SF 2096

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

ENVIRONMENT AND NATURAL RESOURCES

Section 1. SUMMARY OF APPROPRIATIONS.

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

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

Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.

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

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2008		2009

Sec. 3. POLLUTION CONTROL AGENCY

Subdivision 1. Total Appropriation

$

117,782,000

$

86,388,000

Appropriations by Fund
	2008	2009
General	44,293,000	12,632,000
State Government Special Revenue	48,000	48,000
Environmental	62,425,000	62,622,000
Remediation	11,016,000	11,086,000

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

Subd. 2. Water

58,053,000

26,930,000

Appropriations by Fund
General	38,656,000	7,603,000
State Government Special Revenue	48,000	48,000
Environmental	19,349,000	19,279,000

$2,348,000 the first year and $2,348,000
the second year are for the clean water
partnership program. Any balance remaining
in the first year does not cancel and
is available for the second year. This
appropriation may be used for grants to
local units of government for the purpose
of restoring impaired waters listed under
section 303(d) of the federal Clean Water
Act in accordance with adopted total
maximum daily loads (TMDLs), including
implementation of approved clean water
partnership diagnostic study work plans that
will assist in restoration of impaired waters,
in accordance with Minnesota Statutes,
chapter 114D.

$2,324,000 the first year and $2,324,000 the
second year must be distributed as grants to
delegated counties to administer the county
feedlot program. Distribution of funds
must be as provided in Laws 2005, First
Special Session chapter 1, article 2, section
2, subdivision 2. The commissioner, in
consultation with the Minnesota Association
of County Feedlot Officers executive team,
may use up to five percent of the annual
appropriation for initiatives to enhance
existing delegated county feedlot programs,
information and education, or technical
assistance to reduce feedlot-related pollution
hazards. Any money remaining after the first
year is available for the second year.

$335,000 the first year and $335,000 the
second year are for community technical
assistance and education, including grants
and technical assistance to communities for
local and basinwide water quality protection.

$405,000 the first year and $405,000 the
second year are for individual sewage
treatment system (ISTS) administration and
grants. Of this amount, $86,000 each year
is for assistance to counties through grants
for ISTS program administration. Any
unexpended balance in the first year does not
cancel but is available in the second year.

$480,000 the first year and $480,000 the
second year are from the environmental
fund to address the need for continued
increased activity in the areas of new
technology review, technical assistance
for local governments, and enforcement
under Minnesota Statutes, sections 115.55
to 115.58, and to complete the requirements
of Laws 2003, chapter 128, article 1, section
165. Of this amount, $48,000 each year is for
administration of individual septic tank fees.

$31,009,000 the first year is to implement
the requirements of Minnesota Statutes,
chapter 114D. Of this amount, $12,634,000
is for completion of 20 percent of the needed
statewide assessments of surface water
quality and trends and $18,000,000 is to
develop TMDL's and TMDL implementation
plans for waters listed on the United States
Environmental Protection Agency approved
impaired waters list in accordance with
Minnesota Statutes, chapter 114D. The
agency shall complete an average of ten
percent of the TMDL's each year over the
biennium. The department shall monitor
and analyze endocrine disruptors in surface
waters in at least 20 additional sites. The data
must be placed on the agency's Web site.

$1,035,000 the first year and $1,035,000
the second year are from the environmental
fund to provide regulatory services to the
ethanol, mining, and other developing
economic sectors. Priority shall be for
permitting new and emerging bioenergy crop
utilization technologies. This is a onetime
appropriation.

$88,000 the first year is for the endocrine
disruptors report required to be completed
under this article.

The commissioner shall transfer the
amount necessary, up to $600,000, from
the remediation fund to the commissioner
of health to conduct an evaluation under
Minnesota Statutes, section 115B.17, of point
of use water treatment units at removing
perfluorooctanoic acid, perfluorooctane
sulfonate, and perfluorobutanoic acid from
known concentrations of these compounds
in drinking water. The evaluation shall be
completed by December 31, 2007, and the
commissioner of health may contract for
services to complete the evaluation.

By January 15, 2008, the commissioner shall
amend agency rules and, where legislative
action is necessary, provide recommendations
to the house of representatives and senate
divisions on environmental finance on
water and air fee changes that will result in
revenue to the environmental fund to pay for
regulatory services to the ethanol, mining,
and other developing economic sectors.

Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2009,
for clean water partnership, individual
sewage treatment systems (ISTS), Minnesota
River, total maximum daily loads (TMDL's),
stormwater contracts or grants, and local and
basinwide water quality protection contracts
or grants in this subdivision are available
until June 30, 2011.

Subd. 3. Air

11,003,000

11,270,000

Appropriations by Fund
Environmental	11,003,000	11,270,000

Up to $150,000 the first year and $150,000
the second year may be transferred from the
environmental fund to the small business
environmental improvement loan account
established in Minnesota Statutes, section
116.993.

$200,000 the first year and $200,000 the
second year are from the environmental fund
for a monitoring program under Minnesota
Statutes, section 116.454.

$125,000 the first year and $125,000 the
second year are from the environmental fund
for monitoring ambient air for hazardous
pollutants in the metropolitan area.

$1,140,000 the first year and $1,140,000
the second year are from the environmental
fund to provide regulatory services to the
ethanol, mining, and other developing
economic sectors. Priority shall be for
permitting new and emerging bioenergy crop
utilization technologies. This is a onetime
appropriation.

Subd. 4. Land

19,081,000

19,151,000

Appropriations by Fund
General	1,000,000	1,000,000
Environmental	7,065,000	7,065,000
Remediation	11,016,000	11,086,000

All money for environmental response,
compensation, and compliance in the
remediation fund not otherwise appropriated
is appropriated to the commissioners of the
Pollution Control Agency and agriculture
for purposes of Minnesota Statutes, section
115B.20, subdivision 2, clauses (1), (2),
(3), (6), and (7). At the beginning of each
fiscal year, the two commissioners shall
jointly submit an annual spending plan
to the commissioner of finance and the
house and senate chairs of environment and
natural resources finance that maximizes the
utilization of resources and appropriately
allocates the money between the two
departments. This appropriation is available
until June 30, 2009.

$3,616,000 the first year and $3,616,000 the
second year are from the petroleum tank fund
to be transferred to the remediation fund for
purposes of the leaking underground storage
tank program to protect the land.

$252,000 the first year and $252,000 the
second year are from the remediation fund to
be transferred to the Department of Health for
private water supply monitoring and health
assessment costs in areas contaminated
by unpermitted mixed municipal solid
waste disposal facilities and drinking water
advisories and public information activities
for areas contaminated by hazardous releases.

$1,000,000 each year is for environmental
health tracking and biomonitoring. Of this
amount, $900,000 each year is for transfer
to the Department of Health. The base
appropriation for this program for fiscal year
2010 and later is $500,000.

Subd. 5. Multimedia

5,872,000

5,215,000

Appropriations by Fund
General	3,006,000	2,349,000
Environmental	2,866,000	2,866,000

$825,000 the first year and $825,000 the
second year are from the environmental
fund to provide regulatory services to the
ethanol, mining, and other developing
economic sectors. Priority shall be for
permitting new and emerging bioenergy crop
utilization technologies. This is a onetime
appropriation.

$400,000 the first year is a onetime
appropriation for a grant to the Koochiching
Economic Development Authority for
a feasibility study for a plasma torch
gasification facility that converts municipal
solid waste into energy and slag.

$300,000 the first year is for the biomass
gasification facilities air emissions study for
the purpose of fully characterizing the air
emissions exerted from biomass gasification
facilities across a range of feedstocks. This
is a onetime appropriation.

Notwithstanding Minnesota Statutes, section
16A.28, the appropriations encumbered
under contract on or before June 30, 2009, for
total maximum daily load (TMDL) contracts
or grants are available until June 30, 2011.

Subd. 6. Environmental Assistance

22,142,000

22,142,000

This appropriation is from the environmental
fund.

$14,000,000 each year is from the
environmental fund for SCORE block grants
to counties.

Any unencumbered grant and loan balances
in the first year do not cancel but are available
for grants and loans in the second year.

All money deposited in the environmental
fund for the metropolitan solid waste
landfill fee in accordance with Minnesota
Statutes, section 473.843, and not otherwise
appropriated, is appropriated for the purposes
of Minnesota Statutes, section 473.844.

$119,000 the first year and $119,000 the
second year are for environmental assistance
grants or loans under Minnesota Statutes,
section .

$1,200,000 the first year and $1,200,000
the second year are from the environmental
fund first to retrofit school buses statewide,
including buses for preschool children,
and, after completion, secondly for loans to
small trucking firms to install equipment to
reduce fuel consumption. This is a onetime
appropriation.

Notwithstanding Minnesota Statutes, section
, the appropriations encumbered
under contract on or before June 30,
2009, for environmental assistance grants
awarded under Minnesota Statutes, section
, and for technical and research
assistance under Minnesota Statutes,
section , technical assistance
under Minnesota Statutes, section 115A.52,
and pollution prevention assistance under
Minnesota Statutes, section , are
available until June 30, 2011.

Subd. 7. Administrative Support

1,631,000

1,680,000

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

Sec. 4. NATURAL RESOURCES

Subdivision 1. Total Appropriation

$

255,077,000

$

252,416,000

Appropriations by Fund
	2008	2009
General	87,775,000	83,066,000
Natural Resources	77,014,000	77,103,000
Game and Fish	89,988,000	91,947,000
Remediation	100,000	100,000
Permanent School	200,000	200,000

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

Subd. 2. Land and Mineral Resources Management

11,747,000

11,272,000

Appropriations by Fund
General	6,633,000	6,230,000
Natural Resources	3,551,000	3,447,000
Game and Fish	1,363,000	1,395,000
Permanent School	200,000	200,000

$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
Statutes, section 93.2236, 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
principles.

$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
money.

$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 commissioner 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.

Subd. 3. Water Resources Management

15,051,000

12,522,000

Appropriations by Fund
General	14,771,000	12,242,000
Natural Resources	280,000	280,000

$310,000 the first year and $310,000 the
second year are for grants associated with the
implementation of the Red River mediation
agreement.

$65,000 the first year and $65,000 the
second year are for a grant to the Mississippi
Headwaters Board for up to 50 percent of
the cost of implementing the comprehensive
plan for the upper Mississippi within areas
under its jurisdiction.

$5,000 the first year and $5,000 the second
year are for payment to the Leech Lake Band
of Chippewa Indians to implement its portion
of the comprehensive plan for the upper
Mississippi.

$200,000 the first year and $200,000 the
second year are for the construction of ring
dikes under Minnesota Statutes, section
. The ring dikes may be publicly
or privately owned. If the appropriation in
either year is insufficient, the appropriation
in the other year is available for it. The base
appropriation for fiscal year 2010 and later
is $125,000.

$2,250,000 the first year is to support the
identification of impaired waters and develop
plans to address those impairments, as
required by the federal Clean Water Act, in
accordance with Minnesota Statutes, chapter
114D. This is a onetime appropriation.

By January 15, 2008, the commissioner shall
commence rulemaking under Minnesota
Statutes, chapter 14, to update the minimum
shoreland standards in Minnesota Rules,
chapter 6120.

$60,000 the first year is a onetime
appropriation to the commissioner of natural
resources to conduct a feasibility study
in conjunction with U.S. Army Corps of
Engineers on the foundation and hydraulics
of the Rapidan Dam in Blue Earth County.
This appropriation must be equally matched
by Blue Earth County, and is available until
expended.

$500,000 in fiscal year 2008 is for addressing
surface and groundwater issues related to
the development and expansion of ethanol
production.

Subd. 4. Forest Management

44,495,000

43,393,000

Appropriations by Fund
General	24,755,000	24,836,000
Natural Resources	19,483,000	18,293,000
Game and Fish	257,000	264,000

$7,217,000 the first year and $7,217,000
the second year are for prevention,
presuppression, and suppression costs of
emergency firefighting and other costs
incurred under Minnesota Statutes, section
88.12. If the appropriation for either
year is insufficient to cover all costs of
presuppression and suppression, the amount
necessary to pay for these costs during the
biennium is appropriated from the general
fund.

By November 15 of each year, the
commissioner of natural resources shall
submit a report to the chairs of the house
and senate committees and divisions having
jurisdiction over environment and natural
resources finance, identifying all firefighting
costs incurred and reimbursements received
in the prior fiscal year. These appropriations
may not be transferred. Any reimbursement
of firefighting expenditures made to the
commissioner from any source other than
federal mobilizations shall be deposited into
the general fund.

$17,983,000 the first year and $18,293,000
the second year are from the forest
management investment account in the
natural resources fund for only the purposes
specified in Minnesota Statutes, section
, subdivision 2.

Of this amount:

(1) $750,000 each year is for additional staff
to enhance timber sales;

(2) $1,000,000 each year is for forest
improvements;

(3) $1,100,000 each year is for forest road
maintenance;

(4) $600,000 each year is for the ecological
classification system on state forest lands;

(5) $350,000 each year is for the prevention
of invasive species on state forest lands; and

(6) $400,000 each year is for the re-inventory
of state forest lands.

Money for forest road maintenance is
onetime.

$780,000 the first year and $780,000 the
second year are for the Forest Resources
Council for implementation of the
Sustainable Forest Resources Act.

$40,000 the first year is for the Forest
Resources Council to provide a grant to
the University of Minnesota to prepare a
statewide plan to address the fragmentation
and parcelization of large blocks of forest
land in the state.

$200,000 in fiscal year 2008 is for a grant
to the Forest Resources Research Advisory
Committee to provide direction on research
topics recommended by the governor's task
force on the competitiveness of Minnesota's
primary forest products industry.

$350,000 the first year and $350,000 the
second year are for the FORIST timber
management information system, other
information systems, and for increased
forestry management. The amount in the
second year is also available in the first year.

$257,000 the first year and $264,000 the
second year are from the game and fish
fund to implement ecological classification
systems (ECS) standards on forested
landscapes. This appropriation is from
revenue deposited in the game and fish fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).

$110,000 the first year is to develop and
implement a statewide information and
education campaign regarding the statewide
ban on the transport, storage, or use of
nonapproved firewood on state-administered
lands.

$1,500,000 the first year is from the forest
management investment account in the
natural resources fund for the purposes of
section 157. This is a onetime appropriation.

$75,000 the first year is to the Forest
Resources Council for a task force on
forest protection and $75,000 the second
year is appropriated to the commissioner
for grants to cities, counties, townships,
special recreation areas, and park and
recreation boards in cities of the first class
for the identification, removal, disposal, and
replacement of dead or dying shade trees
lost to forest pests or disease. For purposes
of this section, "shade tree" means a woody
perennial grown primarily for aesthetic or
environmental purposes with minimal to
residual timber value. The commissioner
shall consult with municipalities; park and
recreation boards in cities of the first class;
nonprofit organizations; and other interested
parties in developing eligibility criteria.

$200,000 in fiscal year 2008 is for a grant
to the Natural Resources Research Institute
for silvicultural research to improve the
quality and quantity of timber fiber. The
appropriation must be matched in the amount
of $200,000 in cash or in-kind contributions
from the forest products industry members of
the Minnesota Forest Productivity Research
Cooperative.

$1,000,000 the first year and $1,000,000
the second year are to support additional
technical and cost-share assistance to
nonindustrial private forest (NIPF)
landowners. The base appropriation in fiscal
year 2010 and later is $500,000.

$200,000 the first year and $200,000 the
second year are to address escalating
land asset management demands, such as
boundary disputes, access easements, and
sale, exchange, and acquisition of forest
lands.

Subd. 5. Parks and Recreation Management

35,324,000

36,319,000

Appropriations by Fund
General	20,743,000	21,283,000
Natural Resources	14,581,000	15,036,000

$640,000 the first year and $640,000 the
second year are from the water recreation
account in the natural resources fund for state
park water access projects.

$150,000 in the first year and $150,000 in the
second year are for additional interpretative
services.

$3,996,000 the first year and $3,996,000 the
second year are from the natural resources
fund for state park and recreation area
operations. This appropriation is from the
revenue deposited in the natural resources
fund under Minnesota Statutes, section
297A.94, paragraph (e), clause (2).

$10,000 in the first year is for payment
of expenses of the Cuyuna Country State
Recreation Area Citizens Advisory Council.

The appropriation in Laws 2003, chapter
128, article 1, section 5, subdivision 6, from
the water recreation account in the natural
resources fund for a cooperative project with
the United States Army Corps of Engineers
to develop the Mississippi Whitewater Park
is available until June 30, 2009. The project
must be designed to prevent the spread of
aquatic invasive species.

$500,000 the first year and $750,000 the
second year are from the natural resources
fund for increased park maintenance
work, resource management projects, and
conservation education for park users.

Subd. 6. Trails and Waterways Management

30,257,000

30,492,000

Appropriations by Fund
General	2,538,000	2,568,000
Natural Resources	25,600,000	25,730,000
Game and Fish	2,119,000	2,194,000

$8,424,000 the first year and $8,424,000
the second year are from the snowmobile
trails and enforcement account in the natural
resources fund for snowmobile grants-in-aid.
The additional money under this item may
be used for new grant-in-aid trails. Any
unencumbered balance does not cancel at the
end of the first year and is available for the
second year.

$1,175,000 the first year and $1,325,000 the
second year are from the natural resources
fund for off-highway vehicle grants-in-aid.
Of this amount, $825,000 the first year and
$1,075,000 the second year are from the
all-terrain vehicle account; $150,000 each
year is from the off-highway motorcycle
account; and $200,000 the first year and
$100,000 the second year are from the
off-road vehicle account. Any unencumbered
balance does not cancel at the end of the first
year and is available for the second year.

$261,000 the first year and $261,000 the
second year are from the water recreation
account in the natural resources fund for a
safe harbor program on Lake Superior.

$742,000 the first year and $760,000
the second year are from the natural
resources fund for state trail operations
and maintenance. The money may be used
for trail maintenance, signage, mapping,
interpretation, native prairie restoration
using best management practices, and
maintenance of nonmotorized forest trails.
This appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (2).

$655,000 the first year and $655,000 the
second year are from the natural resources
fund for trail grants to local units of
government on land to be maintained for
at least 20 years for the purposes of the
grant. This appropriation is from the revenue
deposited in the natural resources fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (4).

$150,000 the first year and $150,000 the
second year are from the all-terrain vehicle
account for two all-terrain vehicle trail
specialists to assist and consult with on
all-terrain vehicle grant-in-aid education and
training for sustainable trail development and
maintenance, as well as providing training
for public and private sector trail monitoring.
The specialists may assist in the evaluation
of grant-in-aid trail proposals, but not in the
promotion of new trails.

$1,965,000 the first year and $2,040,000
the second year are from the game and fish
fund for expenditures on water access sites
according to the requirements of the federal
sport and fish restoration program.

Money appropriated under Laws 2005, First
Special Session chapter 1, article 2, section
11, subdivision 6, paragraph (h), for the Paul
Bunyan State Trail connection is available
until June 30, 2008.

$400,000 each year is for operation and
maintenance of nonmotorized trails within
state forests. This is a onetime appropriation.

$75,000 each year is for additional wild and
scenic rivers program activities.

$120,000 the first year is from the
water recreation account in the natural
resources fund to cooperate with local
units of government in marking routes and
designating river accesses and campsites
under Minnesota Statutes, section 85.32.
This is a onetime appropriation and available
until spent.

The appropriation in Laws 2005, First
Special Session chapter 1, article 2, section
3, subdivision 6, from the lottery in lieu
account in the natural resources fund for
trail grants to local units of government, is
available until June 30, 2009.

Subd. 7. Fish and Wildlife Management

67,191,000

68,533,000

Appropriations by Fund
General	3,459,000	3,479,000
Natural Resources	1,876,000	1,876,000
Game and Fish	61,856,000	63,178,000

$410,000 the first year and $418,000 the
second year are for resource population
surveys in the 1837 treaty area. Of this
amount, $274,000 the first year and $288,000
the second year are from the game and fish
fund.

$1,790,000 the first year and $1,790,000 the
second year are from the wildlife acquisition
surcharge account for only the purposes of
land costs as specified in Minnesota Statutes,
section , subdivision 2a. This
appropriation is available until spent.

$8,061,000 the first year and $8,167,000
the second year are from the heritage
enhancement account in the game and
fish fund only for activities that improve,
enhance, or protect fish and wildlife
resources as specified in Minnesota Statutes,
section , paragraph (e), clause (1).
Notwithstanding Minnesota Statutes, section
, money under this paragraph may
be used for expanding hunter and angler
recruitment and retention and public land
user facilities. Of this amount, $1,175,000
each year is for preserving, restoring, and
enhancing grassland/wetland complexes.

Notwithstanding Minnesota Statutes, section
, $13,000 the first year and $13,000
the second year from the critical habitat
private sector matching account may be used
to publicize the critical habitat license plate
match program.

$830,000 the first year and $830,000 the
second year are from the trout and salmon
management account for only the purposes
specified in Minnesota Statutes, section
, subdivision 3.

$1,353,000 the first year and $1,353,000
the second year are from the deer habitat
improvement account for only the purposes
specified in Minnesota Statutes, section
, subdivision 1, paragraph (b).

$715,000 the first year and $715,000 the
second year are from the deer and bear
management account for only the purposes
specified in Minnesota Statutes, section
, subdivision 1, paragraph (c).

$700,000 the first year and $700,000 the
second year are from the waterfowl habitat
improvement account for only the purposes
specified in Minnesota Statutes, section
, subdivision 2.

$875,000 the first year and $875,000 the
second year are from the pheasant habitat
improvement account for only the purposes
specified in Minnesota Statutes, section
, subdivision 4.

$172,000 the first year and $172,000 the
second year are from the wild turkey
management account for only the purposes
specified in Minnesota Statutes, section
, subdivision 5. Of this amount,
$8,000 the first year and $8,000 the second
year are appropriated from the game and
fish fund for transfer to the wild turkey
management account for purposes specified
in Minnesota Statutes, section 97A.075,
subdivision 5.

$108,000 the first year and $108,000 the
second year are from the game and fish
fund for costs associated with administering
fishing contest permits.

$186,000 the first year and $132,000 the
second year are to accelerate wildlife
health programs. $54,000 in the first
year is for fencing cattle-feeding areas in
bovine tuberculosis control zones, under the
emergency deterrent materials assistance
program in Minnesota Statutes, section
97A.028, subdivision 3. This appropriation
is available until June 30, 2009. $61,000 of
this amount is permanent.

$575,000 the first year and $575,000 the
second year are for preserving, restoring, and
enhancing grassland/wetland complexes on
public or private lands.

The commissioner must report to the
legislative chairs on environmental finance
for money appropriated in this subdivision on
grassland/wetland complexes with specific
outcomes, including acres of wetlands and
prairie grasses and forbs of a local ecotype
preserved, restored, and enhanced during the
2008-2009 biennium.

$150,000 the first year and $150,000 the
second year are from the game and fish fund
for the roadsides for wildlife program.

$175,000 in the first year and $175,000 in the
second year are for grants to Let's Go Fishing
of Minnesota to promote opportunities for
fishing. The grants must be matched with
cash or in-kind contributions from nonstate
sources. It is a condition of acceptance of
this appropriation that Let's Go Fishing of
Minnesota must submit a work program
and annual progress reports in the form and
manner determined by the commissioner of
natural resources to the Budgetary Oversight
Committee. The work program must identify
capital expenditures and leases over $2,000
and annual reports must describe the use
of that capital equipment throughout its
useful life. None of the money provided
may be spent unless the commissioner
has approved the work program. This is a
onetime appropriation.

$90,000 each year from the game and fish
fund is to staff the Budgetary Oversight
Committee.

By November 15, 2008, the commissioner,
in consultation with the Budgetary Oversight
Committee, established in Minnesota
Statutes, section 97A.055, subdivision 4b,
paragraph (c), shall report to the house of
representatives and senate policy and finance
committees and divisions with jurisdiction
over natural resources on game and fish fund
receipt and expenditure imbalances between
hunting-related and fishing-related activities.
The report shall include, but is not limited to:

(1) a table showing the allocation of game
and fish fund receipts and expenditures
related to fishing and hunting activities for
fiscal years 1989 to 2007 and projected
receipts and expenditures for fiscal years
2008 and 2009;

(2) recommendations for short-term changes
to correct any imbalances; and

(3) recommendations for long-term
changes that will ensure that fishing license
revenue is adequate to cover fishing-related
expenditures and hunting license revenue
is adequate to cover hunting-related
expenditures.

Notwithstanding Minnesota Statutes, section
, the appropriations encumbered
under contract on or before June 30, 2009, for
aquatic restoration grants and wildlife habitat
grants are available until June 30, 2010.

The commissioner of finance shall transfer
$160,000 in fiscal year 2008 to the special
revenue fund for the account under Minnesota
Statutes, section 97A.065, subdivision 6.

Subd. 8. Ecological Services

16,175,000

14,476,000

Appropriations by Fund
General	8,597,000	6,531,000
Natural Resources	3,696,000	3,994,000
Game and Fish	3,882,000	3,951,000

$1,194,000 the first year and $1,227,000 the
second year are from the nongame wildlife
management account in the natural resources
fund for the purpose of nongame wildlife
management.

Notwithstanding Minnesota Statutes,
section , $100,000 the first year
and $100,000 the second year may be used
for nongame information, education, and
promotion.

$1,612,000 the first year and $1,636,000
the second year are from the heritage
enhancement account in the game and
fish fund for only the purposes specified
in Minnesota Statutes, section 297A.94,
paragraph (e), clause (1).

The commissioner must report to the
legislative chairs on environmental finance
for money appropriated in this subdivision on
grassland/wetland complexes with specific
outcomes, including acres of wetlands and
prairie grasses and forbs of a local ecotype
preserved, restored, and enhanced during the
2008-2009 biennium.

$2,938,000 in the first year and $4,385,000
in the second year, of which $1,968,000 the
first year and $2,195,000 the second year
are from the invasive species account in the
natural resources fund for law enforcement
and water access inspection to prevent the
spread of invasive species, grants to manage
invasive plants in public waters, technical
assistance to grant applicants for improving
lake quality, and management of terrestrial
invasive species on state-administered lands.
Priority shall be given to preventing the
spread of aquatic invertebrates, including,
but not limited to, zebra mussels, spiny
waterflea, and round goby. An applicant
for a grant to manage invasive plants in
public waters must have a workable plan for
improving water quality and reducing the
need for additional treatment. Grants may
not be made for chemicals that are likely
endocrine disruptors. A plan to prevent the
introduction of asian carp into Minnesota
waters must be made available to the public
by November 1, 2007.

