CONFERENCE COMMITTEE REPORT ON H. F. No. 2123
relating to state government; environment, natural resources, and energy
finance; appropriating money for environment and natural resources; authorizing
sale of gift cards and certificates; establishing composting competitive grant
program; modifying regulation of storm water discharges; modifying waste
management reporting requirements and creating a work group; requiring
nonresident all-terrain vehicle state trail pass; modifying horse trail and state
park pass requirements; requiring disclosure of certain chemicals in children's
products by manufacturers; requiring plastic yard waste bags to be compostable
and establishing labeling standards; authorizing uses of the Hennepin County
solid and hazardous waste fund; modifying greenhouse gas emissions provisions
and requiring a registry; establishing and authorizing fees; providing for
disposition of certain fees; modifying and establishing assessments for certain
regulatory expenses; providing for fish consumption advisories in different
languages; limiting use of certain funds; requiring reports; appropriating
money to Department of Commerce and Public Utilities Commission to finance
activities related to commerce and energy; modifying provisions related to
Telecommunications Access Minnesota assessments, insurance audits, insurers
and insurance products, certain financial institutions, regulated activities related
to certain mortgage transactions and professionals, and debt management and
debt settlement services; providing penalties and remedies; appropriating and
allocating federal stimulus money for various energy programs;amending
Minnesota Statutes 2008, sections 45.011, subdivision 1; 45.027, subdivision 1;
46.04, subdivision 1; 46.05; 46.131, subdivision 2; 47.58, subdivision 1; 47.60,
subdivisions 1, 3, 6; 48.21; 58.05, subdivision 3; 58.06, subdivision 2; 58.126;
58.13, subdivision 1; 60A.124; 60A.14, subdivision 1; 60B.03, subdivision 15;
60L.02, subdivision 3; 61B.19, subdivision 4; 61B.28, subdivisions 4, 8; 67A.01;
67A.06; 67A.07; 67A.14, subdivisions 1, 7; 67A.18, subdivision 1; 84.0835,
subdivision 3; 84.415, subdivision 5, by adding a subdivision; 84.63; 84.631;
84.632; 84.788, subdivision 3; 84.922, subdivision 1a; 85.015, subdivision 1b;
85.053, subdivision 10; 85.46, subdivisions 3, 4, 7; 93.481, subdivisions 1, 3, 5,
7; 97A.075, subdivision 1; 103G.301, subdivisions 2, 3; 115.03, subdivision 5c;
115.073; 115.56, subdivision 4; 115.77, subdivision 1; 115A.1314, subdivision 2;
115A.557, subdivision 3; 115A.931; 116.07, subdivision 4d; 116.41, subdivision
2; 116C.834, subdivision 1; 116D.045; 216B.62, subdivisions 3, 4, 5, by
adding a subdivision; 216H.10, subdivision 7; 216H.11; 325E.311, subdivision
6; 332A.02, subdivisions 5, 8, 9, 10, 13, by adding a subdivision; 332A.04,
subdivision 6; 332A.08; 332A.10; 332A.11, subdivision 2; 332A.14; Laws 2002,
chapter 220, article 8, section 15; Laws 2007, chapter 57, article 1, section
4, subdivision 2; Laws 2008, chapter 363, article 5, section 4, subdivision
7; proposing coding for new law in Minnesota Statutes, chapters 60A; 61A;
67A; 84; 93; 115A; 116; 216H; 325E; 383B; proposing coding for new law as
Minnesota Statutes, chapter 332B; repealing Minnesota Statutes 2008, sections
60A.129; 61B.19, subdivision 6; 67A.14, subdivision 5; 67A.17; 67A.19; Laws
2008, chapter 363, article 5, section 30; Minnesota Rules, parts 2675.2180;
2675.7100; 2675.7110; 2675.7120; 2675.7130; 2675.7140.
May 4, 2009
The Honorable Margaret Anderson Kelliher
Speaker of the House of Representatives
The Honorable James P. Metzen
President of the Senate
We, the undersigned conferees for H. F. No. 2123 report that we have agreed upon
the items in dispute and recommend as follows:
That the Senate recede from its amendment and that H. F. No. 2123 be further
amended as follows:
Delete everything after the enacting clause and insert:
2.17ENVIRONMENT AND NATURAL RESOURCES FINANCE
2.19 The amounts shown in this section summarize direct appropriations, by fund, made
2.20in this article.
|Section 1. SUMMARY OF APPROPRIATIONS.
|State Government Special
|Game and Fish
2.32 The sums shown in the columns marked "Appropriations" are appropriated to the
2.33agencies and for the purposes specified in this article. The appropriations are from the
2.34general fund, or another named fund, and are available for the fiscal years indicated
3.1for each purpose. The figures "2010" and "2011" used in this article mean that the
3.2appropriations listed under them are available for the fiscal year ending June 30, 2010, or
3.3June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
3.4year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal
3.5year ending June 30, 2009, are effective the day following final enactment.
|Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
||Available for the Year
||Ending June 30
|Sec. 3. POLLUTION CONTROL AGENCY
|Subdivision 1.Total Appropriation
3.19The amounts that may be spent for each
3.20purpose are specified in the following
3.22The commissioner shall require the chief
3.23financial officer or other financial staff to
3.24display the agency's budget on the agency's
3.25Web site in a manner that will allow citizens
3.26to understand more easily the value they are
3.27getting for their money. The agency must
3.28have an air permit and regulatory account,
3.29water permit and regulatory account, and
3.30solid waste permit and regulatory account to
3.31track revenues and expenses.
4.1By October 1, 2010 and 2011, the
4.2commissioner shall submit a report to the
4.3chairs of the legislative committees with
4.4primary jurisdiction over the environment
4.5and natural resources policy and finance
4.6that includes the number of environmental
4.7assessment worksheets completed in the
4.8previous fiscal year, the total number of
4.9staff hours spent on those environmental
4.10assessment worksheets, and the average and
4.11median number of hours spent per completed
4.12environmental assessment worksheet.
4.13Fee rules adopted by the agency during fiscal
4.14year 2010 are effective retroactively on July
4.16A recipient of a grant funded by an
4.17appropriation under this section shall display
4.18on its Web site detailed information on
4.19the expenditure of the grant funds, and
4.20measurable outcomes as a result of the
4.21expenditure of funds, and submit this
4.22information to the agency by June 30 each
4.23year. A recipient without an active Web site
4.24shall report to the agency by June 30 each
4.25year detailed information on the expenditure
4.26of the grant funds, and measurable outcomes
4.27as a result of the expenditure of funds. The
4.28commissioner shall display the information
4.29received by recipients under this paragraph
4.30on the agency's Web site.
|Appropriations by Fund
5.4$2,348,000 the first year and $2,348,000
5.5the second year are for the clean water
5.6partnership program. Priority shall be
5.7given to projects preventing impairments
5.8and degradation of lakes, rivers, streams,
5.9and groundwater according to Minnesota
5.10Statutes, section 114D.20, subdivision 2,
5.11clause (4). Funds from this appropriation
5.12may not be used to purchase or use pesticides
5.13suspected by current science of being
5.14endocrine disruptors. To the extent possible,
5.15with money from this appropriation, a
5.16person must plant vegetation or sow seed
5.17only of ecotypes native to Minnesota, and
5.18preferably of the local ecotype, using a high
5.19diversity of species originating from as
5.20close to the restoration site as possible, and
5.21protect existing native prairies from genetic
5.22contamination. Any balance remaining in the
5.23first year does not cancel and is available for
5.24the second year.
5.25$2,164,000 the first year and $2,164,000 the
5.26second year must be distributed as grants to
5.27delegated counties to administer the county
5.28feedlot program under new Minnesota
5.29Statutes, section 116.0711, subdivisions 2
5.30and 3. Any money remaining after the first
5.31year is available for the second year.
5.32$310,000 the first year and $310,000 the
5.33second year are for community technical
5.34assistance and education, including grants
6.1and technical assistance to communities for
6.2local and basinwide water quality protection.
6.3$100,000 the first year is for grants to
6.4local units of government to implement
6.5cost-effective projects to control runoff,
6.6prevent erosion, and provide ditch
6.7stabilization, in order to protect water quality
6.8in lakes, rivers, and streams and to protect
6.9groundwater from degradation. This is a
6.11$350,000 the first year and $350,000 the
6.12second year are for challenge grants to
6.13counties for subsurface sewage treatment
6.14system (SSTS) inventories that will
6.15determine the number of systems that are
6.16failing or that pose an imminent health threat
6.17and are located on riparian land or a lake
6.18or near wetlands or other sensitive waters.
6.19Counties must provide a nonstate match of
6.20at least 50 percent that may be in cash or in
6.21kind. The commissioner shall, by county,
6.22report: the number of systems evaluated, the
6.23number of systems determined to be failing
6.24or that pose an imminent health threat located
6.25on riparian land or a lake or near wetlands or
6.26other sensitive waters, the number replaced
6.27or soon to be replaced, and the gallons of
6.28sewage that are prevented from threatening
6.29waters. The commissioner shall develop
6.30recommendations and a plan for directly
6.31or indirectly inspecting and providing an
6.32inventory for all subsurface sewage treatment
6.33systems and submit a report to the chairs of
6.34the legislative committees having primary
6.35jurisdiction over environment and natural
6.36resources policy and finance no later than
7.1September 15, 2010. Direct inspection
7.2methods shall include field verification of
7.3each SSTS on riparian land or a lake or
7.4near wetlands or other sensitive waters to
7.5determine the owner, location, and which
7.6systems are failing or are an imminent
7.7health threat. Indirect inspection methods
7.8may include census-type data collection to
7.9determine the owner and location of each
7.10SSTS in the remaining portion of each
7.11county. An SSTS with a valid certificate of
7.12compliance may be considered inventoried
7.13without further work. This is a onetime
7.15$375,000 the first year and $375,000 the
7.16second year are for subsurface sewage
7.17treatment system (SSTS) administration and
7.18grants. Of this amount, $80,000 each year
7.19is for assistance to counties through grants
7.20for SSTS program administration. Any
7.21unexpended balance in the first year does not
7.22cancel but is available in the second year.
7.23$740,000 the first year and $740,000 the
7.24second year are from the environmental
7.25fund to address the need for continued
7.26increased activity in the areas of new
7.27technology review, technical assistance
7.28for local governments, and enforcement
7.29under Minnesota Statutes, sections 115.55
7.30to 115.58, and to complete the requirements
7.31of Laws 2003, chapter 128, article 1, section
7.32165. Of this amount, $48,000 each year is for
7.33administration of individual septic tank fees,
7.34as provided in this article.
8.1$1,250,000 the first year and $1,250,000
8.2the second year are for assessment and
8.3monitoring of lakes, rivers, and streams.
8.4$100,000 the first year and $100,000 the
8.5second year are for a grant to the Red River
8.6Watershed Management Board to enhance
8.7and expand existing river watch activities in
8.8the Red River of the North and shall enhance
8.9student understanding of the causes of
8.10flooding, flood prevention, and the impacts
8.11of flood waters on land and water resources.
8.12The Red River Watershed Management
8.13Board shall provide a report that includes
8.14formal evaluation results from the river
8.15watch program to the commissioners of
8.16education and the Pollution Control Agency
8.17and to the legislative committees with
8.18jurisdiction over the environment and natural
8.19resources policy and finance and K-12 policy
8.20and finance by February 15, 2011. This is a
8.22$7,540,000 the first year and $7,540,000
8.23the second year are from the environmental
8.24fund for completion of 20 percent of the
8.25needed statewide assessments of surface
8.26water quality and trends.
8.27$500,000 the first year is to develop minimal
8.28impact design standards for urban storm
8.29water runoff. This is a onetime appropriation
8.30and is available until June 30, 2011. The
8.31commissioner shall report to the chairs and
8.32ranking minority members of the legislative
8.33committees and divisions having primary
8.34jurisdiction over environment and natural
8.35resources policy and finance no later than
9.1January 12, 2011, regarding the expenditure
9.2of this appropriation.
9.3By October 1, 2009 and 2010, the
9.4commissioner shall report to the chairs
9.5of the legislative committees having
9.6primary jurisdiction over environment and
9.7natural resources policy and finance on the
9.8effectiveness of enforcement actions in the
9.9previous fiscal year in preventing water
9.11The commissioner shall continue the
9.12rulemaking process to better align water
9.13permit fee revenue for fiscal years 2010,
9.142011, 2012, and 2013 with the cost of issuing
9.15permits, including environmental review.
9.16Notwithstanding Minnesota Statutes, section
9.1716A.28, the appropriations encumbered on or
9.18before June 30, 2011, as grants or contracts
9.19for clean water partnership, SSTS's, surface
9.20water and groundwater assessments, total
9.21maximum daily loads, stormwater, and local
9.22basinwide water quality protection in this
9.23subdivision are available until June 30, 2013.
|Appropriations by Fund
9.27Up to $150,000 the first year and $150,000
9.28the second year may be transferred from the
9.29environmental fund to the small business
9.30environmental improvement loan account
9.31established in Minnesota Statutes, section
10.1$200,000 the first year and $200,000 the
10.2second year are from the environmental fund
10.3for a monitoring program under Minnesota
10.4Statutes, section 116.454.
10.5$125,000 the first year and $125,000 the
10.6second year are from the environmental fund
10.7for monitoring ambient air for hazardous
10.8pollutants in the metropolitan area.
10.9An agency report on the level of fine
10.10particulate matter in Minnesota's air must
10.11compare measured levels with a 24-hour
10.12PM 2.5 standard of 13 to 14 micrograms
10.13per cubic meter and an annual PM 2.5
10.14standard of 30 to 35 micrograms per cubic
10.15meter, as recommended by the Particulate
10.16Matter Review Panel of the Environmental
10.17Protection Agency's Clean Air Scientific
10.18Advisory Committee in its June 2005 report,
10.19EPA's Review of the National Ambient Air
10.20Quality Standards for Particulate Matter
10.21(Second Draft PM Staff Paper, January
10.23$700,000 the first year and $700,000 the
10.24second year are from the environmental
10.25fund for an air emissions database, including
10.26monitoring greenhouse gas emissions.
10.27The commissioner shall continue the
10.28rulemaking process to better align air quality
10.29fee revenue for fiscal years 2010, 2011, 2012,
10.30and 2013 with the cost of issuing permits,
10.31including environmental review.
|Appropriations by Fund
11.5All money for environmental response,
11.6compensation, and compliance in the
11.7remediation fund not otherwise appropriated
11.8is appropriated to the commissioners of the
11.9Pollution Control Agency and agriculture
11.10for purposes of Minnesota Statutes, section
11.11115B.20, subdivision 2, clauses (1), (2),
11.12(3), (6), and (7). At the beginning of each
11.13fiscal year, the two commissioners shall
11.14jointly submit an annual spending plan to
11.15the commissioner of finance that maximizes
11.16the utilization of resources and appropriately
11.17allocates the money between the two
11.18departments. This appropriation is available
11.19until June 20, 2011.
11.20$3,616,000 the first year and $3,616,000 the
11.21second year are from the petroleum tank fund
11.22to be transferred to the remediation fund for
11.23purposes of the leaking underground storage
11.24tank program to protect the land.
11.25$252,000 the first year and $252,000 the
11.26second year are from the remediation fund to
11.27be transferred to the Department of Health for
11.28private water supply monitoring and health
11.29assessment costs in areas contaminated
11.30by unpermitted mixed municipal solid
11.31waste disposal facilities and drinking water
11.32advisories and public information activities
11.33for areas contaminated by hazardous releases.
12.1$500,000 each year is for environmental
12.2health tracking and biomonitoring of a
12.3representative sample of the population
12.4including indigenous people and people of
12.5color. Of this amount, $450,000 each year is
12.6for transfer to the Department of Health.
|Appropriations by Fund
|Subd. 5.Environmental Assistance and
12.12$14,250,000 each year is from the
12.13environmental fund for SCORE block grants
12.15$250,000 each year is from the environmental
12.16fund to administer the composting
12.17grant program established under new
12.18Minnesota Statutes, section 115A.559. The
12.19appropriation is added to the agency base
12.20and available until June 30, 2011.
12.21By January 15, 2012, the commissioner shall
12.22report to the legislative committees with
12.23jurisdiction over environment and natural
12.24resources policy on:
12.25(1) the mixed municipal solid waste diversion
12.26rates accomplished by the grant program
12.27under new Minnesota Statutes, section
12.29(2) participants in the grant program and the
12.30programs developed with grant funds; and
12.31(3) the potential for new permanent programs
12.32based on results of projects funded with
13.1grants issued under new Minnesota Statutes,
13.3$225,000 the first year and $89,000 the
13.4second year are from the environmental
13.5fund for duties related to harmful chemicals
13.6in products under new Minnesota Statutes,
13.7sections 116.9401 to 116.9407. Of this
13.8amount, $133,000 the first year and $57,000
13.9the second year are for transfer to the
13.10Department of Health.
13.11$119,000 the first year and $119,000 the
13.12second year are from the environmental
13.13fund for environmental assistance grants
13.14or loans under Minnesota Statutes, section
13.15115A.0716. Any unencumbered grant and
13.16loan balances in the first year do not cancel
13.17but are available for grants and loans in the
13.19All money deposited in the environmental
13.20fund for the metropolitan solid waste
13.21landfill fee in accordance with Minnesota
13.22Statutes, section 473.843, and not otherwise
13.23appropriated, is appropriated for the purposes
13.24of Minnesota Statutes, section 473.844.
13.25Notwithstanding Minnesota Statutes, section
13.2616A.28, the appropriations encumbered on
13.27or before June 30, 2011, as contracts or
13.28grants for surface water and groundwater
13.29assessments; environmental assistance
13.30awarded under Minnesota Statutes, section
13.31115A.0716; technical and research assistance
13.32under Minnesota Statutes, section 115A.152;
13.33technical assistance under Minnesota
13.34Statutes, section 115A.52; and pollution
13.35prevention assistance under Minnesota
14.1Statutes, section 115D.04, are available until
14.2June 30, 2013.
14.3Before the governor makes budget
14.4recommendations to the legislature in 2011,
14.5the commissioner must report on revenues
14.6received and expenditures made under
14.7Minnesota Statutes, section 115A.1314,
14.8subdivision 2, during fiscal years 2010
14.9and 2011 to determine if fees collected
14.10are covering the costs of the program and
14.11request that the governor recommend a direct
14.12appropriation for the purposes of that section.
|Appropriations by Fund
14.14The commissioner shall transfer $40,000,000
14.15from the environmental fund to the
14.16remediation fund for the purposes of the
14.17remediation fund under Minnesota Statutes,
14.18section 116.155, subdivision 2.
|Subd. 6.Administrative Support
|Sec. 4. NATURAL RESOURCES
|Subdivision 1.Total Appropriation
14.28The amounts that may be spent for each
14.29purpose are specified in the following
15.1To the extent possible, a person conducting
15.2restoration with money appropriated in this
15.3section must plant vegetation or sow seed
15.4only of ecotypes native to Minnesota, and
15.5preferably of the local ecotype, using a high
15.6diversity of species originating from as
15.7close to the restoration site as possible, and
15.8protect existing native prairies from genetic
15.10A recipient of a grant funded by an
15.11appropriation under this section shall display
15.12on its Web site detailed information on
15.13the expenditure of the grant funds, and
15.14measurable outcomes as a result of the
15.15expenditure of funds, and submit this
15.16information to the department by June 30
15.17each year. A recipient without an active
15.18Web site shall report to the department by
15.19June 30 each year detailed information on
15.20the expenditure of the grant funds, and
15.21measurable outcomes as a result of the
15.22expenditure of funds. The commissioner
15.23shall display the information received by
15.24recipients under this paragraph on the
15.25department's Web site.
15.26The commissioner shall require the chief
15.27financial officer or other financial staff
15.28to display the department's budget on the
15.29department's Web site in a manner that will
15.30allow citizens to easily understand the value
15.31they are getting for their money.
|Appropriations by Fund
|Game and Fish
|Subd. 2.Land and Mineral Resources
16.6$1,202,000 the first year and $1,202,000
16.7the second year are from the mining
16.8administration account in the natural
16.9resources fund to cover the costs associated
16.10with issuing mining permits.
16.11$612,000 each year is from the dedicated
16.12receipts account in the natural resources fund
16.13to cover the costs associated with issuing
16.14licenses for land and water crossings and
16.16$351,000 the first year and $351,000 the
16.17second year are for iron ore cooperative
16.18research. Of this amount, $200,000 each year
16.19is from the minerals management account
16.20in the natural resources fund. $175,500 the
16.21first year and $175,500 the second year are
16.22available only as matched by $1 of nonstate
16.23money for each $1 of state money. The
16.24match may be cash or in-kind.
16.25$86,000 the first year and $86,000 the
16.26second year are for minerals cooperative
16.27environmental research, of which $43,000
16.28the first year and $43,000 the second year are
16.29available only as matched by $1 of nonstate
16.30money for each $1 of state money. The
16.31match may be cash or in-kind.
16.32$2,696,000 the first year and $2,696,000
16.33the second year are from the minerals
17.1management account in the natural resources
17.2fund for use as provided in Minnesota
17.3Statutes, section 93.2236, paragraph (c),
17.4for mineral resource management, projects
17.5to enhance future mineral income, and
17.6projects to promote new mineral resource
17.8$200,000 the first year and $200,000 the
17.9second year are from the state forest suspense
17.10account in the permanent school fund to
17.11accelerate land exchanges, land sales, and
17.12commercial leasing of school trust lands and
17.13to identify, evaluate, and lease construction
17.14aggregate located on school trust lands. This
17.15appropriation is to be used for securing
17.16maximum long-term economic return
17.17from the school trust lands consistent with
17.18fiduciary responsibilities and sound natural
17.19resources conservation and management
|Appropriations by Fund
|Game and Fish
|Subd. 3.Water Resources Management
17.25By January 15, 2010, the commissioner
17.26shall submit a report evaluating and
17.27recommending options to provide for the
17.28long-term protection of the state's surface
17.29water and groundwater resources and
17.30the funding of programs to provide this
17.32$275,000 the first year and $275,000 the
17.33second year are for grants for up to 50
17.34percent of the cost of implementation of
18.1the Red River mediation agreement. The
18.2commissioner shall submit a report to the
18.3chairs of the legislative committees having
18.4primary jurisdiction over environment and
18.5natural resources policy and finance on the
18.6accomplishments achieved with the grants
18.7by January 15, 2012.
18.8$60,000 the first year and $60,000 the
18.9second year are for a grant to the Mississippi
18.10Headwaters Board for up to 50 percent of
18.11the cost of implementing the comprehensive
18.12plan for the upper Mississippi within areas
18.13under the board's jurisdiction.
18.14$5,000 the first year and $5,000 the second
18.15year are for payment to the Leech Lake Band
18.16of Chippewa Indians to implement the band's
18.17portion of the comprehensive plan for the
18.19$125,000 the first year and $125,000 the
18.20second year are for the construction of ring
18.21dikes under Minnesota Statutes, section
18.22103F.161. The ring dikes may be publicly
18.23or privately owned. If the appropriation in
18.24either year is insufficient, the appropriation
18.25in the other year is available for it.
18.26By October 1, 2009, the commissioner shall
18.27develop a plan for the development of an
18.28adequate groundwater level monitoring
18.29network of wells in the 11-county
18.30metropolitan area. The commissioner,
18.31working with the Metropolitan Council,
18.32the Department of Homeland Security, and
18.33the commissioner of the Pollution Control
18.34Agency, shall design the network so that
18.35the wells can be used to identify threats to
19.1groundwater quality and institute practices to
19.2protect the groundwater from degradation.
19.3The network must be sufficient to ensure
19.4that water use in the metropolitan area
19.5does not harm ecosystems, degrade water
19.6quality, or compromise the ability of future
19.7generations to meet their own needs. The
19.8plan should include recommendations on
19.9the necessary payment rates for users of the
19.10system expressed in cents per gallon for well
19.11drilling, operation, and maintenance.
|Appropriations by Fund
|Subd. 4.Forest Management
19.17$2,000,000 each year is to maintain forest
19.18management operations. This is a onetime
19.20$1,200,000 the first year and $950,000
19.21the second year are from the heritage
19.22enhancement account in the game and fish
19.23fund to maintain and expand the ecological
19.24classification system program on state forest
19.25lands and prevent the introduction and spread
19.26of invasive species on state lands. This is a
19.28$7,217,000 the first year and $7,217,000
19.29the second year are for prevention,
19.30presuppression, and suppression costs of
19.31emergency firefighting and other costs
19.32incurred under Minnesota Statutes, section
19.3388.12. If the appropriation for either
20.1year is insufficient to cover all costs of
20.2presuppression and suppression, the amount
20.3necessary to pay for these costs during the
20.4biennium is appropriated from the general
20.6By January 15 of each year, the commissioner
20.7of natural resources shall submit a report to
20.8the chairs and ranking minority members
20.9of the house and senate committees
20.10and divisions having jurisdiction over
20.11environment and natural resources finance,
20.12identifying all firefighting costs incurred
20.13and reimbursements received in the prior
20.14fiscal year. These appropriations may
20.15not be transferred. Any reimbursement
20.16of firefighting expenditures made to the
20.17commissioner from any source other than
20.18federal mobilizations shall be deposited into
20.19the general fund.
20.20$12,193,000 the first year and $11,093,000
20.21the second year are from the forest
20.22management investment account in the
20.23natural resources fund for only the purposes
20.24specified in Minnesota Statutes, section
20.2589.039, subdivision 2.
20.26$780,000 the first year and $780,000 the
20.27second year are for the Forest Resources
20.28Council for implementation of the
20.29Sustainable Forest Resources Act.
|Appropriations by Fund
|Game and Fish
|Subd. 5.Parks and Trails Management
21.3$1,175,000 the first year and $1,175,000 the
21.4second year are from the water recreation
21.5account in the natural resources fund for
21.6enhancing public water access facilities.
21.7Of this amount, $100,000 is a onetime
21.8appropriation to provide downloadable
21.9GPS coordinates and river gauge data
21.10interpretation. The base appropriation is
21.12The appropriation in Laws 2003, chapter
21.13128, article 1, section 5, subdivision 6, from
21.14the water recreation account in the natural
21.15resources fund for a cooperative project with
21.16the United States Army Corps of Engineers
21.17to develop the Mississippi Whitewater Park
21.18is available until June 30, 2011. The project
21.19must be designed to prevent the spread of
21.20aquatic invasive species.
21.21$4,371,000 the first year and $4,371,000 the
21.22second year are from the natural resources
21.23fund for state park and recreation area
21.24operations. Of this amount, $375,000 each
21.25year is for coordinated activities with Explore
21.26Minnesota Tourism. This appropriation is
21.27from the revenue deposited in the natural
21.28resources fund under Minnesota Statutes,
21.29section 297A.94, paragraph (e), clause (2).
21.30$8,424,000 the first year and $8,424,000
21.31the second year are from the snowmobile
21.32trails and enforcement account in the
21.33natural resources fund for the snowmobile
21.34grants-in-aid program. This additional
22.1money may be used for new grant-in-aid
22.2trails. Any unencumbered balance does not
22.3cancel at the end of the first year and is
22.4available for the second year.
22.5$400,000 the first year and $400,000 the
22.6second year are from the snowmobile trails
22.7and enforcement account in the natural
22.8resources fund for operation and maintenance
22.9of state trails and increased oversight and
22.10training for the grant-in-aid program. This is
22.11a onetime appropriation.
22.12$1,360,000 the first year and $1,360,000
22.13the second year are from the natural
22.14resources fund for the off-highway vehicle
22.15grants-in-aid program. Of this amount,
22.16$1,110,000 each year is from the all-terrain
22.17vehicle account; $150,000 each year is from
22.18the off-highway motorcycle account; and
22.19$100,000 each year is from the off-road
22.20vehicle account. Any unencumbered balance
22.21does not cancel at the end of the first year
22.22and is available for the second year.
22.23$760,000 the first year and $760,000 the
22.24second year are from the natural resources
22.25fund for state trail operations. This
22.26appropriation is from the revenue deposited
22.27in the natural resources fund under Minnesota
22.28Statutes, section 297A.94, paragraph (e),
|Appropriations by Fund
|Game and Fish
|Subd. 6.Fish and Wildlife Management
23.3$100,000 the first year and $100,000 the
23.4second year are from the nongame wildlife
23.5account in the natural resources fund for gray
23.7$120,000 the first year and $120,000 the
23.8second year from the game and fish fund are
23.9for gray wolf management.
23.10$285,000 the first year and $285,000 the
23.11second year are from the walleye stamp
23.12account in the game and fish fund for the
23.13purposes specified under Minnesota Statutes,
23.14section 97A.075, subdivision 6. Of this
23.15amount, $25,000 must be spent in the first
23.16year to provide signage to each independent
23.17licensed dealer for display and promotion of
23.18the walleye stamp.
23.19$600,000 the first year and $600,000 the
23.20second year are to accelerate wildlife health
23.21programs. This is a onetime appropriation.
23.22$1,860,000 the first year and $1,860,000 the
23.23second year are from the wildlife acquisition
23.24surcharge account for only the purposes
23.25specified in Minnesota Statutes, section
23.2697A.071, subdivision 2a. This appropriation
23.27is available until spent.
23.28$8,167,000 the first year and $8,167,000
23.29the second year are from the heritage
23.30enhancement account in the game and
23.31fish fund only for activities specified in
23.32Minnesota Statutes, section 297A.94,
23.33paragraph (e), clause (1). Of this amount, at
24.1least 20 percent must be used to purchase
24.2or restore land, of which over half must
24.3be used for restoration. Notwithstanding
24.4Minnesota Statutes, section 297A.94, five
24.5percent of this appropriation may be used for
24.6expanding hunter and angler recruitment and
24.7retention. This appropriation may be used to
24.8leverage other funds and to provide fish and
24.9wildlife technical assistance for shallow lake
24.10management and restoration and stream and
24.11lake shoreland and habitat improvement and
24.12maintenance on private lands.
24.13Notwithstanding Minnesota Statutes, section
24.1484.943, $13,000 the first year and $13,000
24.15the second year from the critical habitat
24.16private sector matching account may be used
24.17to publicize the critical habitat license plate
24.19$830,000 the first year and $830,000 the
24.20second year are from the trout and salmon
24.21management account for only the purposes
24.22specified in Minnesota Statutes, section
24.2397A.075, subdivision 3.
24.24$1,553,000 the first year and $1,553,000 the
24.25second year are from the deer management
24.26account for only the purposes specified
24.27in Minnesota Statutes, section
24.28subdivision 1, paragraph (b).
24.29$890,000 the first year and $890,000 the
24.30second year are from the deer and bear
24.31management account for only the purposes
24.32specified in Minnesota Statutes, section
24.3397A.075, subdivision 1, paragraph (c).
24.34$700,000 the first year and $700,000 the
24.35second year are from the waterfowl habitat
25.1improvement account for only the purposes
25.2specified in Minnesota Statutes, section
25.397A.075, subdivision 2.
25.4$925,000 the first year and $925,000 the
25.5second year are from the pheasant habitat
25.6improvement account for only the purposes
25.7specified in Minnesota Statutes, section
25.897A.075, subdivision 4.
25.9$192,000 the first year and $192,000 the
25.10second year are from the wild turkey
25.11management account for only the purposes
25.12specified in Minnesota Statutes, section
25.1397A.075, subdivision 5. Of this amount,
25.14$8,000 the first year and $8,000 the second
25.15year are transferred from the game and fish
25.16fund to the wild turkey management account.
25.17$535,000 the first year and $535,000 the
25.18second year are for preserving, restoring, and
25.19enhancing grassland/wetland complexes on
25.20public or private lands.
25.21Notwithstanding Minnesota Statutes, section
25.2216A.28, the appropriations encumbered
25.23under contract on or before June 30, 2011, for
25.24aquatic restoration grants and wildlife habitat
25.25grants are available until June 30, 2012.
|Appropriations by Fund
|Game and Fish
|Subd. 7.Ecological Services
25.31$1,223,000 the first year and $1,223,000 the
25.32second year are from the nongame wildlife
25.33management account in the natural resources
26.1fund for the purpose of nongame wildlife
26.2management. Notwithstanding Minnesota
290.431, $100,000 the first
26.4year and $100,000 the second year may
26.5be used for nongame wildlife information,
26.6education, and promotion.
26.7$1,636,000 the first year and $1,636,000
26.8the second year are from the heritage
26.9enhancement account in the game and
26.10fish fund for only the purposes specified
26.11in Minnesota Statutes, section 297A.94,
26.12paragraph (e), clause (1).
26.13$2,142,000 the first year and $2,142,000 the
26.14second year are from the invasive species
26.15account, and $2,090,000 the first year
26.16and $2,090,000 the second year are from
26.17the general fund for management, public
26.18awareness, assessment and monitoring
26.19research, law enforcement, and water access
26.20inspection to prevent the spread of invasive
26.21species; management of invasive plants in
26.22public waters; and management of terrestrial
26.23invasive species on state-administered lands.
26.24Funds from this appropriation may not be
26.25used to purchase or use pesticides suspected
26.26by current science of being endocrine
26.28The commissioner shall report on the
26.29projected outcomes and goals for protecting
26.30species in all ecological provinces and the
26.31quantity and quality of groundwater and
26.32surface water of the state, including but not
26.33limited to, protecting rare and endangered
26.34species, native prairies, and wetlands, from
26.35merging ecological services and waters
27.1duties to the senate and house natural
27.2resources policy and finance committees and
27.3divisions. The commissioner shall not merge
27.4ecological services and waters duties prior to
27.5presenting the report to the committees and
27.6divisions. Any merger must include a variant
27.7of the word "ecology" in the title of the new
|Appropriations by Fund
|Game and Fish
27.15$1,082,000 the first year and $1,082,000 the
27.16second year are from the water recreation
27.17account in the natural resources fund for
27.18grants to counties for boat and water safety.
27.19$315,000 the first year and $315,000 the
27.20second year are from the snowmobile
27.21trails and enforcement account in the
27.22natural resources fund for grants to local
27.23law enforcement agencies for snowmobile
27.25$1,164,000 the first year and $1,164,000
27.26the second year are from the heritage
27.27enhancement account in the game and
27.28fish fund for only the purposes specified
27.29in Minnesota Statutes, section
27.30paragraph (e), clause (1).
