFFECTIVE DATE. This section is effective August 1, 2007, and applies 
75.23 	retroactively to licenses issued after February 28, 2001.

75.24 	Sec. 91. Minnesota Statutes 2006, section 97A.475, subdivision 3, is amended to read:
75.25 		Subd. 3.Nonresident hunting. (a) Fees for the following licenses, to be issued 
75.26 	to nonresidents, are:
75.27 	(1) for persons age 18 and older to take small game, $73;
75.28 	(2) for persons age 18 and older to take deer with firearms, $135;
75.29 	(3) for persons age 18 and older to take deer by archery, the greater of:
75.30 	(i) an amount equal to the total amount of license fees and surcharges charged to a 
75.31 	Minnesota resident to take deer by archery in the person's state or province of residence; or
75.32 	(ii) $135;
75.33 	(4) to take bear, $195;
76.1 	(5) to take turkey, $73;
76.2 	(6) to take raccoon,or bobcat,fox, or coyote, $155;
76.3 	(7) multizone license to take antlered deer in more than one zone, $270; and
76.4 	(8) to take Canada geese during a special season, $4;
76.5 	(9) for persons at least age 12 and under age 18 to take deer with firearms during the 
76.6 	regular firearms season in any open zone or time period, $13; and
76.7 	(10) for persons at least age 12 and under age 18 to take deer by archery, $13.
76.8 	(b) A $5 surcharge shall be added to nonresident hunting licenses issued under 
76.9 	paragraph (a), clauses (1) to (7). An additional commission may not be assessed on this 
76.10 	surcharge.

76.11 	Sec. 92. Minnesota Statutes 2006, section 97A.475, is amended by adding a 
76.12 	subdivision to read:
76.13 		Subd. 3a.Deer license surcharge. A person may agree to add a donation of $1, $3, 
76.14 	or $5 to the fees for annual resident and nonresident licenses to take deer by firearms or 
76.15 	archery established under subdivisions 2, clauses (4), (5), (9), and (11), and 3, clauses (2), 
76.16 	(3), and (7). Beginning March 1, 2008, fees for bonus licenses to take deer by firearms or 
76.17 	archery established under section 97B.301, subdivision 4, must be increased by a surcharge 
76.18 	of $1. An additional commission may not be assessed on the donation or surcharge and 
76.19 	the following statement must be included in the annual deer hunting regulations: "The 
76.20 	deer license donations and surcharges are being paid by hunters for deer management, 
76.21 	including assisting with the costs of processing deer donated for charitable purposes."

76.22 	Sec. 93. Minnesota Statutes 2006, section 97A.475, subdivision 7, is amended to read:
76.23 		Subd. 7.Nonresident fishing. (a) Fees for the following licenses, to be issued 
76.24 	to nonresidents, are:
76.25 	(1) to take fish by angling, $34 $37.50;
76.26 	(2) to take fish by angling limited to seven consecutive days selected by the licensee, 
76.27 	$24 $26.50;
76.28 	(3) to take fish by angling for a 72-hour period selected by the licensee, $20 $22;
76.29 	(4) to take fish by angling for a combined license for a family for one or both parents 
76.30 	and dependent children under the age of 16, $46 $50.50;
76.31 	(5) to take fish by angling for a 24-hour period selected by the licensee, $8.50; and
76.32 	(6) to take fish by angling for a combined license for a married couple, limited to 14 
76.33 	consecutive days selected by one of the licensees, $35 $38.50.
77.1 	(b) A $2 surcharge shall be added to all nonresident fishing licenses, except licenses 
77.2 	issued under paragraph (a), clause (5). An additional commission may not be assessed 
77.3 	on this surcharge.

77.4 	EFFECTIVE DATE. This section is effective March 1, 2008.

77.5 	Sec. 94. Minnesota Statutes 2006, section 97A.475, subdivision 11, is amended to read:
77.6 		Subd. 11.Fish houses and dark houses; residents. Fees for the following licenses 
77.7 	are:
77.8 	(1) annual for a fish house or dark house that is not rented, $11.50; and
77.9 	(2) annual for a fish house or dark house that is rented, $26;
77.10 	(3) three-year for a fish house or dark house that is not rented, $34.50; and
77.11 	(4) three-year for a fish house or dark house that is rented, $78.

77.12 	Sec. 95. Minnesota Statutes 2006, section 97A.475, subdivision 12, is amended to read:
77.13 		Subd. 12.Fish houses; nonresident. Fees for fish house licenses for a nonresident 
77.14 	are:
77.15 	(1) annual, $33; and
77.16 	(2) seven consecutive days, $19; and
77.17 	(3) three-year, $99.

77.18 	Sec. 96. Minnesota Statutes 2006, section 97A.485, subdivision 7, is amended to read:
77.19 		Subd. 7.Electronic licensing system commission. The commissioner shall retain 
77.20 	for the operation of the electronic licensing system the commission established under 
77.21 	section 84.027, subdivision 15, and issuing fees collected by the commissioner on all 
77.22 	license fees collected, excluding:
77.23 	(1) the small game surcharge; and
77.24 	(2) the deer license surcharges or donations under section 97A.475, subdivisions 3, 
77.25 	paragraph (b), and 3a; and
77.26 	(3) $2.50 of the license fee for the licenses in section 97A.475, subdivisions 6, 
77.27 	clauses (1), (2), and (4), 7, 8, 12, and 13.

77.28 	Sec. 97. [97B.303] VENISON DONATIONS.
77.29 	An individual who legally takes a deer may donate the deer, for distribution to 
77.30 	charitable food assistance programs, to a meat processor that is licensed under chapter 
77.31 	28A. An individual donating a deer must supply the processor with the tag number under 
77.32 	which the deer was taken.

78.1 	Sec. 98. Minnesota Statutes 2006, section 97B.601, subdivision 3, is amended to read:
78.2 		Subd. 3.Nonresidents: raccoon, or bobcat, fox, coyote. A nonresident may not 
78.3 	take raccoon, or bobcat, fox, or coyote by firearms without a separate license to take that 
78.4 	animal in addition to a small game license.

78.5 	Sec. 99. Minnesota Statutes 2006, section 97B.715, subdivision 1, is amended to read:
78.6 		Subdivision 1.Stamp required. (a) Except as provided in paragraph (b) or section 
78.7 	97A.405, subdivision 2, a person required to possess a small game license may not hunt 
78.8 	pheasants without:
78.9 	(1) a pheasant stamp in possession; and
78.10 	(2) a pheasant stamp validation on the small game license when issued electronically.
78.11 	(b) The following persons are exempt from this subdivision:
78.12 	(1) residents under age 18 or over age 65;
78.13 	(2) persons hunting on licensed commercial shooting preserves; and
78.14 	(3) resident disabled veterans with a license issued under section 97A.441, 
78.15 	subdivision 6a. 

78.16 	Sec. 100. Minnesota Statutes 2006, section 97B.801, is amended to read:
78.17 	97B.801 MINNESOTA MIGRATORY WATERFOWL STAMP REQUIRED.
78.18 	(a) Except as provided in this section or section 97A.405, subdivision 2, a person 
78.19 	required to possess a small game license may not take migratory waterfowl without:
78.20 	(1) a Minnesota migratory waterfowl stamp in possession; and
78.21 	(2) a migratory waterfowl stamp validation on the small game license when issued 
78.22 	electronically.
78.23 	(b) Residents under age 18 or over age 65; resident disabled veterans with a license 
78.24 	issued under section 97A.441, subdivision 6a; and persons hunting on their own property 
78.25 	are not required to possess a stamp or a license validation under this section. 

78.26 	Sec. 101. Minnesota Statutes 2006, section 97C.081, subdivision 3, is amended to read:
78.27 		Subd. 3.Contests requiring a permit. (a) A person must have a permit from the 
78.28 	commissioner to conduct a fishing contest that does not meet the criteria in subdivision 2. 
78.29 	Permits shall be issued without a fee. The commissioner shall charge a fee for the permit 
78.30 	that recovers the costs of issuing the permit and of monitoring the activities allowed by 
78.31 	the permit. The commissioner may waive the fee under this subdivision for a charitable 
78.32 	organization. Notwithstanding section 16A.1283, the commissioner may, by written order 
79.1 	published in the State Register, establish contest permit fees. The fees are not subject to 
79.2 	the rulemaking provisions of chapter 14 and section 14.386 does not apply.
79.3 	(b) If entry fees are over $25 per person, or total prizes are valued at more than 
79.4 	$25,000, and if the applicant has either:
79.5 	(1) not previously conducted a fishing contest requiring a permit under this 
79.6 	subdivision; or
79.7 	(2) ever failed to make required prize awards in a fishing contest conducted by 
79.8 	the applicant, the commissioner may require the applicant to furnish the commissioner 
79.9 	evidence of financial responsibility in the form of a surety bond or bank letter of credit in 
79.10 	the amount of $25,000.
79.11 	(c) The permit fee for any individual contest may not exceed the following amounts:
79.12 	(1) $120 for an open water contest not exceeding 100 participants and without 
79.13 	off-site weigh-in;
79.14 	(2) $400 for an open water contest with more than 100 participants and without 
79.15 	off-site weigh-in;
79.16 	(3) $500 for an open water contest not exceeding 100 participants with off-site 
79.17 	weigh-in;
79.18 	(4) $1,000 for an open water contest with more than 100 participants with off-site 
79.19 	weigh-in; or
79.20 	(5) $120 for an ice fishing contest with more than 150 participants.

79.21 	Sec. 102. Minnesota Statutes 2006, section 97C.355, subdivision 2, is amended to read:
79.22 		Subd. 2.License required. A person may not take fish from a dark house or fish 
79.23 	house that is left unattended on the ice overnight unless the house is licensed and has a 
79.24 	license tag attached to the exterior in a readily visible location, except as provided in this 
79.25 	subdivision. The commissioner must issue a tag with a dark house or fish house license, 
79.26 	marked with a number to correspond with the license and the year of issue. A dark house 
79.27 	or fish house license is not required of a resident on boundary waters where the adjacent 
79.28 	state does not charge a fee for the same activity.

79.29 	Sec. 103. Minnesota Statutes 2006, section 103B.101, is amended by adding a 
79.30 	subdivision to read:
79.31 		Subd. 12.Authority to issue penalty orders. (a) The board may issue an order 
79.32 	requiring violations to be corrected and administratively assessing monetary penalties of 
79.33 	up to $10,000 per violation for violations of this chapter and chapters 103C, 103D, 103E, 
80.1 	103F, and 103G, any rules adopted under those chapters, and any standards, limitations, or 
80.2 	conditions established by the board.
80.3 	(b) Administrative penalties issued under paragraph (a) may be appealed according 
80.4 	to section 116.072, if the recipient of the penalty requests a hearing by notifying the 
80.5 	commissioner in writing within 30 days after receipt of the order. For the purposes of this 
80.6 	section, the terms "commissioner" and "agency" as used in section 116.072 mean the 
80.7 	board. If a hearing is not requested within the 30-day period, the order becomes a final 
80.8 	order not subject to further review.
80.9 	(c) Administrative penalty orders issued under paragraph (a) may be enforced 
80.10 	under section 116.072, subdivision 9. Penalty amounts must be remitted within 30 days 
80.11 	of issuance of the order.

80.12 	EFFECTIVE DATE. This section is effective the day following final enactment.

80.13 	Sec. 104. [103B.102] LOCAL WATER MANAGEMENT ACCOUNTABILITY 
80.14 	AND OVERSIGHT.
80.15 		Subdivision 1.Findings; improving accountability and oversight. The legislature 
80.16 	finds that a process is needed to monitor the performance and activities of local water 
80.17 	management entities. The process should be preemptive so that problems can be identified 
80.18 	early and systematically. Underperforming entities should be provided assistance and 
80.19 	direction for improving performance in a reasonable time frame.
80.20 		Subd. 2.Definitions. For the purposes of this section, "local water management 
80.21 	entities" means watershed districts, soil and water conservation districts, metropolitan 
80.22 	water management organizations, and counties operating separately or jointly in their 
80.23 	role as local water management authorities under chapter 103B, 103C, 103D, or 103G 
80.24 	and chapter 114D.
80.25 		Subd. 3.Evaluation and report. The Board of Water and Soil Resources shall 
80.26 	evaluate performance, financial, and activity information for each local water management 
80.27 	entity. The board shall evaluate the entities' progress in accomplishing their adopted 
80.28 	plans on a regular basis, but not less than once every five years. The board shall maintain 
80.29 	a summary of local water management entity performance on the board's Web site. 
80.30 	Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis 
80.31 	of local water management entity performance to the chairs of the house and senate 
80.32 	committees having jurisdiction over environment and natural resources policy.
80.33 		Subd. 4.Corrective actions. (a) In addition to other authorities, the Board of Water 
80.34 	and Soil Resources may, based on its evaluation in subdivision 3, reduce, withhold, or 
80.35 	redirect grants and other funding if the local water management entity has not corrected 
81.1 	deficiencies as prescribed in a notice from the board within one year from the date of 
81.2 	the notice.
81.3 	(b) The board may defer a decision on a termination petition filed under section 
81.4 	103B.221, 103C.225, or 103D.271 for up to one year to conduct or update the evaluation 
81.5 	under subdivision 3 or to communicate the results of the evaluation to petitioners or to 
81.6 	local and state government agencies.

81.7 	Sec. 105. Minnesota Statutes 2006, section 103C.321, is amended by adding a 
81.8 	subdivision to read:
81.9 		Subd. 6.Credit card use. The supervisors may authorize the use of a credit card 
81.10 	by any soil and water conservation district officer or employee otherwise authorized 
81.11 	to make a purchase on behalf of the soil and water conservation district. If a soil and 
81.12 	water conservation district officer or employee makes a purchase by credit card that is not 
81.13 	approved by the supervisors, the officer or employee is personally liable for the amount of 
81.14 	the purchase. A purchase by credit card must otherwise comply with all statutes, rules, 
81.15 	or soil and water conservation district policy applicable to soil and water conservation 
81.16 	district purchases.

81.17 	Sec. 106. Minnesota Statutes 2006, section 103D.325, is amended by adding a 
81.18 	subdivision to read:
81.19 		Subd. 4.Credit card use. The managers may authorize the use of a credit card 
81.20 	by any watershed district officer or employee otherwise authorized to make a purchase 
81.21 	on behalf of the watershed district. If a watershed district officer or employee makes a 
81.22 	purchase by credit card that is not approved by the managers, the officer or employee is 
81.23 	personally liable for the amount of the purchase. A purchase by credit card must otherwise 
81.24 	comply with all statutes, rules, or watershed district policy applicable to watershed district 
81.25 	purchases.

81.26 	Sec. 107. Minnesota Statutes 2006, section 103E.021, subdivision 1, is amended to 
81.27 	read:
81.28 		Subdivision 1.Spoil banks must be spread and grass planted permanent 
81.29 	vegetation established. In any proceeding to establish, construct, improve, or do any 
81.30 	work affecting a public drainage system under any law that appoints viewers to assess 
81.31 	benefits and damages, the authority having jurisdiction over the proceeding shall order 
81.32 	spoil banks to be spread consistent with the plan and function of the drainage system. The 
81.33 	authority shall order that permanent grass, other than a noxious weed, be planted on 
82.1 	the banks ditch side slopes and on a strip that a permanent strip of perennial vegetation 
82.2 	approved by the drainage authority be established on each side of the ditch. Preference 
82.3 	should be given to planting native species of a local ecotype. The approved perennial 
82.4 	vegetation shall not impede future maintenance of the ditch. The permanent strips of 
82.5 	perennial vegetation shall be 16-1/2 feet in width measured outward from the top edge 
82.6 	of the constructed channel resulting from the proceeding, or to the crown of the leveled 
82.7 	spoil bank, whichever is the greater, on each side of the top edge of the channel of the 
82.8 	ditch. except for an action by a drainage authority that results only in a redetermination of 
82.9 	benefits and damages, for which the required width shall be 16-1/2 feet. Drainage system 
82.10 	rights-of-way for the acreage and additional property required for the planting permanent 
82.11 	strips must be acquired by the authority having jurisdiction.

82.12 	Sec. 108. Minnesota Statutes 2006, section 103E.021, subdivision 2, is amended to 
82.13 	read:
82.14 		Subd. 2.Reseeding and harvesting grass perennial vegetation. The authority 
82.15 	having jurisdiction over the repair and maintenance of the drainage system shall supervise 
82.16 	all necessary reseeding. The permanent grass strips of perennial vegetation must be 
82.17 	maintained in the same manner as other drainage system repairs. Harvest of the grass
82.18 	vegetation from the grass permanent strip in a manner not harmful to the grass vegetation
82.19 	or the drainage system is the privilege of the fee owner or assigns. The county drainage 
82.20 	inspector shall establish rules for the fee owner and assigns to harvest the grass vegetation.

82.21 	Sec. 109. Minnesota Statutes 2006, section 103E.021, subdivision 3, is amended to 
82.22 	read:
82.23 		Subd. 3.Agricultural practices prohibited. Agricultural practices, other than 
82.24 	those required for the maintenance of a permanent growth of grass perennial vegetation, 
82.25 	are not permitted on any portion of the property acquired for planting perennial vegetation.

82.26 	Sec. 110. Minnesota Statutes 2006, section 103E.021, is amended by adding a 
82.27 	subdivision to read:
82.28 		Subd. 6.Incremental implementation of vegetated ditch buffer strips and side 
82.29 	inlet controls. (a) Notwithstanding other provisions of this chapter requiring appointment 
82.30 	of viewers and redetermination of benefits and damages, a drainage authority may 
82.31 	implement permanent buffer strips of perennial vegetation approved by the drainage 
82.32 	authority or side inlet controls, or both, adjacent to a public drainage ditch, where 
82.33 	necessary to control erosion and sedimentation, improve water quality, or maintain the 
83.1 	efficiency of the drainage system. Preference should be given to planting native species of 
83.2 	a local ecotype. The approved perennial vegetation shall not impede future maintenance 
83.3 	of the ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width 
83.4 	measured outward from the top edge of the existing constructed channel. Drainage system 
83.5 	rights-of-way for the acreage and additional property required for the permanent strips 
83.6 	must be acquired by the authority having jurisdiction.
83.7 	(b) A project under this subdivision shall be implemented as a repair according to 
83.8 	section 103E.705, except that the drainage authority may appoint an engineer to examine 
83.9 	the drainage system and prepare an engineer's repair report for the project.
83.10 	(c) Damages shall be determined by the drainage authority, or viewers, appointed by 
83.11 	the drainage authority, according to section 103E.315, subdivision 8. A damages statement 
83.12 	shall be prepared, including an explanation of how the damages were determined for each 
83.13 	property affected by the project, and filed with the auditor or watershed district. Within 30 
83.14 	days after the damages statement is filed, the auditor or watershed district shall prepare 
83.15 	property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2), 
83.16 	(6), (7), and (8), and mail a copy of the property owner's report and damages statement to 
83.17 	each owner of property affected by the proposed project.
83.18 	(d) After a damages statement is filed, the drainage authority shall set a time, by 
83.19 	order, not more than 30 days after the date of the order, for a hearing on the project. At 
83.20 	least ten days before the hearing, the auditor or watershed district shall give notice by mail 
83.21 	of the time and location of the hearing to the owners of property and political subdivisions 
83.22 	likely to be affected by the project.
83.23 	(e) The drainage authority shall make findings and order the repairs to be made if 
83.24 	the drainage authority determines from the evidence presented at the hearing and by the 
83.25 	viewers and engineer, if appointed, that the repairs are necessary for the drainage system 
83.26 	and the costs of the repairs are within the limitations of section 103E.705.

83.27 	Sec. 111. [103E.067] DITCH BUFFER STRIP ANNUAL REPORTING.
83.28 	The drainage authority shall annually submit a report to the Board of Water and Soil 
83.29 	Resources for the calendar year including:
83.30 	(1) the number and types of actions for which viewers were appointed;
83.31 	(2) the number of miles of buffer strips established according to section 103E.021;
83.32 	(3) the number of drainage system inspections conducted; and
83.33 	(4) the number of violations of section 103E.021 identified and enforcement actions 
83.34 	taken.

84.1 	Sec. 112. Minnesota Statutes 2006, section 103E.315, subdivision 8, is amended to 
84.2 	read:
84.3 		Subd. 8.Extent of damages. Damages to be paid may include:
84.4 	(1) the fair market value of the property required for the channel of an open ditch 
84.5 	and the permanent grass strip of perennial vegetation under section 103E.021; 
84.6 	(2) the diminished value of a farm due to severing a field by an open ditch;
84.7 	(3) loss of crop production during drainage project construction; and
84.8 	(4) the diminished productivity or land value from increased overflow.; and
84.9 	(5) costs to restore a perennial vegetative cover or structural practice existing 
84.10 	under a federal or state conservation program adjacent to the permanent drainage system 
84.11 	right-of-way and damaged by the drainage project.

84.12 	Sec. 113. Minnesota Statutes 2006, section 103E.321, subdivision 1, is amended to 
84.13 	read:
84.14 		Subdivision 1.Requirements. The viewers' report must show, in tabular form, 
84.15 	for each lot, 40-acre tract, and fraction of a lot or tract under separate ownership that 
84.16 	is benefited or damaged:
84.17 	(1) a description of the lot or tract, under separate ownership, that is benefited or 
84.18 	damaged;
84.19 	(2) the names of the owners as they appear on the current tax records of the county 
84.20 	and their addresses;
84.21 	(3) the number of acres in each tract or lot;
84.22 	(4) the number and value of acres added to a tract or lot by the proposed drainage of 
84.23 	public waters;
84.24 	(5) the damage, if any, to riparian rights;
84.25 	(6) the damages paid for the permanent grass strip of perennial vegetation under 
84.26 	section 103E.021; 
84.27 	(7) the total number and value of acres added to a tract or lot by the proposed 
84.28 	drainage of public waters, wetlands, and other areas not currently being cultivated;
84.29 	(8) the number of acres and amount of benefits being assessed for drainage of areas 
84.30 	which before the drainage benefits could be realized would require a public waters work 
84.31 	permit to work in public waters under section 103G.245 to excavate or fill a navigable 
84.32 	water body under United States Code, title 33, section 403, or a permit to discharge into 
84.33 	waters of the United States under United States Code, title 33, section 1344; 
85.1 	(9) the number of acres and amount of benefits being assessed for drainage of areas 
85.2 	that would be considered conversion of a wetland under United States Code, title 16, 
85.3 	section 3821, if the area was placed in agricultural production;
85.4 	(10) the amount of right-of-way acreage required; and
85.5 	(11) the amount that each tract or lot will be benefited or damaged.

85.6 	Sec. 114. Minnesota Statutes 2006, section 103E.701, is amended by adding a 
85.7 	subdivision to read:
85.8 		Subd. 7.Restoration; disturbance or destruction by repair. If a drainage system 
85.9 	repair disturbs or destroys a perennial vegetative cover or structural practice existing 
85.10 	under a federal or state conservation program adjacent to the permanent drainage system 
85.11 	right-of-way, the practice must be restored according to the applicable practice plan or 
85.12 	as determined by the drainage authority, if a practice plan is not available. Restoration 
85.13 	costs shall be paid by the drainage system.

85.14 	Sec. 115. Minnesota Statutes 2006, section 103E.705, subdivision 1, is amended to 
85.15 	read:
85.16 		Subdivision 1.Inspection. After the construction of a drainage system has been 
85.17 	completed, the drainage authority shall maintain the drainage system that is located in its 
85.18 	jurisdiction, including grass the permanent strips of perennial vegetation under section 
85.19 	103E.021, and provide the repairs necessary to make the drainage system efficient. The 
85.20 	drainage authority shall have the drainage system inspected on a regular basis by an 
85.21 	inspection committee of the drainage authority or a drainage inspector appointed by the 
85.22 	drainage authority. Open drainage ditches shall be inspected at a minimum of every five 
85.23 	years when no violation of section 103E.021 is found and annually when a violation of 
85.24 	section 103E.021 is found, until one year after the violation is corrected.

85.25 	Sec. 116. Minnesota Statutes 2006, section 103E.705, subdivision 2, is amended to 
85.26 	read:
85.27 		Subd. 2.Grass Permanent strip of perennial vegetation inspection and 
85.28 	compliance notice. (a) The drainage authority having jurisdiction over a drainage system 
85.29 	must inspect the drainage system for violations of section 103E.021. If an inspection 
85.30 	committee of the drainage authority or a drainage inspector determines that permanent 
85.31 	grass strips of perennial vegetation are not being maintained in compliance with section 
85.32 	103E.021, a compliance notice must be sent to the property owner. 
85.33 	(b) The notice must state:
86.1 	(1) the date the ditch was inspected;
86.2 	(2) the persons making the inspection;
86.3 	(3) that spoil banks are to be spread in a manner consistent with the plan and function 
86.4 	of the drainage system and that the drainage system has acquired a grass permanent strip 
86.5 	16-1/2 feet in width or to the crown of the spoil bank, whichever is greater of perennial 
86.6 	vegetation, according to section 103E.021;
86.7 	(4) the violations of section 103E.021; 
86.8 	(5) the measures that must be taken by the property owner to comply with section 
86.9 	103E.021 and the date when the property must be in compliance; and 
86.10 	(6) that if the property owner does not comply by the date specified, the drainage 
86.11 	authority will perform the work necessary to bring the area into compliance with section 
86.12 	103E.021 and charge the cost of the work to the property owner. 
86.13 	(c) If a property owner does not bring an area into compliance with section 103E.021
86.14 	as provided in the compliance notice, the inspection committee or drainage inspector 
86.15 	must notify the drainage authority. 
86.16 	(d) This subdivision applies to property acquired under section 103E.021. 

86.17 	Sec. 117. Minnesota Statutes 2006, section 103E.705, subdivision 3, is amended to 
86.18 	read:
86.19 		Subd. 3.Drainage inspection report. For each drainage system that the board 
86.20 	designates and requires the drainage inspector to examine, the drainage inspector shall 
86.21 	make a drainage inspection report in writing to the board after examining a drainage 
86.22 	system, designating portions that need repair or maintenance of grass the permanent
86.23 	strips of perennial vegetation and the location and nature of the repair or maintenance. 
86.24 	The board shall consider the drainage inspection report at its next meeting and may repair 
86.25 	all or any part of the drainage system as provided under this chapter. The grass permanent
86.26 	strips of perennial vegetation must be maintained in compliance with section 103E.021. 

86.27 	Sec. 118. Minnesota Statutes 2006, section 103E.728, subdivision 2, is amended to 
86.28 	read:
86.29 		Subd. 2.Additional assessment for agricultural practices on grass permanent
86.30 	strip of perennial vegetation. (a) The drainage authority may, after notice and hearing, 
86.31 	charge an additional assessment on property that has agricultural practices on or otherwise 
86.32 	violates provisions related to the permanent grass strip of perennial vegetation acquired 
86.33 	under section 103E.021. 
87.1 	(b) The drainage authority may determine the cost of the repair per mile of open 
87.2 	ditch on the ditch system. Property that is in violation of the grass requirement shall be 
87.3 	assessed a cost of 20 percent of the repair cost per open ditch mile multiplied by the length 
87.4 	of open ditch in miles on the property in violation.
87.5 	(c) After the amount of the additional assessment is determined and applied to the 
87.6 	repair cost, the balance of the repair cost may be apportioned pro rata as provided in 
87.7 	subdivision 1.

87.8 	Sec. 119. [103F.518] REINVEST IN MINNESOTA CLEAN ENERGY 
87.9 	PROGRAM.
87.10 		Subdivision 1.Establishment of program.  (a) The board, in consultation with the 
87.11 	technical committee established in subdivision 11, shall establish and administer a reinvest 
87.12 	in Minnesota (RIM) clean energy program that is in addition to the program under section 
87.13 	103F.515.  Selection of land for the clean energy program must be based on its potential 
87.14 	benefits for bioenergy crop production, water quality, soil health, reduction of chemical 
87.15 	inputs, soil carbon storage, biodiversity, and wildlife habitat.
87.16 	(b) For the purposes of this section, "diverse native prairie" means a prairie planted 
87.17 	from a mix of  local Minnesota native prairie species. A selection from all available native 
87.18 	prairie species may be made so as to match species appropriate to local site conditions. 
87.19 		Subd. 2.Eligible land. Eligible land under this section must:
87.20 	(1) be owned by the landowner, or a parent or other blood relative of the landowner, 
87.21 	for at least one year before the date of application;
87.22 	(2) be at least five acres in size;
87.23 	(3) not be currently set aside, enrolled, or diverted under another federal or state 
87.24 	government program; and 
87.25 	(4) have been in agricultural use, as defined in section 17.81, subdivision 4, or have 
87.26 	been set aside, enrolled, or diverted under another federal or state program for at least two 
87.27 	of the last five years before the date of application.
87.28 		Subd. 3.Designation of project areas. The board shall develop a process to 
87.29 	designate defined project areas. The designation process shall prioritize projects that 
87.30 	include coordinated cooperation of a cellulosic biofuel facility or a bioenergy production 
87.31 	facility, target impaired waters, or support other state or local natural resource plans, 
87.32 	goals, or objectives.
87.33 		Subd. 4.Easements. The board may acquire, or accept by gift or donation, 
87.34 	easements on eligible land. An easement may be permanent or of limited duration. An 
87.35 	easement of limited duration may not be acquired if it is for a period less than 20 years. 
88.1 	The negotiation and acquisition of easements authorized by this section are exempt from 
88.2 	the contractual provisions of chapters 16B and 16C.
88.3 		Subd. 5.Nature of property rights acquired. (a) An easement must prohibit:
88.4 	(1) agricultural crop production, unless approved by the board for energy production 
88.5 	purposes; and
88.6 	(2) spraying with chemicals, except as necessary to comply with noxious weed 
88.7 	control laws, emergency pest control necessary to protect public health, or as needed 
88.8 	to establish a productive planting as determined by the technical committee under 
88.9 	subdivision 11.
88.10 	(b) An easement is subject to the terms of the agreement provided in subdivision 6.
88.11 	(c) Agricultural crop production and harvest are limited to native, perennial 
88.12 	bioenergy crops. Harvest shall occur outside of bird nesting season.
88.13 	(d) An easement must allow repairs, improvements, and inspections necessary to 
88.14 	maintain public drainage systems provided the easement area is restored to the condition 
88.15 	required by the terms of the easement.
88.16 	(e) An easement may allow nonnative perennial prairie or pasture established by 
88.17 	September 1, 2007, that meet the other objectives outlined in subdivision 7.
88.18 	(f) An easement may allow grazing of livestock only if practiced under a plan, 
88.19 	approved by the board, that protects water quality, wildlife habitat, and biodiversity.
88.20 		Subd. 6.Agreements by landowner. The board may enroll eligible land in the 
88.21 	reinvest in Minnesota clean energy program by signing an agreement in recordable form 
88.22 	with a landowner in which the landowner agrees:
88.23 	(1) to convey to the state an easement that is not subject to any prior title, lien, or 
88.24 	encumbrance;
88.25 	(2) to seed the land subject to the easement, as specified in the agreement, at 
88.26 	seeding rates determined by the board, or carry out other long-term capital improvements 
88.27 	approved by the board; and
88.28 	(3) that the easement duration may be lengthened through mutual agreement with 
88.29 	the board.
88.30 		Subd. 7.Payments for easements. The board must develop a tiered payment 
88.31 	system for easements partially based on the benefits of the bioenergy crop production for 
88.32 	water quality, soil health, reduction in chemical inputs, soil carbon storage, biodiversity, 
88.33 	and wildlife habitat using cash rent or a similar system as may be determined by the 
88.34 	board. The payment system must provide that the highest per-acre payment is for diverse 
88.35 	native prairie and perennials.
89.1 		Subd. 8.Easement renewal. When an easement of limited duration expires, a 
89.2 	new easement and agreement for an additional period of not less than 20 years may be 
89.3 	acquired by agreement of the board and the landowner under the terms of this section. 
89.4 	The board may adjust payment rates as a result of renewing an agreement and easement 
89.5 	only after examining the condition of the established plantings, conservation practices, 
89.6 	and land values.
89.7 		Subd. 9.Correction of easement boundary lines. To correct errors in legal 
89.8 	descriptions for easements that affect the ownership interest in the state and adjacent 
89.9 	landowners, the board may, in the name of the state, with the approval of the attorney 
89.10 	general, convey, without consideration, interests of the state necessary to correct legal 
89.11 	descriptions of boundaries. The conveyance must be by quitclaim deed or release in 
89.12 	a form approved by the attorney general.
89.13 		Subd. 10.Enforcement and damages. (a) A landowner who violates the term of 
89.14 	an easement or agreement under this section, or induces, assists, or allows another to do 
89.15 	so, is liable to the state for treble damages if the trespass is willful, but liable for double 
89.16 	damages only if the trespass is not willful. The amount of damages is the amount needed 
89.17 	to make the state whole or the amount the landowner has gained due to the violation, 
89.18 	whichever is greater.
89.19 	(b) Upon the request of the board, the attorney general may commence an action for 
89.20 	specific performances, injunctive relief, damages, including attorney fees, and any other 
89.21 	appropriate relief to enforce this section in district court in the county where all or part 
89.22 	of the violation is alleged to have been committed, or where the landowner resides or 
89.23 	has a principal place of business.
89.24 		Subd. 11.Technical committee. To ensure that public benefits, including water 
89.25 	quality, soil health, reduction of chemical inputs, soil carbon storage, biodiversity, and 
89.26 	wildlife habitat are secured along with bioenergy crop production, the Board of Water and 
89.27 	Soil Resources shall appoint a technical committee consisting of one representative from 
89.28 	the Departments of Agriculture, Natural Resources, and Commerce and the Pollution 
89.29 	Control Agency; two farm organizations; one sustainable agriculture farmer organization; 
89.30 	three rural economic development organizations; three environmental organizations; and 
89.31 	three conservation or wildlife organizations. The board and technical committee shall 
89.32 	consult with private sector organizations and University of Minnesota researchers involved 
89.33 	in biomass establishment and bioenergy or biofuel conversion. The technical committee 
89.34 	is to develop program guidelines and standards, as appropriate to ensure that reinvest in 
89.35 	Minnesota clean energy program contracts provide public benefits commensurate with the 
90.1 	public investment. The technical committee shall review and make recommendations on 
90.2 	the guidelines and standards every five years.

90.3 	Sec. 120. Minnesota Statutes 2006, section 103G.222, subdivision 1, is amended to 
90.4 	read:
90.5 		Subdivision 1.Requirements. (a) Wetlands must not be drained or filled, wholly 
90.6 	or partially, unless replaced by restoring or creating wetland areas of at least equal 
90.7 	public value under a replacement plan approved as provided in section 103G.2242, a 
90.8 	replacement plan under a local governmental unit's comprehensive wetland protection 
90.9 	and management plan approved by the board under section 103G.2243, or, if a permit to 
90.10 	mine is required under section 93.481, under a mining reclamation plan approved by the 
90.11 	commissioner under the permit to mine. Mining reclamation plans shall apply the same 
90.12 	principles and standards for replacing wetlands by restoration or creation of wetland areas 
90.13 	that are applicable to mitigation plans approved as provided in section 103G.2242. Public 
90.14 	value must be determined in accordance with section 103B.3355 or a comprehensive 
90.15 	wetland protection and management plan established under section 103G.2243. Sections 
90.16 	103G.221 to 103G.2372 also apply to excavation in permanently and semipermanently 
90.17 	flooded areas of types 3, 4, and 5 wetlands. 
90.18 	(b) Replacement must be guided by the following principles in descending order 
90.19 	of priority:
90.20 	(1) avoiding the direct or indirect impact of the activity that may destroy or diminish 
90.21 	the wetland;
90.22 	(2) minimizing the impact by limiting the degree or magnitude of the wetland 
90.23 	activity and its implementation;
90.24 	(3) rectifying the impact by repairing, rehabilitating, or restoring the affected 
90.25 	wetland environment;
90.26 	(4) reducing or eliminating the impact over time by preservation and maintenance 
90.27 	operations during the life of the activity;
90.28 	(5) compensating for the impact by restoring a wetland; and
90.29 	(6) compensating for the impact by replacing or providing substitute wetland 
90.30 	resources or environments.
90.31 	For a project involving the draining or filling of wetlands in an amount not exceeding 
90.32 	10,000 square feet more than the applicable amount in section 103G.2241, subdivision 9, 
90.33 	paragraph (a), the local government unit may make an on-site sequencing determination 
90.34 	without a written alternatives analysis from the applicant. 
91.1 	(c) If a wetland is located in a cultivated field, then replacement must be 
91.2 	accomplished through restoration only without regard to the priority order in paragraph 
91.3 	(b), provided that a deed restriction is placed on the altered wetland prohibiting 
91.4 	nonagricultural use for at least ten years.
91.5 	(d) If a wetland is drained under section 103G.2241, subdivision 2, paragraphs 
91.6 	(b) and (e), the local government unit may require a deed restriction that prohibits 
91.7 	nonagricultural use for at least ten years unless the drained wetland is replaced as provided 
91.8 	under this section. The local government unit may require the deed restriction if it 
91.9 	determines the wetland area drained is at risk of conversion to a nonagricultural use within 
91.10 	ten years based on the zoning classification, proximity to a municipality or full service 
91.11 	road, or other criteria as determined by the local government unit.
91.12 	(e) Restoration and replacement of wetlands must be accomplished in accordance 
91.13 	with the ecology of the landscape area affected and ponds that are created primarily to 
91.14 	fulfill stormwater management, and water quality treatment requirements may not be 
91.15 	used to satisfy replacement requirements under this chapter unless the design includes 
91.16 	pretreatment of runoff and the pond is functioning as a wetland.
91.17 	(e) (f) Except as provided in paragraph (f) (g), for a wetland or public waters wetland 
91.18 	located on nonagricultural land, replacement must be in the ratio of two acres of replaced 
91.19 	wetland for each acre of drained or filled wetland.
91.20 	(f) (g) For a wetland or public waters wetland located on agricultural land or in a 
91.21 	greater than 80 percent area, replacement must be in the ratio of one acre of replaced 
91.22 	wetland for each acre of drained or filled wetland.
91.23 	(g) (h) Wetlands that are restored or created as a result of an approved replacement 
91.24 	plan are subject to the provisions of this section for any subsequent drainage or filling.
91.25 	(h) (i) Except in a greater than 80 percent area, only wetlands that have been 
91.26 	restored from previously drained or filled wetlands, wetlands created by excavation in 
91.27 	nonwetlands, wetlands created by dikes or dams along public or private drainage ditches, 
91.28 	or wetlands created by dikes or dams associated with the restoration of previously drained 
91.29 	or filled wetlands may be used in a statewide banking program established in rules adopted 
91.30 	under section 103G.2242, subdivision 1. Modification or conversion of nondegraded 
91.31 	naturally occurring wetlands from one type to another are not eligible for enrollment in a 
91.32 	statewide wetlands bank. 
91.33 	(i) (j) The Technical Evaluation Panel established under section 103G.2242, 
91.34 	subdivision 2, shall ensure that sufficient time has occurred for the wetland to develop 
91.35 	wetland characteristics of soils, vegetation, and hydrology before recommending that the 
91.36 	wetland be deposited in the statewide wetland bank. If the Technical Evaluation Panel has 
92.1 	reason to believe that the wetland characteristics may change substantially, the panel shall 
92.2 	postpone its recommendation until the wetland has stabilized. 
92.3 	(j) (k) This section and sections 103G.223 to 103G.2242, 103G.2364, and 
92.4 	103G.2365 apply to the state and its departments and agencies. 
92.5 	(k) (l) For projects involving draining or filling of wetlands associated with a new 
92.6 	public transportation project, and for projects expanded solely for additional traffic 
92.7 	capacity, public transportation authorities may purchase credits from the board at the cost 
92.8 	to the board to establish credits. Proceeds from the sale of credits provided under this 
92.9 	paragraph are appropriated to the board for the purposes of this paragraph.
92.10 	(l) (m) A replacement plan for wetlands is not required for individual projects that 
92.11 	result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction, 
92.12 	or replacement of a currently serviceable existing state, city, county, or town public road 
92.13 	necessary, as determined by the public transportation authority, to meet state or federal 
92.14 	design or safety standards or requirements, excluding new roads or roads expanded solely 
92.15 	for additional traffic capacity lanes. This paragraph only applies to authorities for public 
92.16 	transportation projects that:
92.17 	(1) minimize the amount of wetland filling or draining associated with the project 
92.18 	and consider mitigating important site-specific wetland functions on-site;
92.19 	(2) except as provided in clause (3), submit project-specific reports to the board, the 
92.20 	Technical Evaluation Panel, the commissioner of natural resources, and members of the 
92.21 	public requesting a copy at least 30 days prior to construction that indicate the location, 
92.22 	amount, and type of wetlands to be filled or drained by the project or, alternatively, 
92.23 	convene an annual meeting of the parties required to receive notice to review projects to 
92.24 	be commenced during the upcoming year; and
92.25 	(3) for minor and emergency maintenance work impacting less than 10,000 square 
92.26 	feet, submit project-specific reports, within 30 days of commencing the activity, to the 
92.27 	board that indicate the location, amount, and type of wetlands that have been filled 
92.28 	or drained.
92.29 	Those required to receive notice of public transportation projects may appeal 
92.30 	minimization, delineation, and on-site mitigation decisions made by the public 
92.31 	transportation authority to the board according to the provisions of section 103G.2242, 
92.32 	subdivision 9. The Technical Evaluation Panel shall review minimization and delineation 
92.33 	decisions made by the public transportation authority and provide recommendations 
92.34 	regarding on-site mitigation if requested to do so by the local government unit, a 
92.35 	contiguous landowner, or a member of the Technical Evaluation Panel. 
93.1 	Except for state public transportation projects, for which the state Department of 
93.2 	Transportation is responsible, the board must replace the wetlands, and wetland areas of 
93.3 	public waters if authorized by the commissioner or a delegated authority, drained or filled 
93.4 	by public transportation projects on existing roads.
93.5 	Public transportation authorities at their discretion may deviate from federal and 
93.6 	state design standards on existing road projects when practical and reasonable to avoid 
93.7 	wetland filling or draining, provided that public safety is not unreasonably compromised. 
93.8 	The local road authority and its officers and employees are exempt from liability for 
93.9 	any tort claim for injury to persons or property arising from travel on the highway and 
93.10 	related to the deviation from the design standards for construction or reconstruction under 
93.11 	this paragraph. This paragraph does not preclude an action for damages arising from 
93.12 	negligence in construction or maintenance on a highway.
93.13 	(m) (n) If a landowner seeks approval of a replacement plan after the proposed 
93.14 	project has already affected the wetland, the local government unit may require the 
93.15 	landowner to replace the affected wetland at a ratio not to exceed twice the replacement 
93.16 	ratio otherwise required.
93.17 	(n) (o) A local government unit may request the board to reclassify a county or 
93.18 	watershed on the basis of its percentage of presettlement wetlands remaining. After 
93.19 	receipt of satisfactory documentation from the local government, the board shall change 
93.20 	the classification of a county or watershed. If requested by the local government unit, 
93.21 	the board must assist in developing the documentation. Within 30 days of its action to 
93.22 	approve a change of wetland classifications, the board shall publish a notice of the change 
93.23 	in the Environmental Quality Board Monitor.
93.24 	(o) (p) One hundred citizens who reside within the jurisdiction of the local 
93.25 	government unit may request the local government unit to reclassify a county or watershed 
93.26 	on the basis of its percentage of presettlement wetlands remaining. In support of their 
93.27 	petition, the citizens shall provide satisfactory documentation to the local government unit. 
93.28 	The local government unit shall consider the petition and forward the request to the board 
93.29 	under paragraph (n) (o) or provide a reason why the petition is denied.