$125,000 the first year is to support a
technical advisory committee and for land
management units that manage grass lands
in order to develop plans to optimize
native prairie seed harvest and replanting
on state-owned lands. The work must
use best management practices with an
outcome of ensuring the survival of the
native prairie remaining in Minnesota and to
estimate the value of the seeds. Maximizing
seed harvest may include allowing seed
producers to keep a portion of the seed as
compensation for supplying equipment and
labor. The Department of Natural Resources
in cooperation with the Department of
Agriculture and the Board of Water and
Soil Resources shall establish the technical
advisory committee which has the expertise
to develop (1) criteria to identify public
and private marginal lands which could be
used to produce native prairie seeds of a
local eco-type or restore native prairies that
could be used to produce clean energy, (2)
guidelines for production that ensure high
carbon sequestration, protection of wildlife
and waters, and minimization of inputs and
that do not compromise the survival of the
native prairie remaining in Minnesota, and
(3) recommendations for incentives that will
result in the production of native prairie seeds
of a local eco-type or restore native prairies.
In addition to agency members, the advisory
committee shall have one member from
each of two statewide farm organizations,
one member from a statewide sustainable
farmer organization, one member each from
three statewide rural economic development
organizations, one member each from three
statewide environmental organizations, and
one member each from three statewide
wildlife or conservation organizations.
No person registered as a lobbyist under
Minnesota Statutes, section 10A.03, may
serve on the technical advisory committee.
The technical committee shall work with the
NextGen Energy Board to develop a clean
energy program. A report on outcomes from
the technical committee is due December
15, 2007, to the legislative finance chairs on
environment and natural resources.

$50,000 in the first year is for the
commissioner, in consultation with the
Environmental Quality Board, to report to
the house and senate committees having
jurisdiction over environmental policy
and finance by February 1, 2008, on the
Mississippi River critical area program. The
report shall include the status of critical
area plans, zoning ordinances, the number
and types of revisions anticipated, and the
nature and number of variances sought. The
report shall include recommendations that
adequately protect and manage the aesthetic
integrity and natural environment of the river
corridor.

$2,250,000 the first year is to support the
identification of impaired waters and develop
plans to address those impairments, as
required by the federal Clean Water Act, in
accordance with Minnesota Statutes, chapter
114D. This is a onetime appropriation.

$477,000 the first year and $477,000 the
second year are for the reinvest in Minnesota
programs of game and fish, critical habitat,
and wetlands established under Minnesota
Statutes, section 84.95, subdivision 2.

$350,000 the first year is for a grant to
the International Wolf Center for building
renovations.

$500,000 the first year is for a grant to the
city of Wabasha for programming at the
National Bald Eagle Center.

$100,000 the first year is for a grant to the
Wildlife Rehabilitation Center of Minnesota
to retire loans incurred by the center for
construction of its facility in the city of
Roseville and to complete educational
technology infrastructure at the center.

$115,000 in the first year and $116,000 in the
second year is for the Project Wild program.
Of this amount, $35,000 in the first year
and $36,000 in the second year are from the
natural resources fund, and $40,000 in the
first year and $40,000 in the second year are
from the game and fish fund.

$150,000 each year is from the all-terrain
vehicle account in the natural resources fund
for developing and maintaining all-terrain
vehicle trails and environmental review.

Subd. 9. Enforcement

30,549,000

31,596,000

Appropriations by Fund
General	3,564,000	3,648,000
Natural Resources	7,463,000	7,963,000
Game and Fish	19,422,000	19,885,000
Remediation	100,000	100,000

Until June 30, 2009, a conservation officer
must be stationed at Mississippi Headwaters
State Forest to work with local jurisdictions
in enforcing state law along the Mississippi
River from Lake Itasca downstream to Lake
Bemidji and in the Bemidji region.

$1,082,000 the first year and $1,082,000 the
second year are from the water recreation
account in the natural resources fund for
grants to counties for boat and water safety.

$100,000 the first year and $100,000 the
second year are from the remediation fund
for solid waste enforcement activities under
Minnesota Statutes, section .

$315,000 the first year and $315,000 the
second year are from the snowmobile
trails and enforcement account in the
natural resources fund for grants to local
law enforcement agencies for snowmobile
enforcement activities.

$1,164,000 the first year and $1,164,000
the second year are from the heritage
enhancement account in the game and
fish fund for only activities that improve,
enhance, or protect fish and wildlife resources
specified in Minnesota Statutes, section
, paragraph (e), clause (1).

Overtime must be distributed to conservation
officers at historical levels; however, a
reasonable reduction or addition may be
made to the officer's allocation, if justified,
based on an individual officer's workload. If
funding for enforcement is reduced because
of an unallotment, the overtime bank may be
reduced in proportion to reductions made in
other areas of the budget.

$325,000 the first year and $325,000
the second year are from the natural
resources fund for grants to county law
enforcement agencies for off-highway
vehicle enforcement and public education
activities based on off-highway vehicle use
in the county. Of this amount, $313,000 each
year is from the all-terrain vehicle account;
$11,000 each year is from the off-highway
motorcycle account; and $1,000 each year
is from the off-road vehicle account. The
county enforcement agencies may use
money received under this appropriation
to make grants to other local enforcement
agencies within the county that have a high
concentration of off-highway vehicle use. Of
this appropriation, $25,000 each year is for
administration of these grants.

$250,000 the first year and $250,000 the
second year are from the all-terrain vehicle
account for grants to qualifying organizations
to assist in safety and environmental
education and monitoring trails on public
lands under new Minnesota Statutes,
section 84.9011. Grants issued under this
paragraph: (1) must be issued through a
formal agreement with the organization;
and (2) must not be used as a substitute for
traditional spending by the organization. By
December 15, each year, an organization
receiving a grant under this paragraph shall
report to the commissioner with details
on expenditures from the grant. Of this
appropriation, $25,000 each year is for
administration of these grants.

The commissioner must publicize
opportunities for conservation officer
employment and recruit, when possible,
conservation officer candidates from the
biological sciences departments at colleges
and universities.

Subd. 10. Operations Support

4,288,000

3,813,000

Appropriations by Fund
General	2,715,000	2,249,000
Natural Resources	484,000	484,000
Game and Fish	1,089,000	1,080,000

$38,000 in the first year is from the game and
fish fund for the study on the natural stands
of wild rice required in this article.

$270,000 the first year and $270,000 the
second year are from the natural resources
fund for grants to be divided equally between
the city of St. Paul for the Como Zoo
and Conservatory and the city of Duluth
for the Duluth Zoo. This appropriation
is from the revenue deposited to the fund
under Minnesota Statutes, section 297A.94,
paragraph (e), clause (5).

$55,000 in the first year and $7,000 in the
second year are to be transferred to the
Environmental Quality Board to fulfill the
requirement of Minnesota Statutes, sections
116C.92 and 116C.94.

$475,000 the first year is a onetime
appropriation for terrestrial and geologic
carbon sequestration reports and studies in
this article. Of this amount, the commissioner
shall make payments of $385,000 to the
Board of Regents of the University of
Minnesota for the purposes of terrestrial
carbon sequestration activities, and $90,000
to the Minnesota Geological Survey for the
purposes of geologic carbon sequestration
assessment.

Sec. 5. BOARD OF WATER AND SOIL RESOURCES

$

32,153,000

$

17,482,000

$4,102,000 the first year and $4,102,000 the
second year are for natural resources block
grants to local governments. The board may
reduce the amount of the natural resources
block grant to a county by an amount equal to
any reduction in the county's general services
allocation to a soil and water conservation
district from the county's previous year
allocation when the board determines that
the reduction was disproportionate. Grants
must be matched with a combination of local
cash or in-kind contributions. The base grant
portion related to water planning must be
matched by an amount that would be raised
by a levy under Minnesota Statutes, section
103B.3369.

$3,566,000 the first year and $3,566,000
the second year are for grants requested
by soil and water conservation districts for
general purposes, nonpoint engineering,
and implementation of the reinvest in
Minnesota conservation reserve program.
Upon approval of the board, expenditures
may be made from these appropriations for
supplies and services benefiting soil and
water conservation districts. Any district
requesting a grant under this paragraph
shall create and maintain a Web page that
publishes, at a minimum, its annual plan,
annual report, annual audit, and annual
budget, including membership dues and
meeting notices and minutes.

$3,285,000 the first year and $3,285,000
the second year are for grants to soil and
water conservation districts for cost-sharing
contracts for erosion control and water
quality management. Of this amount, at least
$1,200,000 the first year and $1,200,000 the
second year are for grants for cost-sharing
contracts to establish and maintain vegetation
buffers of restored native prairie and restored
prairie using seeds of a local ecotype region.
$300,000 the first year and $300,000 the
second year are available to begin county
cooperative weed management programs
on natural lands and private lands enrolled
in state and federal conservation programs
and to restore native plants in selected
invasive species management sites by
providing local native seeds and plants
to landowners for implementation. This
appropriation is available until expended. If
the appropriation in either year is insufficient,
the appropriation in the other year is available
for it. Notwithstanding Minnesota Statutes,
section 103C.501, any balance in the board's
cost-share program that remains from the
fiscal year 2007 appropriation is available
in an amount up to $2,000 for a grant to
the Faribault Soil and Water Conservation
District to pay for erosion repair on the Blue
Earth River, and up to $40,000 is available for
grants to soil and water conservation districts
for Web site development and reporting; and
$100,000 in fiscal years 2008 and 2009 is
for evaluating and reporting on performance,
financial, and activity information of local
water management entities as provided for in
section 103.

The board shall develop a forestry practice
docket for cost-share money. The board shall
develop standards or policies for cost-share
practices for the following purposes: (1)
establishment and maintenance of vegetated
buffers of restored prairie or restored native
prairie using seeds of a local ecotype;
(2) establishment of cooperative weed
management programs on private natural
lands and lands enrolled in state and federal
conservation programs and restoration of
native plants in selected invasive species
management sites by providing local native
seeds and plants to landowners; and (3)
establishment of soil and water conservation
and ecological improvement practices on
private forest lands.

$100,000 the first year and $100,000 the
second year are for a grant to the Red
River Basin Commission to develop a Red
River basin plan and to coordinate water
management activities in the states and
provinces bordering the Red River. The
unencumbered balance in the first year does
not cancel but is available for the second
year.

$14,166,000 is for implementation of the
Clean Water Legacy Act, in accordance
with Minnesota Statutes, chapter 114D, as
follows:

(1) $3,316,000 is for targeted nonpoint
restoration cost-share and incentive
payments, of which up to $3,116,000
is available for grants. Of this amount,
$1,500,000 is for agricultural watershed
restoration projects that are located in a
watershed impaired by nonpoint agricultural
sources and are designed to provide
long-term restoration of surface water
quality through restoration of the natural
hydrological function to working lands. Of
this amount, $500,000 must be contracted for
services with the Minnesota Conservation
Corps. The grant funds are available until
expended;

(2) $3,000,000 is for targeted nonpoint
restoration and protection and technical,
compliance, and engineering assistance
activities, of which up to $2,400,000 is
available for grants, and $225,000 the first
year is to inventory wetland mitigation
opportunities and water quality and
watershed improvement projects in a greater
than 80 percent area and of which $150,000
the first year is to conduct a regionwide
wetland mitigation siting analysis for
greater than 80 percent areas. The $225,000
amount shall include an inventory of the
wetland and water resources that have been
developed on former mine lands and an
analysis of the functions and values of those
wetland and water resources. This is a
onetime appropriation and is available until
June 30, 2009. The $150,000 amount for
analysis shall (i) evaluate wetland mitigation
opportunities in each watershed and wetland
bank service area, (ii) develop goals for
maintaining water quality in the greater than
80 percent areas, and (iii) identify wetland
mitigation opportunities in other regions with
a greater loss of wetlands or with impaired
waters. This is a onetime appropriation and
is available until June 30, 2009. A report on
the analysis outcomes shall be given to the
house and senate chairs of the environment
and natural resources policy and finance
committees by January 15, 2009;

(3) $400,000 is for reporting and evaluating
applied soil and water conservation practices;

(4) $2,450,000 is for grants to implement
county individual sewage treatment system
programs. Of this amount, after a county
has complied with requirements to adopt
ordinances pursuant to Minnesota Statutes,
section 115.55, subdivision 2, the county may
request grants of up to $130,000 to inventory
properties with individual sewage treatment
systems that are an imminent threat to public
health or safety due to water discharges of
untreated sewage, and require compliance
under an applicable ordinance. The grant
amount shall be proportional to the number
of properties expected to be inventoried.
Each county receiving an appropriation
under this paragraph shall report the number
of inspections and the number determined
to be an imminent threat to public health or
safety to the Pollution Control Agency by
February 1 of each year;

(5) $3,000,000 is for feedlot water quality
grants for feedlots under 300 animal units
where there are impaired waters;

(6) $1,000,000 in fiscal year 2008 is for
grants to support local nonpoint source
protection activities related to lake and river
protection and management; and

(7) $1,000,000 in fiscal year 2008 is for
grants to address imminent threat and failing
individual sewage treatment systems.

If the appropriations in clauses (1) to (7) in
either year are insufficient, the appropriation
in the other year is available for it. All of
the money appropriated in clauses (1) to
(7) as grants to local governments shall be
administered through the Board of Water
and Soil Resources' local water resources
protection and management program under
Minnesota Statutes, section 103B.3369.

$100,000 each year is to the Minnesota River
Basin Joint Powers Board, also known as
the Minnesota River Board, for operating
expenses to measure and report the results of
projects in the 12 major watersheds within
the Minnesota River basin.

By January 1, 2008, the board shall report
to the senate and house of representatives
environmental finance divisions on the
financial needs to bring all feedlots in the
state that are under 300 animal units into
compliance with Pollution Control Agency
rules by October 1, 2010, and comply with
the requirements of Minnesota Statutes,
section 116.07, subdivision 7, paragraph (p).

$140,000 the first year and $140,000
the second year are for a grant to Area
II, Minnesota River Basin Projects,
for floodplain management, including
administration of programs.

$1,120,000 the first year and $1,060,000 the
second year may be spent for the following
purposes to support implementation of
the Wetland Conservation Act: $250,000
each year is to make grants to local units
of governments within the 11-county
metropolitan area to improve response to
major wetland violations; $250,000 each
year is for transfer to the commissioner
of natural resources for enforcement of
wetland violations; $500,000 each year is for
staffing to provide adequate state oversight
and technical support to local governments
administering the Wetland Conservation Act;
$60,000 each year is for staff to monitor and
enforce wetland replacement and wetland
bank sites; and $60,000 the first year is
for rulemaking required by changes to the
Wetland Conservation Act. The board must
include in its biennial report to the legislature
information on all state and local units
of government, including special purpose
districts, impacts on wetlands in the state.

$450,000 the first year and $800,000
the second year are to implement
recommendations of the Drainage Work
Group to enhance public drainage and
modernization as follows: $150,000 the first
year is to develop guidelines for drainage
records preservation and modernization;
$500,000 the second year is for cost-share
grants to local governments for public
drainage records modernization; and
$300,000 each year is to provide assistance
to local drainage management officials, to
facilitate the work of the Drainage Work
Group, to staff a drainage assistance team,
and to update the Minnesota Public Drainage
Manual. All of the money appropriated in
this paragraph as grants to local governments
shall be administered through the Board
of Water and Soil Resources' local water
resources protection and management
program under Minnesota Statutes, section
103B.3369.

In addition to other authorities, the Board
of Water and Soil Resources may reduce,
withhold, or redirect grants and other funding
if the local water management entity has
not corrected deficiencies as prescribed in a
notice from the board within one year from
the date of the notice.

$500,000 the first year is to provide grants
for bioenergy crop research and monitoring,
including, but not limited to, water quality,
water quantity utilized, soil carbon storage,
biological diversity, wildlife and habitat
impacts and benefits, and small diameter
woody bioenergy. Of this amount, $300,000
is for a grant to the Minnesota Forest
Resources Council for conducting site level
ecological research and assessments as
identified by the council's biomass technical
committee. Additional money from other
sources should be sought to accomplish this
purpose.

$200,000 in fiscal year 2008 is to develop
clean energy program guidelines and
standards.

$200,000 is for a grant to the city of Gaylord
to construct and reconstruct storm water
sewer drains and related facilities to divert
water that currently drains into Lake Titlow
into holding ponds south of the city. The
cost of reconstructing city streets as part of
this diversion, and as outlined in the city of
Gaylord's street improvement plan, is the
responsibility of the city. This diversion will
keep phosphorus and other chemicals from
entering the lake, and will improve the water
quality of Lake Titlow.

The appropriations for grants in this
section are available until expended. If an
appropriation for grants in either year is
insufficient, the appropriation in the other
year is available for it.

Sec. 6. METROPOLITAN COUNCIL

$

8,620,000

$

8,620,000

Appropriations by Fund
	2008	2009
General	4,050,000	4,050,000
Natural Resources	4,570,000	4,570,000

$4,050,000 the first year and $4,050,000
the second year are for metropolitan area
regional parks maintenance and operations.

$4,570,000 the first year and $4,570,000 the
second year are from the natural resources
fund for metropolitan area regional parks
and trails maintenance and operations. This
appropriation is from the revenue deposited
in the natural resources fund under Minnesota
Statutes, section 297A.94, paragraph (e),
clause (3).

Sec. 7. MINNESOTA CONSERVATION CORPS

$

1,015,000

$

965,000

Appropriations by Fund
	2008	2009
General	525,000	475,000
Natural Resources	490,000	490,000

The Minnesota Conservation Corps may
receive money appropriated from the
natural resources fund under this section
only as provided in an agreement with the
commissioner of natural resources.

$50,000 is to be used for learning stipends
for deaf students and wages for interpreters
participating in its summer youth program.
The appropriation is available until June 30,
2009.

Sec. 8. ZOOLOGICAL BOARD

$

7,137,000

$

7,331,000

Appropriations by Fund
	2008	2009
General	7,000,000	7,193,000
Natural Resources	137,000	138,000

$137,000 the first year and $138,000 the
second year are from the natural resources
fund from the revenue deposited under
Minnesota Statutes, section 297A.94,
paragraph (e), clause (5).

The general fund base budget for the
Zoological Board is $7,068,000 each year in
the 2010-2011 biennium.

Sec. 9. SCIENCE MUSEUM OF MINNESOTA

$

1,250,000

$

1,250,000

Sec. 10.

Minnesota Statutes 2006, section 10A.01, subdivision 35, is amended to read:

Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative
auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or
attorney in the Office of Senate Counsel and Research or House Research;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a
state board or commission that has either the power to adopt, amend, or repeal rules under
chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend,
or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of
Administrative Hearings or referee in the Department of Employment and Economic
Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the
Department of Public Safety;

(15) member or executive director of the Higher Education Facilities Authority;

(16) member of the board of directors or president of Minnesota Technology, Inc.;

(17) member of the board of directors or executive director of the Minnesota State
High School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755; or

(19) citizen member of the Legislative-Citizen Commission on Minnesota
Resources.;

(20) manager of a watershed district, or member of a watershed management
organization as defined under section 103B.205, subdivision 13; or

(21) supervisor of a soil and water conservation district.

Sec. 11.

Minnesota Statutes 2006, section 15.99, subdivision 3, is amended to read:

Subd. 3.

Application; extensions.

(a) The time limit in subdivision 2 begins upon
the agency's receipt of a written request containing all information required by law or by
a previously adopted rule, ordinance, or policy of the agency, including the applicable
application fee. If an agency receives a written request that does not contain all required
information, the 60-day limit starts over only if the agency sends written notice within 15
business days of receipt of the request telling the requester what information is missing.

(b) If a request relating to zoning, septic systems, watershed district review, soil and
water conservation district review, or expansion of the metropolitan urban service area
requires the approval of more than one state agency in the executive branch, the 60-day
period in subdivision 2 begins to run for all executive branch agencies on the day a request
containing all required information is received by one state agency. The agency receiving
the request must forward copies to other state agencies whose approval is required.

(c) An agency response, including an approval with conditions, meets the 60-day
time limit if the agency can document that the response was sent within 60 days of receipt
of the written request. Failure to satisfy the conditions, if any, may be a basis to revoke
or rescind the approval by the agency and will not give rise to a claim that the 60-day
limit was not met.

(d) The time limit in subdivision 2 is extended if a state statute, federal law, or court
order requires a process to occur before the agency acts on the request, and the time
periods prescribed in the state statute, federal law, or court order make it impossible to
act on the request within 60 days. In cases described in this paragraph, the deadline is
extended to 60 days after completion of the last process required in the applicable statute,
law, or order. Final approval of an agency receiving a request is not considered a process
for purposes of this paragraph.

(e) The time limit in subdivision 2 is extended if: (1) a request submitted to a state
agency requires prior approval of a federal agency; or (2) an application submitted to
a city, county, town, school district, metropolitan or regional entity, or other political
subdivision requires prior approval of a state or federal agency. In cases described in
this paragraph, the deadline for agency action is extended to 60 days after the required
prior approval is granted.

(f) An agency may extend the time limit in subdivision 2 before the end of the
initial 60-day period by providing written notice of the extension to the applicant. The
notification must state the reasons for the extension and its anticipated length, which may
not exceed 60 days unless approved by the applicant.

(g) An applicant may by written notice to the agency request an extension of the
time limit under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 12.

Minnesota Statutes 2006, section 16A.531, subdivision 1a, is amended to read:

Subd. 1a.

Revenues.

The following revenues must be deposited in the
environmental fund:

(1) all revenue from the motor vehicle transfer fee imposed under section 115A.908;

(2) all fees collected under section 116.07, subdivision 4d;

(3) all money collected by the Pollution Control Agency in enforcement matters
as provided in section 115.073;

(4) all revenues from license fees for individual sewage treatment systems under
section 115.56;

(5) all loan repayments deposited under section 115A.0716;

(6) all revenue from pollution prevention fees imposed under section 115D.12;

(7) all loan repayments deposited under section 116.994;

(8) all fees collected under section 116C.834;

(9) revenue collected from the solid waste management tax pursuant to chapter 297H;

(10) fees collected under section 473.844; and

(11) interest accrued on the fund; and

(12) money received in the form of gifts, grants, reimbursement, or appropriation
from any source for any of the purposes provided in subdivision 2, except federal grants.

Sec. 13.

[17.035] VENISON DISTRIBUTION AND REIMBURSEMENT.

Subdivision 1.

Reimbursement.

A meat processor holding a license under chapter
28A may apply to the commissioner of agriculture for reimbursement of $70 towards the
cost of processing donated deer. The meat processor shall deliver the deer, processed into
cuts or ground meat, to a charitable organization that is registered under chapter 309 and
with the commissioner of agriculture and that operates a food assistance program. To
request reimbursement, the processor shall submit an application, on a form prescribed by
the commissioner of agriculture, the tag number under which the deer was taken, and a
receipt for the deer from the charitable organization.

Subd. 2.

Distribution.

(a) The commissioner of agriculture shall ensure the
equitable statewide distribution of processed deer by requiring the charitable organization
to allocate and distribute processed deer according to the allocation formula used in the
distribution of United States Department of Agriculture commodities under the federal
emergency food assistance program. The charitable organization must submit quarterly
reports to the commissioner on forms prescribed by the commissioner. The reports must
include, but are not limited to, information on the amount of processed deer received and
the organizations to which the meat was distributed.

(b) The commissioner of agriculture may adopt rules to implement this section.

Sec. 14.

Minnesota Statutes 2006, section 17.4984, subdivision 1, is amended to read:

Subdivision 1.

License required.

(a) A person or entity may not operate an aquatic
farm without first obtaining an aquatic farm license from the commissioner.

(b) Applications for an aquatic farm license must be made on forms provided by
the commissioner.

(c) Licenses are valid for five years and are transferable upon notification to the
commissioner.

(d) The commissioner shall issue an aquatic farm license on payment of the required
license fee under section 17.4988.

(e) A license issued by the commissioner is not a determination of private property
rights, but is only based on a determination that the licensee does not have a significant
detrimental impact on the public resource.

(f) By January 15, 2008, the commissioner shall report to the senate and house
of representatives committees on natural resource policy and finance on policy
recommendations regarding aquaculture.

Sec. 15.

Minnesota Statutes 2006, section 18G.03, is amended by adding a subdivision
to read:

Subd. 5.

Certain species not subject to chapter 18G.

This chapter does not apply
to exotic aquatic plants and wild animal species regulated under chapter 84D.

Sec. 16.

Minnesota Statutes 2006, section 18G.11, is amended to read:

18G.11 COOPERATION WITH OTHER JURISDICTIONS.

Subdivision 1.

Detection and control agreements.

The commissioner may enter
into cooperative agreements with organizations, persons, civic groups, governmental
agencies, or other organizations to adopt and execute plans to detect and control areas
infested or infected with harmful plant pests. The cooperative agreements may include
provisions of joint funding of any control treatment.

If a harmful plant pest infestation or infection occurs and cannot be adequately
controlled by individual persons, owners, tenants, or local units of government, the
commissioner may conduct the necessary control measures independently or on a
cooperative basis with federal or other units of government.

Subd. 2.

New and emerging plant pest programs.

The commissioner may make
grants to municipalities or enter into contracts with municipalities, nurseries, colleges,
universities, state or federal agencies in connection with new or emerging plant pests
programs, including research, or any other organization with the legal authority to enter
into contractual agreements.

Sec. 17.

[84.02] DEFINITIONS.

Subdivision 1.

Definitions.

For purposes of this chapter, the terms defined in this
section shall have the meanings given them.

Subd. 2.

Best management practice for native prairie restoration.

"Best
management practice for native prairie restoration" means using seeds collected from a
native prairie within the same county or within 25 miles of the county's border, but not
across the boundary of an ecotype region.

Subd. 3.

Created grassland.

"Created grassland" means a restoration using seeds
or plants with origins outside of the state of Minnesota.

Subd. 4.

Ecotype region.

"Ecotype region" means the following ecological
subsections and counties based on the Department of Natural Resources map, "County
Landscape Groupings Based on Ecological Subsections," dated February 15, 2007.