27.31$510,000 the first year and $510,000
27.32the second year are from the natural
27.33resources fund for grants to county law
28.1enforcement agencies for off-highway
28.2vehicle enforcement and public education
28.3activities based on off-highway vehicle use
28.4in the county. Of this amount, $498,000 each
28.5year is from the all-terrain vehicle account;
28.6$11,000 each year is from the off-highway
28.7motorcycle account; and $1,000 each year
28.8is from the off-road vehicle account. The
28.9county enforcement agencies may use
28.10money received under this appropriation
28.11to make grants to other local enforcement
28.12agencies within the county that have a high
28.13concentration of off-highway vehicle use. Of
28.14this appropriation, $25,000 each year is for
28.15administration of these grants.
28.16$250,000 the first year and $250,000 the
28.17second year are from the all-terrain vehicle
28.18account for grants to qualifying organizations
28.19to assist in safety and environmental
28.20education and monitoring trails on public
28.21lands under Minnesota Statutes, section
28.2284.9011. Grants issued under this paragraph:
28.23(1) must be issued through a formal
28.24agreement with the organization; and (2)
28.25must not be used as a substitute for traditional
28.26spending by the organization. By December
28.2715 each year, an organization receiving a
28.28grant under this paragraph shall report to the
28.29commissioner with details on expenditures
28.30and outcomes from the grant. By January
28.3115, 2011, the commissioner shall report
28.32on the expenditures and outcomes of the
28.33grants to the chairs and ranking minority
28.34members of the natural resources policy
28.35and finance committees and divisions. Of
29.1this appropriation, $25,000 each year is for
29.2administration of these grants.
29.3The commissioner must publicize
29.4opportunities for conservation officer
29.5employment and recruit, when possible,
29.6conservation officer candidates from the
29.7biological sciences departments at colleges
|Appropriations by Fund
|Game and Fish
|Subd. 9.Operations Support
29.14The commissioner may redirect the general
29.15fund reduction of $800,000 in fiscal year
29.162010 and $800,000 in fiscal year 2011, to
29.17other subdivisions of this section. No grants
29.18may be reduced. The commissioner shall
29.19report by October 1, 2011, to the chairs of
29.20the legislative committees having primary
29.21jurisdiction over environment and natural
29.22resources policy and finance regarding any
29.23redirection and what department outcomes
29.24were affected by the redirection.
29.25$320,000 the first year and $320,000 the
29.26second year are from the natural resources
29.27fund for grants to be divided equally between
29.28the city of St. Paul for the Como Zoo
29.29and Conservatory and the city of Duluth
29.30for the Duluth Zoo. This appropriation
29.31is from the revenue deposited to the fund
29.32under Minnesota Statutes, section 297A.94,
29.33paragraph (e), clause (5).
|Appropriations by Fund
|Game and Fish
30.3$3,900,000 the first year and $3,900,000 the
30.4second year are for natural resources block
30.5grants to local governments. The board may
30.6reduce the amount of the natural resources
30.7block grant to a county by an amount equal to
30.8any reduction in the county's general services
30.9allocation to a soil and water conservation
30.10district from the county's previous year
30.11allocation when the board determines that
30.12the reduction was disproportionate. Grants
30.13must be matched with a combination of local
30.14cash or in-kind contributions. The base
30.15grant portion related to water planning must
30.16be matched by an amount as specified by
30.17Minnesota Statutes, section 103B.3369.
30.18$3,500,000 the first year and $3,500,000
30.19the second year are for grants requested
30.20by soil and water conservation districts for
30.21general purposes, nonpoint engineering,
30.22and implementation of the reinvest in
30.23Minnesota conservation reserve program.
30.24Upon approval of the board, expenditures
30.25may be made from these appropriations for
30.26supplies and services benefiting soil and
30.27water conservation districts. Any district
30.28requesting a grant under this paragraph shall
30.29maintain a Web page that publishes, at a
30.30minimum, its annual plan, annual report,
30.31annual audit, annual budget, including
30.32membership dues, and meeting notices and
31.1$500,000 the first year and $500,000 the
31.2second year are for feedlot water quality
31.3grants for feedlots under 300 animal units
31.4where there are impaired waters.
31.5$2,000,000 the first year and $2,000,000
31.6the second year are for grants to soil and
31.7water conservation districts for cost-sharing
31.8contracts for erosion control, water quality
31.9management, of which at least $900,000
31.10each year is for establishing and maintaining
31.11riparian vegetation buffers of restored native
31.12prairie and restored prairie.
31.13$100,000 the first year and $100,000
31.14the second year are available for county
31.15cooperative weed management programs and
31.16to restore native plants in selected invasive
31.17species management sites by providing local
31.18native seeds and plants to landowners for
31.20Notwithstanding Minnesota Statutes, section
31.21103C.501, the board may shift cost-share
31.22funds in this section and may adjust the
31.23technical and administrative assistance
31.24portion of the grant funds to leverage
31.25federal or other nonstate funds or to address
31.26high-priority needs identified in local water
31.28$500,000 the first year and $500,000 the
31.29second year are for implementation and
31.30enforcement of the Wetland Conservation
31.31Act. The board must make available
31.32information about final enforcement actions
31.33on the board's Web site.
31.34$60,000 each year is for staff to monitor and
31.35enforce wetland replacement, wetland bank
32.1sites, and the Wetland Conservation Act. The
32.2board must include in its biennial report to
32.3the legislature information on all state and
32.4local units of government, including special
32.5purpose districts and impacts on wetlands
32.6in the state. This information must be made
32.7available on the board's Web site.
32.8$100,000 each year is for transfer to the
32.9commissioner of natural resources for
32.10enforcement of wetland violations.
32.11$100,000 each year is to make grants to local
32.12units of government within the 11-county
32.13metropolitan area to improve response to
32.14major wetland violations.
32.15$100,000 each year is for cost-share grants
32.16to local governments for public drainage
32.18$212,000 each year is to provide assistance
32.19to local drainage management officials and
32.20for the costs of the Drainage Work Group.
32.21$90,000 the first year and $90,000 the second
32.22year are for a grant to the Red River Basin
32.23Commission for water quality and floodplain
32.24management, including administration of
32.25programs. The commission shall submit
32.26a report to the chairs of the legislative
32.27committees having primary jurisdiction
32.28over environment and natural resources
32.29policy and finance on the accomplishments
32.30achieved with this appropriation by January
32.3115, 2012. If the appropriation in either year
32.32is insufficient, the appropriation in the other
32.33year is available for it.
33.1$90,000 each year is to the Minnesota River
33.2Basin Joint Powers Board, also known as
33.3the Minnesota River Board, for operating
33.4expenses to measure and report the results of
33.5projects in the 12 major watersheds within
33.6the Minnesota River basin.
33.7$130,000 each year is for grants to Area
33.8II, Minnesota River Basin Projects,
33.9for floodplain management, including
33.10administration of programs.
33.11Notwithstanding Minnesota Statutes, section
33.12103C.501, a balance in the board's cost-share
33.13program is available for $150,000 each year
33.14for evaluating and reporting on performance,
33.15financial, and activity information of local
33.16water management entities as provided for in
33.17Minnesota Statutes, section 103B.102.
33.18The appropriations for grants in this
33.19section are available until expended. If an
33.20appropriation for grants in either year is
33.21insufficient, the appropriation in the other
33.22year is available for it.
33.23To the extent possible, any person conducting
33.24a restoration with money appropriated in
33.25this section must plant vegetation or sow
33.26seed only of ecotypes native to Minnesota,
33.27and preferably of the local ecotype, using a
33.28high diversity of species originating from as
33.29close to the restoration site as possible, and
33.30protect existing native prairies from genetic
33.32A recipient of a grant funded by an
33.33appropriation under this section shall display
33.34on its Web site detailed information on
33.35the expenditure of the grant funds, and
34.1measurable outcomes as a result of the
34.2expenditure of funds, and submit this
34.3information to the board by June 30 each
34.4year. A recipient without an active Web site
34.5shall report to the board by June 30 each year
34.6detailed information on the expenditure of
34.7the grant funds, and measurable outcomes
34.8as a result of the expenditure of funds. The
34.9board shall display the information received
34.10by recipients under this paragraph on the
34.11board's Web site.
34.12The board shall require the chief financial
34.13officer or other financial staff to display the
34.14board's budget on the board's Web site in a
34.15manner that will allow citizens to understand
34.16more easily the value they are getting for
|Sec. 5. BOARD OF WATER AND SOIL
|Sec. 6. METROPOLITAN COUNCIL
34.23$3,810,000 the first year and $3,810,000
34.24the second year are for metropolitan area
34.25regional parks operation and maintenance
34.26according to Minnesota Statutes, section
34.28$5,070,000 the first year and $5,070,000 the
34.29second year are from the natural resources
34.30fund for metropolitan area regional parks
34.31and trails maintenance and operations. This
34.32appropriation is from the revenue deposited
34.33in the natural resources fund under Minnesota
35.1Statutes, section 297A.94, paragraph (e),
|Appropriations by Fund
|Sec. 7. MINNESOTA CONSERVATION
35.9The Minnesota Conservation Corps may
35.10receive money appropriated from the
35.11natural resources fund under this section
35.12only as provided in an agreement with the
35.13commissioner of natural resources.
|Appropriations by Fund
|Sec. 8. ZOOLOGICAL BOARD
35.19$160,000 the first year and $160,000 the
35.20second year are from the natural resources
35.21fund from the revenue deposited under
35.22Minnesota Statutes, section 297A.94,
35.23paragraph (e), clause (5).
|Appropriations by Fund
|Sec. 9. SCIENCE MUSEUM OF
Sec. 10. Minnesota Statutes 2008, section 84.0835, subdivision 3, is amended to read:
Subd. 3. Citation authority.
Employees designated by the commissioner under
subdivision 1 may issue citations, as specifically authorized under this subdivision, for
85.052, subdivision 3
(payment of camping fees in state parks),
36.285.45, subdivision 1
(cross-country ski pass),
(horse trail pass), and 84.9275
36.3(nonresident all-terrain vehicle state trail pass)
(2) rules relating to hours and days of operation, restricted areas, noise, fireworks,
environmental protection, fires and refuse, pets, picnicking, camping and dispersed
camping, nonmotorized uses, construction of unauthorized permanent trails, mooring of
boats, fish cleaning, swimming, storage and abandonment of personal property, structures
and stands, animal trespass, state park individual and group motor vehicle permits,
licensed motor vehicles, designated roads, and snowmobile operation off trails;
(3) rules relating to off-highway vehicle registration, display of registration numbers,
required equipment, operation restrictions, off-trail use for hunting and trapping, and
operation in lakes, rivers, and streams;
(4) rules relating to off-highway vehicle and snowmobile operation causing damage
or in closed areas within the Richard J. Dorer Memorial Hardwood State Forest;
(5) rules relating to parking, snow removal, and damage on state forest roads; and
(6) rules relating to controlled hunting zones on major wildlife management units.
36.17EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 11. [84.0854] GIFT CARD AND CERTIFICATE SALES; RECEIPTS;
36.20 Subdivision 1. Sales authorized; gift cards and certificates. The commissioner
36.21may sell gift cards and certificates that can be used to purchase licenses, permits, products,
36.22or services sold by the commissioner. Gift cards and certificates are valid until they
36.23are redeemed. The commissioner may advertise the availability of this program and
36.24items offered for sale under this section. The commissioner may make the purchase and
36.25redemption of gift cards available electronically.
36.26 Subd. 2. Receipts; disposition. Proceeds of gift card and certificate sales shall be
36.27deposited in an account in the special revenue fund. When gift cards or certificates are
36.28redeemed, funds shall be transferred to the appropriate account or fund based on the
36.29license, permit, product, or service purchased. Money in the gift card and certificate
36.30account shall accrue interest, which shall be credited to the account. Interest on funds in
36.31the account is appropriated to the commissioner to help cover the cost of administering
36.32the gift card and certificate program. Money from gift cards and certificates sold but
36.33unredeemed after three years shall be transferred to the various accounts and funds
36.34receiving revenue from purchases of licenses, permits, products, or services purchased
36.35with gift card or certificate redemptions in the last two fiscal years. Unredeemed funds
37.1shall be distributed based on the dollar value of cards redeemed for the various licenses,
37.2permits, products, or services on a pro rata basis.
37.3 Subd. 3. Exemption from rulemaking. This section is not subject to the
37.4rulemaking provisions of chapter 14 and section 14.386 does not apply.
Sec. 12. Minnesota Statutes 2008, section 84.415, subdivision 5, is amended to read:
Fee Fees; disposition. (a)
In the event the construction of
causes damage to timber or other property of the state on or along the same, the license
or permit shall also provide for payment to the commissioner of finance of the amount
thereof of the damages
determined by the commissioner.
37.10(b) The application fee specified in Minnesota Rules is credited to the general fund.
All money received under such licenses or permits (c) The utility crossing fees
37.12specified in Minnesota Rules
shall be credited to the fund to which other income or
proceeds of sale from
land would be credited
, if provision therefor be made as
by law, otherwise to the general fund.
37.15(d) Money received from licenses and permits issued under this section for use of
37.16the beds of navigable waters shall be credited to the permanent school fund.
37.17(e) Money received under subdivision 6 must be credited to the land management
37.18account in the natural resources fund and is appropriated to the commissioner of natural
37.19resources to cover the costs incurred for issuing and monitoring utility licenses.
Sec. 13. Minnesota Statutes 2008, section 84.415, is amended by adding a subdivision
37.22 Subd. 6. Supplemental application fee and monitoring fee. (a) In addition to the
37.23application fee and utility crossing fees specified in Minnesota Rules, the commissioner of
37.24natural resources shall assess the applicant for a utility license the following fees:
37.25(1) a supplemental application fee of $1,500 for a public water crossing license and
37.26a supplemental application fee of $4,500 for a public lands crossing license, to cover
37.27reasonable costs for reviewing the application and preparing the license; and
37.28(2) a monitoring fee to cover the projected reasonable costs for monitoring the
37.29construction of the utility line and preparing special terms and conditions of the license
37.30to ensure proper construction. The commissioner must give the applicant an estimate of
37.31the monitoring fee before the applicant submits the fee.
37.32(b) The applicant shall pay fees under this subdivision to the commissioner of
37.33natural resources. The commissioner shall not issue the license until the applicant has
37.34paid all fees in full.
38.1(c) Upon completion of construction of the improvement for which the license
38.2or permit was issued, the commissioner shall refund the unobligated balance from the
38.3monitoring fee revenue. The commissioner shall not return the application fees, even
38.4if the application is withdrawn or denied.
Sec. 14. Minnesota Statutes 2008, section 84.63, is amended to read:
38.684.63 CONVEYANCE OF INTERESTS IN LANDS TO STATE AND
Notwithstanding any existing law to the contrary, the commissioner of natural
resources is hereby authorized on behalf of the state to convey to the United States
or to the state of Minnesota or any of its subdivisions, upon state-owned lands under
the administration of the commissioner of natural resources, permanent or temporary
easements for specified periods or otherwise for trails, highways, roads including
limitation of right of access from the lands to adjacent highways and roads, flowage for
development of fish and game resources, stream protection, flood control, and necessary
appurtenances thereto, such conveyances to be made upon such terms and conditions
including provision for reversion in the event of non-user as the commissioner of natural
resources may determine.
38.18(b) In addition to the fee for the market value of the easement, the commissioner of
38.19natural resources shall assess the applicant the following fees:
38.20(1) an application fee of $2,000 to cover reasonable costs for reviewing the
38.21application and preparing the easement; and
38.22(2) a monitoring fee to cover the projected reasonable costs for monitoring the
38.23construction of the improvement for which the easement was conveyed and preparing
38.24special terms and conditions for the easement. The commissioner must give the applicant
38.25an estimate of the monitoring fee before the applicant submits the fee.
38.26(c) The applicant shall pay these fees to the commissioner of natural resources.
38.27The commissioner shall not issue the easement until the applicant has paid in full the
38.28application fee, the monitoring fee, and the market value payment for the easement.
38.29(d) Upon completion of construction of the improvement for which the easement
38.30was conveyed, the commissioner shall refund the unobligated balance from the monitoring
38.31fee revenue. The commissioner shall not return the application fee, even if the application
38.32is withdrawn or denied.
38.33(e) Money received under paragraph (b) must be deposited in the land management
38.34account in the natural resources fund and is appropriated to the commissioner of natural
38.35resources to cover the reasonable costs incurred for issuing and monitoring easements.
Sec. 15. Minnesota Statutes 2008, section 84.631, is amended to read:
39.284.631 ROAD EASEMENTS ACROSS STATE LANDS.
(a) Except as provided in section
85.015, subdivision 1b
, the commissioner, on
behalf of the state, may convey a road easement across state land under the commissioner's
jurisdiction other than school trust land, to a private person requesting an easement for
access to property owned by the person only if the following requirements are met: (1)
there are no reasonable alternatives to obtain access to the property; and (2) the exercise
of the easement will not cause significant adverse environmental or natural resource
(b) The commissioner shall:
(1) require the applicant to pay the market value of the easement;
(2) provide that the easement reverts to the state in the event of nonuse; and
(3) impose other terms and conditions of use as necessary and appropriate under
(c) An applicant shall submit
a an application
$2,000 with each
application for a road easement across state land.
The commissioner must give the
39.17 applicant an estimate of the costs of the road easement before the applicant submits the
The application fee is nonrefundable, even if the application is withdrawn or denied.
(d) In addition to the payment for the market value of the easement and the
39.20application fee, the commissioner of natural resources shall assess the applicant a
39.21monitoring fee to cover the projected reasonable costs for monitoring the construction of
39.22the road and preparing special terms and conditions for the easement. The commissioner
39.23must give the applicant an estimate of the monitoring fee before the applicant submits
39.24the fee. The applicant shall pay the application and monitoring fees to the commissioner
39.25of natural resources. The commissioner shall not issue the easement until the applicant
39.26has paid in full the application fee, the monitoring fee, and the market value payment for
39.28(e) Upon completion of construction of the road, the commissioner shall refund the
39.29unobligated balance from the monitoring fee revenue.
Fees collected under
(c) and (d)
the land management account in the natural resources fund and are appropriated
39.32to the commissioner of natural resources to cover the reasonable costs incurred under
Sec. 16. Minnesota Statutes 2008, section 84.632, is amended to read:
39.3584.632 CONVEYANCE OF UNNEEDED STATE EASEMENTS.
(a) Notwithstanding section
, the commissioner of natural resources may,
in the name of the state, release all or part of an easement acquired by the state upon
application of a landowner whose property is burdened with the easement if the easement
is not needed for state purposes.
(b) All or part of an easement may be released by payment of
consideration of not
40.6 less than $500, to be determined by the commissioner the market value of the easement
The release must be in a form approved by the attorney general.
(c) Money received
for release of the easement under paragraph (b)
must be credited
to the account from which money was expended for purchase of the easement. If there is
no specific account, the money must be credited to the land acquisition account established
40.12(d) In addition to payment under paragraph (b), the commissioner of natural
40.13resources shall assess a landowner who applies for a release under this section an
40.14application fee of $2,000 for reviewing the application and preparing the release of
40.15easement. The applicant shall pay the application fee to the commissioner of natural
40.16resources. The commissioner shall not issue the release of easement until the applicant
40.17has paid the application fee in full. The commissioner shall not return the application fee,
40.18even if the application is withdrawn or denied.
40.19(e) Money received under paragraph (d) must be credited to the land management
40.20account in the natural resources fund and is appropriated to the commissioner of natural
40.21resources to cover the reasonable costs incurred under this section.
Sec. 17. Minnesota Statutes 2008, section 84.922, subdivision 1a, is amended to read:
Subd. 1a. Exemptions.
All-terrain vehicles exempt from registration are:
(1) vehicles owned and used by the United States, the state, another state, or a
(2) vehicles registered in another state or country that have not been in this state for
more than 30 consecutive days;
40.28(3) vehicles that:
40.29(i) are owned by a resident of another state or country that does not require
40.30registration of all-terrain vehicles;
40.31(ii) have not been in this state for more than 30 consecutive days; and
40.32(iii) are operated on state and grant-in-aid trails by a nonresident possessing a
40.33nonresident all-terrain vehicle state trail pass;
vehicles used exclusively in organized track racing events; and
vehicles that are 25 years old or older and were originally produced as a
separate identifiable make by a manufacturer.
41.3EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 18. [84.9275] NONRESIDENT ALL-TERRAIN VEHICLE STATE TRAIL
41.6 Subdivision 1. Pass required; fee. (a) A nonresident may not operate an all-terrain
41.7vehicle on a state or grant-in-aid all-terrain vehicle trail unless the operator carries a valid
41.8nonresident all-terrain vehicle state trail pass in immediate possession. The pass must
41.9be available for inspection by a peace officer, a conservation officer, or an employee
41.10designated under section 84.0835.
41.11(b) The commissioner of natural resources shall issue a pass upon application and
41.12payment of a $20 fee. The pass is valid from January 1 through December 31. Fees
41.13collected under this section, except for the issuing fee for licensing agents, shall be
41.14deposited in the state treasury and credited to the all-terrain vehicle account in the natural
41.15resources fund and, except for the electronic licensing system commission established by
41.16the commissioner under section
84.027, subdivision 15, must be used for grants-in-aid to
41.17counties and municipalities for all-terrain vehicle organizations to construct and maintain
41.18all-terrain vehicle trails and use areas.
41.19 (c) A nonresident all-terrain vehicle state trail pass is not required for:
41.20 (1) an all-terrain vehicle that is owned and used by the United States, another state,
41.21or a political subdivision thereof that is exempt from registration under section 84.922,
41.22subdivision 1a; or
41.23 (2) a person operating an all-terrain vehicle only on the portion of a trail that is
41.24owned by the person or the person's spouse, child, or parent.
41.25 Subd. 2. License agents. The commissioner may appoint agents to issue and sell
41.26nonresident all-terrain vehicle state trail passes. The commissioner may revoke the
41.27appointment of an agent at any time. The commissioner may adopt additional rules as
41.28provided in section
97A.485, subdivision 11. An agent shall observe all rules adopted
41.29by the commissioner for accounting and handling of passes pursuant to section
. An agent shall promptly deposit and remit all money received from the
41.31sale of the passes, exclusive of the issuing fee, to the commissioner.
41.32 Subd. 3. Issuance of passes. The commissioner and agents shall issue and sell
41.33nonresident all-terrain vehicle state trail passes. The commissioner shall also make the
42.1passes available through the electronic licensing system established under section 84.027,
42.3 Subd. 4. Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass
42.4shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for
42.5passes issued by the commissioner shall be deposited in the all-terrain vehicle account in
42.6the natural resources fund and retained for the operation of the electronic licensing system.
42.7 Subd. 5. Duplicate passes. The commissioner and agents shall issue a duplicate
42.8pass to persons whose pass is lost or destroyed using the process established under section
42.997A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident
42.10all-terrain vehicle state trail pass is $2, with an issuing fee of 50 cents.
42.11EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 19. Minnesota Statutes 2008, section 84D.15, subdivision 2, is amended to read:
Subd. 2. Receipts.
Money received from surcharges on watercraft licenses under
86B.415, subdivision 7
, and civil penalties under section
shall be deposited
in the invasive species account. Each year, the commissioner of finance shall transfer from
the game and fish fund to the invasive species account, the annual surcharge collected on
nonresident fishing licenses under section
97A.475, subdivision 7
, paragraph (b). In fiscal
42.18years 2010 and 2011, the commissioner of finance shall transfer $725,000 from the water
42.19recreation account under section 86B.706 to the invasive species account.
Sec. 20. Minnesota Statutes 2008, section 85.015, subdivision 1b, is amended to read:
Subd. 1b. Easements for ingress and egress. (a)
42.22except as provided in paragraph (b),
when a trail is established under this section, a
private property owner who has a preexisting right of ingress and egress over the trail
right-of-way is granted, without charge, a permanent easement for ingress and egress
purposes only. The easement is limited to the preexisting crossing and reverts to the state
upon abandonment. Nothing in this subdivision is intended to diminish or alter any written
or recorded easement that existed before the state acquired the land for the trail.
42.28(b) The commissioner of natural resources shall assess the applicant an application
42.29fee of $2,000 for reviewing the application and preparing the easement. The applicant
42.30shall pay the application fee to the commissioner of natural resources. The commissioner
42.31shall not issue the easement until the applicant has paid the application fee in full. The
42.32commissioner shall not return the application fee, even if the application is withdrawn
43.1(c) Money received under paragraph (b) must be credited to the land management
43.2account in the natural resources fund and is appropriated to the commissioner of natural
43.3resources to cover the reasonable costs incurred under this section.
Sec. 21. Minnesota Statutes 2008, section 85.053, subdivision 10, is amended to read:
Subd. 10. Free entrance; totally and permanently disabled veterans.
commissioner shall issue an annual park permit for no charge
any veteran with a
total and permanent service-connected disability, as determined by the United States
43.8Department of Veterans Affairs,
who presents each year a copy of their determination
letter to a park attendant or commissioner's designee. For the purposes of this section,
with a total and permanent service-connected disability" means a resident who
43.11 has a total and permanent service-connected disability as adjudicated by the United States
43.12 Veterans Administration or by the retirement board of one of the several branches of the
43.13 armed forces has the meaning given in section 197.447
43.14EFFECTIVE DATE.This section is effective July 1, 2009, for state park permits
43.15issued on or after that date.
Sec. 22. Minnesota Statutes 2008, section 85.46, subdivision 3, is amended to read:
Subd. 3. Issuance.
The commissioner of natural resources and agents shall issue
and sell horse trail passes. The pass shall include the applicant's signature and other
information deemed necessary by the commissioner. To be valid, a daily or annual
must be signed by the person riding, leading, or driving the horse, and a commercial
43.21annual pass must be signed by the owner of the commercial trail riding facility
43.22EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 23. Minnesota Statutes 2008, section 85.46, subdivision 4, is amended to read:
Subd. 4. Pass fees.
(a) The fee for an annual horse trail pass is $20 for an individual
16 years of age and over. The fee shall be collected at the time the pass is purchased.
Annual passes are valid for one year beginning January 1 and ending December 31.
(b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and
over. The fee shall be collected at the time the pass is purchased. The daily pass is valid
only for the date designated on the pass form.
43.30(c) The fee for a commercial annual horse trail pass is $200 and includes issuance
43.31of 15 passes. Additional or individual commercial annual horse trail passes may be
43.32purchased by the commercial trail riding facility owner at a fee of $20 each. Commercial
43.33annual horse trail passes are valid for one year beginning January 1 and ending December
44.131 and may be affixed to the horse tack, saddle, or person. Commercial annual horse trail
44.2passes are not transferable to another commercial trail riding facility. For the purposes of
44.3this section, a "commercial trail riding facility" is an operation where horses are used for
44.4riding instruction or other equestrian activities for hire or use by others.
44.5EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 24. Minnesota Statutes 2008, section 85.46, subdivision 7, is amended to read:
Subd. 7. Duplicate horse trail passes.
The commissioner of natural resources and
agents shall issue a duplicate pass to a person or commercial trail riding facility owner
whose pass is lost or destroyed using the process established under section
subdivision 3, and rules adopted thereunder. The fee for a duplicate horse trail pass is $2,
with an issuing fee of 50 cents.
44.12EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 25. [86A.055] PROHIBITION ON SALES OF OUTDOOR RECREATION
44.14SYSTEM LANDS FOR CERTAIN PURPOSES.
44.15Notwithstanding Laws 2005, chapter 156, article 2, section 45, as amended by Laws
44.162007, chapter 148, article 2, section 73, or other law to the contrary, a state agency shall
44.17not sell land that, on or after the effective date of this section, is classified as a unit of the
44.18outdoor recreation system under section 86A.05, for the purpose of anticipated savings
44.19to the general fund.
44.20EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 26. Minnesota Statutes 2008, section 92.685, is amended to read:
44.2292.685 LAND MANAGEMENT ACCOUNT.
The land management account is created in the natural resources fund. Money
credited to the account is appropriated annually to the commissioner of natural resources
for the Lands and Minerals Division
to administer the utility easement program under
44.26section 84.415, the easement program under section 84.63,
the road easement program
84.631, the easement release program under section 84.632, and the trail
44.28easement program under section 85.015, subdivision 1b
Sec. 27. Minnesota Statutes 2008, section 93.481, subdivision 1, is amended to read:
Subdivision 1. Prohibition against mining without permit; application for
Except as provided in this subdivision, after June 30, 1975, no person shall
engage in or carry out a mining operation for metallic minerals within the state unless the
person has first obtained a permit to mine from the commissioner. Any person engaging
in or carrying out a mining operation as of the effective date of the rules
shall apply for a permit to mine within 180 days after the
effective date of such rules. Any such existing mining operation may continue during the
pendency of the application for the permit to mine. The person applying for a permit shall
apply on forms prescribed by the commissioner and shall submit such information as the
commissioner may require, including but not limited to the following:
a proposed plan for the reclamation or restoration, or both, of any mining
area affected by mining operations to be conducted on and after the date on which permits
are required for mining under this section;
a certificate issued by an insurance company authorized to do business in
the United States that the applicant has a public liability insurance policy in force for
the mining operation for which the permit is sought, or evidence that the applicant has
satisfied other state or federal self-insurance requirements, to provide personal injury
and property damage protection in an amount adequate to compensate any persons who
might be damaged as a result of the mining operation or any reclamation or restoration
operations connected with the mining operation;
45.19(3) an application fee of:
45.20(i) $25,000 for a permit to mine for a taconite mining operation;
45.21(ii) $50,000 for a permit to mine for a nonferrous metallic minerals operation;
45.22(iii) $10,000 for a permit to mine for a scram mining operation; or
45.23(iv) $5,000 for a permit to mine for a peat operation;
a bond which may be required pursuant to section
a copy of the applicant's advertisement of the ownership, location, and
boundaries of the proposed mining area and reclamation or restoration operations, which
advertisement shall be published in a legal newspaper in the locality of the proposed site
at least once a week for four successive weeks before the application is filed, except that if
the application is for a permit to conduct lean ore stockpile removal the advertisement
need be published only once.
Sec. 28. Minnesota Statutes 2008, section 93.481, subdivision 3, is amended to read:
Subd. 3. Term of permit; amendment.
A permit issued by the commissioner
pursuant to this section shall be granted for the term determined necessary by the
commissioner for the completion of the proposed mining operation, including reclamation
or restoration. A permit may be amended upon written application to the commissioner.
46.1A permit amendment application fee must be submitted with the written application. The
46.2permit amendment application fee is ten percent of the amount provided for in subdivision
46.31, clause (3), for an application for the applicable permit to mine.
If the commissioner
determines that the proposed amendment constitutes a substantial change to the permit,
the person applying for the amendment shall publish notice in the same manner as for a
new permit, and a hearing shall be held if written objections are received in the same
manner as for a new permit. An amendment may be granted by the commissioner if the
commissioner determines that lawful requirements have been met.
Sec. 29. Minnesota Statutes 2008, section 93.481, subdivision 5, is amended to read:
Subd. 5. Assignment.
A permit may not be assigned or otherwise transferred
without the written approval of the commissioner. A permit assignment application fee
46.12must be submitted with the written application. The permit assignment application fee
46.13is ten percent of the amount provided for in subdivision 1, clause (3), for an application
46.14for the applicable permit to mine.
Sec. 30. Minnesota Statutes 2008, section 93.481, subdivision 7, is amended to read:
Subd. 7. Mining administration account.
The mining administration account is
established as an account in the natural resources fund.
Ferrous mining administrative
Fees charged to owners, operators, or managers of mines under this section and section
shall be credited to the account and may be appropriated to the commissioner
to cover the costs of providing and monitoring permits to mine
ferrous metals under
46.21 this section
. Earnings accruing from investment of the account remain with the account
46.23EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 31. [93.482] RECLAMATION FEES.
46.25 Subdivision 1. Annual permit to mine fee. (a) The commissioner shall charge
46.26every person holding a permit to mine an annual permit fee. The fee is payable to the
46.27commissioner by June 30 of each year, beginning in 2009.
46.28(b) The annual permit to mine fee for a taconite mining operation is $60,000 if the
46.29operation had production within the calendar year immediately preceding the year in
46.30which payment is due and $30,000 if there was no production within the immediately
46.31preceding calendar year.
46.32(c) The annual permit to mine fee for a nonferrous metallic minerals mining
46.33operation is $75,000 if the operation had production within the calendar year immediately
47.1preceding the year in which payment is due and $37,500 if there was no production within
47.2the immediately preceding calendar year.
47.3(d) The annual permit to mine fee for a scram mining operation is $5,000 if the
47.4operation had production within the calendar year immediately preceding the year in
47.5which payment is due and $2,500 if there was no production within the immediately
47.6preceding calendar year.
47.7(e) The annual permit to mine fee for a peat mining operation is $1,000 if the
47.8operation had production within the calendar year immediately preceding the year in
47.9which payment is due and $500 if there was no production within the immediately
47.10preceding calendar year.
47.11 Subd. 2. Supplemental application fee for taconite and nonferrous metallic
47.12minerals mining operation. (a) In addition to the application fee specified in section
47.1393.481, the commissioner shall assess a person submitting an application for a permit to
47.14mine for a taconite or a nonferrous metallic minerals mining operation the reasonable
47.15costs for reviewing the application and preparing the permit to mine. For nonferrous
47.16metallic minerals mining, the commissioner shall assess reasonable costs for monitoring
47.17construction of the mining facilities.
47.18(b) The commissioner must give the applicant an estimate of the supplemental
47.19application fee under this subdivision. The estimate must include a brief description
47.20of the tasks to be performed and the estimated cost of each task. The application fee
47.21under section 93.481 must be subtracted from the estimate of costs to determine the
47.22supplemental application fee.
47.23(c) The applicant and the commissioner shall enter into a written agreement to cover
47.24the estimated costs to be incurred by the commissioner.
47.25(d) The commissioner shall not issue the permit to mine until the applicant has paid
47.26all fees in full. Upon completion of construction of a nonferrous metallic minerals facility,
47.27the commissioner shall refund the unobligated balance of the monitoring fee revenue.
47.28 Subd. 3. Reclamation fee on taconite iron ore produced. (a) For the purposes
47.29of this subdivision:
47.30(1) "fee owner" means a person having any right, title, or interest in any minerals
47.31or mineral rights in this state from which taconite iron ore is mined. Fee owner does not
47.32include the United States, the state, or the University of Minnesota;
47.33(2) "taconite iron ore" means a ferruginous chert or ferruginous slate in the form of
47.34compact siliceous rock, in which the iron oxide is so finely disseminated that substantially
47.35all of the iron bearing particles of merchantable grade are smaller than 20 mesh; and
47.36(3) "ton" means a gross ton of 2,240 pounds.
48.1(b) A fee owner is subject to a reclamation fee of $.0075 per ton of taconite iron ore
48.2mined from the minerals or mineral rights owned by the fee owner.