93.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

93.31 	Sec. 121. Minnesota Statutes 2006, section 103G.222, subdivision 3, is amended to 
93.32 	read:
93.33 		Subd. 3.Wetland replacement siting. (a) Siting wetland replacement must follow 
93.34 	this priority order:
93.35 	(1) on site or in the same minor watershed as the affected wetland;
94.1 	(2) in the same watershed as the affected wetland;
94.2 	(3) in the same county as the affected wetland;
94.3 	(4) for replacement by wetland banking, in the same wetland bank service area as 
94.4 	the impacted wetland, except that impacts in a 50 to 80 percent area must be replaced in 
94.5 	a 50 to 80 percent area and impacts in a less than 50 percent area must be replaced in a 
94.6 	less than 50 percent area;
94.7 	(5) for project specific replacement, in an adjacent watershed or county to the 
94.8 	affected wetland, or for replacement by wetland banking, in an adjacent wetland bank 
94.9 	service area, except that impacts in a 50 to 80 percent area must be replaced in a 50 to 
94.10 	80 percent area and impacts in a less than 50 percent area must be replaced in a less 
94.11 	than 50 percent area; and
94.12 	(5) (6) statewide, only for wetlands affected in greater than 80 percent areas and for 
94.13 	public transportation projects, except that wetlands affected in less than 50 percent areas 
94.14 	must be replaced in less than 50 percent areas, and wetlands affected in the seven-county 
94.15 	metropolitan area must be replaced at a ratio of two to one in: (i) the affected county or, 
94.16 	(ii) in another of the seven metropolitan counties, or (iii) in one of the major watersheds 
94.17 	that are wholly or partially within the seven-county metropolitan area, but at least one to 
94.18 	one must be replaced within the seven-county metropolitan area.
94.19 	(b) Notwithstanding paragraph (a), siting wetland replacement in greater than 80 
94.20 	percent areas may follow the priority order under this paragraph: (1) by wetland banking 
94.21 	after evaluating on-site replacement and replacement within the watershed; (2) replaced 
94.22 	in an adjacent wetland bank service area if wetland bank credits are not reasonably 
94.23 	available in the same wetland bank service area as the affected wetland, as determined by 
94.24 	a comprehensive inventory approved by the board; and (3) statewide.
94.25 	(c) Notwithstanding paragraph (a), siting wetland replacement in the seven-county 
94.26 	metropolitan area must follow the priority order under this paragraph: (1) in the affected 
94.27 	county; (2) in another of the seven metropolitan counties; or (3) in one of the major 
94.28 	watersheds that are wholly or partially within the seven-county metropolitan area, but at 
94.29 	least one to one must be replaced within the seven-county metropolitan area.
94.30 	(d) The exception in paragraph (a), clause (5) (6), does not apply to replacement 
94.31 	completed using wetland banking credits established by a person who submitted a 
94.32 	complete wetland banking application to a local government unit by April 1, 1996.
94.33 	(c) (e) When reasonable, practicable, and environmentally beneficial replacement 
94.34 	opportunities are not available in siting priorities listed in paragraph (a), the applicant 
94.35 	may seek opportunities at the next level.
95.1 	(d) (f) For the purposes of this section, "reasonable, practicable, and environmentally 
95.2 	beneficial replacement opportunities" are defined as opportunities that:
95.3 	(1) take advantage of naturally occurring hydrogeomorphological conditions and 
95.4 	require minimal landscape alteration;
95.5 	(2) have a high likelihood of becoming a functional wetland that will continue 
95.6 	in perpetuity;
95.7 	(3) do not adversely affect other habitat types or ecological communities that are 
95.8 	important in maintaining the overall biological diversity of the area; and
95.9 	(4) are available and capable of being done after taking into consideration cost, 
95.10 	existing technology, and logistics consistent with overall project purposes.
95.11 	(e) (g) Regulatory agencies, local government units, and other entities involved in 
95.12 	wetland restoration shall collaborate to identify potential replacement opportunities within 
95.13 	their jurisdictional areas.

95.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

95.15 	Sec. 122. Minnesota Statutes 2006, section 103G.2241, subdivision 1, is amended to 
95.16 	read:
95.17 		Subdivision 1.Agricultural activities. (a) A replacement plan for wetlands is 
95.18 	not required for:
95.19 	(1) activities in a wetland that was planted with annually seeded crops, was in a crop 
95.20 	rotation seeding of pasture grass or legumes, or was required to be set aside to receive 
95.21 	price support or other payments under United States Code, title 7, sections 1421 to 1469, 
95.22 	in six of the last ten years prior to January 1, 1991;
95.23 	(2) activities in a wetland that is or has been enrolled in the federal conservation 
95.24 	reserve program under United States Code, title 16, section 3831, that:
95.25 	(i) was planted with annually seeded crops, was in a crop rotation seeding, or was 
95.26 	required to be set aside to receive price support or payment under United States Code, 
95.27 	title 7, sections 1421 to 1469, in six of the last ten years prior to being enrolled in the 
95.28 	program; and
95.29 	(ii) has not been restored with assistance from a public or private wetland restoration 
95.30 	program;
95.31 	(3) activities in a wetland that has received a commenced drainage determination 
95.32 	provided for by the federal Food Security Act of 1985, that was made to the county 
95.33 	Agricultural Stabilization and Conservation Service office prior to September 19, 1988, 
95.34 	and a ruling and any subsequent appeals or reviews have determined that drainage of the 
95.35 	wetland had been commenced prior to December 23, 1985;
96.1 	(4) (2) activities in a type 1 wetland on agricultural pasture land that remains in the 
96.2 	same use, except for bottomland hardwood type 1 wetlands, and activities in a type 2 
96.3 	or type 6 wetland that is less than two acres in size and located on agricultural pasture 
96.4 	land that remains in the same use;
96.5 	(3) activities in a wetland conducted as part of normal farming practices. For 
96.6 	purposes of this clause, "normal farming practices" means farming, silvicultural, grazing, 
96.7 	and ranching activities such as plowing, seeding, cultivating, and harvesting for the 
96.8 	production of feed, food, and fiber products, but does not include activities that result in 
96.9 	the draining of wetlands;
96.10 	(4) soil and water conservation practices approved by the soil and water conservation 
96.11 	district, after review by the Technical Evaluation Panel;
96.12 	(5) aquaculture activities including pond excavation and construction and 
96.13 	maintenance of associated access roads and dikes authorized under, and conducted in 
96.14 	accordance with, a permit issued by the United States Army Corps of Engineers under 
96.15 	section 404 of the federal Clean Water Act, United States Code, title 33, section 1344, 
96.16 	but not including construction or expansion of buildings;
96.17 	(6) wild rice production activities, including necessary diking and other activities 
96.18 	authorized under a permit issued by the United States Army Corps of Engineers under 
96.19 	section 404 of the federal Clean Water Act, United States Code, title 33, section 1344; or
96.20 	(7) normal agricultural practices to control noxious or secondary weeds as defined 
96.21 	by rule of the commissioner of agriculture, in accordance with applicable requirements 
96.22 	under state and federal law, including established best management practices; and
96.23 	(8) (7) agricultural activities in a wetland that is on agricultural land:
96.24 	(i) annually enrolled in the federal Agriculture Improvement and Reform Act of 
96.25 	1996 and is subject to United States Code, title 16, sections 3821 to 3823, in effect on 
96.26 	January 1, 2000; or
96.27 	(ii) that is subject to subsequent federal farm program restrictions that meet 
96.28 	minimum state standards under this chapter and sections 103A.202 and 103B.3355 and 
96.29 	that have been approved by the Board of Water and Soil Resources, the commissioners of 
96.30 	natural resources and agriculture, and the Pollution Control Agency. 
96.31 	(b) Land enrolled in a federal farm program under paragraph (a), clause (8), is 
96.32 	eligible for easement participation for those acres not already compensated under a federal 
96.33 	program.
96.34 	(c) The exemption under paragraph (a), clause (4), may be expanded to additional 
96.35 	acreage, including types 1, 2, and 6 wetlands that are part of a larger wetland system, when 
96.36 	the additional acreage is part of a conservation plan approved by the local soil and water 
97.1 	conservation district, the additional draining or filling is necessary for efficient operation 
97.2 	of the farm, the hydrology of the larger wetland system is not adversely affected, and 
97.3 	wetlands other than types 1, 2, and 6 are not drained or filled.

97.4 	Sec. 123. Minnesota Statutes 2006, section 103G.2241, subdivision 2, is amended to 
97.5 	read:
97.6 		Subd. 2.Drainage. (a) For the purposes of this subdivision, "public drainage 
97.7 	system" means a drainage system as defined in section 103E.005, subdivision 12, and any 
97.8 	ditch or tile lawfully connected to the drainage system. 
97.9 	(b) A replacement plan is not required for draining of type 1 wetlands, or up to five 
97.10 	acres of type 2 or 6 wetlands, in an unincorporated area on land that has been assessed 
97.11 	drainage benefits for a public drainage system, provided that:
97.12 	(1) during the 20-year period that ended January 1, 1992:
97.13 	(i) there was an expenditure made from the drainage system account for the public 
97.14 	drainage system;
97.15 	(ii) the public drainage system was repaired or maintained as approved by the 
97.16 	drainage authority; or
97.17 	(iii) no repair or maintenance of the public drainage system was required under 
97.18 	section 103E.705, subdivision 1, as determined by the public drainage authority; and 
97.19 	(2) the wetlands are not drained for conversion to:
97.20 	(i) platted lots;
97.21 	(ii) planned unit, commercial, or industrial developments; or
97.22 	(iii) any development with more than one residential unit per 40 acres, except for 
97.23 	parcels subject to local zoning standards that allow for family members to establish an 
97.24 	additional residence on the same 40 acres.
97.25 	If wetlands drained under this paragraph are converted to uses prohibited under clause 
97.26 	(2) during the ten-year period following drainage, the wetlands must be replaced under 
97.27 	section 103G.222. 
97.28 	(c) A replacement plan is not required for draining or filling of wetlands, except for 
97.29 	draining types 3, 4, and 5 wetlands that have been in existence for more than 25 years, 
97.30 	resulting from maintenance and repair of existing public drainage systems.
97.31 	(d) A replacement plan is not required for draining or filling of wetlands, except 
97.32 	for draining wetlands that have been in existence for more than 25 years, resulting from 
97.33 	maintenance and repair of existing drainage systems other than public drainage systems.
97.34 	(e) A replacement plan is not required for draining or filling of wetlands resulting 
97.35 	from activities conducted as part of a public drainage system improvement project that 
98.1 	received final approval from the drainage authority before July 1, 1991, and after July 1, 
98.2 	1986, if:
98.3 	(1) the approval remains valid;
98.4 	(2) the project remains active; and
98.5 	(3) no additional drainage will occur beyond that originally approved.
98.6 	(e) A replacement plan is not required for draining agricultural land that: (1) was 
98.7 	planted with annually seeded crops before July 5, except for crops that are normally 
98.8 	planted after that date, in eight out of the ten most recent years prior to the impact; (2) was 
98.9 	in a crop rotation seeding of pasture grass, cover crop, or legumes, or was fallow for a 
98.10 	crop production purpose, in eight out of the ten most recent years prior to the impact; or 
98.11 	(3) was enrolled in a state or federal land conservation program and met the requirements 
98.12 	of clause (1) or (2) before enrollment.
98.13 	(f) The public drainage authority may, as part of the repair, install control structures, 
98.14 	realign the ditch, construct dikes along the ditch, or make other modifications as necessary 
98.15 	to prevent drainage of the wetland.
98.16 	(g) Wetlands of all types that would be drained as a part of a public drainage repair 
98.17 	project are eligible for the permanent wetlands preserve under section 103F.516. The 
98.18 	board shall give priority to acquisition of easements on types 3, 4, and 5 wetlands that have 
98.19 	been in existence for more than 25 years on public drainage systems and other wetlands 
98.20 	that have the greatest risk of drainage from a public drainage repair project.

98.21 	Sec. 124. Minnesota Statutes 2006, section 103G.2241, subdivision 3, is amended to 
98.22 	read:
98.23 		Subd. 3.Federal approvals. A replacement plan for wetlands is not required for:
98.24 	(1) activities exempted from federal regulation under United States Code, title 33, 
98.25 	section 1344(f), as in effect on January 1, 1991;
98.26 	(2) activities authorized under, and conducted in accordance with, an applicable 
98.27 	general permit issued by the United States Army Corps of Engineers under section 404 
98.28 	of the federal Clean Water Act, United States Code, title 33, section 1344, except the 
98.29 	nationwide permit in Code of Federal Regulations, title 33, section 330.5, paragraph (a), 
98.30 	clauses (14), limited to when a new road crosses a wetland, and (26), as in effect on 
98.31 	January 1, 1991; or
98.32 	(3) activities authorized under the federal Clean Water Act, section 404, or the 
98.33 	Rivers and Harbors Act, section 10, regulations that meet minimum state standards 
98.34 	under this chapter and sections 103A.202 and 103B.3355 and that have been approved 
99.1 	by the Board of Water and Soil Resources, the commissioners of natural resources and 
99.2 	agriculture, and the Pollution Control Agency. 

99.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

99.4 	Sec. 125. Minnesota Statutes 2006, section 103G.2241, subdivision 6, is amended to 
99.5 	read:
99.6 		Subd. 6.Utilities; public works. (a) A replacement plan for wetlands is not 
99.7 	required for:
99.8 	(1) placement, maintenance, repair, enhancement, or replacement of utility or 
99.9 	utility-type service if:
99.10 	(i) the impacts of the proposed project on the hydrologic and biological 
99.11 	characteristics of the wetland have been avoided and minimized to the extent possible; and
99.12 	(ii) the proposed project significantly modifies or alters less than one-half acre of 
99.13 	wetlands;
99.14 	(2) activities associated with routine maintenance of utility and pipeline 
99.15 	rights-of-way, provided the activities do not result in additional intrusion into the wetland;
99.16 	(3) alteration of a wetland associated with the operation, maintenance, or repair of 
99.17 	an interstate pipeline within all existing or acquired interstate pipeline rights-of-way;
99.18 	(4) emergency repair and normal maintenance and repair of existing public works, 
99.19 	provided the activity does not result in additional intrusion of the public works into the 
99.20 	wetland and does not result in the draining or filling, wholly or partially, of a wetland;
99.21 	(5) normal maintenance and minor repair of structures causing no additional 
99.22 	intrusion of an existing structure into the wetland, and maintenance and repair of private 
99.23 	crossings that do not result in the draining or filling, wholly or partially, of a wetland; or
99.24 	(6) repair and updating of existing individual sewage treatment systems as necessary 
99.25 	to comply with local, state, and federal regulations.
99.26 	(1) new placement or maintenance, repair, enhancement, or replacement of existing 
99.27 	utility or utility-type service, including pipelines, if:
99.28 	(i) the direct and indirect impacts of the proposed project have been avoided and 
99.29 	minimized to the extent possible; and
99.30 	(ii) the proposed project significantly modifies or alters less than one-half acre of 
99.31 	wetlands;
99.32 	(2) activities associated with operation, routine maintenance, or emergency repair of 
99.33 	existing utilities and public work structures, including pipelines, provided the activities 
99.34 	do not result in additional wetland intrusion or additional draining or filling of a wetland 
99.35 	either wholly or partially; or
100.1 	(3) repair and updating of existing individual sewage treatment systems necessary to 
100.2 	comply with local, state, and federal regulations.
100.3 	(b) For maintenance, repair, and replacement, the local government unit may issue 
100.4 	a seasonal or annual exemption certification or the utility may proceed without local 
100.5 	government unit certification if the utility is carrying out the work according to approved 
100.6 	best management practices. Work of an emergency nature may proceed as necessary 
100.7 	and any drain or fill activities shall be addressed with the local government unit after 
100.8 	the emergency work has been completed.

100.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

100.10 	Sec. 126. Minnesota Statutes 2006, section 103G.2241, subdivision 9, is amended to 
100.11 	read:
100.12 		Subd. 9.De minimis. (a) Except as provided in paragraphs (b) and (c), a 
100.13 	replacement plan for wetlands is not required for draining or filling the following amounts 
100.14 	of wetlands as part of a project:
100.15 	(1) 10,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and 
100.16 	tamarack wetlands, outside of the shoreland wetland protection zone in a greater than 
100.17 	80 percent area;
100.18 	(2) 5,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and 
100.19 	tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80 percent 
100.20 	area, except within the 11-county metropolitan area;
100.21 	(3) 2,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland wetland 
100.22 	protection zone in a less than 50 percent area, except within the 11-county metropolitan 
100.23 	area;
100.24 	(4) 400100 square feet of wetland types not listed in clauses (1) to (3) outside of 
100.25 	the building setback zone of the shoreland wetland protection zones in all counties; or
100.26 	(5) 400 square feet of type 1, 2, 3, 4, 5, 6, 7, or 8 wetland types listed in clauses (1) 
100.27 	to (3), in beyond the building setback zone, as defined in the local shoreland management 
100.28 	ordinance, but within the shoreland wetland protection zone, except that. In a greater 
100.29 	than 80 percent area, the local government unit may increase the de minimis amount 
100.30 	up to 1,000 square feet in the shoreland protection zone in areas beyond the building 
100.31 	setback if the wetland is isolated and is determined to have no direct surficial connection 
100.32 	to the public water. To the extent that a local shoreland management ordinance is more 
100.33 	restrictive than this provision, the local shoreland ordinance applies.;
100.34 	(6) up to 20 square feet of wetland, regardless of type or location;
101.1 	(7) 2,500 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and 
101.2 	tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80 percent 
101.3 	area within the 11-county metropolitan area; or
101.4 	(8) 1,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland wetland 
101.5 	protection zone in a less than 50 percent area within the 11-county metropolitan area.
101.6 	For purposes of this paragraph, the 11-county metropolitan area consists of the 
101.7 	counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, 
101.8 	Washington, and Wright.
101.9 	(b) The amounts listed in paragraph (a), clauses (1) to (5) (8), may not be combined 
101.10 	on a project.
101.11 	(c) This exemption no longer applies to a landowner's portion of a wetland when 
101.12 	the cumulative area drained or filled of the landowner's portion since January 1, 1992, is 
101.13 	the greatest of:
101.14 	(1) the applicable area listed in paragraph (a), if the landowner owns the entire 
101.15 	wetland;
101.16 	(2) five percent of the landowner's portion of the wetland; or
101.17 	(3) 400 square feet.
101.18 	(d) This exemption may not be combined with another exemption in this section on 
101.19 	a project.
101.20 	(e) Property may not be divided to increase the amounts listed in paragraph (a).

101.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

101.22 	Sec. 127. Minnesota Statutes 2006, section 103G.2241, subdivision 11, is amended to 
101.23 	read:
101.24 		Subd. 11.Exemption conditions. (a) A person conducting an activity in a wetland 
101.25 	under an exemption in subdivisions 1 to 10 shall ensure that:
101.26 	(1) appropriate erosion control measures are taken to prevent sedimentation of 
101.27 	the water;
101.28 	(2) the activity does not block fish passage in a watercourse; and
101.29 	(3) the activity is conducted in compliance with all other applicable federal, 
101.30 	state, and local requirements, including best management practices and water resource 
101.31 	protection requirements established under chapter 103H.
101.32 	(b) An activity is exempt if it qualifies for any one of the exemptions, even though it 
101.33 	may be indicated as not exempt under another exemption.
102.1 	(c) Persons proposing to conduct an exempt activity are encouraged to contact the 
102.2 	local government unit or the local government unit's designee for advice on minimizing 
102.3 	wetland impacts.
102.4 	(d) The board shall develop rules that address the application and implementation 
102.5 	of exemptions and that provide for estimates and reporting of exempt wetland impacts, 
102.6 	including those in section 103G.2241, subdivisions 2, 6, and 9.

102.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

102.8 	Sec. 128. Minnesota Statutes 2006, section 103G.2242, subdivision 2, is amended to 
102.9 	read:
102.10 		Subd. 2.Evaluation. (a) Questions concerning the public value, location, size, 
102.11 	or type of a wetland shall be submitted to and determined by a Technical Evaluation 
102.12 	Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of 
102.13 	a technical professional employee of the board, a technical professional employee of 
102.14 	the local soil and water conservation district or districts, a technical professional with 
102.15 	expertise in water resources management appointed by the local government unit, and 
102.16 	a technical professional employee of the Department of Natural Resources for projects 
102.17 	affecting public waters or wetlands adjacent to public waters. The panel shall use the 
102.18 	"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987), 
102.19 	including updates, supplementary guidance, and replacements, if any, "Wetlands of 
102.20 	the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition), 
102.21 	and "Classification of Wetlands and Deepwater Habitats of the United States" (1979 
102.22 	edition). The panel shall provide the wetland determination and recommendations on 
102.23 	other technical matters to the local government unit that must approve a replacement 
102.24 	plan, wetland banking plan, exemption determination, no-loss determination, or wetland 
102.25 	boundary or type determination and may recommend approval or denial of the plan. The 
102.26 	authority must consider and include the decision of the Technical Evaluation Panel in their 
102.27 	approval or denial of a plan or determination.
102.28 	(b) Persons conducting wetland or public waters boundary delineations or type 
102.29 	determinations are exempt from the requirements of chapter 326. By January 15, 2001, 
102.30 	the board, in consultation with the Minnesota Association of Professional Soil Scientists, 
102.31 	the University of Minnesota, and the Wetland Delineators' Association, shall submit a plan 
102.32 	for a professional wetland delineator certification program to the legislature. The board 
102.33 	may develop a professional wetland delineator certification program.

102.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

103.1 	Sec. 129. Minnesota Statutes 2006, section 103G.2242, subdivision 2a, is amended to 
103.2 	read:
103.3 		Subd. 2a.Wetland boundary or type determination. (a) A landowner may apply 
103.4 	for a wetland boundary or type determination from the local government unit. The 
103.5 	landowner applying for the determination is responsible for submitting proof necessary 
103.6 	to make the determination, including, but not limited to, wetland delineation field data, 
103.7 	observation well data, topographic mapping, survey mapping, and information regarding 
103.8 	soils, vegetation, hydrology, and groundwater both within and outside of the proposed 
103.9 	wetland boundary.
103.10 	(b) A local government unit that receives an application under paragraph (a) may 
103.11 	seek the advice of the Technical Evaluation Panel as described in subdivision 2, and, if 
103.12 	necessary, expand the Technical Evaluation Panel. The local government unit may delegate 
103.13 	the decision authority for wetland boundary or type determinations with the zoning 
103.14 	administrator to designated staff, or establish other procedures it considers appropriate.
103.15 	(c) The local government unit decision must be made in compliance with section 
103.16 	15.99. Within ten calendar days of the decision, the local government unit decision must 
103.17 	be mailed to the landowner, members of the Technical Evaluation Panel, the watershed 
103.18 	district or watershed management organization, if one exists, and individual members of 
103.19 	the public who request a copy. 
103.20 	(d) Appeals of decisions made by designated local government staff must be made 
103.21 	to the local government unit. Notwithstanding any law to the contrary, a ruling on an 
103.22 	appeal must be made by the local government unit within 30 days from the date of the 
103.23 	filing of the appeal.
103.24 	(e) The local government unit decision is valid for three years unless the Technical 
103.25 	Evaluation Panel determines that natural or artificial changes to the hydrology, vegetation, 
103.26 	or soils of the area have been sufficient to alter the wetland boundary or type.

103.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

103.28 	Sec. 130. Minnesota Statutes 2006, section 103G.2242, subdivision 9, is amended to 
103.29 	read:
103.30 		Subd. 9.Appeal. (a) Appeal of a replacement plan, exemption, wetland banking, 
103.31 	wetland boundary or type determination, or no-loss decision, or restoration order may 
103.32 	be obtained by mailing a petition and payment of a filing fee of $200, which shall be 
103.33 	retained by the board to defray administrative costs, to the board within 30 days after the 
103.34 	postmarked date of the mailing specified in subdivision 7. If appeal is not sought within 
103.35 	30 days, the decision becomes final. The local government unit may require the petitioner 
104.1 	to post a letter of credit, cashier's check, or cash in an amount not to exceed $500. If the 
104.2 	petition for hearing is accepted, the amount posted must be returned to the petitioner. 
104.3 	Appeal may be made by:
104.4 	(1) the wetland owner;
104.5 	(2) any of those to whom notice is required to be mailed under subdivision 7; or
104.6 	(3) 100 residents of the county in which a majority of the wetland is located.
104.7 	(b) Within 30 days after receiving a petition, the board shall decide whether to 
104.8 	grant the petition and hear the appeal. The board shall grant the petition unless the board 
104.9 	finds that:
104.10 	(1) the appeal is meritless, trivial, or brought solely for the purposes of delay;
104.11 	(2) the petitioner has not exhausted all local administrative remedies;
104.12 	(3) expanded technical review is needed;
104.13 	(4) the local government unit's record is not adequate; or
104.14 	(5) the petitioner has not posted a letter of credit, cashier's check, or cash if required 
104.15 	by the local government unit.
104.16 	(c) In determining whether to grant the appeal, the board shall also consider the 
104.17 	size of the wetland, other factors in controversy, any patterns of similar acts by the local 
104.18 	government unit or petitioner, and the consequences of the delay resulting from the appeal.
104.19 	(d) All appeals must be heard by the committee for dispute resolution of the board, 
104.20 	and a decision made within 60 days of filing the local government unit's record and the 
104.21 	written briefs submitted for the appeal. The decision must be served by mail on the parties 
104.22 	to the appeal, and is not subject to the provisions of chapter 14. A decision whether to 
104.23 	grant a petition for appeal and a decision on the merits of an appeal must be considered the 
104.24 	decision of an agency in a contested case for purposes of judicial review under sections 
104.25 	14.63 to 14.69. 
104.26 	(e) Notwithstanding section 16A.1283, the board shall establish a fee schedule to 
104.27 	defray the administrative costs of appeals made to the board under this subdivision. Fees 
104.28 	established under this authority shall not exceed $1,000. Establishment of the fee is not 
104.29 	subject to the rulemaking process of chapter 14 and section 14.386 does not apply.

104.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

104.31 	Sec. 131. Minnesota Statutes 2006, section 103G.2242, subdivision 12, is amended to 
104.32 	read:
104.33 		Subd. 12.Replacement credits. (a) No public or private wetland restoration, 
104.34 	enhancement, or construction may be allowed for replacement unless specifically 
104.35 	designated for replacement and paid for by the individual or organization performing the 
105.1 	wetland restoration, enhancement, or construction, and is completed prior to any draining 
105.2 	or filling of the wetland.
105.3 	(b) Paragraph (a) does not apply to a wetland whose owner has paid back with 
105.4 	interest the individual or organization restoring, enhancing, or constructing the wetland.
105.5 	(c) Notwithstanding section 103G.222, subdivision 1, paragraph (h) (i), the 
105.6 	following actions, and others established in rule, that are consistent with criteria in rules 
105.7 	adopted by the board in conjunction with the commissioners of natural resources and 
105.8 	agriculture, are eligible for replacement credit as determined by the local government unit, 
105.9 	including enrollment in a statewide wetlands bank: 
105.10 	(1) reestablishment of permanent native, noninvasive vegetative cover on a wetland 
105.11 	on agricultural land that was planted with annually seeded crops, was in a crop rotation 
105.12 	seeding of pasture grasses or legumes, or was in a land retirement program during the 
105.13 	past ten years;
105.14 	(2) buffer areas of permanent native, noninvasive vegetative cover established or 
105.15 	preserved on upland adjacent to replacement wetlands;
105.16 	(3) wetlands restored for conservation purposes under terminated easements or 
105.17 	contracts; and
105.18 	(4) water quality treatment ponds constructed to pretreat storm water runoff prior 
105.19 	to discharge to wetlands, public waters, or other water bodies, provided that the water 
105.20 	quality treatment ponds must be associated with an ongoing or proposed project that 
105.21 	will impact a wetland and replacement credit for the treatment ponds is based on the 
105.22 	replacement of wetland functions and on an approved stormwater management plan for 
105.23 	the local government.
105.24 	(d) Notwithstanding section 103G.222, subdivision 1, paragraphs (e) (f) and (f) (g), 
105.25 	the board may establish by rule different replacement ratios for restoration projects with 
105.26 	exceptional natural resource value. 

105.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

105.28 	Sec. 132. Minnesota Statutes 2006, section 103G.2242, subdivision 15, is amended to 
105.29 	read:
105.30 		Subd. 15.Fees paid to board. All fees established in subdivision subdivisions 9 
105.31 	and 14 must be paid to the Board of Water and Soil Resources and credited to the general 
105.32 	fund to be used for the purpose of administration of the wetland bank and to process 
105.33 	appeals under section 103G.2242, subdivision 9.

105.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

106.1 	Sec. 133. Minnesota Statutes 2006, section 103G.2243, subdivision 2, is amended to 
106.2 	read:
106.3 		Subd. 2.Plan contents. A comprehensive wetland protection and management 
106.4 	plan may:
106.5 	(1) provide for classification of wetlands in the plan area based on:
106.6 	(i) an inventory of wetlands in the plan area;
106.7 	(ii) an assessment of the wetland functions listed in section 103B.3355, using a 
106.8 	methodology chosen by the Technical Evaluation Panel from one of the methodologies 
106.9 	established or approved by the board under that section; and 
106.10 	(iii) the resulting public values;
106.11 	(2) vary application of the sequencing standards in section 103G.222, subdivision 1, 
106.12 	paragraph (b), for projects based on the classification and criteria set forth in the plan; 
106.13 	(3) vary the replacement standards of section 103G.222, subdivision 1, paragraphs 
106.14 	(e) (f) and (f) (g), based on the classification and criteria set forth in the plan, for specific 
106.15 	wetland impacts provided there is no net loss of public values within the area subject to 
106.16 	the plan, and so long as: 
106.17 	(i) in a 50 to 80 percent area, a minimum acreage requirement of one acre of replaced 
106.18 	wetland for each acre of drained or filled wetland requiring replacement is met within 
106.19 	the area subject to the plan; and
106.20 	(ii) in a less than 50 percent area, a minimum acreage requirement of two acres of 
106.21 	replaced wetland for each acre of drained or filled wetland requiring replacement is met 
106.22 	within the area subject to the plan, except that replacement for the amount above a 1:1 
106.23 	ratio can be accomplished as described in section 103G.2242, subdivision 12; and
106.24 	(4) in a greater than 80 percent area, allow replacement credit, based on the 
106.25 	classification and criteria set forth in the plan, for any project that increases the public 
106.26 	value of wetlands, including activities on adjacent upland acres; and.
106.27 	(5) in a greater than 80 percent area, based on the classification and criteria set forth 
106.28 	in the plan, expand the application of the exemptions in section 103G.2241, subdivision 
106.29 	1, paragraph (a), clause (4), to also include nonagricultural land, provided there is no 
106.30 	net loss of wetland values.

106.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

106.32 	Sec. 134. Minnesota Statutes 2006, section 103G.235, is amended to read:
106.33 	103G.235 RESTRICTIONS ON ACCESS TO PUBLIC WATERS WETLANDS.
107.1 		Subdivision 1.Wetlands adjacent to roads. To protect the public health or safety, 
107.2 	local units of government may by ordinance restrict public access to public waters 
107.3 	wetlands from municipality, county, or township roads that abut public waters wetlands.
107.4 		Subd. 2.Privately restored or created wetlands. When a landowner creates a new 
107.5 	wetland or restores a formerly existing wetland on private land that is adjacent to public 
107.6 	land or a public road right-of-way, there is no public access to the created or restored 
107.7 	wetland if posted by the landowner.

107.8 	Sec. 135. Minnesota Statutes 2006, section 103G.301, subdivision 2, is amended to 
107.9 	read:
107.10 		Subd. 2.Permit application fees. (a) A permit application fee to defray the costs of 
107.11 	receiving, recording, and processing the application must be paid for a permit authorized 
107.12 	under this chapter and for each request to amend or transfer an existing permit.
107.13 	(b) The fee for a project appropriating water in excess of 100 million gallons per 
107.14 	year must be assessed to recover the reasonable costs of preparing and processing the 
107.15 	permit, including costs for environmental review. Fees collected under this paragraph 
107.16 	must be credited to an account in the natural resources fund and are appropriated to the 
107.17 	commissioner for fiscal years 2008 and 2009.
107.18 	(b) (c) The fee to apply for a permit to appropriate water, other than a permit subject 
107.19 	to the fee under paragraph (b); a permit to construct or repair a dam that is subject to dam 
107.20 	safety inspection,; or a state general permit or to apply for the state water bank program is 
107.21 	$150. The application fee for a permit to work in public waters or to divert waters for 
107.22 	mining must be at least $150, but not more than $1,000, according to a schedule of fees 
107.23 	adopted under section 16A.1285.

107.24 	Sec. 136. Minnesota Statutes 2006, section 115.55, subdivision 1, is amended to read:
107.25 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to sections 
107.26 	115.55 to 115.56. 
107.27 	(b) "Advisory committee" means the Advisory Committee on Individual Sewage 
107.28 	Treatment Systems established under the individual sewage treatment system rules. The 
107.29 	advisory committee must be appointed to ensure geographic representation of the state 
107.30 	and include elected public officials.
107.31 	(c) "Applicable requirements" means:
107.32 	(1) local ordinances that comply with the individual sewage treatment system rules, 
107.33 	as required in subdivision 2; or
108.1 	(2) in areas not subject to the ordinances described in clause (1), the individual 
108.2 	sewage treatment system rules.
108.3 	(d) "City" means a statutory or home rule charter city.
108.4 	(e) "Commissioner" means the commissioner of the Pollution Control Agency.
108.5 	(f) "Dwelling" means a building or place used or intended to be used by human 
108.6 	occupants as a single-family or two-family unit.
108.7 	(g) "Individual sewage treatment system" or "system" means a sewage treatment 
108.8 	system, or part thereof, serving a dwelling, other establishment, or group thereof, that 
108.9 	uses subsurface soil treatment and disposal, or a holding tank, serving a dwelling, other 
108.10 	establishment, or a group thereof.
108.11 	(h) "Individual sewage treatment system professional" means an inspector, installer, 
108.12 	site evaluator or designer, or pumper.
108.13 	(i) "Individual sewage treatment system rules" means rules adopted by the agency 
108.14 	that establish minimum standards and criteria for the design, location, installation, use, 
108.15 	and maintenance of individual sewage treatment systems.
108.16 	(j) "Inspector" means a person who inspects individual sewage treatment systems for 
108.17 	compliance with the applicable requirements.
108.18 	(k) "Installer" means a person who constructs or repairs individual sewage treatment 
108.19 	systems.
108.20 	(l) "Local unit of government" means a township, city, or county.
108.21 	(m) "Performance-based system" means a system that is designed specifically for a 
108.22 	site and the environmental conditions on that site and designed to adequately protect the 
108.23 	public health and the environment and provide long-term performance. At a minimum, a 
108.24 	performance based system must ensure that applicable water quality standards are met in 
108.25 	both ground and surface water that ultimately receive the treated wastewater. 
108.26 	(n) "Pumper" means a person who maintains components of individual sewage 
108.27 	treatment systems including, but not limited to, septic, aerobic, and holding tanks.
108.28 	(n) (o) "Seasonal dwelling" means a dwelling that is occupied or used for less than 
108.29 	180 days per year and less than 120 consecutive days.
108.30 	(o) (p) "Septic system tank" means any covered receptacle designed, constructed, 
108.31 	and installed as part of an individual sewage treatment system.
108.32 	(p) (q) "Site evaluator or designer" means a person who:
108.33 	(1) investigates soils and site characteristics to determine suitability, limitations, and 
108.34 	sizing requirements; and
108.35 	(2) designs individual sewage treatment systems.
109.1 	(q) (r) "Straight-pipe system" means a sewage disposal system that includes toilet 
109.2 	waste and transports raw or partially settled sewage directly to a lake, a stream, a drainage 
109.3 	system, or ground surface.

109.4 	Sec. 137. Minnesota Statutes 2006, section 115.55, subdivision 2, is amended to read:
109.5 		Subd. 2.Local ordinances. (a) All counties that did not adopt ordinances by 
109.6 	May 7, 1994, or that do not have ordinances, must adopt ordinances that comply with 
109.7 	revisions to the individual sewage treatment system rules by January 1, 1999, unless all 
109.8 	towns and cities in the county have adopted such ordinances within two years of the final 
109.9 	adoption by the agency. County ordinances must apply to all areas of the county other 
109.10 	than cities or towns that have adopted ordinances that comply with this section and are 
109.11 	as strict as the applicable county ordinances. Any ordinance adopted by a local unit of 
109.12 	government before May 7, 1994, to regulate individual sewage treatment systems must be 
109.13 	in compliance with the individual sewage treatment system rules by January 1, 1998.
109.14 	(b) A copy of each ordinance adopted under this subdivision must be submitted to 
109.15 	the commissioner upon adoption.
109.16 	(c) A local unit of government must make available to the public upon request a 
109.17 	written list of any differences between its ordinances and rules adopted under this section.

109.18 	Sec. 138. Minnesota Statutes 2006, section 115.55, subdivision 3, is amended to read:
109.19 		Subd. 3.Rules. (a) The agency shall adopt rules containing minimum standards and 
109.20 	criteria for the design, location, installation, use, and maintenance of individual sewage 
109.21 	treatment systems. The rules must include:
109.22 	(1) how the agency will ensure compliance under subdivision 2;
109.23 	(2) how local units of government shall enforce ordinances under subdivision 2, 
109.24 	including requirements for permits and inspection programs;
109.25 	(3) how the advisory committee will participate in review and implementation of 
109.26 	the rules;
109.27 	(4) provisions for alternative nonstandard  systems and performance-based systems;
109.28 	(5) provisions for handling and disposal of effluent;
109.29 	(6) provisions for system abandonment; and
109.30 	(7) procedures for variances, including the consideration of variances based on cost 
109.31 	and variances that take into account proximity of a system to other systems.
109.32 	(b) The agency shall consult with the advisory committee before adopting rules 
109.33 	under this subdivision.
110.1 	(c) Notwithstanding the repeal of the agency rule under which the commissioner 
110.2 	has established a list of warrantied individual sewage treatment systems, the warranties 
110.3 	for all systems so listed as of the effective date of the repeal shall continue to be valid 
110.4 	for the remainder of the warranty period.
110.5 	(d) The rules required in paragraph (a) must also address the following:
110.6 	(1) a definition of redoximorphic features and other criteria that can be used by 
110.7 	system designers and inspectors;
110.8 	(2) direction on the interpretation of observed soil features that may be 
110.9 	redoximorphic and their relation to zones of seasonal saturation; and
110.10 	(3) procedures on how to resolve professional disagreements on seasonally saturated 
110.11 	soils.
110.12 	These rules must be in place by March 31, 2006.

110.13 	Sec. 139. Minnesota Statutes 2006, section 115.55, is amended by adding a subdivision 
110.14 	to read:
110.15 		Subd. 12.Advisory committee; county individual sewage treatment system 
110.16 	management plan. (a) A county may adopt an individual sewage treatment system 
110.17 	management plan that describes how the county plans on carrying out individual sewage 
110.18 	treatment system needs. The commissioner of the Pollution Control Agency shall form an 
110.19 	advisory committee to determine what the plans should address. The advisory committee 
110.20 	shall be made up of representatives of the Association of Minnesota Counties, Pollution 
110.21 	Control Agency, Board of Water and Soil Resources, Department of Health, and other 
110.22 	public agencies or local units of government that have an interest in individual sewage 
110.23 	treatment systems.
110.24 	(b) The advisory committee shall advise the agency on the standards, management, 
110.25 	monitoring, and reporting requirements for performance-based systems.

110.26 	Sec. 140. Minnesota Statutes 2006, section 116C.92, is amended to read:
110.27 	116C.92 COORDINATION OF ACTIVITIES.
110.28 		Subdivision 1.State coordinating organization. The Environmental Quality Board 
110.29 	is designated the state coordinating organization for state and federal regulatory activities 
110.30 	relating to genetically engineered organisms.
110.31 		Subd. 2.Notice of nationwide action. The board shall notify interested parties if a 
110.32 	permit to release genetically engineered wild rice is issued anywhere in the United States. 
110.33 	For purposes of this subdivision, "interested parties" means:
110.34 	(1) the state's wild rice industry;
111.1 	(2) the legislature;
111.2 	(3) federally recognized tribes within Minnesota; and
111.3 	(4) individuals who request to be notified.

111.4 	Sec. 141. Minnesota Statutes 2006, section 116C.94, subdivision 1, is amended to read:
111.5 		Subdivision 1.General authority. (a) Except as provided in paragraph (b), the 
111.6 	board shall adopt rules consistent with sections 116C.91 to 116C.96 that require an 
111.7 	environmental assessment worksheet and otherwise comply with chapter 116D and rules 
111.8 	adopted under it for a proposed release and a permit for a release. The board may place 
111.9 	conditions on a permit and may deny, modify, suspend, or revoke a permit. 
111.10 	(b) The board shall adopt rules that require an environmental impact statement and 
111.11 	otherwise comply with chapter 116D and rules adopted under it for a proposed release and 
111.12 	a permit for a release of genetically engineered wild rice. The board may place conditions 
111.13 	on the permit and may deny, modify, suspend, or revoke the permit. 