Ecotype Region	Counties or portions thereof:
Rochester Plateau, Blufflands, and Oak Savanna	Houston, Winona, Fillmore, Wabasha, Goodhue, Mower, Freeborn, Steele, Olmsted, Rice, Waseca, Dakota, Dodge
Anoka Sand Plain, Big Woods, and St. Paul Baldwin Plains and Moraines	Anoka, Hennepin, Ramsey, Washington, Chisago, Scott, Carver, McLeod, Wright, Benton, Isanti, Le Sueur, Sherburne
Inner Coteau and Coteau Moraines	Lincoln, Lyon, Pipestone, Rock, Murray, Nobles, Jackson, Cottonwood
Red River Prairie (South)	Traverse, Wilkin, Clay, Becker
Red River Prairie (North) and Aspen Parklands	Kittson, Roseau, Red Lake, Pennington, Marshall, Clearwater, Mahnomen, Polk, Norman
Minnesota River Prairie (North)	Big Stone, Pope, Stevens, Grant, Swift, Chippewa, Meeker, Kandiyohi, Renville, Lac qui Parle, Yellow Medicine
Minnesota River Prairie (South)	Nicollet, Redwood, Brown, Watonwan, Martin, Faribault, Blue Earth, Sibley
Hardwood Hills	Douglas, Morrison, Otter Tail, Stearns, Todd

Subd. 5.

Native prairie.

"Native prairie" means land that has never been plowed
where native prairie vegetation originating from the site currently predominates or, if
disturbed, is predominantly covered with native prairie vegetation that originated from the
site. Unbroken pasture land used for livestock grazing can be considered native prairie if it
has predominantly native vegetation originating from the site and conservation practices
have maintained biological diversity.

Subd. 6.

Native prairie species of a local ecotype.

"Native prairie species of a local
ecotype" means a genetically differentiated population of a species that has at least one
trait (morphological, biochemical, fitness, or phenological) that is evolutionarily adapted
to local environmental conditions, notably plant competitors, pathogens, pollinators, soil
microorganisms, growing season length, climate, hydrology, and soil.

Subd. 7.

Restored native prairie.

"Restored native prairie" means a restoration
using at least 25 representative and biologically diverse native prairie plant species of a
local ecotype originating in the same county as the restoration site or within 25 miles of
the county's border, but not across the boundary of an ecotype region.

Subd. 8.

Restored prairie.

"Restored prairie" means a restoration using at least
25 representative and biologically diverse native prairie plant species originating from
the same ecotype region in which the restoration occurs.

Sec. 18.

Minnesota Statutes 2006, section 84.025, subdivision 9, is amended to read:

Subd. 9.

Professional services support account.

The commissioner of natural
resources may bill the various programs carried out by the commissioner for the costs of
providing them with professional support services. Except as provided under section
89.421, receipts must be credited to a special account in the state treasury and are
appropriated to the commissioner to pay the costs for which the billings were made.

The commissioner of natural resources shall submit to the commissioner of finance
before the start of each fiscal year a work plan showing the estimated work to be done
during the coming year, the estimated cost of doing the work, and the positions and fees
that will be necessary. This account is exempted from statewide and agency indirect
cost payments.

Sec. 19.

Minnesota Statutes 2006, section 84.026, subdivision 1, is amended to read:

Subdivision 1.

Contracts.

The commissioner of natural resources is authorized
to enter into contractual agreements with any public or private entity for the provision
of statutorily prescribed natural resources services by the department. The contracts
shall specify the services to be provided. Except as provided under section 89.421, funds
generated in a contractual agreement made pursuant to this section shall be deposited in
the special revenue fund and are appropriated to the department for purposes of providing
the services specified in the contracts. The commissioner shall report revenues collected
and expenditures made under this subdivision to the chairs of the Committees on Ways and
Means in the house and Finance in the senate by January 1 of each odd-numbered year.

Sec. 20.

Minnesota Statutes 2006, section 84.027, is amended by adding a subdivision
to read:

Subd. 13a.

Game and fish expedited permanent rules.

In addition to the authority
granted in subdivision 13, the commissioner of natural resources may adopt rules under
section 14.389 that are authorized under:

(1) chapters 97A, 97B, and 97C to describe zone or permit area boundaries, to
designate fish spawning beds or fish preserves, to select hunters or anglers for areas,
to provide for registration of game or fish, to prevent or control wildlife disease, or to
correct errors or omissions in rules that do not have a substantive effect on the intent or
application of the original rule; or

(2) section 84D.12 to designate prohibited invasive species, regulated invasive
species, and unregulated nonnative species.

Sec. 21.

Minnesota Statutes 2006, section 84.0272, is amended by adding a subdivision
to read:

Subd. 5.

Easement information.

Parties to an easement purchased under the
authority of the commissioner must:

(1) specify in the easement all provisions that are perpetual in nature;

(2) file the easement with the county recorder or registrar of titles in the county
in which the land is located; and

(3) submit an electronic copy of the easement to the commissioner.

Sec. 22.

Minnesota Statutes 2006, section 84.0855, subdivision 1, is amended to read:

Subdivision 1.

Sales authorized; gift certificates.

The commissioner may
sell natural resources-related publications and maps; forest resource assessment
products; federal migratory waterfowl, junior duck, and other federal stamps; and other
nature-related merchandise, and may rent or sell items for the convenience of persons using
Department of Natural Resources facilities or services. The commissioner may sell gift
certificates for any items rented or sold. Notwithstanding section 16A.1285, a fee charged
by the commissioner under this section may include a reasonable amount in excess of the
actual cost to support Department of Natural Resources programs. The commissioner may
advertise the availability of a program or item offered under this section.

Sec. 23.

Minnesota Statutes 2006, section 84.0855, subdivision 2, is amended to read:

Subd. 2.

Receipts; appropriation.

Except as provided under section 89.421,
money received by the commissioner under this section or to buy supplies for the use of
volunteers, may be credited to one or more special accounts in the state treasury and is
appropriated to the commissioner for the purposes for which the money was received.
Money received from sales at the state fair shall be available for state fair related costs.
Money received from sales of intellectual property and software products or services shall
be available for development, maintenance, and support of software products and systems.

Sec. 24.

Minnesota Statutes 2006, section 84.777, is amended to read:

84.777 OFF-HIGHWAY VEHICLE USE OF STATE LANDS RESTRICTED.

Subdivision 1.

Designated trails.

(a) Except as otherwise allowed by law or rules
adopted by the commissioner, effective June 1, 2003, notwithstanding sections 84.787
to 84.805 and 84.92 to 84.929, the use of off-highway vehicles is prohibited on state
land administered by the commissioner of natural resources, and on county-administered
forest land within the boundaries of a state forest, except on roads and trails specifically
designated and posted by the commissioner for use by off-highway vehicles.

(b) Paragraph (a) does not apply to county-administered land within a state forest if
the county board adopts a resolution that modifies restrictions on the use of off-highway
vehicles on county-administered land within the forest.

Subd. 2.

Off-highway vehicle seasons.

(a) The commissioner shall prescribe
seasons for off-highway vehicle use on state forest lands. Except for designated forest
roads, a person must not operate an off-highway vehicle on state forest lands outside of
the seasons prescribed under this paragraph.

(b) The commissioner may designate and post winter trails on state forest lands
for use by off-highway vehicles.

(c) For the purposes of this subdivision, "state forest lands" means forest lands under
the authority of the commissioner as defined in section 89.001, subdivision 13, and lands
managed by the commissioner under section 282.011.

Subd. 3.

Mapped trails.

Except as provided in sections 84.926 and 84.928, after
completion of off-highway vehicle maps for the area, a person must not operate an
off-highway vehicle on state land that is not mapped for the type of off-highway vehicle.

Subd. 4.

Exemption from rulemaking.

Determinations of the commissioner under
this section may be by written order published in the State Register and are exempt from
the rulemaking provisions of chapter 14. Section 14.386 does not apply.

Sec. 25.

Minnesota Statutes 2006, section 84.780, is amended to read:

84.780 OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.

(a) The off-highway vehicle damage account is created in the natural resources fund.
Money in the off-highway vehicle damage account is appropriated to the commissioner of
natural resources for the repair or restoration of property damaged by the illegal operation
of off-highway vehicles or the operation of off-highway vehicles in an unpermitted area
after August 1, 2003, and for the costs of administration for this section. Before the
commissioner may make a payment from this account, the commissioner must determine
whether the damage to the property was caused by the unpermitted or illegal use of
off-highway vehicles, that the applicant has made reasonable efforts to identify the
responsible individual and obtain payment from the individual, and that the applicant has
made reasonable efforts to prevent reoccurrence. By June 30, 2008, the commissioner of
finance must transfer the remaining balance in the account to the off-highway motorcycle
account under section 84.794, the off-road vehicle account under section 84.803, and the
all-terrain vehicle account under section 84.927. The amount transferred to each account
must be proportionate to the amounts received in the damage account from the relevant
off-highway vehicle accounts.

(b) Determinations of the commissioner under this section may be made by written
order and are exempt from the rulemaking provisions of chapter 14. Section 14.386
does not apply.

(c) This section expires July 1, 2008 Money in the account is available until
expended.

Sec. 26.

[84.8045] RESTRICTIONS ON OFF-ROAD VEHICLE TRAILS.

Notwithstanding any provision of sections 84.797 to 84.805 or other law to the
contrary, the commissioner shall not permit land administered by the commissioner in
Cass, Crow Wing, and Hubbard Counties to be used or developed for trails primarily for
off-road vehicles as defined in section 84.797, subdivision 7, except:

(1) upon approval by the legislature; or

(2) in designated off-road vehicle use areas.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 27.

[84.9011] OFF-HIGHWAY VEHICLE SAFETY AND CONSERVATION
PROGRAM.

Subdivision 1.

Creation.

The commissioner of natural resources shall establish
a program to promote the safe and responsible operation of off-highway vehicles in a
manner that does not harm the environment.

Subd. 2.

Agreements.

(a) The commissioner shall enter into agreements with
organizations for volunteer services that promote the safe and responsible operation
of off-highway vehicles in a manner that does not harm the environment to maintain,
make improvements to, and monitor trails on state forest land and other public lands.
The organizations shall promote the operation of off-highway vehicles in a safe and
responsible manner that complies with the laws and rules that relate to the operation
of off-highway vehicles.

(b) The organizations may provide assistance to the department in locating,
recruiting, and training instructors for off-highway vehicle training programs.

(c) The commissioner may provide assistance to enhance the comfort and safety
of volunteers and to facilitate the implementation and administration of the safety and
conservation program.

(d) The commissioner shall establish standards, train, and certify organizations and
individuals participating as volunteers under this section. The training shall include:

(1) the identification of invasive species;

(2) correctly reporting the location of invasive species; and

(3) basic global positioning system operation.

Subd. 3.

Worker displacement prohibited.

The commissioner may not enter into
any agreement that has the purpose of or results in the displacement of public employees
by volunteers participating in the off-highway safety and conservation program under
this section. The commissioner must certify to the appropriate bargaining agent that the
work performed by a volunteer will not result in the displacement of currently employed
workers or workers on seasonal layoff or layoff from a substantially equivalent position,
including partial displacement such as reduction in hours of nonovertime work, wages, or
other employment benefits.

Subd. 4.

Off-Highway Vehicle Safety Advisory Council.

(a) The commissioner
of natural resources shall appoint an Off-Highway Vehicle Safety Advisory Council to
advise the commissioner on:

(1) off-highway vehicle safety; and

(2) standards and certification for organizations and individuals participating as
volunteers under this section.

Sec. 28.

Minnesota Statutes 2006, 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
political subdivision;

(2) vehicles registered in another state or country that have not been in this state
for more than 30 consecutive days; and

(3) vehicles used exclusively in organized track racing events; and

(4) vehicles that are 25 years old or older and were originally produced as a separate
identifiable make by a manufacturer.

Sec. 29.

Minnesota Statutes 2006, section 84.922, subdivision 5, is amended to read:

Subd. 5.

Fees for registration.

(a) The fee for a three-year registration of
an all-terrain vehicle under this section, other than those registered by a dealer or
manufacturer under paragraph (b) or (c), is:

(1) for public use before January 1, 2005, $23;

(2) for public use on January 1, 2005, and after, $30 $45;

(3) (2) for private use, $6; and

(4) (3) for a duplicate or transfer, $4.

(b) The total registration fee for all-terrain vehicles owned by a dealer and operated
for demonstration or testing purposes is $50 per year. Dealer registrations are not
transferable.

(c) The total registration fee for all-terrain vehicles owned by a manufacturer and
operated for research, testing, experimentation, or demonstration purposes is $150 per
year. Manufacturer registrations are not transferable.

(d) The fees collected under this subdivision must be credited to the all-terrain
vehicle account.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 30.

Minnesota Statutes 2006, section 84.927, subdivision 2, is amended to read:

Subd. 2.

Purposes.

Subject to appropriation by the legislature, money in the
all-terrain vehicle account may only be spent for:

(1) the education and training program under section 84.925;

(2) administration, enforcement, and implementation of sections 84.773 to 84.929;

(3) acquisition, maintenance, and development of vehicle trails and use areas;

(4) grant-in-aid programs to counties and municipalities to construct and maintain
all-terrain vehicle trails and use areas;

(5) grants-in-aid to local safety programs; and

(6) enforcement and public education grants to local law enforcement agencies.; and

(7) maintenance of minimum-maintenance forest roads designated under section
89.71, subdivision 5, and county forest roads that are part of a designated trail system
within state forest boundaries as established under section 89.021.

The distribution of funds made available through grant-in-aid programs must be
guided by the statewide comprehensive outdoor recreation plan.

Sec. 31.

Minnesota Statutes 2006, section 84.963, is amended to read:

84.963 PRAIRIE PLANT SEED PRODUCTION AREAS.

(a) The commissioner of natural resources shall study the feasibility of establishing
private or public prairie plant seed production areas within prairie land locations. If
prairie plant seed production is feasible, the commissioner may aid the establishment of
production areas. The commissioner may enter cost-share or sharecrop agreements with
landowners having easements for conservation purposes of ten or more years on their land
to commercially produce prairie plant seed of Minnesota origin. The commissioner may
only aid prairie plant seed production areas on agricultural land used to produce crops
before December 23, 1985, and cropped three out of five years between 1981 and 1985.

(b) The commissioner shall compile, prepare, and electronically disseminate to
the public prairie establishment guidance materials and resources. The resources must
provide information and guidance on project planning, seed selection including ecotype
and species mix, site preparation, seeding, maintenance, and technical service providers.
The commissioner shall use actual prairie restoration projects under development on
state-owned land to illustrate and demonstrate the practices described.

Sec. 32.

Minnesota Statutes 2006, section 84D.02, is amended by adding a subdivision
to read:

Subd. 7.

Contracts for services for emergency invasive species prevention work;
commissions to persons employed.

The commissioner may contract for or accept the
services of any persons whose aid is available, temporarily or otherwise, in emergency
invasive species prevention work, either gratuitously or for compensation not in excess of
the limits provided by law with respect to the employment of labor by the commissioner.
The commissioner may issue a commission, or other written evidence of authority, to any
person whose services are so arranged for and may thereby empower the person to act,
temporarily or otherwise, in any other capacity, with powers and duties as may be specified
in the commission or other written evidence of authority, but not in excess of the powers
conferred by law. The commissioner of agriculture, under authority provided by law, shall
cooperate with the commissioner in emergency control of invasive species prevention.

Sec. 33.

Minnesota Statutes 2006, section 84D.03, subdivision 1, is amended to read:

Subdivision 1.

Infested waters; restricted activities.

(a) The commissioner shall
designate a water of the state as an infested water if the commissioner determines that:

(1) the water contains a population of an aquatic invasive species that could spread
to other waters if use of the water and related activities are not regulated to prevent this; or

(2) the water is highly likely to be infested by an aquatic invasive species because it
is connected to a water that contains a population of an aquatic invasive species.

(b) When determining which invasive species comprise infested waters, the
commissioner shall consider:

(1) the extent of a species distribution within the state;

(2) the likely means of spread for a species; and

(3) whether regulations specific to infested waters containing a specific species
will effectively reduce that species' spread.

(c) The presence of common carp and curly-leaf pondweed shall not be the basis for
designating a water as infested.

(d) The designation of infested waters by the commissioner shall be by written order
published in the State Register. Designations are not subject to the rulemaking provisions
of chapter 14 and section 14.386 does not apply.

Sec. 34.

Minnesota Statutes 2006, section 84D.12, subdivision 1, is amended to read:

Subdivision 1.

Required rules.

The commissioner shall adopt rules:

(1) designating infested waters, prohibited invasive species, regulated invasive
species, and unregulated nonnative species of aquatic plants and wild animals;

(2) governing the application for and issuance of permits under this chapter, which
rules may include a fee schedule; and

(3) governing notification under section 84D.08.

Sec. 35.

Minnesota Statutes 2006, section 84D.12, subdivision 3, is amended to read:

Subd. 3.

Expedited rules.

The commissioner may adopt rules under section 84.027,
subdivision 13, that designate:

(1) prohibited invasive species of aquatic plants and wild animals;

(2) regulated invasive species of aquatic plants and wild animals; and

(3) unregulated nonnative species of aquatic plants and wild animals; and

(4) infested waters.

Sec. 36.

Minnesota Statutes 2006, section 84D.13, subdivision 7, is amended to read:

Subd. 7.

Satisfaction of civil penalties.

A civil penalty is due and a watercraft
license suspension is effective 30 days after issuance of the civil citation. A civil penalty
collected under this section is payable to the commissioner and must be credited to the
water recreation account invasive species account.

Sec. 37.

Minnesota Statutes 2006, section 84D.14, is amended to read:

84D.14 EXEMPTIONS.

This chapter does not apply to:

(1) pathogens and terrestrial arthropods regulated under sections 18G.01 to ; or

(2) mammals and birds defined by statute as livestock.

Sec. 38.

[84D.15] INVASIVE SPECIES ACCOUNT.

Subdivision 1.

Creation.

The invasive species account is created in the state
treasury in the natural resources fund.

Subd. 2.

Receipts.

Money received from surcharges on watercraft licenses under
section 86B.415, subdivision 7, and civil penalties under section 84D.13 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).

Subd. 3.

Use of money in account.

Money credited to the invasive species account
in subdivision 2 shall be used for management of invasive species and implementation of
this chapter as it pertains to invasive species, including control, public awareness, law
enforcement, assessment and monitoring, management planning, and research.

Sec. 39.

Minnesota Statutes 2006, section 85.013, is amended by adding a subdivision
to read:

Subd. 11b.

Greenleaf Lake State Recreation Area, which is hereby renamed from
Greenleaf Lake State Park.

Sec. 40.

[85.0146] CUYUNA COUNTRY STATE RECREATION AREA;
CITIZENS ADVISORY COUNCIL.

Subdivision 1.

Advisory council created.

The Cuyuna Country State Recreation
Area Citizens Advisory Council is established. Membership on the advisory council
shall include:

(1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers
Board;

(2) a representative of the Croft Mine Historical Park Joint Powers Board;

(3) a designee of the Cuyuna Range Mineland Reclamation Committee who has
worked as a miner in the local area;

(4) a representative of the Crow Wing County Board;

(5) an elected state official;

(6) a representative of the Grand Rapids regional office of the Department of Natural
Resources;

(7) a designee of the Iron Range Resources and Rehabilitation Board;

(8) a designee of the local business community selected by the area chambers of
commerce;

(9) a designee of the local environmental community selected by the Crow Wing
County District 5 commissioner;

(10) a designee of a local education organization selected by the Crosby-Ironton
School Board;

(11) a designee of one of the recreation area user groups selected by the Cuyuna
Range Chamber of Commerce; and

(12) a member of the Cuyuna Country Heritage Preservation Society.

Subd. 2.

Administration.

(a) The advisory council must meet at least four times
annually. The council shall elect a chair and meetings shall be at the call of the chair.

(b) Members of the advisory council shall serve as volunteers for two-year terms
with the ability to be reappointed. Members shall accept no per diem.

(c) The state recreation area manager may attend the council meetings and advise
the council of issues in management of the recreation area.

(d) Before a major decision is implemented in the Cuyuna Country State Recreation
Area, the area manager must consult with the council and take into consideration any
council comments or advice that may impact the major decision.

Sec. 41.

Minnesota Statutes 2006, section 85.054, is amended by adding a subdivision
to read:

Subd. 13.

Cuyuna Country State Recreation Area.

A state park permit is not
required and a fee may not be charged for motor vehicle entry or parking at Croft Mine
Historical Park and Portsmouth Mine Lake Overlook in Cuyuna Country State Recreation
Area, except for overnight camping.

Sec. 42.

Minnesota Statutes 2006, section 85.32, subdivision 1, is amended to read:

Subdivision 1.

Areas marked.

The commissioner of natural resources is authorized
in cooperation with local units of government and private individuals and groups when
feasible to mark canoe and boating routes on the Little Fork, Big Fork, Minnesota,
St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing,
St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift
County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in Swift County
to Montevideo in Chippewa County, Long Prairie, Red River of the North, Sauk, Otter
Tail, Redwood, and Crow Rivers which have historic and scenic values and to mark
appropriately points of interest, portages, camp sites, and all dams, rapids, waterfalls,
whirlpools, and other serious hazards which are dangerous to canoe and watercraft
travelers.

Sec. 43.

Minnesota Statutes 2006, section 86B.706, subdivision 2, is amended to read:

Subd. 2.

Money deposited in account.

The following shall be deposited in the state
treasury and credited to the water recreation account:

(1) fees and surcharges from titling and licensing of watercraft under this chapter;

(2) fines, installment payments, and forfeited bail according to section 86B.705,
subdivision 2;

(3) civil penalties according to section 84D.13;

(4) mooring fees and receipts from the sale of marine gas at state-operated or
state-assisted small craft harbors and mooring facilities according to section 86A.21;

(5) (4) the unrefunded gasoline tax attributable to watercraft use under section
296A.18; and

(6) (5) fees for permits issued to control or harvest aquatic plants other than wild
rice under section 103G.615, subdivision 2.

Sec. 44.

Minnesota Statutes 2006, section 88.01, is amended by adding a subdivision
to read:

Subd. 27.

Community forest.

"Community forest" means public and private trees
and associated plants occurring individually, in small groups, or under forest conditions
within a municipality.

Sec. 45.

Minnesota Statutes 2006, section 88.79, subdivision 1, is amended to read:

Subdivision 1.

Employment of competent foresters; service to private owners.

The commissioner of natural resources may employ competent foresters to furnish owners
of forest lands within the state of Minnesota who own not more than 1,000 acres of forest
land, forest management services consisting of:

(1) advice in management and protection of timber, including written stewardship
and forest management plans;

(2) selection and marking of timber to be cut;

(3) measurement of products;

(4) aid in marketing harvested products;

(5) provision of tree-planting equipment; and

(6) advice in community forest management; and

(7) such other services as the commissioner of natural resources deems necessary
or advisable to promote maximum sustained yield of timber and other benefits upon
such forest lands.

Sec. 46.

Minnesota Statutes 2006, section 88.79, subdivision 2, is amended to read:

Subd. 2.

Charge for service; receipts to special revenue fund.

The commissioner
of natural resources may charge the owner receiving such services such sums as the
commissioner shall determine to be fair and reasonable. The charges must account for
differences in the value of timber and other benefits. The receipts from such services shall
be credited to the special revenue fund and are annually appropriated to the commissioner
for the purposes specified in subdivision 1.

Sec. 47.

Minnesota Statutes 2006, section 88.82, is amended to read:

88.82 MINNESOTA RELEAF PROGRAM.

The Minnesota releaf program is established in the Department of Natural Resources
to encourage, promote, and fund the inventory, planting, assessment, maintenance, and
improvement, protection, and restoration of trees and forest resources in this state to
enhance community forest ecosystem health and sustainability as well as to reduce
atmospheric carbon dioxide levels and promote energy conservation.

Sec. 48.

Minnesota Statutes 2006, section 89.001, subdivision 8, is amended to read:

Subd. 8.

Forest resources.

"Forest resources" means those natural assets of forest
lands, including timber and other forest crops; biological diversity; recreation; fish and
wildlife habitat; wilderness; rare and distinctive flora and fauna; air; water; soil; climate;
and educational, aesthetic, and historic values.

Sec. 49.

Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision
to read:

Subd. 15.

Forest pest.

"Forest pest" means any vertebrate or invertebrate animal,
plant pathogen, or plant that is determined by the commissioner to be harmful, injurious,
or destructive to forests or timber.

Sec. 50.

Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision
to read:

Subd. 16.

Shade tree pest.

"Shade tree pest" means any vertebrate or invertebrate
animal, plant pathogen, or plant that is determined by the commissioner to be harmful,
injurious, or destructive to shade trees or community forests.

Sec. 51.

Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision
to read:

Subd. 17.

Community forest.

"Community forest" has the meaning given under
section 88.01, subdivision 27.

Sec. 52.

Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision
to read:

Subd. 18.

Shade tree.

"Shade tree" means a woody perennial grown primarily
for aesthetic or environmental purposes.

Sec. 53.

Minnesota Statutes 2006, section 89.01, subdivision 1, is amended to read:

Subdivision 1.

Best methods.

The commissioner shall ascertain and observe the
best methods of reforesting cutover and denuded lands, foresting waste lands, preventing
destruction minimizing loss or damage of forests and lands forest resources by fire, forest
pests, or shade tree pests, administering forests on forestry principles, encouraging private
owners to preserve and grow trees or timber for commercial or other purposes, and
conserving the forests around the head waters of streams and on the watersheds of the state.

Sec. 54.

Minnesota Statutes 2006, section 89.01, subdivision 2, is amended to read:

Subd. 2.

General duties.

The commissioner shall execute all rules pertaining
to forestry and forest protection within the jurisdiction of the state; have charge of the
work of protecting all forests and lands from fire, forest pests, and shade tree pests;
shall investigate the origin of all forest fires; and prosecute all violators as provided by
law; shall prepare and print for public distribution an abstract of the forest fire laws of
Minnesota, together with such rules as may be formulated.

The commissioner shall prepare printed notices calling attention to the dangers from
forest fires and cause them to be posted in conspicuous places.

Sec. 55.

Minnesota Statutes 2006, section 89.01, subdivision 4, is amended to read:

Subd. 4.

Forest plans.

The commissioner shall cooperate with the several
departments of the state and federal governments and with counties, towns, municipalities,
corporations, or individuals in the preparation of plans for forest protection, and
management, and planting or replacement of trees, in wood lots, and community forests
or on timber tracts, using such influence as time will permit toward the establishment of
scientific forestry principles in the management, protection, and promotion of the forest
resources of the state.

Sec. 56.

Minnesota Statutes 2006, section 89.22, subdivision 2, is amended to read:

Subd. 2.

Receipts to natural resources special revenue fund.

Fees collected under
subdivision 1 shall be credited to a forest land use account in the natural resources fund
the special revenue fund and are annually appropriated to the commissioner to recoup the
costs of developing, operating, and maintaining facilities necessary for the specified uses
in subdivision 1 or to prevent or mitigate resource impacts of those uses.

EFFECTIVE DATE.

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

Sec. 57.

[89.421] FOREST RESOURCE ASSESSMENT PRODUCTS AND
SERVICES ACCOUNT.