48.3(c) The fee owner shall make payment to the commissioner no later than January
48.420 of each calendar year for ore removed during the previous calendar year. The fee
48.5owner is liable for the payment of the reclamation fee. The fee owner may enter into an
48.6agreement with the mining operator to make the payment on their behalf from royalties
48.7due and owing or other financial terms.
48.8EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 32. Minnesota Statutes 2008, section 94.342, subdivision 3, is amended to read:
Subd. 3. Additional restrictions on riparian land. (a)
Land bordering on or
adjacent to any meandered or other public waters and withdrawn from sale by law is
riparian land. Riparian land may not be given in exchange unless:
expressly authorized by the legislature
through the same exchange the state acquires land on the same or other public
waters in the same general vicinity affording at least equal opportunity for access to the
waters and other riparian use by the public;
48.17(3) Class A land is being exchanged for Class A land; or
provided, that any (4) the
with is an agency of
the United States
48.19 agency thereof may be made free from this limitation upon condition that and
land given in exchange bordering on public waters shall be subject to reservations by
the state for public travel along the shores as provided by section
, unless waived
as provided in
this subdivision paragraph (b)
, and that there shall be reserved by the
additional rights of public use upon suitable portions of
state land as
the commissioner of natural resources, with the approval of the Land Exchange Board,
may deem necessary or desirable for camping, hunting, fishing, access to the water, and
other public uses.
In regard to (b) For
Class B or riparian land that is contained within that portion
of the Superior National Forest that is designated as the Boundary Waters Canoe Area
Wilderness, the condition that state land given in exchange bordering on public waters
must be subject to the public travel reservations provided in section
, may be waived
by the Land Exchange Board upon the recommendation of the commissioner of natural
resources and, if the land is Class B land, the additional recommendation of the county
board in which the land is located.
Sec. 33. Minnesota Statutes 2008, section 97A.075, subdivision 1, is amended to read:
Subdivision 1. Deer, bear, and lifetime licenses.
(a) For purposes of this
subdivision, "deer license" means a license issued under section
97A.475, subdivisions 2,
(5), (6), (7), (11), (13), (15), (16), and (17), and 3, clauses (2), (3), (4), (9), (11),
(12), and (13), and licenses issued under section
97B.301, subdivision 4
(b) $2 from each annual deer license and $2 annually from the lifetime fish and
wildlife trust fund, established in section
, for each license issued under section
49.797A.473, subdivision 4
, shall be credited to the deer management account and shall be
used for deer habitat improvement or deer management programs.
(c) $1 from each annual deer license and each bear license and $1 annually from
the lifetime fish and wildlife trust fund, established in section
, for each license
issued under section
97A.473, subdivision 4
, shall be credited to the deer and bear
management account and shall be used for deer and bear management programs, including
a computerized licensing system.
(d) Fifty cents from each deer license is credited to the emergency deer feeding
and wild cervidae health management account and is appropriated for emergency deer
feeding and wild cervidae health management. Money appropriated for emergency
deer feeding and wild cervidae health management is available until expended.
49.18 the unencumbered balance in the appropriation for emergency deer feeding and wild
49.19 cervidae health management at the end of a fiscal year exceeds $2,500,000 for the first
49.20 time, $750,000 is canceled to the unappropriated balance of the game and fish fund.
The commissioner must inform the legislative chairs of the natural resources finance
committees every two years on how the money for emergency deer feeding and wild
cervidae health management has been spent.
When the unencumbered balance in the appropriation for emergency
deer feeding and wild cervidae health management exceeds $2,500,000 at the end of a
fiscal year, the unencumbered balance in excess of $2,500,000 is canceled and available
for deer and bear management programs and computerized licensing.
Sec. 34. Minnesota Statutes 2008, section 103G.271, subdivision 6, is amended to read:
Subd. 6. Water use permit processing fee.
(a) Except as described in paragraphs
(b) to (f), a water use permit processing fee must be prescribed by the commissioner in
accordance with the schedule of fees in this subdivision for each water use permit in force
at any time during the year. The schedule is as follows, with the stated fee in each clause
applied to the total amount appropriated:
(1) $140 for amounts not exceeding 50,000,000 gallons per year;
(2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
than 100,000,000 gallons per year;
(3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
than 150,000,000 gallons per year;
(4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
less than 200,000,000 gallons per year;
(5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
than 250,000,000 gallons per year;
(6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
less than 300,000,000 gallons per year;
(7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
than 350,000,000 gallons per year;
(8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
less than 400,000,000 gallons per year;
(9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
than 450,000,000 gallons per year;
(10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
less than 500,000,000 gallons per year; and
(11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
(b) For once-through cooling systems, a water use processing fee must be prescribed
by the commissioner in accordance with the following schedule of fees for each water use
permit in force at any time during the year:
(1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
(2) for all other users, $420 per 1,000,000 gallons.
(c) The fee is payable based on the amount of water appropriated during the year
and, except as provided in paragraph (f), the minimum fee is $100.
(d) For water use processing fees other than once-through cooling systems:
(1) the fee for a city of the first class may not exceed $250,000 per year;
(2) the fee for other entities for any permitted use may not exceed:
per year for an entity holding three or fewer permits;
per year for an entity holding four or five permits;
per year for an entity holding more than five permits;
(3) the fee for agricultural irrigation may not exceed $750 per year;
(4) the fee for a municipality that furnishes electric service and cogenerates steam
for home heating may not exceed $10,000 for its permit for water use related to the
cogeneration of electricity and steam; and
(5) no fee is required for a project involving the appropriation of surface water to
prevent flood damage or to remove flood waters during a period of flooding, as determined
by the commissioner.
(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
percent per month calculated from the original due date must be imposed on the unpaid
balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
may not be imposed on an agency, as defined in section
16B.01, subdivision 2
, or federal
governmental agency holding a water appropriation permit.
(f) The minimum water use processing fee for a permit issued for irrigation of
agricultural land is $20 for years in which:
(1) there is no appropriation of water under the permit; or
(2) the permit is suspended for more than seven consecutive days between May 1
and October 1.
(g) A surcharge of
per million gallons in addition to the fee prescribed in
paragraph (a) shall be applied to the volume of water used in each of the months of June,
July, and August that exceeds the volume of water used in January for municipal water
use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
with more than one permit shall be determined based on the total appropriations from all
permits that supply a common distribution system.
Sec. 35. Minnesota Statutes 2008, section 103G.301, subdivision 2, is amended to read:
Subd. 2. Permit application fees.
(a) A permit application fee to defray the costs of
receiving, recording, and processing the application must be paid for a permit authorized
under this chapter and for each request to amend or transfer an existing permit. Fees
51.24established under this subdivision, unless specified in paragraph (c), shall be compliant
51.25with section 16A.1285.
The fee for a project appropriating Proposed projects that require
water in excess
of 100 million gallons per year must be assessed fees
to recover the
of preparing and processing the permit, including costs incurred to evaluate the project
51.29and the costs incurred
for environmental review. Fees collected under this paragraph
must be credited to an account in the natural resources fund and are appropriated to the
for fiscal years 2008 and 2009
(c) The fee to apply for a permit to appropriate water,
other than a permit subject
51.33 to the in addition to any
fee under paragraph (b); a permit to construct or repair a dam
that is subject to dam safety inspection; or a state general permit
or to apply for the state
51.35 water bank program
is $150. The application fee for a permit to work in public waters or
to divert waters for mining must be at least $150, but not more than $1,000
, according to a
52.2 schedule of fees adopted under section
Sec. 36. Minnesota Statutes 2008, section 103G.301, subdivision 3, is amended to read:
Subd. 3. Field inspection fees.
(a) In addition to the application fee, the
commissioner may charge a field inspection fee for:
(1) projects requiring a mandatory environmental assessment under chapter 116D;
(2) projects undertaken without a required permit or application; and
(3) projects undertaken in excess of limitations established in an issued permit.
(b) The fee must be at least $100 but not more than actual inspection costs.
(c) The fee is to cover actual costs related to a permit applied for under this chapter
or for a project undertaken without proper authorization.
(d) The commissioner shall establish a schedule of field inspection fees under section
. The schedule must include actual costs related to field inspection, including
investigations of the area affected by the proposed activity, analysis of the proposed
activity, consultant services, and subsequent monitoring, if any, of the activity authorized
by the permit. Fees collected under this subdivision must be credited to an account in the
52.17natural resources fund and are appropriated to the commissioner.
Sec. 37. Minnesota Statutes 2008, section 115.03, subdivision 5c, is amended to read:
Subd. 5c. Regulation of storm water discharges.
(a) The agency may issue a
general permit to any category or subcategory of point source storm water discharges
that it deems administratively reasonable and efficient without making any findings
under agency rules. Nothing in this subdivision precludes the agency from requiring an
individual permit for a point source storm water discharge if the agency finds that it is
appropriate under applicable legal or regulatory standards.
(b) Pursuant to this paragraph, the legislature authorizes the agency to adopt and
enforce rules regulating point source storm water discharges. No further legislative
approval is required under any other legal or statutory provision whether enacted before or
after May 29, 2003.
52.29(c) The agency shall develop performance standards, design standards, or other
52.30tools to enable and promote the implementation of low-impact development and other
52.31storm water management techniques. For the purposes of this section, "low-impact
52.32development" means an approach to storm water management that mimics a site's natural
52.33hydrology as the landscape is developed. Using the low-impact development approach,
52.34storm water is managed on-site and the rate and volume of predevelopment storm water
53.1reaching receiving waters is unchanged. The calculation of predevelopment hydrology is
53.2based on native soil and vegetation.
Sec. 38. Minnesota Statutes 2008, section 115.073, is amended to read:
53.4115.073 ENFORCEMENT FUNDING.
Except as provided in section
, all money recovered by the state under this
chapter and chapters 115A and 116, including civil penalties and money paid under an
agreement, stipulation, or settlement, excluding money paid for past due fees or taxes,
up to the amount appropriated for implementation of Laws 1991, chapter 347,
deposited in the state treasury and credited to the environmental fund.
Sec. 39. Minnesota Statutes 2008, section 115.56, subdivision 4, is amended to read:
Subd. 4. License fee. (a) Until the agency adopts a final rule establishing fees for
53.12licenses under subdivision 2,
the fee for a license required under subdivision 2 is
per year and the annual license fee for a business with multiple licenses shall not
fees charged by the agency for licenses under subdivision
must be credited to the environmental fund and is exempt from section
Sec. 40. Minnesota Statutes 2008, section 115.77, subdivision 1, is amended to read:
Subdivision 1. Fees
following fees are established for the
53.19 purposes indicated: agency shall collect fees in amounts necessary, but no greater than the
53.20amounts necessary, to cover the reasonable costs of reviewing applications and issuing
53.22 (1) application for examination, $32;
53.23 (2) issuance of certificate, $23;
53.24 (3) reexamination resulting from failure to pass an examination, $32;
53.25 (4) renewal of certificate, $23;
53.26 (5) replacement certificate, $10; and
53.27 (6) reinstatement or reciprocity certificate, $40.
Sec. 41. Minnesota Statutes 2008, section 115A.1314, subdivision 2, is amended to
Subd. 2. Creation of account; appropriations.
(a) The electronic waste account
is established in the environmental fund. The commissioner of revenue must deposit
receipts from the fee established in subdivision 1 in the account. Any interest earned on
the account must be credited to the account. Money from other sources may be credited to
the account. Beginning in the second program year and continuing each program year
thereafter, as of the last day of each program year, the commissioner
determine the total amount of the variable fees that were collected.
By July 15, 2009, and
54.5 each July 15 thereafter, the commissioner of the Pollution Control Agency shall inform
54.6 the commissioner of revenue of the amount necessary to operate the program in the new
54.7 program year.
To the extent that the total fees collected by the commissioner
in connection with this section exceed the amount the commissioner
of the Pollution
54.9 Control Agency
determines necessary to operate the program for the new program
year, the commissioner
shall refund on a pro rata basis, to all manufacturers
who paid any fees for the previous program year, the amount of fees collected by the
in excess of the amount necessary to operate the program for the
new program year. No individual refund is required of amounts of $100 or less for a fiscal
year. Manufacturers who report collections less than 50 percent of their obligation for the
previous program year are not eligible for a refund.
Amounts not refunded pursuant to this
54.16 paragraph shall remain in the account. The commissioner of revenue shall issue refunds
54.17 by August 10. In lieu of issuing a refund, the commissioner of revenue may grant credit
54.18 against a manufacturer's variable fee due by September 1.
(b) Until June 30,
, money in the account is annually appropriated to the
Pollution Control Agency:
(1) for the purpose of implementing sections
transfer to the commissioner of revenue to carry out the department's duties under
115A.1320, subdivision 2
, and transfer to the commissioner of administration for
responsibilities under section
(2) to the commissioner of the Pollution Control Agency to be distributed on a
competitive basis through contracts with counties outside the 11-county metropolitan
area, as defined in paragraph (c), and with private entities that collect for recycling
covered electronic devices in counties outside the 11-county metropolitan area, where the
collection and recycling is consistent with the respective county's solid waste plan, for
the purpose of carrying out the activities under sections
awarding competitive grants under this clause, the commissioner must give preference to
counties and private entities that are working cooperatively with manufacturers to help
them meet their recycling obligations under section
115A.1318, subdivision 1
(c) The 11-county metropolitan area consists of the counties of Anoka, Carver,
Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright.
Sec. 42. Minnesota Statutes 2008, section 115A.557, subdivision 1, is amended to read:
Subdivision 1. Distribution; formula.
Any funds appropriated to the commissioner
for the purpose of distribution to counties under this section must be distributed each fiscal
year by the commissioner based on population, except a county may not receive less than
$55,000 in a fiscal year. If the amount available for distribution under this section is less
than the amount available in fiscal year 2001, the minimum county payment under
this section is reduced or increased
proportionately. For purposes of this subdivision,
"population" has the definition given in section
477A.011, subdivision 3
. A county that
participates in a multicounty district that manages solid waste and that has responsibility
for recycling programs as authorized in section
, must pass through to the
districts funds received by the county in excess of the minimum county payment under
this section in proportion to the population of the county served by that district.
Sec. 43. [115A.559] COMPOSTING COMPETITIVE GRANT PROGRAM.
55.14 Subdivision 1. Grant program established. The commissioner shall make
55.15competitive grants to political subdivisions to increase composting, reduce the amount of
55.16organic wastes entering disposal facilities, and reduce the costs associated with hauling
55.17waste by locating the composting site as close as possible to the site where the waste is
55.18generated. To achieve the purpose of the grant program, the commissioner shall actively
55.19recruit potential applicants beyond traditional solid waste professionals and organizations,
55.20such as soil and water conservation districts and schools. Each grant must include an
55.21educational component on the methods and benefits of composting.
55.22 Subd. 2. Application. (a) The commissioner must develop forms and procedures
55.23for soliciting and reviewing applications for grants under this section.
55.24(b) The determination of whether to make a grant under this section is within the
55.25discretion of the commissioner, subject to subdivision 4. The commissioner's decisions
55.26are not subject to judicial review, except for abuse of discretion.
55.27 Subd. 3. Priorities; eligible projects. (a) If applications for grants exceed the
55.28available appropriations, grants must be made for projects that, in the commissioner's
55.29judgment, provide the highest return in public benefits.
55.30(b) To be eligible to receive a grant, a project must:
55.31(1) be locally administered;
55.32(2) have measurable outcomes; and
55.33(3) include at least one of the following elements:
55.34(i) the development of erosion control methods that use compost;
56.1(ii) activities to encourage on-site composting by homeowners; or
56.2(iii) activities to encourage composting by schools or public institutions.
56.3 Subd. 4. Cancellation of grant. If a grant is awarded under this section and
56.4funds are not encumbered for the grant within four years after the award date, the grant
56.5must be canceled.
Sec. 44. Minnesota Statutes 2008, section 115A.931, is amended to read:
56.7115A.931 YARD WASTE PROHIBITION.
(a) Except as authorized by the agency, in the metropolitan area after January 1,
1990, and outside the metropolitan area after January 1, 1992, a person may not place
(1) in mixed municipal solid waste;
(2) in a disposal facility; or
(3) in a resource recovery facility except for the purposes of reuse, composting, or
115A.03, subd 38
56.16(c) On or after January 1, 2010, a person may not place yard waste or
56.17source-separated compostable materials generated in a metropolitan county in a plastic bag
56.18delivered to a transfer station or compost facility unless the bag meets all the specifications
56.19in ASTM Standard Specification for Compostable Plastics (D6400). For purposes of this
56.20paragraph, "metropolitan county" has the meaning given in section 473.121, subdivision
56.214, and "ASTM" has the meaning given in section 296A.01, subdivision 6.
56.22(d) A person who immediately empties a plastic bag containing yard waste or
56.23source-separated compostable materials delivered to a transfer station or compost facility
56.24and removes the plastic bag from the transfer station or compost facility is exempt from
56.26(e) Residents of a city of the first class that currently contracts for the collection of
56.27yard waste are exempt from paragraph (c) until January 1, 2013, if, by that date, the
56.28city implements a citywide source-separated compostable materials collection program
56.29using durable carts.
Sec. 45. Minnesota Statutes 2008, section 116.0711, is amended to read:
PERMIT CONDITIONS PERMITS; CONDITIONS;
56.33 Subdivision 1. Conditions.
(a) The agency shall not require feedlot permittees to
maintain records as to rainfall or snowfall as a condition of a general feedlot permit if the
owner directs the commissioner or agent of the commissioner to appropriate data on
precipitation maintained by a government agency or educational institution.
(b) A feedlot permittee shall give notice to the agency when the permittee proposes
to transfer ownership or control of the feedlot to a new party. The commissioner shall
not unreasonably withhold or unreasonably delay approval of any transfer request. This
request shall be handled in accordance with sections
(c) The Environmental Quality Board shall review and recommend modifications
57.8 to environmental review rules related to phased actions and animal agriculture facilities.
57.9 The Environmental Quality Board shall report recommendations to the chairs of the
57.10 committees of the senate and house of representatives with jurisdiction over agriculture
57.11 and the environment by January 15, 2002.
57.12 (d) If the owner of an animal feedlot requests an extension for an application for a
57.13 national pollutant discharge elimination permit or state disposal system permit by June 1,
57.14 2001, then the agency shall grant an extension for the application to September 1, 2001.
57.15 (e) (c)
An animal feedlot in shoreland that has been unused may resume operation
after obtaining a permit from the agency or county, regardless of the number of years that
the feedlot was unused.
57.18 Subd. 2. County feedlot program grants; three-part formula. (a) Money
57.19appropriated to the commissioner to make grants to delegated counties to administer
57.20the county feedlot program must be distributed according to the three-part formula in
57.21paragraphs (b) to (d).
57.22 (b) Number of feedlots in the county: 60 percent of the total appropriation must be
57.23distributed according to the number of feedlots that are required to be registered in the
57.24county. Grants awarded under this paragraph must be matched with a combination of local
57.25cash and in-kind contributions.
57.26 (c) Minimum program requirements: 25 percent of the total appropriation must be
57.27distributed based on the county (1) conducting an annual number of inspections at feedlots
57.28that is equal to or greater than seven percent of the total number of registered feedlots that
57.29are required to be registered in the county; and (2) meeting noninspection minimum
57.30program requirements as identified in the county feedlot workplan form. Counties that do
57.31not meet the inspection requirement must not receive 50 percent of the eligible funding
57.32under this paragraph. Counties must receive funding for noninspection requirements under
57.33this paragraph according to a scoring system checklist administered by the commissioner.
57.34The commissioner, in consultation with the Minnesota Association of County Feedlot
57.35Officers executive team, shall make a final decision regarding any appeal by a county
57.36regarding the terms and conditions of this paragraph.
58.1 (d) Performance credits: 15 percent of the total appropriation must be distributed
58.2according to work that has been done by the counties during the fiscal year. The amount
58.3must be determined by the number of performance credits a county accumulates during
58.4the year based on a performance credit matrix jointly agreed upon by the commissioner
58.5in consultation with the Minnesota Association of County Feedlot Officers executive
58.6team. To receive an award under this paragraph, the county must meet the requirements
58.7of paragraph (c), clause (1), and achieve 90 percent of the requirements according to
58.8paragraph (c), clause (2), of the formula. The rate of reimbursement per performance
58.9credit item must not exceed $200.
58.10 Subd. 3. Minimum grant; prorated grant; transfers. Delegated counties are
58.11eligible for a minimum grant of $7,500. To receive the full $7,500 amount, a county must
58.12meet the requirements under subdivision 2, paragraph (c). Nondelegated counties that
58.13apply for delegation shall receive a grant prorated according to the number of full quarters
58.14remaining in the program year from the date of commissioner approval of the delegation.
58.15Awards to any newly delegated counties must be made out of the appropriation reserved
58.16under subdivision 2, paragraph (d). The commissioner, in consultation with the Minnesota
58.17Association of County Feedlot Officers executive team, may decide to use money reserved
58.18under subdivision 2, paragraph (d), in an amount not to exceed five percent of the total
58.19annual appropriation for initiatives to enhance existing delegated county feedlot programs,
58.20information and education, or technical assistance efforts to reduce feedlot-related
58.21pollution hazards. Any amount remaining after distribution under subdivision 2,
58.22paragraphs (b) and (c), must be transferred for purposes of subdivision 2, paragraph (d).
Sec. 46. Minnesota Statutes 2008, section 116.41, subdivision 2, is amended to read:
Subd. 2. Training and certification programs.
The agency shall develop standards
of competence for persons operating and inspecting various classes of disposal facilities.
The agency shall conduct training programs for persons operating facilities for the
disposal of waste and for inspectors of such facilities, and
charge such fees as
are necessary to cover the actual costs of the training programs. All fees received shall be
paid into the state treasury and credited to the Pollution Control Agency training account
and are appropriated to the agency to pay expenses relating to the training of disposal
The agency shall require operators and inspectors of such facilities to obtain from
the agency a certificate of competence. The agency shall conduct examinations to test the
competence of applicants for certification, and shall require that certificates be renewed at
reasonable intervals. The agency may charge such fees as are necessary to cover the actual
costs of receiving and processing applications, conducting examinations, and issuing
and renewing certificates. Certificates shall not be required for a private individual for
land-spreading and associated interim and temporary storage of sewage sludge on property
owned or farmed by that individual.
Sec. 47. [116.9401] DEFINITIONS.
59.6(a) For the purposes of sections 116.9401 to 116.9407, the following terms have
59.7the meanings given them.
59.8(b) "Agency" means the Pollution Control Agency.
59.9(c) "Alternative" means a substitute process, product, material, chemical, strategy,
59.10or combination of these that is technically feasible and serves a functionally equivalent
59.11purpose to a chemical in a children's product.
59.12(d) "Chemical" means a substance with a distinct molecular composition or a group
59.13of structurally related substances and includes the breakdown products of the substance or
59.14substances that form through decomposition, degradation, or metabolism.
59.15(e) "Chemical of high concern" means a chemical identified on the basis of credible
59.16scientific evidence by a state, federal, or international agency as being known or suspected
59.17with a high degree of probability to:
59.18(1) harm the normal development of a fetus or child or cause other developmental
59.20(2) cause cancer, genetic damage, or reproductive harm;
59.21(3) disrupt the endocrine or hormone system;
59.22(4) damage the nervous system, immune system, or organs, or cause other systemic
59.24(5) be persistent, bioaccumulative, and toxic; or
59.25(6) be very persistent and very bioaccumulative.
59.26(f) "Child" means a person under 12 years of age.
59.27(g) "Children's product" means a consumer product intended for use by children,
59.28such as baby products, toys, car seats, personal care products, and clothing.
59.29(h) "Commissioner" means the commissioner of the Pollution Control Agency.
59.30(i) "Department" means the Department of Health.
59.31(j) "Distributor" means a person who sells consumer products to retail establishments
59.32on a wholesale basis.
59.33(k) "Green chemistry" means an approach to designing and manufacturing products
59.34that minimizes the use and generation of toxic substances.
60.1(l) "Manufacturer" means any person who manufactures a final consumer product
60.2sold at retail or whose brand name is affixed to the consumer product. In the case of a
60.3consumer product imported into the United States, manufacturer includes the importer
60.4or domestic distributor of the consumer product if the person who manufactured or
60.5assembled the consumer product or whose brand name is affixed to the consumer product
60.6does not have a presence in the United States.
60.7(m) "Priority chemical" means a chemical identified by the Department of Health as
60.8a chemical of high concern that meets the criteria in section 116.9403.
60.9(n) "Safer alternative" means an alternative whose potential to harm human health is
60.10less than that of the use of a priority chemical that it could replace.
60.11EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 48. [116.9402] IDENTIFICATION OF CHEMICALS OF HIGH CONCERN.
60.13(a) By July 1, 2010, the department shall, after consultation with the agency,
60.14generate a list of chemicals of high concern.
60.15(b) The department must periodically review and revise the list of chemicals of high
60.16concern at least every three years. The department may add chemicals to the list if the
60.17chemical meets one or more of the criteria in section 116.9401, paragraph (e).
60.18(c) The department shall consider chemicals listed as a suspected carcinogen,
60.19reproductive or developmental toxicant, or as being persistent, bioaccumulative, and
60.20toxic, or very persistent and very bioaccumulative by a state, federal, or international
60.21agency. These agencies may include, but are not limited to, the California Environmental
60.22Protection Agency, the Washington Department of Ecology, the United States Department
60.23of Health, the United States Environmental Protection Agency, the United Nation's World
60.24Health Organization, and European Parliament Annex X1V concerning the Registration,
60.25Evaluation, Authorisation, and Restriction of Chemicals.
60.26(d) The department may consider chemicals listed by another state as harmful to
60.27human health or the environment for possible inclusion in the list of chemicals of high
60.29EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 49. [116.9403] IDENTIFICATION OF PRIORITY CHEMICALS.
60.31(a) The department, after consultation with the agency, may designate a chemical of
60.32high concern as a priority chemical if the department finds that the chemical:
60.33(1) has been identified as a high-production volume chemical by the United States
60.34Environmental Protection Agency; and
61.1(2) meets any of the following criteria:
61.2(i) the chemical has been found through biomonitoring to be present in human blood,
61.3including umbilical cord blood, breast milk, urine, or other bodily tissues or fluids;
61.4(ii) the chemical has been found through sampling and analysis to be present in
61.5household dust, indoor air, drinking water, or elsewhere in the home environment; or
61.6(iii) the chemical has been found through monitoring to be present in fish, wildlife,
61.7or the natural environment.
61.8(b) By February 1, 2011, the department shall publish a list of priority chemicals in
61.9the State Register and on the department's Internet Web site and shall update the published
61.10list whenever a new priority chemical is designated.
61.11EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 50. [116.9405] APPLICABILITY.
61.13The requirements of sections 116.9401 to 116.9407 do not apply to:
61.14(1) chemicals in used children's products;
61.15(2) priority chemicals used in the manufacturing process, but that are not present
61.16in the final product;
61.17(3) priority chemicals used in agricultural production;
61.18(4) motor vehicles as defined in chapter 168 or watercraft as defined in chapter
61.1986B or their component parts, except that the use of priority chemicals in detachable
61.20car seats is not exempt;
61.21(5) priority chemicals generated solely as combustion by-products or that are present
61.22in combustible fuels;
61.24(7) pharmaceutical products or biologics;
61.25(8) a medical device as defined in the federal Food, Drug, and Cosmetic Act, United
61.26States Code, title 21, section 321(h);
61.27(9) food and food or beverage packaging, except a container containing baby food
61.28or infant formula;
61.29(10) consumer electronics products and electronic components, including but not
61.30limited to personal computers; audio and video equipment; calculators; digital displays;
61.31wireless phones; cameras; game consoles; printers; and handheld electronic and electrical
61.32devices used to access interactive software or their associated peripherals; or products that
61.33comply with the provisions of directive 2002/95/EC of the European Union, adopted by
61.34the European Parliament and Council of the European Union now or hereafter in effect; or
62.1 (11) outdoor sport equipment, including snowmobiles as defined in section 84.81,
62.2subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal
62.3watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section
62.486B.005, subdivision 18; and off-highway motorcycles, as defined in section 84.787,
62.5subdivision 7, and all attachments and repair parts for all of this equipment.
62.6EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 51. [116.9406] DONATIONS TO THE STATE.
62.8The commissioner may accept donations, grants, and other funds to carry out the
62.9purposes of sections 116.9401 to 116.9407. All donations, grants, and other funds must
62.10be accepted without preconditions regarding the outcomes of the regulatory oversight
62.11processes set forth in sections 116.9401 to 116.9407.
62.12EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 52. [116.9407] PARTICIPATION IN INTERSTATE CHEMICALS
62.15The state may cooperate with other states in an interstate chemicals clearinghouse
62.16regarding chemicals in consumer products, including the classification of priority
62.17chemicals in commerce; organizing and managing available data on chemicals, including
62.18information on uses, hazards, risks, and environmental and health concerns; and producing
62.19and evaluating information on safer alternatives to specific uses of priority chemicals.
62.20EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 53. Minnesota Statutes 2008, section 116C.834, subdivision 1, is amended to read:
Subdivision 1. Costs.
All costs incurred by the state to carry out its responsibilities
under the compact and under sections
shall be paid by generators
of low-level radioactive waste in this state through fees assessed by the Pollution Control
Agency. Fees may be reasonably assessed on the basis of volume or degree of hazard of
the waste produced by a generator. Costs for which fees may be assessed include, but
are not limited to:
(1) the state contribution required to join the compact;
(2) the expenses of the commission member and state agency costs incurred to
support the work of the Interstate Commission; and
(3) regulatory costs.
The fees are exempt from section
Sec. 54. [216H.021] GREENHOUSE GAS EMISSIONS REPORTING.
63.2 Subdivision 1. Commissioner to establish reporting system and maintain
63.3inventory. In order to measure the progress in meeting the goals of section 216H.02,
63.4subdivision 1, and to provide information to develop strategies to achieve those goals, the
63.5commissioner of the Pollution Control Agency shall establish a system for reporting and
63.6maintaining an inventory of greenhouse gas emissions. The commissioner must consult
63.7with the chief information officer of the Office of Enterprise Technology about system
63.8design and operation. Greenhouse gas emissions include those emissions described in
63.9section 216H.01, subdivision 2.
63.10 Subd. 2. Reporting system design. (a) The commissioner shall, to the extent
63.11practicable, design the system to coordinate with other regional or federal greenhouse gas
63.12emissions-reporting and inventory systems. The coordination may, without limitation,
63.13include the use of similar forms and reports, the sharing of information, and the use of
63.14common facilities, systems, and databases.
63.15(b) The reporting system need not include all sources of emissions nor all amounts
63.16of emissions but, at its outset, must include:
63.17(1) all stationary sources and other facilities required to obtain a permit under Title
63.18V of the federal Clean Air Act, United States Code, title 42, section 7401 et. seq.; and
63.19(2) facilities whose annual carbon dioxide equivalent emissions, as defined in
63.20section 216H.10, subdivision 3, exceed a threshold set by the commissioner at between
63.2110,000 tons and 25,000 tons. The reporting threshold set by the commissioner must
63.22be consistent with the goal of accurately tracking progress in attaining greenhouse
63.23gas emissions-reduction goals and the need for emissions data to assist in developing
63.24greenhouse gas emissions-reduction strategies.
63.25(c) In designing the greenhouse gas emissions reporting system, the commissioner
63.26shall consider requiring the reporting of greenhouse gas emissions from transportation
63.27fuels and greenhouse gas emissions from natural gas combustion that are not included
63.28in reporting from stationary sources. In determining whether to include reporting of
63.29these emissions, the commissioner must consider both the goal of accurately tracking
63.30progress in attaining greenhouse gas emissions-reduction goals and the need for emissions
63.31data to assist in developing greenhouse gas emissions-reduction strategies recommended
63.32by the Minnesota Climate Change Advisory Group. If the commissioner decides that
63.33transportation fuels and portions of natural gas combustion should not be included in
63.34the initial emissions reporting system, the commissioner must report to the chairs and
63.35ranking minority members of the senate and house of representatives committees with
63.36primary jurisdiction over energy and environmental policy the reasons for that decision
64.1and suggestions for steps that should be taken to allow their inclusion in the emissions
64.2reporting system in the future.
64.3(d) A facility reporting greenhouse gas emissions under this section must maintain
64.4the data used to create the reports for a minimum of five years.
64.5 Subd. 3. Rules. The commissioner of the Pollution Control Agency may adopt rules
64.6for the purposes of this section.
64.7EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 55. Minnesota Statutes 2008, section 216H.10, subdivision 7, is amended to read:
Subd. 7. High-GWP greenhouse gas.
"High-GWP greenhouse gas" means
sulfur hexafluoride, nitrous trifluoride, and any
64.11other gas the agency determines by rule to have a high global warming potential
Sec. 56. Minnesota Statutes 2008, section 216H.11, is amended to read:
64.13216H.11 HIGH-GWP GREENHOUSE GAS REPORTING.
Subdivision 1. Gas manufacturers.
, 2008, and
, a manufacturer of a high-GWP greenhouse gas must report to the agency the
total amount of each high-GWP greenhouse gas sold to a purchaser in this state during
the previous year.
Subd. 2. Purchases.
, 2008, and
in this state
metric tons or more carbon dioxide
equivalent of a high-GWP greenhouse gas for use or retail sale in this state
to the agency, on a form prescribed by the commissioner, the total amount of each
high-GWP greenhouse gas purchased for use or retail sale in this state
during the previous
year and the purpose for which the gas was used. The commissioner may adopt rules
64.24under chapter 14 to establish a different reporting threshold or to adopt specific reporting
64.25requirements for commercial or industrial facilities that purchase high-GWP gases for use
64.26or retail sale in this state.
Subd. 3. Acceptance of federal filing.
With the approval of the commissioner, this
section may be satisfied by filing with the commissioner a copy of a greenhouse gas
emissions report filed with a federal agency or a regional or national greenhouse gas
64.30registry, provided that the entity with which the report is filed requires the emissions
64.31data to be verified
Sec. 57. [325E.046] STANDARDS FOR LABELING PLASTIC BAGS.
65.1 Subdivision 1. "Biodegradable" label. A manufacturer, distributor, or wholesaler
65.2may not offer for sale in this state a plastic bag labeled "biodegradable," "degradable,"
65.3or any form of those terms, or in any way imply that the bag will chemically decompose
65.4into innocuous elements in a reasonably short period of time in a landfill, composting, or
65.5other terrestrial environment unless a scientifically based standard for biodegradability is
65.6developed and the bags are certified as meeting the standard.