111.14 	Sec. 142. Minnesota Statutes 2006, section 116C.97, subdivision 2, is amended to read:
111.15 		Subd. 2.Federal oversight. (a) If the board determines, upon its own volition or at 
111.16 	the request of any person, that a federal program exists for regulating the release of certain 
111.17 	genetically engineered organisms and the federal oversight under the program is adequate 
111.18 	to protect human health or the environment, then any person may release such genetically 
111.19 	engineered organisms after obtaining the necessary federal approval and without obtaining 
111.20 	a state release permit or a significant environmental permit or complying with the other 
111.21 	requirements of sections 116C.91 to 116C.96 and the rules of the board adopted pursuant 
111.22 	to section 116C.94. 
111.23 	(b) If the board determines the federal program is adequate to meet only certain 
111.24 	requirements of sections 116C.91 to 116C.96 and the rules of the board adopted pursuant 
111.25 	to section 116C.94, the board may exempt such releases from those requirements. 
111.26 	(c) A person proposing a release for which a federal authorization is required may 
111.27 	apply to the board for an exemption from the board's permit or to a state agency with a 
111.28 	significant environmental permit for the proposed release for an exemption from the 
111.29 	agency's permit. The proposer must file with the board or state agency a written request 
111.30 	for exemption with a copy of the federal application and the information necessary to 
111.31 	determine if there is a potential for significant environmental effects under chapter 116D 
111.32 	and rules adopted under it. The board or state agency shall give public notice of the request 
111.33 	in the first available issue of the EQB Monitor and shall provide an opportunity for public 
111.34 	comment on the environmental review process consistent with chapter 116D and rules 
112.1 	adopted under it. The board or state agency may grant the exemption if the board or state 
112.2 	agency finds that the federal authorization issued is adequate to meet the requirements of 
112.3 	chapter 116D and rules adopted under it and any other requirement of the board's or state 
112.4 	agency's authority regarding the release of genetically engineered organisms. The board 
112.5 	or state agency must grant or deny the exemption within 45 days after the receipt of the 
112.6 	written request and the information required by the board or state agency.
112.7 	(d) This subdivision does not apply to genetically engineered organisms for which 
112.8 	an environmental impact statement is required under sections 116C.91 to 116C.96.

112.9 	Sec. 143. [144.995] DEFINITIONS; ENVIRONMENTAL HEALTH TRACKING 
112.10 	AND BIOMONITORING.
112.11 	(a) For purposes of sections 144.995 to 144.998, the terms in this section have 
112.12 	the meanings given.
112.13 	(b) "Advisory panel" means the Environmental Health Tracking and Biomonitoring 
112.14 	Advisory Panel established under section 144.998.
112.15 	(c) "Biomonitoring" means the process by which chemicals and their metabolites are 
112.16 	identified and measured within a biospecimen.
112.17 	(d) "Biospecimen" means a sample of human fluid, serum, or tissue that is reasonably 
112.18 	available as a medium to measure the presence and concentration of chemicals or their 
112.19 	metabolites in a human body.
112.20 	(e) "Commissioner" means the commissioner of the Department of Health.
112.21 	(f) "Community" means geographically or nongeographically based populations that 
112.22 	may participate in the biomonitoring program. A "nongeographical community" includes, 
112.23 	but is not limited to, populations that may share a common chemical exposure through 
112.24 	similar occupations, populations experiencing a common health outcome that may be 
112.25 	linked to chemical exposures, populations that may experience similar chemical exposures 
112.26 	because of comparable consumption, lifestyle, product use, and subpopulations that share 
112.27 	ethnicity, age, or gender.
112.28 	(g) "Department" means the Department of Health.
112.29 	(h) "Designated chemicals" means those chemicals that are known to, or strongly 
112.30 	suspected of, adversely impacting human health or development, based upon scientific, 
112.31 	peer-reviewed animal, human, or in vitro studies, and baseline human exposure data, 
112.32 	and consists of chemical families or metabolites that are included in the federal Centers 
112.33 	for Disease Control and Prevention studies that are known collectively as the National 
112.34 	Reports on Human Exposure to Environmental Chemicals Program and any substances 
113.1 	specified by the commissioner after receiving recommendations under section 144.998, 
113.2 	subdivision 3, clause (6).
113.3 	(i) "Environmental hazard" means a chemical or other substance for which scientific, 
113.4 	peer-reviewed studies of humans, animals, or cells have demonstrated that the chemical is 
113.5 	known or reasonably anticipated to adversely impact human health.
113.6 	(j) "Environmental health tracking" means collection, integration, analysis, and 
113.7 	dissemination of data on human exposures to  chemicals in the environment and on 
113.8 	diseases potentially caused or aggravated by those chemicals.

113.9 	Sec. 144. [144.996] ENVIRONMENTAL HEALTH TRACKING; 
113.10 	BIOMONITORING.
113.11 		Subdivision 1.Environmental health tracking. In cooperation with the 
113.12 	commissioner of the Pollution Control Agency, the commissioner shall establish an 
113.13 	environmental health tracking program to:
113.14 	(1) coordinate data collection with the Pollution Control Agency, Department of 
113.15 	Agriculture, University of Minnesota, and any other relevant state agency and work to 
113.16 	promote the sharing of and access to health and environmental databases to develop an 
113.17 	environmental health tracking system for Minnesota, consistent with applicable data 
113.18 	practices laws;
113.19 	(2) facilitate the dissemination of aggregate public health tracking data to the public 
113.20 	and researchers in accessible format;
113.21 	(3) develop a strategic plan that includes a mission statement, the identification 
113.22 	of core priorities for research and epidemiologic surveillance, and the identification of 
113.23 	internal and external stakeholders, and a work plan describing future program development 
113.24 	and addressing issues having to do with compatibility with the Centers for Disease Control 
113.25 	and Prevention's National Environmental Public Health Tracking Program;
113.26 	(4) develop written data sharing agreements as needed with the Pollution Control 
113.27 	Agency, Department of Agriculture, and other relevant state agencies and organizations, 
113.28 	and develop additional procedures as needed to protect individual privacy;
113.29 	(5) organize, analyze, and interpret available data, in order to:
113.30 	(i) characterize statewide and localized trends and geographic patterns of 
113.31 	population-based measures of chronic diseases including, but not limited to, cancer, 
113.32 	respiratory diseases, reproductive problems, birth defects, neurologic diseases, and 
113.33 	developmental disorders;
113.34 	(ii) characterize statewide and localized trends and geographic patterns in the 
113.35 	occurrence of environmental hazards and exposures;
114.1 	(iii) assess the feasibility of integrating disease rate data with indicators of exposure 
114.2 	to the selected environmental hazards such as biomonitoring data, and other health and 
114.3 	environmental data;
114.4 	(iv) incorporate newly collected and existing health tracking and biomonitoring 
114.5 	data into efforts to identify communities with elevated rates of chronic disease, higher 
114.6 	likelihood of exposure to environmental hazards, or both;
114.7 	(v) analyze occurrence of environmental hazards, exposures, and diseases with 
114.8 	relation to socioeconomic status, race, and ethnicity;
114.9 	(vi) develop and implement targeted plans to conduct more intensive health tracking 
114.10 	and biomonitoring among communities; and
114.11 	(vii) work with the Pollution Control Agency, the Department of Agriculture, and 
114.12 	other relevant state agency personnel and organizations to develop, implement, and 
114.13 	evaluate preventive measures to reduce elevated rates of diseases and exposures identified 
114.14 	through activities performed under sections 144.995 to 144.998; and
114.15 	(6) submit a biennial report to the chairs and ranking members of the committees 
114.16 	with jurisdiction over environment and health by January 15, beginning January 15, 2009, 
114.17 	on the status of environmental health tracking activities and related research programs, 
114.18 	with recommendations for a comprehensive environmental public health tracking program.
114.19 		Subd. 2.Biomonitoring. The commissioner shall:
114.20 	(1) conduct biomonitoring of communities on a voluntary  basis by collecting and 
114.21 	analyzing biospecimens, as appropriate, to assess environmental exposures to designated 
114.22 	chemicals;
114.23 	(2) conduct biomonitoring of pregnant women and minors on a voluntary basis, 
114.24 	when scientifically appropriate; 
114.25 	(3) communicate findings to the public, and plan ensuing stages of biomonitoring 
114.26 	and disease tracking work to further develop and refine the integrated analysis;
114.27 	(4) share analytical results with the advisory panel and work with the panel 
114.28 	to interpret results, communicate findings to the public, and plan ensuing stages of 
114.29 	biomonitoring work; and
114.30 	(5) submit a biennial report to the chairs and ranking members of the committees 
114.31 	with jurisdiction over environment and health by January 15, beginning January 15, 2009, 
114.32 	on the status of the biomonitoring program and any recommendations for improvement.
114.33 		Subd. 3.Health data. Data collected under the biomonitoring program are health 
114.34 	data under section 13.3805.

114.35 	Sec. 145. [144.997] BIOMONITORING PILOT PROGRAM.
115.1 		Subdivision 1.Pilot program. With advice from the advisory panel, and after the 
115.2 	program guidelines in subdivision 4 are developed, the commissioner shall implement a 
115.3 	biomonitoring pilot program. The program shall collect one biospecimen from each of 
115.4 	the voluntary participants. The biospecimen selected must be the biospecimen that most 
115.5 	accurately represents body concentration of the chemical of interest. Each biospecimen 
115.6 	from the voluntary participants must be analyzed for one type or class of related chemicals. 
115.7 	The commissioner shall determine the chemical or class of chemicals to which community 
115.8 	members were most likely exposed. The program shall collect and assess biospecimens in 
115.9 	accordance with the following: 
115.10 	(1) 30 voluntary participants from each of three communities that the commissioner 
115.11 	identifies as likely to have been exposed to a designated chemical; 
115.12 	(2) 100 voluntary participants from each of two communities:
115.13 	(i) that the commissioner identifies as likely to have been exposed to arsenic; and
115.14 	(ii) that the commissioner identifies as likely to have been exposed to mercury; and 
115.15 	(3) 100 voluntary participants from each of two communities that the commissioner 
115.16 	identifies as likely to have been exposed to perfluorinated chemicals, including 
115.17 	perfluorobutanoic acid.
115.18 		Subd. 2.Base program. (a) By January 15, 2008, the commissioner shall submit a 
115.19 	report on the results of the biomonitoring pilot program to the chairs and ranking members 
115.20 	of the committees with jurisdiction over health and environment. 
115.21 	(b) Following the conclusion of the pilot program, the commissioner shall:
115.22 	(1) work with the advisory panel to assess the usefulness of continuing biomonitoring 
115.23 	among members of communities assessed during the pilot program and to identify other 
115.24 	communities and other designated chemicals to be assessed via biomonitoring;
115.25 	(2) work with the advisory panel to assess the pilot program, including but not 
115.26 	limited to the validity and accuracy of the analytical measurements and adequacy of the 
115.27 	guidelines and protocols;
115.28 	(3) communicate the results of the pilot program to the public; and
115.29 	(4) after consideration of the findings and recommendations in clauses (1) and (2), 
115.30 	and within the appropriations available, develop and implement a base program.
115.31 		Subd. 3.Participation. (a) Participation in the biomonitoring program by providing 
115.32 	biospecimens is voluntary and requires written, informed consent. Minors may participate 
115.33 	in the program if a written consent is signed by the minor's parent or legal guardian. 
115.34 	The written consent must include the information required to be provided under this 
115.35 	subdivision to all voluntary participants.
116.1 	(b) All participants shall be evaluated for the presence of the designated chemical 
116.2 	of interest as a component of the biomonitoring process. Participants shall be provided 
116.3 	with information and fact sheets about the program's activities and its findings. 
116.4 	Individual participants shall, if requested, receive their complete results. Any results 
116.5 	provided to participants shall be subject to the Department of Health Institutional 
116.6 	Review Board protocols and guidelines. When either physiological or chemical data 
116.7 	obtained from a participant indicate a significant known health risk, program staff 
116.8 	experienced in communicating biomonitoring results shall consult with the individual 
116.9 	and recommend follow-up steps, as appropriate. Program administrators shall receive 
116.10 	training in administering the program in an ethical, culturally sensitive, participatory, 
116.11 	and community-based manner.
116.12 		Subd. 4.Program guidelines. (a) The commissioner, in consultation with the 
116.13 	advisory panel, shall develop:
116.14 	(1) protocols or program guidelines that address the science and practice of 
116.15 	biomonitoring to be utilized and procedures for changing those protocols to incorporate 
116.16 	new and more accurate or efficient technologies as they become available. The 
116.17 	commissioner and the advisory panel shall be guided by protocols and guidelines 
116.18 	developed by the Centers for Disease Control and Prevention and the National 
116.19 	Biomonitoring Program;
116.20 	(2) guidelines for ensuring the privacy of information; informed consent; follow-up 
116.21 	counseling and support; and communicating findings to participants, communities, and 
116.22 	the general public. The informed consent used for the program must meet the informed 
116.23 	consent protocols developed by the National Institutes of Health;
116.24 	(3) educational and outreach materials that are culturally appropriate for 
116.25 	dissemination to program participants and communities. Priority shall be given to the 
116.26 	development of materials specifically designed to ensure that parents are informed about 
116.27 	all of the benefits of breastfeeding so that the program does not result in an unjustified fear 
116.28 	of toxins in breast milk, which might inadvertently lead parents to avoid breastfeeding. 
116.29 	The materials shall communicate relevant scientific findings; data on the accumulation 
116.30 	of pollutants to community health; and the required responses by local, state, and other 
116.31 	governmental entities in regulating toxicant exposures;
116.32 	(4) a training program that is culturally sensitive specifically for health care 
116.33 	providers, health educators, and other program administrators; 
116.34 	(5) a designation process for state and private laboratories that are qualified to 
116.35 	analyze biospecimens and report the findings; and 
117.1 	(6) a method for informing affected communities and local governments representing 
117.2 	those communities concerning biomonitoring activities and for receiving comments from 
117.3 	citizens concerning those activities.
117.4 	(b) The commissioner may enter into contractual agreements with health clinics, 
117.5 	community-based organizations, or experts in a particular field to perform any of the 
117.6 	activities described under this section.

117.7 	Sec. 146. [144.998] ENVIRONMENTAL HEALTH TRACKING AND 
117.8 	BIOMONITORING ADVISORY PANEL.
117.9 		Subdivision 1.Creation. The commissioner shall establish the Environmental 
117.10 	Health Tracking and Biomonitoring Advisory Panel. The commissioner shall appoint, 
117.11 	from the panel's membership, a chair. The panel shall meet as often as it deems necessary 
117.12 	but, at a minimum, on a quarterly basis. Members of the panel shall serve without 
117.13 	compensation but shall be reimbursed for travel and other necessary expenses incurred 
117.14 	through performance of their duties. Members appointed by the commissioner are 
117.15 	appointed for a three-year term and may be reappointed. Legislative appointees serve at 
117.16 	the pleasure of the appointing authority.
117.17 		Subd. 2.Members. (a) The commissioner shall appoint eight members, none of 
117.18 	whom may be lobbyists registered under chapter 10A, who have backgrounds or training 
117.19 	in designing, implementing, and interpreting health tracking and biomonitoring studies or 
117.20 	in related fields of science, including epidemiology, biostatistics, environmental health, 
117.21 	laboratory sciences, occupational health, industrial hygiene, toxicology, and public health, 
117.22 	including:
117.23 	(1) at least two scientists representative of each of the following:
117.24 	(i) nongovernmental organizations with a focus on environmental health, 
117.25 	environmental justice, children's health, or on specific chronic diseases; and
117.26 	(ii) statewide business organizations; and
117.27 	(2) at least one scientist who is a representative of the University of Minnesota.
117.28 	(b) Two citizen panel members meeting the scientific qualifications in paragraph (a) 
117.29 	shall be appointed, one by the speaker of the house and one by the senate majority leader.
117.30 	(c) In addition, one representative each shall be appointed by the commissioners of 
117.31 	the Pollution Control Agency and the Department of Agriculture, and by the commissioner 
117.32 	of health to represent the department's Health Promotion and Chronic Disease Division.
117.33 		Subd. 3.Duties. The advisory panel shall make recommendations to the 
117.34 	commissioner and the legislature on:
117.35 	(1) priorities for health tracking;
118.1 	(2) priorities for biomonitoring that are based on sound science and practice, and 
118.2 	that will advance the state of public health in Minnesota;
118.3 	(3) specific chronic diseases to study under the environmental health tracking system;
118.4 	(4) specific environmental hazard exposures to study under the environmental health 
118.5 	tracking system, with the agreement of at least nine of the advisory panel members;
118.6 	(5) specific communities and geographic areas on which to focus environmental 
118.7 	health tracking and biomonitoring efforts;
118.8 	(6) specific chemicals to study under the biomonitoring program, with the agreement 
118.9 	of at least nine of the advisory panel members; in making these recommendations, the 
118.10 	panel may consider the following criteria:
118.11 	(i) the degree of potential exposure to the public or specific subgroups, including, 
118.12 	but not limited to, occupational;
118.13 	(ii) the likelihood of a chemical being a carcinogen or toxicant based on 
118.14 	peer-reviewed health data, the chemical structure, or the toxicology of chemically related 
118.15 	compounds;
118.16 	(iii) the limits of laboratory detection for the chemical, including the ability to detect 
118.17 	the chemical at low enough levels that could be expected in the general population;
118.18 	(iv) exposure or potential exposure to the public or specific subgroups;
118.19 	(v) the known or suspected health effects resulting from the same level of exposure 
118.20 	based on peer-reviewed scientific studies;
118.21 	(vi) the need to assess the efficacy of public health actions to reduce exposure to a 
118.22 	chemical;
118.23 	(vii) the availability of a biomonitoring analytical method with adequate accuracy, 
118.24 	precision, sensitivity, specificity, and speed;
118.25 	(viii) the availability of adequate biospecimen samples; or
118.26 	(ix) other criteria that the panel may agree to; and
118.27 	(7) other aspects of the design, implementation, and evaluation of the environmental 
118.28 	health tracking and biomonitoring system, including, but not limited to:
118.29 	(i) identifying possible community partners and sources of additional public or 
118.30 	private funding;
118.31 	(ii) developing outreach and educational methods and materials; and
118.32 	(iii) disseminating environmental health tracking and biomonitoring findings to 
118.33 	the public.
118.34 		Subd. 4.Liability. No member of the panel shall be held civilly or criminally liable 
118.35 	for an act or omission by that person if the act or omission was in good faith and within 
118.36 	the scope of the member's responsibilities under sections 144.995 to 144.998.

119.1 	Sec. 147. Minnesota Statutes 2006, section 219.99, is amended to read:
119.2 	219.99 RAILROAD PRAIRIE RIGHT-OF-WAY; BEST MANAGEMENT 
119.3 	PRACTICES.
119.4 	The commissioner of natural resources shall conduct a field review of railroad 
119.5 	rights-of-way to identify native prairie. The priority will be to identify and conduct a field 
119.6 	review of any surveys which have been conducted previously, whether by public or private 
119.7 	persons, of native prairies within railroad rights-of-way in this state. In cooperation with 
119.8 	railroad companies, the commissioner shall identify management practices used to control 
119.9 	vegetation along railroad rights-of-way. The commissioner shall then assess the impact 
119.10 	of those management practices on the prairie lands within the railroad rights-of-way. 
119.11 	Based on that assessment, the commissioner and railroad companies shall jointly develop 
119.12 	voluntary best management practices for prairie lands within railroad rights-of-way. The 
119.13 	commissioner shall, to the extent feasible, work with private individuals and groups 
119.14 	to cause to be erected markers at either end of each native prairie within a railroad 
119.15 	right-of-way.

119.16 	Sec. 148. Minnesota Statutes 2006, section 282.04, subdivision 1, is amended to read:
119.17 		Subdivision 1.Timber sales; land leases and uses. (a) The county auditor may 
119.18 	sell timber upon any tract that may be approved by the natural resources commissioner. 
119.19 	The sale of timber shall be made for cash at not less than the appraised value determined 
119.20 	by the county board to the highest bidder after not less than one week's published notice 
119.21 	in an official paper within the county. Any timber offered at the public sale and not sold 
119.22 	may thereafter be sold at private sale by the county auditor at not less than the appraised 
119.23 	value thereof, until the time as the county board may withdraw the timber from sale. The 
119.24 	appraised value of the timber and the forestry practices to be followed in the cutting of 
119.25 	said timber shall be approved by the commissioner of natural resources.
119.26 	(b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be 
119.27 	made in cash at the time of the timber sale, except in the case of oral or sealed bid auction 
119.28 	sales, the down payment shall be no less than 15 percent of the appraised value, and the 
119.29 	balance shall be paid prior to entry. In the case of auction sales that are partitioned and 
119.30 	sold as a single sale with predetermined cutting blocks, the down payment shall be no less 
119.31 	than 15 percent of the appraised price of the entire timber sale which may be held until the 
119.32 	satisfactory completion of the sale or applied in whole or in part to the final cutting block. 
119.33 	The value of each separate block must be paid in full before any cutting may begin in that 
119.34 	block. With the permission of the county contract administrator the purchaser may enter 
119.35 	unpaid blocks and cut necessary timber incidental to developing logging roads as may 
120.1 	be needed to log other blocks provided that no timber may be removed from an unpaid 
120.2 	block until separately scaled and paid for. If payment is provided as specified in this 
120.3 	paragraph as security under paragraph (a) and no cutting has taken place on the contract, 
120.4 	the county auditor may credit the security provided, less any down payment required for 
120.5 	an auction sale under this paragraph, to any other contract issued to the contract holder 
120.6 	by the county under this chapter to which the contract holder requests in writing that it 
120.7 	be credited, provided the request and transfer is made within the same calendar year as 
120.8 	the security was received.
120.9 	(c) The county board may require final settlement on the basis of a scale of cut 
120.10 	products sell any timber, including biomass, as appraised or scaled. Any parcels of land 
120.11 	from which timber is to be sold by scale of cut products shall be so designated in the 
120.12 	published notice of sale under paragraph (a), in which case the notice shall contain a 
120.13 	description of the parcels, a statement of the estimated quantity of each species of timber, 
120.14 	and the appraised price of each species of timber for 1,000 feet, per cord or per piece, as 
120.15 	the case may be. In those cases any bids offered over and above the appraised prices shall 
120.16 	be by percentage, the percent bid to be added to the appraised price of each of the different 
120.17 	species of timber advertised on the land. The purchaser of timber from the parcels shall 
120.18 	pay in cash at the time of sale at the rate bid for all of the timber shown in the notice of 
120.19 	sale as estimated to be standing on the land, and in addition shall pay at the same rate for 
120.20 	any additional amounts which the final scale shows to have been cut or was available for 
120.21 	cutting on the land at the time of sale under the terms of the sale. Where the final scale 
120.22 	of cut products shows that less timber was cut or was available for cutting under terms 
120.23 	of the sale than was originally paid for, the excess payment shall be refunded from the 
120.24 	forfeited tax sale fund upon the claim of the purchaser, to be audited and allowed by the 
120.25 	county board as in case of other claims against the county. No timber, except hardwood 
120.26 	pulpwood, may be removed from the parcels of land or other designated landings until 
120.27 	scaled by a person or persons designated by the county board and approved by the 
120.28 	commissioner of natural resources. Landings other than the parcel of land from which 
120.29 	timber is cut may be designated for scaling by the county board by written agreement 
120.30 	with the purchaser of the timber. The county board may, by written agreement with the 
120.31 	purchaser and with a consumer designated by the purchaser when the timber is sold by the 
120.32 	county auditor, and with the approval of the commissioner of natural resources, accept the 
120.33 	consumer's scale of cut products delivered at the consumer's landing. No timber shall be 
120.34 	removed until fully paid for in cash. Small amounts of timber not exceeding $3,000 in 
120.35 	appraised valuation may be sold for not less than the full appraised value at private sale 
120.36 	to individual persons without first publishing notice of sale or calling for bids, provided 
121.1 	that in case of a sale involving a total appraised value of more than $200 the sale shall be 
121.2 	made subject to final settlement on the basis of a scale of cut products in the manner above 
121.3 	provided and not more than two of the sales, directly or indirectly to any individual shall 
121.4 	be in effect at one time.
121.5 	(d) As directed by the county board, the county auditor may lease tax-forfeited land 
121.6 	to individuals, corporations or organized subdivisions of the state at public or private sale, 
121.7 	and at the prices and under the terms as the county board may prescribe, for use as cottage 
121.8 	and camp sites and for agricultural purposes and for the purpose of taking and removing of 
121.9 	hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden 
121.10 	sites and other temporary uses provided that no leases shall be for a period to exceed ten 
121.11 	years; provided, further that any leases involving a consideration of more than $12,000 per 
121.12 	year, except to an organized subdivision of the state shall first be offered at public sale in 
121.13 	the manner provided herein for sale of timber. Upon the sale of any leased land, it shall 
121.14 	remain subject to the lease for not to exceed one year from the beginning of the term of the 
121.15 	lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation 
121.16 	shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be 
121.17 	audited and allowed by the county board as in case of other claims against the county.
121.18 	(e) As directed by the county board, the county auditor may lease tax-forfeited land 
121.19 	to individuals, corporations, or organized subdivisions of the state at public or private sale, 
121.20 	at the prices and under the terms as the county board may prescribe, for the purpose 
121.21 	of taking and removing for use for road construction and other purposes tax-forfeited 
121.22 	stockpiled iron-bearing material. The county auditor must determine that the material is 
121.23 	needed and suitable for use in the construction or maintenance of a road, tailings basin, 
121.24 	settling basin, dike, dam, bank fill, or other works on public or private property, and 
121.25 	that the use would be in the best interests of the public. No lease shall exceed ten years. 
121.26 	The use of a stockpile for these purposes must first be approved by the commissioner of 
121.27 	natural resources. The request shall be deemed approved unless the requesting county 
121.28 	is notified to the contrary by the commissioner of natural resources within six months 
121.29 	after receipt of a request for approval for use of a stockpile. Once use of a stockpile has 
121.30 	been approved, the county may continue to lease it for these purposes until approval is 
121.31 	withdrawn by the commissioner of natural resources.
121.32 	(f) The county auditor, with the approval of the county board is authorized to grant 
121.33 	permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean 
121.34 	ores, tailings, or waste products from mines or ore milling plants, upon the conditions and 
121.35 	for the consideration and for the period of time, not exceeding 15 years, as the county 
122.1 	board may determine. The permits, licenses, or leases are subject to approval by the 
122.2 	commissioner of natural resources.
122.3 	(g) Any person who removes any timber from tax-forfeited land before said 
122.4 	timber has been scaled and fully paid for as provided in this subdivision is guilty of a 
122.5 	misdemeanor.
122.6 	(h) The county auditor may, with the approval of the county board, and without first 
122.7 	offering at public sale, grant leases, for a term not exceeding 25 years, for the removal 
122.8 	of peat and for the production or removal of farm-grown closed-loop biomass as defined 
122.9 	in section 216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited 
122.10 	lands upon the terms and conditions as the county board may prescribe. Any lease for 
122.11 	the removal of peat, farm-grown closed-loop biomass, or short-rotation woody crops 
122.12 	from tax-forfeited lands must first be reviewed and approved by the commissioner of 
122.13 	natural resources if the lease covers 320 or more acres. No lease for the removal of 
122.14 	peat, farm-grown closed-loop biomass, or short-rotation woody crops shall be made by 
122.15 	the county auditor pursuant to this section without first holding a public hearing on the 
122.16 	auditor's intention to lease. One printed notice in a legal newspaper in the county at least 
122.17 	ten days before the hearing, and posted notice in the courthouse at least 20 days before 
122.18 	the hearing shall be given of the hearing.
122.19 	(i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis 
122.20 	County auditor may, at the discretion of the county board, sell timber to the party who 
122.21 	bids the highest price for all the several kinds of timber, as provided for sales by the 
122.22 	commissioner of natural resources under section 90.14. Bids offered over and above the 
122.23 	appraised price need not be applied proportionately to the appraised price of each of 
122.24 	the different species of timber.
122.25 	(j) In lieu of any payment or deposit required in paragraph (b), as directed by the 
122.26 	county board and under terms set by the county board, the county auditor may accept an 
122.27 	irrevocable bank letter of credit in the amount equal to the amount otherwise determined 
122.28 	in paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph, 
122.29 	at the written request of the purchaser, the county may periodically allow the bank letter 
122.30 	of credit to be reduced by an amount proportionate to the value of timber that has been 
122.31 	harvested and for which the county has received payment. The remaining amount of 
122.32 	the bank letter of credit after a reduction under this paragraph must not be less than 20 
122.33 	percent of the value of the timber purchased. If an irrevocable bank letter of credit or 
122.34 	cash deposit is provided for the down payment required in paragraph (b), and no cutting 
122.35 	of timber has taken place on the contract for which a letter of credit has been provided, 
122.36 	the county may allow the transfer of the letter of credit to any other contract issued to the 
123.1 	contract holder by the county under this chapter to which the contract holder requests in 
123.2 	writing that it be credited.

123.3 	Sec. 149. [325E.385] PRODUCTS CONTAINING POLYBROMINATED 
123.4 	DIPHENYL ETHER.
123.5 		Subdivision 1.Definitions. For the purposes of sections 325E.386 to 325E.388, 
123.6 	the terms in this section have the meanings given them.
123.7 		Subd. 2.Commercial decabromodiphenyl ether. "Commercial 
123.8 	decabromodiphenyl ether" means the chemical mixture of decabromodiphenyl ether, 
123.9 	including associated polybrominated diphenyl ether impurities not intentionally added.
123.10 		Subd. 3.Commissioner. "Commissioner" means the commissioner of the Pollution 
123.11 	Control Agency.
123.12 		Subd. 4.Manufacturer. "Manufacturer" means any person, firm, association, 
123.13 	partnership, corporation, governmental entity, organization, or joint venture that produces 
123.14 	a product containing polybrominated diphenyl ethers or an importer or domestic 
123.15 	distributor of a noncomestible product containing polybrominated diphenyl ethers.
123.16 		Subd. 5.Polybrominated diphenyl ethers or PBDE's. "Polybrominated diphenyl 
123.17 	ethers" or "PBDE's" means chemical forms that consist of diphenyl ethers bound with 
123.18 	bromine atoms. Polybrominated diphenyl ethers include, but are not limited to, the 
123.19 	three primary forms of the commercial mixtures known as pentabromodiphenyl ether, 
123.20 	octabromodiphenyl ether, and decabromodiphenyl ether.
123.21 		Subd. 6.Retailer. "Retailer" means a person who offers a product for sale at retail 
123.22 	through any means, including, but not limited to, remote offerings such as sales outlets, 
123.23 	catalogs, or the Internet, but does not include a sale that is a wholesale transaction with a 
123.24 	distributor or a retailer.
123.25 		Subd. 7.Used product. "Used product" means any product that has been previously 
123.26 	owned, purchased, or sold in commerce. Used product does not include any product 
123.27 	manufactured after January 1, 2008.

123.28 	Sec. 150. [325E.386] PRODUCTS CONTAINING CERTAIN 
123.29 	POLYBROMINATED DIPHENYL ETHERS BANNED; EXEMPTIONS.
123.30 		Subdivision 1.Penta- and octabromodiphenyl ethers. Except as provided in 
123.31 	subdivision 3, beginning January 1, 2008, a person may not manufacture, process, or 
123.32 	distribute in commerce a product or flame-retardant part of a product containing more 
123.33 	than one-tenth of one percent of pentabromodiphenyl ether or octabromodiphenyl ether 
123.34 	by mass.
124.1 		Subd. 2.Exemptions. The following products containing polybrominated diphenyl 
124.2 	ethers are exempt from subdivision 1 and section 325E.387, subdivision 2:
124.3 	(1) the sale or distribution of any used transportation vehicle with component parts 
124.4 	containing polybrominated diphenyl ethers;
124.5 	(2) the sale or distribution of any used transportation vehicle parts or new 
124.6 	transportation vehicle parts manufactured before January 1, 2008, that contain 
124.7 	polybrominated diphenyl ethers;
124.8 	(3) the manufacture, sale, repair, distribution, maintenance, refurbishment, or 
124.9 	modification of equipment containing polybrominated diphenyl ethers and used primarily 
124.10 	for military or federally funded space program applications. This exemption does not 
124.11 	cover consumer-based goods with broad applicability;
124.12 	(4) the sale or distribution by a business, charity, public entity, or private party of 
124.13 	any used product containing polybrominated diphenyl ethers;
124.14 	(5) the manufacture, sale, or distribution of new carpet cushion made from recycled 
124.15 	foam containing more than one-tenth of one percent polybrominated diphenyl ether; 
124.16 	(6) medical devices; or
124.17 	(7) the manufacture, sale, repair, distribution, maintenance, refurbishment, or 
124.18 	modification of telecommunications equipment containing polybrominated diphenyl 
124.19 	ethers used by entities eligible to hold authorization in the Public Safety Pool under Code 
124.20 	of Federal Regulations, title 47, part 90.
124.21 	In-state retailers in possession of products on January 1, 2008, that are banned for 
124.22 	sale under subdivision 1 may exhaust their stock through sales to the public. Nothing in 
124.23 	this section restricts the ability of a manufacturer, importer, or distributor  from transporting 
124.24 	products containing polybrominated diphenyl ethers through the state,  or storing such 
124.25 	products in the state for later distribution outside the state.

124.26 	Sec. 151. [325E.387] REVIEW OF DECABROMODIPHENYL ETHER.
124.27 		Subdivision 1.Commissioner duties. The commissioner in consultation 
124.28 	with the commissioners of health and public safety shall review uses of commercial 
124.29 	decabromodiphenyl ether, availability of technically feasible and safer alternatives, fire 
124.30 	safety, and any evidence regarding the potential harm to public health and the environment 
124.31 	posed by commercial decabromodiphenyl ether and the alternatives. The commissioner 
124.32 	must consult with key stakeholders. The commissioner must also review the findings from 
124.33 	similar state and federal agencies and must report their findings and recommendations to 
124.34 	the appropriate committees of the legislature no later than January 15, 2008.
125.1 		Subd. 2.State procurement. By January 1, 2008, the commissioner of 
125.2 	administration shall make available for purchase and use by all state agencies equipment, 
125.3 	supplies, and other products that do not contain polybrominated diphenyl ethers, unless 
125.4 	exempted under section 325E.386, subdivision 2.

125.5 	Sec. 152. [325E.388] PENALTIES.
125.6 	A manufacturer who violates sections 325E.386 to 325E.388 is subject to a 
125.7 	civil penalty not to exceed $1,000 for each violation in the case of a first offense. A 
125.8 	manufacturer is subject to a civil penalty not to exceed $5,000 for each repeat offense. 
125.9 	Penalties collected under this section must be deposited in an account in the special 
125.10 	revenue fund and are appropriated in fiscal years 2008 and 2009 to the commissioner to 
125.11 	implement and enforce this section.

125.12 	Sec. 153. Minnesota Statutes 2006, section 394.23, is amended to read:
125.13 	394.23 COMPREHENSIVE PLAN.
125.14 	The board has the power and authority to prepare and adopt by ordinance, a 
125.15 	comprehensive plan. A comprehensive plan or plans when adopted by ordinance must be 
125.16 	the basis for official controls adopted under the provisions of sections 394.21 to 394.37. 
125.17 	The commissioner of natural resources must provide the natural heritage data from the 
125.18 	county biological survey, if available, to each county for use in the comprehensive plan.

125.19 	Sec. 154. Minnesota Statutes 2006, section 462.353, subdivision 2, is amended to read:
125.20 		Subd. 2.Studies and reports. In exercising its powers under subdivision 1, a 
125.21 	municipality may collect and analyze data, prepare maps, charts, tables, and other 
125.22 	illustrations and displays, and conduct necessary studies. A municipality may publicize its 
125.23 	purposes, suggestions, and findings on planning matters, may distribute reports thereon, 
125.24 	and may advise the public on the planning matters within the scope of its duties and 
125.25 	objectives. The commissioner of natural resources must provide the natural heritage 
125.26 	data from the county biological survey, if available, to each municipality for use in the 
125.27 	comprehensive plan.

125.28 	Sec. 155. Laws 2003, chapter 128, article 1, section 167, subdivision 1, as amended by 
125.29 	Laws 2005, First Special Session chapter 1, article 2, section 152, is amended to read:
125.30 		Subdivision 1.Forest classification status review. (a) By December 31, 2006, the 
125.31 	commissioner of natural resources shall complete a review of the forest classification status 
125.32 	of all state forests classified as managed or limited, all forest lands under the authority of 
126.1 	the commissioner as defined in Minnesota Statutes, section 89.001, subdivision 13, and 
126.2 	lands managed by the commissioner under Minnesota Statutes, section 282.011. The 
126.3 	review must be conducted on a forest-by-forest and area-by-area basis in accordance with 
126.4 	the process and criteria under Minnesota Rules, part 6100.1950. Except as provided in 
126.5 	paragraph (d), after each forest is reviewed, the commissioner must change itsthe status 
126.6 	  of the lands within each forest to limited or closed, and . The commissioner may classify 
126.7 	portions of a limited forest as closed. The commissioner must also provide a similar 
126.8 	status for each of the other areas subject to review under this section after each individual 
126.9 	review is completed.
126.10 	(b) If the commissioner determines on January 1, 2005, that the review required 
126.11 	under this section cannot be completed by December 31, 2006, the completion date for the 
126.12 	review shall be extended to December 31, 2008. By January 15, 2005, the commissioner 
126.13 	shall report to the chairs of the legislative committees with jurisdiction over natural 
126.14 	resources policy and finance regarding the status of the process required by this section.
126.15 	(c) Until December 31, 2010, the state forests and areas subject to review under this 
126.16 	section are exempt from Minnesota Statutes, section 84.777, unless an individual forest or 
126.17 	area has been classified as limited or closed.
126.18 	(d) Notwithstanding the restrictions in paragraph (a), and Minnesota Statutes, 
126.19 	section 84.777, subdivision 1, all forest lands under the authority of the commissioner as 
126.20 	defined in Minnesota Statutes, section 89.001, subdivision 13, and lands managed by the 
126.21 	commissioner under Minnesota Statutes, section 282.011, that are north of U.S. Highway 
126.22 	2 shall maintain their present classification unless the commissioner reclassifies the lands 
126.23 	under Minnesota Rules, part 6100.1950. The commissioner shall provide for seasonal 
126.24 	trail closures when conditions warrant them. By December 31, 2008, the commissioner 
126.25 	shall complete the review and designate trails on forest lands north of Highway 2 as 
126.26 	provided in this section.

126.27 	Sec. 156. Laws 2003, chapter 128, article 1, section 169, is amended to read:
126.28 	Sec. 169. CONTINUOUS TRAIL DESIGNATION.
 126.29 	(a) The commissioner of natural resources shall locate, plan, design, map, construct, 
126.30 	designate, and sign a new trail for use by all-terrain vehicles and off-highway motorcycles 
126.31 	of not less than 70 continuous miles in length on any land owned by the state or in 
126.32 	cooperation with any county on land owned by that county or on a combination of any of 
126.33 	these lands. This new trail shall be ready for use by April 1, 2007 June 30, 2009.
126.34 	(b) All funding for this new trail shall come from the all-terrain vehicle dedicated 
126.35 	account and is appropriated each year as needed.
127.1 	(c) This new trail shall have at least two areas of access complete with appropriate 
127.2 	parking for vehicles and trailers and enough room for loading and unloading all-terrain 
127.3 	vehicles. Some existing trails, that are strictly all-terrain vehicle trails, and are not 
127.4 	inventoried forest roads, may be incorporated into the design of this new all-terrain vehicle 
127.5 	trail. This new trail may be of a continuous loop design and shall provide for spurs to other 
127.6 	all-terrain vehicle trails as long as those spurs do not count toward the 70 continuous miles 
127.7 	of this new all-terrain vehicle trail. Four rest areas shall be provided along the way.

127.8 	Sec. 157. Laws 2006, chapter 236, article 1, section 21, is amended to read:
127.9 	Sec. 21. EXCHANGE OF TAX-FORFEITED LAND; PRIVATE SALE; 
127.10 	ITASCA COUNTY.
 127.11 	(a) For the purpose of a land exchange for use in connection with a proposed 
127.12 	steel mill in Itasca County referenced in Laws 1999, chapter 240, article 1, section 8, 
127.13 	subdivision 3, title examination and approval of the land described in paragraph (b) 
127.14 	shall be undertaken as a condition of exchange of the land for class B land, and shall be 
127.15 	governed by Minnesota Statutes, section 94.344, subdivisions 9 and 10, and the provisions 
127.16 	of this section. Notwithstanding the evidence of title requirements in Minnesota Statutes, 
127.17 	section 94.344, subdivisions 9 and 10, the county attorney shall examine one or more title 
127.18 	reports or title insurance commitments prepared or underwritten by a title insurer licensed 
127.19 	to conduct title insurance business in this state, regardless of whether abstracts were 
127.20 	created or updated in the preparation of the title reports or commitments. The opinion of 
127.21 	the county attorney, and approval by the attorney general, shall be based on those title 
127.22 	reports or commitments.
127.23 	(b) The land subject to this section is located in Itasca County and is described as:
127.24 	(1) Sections 3, 4, 7, 10, 14, 15, 16, 17, 18, 20, 21, 22, 23, 26, 28, and 29, Township 
127.25 	56 North, Range 22 West;
127.26 	(2) Sections 3, 4, 9, 10, 13, and 14, Township 56 North, Range 23 West;
127.27 	(3) Section 30, Township 57 North, Range 22 West; and
127.28 	(4) Sections 25, 26, 34, 35, and 36, Township 57 North, Range 23 West.
127.29 	(c) Riparian land given in exchange by Itasca County for the purpose of the steel 
127.30 	mill referenced in paragraph (a), is exempt from the restrictions imposed by Minnesota 
127.31 	Statutes, section 94.342, subdivision 3.
127.32 	(d) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1, 
127.33 	and the public sale provisions of Minnesota Statutes, chapter 282, Itasca County may sell, 
127.34 	by private sale, any land received in exchange for the purpose of the steel mill referenced 
128.1 	in paragraph (a), under the remaining provisions of Minnesota Statutes, chapter 282. The 
128.2 	sale must be in a form approved by the attorney general.
128.3 	(e) Notwithstanding Minnesota Statutes, section 284.28, subdivision 8, or any other 
128.4 	law to the contrary, land acquired through an exchange under this section is exempt from 
128.5 	payment of three percent of the sales price required to be collected by the county auditor 
128.6 	at the time of sale for deposit in the state treasury.

128.7 	Sec. 158. RELIEF PAYMENTS FOR TIMBER SALE PERMITS.
 128.8 	(a) Notwithstanding Minnesota Statutes, section 90.161, 90.173, 90.211, or other law 
128.9 	to the contrary, the commissioner of natural resources shall provide payment to permittees 
128.10 	with eligible permits subject to the following limits and conditions:
128.11 	(1) permittees will receive a payment equal to the lesser of $2,250 or 60 percent of 
128.12 	the 15 percent down payment required under Minnesota Statutes, section 90.14, for each 
128.13 	eligible permit forfeited within 60 days following the effective date of this section; or
128.14 	(2) permittees will receive a payment equal to 60 percent of the 15 percent down 
128.15 	payment required under Minnesota Statutes, section 90.14, for each eligible permit the 
128.16 	permittee commits to cut and close by the earlier of June 30, 2010, or when the permit 
128.17 	expires. This commitment must be made within 60 days following the effective date of 
128.18 	this section. Payment must be returned to the state for each permit for which the permittee 
128.19 	fails to fulfill the commitment under this clause.
128.20 	(b) Payments under paragraph (a) shall be mailed to permittees by August 31, 2007. 
128.21 	(c) An "eligible permit" means a state timber permit:
128.22 	(1) that was issued on or after June 1, 2004, but before April 1, 2006; and
128.23 	(2) for which there has been no harvesting, road building, or other on-the-ground 
128.24 	actions taken.
128.25 	(d) Permittees in default or trespass status are not eligible for payments under this 
128.26 	section. A permittee may forfeit any number of complete permits, not to exceed 7,500 
128.27 	cords in total. Partial permits may not be forfeited to meet the 7,500-cord maximum.
128.28 	(e) The commissioner shall reoffer the forfeited sales no later than January 31, 2008.