Subdivision 1.

Creation.

The forest resource assessment products and services
account is created in the state treasury in the natural resources fund.

Subd. 2.

Receipts.

Money received from forest resource assessment product sales
and services provided by the commissioner under sections 84.025, subdivision 9; 84.026;
and 84.0855 shall be credited to the forest resource assessment products and services
account. Forest resource assessment products and services include the sale of aerial
photography, remote sensing, and satellite imagery products and services.

Subd. 3.

Use of money in account.

Money credited to the forest resource
assessment products and services account under subdivision 2 is annually appropriated to
the commissioner and shall be used to maintain the staff and facilities producing the aerial
photography, remote sensing, and satellite imagery products and services.

Sec. 58.

Minnesota Statutes 2006, section 89.51, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

For the purposes of sections 89.51 to 89.61 89.64 the
terms described in this section have the meanings ascribed to them.

Sec. 59.

Minnesota Statutes 2006, section 89.51, subdivision 6, is amended to read:

Subd. 6.

Infestation.

"Infestation," includes actual, potential, incipient, or
emergency emergent infestation or infection by forest pests or shade tree pests.

Sec. 60.

Minnesota Statutes 2006, section 89.51, subdivision 9, is amended to read:

Subd. 9.

Forest land or forest.

"Forest land" or "forest," means land on which
occurs a stand or potential stand of trees valuable for timber products, watershed or
wildlife protection, recreational uses, community forest benefits, or other purposes, and
shall include lands owned or controlled by the state of Minnesota.

Sec. 61.

Minnesota Statutes 2006, section 89.52, is amended to read:

89.52 SURVEYS, INVESTIGATIONS.

The commissioner shall make surveys and investigations to determine the presence
of infestations of forest pests or shade tree pests. For this purpose, duly designated
representatives of the commissioner may enter at reasonable times on public and private
lands for the purpose of conducting such to conduct the surveys and investigations.

Sec. 62.

Minnesota Statutes 2006, section 89.53, is amended to read:

89.53 CONTROL OF FOREST PESTS AND SHADE TREE PESTS.

Subdivision 1.

Commissioner's duties; notice of control measures.

Whenever the
commissioner finds that an area in the state is infested or threatened to be infested with
forest pests or shade tree pests, the commissioner shall determine whether measures of
control are needed and are available, what control measures are to be applied, and the area
over which the control measures shall be applied. The commissioner shall prescribe
a proposed zone of infestation covering the area in which control measures are to be
applied and shall publish notice of the proposal once a week, for two successive weeks
in a newspaper having a general circulation in each county located in whole or in part
in the proposed zone of infestation. Prescribing zones of infestation is and prescribing
measures of control are exempt from the rulemaking provisions of chapter 14 and section
14.386 does not apply.

Subd. 2.

Notice requirements; public comment.

The notice shall include a
description of the boundaries of the proposed zone of infestation, the control measures
to be applied, and a time and place where municipalities and owners of forest lands or
shade trees in the zone may show cause orally or in writing why the zone and control
measures should or should not be established. The commissioner shall consider any
statements received in determining whether the zone shall be established and the control
measures applied.

Subd. 3.

Experimental programs.

The commissioner may establish experimental
programs for the control of forest pests or shade tree pests and for municipal reforestation.

Sec. 63.

Minnesota Statutes 2006, section 89.54, is amended to read:

89.54 ZONES OF INFESTATION, ESTABLISHMENT.

Upon the decision by the commissioner that the establishment of a zone of
infestation is necessary, the commissioner shall make a written order establishing said
the zone, and upon making said the order, said the zone shall be established. Notice of the
establishment of the zone shall thereupon be published in a newspaper having a general
circulation in each county located in whole or in part in the proposed zone and posted on
the Department of Natural Resources Web site.

Sec. 64.

Minnesota Statutes 2006, section 89.55, is amended to read:

89.55 INFESTATION CONTROL, COSTS.

Upon the establishment of the zone of infestation, the commissioner may apply
measures of infestation prevention and control on public and private forest and other
lands within such zone and to any trees, timber, plants or shrubs thereon, wood or wood
products, or contaminated soil harboring or which may harbor the forest pests or shade
tree pests. For this purpose, the duly authorized representatives of the commissioner
are authorized to enter upon any lands, public or private within such the zone. The
commissioner may enter into agreements with owners of the lands in the zone covering
the control work on their lands, and fixing the pro rata basis on which the cost of such the
work will be shared between the commissioner and said the owner.

Sec. 65.

Minnesota Statutes 2006, section 89.56, subdivision 1, is amended to read:

Subdivision 1.

Statement of expenses; cost to owners.

At the end of each fiscal
year and upon completion of the infestation control measures in any zone of infestation,
the commissioner shall prepare a certified statement of expenses incurred in carrying
out such the measures, including expenses of owners covered by agreements entered
into pursuant to section 89.55. The statement shall show the amount which that the
commissioner determines to be its the commissioner's share of the expenses. The share of
the commissioner may include funds and the value of other contributions made available
by the federal government and other cooperators. The balance of such the costs shall
constitute a charge on an acreage basis as provided herein against the owners of lands in
the zone containing trees valuable or potentially valuable for commercial timber purposes
and affected or likely to be affected by the forest pests or shade tree pests for which control
measures were conducted. In fixing the rates at which charges shall be made against each
owner, the commissioner shall consider the present commercial value of the trees on the
land, the present and potential benefits to such the owner from the application of the
control measures, and the cost of applying such the measures to the land, and such other
factors as in the discretion of the commissioner will enable determination of an equitable
distribution of the cost to all such owners. No charge shall be made against owners to the
extent that they have individually or as members of a cooperative association contributed
funds, supplies, or services pursuant to agreement under this section.

Sec. 66.

Minnesota Statutes 2006, section 89.56, subdivision 3, is amended to read:

Subd. 3.

Collection.

The unpaid charges assessed under sections 89.51 to
89.64 and the actions of the commissioner on any protests filed pursuant to subdivision 2,
shall be reported to the tax levying authority for the county in which the lands for which
the charges are assessed are situated and shall be made a public record. Any charges
finally determined to be due shall become a special assessment and shall be payable
in the same manner and with the same interest and penalty charges and with the same
procedure for collection as apply to ad valorem property taxes. Upon collection of the
charges, the county treasurer shall forthwith cause the amounts thereof to be paid to the
forest pest and shade tree pest control fund account created by section 89.58. Any unpaid
charge or lien against the lands shall not be affected by the sale thereof or by dissolution
of the zone of infestation.

Sec. 67.

Minnesota Statutes 2006, section 89.57, is amended to read:

89.57 DISSOLUTION OF ZONE INFESTATION.

Whenever the commissioner shall determine that forest pest or shade tree pest
control work within an established zone of infestation is no longer necessary or feasible,
the commissioner shall dissolve the zone.

Sec. 68.

Minnesota Statutes 2006, section 89.58, is amended to read:

89.58 FOREST PEST AND SHADE TREE PEST CONTROL ACCOUNT.

All money collected under the provisions of sections 89.51 to 89.61 89.64, together
with such money as may be appropriated by the legislature or allocated by the Legislative
Advisory Commission for the purposes of sections 89.51 to , and such money
as may be contributed or paid by the federal government, or any other public or private
agency, organization or individual, shall be deposited in the state treasury, to the credit
of the forest pest and shade tree pest control account, which account is hereby created,
and any moneys therein are appropriated to the commissioner for use in carrying out the
purposes hereof of sections 89.51 to 89.64.

Sec. 69.

Minnesota Statutes 2006, section 89.59, is amended to read:

89.59 COOPERATION.

The commissioner may cooperate with the United States or agencies thereof, other
agencies of the state, county or municipal governments, agencies of neighboring states, or
other public or private organizations or individuals and may accept such funds, equipment,
supplies, or services from cooperators and others as it the commissioner may provide in
agreements with the United States or its agencies for matching of federal funds as required
under laws of the United States relating to forest pests and shade tree pests.

Sec. 70.

Minnesota Statutes 2006, section 89.60, is amended to read:

89.60 DUTIES, RULES; COMMISSIONER.

The commissioner is authorized to employ personnel in accordance with the laws of
this state, to procure necessary equipment, supplies, and service, to enter into contracts, to
provide funds to any agency of the United States for work or services under sections 89.51
to 89.61 89.64, and to designate or appoint, as its the commissioner's representatives,
employees of its cooperators, including employees of the United States or any agency
thereof. The commissioner may prescribe rules for carrying out the purposes hereof
of this section.

Sec. 71.

Minnesota Statutes 2006, section 89.61, is amended to read:

89.61 ACT SUPPLEMENTAL.

Provisions of sections 89.51 to 89.61 89.64 are supplementary to and not to be
construed to repeal existing legislation.

Sec. 72.

[89.62] SHADE TREE PEST CONTROL; GRANT PROGRAM.

Subdivision 1.

Grants.

The commissioner may make grants to aid in the control of
a shade tree pest. To be eligible, a grantee must have a pest control program approved
by the commissioner that:

(1) defines tree ownership and who is responsible for the costs associated with
control measures;

(2) defines the zone of infestation within which the control measures are to be
applied;

(3) includes a tree inspector certified under section 89.63 and having the authority to
enter and inspect private lands;

(4) has the means to enforce measures needed to limit the spread of shade tree
pests; and

(5) provides that grant money received will be deposited in a separate fund to be
spent only for the purposes authorized by this section.

Subd. 2.

Grant eligibility.

The following are eligible for grants under this section:

(1) a home rule charter or statutory city or a town that exercises municipal powers
under section 368.01 or any general or special law;

(2) a special park district organized under chapter 398;

(3) a special-purpose park and recreation board;

(4) a soil and water conservation district;

(5) a county; or

(6) any other organization with the legal authority to enter into contractual
agreements.

Subd. 3.

Rules; applicability to municipalities.

The rules and procedures adopted
under this section by the commissioner apply in a municipality unless the municipality
adopts an ordinance determined by the commissioner to be more stringent than the rules
and procedures of the commissioner. The rules and procedures of the commissioner or
the municipality apply to all state agencies, special purpose districts, and metropolitan
commissions as defined in section 473.121, subdivision 5a, that own or control land
adjacent to or within a zone of infestation.

Sec. 73.

[89.63] CERTIFICATION OF TREE INSPECTORS.

(a) The governing body of a municipality may appoint a qualified tree inspector.
Two or more municipalities may jointly appoint a tree inspector for the purpose of
administering their respective pest control programs.

(b) Upon a determination by the commissioner that a candidate for the position
of tree inspector is qualified, the commissioner shall issue a certificate of qualification
to the tree inspector. The certificate is valid for one year. A person certified as a tree
inspector by the commissioner may enter and inspect any public or private property that
might harbor forest pests or shade tree pests. The commissioner shall offer an annual tree
inspector certification workshop, upon completion of which participants are qualified
as tree inspectors.

(c) The commissioner may suspend and, upon notice and hearing, decertify a
tree inspector if the tree inspector fails to act competently or in the public interest in
the performance of duties.

Sec. 74.

[89.64] EXEMPTIONS.

This chapter does not supersede the authority of the Department of Agriculture
under chapter 18G.

Sec. 75.

Minnesota Statutes 2006, section 89A.11, is amended to read:

89A.11 REPEALER.

Sections 89A.01; 89A.02; 89A.03; 89A.04; 89A.05; 89A.06; 89A.07; 89A.08;
89A.09; 89A.10; and 89A.11, are repealed June 30, 2007 2017.

Sec. 76.

Minnesota Statutes 2006, section 90.161, is amended by adding a subdivision
to read:

Subd. 4.

Change of security.

Prior to any harvest activity, or activities incidental
to the preparation for harvest, a purchaser having posted a bond for 100 percent of the
purchase price of a sale may request the release of the bond and the commissioner shall
grant the release upon cash payment to the commissioner of 15 percent of the appraised
value of the sale, plus eight percent interest on the appraised value of the sale from the
date of purchase to the date of release.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 77.

Minnesota Statutes 2006, section 93.0015, subdivision 3, is amended to read:

Subd. 3.

Expiration.

Notwithstanding section 15.059, subdivision 5, or other law to
the contrary, the committee expires June 30, 2007 2011.

Sec. 78.

Minnesota Statutes 2006, section 93.22, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) All payments under sections 93.14 to 93.285 shall
be made to the Department of Natural Resources and shall be credited according to this
section.

(a) If the lands or minerals and mineral rights covered by a lease are held by the state
by virtue of an act of Congress, payments made under the lease shall be credited to the
permanent fund of the class of land to which the leased premises belong.

(b) If a lease covers the bed of navigable waters, payments made under the lease
shall be credited to the permanent school fund of the state.

(c) If the lands or minerals and mineral rights covered by a lease are held by the
state in trust for the taxing districts, payments made under the lease shall be distributed
annually on the first day of September as follows:

(1) 20 percent to the general fund; and

(2) 80 percent to the respective counties in which the lands lie, to be apportioned
among the taxing districts interested therein as follows: county, three-ninths; town or city,
two-ninths; and school district, four-ninths.

(d) Except as provided under this section and except where the disposition of
payments may be otherwise directed by law, all payments shall be paid into the general
fund of the state.

(b) Twenty percent of all payments under sections to shall be
credited to the minerals management account in the natural resources fund as costs for
the administration and management of state mineral resources by the commissioner of
natural resources.

(c) The remainder of the payments shall be credited as follows:

(1) if the lands or minerals and mineral rights covered by a lease are held by the state
by virtue of an act of Congress, payments made under the lease shall be credited to the
permanent fund of the class of land to which the leased premises belong;

(2) if a lease covers the bed of navigable waters, payments made under the lease
shall be credited to the permanent school fund of the state;

(3) if the lands or minerals and mineral rights covered by a lease are held by the state
in trust for the taxing districts, payments made under the lease shall be distributed annually
on the first day of September to the respective counties in which the lands lie, to be
apportioned among the taxing districts interested therein as follows: county, three-ninths;
town or city, two-ninths; and school district, four-ninths;

(4) if the lands or mineral rights covered by a lease became the absolute property of
the state under the provisions of chapter 84A, payments made under the lease shall be
distributed as follows: county containing the land from which the income was derived,
five-eighths; and general fund of the state, three-eighths; and

(5) except as provided under this section and except where the disposition of
payments may be otherwise directed by law, payments made under a lease shall be paid
into the general fund of the state.

Sec. 79.

Minnesota Statutes 2006, section 97A.045, is amended by adding a
subdivision to read:

Subd. 12.

Establishing fees.

Notwithstanding section 16A.1283, the commissioner
may, by written order published in the State Register, establish fees providing for the use
of state wildlife management area or aquatic management area lands for specific purposes,
including dog trials, special events, and commercial uses. The fees are not subject to the
rulemaking provisions of chapter 14 and section 14.386 does not apply.

Sec. 80.

Minnesota Statutes 2006, section 97A.055, subdivision 4, is amended to read:

Subd. 4.

Game and fish annual reports.

(a) By December 15 each year,
the commissioner shall submit to the legislative committees having jurisdiction over
appropriations and the environment and natural resources reports on each of the following:

(1) the amount of revenue from the following and purposes for which expenditures
were made:

(i) the small game license surcharge under section 97A.475, subdivision 4;

(ii) the Minnesota migratory waterfowl stamp under section 97A.475, subdivision
5, clause (1);

(iii) the trout and salmon stamp under section 97A.475, subdivision 10;

(iv) the pheasant stamp under section 97A.475, subdivision 5, clause (2); and

(v) the turkey stamp under section 97A.475, subdivision 5, clause (3); and

(vi) the deer license donations and surcharges under section 97A.475, subdivisions
3, paragraph (b), and 3a;

(2) the amounts available under section 97A.075, subdivision 1, paragraphs (b) and
(c), and the purposes for which these amounts were spent;

(3) money credited to the game and fish fund under this section and purposes for
which expenditures were made from the fund;

(4) outcome goals for the expenditures from the game and fish fund; and

(5) summary and comments of citizen oversight committee reviews under
subdivision 4b.

(b) The report must include the commissioner's recommendations, if any, for
changes in the laws relating to the stamps and surcharge referenced in paragraph (a).

Sec. 81.

Minnesota Statutes 2006, section 97A.065, is amended by adding a
subdivision to read:

Subd. 6.

Deer license donations and surcharges.

(a) The surcharges and donations
collected under section 97A.475, subdivision 3, paragraph (b), and subdivision 3a,
shall be deposited in an account in the special revenue fund and are appropriated to
the commissioner for deer management, including for grants or payments to agencies,
organizations, or individuals for assisting with the cost of processing deer taken for
population management purposes for venison donation programs. None of the additional
license fees shall be transferred to any other agency for administration of programs other
than venison donation. If any money transferred by the commissioner is not used for a
venison donation program, it shall be returned to the commissioner.

(b) By February 10, 2010, the commissioner shall report to the legislature on the
participation in and the effectiveness of the venison donation program.

Sec. 82.

Minnesota Statutes 2006, section 97A.133, is amended by adding a
subdivision to read:

Subd. 66. Vermillion Highlands Wildlife Management Area, Dakota County.

Sec. 83.

Minnesota Statutes 2006, section 97A.205, is amended to read:

97A.205 ENFORCEMENT OFFICER POWERS.

An enforcement officer is authorized to:

(1) execute and serve court issued warrants and processes relating to wild animals,
wild rice, public waters, water pollution, conservation, and use of water, in the same
manner as a sheriff;

(2) enter any land to carry out the duties and functions of the division;

(3) make investigations of violations of the game and fish laws;

(4) take an affidavit, if it aids an investigation;

(5) arrest, without a warrant, a person who is detected in the actual violation of the
game and fish laws, a provision of chapters 84, 84A, 84D, 85, 86A, 88 to 97C, 103E,
103F, 103G, sections 86B.001 to 86B.815, 89.51 to ; or 609.66, subdivision 1,
clauses (1), (2), (5), and (7); and 609.68; and

(6) take an arrested person before a court in the county where the offense was
committed and make a complaint.

Nothing in this section grants an enforcement officer any greater powers than other
licensed peace officers.

Sec. 84.

Minnesota Statutes 2006, section 97A.405, subdivision 2, is amended to read:

Subd. 2.

Personal possession.

(a) A person acting under a license or traveling from
an area where a licensed activity was performed must have in personal possession either:
(1) the proper license, if the license has been issued to and received by the person; or (2)
the proper license identification number or stamp validation, if the license has been sold to
the person by electronic means but the actual license has not been issued and received.

(b) If possession of a license or a license identification number is required, a person
must exhibit, as requested by a conservation officer or peace officer, either: (1) the proper
license if the license has been issued to and received by the person; or (2) the proper
license identification number or stamp validation and a valid state driver's license, state
identification card, or other form of identification provided by the commissioner, if the
license has been sold to the person by electronic means but the actual license has not
been issued and received.

(c) If the actual license has been issued and received, a receipt for license fees, a
copy of a license, or evidence showing the issuance of a license, including the license
identification number or stamp validation, does not entitle a licensee to exercise the rights
or privileges conferred by a license.

(d) A license or stamp issued electronically and not immediately provided to the
licensee shall be mailed to the licensee within 30 days of purchase of the license or stamp
validation, except for a pictorial turkey stamp or a pictorial trout and salmon stamp. A
pictorial turkey stamp or a pictorial, migratory waterfowl, pheasant, or trout and salmon
stamp shall be mailed provided to the licensee after purchase of a license or stamp
validation only if the licensee pays an additional $2 fee.

Sec. 85.

Minnesota Statutes 2006, section 97A.411, subdivision 1, is amended to read:

Subdivision 1.

License period.

(a) Except as provided in paragraphs (b), (c), and
(d), and (e), a license is valid during the lawful time within the license year that the
licensed activity may be performed. A license year begins on the first day of March and
ends on the last day of February.

(b) A license issued under section 97A.475, subdivision 6, clause (5), 97A.475,
subdivision 7, clause (2), (3), (5), or (6), or 97A.475, subdivision 12, clause (2), is valid
for the full license period even if this period extends into the next license year, provided
that the license period selected by the licensee begins at the time of issuance.

(c) When the last day of February falls on a Saturday, an annual resident or
nonresident fish house or dark house license, including a rental fish house or dark house
license, obtained for the license year covering the last day of February, is valid through
Sunday, March 1 and the angling license of the fish house licensee is extended through
March 1.

(d) A lifetime license issued under section 97A.473 or 97A.474 is valid during the
lawful time within the license year that the licensed activity may be performed for the
lifetime of the licensee.

(e) A three-year fish house or dark house license is valid during the license year that
it is purchased and the two succeeding license years.

Sec. 86.

Minnesota Statutes 2006, section 97A.451, subdivision 3a, is amended to read:

Subd. 3a.

Nonresidents under age 16 18; small game.

(a) A nonresident under
age 16 18 may obtain a small game license at the resident fee under section 97A.475,
subdivision 2, clause (2), if the nonresident:

(1) possesses a firearms safety certificate; or

(2) if age 13 or under, is accompanied by a parent or guardian when purchasing
the license.

(b) A nonresident age 13 or under must be accompanied by a parent or guardian
to take small game. A nonresident age 12 or under is not required to possess a firearms
safety certificate under section 97B.020 to take small game.

Sec. 87.

Minnesota Statutes 2006, section 97A.465, is amended by adding a
subdivision to read:

Subd. 1a.

Spouses of residents on active military duty.

Notwithstanding section
97A.405, subdivision 5, the spouse of a resident who is on active military duty may obtain
resident hunting and fishing licenses.

Sec. 88.

Minnesota Statutes 2006, section 97A.465, is amended by adding a
subdivision to read:

Subd. 1b.

Residents discharged from active service.

(a) A resident who has served
at any time during the preceding 24 months in federal active service, as defined in section
190.05, subdivision 5c, outside the United States as a member of the National Guard, or as
a reserve component or active duty member of the United States armed forces and has
been discharged from active service may take small game and fish without a license if the
resident possesses official military discharge papers. The resident must obtain the seals,
tags, and coupons required of a licensee, which must be furnished without charge.

(b) The commissioner shall issue, without fee, a deer license to a resident who has
served at any time during the preceding 24 months in federal active service, as defined
in section 190.05, subdivision 5c, outside the United States as a member of the National
Guard, or as a reserve component or active duty member of the United States armed
forces and has been discharged from active service. Eligibility under this paragraph is
limited to one license per resident.

Sec. 89.

Minnesota Statutes 2006, section 97A.473, subdivision 3, is amended to read:

Subd. 3.

Lifetime small game hunting license; fee.

(a) A resident lifetime small
game hunting license authorizes a person to hunt and trap small game in the state. The
license authorizes those hunting and trapping activities authorized by the annual resident
small game hunting license and trapping licenses. The license does not include a turkey
stamp validation or any other hunting stamps required by law.

(b) The fees for a resident lifetime small game hunting license are:

(1) age 3 and under, $217;

(2) age 4 to age 15, $290;

(3) age 16 to age 50, $363; and

(4) age 51 and over, $213.

EFFECTIVE DATE.

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

Sec. 90.

Minnesota Statutes 2006, section 97A.473, subdivision 5, is amended to read:

Subd. 5.

Lifetime sporting license; fee.

(a) A resident lifetime sporting license
authorizes a person to take fish by angling and hunt and trap small game in the state.
The license authorizes those activities authorized by the annual resident angling and,
resident small game hunting, and resident trapping licenses. The license does not include
a trout and salmon stamp validation, a turkey stamp validation, or any other hunting
stamps required by law.

(b) The fees for a resident lifetime sporting license are:

(1) age 3 and under, $357;

(2) age 4 to age 15, $480;

(3) age 16 to age 50, $613; and

(4) age 51 and over, $413.

EFFECTIVE DATE.

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

Sec. 91.

Minnesota Statutes 2006, section 97A.475, subdivision 3, is amended to read:

Subd. 3.

Nonresident hunting.

(a) Fees for the following licenses, to be issued
to nonresidents, are:

(1) for persons age 18 and older to take small game, $73;

(2) for persons age 18 and older to take deer with firearms, $135;

(3) for persons age 18 and older to take deer by archery, the greater of:

(i) an amount equal to the total amount of license fees and surcharges charged to a
Minnesota resident to take deer by archery in the person's state or province of residence; or

(ii) $135;

(4) to take bear, $195;

(5) to take turkey, $73;

(6) to take raccoon, or bobcat, fox, or coyote, $155;

(7) multizone license to take antlered deer in more than one zone, $270; and

(8) to take Canada geese during a special season, $4;

(9) for persons at least age 12 and under age 18 to take deer with firearms during the
regular firearms season in any open zone or time period, $13; and

(10) for persons at least age 12 and under age 18 to take deer by archery, $13.

(b) A $5 surcharge shall be added to nonresident hunting licenses issued under
paragraph (a), clauses (1) to (7). An additional commission may not be assessed on this
surcharge.

Sec. 92.

Minnesota Statutes 2006, section 97A.475, is amended by adding a
subdivision to read:

Subd. 3a.

Deer license surcharge.

A person may agree to add a donation of $1, $3,
or $5 to the fees for annual resident and nonresident licenses to take deer by firearms or
archery established under subdivisions 2, clauses (4), (5), (9), and (11), and 3, clauses (2),
(3), and (7). Beginning March 1, 2008, fees for bonus licenses to take deer by firearms or
archery established under section 97B.301, subdivision 4, must be increased by a surcharge
of $1. An additional commission may not be assessed on the donation or surcharge and
the following statement must be included in the annual deer hunting regulations: "The
deer license donations and surcharges are being paid by hunters for deer management,
including assisting with the costs of processing deer donated for charitable purposes."

Sec. 93.

Minnesota Statutes 2006, section 97A.475, subdivision 7, is amended to read:

Subd. 7.

Nonresident fishing.

(a) Fees for the following licenses, to be issued
to nonresidents, are:

(1) to take fish by angling, $34 $37.50;

(2) to take fish by angling limited to seven consecutive days selected by the licensee,
$24 $26.50;

(3) to take fish by angling for a 72-hour period selected by the licensee, $20 $22;

(4) to take fish by angling for a combined license for a family for one or both parents
and dependent children under the age of 16, $46 $50.50;

(5) to take fish by angling for a 24-hour period selected by the licensee, $8.50; and

(6) to take fish by angling for a combined license for a married couple, limited to 14
consecutive days selected by one of the licensees, $35 $38.50.

(b) A $2 surcharge shall be added to all nonresident fishing licenses, except licenses
issued under paragraph (a), clause (5). An additional commission may not be assessed
on this surcharge.

EFFECTIVE DATE.

This section is effective March 1, 2008.

Sec. 94.