65.7 Subd. 2. "Compostable" label. A manufacturer, distributor, or wholesaler may not
65.8offer for sale in this state a plastic bag labeled "compostable" unless, at the time of sale,
65.9the bag meets the ASTM Standard Specification for Compostable Plastics (D6400). Each
65.10bag must be labeled to reflect that it meets the standard. For purposes of this subdivision,
65.11"ASTM" has the meaning given in section 296A.01, subdivision 6.
65.12 Subd. 3. Enforcement; civil penalty; injunctive relief. (a) A manufacturer,
65.13distributor, or wholesaler who violates subdivision 1 or 2 is subject to a civil penalty of
65.14$100 for each prepackaged saleable unit offered for sale up to a maximum of $5,000
65.15and may be enjoined from those violations.
65.16(b) The attorney general may bring an action in the name of the state in a court of
65.17competent jurisdiction for recovery of civil penalties or for injunctive relief as provided in
65.18this subdivision. The attorney general may accept an assurance of discontinuance of acts
65.19in violation of subdivision 1 or 2 in the manner provided in section 8.31, subdivision 2b.
65.20EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 58. [383B.236] WASTE MANAGEMENT BY HENNEPIN COUNTY.
65.22The Hennepin County Board of Commissioners may utilize money received from
65.23the sale of energy and recovered materials and placed in the county solid and hazardous
65.24waste fund under section 473.811, subdivision 9, for program expenses of the Department
65.25of Environmental Services, or the department or office succeeding to the functions of the
65.26Department of Environmental Services. This authority shall be in addition to the authority
65.27given in section 473.811, subdivision 9.
Sec. 59. Laws 2005, chapter 156, article 2, section 45, as amended by Laws 2007,
chapter 148, article 2, section 73, is amended to read:
Sec. 45. SALE OF STATE LAND.
Subdivision 1. State land sales.
The commissioner of administration shall
coordinate with the head of each department or agency having control of state-owned land
to identify and sell at least $6,440,000 of state-owned land. Sales should be completed
according to law and as provided in this section as soon as practicable but no later than
. Notwithstanding Minnesota Statutes, sections
, or any other law to the contrary, the commissioner may offer land
for public sale by only providing notice of lands or an offer of sale of lands to state
departments or agencies, the University of Minnesota, cities, counties, towns, school
districts, or other public entities.
Subd. 2. Anticipated savings.
Notwithstanding Minnesota Statutes, section
66.794.16, subdivision 3
, or other law to the contrary, the amount of the proceeds from the
sale of land under this section that exceeds the actual expenses of selling the land must
be deposited in the general fund, except as otherwise provided by the commissioner of
finance. Notwithstanding Minnesota Statutes, section
, the commissioner
of finance may establish the timing of payments for land purchased under this section. If
the total of all money deposited into the general fund from the proceeds of the sale of land
under this section is anticipated to be less than $6,440,000, the governor must allocate the
amount of the difference as reductions to general fund operating expenditures for other
executive agencies for the biennium ending June 30,
Subd. 3. Sale of state lands revolving loan fund.
$290,000 is appropriated from
the general fund in fiscal year 2006 to the commissioner of administration for purposes
of paying the actual expenses of selling state-owned lands to achieve the anticipated
savings required in this section. From the gross proceeds of land sales under this section,
the commissioner of administration must cancel the amount of the appropriation in this
subdivision to the general fund by June 30,
66.22EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 60. Laws 2007, chapter 57, article 1, section 4, subdivision 2, is amended to read:
|Subd. 2.Land and Mineral Resources
|Appropriations by Fund
|Game and Fish
$475,000 the first year and $475,000 the
second year are for iron ore cooperative
research. Of this amount, $200,000 each year
is from the minerals management account in
the natural resources fund and $275,000 each
year is from the general fund. $237,500 the
first year and $237,500 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The
match may be cash or in-kind.
$86,000 the first year and $86,000 the
second year are for minerals cooperative
environmental research, of which $43,000
the first year and $43,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The
match may be cash or in-kind.
$2,800,000 the first year and $2,696,000
the second year are from the minerals
management account in the natural resources
fund for use as provided in Minnesota
, paragraph (c).
$200,000 the first year and $200,000 the
second year are from the state forest suspense
account in the permanent school fund to
accelerate land exchanges, land sales, and
commercial leasing of school trust lands and
to identify, evaluate, and lease construction
aggregate located on school trust lands. This
appropriation is to be used for securing
maximum long-term economic return
from the school trust lands consistent with
fiduciary responsibilities and sound natural
resources conservation and management
$15,000 the first year is for a report
by February 1, 2008, to the house and
senate committees with jurisdiction over
environment and natural resources on
proposed minimum legal and conservation
standards that could be applied to
conservation easements acquired with public
$1,201,000 the first year and $701,000 the
second year are to support the land records
management system. Of this amount,
$326,000 the first year and $326,000 the
second year are from the game and fish fund
and $375,000 the first year and $375,000 the
second year are from the natural resources
fund. The unexpended balances are available
68.15until June 30, 2011.
must report to the legislative chairs on
environmental finance on the outcomes of
the land records management support.
$500,000 the first year and $500,000 the
second year are for land asset management.
This is a onetime appropriation.
Sec. 61. Laws 2008, chapter 363, article 5, section 4, subdivision 7, is amended to read:
|Subd. 7.Fish and Wildlife Management
|Appropriations by Fund
|Game and Fish
$329,000 in 2009 is a reduction for fish and
$46,000 in 2009 is a reduction in the
appropriation for the Minnesota Shooting
Sports Education Center.
$52,000 in 2009 is a reduction for licensing.
$123,000 in 2008 and $246,000 in 2009 are
from the game and fish fund to implement
fish virus surveillance, prepare infrastructure
to handle possible outbreaks, and implement
control procedures for highest risk waters
and fish production operations. This is a
Notwithstanding Minnesota Statutes, section
, paragraph (e), $300,000 in 2009
is from the second year appropriation in
Laws 2007, chapter 57, article 1, section 4,
subdivision 7, from the heritage enhancement
account in the game and fish fund to study,
predesign, and design a
facilities at the Vermillion Highlands Wildlife
69.16 Management Area authorized by Laws 2007,
69.17 chapter 57, article 1, section 168 facility in
69.18the seven-county metropolitan area
. This is
available onetime only and is available until
$300,000 in 2009 is appropriated from the
game and fish fund for only activities that
improve, enhance, or protect fish and wildlife
resources. This is a onetime appropriation.
Sec. 62. SCORE REPORTING.
69.26 Subdivision 1. 2010 requirement. The requirements for the report specified in
69.27Minnesota Statutes, section 115A.557, subdivision 3, paragraph (b), clause (2), that is due
69.28April 1, 2010, shall be abbreviated in scope. The information collected shall be sufficient
69.29for the commissioner of the Pollution Control Agency to determine that counties have
69.30complied with the requirements of this subdivision.
69.31 Subd. 2. Recommendations; report. The commissioner of the Pollution Control
69.32Agency, in consultation with the Association of Minnesota Counties, the Solid Waste
69.33Administrators Association, the Solid Waste Management Coordinating Board, and other
69.34interested parties shall make recommendations to amend the reporting requirements under
70.1Minnesota Statutes, section 115A.557, subdivision 3, in ways that reduce the resources
70.2counties employ to collect the data reported, while ensuring that estimation methods used
70.3to report data are consistent across counties and that the data reported are accurate and
70.4useful as a guide to solid waste management policy makers. The commissioner shall also
70.5make recommendations regarding the feasibility and desirability of multicounty reporting
70.6of the data. The commissioner's recommendations must be presented in a report submitted
70.7to the chairs and ranking minority members of the senate and house of representatives
70.8committees and divisions with primary jurisdiction over solid waste policy and finance
70.9no later than January 15, 2010.
Sec. 63. PRIORITY CHEMICAL REPORTS.
70.11(a) By January 15, 2010, the commissioner of health, in consultation with the
70.12Pollution Control Agency, shall report to the chairs and ranking minority members
70.13of the senate and house of representatives committees with primary jurisdiction over
70.14environment and natural resources policy, commerce, and public health regarding the
70.15progress on implementing new Minnesota Statutes, sections 116.9401 to 116.9406, and
70.16information on the progress of federal, international, and other states in identifying,
70.17prioritizing, evaluating, regulating, and reducing the use of chemicals of high concern
70.18and priority chemicals in children's products and in determining the availability of safer
70.19alternatives for specific applications and promoting the use of those safer alternatives.
70.20(b) By December 15, 2010, the commissioner of the Pollution Control Agency
70.21shall report to the chairs and ranking minority members of the senate and house of
70.22representatives committees with primary jurisdiction over environment and natural
70.23resources policy, commerce, and public health assessing mechanisms used by other states,
70.24the federal government, and other countries to reduce and phase out the use of priority
70.25chemicals in children's products and promote the use of safer alternatives. The report shall
70.26include potential funding mechanisms to implement this process. The report must include
70.27recommendations to promote and provide incentives for product design that use principles
70.28of green chemistry and life-cycle analysis. In developing the report, the agency may
70.29consult with stakeholders, including representatives of state agencies, manufacturers of
70.30children's products, chemical manufacturers, public health experts, independent scientists,
70.31and public interest groups. The report must include information on any stakeholder
70.32process consulted with or used in developing the report.
70.33(c) By January 15, 2010, the agency shall provide an interim report about the
70.34progress in developing the report required under paragraph (b), including information
70.35on the status of any stakeholder process.
71.1EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 64. REORGANIZATION PROHIBITION; ENVIRONMENTAL QUALITY
71.4Notwithstanding Minnesota Statutes, section 16B.37, unless expressly provided by
71.5law, the commissioner of administration shall not reorganize the Environmental Quality
71.6Board within another agency, prior to July 1, 2011.
Sec. 65. ENVIRONMENTAL REVIEW STREAMLINING REPORT.
71.8By February 15, 2010, the commissioner of the Pollution Control Agency, in
71.9consultation with staff from the Environmental Quality Board, shall submit a report
71.10to the environment and natural resources policy and finance committees of the house
71.11and senate on options to streamline the environmental review process under Minnesota
71.12Statutes, chapter 116D. In preparing the report, the commissioner shall consult with state
71.13agencies, local government units, and business, agriculture, and environmental advocacy
71.14organizations with an interest in the environmental review process. The report shall
71.15include options that will reduce the time required to complete environmental review and
71.16the cost of the process to responsible governmental units and project proposers while
71.17maintaining or improving air, land, and water quality standards.
Sec. 66. COMPENSATION OF GOVERNOR'S STAFF.
71.19For fiscal years 2010 and 2011, the Department of Natural Resources, the Pollution
71.20Control Agency, and the Board of Water and Soil Resources may not use funds
71.21appropriated in this article or funds from any statutory or open appropriation to pay
71.22directly or indirectly for the compensation costs of staff in the office of the governor.
Sec. 67. FISH CONSUMPTION ADVISORIES.
71.24 The commissioner of natural resources, in cooperation with the commissioner of
71.25health, shall ensure that fish consumption advisories are displayed in at least four different
71.26languages, one of which must be English, to fairly represent the population of the state.
Sec. 68. CARBON SEQUESTRATION FORESTRY REPORT.
71.28The Minnesota Forest Resources Council shall review the Minnesota Climate
71.29Change Advisory Group's recommendation to increase carbon sequestration in forests by
71.30planting 1,000,000 acres of trees and shall submit a report to the chairs of the house of
71.31representatives and senate committees with jurisdiction over energy and energy finance,
71.32environment and natural resources, and environment and natural resources finance; the
72.1governor; and the commissioner of natural resources by January 15, 2010. The report
72.2shall, at a minimum, include recommendations on implementation and analysis of the
72.3number and ownership of acres available for tree planting, the types of native species best
72.4suited for planting, the availability of planting stock, and potential costs.
Sec. 69. REPEALER.
72.6Laws 2008, chapter 363, article 5, section 30, is repealed.
72.10 The amounts shown in this section summarize direct appropriations, by fund, made
72.11in this article.
|Section 1. SUMMARY OF APPROPRIATIONS.
|Petroleum Tank Cleanup
72.21 The sums shown in the columns marked "Appropriations" are appropriated to the
72.22agencies and for the purposes specified in this article. The appropriations are from the
72.23general fund, or another named fund, and are available for the fiscal years indicated
72.24for each purpose. The figures "2010" and "2011" used in this article mean that the
72.25appropriations listed under them are available for the fiscal year ending June 30, 2010, or
72.26June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
72.27year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal
72.28year ending June 30, 2009, are effective the day following final enactment.
|Sec. 2. ENERGY FINANCE APPROPRIATIONS.
||Available for the Year
||Ending June 30
|Sec. 3. DEPARTMENT OF COMMERCE
|Subdivision 1.Total Appropriation
73.12The amounts that may be spent for each
73.13purpose are specified in the following
|Appropriations by Fund
73.16$1,000 each year is for consumer small loan
73.17regulation modifications in article 7. This
73.18appropriation is added to the department's
|Subd. 2.Financial Institutions
73.22This appropriation is from the petroleum
73.23tank release cleanup fund. The base funding
73.24for this program ends June 30, 2012.
|Subd. 3.Petroleum Tank Release Cleanup
|Subd. 4.Administrative Services
|Subd. 6.Market Assurance
|Appropriations by Fund
|Subd. 7.Office of Energy Security
74.9$250,000 the first year is for E-85 grants
74.10under Laws 2007, chapter 57, article 2,
74.11section 3, subdivision 6. Grants for on-site
74.12blending pumps must include up to 75
74.13percent of the total cost of the project, up to
74.14a maximum of $15,000 per pump. This is a
74.16The utility subject to Minnesota Statutes,
74.17section 116C.779, shall transfer $1,350,000
74.18in fiscal year 2010 and $625,000 in fiscal
74.19year 2011 only to the Department of
74.20Commerce on a schedule determined by the
74.21commissioner of commerce. These funds
74.22must be deposited in the special revenue fund
74.23and are appropriated to the commissioner
74.24for grants to promote renewable energy
74.25projects and community energy outreach and
74.26assistance. Of the amounts identified:
74.27(1) $300,000 the first year is for a grant
74.28to the Board of Regents of the University
74.29of Minnesota for the Natural Resources
74.30and Research Institute at the University of
74.31Minnesota, Duluth, to develop statewide
74.32heat flow maps in order to determine
75.1the geothermal potential of the state of
75.3(2) $625,000 each year is for continued
75.4funding of community energy technical
75.5assistance and outreach on renewable
75.6energy and energy efficiency, as described
75.7in Minnesota Statutes, section 216C.385.
75.8Of this amount, $125,000 each year is for
75.9technical assistance in the metropolitan area;
75.10(3) $25,000 the first year is for a grant to
75.11a nonprofit organization with experience
75.12in creating innovative partnerships through
75.13collaborative action with diverse interests,
75.14including businesses, government agencies,
75.15environmental organizations, and others,
75.16to manage a stakeholder process on green
75.17jobs that would integrate the work of the
75.18state Green Jobs Task Force and the mayors'
75.19initiative on green manufacturing; and
75.20(4) $400,000 the first year is to provide
75.21financial rebates for new solar electricity
|Appropriations by Fund
75.25$300,000 the first year and $300,000
75.26the second year are for transfer to the
75.27commissioner of human services to
75.28supplement the ongoing operational expenses
75.29of the Minnesota Commission Serving
75.30Deaf and Hard-of-Hearing People. This
75.31appropriation is from the telecommunication
75.32access Minnesota fund, and is added to
75.33the commission's base. This appropriation
75.34consolidates, and is not in addition to,
76.1appropriation language from Laws 2006,
76.2chapter 282, article 11, section 4, and
76.3Laws 2007, chapter 57, article 2, section 3,
76.5$300,000 each year is from the
76.6telecommunications access fund to the
76.7commissioner of commerce for a grant to
76.8the Legislative Coordinating Commission
76.9for a pilot program to provide captioning
76.10of live streaming of legislative sessions
76.11on the commission's Web site and a grant
76.12to the Commission of Deaf, DeafBlind,
76.13and Hard-of-Hearing Minnesotans to
76.14provide information on their Web site in
76.15American Sign Language and to provide
76.16technical assistance to state agencies. The
76.17commissioner of commerce may allocate
76.18a portion of this money to the Office
76.19of Technology to coordinate technology
76.20accessibility and usability.
76.22By July 31, 2009, the commissioner of
76.23finance shall transfer $500,000 from the
76.24unexpended balance in the auto theft
76.25prevention account to the general fund.
|Subd. 8.Telecommunications Access
|Sec. 4. PUBLIC UTILITIES COMMISSION
Sec. 5. Minnesota Statutes 2008, section 45.027, subdivision 1, is amended to read:
Subdivision 1. General powers.
In connection with the duties and responsibilities
entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
of commerce may:
(1) make public or private investigations within or without this state as the
commissioner considers necessary to determine whether any person has violated or is
about to violate any law, rule, or order related to the duties and responsibilities entrusted
to the commissioner;
(2) require or permit any person to file a statement in writing, under oath or otherwise
as the commissioner determines, as to all the facts and circumstances concerning the
matter being investigated;
(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
duties and responsibilities entrusted to the commissioner;
(4) conduct investigations and hold hearings for the purpose of compiling
information related to the duties and responsibilities entrusted to the commissioner;
(5) examine the books, accounts, records, and files of every licensee, and of every
person who is engaged in any activity regulated; the commissioner or a designated
representative shall have free access during normal business hours to the offices and
places of business of the person, and to all books, accounts, papers, records, files, safes,
and vaults maintained in the place of business;
(6) publish information which is contained in any order issued by the commissioner;
(7) require any person subject to duties and responsibilities entrusted to the
commissioner, to report all sales or transactions that are regulated. The reports must
be made within ten days after the commissioner has ordered the report. The report is
accessible only to the respondent and other governmental agencies unless otherwise
ordered by a court of competent jurisdiction
77.22(8) assess a licensee the necessary expenses of the investigation performed by the
77.23department when an investigation is made by order of the commissioner. The cost of the
77.24investigation shall be determined by the commissioner and is based on the salary cost
77.25of investigators or assistants and at an average rate per day or fraction thereof so as to
77.26provide for the total cost of the investigations. All money collected must be deposited into
77.27the general fund. A natural person licensed under chapter 60K or 82 shall not be charged
77.28costs of an investigation if the investigation results in no finding of a violation.
Sec. 6. Minnesota Statutes 2008, section 60A.14, subdivision 1, is amended to read:
Subdivision 1. Fees other than examination fees.
In addition to the fees and
charges provided for examinations, the following fees must be paid to the commissioner
for deposit in the general fund:
(a) by township mutual fire insurance companies;
(1) for filing certificate of incorporation $25 and amendments thereto, $10;
(2) for filing annual statements, $15;
(3) for each annual certificate of authority, $15;
(4) for filing bylaws $25 and amendments thereto, $10;
(b) by other domestic and foreign companies including fraternals and reciprocal
(1) for filing an application for an initial certification of authority to be admitted
to transact business in this state, $1,500;
(2) for filing certified copy of certificate of articles of incorporation, $100;
(3) for filing annual statement, $225;
(4) for filing certified copy of amendment to certificate or articles of incorporation,
(5) for filing bylaws, $75 or amendments thereto, $75;
(6) for each company's certificate of authority, $575, annually;
(c) the following general fees apply:
(1) for each certificate, including certified copy of certificate of authority, renewal,
valuation of life policies, corporate condition or qualification, $25;
(2) for each copy of paper on file in the commissioner's office 50 cents per page,
and $2.50 for certifying the same;
(3) for license to procure insurance in unadmitted foreign companies, $575;
(4) for valuing the policies of life insurance companies, one cent per $1,000 of
insurance so valued, provided that the fee shall not exceed $13,000 per year for any
company. The commissioner may, in lieu of a valuation of the policies of any foreign life
insurance company admitted, or applying for admission, to do business in this state, accept
a certificate of valuation from the company's own actuary or from the commissioner of
insurance of the state or territory in which the company is domiciled;
(5) for receiving and filing certificates of policies by the company's actuary, or by
the commissioner of insurance of any other state or territory, $50;
(6) for each appointment of an agent filed with the commissioner, $10;
(7) for filing forms, rates, and compliance certifications under section
per filing, or
per filing when submitted via electronic filing system. Filing
fees may be paid on a quarterly basis in response to an invoice. Billing and payment may
be made electronically;
(8) for annual renewal of surplus lines insurer license, $300.
The commissioner shall adopt rules to define filings that are subject to a fee.
Sec. 7. [116J.438] MINNESOTA GREEN ENTERPRISE ASSISTANCE.
79.1(a) The commissioner of employment and economic development, in consultation
79.2with the commissioner of commerce, shall lead a multiagency project to advise,
79.3promote, market, and coordinate state agency collaboration on green enterprise and
79.4green economy projects, as defined in section 116J.437. The multiagency project must
79.5include the commissioners of employment and economic development, natural resources,
79.6agriculture, transportation, and commerce, and the Pollution Control Agency. The
79.7project must involve collaboration with the chairs and ranking minority members of
79.8legislative committees overseeing energy policy and energy finance, state agencies,
79.9local governments, representatives from business and agriculture, and other interested
79.10stakeholders. The objective of the project is to utilize existing state resources to expedite
79.11the delivery of grants, licenses, permits, and other state authorizations and approvals for
79.12green economy projects. The commissioner shall appoint a lead person to coordinate
79.13green enterprise assistance activities.
79.14(b) The commissioner of employment and economic development shall seek out and
79.15may select persons from the business community to assist the commissioner in project
79.17(c) The commissioner may accept gifts, contributions, and in-kind services for the
79.18purposes of this section, under the authority provided in section 116J.035, subdivision
79.191. Any funds received must be placed in a special revenue account for the purposes of
79.21EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2008, section 216B.62, subdivision 3, is amended to read:
Subd. 3. Assessing all public utilities.
The department and commission shall
quarterly, at least 30 days before the start of each quarter, estimate the total of their
expenditures in the performance of their duties relating to
public utilities under
79.26 216A.085 ,
sections 216A.085 and
, other than amounts chargeable
to public utilities under subdivision 2
and (2) alternative energy engineering
79.28 activity under section
216C.261 or 7
. The remainder
, except the amount assessed
79.29 against cooperatives and municipalities for alternative energy engineering activity under
79.30 subdivision 5,
shall be assessed by the commission and department to the several public
utilities in proportion to their respective gross operating revenues from retail sales of gas
or electric service within the state during the last calendar year. The assessment shall be
paid into the state treasury within 30 days after the bill has been transmitted via mail,
personal delivery, or electronic service to the several public utilities, which shall constitute
notice of the assessment and demand of payment thereof. The total amount which may
be assessed to the public utilities, under authority of this subdivision, shall not exceed
one-sixth of one percent of the total gross operating revenues of the public utilities
during the calendar year from retail sales of gas or electric service within the state. The
assessment for the third quarter of each fiscal year shall be adjusted to compensate for the
amount by which actual expenditures by the commission and department for the preceding
fiscal year were more or less than the estimated expenditures previously assessed.
Sec. 9. Minnesota Statutes 2008, section 216B.62, subdivision 4, is amended to read:
Subd. 4. Objections.
Within 30 days after the date of the transmittal of any bill as
3, or 7,
the public utility against which the bill
has been rendered may file with the commission objections setting out the grounds upon
which it is claimed the bill is excessive, erroneous, unlawful or invalid. The commission
shall within 60 days hold a hearing and issue an order in accordance with its findings. The
order shall be appealable in the same manner as other final orders of the commission.
Sec. 10. Minnesota Statutes 2008, section 216B.62, subdivision 5, is amended to read:
Subd. 5. Assessing cooperatives and municipals.
The commission and department
may charge cooperative electric associations, generation and transmission cooperative
electric associations, municipal power agencies, and municipal electric utilities their
proportionate share of the expenses incurred in the review and disposition of resource
plans, adjudication of service area disputes, proceedings under section
, and the costs incurred in the adjudication of complaints over
service standards, practices, and rates. Cooperative electric associations electing to
become subject to rate regulation by the commission pursuant to section
, are also subject to this section. Neither a cooperative electric association
nor a municipal electric utility is liable for costs and expenses in a calendar year in excess
of the limitation on costs that may be assessed against public utilities under subdivision
2. A cooperative electric association, generation and transmission cooperative electric
association, municipal power agency, or municipal electric utility may object to and appeal
bills of the commission and department as provided in subdivision 4.
The department shall assess cooperatives and municipalities for the costs of
80.30 alternative energy engineering activities under section
216C.261 . Each cooperative and
80.31 municipality shall be assessed in proportion that its gross operating revenues for the sale
80.32 of gas and electric service within the state for the last calendar year bears to the total of
80.33 those revenues for all public utilities, cooperatives, and municipalities.
Sec. 11. Minnesota Statutes 2008, section 216B.62, is amended by adding a subdivision
81.3 Subd. 7. Assessing all utilities. The department shall assess public utilities,
81.4cooperative electric associations, and municipal utilities for the costs of activities under
81.5chapter 216C. The department shall not assess for costs of grants, loans, or other aids or
81.6for costs that can be recovered through other assessment authority. Each public utility,
81.7cooperative, and municipal utility shall be assessed in the proportion that its gross
81.8operating revenue for the sale of gas and electric service within the state for the last
81.9calendar year bears to the total of those revenues for all public utilities, cooperatives,
Sec. 12. BULK INSTALLATION OF SOLAR PHOTOVOLTAIC PANELS ON
81.12SCHOOL BUILDINGS; FEASIBILITY STUDY AND REPORT.
81.13The director of the Office of Energy Security, in consultation with the commissioner
81.14of education, schools, school districts, and solar industry experts, must study the economic
81.15and technical feasibility of bulk installation of solar photovoltaic panels on school
81.16buildings in this state. The study must use a power-purchase agreement model in which
81.17a private company would pay for, install, and own the solar photovoltaic panels. No
81.18later than January 15, 2010, the director of the Office of Energy Security must report
81.19the results of the feasibility study, including whether the proposed model would reduce
81.20carbon emissions and result in savings to school districts, to the chairs and ranking
81.21minority members of the house of representatives and senate committees with jurisdiction
81.22over energy policy and finance.
81.23EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 13. APPROPRIATIONS; CANCELLATIONS.
81.25(a) The remaining balance of the fiscal year 2009 special revenue fund appropriation
81.26for the Green Jobs Task Force under Laws 2008, chapter 363, article 6, section 3,
81.27subdivision 4, is transferred and appropriated to the commissioner of employment and
81.28economic development for the purposes of green enterprise assistance under Minnesota
81.29Statutes, section 116J.438. This appropriation is available until spent.
81.30(b) The unencumbered balance of the fiscal year 2008 appropriation to the
81.31commissioner of commerce for the rural and energy development revolving loan
81.32fund under Laws 2007, chapter 57, article 2, section 3, subdivision 6, is canceled and
81.33reappropriated as follows:
82.1(1) $1,500,000 is for a grant to the Board of Trustees of the Minnesota State Colleges
82.2and Universities for the International Renewable Energy Technology Institute (IRETI) to
82.3be located at Minnesota State University, Mankato, as a public and private partnership to
82.4support applied research in renewable energy and energy efficiency to aid in the transfer of
82.5technology from Sweden to Minnesota and to support technology commercialization from
82.6companies located in Minnesota and throughout the world; and
82.7(2) the remaining balance is for a grant to the Board of Regents of the University of
82.8Minnesota for the initiative for renewable energy and the environment to fund start up
82.9costs related to a national solar testing and certification laboratory to test, rate, and certify
82.10the performance of equipment and devices that utilize solar energy for heating and cooling
82.11air and water and for generating electricity.
82.12This appropriation is available until expended.
82.13EFFECTIVE DATE.This section is effective the day following final enactment.
82.15DEPARTMENT OF COMMERCE; OTHER REGULATORY PROVISIONS
Section 1. Minnesota Statutes 2008, section 47.58, subdivision 1, is amended to read:
Subdivision 1. Definitions.
For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
(a) "Reverse mortgage loan" means a loan:
(1) Made to a borrower wherein the committed principal amount is paid to the
borrower in equal or unequal installments over a period of months or years, interest is
assessed, and authorized closing costs are incurred as specified in the loan agreement;
(2) Which is secured by a mortgage on residential property owned solely by the
(3) Which is due when the committed principal amount has been fully paid to the
borrower, or upon sale of the property securing the loan, or upon the death of the last
surviving borrower, or upon the borrower terminating use of the property as principal
residence so as to disqualify the property from the homestead credit given in chapter 290A.
(b) "Lender" means any bank subject to chapter 48, credit union subject to chapter
52, savings bank organized and operated pursuant to chapter 50, savings association
subject to chapter 51A, any residential mortgage originator subject to chapter 58,
insurance company as defined in section
60A.02, subdivision 4
. "Lender" also includes
any federally chartered bank supervised by the comptroller of the currency or federally
chartered savings association supervised by the Federal Home Loan Bank Board or
federally chartered credit union supervised by the National Credit Union Administration,
to the extent permitted by federal law.
(c) "Borrower" includes any natural person holding an interest in severalty or as joint
tenant or tenant-in-common in the property securing a reverse mortgage loan.
(d) "Outstanding loan balance" means the current net amount of money owed by the
borrower to the lender whether or not that sum is suspended pursuant to the terms of the
reverse mortgage loan agreement or is immediately due and payable. The outstanding
loan balance is calculated by adding the current totals of the items described in clauses (1)
to (5) and subtracting the current totals of the item described in clause (6):
(1) The sum of all payments made by the lender which are necessary to clear the
property securing the loan of any outstanding mortgage encumbrance or mechanics or
material supplier's lien.
(2) The total disbursements made by the lender to date pursuant to the loan
agreement as formulated in accordance with subdivision 3.
(3) All taxes, assessments, insurance premiums and other similar charges paid to
date by the lender pursuant to subdivision 6, which charges were not reimbursed by the
borrower within 60 days.
(4) All actual closing costs which the borrower has deferred, if a deferral provision
is contained in the loan agreement as authorized by subdivision 7.
(5) The total accrued interest to date, as authorized by subdivision 5.
(6) All payments made by the borrower pursuant to subdivision 4.
(e) "Actual closing costs" mean reasonable charges or sums ordinarily paid at the
time of closing for the following, whether or not retained by the lender:
(1) Any insurance premiums on policies covering the mortgaged property including
but not limited to premiums for title insurance, fire and extended coverage insurance, flood
insurance, and private mortgage insurance.
(2) Abstracting, title examination and search, and examination of public records
related to the mortgaged property.
(3) The preparation and recording of any or all documents required by law or custom
for closing a reverse mortgage loan agreement.
(4) Appraisal and survey of real property securing a reverse mortgage loan.
(5) A single service charge, which service charge shall include any consideration,
not otherwise specified in this section as an "actual closing cost," paid by the borrower to
the lender for or in relation to the acquisition, making, refinancing or modification of a
reverse mortgage loan, and shall also include any consideration received by the lender
for making a commitment for a reverse mortgage loan, whether or not an actual loan
follows the commitment. The service charge shall not exceed one percent of the bona fide
committed principal amount of the reverse mortgage loan.
(6) Charges and fees necessary for or related to the transfer of real property securing
a reverse mortgage loan or the closing of a reverse mortgage loan agreement paid by the
borrower and received by any party other than the lender.
Sec. 2. Minnesota Statutes 2008, section 47.60, subdivision 1, is amended to read:
Subdivision 1. Definitions.
For purposes of this section, the terms defined have
the meanings given them:
(a) "Consumer small loan" is a loan transaction in which cash is advanced to a
borrower for the borrower's own personal, family, or household purpose. A consumer
small loan is a short-term, unsecured loan to be repaid in a single installment. The cash
advance of a consumer small loan is equal to or less than $350. A consumer small loan
includes an indebtedness evidenced by but not limited to a promissory note or agreement
to defer the presentation of a personal check for a fee.
(b) "Consumer small loan lender" is a financial institution as defined in section
person business entity
registered with the commissioner and engaged in the
business of making consumer small loans.
Sec. 3. Minnesota Statutes 2008, section 47.60, subdivision 3, is amended to read:
Subd. 3. Filing.
person business entity
other than a financial institution
as defined by section
engages in the business of making consumer small loans to
person business entity
shall file with the commissioner as a
consumer small loan lender. The filing must be on a form prescribed by the commissioner
together with a fee of $250 for each place of business and contain the following
information in addition to the information required by the commissioner:
(1) evidence that the filer has available for the operation of the business at the
location specified, liquid assets of at least $50,000; and
(2) a biographical statement on the principal person responsible for the operation
and management of the business to be certified.
Revocation of the filing
and the right to engage in the business of a consumer small
84.30 loan lender
is the same as in the case of a regulated lender license in section
84.31For purposes of this subdivision, "business entity" includes one that does not have a
84.32physical location in Minnesota that makes a consumer small loan electronically via the
Sec. 4. Minnesota Statutes 2008, section 47.60, subdivision 6, is amended to read:
Subd. 6. Penalties for violation.
person business entity
members, officers, directors, agents, and employees who violate or participate in the
violation of any of the provisions of this section may be liable in the same manner as in
Sec. 5. Minnesota Statutes 2008, section 48.21, is amended to read:
85.748.21 REAL ESTATE; RESTRICTIONS ON HOLDING.
Subdivision 1. Specific restrictions. (a)
A bank may purchase, carry as an asset,
and convey real estate only:
(1) as provided for in section
(2) if acquired through foreclosure of a mortgage given to it in good faith as security
for loans made by or money due to it;
(3) if conveyed to it in satisfaction of debts previously contracted in good faith in
the course of its dealings;
(4) if acquired by sale on execution or judgment of a court in its favor; or
(5) if reasonably necessary to mitigate or avoid loss on a loan or investment
Real estate acquired under paragraph (a),
clauses (2) to (5),
shall be carried as an
asset only in accordance with rules the commissioner prescribes. The maximum period for
85.20holding other real estate as an asset shall be five years, provided that upon application to
85.21the commissioner, the commissioner may approve the possession of such real estate by a
85.22bank for a period longer than five years, but not to exceed an additional five years, if:
85.23(1) the bank has made a good faith attempt to dispose of the real estate within the
85.24initial five-year period; or
85.25(2) disposal within the initial five-year period would be detrimental to the bank.
Subd. 2. Real estate holdings not bank liabilities.
Real estate owned by a bank as
a result of actions authorized in
clauses (2) to (5) of
subdivision 1, paragraph (a), clauses
85.28(2) to (5),
and subsequently sold to any buyer on a contract for deed may not be considered
creating a liability to a bank for purposes of section
Subd. 3. Real estate holdings not sold; authority to write off.
any rules of the commissioner to the contrary, if real estate owned by a bank pursuant to
clauses (2) to (5) of
subdivision 1, paragraph (a), clauses (2) to (5),
is not sold or otherwise
disposed of within the maximum period
established by rule by the commissioner
bank may write off any remaining balance at a rate not less than one-fifth of that balance
each subsequent calendar year.