128.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

128.30 	Sec. 159. FOREST PROTECTION PLAN.
 128.31 		Subdivision 1.Task force plan. (a) The Forest Resources Council shall create a task 
128.32 	force to develop a plan to prepare the state for early detection, appropriate response, and 
128.33 	educating the public regarding invasive pests that threaten the tree cover of Minnesota. The 
129.1 	task force also may give advice on how to best promote forest diversity and the planting of 
129.2 	trees to address environmental challenges with the state. The plan must address:
129.3 	(1) current efforts to address forest pests, what geographic areas and property types 
129.4 	have regular and active monitoring of forest pests, and gaps in the adequacy of the current 
129.5 	oversight and detection system;
129.6 	(2) how the state may establish a flexible, yet comprehensive, system of tree 
129.7 	monitoring so that trees in all areas of Minnesota will be covered by active early pest 
129.8 	detection efforts. In analyzing this, the task force shall consider possible roles for certified 
129.9 	tree inspectors, volunteers, and state and local government;
129.10 	(3) current storm damage response and how that might be improved for forest health 
129.11 	and to minimize vulnerability to pest infection;
129.12 	(4) the adequacy of the current response plan, the clarity of state and local roles and 
129.13 	responsibilities, emergency communication plans, and the availability of needed funding 
129.14 	for pest outbreak response and how to scale it up should a major outbreak be detected;
129.15 	(5) recommendations for clear delineation of state and local roles in notifying 
129.16 	property owners and enforcing remediation actions;
129.17 	(6) the best approach to broad public education on the threats of new invasive tree 
129.18 	pests, the expected response to an outbreak, the value of trees to our environment, and the 
129.19 	promotion of a more diversified tree cover statewide; and
129.20 	(7) an assessment of funding needs and options for the above activities and possible 
129.21 	funding approaches to promote the planting of a more diverse tree cover, along with 
129.22 	assisting in the costs of tree removal and replacement for public entities and property 
129.23 	owners.
129.24 	(b) A report and recommendations to the legislative committees with jurisdiction 
129.25 	over natural resources and to the Legislative-Citizen Commission on Minnesota Resources 
129.26 	shall be due on December 15, 2007.
129.27 		Subd. 2.Task force creation. The chair of the Forest Resources Council and the 
129.28 	commissioners of agriculture and natural resources shall jointly appoint the members 
129.29 	of the task force, which shall include up to 15 members with representatives of the 
129.30 	University of Minnesota; city, township, and county associations; commercial timber 
129.31 	and forest industries of varying size; nursery and landscape architecture; arborists and 
129.32 	certified tree inspectors; nonprofit organizations engaged in tree advocacy, planting, and 
129.33 	education; master gardeners; and the Minnesota Shade Tree Advisory Council and a tribal 
129.34 	representative recommended by the Indian Affairs Council.
129.35 	Representatives of the Departments of Agriculture and Natural Resources shall serve 
129.36 	as ex-officio members and assist the task force in its work.

130.1 	Sec. 160. ENDOCRINE DISRUPTOR REPORT.
 130.2 	(a) The commissioner of the Pollution Control Agency, in consultation with the 
130.3 	commissioner of agriculture, the commissioner of health, the commissioner of natural 
130.4 	resources, the University of Minnesota, and the United States Environmental Protection 
130.5 	Agency, shall prepare a report on strategies to address endocrine disruptors in waters of 
130.6 	the state. The report shall include:
130.7 	(1) a review of the current literature of known endocrine-disrupting compounds to 
130.8 	determine which ones are most likely to be of significance to humans, fish, and wildlife 
130.9 	in Minnesota;
130.10 	(2) a review of scientific studies to determine whether these compounds have the 
130.11 	potential to account for known effects on humans, fish, and wildlife in Minnesota;
130.12 	(3) a review of the comparative risk posed by endocrine-disrupting compounds to 
130.13 	the long-term viability of populations of fish and wildlife; and
130.14 	(4) an evaluation of the practicability and the cost of prevention and remediation 
130.15 	strategies for any endocrine-disrupting compounds found in clauses (1) and (2), as well as 
130.16 	other potential endocrine disruptors.
130.17 	(b) By January 15, 2008, the commissioner shall submit the report to the house of 
130.18 	representatives and senate committees and divisions with jurisdiction over environment 
130.19 	and natural resources policy and finance.

130.20 	Sec. 161. EASEMENT REPORT REQUIRED.
 130.21 	By January 1, 2008, the commissioner of natural resources must report to the 
130.22 	house and senate committees with jurisdiction over environment and natural resources 
130.23 	finance with proposed minimum legal and conservation standards that could be applied 
130.24 	to conservation easements acquired with public money.

130.25 	Sec. 162. TAX-FORFEITED LANDS LEASE; ITASCA COUNTY.
 130.26 	Notwithstanding Minnesota Statutes, section 282.04, or other law to the contrary, 
130.27 	the Itasca County auditor may lease tax-forfeited land to a proposed steel mill in Itasca 
130.28 	County for a period of 20 years, for use as a tailings basin and buffer area. A lease entered 
130.29 	under this section is renewable.

130.30 	Sec. 163. WILD RICE STUDY.
 130.31 	By February 15, 2008, the commissioner of natural resources must prepare a study 
130.32 	for natural wild rice that includes:
130.33 	(1) the current location and estimated acreage and area of natural stands;
131.1 	(2) potential threats to natural stands, including, but not limited to, development 
131.2 	pressure, water levels, pollution, invasive species, and genetically engineered strains; and
131.3 	(3) recommendations to the house and senate committees with jurisdiction over 
131.4 	natural resources on protecting and increasing natural wild rice stands in the state.
131.5 	In developing the study, the commissioner must contact and ask for comments 
131.6 	from the state's wild rice industry, the commissioner of agriculture, local officials with 
131.7 	significant areas of wild rice within their jurisdictions, tribal leaders within affected 
131.8 	federally recognized tribes, and interested citizens.

131.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

131.10 	Sec. 164. CONSTRUCTION.
 131.11 	Nothing in sections 139, 140, 141, and 162 affects, alters, or modifies the authorities, 
131.12 	responsibilities, obligations, or powers of the state or any political subdivision thereof or 
131.13 	any federally recognized tribe.

131.14 	Sec. 165. SEPTIC BEST PRACTICES ASSISTANCE.
 131.15 	The commissioner of the Pollution Control Agency shall establish a database of 
131.16 	best practices regarding the installation, management, and maintenance of individual 
131.17 	sewage treatment systems. The database must be made available to any interested public 
131.18 	or private party.

131.19 	Sec. 166. RULEMAKING.
 131.20 	Within 90 days of the effective date of this section, the Board of Water and Soil 
131.21 	Resources shall adopt rules that amend Minnesota Rules, chapter 8420, to incorporate 
131.22 	statute changes and to address the related wetland exemption provisions in Minnesota 
131.23 	Rules, parts 8420.0115 to 8420.0210, and the wetland replacement and banking provisions 
131.24 	in Minnesota Rules, parts 8420.0500 to 8420.0760. These rules are exempt from the 
131.25 	rulemaking provisions of Minnesota Statutes, chapter 14, except that Minnesota Statutes, 
131.26 	section 14.386, applies and the proposed rules must be submitted to the senate and house 
131.27 	committees having jurisdiction over environment and natural resources at least 30 days 
131.28 	prior to being published in the State Register. The amended rules are effective for two 
131.29 	years from the date of publication in the State Register unless they are superseded by 
131.30 	permanent rules.

131.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

132.1 	Sec. 167. GREENLEAF LAKE STATE RECREATION AREA.
 132.2 		Subdivision 1. [85.013] [Subd. 11b.] Greenleaf Lake State Recreation Area.
 132.3 	In addition to the lands designated under Laws 2003, First Special Session chapter 13, 
132.4 	section 6, as amended by Laws 2004, chapter 262, article 2, section 10, the following lands 
132.5 	are added to the Greenleaf Lake State Recreation Area:
132.6 	(1) the West 1104.98 feet of Government Lot 4, Section 21, Township 118 North, Range 
132.7 	30 West, Meeker County, Minnesota; and
132.8 	(2) that part of Government Lot 7 of Section 20, Township 118, Range 30, which lies 
132.9 	south of the following described line and its extensions: said line commencing at the 
132.10 	southwest corner of said Section 20; thence on an assumed bearing of North 08 degrees 
132.11 	22 minutes 44 seconds West, along the west line of said section, a distance of 1350.00 
132.12 	feet to the point of beginning of the line to be described; thence North 88 degrees 28 
132.13 	minutes 35 seconds East, a distance of 699 feet to the shoreline of Greenleaf Lake and 
132.14 	said line terminating thereat; and Government Lot 8 of said section except the following 
132.15 	described tract: said tract being that part of said Government Lot 8 lying east of the 
132.16 	following described line: said line commencing at the southwest corner of said section; 
132.17 	thence easterly, along the south line of said section, a distance of 734.60 feet to the point 
132.18 	of beginning of the line to be described; thence north at a right angle, a distance of 100 
132.19 	feet and said line terminating thereat.
132.20 		Subd. 2.Management. The commissioner of natural resources, in consultation with 
132.21 	local elected officials and citizens of Meeker County and other interested stakeholders, 
132.22 	shall develop a comprehensive management plan that provides for opportunities for 
132.23 	outdoor recreation, as defined under Minnesota Statutes, section 86A.03, subdivision 3, in 
132.24 	Greenleaf Lake State Recreation Area. The completed management plan shall serve as the 
132.25 	master plan for purposes of Minnesota Statutes, section 86A.09.

132.26 	Sec. 168. VERMILLION HIGHLANDS WILDLIFE MANAGEMENT AREA.
 132.27 	(a) The following area is established and designated as the Vermillion Highlands 
132.28 	Wildlife Management Area, subject to the special permitted uses authorized in this section:
132.29 	The approximately 2,840 acres owned by the University of Minnesota lying within 
132.30 	the area legally described as approximately the southerly 3/4 of the Southwest 1/4 of 
132.31 	Section 1, the Southeast 1/4 of Section 2, the East 1/2 of Section 10, Section 11, the 
132.32 	West 1/2 of Section 12, Section 13, and Section 14, all in Township 114 North, Range 
132.33 	19 West, Dakota County.
132.34 	(b) Notwithstanding Minnesota Statutes, section 86A.05, subdivision 8, paragraph 
132.35 	(c), permitted uses in the Vermillion Highlands Wildlife Management Area include:
133.1 	(1) education, outreach, and agriculture with the intent to eventually phase out 
133.2 	agriculture leases and plant and restore native prairie;
133.3 	(2) research by the University of Minnesota or other permitted researchers;
133.4 	(3) hiking, hunting, fishing, trapping, and other compatible wildlife-related 
133.5 	recreation of a natural outdoors experience, without constructing new hard surface trails 
133.6 	or roads, and supporting management and improvements;
133.7 	(4) designated trails for hiking, horseback riding, biking, and cross-country skiing 
133.8 	and necessary trailhead support with minimal impact on the permitted uses in clause (3);
133.9 	(5) shooting sports facilities for sporting clays, skeet,  trapshooting, and rifle and 
133.10 	pistol shooting, including sanctioned events and training for responsible handling and 
133.11 	use of firearms;
133.12 	(6) grant-in-aid snowmobile trails; and
133.13 	(7) leases for small-scale farms to market vegetable farming.
133.14 	(c) With the concurrence of representatives of the University of Minnesota and 
133.15 	Dakota County, the commissioner of natural resources may, by posting or rule, restrict the 
133.16 	permitted uses as follows:
133.17 	(1) temporarily close areas or trails, by posting at the access points, to facilitate 
133.18 	hunting. When temporarily closing trails under this clause, the commissioner shall avoid 
133.19 	closing all trail loops simultaneously whenever practical; or
133.20 	(2) limit other permitted uses to accommodate hunting and trapping after providing 
133.21 	advance public notice. Research conducted by the university may not be limited unless 
133.22 	mutually agreed by the commissioner and the University of Minnesota.
133.23 	(d) Road maintenance within the wildlife management area shall be minimized, with 
133.24 	the intent to abandon interior roads when no longer needed for traditional agriculture 
133.25 	purposes.
133.26 	(e) Money collected on leases from lands within the wildlife management area 
133.27 	must be kept in a separate account and spent within the wildlife management area under 
133.28 	direction of the representatives listed in paragraph (c). $200,000 of this money may be 
133.29 	transferred to the commissioner of natural resources for a master planning process and 
133.30 	resource inventory of the land identified in Minnesota Statutes, section 137.50, subdivision 
133.31 	6, in order to provide needed prairie and wetland restoration. The commissioner must work 
133.32 	with affected officials from the University of Minnesota and Dakota County to complete 
133.33 	these requirements and inform landowners and lessees about the planning process.
133.34 	(f) Notwithstanding Minnesota Statutes, sections 97A.061 and 477A.11, the state 
133.35 	of Minnesota shall not provide payments in lieu of taxes for the lands described in 
133.36 	paragraph (a).

134.1 	Sec. 169. INFORMATION SHARING.
 134.2 	On or before August 1, 2007, the commissioner of health, the Pollution Control 
134.3 	Agency, and the University of Minnesota are requested to jointly develop and sign 
134.4 	a memorandum of understanding declaring their intent to share new and existing 
134.5 	environmental hazard, exposure, and health outcome data, within applicable data privacy 
134.6 	laws, and to cooperate and communicate effectively to ensure sufficient clarity and 
134.7 	understanding of the data by divisions and offices within both departments. The signed 
134.8 	memorandum of understanding shall be reported to the chairs and ranking members of 
134.9 	the senate and house of representatives committees having jurisdiction over judiciary, 
134.10 	environment, and health and human services.

134.11 	Sec. 170.  REPEALER.
 134.12 	(a) Minnesota Statutes 2006, sections 18G.16; and 89.51, subdivision 8, are repealed.
134.13 	(b) Minnesota Statutes 2006, section 103G.2241, subdivision 8, is repealed the 
134.14 	day following final enactment.
134.15 	(c) Minnesota Statutes 2006, section 85.012, subdivision 24b, is repealed.

134.16 	ARTICLE 2
134.17 	ENERGY

134.18	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
134.19 	The amounts shown in this section summarize direct appropriations, by fund, made 
134.20 	in this article.

134.21			2008
		2009
		Total
	
134.22	General
	$
	37,870,000
	$
	29,459,000
	$
	67,329,000
	
134.23	Petroleum Tank Cleanup
		1,084,000
		1,084,000
		2,168,000
	
134.24	Workers' Compensation
		835,000
		835,000
		1,670,000
	
134.25	Special Revenue
		7,725,000
		7,725,000
		15,450,000
	
134.26	Total
	$
	47,514,000
	$
	39,103,000
	$
	86,617,000

134.27	Sec. 2. ENERGY FINANCE APPROPRIATIONS.
 	
134.28 	The sums shown in the columns marked "Appropriations" are appropriated to the 
134.29 	agencies and for the purposes specified in this article. The appropriations are from the 
134.30 	general fund, or another named fund, and are available for the fiscal years indicated 
134.31 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
134.32 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
134.33 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
135.1 	year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 
135.2 	year ending June 30, 2007, are effective the day following final enactment.

135.3				APPROPRIATIONS
	
135.4				Available for the Year
	
135.5				Ending June 30
	
135.6					2008
		2009

135.7	Sec. 3. DEPARTMENT OF COMMERCE.

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

135.9	Appropriations by Fund
	
135.10		2008
	2009
	
135.11	General
	32,523,000
	24,026,000
	
135.12	Petroleum Cleanup
	1,084,000
	1,084,000
	
135.13
135.14	Workers' 
Compensation
	835,000
	835,000
	
135.15	Special Revenue
	7,725,000
	7,725,000
	
135.16 	The amounts that may be spent for each 
135.17 	purpose are specified in the following 
135.18 	subdivisions.

135.19	Subd. 2.Financial Examinations
 		6,489,000
		6,637,000

135.20
135.21	Subd. 3.Petroleum Tank Release Cleanup 
Board
 		1,084,000
		1,084,000
	
135.22 	This appropriation is from the petroleum 
135.23 	tank release cleanup fund. 

135.24	Subd. 4.Administrative Services
 		4,508,000
		4,604,000

135.25	Subd. 5.Market Assurance
 		6,950,000
		7,097,000

135.26	Appropriations by Fund
	
135.27	General
	6,115,000
	6,262,000
	
135.28
135.29	Workers' 
Compensation
	835,000
	835,000

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

135.31	Appropriations by Fund
	
135.32	General
	15,411,000
	6,523,000
	
135.33	Special Revenue
	7,625,000
	7,625,000
	
135.34 	The utility subject to Minnesota Statutes, 
135.35 	section 116C.779, shall transfer $7,625,000 
136.1 	in fiscal year 2008 and $7,625,000 in fiscal 
136.2 	year 2009 to the Department of Commerce 
136.3 	on a schedule to be determined by the 
136.4 	commissioner of commerce. The funds must 
136.5 	be deposited in the special revenue fund 
136.6 	and are appropriated to the commissioner 
136.7 	for grants to promote renewable energy 
136.8 	projects and community energy outreach and 
136.9 	assistance. Of the amounts identified:
136.10 	(1) $500,000 each year for capital grants for 
136.11 	on-farm biogas recovery facilities; eligible 
136.12 	projects will be selected in coordination 
136.13 	with the Department of Agriculture and the 
136.14 	Pollution Control Agency;
136.15 	(2) $500,000 each year to provide financial 
136.16 	rebates to new solar electricity projects;
136.17 	(3) $625,000 each year for continued funding 
136.18 	of community energy technical assistance 
136.19 	and outreach on renewable energy and 
136.20 	energy efficiency, as described in section 25. 
136.21 	Of this amount, $125,000 is for technical 
136.22 	assistance in the metropolitan area;
136.23 	(4) $1,000,000 each year is for technical 
136.24 	analysis and demonstration funding for 
136.25 	automotive technology projects, with a 
136.26 	special focus on plug-in hybrid electric 
136.27 	vehicles and to study environmental-friendly 
136.28 	manufacturing and assembly processes to 
136.29 	identify ones that could employ workers 
136.30 	formerly employed at the St. Paul Ford 
136.31 	manufacturing plant and other large 
136.32 	manufacturing facilities in Minnesota;
136.33 	(5) $750,000 in the first year is for the 
136.34 	purpose of preparing the hydrogen road map 
137.1 	and making grants under Minnesota Statutes, 
137.2 	section 216B.813;
137.3 	(6) $2,000,000 in the first year is for deposit 
137.4 	with the rural wind energy development 
137.5 	revolving loan fund under Minnesota 
137.6 	Statutes, section 216C.39;
137.7 	(7) $2,250,000 the first year and $2,000,000 
137.8 	the second year are to provide competitive, 
137.9 	cost-share grants to fund renewable energy 
137.10 	research in Minnesota. These grants must be 
137.11 	awarded by a three-member panel made up 
137.12 	of the commissioners of commerce, pollution 
137.13 	control, and agriculture, or their designees. 
137.14 	Grant applications must be ranked and grants 
137.15 	issued according to how well the applications 
137.16 	meet state energy policy research goals 
137.17 	established by the commissioners, the quality 
137.18 	and experience of the research teams, the 
137.19 	cross-interdisciplinary and cross-institutional 
137.20 	nature of the research teams, and the ability 
137.21 	of the research team to leverage nonstate 
137.22 	funds; and
137.23 	(8) $3,000,000 the second year is for a grant 
137.24 	to the Board of Regents of the University of 
137.25 	Minnesota for the Initiative for Renewable 
137.26 	Energy and the Environment. The grant 
137.27 	is for the purposes set forth in Minnesota 
137.28 	Statutes, section 216B.241, subdivision 6. 
137.29 	The appropriation is available until spent. 
137.30 	The budget for this grant to the Board of 
137.31 	Regents of the University of Minnesota for 
137.32 	the Initiative for Renewable Energy and the 
137.33 	Environment is $5,000,000 each year in the 
137.34 	2010-2011 fiscal biennium.
138.1 	As a condition of this grant, beginning in 
138.2 	the 2010-2011 biennium, the Initiative for 
138.3 	Renewable Energy and the Environment 
138.4 	must set aside at least 15 percent of the 
138.5 	funds received annually under the grant for 
138.6 	qualified projects conducted at a rural campus 
138.7 	or experiment station. Any amount of the 
138.8 	set aside funds that has not been awarded to 
138.9 	a rural campus or experiment station at the 
138.10 	end of the fiscal year must revert back to the 
138.11 	initiative for its exclusive use.
138.12 	$1,500,000 the first year and $1,500,000 the 
138.13 	second year are for E85 cost-share grants. 
138.14 	The commissioner may reimburse owners 
138.15 	of gasoline service stations for up to 75 
138.16 	percent of the total cost of installing an E85 
138.17 	pump, including the tank and any related 
138.18 	components, up to a maximum of $15,000 
138.19 	per E85 pump. Notwithstanding Minnesota 
138.20 	Statutes, section 16A.28, this appropriation is 
138.21 	available until expended. Up to ten percent of 
138.22 	the funds may be used for cost-share grants to 
138.23 	convert or install underground tanks at retail 
138.24 	gasoline service stations storing biodiesel 
138.25 	fuel that is at least 99.9 percent biodiesel 
138.26 	fuel by volume for on-site blending and for 
138.27 	dispensing systems at retail gasoline service 
138.28 	stations that dispense biodiesel fuel blends of 
138.29 	at least ten percent biodiesel fuel by volume. 
138.30 	In awarding grants, the commissioner of 
138.31 	commerce must consult with the Minnesota 
138.32 	Soybean Growers Association and may 
138.33 	consult with other organizations deemed 
138.34 	appropriate. This is a onetime appropriation.
138.35 	$4,500,000 the first year is for a onetime 
138.36 	grant to the St. Paul Port Authority in part 
139.1 	for a study related to a steam and electrical 
139.2 	energy facility to supply energy to a customer 
139.3 	using steam in a paper recycling operation.
139.4 	The port authority shall convene and 
139.5 	regularly involve a citizen advisory 
139.6 	committee composed of members 
139.7 	recommended by St. Paul district councils 
139.8 	11, 12, 13, and 14 and other members as 
139.9 	appropriate to advise on the scope of the 
139.10 	study. The citizen advisory committee 
139.11 	must meet regularly throughout the course 
139.12 	of the study and the development of 
139.13 	recommendations. The citizen advisory 
139.14 	committee shall have the right to include 
139.15 	its separate recommendations as part of the 
139.16 	port authority recommendations submitted at 
139.17 	the public meeting and to the St. Paul City 
139.18 	Council.
139.19 	The study shall:
139.20 	(1) assess the economic and technical 
139.21 	feasibility of various fuel types to power the 
139.22 	plant;
139.23 	(2) provide a full description and analysis of 
139.24 	each fuel type and their respective economic 
139.25 	and noneconomic impacts;
139.26 	(3) provide a full description and analysis 
139.27 	of each fuel type and their respective 
139.28 	environmental emissions, including carbon 
139.29 	dioxide, and the cost of controlling those 
139.30 	emissions that affect human health;
139.31 	(4) describe public subsidies related to the 
139.32 	production and use of each fuel type;
139.33 	(5) describe potential energy efficiency 
139.34 	improvement that can be made to the paper 
140.1 	recycling operation and subsidies available 
140.2 	for each improvement; and
140.3 	(6) evaluate additional uses for the steam and 
140.4 	electricity produced at the facility and the 
140.5 	cost of infrastructure needed to implement 
140.6 	the additional uses.
140.7 	In addition, the grant may be used 
140.8 	for environmental review, permitting, 
140.9 	preliminary engineering, and development of 
140.10 	total project cost estimates, including project 
140.11 	design and engineering, other preliminary 
140.12 	work, and a preliminary financing plan for 
140.13 	the steam and electricity producing facility. 
140.14 	The St. Paul Port Authority shall present 
140.15 	the findings of its analysis and its preferred 
140.16 	alternative for an eligible energy technology 
140.17 	fuel mix in at least two public meetings 
140.18 	that must be held in the area encompassing 
140.19 	districts 11, 12, 13, and 14 in the city of 
140.20 	St. Paul. "Eligible energy technology" has 
140.21 	the meaning given in Minnesota Statutes, 
140.22 	section 216B.1691, subdivision 1, except 
140.23 	that it does not include mixed municipal 
140.24 	solid waste as an eligible energy technology. 
140.25 	The recommendation of the St. Paul Port 
140.26 	Authority concerning its preferred alternative 
140.27 	fuel mix must be based on the alternative 
140.28 	that has the least environmental impact 
140.29 	consistent with the economic viability 
140.30 	and technical feasibility of the facility. 
140.31 	Testimony shall be taken at the meetings 
140.32 	from citizens who live in the affected 
140.33 	communities. Resolutions concerning the 
140.34 	facility from district councils 11, 12, 13, 
140.35 	and 14 must be solicited by the city council. 
140.36 	Construction of the facility may not be 
141.1 	commenced unless and until the St. Paul City 
141.2 	Council has adopted a resolution approving 
141.3 	the construction after consideration of the 
141.4 	findings of the port authority, resolutions 
141.5 	from the district councils, and other public 
141.6 	input. The appropriation does not cancel and 
141.7 	is available until expended. Of this amount, 
141.8 	$500,000 is transferred to the Department 
141.9 	of Natural Resources for the Ecological 
141.10 	Services Division to prepare, authorize, and 
141.11 	implement habitat restoration plans on public 
141.12 	or private properties to fulfill ecological 
141.13 	principles of restoration ecology, while 
141.14 	providing roadside access to the byproduct 
141.15 	of the management actions at no cost to the 
141.16 	operator of a biomass-fueled cogeneration 
141.17 	facility located in St. Paul. The division 
141.18 	may provide grants or otherwise transfer 
141.19 	some or all of these funds to other public or 
141.20 	private entities to accomplish these purposes. 
141.21 	If a higher value nonbiomass market is 
141.22 	available for some of the byproduct of this 
141.23 	management, the division is authorized to 
141.24 	sell the material to that market, provided 
141.25 	that all of the proceeds are spent for the 
141.26 	further purposes of this appropriation. 
141.27 	The nonbiomass market sales of material 
141.28 	from this management cannot exceed 20 
141.29 	percent by weight of the total byproducts 
141.30 	produced by all approved activities under 
141.31 	this appropriation. The restoration activities 
141.32 	shall take place on land located within 75 
141.33 	miles by road of the city of St. Paul. The 
141.34 	division shall consult with the operator of the 
141.35 	biomass facility and other appropriate parties 
141.36 	regarding planned projects to be funded with 
142.1 	this appropriation. The division shall report 
142.2 	annually to the legislative policy and finance 
142.3 	committees for natural resources and energy 
142.4 	regarding the expenditures and results of the 
142.5 	program. This appropriation does not cancel 
142.6 	but is available until spent.
142.7 	$150,000 the first year is appropriated to the 
142.8 	commissioner of commerce for grants for 
142.9 	demonstration projects of electric vehicles 
142.10 	with advanced transmission technologies 
142.11 	incorporating, if feasible, batteries, 
142.12 	converters, and other components developed 
142.13 	in Minnesota. Funds may be expended 
142.14 	under the grants only if grantees enter into 
142.15 	agreements specifying that commercial 
142.16 	production of these vehicles and components 
142.17 	will, to the extent possible, take place in 
142.18 	Minnesota.
142.19 	(a) $1,000,000 each year is to the Center for 
142.20 	Rural Policy and Development at Minnesota 
142.21 	State University at Mankato to make a grant 
142.22 	to a nonprofit organization with experience 
142.23 	dealing with energy and community wind 
142.24 	issues to design and implement a rural wind 
142.25 	energy development assistance program. 
142.26 	This is a onetime only appropriation. The 
142.27 	program must be designed to maximize rural 
142.28 	economic development and stabilize rural 
142.29 	community institutions, including hospitals 
142.30 	and schools, by increasing the income of 
142.31 	local residents and increasing local tax 
142.32 	revenues. The grant may be disbursed in 
142.33 	two installments. The program must provide 
142.34 	assistance to rural entities seeking to develop 
142.35 	wind energy electric generation projects 
142.36 	and to sell the energy from the projects. 
143.1 	Among other strategies, the program may 
143.2 	consider combining rural entities and others 
143.3 	into groups with the size and market power 
143.4 	necessary for planning and developing 
143.5 	significant rural wind energy projects.
143.6 	(b) The program must provide assistance by, 
143.7 	among other things:
143.8 	(1) providing legal, engineering, and 
143.9 	financial services;
143.10 	(2) identifying target communities with 
143.11 	favorable wind resources, community 
143.12 	interest, and local political support;
143.13 	(3) providing assistance to reserve, obtain, 
143.14 	and assure the maintenance over time of 
143.15 	wind turbines;
143.16 	(4) creating market opportunities for utilities 
143.17 	to meet their renewable energy obligations 
143.18 	through purchases of rural community wind;
143.19 	(5) assisting in the negotiation of fair power 
143.20 	purchase agreements;
143.21 	(6) facilitating transmission interconnection 
143.22 	and delivery of energy from rural and 
143.23 	community wind projects; and 
143.24 	(7) lowering the market risk facing potential 
143.25 	wind investors by supporting local wind 
143.26 	development from start to finish.
143.27 	The grantee must demonstrate an ability 
143.28 	to sustain program functions with ongoing 
143.29 	revenue from sources other than state funding 
143.30 	and shall provide a 35 percent grant match 
143.31 	in the first year. The grant must be awarded 
143.32 	on a competitive basis. The center must use 
143.33 	best practices regarding grant management 
143.34 	functions, including selection and monitoring 
144.1 	of the grantee, compliance review, and 
144.2 	financial oversight. Grant management fees 
144.3 	are limited to 2.5 percent of the grant.
144.4 	(c) The commissioner of commerce shall 
144.5 	monitor the activities of the rural wind 
144.6 	energy development assistance program 
144.7 	created under paragraphs (a) to (c). By 
144.8 	November 1, 2008, the commissioner shall 
144.9 	submit an evaluation of the program to 
144.10 	the chairs of the house of representatives 
144.11 	and senate committees with jurisdiction 
144.12 	over energy policy and finance, including 
144.13 	recommendations for legislative or 
144.14 	administrative action to better achieve the 
144.15 	program goals described in paragraph (a).
144.16 	$1,000,000 in fiscal year 2008 is for 
144.17 	distribution to eligible households for home 
144.18 	heating assistance during the 2007 calendar 
144.19 	year. The commissioner must distribute 
144.20 	funds to eligible households according to 
144.21 	the formula developed for the distribution 
144.22 	of the federal Low-Income Home Energy 
144.23 	Assistance Program for fiscal year 2008. 
144.24 	This appropriation is available until spent.
144.25 	$3,250,000 the first year is for the renewable 
144.26 	hydrogen initiative in Minnesota Statutes, 
144.27 	section 216B.813, to fund the competitive 
144.28 	grant program included in that section. The 
144.29 	commissioner may use up to two percent of 
144.30 	the competitive grant program appropriation 
144.31 	for grant administration and to develop and 
144.32 	implement the renewable hydrogen road 
144.33 	map. This is a onetime appropriation and is 
144.34 	available until expended.
145.1 	$50,000 the first year is a onetime 
145.2 	appropriation for a comprehensive technical, 
145.3 	economic, and environmental analysis of the 
145.4 	benefits to be derived from greater use in this 
145.5 	state of geothermal heat pump systems for 
145.6 	heating and cooling air and heating water. 
145.7 	The analysis must:
145.8 	(1) estimate the extent of geothermal heat 
145.9 	pump systems currently installed in this state 
145.10 	in residential, commercial, and institutional 
145.11 	buildings;
145.12 	(2) estimate energy and economic savings of 
145.13 	geothermal heat pump systems in comparison 
145.14 	with fossil fuel-based heating and cooling 
145.15 	systems, including electricity use, on a 
145.16 	capital cost and life-cycle cost basis, for both 
145.17 	newly constructed and retrofitted residential, 
145.18 	commercial, and institutional buildings;
145.19 	(3) compare the emission of pollutants and 
145.20 	greenhouse gases from geothermal heat 
145.21 	pump systems and fossil fuel-based heating 
145.22 	and cooling systems;
145.23 	(4) identify financial assistance available 
145.24 	from state and federal sources and Minnesota 
145.25 	utilities to defray the costs of installing 
145.26 	geothermal heat pump systems;
145.27 	(5) identify Minnesota firms currently 
145.28 	manufacturing or installing the physical 
145.29 	components of geothermal heat pump 
145.30 	systems and estimate the economic 
145.31 	development potential in this state if demand 
145.32 	for such systems increases significantly;
145.33 	(6) identify the barriers to more widespread 
145.34 	adoption of geothermal heat pump systems in 
146.1 	this state and suggest strategies to overcome 
146.2 	those barriers; and
146.3 	(7) make recommendations for legislative 
146.4 	action.
146.5 	Not later than March 15, 2008, the 
146.6 	commissioner shall submit the results of the 
146.7 	analysis in a report to the chairs of the senate 
146.8 	and house of representatives committees 
146.9 	with primary jurisdiction over energy policy.
146.10 	$45,000 the first year is a onetime 
146.11 	appropriation for a grant to Linden Hills 
146.12 	Power and Light for preliminary engineering 
146.13 	design work and other technical and legal 
146.14 	services required for a community digester 
146.15 	and neighborhood district heating and 
146.16 	cooling system demonstration project in the 
146.17 	Linden Hills neighborhood of Minneapolis. 
146.18 	Funds may be expended upon a determination 
146.19 	by the commissioner of commerce that the 
146.20 	project is technically and economically 
146.21 	feasible. A portion of the appropriation 
146.22 	may be used to expand the scope of the 
146.23 	project feasibility study to include portions 
146.24 	of adjacent communities including St. Louis 
146.25 	Park and Edina.

146.26
146.27	Subd. 7.Telecommunications Access 
Minnesota
 		100,000
		100,000
	
146.28 	$100,000 the first year and $100,000 
146.29 	the second year are for transfer to the 
146.30 	commissioner of human services to 
146.31 	supplement the ongoing operational expenses 
146.32 	of the Minnesota Commission Serving 
146.33 	Deaf and Hard-of-Hearing People. This 
146.34 	appropriation is from the telecommunication 
147.1 	access Minnesota fund, and is added to the 
147.2 	commission's base.

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

147.4	Sec. 5. NEXTGEN ENERGY BOARD
 					
147.5 	By October 1 of 2007 and 2008, an entity 
147.6 	receiving renewable development funds to 
147.7 	conduct energy research under this article 
147.8 	must present a research plan outlining the 
147.9 	activities to be conducted with those funds, 
147.10 	and any results from research completed with 
147.11 	those funds during the previous year, to the 
147.12 	NextGen Energy Board established under 
147.13 	Minnesota Statutes, section 41A.05, for its 
147.14 	review and comment.

147.15 	Sec. 6. [16C.141] EMPLOYEE SUGGESTIONS; ENERGY SAVINGS 
147.16 	INCENTIVE PROGRAM.
147.17 		Subdivision 1.Creation of program. The commissioner of administration must 
147.18 	implement a program using best practices and develop policies under which state 
147.19 	employees may receive cash awards for making suggestions that result in documented 
147.20 	cost savings to state agencies from reduced energy usage in state-owned buildings. The 
147.21 	program must be structured to provide state employees an opportunity to receive a cash 
147.22 	award for suggestions that are implemented and result in documented cost savings to state 
147.23 	agencies from reduced energy use in state-owned buildings. The program must also 
147.24 	include methods to document submissions of suggestions and energy and cost savings 
147.25 	resulting from the implementation of employee suggestions.
147.26 		Subd. 2.Funding. To the extent necessary to fund the program under this section, 
147.27 	the commissioner of administration, with approval of the commissioner of finance, may 
147.28 	transfer a portion of the documented cost savings resulting from a suggestion under this 
147.29 	section from the general services revolving fund to an energy savings reward account. 
147.30 	Money in the energy savings reward account is appropriated to the commissioner for 
147.31 	purposes of making cash rewards and paying the commissioner's incentive program 
147.32 	developments costs and administrative expenses under this section.
148.1 		Subd. 3.Report to legislature. The commissioner of administration shall report to 
148.2 	the chairs of the senate and house of representatives committees with jurisdiction over 
148.3 	energy policy by January 1, 2008, on the development of the incentive program, and 
148.4 	by January 15 each year thereafter on the implementation of this section, including the 
148.5 	ideas submitted and energy savings realized.
148.6 		Subd. 4.Minnesota State Colleges and Universities. This section does not apply to 
148.7 	the Minnesota State Colleges and Universities, except to the extent the Board of Trustees 
148.8 	of the Minnesota State Colleges and Universities provides that the section does apply.
148.9 		Subd. 5.Repeal. This section is repealed July 1, 2009.

148.10 	Sec. 7. Minnesota Statutes 2006, section 116C.775, is amended to read:
148.11 	116C.775 SHIPMENT PRIORITIES; PRAIRIE ISLAND NUCLEAR PLANTS.
148.12 	If a storage or disposal site becomes available outside of the state to accept 
148.13 	high-level nuclear waste stored at Prairie Island or Monticello, the waste contained in dry 
148.14 	casks shall be shipped to that site before the shipment of any waste from the spent nuclear 
148.15 	fuel storage pool. Once waste is shipped that was contained in a cask, the cask must be 
148.16 	decommissioned and not used for further storage.

148.17 	Sec. 8. Minnesota Statutes 2006, section 116C.777, is amended to read:
148.18 	116C.777 SITE.
148.19 	The spent fuel contents of dry casks located on Prairie Island must be moved 
148.20 	immediately upon the availability of another site for storage of the spent fuel that is not 
148.21 	located on Prairie Island or at Monticello.

148.22 	Sec. 9. Minnesota Statutes 2006, section 116C.779, subdivision 1, is amended to read:
148.23 		Subdivision 1.Renewable development account. (a) The public utility that owns 
148.24 	the Prairie Island nuclear generating plant must transfer to a renewable development 
148.25 	account $16,000,000 annually each year the plant is in operation, and $7,500,000 each 
148.26 	year the plant is not in operation if ordered by the commission pursuant to paragraph 
148.27 	(c) (d). The fund transfer must be made if nuclear waste is stored in a dry cask at the 
148.28 	independent spent-fuel storage facility at Prairie Island for any part of a year. Funds 
148.29 	in the account may be expended only for development of renewable energy sources. 
148.30 	Preference must be given to development of renewable energy source projects located 
148.31 	within the state. The utility that owns a nuclear generating plant is eligible to apply for 
148.32 	renewable development fund grants. The utility's proposals must be evaluated by the 
149.1 	renewable development fund board in a manner consistent with that used to evaluate other 
149.2 	renewable development fund project proposals.
149.3 	(b) The public utility that owns the Monticello nuclear generating plant must transfer 
149.4 	to the renewable development account $350,000 each year for each dry cask containing 
149.5 	spent fuel that is located at the Monticello nuclear power plant for each year the plant is 
149.6 	in operation, and $5,250,000 each year the plant is not in operation if ordered by the 
149.7 	commission pursuant to paragraph (d). The fund transfer must be made if nuclear waste 
149.8 	is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 
149.9 	any part of a year.
149.10 	(b)(c) Expenditures from the account may only be made after approval by order of 
149.11 	the Public Utilities Commission upon a petition by the public utility.
149.12 	(c)(d) After discontinuation of operation of the Prairie Island nuclear plant or the 
149.13 	Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 
149.14 	Prairie Islanddiscontinued facility, the commission shall require the public utility to pay 
149.15 	$7,500,000 for the discontinued Prairie Island facility and $5,250,000 for the discontinued 
149.16 	Monticello facility for any year in which the commission finds, by the preponderance of 
149.17 	the evidence, that the public utility did not make a good faith effort to remove the spent 
149.18 	nuclear fuel stored at Prairie Islandthe facility to a permanent or interim storage site out 
149.19 	of the state. This determination shall be made at least every two years.

149.20 	Sec. 10. [173.0851] STATE ENERGY CITY.
149.21 	The city of Elk River is designated as a state energy city.

149.22 	Sec. 11. [216B.091] MONTHLY REPORTS.
149.23 	(a) Each public utility must report the following data on residential customers to the 
149.24 	commission monthly, in a format determined by the commission:
149.25 	(1) number of customers;
149.26 	(2) number and total amount of accounts past due;
149.27 	(3) average customer past due amount;
149.28 	(4) total revenue received from the low-income home energy assistance program and 
149.29 	other sources contributing to the bills of low-income persons;
149.30 	(5) average monthly bill;
149.31 	(6) total sales revenue;
149.32 	(7) total write-offs due to uncollectible bills;
149.33 	(8) number of disconnection notices mailed;
149.34 	(9) number of accounts disconnected for nonpayment;
150.1 	(10) number of accounts reconnected to service; and
150.2 	(11) number of accounts that remain disconnected, grouped by the duration of 
150.3 	disconnection, as follows:  
150.4 	(i) 1-30 days; 
150.5 	(ii) 31-60 days; and
150.6 	(iii) more than 60 days.
150.7 	(b) Monthly reports for October through April must also include the following data:
150.8 	(1) number of cold weather protection requests;
150.9 	(2) number of payment arrangement requests received and granted;
150.10 	(3) number of right to appeal notices mailed to customers;
150.11 	(4) number of reconnect request appeals withdrawn;
150.12 	(5) number of occupied heat-affected accounts disconnected for 24 hours or more 
150.13 	for electric and natural gas service separately;
150.14 	(6) number of occupied non-heat-affected accounts disconnected for 24 hours or 
150.15 	more for electric and gas service separately;
150.16 	(7) number of customers granted cold weather rule protection;
150.17 	(8) number of customers disconnected who did not request cold weather rule 
150.18 	protection; and
150.19 	(9) number of customers disconnected who requested cold weather rule protection.
150.20 	(c) The data reported under paragraphs (a) and (b) is presumed to be accurate upon 
150.21 	submission and must be made available through the commission's electronic filing system.