Minnesota Statutes 2006, section 97A.475, subdivision 11, is amended to read:

Subd. 11.

Fish houses and dark houses; residents.

Fees for the following licenses
are:

(1) annual for a fish house or dark house that is not rented, $11.50; and

(2) annual for a fish house or dark house that is rented, $26;

(3) three-year for a fish house or dark house that is not rented, $34.50; and

(4) three-year for a fish house or dark house that is rented, $78.

Sec. 95.

Minnesota Statutes 2006, section 97A.475, subdivision 12, is amended to read:

Subd. 12.

Fish houses; nonresident.

Fees for fish house licenses for a nonresident
are:

(1) annual, $33; and

(2) seven consecutive days, $19; and

(3) three-year, $99.

Sec. 96.

Minnesota Statutes 2006, section 97A.485, subdivision 7, is amended to read:

Subd. 7.

Electronic licensing system commission.

The commissioner shall retain
for the operation of the electronic licensing system the commission established under
section 84.027, subdivision 15, and issuing fees collected by the commissioner on all
license fees collected, excluding:

(1) the small game surcharge; and

(2) the deer license surcharges or donations under section 97A.475, subdivisions 3,
paragraph (b), and 3a; and

(3) $2.50 of the license fee for the licenses in section 97A.475, subdivisions 6,
clauses (1), (2), and (4), 7, 8, 12, and 13.

Sec. 97.

[97B.303] VENISON DONATIONS.

An individual who legally takes a deer may donate the deer, for distribution to
charitable food assistance programs, to a meat processor that is licensed under chapter
28A. An individual donating a deer must supply the processor with the tag number under
which the deer was taken.

Sec. 98.

Minnesota Statutes 2006, section 97B.601, subdivision 3, is amended to read:

Subd. 3.

Nonresidents: raccoon, or bobcat, fox, coyote.

A nonresident may not
take raccoon, or bobcat, fox, or coyote by firearms without a separate license to take that
animal in addition to a small game license.

Sec. 99.

Minnesota Statutes 2006, section 97B.715, subdivision 1, is amended to read:

Subdivision 1.

Stamp required.

(a) Except as provided in paragraph (b) or section
97A.405, subdivision 2, a person required to possess a small game license may not hunt
pheasants without:

(1) a pheasant stamp in possession; and

(2) a pheasant stamp validation on the small game license when issued electronically.

(b) The following persons are exempt from this subdivision:

(1) residents under age 18 or over age 65;

(2) persons hunting on licensed commercial shooting preserves; and

(3) resident disabled veterans with a license issued under section 97A.441,
subdivision 6a.

Sec. 100.

Minnesota Statutes 2006, section 97B.801, is amended to read:

97B.801 MINNESOTA MIGRATORY WATERFOWL STAMP REQUIRED.

(a) Except as provided in this section or section 97A.405, subdivision 2, a person
required to possess a small game license may not take migratory waterfowl without:

(1) a Minnesota migratory waterfowl stamp in possession; and

(2) a migratory waterfowl stamp validation on the small game license when issued
electronically.

(b) Residents under age 18 or over age 65; resident disabled veterans with a license
issued under section 97A.441, subdivision 6a; and persons hunting on their own property
are not required to possess a stamp or a license validation under this section.

Sec. 101.

Minnesota Statutes 2006, section 97C.081, subdivision 3, is amended to read:

Subd. 3.

Contests requiring a permit.

(a) A person must have a permit from the
commissioner to conduct a fishing contest that does not meet the criteria in subdivision 2.
Permits shall be issued without a fee. The commissioner shall charge a fee for the permit
that recovers the costs of issuing the permit and of monitoring the activities allowed by
the permit. The commissioner may waive the fee under this subdivision for a charitable
organization. Notwithstanding section 16A.1283, the commissioner may, by written order
published in the State Register, establish contest permit fees. The fees are not subject to
the rulemaking provisions of chapter 14 and section 14.386 does not apply.

(b) If entry fees are over $25 per person, or total prizes are valued at more than
$25,000, and if the applicant has either:

(1) not previously conducted a fishing contest requiring a permit under this
subdivision; or

(2) ever failed to make required prize awards in a fishing contest conducted by
the applicant, the commissioner may require the applicant to furnish the commissioner
evidence of financial responsibility in the form of a surety bond or bank letter of credit in
the amount of $25,000.

(c) The permit fee for any individual contest may not exceed the following amounts:

(1) $120 for an open water contest not exceeding 100 participants and without
off-site weigh-in;

(2) $400 for an open water contest with more than 100 participants and without
off-site weigh-in;

(3) $500 for an open water contest not exceeding 100 participants with off-site
weigh-in;

(4) $1,000 for an open water contest with more than 100 participants with off-site
weigh-in; or

(5) $120 for an ice fishing contest with more than 150 participants.

Sec. 102.

Minnesota Statutes 2006, section 97C.355, subdivision 2, is amended to read:

Subd. 2.

License required.

A person may not take fish from a dark house or fish
house that is left unattended on the ice overnight unless the house is licensed and has a
license tag attached to the exterior in a readily visible location, except as provided in this
subdivision. The commissioner must issue a tag with a dark house or fish house license,
marked with a number to correspond with the license and the year of issue. A dark house
or fish house license is not required of a resident on boundary waters where the adjacent
state does not charge a fee for the same activity.

Sec. 103.

Minnesota Statutes 2006, section 103B.101, is amended by adding a
subdivision to read:

Subd. 12.

Authority to issue penalty orders.

(a) The board may issue an order
requiring violations to be corrected and administratively assessing monetary penalties of
up to $10,000 per violation for violations of this chapter and chapters 103C, 103D, 103E,
103F, and 103G, any rules adopted under those chapters, and any standards, limitations, or
conditions established by the board.

(b) Administrative penalties issued under paragraph (a) may be appealed according
to section 116.072, if the recipient of the penalty requests a hearing by notifying the
commissioner in writing within 30 days after receipt of the order. For the purposes of this
section, the terms "commissioner" and "agency" as used in section 116.072 mean the
board. If a hearing is not requested within the 30-day period, the order becomes a final
order not subject to further review.

(c) Administrative penalty orders issued under paragraph (a) may be enforced
under section 116.072, subdivision 9. Penalty amounts must be remitted within 30 days
of issuance of the order.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 104.

[103B.102] LOCAL WATER MANAGEMENT ACCOUNTABILITY
AND OVERSIGHT.

Subdivision 1.

Findings; improving accountability and oversight.

The legislature
finds that a process is needed to monitor the performance and activities of local water
management entities. The process should be preemptive so that problems can be identified
early and systematically. Underperforming entities should be provided assistance and
direction for improving performance in a reasonable time frame.

Subd. 2.

Definitions.

For the purposes of this section, "local water management
entities" means watershed districts, soil and water conservation districts, metropolitan
water management organizations, and counties operating separately or jointly in their
role as local water management authorities under chapter 103B, 103C, 103D, or 103G
and chapter 114D.

Subd. 3.

Evaluation and report.

The Board of Water and Soil Resources shall
evaluate performance, financial, and activity information for each local water management
entity. The board shall evaluate the entities' progress in accomplishing their adopted
plans on a regular basis, but not less than once every five years. The board shall maintain
a summary of local water management entity performance on the board's Web site.
Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis
of local water management entity performance to the chairs of the house and senate
committees having jurisdiction over environment and natural resources policy.

Subd. 4.

Corrective actions.

(a) In addition to other authorities, the Board of Water
and Soil Resources may, based on its evaluation in subdivision 3, reduce, withhold, or
redirect grants and other funding if the local water management entity has not corrected
deficiencies as prescribed in a notice from the board within one year from the date of
the notice.

(b) The board may defer a decision on a termination petition filed under section
103B.221, 103C.225, or 103D.271 for up to one year to conduct or update the evaluation
under subdivision 3 or to communicate the results of the evaluation to petitioners or to
local and state government agencies.

Sec. 105.

Minnesota Statutes 2006, section 103C.321, is amended by adding a
subdivision to read:

Subd. 6.

Credit card use.

The supervisors may authorize the use of a credit card
by any soil and water conservation district officer or employee otherwise authorized
to make a purchase on behalf of the soil and water conservation district. If a soil and
water conservation district officer or employee makes a purchase by credit card that is not
approved by the supervisors, the officer or employee is personally liable for the amount of
the purchase. A purchase by credit card must otherwise comply with all statutes, rules,
or soil and water conservation district policy applicable to soil and water conservation
district purchases.

Sec. 106.

Minnesota Statutes 2006, section 103D.325, is amended by adding a
subdivision to read:

Subd. 4.

Credit card use.

The managers may authorize the use of a credit card
by any watershed district officer or employee otherwise authorized to make a purchase
on behalf of the watershed district. If a watershed district officer or employee makes a
purchase by credit card that is not approved by the managers, the officer or employee is
personally liable for the amount of the purchase. A purchase by credit card must otherwise
comply with all statutes, rules, or watershed district policy applicable to watershed district
purchases.

Sec. 107.

Minnesota Statutes 2006, section 103E.021, subdivision 1, is amended to
read:

Subdivision 1.

Spoil banks must be spread and grass planted permanent
vegetation established.

In any proceeding to establish, construct, improve, or do any
work affecting a public drainage system under any law that appoints viewers to assess
benefits and damages, the authority having jurisdiction over the proceeding shall order
spoil banks to be spread consistent with the plan and function of the drainage system. The
authority shall order that permanent grass, other than a noxious weed, be planted on
the banks ditch side slopes and on a strip that a permanent strip of perennial vegetation
approved by the drainage authority be established on each side of the ditch. Preference
should be given to planting native species of a local ecotype. The approved perennial
vegetation shall not impede future maintenance of the ditch. The permanent strips of
perennial vegetation shall be 16-1/2 feet in width measured outward from the top edge
of the constructed channel resulting from the proceeding, or to the crown of the leveled
spoil bank, whichever is the greater, on each side of the top edge of the channel of the
ditch. except for an action by a drainage authority that results only in a redetermination of
benefits and damages, for which the required width shall be 16-1/2 feet. Drainage system
rights-of-way for the acreage and additional property required for the planting permanent
strips must be acquired by the authority having jurisdiction.

Sec. 108.

Minnesota Statutes 2006, section 103E.021, subdivision 2, is amended to
read:

Subd. 2.

Reseeding and harvesting grass perennial vegetation.

The authority
having jurisdiction over the repair and maintenance of the drainage system shall supervise
all necessary reseeding. The permanent grass strips of perennial vegetation must be
maintained in the same manner as other drainage system repairs. Harvest of the grass
vegetation from the grass permanent strip in a manner not harmful to the grass vegetation
or the drainage system is the privilege of the fee owner or assigns. The county drainage
inspector shall establish rules for the fee owner and assigns to harvest the grass vegetation.

Sec. 109.

Minnesota Statutes 2006, section 103E.021, subdivision 3, is amended to
read:

Subd. 3.

Agricultural practices prohibited.

Agricultural practices, other than
those required for the maintenance of a permanent growth of grass perennial vegetation,
are not permitted on any portion of the property acquired for planting perennial vegetation.

Sec. 110.

Minnesota Statutes 2006, section 103E.021, is amended by adding a
subdivision to read:

Subd. 6.

Incremental implementation of vegetated ditch buffer strips and side
inlet controls.

(a) Notwithstanding other provisions of this chapter requiring appointment
of viewers and redetermination of benefits and damages, a drainage authority may
implement permanent buffer strips of perennial vegetation approved by the drainage
authority or side inlet controls, or both, adjacent to a public drainage ditch, where
necessary to control erosion and sedimentation, improve water quality, or maintain the
efficiency of the drainage system. Preference should be given to planting native species of
a local ecotype. The approved perennial vegetation shall not impede future maintenance
of the ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width
measured outward from the top edge of the existing constructed channel. Drainage system
rights-of-way for the acreage and additional property required for the permanent strips
must be acquired by the authority having jurisdiction.

(b) A project under this subdivision shall be implemented as a repair according to
section 103E.705, except that the drainage authority may appoint an engineer to examine
the drainage system and prepare an engineer's repair report for the project.

(c) Damages shall be determined by the drainage authority, or viewers, appointed by
the drainage authority, according to section 103E.315, subdivision 8. A damages statement
shall be prepared, including an explanation of how the damages were determined for each
property affected by the project, and filed with the auditor or watershed district. Within 30
days after the damages statement is filed, the auditor or watershed district shall prepare
property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2),
(6), (7), and (8), and mail a copy of the property owner's report and damages statement to
each owner of property affected by the proposed project.

(d) After a damages statement is filed, the drainage authority shall set a time, by
order, not more than 30 days after the date of the order, for a hearing on the project. At
least ten days before the hearing, the auditor or watershed district shall give notice by mail
of the time and location of the hearing to the owners of property and political subdivisions
likely to be affected by the project.

(e) The drainage authority shall make findings and order the repairs to be made if
the drainage authority determines from the evidence presented at the hearing and by the
viewers and engineer, if appointed, that the repairs are necessary for the drainage system
and the costs of the repairs are within the limitations of section 103E.705.

Sec. 111.

[103E.067] DITCH BUFFER STRIP ANNUAL REPORTING.

The drainage authority shall annually submit a report to the Board of Water and Soil
Resources for the calendar year including:

(1) the number and types of actions for which viewers were appointed;

(2) the number of miles of buffer strips established according to section 103E.021;

(3) the number of drainage system inspections conducted; and

(4) the number of violations of section 103E.021 identified and enforcement actions
taken.

Sec. 112.

Minnesota Statutes 2006, section 103E.315, subdivision 8, is amended to
read:

Subd. 8.

Extent of damages.

Damages to be paid may include:

(1) the fair market value of the property required for the channel of an open ditch
and the permanent grass strip of perennial vegetation under section 103E.021;

(2) the diminished value of a farm due to severing a field by an open ditch;

(3) loss of crop production during drainage project construction; and

(4) the diminished productivity or land value from increased overflow.; and

(5) costs to restore a perennial vegetative cover or structural practice existing
under a federal or state conservation program adjacent to the permanent drainage system
right-of-way and damaged by the drainage project.

Sec. 113.

Minnesota Statutes 2006, section 103E.321, subdivision 1, is amended to
read:

Subdivision 1.

Requirements.

The viewers' report must show, in tabular form,
for each lot, 40-acre tract, and fraction of a lot or tract under separate ownership that
is benefited or damaged:

(1) a description of the lot or tract, under separate ownership, that is benefited or
damaged;

(2) the names of the owners as they appear on the current tax records of the county
and their addresses;

(3) the number of acres in each tract or lot;

(4) the number and value of acres added to a tract or lot by the proposed drainage of
public waters;

(5) the damage, if any, to riparian rights;

(6) the damages paid for the permanent grass strip of perennial vegetation under
section 103E.021;

(7) the total number and value of acres added to a tract or lot by the proposed
drainage of public waters, wetlands, and other areas not currently being cultivated;

(8) the number of acres and amount of benefits being assessed for drainage of areas
which before the drainage benefits could be realized would require a public waters work
permit to work in public waters under section 103G.245 to excavate or fill a navigable
water body under United States Code, title 33, section 403, or a permit to discharge into
waters of the United States under United States Code, title 33, section 1344;

(9) the number of acres and amount of benefits being assessed for drainage of areas
that would be considered conversion of a wetland under United States Code, title 16,
section 3821, if the area was placed in agricultural production;

(10) the amount of right-of-way acreage required; and

(11) the amount that each tract or lot will be benefited or damaged.

Sec. 114.

Minnesota Statutes 2006, section 103E.701, is amended by adding a
subdivision to read:

Subd. 7.

Restoration; disturbance or destruction by repair.

If a drainage system
repair disturbs or destroys a perennial vegetative cover or structural practice existing
under a federal or state conservation program adjacent to the permanent drainage system
right-of-way, the practice must be restored according to the applicable practice plan or
as determined by the drainage authority, if a practice plan is not available. Restoration
costs shall be paid by the drainage system.

Sec. 115.

Minnesota Statutes 2006, section 103E.705, subdivision 1, is amended to
read:

Subdivision 1.

Inspection.

After the construction of a drainage system has been
completed, the drainage authority shall maintain the drainage system that is located in its
jurisdiction, including grass the permanent strips of perennial vegetation under section
103E.021, and provide the repairs necessary to make the drainage system efficient. The
drainage authority shall have the drainage system inspected on a regular basis by an
inspection committee of the drainage authority or a drainage inspector appointed by the
drainage authority. Open drainage ditches shall be inspected at a minimum of every five
years when no violation of section 103E.021 is found and annually when a violation of
section 103E.021 is found, until one year after the violation is corrected.

Sec. 116.

Minnesota Statutes 2006, section 103E.705, subdivision 2, is amended to
read:

Subd. 2.

Grass Permanent strip of perennial vegetation inspection and
compliance notice.

(a) The drainage authority having jurisdiction over a drainage system
must inspect the drainage system for violations of section 103E.021. If an inspection
committee of the drainage authority or a drainage inspector determines that permanent
grass strips of perennial vegetation are not being maintained in compliance with section
103E.021, a compliance notice must be sent to the property owner.

(b) The notice must state:

(1) the date the ditch was inspected;

(2) the persons making the inspection;

(3) that spoil banks are to be spread in a manner consistent with the plan and function
of the drainage system and that the drainage system has acquired a grass permanent strip
16-1/2 feet in width or to the crown of the spoil bank, whichever is greater of perennial
vegetation, according to section 103E.021;

(4) the violations of section 103E.021;

(5) the measures that must be taken by the property owner to comply with section
103E.021 and the date when the property must be in compliance; and

(6) that if the property owner does not comply by the date specified, the drainage
authority will perform the work necessary to bring the area into compliance with section
103E.021 and charge the cost of the work to the property owner.

(c) If a property owner does not bring an area into compliance with section 103E.021
as provided in the compliance notice, the inspection committee or drainage inspector
must notify the drainage authority.

(d) This subdivision applies to property acquired under section 103E.021.

Sec. 117.

Minnesota Statutes 2006, section 103E.705, subdivision 3, is amended to
read:

Subd. 3.

Drainage inspection report.

For each drainage system that the board
designates and requires the drainage inspector to examine, the drainage inspector shall
make a drainage inspection report in writing to the board after examining a drainage
system, designating portions that need repair or maintenance of grass the permanent
strips of perennial vegetation and the location and nature of the repair or maintenance.
The board shall consider the drainage inspection report at its next meeting and may repair
all or any part of the drainage system as provided under this chapter. The grass permanent
strips of perennial vegetation must be maintained in compliance with section 103E.021.

Sec. 118.

Minnesota Statutes 2006, section 103E.728, subdivision 2, is amended to
read:

Subd. 2.

Additional assessment for agricultural practices on grass permanent
strip of perennial vegetation.

(a) The drainage authority may, after notice and hearing,
charge an additional assessment on property that has agricultural practices on or otherwise
violates provisions related to the permanent grass strip of perennial vegetation acquired
under section 103E.021.

(b) The drainage authority may determine the cost of the repair per mile of open
ditch on the ditch system. Property that is in violation of the grass requirement shall be
assessed a cost of 20 percent of the repair cost per open ditch mile multiplied by the length
of open ditch in miles on the property in violation.

(c) After the amount of the additional assessment is determined and applied to the
repair cost, the balance of the repair cost may be apportioned pro rata as provided in
subdivision 1.

Sec. 119.

[103F.518] REINVEST IN MINNESOTA CLEAN ENERGY
PROGRAM.

Subdivision 1.

Establishment of program.

(a) The board, in consultation with the
technical committee established in subdivision 11, shall establish and administer a reinvest
in Minnesota (RIM) clean energy program that is in addition to the program under section
103F.515. Selection of land for the clean energy program must be based on its potential
benefits for bioenergy crop production, water quality, soil health, reduction of chemical
inputs, soil carbon storage, biodiversity, and wildlife habitat.

(b) For the purposes of this section, "diverse native prairie" means a prairie planted
from a mix of local Minnesota native prairie species. A selection from all available native
prairie species may be made so as to match species appropriate to local site conditions.

Subd. 2.

Eligible land.

Eligible land under this section must:

(1) be owned by the landowner, or a parent or other blood relative of the landowner,
for at least one year before the date of application;

(2) be at least five acres in size;

(3) not be currently set aside, enrolled, or diverted under another federal or state
government program; and

(4) have been in agricultural use, as defined in section 17.81, subdivision 4, or have
been set aside, enrolled, or diverted under another federal or state program for at least two
of the last five years before the date of application.

Subd. 3.

Designation of project areas.

The board shall develop a process to
designate defined project areas. The designation process shall prioritize projects that
include coordinated cooperation of a cellulosic biofuel facility or a bioenergy production
facility, target impaired waters, or support other state or local natural resource plans,
goals, or objectives.

Subd. 4.

Easements.

The board may acquire, or accept by gift or donation,
easements on eligible land. An easement may be permanent or of limited duration. An
easement of limited duration may not be acquired if it is for a period less than 20 years.
The negotiation and acquisition of easements authorized by this section are exempt from
the contractual provisions of chapters 16B and 16C.

Subd. 5.

Nature of property rights acquired.

(a) An easement must prohibit:

(1) agricultural crop production, unless approved by the board for energy production
purposes; and

(2) spraying with chemicals, except as necessary to comply with noxious weed
control laws, emergency pest control necessary to protect public health, or as needed
to establish a productive planting as determined by the technical committee under
subdivision 11.

(b) An easement is subject to the terms of the agreement provided in subdivision 6.

(c) Agricultural crop production and harvest are limited to native, perennial
bioenergy crops. Harvest shall occur outside of bird nesting season.

(d) An easement must allow repairs, improvements, and inspections necessary to
maintain public drainage systems provided the easement area is restored to the condition
required by the terms of the easement.

(e) An easement may allow nonnative perennial prairie or pasture established by
September 1, 2007, that meet the other objectives outlined in subdivision 7.

(f) An easement may allow grazing of livestock only if practiced under a plan,
approved by the board, that protects water quality, wildlife habitat, and biodiversity.

Subd. 6.

Agreements by landowner.

The board may enroll eligible land in the
reinvest in Minnesota clean energy program by signing an agreement in recordable form
with a landowner in which the landowner agrees:

(1) to convey to the state an easement that is not subject to any prior title, lien, or
encumbrance;

(2) to seed the land subject to the easement, as specified in the agreement, at
seeding rates determined by the board, or carry out other long-term capital improvements
approved by the board; and

(3) that the easement duration may be lengthened through mutual agreement with
the board.

Subd. 7.

Payments for easements.

The board must develop a tiered payment
system for easements partially based on the benefits of the bioenergy crop production for
water quality, soil health, reduction in chemical inputs, soil carbon storage, biodiversity,
and wildlife habitat using cash rent or a similar system as may be determined by the
board. The payment system must provide that the highest per-acre payment is for diverse
native prairie and perennials.

Subd. 8.

Easement renewal.

When an easement of limited duration expires, a
new easement and agreement for an additional period of not less than 20 years may be
acquired by agreement of the board and the landowner under the terms of this section.
The board may adjust payment rates as a result of renewing an agreement and easement
only after examining the condition of the established plantings, conservation practices,
and land values.

Subd. 9.

Correction of easement boundary lines.

To correct errors in legal
descriptions for easements that affect the ownership interest in the state and adjacent
landowners, the board may, in the name of the state, with the approval of the attorney
general, convey, without consideration, interests of the state necessary to correct legal
descriptions of boundaries. The conveyance must be by quitclaim deed or release in
a form approved by the attorney general.

Subd. 10.

Enforcement and damages.

(a) A landowner who violates the term of
an easement or agreement under this section, or induces, assists, or allows another to do
so, is liable to the state for treble damages if the trespass is willful, but liable for double
damages only if the trespass is not willful. The amount of damages is the amount needed
to make the state whole or the amount the landowner has gained due to the violation,
whichever is greater.

(b) Upon the request of the board, the attorney general may commence an action for
specific performances, injunctive relief, damages, including attorney fees, and any other
appropriate relief to enforce this section in district court in the county where all or part
of the violation is alleged to have been committed, or where the landowner resides or
has a principal place of business.

Subd. 11.

Technical committee.

To ensure that public benefits, including water
quality, soil health, reduction of chemical inputs, soil carbon storage, biodiversity, and
wildlife habitat are secured along with bioenergy crop production, the Board of Water and
Soil Resources shall appoint a technical committee consisting of one representative from
the Departments of Agriculture, Natural Resources, and Commerce and the Pollution
Control Agency; two farm organizations; one sustainable agriculture farmer organization;
three rural economic development organizations; three environmental organizations; and
three conservation or wildlife organizations. The board and technical committee shall
consult with private sector organizations and University of Minnesota researchers involved
in biomass establishment and bioenergy or biofuel conversion. The technical committee
is to develop program guidelines and standards, as appropriate to ensure that reinvest in
Minnesota clean energy program contracts provide public benefits commensurate with the
public investment. The technical committee shall review and make recommendations on
the guidelines and standards every five years.

Sec. 120.

Minnesota Statutes 2006, section 103G.222, subdivision 1, is amended to
read:

Subdivision 1.

Requirements.

(a) Wetlands must not be drained or filled, wholly
or partially, unless replaced by restoring or creating wetland areas of at least equal
public value under a replacement plan approved as provided in section 103G.2242, a
replacement plan under a local governmental unit's comprehensive wetland protection
and management plan approved by the board under section 103G.2243, or, if a permit to
mine is required under section 93.481, under a mining reclamation plan approved by the
commissioner under the permit to mine. Mining reclamation plans shall apply the same
principles and standards for replacing wetlands by restoration or creation of wetland areas
that are applicable to mitigation plans approved as provided in section 103G.2242. Public
value must be determined in accordance with section 103B.3355 or a comprehensive
wetland protection and management plan established under section 103G.2243. Sections
103G.221 to 103G.2372 also apply to excavation in permanently and semipermanently
flooded areas of types 3, 4, and 5 wetlands.

(b) Replacement must be guided by the following principles in descending order
of priority:

(1) avoiding the direct or indirect impact of the activity that may destroy or diminish
the wetland;

(2) minimizing the impact by limiting the degree or magnitude of the wetland
activity and its implementation;

(3) rectifying the impact by repairing, rehabilitating, or restoring the affected
wetland environment;

(4) reducing or eliminating the impact over time by preservation and maintenance
operations during the life of the activity;

(5) compensating for the impact by restoring a wetland; and

(6) compensating for the impact by replacing or providing substitute wetland
resources or environments.

For a project involving the draining or filling of wetlands in an amount not exceeding
10,000 square feet more than the applicable amount in section 103G.2241, subdivision 9,
paragraph (a), the local government unit may make an on-site sequencing determination
without a written alternatives analysis from the applicant.