Sec. 6. Minnesota Statutes 2008, section 58.05, subdivision 3, is amended to read:
Subd. 3. Certificate of exemption.
A person must obtain a certificate of exemption
from the commissioner to qualify as an exempt person under section
58.04, subdivision 1
paragraph (c), a financial institution under clause (2), or by order of the commissioner
under clause (6); or under section
58.04, subdivision 2
, paragraph (b), as a financial
institution under clause
, or by order of the commissioner under clause
Sec. 7. Minnesota Statutes 2008, section 58.06, subdivision 2, is amended to read:
Subd. 2. Application contents.
(a) The application must contain the name and
complete business address or addresses of the license applicant. The license applicant
must be a partnership, limited liability partnership, association, limited liability company,
corporation, or other form of business organization, and the application must contain the
names and complete business addresses of each partner, member, director, and principal
officer. The application must also include a description of the activities of the license
applicant, in the detail and for the periods the commissioner may require.
An A residential mortgage originator
applicant must submit one of the following:
(1) evidence which shows, to the commissioner's satisfaction, that either the federal
Department of Housing and Urban Development or the Federal National Mortgage
Association has approved the residential mortgage originator
applicant as a mortgagee;
(2) a surety bond or irrevocable letter of credit in the amount of not less than
$50,000 in a form approved by the commissioner, issued by an insurance company or bank
authorized to do so in this state. The bond or irrevocable letter of credit must be available
for the recovery of expenses, fines, and fees levied by the commissioner under this chapter
and for losses incurred by borrowers. The bond or letter of credit must be submitted with
the license application, and evidence of continued coverage must be submitted with each
renewal. Any change in the bond or letter of credit must be submitted for approval by the
commissioner within ten days of its execution; or
(3) a copy of the residential mortgage originator
applicant's most recent audited
financial statement, including balance sheet, statement of income or loss, statements of
changes in shareholder equity, and statement of changes in financial position. Financial
statements must be as of a date within 12 months of the date of application.
(c) The application must also include all of the following:
(1) an affirmation under oath that the applicant:
(i) is in compliance with the requirements of section
(ii) will maintain a perpetual roster of individuals employed as residential mortgage
originators, including employees and independent contractors, which includes the
that mandatory testing,
was, and continuing education were
completed. In addition, the roster must be made available to the commissioner on demand,
within three business days of the commissioner's request;
(iii) will advise the commissioner of any material changes to the information
submitted in the most recent application within ten days of the change;
(iv) will advise the commissioner in writing immediately of any bankruptcy petitions
filed against or by the applicant or licensee;
(v) will maintain at all times either a net worth, net of intangibles, of at least
$250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000;
(vi) complies with federal and state tax laws; and
(vii) complies with sections
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(2) information as to the mortgage lending, servicing, or brokering experience of the
applicant and persons in control of the applicant;
(3) information as to criminal convictions, excluding traffic violations, of persons in
control of the license applicant;
(4) whether a court of competent jurisdiction has found that the applicant or persons
in control of the applicant have engaged in conduct evidencing gross negligence, fraud,
misrepresentation, or deceit in performing an act for which a license is required under
(5) whether the applicant or persons in control of the applicant have been the subject
of: an order of suspension or revocation, cease and desist order, or injunctive order, or
order barring involvement in an industry or profession issued by this or another state or
federal regulatory agency or by the Secretary of Housing and Urban Development within
the ten-year period immediately preceding submission of the application; and
(6) other information required by the commissioner.
Sec. 8. Minnesota Statutes 2008, section 58.126, is amended to read:
87.3158.126 EDUCATION AND TESTING REQUIREMENT.
No individual shall engage in residential mortgage origination or make residential
mortgage loans, whether as an employee or independent contractor, before the completion
hours of educational training which has been approved by the commissioner, and
covering state and federal laws concerning residential mortgage lending.
88.1(b) In addition to the initial education requirements in paragraph (a), each individual
88.2must also complete eight hours of continuing education annually. The education must
88.4(1) three hours of federal law and regulations;
88.5(2) two hours of ethics, which must include fraud, consumer protection, and fair
88.7(3) two hours of standards governing nontraditional mortgage lending.
88.8(c) The commissioner may by rule establish testing requirements for individuals
88.9subject to the requirements of paragraphs (a) and (b). An individual must satisfy the
88.10testing requirements established by the commissioner before engaging in residential
88.11mortgage loan origination or making residential mortgage loans.
88.12EFFECTIVE DATE.This section is effective September 1, 2009, and applies to
88.13license applications and renewals made on or after that date.
Sec. 9. Minnesota Statutes 2008, section 58.13, subdivision 1, is amended to read:
Subdivision 1. Generally.
(a) No person acting as a residential mortgage originator
or servicer, including a person required to be licensed under this chapter, and no person
exempt from the licensing requirements of this chapter under section
, except as
otherwise provided in paragraph (b), shall:
(1) fail to maintain a trust account to hold trust funds received in connection with a
residential mortgage loan;
(2) fail to deposit all trust funds into a trust account within three business days of
receipt; commingle trust funds with funds belonging to the licensee or exempt person; or
use trust account funds for any purpose other than that for which they are received;
(3) unreasonably delay the processing of a residential mortgage loan application,
or the closing of a residential mortgage loan. For purposes of this clause, evidence of
unreasonable delay includes but is not limited to those factors identified in section
, clause (d);
(4) fail to disburse funds according to its contractual or statutory obligations;
(5) fail to perform in conformance with its written agreements with borrowers,
investors, other licensees, or exempt persons;
(6) charge a fee for a product or service where the product or service is not actually
provided, or misrepresent the amount charged by or paid to a third party for a product
(7) fail to comply with sections
, the Minnesota unclaimed property
(8) violate any provision of any other applicable state or federal law regulating
residential mortgage loans including, without limitation, sections
(9) make or cause to be made, directly or indirectly, any false, deceptive, or
misleading statement or representation in connection with a residential loan transaction
including, without limitation, a false, deceptive, or misleading statement or representation
regarding the borrower's ability to qualify for any mortgage product;
(10) conduct residential mortgage loan business under any name other than that
under which the license or certificate of exemption was issued;
(11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for
the purpose of influencing the independent judgment of the appraiser with respect to the
value of real estate that is to be covered by a residential mortgage or is being offered as
security according to an application for a residential mortgage loan;
(12) issue any document indicating conditional qualification or conditional approval
for a residential mortgage loan, unless the document also clearly indicates that final
qualification or approval is not guaranteed, and may be subject to additional review;
(13) make or assist in making any residential mortgage loan with the intent that the
loan will not be repaid and that the residential mortgage originator will obtain title to
the property through foreclosure;
(14) provide or offer to provide for a borrower, any brokering or lending services
under an arrangement with a person other than a licensee or exempt person, provided that
a person may rely upon a written representation by the residential mortgage originator that
it is in compliance with the licensing requirements of this chapter;
(15) claim to represent a licensee or exempt person, unless the person is an employee
of the licensee or exempt person or unless the person has entered into a written agency
agreement with the licensee or exempt person;
(16) fail to comply with the record keeping and notification requirements identified
or fail to abide by the affirmations made on the application for licensure;
(17) represent that the licensee or exempt person is acting as the borrower's agent
after providing the nonagency disclosure required by section
, unless the disclosure
is retracted and the licensee or exempt person complies with all of the requirements of
(18) make, provide, or arrange for a residential mortgage loan that is of a lower
investment grade if the borrower's credit score or, if the originator does not utilize credit
scoring or if a credit score is unavailable, then comparable underwriting data, indicates
that the borrower may qualify for a residential mortgage loan, available from or through
the originator, that is of a higher investment grade, unless the borrower is informed that
the borrower may qualify for a higher investment grade loan with a lower interest rate
and/or lower discount points, and consents in writing to receipt of the lower investment
For purposes of this section, "investment grade" refers to a system of categorizing
residential mortgage loans in which the loans are: (i) commonly referred to as "prime" or
"subprime"; (ii) commonly designated by an alphabetical character with "A" being the
highest investment grade; and (iii) are distinguished by interest rate or discount points
or both charged to the borrower, which vary according to the degree of perceived risk
of default based on factors such as the borrower's credit, including credit score and
credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior
bankruptcy or foreclosure;
(19) make, publish, disseminate, circulate, place before the public, or cause to be
made, directly or indirectly, any advertisement or marketing materials of any type, or any
statement or representation relating to the business of residential mortgage loans that is
false, deceptive, or misleading;
(20) advertise loan types or terms that are not available from or through the licensee
or exempt person on the date advertised, or on the date specified in the advertisement.
For purposes of this clause, advertisement includes, but is not limited to, a list of sample
mortgage terms, including interest rates, discount points, and closing costs provided by
licensees or exempt persons to a print or electronic medium that presents the information
to the public;
(21) use or employ phrases, pictures, return addresses, geographic designations, or
other means that create the impression, directly or indirectly, that a licensee or other
person is a governmental agency, or is associated with, sponsored by, or in any manner
connected to, related to, or endorsed by a governmental agency, if that is not the case;
(22) violate section
, relating to table funding;
(23) make, provide, or arrange for a residential mortgage loan all or a portion
of the proceeds of which are used to fully or partially pay off a "special mortgage"
unless the borrower has obtained a written certification from an authorized independent
loan counselor that the borrower has received counseling on the advisability of the
loan transaction. For purposes of this section, "special mortgage" means a residential
mortgage loan originated, subsidized, or guaranteed by or through a state, tribal, or
local government, or nonprofit organization, that bears one or more of the following
nonstandard payment terms which substantially benefit the borrower: (i) payments vary
with income; (ii) payments of principal or interest are not required or can be deferred under
specified conditions; (iii) principal or interest is forgivable under specified conditions;
or (iv) where no interest or an annual interest rate of two percent or less is charged in
connection with the loan. For purposes of this section, "authorized independent loan
counselor" means a nonprofit, third-party individual or organization providing homebuyer
education programs, foreclosure prevention services, mortgage loan counseling, or credit
counseling certified by the United States Department of Housing and Urban Development,
the Minnesota Home Ownership Center, the Minnesota Mortgage Foreclosure Prevention
Association, AARP, or NeighborWorks America;
(24) make, provide, or arrange for a residential mortgage loan without verifying
the borrower's reasonable ability to pay the scheduled payments of the following, as
applicable: principal; interest; real estate taxes; homeowner's insurance, assessments,
and mortgage insurance premiums. For loans in which the interest rate may vary, the
reasonable ability to pay shall be determined based on a fully indexed rate and a repayment
schedule which achieves full amortization over the life of the loan. For all residential
mortgage loans, the borrower's income and financial resources must be verified by tax
returns, payroll receipts, bank records, or other similarly reliable documents.
Nothing in this section shall be construed to limit a mortgage originator's or exempt
person's ability to rely on criteria other than the borrower's income and financial resources
to establish the borrower's reasonable ability to repay the residential mortgage loan,
including criteria established by the United States Department of Veterans Affairs or the
United States Department of Housing and Urban Development for interest rate reduction
refinancing loans or streamline loans, or criteria authorized or promulgated by the
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation;
however, such other criteria must be verified through reasonably reliable methods and
documentation. The mortgage originator's analysis of the borrower's reasonable ability
to repay may include, but is not limited to, consideration of the following items, if
verified: (1) the borrower's current and expected income; (2) current and expected cash
flow; (3) net worth and other financial resources other than the consumer's equity in the
dwelling that secures the loan; (4) current financial obligations; (5) property taxes and
insurance; (6) assessments on the property; (7) employment status; (8) credit history; (9)
debt-to-income ratio; (10) credit scores; (11) tax returns; (12) pension statements; and
(13) employment payment records, provided that no mortgage originator shall disregard
facts and circumstances that indicate that the financial or other information submitted by
the consumer is inaccurate or incomplete. A statement by the borrower to the residential
mortgage originator or exempt person of the borrower's income and resources or sole
reliance on any single item listed above is not sufficient to establish the existence of the
income or resources when verifying the reasonable ability to pay.
(25) engage in "churning." As used in this section, "churning" means knowingly or
intentionally making, providing, or arranging for a residential mortgage loan when the
new residential mortgage loan does not provide a reasonable, tangible net benefit to the
borrower considering all of the circumstances including the terms of both the new and
refinanced loans, the cost of the new loan, and the borrower's circumstances;
(26) the first time a residential mortgage originator orally informs a borrower of the
anticipated or actual periodic payment amount for a first-lien residential mortgage loan
which does not include an amount for payment of property taxes and hazard insurance,
the residential mortgage originator must inform the borrower that an additional amount
will be due for taxes and insurance and, if known, disclose to the borrower the amount of
the anticipated or actual periodic payments for property taxes and hazard insurance. This
same oral disclosure must be made each time the residential mortgage originator orally
informs the borrower of a different anticipated or actual periodic payment amount change
from the amount previously disclosed. A residential mortgage originator need not make
this disclosure concerning a refinancing loan if the residential mortgage originator knows
that the borrower's existing loan that is anticipated to be refinanced does not have an
escrow account; or
(27) make, provide, or arrange for a residential mortgage loan, other than a reverse
mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance
with any repayment option offered pursuant to the terms of the loan will result in negative
amortization during any six-month period.
(b) Paragraph (a), clauses (24) through (27), do not apply to a state or federally
chartered bank, savings bank, or credit union, an institution chartered by Congress under
the Farm Credit Act, or to a person making, providing, or arranging a residential mortgage
loan originated or purchased by a state agency or a tribal or local unit of government. This
paragraph supersedes any inconsistent provision of this chapter.
Sec. 10. Minnesota Statutes 2008, section 60A.124, is amended to read:
92.3060A.124 INDEPENDENT AUDIT.
The audit report of the independent certified public accountant that performs the
audit of an insurer's annual statement as required under section
should contain a statement as to whether anything, in
connection with their audit, came to their attention that caused them to believe that the
insurer failed to adopt and consistently apply the valuation procedure as required by
Sec. 11. [60A.1291] ANNUAL AUDIT.
93.4 Subdivision 1. Definitions. The definitions in this subdivision apply to this section.
93.5(a) "Accountant" and "independent public accountant" mean an independent certified
93.6public accountant or accounting firm in good standing with the American Institute of
93.7Certified Public Accountants and in all states in which the accountant or firm is licensed
93.8or is required to be licensed to practice. For Canadian and British companies, the term
93.9means a Canadian-chartered or British-chartered accountant.
93.10(b) "Audit committee" means a committee or equivalent body established by the
93.11board of directors of an entity for the purpose of overseeing the accounting and financial
93.12reporting processes of an insurer or group of insurers, and audits of financial statements of
93.13the insurer or group of insurers. The audit committee of any entity that controls a group of
93.14insurers may be deemed to be the audit committee for one or more of these controlled
93.15insurers solely for the purposes of this section at the election of the controlling person
93.16under subdivision 15, paragraph (e). If an audit committee is not designated by the insurer,
93.17the insurer's entire board of directors constitutes the audit committee.
93.18(c) "Indemnification" means an agreement of indemnity or a release from liability
93.19where the intent or effect is to shift or limit in any manner the potential liability of the
93.20person or firm for failure to adhere to applicable auditing or professional standards,
93.21whether or not resulting in part from knowing of other misrepresentations made by the
93.22insurer or its representatives.
93.23(d) "Independent board member" has the same meaning as described in subdivision
93.2415, paragraph (c).
93.25(e) "Internal control over financial reporting" means a process effected by an entity's
93.26board of directors, management, and other personnel designed to provide reasonable
93.27assurance regarding the reliability of the financial statements, for example, those items
93.28specified in subdivision 4, paragraphs (a), clauses (2) to (6), (b), and (c), and includes
93.29those policies and procedures that:
93.30(1) pertain to the maintenance of records that, in reasonable detail, accurately and
93.31fairly reflect the transactions and dispositions of assets;
93.32(2) provide reasonable assurance that transactions are recorded as necessary to permit
93.33preparation of the financial statements, for example, those items specified in subdivision 4,
93.34paragraphs (a), clauses (2) to (6), (b), and (c), and that receipts and expenditures are being
93.35made only in accordance with authorizations of management and directors; and
94.1(3) provide reasonable assurance regarding prevention or timely detection of
94.2unauthorized acquisition, use, or disposition of assets that could have a material effect on
94.3the financial statements, for example, those items specified in subdivision 4, paragraphs
94.4(a), clauses (2) to (6), (b), and (c).
94.5(f) "SEC" means the United States Securities and Exchange Commission.
94.6(g) "Section 404" means Section 404 of the Sarbanes-Oxley Act of 2002 and the
94.7SEC's rules and regulations promulgated under it.
94.8(h) "Section 404 report" means management's report on "internal control over
94.9financial reporting" as defined by the SEC and the related attestation report of the
94.10independent certified public accountant as described in paragraph (a).
94.11(i) "SOX compliant entity" means an entity that either is required to be
94.12compliant with, or voluntarily is compliant with, all of the following provisions of the
94.13Sarbanes-Oxley Act of 2002: (i) the preapproval requirements of Section 201 (section
94.1410A(i) of the Securities Exchange Act of 1934); (ii) the audit committee independence
94.15requirements of Section 301 (section 10A(m)(3) of the Securities Exchange Act of 1934);
94.16and (iii) the internal control over financial reporting requirements of Section 404 (Item
94.17308 of SEC Regulation S-K).
94.18 Subd. 2. Filing requirements. Every insurance company doing business in this
94.19state, including fraternal benefit societies, reciprocal exchanges, service plan corporations
94.20licensed pursuant to chapter 62C, and legal service plans licensed pursuant to chapter
94.2162G, unless exempted by the commissioner pursuant to subdivision 9, paragraph (a), or by
94.22subdivision 18, shall have an annual audit of the financial activities of the most recently
94.23completed calendar year performed by an independent certified public accountant, and
94.24shall file the report of this audit with the commissioner on or before June 1 for the
94.25immediately preceding year ending December 31. The commissioner may require an
94.26insurer to file an audited financial report earlier than June 1 with 90 days' advance notice
94.27to the insurer.
94.28Extensions of the June 1 filing date may be granted by the commissioner for 30-day
94.29periods upon a showing by the insurer and its independent certified public accountant of
94.30the reasons for requesting the extension and a determination by the commissioner of good
94.31cause for the extension.
94.32The request for extension must be submitted in writing not less than ten days before
94.33the due date in sufficient detail to permit the commissioner to make an informed decision
94.34with respect to the requested extension.
95.1If an extension is granted in accordance with this subdivision, a similar extension of
95.230 days is granted to the filing of management's report of internal control over financial
95.4Every insurer required to file an annual audited financial report pursuant to this
95.5subdivision shall designate a group of individuals as constituting its audit committee. The
95.6audit committee of an entity that controls an insurer may be deemed to be the insurer's
95.7audit committee for purposes of this subdivision at the election of the controlling person.
95.8 Subd. 3. Exemptions. Foreign and alien insurers filing audited financial reports
95.9in another state under the other state's requirements of audited financial reports which
95.10have been found by the commissioner to be substantially similar to these requirements
95.11are exempt from this section if a copy of the audited financial report, communication of
95.12internal control related matters noted in an audit, accountant's letter of qualifications, and
95.13report on significant deficiencies in internal controls, which are filed with the other state,
95.14are filed with the commissioner in accordance with the filing dates specified in subdivision
95.152 (Canadian insurers may submit accountants' reports as filed with the Canadian Dominion
95.16Department of Insurance); and a copy of any notification of adverse financial condition
95.17report filed with the other state is filed with the commissioner within the time specified
95.18in subdivision 11. Foreign or alien insurers required to file management's report of
95.19internal control over financial reporting in another state are exempt from filing the report
95.20in this state provided the other state has substantially similar reporting requirements and
95.21the report is filed with the commissioner of the other state within the time specified.
95.22This subdivision does not prohibit or in any way limit the commissioner from ordering,
95.23conducting, and performing examinations of insurers under the authority of this chapter.
95.24 Subd. 4. Contents of annual audit; financial report. (a) The annual audited
95.25financial report must report, in conformity with statutory accounting practices required
95.26or permitted by the commissioner of insurance of the state of domicile, the financial
95.27position of the insurer as of the end of the most recent calendar year and the results of
95.28its operations, cash flows, and changes in capital and surplus for the year ended. The
95.29annual audited financial report must include:
95.30(1) a report of an independent certified public accountant;
95.31(2) a balance sheet reporting admitted assets, liabilities, capital, and surplus;
95.32(3) a statement of operations;
95.33(4) a statement of cash flows;
95.34(5) a statement of changes in capital and surplus; and
95.35(6) notes to the financial statements.
96.1(b) The notes required under paragraph (a) are those required by the appropriate
96.2National Association of Insurance Commissioners (NAIC) annual statement instructions
96.3and National Association of Insurance Commissioners Accounting Practices and
96.4Procedures Manual and include reconciliation of differences, if any, between the audited
96.5statutory financial statements and the annual statement filed under section 60A.13,
96.6subdivision 1, with a written description of the nature of these differences.
96.7(c) The financial statements included in the audited financial report must be prepared
96.8in a form and using language and groupings substantially the same as the relevant sections
96.9of the annual statement of the insurer filed with the commissioner. The financial statement
96.10must be comparative, presenting the amounts as of December 31 of the current year and
96.11the amounts as of the immediately preceding December 31. In the first year in which
96.12an insurer is required to file an audited financial report, the comparative data may be
96.13omitted. The amounts may be rounded to the nearest $1,000, and all immaterial amounts
96.14may be combined.
96.15 Subd. 5. Designation of independent certified public accountant. Each insurer
96.16required by this section to file an annual audited financial report must notify the
96.17commissioner in writing of the name and address of the independent certified public
96.18accountant or accounting firm retained to conduct the annual audit within 60 days after
96.19becoming subject to the annual audit requirement. The insurer shall obtain from the
96.20accountant a letter which states that the accountant is aware of the provisions that relate
96.21to accounting and financial matters in the insurance laws and the rules of the insurance
96.22regulatory authority of the state of domicile. The letter shall affirm that the accountant will
96.23express an opinion on the financial statements in terms of their conformity to the statutory
96.24accounting practices prescribed or otherwise permitted by that insurance regulatory
96.25authority, specifying the exceptions believed to be appropriate. A copy of the accountant's
96.26letter shall be filed with the commissioner.
96.27 Subd. 6. Report of disagreements. If an accountant who was the accountant for
96.28the immediately preceding filed audited financial report is dismissed or resigns, the
96.29insurer shall notify the commissioner of this event within five business days. Within
96.30ten business days of this notification, the insurer shall also furnish the commissioner
96.31with a separate letter stating whether in the 24 months preceding this event there were
96.32any disagreements with the former accountant on any matter of accounting principles or
96.33practices, financial statement disclosure, or auditing scope or procedure, which, if not
96.34resolved to the satisfaction of the former accountant, would have caused that person to
96.35make reference to the subject matter of the disagreement in connection with the opinion
96.36on the financial statements. The disagreements required to be reported in response to this
97.1subdivision include both those resolved to the former accountant's satisfaction and those
97.2not resolved to the former accountant's satisfaction. Disagreements contemplated by this
97.3subdivision are those disagreements between personnel of the insurer responsible for
97.4presentation of its financial statements and personnel of the accounting firm responsible
97.5for rendering its report. The insurer shall also in writing request the former accountant
97.6to furnish a letter addressed to the insurer stating whether the accountant agrees with
97.7the statements contained in the insurer's letter and, if not, stating the reasons for any
97.8disagreement. The insurer shall furnish this responsive letter from the former accountant
97.9to the commissioner together with its own.
97.10 Subd. 7. Qualifications of independent certified public accountant. (a) The
97.11commissioner shall not recognize any person or firm as a qualified independent certified
97.12public accountant that is not in good standing with the American Institute of Certified
97.13Public Accountants and in all states in which the accountant is licensed or is required
97.14to be licensed to practice, or for a Canadian or British company, that is not a chartered
97.15accountant, or that has either directly or indirectly entered into an agreement of indemnity
97.16or release from liability (collectively referred to as an indemnification agreement) with
97.17respect to the audit of the insurer. Except as otherwise provided, an independent certified
97.18public accountant must be recognized as qualified as long as the person conforms to the
97.19standards of the person's profession, as contained in the Code of Professional Conduct
97.20of the American Institute of Certified Public Accountants and the Code of Professional
97.21Conduct of the Minnesota Board of Public Accountancy or similar code and the person is
97.22properly licensed in good standing with all required state boards of accountancy.
97.23(b) The lead or coordinating audit partner, having primary responsibility for the
97.24audit, may not act in that capacity for more than five consecutive years. The person shall
97.25be disqualified from acting in that or a similar capacity for the same company or its
97.26insurance subsidiaries or affiliates for a period of five consecutive years. An insurer may
97.27make application to the commissioner for relief from this rotation requirement on the
97.28basis of unusual circumstances. This application must be made at least 30 days before
97.29the end of the calendar year. The commissioner may consider the following factors in
97.30determining if the relief should be granted:
97.31(1) number of partners, expertise of the partners, or the number of insurance clients
97.32in the currently registered firm;
97.33(2) premium volume of the insurer; or
97.34(3) number of jurisdictions in which the insurer transacts business.
97.35The insurer shall file, with its annual statement filing, the approval for relief from this
97.36paragraph with the states that it is licensed in or doing business in and with the NAIC. If
98.1the nondomestic state accepts electronic filing with the NAIC, the insurer shall file the
98.2approval in an electronic format acceptable to the NAIC.
98.3(c) The commissioner shall not recognize as a qualified independent certified public
98.4accountant, nor accept an annual audited financial report, prepared in whole or in part by
98.5an accountant who provides to an insurer, contemporaneously with the audit, the following
98.7(1) bookkeeping or other services related to the accounting records or financial
98.8statements of the insurer;
98.9(2) financial information systems design and implementation;
98.10(3) appraisal or valuation services, fairness opinions, or contribution in-kind reports;
98.11(4) actuarially oriented advisory services involving the determination of amounts
98.12recorded in the financial statements. The accountant may assist an insurer in understanding
98.13the methods, assumptions, and inputs used in the determination of amounts recorded in the
98.14financial statement only if it is reasonable to conclude that the services provided will not
98.15be subject to audit procedures during an audit of the insurer's financial statements. An
98.16accountant's actuary may also issue an actuarial opinion or certification on an insurer's
98.17reserves if the following conditions have been met:
98.18(i) neither the accountant nor the accountant's actuary has performed any
98.19management functions or made any management decisions;
98.20(ii) the insurer has competent personnel, or engages a third-party actuary, to estimate
98.21the loss reserves for which management takes responsibility; and
98.22(iii) the accountant's actuary tests the reasonableness of the reserves after the
98.23insurer's management has determined the amount of the loss reserves;
98.24(5) internal audit outsourcing services;
98.25(6) management functions or human resources;
98.26(7) broker or dealer, investment adviser, or investment banking services;
98.27(8) legal services or expert services unrelated to the audit; and
98.28(9) any other services that the commissioner determines, by rule, are impermissible.
98.29(d) The commissioner shall not recognize as a qualified independent certified public
98.30accountant, nor accept any audited financial report, prepared in whole or in part by any
98.31natural person who has been convicted of fraud, bribery, a violation of the Racketeer
98.32Influenced and Corrupt Organizations Act, United States Code, title 18, sections 1961 to
98.331968, or any dishonest conduct or practices under federal or state law, has been found to
98.34have violated the insurance laws of this state with respect to any previous reports submitted
98.35under this section, or has demonstrated a pattern or practice of failing to detect or disclose
98.36material information in previous reports filed under the provisions of this section.
99.1(e) The commissioner, after notice and hearing under chapter 14, may find that
99.2the accountant is not qualified for purposes of expressing an opinion on the financial
99.3statements in the annual audited financial report. The commissioner may require the
99.4insurer to replace the accountant with another whose relationship with the insurer is
99.5qualified within the meaning of this section.
99.6 Subd. 8. Exemptions to qualifications of certified public accountant. (a) Insurers
99.7having direct written and assumed premiums of less than $100,000,000 in any calendar
99.8year may request an exemption from subdivision 7, paragraph (c). The insurer shall
99.9file with the commissioner a written statement discussing the reasons why the insurer
99.10should be exempt from these provisions. If the commissioner finds, upon review of this
99.11statement, that compliance with this section would constitute a financial or organizational
99.12hardship upon the insurer, an exemption may be granted.
99.13(b) A qualified independent certified public accountant who performs the audit
99.14may engage in other nonaudit services, including tax services, that are not described in
99.15subdivision 7, paragraph (c), only if the activity is approved in advance by the audit
99.16committee, in accordance with paragraph (c).
99.17(c) All auditing services and nonaudit services provided to an insurer by the qualified
99.18independent certified public accountant of the insurer must be preapproved by the audit
99.19committee. The preapproval requirement is waived with respect to nonaudit services if
99.20the insurer is a SOX compliant entity or a direct or indirect wholly owned subsidiary of a
99.21SOX compliant entity or:
99.22(1) the aggregate amount of all such nonaudit services provided to the insurer
99.23constitutes not more than five percent of the total amount of fees paid by the insurer to
99.24its qualified independent certified public accountant during the fiscal year in which the
99.25nonaudit services are provided;
99.26(2) the services were not recognized by the insurer at the time of the engagement to
99.27be nonaudit services; and
99.28(3) the services are promptly brought to the attention of the audit committee and
99.29approved before the completion of the audit by the audit committee or by one or more
99.30members of the audit committee who are the members of the board of directors to whom
99.31authority to grant such approvals has been delegated by the audit committee.
99.32(d) The audit committee may delegate to one or more designated members of the
99.33audit committee the authority to grant the preapprovals required by paragraph (c). The
99.34decisions of any member to whom this authority is delegated must be presented to the full
99.35audit committee at each of its scheduled meetings.
100.1(e) The commissioner shall not recognize an independent certified public accountant
100.2as qualified for a particular insurer if a member of the board, president, chief executive
100.3officer, controller, chief financial officer, chief accounting officer, or any person serving in
100.4an equivalent position for that insurer, was employed by the independent certified public
100.5accountant and participated in the audit of that insurer during the one-year period preceding
100.6the date that the most current statutory opinion is due. This paragraph applies only to
100.7partners and senior managers involved in the audit. An insurer may make application to
100.8the commissioner for relief from this paragraph on the basis of unusual circumstances.
100.9(f) The insurer shall file, with its annual statement filing, the approval for relief with
100.10the states that it is licensed in or doing business in and the NAIC. If the nondomestic state
100.11accepts electronic filing with the NAIC, the insurer shall file the approval in an electronic
100.12format acceptable to the NAIC.
100.13 Subd. 9. Consolidated or combined audits. (a) The commissioner may allow
100.14an insurer to file consolidated or combined audited financial statements required by
100.15subdivision 2, in lieu of separate annual audited financial statements, where it can be
100.16demonstrated that an insurer is part of a group of insurance companies that has a pooling
100.17or 100 percent reinsurance agreement which substantially affects the solvency and
100.18integrity of the reserves of the insurer and the insurer cedes all of its direct and assumed
100.19business to the pool. An affiliated insurance company not meeting these requirements may
100.20be included in the consolidated or combined audited financial statements, if the company's
100.21total admitted assets are less than five percent of the consolidated group's total admitted
100.22assets. If these circumstances exist, then the company may file a written application to
100.23file consolidated or combined audited financial statements. This application must be for
100.24a specified period.
100.25(b) Upon written application by a domestic insurer, the commissioner may
100.26authorize the domestic insurer to include additional affiliated insurance companies in the
100.27consolidated or combined audited financial statements. A foreign insurer must obtain the
100.28prior written authorization of the commissioner of its state of domicile in order to submit
100.29an application for authority to file consolidated or combined audited financial statements.
100.30This application must be for a specified period.
100.31(c) A consolidated annual audit filing must include a columnar consolidated or
100.32combining worksheet. Amounts shown on the audited consolidated or combined financial
100.33statement must be shown on the worksheet. Amounts for each insurer must be stated
100.34separately. Noninsurance operations may be shown on the worksheet on a combined or
100.35individual basis. Explanations of consolidating or eliminating entries must be shown on
100.36the worksheet. A reconciliation of any differences between the amounts shown in the
101.1individual insurer columns of the worksheet and comparable amounts shown on the annual
101.2statement of the insurers must be included on the worksheet.
101.3 Subd. 10. Scope of audit and report of independent certified public accountant.
101.4Financial statements furnished pursuant to subdivision 4 must be examined by an
101.5independent certified public accountant. The audit of the insurer's financial statements
101.6must be conducted in accordance with generally accepted auditing standards. In
101.7accordance with AICPA Statement on Auditing Standards (SAS) No. 109, Understanding
101.8the Entity and its Environment and Assessing the Risks of Material Misstatement, or its
101.9replacement, the independent certified public accountant should obtain an understanding
101.10of internal control sufficient to plan the audit. To the extent required by SAS No. 109,
101.11for those insurers required to file a management's report of internal control over financial
101.12reporting pursuant to subdivision 17, the independent certified public accountant should
101.13consider (as that term is defined in SAS No. 102, Defining Professional Requirements in
101.14Statements on Auditing Standards or its replacement) the most recently available report in
101.15planning and performing the audit of the statutory financial statements. Consideration
101.16should be given to other procedures illustrated in the Financial Condition Examiners
101.17Handbook promulgated by the National Association of Insurance Commissioners as the
101.18independent certified public accountant deems necessary.
101.19 Subd. 11. Notification of adverse financial condition. The insurer required to
101.20furnish the annual audited financial report shall require the independent certified public
101.21accountant to provide written notice within five business days to the board of directors of
101.22the insurer or its audit committee of any determination by that independent certified public
101.23accountant that the insurer has materially misstated its financial condition as reported to
101.24the commissioner as of the balance sheet date currently under audit or that the insurer does
101.25not meet the minimum capital and surplus requirement of sections
101.2666A.33 as of that date. An insurer required to file an annual audited financial report who
101.27received a notification of adverse financial condition from the accountant shall file a
101.28copy of the notification with the commissioner within five business days of the receipt
101.29of the notification. The insurer shall provide the independent certified public accountant
101.30making the notification with evidence of the report being furnished to the commissioner.
101.31If the independent certified public accountant fails to receive the evidence within the
101.32required five-day period, the independent certified public accountant shall furnish to the
101.33commissioner a copy of the notification to the board of directors or its audit committee
101.34within the next five business days. No independent certified public accountant is liable in
101.35any manner to any person for any statement made in connection with this subdivision if
101.36the statement is made in good faith in compliance with this subdivision. If the accountant
102.1becomes aware of facts which might have affected the audited financial report after
102.2the date it was filed, the accountant shall take the action prescribed by AU section
102.3561, Subsequent Discovery of Facts Existing at the Date of the Auditor's Report of the
102.4Professional Standards issued by the American Institute of Certified Public Accountants,
102.5or its replacement.