150.22 	Sec. 12. [216B.0951] PROPANE PREPURCHASE PROGRAM.
150.23 		Subdivision 1.Establishment. The commissioner of commerce shall operate, or 
150.24 	contract to operate, a propane fuel prepurchase fuel program. The commissioner may 
150.25 	contract at any time of the year to purchase the lesser of one-third of the liquid propane 
150.26 	fuel consumed by low-income home energy assistance program recipients during the 
150.27 	previous heating season or the amount that can be purchased with available funds. The 
150.28 	propane fuel prepurchase program must be available statewide through each local agency 
150.29 	that administers the energy assistance program. The commissioner may decide to limit or 
150.30 	not engage in prepurchasing if the commissioner finds that there is a reasonable likelihood 
150.31 	that prepurchasing will not provide fuel-cost savings.
150.32 		Subd. 2.Hedge account. The commissioner may establish a hedge account with 
150.33 	realized program savings due to prepurchasing. The account must be used to compensate 
150.34 	program recipients an amount up to the difference in cost for fuel provided to the recipient 
150.35 	if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No 
151.1 	more than ten percent of the aggregate prepurchase program savings may be used to 
151.2 	establish the hedge account.
151.3 		Subd. 3.Report. The Department of Commerce shall issue a report by June 30, 
151.4 	2008, made available electronically on its Web site and in print upon request, that contains 
151.5 	the following information:
151.6 	(1) the cost per gallon of prepurchased fuel;
151.7 	(2) the total gallons of fuel prepurchased;
151.8 	(3) the average cost of propane each month between October and the following April;
151.9 	(4) the number of energy assistance program households receiving prepurchased 
151.10 	fuel; and
151.11 	(5) the average savings accruing or benefit increase provided to energy assistance 
151.12 	households.

151.13 	Sec. 13. [216B.096] COLD WEATHER RULE; PUBLIC UTILITIES.
151.14 		Subdivision 1.Scope.  This section applies only to residential customers of a utility.
151.15 		Subd. 2.Definitions. (a) The terms used in this section have the meanings given 
151.16 	them in this subdivision.
151.17 	(b) "Cold weather period" means the period from October 15 through April 15 of 
151.18 	the following year.
151.19 	(c) "Customer" means a residential customer of a utility.
151.20 	(d) "Disconnection" means the involuntary loss of utility heating service as a result 
151.21 	of a physical act by a utility to discontinue service. Disconnection includes installation of 
151.22 	a service or load limiter or any device that limits or interrupts utility service in any way.
151.23 	(e) "Household income" means the combined income, as defined in section 290A.03, 
151.24 	subdivision 3, of all residents of the customer's household, computed on an annual basis. 
151.25 	Household income does not include any amount received for energy assistance.
151.26 	(f) "Reasonably timely payment" means payment within five working days of 
151.27 	agreed-upon due dates.
151.28 	(g) "Reconnection" means the restoration of utility heating service after it has been 
151.29 	disconnected.
151.30 	(h) "Summary of rights and responsibilities" means a commission-approved notice 
151.31 	that contains, at a minimum, the following:
151.32 	(1) an explanation of the provisions of subdivision 5;
151.33 	(2) an explanation of no-cost and low-cost methods to reduce the consumption 
151.34 	of energy;
151.35 	(3) a third-party notice;
152.1 	(4) ways to avoid disconnection;
152.2 	(5) information regarding payment agreements;
152.3 	(6) an explanation of the customer's right to appeal a determination of income by the 
152.4 	utility and the right to appeal if the utility and the customer cannot arrive at a mutually 
152.5 	acceptable payment agreement; and
152.6 	(7) a list of names and telephone numbers for county and local energy assistance and 
152.7 	weatherization providers in each county served by the utility.
152.8 	(i) "Third-party notice"  means a commission-approved notice containing, at a 
152.9 	minimum, the following information:
152.10 	(1) a statement that the utility will send a copy of any future notice of proposed 
152.11 	disconnection of utility heating service to a third party designated by the residential 
152.12 	customer;
152.13 	(2) instructions on how to request this service; and
152.14 	(3) a statement that the residential customer should contact the person the customer 
152.15 	intends to designate as the third-party contact before providing the utility with the party's 
152.16 	name.
152.17 	(j) "Utility" means a public utility as defined in section 216B.02, and a cooperative 
152.18 	electric association electing to be a public utility under section 216B.026. Utility also 
152.19 	means a municipally owned gas or electric utility for nonresident consumers of the 
152.20 	municipally owned utility and a cooperative electric association when a complaint in 
152.21 	connection with utility heating service during the cold weather period is filed under 
152.22 	section 216B.17, subdivision 6 or 6a.
152.23 	(k) "Utility heating service" means natural gas or electricity used as a  primary 
152.24 	heating source, including electricity service necessary to operate gas heating equipment, 
152.25 	for the customer's primary residence.
152.26 	(l) "Working days" means Mondays through Fridays, excluding legal holidays. The 
152.27 	day of receipt of a personally served notice and the day of mailing of a notice shall not 
152.28 	be counted in calculating working days.
152.29 		Subd. 3.Utility obligations before cold weather period. Each year, between 
152.30 	September 1 and October 15, each utility must provide all customers, personally or by first 
152.31 	class mail, a summary of rights and responsibilities. The summary must also be provided 
152.32 	to all new residential customers when service is initiated.
152.33 		Subd. 4.Notice before disconnection during cold weather period. Before 
152.34 	disconnecting utility heating service during the cold weather period, a utility must 
152.35 	provide, personally or by first class mail, a commission-approved notice to a customer, 
153.1 	in easy-to-understand language, that contains, at a minimum, the date of the scheduled 
153.2 	disconnection, the amount due, and a summary of rights and responsibilities.
153.3 		Subd. 5.Cold weather rule. (a) During the cold weather period, a utility may not 
153.4 	disconnect and must reconnect utility heating service of a customer whose household 
153.5 	income is at or below 50 percent of the state median income if the customer enters into 
153.6 	and makes reasonably timely payments under a mutually acceptable payment agreement 
153.7 	with the utility that is based on the financial resources and circumstances of the household; 
153.8 	provided that, a utility may not require a customer to pay more than ten percent of the 
153.9 	household income toward current and past utility bills for utility heating service. 
153.10 	(b) A utility may accept more than ten percent of the household income as the 
153.11 	payment arrangement amount if agreed to by the customer.
153.12 	(c) The customer or a designated third party may request a modification of the terms 
153.13 	of a payment agreement previously entered into if the customer's financial circumstances 
153.14 	have changed or the customer is unable to make reasonably timely payments.
153.15 	(d) The payment agreement terminates at the expiration of the cold weather period 
153.16 	unless a longer period is mutually agreed to by the customer and the utility.
153.17 		Subd. 6.Verification of income. (a) In verifying a customer's household income, 
153.18 	a utility may:
153.19 	(1) accept the signed statement of a customer that the customer is income eligible;
153.20 	(2) obtain income verification from a local energy assistance provider or a 
153.21 	government agency;
153.22 	(3) consider one or more of the following:
153.23 	(i) the most recent income tax return filed by members of the customer's household;
153.24 	(ii) for each employed member of the customer's household, paycheck stubs for the 
153.25 	last two months or a written statement from the employer reporting wages earned during 
153.26 	the preceding two months;
153.27 	(iii) documentation that the customer receives a pension from the Department of 
153.28 	Human Services, the Social Security Administration, the Veteran's Administration, or 
153.29 	other pension provider;
153.30 	(iv) a letter showing the customer's dismissal from a job or other documentation of 
153.31 	unemployment; or
153.32 	(v) other documentation that supports the customer's declaration of income 
153.33 	eligibility.
153.34 	(b) A customer who receives energy assistance benefits under any federal, state, 
153.35 	or county government programs in which eligibility is defined as household income at 
154.1 	or below 50 percent of state median income is deemed to be automatically eligible for 
154.2 	protection under this section and no other verification of income may be required.
154.3 		Subd. 7.Prohibitions and requirements. (a) This subdivision applies during 
154.4 	the cold weather period.
154.5 	(b) A utility may not charge a deposit or delinquency charge to a customer who has 
154.6 	entered into a payment agreement or a customer who has appealed to the commission 
154.7 	under subdivision 8.
154.8 	(c) A utility may not disconnect service during the following periods:
154.9 	(1) during the pendency of any appeal under subdivision 8;
154.10 	(2) earlier than ten working days after a utility has deposited in first class mail, 
154.11 	or seven working days after a utility has personally served, the notice required under 
154.12 	subdivision 4 to a customer in an occupied dwelling;
154.13 	(3) earlier than ten working days after the utility has deposited in first class mail 
154.14 	the notice required under subdivision 4 to the recorded billing address of the customer, 
154.15 	if the utility has reasonably determined from an on-site inspection that the dwelling 
154.16 	is unoccupied;
154.17 	(4) on a Friday, unless the utility makes personal contact with, and offers a payment 
154.18 	agreement consistent with this section to the customer;
154.19 	(5) on a Saturday, Sunday, holiday, or the day before a holiday;
154.20 	(6) when utility offices are closed;
154.21 	(7) when no utility personnel are available to resolve disputes, enter into payment 
154.22 	agreements, accept payments, and reconnect service; or
154.23 	(8) when commission offices are closed.
154.24 	(d) A utility may not discontinue service until the utility investigates whether the 
154.25 	dwelling is actually occupied. At a minimum, the investigation must include one visit 
154.26 	by the utility to the dwelling during normal working hours. If no contact is made and 
154.27 	there is reason to believe that the dwelling is occupied, the utility must attempt a second 
154.28 	contact during nonbusiness hours. If personal contact is made, the utility representative 
154.29 	must provide notice required under subdivision 4 and, if the utility representative is not 
154.30 	authorized to enter into a payment agreement, the telephone number the customer can call 
154.31 	to establish a payment agreement.
154.32 	(e) Each utility must reconnect utility service if, following disconnection, the 
154.33 	dwelling is found to be occupied and the customer agrees to enter into a payment 
154.34 	agreement or appeals to the commission because the customer and the utility are unable to 
154.35 	agree on a payment agreement.
155.1 		Subd. 8.Disputes; customer appeals. (a) A utility must provide the customer 
155.2 	and any designated third party with a commission-approved written notice of the right 
155.3 	to appeal:
155.4 	(1) a utility determination that the customer's household income is more than 50 
155.5 	percent of state median household income; or
155.6 	(2) when the utility and customer are unable to agree on the establishment or 
155.7 	modification of a payment agreement.
155.8 	(b) A customer's appeal must be filed with the commission no later than seven 
155.9 	working days after the customer's receipt of a personally served appeal notice, or within 
155.10 	ten working days after the utility has deposited a first class mail appeal notice.
155.11 	(c) The commission must determine all customer appeals on an informal basis, 
155.12 	within 20 working days of receipt of a customer's written appeal. In making its 
155.13 	determination, the commission must consider one or more of the factors in subdivision 6.
155.14 	(d) Notwithstanding any other law, following an appeals decision adverse to the 
155.15 	customer, a utility may not disconnect utility heating service for seven working days 
155.16 	after the utility has personally served a disconnection notice, or for ten working days 
155.17 	after the utility has deposited a first class mail notice. The notice must contain, in 
155.18 	easy-to-understand language, the date on or after which disconnection will occur, the 
155.19 	reason for disconnection, and ways to avoid disconnection.
155.20 		Subd. 8a.Cooperative and municipal disputes. Complaints in connection with 
155.21 	utility heating service during the cold weather period filed against a municipal or a 
155.22 	cooperative electric association with the commission under section 216B.17, subdivision 6 
155.23 	or 6a, are governed by section 216B.097.
155.24 		Subd. 9.Customers above 50 percent of state median income. During the 
155.25 	cold weather period, a customer whose household income is above 50 percent of state 
155.26 	median income:
155.27 	(1) has the right to a payment agreement that takes into consideration any 
155.28 	extenuating circumstances of the household; and
155.29 	(2) may not be disconnected and must be reconnected if the customer makes timely 
155.30 	payments under a payment agreement accepted by a utility.
155.31 	Subdivision 7, paragraph (b), does not apply to customers whose household income is 
155.32 	above 50 percent of state median income.
155.33 		Subd. 10.Reporting. Annually on November 1, a utility must electronically file 
155.34 	with the commission a report, in a format specified by the commission, specifying the 
155.35 	number of utility heating service customers whose service is disconnected or remains 
155.36 	disconnected for nonpayment as of October 1 and October 15. If customers remain 
156.1 	disconnected on October 15, a utility must file a report each week between November 1 
156.2 	and the end of the cold weather period specifying:
156.3 	(1) the number of utility heating service customers that are or remain disconnected 
156.4 	from service for nonpayment; and
156.5 	(2) the number of utility heating service customers that are reconnected to service 
156.6 	each week. The utility may discontinue weekly reporting if the number of utility heating 
156.7 	service customers that are or remain disconnected reaches zero before the end of the 
156.8 	cold weather period.
156.9 	The data reported under this subdivision are presumed to be accurate upon submission and 
156.10 	must be made available through the commission's electronic filing system.

156.11 	Sec. 14. Minnesota Statutes 2006, section 216B.097, subdivision 1, is amended to read:
156.12 		Subdivision 1.Application; notice to residential customer. (a) A municipal utility 
156.13 	or a cooperative electric association must not disconnect and must reconnect the utility 
156.14 	service of a residential customer during the period between October 15 and April 15 if 
156.15 	the disconnection affects the primary heat source for the residential unit when and all of
156.16 	the following conditions are met:
156.17 	(1) the customer has declared inability to pay on forms provided by the utility. For 
156.18 	the purposes of this clause, a customer that is receiving energy assistance is deemed 
156.19 	to have demonstrated an inability to pay;
156.20 	(2) The household income of the customer is less than at or below 50 percent of the 
156.21 	state median household income;. A municipal utility or cooperative electric association 
156.22 	utility may (i) verify income on forms it provides or (ii) obtain
156.23 	(3) verification of income may be conducted by from the local energy assistance 
156.24 	provider or the utility, unless the. A customer is automatically eligible for protection 
156.25 	against disconnection as a recipient of deemed to meet the income requirements of this 
156.26 	clause if the customer receives  any form of public assistance, including energy assistance,
156.27 	that uses an income eligibility in an amount threshold set at or below the income eligibility 
156.28 	in clause (2) 50 percent of the state median household income;
156.29 	(4) (2) A customer whose account is current for the billing period immediately prior 
156.30 	to October 15 or who, at any time, enters into and makes reasonably timely payments 
156.31 	under a payment schedule agreement that considers the financial resources of the 
156.32 	household and is reasonably current with payments under the schedule; and
156.33 	(5) the (3) A customer receives referrals to energy assistance programs, 
156.34 	weatherization, conservation, or other programs likely to reduce the customer's energy 
156.35 	bills.
157.1 	(b) A municipal utility or a cooperative electric association must, between August 
157.2 	15 and October 15 of each year, notify all residential customers of the provisions of this 
157.3 	section.

157.4 	Sec. 15. Minnesota Statutes 2006, section 216B.097, subdivision 3, is amended to read:
157.5 		Subd. 3.Restrictions if disconnection necessary. (a) If a residential customer must 
157.6 	be involuntarily disconnected between October 15 and April 15 for failure to comply with 
157.7 	the provisions of subdivision 1, the disconnection must not occur:
157.8 	(1) on a Friday or on the day before a holiday, unless the customer declines to enter 
157.9 	into a payment agreement offered that day in person or via personal contact by telephone 
157.10 	by a municipal utility or cooperative electric association;
157.11 	(2) on a weekend, holiday, or the day before a holiday;
157.12 	(3) when utility offices are closed; or
157.13 	(4) after the close of business on a day when disconnection is permitted, unless 
157.14 	a field representative of a municipal utility or cooperative electric association who is 
157.15 	authorized to enter into a payment agreement, accept payment, and continue service, 
157.16 	offers a payment agreement to the customer. 
157.17 	Further, the disconnection must not occur until at least 20 days after the notice required 
157.18 	in subdivision 2 has been mailed to the customer or 15 days after the notice has been 
157.19 	personally delivered to the customer.
157.20 	(b) If a customer does not respond to a disconnection notice, the customer must 
157.21 	not be disconnected until the utility investigates whether the residential unit is actually 
157.22 	occupied. If the unit is found to be occupied, the utility must immediately inform the 
157.23 	occupant of the provisions of this section. If the unit is unoccupied, the utility must give 
157.24 	seven days' written notice of the proposed disconnection to the local energy assistance 
157.25 	provider before making a disconnection.
157.26 	(c) If, prior to disconnection, a customer appeals a notice of involuntary 
157.27 	disconnection, as provided by the utility's established appeal procedure, the utility must 
157.28 	not disconnect until the appeal is resolved.

157.29 	Sec. 16. Minnesota Statutes 2006, section 216B.098, subdivision 4, is amended to read:
157.30 		Subd. 4.Undercharges. (a) A utility shall offer a payment agreement to customers 
157.31 	who have been undercharged if no culpable conduct by the customer or resident of 
157.32 	the customer's household caused the undercharge. The agreement must cover a period 
157.33 	equal to the time over which the undercharge occurred or a different time period that is 
157.34 	mutually agreeable to the customer and the utility, except that the duration of a payment 
158.1 	agreement offered by a utility to a customer whose household income is at or below 50 
158.2 	percent of state median household income must consider the financial circumstances of 
158.3 	the customer's household. 
158.4 	(b) No interest or delinquency fee may be charged under this as part of an 
158.5 	undercharge agreement under this subdivision.
158.6 	(c) If a customer inquiry or complaint results in the utility's discovery of the 
158.7 	undercharge, the utility may bill for undercharges incurred after the date of the inquiry 
158.8 	or complaint only if the utility began investigating the inquiry or complaint within a 
158.9 	reasonable time after when it was made.

158.10 	Sec. 17. Minnesota Statutes 2006, section 216B.812, subdivision 1, is amended to read:
158.11 		Subdivision 1.Early purchase and deployment of renewable hydrogen, fuel 
158.12 	cells, and related technologies by the state. (a) The Department of Commerce, in 
158.13 	conjunction coordination with the Department of Administration and the Pollution Control 
158.14 	Agency, shall identify opportunities for demonstrating the use ofdeploying renewable 
158.15 	hydrogen, fuel cells, and related technologies within state-owned facilities, vehicle fleets, 
158.16 	and operations in ways that demonstrate their commercial performance and economics.
158.17 	(b) The Department of Commerce shall recommend to the Department of 
158.18 	Administration, when feasible, the purchase and demonstrationdeployment of hydrogen, 
158.19 	fuel cells, and related technologies, when feasible,  in ways that strategically contribute 
158.20 	to realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109, and 
158.21 	which contribute to the following nonexclusive list of objectives:
158.22 	(1) provide needed performance data to the marketplace;
158.23 	(2) identify code and regulatory issues to be resolved;
158.24 	(3) foster economic development and job creation in the state;
158.25 	(4) raise public awareness of renewable hydrogen, fuel cells, and related 
158.26 	technologies; or
158.27 	(5) reduce emissions of carbon dioxide and other pollutants.
158.28 	(c) The Department of Commerce and the Pollution Control Agency shall also 
158.29 	recommend to the Department of Administration changes to the state's procurement 
158.30 	guidelines and contracts in order to facilitate the purchase and deployment of cost-effective 
158.31 	renewable hydrogen, fuel cells, and related technologies by all levels of government.

158.32 	Sec. 18. Minnesota Statutes 2006, section 216B.16, subdivision 10, is amended to read:
159.1 		Subd. 10.Intervenor payment compensation. (a) A nonprofit organization or 
159.2 	an individual granted formal intervenor status by the commission is eligible to receive 
159.3 	compensation.
159.4 	(b) The commission may order a utility to pay all or a portion of a party's intervention
159.5 	 compensate all or part of an eligible intervenor's reasonable costs not to exceed $20,000 
159.6 	per intervenor in any proceeding of participation in a general rate case that comes before 
159.7 	the commission when the commission finds that the intervenor has materially assisted 
159.8 	the commission's deliberation and the intervenor has insufficient financial resources to 
159.9 	afford the costs of intervention and when a lack of compensation would present financial 
159.10 	hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor 
159.11 	in any proceeding. For the purpose of this subdivision, "materially assisted" means that 
159.12 	the intervenor's participation and presentation was useful and seriously considered, or 
159.13 	otherwise substantially contributed to the commission's deliberations in the proceeding. 
159.14 	(c) In determining whether an intervenor has materially assisted the commission's 
159.15 	deliberation, the commission must consider, among other factors, whether: 
159.16 	(1) the intervenor represented an interest that would not otherwise have been 
159.17 	adequately represented; 
159.18 	(2) the evidence or arguments presented or the positions taken by the intervenor 
159.19 	were an important factor in producing a fair decision; 
159.20 	(3) the intervenor's position promoted a public purpose or policy; 
159.21 	(4) the evidence presented, arguments made, issues raised, or positions taken by the 
159.22 	intervenor would not have been a part of the record without the intervenor's participation; 
159.23 	and 
159.24 	(5) the administrative law judge or the commission adopted, in whole or in part, a 
159.25 	position advocated by the intervenor. 
159.26 	(d) In determining whether the absence of compensation would present financial 
159.27 	hardship to the intervenor, the commission must consider: 
159.28 	(1) whether the costs presented in the intervenor's claim reflect reasonable fees for 
159.29 	attorneys and expert witnesses and other reasonable costs; and
159.30 	(2) the ratio between the costs of intervention and the intervenor's unrestricted funds.
159.31 	(e) An intervenor seeking compensation must file a request and an affidavit of service 
159.32 	with the commission, and serve a copy of the request on each party to the proceeding. 
159.33 	The request must be filed 30 days after the later of (1) the expiration of the period within 
159.34 	which a petition for rehearing, amendment, vacation, reconsideration, or reargument must 
159.35 	be filed or (2) the date the commission issues an order following rehearing, amendment, 
159.36 	vacation, reconsideration, or reargument.
160.1 	(f) The compensation request must include: 
160.2 	(1) the name and address of the intervenor or representative of the nonprofit 
160.3 	organization the intervenor is representing; 
160.4 	(2) proof of the organization's nonprofit, tax-exempt status; 
160.5 	(3) the name and docket number of the proceeding for which compensation is 
160.6 	requested; 
160.7 	(4) a list of actual annual revenues and expenses of the organization the intervenor is 
160.8 	representing for the preceding year and projected revenues, revenue sources, and expenses 
160.9 	for the current year; 
160.10 	(5) the organization's balance sheet for the preceding year and a current monthly 
160.11 	balance sheet; 
160.12 	(6) an itemization of intervenor costs and the total compensation request; and 
160.13 	(7) a narrative explaining why additional organizational funds cannot be devoted 
160.14 	to the intervention.
160.15 	(g) Within 30 days after service of the request for compensation, a party may file 
160.16 	a response, together with an affidavit of service, with the commission. A copy of the 
160.17 	response must be served on the intervenor and all other parties to the proceeding. 
160.18 	(h) Within 15 days after the response is filed, the intervenor may file a reply with 
160.19 	the commission. A copy of the reply and an affidavit of service must be served on all 
160.20 	other parties to the proceeding. 
160.21 	(i) If additional costs are incurred as a result of additional proceedings following 
160.22 	the commission's initial order, the intervenor may file an amended request within 30 
160.23 	days after the commission issues an amended order. Paragraphs (e) to (h) apply to an 
160.24 	amended request. 
160.25 	(j) The commission must issue a decision on intervenor compensation within 60 
160.26 	days of a filing by an intervenor. 
160.27 	(k) A party may request reconsideration of the commission's compensation decision 
160.28 	within 30 days of the decision. 
160.29 	(l) If the commission issues an order requiring payment of intervenor compensation, 
160.30 	the utility that was the subject of the proceeding must pay the compensation to the 
160.31 	intervenor, and file with the commission proof of payment, within 30 days after the later 
160.32 	of (1) the expiration of the period within which a petition for reconsideration of the 
160.33 	commission's compensation decision must be filed or (2) the date the commission issues 
160.34 	an order following reconsideration of its order on intervenor compensation.

160.35 	Sec. 19. Minnesota Statutes 2006, section 216B.16, subdivision 15, is amended to read:
161.1 		Subd. 15.Low-income affordability programs. (a) The commission may must
161.2 	consider ability to pay as a factor in setting utility rates and may establish affordability
161.3 	programs for low-income residential ratepayers in order to ensure affordable, reliable, and 
161.4 	continuous service to low-income utility customers. By September 1, 2007, a public 
161.5 	utility serving low-income residential ratepayers who use natural gas for heating must 
161.6 	file an affordability program with the commission. For purposes of this subdivision, 
161.7 	"low-income residential ratepayers" means ratepayers who receive energy assistance from 
161.8 	the low-income home energy assistance program (LIHEAP).
161.9 	(b) The purpose of the low-income programs is to Any affordability program the 
161.10 	commission orders a utility to implement must:
161.11 	(1) lower the percentage of income that participating low-income households devote 
161.12 	to energy bills, to;
161.13 	(2) increase participating customer payments, and to over time by increasing the 
161.14 	frequency of payments;
161.15 	(3) decrease or eliminate participating customer arrears;
161.16 	(4) lower the utility costs associated with customer account collection activities; and 
161.17 	(5) coordinate the program with other available low-income bill payment assistance 
161.18 	and conservation resources. 
161.19 	In ordering low-income affordability programs, the commission may require public 
161.20 	utilities to file program evaluations, including the coordination of other available 
161.21 	low-income bill payment and conservation resources and that measure the effect of the 
161.22 	affordability program on:
161.23 	(1) reducing the percentage of income that participating households devote to energy 
161.24 	bills;
161.25 	(2) service disconnections; and
161.26 	(3) frequency of customer payment behavior payments, utility collection costs, 
161.27 	arrearages, and bad debt.
161.28 	(c) The commission must issue orders necessary to implement, administer, and 
161.29 	evaluate affordability programs, and to allow a utility to recover program costs, including 
161.30 	administrative costs, on a timely basis. The commission may not allow a utility to recover 
161.31 	administrative costs, excluding start-up costs, in excess of five percent of total program 
161.32 	costs, or program evaluation costs in excess of two percent of total program costs. The 
161.33 	commission must permit deferred accounting, with carrying costs, for recovery of program 
161.34 	costs incurred during the period between general rate cases.
161.35 	(d) Public utilities may use information collected or created for the purpose of 
161.36 	administering energy assistance to administer affordability programs.

162.1 	Sec. 20. [216B.1637] RECOVERY OF CERTAIN LIMITED UTILITY 
162.2 	GREENHOUSE GAS INFRASTRUCTURE COSTS.
162.3 	A public utility that owns a nuclear power plant and a public utility furnishing gas 
162.4 	service may file for recovery of investments and expenses associated with the replacement 
162.5 	of cast iron natural gas distribution and service lines owned by the utility and to replace 
162.6 	breakers that contain sodium hexafluoride in order to reduce the risk of greenhouse gases 
162.7 	being released into the atmosphere. Upon a finding that the projects are consistent with 
162.8 	the public interest and do not impose excessive costs on customers, the commission shall 
162.9 	provide timely recovery of the utility's investment and expenses on any approved projects 
162.10 	through a rate adjustment mechanism similar to that provided for transmission projects 
162.11 	under section 216B.16, subdivision 7b, paragraphs (b) to (d).

162.12 	Sec. 21. Minnesota Statutes 2006, section 216B.241, subdivision 6, is amended to read:
162.13 		Subd. 6.Renewable energy research. (a) A public utility that owns a nuclear 
162.14 	generation facility in the state shall spend five percent of the total amount that utility 
162.15 	is required to spend under this section to support basic and applied research and 
162.16 	demonstration activities at the University of Minnesota Initiative for Renewable Energy 
162.17 	and the Environment for the development of renewable energy sources and technologies. 
162.18 	The utility shall transfer the required amount to the University of Minnesota on or before 
162.19 	July 1 of each year and that annual amount shall be deducted from the amount of money the 
162.20 	utility is required to spend under this section. The University of Minnesota shall transfer 
162.21 	at least ten percent of these funds to at least one rural campus or experiment station.
162.22 	(b) Research Activities funded under this subdivision shall may include, but are 
162.23 	not limited to:
162.24 	(1) development of environmentally sound production, distribution, and use of 
162.25 	energy, chemicals, and materials from renewable sources;
162.26 	(2) processing and utilization of agricultural and forestry plant products and other 
162.27 	bio-based, renewable sources as a substitute for fossil-fuel-based energy, chemicals, and 
162.28 	materials using a variety of means including biocatalysis, biorefining, and fermentation;
162.29 	(3) conversion of state wind resources to hydrogen for energy storage and 
162.30 	transportation to areas of energy demand;
162.31 	(4) improvements in scalable hydrogen fuel cell technologies; and
162.32 	(5) production of hydrogen from bio-based, renewable sources; and sequestration 
162.33 	of carbon.
162.34 	(1) environmentally sound production of energy from a renewable energy source 
162.35 	including biomass; 
163.1 	(2) environmentally sound production of hydrogen from biomass and any other 
163.2 	renewable energy source for energy storage and energy utilization; 
163.3 	(3) development of energy conservation and efficient energy utilization technologies; 
163.4 	(4) energy storage technologies; and 
163.5 	(5) analysis of policy options to facilitate adoption of technologies that use or 
163.6 	produce low-carbon renewable energy. 
163.7 	(c) Notwithstanding other law to the contrary, the utility may, but is not required to, 
163.8 	spend more than two percent of its gross operating revenues from service provided in this 
163.9 	state under this section or section 216B.2411. 
163.10 	(d) For the purposes of this subdivision:
163.11 	(1) "renewable energy source: means hydro, wind, solar, biomass and geothermal 
163.12 	energy, and microorganisms used as an energy source; and
163.13 	(2) "biomass" means plant and animal material, agricultural and forest residues, 
163.14 	mixed municipal solid waste, and sludge from wastewater treatment.
163.15 	(e) This subdivision expires June 30, 2008 2010.

163.16 	Sec. 22. Minnesota Statutes 2006, section 216B.812, subdivision 2, is amended to read:
163.17 		Subd. 2.Pilot projects. (a) In consultation with appropriate representatives from 
163.18 	state agencies, local governments, universities, businesses, and other interested parties, 
163.19 	the Department of Commerce shall report back to the legislature by November 1, 2005, 
163.20 	and every two years thereafter, with a slate of proposed pilot projects that contribute to 
163.21 	realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109. The 
163.22 	Department of Commerce must consider the following nonexclusive list of priorities in 
163.23 	developing the proposed slate of pilot projects:
163.24 	(1) demonstratedeploy "bridge" technologies such as hybrid-electric, off-road, and 
163.25 	fleet vehicles running on hydrogen or fuels blended with hydrogen;
163.26 	(2) developlead to cost-competitive, on-site renewable hydrogen production 
163.27 	technologies;
163.28 	(3) demonstrate nonvehicle applications for hydrogen;
163.29 	(4) improve the cost and efficiency of hydrogen from renewable energy sources; and
163.30 	(5) improve the cost and efficiency of hydrogen production using direct solar energy 
163.31 	without electricity generation as an intermediate step.
163.32 	(b) For all demonstrations deployment projects that do not involve a demonstration 
163.33 	component, individual system components of the technology mustshould, if feasible, meet 
163.34 	commercial performance standards and systems modeling must be completed to predict 
164.1 	commercial performance, risk, and synergies. In addition, the proposed pilots should meet 
164.2 	as many of the following criteria as possible:
164.3 	(1) advance energy security;
164.4 	(2) capitalize on the state's native resources;
164.5 	(3) result in economically competitive infrastructure being put in place;
164.6 	(4) be located where it will link well with existing and related projects and be 
164.7 	accessible to the public, now or in the future;
164.8 	(5) demonstrate multiple, integrated aspects of renewable hydrogen infrastructure;
164.9 	(6) include an explicit public education and awareness component;
164.10 	(7) be scalable to respond to changing circumstances and market demands;
164.11 	(8) draw on firms and expertise within the state where possible;
164.12 	(9) include an assessment of its economic, environmental, and social impact; and
164.13 	(10) serve other needs beyond hydrogen development.

164.14 	Sec. 23. [216B.813] MINNESOTA RENEWABLE HYDROGEN INITIATIVE.
164.15 		Subdivision 1.Road map. The Department of Commerce shall coordinate and 
164.16 	administer directly or by contract the Minnesota renewable hydrogen initiative. If the 
164.17 	department decides to contract for its duties under this section, it must contract with a 
164.18 	nonpartisan, nonprofit organization within the state to develop the road map. The initiative 
164.19 	may be run as a public-private partnership representing business, academic, governmental, 
164.20 	and nongovernmental organizations. The initiative must oversee the development and 
164.21 	implementation of a renewable hydrogen road map, including appropriate technology 
164.22 	deployments, that achieve the hydrogen goal of section 216B.013. The road map should 
164.23 	be compatible with the United States Department of Energy's National Hydrogen Energy 
164.24 	Roadmap and be based on an assessment of marketplace economics and the state's 
164.25 	opportunities in hydrogen, fuel cells, and related technologies, so as to capitalize on 
164.26 	strengths. The road map should establish a vision, goals, general timeline, strategies for 
164.27 	working with industry, and measurable milestones for achieving the state's renewable 
164.28 	hydrogen goal. The road map should describe how renewable hydrogen and fuel cells fit 
164.29 	in Minnesota's overall energy system, and should help foster a consistent, predictable, and 
164.30 	prudent investment environment. The department must report to the legislature on the 
164.31 	progress in implementing the road map by November 1 of each odd-numbered year.
164.32 		Subd. 2.Grants. (a) The commissioner of commerce shall operate a competitive 
164.33 	grant program for projects to assist the state in attaining its renewable hydrogen energy 
164.34 	goals. The commissioner of commerce shall assemble an advisory committee made up of 
164.35 	industry, university, government, and nongovernment organizations to:
165.1 	(1) help identify the most promising technology deployment projects for public 
165.2 	investment;
165.3 	(2) advise on the technical specifications for those projects; and
165.4 	(3) make recommendations on project grants.
165.5 	(b) The commissioner shall give preference to project concepts included in the 
165.6 	department's most recent biennial report: Strategic Demonstration Projects to Accelerate 
165.7 	the Commercialization of Renewable Hydrogen and Related Technologies in Minnesota. 
165.8 	Projects eligible for funding must combine one or more of the hydrogen production 
165.9 	options listed in the department's report with an end use that has significant commercial 
165.10 	potential, preferably high visibility, and relies on fuel cells or related technologies. Each 
165.11 	funded technology deployment must include an explicit education and awareness-raising 
165.12 	component, be compatible with the renewable hydrogen deployment criteria defined in 
165.13 	section 216B.812, and receive 50 percent of its total cost from nonstate sources. The 50 
165.14 	percent requirement does not apply for recipients that are public institutions.

165.15 	Sec. 24. Minnesota Statutes 2006, section 216C.051, subdivision 2, is amended to read:
165.16 		Subd. 2.Establishment. (a) There is established a Legislative Electric Energy Task 
165.17 	Force to study future electric energy sources and costs and to make recommendations 
165.18 	for legislation for an environmentally and economically sustainable and advantageous 
165.19 	electric energy supply.
165.20 	(b) The task force consists of:
165.21 	(1) ten members of the house of representatives including the chairs of the 
165.22 	Environment and Natural Resources Committee and Regulated Industries Subcommittee
165.23 	the Energy Finance and Policy Division and eight members to be appointed by the speaker 
165.24 	of the house, four of whom must be from the minority caucus; and
165.25 	(2) ten members of the senate including the chairs of the Environment, Energy and 
165.26 	Natural Resources Budget Division and Jobs, Energy, and Community Development
165.27 	Utilities, Technology and Communications committees and eight members to be appointed 
165.28 	by the Subcommittee on Committees, four of whom must be from the minority caucus.
165.29 	(c) The task force may employ staff, contract for consulting services, and may 
165.30 	reimburse the expenses of persons requested to assist it in its duties other than state 
165.31 	employees or employees of electric utilities. The director of the Legislative Coordinating 
165.32 	Commission shall assist the task force in administrative matters. The task force shall 
165.33 	elect cochairs, one member of the house and one member of the senate from among the 
165.34 	committee and subcommittee chairs named to the committee. The task force members 
166.1 	from the house shall elect the house cochair, and the task force members from the senate 
166.2 	shall elect the senate cochair.

166.3 	Sec. 25. Minnesota Statutes 2006, section 216C.051, subdivision 9, is amended to read:
166.4 		Subd. 9.Expiration. This section is repealed June 30, 2007 2010.

166.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

166.6 	Sec. 26. Minnesota Statutes 2006, section 216C.052, is amended by adding a 
166.7 	subdivision to read:
166.8 		Subd. 8a.Manitoba Hydro information. By January 1, 2008, and each year 
166.9 	thereafter, the task force shall request the Manitoba Hydro-Electric Board to provide 
166.10 	the following information for each community that is a signatory to the Northern Flood 
166.11 	Agreement, including South Indian Lake:
166.12 	(1) median household income and number of residents employed full time and 
166.13 	part time;
166.14 	(2) the number of outstanding claims filed against Manitoba Hydro by individuals 
166.15 	and communities and the number of claims settled by Manitoba Hydro; and
166.16 	(3) the amount of shoreline damaged by flooding and erosion and the amount of 
166.17 	shoreline restored and cleaned.
166.18 	For the purposes of this subdivision, "Northern Flood Agreement" means the 
166.19 	agreement entered into by the Northern Flood Committee, Incorporated, the Manitoba 
166.20 	Hydro-Electric Board, the province of Manitoba, and the government of Canada on 
166.21 	December 16, 1977.

166.22 	Sec. 27. [216C.385] CLEAN ENERGY RESOURCE TEAMS.
166.23 		Subdivision 1.Findings. The legislature finds that community-based energy 
166.24 	programs are an effective means of implementing improved energy practices including 
166.25 	conservation, greater efficiency in energy use, and the production and use of renewable 
166.26 	resources such as wind, solar, biomass, and biofuels. Further, community-based energy 
166.27 	programs are found to be a public purpose for which public money may be spent.
166.28 		Subd. 2.Mission, organization, and membership. The clean energy resource 
166.29 	teams (CERT's) project is an innovative state, university, and nonprofit partnership that 
166.30 	serves as a catalyst for community energy planning and projects. The mission of CERT's 
166.31 	is to give citizens a voice in the energy planning process by connecting them with the 
166.32 	necessary technical resources to identify and implement community-scale renewable 
166.33 	energy and energy efficiency projects. In 2003, the Department of Commerce designated 
167.1 	the CERT's project as a statewide collaborative venture and recognized six regional teams 
167.2 	based on their geography: Central, Northeast, Northwest, Southeast, Southwest, and 
167.3 	West-Central. Membership of CERT's may include but is not limited to representatives 
167.4 	of utilities; federal, state, and local governments; small business; labor; senior citizens; 
167.5 	academia; and other interested parties. The Department of Commerce may certify 
167.6 	additional clean energy resource teams by regional geography, including teams in the Twin 
167.7 	Cities metropolitan area.
167.8 		Subd. 3.Powers and duties. In order to develop and implement community-based 
167.9 	energy programs, a clean energy resource team may:
167.10 	(1) analyze social and economic impacts caused by energy expenditures;
167.11 	(2) analyze regional renewable and energy efficiency resources and opportunities;
167.12 	(3) link community members and community energy projects to the knowledge 
167.13 	and capabilities of the University of Minnesota, the State Energy Office, nonprofit 
167.14 	organizations, and regional community members, among others;
167.15 	(4) plan, set priorities for, provide technical assistance to, and catalyze local energy 
167.16 	efficiency and renewable energy projects that help to meet state energy policy goals and 
167.17 	maximize local economic development opportunities;
167.18 	(5) provide a broad-based resource and communications network that links local, 
167.19 	county, and regional energy efficiency and renewable energy project efforts around the 
167.20 	state (both interregional and intraregional);
167.21 	(6) seek, accept, and disburse grants and other aids from public or private sources 
167.22 	for purposes authorized in this subdivision;
167.23 	(7) provides a convening and networking function within CERT's regions to facilitate 
167.24 	education, knowledge formation, and project replication; and
167.25 	(8) exercise other powers and duties imposed on it by statute, charter, or ordinance.
167.26 		Subd. 4.Department assistance. The commissioner, via the clean energy resource 
167.27 	teams, may provide professional, technical, organizational, and financial assistance to 
167.28 	regions and communities to develop and implement community energy programs and 
167.29 	projects, within available resources.

167.30 	Sec. 28. [216C.39] RURAL WIND ENERGY DEVELOPMENT REVOLVING 
167.31 	LOAN FUND.
167.32 		Subdivision 1.Establishment. A rural wind energy development revolving loan 
167.33 	fund is established as an account in the special revenue fund in the state treasury. The 
167.34 	commissioner of finance shall credit to the account the amounts authorized under this 
168.1 	section and appropriations and transfers to the account. Earnings, such as interest, 
168.2 	dividends, and any other earnings arising from fund assets, must be credited to the account.
168.3 		Subd. 2.Purpose. The rural wind energy development revolving loan fund 
168.4 	is created to provide financial assistance, through partnership with local owners and 
168.5 	communities, in developing community wind energy projects that meet the specifications 
168.6 	of section 216B.1612, subdivision 2, paragraph (f).
168.7 		Subd. 3.Expenditures. Money in the fund is appropriated to the commissioner 
168.8 	of commerce, and may be used to make loans to qualifying owners of wind energy 
168.9 	projects, as defined in section 216B.1612, subdivision 2, paragraph (f), to assist in funding 
168.10 	wind studies and transmission interconnection studies. The loans must be structured 
168.11 	for repayment within 30 days after the project begins commercial operations or two 
168.12 	years from the date the loan is issued, whichever is sooner. The commissioner may pay 
168.13 	reasonable and actual costs of administering the loan program, not to exceed interest 
168.14 	earned on fund assets.
168.15 		Subd. 4.Limitations. A loan may not be approved for an amount exceeding 
168.16 	$100,000. This limit applies to all money loaned to a single project or single entity, 
168.17 	whether paid to one or more qualifying owners and whether paid in one or more fiscal 
168.18 	years.
168.19 		Subd. 5.Administration; eligible projects. (a) Applications for a loan under 
168.20 	this section must be made in a manner and on forms prescribed by the commissioner. 
168.21 	Loans to eligible projects must be made in the order in which complete applications are 
168.22 	received by the commissioner. Loan funds must be disbursed to an applicant within ten 
168.23 	days of submission of a payment request by the applicant that demonstrates a payment 
168.24 	due to the Midwest Independent System Operator. Interest payable on the loan amount 
168.25 	may not exceed 1.5 percent per annum.
168.26 	(b) A project is eligible for a loan under this program if:
168.27 	(1) the project has completed an adequate interconnection feasibility study that 
168.28 	indicates the project may be interconnected with system upgrades of less than ten percent 
168.29 	of the estimated project costs;
168.30 	(2) the project has a signed power purchase agreement with an electric utility or 
168.31 	provides evidence that the project is under serious consideration for such an agreement by 
168.32 	an electric utility;
168.33 	(3) the ownership and structure of the project allows it to qualify as a 
168.34 	community-based energy development (C-BED) project under section 216B.1612, and the 
168.35 	developer commits to obtaining and maintaining C-BED status; and
169.1 	(4) the commissioner has determined that sufficient funds are available to make a 
169.2 	loan to the project.