(c) If a wetland is located in a cultivated field, then replacement must be
accomplished through restoration only without regard to the priority order in paragraph
(b), provided that a deed restriction is placed on the altered wetland prohibiting
nonagricultural use for at least ten years.

(d) If a wetland is drained under section 103G.2241, subdivision 2, paragraphs
(b) and (e), the local government unit may require a deed restriction that prohibits
nonagricultural use for at least ten years unless the drained wetland is replaced as provided
under this section. The local government unit may require the deed restriction if it
determines the wetland area drained is at risk of conversion to a nonagricultural use within
ten years based on the zoning classification, proximity to a municipality or full service
road, or other criteria as determined by the local government unit.

(e) Restoration and replacement of wetlands must be accomplished in accordance
with the ecology of the landscape area affected and ponds that are created primarily to
fulfill stormwater management, and water quality treatment requirements may not be
used to satisfy replacement requirements under this chapter unless the design includes
pretreatment of runoff and the pond is functioning as a wetland.

(e) (f) Except as provided in paragraph (f) (g), for a wetland or public waters wetland
located on nonagricultural land, replacement must be in the ratio of two acres of replaced
wetland for each acre of drained or filled wetland.

(f) (g) For a wetland or public waters wetland located on agricultural land or in a
greater than 80 percent area, replacement must be in the ratio of one acre of replaced
wetland for each acre of drained or filled wetland.

(g) (h) Wetlands that are restored or created as a result of an approved replacement
plan are subject to the provisions of this section for any subsequent drainage or filling.

(h) (i) Except in a greater than 80 percent area, only wetlands that have been
restored from previously drained or filled wetlands, wetlands created by excavation in
nonwetlands, wetlands created by dikes or dams along public or private drainage ditches,
or wetlands created by dikes or dams associated with the restoration of previously drained
or filled wetlands may be used in a statewide banking program established in rules adopted
under section 103G.2242, subdivision 1. Modification or conversion of nondegraded
naturally occurring wetlands from one type to another are not eligible for enrollment in a
statewide wetlands bank.

(i) (j) The Technical Evaluation Panel established under section 103G.2242,
subdivision 2, shall ensure that sufficient time has occurred for the wetland to develop
wetland characteristics of soils, vegetation, and hydrology before recommending that the
wetland be deposited in the statewide wetland bank. If the Technical Evaluation Panel has
reason to believe that the wetland characteristics may change substantially, the panel shall
postpone its recommendation until the wetland has stabilized.

(j) (k) This section and sections 103G.223 to 103G.2242, 103G.2364, and
103G.2365 apply to the state and its departments and agencies.

(k) (l) For projects involving draining or filling of wetlands associated with a new
public transportation project, and for projects expanded solely for additional traffic
capacity, public transportation authorities may purchase credits from the board at the cost
to the board to establish credits. Proceeds from the sale of credits provided under this
paragraph are appropriated to the board for the purposes of this paragraph.

(l) (m) A replacement plan for wetlands is not required for individual projects that
result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction,
or replacement of a currently serviceable existing state, city, county, or town public road
necessary, as determined by the public transportation authority, to meet state or federal
design or safety standards or requirements, excluding new roads or roads expanded solely
for additional traffic capacity lanes. This paragraph only applies to authorities for public
transportation projects that:

(1) minimize the amount of wetland filling or draining associated with the project
and consider mitigating important site-specific wetland functions on-site;

(2) except as provided in clause (3), submit project-specific reports to the board, the
Technical Evaluation Panel, the commissioner of natural resources, and members of the
public requesting a copy at least 30 days prior to construction that indicate the location,
amount, and type of wetlands to be filled or drained by the project or, alternatively,
convene an annual meeting of the parties required to receive notice to review projects to
be commenced during the upcoming year; and

(3) for minor and emergency maintenance work impacting less than 10,000 square
feet, submit project-specific reports, within 30 days of commencing the activity, to the
board that indicate the location, amount, and type of wetlands that have been filled
or drained.

Those required to receive notice of public transportation projects may appeal
minimization, delineation, and on-site mitigation decisions made by the public
transportation authority to the board according to the provisions of section 103G.2242,
subdivision 9. The Technical Evaluation Panel shall review minimization and delineation
decisions made by the public transportation authority and provide recommendations
regarding on-site mitigation if requested to do so by the local government unit, a
contiguous landowner, or a member of the Technical Evaluation Panel.

Except for state public transportation projects, for which the state Department of
Transportation is responsible, the board must replace the wetlands, and wetland areas of
public waters if authorized by the commissioner or a delegated authority, drained or filled
by public transportation projects on existing roads.

Public transportation authorities at their discretion may deviate from federal and
state design standards on existing road projects when practical and reasonable to avoid
wetland filling or draining, provided that public safety is not unreasonably compromised.
The local road authority and its officers and employees are exempt from liability for
any tort claim for injury to persons or property arising from travel on the highway and
related to the deviation from the design standards for construction or reconstruction under
this paragraph. This paragraph does not preclude an action for damages arising from
negligence in construction or maintenance on a highway.

(m) (n) If a landowner seeks approval of a replacement plan after the proposed
project has already affected the wetland, the local government unit may require the
landowner to replace the affected wetland at a ratio not to exceed twice the replacement
ratio otherwise required.

(n) (o) A local government unit may request the board to reclassify a county or
watershed on the basis of its percentage of presettlement wetlands remaining. After
receipt of satisfactory documentation from the local government, the board shall change
the classification of a county or watershed. If requested by the local government unit,
the board must assist in developing the documentation. Within 30 days of its action to
approve a change of wetland classifications, the board shall publish a notice of the change
in the Environmental Quality Board Monitor.

(o) (p) One hundred citizens who reside within the jurisdiction of the local
government unit may request the local government unit to reclassify a county or watershed
on the basis of its percentage of presettlement wetlands remaining. In support of their
petition, the citizens shall provide satisfactory documentation to the local government unit.
The local government unit shall consider the petition and forward the request to the board
under paragraph (n) (o) or provide a reason why the petition is denied.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 121.

Minnesota Statutes 2006, section 103G.222, subdivision 3, is amended to
read:

Subd. 3.

Wetland replacement siting.

(a) Siting wetland replacement must follow
this priority order:

(1) on site or in the same minor watershed as the affected wetland;

(2) in the same watershed as the affected wetland;

(3) in the same county as the affected wetland;

(4) for replacement by wetland banking, in the same wetland bank service area as
the impacted wetland, except that impacts in a 50 to 80 percent area must be replaced in
a 50 to 80 percent area and impacts in a less than 50 percent area must be replaced in a
less than 50 percent area;

(5) for project specific replacement, in an adjacent watershed or county to the
affected wetland, or for replacement by wetland banking, in an adjacent wetland bank
service area, except that impacts in a 50 to 80 percent area must be replaced in a 50 to
80 percent area and impacts in a less than 50 percent area must be replaced in a less
than 50 percent area; and

(5) (6) statewide, only for wetlands affected in greater than 80 percent areas and for
public transportation projects, except that wetlands affected in less than 50 percent areas
must be replaced in less than 50 percent areas, and wetlands affected in the seven-county
metropolitan area must be replaced at a ratio of two to one in: (i) the affected county or,
(ii) in another of the seven metropolitan counties, or (iii) in one of the major watersheds
that are wholly or partially within the seven-county metropolitan area, but at least one to
one must be replaced within the seven-county metropolitan area.

(b) Notwithstanding paragraph (a), siting wetland replacement in greater than 80
percent areas may follow the priority order under this paragraph: (1) by wetland banking
after evaluating on-site replacement and replacement within the watershed; (2) replaced
in an adjacent wetland bank service area if wetland bank credits are not reasonably
available in the same wetland bank service area as the affected wetland, as determined by
a comprehensive inventory approved by the board; and (3) statewide.

(c) Notwithstanding paragraph (a), siting wetland replacement in the seven-county
metropolitan area must follow the priority order under this paragraph: (1) in the affected
county; (2) in another of the seven metropolitan counties; or (3) in one of the major
watersheds that are wholly or partially within the seven-county metropolitan area, but at
least one to one must be replaced within the seven-county metropolitan area.

(d) The exception in paragraph (a), clause (5) (6), does not apply to replacement
completed using wetland banking credits established by a person who submitted a
complete wetland banking application to a local government unit by April 1, 1996.

(c) (e) When reasonable, practicable, and environmentally beneficial replacement
opportunities are not available in siting priorities listed in paragraph (a), the applicant
may seek opportunities at the next level.

(d) (f) For the purposes of this section, "reasonable, practicable, and environmentally
beneficial replacement opportunities" are defined as opportunities that:

(1) take advantage of naturally occurring hydrogeomorphological conditions and
require minimal landscape alteration;

(2) have a high likelihood of becoming a functional wetland that will continue
in perpetuity;

(3) do not adversely affect other habitat types or ecological communities that are
important in maintaining the overall biological diversity of the area; and

(4) are available and capable of being done after taking into consideration cost,
existing technology, and logistics consistent with overall project purposes.

(e) (g) Regulatory agencies, local government units, and other entities involved in
wetland restoration shall collaborate to identify potential replacement opportunities within
their jurisdictional areas.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 122.

Minnesota Statutes 2006, section 103G.2241, subdivision 1, is amended to
read:

Subdivision 1.

Agricultural activities.

(a) A replacement plan for wetlands is
not required for:

(1) activities in a wetland that was planted with annually seeded crops, was in a crop
rotation seeding of pasture grass or legumes, or was required to be set aside to receive
price support or other payments under United States Code, title 7, sections 1421 to 1469,
in six of the last ten years prior to January 1, 1991;

(2) activities in a wetland that is or has been enrolled in the federal conservation
reserve program under United States Code, title 16, section 3831, that:

(i) was planted with annually seeded crops, was in a crop rotation seeding, or was
required to be set aside to receive price support or payment under United States Code,
title 7, sections 1421 to 1469, in six of the last ten years prior to being enrolled in the
program; and

(ii) has not been restored with assistance from a public or private wetland restoration
program;

(3) activities in a wetland that has received a commenced drainage determination
provided for by the federal Food Security Act of 1985, that was made to the county
Agricultural Stabilization and Conservation Service office prior to September 19, 1988,
and a ruling and any subsequent appeals or reviews have determined that drainage of the
wetland had been commenced prior to December 23, 1985;

(4) (2) activities in a type 1 wetland on agricultural pasture land that remains in the
same use, except for bottomland hardwood type 1 wetlands, and activities in a type 2
or type 6 wetland that is less than two acres in size and located on agricultural pasture
land that remains in the same use;

(3) activities in a wetland conducted as part of normal farming practices. For
purposes of this clause, "normal farming practices" means farming, silvicultural, grazing,
and ranching activities such as plowing, seeding, cultivating, and harvesting for the
production of feed, food, and fiber products, but does not include activities that result in
the draining of wetlands;

(4) soil and water conservation practices approved by the soil and water conservation
district, after review by the Technical Evaluation Panel;

(5) aquaculture activities including pond excavation and construction and
maintenance of associated access roads and dikes authorized under, and conducted in
accordance with, a permit issued by the United States Army Corps of Engineers under
section 404 of the federal Clean Water Act, United States Code, title 33, section 1344,
but not including construction or expansion of buildings;

(6) wild rice production activities, including necessary diking and other activities
authorized under a permit issued by the United States Army Corps of Engineers under
section 404 of the federal Clean Water Act, United States Code, title 33, section 1344; or

(7) normal agricultural practices to control noxious or secondary weeds as defined
by rule of the commissioner of agriculture, in accordance with applicable requirements
under state and federal law, including established best management practices; and

(8) (7) agricultural activities in a wetland that is on agricultural land:

(i) annually enrolled in the federal Agriculture Improvement and Reform Act of
1996 and is subject to United States Code, title 16, sections 3821 to 3823, in effect on
January 1, 2000; or

(ii) that is subject to subsequent federal farm program restrictions that meet
minimum state standards under this chapter and sections 103A.202 and 103B.3355 and
that have been approved by the Board of Water and Soil Resources, the commissioners of
natural resources and agriculture, and the Pollution Control Agency.

(b) Land enrolled in a federal farm program under paragraph (a), clause (8), is
eligible for easement participation for those acres not already compensated under a federal
program.

(c) The exemption under paragraph (a), clause (4), may be expanded to additional
acreage, including types 1, 2, and 6 wetlands that are part of a larger wetland system, when
the additional acreage is part of a conservation plan approved by the local soil and water
conservation district, the additional draining or filling is necessary for efficient operation
of the farm, the hydrology of the larger wetland system is not adversely affected, and
wetlands other than types 1, 2, and 6 are not drained or filled.

Sec. 123.

Minnesota Statutes 2006, section 103G.2241, subdivision 2, is amended to
read:

Subd. 2.

Drainage.

(a) For the purposes of this subdivision, "public drainage
system" means a drainage system as defined in section 103E.005, subdivision 12, and any
ditch or tile lawfully connected to the drainage system.

(b) A replacement plan is not required for draining of type 1 wetlands, or up to five
acres of type 2 or 6 wetlands, in an unincorporated area on land that has been assessed
drainage benefits for a public drainage system, provided that:

(1) during the 20-year period that ended January 1, 1992:

(i) there was an expenditure made from the drainage system account for the public
drainage system;

(ii) the public drainage system was repaired or maintained as approved by the
drainage authority; or

(iii) no repair or maintenance of the public drainage system was required under
section 103E.705, subdivision 1, as determined by the public drainage authority; and

(2) the wetlands are not drained for conversion to:

(i) platted lots;

(ii) planned unit, commercial, or industrial developments; or

(iii) any development with more than one residential unit per 40 acres, except for
parcels subject to local zoning standards that allow for family members to establish an
additional residence on the same 40 acres.

If wetlands drained under this paragraph are converted to uses prohibited under clause
(2) during the ten-year period following drainage, the wetlands must be replaced under
section 103G.222.

(c) A replacement plan is not required for draining or filling of wetlands, except for
draining types 3, 4, and 5 wetlands that have been in existence for more than 25 years,
resulting from maintenance and repair of existing public drainage systems.

(d) A replacement plan is not required for draining or filling of wetlands, except
for draining wetlands that have been in existence for more than 25 years, resulting from
maintenance and repair of existing drainage systems other than public drainage systems.

(e) A replacement plan is not required for draining or filling of wetlands resulting
from activities conducted as part of a public drainage system improvement project that
received final approval from the drainage authority before July 1, 1991, and after July 1,
1986, if:

(1) the approval remains valid;

(2) the project remains active; and

(3) no additional drainage will occur beyond that originally approved.

(e) A replacement plan is not required for draining agricultural land that: (1) was
planted with annually seeded crops before July 5, except for crops that are normally
planted after that date, in eight out of the ten most recent years prior to the impact; (2) was
in a crop rotation seeding of pasture grass, cover crop, or legumes, or was fallow for a
crop production purpose, in eight out of the ten most recent years prior to the impact; or
(3) was enrolled in a state or federal land conservation program and met the requirements
of clause (1) or (2) before enrollment.

(f) The public drainage authority may, as part of the repair, install control structures,
realign the ditch, construct dikes along the ditch, or make other modifications as necessary
to prevent drainage of the wetland.

(g) Wetlands of all types that would be drained as a part of a public drainage repair
project are eligible for the permanent wetlands preserve under section 103F.516. The
board shall give priority to acquisition of easements on types 3, 4, and 5 wetlands that have
been in existence for more than 25 years on public drainage systems and other wetlands
that have the greatest risk of drainage from a public drainage repair project.

Sec. 124.

Minnesota Statutes 2006, section 103G.2241, subdivision 3, is amended to
read:

Subd. 3.

Federal approvals.

A replacement plan for wetlands is not required for:

(1) activities exempted from federal regulation under United States Code, title 33,
section 1344(f), as in effect on January 1, 1991;

(2) activities authorized under, and conducted in accordance with, an applicable
general permit issued by the United States Army Corps of Engineers under section 404
of the federal Clean Water Act, United States Code, title 33, section 1344, except the
nationwide permit in Code of Federal Regulations, title 33, section 330.5, paragraph (a),
clauses (14), limited to when a new road crosses a wetland, and (26), as in effect on
January 1, 1991; or

(3) activities authorized under the federal Clean Water Act, section 404, or the
Rivers and Harbors Act, section 10, regulations that meet minimum state standards
under this chapter and sections 103A.202 and 103B.3355 and that have been approved
by the Board of Water and Soil Resources, the commissioners of natural resources and
agriculture, and the Pollution Control Agency.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 125.

Minnesota Statutes 2006, section 103G.2241, subdivision 6, is amended to
read:

Subd. 6.

Utilities; public works.

(a) A replacement plan for wetlands is not
required for:

(1) placement, maintenance, repair, enhancement, or replacement of utility or
utility-type service if:

(i) the impacts of the proposed project on the hydrologic and biological
characteristics of the wetland have been avoided and minimized to the extent possible; and

(ii) the proposed project significantly modifies or alters less than one-half acre of
wetlands;

(2) activities associated with routine maintenance of utility and pipeline
rights-of-way, provided the activities do not result in additional intrusion into the wetland;

(3) alteration of a wetland associated with the operation, maintenance, or repair of
an interstate pipeline within all existing or acquired interstate pipeline rights-of-way;

(4) emergency repair and normal maintenance and repair of existing public works,
provided the activity does not result in additional intrusion of the public works into the
wetland and does not result in the draining or filling, wholly or partially, of a wetland;

(5) normal maintenance and minor repair of structures causing no additional
intrusion of an existing structure into the wetland, and maintenance and repair of private
crossings that do not result in the draining or filling, wholly or partially, of a wetland; or

(6) repair and updating of existing individual sewage treatment systems as necessary
to comply with local, state, and federal regulations.

(1) new placement or maintenance, repair, enhancement, or replacement of existing
utility or utility-type service, including pipelines, if:

(i) the direct and indirect impacts of the proposed project have been avoided and
minimized to the extent possible; and

(ii) the proposed project significantly modifies or alters less than one-half acre of
wetlands;

(2) activities associated with operation, routine maintenance, or emergency repair of
existing utilities and public work structures, including pipelines, provided the activities
do not result in additional wetland intrusion or additional draining or filling of a wetland
either wholly or partially; or

(3) repair and updating of existing individual sewage treatment systems necessary to
comply with local, state, and federal regulations.

(b) For maintenance, repair, and replacement, the local government unit may issue
a seasonal or annual exemption certification or the utility may proceed without local
government unit certification if the utility is carrying out the work according to approved
best management practices. Work of an emergency nature may proceed as necessary
and any drain or fill activities shall be addressed with the local government unit after
the emergency work has been completed.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 126.

Minnesota Statutes 2006, section 103G.2241, subdivision 9, is amended to
read:

Subd. 9.

De minimis.

(a) Except as provided in paragraphs (b) and (c), a
replacement plan for wetlands is not required for draining or filling the following amounts
of wetlands as part of a project:

(1) 10,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and
tamarack wetlands, outside of the shoreland wetland protection zone in a greater than
80 percent area;

(2) 5,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and
tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80 percent
area, except within the 11-county metropolitan area;

(3) 2,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland wetland
protection zone in a less than 50 percent area, except within the 11-county metropolitan
area;

(4) 400 100 square feet of wetland types not listed in clauses (1) to (3) outside of
the building setback zone of the shoreland wetland protection zones in all counties; or

(5) 400 square feet of type 1, 2, 3, 4, 5, 6, 7, or 8 wetland types listed in clauses (1)
to (3), in beyond the building setback zone, as defined in the local shoreland management
ordinance, but within the shoreland wetland protection zone, except that. In a greater
than 80 percent area, the local government unit may increase the de minimis amount
up to 1,000 square feet in the shoreland protection zone in areas beyond the building
setback if the wetland is isolated and is determined to have no direct surficial connection
to the public water. To the extent that a local shoreland management ordinance is more
restrictive than this provision, the local shoreland ordinance applies.;

(6) up to 20 square feet of wetland, regardless of type or location;

(7) 2,500 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and
tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80 percent
area within the 11-county metropolitan area; or

(8) 1,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland wetland
protection zone in a less than 50 percent area within the 11-county metropolitan area.

For purposes of this paragraph, the 11-county metropolitan area consists of the
counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne,
Washington, and Wright.

(b) The amounts listed in paragraph (a), clauses (1) to (5) (8), may not be combined
on a project.

(c) This exemption no longer applies to a landowner's portion of a wetland when
the cumulative area drained or filled of the landowner's portion since January 1, 1992, is
the greatest of:

(1) the applicable area listed in paragraph (a), if the landowner owns the entire
wetland;

(2) five percent of the landowner's portion of the wetland; or

(3) 400 square feet.

(d) This exemption may not be combined with another exemption in this section on
a project.

(e) Property may not be divided to increase the amounts listed in paragraph (a).

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 127.

Minnesota Statutes 2006, section 103G.2241, subdivision 11, is amended to
read:

Subd. 11.

Exemption conditions.

(a) A person conducting an activity in a wetland
under an exemption in subdivisions 1 to 10 shall ensure that:

(1) appropriate erosion control measures are taken to prevent sedimentation of
the water;

(2) the activity does not block fish passage in a watercourse; and

(3) the activity is conducted in compliance with all other applicable federal,
state, and local requirements, including best management practices and water resource
protection requirements established under chapter 103H.

(b) An activity is exempt if it qualifies for any one of the exemptions, even though it
may be indicated as not exempt under another exemption.

(c) Persons proposing to conduct an exempt activity are encouraged to contact the
local government unit or the local government unit's designee for advice on minimizing
wetland impacts.

(d) The board shall develop rules that address the application and implementation
of exemptions and that provide for estimates and reporting of exempt wetland impacts,
including those in section 103G.2241, subdivisions 2, 6, and 9.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 128.

Minnesota Statutes 2006, section 103G.2242, subdivision 2, is amended to
read:

Subd. 2.

Evaluation.

(a) Questions concerning the public value, location, size,
or type of a wetland shall be submitted to and determined by a Technical Evaluation
Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of
a technical professional employee of the board, a technical professional employee of
the local soil and water conservation district or districts, a technical professional with
expertise in water resources management appointed by the local government unit, and
a technical professional employee of the Department of Natural Resources for projects
affecting public waters or wetlands adjacent to public waters. The panel shall use the
"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987),
including updates, supplementary guidance, and replacements, if any, "Wetlands of
the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition),
and "Classification of Wetlands and Deepwater Habitats of the United States" (1979
edition). The panel shall provide the wetland determination and recommendations on
other technical matters to the local government unit that must approve a replacement
plan, wetland banking plan, exemption determination, no-loss determination, or wetland
boundary or type determination and may recommend approval or denial of the plan. The
authority must consider and include the decision of the Technical Evaluation Panel in their
approval or denial of a plan or determination.

(b) Persons conducting wetland or public waters boundary delineations or type
determinations are exempt from the requirements of chapter 326. By January 15, 2001,
the board, in consultation with the Minnesota Association of Professional Soil Scientists,
the University of Minnesota, and the Wetland Delineators' Association, shall submit a plan
for a professional wetland delineator certification program to the legislature. The board
may develop a professional wetland delineator certification program.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 129.

Minnesota Statutes 2006, section 103G.2242, subdivision 2a, is amended to
read:

Subd. 2a.

Wetland boundary or type determination.

(a) A landowner may apply
for a wetland boundary or type determination from the local government unit. The
landowner applying for the determination is responsible for submitting proof necessary
to make the determination, including, but not limited to, wetland delineation field data,
observation well data, topographic mapping, survey mapping, and information regarding
soils, vegetation, hydrology, and groundwater both within and outside of the proposed
wetland boundary.

(b) A local government unit that receives an application under paragraph (a) may
seek the advice of the Technical Evaluation Panel as described in subdivision 2, and, if
necessary, expand the Technical Evaluation Panel. The local government unit may delegate
the decision authority for wetland boundary or type determinations with the zoning
administrator to designated staff, or establish other procedures it considers appropriate.

(c) The local government unit decision must be made in compliance with section
15.99. Within ten calendar days of the decision, the local government unit decision must
be mailed to the landowner, members of the Technical Evaluation Panel, the watershed
district or watershed management organization, if one exists, and individual members of
the public who request a copy.

(d) Appeals of decisions made by designated local government staff must be made
to the local government unit. Notwithstanding any law to the contrary, a ruling on an
appeal must be made by the local government unit within 30 days from the date of the
filing of the appeal.

(e) The local government unit decision is valid for three years unless the Technical
Evaluation Panel determines that natural or artificial changes to the hydrology, vegetation,
or soils of the area have been sufficient to alter the wetland boundary or type.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 130.

Minnesota Statutes 2006, section 103G.2242, subdivision 9, is amended to
read:

Subd. 9.

Appeal.

(a) Appeal of a replacement plan, exemption, wetland banking,
wetland boundary or type determination, or no-loss decision, or restoration order may
be obtained by mailing a petition and payment of a filing fee of $200, which shall be
retained by the board to defray administrative costs, to the board within 30 days after the
postmarked date of the mailing specified in subdivision 7. If appeal is not sought within
30 days, the decision becomes final. The local government unit may require the petitioner
to post a letter of credit, cashier's check, or cash in an amount not to exceed $500. If the
petition for hearing is accepted, the amount posted must be returned to the petitioner.
Appeal may be made by:

(1) the wetland owner;

(2) any of those to whom notice is required to be mailed under subdivision 7; or

(3) 100 residents of the county in which a majority of the wetland is located.

(b) Within 30 days after receiving a petition, the board shall decide whether to
grant the petition and hear the appeal. The board shall grant the petition unless the board
finds that:

(1) the appeal is meritless, trivial, or brought solely for the purposes of delay;

(2) the petitioner has not exhausted all local administrative remedies;

(3) expanded technical review is needed;

(4) the local government unit's record is not adequate; or

(5) the petitioner has not posted a letter of credit, cashier's check, or cash if required
by the local government unit.

(c) In determining whether to grant the appeal, the board shall also consider the
size of the wetland, other factors in controversy, any patterns of similar acts by the local
government unit or petitioner, and the consequences of the delay resulting from the appeal.

(d) All appeals must be heard by the committee for dispute resolution of the board,
and a decision made within 60 days of filing the local government unit's record and the
written briefs submitted for the appeal. The decision must be served by mail on the parties
to the appeal, and is not subject to the provisions of chapter 14. A decision whether to
grant a petition for appeal and a decision on the merits of an appeal must be considered the
decision of an agency in a contested case for purposes of judicial review under sections
14.63 to 14.69.