102.6 Subd. 12. Communication of internal control related matters noted in an
102.7audit. In addition to the annual audited financial report, each insurer shall furnish the
102.8commissioner with a written communication as to any unremediated material weaknesses
102.9in its internal control over financial reporting noted during the audit. The communication
102.10must be prepared by the accountant within 60 days after the filing of the annual audited
102.11financial report, and must contain a description of any unremediated material weakness, as
102.12the term material weakness is defined by SAS No. 115, Communicating Internal Control
102.13Related Matters Identified in an Audit, or its replacement, as of December 31 immediately
102.14preceding so as to coincide with the audited financial report discussed in subdivision 2 in
102.15the insurer's internal control over financial reporting noted by the accountant during the
102.16course of their audit of the financial statements. If no unremediated material weaknesses
102.17were noted, the communication should so state.
102.18The insurer is required to provide a description of remedial actions taken or
102.19proposed to correct unremediated material weaknesses, if the actions are not described in
102.20the accountant's communication.
102.21 Subd. 13. Accountant's letter of qualification. The accountant shall furnish the
102.22insurer in connection with, and for inclusion in, the filing of the annual audited financial
102.23report, a letter stating that the accountant is independent with respect to the insurer and
102.24conforms to the standards of the accountant's profession as contained in the Code of
102.25Professional Conduct of the American Institute of Certified Public Accountants and the
102.26Code of Professional Conduct of the Minnesota Board of Accountancy or similar code;
102.27the background and experience in general, and the experience in audits of insurers of the
102.28staff assigned to the engagement and whether each is an independent certified public
102.29accountant; that the accountant understands that the annual audited financial report and the
102.30opinion on it will be filed in compliance with this statute and that the commissioner will
102.31be relying on this information in the monitoring and regulation of the financial position of
102.32insurers; that the accountant consents to the requirements of subdivision 14 and that the
102.33accountant consents and agrees to make available for review by the commissioner, or the
102.34commissioner's designee or appointed agent, the work papers, as defined in subdivision
102.3514; a representation that the accountant is properly licensed in good standing by the
102.36appropriate state licensing authorities and is a member in good standing in the American
103.1Institute of Certified Public Accountants; and a representation that the accountant complies
103.2with subdivision 7. Nothing in this section prohibits the accountant from utilizing staff
103.3the accountant deems appropriate where use is consistent with the standards prescribed
103.4by generally accepted auditing standards.
103.5 Subd. 14. Availability and maintenance of independent certified public
103.6accountants' work papers. Work papers are the records kept by the independent certified
103.7public accountant of the procedures followed, tests performed, information obtained, and
103.8conclusions reached pertinent to the independent certified public accountant's audit of the
103.9financial statements of an insurer. Work papers may include audit planning documents,
103.10work programs, analyses, memoranda, letters of confirmation and representation,
103.11management letters, abstracts of company documents, and schedules or commentaries
103.12prepared or obtained by the independent certified public accountant in the course of the
103.13audit of the financial statements of an insurer and that support the accountant's opinion.
103.14Every insurer required to file an audited financial report shall require the accountant,
103.15through the insurer, to make available for review by the examiners the work papers
103.16prepared in the conduct of the audit and any communications related to the audit between
103.17the accountant and the insurer. The work papers must be made available at the offices of
103.18the insurer, at the offices of the commissioner, or at any other reasonable place designated
103.19by the commissioner. The insurer shall require that the accountant retain the audit work
103.20papers and communications until the commissioner has filed a report on examination
103.21covering the period of the audit but no longer than seven years after the period reported
103.22upon, provided retention of the working papers beyond the seven years is not required by
103.23other professional or regulatory requirements. In the conduct of the periodic review by
103.24the examiners, it must be agreed that photocopies of pertinent audit work papers may be
103.25made and retained by the commissioner. These copies shall be part of the commissioner's
103.26work papers and must be given the same confidentiality as other examination work papers
103.27generated by the commissioner.
103.28 Subd. 15. Requirements for audit committee. (a) The audit committee must
103.29be directly responsible for the appointment, compensation, and oversight of the work
103.30of any accountant including resolution of disagreements between management and the
103.31accountant regarding financial reporting for the purpose of preparing or issuing the audited
103.32financial report or related work pursuant to this section. Each accountant shall report
103.33directly to the audit committee.
103.34(b) Each member of the audit committee must be a member of the board of directors
103.35of the insurer or a member of the board of directors of an entity elected pursuant to
103.36paragraph (e) and subdivision 1, paragraph (b).
104.1(c) In order to be considered independent for purposes of this section, a member of
104.2the audit committee may not, other than in his or her capacity as a member of the audit
104.3committee, the board of directors, or any other board committee, accept any consulting,
104.4advisory, or other compensatory fee from the entity or be an affiliated person of the entity
104.5or any subsidiary of the entity. However, if law requires board participation by otherwise
104.6nonindependent members, that law shall prevail and such members may participate in the
104.7audit committee and be designated as independent for audit committee purposes, unless
104.8they are an officer or employee of the insurer or one of its affiliates.
104.9(d) If a member of the audit committee ceases to be independent for reasons outside
104.10the member's reasonable control, that person, with notice by the responsible entity to the
104.11state, may remain an audit committee member of the responsible entity until the earlier of
104.12the next annual meeting of the responsible entity or one year from the occurrence of the
104.13event that caused the member to be no longer independent.
104.14(e) To exercise the election of the controlling person to designate the audit committee
104.15for purposes of this section, the ultimate controlling person shall provide written notice to
104.16the commissioners of the affected insurers. Notification must be made timely before the
104.17issuance of the statutory audit report and include a description of the basis for the election.
104.18The election can be changed through notice to the commissioner by the insurer, which
104.19shall include a description of the basis for the change. The election remains in effect for
104.20perpetuity, until rescinded.
104.21(f) The audit committee shall require the accountant that performs for an insurer any
104.22audit required by this section to timely report to the audit committee in accordance with
104.23the requirements of SAS No. 114, The Auditor's Communication with Those Charged
104.24with Governance, or its replacement, including:
104.25(1) all significant accounting policies and material permitted practices;
104.26(2) all material alternative treatments of financial information within statutory
104.27accounting principles that have been discussed with management officials of the insurer,
104.28ramifications of the use of the alternative disclosures and treatments, and the treatment
104.29preferred by the accountant; and
104.30(3) other material written communications between the accountant and the
104.31management of the insurer, such as any management letter or schedule of unadjusted
104.33(g) If an insurer is a member of an insurance holding company system, the reports
104.34required by paragraph (f) may be provided to the audit committee on an aggregate basis
104.35for insurers in the holding company system, provided that any substantial differences
104.36among insurers in the system are identified to the audit committee.
105.1(h) The proportion of independent audit committee members shall meet or exceed
105.2the following criteria:
105.3(1) for companies with prior calendar year direct written and assumed premiums $0
105.4to $300,000,000, no minimum requirements;
105.5(2) for companies with prior calendar year direct written and assumed premiums
105.6over $300,000,000 to $500,000,000, majority of members must be independent; and
105.7(3) for companies with prior calendar year direct written and assumed premiums
105.8over $500,000,000, 75 percent or more must be independent.
105.9(i) An insurer with direct written and assumed premium, excluding premiums
105.10reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less
105.11than $500,000,000 may make application to the commissioner for a waiver from the
105.12requirements of this subdivision based upon hardship. The insurer shall file, with its
105.13annual statement filing, the approval for relief from this subdivision with the states that
105.14it is licensed in or doing business in and the NAIC. If the nondomestic state accepts
105.15electronic filing with the NAIC, the insurer shall file the approval in an electronic format
105.16acceptable to the NAIC.
105.17This subdivision does not apply to foreign or alien insurers licensed in this state or
105.18an insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary
105.19of a SOX compliant entity.
105.20 Subd. 16. Conduct of insurer in connection with the preparation of required
105.21reports and documents. (a) No director or officer of an insurer shall, directly or indirectly:
105.22(1) make or cause to be made a materially false or misleading statement to an
105.23accountant in connection with any audit, review, or communication required under this
105.25(2) omit to state, or cause another person to omit to state, any material fact necessary
105.26in order to make statements made, in light of the circumstances under which the statements
105.27were made, not misleading to an accountant in connection with any audit, review, or
105.28communication required under this section.
105.29(b) No officer or director of an insurer, or any other person acting under the direction
105.30thereof, shall directly or indirectly take any action to coerce, manipulate, mislead, or
105.31fraudulently influence any accountant engaged in the performance of an audit pursuant to
105.32this section if that person knew or should have known that the action, if successful, could
105.33result in rendering the insurer's financial statements materially misleading.
105.34(c) For purposes of paragraph (b), actions that, "if successful, could result in
105.35rendering the insurer's financial statements materially misleading" include, but are not
106.1limited to, actions taken at any time with respect to the professional engagement period to
106.2coerce, manipulate, mislead, or fraudulently influence an accountant:
106.3(1) to issue or reissue a report on an insurer's financial statements that is not
106.4warranted in the circumstances due to material violations of statutory accounting
106.5principles prescribed by the commissioner, generally accepted auditing standards, or
106.6other professional or regulatory standards;
106.7(2) not to perform audit, review, or other procedures required by generally accepted
106.8auditing standards or other professional standards;
106.9(3) not to withdraw an issued report; or
106.10(4) not to communicate matters to an insurer's audit committee.
106.11 Subd. 17. Management's report of internal control over financial reporting.
106.12(a) Every insurer required to file an audited financial report pursuant to this section that
106.13has annual direct written and assumed premiums, excluding premiums reinsured with the
106.14Federal Crop Insurance Corporation and Federal Flood Program, of $500,000,000 or
106.15more, shall prepare a report of the insurer's or group of insurers' internal control over
106.16financial reporting, as these terms are defined in subdivision 1. The report must be filed
106.17with the commissioner along with the communication of internal control related matters
106.18noted in an audit described under subdivision 12. Management's report of internal control
106.19over financial reporting shall be as of December 31 immediately preceding.
106.20(b) Notwithstanding the premium threshold in paragraph (a), the commissioner may
106.21require an insurer to file management's report of internal control over financial reporting
106.22if the insurer is in any RBC level event, or meets any one or more of the standards of
106.23an insurer deemed to be in hazardous financial condition pursuant to sections 60G.20
106.25(c) An insurer or a group of insurers that is:
106.26(1) directly subject to Section 404;
106.27(2) part of a holding company system whose parent is directly subject to Section 404;
106.28(3) not directly subject to Section 404 but is a SOX compliant entity; or
106.29(4) a member of a holding company system whose parent is not directly subject to
106.30Section 404 but is a SOX compliant entity;
106.31may file its or its parent's Section 404 report and an addendum in satisfaction of this
106.32requirement provided that those internal controls of the insurer or group of insurers
106.33having a material impact on the preparation of the insurer's or group of insurers' audited
106.34statutory financial statements, consisting of those items included in subdivision 4,
106.35paragraphs (a), clauses (2) to (6), (b), and (c), were included in the scope of the Section
106.36404 report. The addendum shall be a positive statement by management that there are
107.1no material processes with respect to the preparation of the insurer's or group of insurers'
107.2audited statutory financial statements, consisting of those items included in subdivision 4,
107.3paragraphs (a), clauses (2) to (6), (b), and (c), excluded from the Section 404 report. If
107.4there are internal controls of the insurer or group of insurers that have a material impact on
107.5the preparation of the insurer's or group of insurers' audited statutory financial statements
107.6and those internal controls were not included in the scope of the Section 404 report, the
107.7insurer or group of insurers may either file (i) a report under this subdivision, or (ii) the
107.8Section 404 report and a report under this subdivision for those internal controls that have
107.9a material impact on the preparation of the insurer's or group of insurers' audited statutory
107.10financial statements not covered by the Section 404 report.
107.11(d) Management's report of internal control over financial reporting shall include:
107.12(1) a statement that management is responsible for establishing and maintaining
107.13adequate internal control over financial reporting;
107.14(2) a statement that management has established internal control over financial
107.15reporting and an assertion, to the best of management's knowledge and belief, after diligent
107.16inquiry, as to whether its internal control over financial reporting is effective to provide
107.17reasonable assurance regarding the reliability of financial statements in accordance with
107.18statutory accounting principles;
107.19(3) a statement that briefly describes the approach or processes by which
107.20management evaluated the effectiveness of its internal control over financial reporting;
107.21(4) a statement that briefly describes the scope of work that is included and whether
107.22any internal controls were excluded;
107.23(5) disclosure of any unremediated material weaknesses in the internal control over
107.24financial reporting identified by management as of December 31 immediately preceding.
107.25Management is not permitted to conclude that the internal control over financial reporting
107.26is effective to provide reasonable assurance regarding the reliability of financial statements
107.27in accordance with statutory accounting principles if there is one or more unremediated
107.28material weaknesses in its internal control over financial reporting;
107.29(6) a statement regarding the inherent limitations of internal control systems; and
107.30(7) signatures of the chief executive officer and the chief financial officer or
107.31equivalent position or title.
107.32(e) Management shall document and make available upon financial condition
107.33examination the basis upon which its assertions, required in paragraph (d), are made.
107.34Management may base its assertions, in part, upon its review, monitoring, and testing of
107.35internal controls undertaken in the normal course of its activities.
108.1(1) Management has discretion as to the nature of the internal control framework
108.2used, and the nature and extent of documentation, in order to make its assertion in a
108.3cost-effective manner and, as such, may include assembly of or reference to existing
108.5(2) Management's report on internal control over financial reporting, required by
108.6paragraph (a), and any documentation provided in support of the report during the course
108.7of a financial condition examination, must be kept confidential by the Department of
108.9 Subd. 18. Exemptions. (a) Upon written application of any insurer, the
108.10commissioner may grant an exemption from compliance with the provisions of this
108.11section. In order to receive an exemption, an insurer must demonstrate to the satisfaction
108.12of the commissioner that compliance would constitute a financial or organizational
108.13hardship upon the insurer. An exemption may be granted at any time and from time
108.14to time for specified periods. Within ten days from the denial of an insurer's written
108.15request for an exemption, the insurer may request in writing a hearing on its application
108.16for an exemption. This hearing must be held in accordance with chapter 14. Upon written
108.17application of any insurer, the commissioner may permit an insurer to file annual audited
108.18financial reports on some basis other than a calendar year basis for a specified period. An
108.19exemption may not be granted until the insurer presents an alternative method satisfying
108.20the purposes of this section. Within ten days from a denial of a written request for an
108.21exemption, the insurer may request in writing a hearing on its application. The hearing
108.22must be held in accordance with chapter 14.
108.23(b) This section applies to all insurers, unless otherwise indicated, required to file
108.24an annual audit by subdivision 2, except insurers having less than $1,000,000 of direct
108.25written premiums in this state in any calendar year and fewer than 1,000 policyholders
108.26or certificate holders of directly written policies nationwide at the end of the calendar
108.27year, are exempt from this section for that year, unless the commissioner makes a
108.28specific finding that compliance is necessary for the commissioner to carry out statutory
108.29responsibilities, except that insurers having assumed premiums from reinsurance contracts
108.30or treaties of $1,000,000 or more are not exempt.
108.31 Subd. 19. Canadian and British companies. (a) In the case of Canadian and
108.32British insurers, the annual audited financial report means the annual statement of total
108.33business on the form filed by these companies with their domiciliary supervision authority
108.34and duly audited by an independent chartered accountant.
108.35(b) For these insurers the letter required in subdivision 5 shall state that the
108.36accountant is aware of the requirements relating to the annual audited statement filed
109.1with the commissioner under subdivision 2, and shall affirm that the opinion expressed
109.2is in conformity with those requirements.
109.3 Subd. 20. Commercial mortgage loan valuation procedures. A report of the
109.4independent certified public accountant that performs the audit of an insurer's annual
109.5statement as required under subdivision 2, shall be filed and contain a statement as to
109.6whether anything in connection with the audit came to the accountant's attention that
109.7caused the accountant to believe that the insurer failed to adopt and consistently apply the
109.8valuation procedures as required by sections
109.9 Subd. 21. Examinations. (a) The commissioner or a designated representative shall
109.10determine the nature, scope, and frequency of examinations under this section conducted
109.11by examiners under section
60A.031. These examinations may cover all aspects of the
109.12insurer's assets, condition, affairs, and operations and may include and be supplemented
109.13by audit procedures performed by independent certified public accountants. Scheduling
109.14of examinations will take into account all relevant matters with respect to the insurer's
109.15condition, including results of the National Association of Insurance Commissioners,
109.16Insurance Regulatory Information Systems, changes in management, results of market
109.17conduct examinations, and audited financial reports. The type of examinations performed
109.18by examiners under this section must be compliance examinations, targeted examinations,
109.19and comprehensive examinations.
109.20(b) Compliance examinations will consist of a review of the accountant's workpapers
109.21defined under this section and a general review of the insurer's corporate affairs and
109.22insurance operations to determine compliance with the Minnesota insurance laws and
109.23the rules of the Department of Commerce. The examiners may perform alternative or
109.24additional examination procedures to supplement those performed by the accountant
109.25when the examiners determine that the procedures are necessary to verify the financial
109.26condition of the insurer.
109.27(c) Targeted examinations may cover limited areas of the insurer's operations as
109.28the commissioner may deem appropriate.
109.29(d) Comprehensive examinations will be performed when the report of the
109.30accountant as provided for in subdivision 7, paragraph (b), the notification required by
109.31subdivision 7, paragraph (c), the results of compliance or targeted examinations, or other
109.32circumstances indicate in the judgment of the commissioner or a designated representative
109.33that a complete examination of the condition and affairs of the insurer is necessary.
109.34(e) Upon completion of each targeted, compliance, or comprehensive examination,
109.35the examiner appointed by the commissioner shall make a full and true report on the
109.36results of the examination. Each report shall include a general description of the audit
110.1procedures performed by the examiners and the procedures of the accountant that
110.2the examiners may have utilized to supplement their examination procedures and the
110.3procedures that were performed by the registered independent certified public accountant
110.4if included as a supplement to the examination.
110.5 Subd. 22. Penalties. An annual statement, report, or document related to the
110.6business of insurance must not be filed with the commissioner or issued to the public if it
110.7is signed by anyone who is represented in the instrument as an "accountant," unless the
110.8person is qualified as defined by this section. A violation of this subdivision is a violation
72A.19 and punishable in accordance with section
110.10EFFECTIVE DATE.(a) Domestic insurers retaining a certified public accountant
110.11on the effective date of this section who qualify as independent shall comply with this
110.12section for the year ending December 31, 2010, and each year thereafter unless the
110.13commissioner permits otherwise.
110.14(b) Domestic insurers not retaining a certified public accountant on the effective
110.15date of this section who qualifies as independent shall meet the following schedule for
110.16compliance unless the commissioner permits otherwise.
110.17(1) As of December 31, 2010, file with the commissioner an audited financial report.
110.18(2) For the year ending December 31, 2010, and each year thereafter, such insurers
110.19shall file with the commissioner all reports and communication required by this section.
110.20(c) Foreign insurers shall comply with this section for the year ending December 31,
110.212010, and each year thereafter, unless the commissioner permits otherwise.
110.22(d) The requirements of subdivision 7, paragraph (b), are in effect for audits of the
110.23year beginning January 1, 2010, and thereafter.
110.24(e) The requirements of subdivision 15 are in effect January 1, 2010. An insurer or
110.25group of insurers that is not required to have independent audit committee members or
110.26only a majority of independent audit committee members, as opposed to a supermajority,
110.27because the total written and assumed premium is below the threshold and subsequently
110.28becomes subject to one of the independence requirements due to changes in premium has
110.29one year following the year the threshold is exceeded, but not earlier than January 1,
110.302010, to comply with the independence requirements. Likewise, an insurer that becomes
110.31subject to one of the independence requirements as a result of a business combination
110.32has one calendar year following the date of acquisition or combination to comply with
110.33the independence requirements.
110.34(f) An insurer or group of insurers that is not required to file a report because the total
110.35written premium is below the threshold and subsequently becomes subject to the reporting
110.36requirements has two years following the year the threshold is exceeded, but not earlier
111.1than December 31, 2010, to file a report. Likewise, an insurer acquired in a business
111.2combination has two calendar years following the date of acquisition or combination to
111.3comply with the reporting requirements.
111.4(g) The requirements and provisions contained in this section are effective January
111.51, 2010, and thereafter.
Sec. 12. Minnesota Statutes 2008, section 60B.03, subdivision 15, is amended to read:
Subd. 15. Insolvency.
(a) For an insurer organized under sections
, the inability to pay
any uncontested debt as it becomes due
or any other loss within 30 days after the due date
111.10 specified in the first assessment notice issued pursuant to section
(b) For any other insurer, that it is unable to pay its debts or meet its obligations
as they mature or that its assets do not exceed its liabilities plus the greater of (1) any
capital and surplus required by law to be constantly maintained, or (2) its authorized and
issued capital stock. For purposes of this subdivision, "assets" includes one-half of the
maximum total assessment liability of the policyholders of the insurer, and "liabilities"
includes reserves required by law. For policies issued on the basis of unlimited assessment
liability, the maximum total liability, for purposes of determining solvency only, shall be
deemed to be that amount that could be obtained if there were 100 percent collection of an
assessment at the rate of ten mills per dollar of insurance written by it and in force.
Sec. 13. Minnesota Statutes 2008, section 60L.02, subdivision 3, is amended to read:
Subd. 3. Additional requirements.
(a) In order to be eligible to be governed by
, the insurer must meet the requirements specified under this
(b) The insurer shall:
(1) have been in continuous operation for a minimum of five years; and
(2) maintain a minimum claims-paying, financial strength, or equivalent rating from
at least one nationally recognized statistical rating organization in one of the organization's
three highest rating categories for the time period during which sections
apply to the insurer. For purposes of this subdivision, the rating must be based on a
review of the insurer by the nationally recognized statistical rating organization with the
cooperation of the insurer; must not depend on a guarantee or other credit enhancement
from another entity; and must not be modified or otherwise qualified to show dependence
of the rating on the performance or a contractual obligation of, or the insurer's affiliation
with, another insurer.
(c) The insurer or an affiliate, as defined in section
60D.15, subdivision 2
, of the
insurer shall employ at least one individual as a professional investment manager for
the insurer's investments whom the board of directors or trustees of the insurer finds
is qualified on the basis of experience, education or training, competence, personal
integrity, and who conducts professional investment management activities in accordance
with the Code of Ethics and Standards of Professional Conduct of the Association for
Investment Management and Research. For purposes of complying with this paragraph,
an employee of an affiliate may only be used if they are responsible for managing the
(d) The board of directors of the insurer must annually adopt a resolution finding
that the insurer or an affiliate, as defined in section
60D.15, subdivision 2
, of the insurer
has employed a professional investment manager for the insurer's investments with
sufficient expertise and has sufficient other resources to implement and monitor the
insurer's investment policies and strategies.
(e) In the report required under section
60A.129 60A.1291, subdivision 3 12
the insurer's independent auditor shall not have identified any significant
deficiencies in the insurer's internal control structure related to investments during any of
the five years immediately preceding the date on which sections
apply to the insurer, and as long as sections
apply to the insurer.
Sec. 14. [61A.258] PRENEED INSURANCE PRODUCTS; MINIMUM
112.21MORTALITY STANDARDS FOR RESERVES AND NONFORFEITURE VALUES.
112.22 Subdivision 1. Definitions. For the purposes of this section, the following terms
112.23have the meanings given them:
112.24(1) "2001 CSO Mortality Table (2001 CSO)" means that mortality table, consisting
112.25of separate rates of mortality for male and female lives, developed by the American
112.26Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table
112.27developed by the Society of Actuaries Individual Life Insurance Valuation Mortality
112.28Task Force, and adopted by the National Association of Insurance Commissioners
112.29(NAIC) in December 2002. The 2001 CSO Mortality Table (2001 CSO) is included in
112.30the Proceedings of the NAIC (2nd Quarter 2002). Unless the context indicates otherwise,
112.31the "2001 CSO Mortality Table (2001 CSO)" includes both the ultimate form of that
112.32table and the select and ultimate form of that table and includes both the smoker and
112.33nonsmoker mortality tables and the composite mortality tables. It also includes both the
112.34age-nearest-birthday and age-last-birthday bases of the mortality tables;
113.1(2) "Ultimate 1980 CSO" means the Commissioners' 1980 Standard Ordinary Life
113.2Valuation Mortality Tables (1980 CSO) without ten-year selection factors, incorporated
113.3into the 1980 amendments to the NAIC Standard Valuation Law approved in December
113.5(3) "preneed insurance" is any life insurance policy or certificate that is issued
113.6in combination with, in support of, with an assignment to, or as a guarantee for a
113.7prearrangement agreement for goods and services to be provided at the time of and
113.8immediately following the death of the insured. Goods and services may include, but
113.9are not limited to embalming, cremation, body preparation, viewing or visitation, coffin
113.10or urn, memorial stone, and transportation of the deceased. The status of the policy or
113.11contract as preneed insurance is determined at the time of issue in accordance with the
113.12policy form filing.
113.13 Subd. 2. Minimum valuation mortality standards. For preneed insurance
113.14contracts, the minimum mortality standard for determining reserve liabilities and
113.15nonforfeiture values for both male and female insureds shall be the Ultimate 1980 CSO.
113.16 Subd. 3. Minimum valuation interest rate standards. (a) The interest rates used
113.17in determining the minimum standard for valuation of preneed insurance shall be the
113.18calendar year statutory valuation interest rates as defined in section 61A.25.
113.19(b) The interest rates used in determining the minimum standard for nonforfeiture
113.20values for preneed insurance shall be the calendar year statutory nonforfeiture interest
113.21rates as defined in section 61A.24.
113.22 Subd. 4. Minimum valuation method standards. (a) The method used in
113.23determining the standard for the minimum valuation of reserves of preneed insurance shall
113.24be the method defined in section 61A.25.
113.25(b) The method used in determining the standard for the minimum nonforfeiture
113.26values for preneed insurance shall be the method defined in section 61A.24.
113.27EFFECTIVE DATE; TRANSITION RULES.(a) This section is effective January
113.281, 2009, and applies to preneed insurance policies and certificates issued on or after that
113.30(b) For preneed insurance policies issued on or after the effective date of this
113.31section and before January 1, 2012, the 2001 CSO may be used as the minimum standard
113.32for reserves and minimum standard for nonforfeiture benefits for both male and female
113.34(c) If an insurer elects to use the 2001 CSO as a minimum standard for any policy
113.35issued on or after the effective date of this section and before January 1, 2012, the insurer
114.1shall provide, as a part of the actuarial opinion memorandum submitted in support of
114.2the company's asset adequacy testing, an annual written notification to the domiciliary
114.3commissioner. The notification shall include:
114.4(1) a complete list of all preneed policy forms that use the 2001 CSO as a minimum
114.6(2) a certification signed by the appointed actuary stating that the reserve
114.7methodology employed by the company in determining reserves for the preneed policies
114.8issued after the effective date and using the 2001 CSO as a minimum standard, develops
114.9adequate reserves (For the purposes of this certification, the preneed insurance policies
114.10using the 2001 CSO as a minimum standard cannot be aggregated with any other
114.12(3) supporting information regarding the adequacy of reserves for preneed insurance
114.13policies issued after the effective date of this section and using the 2001 CSO as a
114.14minimum standard for reserves.
114.15(d) Preneed insurance policies issued on or after January 1, 2012, must use the
114.16Ultimate 1980 CSO in the calculation of minimum nonforfeiture values and minimum
Sec. 15. Minnesota Statutes 2008, section 61B.19, subdivision 4, is amended to read:
Subd. 4. Limitation of benefits.
The benefits for which the association may become
liable shall in no event exceed the lesser of:
(1) the contractual obligations for which the insurer is liable or would have been
liable if it were not an impaired or insolvent insurer; or
(2) subject to the limitation in clause (5), with respect to any one life, regardless of
the number of policies or contracts:
in life insurance death benefits, but not more than
in net cash surrender and net cash withdrawal values for life insurance;
in health insurance benefits, including any net cash surrender
and net cash withdrawal values;
in annuity net cash surrender and net cash withdrawal values;
in present value of annuity benefits for structured settlement
annuities or for annuities in regard to which periodic annuity benefits, for a period of not
less than the annuitant's lifetime or for a period certain of not less than ten years, have
begun to be paid, on or before the date of impairment or insolvency; or
(3) subject to the limitations in clauses (5) and (6), with respect to each individual
resident participating in a retirement plan, except a defined benefit plan, established under
section 401, 403(b), or 457 of the Internal Revenue Code of 1986, as amended through
December 31, 1992, covered by an unallocated annuity contract, or the beneficiaries
of each such individual if deceased, in the aggregate,
in net cash
surrender and net cash withdrawal values;
(4) where no coverage limit has been specified for a covered policy or benefit, the
coverage limit shall be
in present value;
(5) in no event shall the association be liable to expend more than
in the aggregate with respect to any one life under clause (2), items (i), (ii), (iii),
(iv), and clause (4), and any one individual under clause (3);
(6) in no event shall the association be liable to expend more than
with respect to all unallocated annuities of a retirement plan, except a defined
benefit plan, established under section 401, 403(b), or 457 of the Internal Revenue Code
of 1986, as amended through December 31, 1992. If total claims from a plan exceed
shall be prorated among the
(7) for purposes of applying clause (2)(ii) and clause (5), with respect only to
health insurance benefits, the term "any one life" applies to each individual covered by a
health insurance policy;
(8) where covered contractual obligations are equal to or less than the limits stated in
this subdivision, the association will pay the difference between the covered contractual
obligations and the amount credited by the estate of the insolvent or impaired insurer, if
that amount has been determined or, if it has not, the covered contractual limit, subject
to the association's right of subrogation;
(9) where covered contractual obligations exceed the limits stated in this subdivision,
the amount payable by the association will be determined as though the covered
contractual obligations were equal to those limits. In making the determination, the estate
shall be deemed to have credited the covered person the same amount as the estate would
credit a covered person with contractual obligations equal to those limits; or
(10) the following illustrates how the principles stated in clauses (8) and (9) apply.
The example illustrated concerns hypothetical claims subject to the limit stated in clause
(2)(iii). The principles stated in clauses (8) and (9), and illustrated in this clause, apply
to claims subject to any limits stated in this subdivision.
CONTRACTUAL OBLIGATIONS OF:
For purposes of this subdivision, the commissioner shall determine the discount rate
to be used in determining the present value of annuity benefits.
117.7EFFECTIVE DATE.This section is effective the day following final enactment
117.8and applies to member insurers who are first determined to be impaired or insolvent on or
117.9after that date. Member insurers who are subject to an order of impairment in effect on the
117.10effective date but are not declared insolvent until after the effective date shall continue to
117.11be governed by the law in effect prior to the effective date.
Sec. 16. Minnesota Statutes 2008, section 61B.28, subdivision 4, is amended to read:
Subd. 4. Prohibited sales practice.
No person, including an insurer, agent, or
affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the
public, or cause directly or indirectly, to be made, published, disseminated, circulated,
or placed before the public, in any newspaper, magazine, or other publication, or in the
form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television
station, or in any other way, an advertisement, announcement, or statement, written or
oral, which uses the existence of the Minnesota Life and Health Insurance Guaranty
Association for the purpose of sales, solicitation, or inducement to purchase any form of
insurance covered by sections
. The notice required by subdivision 8
is not a violation of this subdivision nor is it a violation of this subdivision to explain
117.23verbally to an applicant or potential applicant the coverage provided by the Minnesota
117.24Life and Health Insurance Guaranty Association at any time during the application process
. This subdivision does not apply to the Minnesota Life and Health Insurance
Guaranty Association or an entity that does not sell or solicit insurance.
A person violating
117.27 this section is guilty of a misdemeanor.
Sec. 17. Minnesota Statutes 2008, section 61B.28, subdivision 8, is amended to read:
Subd. 8. Form.
The form of notice referred to in subdivision 7, paragraph (a),
is as follows:
(insert name, current address, and
telephone number of insurer)
NOTICE CONCERNING POLICYHOLDER RIGHTS IN AN
INSOLVENCY UNDER THE MINNESOTA LIFE AND HEALTH
INSURANCE GUARANTY ASSOCIATION LAW
If the insurer that issued your life, annuity, or health insurance policy becomes
impaired or insolvent, you are entitled to compensation for your policy from the assets of
that insurer. The amount you recover will depend on the financial condition of the insurer.
In addition, residents of Minnesota who purchase life insurance, annuities, or health
insurance from insurance companies authorized to do business in Minnesota are protected,
SUBJECT TO LIMITS AND EXCLUSIONS, in the event the insurer becomes financially
impaired or insolvent. This protection is provided by the Minnesota Life and Health
Insurance Guaranty Association.
Minnesota Life and Health Insurance Guaranty Association
address and telephone number)
The maximum amount the guaranty association will pay for all policies issued on
one life by the same insurer is limited to
. Subject to this
limit, the guaranty association will pay up to
insurance death benefits,
in net cash surrender and net cash withdrawal
values for life insurance,
in health insurance benefits, including any
net cash surrender and net cash withdrawal values,
in annuity net
cash surrender and net cash withdrawal values,
in present value of
annuity benefits for annuities which are part of a structured settlement or for annuities
in regard to which periodic annuity benefits, for a period of not less than the annuitant's
lifetime or for a period certain of not less than ten years, have begun to be paid on or
before the date of impairment or insolvency, or if no coverage limit has been specified
for a covered policy or benefit, the coverage limit shall be
value. Unallocated annuity contracts issued to retirement plans, other than defined benefit
plans, established under section 401, 403(b), or 457 of the Internal Revenue Code of
1986, as amended through December 31, 1992, are covered up to
net cash surrender and net cash withdrawal values, for Minnesota residents covered by
the plan provided, however, that the association shall not be responsible for more than
in claims from all Minnesota residents covered by the plan. If
total claims exceed
shall be prorated
among all claimants. These are the maximum claim amounts. Coverage by the guaranty
association is also subject to other substantial limitations and exclusions and requires
continued residency in Minnesota. If your claim exceeds the guaranty association's limits,
you may still recover a part or all of that amount from the proceeds of the liquidation of
the insolvent insurer, if any exist. Funds to pay claims may not be immediately available.
The guaranty association assesses insurers licensed to sell life and health insurance in
Minnesota after the insolvency occurs. Claims are paid from this assessment.