169.3 	Sec. 29. Minnesota Statutes 2006, section 216C.41, subdivision 3, is amended to read:
169.4 		Subd. 3.Eligibility window. Payments may be made under this section only for:
169.5 	(a) electricity generated from:
169.6 	(1) from a qualified hydroelectric facility that is operational and generating 
169.7 	electricity before December 31, 2009;
169.8 	(2) from a qualified wind energy conversion facility that is operational and 
169.9 	generating electricity before January 1, 2008; or
169.10 	(3) from a qualified on-farm biogas recovery facility from July 1, 2001, through 
169.11 	December 31, 2017; and
169.12 	(b) gas generated from a qualified on-farm biogas recovery facility from July 1, 
169.13 	2007, through December 31, 2017.

169.14 	Sec. 30. PETROLEUM VIOLATION ESCROW FUNDS.
 169.15 	(a) Petroleum violation escrow funds appropriated to the commissioner of commerce 
169.16 	by  Laws 1988, chapter 686, article 1, section 38, for state energy loan programs for 
169.17 	schools,  hospitals, and public buildings must be used for grants to kindergarten through 
169.18 	grade 12 schools to develop energy conservation or renewable energy projects. A grant 
169.19 	may not exceed $500,000. The commissioner must endeavor to award grants throughout 
169.20 	the regions of the state. No more than one grant may be awarded in a county, unless an 
169.21 	insufficient number of applications is received from schools located in other counties to 
169.22 	exhaust available funds.
169.23 	(b) The commissioner of commerce must petition the federal Department of Energy 
169.24 	for a waiver from any federal regulation that limits the proportion of federal funds 
169.25 	expended on state energy programs that may be spent on energy efficiency.
169.26 	(c) For purposes of this subdivision, "renewable energy" means wind, solar, 
169.27 	hydroelectric with a capacity of less than 60 megawatts, geothermal, hydrogen, fuel cells 
169.28 	made from renewable resources, herbaceous crops, agricultural crops, agricultural waste, 
169.29 	and aquatic plant matter.

169.30 	EFFECTIVE DATE. This section is effective the day after the commissioner of 
169.31 	commerce receives the waiver described in paragraph (b).

170.1 	Sec. 31. UNIFORM CODES AND STANDARDS FOR HYDROGEN, FUEL 
170.2 	CELLS, AND RELATED TECHNOLOGIES; RECOMMENDATIONS AND 
170.3 	REPORT.
 170.4 	(a) The commissioner of labor and industry, in consultation with the Department of 
170.5 	Commerce and other relevant public and private interests, shall develop recommendations 
170.6 	regarding the adoption of uniform codes and standards for hydrogen infrastructure, fuel 
170.7 	cells, and related technologies, and report those recommendations to the legislature by 
170.8 	December 31, 2008.
170.9 	(b) The goal of the recommendations is to have all regulatory jurisdictions in the 
170.10 	state have the same safety standards with regard to the production, storage, transportation, 
170.11 	distribution, and use of hydrogen, fuel cells, and related technologies. The commissioner's 
170.12 	recommendations must, without limitation, include:
170.13 	(1) codes and standards that already exist for hydrogen, fuel cells, and related 
170.14 	technologies, and how the state should formalize their use;
170.15 	(2) codes and standards still under development by various official standard-making 
170.16 	bodies;
170.17 	(3) gaps between existing codes and standards, those under development, and those 
170.18 	that may still be needed but are not yet being developed;
170.19 	(4) the need for, and estimated cost of, additional education and training for 
170.20 	emergency management and code officials;
170.21 	(5) any changes needed to environmental and other permitting processes to 
170.22 	accommodate the commercialization of hydrogen, fuel cells, and related technologies; and
170.23 	(6) recommendations on appropriate codes and standards for educational and 
170.24 	research institutions.

170.25 	Sec. 32. HYDROGEN REFUELING STATION GRANTS.
 170.26 	In addition to the purposes specified in Laws 2005, chapter 97, article 13, section 
170.27 	4, for which the commissioner of commerce may make grants, the commissioner may 
170.28 	make grants under that law for the purpose of developing, deploying, and encouraging 
170.29 	commercially promising renewable hydrogen production systems and hydrogen end 
170.30 	uses in partnership with industry. The authority of the commissioner to make grants 
170.31 	and assessments under Laws 2005, chapter 97, article 13, section 4, continues until the 
170.32 	authorized grants and assessments are made.

170.33 	Sec. 33. OFF-SITE RENEWABLE DISTRIBUTED GENERATION.
 171.1 	The commissioner of commerce shall convene a broad group of interested 
171.2 	stakeholders to evaluate the feasibility and potential for the interconnection and parallel 
171.3 	operation of off-site renewable distributed generation in a manner consistent with 
171.4 	Minnesota Statutes, sections 216B.37 to 216B.43, and shall issue recommendations to 
171.5 	the chairs of the house of representatives and senate committees with jurisdiction over 
171.6 	energy issues by February 1, 2008.

171.7 	Sec. 34. DEFINITIONS.
 171.8 	For purposes of sections 32 to 34, the following definitions apply:
171.9 	(1) "terrestrial carbon sequestration" means the long-term storage of carbon in soil 
171.10 	and vegetation to prevent its collection in the atmosphere as carbon dioxide; and
171.11 	(2) "geologic carbon sequestration" means injecting carbon dioxide into underground 
171.12 	geologic formations where it can be stored for long periods of time to prevent its escape 
171.13 	to the atmosphere.

171.14 	Sec. 35. TERRESTRIAL CARBON SEQUESTRATION ACTIVITIES.
 171.15 		Subdivision 1.Study; scope. The Board of Regents of the University of Minnesota 
171.16 	is requested to conduct a study assessing the potential capacity for carbon sequestration in 
171.17 	Minnesota's terrestrial systems. The study must: 
171.18 	(1) conduct a statewide inventory and construct a database of lands across several 
171.19 	land types, such as forests, agricultural lands, peatlands, and wetlands, that have the 
171.20 	potential to sequester significant quantities of carbon and of lands that currently contain 
171.21 	large stocks of carbon that are at risk of being emitted to the atmosphere as a result of 
171.22 	changes in land use and climate; 
171.23 	(2) quantify the ability of various land use practices, such as the growth of different 
171.24 	species of crops, grasses, and trees, to sequester carbon and their impacts on other 
171.25 	ecological services of value, including air and water quality, biodiversity, and wildlife 
171.26 	habitat; 
171.27 	(3) identify a network of benchmark monitoring sites to measure the impact of 
171.28 	long-term, large-scale factors, such as changes in climate, carbon dioxide levels, and land 
171.29 	use, on the terrestrial carbon sequestration capacity of various land types, to improve 
171.30 	understanding of carbon-terrestrial interactions and dynamics; 
171.31 	(4) identify long-term demonstration projects to measure the impact of deliberate 
171.32 	sequestration practices, including the establishment of biofuel production systems, on 
171.33 	forest, agricultural, wetland, and prairie ecosystems; and 
172.1 	(5) evaluate current state policies and programs that affect the levels of terrestrial 
172.2 	sequestration on public and private lands and identify gaps and recommend policy changes 
172.3 	to increase sequestration rates.
172.4 		Subd. 2.Coordination of terrestrial carbon sequestration activities. Planning 
172.5 	and implementation of the study described in subdivision 1 will be coordinated by 
172.6 	the Minnesota Terrestrial Carbon Sequestration Initiative, a task force consisting of 
172.7 	representatives from the University of Minnesota, the Department of Agriculture, the 
172.8 	Board of Water and Soil Resources, the Department of Commerce, the Department 
172.9 	of Natural Resources, and the Pollution Control Agency and agricultural, forestry, 
172.10 	conservation, and business stakeholders.
172.11 		Subd. 3.Contracting. The University of Minnesota may contract with another 
172.12 	party to perform any of the tasks listed in subdivision 1.
172.13 		Subd. 4.Report. The commissioner of natural resources must submit a report 
172.14 	with the results of the study to the senate and house committees with jurisdiction over 
172.15 	environmental and energy policies no later than February 1, 2008.

172.16 	Sec. 36. GEOLOGIC CARBON SEQUESTRATION ASSESSMENT.
 172.17 		Subdivision 1.Study; scope. (a) The Minnesota Geological Survey shall conduct 
172.18 	a study assessing the potential capacity for geologic carbon sequestration in the 
172.19 	Midcontinent Rift system in Minnesota. The study must assess the potential of porous 
172.20 	and permeable sandstone layers deeper than one kilometer below the surface that are 
172.21 	capped by less permeable shale and must identify potential risks to carbon storage, such 
172.22 	as areas of low permeability in injection zones, low storage capacity, and potential seal 
172.23 	failure. The study must identify the most promising formations and geographic areas for 
172.24 	physical analysis of carbon sequestration potential. The study must review geologic 
172.25 	maps, published reports and surveys, and any relevant unpublished raw data with respect 
172.26 	to attributes that are pertinent for the long-term sequestration of carbon in geologic 
172.27 	formations, in particular, those that bear on formation injectivity, capacity, and seal 
172.28 	effectiveness. The study must examine the following characteristics of key sedimentary 
172.29 	units within the Midcontinent Rift system in Minnesota:
172.30 	(1) likely depth, temperature, and pressure; 
172.31 	(2) physical properties, including the ability to contain and transmit fluids; 
172.32 	(3) the type of rocks present; 
172.33 	(4) structure and geometry, including folds and faults; and 
172.34 	(5) hydrogeology, including water chemistry and water flow.
173.1 	(b) The commissioner of natural resources, in consultation with the Minnesota 
173.2 	Geological Survey, shall contract for a study to estimate the properties of the Midcontinent 
173.3 	Rift system in Minnesota, as described in paragraph (a), clauses (1) to (5), through the 
173.4 	use of computer models developed for similar geologic formations located outside of 
173.5 	Minnesota which have been studied in greater detail.
173.6 		Subd. 2.Consultation. The Minnesota Geological Survey shall consult with the 
173.7 	Minnesota Mineral Coordinating Committee, established in Minnesota Statutes, section 
173.8 	93.0015, in planning and implementing the study design.
173.9 		Subd. 3.Report. The commissioner of natural resources must submit a report 
173.10 	with the results of the study to the senate and house committees with jurisdiction over 
173.11 	environmental and energy policies no later than February 1, 2008.

173.12 	Sec. 37. ST. PAUL PORT AUTHORITY.
 173.13 	Notwithstanding Minnesota Statutes, section 465.717, the St. Paul Port Authority 
173.14 	may create a not-for-profit corporation for purposes of owning or operating, or both, a 
173.15 	steam and electricity producing facility to be located in St. Paul that uses primarily fuel 
173.16 	from an eligible energy technology as defined in Minnesota Statutes, section 216B.1691, 
173.17 	subdivision 1, except that it does not include mixed municipal solid waste as an eligible 
173.18 	energy technology. Steam produced by the facility may be used by a customer in a paper 
173.19 	recycling operation. Nothing in this section authorizes or prohibits the retail sale of energy 
173.20 	produced by the facility to other retail customers.

173.21 	Sec. 38. BIOFUEL PERMITTING REPORT.
 173.22 	By January 15, 2008, the Pollution Control Agency, the commissioner of natural 
173.23 	resources, and the Environmental Quality Board shall report to the house of representatives 
173.24 	and senate committees and divisions with jurisdiction over agriculture and environment 
173.25 	policy and budget on the process to issue permits for biofuel production facilities. The 
173.26 	report shall include:
173.27 	(1) information on the timing of the permits and measures taken to improve the 
173.28 	timing of the permitting process;
173.29 	(2) recommended changes to statutes, rules, procedures, or fees to improve the 
173.30 	biofuel facility permitting process and reduce the groundwater needed for production; and
173.31 	(3) other information or analysis that may be helpful in understanding or improving 
173.32 	the biofuel production facility permitting process.

173.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

174.1 	Sec. 39. WINONA COUNTY; ELECTRIC POWER PLANT.
 174.2 	The county of Winona may own, construct, acquire, purchase, issue bonds and 
174.3 	certificates of indebtedness for, maintain, and operate a wind energy conversion system, or 
174.4 	a portion of a wind energy conversion system, within its corporate limits, and may sell the 
174.5 	output from that facility at wholesale on such terms and conditions as the county board 
174.6 	deems is in the best interests of the public. With respect to any wind energy conversion 
174.7 	system, or any portion of a wind energy conversion system, the county may exercise the 
174.8 	powers granted to a municipal power agency and to a city under Minnesota Statutes, 
174.9 	sections 453.52, subdivisions 1, 6, 7, and 9 to 13; 453.54, subdivisions 1, 2, 4 to 6, 10, 11, 
174.10 	14, 15, and 17 to 21; 453.55; 453.57; 453.58, subdivisions 2, 3, and 4; 453.59; 453.60; 
174.11 	453.61; and 453.62, except that output from that wind energy conversion system may not 
174.12 	be sold or distributed at retail or provided for end use by the county. Minnesota Statutes, 
174.13 	section 453.58, subdivision 3, does not give the county the authority to enter into contracts 
174.14 	with a municipal power agency for the purchase, sale, exchange, or transmission of 
174.15 	electric energy and other services. 

174.16 	EFFECTIVE DATE. This section is effective the day after the governing body of 
174.17 	the county of Winona and its chief clerical officer comply with Minnesota Statutes, section 
174.18 	645.021, subdivisions 2 and 3.

174.19 	Sec. 40. APPLICATION OF RULES.
 174.20 	Minnesota Rules, parts 7831.0100; 7831.0200; 7831.0300; 7831.0400; 7831.0500; 
174.21 	7831.0600; 7831.0700; and 7831.0800, do not apply to a general rate case for a gas 
174.22 	or electric utility held before the commission. The Public Utilities Commission shall 
174.23 	timely adopt rules to conform with this section and Minnesota Statutes, section 216B.16, 
174.24 	subdivision 10, as amended by this act, under the exempt rule procedures of Minnesota 
174.25 	Statutes, section 14.388, subdivision 1, clause (3).

174.26 	Sec. 41. REVISOR'S INSTRUCTION.
 174.27 	The revisor of statutes must change the reference from "216B.095" to "216B.096" 
174.28 	wherever found in Minnesota Rules, chapter 7820.

174.29 	Sec. 42.  REPEALER.
 174.30 	(a) Minnesota Statutes 2006, section 216B.095, is repealed.
174.31 	(b) Minnesota Rules, parts 7820.1500; 7820.1600; 7820.1700; 7820.1750; 
174.32 	7820.1800; 7820.1900; 7820.2000; 7820.2100; 7820.2150; 7820.2200; and 7820.2300,
174.33 	are repealed.

175.1 	Sec. 43. EFFECTIVE DATE.
 175.2 	Sections 13, 39, and 40 are effective September 1, 2008.

175.3 	ARTICLE 3
175.4 	COMMERCE

175.5 	Section 1. Minnesota Statutes 2006, section 13.712, is amended by adding a 
175.6 	subdivision to read:
175.7 		Subd. 3.Vehicle protection product warrantors. Financial information provided 
175.8 	to the commissioner of commerce by vehicle protection product warrantors is classified 
175.9 	under section 59C.05, subdivision 3.

175.10 	EFFECTIVE DATE. This section is effective January 1, 2008.

175.11 	Sec. 2. Minnesota Statutes 2006, section 45.011, subdivision 1, is amended to read:
175.12 		Subdivision 1.Scope. As used in chapters 45 to 83, 155A,  332, 332A, 345, and 
175.13 	359, and sections 325D.30 to 325D.42, 326.83 to 326.991, and 386.61 to 386.78, unless 
175.14 	the context indicates otherwise, the terms defined in this section have the meanings given 
175.15 	them. 

175.16 	EFFECTIVE DATE. This section is effective January 1, 2008.

175.17 	Sec. 3. [45.24] LICENSE TECHNOLOGY FEES.
175.18 	(a) The commissioner may establish and maintain an electronic licensing database 
175.19 	system for license origination, renewal, and tracking the completion of continuing 
175.20 	education requirements by individual licensees who have continuing education 
175.21 	requirements, and other related purposes.
175.22 	(b) The commissioner shall pay for the cost of operating and maintaining the 
175.23 	electronic database system described in paragraph (a) through a technology surcharge 
175.24 	imposed upon the fee for license origination and renewal, for individual licenses that 
175.25 	require continuing education.
175.26 	(c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year 
175.27 	licensing period, except as otherwise provided in paragraph (f), and shall be payable at the 
175.28 	time of license origination and renewal.
175.29 	(d) The Commerce Department technology account is hereby created as an account 
175.30 	in the special revenue fund.
176.1 	(e) The commissioner shall deposit the surcharge permitted under this section in 
176.2 	the account created in paragraph (d), and funds in the account are appropriated to the 
176.3 	commissioner in the amounts needed for purposes of this section.
176.4 	(f) The commissioner shall temporarily reduce or suspend the surcharge as necessary 
176.5 	if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of 
176.6 	any calendar year and shall increase or decrease the surcharge as necessary to keep the 
176.7 	fund balance at an adequate level but not in excess of $2,000,000.

176.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

176.9 	Sec. 4. Minnesota Statutes 2006, section 46.04, subdivision 1, is amended to read:
176.10 		Subdivision 1.General. The commissioner of commerce, referred to in chapters 
176.11 	46 to 59A, and sections 332.12 to 332.29 chapter 332A, as the commissioner, is vested 
176.12 	with all the powers, authority, and privileges which, prior to the enactment of Laws 1909, 
176.13 	chapter 201, were conferred by law upon the public examiner, and shall take over all 
176.14 	duties in relation to state banks, savings banks, trust companies, savings associations, and 
176.15 	other financial institutions within the state which, prior to the enactment of chapter 201, 
176.16 	were imposed upon the public examiner. The commissioner of commerce shall exercise 
176.17 	a constant supervision, either personally or through the examiners herein provided for, 
176.18 	over the books and affairs of all state banks, savings banks, trust companies, savings 
176.19 	associations, credit unions, industrial loan and thrift companies, and other financial 
176.20 	institutions doing business within this state; and shall, through examiners, examine each 
176.21 	financial institution at least once every 24 calendar months. In satisfying this examination 
176.22 	requirement, the commissioner may accept reports of examination prepared by a federal 
176.23 	agency having comparable supervisory powers and examination procedures. With the 
176.24 	exception of industrial loan and thrift companies which do not have deposit liabilities 
176.25 	and licensed regulated lenders, it shall be the principal purpose of these examinations to 
176.26 	inspect and verify the assets and liabilities of each and so far investigate the character 
176.27 	and value of the assets of each institution as to determine with reasonable certainty that 
176.28 	the values are correctly carried on its books. Assets and liabilities shall be verified in 
176.29 	accordance with methods of procedure which the commissioner may determine to be 
176.30 	adequate to carry out the intentions of this section. It shall be the further purpose of 
176.31 	these examinations to assess the adequacy of capital protection and the capacity of the 
176.32 	institution to meet usual and reasonably anticipated deposit withdrawals and other cash 
176.33 	commitments without resorting to excessive borrowing or sale of assets at a significant 
176.34 	loss, and to investigate each institution's compliance with applicable laws and rules. Based 
176.35 	on the examination findings, the commissioner shall make a determination as to whether 
177.1 	the institution is being operated in a safe and sound manner. None of the above provisions 
177.2 	limits the commissioner in making additional examinations as deemed necessary or 
177.3 	advisable. The commissioner shall investigate the methods of operation and conduct of 
177.4 	these institutions and their systems of accounting, to ascertain whether these methods and 
177.5 	systems are in accordance with law and sound banking principles. The commissioner may 
177.6 	make requirements as to records as deemed necessary to facilitate the carrying out of the 
177.7 	commissioner's duties and to properly protect the public interest. The commissioner may 
177.8 	examine, or cause to be examined by these examiners, on oath, any officer, director, 
177.9 	trustee, owner, agent, clerk, customer, or depositor of any financial institution touching 
177.10 	the affairs and business thereof, and may issue, or cause to be issued by the examiners, 
177.11 	subpoenas, and administer, or cause to be administered by the examiners, oaths. In 
177.12 	case of any refusal to obey any subpoena issued under the commissioner's direction, 
177.13 	the refusal may at once be reported to the district court of the district in which the bank 
177.14 	or other financial institution is located, and this court shall enforce obedience to these 
177.15 	subpoenas in the manner provided by law for enforcing obedience to subpoenas of the 
177.16 	court. In all matters relating to official duties, the commissioner of commerce has the 
177.17 	power possessed by courts of law to issue subpoenas and cause them to be served and 
177.18 	enforced, and all officers, directors, trustees, and employees of state banks, savings banks, 
177.19 	trust companies, savings associations, and other financial institutions within the state, 
177.20 	and all persons having dealings with or knowledge of the affairs or methods of these 
177.21 	institutions, shall afford reasonable facilities for these examinations, make returns and 
177.22 	reports to the commissioner of commerce as the commissioner may require; attend and 
177.23 	answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books, 
177.24 	accounts, documents, and property as the commissioner may desire to inspect, and in all 
177.25 	things aid the commissioner in the performance of duties. 

177.26 	EFFECTIVE DATE. This section is effective January 1, 2008.

177.27 	Sec. 5. Minnesota Statutes 2006, section 46.05, is amended to read:
177.28 	46.05 SUPERVISION OVER FINANCIAL INSTITUTIONS.
177.29 	Every state bank, savings bank, trust company, savings association, debt 
177.30 	management services provider, and other financial institutions shall be at all times under 
177.31 	the supervision and subject to the control of the commissioner of commerce. If, and 
177.32 	whenever in the performance of duties, the commissioner finds it necessary to make a 
177.33 	special investigation of any financial institution under the commissioner's supervision, 
177.34 	and other than a complete examination, the commissioner shall make a charge therefor to 
178.1 	include only the necessary costs thereof. Such a fee shall be payable to the commissioner 
178.2 	on the commissioner's making a request for payment.

178.3 	EFFECTIVE DATE. This section is effective January 1, 2008.

178.4 	Sec. 6. Minnesota Statutes 2006, section 46.131, subdivision 2, is amended to read:
178.5 		Subd. 2.Assessment authority. Each bank, trust company, savings bank, savings 
178.6 	association, regulated lender, industrial loan and thrift company, credit union, motor 
178.7 	vehicle sales finance company, debt prorating agency management services provider and 
178.8 	insurance premium finance company organized under the laws of this state or required 
178.9 	to be administered by the commissioner of commerce shall pay into the state treasury its 
178.10 	proportionate share of the cost of maintaining the Department of Commerce.

178.11 	EFFECTIVE DATE. This section is effective January 1, 2008.

178.12 	Sec. 7. Minnesota Statutes 2006, section 47.19, is amended to read:
178.13 	47.19 CORPORATION MAY BE MEMBER OR STOCKHOLDER OF 
178.14 	FEDERAL AGENCY.
178.15 	Any corporation is hereby empowered and authorized to become a member of, 
178.16 	or stockholder in, any such agency, and to that end to purchase stock in, or securities 
178.17 	of, or deposit money with, such agency and/or to comply with any other conditions of 
178.18 	membership or credit; to borrow money from such agency upon such rates of interest, not 
178.19 	exceeding the contract rate of interest in this state, and upon such terms and conditions 
178.20 	as may be agreed upon by such corporation and such agency, for the purpose of making 
178.21 	loans, paying withdrawals, paying maturities, paying debts, and for any other purpose not 
178.22 	inconsistent with the objects of the corporation; provided, that the aggregate amount of the 
178.23 	indebtedness, so incurred by such corporation, which shall be outstanding at any time shall 
178.24 	not exceed 25 35 percent of the then total assets of the corporation; to assign, pledge and 
178.25 	hypothecate its bonds, mortgages or other assets; and, in case of savings associations, to 
178.26 	repledge with such agency the shares of stock in such association which any owner thereof 
178.27 	may have pledged as collateral security, without obtaining the consent thereunto of such 
178.28 	owner, as security for the repayment of the indebtedness so created by such corporation 
178.29 	and as evidenced by its note or other evidence of indebtedness given for such borrowed 
178.30 	money; and to do any and all things which shall or may be necessary or convenient in 
178.31 	order to comply with and to obtain the benefits of the provisions of any act of Congress 
178.32 	creating such agency, or any amendments thereto.

179.1 	Sec. 8. Minnesota Statutes 2006, section 47.59, subdivision 6, is amended to read:
179.2 		Subd. 6.Additional charges. (a) For purposes of this subdivision, "financial 
179.3 	institution" includes a person described in subdivision 4, paragraph (a). In addition to the 
179.4 	finance charges permitted by this section, a financial institution may contract for and 
179.5 	receive the following additional charges that may be included in the principal amount 
179.6 	of the loan or credit sale unpaid balances:
179.7 	(1) official fees and taxes;
179.8 	(2) charges for insurance as described in paragraph (b);
179.9 	(3) with respect to a loan or credit sale contract secured by real estate, the following 
179.10 	"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of 
179.11 	circumvention or evasion of this section:
179.12 	(i) fees or premiums for title examination, abstract of title, title insurance, surveys, 
179.13 	or similar purposes;
179.14 	(ii) fees for preparation of a deed, mortgage, settlement statement, or other 
179.15 	documents, if not paid to the financial institution;
179.16 	(iii) escrows for future payments of taxes, including assessments for improvements, 
179.17 	insurance, and water, sewer, and land rents;
179.18 	(iv) fees for notarizing deeds and other documents;
179.19 	(v) appraisal and credit report fees; and
179.20 	(vi) fees for determining whether any portion of the property is located in a flood 
179.21 	zone and fees for ongoing monitoring of the property to determine changes, if any, 
179.22 	in flood zone status;
179.23 	(4) a delinquency charge on a payment, including the minimum payment due in 
179.24 	connection with open-end credit, not paid in full on or before the tenth day after its due 
179.25 	date in an amount not to exceed five percent of the amount of the payment or $5.20, 
179.26 	whichever is greater;
179.27 	(5) for a returned check or returned automatic payment withdrawal request, an 
179.28 	amount not in excess of the service charge limitation in section 604.113, except that, on 
179.29 	a loan transaction that is a consumer small loan as defined in section 47.60, subdivision 
179.30 	1, paragraph (a), in which cash is advanced in exchange for a personal check, the civil 
179.31 	penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded 
179.32 	or assessed against the borrower; and 
179.33 	(6) charges for other benefits, including insurance, conferred on the borrower that 
179.34 	are of a type that is not for credit.
180.1 	(b) An additional charge may be made for insurance written in connection with the 
180.2 	loan or credit sale contract, which may be included in the principal amount of the loan or 
180.3 	credit sale unpaid balances:
180.4 	(1) with respect to insurance against loss of or damage to property, or against 
180.5 	liability arising out of the ownership or use of property, if the financial institution furnishes 
180.6 	a clear, conspicuous, and specific statement in writing to the borrower setting forth the 
180.7 	cost of the insurance if obtained from or through the financial institution and stating that 
180.8 	the borrower may choose the person through whom the insurance is to be obtained;
180.9 	(2) with respect to credit insurance or mortgage insurance providing life, accident, 
180.10 	health, or unemployment coverage, if the insurance coverage is not required by the 
180.11 	financial institution, and this fact is clearly and conspicuously disclosed in writing to 
180.12 	the borrower, and the borrower gives specific, dated, and separately signed affirmative 
180.13 	written indication of the borrower's desire to do so after written disclosure to the borrower 
180.14 	of the cost of the insurance; and
180.15 	(3) with respect to the vendor's single interest insurance, but only (i) to the extent 
180.16 	that the insurer has no right of subrogation against the borrower; and (ii) to the extent that 
180.17 	the insurance does not duplicate the coverage of other insurance under which loss is 
180.18 	payable to the financial institution as its interest may appear, against loss of or damage 
180.19 	to property for which a separate charge is made to the borrower according to clause (1); 
180.20 	and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the 
180.21 	financial institution to the borrower setting forth the cost of the insurance if obtained from 
180.22 	or through the financial institution and stating that the borrower may choose the person 
180.23 	through whom the insurance is to be obtained.
180.24 	(c) In addition to the finance charges and other additional charges permitted by 
180.25 	this section, a financial institution may contract for and receive the following additional 
180.26 	charges in connection with open-end credit, which may be included in the principal 
180.27 	amount of the loan or balance upon which the finance charge is computed:
180.28 	(1) annual charges, not to exceed $50 per annum, payable in advance, for the 
180.29 	privilege of opening and maintaining open-end credit;
180.30 	(2) charges for the use of an automated teller machine;
180.31 	(3) charges for any monthly or other periodic payment period in which the borrower 
180.32 	has exceeded or, except for the financial institution's dishonor would have exceeded, 
180.33 	the maximum approved credit limit, in an amount not in excess of the service charge 
180.34 	permitted in section 604.113; 
180.35 	(4) charges for obtaining a cash advance in an amount not to exceed the service 
180.36 	charge permitted in section 604.113; and 
181.1 	(5) charges for check and draft copies and for the replacement of lost or stolen 
181.2 	credit cards.
181.3 	(d) In addition to the finance charges and other additional charges permitted by this 
181.4 	section, a financial institution may contract for and receive a onetime loan administrative 
181.5 	fee not exceeding $25 in connection with closed-end credit, which may be included in the 
181.6 	principal balance upon which the finance charge is computed. This paragraph applies only 
181.7 	to closed-end credit in an original principal amount of $4,320 or less. The determination 
181.8 	of an original principal amount must exclude the administrative fee contracted for and 
181.9 	received according to this paragraph.

181.10 	Sec. 9. Minnesota Statutes 2006, section 47.60, subdivision 2, is amended to read:
181.11 		Subd. 2.Authorization, terms, conditions, and prohibitions. (a) In lieu of the 
181.12 	interest, finance charges, or fees in any other law, a consumer small loan lender may 
181.13 	charge the following:
181.14 	(1) on any amount up to and including $50, a charge of $5.50 may be added;
181.15 	(2) on amounts in excess of $50, but not more than $100, a charge may be added 
181.16 	equal to ten percent of the loan proceeds plus a $5 administrative fee;
181.17 	(3) on amounts in excess of $100, but not more than $250, a charge may be 
181.18 	added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5 
181.19 	administrative fee;
181.20 	(4) for amounts in excess of $250 and not greater than the maximum in subdivision 
181.21 	1, paragraph (a), a charge may be added equal to six percent of the loan proceeds with a 
181.22 	minimum of $17.50 plus a $5 administrative fee.
181.23 	(b) The term of a loan made under this section shall be for no more than 30 calendar 
181.24 	days.
181.25 	(c) After maturity, the contract rate must not exceed 2.75 percent per month of the 
181.26 	remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly 
181.27 	rate in the contract for each calendar day the balance is outstanding. 
181.28 	(d) No insurance charges or other charges must be permitted to be charged, collected, 
181.29 	or imposed on a consumer small loan except as authorized in this section.
181.30 	(e) On a loan transaction in which cash is advanced in exchange for a personal 
181.31 	check, a return check charge may be charged as authorized by section 604.113, subdivision 
181.32 	2, paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph 
181.33 	(b), may not be demanded or assessed against the borrower.
181.34 	(f) A loan made under this section must not be repaid by the proceeds of another 
181.35 	loan made under this section by the same lender or related interest. The proceeds from a 
182.1 	loan made under this section must not be applied to another loan from the same lender or 
182.2 	related interest. No loan to a single borrower made pursuant to this section shall be split or 
182.3 	divided and no single borrower shall have outstanding more than one loan with the result 
182.4 	of collecting a higher charge than permitted by this section or in an aggregate amount of 
182.5 	principal exceed at any one time the maximum of $350.

182.6 	Sec. 10. Minnesota Statutes 2006, section 47.62, subdivision 1, is amended to read:
182.7 		Subdivision 1.General authority. Any person may establish and maintain one 
182.8 	or more electronic financial terminals. Any financial institution may provide for its 
182.9 	customers the use of an electronic financial terminal by entering into an agreement with 
182.10 	any person who has established and maintains one or more electronic financial terminals if 
182.11 	that person authorizes use of the electronic financial terminal to all financial institutions 
182.12 	on a nondiscriminatory basis pursuant to section 47.64. Electronic financial terminals to 
182.13 	be established and maintained in this state by financial institutions located in states other 
182.14 	than Minnesota must file a notification to the commissioner as required in this section. 
182.15 	The notification may be in the form lawfully required by the state regulator responsible 
182.16 	for the examination and supervision of that financial institution. If there is no such 
182.17 	requirement, then notification must be in the form required by this section for Minnesota 
182.18 	financial institutions.

182.19 	Sec. 11. Minnesota Statutes 2006, section 47.75, subdivision 1, is amended to read:
182.20 		Subdivision 1.Retirement, health savings, and medical savings accounts. (a) A 
182.21 	commercial bank, savings bank, savings association, credit union, or industrial loan and 
182.22 	thrift company may act as trustee or custodian:
182.23 	(1) under the Federal Self-Employed Individual Tax Retirement Act of 1962, as 
182.24 	amended;
182.25 	(2) of a medical savings account under the Federal Health Insurance Portability and 
182.26 	Accountability Act of 1996, as amended;
182.27 	(3) of a health savings account under the Medicare Prescription Drug, Improvement, 
182.28 	and Modernization Act of 2003, as amended; and
182.29 	(4) under the Federal Employee Retirement Income Security Act of 1974, as 
182.30 	amended.
182.31 	(b) The trustee or custodian may accept the trust funds if the funds are invested 
182.32 	only in savings accounts or time deposits in the commercial bank, savings bank, savings 
182.33 	association, credit union, or industrial loan and thrift company, except that health savings 
182.34 	accounts may also be invested in transaction accounts. Health savings accounts invested in 
183.1 	transaction accounts shall not be subject to the restrictions in section 48.512, subdivision 
183.2 	3. All funds held in the fiduciary capacity may be commingled by the financial institution 
183.3 	in the conduct of its business, but individual records shall be maintained by the fiduciary 
183.4 	for each participant and shall show in detail all transactions engaged under authority 
183.5 	of this subdivision.

183.6 	EFFECTIVE DATE.  This section is effective the day following final enactment.

183.7 	Sec. 12. Minnesota Statutes 2006, section 48.15, subdivision 4, is amended to read:
183.8 		Subd. 4.Retirement, health savings, and medical savings accounts. (a) A state 
183.9 	bank may act as trustee or custodian:
183.10 	(1) of a self-employed retirement plan under the Federal Self-Employed Individual 
183.11 	Tax Retirement Act of 1962, as amended;
183.12 	(2) of a medical savings account under the Federal Health Insurance Portability and 
183.13 	Accountability Act of 1996, as amended;
183.14 	(3) of a health savings account under the Medicare Prescription Drug, Improvement, 
183.15 	and Modernization Act of 2003, as amended; and
183.16 	(4) of an individual retirement account under the Federal Employee Retirement 
183.17 	Income Security Act of 1974, as amended, if the bank's duties as trustee or custodian are 
183.18 	essentially ministerial or custodial in nature and the funds are invested only (i) in the 
183.19 	bank's own savings or time deposits, except that health savings accounts may also be 
183.20 	invested in transaction accounts. Health savings accounts invested in transaction accounts 
183.21 	shall not be subject to the restrictions in section 48.512, subdivision 3; or (ii) in any 
183.22 	other assets at the direction of the customer if the bank does not exercise any investment 
183.23 	discretion, invest the funds in collective investment funds administered by it, or provide 
183.24 	any investment advice with respect to those account assets.
183.25 	(b) Affiliated discount brokers may be utilized by the bank acting as trustee or 
183.26 	custodian for self-directed IRAs, if specifically authorized and directed in appropriate 
183.27 	documents. The relationship between the affiliated broker and the bank must be fully 
183.28 	disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should 
183.29 	be accurately disclosed. Provisions should be made for disclosure of any changes in 
183.30 	commission rates prior to their becoming effective. The affiliated broker may not provide 
183.31 	investment advice to the customer.
183.32 	(c) All funds held in the fiduciary capacity may be commingled by the financial 
183.33 	institution in the conduct of its business, but individual records shall be maintained by 
183.34 	the fiduciary for each participant and shall show in detail all transactions engaged under 
183.35 	authority of this subdivision.
184.1 	(d) The authority granted by this section is in addition to, and not limited by, section 
184.2 	47.75.

184.3 	EFFECTIVE DATE.  This section is effective the day following final enactment.

184.4 	Sec. 13. Minnesota Statutes 2006, section 58.04, subdivision 1, is amended to read:
184.5 		Subdivision 1.Residential mortgage originator licensing requirements. (a) 
184.6 	Beginning August 1, 1999, No person shall act as a residential mortgage originator, or 
184.7 	make residential mortgage loans without first obtaining a license from the commissioner 
184.8 	according to the licensing procedures provided in this chapter.
184.9 	(b) A licensee must be either a partnership, limited liability partnership, association, 
184.10 	limited liability company, corporation, or other form of business organization, and must 
184.11 	have and maintain at all times one of the following: approval as a mortgagee by either the 
184.12 	federal Department of Housing and Urban Development or the Federal National Mortgage 
184.13 	Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety 
184.14 	bond or irrevocable letter of credit in the amount of $50,000. Net worth, net of intangibles, 
184.15 	must be calculated in accordance with generally accepted accounting principles.
184.16 	(c) The following persons are exempt from the residential mortgage originator 
184.17 	licensing requirements:
184.18 	(1) an employee of one mortgage originator licensee or one person holding a 
184.19 	certificate of exemption;
184.20 	(2) a person licensed as a real estate broker under chapter 82 who is not licensed to 
184.21 	another real estate broker;
184.22 	(3) an individual real estate licensee who is licensed to a real estate broker as 
184.23 	described in clause (2) if:
184.24 	(i) the individual licensee acts only under the name, authority, and supervision of the 
184.25 	broker to whom the licensee is licensed;
184.26 	(ii) the broker to whom the licensee is licensed obtains a certificate of exemption 
184.27 	according to section 58.05, subdivision 2; 
184.28 	(iii) the broker does not collect an advance fee for its residential mortgage-related 
184.29 	activities; and
184.30 	(iv) the residential mortgage origination activities are incidental to the real estate 
184.31 	licensee's primary activities as a real estate broker or salesperson;
184.32 	(4) an individual licensed as a property/casualty or life/health insurance agent under 
184.33 	chapter 60K if:
184.34 	(i) the insurance agent acts on behalf of only one residential mortgage originator, 
184.35 	which is in compliance with chapter 58;
185.1 	(ii) the insurance agent has entered into a written contract with the mortgage 
185.2 	originator under the terms of which the mortgage originator agrees to accept responsibility 
185.3 	for the insurance agent's residential mortgage-related activities;
185.4 	(iii) the insurance agent obtains a certificate of exemption under section 58.05, 
185.5 	subdivision 2; and 
185.6 	(iv) the insurance agent does not collect an advance fee for the insurance agent's 
185.7 	residential mortgage-related activities;
185.8 	(5) (1) a person who is not in the business of making residential mortgage loans and 
185.9 	who makes no more than three such loans, with its own funds, during any 12-month period;
185.10 	(6) (2) a financial institution as defined in section 58.02, subdivision 10; 
185.11 	(7) (3) an agency of the federal government, or of a state or municipal government;
185.12 	(8) (4) an employee or employer pension plan making loans only to its participants;
185.13 	(9) (5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result 
185.14 	of a specific order issued by a court of competent jurisdiction; or
185.15 	(10) (6) a person exempted by order of the commissioner.

185.16 	Sec. 14. Minnesota Statutes 2006, section 58.05, is amended to read:
185.17 	58.05 EXEMPTIONS FROM LICENSE.
185.18 		Subdivision 1.Exempt person. An exempt person as defined by section 58.04, 
185.19 	subdivision 1, paragraph (b) (c), and subdivision 2, paragraph (b), is exempt from the 
185.20 	licensing requirements of this chapter, but is subject to all other provisions of this chapter. 
185.21 		Subd. 3.Certificate of exemption. A person must obtain a certificate of exemption 
185.22 	from the commissioner to qualify as an exempt person under section 58.04, subdivision 
185.23 	1, paragraph (b) (c), as a real estate broker under clause (2), an insurance agent under 
185.24 	clause (4), a financial institution under clause (6) (2), or by order of the commissioner 
185.25 	under clause (10) (6); or under section 58.04, subdivision 2, paragraph (b), as a financial 
185.26 	institution under clause (4) (3), or by order of the commissioner under clause (8) (7). 

185.27 	Sec. 15. Minnesota Statutes 2006, section 58.06, subdivision 2, is amended to read:
185.28 		Subd. 2.Application contents. (a) The application must contain the name and 
185.29 	complete business address or addresses of the license applicant. If The license applicant is
185.30 	must be a partnership, limited liability partnership, association, limited liability company, 
185.31 	corporation, or other form of business organization, and the application must contain the 
185.32 	names and complete business addresses of each partner, member, director, and principal 
185.33 	officer. The application must also include a description of the activities of the license 
185.34 	applicant, in the detail and for the periods the commissioner may require.
186.1 	(b) An applicant must submit one of the following:
186.2 	(1) evidence which shows, to the commissioner's satisfaction, that either the federal 
186.3 	Department of Housing and Urban Development or the Federal National Mortgage 
186.4 	Association has approved the applicant as a mortgagee;
186.5 	(2) a surety bond or irrevocable letter of credit in the amount of not less than 
186.6 	$50,000 in a form approved by the commissioner, issued by an insurance company or bank 
186.7 	authorized to do so in this state. The bond or irrevocable letter of credit must be available 
186.8 	for the recovery of expenses, fines, and fees levied by the commissioner under this chapter 
186.9 	and for losses incurred by borrowers. The bond or letter of credit must be submitted with 
186.10 	the license application, and evidence of continued coverage must be submitted with each 
186.11 	renewal. Any change in the bond or letter of credit must be submitted for approval by the 
186.12 	commissioner within ten days of its execution; or
186.13 	(3) a copy of the applicant's most recent audited financial statement, including 
186.14 	balance sheet, statement of income or loss, statements of changes in shareholder equity, 
186.15 	and statement of changes in financial position. Financial statements must be as of a date 
186.16 	within 12 months of the date of application.
186.17 	(c) The application must also include all of the following:
186.18 	(a) (1) an affirmation under oath that the applicant:
186.19 	(1) will maintain competent staff and adequate staffing levels, through direct 
186.20 	employees or otherwise, to meet the requirements of this chapter; (i) is in compliance 
186.21 	with the requirements of section 58.125;
186.22 	(ii) will maintain a perpetual roster of individuals employed as residential mortgage 
186.23 	originators, including employees and independent contractors, which includes the date that 
186.24 	mandatory initial education was completed. In addition, the roster must be made available 
186.25 	to the commissioner on demand, within three business days of the commissioner's request;
186.26 	(2) (iii) will advise the commissioner of any material changes to the information 
186.27 	submitted in the most recent application within ten days of the change;
186.28 	(3) (iv) will advise the commissioner in writing immediately of any bankruptcy 
186.29 	petitions filed against or by the applicant or licensee;
186.30 	(4) is financially solvent; (v) will maintain at all times either a net worth, net of 
186.31 	intangibles, of at least $250,000 or a surety bond or irrevocable letter of credit in the 
186.32 	amount of at least $50,000;
186.33 	(5) (vi) complies with federal and state tax laws; and
186.34 	(6) (vii) complies with sections 345.31 to 345.60, the Minnesota unclaimed property 
186.35 	law; and
186.36 	(7) is, or that a person in control of the license applicant is, at least 18 years of age;
187.1 	(b) (2) information as to the mortgage lending, servicing, or brokering experience 
187.2 	of the applicant and persons in control of the applicant;
187.3 	(c) (3) information as to criminal convictions, excluding traffic violations, of persons 
187.4 	in control of the license applicant;
187.5 	(d) (4) whether a court of competent jurisdiction has found that the applicant or 
187.6 	persons in control of the applicant have engaged in conduct evidencing gross negligence, 
187.7 	fraud, misrepresentation, or deceit in performing an act for which a license is required 
187.8 	under this chapter;
187.9 	(e) (5) whether the applicant or persons in control of the applicant have been the 
187.10 	subject of: an order of suspension or revocation, cease and desist order, or injunctive 
187.11 	order, or order barring involvement in an industry or profession issued by this or another 
187.12 	state or federal regulatory agency or by the Secretary of Housing and Urban Development 
187.13 	within the ten-year period immediately preceding submission of the application; and
187.14 	(f) (6) other information required by the commissioner.