(e) Notwithstanding section 16A.1283, the board shall establish a fee schedule to
defray the administrative costs of appeals made to the board under this subdivision. Fees
established under this authority shall not exceed $1,000. Establishment of the fee is not
subject to the rulemaking process of chapter 14 and section 14.386 does not apply.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 131.

Minnesota Statutes 2006, section 103G.2242, subdivision 12, is amended to
read:

Subd. 12.

Replacement credits.

(a) No public or private wetland restoration,
enhancement, or construction may be allowed for replacement unless specifically
designated for replacement and paid for by the individual or organization performing the
wetland restoration, enhancement, or construction, and is completed prior to any draining
or filling of the wetland.

(b) Paragraph (a) does not apply to a wetland whose owner has paid back with
interest the individual or organization restoring, enhancing, or constructing the wetland.

(c) Notwithstanding section 103G.222, subdivision 1, paragraph (h) (i), the
following actions, and others established in rule, that are consistent with criteria in rules
adopted by the board in conjunction with the commissioners of natural resources and
agriculture, are eligible for replacement credit as determined by the local government unit,
including enrollment in a statewide wetlands bank:

(1) reestablishment of permanent native, noninvasive vegetative cover on a wetland
on agricultural land that was planted with annually seeded crops, was in a crop rotation
seeding of pasture grasses or legumes, or was in a land retirement program during the
past ten years;

(2) buffer areas of permanent native, noninvasive vegetative cover established or
preserved on upland adjacent to replacement wetlands;

(3) wetlands restored for conservation purposes under terminated easements or
contracts; and

(4) water quality treatment ponds constructed to pretreat storm water runoff prior
to discharge to wetlands, public waters, or other water bodies, provided that the water
quality treatment ponds must be associated with an ongoing or proposed project that
will impact a wetland and replacement credit for the treatment ponds is based on the
replacement of wetland functions and on an approved stormwater management plan for
the local government.

(d) Notwithstanding section 103G.222, subdivision 1, paragraphs (e) (f) and (f) (g),
the board may establish by rule different replacement ratios for restoration projects with
exceptional natural resource value.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 132.

Minnesota Statutes 2006, section 103G.2242, subdivision 15, is amended to
read:

Subd. 15.

Fees paid to board.

All fees established in subdivision subdivisions 9
and 14 must be paid to the Board of Water and Soil Resources and credited to the general
fund to be used for the purpose of administration of the wetland bank and to process
appeals under section 103G.2242, subdivision 9.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 133.

Minnesota Statutes 2006, section 103G.2243, subdivision 2, is amended to
read:

Subd. 2.

Plan contents.

A comprehensive wetland protection and management
plan may:

(1) provide for classification of wetlands in the plan area based on:

(i) an inventory of wetlands in the plan area;

(ii) an assessment of the wetland functions listed in section 103B.3355, using a
methodology chosen by the Technical Evaluation Panel from one of the methodologies
established or approved by the board under that section; and

(iii) the resulting public values;

(2) vary application of the sequencing standards in section 103G.222, subdivision 1,
paragraph (b), for projects based on the classification and criteria set forth in the plan;

(3) vary the replacement standards of section 103G.222, subdivision 1, paragraphs
(e) (f) and (f) (g), based on the classification and criteria set forth in the plan, for specific
wetland impacts provided there is no net loss of public values within the area subject to
the plan, and so long as:

(i) in a 50 to 80 percent area, a minimum acreage requirement of one acre of replaced
wetland for each acre of drained or filled wetland requiring replacement is met within
the area subject to the plan; and

(ii) in a less than 50 percent area, a minimum acreage requirement of two acres of
replaced wetland for each acre of drained or filled wetland requiring replacement is met
within the area subject to the plan, except that replacement for the amount above a 1:1
ratio can be accomplished as described in section 103G.2242, subdivision 12; and

(4) in a greater than 80 percent area, allow replacement credit, based on the
classification and criteria set forth in the plan, for any project that increases the public
value of wetlands, including activities on adjacent upland acres; and.

(5) in a greater than 80 percent area, based on the classification and criteria set forth
in the plan, expand the application of the exemptions in section 103G.2241, subdivision
1, paragraph (a), clause (4), to also include nonagricultural land, provided there is no
net loss of wetland values.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 134.

Minnesota Statutes 2006, section 103G.235, is amended to read:

103G.235 RESTRICTIONS ON ACCESS TO PUBLIC WATERS WETLANDS.

Subdivision 1.

Wetlands adjacent to roads.

To protect the public health or safety,
local units of government may by ordinance restrict public access to public waters
wetlands from municipality, county, or township roads that abut public waters wetlands.

Subd. 2.

Privately restored or created wetlands.

When a landowner creates a new
wetland or restores a formerly existing wetland on private land that is adjacent to public
land or a public road right-of-way, there is no public access to the created or restored
wetland if posted by the landowner.

Sec. 135.

Minnesota Statutes 2006, 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.

(b) The fee for a project appropriating water in excess of 100 million gallons per
year must be assessed to recover the reasonable costs of preparing and processing the
permit, including costs for environmental review. Fees collected under this paragraph
must be credited to an account in the natural resources fund and are appropriated to the
commissioner for fiscal years 2008 and 2009.

(b) (c) The fee to apply for a permit to appropriate water, other than a permit subject
to the 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 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 schedule of fees
adopted under section 16A.1285.

Sec. 136.

Minnesota Statutes 2006, section 115.55, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to sections
115.55 to 115.56.

(b) "Advisory committee" means the Advisory Committee on Individual Sewage
Treatment Systems established under the individual sewage treatment system rules. The
advisory committee must be appointed to ensure geographic representation of the state
and include elected public officials.

(c) "Applicable requirements" means:

(1) local ordinances that comply with the individual sewage treatment system rules,
as required in subdivision 2; or

(2) in areas not subject to the ordinances described in clause (1), the individual
sewage treatment system rules.

(d) "City" means a statutory or home rule charter city.

(e) "Commissioner" means the commissioner of the Pollution Control Agency.

(f) "Dwelling" means a building or place used or intended to be used by human
occupants as a single-family or two-family unit.

(g) "Individual sewage treatment system" or "system" means a sewage treatment
system, or part thereof, serving a dwelling, other establishment, or group thereof, that
uses subsurface soil treatment and disposal, or a holding tank, serving a dwelling, other
establishment, or a group thereof.

(h) "Individual sewage treatment system professional" means an inspector, installer,
site evaluator or designer, or pumper.

(i) "Individual sewage treatment system rules" means rules adopted by the agency
that establish minimum standards and criteria for the design, location, installation, use,
and maintenance of individual sewage treatment systems.

(j) "Inspector" means a person who inspects individual sewage treatment systems for
compliance with the applicable requirements.

(k) "Installer" means a person who constructs or repairs individual sewage treatment
systems.

(l) "Local unit of government" means a township, city, or county.

(m) "Performance-based system" means a system that is designed specifically for a
site and the environmental conditions on that site and designed to adequately protect the
public health and the environment and provide long-term performance. At a minimum, a
performance based system must ensure that applicable water quality standards are met in
both ground and surface water that ultimately receive the treated wastewater.

(n) "Pumper" means a person who maintains components of individual sewage
treatment systems including, but not limited to, septic, aerobic, and holding tanks.

(n) (o) "Seasonal dwelling" means a dwelling that is occupied or used for less than
180 days per year and less than 120 consecutive days.

(o) (p) "Septic system tank" means any covered receptacle designed, constructed,
and installed as part of an individual sewage treatment system.

(p) (q) "Site evaluator or designer" means a person who:

(1) investigates soils and site characteristics to determine suitability, limitations, and
sizing requirements; and

(2) designs individual sewage treatment systems.

(q) (r) "Straight-pipe system" means a sewage disposal system that includes toilet
waste and transports raw or partially settled sewage directly to a lake, a stream, a drainage
system, or ground surface.

Sec. 137.

Minnesota Statutes 2006, section 115.55, subdivision 2, is amended to read:

Subd. 2.

Local ordinances.

(a) All counties that did not adopt ordinances by
May 7, 1994, or that do not have ordinances, must adopt ordinances that comply with
revisions to the individual sewage treatment system rules by January 1, 1999, unless all
towns and cities in the county have adopted such ordinances within two years of the final
adoption by the agency. County ordinances must apply to all areas of the county other
than cities or towns that have adopted ordinances that comply with this section and are
as strict as the applicable county ordinances. Any ordinance adopted by a local unit of
government before May 7, 1994, to regulate individual sewage treatment systems must be
in compliance with the individual sewage treatment system rules by January 1, 1998.

(b) A copy of each ordinance adopted under this subdivision must be submitted to
the commissioner upon adoption.

(c) A local unit of government must make available to the public upon request a
written list of any differences between its ordinances and rules adopted under this section.

Sec. 138.

Minnesota Statutes 2006, section 115.55, subdivision 3, is amended to read:

Subd. 3.

Rules.

(a) The agency shall adopt rules containing minimum standards and
criteria for the design, location, installation, use, and maintenance of individual sewage
treatment systems. The rules must include:

(1) how the agency will ensure compliance under subdivision 2;

(2) how local units of government shall enforce ordinances under subdivision 2,
including requirements for permits and inspection programs;

(3) how the advisory committee will participate in review and implementation of
the rules;

(4) provisions for alternative nonstandard systems and performance-based systems;

(5) provisions for handling and disposal of effluent;

(6) provisions for system abandonment; and

(7) procedures for variances, including the consideration of variances based on cost
and variances that take into account proximity of a system to other systems.

(b) The agency shall consult with the advisory committee before adopting rules
under this subdivision.

(c) Notwithstanding the repeal of the agency rule under which the commissioner
has established a list of warrantied individual sewage treatment systems, the warranties
for all systems so listed as of the effective date of the repeal shall continue to be valid
for the remainder of the warranty period.

(d) The rules required in paragraph (a) must also address the following:

(1) a definition of redoximorphic features and other criteria that can be used by
system designers and inspectors;

(2) direction on the interpretation of observed soil features that may be
redoximorphic and their relation to zones of seasonal saturation; and

(3) procedures on how to resolve professional disagreements on seasonally saturated
soils.

These rules must be in place by March 31, 2006.

Sec. 139.

Minnesota Statutes 2006, section 115.55, is amended by adding a subdivision
to read:

Subd. 12.

Advisory committee; county individual sewage treatment system
management plan.

(a) A county may adopt an individual sewage treatment system
management plan that describes how the county plans on carrying out individual sewage
treatment system needs. The commissioner of the Pollution Control Agency shall form an
advisory committee to determine what the plans should address. The advisory committee
shall be made up of representatives of the Association of Minnesota Counties, Pollution
Control Agency, Board of Water and Soil Resources, Department of Health, and other
public agencies or local units of government that have an interest in individual sewage
treatment systems.

(b) The advisory committee shall advise the agency on the standards, management,
monitoring, and reporting requirements for performance-based systems.

Sec. 140.

Minnesota Statutes 2006, section 116C.92, is amended to read:

116C.92 COORDINATION OF ACTIVITIES.

Subdivision 1.

State coordinating organization.

The Environmental Quality Board
is designated the state coordinating organization for state and federal regulatory activities
relating to genetically engineered organisms.

Subd. 2.

Notice of nationwide action.

The board shall notify interested parties if a
permit to release genetically engineered wild rice is issued anywhere in the United States.
For purposes of this subdivision, "interested parties" means:

(1) the state's wild rice industry;

(2) the legislature;

(3) federally recognized tribes within Minnesota; and

(4) individuals who request to be notified.

Sec. 141.

Minnesota Statutes 2006, section 116C.94, subdivision 1, is amended to read:

Subdivision 1.

General authority.

(a) Except as provided in paragraph (b), the
board shall adopt rules consistent with sections 116C.91 to 116C.96 that require an
environmental assessment worksheet and otherwise comply with chapter 116D and rules
adopted under it for a proposed release and a permit for a release. The board may place
conditions on a permit and may deny, modify, suspend, or revoke a permit.

(b) The board shall adopt rules that require an environmental impact statement and
otherwise comply with chapter 116D and rules adopted under it for a proposed release and
a permit for a release of genetically engineered wild rice. The board may place conditions
on the permit and may deny, modify, suspend, or revoke the permit.

Sec. 142.

Minnesota Statutes 2006, section 116C.97, subdivision 2, is amended to read:

Subd. 2.

Federal oversight.

(a) If the board determines, upon its own volition or at
the request of any person, that a federal program exists for regulating the release of certain
genetically engineered organisms and the federal oversight under the program is adequate
to protect human health or the environment, then any person may release such genetically
engineered organisms after obtaining the necessary federal approval and without obtaining
a state release permit or a significant environmental permit or complying with the other
requirements of sections 116C.91 to 116C.96 and the rules of the board adopted pursuant
to section 116C.94.

(b) If the board determines the federal program is adequate to meet only certain
requirements of sections 116C.91 to 116C.96 and the rules of the board adopted pursuant
to section 116C.94, the board may exempt such releases from those requirements.

(c) A person proposing a release for which a federal authorization is required may
apply to the board for an exemption from the board's permit or to a state agency with a
significant environmental permit for the proposed release for an exemption from the
agency's permit. The proposer must file with the board or state agency a written request
for exemption with a copy of the federal application and the information necessary to
determine if there is a potential for significant environmental effects under chapter 116D
and rules adopted under it. The board or state agency shall give public notice of the request
in the first available issue of the EQB Monitor and shall provide an opportunity for public
comment on the environmental review process consistent with chapter 116D and rules
adopted under it. The board or state agency may grant the exemption if the board or state
agency finds that the federal authorization issued is adequate to meet the requirements of
chapter 116D and rules adopted under it and any other requirement of the board's or state
agency's authority regarding the release of genetically engineered organisms. The board
or state agency must grant or deny the exemption within 45 days after the receipt of the
written request and the information required by the board or state agency.

(d) This subdivision does not apply to genetically engineered organisms for which
an environmental impact statement is required under sections 116C.91 to 116C.96.

Sec. 143.

[144.995] DEFINITIONS; ENVIRONMENTAL HEALTH TRACKING
AND BIOMONITORING.

(a) For purposes of sections 144.995 to 144.998, the terms in this section have
the meanings given.

(b) "Advisory panel" means the Environmental Health Tracking and Biomonitoring
Advisory Panel established under section 144.998.

(c) "Biomonitoring" means the process by which chemicals and their metabolites are
identified and measured within a biospecimen.

(d) "Biospecimen" means a sample of human fluid, serum, or tissue that is reasonably
available as a medium to measure the presence and concentration of chemicals or their
metabolites in a human body.

(e) "Commissioner" means the commissioner of the Department of Health.

(f) "Community" means geographically or nongeographically based populations that
may participate in the biomonitoring program. A "nongeographical community" includes,
but is not limited to, populations that may share a common chemical exposure through
similar occupations, populations experiencing a common health outcome that may be
linked to chemical exposures, populations that may experience similar chemical exposures
because of comparable consumption, lifestyle, product use, and subpopulations that share
ethnicity, age, or gender.

(g) "Department" means the Department of Health.

(h) "Designated chemicals" means those chemicals that are known to, or strongly
suspected of, adversely impacting human health or development, based upon scientific,
peer-reviewed animal, human, or in vitro studies, and baseline human exposure data,
and consists of chemical families or metabolites that are included in the federal Centers
for Disease Control and Prevention studies that are known collectively as the National
Reports on Human Exposure to Environmental Chemicals Program and any substances
specified by the commissioner after receiving recommendations under section 144.998,
subdivision 3, clause (6).

(i) "Environmental hazard" means a chemical or other substance for which scientific,
peer-reviewed studies of humans, animals, or cells have demonstrated that the chemical is
known or reasonably anticipated to adversely impact human health.

(j) "Environmental health tracking" means collection, integration, analysis, and
dissemination of data on human exposures to chemicals in the environment and on
diseases potentially caused or aggravated by those chemicals.

Sec. 144.

[144.996] ENVIRONMENTAL HEALTH TRACKING;
BIOMONITORING.

Subdivision 1.

Environmental health tracking.

In cooperation with the
commissioner of the Pollution Control Agency, the commissioner shall establish an
environmental health tracking program to:

(1) coordinate data collection with the Pollution Control Agency, Department of
Agriculture, University of Minnesota, and any other relevant state agency and work to
promote the sharing of and access to health and environmental databases to develop an
environmental health tracking system for Minnesota, consistent with applicable data
practices laws;

(2) facilitate the dissemination of aggregate public health tracking data to the public
and researchers in accessible format;

(3) develop a strategic plan that includes a mission statement, the identification
of core priorities for research and epidemiologic surveillance, and the identification of
internal and external stakeholders, and a work plan describing future program development
and addressing issues having to do with compatibility with the Centers for Disease Control
and Prevention's National Environmental Public Health Tracking Program;

(4) develop written data sharing agreements as needed with the Pollution Control
Agency, Department of Agriculture, and other relevant state agencies and organizations,
and develop additional procedures as needed to protect individual privacy;

(5) organize, analyze, and interpret available data, in order to:

(i) characterize statewide and localized trends and geographic patterns of
population-based measures of chronic diseases including, but not limited to, cancer,
respiratory diseases, reproductive problems, birth defects, neurologic diseases, and
developmental disorders;

(ii) characterize statewide and localized trends and geographic patterns in the
occurrence of environmental hazards and exposures;

(iii) assess the feasibility of integrating disease rate data with indicators of exposure
to the selected environmental hazards such as biomonitoring data, and other health and
environmental data;

(iv) incorporate newly collected and existing health tracking and biomonitoring
data into efforts to identify communities with elevated rates of chronic disease, higher
likelihood of exposure to environmental hazards, or both;

(v) analyze occurrence of environmental hazards, exposures, and diseases with
relation to socioeconomic status, race, and ethnicity;

(vi) develop and implement targeted plans to conduct more intensive health tracking
and biomonitoring among communities; and

(vii) work with the Pollution Control Agency, the Department of Agriculture, and
other relevant state agency personnel and organizations to develop, implement, and
evaluate preventive measures to reduce elevated rates of diseases and exposures identified
through activities performed under sections 144.995 to 144.998; and

(6) submit a biennial report to the chairs and ranking members of the committees
with jurisdiction over environment and health by January 15, beginning January 15, 2009,
on the status of environmental health tracking activities and related research programs,
with recommendations for a comprehensive environmental public health tracking program.

Subd. 2.

Biomonitoring.

The commissioner shall:

(1) conduct biomonitoring of communities on a voluntary basis by collecting and
analyzing biospecimens, as appropriate, to assess environmental exposures to designated
chemicals;

(2) conduct biomonitoring of pregnant women and minors on a voluntary basis,
when scientifically appropriate;

(3) communicate findings to the public, and plan ensuing stages of biomonitoring
and disease tracking work to further develop and refine the integrated analysis;

(4) share analytical results with the advisory panel and work with the panel
to interpret results, communicate findings to the public, and plan ensuing stages of
biomonitoring work; and

(5) submit a biennial report to the chairs and ranking members of the committees
with jurisdiction over environment and health by January 15, beginning January 15, 2009,
on the status of the biomonitoring program and any recommendations for improvement.

Subd. 3.

Health data.

Data collected under the biomonitoring program are health
data under section 13.3805.

Sec. 145.

[144.997] BIOMONITORING PILOT PROGRAM.

Subdivision 1.

Pilot program.

With advice from the advisory panel, and after the
program guidelines in subdivision 4 are developed, the commissioner shall implement a
biomonitoring pilot program. The program shall collect one biospecimen from each of
the voluntary participants. The biospecimen selected must be the biospecimen that most
accurately represents body concentration of the chemical of interest. Each biospecimen
from the voluntary participants must be analyzed for one type or class of related chemicals.
The commissioner shall determine the chemical or class of chemicals to which community
members were most likely exposed. The program shall collect and assess biospecimens in
accordance with the following:

(1) 30 voluntary participants from each of three communities that the commissioner
identifies as likely to have been exposed to a designated chemical;

(2) 100 voluntary participants from each of two communities:

(i) that the commissioner identifies as likely to have been exposed to arsenic; and

(ii) that the commissioner identifies as likely to have been exposed to mercury; and

(3) 100 voluntary participants from each of two communities that the commissioner
identifies as likely to have been exposed to perfluorinated chemicals, including
perfluorobutanoic acid.

Subd. 2.

Base program.

(a) By January 15, 2008, the commissioner shall submit a
report on the results of the biomonitoring pilot program to the chairs and ranking members
of the committees with jurisdiction over health and environment.

(b) Following the conclusion of the pilot program, the commissioner shall:

(1) work with the advisory panel to assess the usefulness of continuing biomonitoring
among members of communities assessed during the pilot program and to identify other
communities and other designated chemicals to be assessed via biomonitoring;

(2) work with the advisory panel to assess the pilot program, including but not
limited to the validity and accuracy of the analytical measurements and adequacy of the
guidelines and protocols;

(3) communicate the results of the pilot program to the public; and

(4) after consideration of the findings and recommendations in clauses (1) and (2),
and within the appropriations available, develop and implement a base program.

Subd. 3.

Participation.

(a) Participation in the biomonitoring program by providing
biospecimens is voluntary and requires written, informed consent. Minors may participate
in the program if a written consent is signed by the minor's parent or legal guardian.
The written consent must include the information required to be provided under this
subdivision to all voluntary participants.

(b) All participants shall be evaluated for the presence of the designated chemical
of interest as a component of the biomonitoring process. Participants shall be provided
with information and fact sheets about the program's activities and its findings.
Individual participants shall, if requested, receive their complete results. Any results
provided to participants shall be subject to the Department of Health Institutional
Review Board protocols and guidelines. When either physiological or chemical data
obtained from a participant indicate a significant known health risk, program staff
experienced in communicating biomonitoring results shall consult with the individual
and recommend follow-up steps, as appropriate. Program administrators shall receive
training in administering the program in an ethical, culturally sensitive, participatory,
and community-based manner.

Subd. 4.

Program guidelines.

(a) The commissioner, in consultation with the
advisory panel, shall develop:

(1) protocols or program guidelines that address the science and practice of
biomonitoring to be utilized and procedures for changing those protocols to incorporate
new and more accurate or efficient technologies as they become available. The
commissioner and the advisory panel shall be guided by protocols and guidelines
developed by the Centers for Disease Control and Prevention and the National
Biomonitoring Program;

(2) guidelines for ensuring the privacy of information; informed consent; follow-up
counseling and support; and communicating findings to participants, communities, and
the general public. The informed consent used for the program must meet the informed
consent protocols developed by the National Institutes of Health;

(3) educational and outreach materials that are culturally appropriate for
dissemination to program participants and communities. Priority shall be given to the
development of materials specifically designed to ensure that parents are informed about
all of the benefits of breastfeeding so that the program does not result in an unjustified fear
of toxins in breast milk, which might inadvertently lead parents to avoid breastfeeding.
The materials shall communicate relevant scientific findings; data on the accumulation
of pollutants to community health; and the required responses by local, state, and other
governmental entities in regulating toxicant exposures;

(4) a training program that is culturally sensitive specifically for health care
providers, health educators, and other program administrators;

(5) a designation process for state and private laboratories that are qualified to
analyze biospecimens and report the findings; and

(6) a method for informing affected communities and local governments representing
those communities concerning biomonitoring activities and for receiving comments from
citizens concerning those activities.

(b) The commissioner may enter into contractual agreements with health clinics,
community-based organizations, or experts in a particular field to perform any of the
activities described under this section.

Sec. 146.

[144.998] ENVIRONMENTAL HEALTH TRACKING AND
BIOMONITORING ADVISORY PANEL.

Subdivision 1.

Creation.

The commissioner shall establish the Environmental
Health Tracking and Biomonitoring Advisory Panel. The commissioner shall appoint,
from the panel's membership, a chair. The panel shall meet as often as it deems necessary
but, at a minimum, on a quarterly basis. Members of the panel shall serve without
compensation but shall be reimbursed for travel and other necessary expenses incurred
through performance of their duties. Members appointed by the commissioner are
appointed for a three-year term and may be reappointed. Legislative appointees serve at
the pleasure of the appointing authority.

Subd. 2.

Members.

(a) The commissioner shall appoint eight members, none of
whom may be lobbyists registered under chapter 10A, who have backgrounds or training
in designing, implementing, and interpreting health tracking and biomonitoring studies or
in related fields of science, including epidemiology, biostatistics, environmental health,
laboratory sciences, occupational health, industrial hygiene, toxicology, and public health,
including:

(1) at least two scientists representative of each of the following:

(i) nongovernmental organizations with a focus on environmental health,
environmental justice, children's health, or on specific chronic diseases; and

(ii) statewide business organizations; and

(2) at least one scientist who is a representative of the University of Minnesota.

(b) Two citizen panel members meeting the scientific qualifications in paragraph (a)
shall be appointed, one by the speaker of the house and one by the senate majority leader.

(c) In addition, one representative each shall be appointed by the commissioners of
the Pollution Control Agency and the Department of Agriculture, and by the commissioner
of health to represent the department's Health Promotion and Chronic Disease Division.

Subd. 3.

Duties.

The advisory panel shall make recommendations to the
commissioner and the legislature on:

(1) priorities for health tracking;

(2) priorities for biomonitoring that are based on sound science and practice, and
that will advance the state of public health in Minnesota;

(3) specific chronic diseases to study under the environmental health tracking system;

(4) specific environmental hazard exposures to study under the environmental health
tracking system, with the agreement of at least nine of the advisory panel members;

(5) specific communities and geographic areas on which to focus environmental
health tracking and biomonitoring efforts;

(6) specific chemicals to study under the biomonitoring program, with the agreement
of at least nine of the advisory panel members; in making these recommendations, the
panel may consider the following criteria:

(i) the degree of potential exposure to the public or specific subgroups, including,
but not limited to, occupational;

(ii) the likelihood of a chemical being a carcinogen or toxicant based on
peer-reviewed health data, the chemical structure, or the toxicology of chemically related
compounds;

(iii) the limits of laboratory detection for the chemical, including the ability to detect
the chemical at low enough levels that could be expected in the general population;

(iv) exposure or potential exposure to the public or specific subgroups;

(v) the known or suspected health effects resulting from the same level of exposure
based on peer-reviewed scientific studies;

(vi) the need to assess the efficacy of public health actions to reduce exposure to a
chemical;

(vii) the availability of a biomonitoring analytical method with adequate accuracy,
precision, sensitivity, specificity, and speed;

(viii) the availability of adequate biospecimen samples; or

(ix) other criteria that the panel may agree to; and

(7) other aspects of the design, implementation, and evaluation of the environmental
health tracking and biomonitoring system, including, but not limited to:

(i) identifying possible community partners and sources of additional public or
private funding;

(ii) developing outreach and educational methods and materials; and

(iii) disseminating environmental health tracking and biomonitoring findings to
the public.