THE COVERAGE PROVIDED BY THE GUARANTY ASSOCIATION IS NOT
A SUBSTITUTE FOR USING CARE IN SELECTING INSURANCE COMPANIES
THAT ARE WELL MANAGED AND FINANCIALLY STABLE. IN SELECTING AN
INSURANCE COMPANY OR POLICY, YOU SHOULD NOT RELY ON COVERAGE
BY THE GUARANTY ASSOCIATION.
THIS NOTICE IS REQUIRED BY MINNESOTA STATE LAW TO ADVISE
POLICYHOLDERS OF LIFE, ANNUITY, OR HEALTH INSURANCE POLICIES
OF THEIR RIGHTS IN THE EVENT THEIR INSURANCE CARRIER BECOMES
FINANCIALLY INSOLVENT. THIS NOTICE IN NO WAY IMPLIES THAT THE
COMPANY CURRENTLY HAS ANY TYPE OF FINANCIAL PROBLEMS. ALL LIFE,
ANNUITY, AND HEALTH INSURANCE POLICIES ARE REQUIRED TO PROVIDE
Additional language may be added to the notice if approved by the commissioner
prior to its use in the form. This section does not apply to fraternal benefit societies
regulated under chapter 64B.
Sec. 18. Minnesota Statutes 2008, section 67A.01, is amended to read:
119.2167A.01 NUMBER OF MEMBERS REQUIRED, PROPERTY AND
119.23 Subdivision 1. Number of members.
It shall be lawful for any number of
persons, not less than 25, residing in adjoining
in this state, who shall
collectively own property worth at least $50,000, to form themselves into a corporation
for mutual insurance against loss or damage by the perils listed in section
(b) Except as otherwise provided in this section, the company shall operate in no
119.28 more than 150 adjoining townships in the aggregate at the same time. The company may,
119.29 if approval has been granted by the commissioner, operate in more than 150 adjoining
119.30 townships in the aggregate at the same time, subject to a maximum of 300 townships.
119.31 If the company confines its operations to one county it may transact business in that
119.32 county by so providing in its certificate of incorporation. In case of merger of two or
119.33 more companies having contiguous territories, the surviving company in the merger may
119.34 transact business in the entire territory of the merged companies, but the territory of the
119.35 surviving company in the merger must not be larger than 300 townships.
120.1 Subd. 2. Authorized territory. (a) A township mutual fire insurance company may
120.2be authorized to write business in up to nine adjoining counties in the aggregate at the
120.3same time. If policyholder surplus is at least $500,000 as reported in the company's last
120.4annual financial statement filed with the commissioner, the company may, if approval has
120.5been granted by the commissioner, be authorized to write business in ten or more counties
120.6in the aggregate at the same time, subject to a maximum of 20 adjoining counties, in
120.7accordance with the following schedule:
120.21(b) In the case of a merger of two or more companies having contiguous territories,
120.22the surviving company in the merger may transact business in the entire territory of the
120.23merged companies; however, the territory of the surviving company in the merger may not
120.24be larger than 20 counties.
120.25(c) A township mutual fire insurance company may write new and renewal insurance
120.26on property in cities within the company's authorized territory having a population less
120.27than 25,000. A township mutual may continue to write new and renewal insurance once
120.28the population increases to 25,000 or greater provided that amended and restated articles
120.29are filed with the commissioner along with a certification that such city's population has
120.30increased to 25,000 or greater.
120.31(d) A township mutual fire insurance company may write new and renewal insurance
120.32on property in cities within the company's authorized territory with a population of 25,000
120.33or greater, but less than 150,000, if approval has been granted by the commissioner.
121.1No township mutual fire insurance company shall insure any property in cities with a
121.2population of 150,000 or greater.
121.3(e) If a township mutual fire insurance company provides evidence to the
121.4commissioner that the company had insurance in force on December 31, 2007, in a city
121.5within the company's authorized territory with a population of 25,000 or greater, but less
121.6than 150,000, the company may write new and renewal insurance on property in that city
121.7provided that the company files amended and restated articles by July 31, 2010, naming
Sec. 19. Minnesota Statutes 2008, section 67A.06, is amended to read:
121.1067A.06 POWERS OF CORPORATION.
Every corporation formed under the provisions of sections
shall have power:
(1) to have succession by its corporate name for the time stated in its certificate of
(2) to sue and be sued in any court;
(3) to have and use a common seal and alter the same at pleasure;
(4) to acquire, by purchase or otherwise, and to hold, enjoy, improve, lease,
encumber, and convey all real and personal property necessary for the purpose of its
organization, subject to such limitations as may be imposed by law or by its articles of
(5) to elect or appoint in such manner as it may determine all necessary or proper
officers, agents, boards, and committees, fix their compensation, and define their powers
(6) to make and amend consistently with law bylaws providing for the management
of its property and the regulation and government of its affairs;
(7) to wind up and liquidate its business in the manner provided by chapter 60B;
(8) to indemnify certain persons against expenses and liabilities as provided in
. In applying section
for this purpose, the term "members"
shall be substituted for the terms "shareholders" and "stockholders
121.30(9) to eliminate or limit a director's personal liability to the company or its members
121.31for monetary damages for breach of fiduciary duty as a director. A company shall not
121.32eliminate or limit the liability of a director:
121.33(i) for breach of loyalty to the company or its members;
121.34(ii) for acts or omissions made in bad faith or with intentional misconduct or
121.35knowing violation of law;
122.1(iii) for transactions from which the director derived an improper personal benefit; or
122.2(iv) for acts or omissions occurring before the date that the provisions in the articles
122.3eliminating or limiting liability become effective.
Sec. 20. Minnesota Statutes 2008, section 67A.07, is amended to read:
122.567A.07 PRINCIPAL OFFICE.
The principal office of a township mutual fire insurance company shall be located in
township or in a city in a township county
in which the company is authorized to do
Sec. 21. Minnesota Statutes 2008, section 67A.14, subdivision 1, is amended to read:
Subdivision 1. Kinds of property; property outside authorized territory.
Township mutual fire insurance companies may insure qualified property. Qualified
property means dwellings, household goods, appurtenant structures, farm buildings, farm
personal property, churches, church personal property, county fair buildings, community
and township meeting halls and their usual contents.
(b) Township mutual fire insurance companies may extend coverage to include
an insured's secondary property if the township mutual fire insurance company covers
qualified property belonging to the insured. Secondary property means any real or
personal property that is not considered qualified property for a township mutual fire
insurance company to cover under this chapter. The maximum amount of coverage that a
township mutual fire insurance company may write for secondary property is 25 percent of
the total limit of liability of the policy issued to an insured covering the qualified property.
122.22(c) A township mutual fire insurance company may insure any real or personal
122.23property, including qualified or secondary property, subject to the limitations in
122.24subdivision 1, paragraph (b), located outside the limits of the territory in which the
122.25company is authorized by its certificate or articles of incorporation to transact business, if
122.26the company is already covering qualified property belonging to the insured, inside the
122.27limits of the company's territory.
122.28(d) A township mutual fire insurance company may insure property temporarily
122.29outside of the authorized territory of the township mutual fire insurance company.
Sec. 22. Minnesota Statutes 2008, section 67A.14, subdivision 7, is amended to read:
Subd. 7. Amount of insurable risk.
No township mutual fire
shall insure or reinsure a single risk or hazard in a larger sum than the greater of $3,000, or
one tenth of its net assets plus two tenths of a mill of its insurance in force; provided that
no portion of any such risk or hazard which shall have been reinsured, as authorized by
the laws of this state, shall be included in determining the limitation of risk prescribed
by this subdivision.
Sec. 23. [67A.175] SURPLUS REQUIREMENTS.
123.5 Subdivision 1. Minimum. Township mutual fire insurance companies shall maintain
123.6a minimum policyholders' surplus of $300,000 at all times.
123.7 Subd. 2. Corrective action plan; filing. A township mutual fire insurance company
123.8that falls below the $300,000 minimum surplus requirement must file a corrective action
123.9plan with the commissioner. The plan shall state how the company will correct its surplus
123.10deficiency. The plan must be submitted within 45 days of the company falling below the
123.11minimum surplus level.
123.12 Subd. 3. Corrective action plan; commissioner's notification. Within 30 days
123.13after the submission by a township mutual fire insurance company of a corrective action
123.14plan, the commissioner shall notify the insurer whether the plan may be implemented or
123.15is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines
123.16the plan is unsatisfactory, the notification to the company must set forth the reasons for the
123.17determination, and may set forth proposed revisions that will render the plan satisfactory
123.18in the judgment of the commissioner. Upon notification from the commissioner, the
123.19insurer shall prepare a revised corrective action plan that may incorporate by reference
123.20any revisions proposed by the commissioner, and shall submit the revised plan to the
123.21commissioner within 45 days.
Sec. 24. Minnesota Statutes 2008, section 67A.18, subdivision 1, is amended to read:
Subdivision 1. By member.
Any member may terminate membership in the
company by giving written notice or returning the member's policy to the secretary
123.25 paying the withdrawing member's share of all existing claims
Sec. 25. REPEALER.
123.27 Subdivision 1. Annual audits. Minnesota Statutes 2008, section 60A.129, is
123.29 Subd. 2. Township mutual insured properties, joint or partial risks, and
123.30assessments. Minnesota Statutes 2008, sections 67A.14, subdivision 5; 67A.17; and
123.3167A.19, are repealed.
124.1 Subd. 3. Banking procedures; real estate tax records. Minnesota Rules, part
124.22675.2180, is repealed.
124.3 Subd. 4. Debt prorating companies. Minnesota Rules, parts 2675.7100;
124.42675.7110; 2675.7120; 2675.7130; and 2675.7140, are repealed.
124.5 Subd. 5. Guaranty association; inflation indexing. Minnesota Statutes 2008,
124.6section 61B.19, subdivision 6, is repealed.
124.8DEBT MANAGEMENT SERVICES
Section 1. Minnesota Statutes 2008, section 45.011, subdivision 1, is amended to read:
Subdivision 1. Scope.
As used in chapters 45 to 83, 155A, 332, 332A, 332B,
345, and 359, and sections
, unless the context indicates otherwise, the terms defined in this section have
the meanings given them.
Sec. 2. Minnesota Statutes 2008, section 46.04, subdivision 1, is amended to read:
Subdivision 1. General.
The commissioner of commerce, referred to in chapters 46
332A, and 332B
as the commissioner, is vested with all the powers,
authority, and privileges which, prior to the enactment of Laws 1909, chapter 201, were
conferred by law upon the public examiner, and shall take over all duties in relation to
state banks, savings banks, trust companies, savings associations, and other financial
institutions within the state which, prior to the enactment of chapter 201, were imposed
upon the public examiner. The commissioner of commerce shall exercise a constant
supervision, either personally or through the examiners herein provided for, over the
books and affairs of all state banks, savings banks, trust companies, savings associations,
credit unions, industrial loan and thrift companies, and other financial institutions doing
business within this state; and shall, through examiners, examine each financial institution
at least once every 24 calendar months. In satisfying this examination requirement, the
commissioner may accept reports of examination prepared by a federal agency having
comparable supervisory powers and examination procedures. With the exception of
industrial loan and thrift companies which do not have deposit liabilities and licensed
regulated lenders, it shall be the principal purpose of these examinations to inspect and
verify the assets and liabilities of each and so far investigate the character and value of
the assets of each institution as to determine with reasonable certainty that the values are
correctly carried on its books. Assets and liabilities shall be verified in accordance with
methods of procedure which the commissioner may determine to be adequate to carry out
the intentions of this section. It shall be the further purpose of these examinations to
assess the adequacy of capital protection and the capacity of the institution to meet usual
and reasonably anticipated deposit withdrawals and other cash commitments without
resorting to excessive borrowing or sale of assets at a significant loss, and to investigate
each institution's compliance with applicable laws and rules. Based on the examination
findings, the commissioner shall make a determination as to whether the institution
is being operated in a safe and sound manner. None of the above provisions limits the
commissioner in making additional examinations as deemed necessary or advisable. The
commissioner shall investigate the methods of operation and conduct of these institutions
and their systems of accounting, to ascertain whether these methods and systems are
in accordance with law and sound banking principles. The commissioner may make
requirements as to records as deemed necessary to facilitate the carrying out of the
commissioner's duties and to properly protect the public interest. The commissioner may
examine, or cause to be examined by these examiners, on oath, any officer, director,
trustee, owner, agent, clerk, customer, or depositor of any financial institution touching
the affairs and business thereof, and may issue, or cause to be issued by the examiners,
subpoenas, and administer, or cause to be administered by the examiners, oaths. In
case of any refusal to obey any subpoena issued under the commissioner's direction,
the refusal may at once be reported to the district court of the district in which the bank
or other financial institution is located, and this court shall enforce obedience to these
subpoenas in the manner provided by law for enforcing obedience to subpoenas of the
court. In all matters relating to official duties, the commissioner of commerce has the
power possessed by courts of law to issue subpoenas and cause them to be served and
enforced, and all officers, directors, trustees, and employees of state banks, savings banks,
trust companies, savings associations, and other financial institutions within the state,
and all persons having dealings with or knowledge of the affairs or methods of these
institutions, shall afford reasonable facilities for these examinations, make returns and
reports to the commissioner of commerce as the commissioner may require; attend and
answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books,
accounts, documents, and property as the commissioner may desire to inspect, and in all
things aid the commissioner in the performance of duties.
Sec. 3. Minnesota Statutes 2008, section 46.05, is amended to read:
125.3346.05 SUPERVISION OVER FINANCIAL INSTITUTIONS.
Every state bank, savings bank, trust company, savings association, debt management
services provider, debt settlement services provider,
and other financial institutions shall
be at all times under the supervision and subject to the control of the commissioner
of commerce. If, and whenever in the performance of duties, the commissioner finds
it necessary to make a special investigation of any financial institution under the
commissioner's supervision, and other than a complete examination, the commissioner
shall make a charge therefor to include only the necessary costs thereof. Such a fee shall
be payable to the commissioner on the commissioner's making a request for payment.
Sec. 4. Minnesota Statutes 2008, section 46.131, subdivision 2, is amended to read:
Subd. 2. Assessment authority.
Each bank, trust company, savings bank, savings
association, regulated lender, industrial loan and thrift company, credit union, motor
vehicle sales finance company, debt management services provider, debt settlement
and insurance premium finance company organized under the laws of
this state or required to be administered by the commissioner of commerce shall pay
into the state treasury its proportionate share of the cost of maintaining the Department
Sec. 5. Minnesota Statutes 2008, section 325E.311, subdivision 6, is amended to read:
Subd. 6. Telephone solicitation.
"Telephone solicitation" means any voice
communication over a telephone line for the purpose of encouraging the purchase or
rental of, or investment in, property, goods, or services, whether the communication is
made by a live operator, through the use of an automatic dialing-announcing device as
defined in section
325E.26, subdivision 2
, or by other means. Telephone solicitation
does not include communications:
(1) to any residential subscriber with that subscriber's prior express invitation or
(2) by or on behalf of any person or entity with whom a residential subscriber has a
prior or current business or personal relationship.
Telephone solicitation also does not include communications if the caller is identified by a
caller identification service and the call is:
(i) by or on behalf of an organization that is identified as a nonprofit organization
under state or federal law, unless the organization is a debt management services provider
defined in section
332A.02 or a debt settlement services provider defined in section
(ii) by a person soliciting without the intent to complete, and who does not in
fact complete, the sales presentation during the call, but who will complete the sales
presentation at a later face-to-face meeting between the solicitor who makes the call
and the prospective purchaser; or
(iii) by a political party as defined under section
200.02, subdivision 6
Sec. 6. Minnesota Statutes 2008, section 332A.02, is amended by adding a subdivision
127.6 Subd. 2a. Advertise. "Advertise" means to solicit business through any means or
Sec. 7. Minnesota Statutes 2008, section 332A.02, subdivision 5, is amended to read:
Subd. 5. Controlling or affiliated party.
"Controlling or affiliated party" means
any person or entity that controls or is controlled,
directly or indirectly
127.11 controlled by
, or is
under common control with another person. Controlling or affiliated
127.12party includes, but is not limited to, employees, officers, independent contractors,
127.13corporations, partnerships, and limited liability corporations.
Sec. 8. Minnesota Statutes 2008, section 332A.02, is amended by adding a subdivision
127.16 Subd. 5a. Creditor. "Creditor" means any party:
127.17(1) named by the debtor as a creditor in the debt management services plan or debt
127.18management services agreement;
127.19(2) that acquires or holds the debt; or
127.20(3) to whom interactions with the debt management services is assigned in relation
127.21to the debt listed in the debt management services plan or debt management services
Sec. 9. Minnesota Statutes 2008, section 332A.02, subdivision 8, is amended to read:
Subd. 8. Debt management services provider.
"Debt management services
provider" means any person offering or providing debt management services to a debtor
domiciled in this state, regardless of whether or not a fee is charged for the services and
regardless of whether the person maintains a physical presence in the state. This term
127.28includes any person to whom debt management services are delegated, and
include services performed by the following when engaged in the regular course of their
respective businesses and professions:
(1) attorneys at law, escrow agents, accountants, broker-dealers in securities;
(2) state or national banks, credit unions,
trust companies, savings associations,
title insurance companies, insurance companies, and all other lending institutions duly
authorized to transact business in Minnesota
, provided no fee is charged for the service
(3) persons who, as employees on a regular salary or wage of an employer not
engaged in the business of debt management, perform credit services for their employer;
(4) public officers acting in their official capacities and persons acting as a debt
management services provider pursuant to court order;
(5) any person while performing services incidental to the dissolution, winding up,
or liquidation of a partnership, corporation, or other business enterprise;
(6) the state, its political subdivisions, public agencies, and their employees;
credit unions and
collection agencies, provided
no fee is charged for the service
128.12that the services are provided to a creditor
(8) "qualified organizations" designated as representative payees for purposes of the
Social Security and Supplemental Security Income Representative Payee System and the
federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508;
(9) accelerated mortgage payment providers. "Accelerated mortgage payment
providers" are persons who, after satisfying the requirements of sections
, receive funds to make mortgage payments to a lender or lenders, on behalf
of mortgagors, in order to exceed regularly scheduled minimum payment obligations
under the terms of the indebtedness. The term does not include: (i) persons or entities
described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and
thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to
make loans under section
47.20, subdivision 1
. For purposes of this clause and sections
, "lender" means the original lender or that lender's assignee, whichever
is the current mortgage holder;
(10) trustees, guardians, and conservators; and
(11) debt settlement services
Sec. 10. Minnesota Statutes 2008, section 332A.02, subdivision 9, is amended to read:
Subd. 9. Debt management services.
"Debt management services" means the
provision of any
one or more of the following
in connection with debt incurred
128.31 primarily for personal, family, or household services:
128.32 (1) managing the financial affairs of an individual by distributing income or money
128.33 to the individual's creditors;
128.34 (2) receiving funds for the purpose of distributing the funds among creditors in
128.35 payment or partial payment of obligations of a debtor; or
129.1 (3) adjusting, prorating, pooling, or liquidating the indebtedness of a debtor whereby
129.2a debt management services provider assists in managing the financial affairs of a debtor
129.3by distributing periodic payments to the debtor's creditors from funds that the debt
129.4management services provider receives from the debtor and where the primary purpose of
129.5the services is to effect full repayment of debt incurred primarily for personal, family, or
Any person so engaged or holding out as so engaged is deemed to be engaged in the
provision of debt management services regardless of whether or not a fee is charged for
Sec. 11. Minnesota Statutes 2008, section 332A.02, subdivision 10, is amended to read:
Subd. 10. Debtor.
"Debtor" means the person for whom the debt
129.12 is management services are
Sec. 12. Minnesota Statutes 2008, section 332A.02, subdivision 13, is amended to read:
Subd. 13. Debt settlement services provider.
"Debt settlement services
means any person engaging in or holding out as engaging in the business of negotiating,
129.16 adjusting, or settling debt incurred primarily for personal, family, or household purposes
129.17 without holding or receiving the debtor's funds or personal property and without paying
129.18 the debtor's funds to, or distributing the debtor's property among, creditors has the
129.19meaning given in section 332B.02, subdivision 11
The term shall not include persons
129.20 listed in subdivision 8, clauses (1) to (10).
Sec. 13. Minnesota Statutes 2008, section 332A.04, subdivision 6, is amended to read:
Subd. 6. Right of action on bond.
If the registrant has failed to account to a debtor
or distribute to the debtor's creditors the amounts required by this chapter
and, or has
129.24failed to perform any of the services promised in
the debt management services agreement
between the debtor and registrant
, the registrant is in default.
The debtor or the debtor's
legal representative or receiver, the commissioner, or the attorney general, shall have, in
addition to all other legal remedies, a right of action in the name of the debtor on the bond
or the security given under this section, for loss suffered by the debtor, not exceeding the
face amount of the bond or security, and without the necessity of joining the registrant
in the suit or action based on the default
Sec. 14. Minnesota Statutes 2008, section 332A.08, is amended to read:
129.32332A.08 DENIAL OF REGISTRATION.
The commissioner, with notice to the applicant by certified mail sent to the address
listed on the application, may deny an application for a registration upon finding that
(1) has submitted an application required under section
incorrect, misleading, incomplete, or materially untrue information. An application is
incomplete if it does not include all the information required in section
(2) has failed to pay any fee or pay or maintain any bond required by this chapter,
or failed to comply with any order, decision, or finding of the commissioner made under
and within the authority of this chapter;
(3) has violated any provision of this chapter or any rule or direction lawfully made
by the commissioner under and within the authority of this chapter;
(4) or any controlling or affiliated party has ever been convicted of a crime or found
civilly liable for an offense involving moral turpitude, including forgery, embezzlement,
obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any
other similar offense or violation, or any violation of a federal or state law or regulation
in connection with activities relating to the rendition of debt management services or
any consumer fraud, false advertising, deceptive trade practices, or similar consumer
(5) has had a registration or license previously revoked or suspended in this state or
any other state or the applicant or licensee has been permanently or temporarily enjoined
by any court of competent jurisdiction from engaging in or continuing any conduct or
practice involving any aspect of the debt management services provider business; or
any controlling or affiliated party has been an officer, director, manager, or shareholder
owning more than a ten percent interest in a debt management services provider whose
registration has previously been revoked or suspended in this state or any other state, or
who has been permanently or temporarily enjoined by any court of competent jurisdiction
from engaging in or continuing any conduct or practice involving any aspect of the debt
management services provider business;
(6) has made any false statement or representation to the commissioner;
(7) is insolvent;
(8) refuses to fully comply with an investigation or examination of the debt
management services provider by the commissioner;
(9) has improperly withheld, misappropriated, or converted any money or properties
received in the course of doing business;
(10) has failed to have a trust account with an actual cash balance equal to or greater
than the sum of the escrow balances of each debtor's account;
(11) has defaulted in making payments to creditors on behalf of debtors as required
by agreements between the provider and debtor;
(12) has used fraudulent, coercive, or dishonest practices, or demonstrated
incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere; or
131.5(13) has been shown to have engaged in a pattern of failing to perform the services
Sec. 15. Minnesota Statutes 2008, section 332A.10, is amended to read:
131.8332A.10 WRITTEN DEBT MANAGEMENT SERVICES AGREEMENT.
Subdivision 1. Written agreement required. (a)
A debt management services
provider may not perform any debt management services or receive any money related
to a debt management services plan until the provider has obtained a debt management
services agreement that contains all terms of the agreement between the debt management
services provider and the debtor.
A debt management services agreement must:
be in writing, dated, and signed by the debt management services provider and
131.17(2) conspicuously indicate whether or not the debt management services provider
131.18is registered with the Minnesota Department of Commerce and include any registration
131.20(3) be written in the debtor's primary language if the debt management services
131.21provider advertised in that language
The registrant must furnish the debtor with a copy of the signed contract upon
Subd. 2. Actions prior to written agreement.
No person may provide debt
management services for a debtor or execute a debt management services agreement
unless the person first has:
(1) provided the debtor individualized counseling and educational information
that, at a minimum, addresses managing household finances, managing credit and debt,
budgeting, and personal savings strategies;
(2) prepared in writing and provided to the debtor, in a form that the debtor may
keep, an individualized financial analysis and a proposed debt management services
plan listing the debtor's known debts with specific recommendations regarding actions
the debtor should take to reduce or eliminate the amount of the debts, including written
disclosure that debt management services are not suitable for all debtors and that there are
other ways, including bankruptcy, to deal with indebtedness;
(3) made a determination supported by an individualized financial analysis that the
debtor can reasonably meet the requirements of the proposed debt management services
plan and that there is a net tangible benefit to the debtor of entering into the proposed debt
management services plan;
(4) prepared, in a form the debtor may keep, a written list identifying all known
creditors of the debtor that the provider reasonably expects to participate in the plan
and the creditors, including secured creditors, that the provider reasonably expects not
to participate; and
132.9(5) disclosed, in addition to the written disclosure on the agreement required under
132.10subdivision 1, whether or not the debt management services provider is registered with the
132.11Minnesota Department of Commerce and any registration number
Subd. 3. Required terms.
(a) Each debt management services agreement must
contain the following terms, which must be disclosed prominently and clearly in bold print
on the front page of the agreement, segregated by bold lines from all other information on
(1) the origination
fee amount to be paid by the debtor and whether all or a portion
is refundable or nonrefundable;
(2) the monthly fee amount or percentage to be paid by the debtor; and
(3) the total amount of fees reasonably anticipated to be paid by the debtor over
the term of the agreement.
(b) Each debt management services agreement must also contain the following:
(1) a disclosure that if the amount of debt owed is increased by interest, late fees,
over the limit fees, and other amounts imposed by the creditors, the length of the debt
management services agreement will be extended and remain in force and that the total
dollar charges agreed upon may increase at the rate agreed upon in the original contract
(2) a prominent statement describing the terms upon which the debtor may cancel
the contract as set forth in section
(3) a detailed description of all services to be performed by the debt management
services provider for the debtor;
(4) the debt management services provider's refund policy; and
(5) the debt management services provider's principal business address and the name
and address of its agent in this state authorized to receive service of process.
Subd. 4. Prohibited terms.
The following terms shall not be included in the debt
management services agreement:
(1) a hold harmless clause;
(2) a confession of judgment, or a power of attorney to confess judgment against the
debtor or appear as the debtor in any judicial proceeding;
(3) a waiver of the right to a jury trial, if applicable, in any action brought by
or against a debtor;
(4) an assignment of or an order for payment of wages or other compensation for
(5) a provision in which the debtor agrees not to assert any claim or defense arising
out of the debt management services agreement;
(6) a waiver of any provision of this chapter or a release of any obligation required
to be performed on the part of the debt management services provider; or
(7) a mandatory arbitration clause or a clause selecting a law other than the laws of
133.12Minnesota under which the debt management services agreement or any other dispute
133.13involving the provision of debt management services is governed or enforced
Subd. 5. New debt management services agreements; modification of existing
(a) Separate and additional debt management services agreements that
comply with this chapter may be entered into by the debt management services provider
and the debtor provided that no additional
fee may be charged by the
debt management services provider.
(b) Any modification of an existing debt management services agreement, including
any increase in the number or amount of debts included in the debt management
, must be in writing and signed by both parties, except that the signature
of the debtor is not required if:
(1) a creditor is added to or deleted from a debt management services agreement
at the request of the debtor or a debtor voluntarily increases the amount of a payment,
provided the debt management services provider must provide an updated payment
schedule to the debtor within seven days; or
(2) the payment amount to a creditor in the agreement increases by $10 or less
and the total payment amount to all creditors increases a total of $20 or less as a result
of incorrect or incomplete information provided by the debtor regarding the amount of
debt owed a creditor, provided the debt management services provider must notify the
debtor of the increase within seven days.
No fees, charges, or other consideration may be demanded from the debtor for
the modification, other than an increase in the amount of the monthly maintenance fee
established in the original debt management services agreement.
Sec. 16. Minnesota Statutes 2008, section 332A.11, subdivision 2, is amended to read:
Subd. 2. Notice of debtor's right to cancel.
A debt management services
agreement must contain, on its face, in an easily readable
adjacent to the space for signature by the debtor, the following notice: "Right To Cancel:
You have the right to cancel this contract at any time on ten days' written notice."
Sec. 17. Minnesota Statutes 2008, section 332A.14, is amended to read:
A registrant No debt management services provider
(1) purchase from a creditor any obligation of a debtor;
(2) use, threaten to use, seek to have used, or seek to have threatened the use of any
legal process, including but not limited to garnishment and repossession of personal
property, against any debtor while the debt management services agreement between the
registrant and the debtor remains executory;
(3) advise, counsel, or encourage
a debtor to stop paying a creditor
until a debt
134.14 management services plan is in place, or imply, infer, encourage, or in any other way
134.15indicate, that it is advisable to stop paying a creditor
134.16(4) sanction or condone the act by a debtor of ceasing payments or imply, infer,
134.17or in any manner indicate that the act of ceasing payments is advisable or beneficial to
require as a condition of performing debt management services the purchase
of any services, stock, insurance, commodity, or other property or any interest therein
either by the debtor or the registrant;
compromise any debts unless the prior written or contractual
approval of the
debtor has been obtained to such compromise and unless such compromise inures solely
to the benefit of the debtor;
receive from any debtor as security or in payment of any fee a promissory
note or other promise to pay or any mortgage or other security, whether as to real or
lend money or provide credit to any debtor if any interest or fee is charged,
or directly or indirectly collect any fee for referring, advising, procuring, arranging, or
assisting a consumer in obtaining any extension of credit or other debtor service from a
lender or debt management services provider;
structure a debt management services agreement that would result in negative
amortization of any debt in the plan;
engage in any unfair, deceptive, or unconscionable act or practice in
connection with any service provided to any debtor;
offer, pay, or give any material cash fee, gift, bonus, premium, reward, or
other compensation to any person for referring any prospective customer to the registrant
or for enrolling a debtor in a debt management services plan, or provide any other
incentives for employees or agents of the debt management services provider to induce
debtors to enter into a debt management services plan;
receive any cash, fee, gift, bonus, premium, reward, or other compensation
from any person other than the debtor or a person on the debtor's behalf in connection
with activities as a registrant, provided that this paragraph does not apply to a registrant
which is a bona fide nonprofit corporation duly organized under chapter 317A or under
the similar laws of another state;
enter into a contract with a debtor unless a thorough written budget analysis
indicates that the debtor can reasonably meet the requirements of the financial adjustment
plan and will be benefited by the plan;
in any way charge or purport to charge or provide any debtor credit
insurance in conjunction with any contract or agreement involved in the debt management
operate or employ a person who is an employee or owner of a collection
agency or process-serving business; or
solicit, demand, collect, require, or attempt to require payment of a sum
that the registrant states, discloses, or advertises to be a voluntary contribution to a debt
135.21management services provider or designee
from the debtor.
Sec. 18. Minnesota Statutes 2008, section 332A.16, is amended to read:
135.23332A.16 ADVERTISEMENT OF DEBT MANAGEMENT SERVICES
No debt management services provider may make false, deceptive, or misleading
statements or omissions about the rates, terms, or conditions of an actual or proposed
debt management services plan or its debt management services, or create the likelihood
of consumer confusion or misunderstanding regarding its services, including but not
limited to the following:
(1) represent that the debt management services provider is a nonprofit,
not-for-profit, or has similar status or characteristics if some or all of the debt management
services will be provided by a for-profit company that is a controlling or affiliated party to
the debt management services provider; or
(2) make any communication that gives the impression that the debt management
services provider is acting on behalf of a government agency.
Sec. 19. [332B.02] DEFINITIONS.
136.2 Subdivision 1. Scope. Unless a different meaning is clearly indicated by the context,
136.3for the purposes of this chapter, the terms defined in this section have the meanings given
136.5 Subd. 2. Accreditation. "Accreditation" means certification as an accredited credit
136.6counseling provider by the Council on Accreditation, the Bureau Veritas Certification
136.7North America, Inc., or BSI Management Systems America, Inc.
136.8 Subd. 3. Advertise. "Advertise" means to solicit business through any means or
136.10 Subd. 4. Aggregate debt. "Aggregate debt" means the total of principal and interest
136.11that is owed by the debtor to the creditors at the time of execution of the debt settlement
136.13 Subd. 5. Attorney general. "Attorney general" means the attorney general of the
136.14state of Minnesota.
136.15 Subd. 6. Commissioner. "Commissioner" means the commissioner of commerce.
136.16 Subd. 7. Controlling or affiliated party. "Controlling or affiliated party" means
136.17any person or entity that controls or is controlled, directly or indirectly, or is under
136.18common control with another person. Controlling or affiliated party includes, but is not
136.19limited to, employees, officers, independent contractors, corporations, partnerships, and
136.20limited liability corporations.
136.21 Subd. 8. Credit counseling. "Credit counseling" means the provision of counseling
136.22and advice on managing household finances, including but not limited to, managing credit
136.23and debt, budgeting, and personal savings.
136.24 Subd. 9. Creditor. "Creditor" means any party:
136.25(1) named by the debtor as a creditor in the debt settlement services plan or debt
136.26settlement services agreement;
136.27(2) that acquires or holds the debt; or
136.28(3) to whom interactions with the debt settlement services is assigned in relation to
136.29the debt listed in the debt settlement services plan or debt settlement services agreement.
136.30 Subd. 10. Debt settlement services. "Debt settlement services" means any one or
136.31more of the following activities:
136.32(1) offering to provide advice, or offering to act or acting as an intermediary between
136.33a debtor and one or more of the debtor's creditors, where the primary purpose of the
136.34advice or action is to obtain a settlement for less than the full amount of debt, whether
137.1in principal, interest, fees, or other charges, incurred primarily for personal, family, or
137.2household purposes including, but not limited to, offering debt negotiation, debt reduction,
137.3or debt relief services; or
137.4(2) advising, encouraging, assisting, or counseling a debtor to accumulate funds in
137.5an account for future payment of a reduced amount of debt to one or more of the debtor's
137.7Any person so engaged or holding out as so engaged is deemed to be engaged in
137.8the provision of debt settlement services, regardless of whether or not a fee is charged for
137.10 Subd. 11. Debt settlement services agreement. "Debt settlement services
137.11agreement" means the written contract between the debt settlement services provider
137.12and the debtor.
137.13 Subd. 12. Debt settlement services plan. "Debt settlement services plan" means
137.14the debtor's individualized package of debt settlement services set forth in the debt
137.15settlement services agreement.