187.15 	Sec. 16. Minnesota Statutes 2006, section 58.06, is amended by adding a subdivision 
187.16 	to read:
187.17 		Subd. 3.Waiver. The commissioner may, for good cause shown, waive any 
187.18 	requirement of this section with respect to an initial license application or to permit a 
187.19 	license applicant to submit substituted information in its license application in lieu of 
187.20 	the information required by this section.

187.21 	Sec. 17. Minnesota Statutes 2006, section 58.08, subdivision 3, is amended to read:
187.22 		Subd. 3.Exemption. Subdivisions 1 and Subdivision 2 do does not apply to 
187.23 	mortgage originators or mortgage servicers who are approved as seller/servicers by the 
187.24 	Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

187.25 	Sec. 18. Minnesota Statutes 2006, section 58.10, subdivision 1, is amended to read:
187.26 		Subdivision 1.Amounts. The following fees must be paid to the commissioner:
187.27 	(1) for an initial residential mortgage originator license, $850 $2,125, $50 of which 
187.28 	is credited to the consumer education account in the special revenue fund;
187.29 	(2) for a renewal license, $450 $1,125, $50 of which is credited to the consumer 
187.30 	education account in the special revenue fund;
187.31 	(3) for an initial residential mortgage servicer's license, $1,000;
187.32 	(4) for a renewal license, $500; and
187.33 	(5) for a certificate of exemption, $100.

188.1 	Sec. 19. [58.115] EXAMINATIONS.
188.2 	The commissioner has under this chapter the same powers with respect to 
188.3 	examinations that the commissioner has under section 46.04, including the authority to 
188.4 	charge for the direct costs of the examination, including travel and per diem expenses.

188.5 	Sec. 20. [58.126] EDUCATION REQUIREMENT.
188.6 	No individual shall engage in residential mortgage origination or make residential 
188.7 	mortgage loans, whether as an employee or independent contractor, before the completion 
188.8 	of 15 hours of educational training which has been approved by the commissioner, and 
188.9 	covering state and federal laws concerning residential mortgage lending.

188.10 	EFFECTIVE DATE. This section is effective March 1, 2008.

188.11 	Sec. 21. [59C.01] SHORT TITLE.
188.12 	This chapter may be cited as the Vehicle Protection Product Act.

188.13 	EFFECTIVE DATE. This section is effective January 1, 2008.

188.14 	Sec. 22. [59C.02] DEFINITIONS.
188.15 		Subdivision 1.Terms. For purposes of this chapter, the terms defined in subdivisions 
188.16 	2 to 11 have the meanings given them.
188.17 		Subd. 2.Administrator. "Administrator" means a third party other than the 
188.18 	warrantor who is designated by the warrantor to be responsible for the administration 
188.19 	of vehicle protection product warranties.
188.20 		Subd. 3.Commissioner. "Commissioner" means the commissioner of commerce.
188.21 		Subd. 4.Department. "Department" means the Department of Commerce.
188.22 		Subd. 5.Incidental costs. "Incidental costs" means expenses specified in the 
188.23 	warranty incurred by the warranty holder related to the failure of the vehicle protection 
188.24 	product to perform as provided in the warranty. Incidental costs may include, without 
188.25 	limitation, insurance policy deductibles, rental vehicle charges, the difference between the 
188.26 	actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, 
188.27 	sales taxes, registration fees, transaction fees, and mechanical inspection fees.
188.28 		Subd. 6.Service contract. "Service contract" means a contract or agreement as 
188.29 	regulated under chapter 59B.
188.30 		Subd. 7.Vehicle protection product. "Vehicle protection product" means a vehicle 
188.31 	protection device, system, or service that:
188.32 	(1) is installed on or applied to a vehicle;
189.1 	(2) is designed to prevent loss or damage to a vehicle from a specific cause; and
189.2 	(3) includes a written warranty. 
189.3 	For purposes of this section, vehicle protection product includes, without limitation, 
189.4 	alarm systems; body part marking products; steering locks; window etch products; pedal 
189.5 	and ignition locks; fuel and ignition kill switches; and electronic, radio, and satellite 
189.6 	tracking devices.
189.7 		Subd. 8.Vehicle protection product warranty or warranty. "Vehicle protection 
189.8 	product warranty" or "warranty" means, for the purposes of this chapter, a written 
189.9 	agreement by a warrantor that provides if the vehicle protection product fails to prevent 
189.10 	loss or damage to a vehicle from a specific cause, that the warranty holder must be 
189.11 	paid specified incidental costs by the warrantor as a result of the failure of the vehicle 
189.12 	protection product to perform pursuant to the terms of the warranty.
189.13 		Subd. 9.Vehicle protection product warrantor or warrantor. "Vehicle protection 
189.14 	product warrantor" or "warrantor," for the purposes of this chapter, means a person who is 
189.15 	contractually obligated to the warranty holder under the terms of the vehicle protection 
189.16 	product warranty agreement. Warrantor does not include an authorized insurer providing a 
189.17 	warranty reimbursement insurance policy.
189.18 		Subd. 10.Warranty holder. "Warranty holder," for the purposes of this chapter, 
189.19 	means the person who purchases a vehicle protection product or who is a permitted 
189.20 	transferee.
189.21 		Subd. 11.Warranty reimbursement insurance policy. "Warranty reimbursement 
189.22 	insurance policy" means a policy of insurance that is issued to the vehicle protection 
189.23 	product warrantor to provide reimbursement to, or to pay on behalf of, the warrantor all 
189.24 	covered contractual obligations incurred by the warrantor under the terms and conditions 
189.25 	of the insured vehicle protection product warranties sold by the warrantor.

189.26 	EFFECTIVE DATE. This section is effective January 1, 2008.

189.27 	Sec. 23. [59C.03] SCOPE AND EXEMPTIONS.
189.28 	(a) No vehicle protection product may be sold or offered for sale in this state unless 
189.29 	the seller, warrantor, and administrator, if any, comply with the provisions of this chapter.
189.30 	(b) Vehicle protection product warrantors and related vehicle protection product 
189.31 	sellers and warranty administrators complying with this chapter are not required to comply 
189.32 	with and are not subject to any other provision of chapters 59B to 72A, except that section 
189.33 	72A.20, subdivision 38, shall apply to vehicle protection product warranties in the same 
189.34 	manner it applies to service contracts.
190.1 	(c) Service contract providers who do not sell vehicle protection products are not 
190.2 	subject to the requirements of this chapter and sales of vehicle protection products are 
190.3 	exempt from the requirements of chapter 59B.
190.4 	(d) Warranties, indemnity agreements, and guarantees that are not provided as a part 
190.5 	of a vehicle protection product are not subject to the provisions of this chapter.

190.6 	EFFECTIVE DATE. This section is effective January 1, 2008.

190.7 	Sec. 24. [59C.04] REGISTRATION AND FILING REQUIREMENTS OF 
190.8 	WARRANTORS.
190.9 		Subdivision 1.General requirement.   A person may not operate as a warrantor or 
190.10 	represent to the public that the person is a warrantor unless the person is registered with 
190.11 	the department on a form prescribed by the commissioner.
190.12 		Subd. 2.Registration records. A registrant shall file a warrantor registration 
190.13 	record annually and shall update it within 30 days of any change. A registration record 
190.14 	must contain the following information:
190.15 	(1) the warrantor's name, any fictitious names under which the warrantor does 
190.16 	business in the state, principal office address, and telephone number;
190.17 	(2) the name and address of the warrantor's agent for service of process in the state if 
190.18 	other than the warrantor;
190.19 	(3) the names of the warrantor's executive officer or officers directly responsible for 
190.20 	the warrantor's vehicle protection product business;
190.21 	(4) the name, address, and telephone number of any administrators designated by 
190.22 	the warrantor to be responsible for the administration of vehicle protection product 
190.23 	warranties in this state;
190.24 	(5) a copy of the warranty reimbursement insurance policy or policies or other 
190.25 	financial information required by section 59C.05;
190.26 	(6) a copy of each warranty the warrantor proposes to use in this state; and 
190.27 	(7) a statement indicating under which provision of section 59C.05 the warrantor 
190.28 	qualifies to do business in this state as a warrantor.
190.29 		Subd. 3.Registration fee. The commissioner may charge each registrant a 
190.30 	reasonable fee to offset the cost of processing the registration and maintaining the records 
190.31 	in an amount of $250 annually. The information in subdivision 2, clauses (1) and (2), must 
190.32 	be made available to the public.
190.33 		Subd. 4.Renewal. The registrant will have 30 days to complete the renewal of the 
190.34 	registration before the commissioner suspends the registration.
191.1 		Subd. 5.Exception.  An administrator or person who sells or solicits a sale of a 
191.2 	vehicle protection product but who is not a warrantor shall not be required to register as a 
191.3 	warrantor or be licensed under the insurance laws of this state to sell vehicle protection 
191.4 	products.

191.5 	EFFECTIVE DATE. This section is effective January 1, 2008.

191.6 	Sec. 25. [59C.05] FINANCIAL RESPONSIBILITY.
191.7 		Subdivision 1.General requirements. No vehicle protection product may be sold, 
191.8 	or offered for sale in this state unless the warrantor meets either the requirements of 
191.9 	subdivision 2 or 3 in order to ensure adequate performance under the warranty. No other 
191.10 	financial security requirements or financial standards for warrantors is required.
191.11 		Subd. 2.Warranty reimbursement insurance policy. The vehicle protection 
191.12 	product warrantor shall be insured under a warranty reimbursement insurance policy 
191.13 	issued by an insurer authorized to do business in this state which provides that:
191.14 	(1) the insurer will pay to, or on behalf of the warrantor, 100 percent of all sums 
191.15 	that the warrantor is legally obligated to pay according to the warrantor's contractual 
191.16 	obligations under the warrantor's vehicle protection product warranty;
191.17 	(2) a true and correct copy of the warranty reimbursement insurance policy has been 
191.18 	filed with the commissioner by the warrantor; and
191.19 	(3) the policy contains the provision required in section 59C.06.
191.20 		Subd. 3.Network or stockholder's equity. (1) The vehicle protection product 
191.21 	warrantor, or its parent company in accordance with clause (2), shall maintain a net worth 
191.22 	or stockholders' equity of $50,000,000; and
191.23 	(2) the warrantor shall provide the commissioner with a copy of the warrantor's or 
191.24 	the warrantor's parent company's most recent Form 10-K or Form 20-F filed with the 
191.25 	Securities and Exchange Commission within the last calendar year or, if the warrantor 
191.26 	does not file with the Securities and Exchange Commission, a copy of the warrantor or 
191.27 	the warrantor's parent company's audited financial statements that shows a net worth of 
191.28 	the warrantor or its parent company of at least $50,000,000. If the warrantor's parent 
191.29 	company's Form 10-K, Form 20-F, or audited financial statements are filed to meet 
191.30 	the warrantor's financial stability requirement, then the parent company shall agree to 
191.31 	guarantee the obligations of the warrantor relating to warranties issued by the warrantor in 
191.32 	this state. The financial information provided to the commissioner under this paragraph 
191.33 	is trade secret information for purposes of section 13.37.

191.34 	EFFECTIVE DATE. This section is effective January 1, 2008.

192.1 	Sec. 26. [59C.06] WARRANTY REIMBURSEMENT POLICY 
192.2 	REQUIREMENTS.
192.3 	No warranty reimbursement insurance policy may be issued, sold, or offered for sale 
192.4 	in this state unless the policy meets the following conditions:
192.5 	(1) the policy states that the issuer of the policy will reimburse, or pay on behalf of 
192.6 	the vehicle protection product warrantor, all covered sums that the warrantor is legally 
192.7 	obligated to pay, or will provide all service that the warrantor is legally obligated to 
192.8 	perform according to the warrantor's contractual obligations under the provisions of the 
192.9 	insured warranties sold by the warrantor;
192.10 	(2) the policy states that in the event payment due under the terms of the warranty is 
192.11 	not provided by the warrantor within 60 days after proof of loss has been filed according 
192.12 	to the terms of the warranty by the warranty holder, the warranty holder may file directly 
192.13 	with the warranty reimbursement insurance company for reimbursement;
192.14 	(3) the policy provides that a warranty reimbursement insurance company that 
192.15 	insures a warranty is deemed to have received payment of the premium if the warranty 
192.16 	holder paid for the vehicle protection product and the insurer's liability under the policy 
192.17 	shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the 
192.18 	issuance of a warranty to the insurer; and
192.19 	(4) the policy has the following provisions regarding cancellation of the policy:
192.20 	(i) the issuer of a reimbursement insurance policy shall not cancel the policy until a 
192.21 	notice of cancellation in writing has been mailed or delivered to the commissioner and 
192.22 	each insured warrantor;
192.23 	(ii) the cancellation of a reimbursement insurance policy shall not reduce the issuer's 
192.24 	responsibility for vehicle protection products sold prior to the date of cancellation; and
192.25 	(iii) in the event an insurer cancels a policy that a warrantor has filed with the 
192.26 	commissioner, the warrantor shall do either of the following:
192.27 	(A) file a copy of a new policy with the commissioner, before the termination of 
192.28 	the prior policy, providing no lapse in coverage following the termination of the prior 
192.29 	policy; or 
192.30 	(B) discontinue offering warranties as of the termination date of the policy until a 
192.31 	new policy becomes effective and is accepted by the commissioner.

192.32 	EFFECTIVE DATE. This section is effective January 1, 2008.

192.33 	Sec. 27. [59C.07] DISCLOSURE TO WARRANTY HOLDER.
192.34 	A vehicle protection product warranty must not be sold or offered for sale in this 
192.35 	state unless the warranty:
193.1 	(1) states, "The obligations of the warrantor to the warranty holder are guaranteed 
193.2 	under a warranty reimbursement insurance policy" if the warrantor elects to meet its 
193.3 	financial responsibility obligations under section 59C.05, subdivision 2, or states "The 
193.4 	obligations of the warrantor under this warranty are backed by the full faith and credit 
193.5 	of the warrantor" if the warrantor elects to meet its financial responsibility obligations 
193.6 	under section 59C.05, subdivision 3;
193.7 	(2) states that in the event a warranty holder must make a claim against a party other 
193.8 	than the warranty reimbursement insurance policy issuer, the warranty holder is entitled to 
193.9 	make a direct claim against the insurer upon the failure of the warrantor to pay any claim 
193.10 	or meet any obligation under the terms of the warranty within 60 days after proof of loss 
193.11 	has been filed with the warrantor, if the warrantor elects to meet its financial responsibility 
193.12 	obligations under section 59C.05, subdivision 2;
193.13 	(3) states the name and address of the issuer of the warranty reimbursement 
193.14 	insurance policy, and this information need not be preprinted on the warranty form, but 
193.15 	may be added to or stamped on the warranty, if the warrantor elects to meet its financial 
193.16 	responsibility obligations under section 59C.05, subdivision 2;
193.17 	(4) identifies the warrantor, the seller, and the warranty holder;
193.18 	(5) sets forth the total purchase price and the terms under which it is to be paid, 
193.19 	however, the purchase price is not required to be preprinted on the vehicle protection 
193.20 	product warranty and may be negotiated with the consumer at the time of sale;
193.21 	(6) sets forth the procedure for making a claim, including a telephone number;
193.22 	(7) specifies the payments or performance to be provided under the warranty 
193.23 	including payments for incidental costs expressed as either a fixed amount specified in the 
193.24 	warranty or sales agreement or by the use of a formula itemizing specific incidental costs 
193.25 	incurred by the warranty holder, the manner of calculation or determination of payments 
193.26 	or performance, and any limitations, exceptions, or exclusions;
193.27 	(8) sets forth all of the obligations and duties of the warranty holder such as the duty 
193.28 	to protect against any further damage to the vehicle, the obligation to notify the warrantor 
193.29 	in advance of any repair, or other similar requirements, if any;
193.30 	(9) sets forth any terms, restrictions, or conditions governing transferability and 
193.31 	cancellation of the warranty, if any; and
193.32 	(10) contains a disclosure that reads substantially as follows: "This agreement is a 
193.33 	product warranty and is not insurance."

193.34 	EFFECTIVE DATE. This section is effective January 1, 2008.

193.35 	Sec. 28. [59C.08] PROHIBITED ACTS.
194.1 	(a) Unless licensed as an insurance company, a vehicle protection product warrantor 
194.2 	shall not use in its name, contracts, or literature, any of the words "insurance," "casualty," 
194.3 	"surety," "mutual," or any other words descriptive of the insurance, casualty, or surety 
194.4 	business or deceptively similar to the name or description of any insurance or surety 
194.5 	corporation, or any other vehicle protection product warrantor. A warrantor may use the 
194.6 	term "guaranty" or similar word in the warrantor's name.
194.7 	(b) A vehicle protection product seller or warrantor may not require as a condition of 
194.8 	financing that a retail purchaser of a motor vehicle purchase a vehicle protection product.

194.9 	EFFECTIVE DATE. This section is effective January 1, 2008.

194.10 	Sec. 29. [59C.09] RECORD KEEPING.
194.11 	(a) All vehicle protection product warrantors shall keep accurate accounts, books, 
194.12 	and records concerning transactions regulated under this chapter.
194.13 	(b) A vehicle protection product warrantor's accounts, books, and records must 
194.14 	include:
194.15 	(1) copies of all vehicle protection product warranties;
194.16 	(2) the name and address of each warranty holder; and
194.17 	(3) the dates, amounts, and descriptions of all receipts, claims, and expenditures.
194.18 	(c) A vehicle protection product warrantor shall retain all required accounts, books, 
194.19 	and records pertaining to each warranty holder for at least two years after the specified 
194.20 	period of coverage has expired. A warrantor discontinuing business in this state shall 
194.21 	maintain its records until it furnishes the commissioner satisfactory proof that it has 
194.22 	discharged all obligations to warranty holders in this state.

194.23 	EFFECTIVE DATE. This section is effective January 1, 2008.

194.24 	Sec. 30. [59C.10] COMMISSIONER'S POWERS AND DUTIES.
194.25 		Subdivision 1.Examination and compliance powers. The commissioner may 
194.26 	conduct examinations of warrantors, administrators, or other persons to enforce this 
194.27 	chapter and protect warranty holders in this state. Upon request of the commissioner, a 
194.28 	warrantor shall make available to the commissioner all accounts, books, and records 
194.29 	concerning vehicle protection products sold by the warrantor and transactions regulated 
194.30 	under this chapter that are necessary to enable the commissioner to reasonably determine 
194.31 	compliance or noncompliance with this chapter.
194.32 		Subd. 2.Enforcement authority. The commissioner may take action that is 
194.33 	necessary or appropriate to enforce the provisions of this chapter and the commissioner's 
195.1 	rules and orders and to protect warranty holders in this state. The commissioner has the 
195.2 	enforcement authority in chapter 45 available to enforce the provisions of the chapter and 
195.3 	the rules adopted pursuant to it.

195.4 	EFFECTIVE DATE. This section is effective January 1, 2008.

195.5 	Sec. 31. [59C.12] APPLICABILITY.
195.6 	This chapter applies to all vehicle protection products sold or offered for sale on 
195.7 	or after the effective date of this chapter. The failure of any person to comply with this 
195.8 	chapter before its effective date is not admissible in any court proceeding, administrative 
195.9 	proceeding, arbitration, or alternative dispute resolution proceeding and may not otherwise 
195.10 	be used to prove that the action of any person or the affected vehicle protection product 
195.11 	was unlawful or otherwise improper. The adoption of this chapter does not imply that 
195.12 	a vehicle protection product warranty was insurance before the effective date of this 
195.13 	chapter. Nothing in this section may be construed to require the application of the penalty 
195.14 	provisions where this section is not applicable.

195.15 	EFFECTIVE DATE. This section is effective January 1, 2008.

195.16 	Sec. 32. [60K.365] PRODUCER TRAINING REQUIREMENTS FOR 
195.17 	LONG-TERM CARE INSURANCE PRODUCTS.
195.18 	(a) An individual may not sell, solicit, or negotiate long-term care insurance 
195.19 	unless the individual is licensed as an insurance producer for accident and health or 
195.20 	sickness insurance or life insurance and has completed an initial training course and 
195.21 	ongoing training every 24 months thereafter. The training must meet the requirements of 
195.22 	paragraph (b).
195.23 	(b) The initial training course required by this section must be no less than eight 
195.24 	hours, and the ongoing training courses required by this section must be no less than four 
195.25 	hours every 24 months. The courses must be approved by the commissioner and may be 
195.26 	approved as continuing education courses under section 60K.56. The courses must consist 
195.27 	of topics related to long-term care insurance, long-term care services, and qualified state 
195.28 	long-term care insurance partnership programs, including, but not limited to:
195.29 	(1) state and federal regulations and requirements and the relationship between 
195.30 	qualified state long-term care insurance partnership programs and other public and private 
195.31 	coverage of long-term care services, including Medicaid/Minnesota medical assistance;
195.32 	(2) available long-term care services and providers;
195.33 	(3) changes or improvements in long-term care services or providers;
196.1 	(4) alternatives to the purchase of private long-term care insurance;
196.2 	(5) the effect of inflation on benefits and the importance of inflation protection; and
196.3 	(6) consumer suitability standards and guidelines.
196.4 	The training required by this section must not include training that is insurer or 
196.5 	company product specific or that includes any sales or marketing information, materials, 
196.6 	or training, other than those required by state or federal law.
196.7 	(c) Insurers shall obtain verification that a producer has received the training 
196.8 	required by this section before a producer is permitted to sell, solicit, or negotiate the 
196.9 	insurer's long-term care insurance products. Insurers shall maintain records verifying that 
196.10 	the producer has received the training contained in this section and make that verification 
196.11 	available to the commissioner upon request.
196.12 	(d) The satisfaction of these initial training requirements in any state shall be deemed 
196.13 	to satisfy the initial training requirements of this section.
196.14 	(e) Nonresident producers selling partnership policies shall be expected to 
196.15 	demonstrate knowledge about unique aspects of the Minnesota medical assistance system. 
196.16 	An insurer offering partnership products in Minnesota shall maintain records verifying that 
196.17 	its nonresident producers have attained the required training and make that verification 
196.18 	available to the commissioner upon request.

196.19 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
196.20 	final enactment; producers have until January 1, 2008, to complete the initial training 
196.21 	course.

196.22 	Sec. 33. Minnesota Statutes 2006, section 60K.55, subdivision 2, is amended to read:
196.23 		Subd. 2.Licensing fees. (a) In addition to fees provided for examinations and the 
196.24 	technology surcharge required under paragraph (d), each insurance producer licensed 
196.25 	under this chapter shall pay to the commissioner a fee of:
196.26 	(1) $50 for an initial life, accident and health, property, or casualty license issued to 
196.27 	an individual insurance producer, and a fee of $50 for each renewal;
196.28 	(2) $50 for an initial variable life and variable annuity license issued to an individual 
196.29 	insurance producer, and a fee of $50 for each renewal;
196.30 	(3) $50 for an initial personal lines license issued to an individual insurance 
196.31 	producer, and a fee of $50 for each renewal;
196.32 	(4) $50 for an initial limited lines license issued to an individual insurance producer, 
196.33 	and a fee of $50 for each renewal;
196.34 	(5) $200 for an initial license issued to a business entity, and a fee of $200 for each 
196.35 	renewal; and
197.1 	(6) $500 for an initial surplus lines license, and a fee of $500 for each renewal.
197.2 	(b) Initial licenses issued under this chapter are valid for a period not to exceed 24 
197.3 	months and expire on October 31 of the renewal year assigned by the commissioner. 
197.4 	Each renewal insurance producer license is valid for a period of 24 months. Licensees 
197.5 	who submit renewal applications postmarked or delivered on or before October 15 of the 
197.6 	renewal year may continue to transact business whether or not the renewal license has been 
197.7 	received by November 1. Licensees who submit applications postmarked or delivered 
197.8 	after October 15 of the renewal year must not transact business after the expiration date 
197.9 	of the license until the renewal license has been received.
197.10 	(c) All fees are nonreturnable, except that an overpayment of any fee may be 
197.11 	refunded upon proper application.
197.12 	(d) In addition to the fees required under paragraph (a), individual insurance 
197.13 	producers shall pay, for each initial license and renewal, a technology surcharge of up to 
197.14 	$40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted 
197.15 	under that section.

197.16 	EFFECTIVE DATE. This section is effective August 31, 2007.

197.17 	Sec. 34. Minnesota Statutes 2006, section 80A.28, subdivision 1, is amended to read:
197.18 		Subdivision 1.Registration or notice filing fee. (a) There shall be a filing fee of 
197.19 	$100 for every application for registration or notice filing. There shall be an additional fee 
197.20 	of one-tenth of one percent of the maximum aggregate offering price at which the securities 
197.21 	are to be offered in this state, and the maximum combined fees shall not exceed $300.
197.22 	(b) When an application for registration is withdrawn before the effective date or a 
197.23 	preeffective stop order is entered under section 80A.13, subdivision 1, all but the $100 
197.24 	filing fee shall be returned. If an application to register securities is denied, the total of all 
197.25 	fees received shall be retained. 
197.26 	(c) Where a filing is made in connection with a federal covered security under 
197.27 	section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 
197.28 	If the filing is made in connection with redeemable securities issued by an open end 
197.29 	management company or unit investment trust, as defined in the Investment Company 
197.30 	Act of 1940, there is an additional annual fee of 1/20 of one percent of the maximum 
197.31 	aggregate offering price at which the securities are to be offered in this state during the 
197.32 	notice filing period. The fee must be paid at the time of the initial filing and thereafter 
197.33 	in connection with each renewal no later than July 1 of each year and must be sufficient 
197.34 	to cover the shares the issuer expects to sell in this state over the next 12 months. If 
197.35 	during a current notice filing the issuer determines it is likely to sell shares in excess of 
198.1 	the shares for which fees have been paid to the commissioner, the issuer shall submit an 
198.2 	amended notice filing to the commissioner under section 80A.122, subdivision 1, clause 
198.3 	(3), together with a fee of 1/20 of one percent of the maximum aggregate offering price 
198.4 	of the additional shares. Shares for which a fee has been paid, but which have not been 
198.5 	sold at the time of expiration of the notice filing, may not be sold unless an additional fee 
198.6 	to cover the shares has been paid to the commissioner as provided in this section and 
198.7 	section 80A.122, subdivision 4a. If the filing is made in connection with redeemable 
198.8 	securities issued by such a company or trust, there is no maximum fee for securities filings 
198.9 	made according to this paragraph. If the filing is made in connection with any other 
198.10 	federal covered security under Section 18(b)(2) of the Securities Act of 1933, there is an 
198.11 	additional fee of one-tenth of one percent of the maximum aggregate offering price at 
198.12 	which the securities are to be offered in this state, and the combined fees shall not exceed 
198.13 	$300. Beginning with fiscal year 2001 and continuing each fiscal year thereafter, as of the 
198.14 	last day of each fiscal year, the commissioner shall determine the total amount of all fees 
198.15 	that were collected under this paragraph in connection with any filings made for that fiscal 
198.16 	year for securities of an open-end investment company on behalf of a security that is a 
198.17 	federal covered security pursuant to section 18(b)(2) of the Securities Act of 1933. To the 
198.18 	extent the total fees collected by the commissioner in connection with these filings exceed 
198.19 	$25,000,000$25,600,000 in a fiscal year, the commissioner shall refund, on a pro rata 
198.20 	basis, to all persons who paid any fees for that fiscal year, the amount of fees collected by 
198.21 	the commissioner in excess of $25,000,000 $25,600,000. No individual refund is required 
198.22 	of amounts of $100 or less for a fiscal year. 

198.23 	Sec. 35. Minnesota Statutes 2006, section 80A.65, subdivision 1, is amended to read:
198.24 		Subdivision 1.Registration or notice filing fee. (a) There shall be a filing fee of 
198.25 	$100 for every application for registration or notice filing.  There shall be an additional fee 
198.26 	of one-tenth of one percent of the maximum aggregate offering price at which the securities 
198.27 	are to be offered in this state, and the maximum combined fees shall not exceed $300.
198.28 	(b) When an application for registration is withdrawn before the effective date 
198.29 	or a preeffective stop order is entered under section 80A.54, all but the $100 filing fee 
198.30 	shall be returned.  If an application to register securities is denied, the total of all fees 
198.31 	received shall be retained.
198.32 	(c) Where a filing is made in connection with a federal covered security under 
198.33 	section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing. 
198.34 	If the filing is made in connection with redeemable securities issued by an open end 
198.35 	management company or unit investment trust, as defined in the Investment Company Act 
199.1 	of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate 
199.2 	offering price at which the securities are to be offered in this state during the notice filing 
199.3 	period.  The fee must be paid at the time of the initial filing and thereafter in connection 
199.4 	with each renewal no later than July 1 of each year and must be sufficient to cover the 
199.5 	shares the issuer expects to sell in this state over the next 12 months.  If during a current 
199.6 	notice filing the issuer determines it is likely to sell shares in excess of the shares for which 
199.7 	fees have been paid to the administrator, the issuer shall submit an amended notice filing 
199.8 	to the administrator under section 80A.50, together with a fee of 1/20 of one percent of the 
199.9 	maximum aggregate offering price of the additional shares.  Shares for which a fee has 
199.10 	been paid, but which have not been sold at the time of expiration of the notice filing, may 
199.11 	not be sold unless an additional fee to cover the shares has been paid to the administrator 
199.12 	as provided in this section and section 80A.50.  If the filing is made in connection with 
199.13 	redeemable securities issued by such a company or trust, there is no maximum fee for 
199.14 	securities filings made according to this paragraph.  If the filing is made in connection with 
199.15 	any other federal covered security under Section 18(b)(2) of the Securities Act of 1933, 
199.16 	there is an additional fee of one-tenth of one percent of the maximum aggregate offering 
199.17 	price at which the securities are to be offered in this state, and the combined fees shall not 
199.18 	exceed $300.  Beginning with fiscal year 2001 and continuing each fiscal year thereafter, 
199.19 	as of the last day of each fiscal year, the administrator shall determine the total amount of 
199.20 	all fees that were collected under this paragraph in connection with any filings made for 
199.21 	that fiscal year for securities of an open-end investment company on behalf of a security 
199.22 	that is a federal covered security pursuant to section 18(b)(2) of the Securities Act of 
199.23 	1933.  To the extent the total fees collected by the administrator in connection with these 
199.24 	filings exceed $25,000,000$25,600,000 in a fiscal year, the administrator shall refund, 
199.25 	on a pro rata basis, to all persons who paid any fees for that fiscal year, the amount of 
199.26 	fees collected by the administrator in excess of $25,000,000 $25,600,000.  No individual 
199.27 	refund is required of amounts of $100 or less for a fiscal year.

199.28 	Sec. 36. Minnesota Statutes 2006, section 82.24, subdivision 1, is amended to read:
199.29 		Subdivision 1.Amounts. The following fees shall be paid to the commissioner:
199.30 	(a) a fee of $150 for each initial individual broker's license, and a fee of $100 for 
199.31 	each renewal thereof;
199.32 	(b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each 
199.33 	renewal thereof;
199.34 	(c) a fee of $85 for each initial real estate closing agent license, and a fee of $60 
199.35 	for each renewal thereof;
200.1 	(d) a fee of $150 for each initial corporate, limited liability company, or partnership 
200.2 	license, and a fee of $100 for each renewal thereof;
200.3 	(e) a fee for payment to the education, research and recovery fund in accordance 
200.4 	with section 82.43; 
200.5 	(f) a fee of $20 for each transfer;
200.6 	(g) a fee of $50 for license reinstatement; and
200.7 	(h) a fee of $20 for reactivating a corporate, limited liability company, or partnership 
200.8 	license without land; and
200.9 	(i) in addition to the fees required under this subdivision, individual licensees under 
200.10 	clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge 
200.11 	of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge 
200.12 	as permitted under that section.

200.13 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
200.14 	final enactment and applies to new licensees effective September 1, 2007.

200.15 	Sec. 37. Minnesota Statutes 2006, section 82.24, subdivision 4, is amended to read:
200.16 		Subd. 4.Deposit of fees. Unless otherwise provided by this chapter, all fees 
200.17 	collected under this chapter shall be deposited in the state treasury. The technology 
200.18 	surcharge shall be deposited as required under section 45.24.

200.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

200.20 	Sec. 38. Minnesota Statutes 2006, section 82B.09, subdivision 1, is amended to read:
200.21 		Subdivision 1.Amounts. (a) The following fees must be paid to the commissioner:
200.22 	(1) $150 for each initial individual real estate appraiser's license; and
200.23 	(2) $100 for each renewal.
200.24 	(b) In addition to the fees required under this subdivision, individual real estate 
200.25 	appraisers shall pay a technology surcharge of up to $40 under section 45.24, unless the 
200.26 	commissioner has adjusted the surcharge as permitted under that section.

200.27 	EFFECTIVE DATE. This section is effective June 30, 2007.

200.28 	Sec. 39. Minnesota Statutes 2006, section 118A.03, subdivision 2, is amended to read:
200.29 		Subd. 2.In lieu of surety bond. The following are the allowable forms of collateral 
200.30 	in lieu of a corporate surety bond:
200.31 	(1) United States government Treasury bills, Treasury notes, Treasury bonds;
201.1 	(2) issues of United States government agencies and instrumentalities as quoted by a 
201.2 	recognized industry quotation service available to the government entity;
201.3 	(3) general obligation securities of any state or local government with taxing powers 
201.4 	which is rated "A" or better by a national bond rating service, or revenue obligation 
201.5 	securities of any state or local government with taxing powers which is rated "AA" or 
201.6 	better by a national bond rating service;
201.7 	(4) unrated general obligation securities of a local government with taxing powers 
201.8 	may be pledged as collateral against funds deposited by that same local government entity;
201.9 	(5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a 
201.10 	municipality accompanied by written evidence that the bank's public debt is rated "AA" or 
201.11 	better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and
201.12 	(6) time deposits that are fully insured by any federal agency.

201.13 	Sec. 40. Minnesota Statutes 2006, section 239.101, subdivision 3, is amended to read:
201.14 		Subd. 3.Petroleum inspection fee. (a) An inspection fee is imposed (1) on 
201.15 	petroleum products when received by the first licensed distributor, and (2) on petroleum 
201.16 	products received and held for sale or use by any person when the petroleum products 
201.17 	have not previously been received by a licensed distributor. The petroleum inspection 
201.18 	fee is $1 for every 1,000 gallons received. The commissioner of revenue shall collect 
201.19 	the fee. The revenue from 81 cents of the fee is appropriated to the commissioner of 
201.20 	commerce for the cost of operations of the Division of Weights and Measures, petroleum 
201.21 	supply monitoring, and the oil burner retrofit program to make grants to providers of 
201.22 	low-income weatherization services to install renewable energy equipment in households 
201.23 	that are eligible for weatherization assistance under Minnesota's weatherization assistance 
201.24 	program state plan. The remainder of the fee must be deposited in the general fund.
201.25 	(b) The commissioner of revenue shall credit a person for inspection fees previously 
201.26 	paid in error or for any material exported or sold for export from the state upon filing of a 
201.27 	report as prescribed by the commissioner of revenue.
201.28 	(c) The commissioner of revenue may collect the inspection fee along with any 
201.29 	taxes due under chapter 296A.

201.30 	Sec. 41. [325E.027] DISCRIMINATION PROHIBITION.
201.31 	(a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil 
201.32 	who has signed a low-income home energy assistance program vendor agreement with the 
201.33 	department of commerce may refuse to deliver liquid propane gas or number 1 or number 
202.1 	2 fuel oil to any person located within the dealer's or distributor's normal delivery area 
202.2 	who receives direct grants under the low-income home energy assistance program if:
202.3 	(1) the person has requested delivery;
202.4 	(2) the dealer or distributor has product available;
202.5 	(3) the person requesting delivery is capable of making full payment at the time of 
202.6 	delivery; and
202.7 	(4) the person is not in arrears regarding any previous fuel purchase from that dealer 
202.8 	or distributor.
202.9 	(b) A dealer or distributor making delivery to a person receiving direct grants 
202.10 	under the low-income home energy assistance program may not charge that person any 
202.11 	additional costs or fees that would not be charged to any other customer and must make 
202.12 	available to that person any discount program on the same basis as the dealer or distributor 
202.13 	makes available to any other customer.

202.14 	Sec. 42. Minnesota Statutes 2006, section 325E.311, subdivision 6, is amended to read:
202.15 		Subd. 6.Telephone solicitation. "Telephone solicitation" means any voice 
202.16 	communication over a telephone line for the purpose of encouraging the purchase or 
202.17 	rental of, or investment in, property, goods, or services, whether the communication is 
202.18 	made by a live operator, through the use of an automatic dialing-announcing device as 
202.19 	defined in section 325E.26, subdivision 2, or by other means. Telephone solicitation 
202.20 	does not include communications:
202.21 	(1) to any residential subscriber with that subscriber's prior express invitation or 
202.22 	permission; or
202.23 	(2) by or on behalf of any person or entity with whom a residential subscriber has a 
202.24 	prior or current business or personal relationship.
202.25 	Telephone solicitation also does not include communications if the caller is identified by a 
202.26 	caller identification service and the call is:
202.27 	(i) by or on behalf of an organization that is identified as a nonprofit organization 
202.28 	under state or federal law, unless the organization is a debt management services provider 
202.29 	defined in section 332A.02;
202.30 	(ii) by a person soliciting without the intent to complete, and who does not in 
202.31 	fact complete, the sales presentation during the call, but who will complete the sales 
202.32 	presentation at a later face-to-face meeting between the solicitor who makes the call 
202.33 	and the prospective purchaser; or
202.34 	(iii) by a political party as defined under section 200.02, subdivision 6.

203.1 	EFFECTIVE DATE. This section is effective January 1, 2008.

203.2 	Sec. 43. Minnesota Statutes 2006, section 325N.01, is amended to read:
203.3 	325N.01 DEFINITIONS.
203.4 	The definitions in paragraphs (a) to (h) apply to sections 325N.01 to 325N.09. 
203.5 	(a) "Foreclosure consultant" means any person who, directly or indirectly, makes 
203.6 	any solicitation, representation, or offer to any owner to perform for compensation or 
203.7 	who, for compensation, performs any service which the person in any manner represents 
203.8 	will in any manner do any of the following:
203.9 	(1) stop or postpone the foreclosure sale;
203.10 	(2) obtain any forbearance from any beneficiary or mortgagee;
203.11 	(3) assist the owner to exercise the right of reinstatement provided in section 580.30; 
203.12 	(4) obtain any extension of the period within which the owner may reinstate the 
203.13 	owner's obligation;
203.14 	(5) obtain any waiver of an acceleration clause contained in any promissory note or 
203.15 	contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;
203.16 	(6) assist the owner in foreclosure or loan default to obtain a loan or advance 
203.17 	of funds;
203.18 	(7) avoid or ameliorate the impairment of the owner's credit resulting from the 
203.19 	recording of a notice of default or the conduct of a foreclosure sale; or
203.20 	(8) save the owner's residence from foreclosure.
203.21 	(b) A foreclosure consultant does not include any of the following:
203.22 	(1) a person licensed to practice law in this state when the person renders service 
203.23 	in the course of his or her practice as an attorney-at-law;
203.24 	(2) a person licensed as a debt prorater under sections 332.12 to 332.29 management 
203.25 	services provider under chapter 332A, when the person is acting as a debt prorater
203.26 	management services provider as defined in these sections that chapter; 
203.27 	(3) a person licensed as a real estate broker or salesperson under chapter 82 when the 
203.28 	person engages in acts whose performance requires licensure under that chapter unless the 
203.29 	person is engaged in offering services designed to, or purportedly designed to, enable the 
203.30 	owner to retain possession of the residence in foreclosure;
203.31 	(4) a person licensed as an accountant under chapter 326A when the person is acting 
203.32 	in any capacity for which the person is licensed under those provisions;
203.33 	(5) a person or the person's authorized agent acting under the express authority 
203.34 	or written approval of the Department of Housing and Urban Development or other 
203.35 	department or agency of the United States or this state to provide services;
204.1 	(6) a person who holds or is owed an obligation secured by a lien on any residence 
204.2 	in foreclosure when the person performs services in connection with this obligation or lien 
204.3 	if the obligation or lien did not arise as the result of or as part of a proposed foreclosure 
204.4 	reconveyance;
204.5 	(7) any person or entity doing business under any law of this state, or of the United 
204.6 	States relating to banks, trust companies, savings and loan associations, industrial loan and 
204.7 	thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee 
204.8 	which is a United States Department of Housing and Urban Development approved 
204.9 	mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or 
204.10 	employee of these persons or entities while engaged in the business of these persons 
204.11 	or entities;
204.12 	(8) a person licensed as a residential mortgage originator or servicer pursuant to 
204.13 	chapter 58, when acting under the authority of that license or a foreclosure purchaser as 
204.14 	defined in section 325N.10; 
204.15 	(9) a nonprofit agency or organization that offers counseling or advice to an owner 
204.16 	of a home in foreclosure or loan default if they do not contract for services with for-profit 
204.17 	lenders or foreclosure purchasers; and
204.18 	(10) a judgment creditor of the owner, to the extent that the judgment creditor's claim 
204.19 	accrued prior to the personal service of the foreclosure notice required by section 580.03, 
204.20 	but excluding a person who purchased the claim after such personal service. 
204.21 	(c) "Foreclosure reconveyance" means a transaction involving:
204.22 	(1) the transfer of title to real property by a foreclosed homeowner during a 
204.23 	foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or 
204.24 	by creation of a mortgage or other lien or encumbrance during the foreclosure process 
204.25 	that allows the acquirer to obtain title to the property by redeeming the property as 
204.26 	a junior lienholder; and
204.27 	(2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest 
204.28 	back to the foreclosed homeowner by the acquirer or a person acting in participation with 
204.29 	the acquirer that allows the foreclosed homeowner to possess the real property following 
204.30 	the completion of the foreclosure proceeding, which interest includes, but is not limited to, 
204.31 	an interest in a contract for deed, purchase agreement, option to purchase, or lease.
204.32 	(d) "Person" means any individual, partnership, corporation, limited liability 
204.33 	company, association, or other group, however organized.
204.34 	(e) "Service" means and includes, but is not limited to, any of the following:
204.35 	(1) debt, budget, or financial counseling of any type;
205.1 	(2) receiving money for the purpose of distributing it to creditors in payment or 
205.2 	partial payment of any obligation secured by a lien on a residence in foreclosure;
205.3 	(3) contacting creditors on behalf of an owner of a residence in foreclosure;
205.4 	(4) arranging or attempting to arrange for an extension of the period within which 
205.5 	the owner of a residence in foreclosure may cure the owner's default and reinstate his or 
205.6 	her obligation pursuant to section 580.30; 
205.7 	(5) arranging or attempting to arrange for any delay or postponement of the time of 
205.8 	sale of the residence in foreclosure;
205.9 	(6) advising the filing of any document or assisting in any manner in the preparation 
205.10 	of any document for filing with any bankruptcy court; or
205.11 	(7) giving any advice, explanation, or instruction to an owner of a residence in 
205.12 	foreclosure, which in any manner relates to the cure of a default in or the reinstatement 
205.13 	of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of 
205.14 	that obligation, or the postponement or avoidance of a sale of a residence in foreclosure, 
205.15 	pursuant to a power of sale contained in any mortgage.
205.16 	(f) "Residence in foreclosure" means residential real property consisting of one to 
205.17 	four family dwelling units, one of which the owner occupies as his or her principal place 
205.18 	of residence, and against which there is an outstanding notice of pendency of foreclosure, 
205.19 	recorded pursuant to section 580.032, or against which a summons and complaint has 
205.20 	been served under chapter 581. 
205.21 	(g) "Owner" means the record owner of the residential real property in foreclosure at 
205.22 	the time the notice of pendency was recorded, or the summons and complaint served.
205.23 	(h) "Contract" means any agreement, or any term in any agreement, between 
205.24 	a foreclosure consultant and an owner for the rendition of any service as defined in 
205.25 	paragraph (e).

205.26 	EFFECTIVE DATE. This section is effective January 1, 2008.

205.27 	Sec. 44. Minnesota Statutes 2006, section 332.54, subdivision 7, is amended to read:
205.28 		Subd. 7.Fees. The fee for a credit services organization's registration is $100
205.29 	$1,000 for issuance or renewal for each location of business.

205.30 	EFFECTIVE DATE; APPLICATION. This section is effective July 1, 2007, and 
205.31 	applies to registrations issued or renewed on or after that date.

205.32 	Sec. 45. [332A.02] DEFINITIONS.
206.1 		Subdivision 1.Scope. Unless a different meaning is clearly indicated by the context, 
206.2 	for the purposes of this chapter the terms defined in this section have the meanings given 
206.3 	them.
206.4 		Subd. 2.Accreditation. "Accreditation" means certification as an accredited credit 
206.5 	counseling provider by the Council on Accreditation.
206.6 		Subd. 3.Attorney general. "Attorney general" means the attorney general of the 
206.7 	state of Minnesota.
206.8 		Subd. 4.Commissioner. "Commissioner" means commissioner of commerce.
206.9 		Subd. 5.Controlling or affiliated party. "Controlling or affiliated party" means 
206.10 	any person directly or indirectly controlling, controlled by, or under common control 
206.11 	with another person.
206.12 		Subd. 6.Debt management services agreement. "Debt management services 
206.13 	agreement" means the written contract between the debt management services provider 
206.14 	and the debtor.
206.15 		Subd. 7.Debt management services plan. "Debt management services plan" 
206.16 	means the debtor's individualized package of debt management services set forth in the 
206.17 	debt management services agreement.
206.18 		Subd. 8.Debt management services provider. "Debt management services 
206.19 	provider" means any person offering or providing debt management services to a debtor 
206.20 	domiciled in this state, regardless of whether or not a fee is charged for the services and 
206.21 	regardless of whether the person maintains a physical presence in the state. This term does 
206.22 	not include services performed by the following when engaged in the regular course of 
206.23 	their respective businesses and professions:
206.24 	(1) attorneys at law, escrow agents, accountants, broker-dealers in securities;
206.25 	(2) state or national banks, trust companies, savings associations, title insurance 
206.26 	companies, insurance companies, and all other lending institutions duly authorized to 
206.27 	transact business in Minnesota, provided no fee is charged for the service;
206.28 	(3) persons who, as employees on a regular salary or wage of an employer not 
206.29 	engaged in the business of debt management, perform credit services for their employer;
206.30 	(4) public officers acting in their official capacities and persons acting as a debt 
206.31 	management services provider pursuant to court order;
206.32 	(5) any person while performing services incidental to the dissolution, winding up, 
206.33 	or liquidation of a partnership, corporation, or other business enterprise;
206.34 	(6) the state, its political subdivisions, public agencies, and their employees;
206.35 	(7) credit unions and collection agencies, provided no fee is charged for the service;
207.1 	(8) "qualified organizations" designated as representative payees for purposes of the 
207.2 	Social Security and Supplemental Security Income Representative Payee System and the 
207.3 	federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508;
207.4 	(9) accelerated mortgage payment providers. "Accelerated mortgage payment 
207.5 	providers" are persons who, after satisfying the requirements of sections 332.30 to 
207.6 	332.303, receive funds to make mortgage payments to a lender or lenders, on behalf 
207.7 	of mortgagors, in order to exceed regularly scheduled minimum payment obligations 
207.8 	under the terms of the indebtedness. The term does not include: (i) persons or entities 
207.9 	described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and 
207.10 	thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to 
207.11 	make loans under section 47.20, subdivision 1. For purposes of this clause and sections 
207.12 	332.30 to 332.303, "lender" means the original lender or that lender's assignee, whichever 
207.13 	is the current mortgage holder;
207.14 	(10) trustees, guardians, and conservators; and
207.15 	(11) debt settlement providers.
207.16 		Subd. 9.Debt management services. "Debt management services" means the 
207.17 	provision of any one or more of the following services in connection with debt incurred 
207.18 	primarily for personal, family, or household services:
207.19 	(1) managing the financial affairs of an individual by distributing income or money 
207.20 	to the individual's creditors; 
207.21 	(2) receiving funds for the purpose of distributing the funds among creditors in 
207.22 	payment or partial payment of obligations of a debtor; or
207.23 	(3) adjusting, prorating, pooling, or liquidating the indebtedness of a debtor. Any 
207.24 	person so engaged or holding out as so engaged is deemed to be engaged in the provision of 
207.25 	debt management services regardless of whether or not a fee is charged for such services.
207.26 		Subd. 10.Debtor. "Debtor" means the person for whom the debt prorating service 
207.27 	is performed.
207.28 		Subd. 11.Person. "Person" means any individual, firm, partnership, association, 
207.29 	or corporation.
207.30 		Subd. 12.Registrant. "Registrant" means any person registered by the 
207.31 	commissioner pursuant to this chapter and, where used in conjunction with an act or 
207.32 	omission required or prohibited by this chapter, shall mean any person performing debt 
207.33 	management services.
207.34 		Subd. 13.Debt settlement provider. "Debt settlement provider" means any person 
207.35 	engaging in or holding out as engaging in the business of negotiating, adjusting, or settling 
207.36 	debt incurred primarily for personal, family, or household purposes without holding or 
208.1 	receiving the debtor's funds or personal property and without paying the debtor's funds to, 
208.2 	or distributing the debtor's property among, creditors. The term shall not include persons 
208.3 	listed in subdivision 8, clauses (1) to (10).

208.4 	EFFECTIVE DATE. This section is effective January 1, 2008.

208.5 	Sec. 46. [332A.03] REQUIREMENT OF REGISTRATION.
208.6 	On or after August 1, 2007, it is unlawful for any person, whether or not located in 
208.7 	this state, to operate as a debt management services provider or provide debt management 
208.8 	services, including but not limited to offering, advertising, or executing or causing to 
208.9 	be executed any debt management services or debt management services agreement, 
208.10 	except as authorized by law without first becoming registered as provided in this 
208.11 	chapter. A person who possesses a valid license as a debt prorater that was issued by the 
208.12 	commissioner before August 1, 2007, is deemed to be registered as a debt management 
208.13 	services provider until the date the debt prorater license expires, at which time the licensee 
208.14 	must obtain a renewal as a debt management services provider in compliance with this 
208.15 	chapter. Debt proraters who were not required to be licensed as debt proraters before 
208.16 	August 1, 2007, may continue to provide debt management services without complying 
208.17 	with this chapter to those debtors who entered into a contract to participate in a debt 
208.18 	management plan before August 1, 2007, except that the debt prorater must comply with 
208.19 	section 332A.13, subdivision 2.

208.20 	EFFECTIVE DATE. This section is effective January 1, 2008.

208.21 	Sec. 47. [332A.04] REGISTRATION.
208.22 		Subdivision 1.Form. Application for registration to operate as a debt management 
208.23 	services provider in this state must be made in writing to the commissioner, under oath, in 
208.24 	the form prescribed by the commissioner, and must contain:
208.25 	(1) the full name of each principal of the entity applying;
208.26 	(2) the address, which must not be a post office box, and the telephone number and, 
208.27 	if applicable, e-mail address, of the applicant;
208.28 	(3) identification of the trust account required under section 332A.13;
208.29 	(4) consent to the jurisdiction of the courts of this state;
208.30 	(5) the name and address of the registered agent authorized to accept service of 
208.31 	process on behalf of the applicant or appointment of the commissioner as the applicant's 
208.32 	agent for purposes of accepting service of process;
208.33 	(6) disclosure of:
209.1 	(i) whether any controlling or affiliated party has ever been convicted of a crime 
209.2 	or found civilly liable for an offense involving moral turpitude, including forgery, 
209.3 	embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to 
209.4 	defraud, or any other similar offense or violation, or any violation of a federal or state law 
209.5 	or regulation in connection with activities relating to the rendition of debt management 
209.6 	services or involving any consumer fraud, false advertising, deceptive trade practices, or 
209.7 	similar consumer protection law;
209.8 	(ii) any judgments, private or public litigation, tax liens, written complaints, 
209.9 	administrative actions, or investigations by any government agency against the applicant 
209.10 	or any officer, director, manager, or shareholder owning more than five percent interest 
209.11 	in the applicant, unresolved or otherwise, filed or otherwise commenced within the 
209.12 	preceding ten years;
209.13 	(iii) whether the applicant or any person employed by the applicant has had a record 
209.14 	of having defaulted in the payment of money collected for others, including the discharge 
209.15 	of debts through bankruptcy proceedings; and
209.16 	(iv) whether the applicant's license or registration to provide debt management 
209.17 	services in any other state has ever been revoked or suspended;
209.18 	(7) a copy of the applicant's standard debt management services agreement that the 
209.19 	applicant intends to execute with debtors;
209.20 	(8) proof of accreditation; and
209.21 	(9) any other information and material as the commissioner may require.
209.22 		Subd. 2.Term and scope of registration. The registration must remain in full force 
209.23 	and effect for one year or until it is surrendered by the registrant or revoked or suspended 
209.24 	by the commissioner. The registration is limited solely to the business of providing debt 
209.25 	management services.
209.26 		Subd. 3.Fees. The registration application must be accompanied by payment of 
209.27 	$1,000 as a registration fee.
209.28 		Subd. 4.Bond. The registration application must be accompanied by payment of 
209.29 	the premium for a surety bond in which the applicant shall be the obligor, in a sum to be 
209.30 	determined by the commissioner but not less than $5,000, and in which an insurance 
209.31 	company, which is duly authorized by the state of Minnesota to transact the business of 
209.32 	fidelity and surety insurance, shall be a surety. However, the commissioner may accept 
209.33 	a deposit in cash, or securities that may legally be purchased by savings banks or for 
209.34 	trust funds of an aggregate market value equal to the bond requirement, in lieu of the 
209.35 	surety bond. The cash or securities must be deposited with the commissioner of finance. 
209.36 	The commissioner may also require a fidelity bond in an appropriate amount covering 
210.1 	employees of any applicant. Each branch office or additional place of business in this state 
210.2 	of an applicant must be bonded as provided in this subdivision. In determining the bond 
210.3 	amount necessary for the maintenance of any office, whether it is a surety bond, fidelity 
210.4 	bond, or both, the commissioner shall consider the financial responsibility, experience, 
210.5 	character, and general fitness of the debt management services provider and its operators 
210.6 	and owners; the volume of business handled or proposed to be handled; the location of the 
210.7 	office and the geographical area served or proposed to be served; and other information the 
210.8 	commissioner may deem pertinent based upon past performance, previous examinations, 
210.9 	annual reports, and manner of business conducted in other states.
210.10 		Subd. 5.Condition of bond.  The bond must run to the state of Minnesota for the 
210.11 	use of the state and of any person or persons who may have a cause of action against the 
210.12 	obligor arising out of the obligor's activities as a debt management services provider to 
210.13 	a debtor domiciled in this state. The bond must be conditioned that the obligor will not 
210.14 	commit any fraudulent act and will faithfully conform to and abide by the provisions of 
210.15 	this chapter and of all rules lawfully made by the commissioner under this chapter and 
210.16 	pay to the state and to any such person or persons any and all money that may become 
210.17 	due or owing to the state or to such person or persons from the obligor under and by 
210.18 	virtue of this chapter.
210.19 		Subd. 6.Right of action on bond. If the registrant has failed to account to a debtor 
210.20 	or distribute to the debtor's creditors the amounts required by this chapter and the debt 
210.21 	management services agreement between the debtor and registrant, the debtor or the 
210.22 	debtor's legal representative or receiver, the commissioner, or the attorney general, shall 
210.23 	have, in addition to all other legal remedies, a right of action in the name of the debtor 
210.24 	on the bond or the security given under this section, for loss suffered by the debtor, not 
210.25 	exceeding the face amount of the bond or security, and without the necessity of joining 
210.26 	the registrant in the suit or action.
210.27 		Subd. 7.Registrant list. The commissioner must maintain a list of registered debt 
210.28 	management services providers. The list must be made available to the public in written 
210.29 	form upon request and on the Department of Commerce Web site.

210.30 	EFFECTIVE DATE. This section is effective January 1, 2008.

210.31 	Sec. 48. [332A.05] NONASSIGNMENT OF REGISTRATION.
210.32 	A registration must not be transferred or assigned without the consent of the 
210.33 	commissioner.

210.34 	EFFECTIVE DATE. This section is effective January 1, 2008.

211.1 	Sec. 49. [332A.06] RENEWAL OF REGISTRATION.
211.2 	Each year, each registrant under the provisions of this chapter must, not more than 
211.3 	60 nor less than 30 days before its registration is to expire, apply to the commissioner for 
211.4 	renewal of its registration on a form prescribed by the commissioner. The application must 
211.5 	be signed by the registrant under penalty of perjury, contain current information on all 
211.6 	matters required in the original application, and be accompanied by a payment of $250. 
211.7 	The registrant must maintain a continuous surety bond that satisfies the requirements of 
211.8 	section 332A.04, subdivision 4, provided that the commissioner may require a different 
211.9 	amount that is at least equal to the largest amount that has accrued in the registrant's trust 
211.10 	account during the previous year. The renewal is effective for one year.

211.11 	EFFECTIVE DATE. This section is effective January 1, 2008.

211.12 	Sec. 50. [332A.07] OTHER DUTIES OF REGISTRANT.
211.13 		Subdivision 1.Requirement to update information. A registrant must update any 
211.14 	information required by this chapter provided in its original or renewal application not 
211.15 	later than 90 days after the date the events precipitating the update occurred.
211.16 		Subd. 2.Inspection of debtor of registration. Each registrant must maintain a 
211.17 	copy of its registration in its files. The registrant must allow a debtor, upon request, to 
211.18 	inspect the registration.

211.19 	EFFECTIVE DATE. This section is effective January 1, 2008.

211.20 	Sec. 51. [332A.08] DENIAL OF REGISTRATION.
211.21 	The commissioner, with notice to the applicant by certified mail sent to the address 
211.22 	listed on the application, may deny an application for a registration upon finding that 
211.23 	the applicant:
211.24 	(1) has submitted an application required under section 332A.04 that contains 
211.25 	incorrect, misleading, incomplete, or materially untrue information. An application is 
211.26 	incomplete if it does not include all the information required in section 332A.04;
211.27 	(2) has failed to pay any fee or pay or maintain any bond required by this chapter, 
211.28 	or failed to comply with any order, decision, or finding of the commissioner made under 
211.29 	and within the authority of this chapter;
211.30 	(3) has violated any provision of this chapter or any rule or direction lawfully made 
211.31 	by the commissioner under and within the authority of this chapter;
211.32 	(4) or any controlling or affiliated party has ever been convicted of a crime or found 
211.33 	civilly liable for an offense involving moral turpitude, including forgery, embezzlement, 
212.1 	obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any 
212.2 	other similar offense or violation, or any violation of a federal or state law or regulation 
212.3 	in connection with activities relating to the rendition of debt management services or 
212.4 	any consumer fraud, false advertising, deceptive trade practices, or similar consumer 
212.5 	protection law;
212.6 	(5) has had a registration or license previously revoked or suspended in this state or 
212.7 	any other state or the applicant or licensee has been permanently or temporarily enjoined 
212.8 	by any court of competent jurisdiction from engaging in or continuing any conduct or 
212.9 	practice involving any aspect of the debt management services provider business; or 
212.10 	any controlling or affiliated party has been an officer, director, manager, or shareholder 
212.11 	owning more than a ten percent interest in a debt management services provider whose 
212.12 	registration has previously been revoked or suspended in this state or any other state, or 
212.13 	who has been permanently or temporarily enjoined by any court of competent jurisdiction 
212.14 	from engaging in or continuing any conduct or practice involving any aspect of the debt 
212.15 	management services provider business;
212.16 	(6) has made any false statement or representation to the commissioner;
212.17 	(7) is insolvent;
212.18 	(8) refuses to fully comply with an investigation or examination of the debt 
212.19 	management services provider by the commissioner;
212.20 	(9) has improperly withheld, misappropriated, or converted any money or properties 
212.21 	received in the course of doing business;
212.22 	(10) has failed to have a trust account with an actual cash balance equal to or greater 
212.23 	than the sum of the escrow balances of each debtor's account;
212.24 	(11) has defaulted in making payments to creditors on behalf of debtors as required 
212.25 	by agreements between the provider and debtor; or
212.26 	(12) has used fraudulent, coercive, or dishonest practices, or demonstrated 
212.27 	incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere.

212.28 	EFFECTIVE DATE. This section is effective January 1, 2008.

212.29 	Sec. 52. [332A.09] SUSPENDING, REVOKING, OR REFUSING TO RENEW 
212.30 	REGISTRATION.
212.31 		Subdivision 1.Procedure. The commissioner may revoke, suspend, or refuse 
212.32 	to renew any registration issued under this chapter, or may levy a civil penalty under 
212.33 	section 45.027, or any combination of actions, if the debt management services provider 
212.34 	or any controlling or affiliated person has committed any act or omission for which the 
212.35 	commissioner could have refused to issue an initial registration or renew an existing 
213.1 	registration. Revocation of or refusal to renew a registration must be upon notice and 
213.2 	hearing as prescribed in the Administrative Procedure Act, sections 14.57 to 14.69. The 
213.3 	notice must set a time for hearing before the commissioner not less than 20 nor more than 
213.4 	30 days after service of the notice, provided the registrant may waive the 20-day minimum. 
213.5 	The commissioner may, in the notice, suspend the registration for a period not to exceed 60 
213.6 	days. Unless the notice states that the registration is suspended, pending the determination 
213.7 	of the main issue, the registrant may continue to transact business until the final decision of 
213.8 	the commissioner. If the registration is suspended, the commissioner shall hold a hearing 
213.9 	and render a final determination within ten days of a request by the registrant. If the 
213.10 	commissioner fails to do so, the suspension shall terminate and be of no force or effect.
213.11 		Subd. 2.Notification of interested persons. After the notice and hearing required 
213.12 	in subdivision 1, upon issuing an order suspending or revoking a registration or refusing to 
213.13 	renew a registration, the commissioner may notify all individuals who have contracts with 
213.14 	the affected registrant and all creditors who have agreed to a debt management services 
213.15 	plan that the registration has been revoked and that the order is subject to appeal.
213.16 		Subd. 3.Receiver for funds of sanctioned registrant. When an order is issued 
213.17 	revoking or refusing to renew a registration, the commissioner may apply for, and the 
213.18 	district court must appoint, a receiver to temporarily or permanently receive the assets of 
213.19 	the registrant pending a final determination of the validity of the order.

213.20 	EFFECTIVE DATE. This section is effective January 1, 2008.

213.21 	Sec. 53. [332A.10] WRITTEN DEBT MANAGEMENT SERVICES 
213.22 	AGREEMENT.
213.23 		Subdivision 1.Written agreement required. A debt management services provider 
213.24 	may not perform any debt management services or receive any money related to a debt 
213.25 	management services plan until the provider has obtained a debt management services 
213.26 	agreement that contains all  terms of the agreement between the debt management services 
213.27 	provider and the debtor. A debt management services agreement must be in writing, dated, 
213.28 	and signed by the debt management services provider and the debtor. The registrant must 
213.29 	furnish the debtor with a copy of the signed contract upon execution.
213.30 		Subd. 2.Actions prior to written agreement. No person may provide debt 
213.31 	management services for a debtor unless the person first has:
213.32 	(1) provided the debtor individualized counseling and educational information 
213.33 	that, at a minimum, addresses managing household finances, managing credit and debt, 
213.34 	budgeting, and personal savings strategies;
214.1 	(2) prepared in writing and provided to the debtor, in a form that the debtor may 
214.2 	keep, an individualized financial analysis and a proposed debt management services 
214.3 	plan listing the debtor's known debts with specific recommendations regarding actions 
214.4 	the debtor should take to reduce or eliminate the amount of the debts, including written 
214.5 	disclosure that debt management services are not suitable for all debtors and that there are 
214.6 	other ways, including bankruptcy, to deal with indebtedness;
214.7 	(3) made a determination supported by an individualized financial analysis that the 
214.8 	debtor can reasonably meet the requirements of the proposed debt management services 
214.9 	plan and that there is a net tangible benefit to the debtor of entering into the proposed debt 
214.10 	management services plan; and
214.11 	(4) prepared, in a form the debtor may keep, a written list identifying all known 
214.12 	creditors of the debtor that the provider reasonably expects to participate in the plan 
214.13 	and the creditors, including secured creditors, that the provider reasonably expects not 
214.14 	to participate.
214.15 		Subd. 3.Required terms. (a) Each debt management services agreement must 
214.16 	contain the following terms, which must be disclosed prominently and clearly in bold print 
214.17 	on the front page of the agreement, segregated by bold lines from all other information on 
214.18 	the page:
214.19 	(1) the fee amount to be paid by the debtor and whether the initial fee amount is 
214.20 	refundable or nonrefundable;
214.21 	(2) the monthly fee amount or percentage to be paid by the debtor; and
214.22 	(3) the total amount of fees reasonably anticipated to be paid by the debtor over 
214.23 	the term of the agreement.
214.24 	(b) Each debt management services agreement must also contain the following:
214.25 	(1) a disclosure that if the amount of debt owed is increased by interest, late fees, 
214.26 	over the limit fees, and other amounts imposed by the creditors, the length of the debt 
214.27 	management services agreement will be extended and remain in force and that the total 
214.28 	dollar charges agreed upon may increase at the rate agreed upon in the original contract 
214.29 	agreement;
214.30 	(2) a prominent statement describing the terms upon which the debtor may cancel 
214.31 	the contract as set forth in section 332A.11;
214.32 	(3) a detailed description of all services to be performed by the debt management 
214.33 	services provider for the debtor;
214.34 	(4) the debt management services provider's refund policy; and
214.35 	(5) the debt management services provider's principal business address and the name 
214.36 	and address of its agent in this state authorized to receive service of process.
215.1 		Subd. 4.Prohibited terms. The following terms shall not be included in the debt 
215.2 	management services agreement:
215.3 	(1) a hold harmless clause;
215.4 	(2) a confession of judgment, or a power of attorney to confess judgment against the 
215.5 	debtor or appear as the debtor in any judicial proceeding;
215.6 	(3) a waiver of the right to a jury trial, if applicable, in any action brought by 
215.7 	or against a debtor;
215.8 	(4) an assignment of or an order for payment of wages or other compensation for 
215.9 	services;
215.10 	(5) a provision in which the debtor agrees not to assert any claim or defense arising 
215.11 	out of the debt management services agreement;
215.12 	(6) a waiver of any provision of this chapter or a release of any obligation required 
215.13 	to be performed on the part of the debt management services provider; or
215.14 	(7) a mandatory arbitration clause.
215.15 		Subd. 5.New debt management services agreements; modification of existing 
215.16 	agreements. (a) Separate and additional debt management services agreements that 
215.17 	comply with this chapter may be entered into by the debt management services provider 
215.18 	and the debtor provided that no additional initial fee may be charged by the debt 
215.19 	management services provider.
215.20 	(b) Any modification of an existing debt management services agreement, including 
215.21 	any increase in the number or amount of debts included in the debt management service, 
215.22 	must be in writing and signed by both parties. No fees, charges, or other consideration 
215.23 	may be demanded from the debtor for the modification, other than an increase in the 
215.24 	amount of the monthly maintenance fee established in the original debt management 
215.25 	services agreement.

215.26 	EFFECTIVE DATE. This section is effective January 1, 2008.

215.27 	Sec. 54. [332A.11] RIGHT TO CANCEL.
215.28 		Subdivision 1.Debtor's right to cancel. A debtor has the right to cancel the debt 
215.29 	management services agreement without cause at any time upon ten days' written notice to 
215.30 	the debt management services provider. In the event of cancellation, the debt management 
215.31 	services provider must, within ten days of the cancellation, notify the debtor's creditors of 
215.32 	the cancellation and provide a refund of all unexpended funds paid by or for the debtor to 
215.33 	the debt management services provider.
215.34 		Subd. 2.Notice of debtor's right to cancel. A debt management services 
215.35 	agreement must contain, on its face, in an easily readable typeface immediately adjacent 
216.1 	to the space for signature by the debtor, the following notice: "Right To Cancel: You have 
216.2 	the right to cancel this contract at any time on ten days' written notice." 
216.3 		Subd. 3.Automatic termination. Upon the payment of all listed debts and 
216.4 	fees, the debt management services agreement must automatically terminate, and all 
216.5 	unexpended funds paid by or for the debtor to the debt management services provider 
216.6 	must be immediately returned to the debtor.
216.7 		Subd. 4.Debt management services provider's right to cancel. A debt 
216.8 	management services provider may cancel a debt management services agreement 
216.9 	with good cause upon 30 days' written notice to the debtor. Within ten days after the 
216.10 	cancellation, the debt management services provider must: (1) notify the debtor's creditors 
216.11 	of the cancellation; and (2) return to the debtor all unexpended funds paid by or for the 
216.12 	debtor.

216.13 	EFFECTIVE DATE. This section is effective January 1, 2008.

216.14 	Sec. 55. [332A.12] BOOKS, RECORDS, AND INFORMATION.
216.15 		Subdivision 1.Records retention. Every registrant must keep, and use in the 
216.16 	registrant's business, such books, accounts, and records, including electronic records, as 
216.17 	will enable the commissioner to determine whether the registrant is complying with this 
216.18 	chapter and of the rules, orders, and directives adopted by the commissioner under this 
216.19 	chapter. Every registrant must preserve such books, accounts, and records for at least six 
216.20 	years after making the final entry on any transaction recorded therein. Examinations of 
216.21 	the books, records, and method of operations conducted under the supervision of the 
216.22 	commissioner shall be done at the cost of the registrant. The cost must be assessed as 
216.23 	determined under section 46.131.
216.24 		Subd. 2.Statements to debtors. Each registrant must maintain and must make 
216.25 	available records and accounts that will enable each debtor to ascertain the amounts 
216.26 	paid to the creditors of the debtor. A statement showing amounts received from the 
216.27 	debtor, disbursements to each creditor, amounts which any creditor has agreed to accept 
216.28 	as payment in full for any debt owed the creditor by the debtor, charges deducted by 
216.29 	the registrant, and such other information as the commissioner may prescribe, must be 
216.30 	furnished by the registrant to the debtor at least monthly and, in addition, upon any 
216.31 	cancellation or termination of the contract. In addition to the statements required by this 
216.32 	subdivision, each debtor must have reasonable access, without cost, by electronic or other 
216.33 	means, to information in the registrant's files applicable to the debtor. These statements, 
216.34 	records, and accounts must otherwise remain confidential except for duly authorized state 
216.35 	and government officials, the commissioner, the attorney general, the debtor, and the 
217.1 	debtor's representative and designees. Each registrant must prepare and retain in the file of 
217.2 	each debtor a written analysis of the debtor's income and expenses to substantiate that the 
217.3 	plan of payment is feasible and practicable.

217.4 	EFFECTIVE DATE. This section is effective January 1, 2008.

217.5 	Sec. 56. [332A.13] FEES, PAYMENTS, AND CONSENT OF CREDITORS.
217.6 		Subdivision 1.Origination fee. The registrant may charge a nonrefundable 
217.7 	origination fee of not more than $50, which may be retained by the registrant from the 
217.8 	initial amount paid by the debtor to the registrant. 
217.9 		Subd. 2.Monthly maintenance fee. The registrant may charge a periodic fee for 
217.10 	account maintenance or other purposes, but only if the fee is reasonable for the services 
217.11 	provided and does not exceed the lesser of 15 percent of the monthly payment amount or 
217.12 	$75.
217.13 		Subd. 3.Additional fees unauthorized. A registrant may not impose any fee or 
217.14 	other charge or receive any funds or other payment other than the initial fee or monthly 
217.15 	maintenance fee authorized by this section.
217.16 		Subd. 4.Amount of periodic payments retained. The registrant may retain as 
217.17 	payment for the fees authorized by this section no more than 15 percent of any periodic 
217.18 	payment made to the registrant by the debtor. The remaining 85 percent must be disbursed 
217.19 	to listed creditors under and in accordance with the debt management services agreement. 
217.20 	No fees or charges may be received or retained by the registrant for any handling of 
217.21 	recurring payments. Recurring payments include current rent, mortgage, utility, telephone, 
217.22 	maintenance as defined in section 518.27, child support, insurance premiums, and such 
217.23 	other payments as the commissioner may by rule prescribe.
217.24 		Subd. 5.Advance payments. No fees or charges may be received or retained for 
217.25 	any payments by the debtor made more than the following number of days in advance 
217.26 	of the date specified in the debt management services agreement on which they are due: 
217.27 	(1) 42 days in the case of contracts requiring monthly payments; (2) 15 days in the case 
217.28 	of agreements requiring biweekly payments; or (3) seven days in the case of agreements 
217.29 	requiring weekly payments. For those agreements which do not require payments in 
217.30 	specified amounts, a payment is deemed an advance payment to the extent it exceeds 
217.31 	twice the average regular payment previously made by the debtor under that contract. This 
217.32 	subdivision does not apply when the debtor intends to use the advance payments to satisfy 
217.33 	future payment of obligations due within 30 days under the contract. This subdivision 
217.34 	supersedes any inconsistent provision of this chapter.
218.1 		Subd. 6.Consent of creditors. A registrant must actively seek to obtain the consent 
218.2 	of all creditors to the debt management services plan set forth in the debt management 
218.3 	services agreement. Consent by a creditor may be express and in writing, or may be 
218.4 	evidenced by acceptance of a payment made under the debt management services plan 
218.5 	set forth in the contract. The registrant must notify the debtor within ten days after any 
218.6 	failure to obtain the required consent and of the debtor's right to cancel without penalty. 
218.7 	The notice must be in a form as the commissioner shall prescribe. Nothing contained in 
218.8 	this section is deemed to require the return of any origination fee and any fees earned by 
218.9 	the registrant prior to cancellation or default.
218.10 		Subd. 7.Withdrawal of creditor. Whenever a creditor withdraws from a debt 
218.11 	management services plan, or refuses to participate in a debt management services plan, 
218.12 	the registrant must promptly notify the debtor of the withdrawal or refusal. In no case may 
218.13 	this notice be provided more than 15 days after the debt management services provider 
218.14 	learns of the creditor's decision to withdraw from or refuse to participate in a plan. This 
218.15 	notice must include the identity of the creditor withdrawing from the plan, the amount of 
218.16 	the monthly payment to that creditor, and the right of the debtor to cancel the agreement 
218.17 	under section 332A.11.
218.18 		Subd. 8.Payments held in trust. The registrant must maintain a separate trust 
218.19 	account and deposit in the account all payments received from the moment that they are 
218.20 	received, except that the registrant may commingle the payment with the registrant's 
218.21 	own property or funds, but only to the extent necessary to ensure the maintenance of a 
218.22 	minimum balance if the financial institution at which the trust account is held requires 
218.23 	a minimum balance to avoid the assessment of fees or penalties for failure to maintain 
218.24 	a minimum balance. All disbursements, whether to the debtor or to the creditors of the 
218.25 	debtor, or to the registrant, must be made from such account.
218.26 		Subd. 9.Timely payment of creditors. The registrant must disburse any funds paid 
218.27 	by or on behalf of a debtor to creditors of the consumer within 42 days after receipt of 
218.28 	the funds, or earlier if necessary to comply with the due date in the agreement between 
218.29 	the debtor and the creditor, unless the reasonable payment of one or more of the debtor's 
218.30 	obligations requires that the funds be held for a longer period so as to accumulate a sum 
218.31 	certain, or where the debtor's payment is returned for insufficient funds or other reason 
218.32 	that makes the withholding of such payments in the net interest of the debtor.

218.33 	EFFECTIVE DATE. This section is effective January 1, 2008.

218.34 	Sec. 57. [332A.14] PROHIBITIONS.
218.35 	A registrant shall not:
219.1 	(1) purchase from a creditor any obligation of a debtor;
219.2 	(2) use, threaten to use, seek to have used, or seek to have threatened the use of any 
219.3 	legal process, including but not limited to garnishment and repossession of personal 
219.4 	property, against any debtor while the debt management services agreement between the 
219.5 	registrant and the debtor remains executory;
219.6 	(3) advise a debtor to stop paying a creditor until a debt management services plan is 
219.7 	in place;
219.8 	(4) require as a condition of performing debt management services the purchase of 
219.9 	any services, stock, insurance, commodity, or other property or any interest therein either 
219.10 	by the debtor or the registrant;
219.11 	(5) compromise any debts unless the prior written approval of the debtor has been 
219.12 	obtained to such compromise and unless such compromise inures solely to the benefit 
219.13 	of the debtor;
219.14 	(6) receive from any debtor as security or in payment of any fee a promissory note 
219.15 	or other promise to pay or any mortgage or other security, whether as to real or personal 
219.16 	property;
219.17 	(7) lend money or provide credit to any debtor if any interest or fee is charged, 
219.18 	or directly or indirectly collect any fee for referring, advising, procuring, arranging, or 
219.19 	assisting a consumer in obtaining any extension of credit or other debtor service from a 
219.20 	lender or debt management services provider;
219.21 	(8) structure a debt management services agreement that would result in negative 
219.22 	amortization of any debt in the plan;
219.23 	(9) engage in any unfair, deceptive, or unconscionable act or practice in connection 
219.24 	with any service provided to any debtor;
219.25 	(10) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or other 
219.26 	compensation to any person for referring any prospective customer to the registrant or for 
219.27 	enrolling a debtor in a debt management services plan, or provide any other incentives 
219.28 	for employees or agents of the debt management services provider to induce debtors to 
219.29 	enter into a debt management services plan;
219.30 	(11) receive any cash, fee, gift, bonus, premium, reward, or other compensation 
219.31 	from any person other than the debtor or a person on the debtor's behalf in connection 
219.32 	with activities as a registrant, provided that this paragraph does not apply to a registrant 
219.33 	which is a bona fide nonprofit corporation duly organized under chapter 317A or under 
219.34 	the similar laws of another state;
220.1 	(12) enter into a contract with a debtor unless a thorough written budget analysis 
220.2 	indicates that the debtor can reasonably meet the requirements of the financial adjustment 
220.3 	plan and will be benefited by the plan;
220.4 	(13) in any way charge or purport to charge or provide any debtor credit insurance in 
220.5 	conjunction with any contract or agreement involved in the debt management services 
220.6 	plan;
220.7 	(14) operate or employ a person who is an employee or owner of a collection agency 
220.8 	or process-serving business; or
220.9 	(15) solicit, demand, collect, require, or attempt to require payment of a sum that the 
220.10 	registrant states, discloses, or advertises to be a voluntary contribution from the debtor.

220.11 	EFFECTIVE DATE. This section is effective January 1, 2008.

220.12 	Sec. 58. [332A.16] ADVERTISEMENT OF DEBT MANAGEMENT SERVICES 
220.13 	PLANS.
220.14 	No debt management services provider may make false, deceptive, or misleading 
220.15 	statements or omissions about the rates, terms, or conditions of an actual or proposed 
220.16 	debt management services plan or its debt management services, or create the likelihood 
220.17 	of consumer confusion or misunderstanding regarding its services, including but not 
220.18 	limited to the following:
220.19 	(1) represent that the debt management services provider is a nonprofit, not-for-profit, 
220.20 	or has similar status or characteristics if some or all of the debt management services will 
220.21 	be provided by a for-profit company that is a controlling or affiliated party to the debt 
220.22 	management services provider; or
220.23 	(2) make any communication that gives the impression that the debt management 
220.24 	services provider is acting on behalf of a government agency.

220.25 	EFFECTIVE DATE. This section is effective January 1, 2008.

220.26 	Sec. 59. [332A.17] DEBT MANAGEMENT SERVICES AGREEMENT 
220.27 	RESCISSION.
220.28 	Any debtor has the right to rescind any debt management services agreement with 
220.29 	a debt management services provider that commits a material violation of this chapter. 
220.30 	On rescission, all fees paid to the debt management services provider or any other person 
220.31 	other than creditors of the debtor must be returned to the debtor entering into the debt 
220.32 	management services agreement within ten days of rescission of the debt management 
220.33 	services agreement.

221.1 	EFFECTIVE DATE. This section is effective January 1, 2008.

221.2 	Sec. 60. [332A.18] ENFORCEMENT; REMEDIES.
221.3 		Subdivision 1.Violation a deceptive practice. A violation of any of the provisions 
221.4 	of this chapter is considered an unfair or deceptive trade practice under section 8.31, 
221.5 	subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in 
221.6 	the public interest.
221.7 		Subd. 2.Private right of action. (a) A debt management services provider who 
221.8 	fails to comply with any of the provisions of this chapter is liable under this section in an 
221.9 	individual action for the sum of (i) actual, incidental, and consequential damages sustained 
221.10 	by the debtor as a result of the failure; and (ii) statutory damages of up to $1,000.
221.11 	(b) A debt management services provider who fails to comply with any of the 
221.12 	provisions of this chapter is liable to the named plaintiffs under this section in a class 
221.13 	action for the amount that each named plaintiff could recover under paragraph (a), clause 
221.14 	(i), and to the other class members for such amount as the court may allow.
221.15 	(c) In determining the amount of statutory damages, the court shall consider, among 
221.16 	other relevant factors:
221.17 	(1) the frequency, nature, and persistence of noncompliance;
221.18 	(2) the extent to which the noncompliance was intentional; and
221.19 	(3) in the case of a class action, the number of debtors adversely affected.
221.20 	(d) A plaintiff or class successful in a legal or equitable action under this section is 
221.21 	entitled to the costs of the action, plus reasonable attorney fees.
221.22 		Subd. 3.Injunctive relief. A debtor may sue a debt management services provider 
221.23 	for temporary or permanent injunctive or other appropriate equitable relief to prevent 
221.24 	violations of any provision of this chapter. A court must grant injunctive relief on a 
221.25 	showing that the debt management services provider has violated any provision of this 
221.26 	chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to 
221.27 	prevail on allegations that the debt management services provider violated  any provision 
221.28 	of this chapter.
221.29 		Subd. 4.Remedies cumulative. The remedies provided in this section are 
221.30 	cumulative and do not restrict any remedy that is otherwise available. The provisions 
221.31 	of this chapter are not exclusive and are in addition to any other requirements, rights, 
221.32 	remedies, and penalties provided by law.
221.33 		Subd. 5.Public enforcement. The attorney general shall enforce this chapter 
221.34 	under section 8.31.

221.35 	EFFECTIVE DATE. This section is effective January 1, 2008.

222.1 	Sec. 61. [332A.19] INVESTIGATION.
222.2 	At any reasonable time, the commissioner may examine the books and records of 
222.3 	every registrant and of any person engaged in the business of providing debt management 
222.4 	services as defined in section 332A.02. The commissioner once during any calendar year 
222.5 	may require the submission of an audit prepared by a certified public accountant of the 
222.6 	books and records of each registrant. If the registrant has, within one year previous to the 
222.7 	commissioner's demand, had an audit prepared for some other purpose, this audit may be 
222.8 	submitted to satisfy the requirement of this section. The commissioner may investigate 
222.9 	any complaint concerning violations of this chapter and may require the attendance and 
222.10 	sworn testimony of witnesses and the production of documents.

222.11 	EFFECTIVE DATE. This section is effective January 1, 2008.

222.12 	Sec. 62. LICENSE RENEWAL EXTENSION.
 222.13 	The July 31, 2007, renewal date for mortgage originators is extended to October 30, 
222.14 	2007, because of the changes to the licensing requirements made by this article.

222.15 	Sec. 63. DELAYED LICENSE RENEWAL DATE FOR REAL ESTATE 
222.16 	BROKERS AND SALESPERSONS.
 222.17 	The June 30, 2007, renewal date for licenses of real estate brokers and salespersons 
222.18 	is extended to August 31, 2007, due to the technology surcharge created in this act.

222.19 	Sec. 64.  REPEALER.
 222.20 	(a) Minnesota Statutes 2006, sections 46.043; 47.62, subdivision 5; and 58.08, 
222.21 	subdivision 1, are repealed.
222.22 	(b) Minnesota Statutes 2006, sections 332.12; 332.13; 332.14; 332.15; 332.16; 
222.23 	332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 332.23; 332.24; 332.25; 332.26; 332.27; 
222.24 	332.28; and 332.29, are repealed effective January 1, 2008.