137.16 Subd. 13. Debt settlement services provider. "Debt settlement services provider"
137.17means any person offering or providing debt settlement services to a debtor domiciled
137.18in this state, regardless of whether or not a fee is charged for the services and regardless
137.19of whether the person maintains a physical presence in the state. The term includes
137.20any person to whom debt settlement duties are delegated. The term shall not include
137.21persons listed in section 332A.02, subdivision 8, clauses (1) to (10), or a debt management
137.23 Subd. 14. Lead generator. "Lead generator" means a person that, without providing
137.24debt settlement services: (1) solicits debtors to engage in debt settlement through mail,
137.25in person, or electronic Web site-based solicitation or any other means, (2) acts as an
137.26intermediary or referral agent between a debtor and an entity actually providing debt
137.27settlement services, or (3) obtains a debtor's personally identifiable information and
137.28transmits that information to a debt settlement services provider.
137.29 Subd. 15. Person. "Person" means an individual, firm, partnership, association,
137.31 Subd. 16. Registrant. "Registrant" means any person registered by the
137.32commissioner pursuant to this chapter and, where used in conjunction with an act or
137.33omission required or prohibited by this chapter, shall mean any person performing debt
Sec. 20. [332B.03] REQUIREMENT OF REGISTRATION.
138.2On or after August 1, 2009, it is unlawful for any person, whether or not located
138.3in this state, to operate as a debt settlement services provider or provide debt settlement
138.4services including, but not limited to, offering, advertising, or executing or causing to be
138.5executed any debt settlement services or debt settlement services agreement, except as
138.6authorized by law, without first becoming registered as provided in this chapter. Debt
138.7settlement services providers may continue to provide debt settlement services without
138.8complying with this chapter to those debtors who entered into a contract to participate
138.9in a debt settlement services plan prior to August 1, 2009, but may not enter into a debt
138.10settlement services agreement with a debt on or after August 1, 2009, without complying
138.11with this chapter.
Sec. 21. [332B.04] REGISTRATION.
138.13 Subdivision 1. Form. Application for registration to operate as a debt settlement
138.14services provider in this state must be made in writing to the commissioner, under oath, in
138.15the form prescribed by the commissioner, and must contain:
138.16(1) the full name of each principal of the entity applying;
138.17(2) the address, which must not be a post office box, and the telephone number and,
138.18if applicable, the e-mail address, of the applicant;
138.19(3) consent to the jurisdiction of the courts of this state;
138.20(4) the name and address of the registered agent authorized to accept service of
138.21process on behalf of the applicant or appointment of the commissioner as the applicant's
138.22agent for purposes of accepting service of process;
138.23(5) disclosure of:
138.24(i) whether any controlling or affiliated party has ever been convicted of a crime
138.25or found civilly liable for an offense involving moral turpitude, including forgery,
138.26embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to
138.27defraud, or any other similar offense or violation, or any violation of a federal or state
138.28law or regulation in connection with activities relating to the rendition of debt settlement
138.29services or involving any consumer fraud, false advertising, deceptive trade practices, or
138.30similar consumer protection law;
138.31(ii) any judgments, private or public litigation, tax liens, written complaints,
138.32administrative actions, or investigations by any government agency against the applicant
138.33or any officer, director, manager, or shareholder owning more than five percent interest
138.34in the applicant, unresolved or otherwise, filed or otherwise commenced within the
138.35preceding ten years;
139.1(iii) whether the applicant or any person employed by the applicant has had a record
139.2of having defaulted in the payment of money collected for others, including the discharge
139.3of debts through bankruptcy proceedings; and
139.4(iv) whether the applicant's license or registration to provide debt settlement services
139.5in any other state has ever been revoked or suspended;
139.6(6) a copy of the applicant's standard debt settlement services agreement that the
139.7applicant intends to execute with debtors;
139.8(7) proof of accreditation, unless the applicant submits an affidavit attesting that the
139.9applicant does not provide credit counseling services; and
139.10(8) any other information and material as the commissioner may require.
139.11The commissioner may, for good cause shown, temporarily waive any requirement
139.12of this subdivision.
139.13 Subd. 2. Term and scope of registration. A registration is effective until 11:59
139.14p.m. on December 31 of the year for which the application for registration is filed or until
139.15it is surrendered by the registrant or revoked or suspended by the commissioner. The
139.16registration is limited solely to the business of providing debt settlement services.
139.17 Subd. 3. Fees; bond. An applicant for registration as a debt settlement services
139.18provider must comply with the requirements of section 332A.04, subdivisions 3, 4, and 5.
139.19 Subd. 4. Right of action on bond. If the registrant has failed to account to a debtor,
139.20or has failed to perform any of the services promised, the registrant is in default. The
139.21debtor or the debtor's legal representative or receiver, the commissioner, or the attorney
139.22general, shall have, in addition to all other legal remedies, a right of action in the name of
139.23the debtor on the bond or the security given under this section, for loss suffered by the
139.24debtor, not exceeding the face amount of the bond or security, and without the necessity of
139.25joining the registrant in the suit or action based on the default.
139.26 Subd. 5. Registrant list. The commissioner must maintain a list of registered debt
139.27settlement services providers. The list must be made available to the public in written
139.28form upon request and on the Department of Commerce Web site.
139.29 Subd. 6. Renewal of registration. Each year, each registrant under the provisions
139.30of this chapter must, not more than 60 nor less than 30 days before its registration is to
139.31expire, apply to the commissioner for renewal of its registration on a form prescribed by
139.32the commissioner. The application must be signed by the registrant under penalty of
139.33perjury, contain current information on all matters required in the original application, and
139.34be accompanied by a payment of $250. The registrant must maintain a continuous surety
139.35bond that satisfies the requirements of section 332A.04, subdivision 4. The renewal is
140.1effective for one year. The commissioner may, for good cause shown, temporarily waive
140.2any requirement of this section.
Sec. 22. [332B.05] DENIAL, SUSPENSION, REVOCATION, OR
140.4NONRENEWAL OF REGISTRATION.
140.5 Subdivision 1. Denial. The commissioner, with notice to the applicant by certified
140.6mail sent to the address listed on the application, may deny an application for a registration
140.7for any of the reasons specified under section 332A.08.
140.8 Subd. 2. Suspension, revocation, or nonrenewal. The commissioner may suspend,
140.9revoke, or refuse to renew any registration issued under this chapter, or may levy a civil
140.10penalty under section 45.027, or any combination of actions, if the debt settlement services
140.11provider or any controlling or affiliated person has committed any act or omission for
140.12which the commissioner could have refused to issue an initial registration.
140.13 Subd. 3. Procedure. Suspension, revocation, or nonrenewal must be upon notice
140.14and under the conditions prescribed in section 332A.09, subdivision 1. Upon issuance of
140.15an order suspending, revoking, or refusing to renew a registration, the commissioner:
140.16(1) shall follow the procedure established in section 332A.09, subdivision 2; and
140.17(2) may follow the procedure specified in section 332A.09, subdivision 3, concerning
140.18the appointment of a receiver for funds of sanctioned registrants.
Sec. 23. [332B.06] WRITTEN DEBT SETTLEMENT SERVICES AGREEMENT;
140.20DISCLOSURES; TRUST ACCOUNT.
140.21 Subdivision 1. Written agreement required. (a) A debt settlement services
140.22provider may not perform, or impose any charges or receive any payment for, any debt
140.23settlement services until the provider and the debtor have executed a debt settlement
140.24services agreement that contains all terms of the agreement between the debt settlement
140.25services provider and the debtor and complies with all the applicable requirements of
140.27(b) A debt settlement services agreement must:
140.28(1) be in writing, dated, and signed by the debt settlement services provider and
140.30(2) conspicuously indicate whether or not the debt settlement services provider is
140.31registered with the Minnesota Department of Commerce and include any registration
140.33(3) be written in the debtor's primary language if the debt settlement services
140.34provider advertises in that language.
141.1(c) The registrant must furnish the debtor with a copy of the signed contract upon
141.3 Subd. 2. Actions prior to executing a written agreement. No person may provide
141.4debt settlement services for a debtor or execute a debt settlement services agreement
141.5unless the person first has:
141.6(1) informed the debtor, in writing, that debt settlement is not appropriate for all
141.7debtors and that there are other ways to deal with debt, including using credit counseling
141.8or debt management services, or filing bankruptcy;
141.9(2) prepared in writing and provided to the debtor, in a form the debtor may keep,
141.10an individualized financial analysis of the debtor's financial circumstances, including
141.11income and liabilities, and made a determination supported by the individualized financial
141.13(i) the debt settlement plan proposed for addressing the debt is suitable for the
141.15(ii) the debtor can reasonably meet the requirements of the proposed debt settlement
141.16services plan; and
141.17(iii) based on the totality of the circumstances, there is a net tangible benefit to the
141.18debtor of entering into the proposed debt settlement services plan; and
141.19(3) provided, on a document separate from any other document, the total amount and
141.20an itemization of fees, including any origination fees, monthly fees, and settlement fees
141.21reasonably anticipated to be paid by the debtor over the term of the agreement.
141.22 Subd. 3. Determination concerning creditor participation. (a) Before executing a
141.23debt settlement services agreement or providing any services, a debt settlement services
141.24provider must make a determination, supported by sufficient bases, which creditors listed
141.25by the debtor are reasonably likely, and which are not reasonably likely, to participate in
141.26the debt settlement services plan set forth in the debt settlement services agreement.
141.27(b) A debt settlement services provider has a defense against a claim that no
141.28sufficient basis existed to make a determination that a creditor was likely to participate if
141.29the debt settlement services provider can produce:
141.30(1) written confirmation from the creditor that, at the time the determination was
141.31made, the creditor and the debt settlement services provider were engaged in negotiations
141.32to settle a debt for another debtor; or
141.33(2) evidence that the provider and the creditor had entered into a settlement of a debt
141.34within the six months prior to the date of the determination.
141.35(c) The debt settlement services provider must notify the debtor as soon as
141.36practicable after the provider has made a determination of the likelihood of participation
142.1or nonparticipation of all the creditors listed for inclusion in the debt settlement services
142.2agreement or debt settlement services plan. If not all creditors listed in the debt settlement
142.3services agreement are reasonably likely to participate in the debt settlement services plan,
142.4the debt settlement services provider must obtain the written authorization from the debtor
142.5to proceed with the debt settlement services agreement without the likely participation of
142.6all listed creditors.
142.7 Subd. 4. Disclosures. (a) A person offering to provide or providing debt settlement
142.8services must disclose both orally and in writing whether or not the person is registered
142.9with the Minnesota Department of Commerce and any registration number.
142.10(b) No person may provide debt settlement services unless the person first has
142.11provided, both orally and in writing, on a single sheet of paper, separate from any other
142.12document or writing, the following verbatim notice:
142.14We CANNOT GUARANTEE that you will successfully reduce or eliminate your
142.16If you stop paying your creditors, there is a strong likelihood some or all of the
142.17following may happen:
142.18• YOUR WAGES OR BANK ACCOUNT MAY STILL BE GARNISHED.
142.19• YOU MAY STILL BE CONTACTED BY CREDITORS.
142.20• YOU MAY STILL BE SUED BY CREDITORS for the money you owe.
142.21• FEES, INTEREST, AND OTHER CHARGES WILL CONTINUE TO MOUNT
142.22UP DURING THE (INSERT NUMBER) MONTHS THIS PLAN IS IN EFFECT.
142.23Even if we do settle your debt, YOU MAY STILL HAVE TO PAY TAXES on
142.24the amount forgiven.
142.25Your credit rating may be adversely affected.
142.26(c) The heading, "CAUTION," must be in bold, underlined, 28-point type, and the
142.27remaining text must be in 14-point type, with a double space between each statement.
142.28(d) The disclosures and notices required under this subdivision must be provided
142.29in the debtor's primary language if the debt settlement services provider advertises in
142.31 Subd. 5. Required terms. (a) Each debt settlement services agreement must contain
142.32on the front page of the agreement, segregated by bold lines from all other information
142.33on the page and disclosed prominently and clearly in bold print, the total amount and an
142.34itemization of fees, including any origination fees, monthly fees, and settlement fees
142.35reasonably anticipated to be paid by the debtor over the term of the agreement.
142.36(b) Each debt settlement services agreement must also contain the following:
143.1(1) a prominent statement describing the terms upon which the debtor may cancel
143.2the contract as set forth in section 332B.07;
143.3(2) a detailed description of all services to be performed by the debt settlement
143.4services provider for the debtor;
143.5(3) the debt settlement services provider's refund policy;
143.6(4) the debt settlement services provider's principal business address, which must
143.7not be a post office box, and the name and address of its agent in this state authorized to
143.8receive service of process; and
143.9(5) the name of each creditor the debtor has listed and the aggregate debt owed to
143.10each creditor that will be the subject of settlement.
143.11 Subd. 6. Prohibited terms. A debt settlement services agreement may not contain
143.12any of the terms prohibited under section 332A.10, subdivision 4.
143.13 Subd. 7. New debt settlement services agreements; modifications of existing
143.14agreements. (a) Separate and additional debt settlement services agreements that comply
143.15with this chapter may be entered into by the debt settlement services provider and the
143.16debtor, provided that no additional origination fee may be charged by the debt settlement
143.18(b) Any modification of an existing debt settlement services agreement, including
143.19any increase in the number or amount of debts included in the debt settlement services
143.20agreement, must be in writing and signed by both parties. No fee may be charged to
143.21modify an existing agreement.
143.22 Subd. 8. Funds held in trust. Debtor funds may be held in trust for the purpose
143.23of writing exchange checks for no longer than 42 days. If the registrant holds debtor
143.24funds, the registrant must maintain a separate trust account, except that the registrant may
143.25commingle debtor funds with the registrant's own funds, in the form of an imprest fund,
143.26to the extent necessary to ensure maintenance of a minimum balance, if the financial
143.27institution at which the trust account is held requires a minimum balance to avoid the
143.28assessment of fees or penalties for failure to maintain a minimum balance.
Sec. 24. [332B.07] RIGHT TO CANCEL.
143.30 Subdivision 1. Debtor's right to cancel. (a) A debtor has the right to cancel a debt
143.31settlement services agreement without cause at any time upon ten days' written notice
143.32to the debt settlement services provider.
143.33(b) In the event of cancellation, the debt settlement services provider must, within
143.34ten days of the cancellation, notify the debtor's creditors with whom the debt settlement
144.1services provider is or has been, under the terms of the debt settlement agreement, in
144.2communication, of the cancellation and immediately refund all fees paid by the debtor to
144.3the debt settlement services provider that exceed the fees allowed under section 332B.09.
144.4(c) Upon cancellation, the debt settlement services provider must cease collection of
144.5any monthly fees beginning in the month following cancellation.
144.6 Subd. 2. Notice of debtor's right to cancel. A debt settlement services agreement
144.7must contain, on its face, in an easily readable type immediately adjacent to the space for
144.8signature by the debtor, the following notice: "Right to Cancel: You have the right to
144.9cancel this contract at any time on ten days' written notice."
144.10 Subd. 3. Automatic termination. Upon the payment of all listed or settled debts
144.11and fees, the debt settlement services agreement must automatically terminate, and all
144.12funds held by the debt settlement services provider that exceed the fees allowed under
144.13section 332B.09 must be immediately returned to the debtor.
144.14 Subd. 4. Debt settlement services provider's right to cancel. (a) A debt settlement
144.15services provider may cancel a debt settlement services agreement with good cause upon
144.1630 days' written notice to the debtor.
144.17(b) Within ten days after the cancellation, the debt settlement services provider
144.18must notify the debtor's creditors with whom the debt settlement services provider is or
144.19has been, under the terms of the debt settlement services agreement, in communication,
144.20of the cancellation.
144.21(c) Upon cancellation, the debt settlement services provider must cease collection of
144.22any monthly fees beginning in the month following cancellation.
144.23(d) A debt settlement services provider is entitled to the full amount of the fees
144.24provided for in the debt settlement services agreement if the provider can show that:
144.25(1) the provider obtained a settlement offer from the creditor or creditors in
144.26accordance with the debt settlement services agreement;
144.27(2) the debtor rejected the settlement offer; or
144.28(3) within the period contemplated in the debt settlement services agreement, the
144.29debtor entered into a settlement agreement with the same creditor or creditors for an
144.30amount equal to or lower than the settlement offer obtained by the provider.
Sec. 25. [332B.08] BOOKS, RECORDS, AND INFORMATION.
144.32 Subdivision 1. Records retention; annual report. Every registrant must keep, and
144.33use in the registrant's business, such books, accounts, and records, including electronic
144.34records, as will enable the commissioner to determine whether the registrant is complying
145.1with this chapter and the rules, orders, and directives adopted by the commissioner under
145.2this chapter. Every registrant must preserve such books, accounts, and records for at least
145.3six years after making the final entry on any transaction recorded therein. Examinations
145.4of the books, records, and method of operations conducted under the supervision of the
145.5commissioner shall be done at the cost of the registrant. The cost must be assessed as
145.6determined under section 46.131.
145.7 Subd. 2. Annual report. On or before March 15 of each calendar year,
145.8each registrant must file a report with the commissioner containing information the
145.9commissioner may require about the preceding calendar year. The report must be in a
145.10form the commissioner prescribes.
145.11 Subd. 3. Statements to debtors. (a) Each registrant must:
145.12(1) maintain and make available records and accounts that will enable each debtor to
145.13ascertain the amounts paid to the creditors, if any. A statement showing amounts received
145.14from the debtor, disbursements, if any, to each creditor, amounts that any creditor has
145.15agreed to as payment in full for any debt owed the creditor by the debtor, fees deducted by
145.16the registrant, and other information the commissioner may prescribe, must be furnished
145.17by the registrant to the debtor at least monthly and, in addition, upon any cancellation or
145.18termination of the contract;
145.19(2) include in the statement furnished to debtors a list of all activities conducted
145.20pursuant to the contract, including the nature of communications and progress of
145.21negotiations with each creditor during the reporting period; and
145.22(3) prepare and retain in the file of each debtor a written analysis of the debtor's
145.23income and expenses to substantiate that the plan of payment is feasible and practicable.
145.24(b) Each debtor must have reasonable access, without cost, by electronic or other
145.25means, to information in the registrant's files applicable to the debtor. These statements,
145.26records, and accounts must otherwise remain confidential, except for duly authorized
145.27state and government officials, the commissioner, the attorney general, the debtor, and
145.28the debtor's representative and designees.
Sec. 26. [332B.09] FEES; WITHDRAWAL OF CREDITORS; NOTIFICATION
145.30TO DEBTOR OF SETTLEMENT OFFER.
145.31 Subdivision 1. Choice of fee structure. A debt settlement services provider may
145.32calculate fees on a percentage of debt basis or on a percentage of savings basis. The fee
145.33structure shall be clearly disclosed and explained in the debt settlement services agreement.
146.1 Subd. 2. Fees as a percentage of debt. (a) The total amount of the fees claimed,
146.2demanded, charged, collected, or received under this subdivision shall be calculated as
146.315 percent of the aggregate debt. A debt settlement services provider that calculates
146.4fees as a percentage of debt may:
146.5(1) charge an origination fee, which may be designated by the debt settlement
146.6services provider as nonrefundable, of:
146.7(i) $200 on aggregate debt of less than $20,000; or
146.8(ii) $400 on aggregate debt of $20,000 or more;
146.9(2) charge a monthly fee of:
146.10(i) no greater than $50 per month on aggregate debt of less than $40,000; and
146.11(ii) no greater than $60 per month on aggregate debt of $40,000 or more; and
146.12(3) charge a settlement fee for the remainder of the allowable fees, which may be
146.13demanded and collected no earlier than upon delivery to the debt settlement services
146.14provider by a creditor of a bona fide written settlement offer consistent with the terms of
146.15the debt settlement services agreement. A settlement fee may be assessed for each debt
146.16settled, but the sum total of the origination fee, the monthly fee, and the settlement fee
146.17may not exceed 15 percent of the aggregate debt.
146.18(b) When a settlement offer is obtained by a debt settlement services provider from a
146.19creditor, the collection of any monthly fees shall cease beginning the month following the
146.20month in which the settlement offer was obtained by the debt settlement services provider.
146.21(c) In no event may more than 40 percent of the total amount of fees allowable be
146.22claimed, demanded, charged, collected, or received by a debt settlement services provider
146.23any earlier than upon delivery to the debt settlement services provider by a creditor of
146.24a bona fide written settlement offer consistent with the terms of the debt settlement
146.26 Subd. 3. Fees as a percentage of savings. (a) The total amount of the fees claimed,
146.27demanded, charged, collected, or received under this subdivision shall be calculated as 30
146.28percent of the savings actually negotiated by the debt settlement services provider. The
146.29savings shall be calculated as the difference between the aggregate debt that is stated
146.30in the debt settlement services agreement at the time of its execution and total amount
146.31that the debtor actually pays to settle all the debts stated in the debt settlement services
146.32agreement, provided that only savings resulting from concessions actually negotiated by
146.33the debt settlement services provider may be counted. A debt settlement services provider
146.34that calculates fees as a percentage of debt may:
146.35(1) charge an origination fee, which may be designated by the debt settlement
146.36services provider as nonrefundable, of:
147.1(i) $300 on aggregate debt of less than $20,000; or
147.2(ii) $500 on aggregate debt of $20,000 or more;
147.3(2) charge a monthly fee of:
147.4(i) no greater than $65 on aggregate debt of less than $40,000; and
147.5(ii) no greater than $75 on aggregate debt of $40,000 or more; and
147.6(3) charge a settlement fee for the remainder of the allowable fees, which may be
147.7demanded and collected no earlier than upon delivery to the debt settlement services
147.8provider by a creditor of a bona fide, final written settlement offer consistent with the
147.9terms of the debt settlement services agreement. A settlement fee may be assessed for each
147.10debt settled, but the sum total of the origination fee, the monthly fee, and the settlement
147.11fee may not exceed 30 percent of the savings, as calculated under paragraph (a).
147.12(b) The collection of monthly fees shall cease under this subdivision when the
147.13total of monthly fees and the origination fee equals 50 percent of the total fees allowable
147.14under this subdivision. For the purposes of this subdivision, 50 percent of the total fees
147.15allowable shall assume a settlement of 50 cents on the dollar.
147.16(c) In no event may more than 50 percent of the total amount of fees allowable be
147.17claimed, demanded, charged, collected, or received by a debt settlement services provider
147.18any earlier than upon delivery to the debt settlement services provider by a creditor of a
147.19bona fide, final written settlement offer consistent with the terms of the debt settlement
147.21 Subd. 4. Fees exclusive. No fees, charges, assessments, or any other compensation
147.22may be claimed, demanded, charged, collected, or received other than the fees allowed
147.23under this section. Any fees collected in excess of those allowed under this section must
147.24be immediately returned to the debtor.
147.25 Subd. 5. Withdrawal of creditor. Whenever a creditor withdraws from a debt
147.26settlement services plan, the debt settlement services provider must promptly notify the
147.27debtor of the withdrawal, identify the creditor, and inform the debtor of the right to modify
147.28the debt settlement services agreement, unless at least 50 percent of the listed creditors
147.29withdraw, in which case the debt settlement services provider must notify the debtor of the
147.30debtor's right to cancel. In no case may this notice be provided more than 15 days after the
147.31debt settlement services provider learns of the creditor's decision to withdraw from a plan.
147.32 Subd. 6. Timely notification of settlement offer. A debt settlement services
147.33provider must make all reasonable efforts to notify the debtor within 24 hours of a
147.34settlement offer made by a creditor.
Sec. 27. [332B.10] PROHIBITIONS.
148.1No debt settlement services provider shall:
148.2(1) engage in any activity, act, or omission prohibited under section 332A.14;
148.3(2) promise, guarantee, or directly or indirectly imply, infer, or in any manner
148.4represent that any debt will be settled prior to the presentation to the debtor of an offer by
148.5the creditors participating in the debt settlement plan to settle;
148.6(3) misrepresent the timing of negotiations with creditors;
148.7(4) imply, infer, or in any manner represent that:
148.8(i) fees, interest, and other charges will not continue to accrue prior to the time
148.9debts are settled;
148.10(ii) wages or bank accounts are not subject to garnishment;
148.11(iii) creditors will not continue to contact the debtor;
148.12(iv) the debtor is not subject to legal action; and
148.13(v) the debtor will not be subject to tax consequences for the portion of any debts
148.15(5) execute a power of attorney or any other agreement, oral or written, express
148.16or implied, that extinguishes or limits the debtor's right at any time to contract or
148.17communicate with any creditor or the creditor's right at any time to communicate with
148.19(6) exercise or attempt to exercise a power of attorney after an individual has
148.20terminated an agreement;
148.21(7) state, imply, infer, or, in any other manner, indicate that entering into a debt
148.22settlement services agreement or settling debts will either have no effect on, or improve,
148.23the debtor's credit, credit rating, and credit score;
148.24(8) challenge a debt without the written consent of the debtor;
148.25(9) make any false or misleading claim regarding a creditor's right to collect a debt;
148.26(10) falsely represent that the debt settlement services provider can negotiate better
148.27settlement terms with a creditor than the debtor alone can negotiate;
148.28(11) provide or offer to provide legal advice or legal services unless the person
148.29providing or offering to provide legal advice is licensed to practice law in the state;
148.30(12) misrepresent that it is authorized or competent to furnish legal advice or
148.31perform legal services; and
148.32(13) settle a debt or lead an individual to believe that a payment to a creditor is in
148.33settlement of a debt to the creditor unless, at the time of settlement, the individual receives
148.34a certification from the creditor that the payment is in full settlement of the debt.
Sec. 28. [332B.11] ADVERTISEMENT AND SOLICITATION OF DEBT
149.3 Subdivision 1. Advertisement. No debt settlement services provider or lead
149.5(1) make any false, deceptive, or misleading statements or omissions about the rates,
149.6terms, or conditions of an actual or proposed debt settlement services plan, or create the
149.7likelihood of consumer confusion or misunderstanding regarding its services;
149.8(2) represent that the debt settlement services provider is a nonprofit, not-for-profit,
149.9or has similar status or characteristics if some or all of the debt settlement services will
149.10be provided by a for-profit company that is a controlling or affiliated party to the debt
149.11settlement services provider;
149.12(3) make any communication that gives the impression that the debt settlement
149.13services provider is acting on behalf of a government agency; or
149.14(4) represent, claim, imply, or infer that secured debts may be settled.
149.15 Subd. 2. Solicitation by lead generators. (a) In all print, electronic, and nonprint
149.16solicitations, including Web sites and radio or television advertising, a lead generator must
149.17prominently make the following verbatim disclosure: "This company does not actually
149.18provide any debt settlement, debt consolidation, or other credit counseling services. We
149.19ONLY refer you to companies that want to provide some or all of those services."
149.20(b) A lead generator may not, in any advertising or solicitation to debtors:
149.21(1) represent that any service is guaranteed; or
149.22(2) misrepresent the benefits of its services or debt settlement or consolidation in
149.23comparison to credit counseling, debt management, or bankruptcy.
Sec. 29. [332B.12] DEBT SETTLEMENT SERVICES AGREEMENT
149.26Any debtor has the right to rescind any debt settlement services agreement with a
149.27debt settlement services provider that commits a material violation of this chapter. On
149.28rescission, all fees paid to the debt settlement services provider or any other person other
149.29than creditors of the debtor must be returned to the debtor entering into the debt settlement
149.30services agreement within ten days of rescission of the debt settlement services agreement.
Sec. 30. [332B.13] ENFORCEMENT; REMEDIES.
149.32 Subdivision 1. Violation as deceptive practice. A violation of any of the provisions
149.33of this chapter is considered an unfair or deceptive trade practice under section 8.31,
150.1subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in
150.2the public interest.
150.3 Subd. 2. Private right of action. (a) A debt settlement provider who fails to
150.4comply with any of the provisions of this chapter, or a lead generator who violates section
150.5332B.11, is liable under this section in an individual action for the sum of:
150.6(1) actual, incidental, and consequential damages sustained by the debtor as a result
150.7of the failure; and
150.8(2) statutory damages of up to $5,000.
150.9(b) A debt settlement provider who fails to comply with any of the provisions of
150.10this chapter, or a lead generator who violates section 332B.11, is liable to the named
150.11plaintiffs under this section in a class action for the amount that each named plaintiff
150.12could recover under paragraph (a), clause (1), and to the other class members for such
150.13amount as the court may allow.
150.14(c) In determining the amount of statutory damages, the court shall consider, among
150.15other relevant factors:
150.16(1) the frequency, nature, and persistence of noncompliance;
150.17(2) the extent to which the noncompliance was intentional; and
150.18(3) in the case of a class action, the number of debtors adversely affected.
150.19(d) A plaintiff or class successful in a legal or equitable action under this section is
150.20entitled to the costs of the action, plus reasonable attorney fees.
150.21 Subd. 3. Injunctive relief. (a) A debtor may sue a debt settlement services provider
150.22for temporary or permanent injunctive or other appropriate equitable relief to prevent
150.23violations of any provision of this chapter. A court must grant injunctive relief on a
150.24showing that the debt settlement services provider has violated any provision of this
150.25chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to
150.26prevail on allegations that the debt settlement services provider violated any provision
150.27of this chapter.
150.28(b) A debtor may sue a lead generator for temporary or permanent injunctive or other
150.29appropriate equitable relief to prevent violations of section 332B.11. A court must grant
150.30injunctive relief on a showing that the lead generator has violated section 332B.11, or in
150.31the case of a temporary injunction, on a showing that the debtor is likely to prevail on
150.32allegations that the lead generator violated section 332B.11.
150.33 Subd. 4. Remedies cumulative. The remedies provided in this section are
150.34cumulative and do not restrict any remedy that is otherwise available. The provisions
151.1of this chapter are not exclusive and are in addition to any other requirements, rights,
151.2remedies, and penalties provided by law.
151.3 Subd. 5. Public enforcement. The attorney general shall enforce this chapter
151.4under section 8.31.
Sec. 31. [332B.14] INVESTIGATIONS.
151.6At any reasonable time, the commissioner may examine the books and records of
151.7every registrant and of any person engaged in the business of providing debt settlement
151.8services. The commissioner, once during any calendar year, may require the submission
151.9of an audit prepared by a certified public accountant of the books and records of each
151.10registrant. If the registrant has, within one year previous to the commissioner's demand,
151.11had an audit prepared for some other purpose, this audit may be submitted to satisfy the
151.12requirement of this section. The commissioner may investigate any complaint concerning
151.13violations of this chapter and may require the attendance and sworn testimony of witnesses
151.14and the production of documents.
Delete the title and insert:
relating to state government; appropriating money for environment, natural
resources, and energy; authorizing sale of gift cards and certificates; establishing
composting competitive grant program; modifying regulation of storm water
discharges; modifying waste management reporting requirements; requiring
nonresident all-terrain vehicle state trail pass; modifying horse trail and state park
pass requirements; extending certain land sale requirements; prohibiting certain
sales of outdoor recreation system lands; providing for exchange of riparian land;
requiring disclosure of certain chemicals in children's products by manufacturers;
requiring plastic yard waste bags to be compostable and establishing labeling
standards; modifying feedlot permit and grant provisions; authorizing uses of
the Hennepin County solid and hazardous waste fund; modifying greenhouse
gas emissions provisions and requiring a registry; establishing, modifying,
and authorizing fees and surcharges; providing for disposition of certain fees;
modifying and establishing assessments for certain regulatory expenses;
modifying prior appropriations; prohibiting certain reorganizations; providing for
fish consumption advisories in different languages; limiting use of certain funds;
requiring studies and reports; appropriating money to Department of Commerce
and Public Utilities Commission to finance activities related to commerce and
energy; providing for green enterprise assistance; modifying provisions related to
insurance audits, insurers and insurance products, certain financial institutions,
regulated activities related to certain mortgage transactions and professionals,
and debt management and debt settlement services; providing penalties and
remedies;amending Minnesota Statutes 2008, sections 45.011, subdivision 1;
45.027, subdivision 1; 46.04, subdivision 1; 46.05; 46.131, subdivision 2; 47.58,
subdivision 1; 47.60, subdivisions 1, 3, 6; 48.21; 58.05, subdivision 3; 58.06,
subdivision 2; 58.126; 58.13, subdivision 1; 60A.124; 60A.14, subdivision
1; 60B.03, subdivision 15; 60L.02, subdivision 3; 61B.19, subdivision 4;
61B.28, subdivisions 4, 8; 67A.01; 67A.06; 67A.07; 67A.14, subdivisions
1, 7; 67A.18, subdivision 1; 84.0835, subdivision 3; 84.415, subdivision
5, by adding a subdivision; 84.63; 84.631; 84.632; 84.922, subdivision 1a;
84D.15, subdivision 2; 85.015, subdivision 1b; 85.053, subdivision 10; 85.46,
subdivisions 3, 4, 7; 92.685; 93.481, subdivisions 1, 3, 5, 7; 94.342, subdivision
3; 97A.075, subdivision 1; 103G.271, subdivision 6; 103G.301, subdivisions 2,
3; 115.03, subdivision 5c; 115.073; 115.56, subdivision 4; 115.77, subdivision
1; 115A.1314, subdivision 2; 115A.557, subdivision 1; 115A.931; 116.0711;
116.41, subdivision 2; 116C.834, subdivision 1; 216B.62, subdivisions 3, 4, 5, by
adding a subdivision; 216H.10, subdivision 7; 216H.11; 325E.311, subdivision
6; 332A.02, subdivisions 5, 8, 9, 10, 13, by adding subdivisions; 332A.04,
subdivision 6; 332A.08; 332A.10; 332A.11, subdivision 2; 332A.14; 332A.16;
Laws 2005, chapter 156, article 2, section 45, as amended; Laws 2007, chapter
57, article 1, section 4, subdivision 2; Laws 2008, chapter 363, article 5, section
4, subdivision 7; proposing coding for new law in Minnesota Statutes, chapters
60A; 61A; 67A; 84; 86A; 93; 115A; 116; 116J; 216H; 325E; 383B; proposing
coding for new law as Minnesota Statutes, chapter 332B; repealing Minnesota
Statutes 2008, sections 60A.129; 61B.19, subdivision 6; 67A.14, subdivision 5;
67A.17; 67A.19; Laws 2008, chapter 363, article 5, section 30; Minnesota Rules,
parts 2675.2180; 2675.7100; 2675.7110; 2675.7120; 2675.7130; 2675.7140."
We request the adoption of this report and repassage of the bill.House Conferees: (Signed) Jean Wagenius, Bill Hilty, Kate Knuth, Rick Hansen, Jenifer LoonSenate Conferees: (Signed) Ellen Anderson, Tom Saxhaug, Satveer Chaudhary, Dennis Frederickson, Patricia Torres Ray
|We request the adoption of this report and repassage of the bill.
|Patricia Torres Ray