Subd. 4.

Liability.

No member of the panel shall be held civilly or criminally liable
for an act or omission by that person if the act or omission was in good faith and within
the scope of the member's responsibilities under sections 144.995 to 144.998.

Sec. 147.

Minnesota Statutes 2006, section 219.99, is amended to read:

219.99 RAILROAD PRAIRIE RIGHT-OF-WAY; BEST MANAGEMENT
PRACTICES.

The commissioner of natural resources shall conduct a field review of railroad
rights-of-way to identify native prairie. The priority will be to identify and conduct a field
review of any surveys which have been conducted previously, whether by public or private
persons, of native prairies within railroad rights-of-way in this state. In cooperation with
railroad companies, the commissioner shall identify management practices used to control
vegetation along railroad rights-of-way. The commissioner shall then assess the impact
of those management practices on the prairie lands within the railroad rights-of-way.
Based on that assessment, the commissioner and railroad companies shall jointly develop
voluntary best management practices for prairie lands within railroad rights-of-way. The
commissioner shall, to the extent feasible, work with private individuals and groups
to cause to be erected markers at either end of each native prairie within a railroad
right-of-way.

Sec. 148.

Minnesota Statutes 2006, section 282.04, subdivision 1, is amended to read:

Subdivision 1.

Timber sales; land leases and uses.

(a) The county auditor may
sell timber upon any tract that may be approved by the natural resources commissioner.
The sale of timber shall be made for cash at not less than the appraised value determined
by the county board to the highest bidder after not less than one week's published notice
in an official paper within the county. Any timber offered at the public sale and not sold
may thereafter be sold at private sale by the county auditor at not less than the appraised
value thereof, until the time as the county board may withdraw the timber from sale. The
appraised value of the timber and the forestry practices to be followed in the cutting of
said timber shall be approved by the commissioner of natural resources.

(b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be
made in cash at the time of the timber sale, except in the case of oral or sealed bid auction
sales, the down payment shall be no less than 15 percent of the appraised value, and the
balance shall be paid prior to entry. In the case of auction sales that are partitioned and
sold as a single sale with predetermined cutting blocks, the down payment shall be no less
than 15 percent of the appraised price of the entire timber sale which may be held until the
satisfactory completion of the sale or applied in whole or in part to the final cutting block.
The value of each separate block must be paid in full before any cutting may begin in that
block. With the permission of the county contract administrator the purchaser may enter
unpaid blocks and cut necessary timber incidental to developing logging roads as may
be needed to log other blocks provided that no timber may be removed from an unpaid
block until separately scaled and paid for. If payment is provided as specified in this
paragraph as security under paragraph (a) and no cutting has taken place on the contract,
the county auditor may credit the security provided, less any down payment required for
an auction sale under this paragraph, to any other contract issued to the contract holder
by the county under this chapter to which the contract holder requests in writing that it
be credited, provided the request and transfer is made within the same calendar year as
the security was received.

(c) The county board may require final settlement on the basis of a scale of cut
products sell any timber, including biomass, as appraised or scaled. Any parcels of land
from which timber is to be sold by scale of cut products shall be so designated in the
published notice of sale under paragraph (a), in which case the notice shall contain a
description of the parcels, a statement of the estimated quantity of each species of timber,
and the appraised price of each species of timber for 1,000 feet, per cord or per piece, as
the case may be. In those cases any bids offered over and above the appraised prices shall
be by percentage, the percent bid to be added to the appraised price of each of the different
species of timber advertised on the land. The purchaser of timber from the parcels shall
pay in cash at the time of sale at the rate bid for all of the timber shown in the notice of
sale as estimated to be standing on the land, and in addition shall pay at the same rate for
any additional amounts which the final scale shows to have been cut or was available for
cutting on the land at the time of sale under the terms of the sale. Where the final scale
of cut products shows that less timber was cut or was available for cutting under terms
of the sale than was originally paid for, the excess payment shall be refunded from the
forfeited tax sale fund upon the claim of the purchaser, to be audited and allowed by the
county board as in case of other claims against the county. No timber, except hardwood
pulpwood, may be removed from the parcels of land or other designated landings until
scaled by a person or persons designated by the county board and approved by the
commissioner of natural resources. Landings other than the parcel of land from which
timber is cut may be designated for scaling by the county board by written agreement
with the purchaser of the timber. The county board may, by written agreement with the
purchaser and with a consumer designated by the purchaser when the timber is sold by the
county auditor, and with the approval of the commissioner of natural resources, accept the
consumer's scale of cut products delivered at the consumer's landing. No timber shall be
removed until fully paid for in cash. Small amounts of timber not exceeding $3,000 in
appraised valuation may be sold for not less than the full appraised value at private sale
to individual persons without first publishing notice of sale or calling for bids, provided
that in case of a sale involving a total appraised value of more than $200 the sale shall be
made subject to final settlement on the basis of a scale of cut products in the manner above
provided and not more than two of the sales, directly or indirectly to any individual shall
be in effect at one time.

(d) As directed by the county board, the county auditor may lease tax-forfeited land
to individuals, corporations or organized subdivisions of the state at public or private sale,
and at the prices and under the terms as the county board may prescribe, for use as cottage
and camp sites and for agricultural purposes and for the purpose of taking and removing of
hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden
sites and other temporary uses provided that no leases shall be for a period to exceed ten
years; provided, further that any leases involving a consideration of more than $12,000 per
year, except to an organized subdivision of the state shall first be offered at public sale in
the manner provided herein for sale of timber. Upon the sale of any leased land, it shall
remain subject to the lease for not to exceed one year from the beginning of the term of the
lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation
shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be
audited and allowed by the county board as in case of other claims against the county.

(e) As directed by the county board, the county auditor may lease tax-forfeited land
to individuals, corporations, or organized subdivisions of the state at public or private sale,
at the prices and under the terms as the county board may prescribe, for the purpose
of taking and removing for use for road construction and other purposes tax-forfeited
stockpiled iron-bearing material. The county auditor must determine that the material is
needed and suitable for use in the construction or maintenance of a road, tailings basin,
settling basin, dike, dam, bank fill, or other works on public or private property, and
that the use would be in the best interests of the public. No lease shall exceed ten years.
The use of a stockpile for these purposes must first be approved by the commissioner of
natural resources. The request shall be deemed approved unless the requesting county
is notified to the contrary by the commissioner of natural resources within six months
after receipt of a request for approval for use of a stockpile. Once use of a stockpile has
been approved, the county may continue to lease it for these purposes until approval is
withdrawn by the commissioner of natural resources.

(f) The county auditor, with the approval of the county board is authorized to grant
permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean
ores, tailings, or waste products from mines or ore milling plants, upon the conditions and
for the consideration and for the period of time, not exceeding 15 years, as the county
board may determine. The permits, licenses, or leases are subject to approval by the
commissioner of natural resources.

(g) Any person who removes any timber from tax-forfeited land before said
timber has been scaled and fully paid for as provided in this subdivision is guilty of a
misdemeanor.

(h) The county auditor may, with the approval of the county board, and without first
offering at public sale, grant leases, for a term not exceeding 25 years, for the removal
of peat and for the production or removal of farm-grown closed-loop biomass as defined
in section 216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited
lands upon the terms and conditions as the county board may prescribe. Any lease for
the removal of peat, farm-grown closed-loop biomass, or short-rotation woody crops
from tax-forfeited lands must first be reviewed and approved by the commissioner of
natural resources if the lease covers 320 or more acres. No lease for the removal of
peat, farm-grown closed-loop biomass, or short-rotation woody crops shall be made by
the county auditor pursuant to this section without first holding a public hearing on the
auditor's intention to lease. One printed notice in a legal newspaper in the county at least
ten days before the hearing, and posted notice in the courthouse at least 20 days before
the hearing shall be given of the hearing.

(i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis
County auditor may, at the discretion of the county board, sell timber to the party who
bids the highest price for all the several kinds of timber, as provided for sales by the
commissioner of natural resources under section 90.14. Bids offered over and above the
appraised price need not be applied proportionately to the appraised price of each of
the different species of timber.

(j) In lieu of any payment or deposit required in paragraph (b), as directed by the
county board and under terms set by the county board, the county auditor may accept an
irrevocable bank letter of credit in the amount equal to the amount otherwise determined
in paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph,
at the written request of the purchaser, the county may periodically allow the bank letter
of credit to be reduced by an amount proportionate to the value of timber that has been
harvested and for which the county has received payment. The remaining amount of
the bank letter of credit after a reduction under this paragraph must not be less than 20
percent of the value of the timber purchased. If an irrevocable bank letter of credit or
cash deposit is provided for the down payment required in paragraph (b), and no cutting
of timber has taken place on the contract for which a letter of credit has been provided,
the county may allow the transfer of the letter of credit to any other contract issued to the
contract holder by the county under this chapter to which the contract holder requests in
writing that it be credited.

Sec. 149.

[325E.385] PRODUCTS CONTAINING POLYBROMINATED
DIPHENYL ETHER.

Subdivision 1.

Definitions.

For the purposes of sections 325E.386 to 325E.388,
the terms in this section have the meanings given them.

Subd. 2.

Commercial decabromodiphenyl ether.

"Commercial
decabromodiphenyl ether" means the chemical mixture of decabromodiphenyl ether,
including associated polybrominated diphenyl ether impurities not intentionally added.

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of the Pollution
Control Agency.

Subd. 4.

Manufacturer.

"Manufacturer" means any person, firm, association,
partnership, corporation, governmental entity, organization, or joint venture that produces
a product containing polybrominated diphenyl ethers or an importer or domestic
distributor of a noncomestible product containing polybrominated diphenyl ethers.

Subd. 5.

Polybrominated diphenyl ethers or PBDE's.

"Polybrominated diphenyl
ethers" or "PBDE's" means chemical forms that consist of diphenyl ethers bound with
bromine atoms. Polybrominated diphenyl ethers include, but are not limited to, the
three primary forms of the commercial mixtures known as pentabromodiphenyl ether,
octabromodiphenyl ether, and decabromodiphenyl ether.

Subd. 6.

Retailer.

"Retailer" means a person who offers a product for sale at retail
through any means, including, but not limited to, remote offerings such as sales outlets,
catalogs, or the Internet, but does not include a sale that is a wholesale transaction with a
distributor or a retailer.

Subd. 7.

Used product.

"Used product" means any product that has been previously
owned, purchased, or sold in commerce. Used product does not include any product
manufactured after January 1, 2008.

Sec. 150.

[325E.386] PRODUCTS CONTAINING CERTAIN
POLYBROMINATED DIPHENYL ETHERS BANNED; EXEMPTIONS.

Subdivision 1.

Penta- and octabromodiphenyl ethers.

Except as provided in
subdivision 3, beginning January 1, 2008, a person may not manufacture, process, or
distribute in commerce a product or flame-retardant part of a product containing more
than one-tenth of one percent of pentabromodiphenyl ether or octabromodiphenyl ether
by mass.

Subd. 2.

Exemptions.

The following products containing polybrominated diphenyl
ethers are exempt from subdivision 1 and section 325E.387, subdivision 2:

(1) the sale or distribution of any used transportation vehicle with component parts
containing polybrominated diphenyl ethers;

(2) the sale or distribution of any used transportation vehicle parts or new
transportation vehicle parts manufactured before January 1, 2008, that contain
polybrominated diphenyl ethers;

(3) the manufacture, sale, repair, distribution, maintenance, refurbishment, or
modification of equipment containing polybrominated diphenyl ethers and used primarily
for military or federally funded space program applications. This exemption does not
cover consumer-based goods with broad applicability;

(4) the sale or distribution by a business, charity, public entity, or private party of
any used product containing polybrominated diphenyl ethers;

(5) the manufacture, sale, or distribution of new carpet cushion made from recycled
foam containing more than one-tenth of one percent polybrominated diphenyl ether;

(6) medical devices; or

(7) the manufacture, sale, repair, distribution, maintenance, refurbishment, or
modification of telecommunications equipment containing polybrominated diphenyl
ethers used by entities eligible to hold authorization in the Public Safety Pool under Code
of Federal Regulations, title 47, part 90.

In-state retailers in possession of products on January 1, 2008, that are banned for
sale under subdivision 1 may exhaust their stock through sales to the public. Nothing in
this section restricts the ability of a manufacturer, importer, or distributor from transporting
products containing polybrominated diphenyl ethers through the state, or storing such
products in the state for later distribution outside the state.

Sec. 151.

[325E.387] REVIEW OF DECABROMODIPHENYL ETHER.

Subdivision 1.

Commissioner duties.

The commissioner in consultation
with the commissioners of health and public safety shall review uses of commercial
decabromodiphenyl ether, availability of technically feasible and safer alternatives, fire
safety, and any evidence regarding the potential harm to public health and the environment
posed by commercial decabromodiphenyl ether and the alternatives. The commissioner
must consult with key stakeholders. The commissioner must also review the findings from
similar state and federal agencies and must report their findings and recommendations to
the appropriate committees of the legislature no later than January 15, 2008.

Subd. 2.

State procurement.

By January 1, 2008, the commissioner of
administration shall make available for purchase and use by all state agencies equipment,
supplies, and other products that do not contain polybrominated diphenyl ethers, unless
exempted under section 325E.386, subdivision 2.

Sec. 152.

[325E.388] PENALTIES.

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

Sec. 153.

Minnesota Statutes 2006, section 394.23, is amended to read:

394.23 COMPREHENSIVE PLAN.

The board has the power and authority to prepare and adopt by ordinance, a
comprehensive plan. A comprehensive plan or plans when adopted by ordinance must be
the basis for official controls adopted under the provisions of sections 394.21 to 394.37.
The commissioner of natural resources must provide the natural heritage data from the
county biological survey, if available, to each county for use in the comprehensive plan.

Sec. 154.

Minnesota Statutes 2006, section 462.353, subdivision 2, is amended to read:

Subd. 2.

Studies and reports.

In exercising its powers under subdivision 1, a
municipality may collect and analyze data, prepare maps, charts, tables, and other
illustrations and displays, and conduct necessary studies. A municipality may publicize its
purposes, suggestions, and findings on planning matters, may distribute reports thereon,
and may advise the public on the planning matters within the scope of its duties and
objectives. The commissioner of natural resources must provide the natural heritage
data from the county biological survey, if available, to each municipality for use in the
comprehensive plan.

Sec. 155.

Laws 2003, chapter 128, article 1, section 167, subdivision 1, as amended by
Laws 2005, First Special Session chapter 1, article 2, section 152, is amended to read:

Subdivision 1.

Forest classification status review.

(a) By December 31, 2006, the
commissioner of natural resources shall complete a review of the forest classification status
of all state forests classified as managed or limited, all forest lands under the authority of
the commissioner as defined in Minnesota Statutes, section 89.001, subdivision 13, and
lands managed by the commissioner under Minnesota Statutes, section 282.011. The
review must be conducted on a forest-by-forest and area-by-area basis in accordance with
the process and criteria under Minnesota Rules, part 6100.1950. Except as provided in
paragraph (d), after each forest is reviewed, the commissioner must change its the status
of the lands within each forest to limited or closed, and . The commissioner may classify
portions of a limited forest as closed. The commissioner must also provide a similar
status for each of the other areas subject to review under this section after each individual
review is completed.

(b) If the commissioner determines on January 1, 2005, that the review required
under this section cannot be completed by December 31, 2006, the completion date for the
review shall be extended to December 31, 2008. By January 15, 2005, the commissioner
shall report to the chairs of the legislative committees with jurisdiction over natural
resources policy and finance regarding the status of the process required by this section.

(c) Until December 31, 2010, the state forests and areas subject to review under this
section are exempt from Minnesota Statutes, section 84.777, unless an individual forest or
area has been classified as limited or closed.

(d) Notwithstanding the restrictions in paragraph (a), and Minnesota Statutes,
section 84.777, subdivision 1, all forest lands under the authority of the commissioner as
defined in Minnesota Statutes, section 89.001, subdivision 13, and lands managed by the
commissioner under Minnesota Statutes, section 282.011, that are north of U.S. Highway
2 shall maintain their present classification unless the commissioner reclassifies the lands
under Minnesota Rules, part 6100.1950. The commissioner shall provide for seasonal
trail closures when conditions warrant them. By December 31, 2008, the commissioner
shall complete the review and designate trails on forest lands north of Highway 2 as
provided in this section.

Sec. 156.

Laws 2003, chapter 128, article 1, section 169, is amended to read:

Sec. 169. CONTINUOUS TRAIL DESIGNATION.

(a) The commissioner of natural resources shall locate, plan, design, map, construct,
designate, and sign a new trail for use by all-terrain vehicles and off-highway motorcycles
of not less than 70 continuous miles in length on any land owned by the state or in
cooperation with any county on land owned by that county or on a combination of any of
these lands. This new trail shall be ready for use by April 1, 2007 June 30, 2009.

(b) All funding for this new trail shall come from the all-terrain vehicle dedicated
account and is appropriated each year as needed.

(c) This new trail shall have at least two areas of access complete with appropriate
parking for vehicles and trailers and enough room for loading and unloading all-terrain
vehicles. Some existing trails, that are strictly all-terrain vehicle trails, and are not
inventoried forest roads, may be incorporated into the design of this new all-terrain vehicle
trail. This new trail may be of a continuous loop design and shall provide for spurs to other
all-terrain vehicle trails as long as those spurs do not count toward the 70 continuous miles
of this new all-terrain vehicle trail. Four rest areas shall be provided along the way.

Sec. 157.

Laws 2006, chapter 236, article 1, section 21, is amended to read:

Sec. 21. EXCHANGE OF TAX-FORFEITED LAND; PRIVATE SALE;
ITASCA COUNTY.

(a) For the purpose of a land exchange for use in connection with a proposed
steel mill in Itasca County referenced in Laws 1999, chapter 240, article 1, section 8,
subdivision 3, title examination and approval of the land described in paragraph (b)
shall be undertaken as a condition of exchange of the land for class B land, and shall be
governed by Minnesota Statutes, section 94.344, subdivisions 9 and 10, and the provisions
of this section. Notwithstanding the evidence of title requirements in Minnesota Statutes,
section 94.344, subdivisions 9 and 10, the county attorney shall examine one or more title
reports or title insurance commitments prepared or underwritten by a title insurer licensed
to conduct title insurance business in this state, regardless of whether abstracts were
created or updated in the preparation of the title reports or commitments. The opinion of
the county attorney, and approval by the attorney general, shall be based on those title
reports or commitments.

(b) The land subject to this section is located in Itasca County and is described as:

(1) Sections 3, 4, 7, 10, 14, 15, 16, 17, 18, 20, 21, 22, 23, 26, 28, and 29, Township
56 North, Range 22 West;

(2) Sections 3, 4, 9, 10, 13, and 14, Township 56 North, Range 23 West;

(3) Section 30, Township 57 North, Range 22 West; and

(4) Sections 25, 26, 34, 35, and 36, Township 57 North, Range 23 West.

(c) Riparian land given in exchange by Itasca County for the purpose of the steel
mill referenced in paragraph (a), is exempt from the restrictions imposed by Minnesota
Statutes, section 94.342, subdivision 3.

(d) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1,
and the public sale provisions of Minnesota Statutes, chapter 282, Itasca County may sell,
by private sale, any land received in exchange for the purpose of the steel mill referenced
in paragraph (a), under the remaining provisions of Minnesota Statutes, chapter 282. The
sale must be in a form approved by the attorney general.

(e) Notwithstanding Minnesota Statutes, section 284.28, subdivision 8, or any other
law to the contrary, land acquired through an exchange under this section is exempt from
payment of three percent of the sales price required to be collected by the county auditor
at the time of sale for deposit in the state treasury.

Sec. 158. RELIEF PAYMENTS FOR TIMBER SALE PERMITS.

(a) Notwithstanding Minnesota Statutes, section 90.161, 90.173, 90.211, or other law
to the contrary, the commissioner of natural resources shall provide payment to permittees
with eligible permits subject to the following limits and conditions:

(1) permittees will receive a payment equal to the lesser of $2,250 or 60 percent of
the 15 percent down payment required under Minnesota Statutes, section 90.14, for each
eligible permit forfeited within 60 days following the effective date of this section; or

(2) permittees will receive a payment equal to 60 percent of the 15 percent down
payment required under Minnesota Statutes, section 90.14, for each eligible permit the
permittee commits to cut and close by the earlier of June 30, 2010, or when the permit
expires. This commitment must be made within 60 days following the effective date of
this section. Payment must be returned to the state for each permit for which the permittee
fails to fulfill the commitment under this clause.

(b) Payments under paragraph (a) shall be mailed to permittees by August 31, 2007.

(c) An "eligible permit" means a state timber permit:

(1) that was issued on or after June 1, 2004, but before April 1, 2006; and

(2) for which there has been no harvesting, road building, or other on-the-ground
actions taken.

(d) Permittees in default or trespass status are not eligible for payments under this
section. A permittee may forfeit any number of complete permits, not to exceed 7,500
cords in total. Partial permits may not be forfeited to meet the 7,500-cord maximum.

(e) The commissioner shall reoffer the forfeited sales no later than January 31, 2008.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 159. FOREST PROTECTION PLAN.

Subdivision 1.

Task force plan.

(a) The Forest Resources Council shall create a task
force to develop a plan to prepare the state for early detection, appropriate response, and
educating the public regarding invasive pests that threaten the tree cover of Minnesota. The
task force also may give advice on how to best promote forest diversity and the planting of
trees to address environmental challenges with the state. The plan must address:

(1) current efforts to address forest pests, what geographic areas and property types
have regular and active monitoring of forest pests, and gaps in the adequacy of the current
oversight and detection system;

(2) how the state may establish a flexible, yet comprehensive, system of tree
monitoring so that trees in all areas of Minnesota will be covered by active early pest
detection efforts. In analyzing this, the task force shall consider possible roles for certified
tree inspectors, volunteers, and state and local government;

(3) current storm damage response and how that might be improved for forest health
and to minimize vulnerability to pest infection;

(4) the adequacy of the current response plan, the clarity of state and local roles and
responsibilities, emergency communication plans, and the availability of needed funding
for pest outbreak response and how to scale it up should a major outbreak be detected;

(5) recommendations for clear delineation of state and local roles in notifying
property owners and enforcing remediation actions;

(6) the best approach to broad public education on the threats of new invasive tree
pests, the expected response to an outbreak, the value of trees to our environment, and the
promotion of a more diversified tree cover statewide; and

(7) an assessment of funding needs and options for the above activities and possible
funding approaches to promote the planting of a more diverse tree cover, along with
assisting in the costs of tree removal and replacement for public entities and property
owners.

(b) A report and recommendations to the legislative committees with jurisdiction
over natural resources and to the Legislative-Citizen Commission on Minnesota Resources
shall be due on December 15, 2007.

Subd. 2.

Task force creation.

The chair of the Forest Resources Council and the
commissioners of agriculture and natural resources shall jointly appoint the members
of the task force, which shall include up to 15 members with representatives of the
University of Minnesota; city, township, and county associations; commercial timber
and forest industries of varying size; nursery and landscape architecture; arborists and
certified tree inspectors; nonprofit organizations engaged in tree advocacy, planting, and
education; master gardeners; and the Minnesota Shade Tree Advisory Council and a tribal
representative recommended by the Indian Affairs Council.

Representatives of the Departments of Agriculture and Natural Resources shall serve
as ex-officio members and assist the task force in its work.

Sec. 160. ENDOCRINE DISRUPTOR REPORT.

(a) The commissioner of the Pollution Control Agency, in consultation with the
commissioner of agriculture, the commissioner of health, the commissioner of natural
resources, the University of Minnesota, and the United States Environmental Protection
Agency, shall prepare a report on strategies to address endocrine disruptors in waters of
the state. The report shall include:

(1) a review of the current literature of known endocrine-disrupting compounds to
determine which ones are most likely to be of significance to humans, fish, and wildlife
in Minnesota;

(2) a review of scientific studies to determine whether these compounds have the
potential to account for known effects on humans, fish, and wildlife in Minnesota;

(3) a review of the comparative risk posed by endocrine-disrupting compounds to
the long-term viability of populations of fish and wildlife; and

(4) an evaluation of the practicability and the cost of prevention and remediation
strategies for any endocrine-disrupting compounds found in clauses (1) and (2), as well as
other potential endocrine disruptors.

(b) By January 15, 2008, the commissioner shall submit the report to the house of
representatives and senate committees and divisions with jurisdiction over environment
and natural resources policy and finance.

Sec. 161. EASEMENT REPORT REQUIRED.

By January 1, 2008, the commissioner of natural resources must report to the
house and senate committees with jurisdiction over environment and natural resources
finance with proposed minimum legal and conservation standards that could be applied
to conservation easements acquired with public money.

Sec. 162. TAX-FORFEITED LANDS LEASE; ITASCA COUNTY.

Notwithstanding Minnesota Statutes, section 282.04, or other law to the contrary,
the Itasca County auditor may lease tax-forfeited land to a proposed steel mill in Itasca
County for a period of 20 years, for use as a tailings basin and buffer area. A lease entered
under this section is renewable.

Sec. 163. WILD RICE STUDY.

By February 15, 2008, the commissioner of natural resources must prepare a study
for natural wild rice that includes:

(1) the current location and estimated acreage and area of natural stands;

(2) potential threats to natural stands, including, but not limited to, development
pressure, water levels, pollution, invasive species, and genetically engineered strains; and

(3) recommendations to the house and senate committees with jurisdiction over
natural resources on protecting and increasing natural wild rice stands in the state.

In developing the study, the commissioner must contact and ask for comments
from the state's wild rice industry, the commissioner of agriculture, local officials with
significant areas of wild rice within their jurisdictions, tribal leaders within affected
federally recognized tribes, and interested citizens.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 164. CONSTRUCTION.

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

Sec. 165. SEPTIC BEST PRACTICES ASSISTANCE.

The commissioner of the Pollution Control Agency shall establish a database of
best practices regarding the installation, management, and maintenance of individual
sewage treatment systems. The database must be made available to any interested public
or private party.

Sec. 166. RULEMAKING.

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

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 167. GREENLEAF LAKE STATE RECREATION AREA.

Subdivision 1.

[85.013] [Subd. 11b.] Greenleaf Lake State Recreation Area.

In addition to the lands designated under Laws 2003, First Special Session chapter 13,
section 6, as amended by Laws 2004, chapter 262, article 2, section 10, the following lands
are added to the Greenleaf Lake State Recreation Area:

(1) the West 1104.98 feet of Government Lot 4, Section 21, Township 118 North, Range
30 West, Meeker County, Minnesota; and

(2) that part of Government Lot 7 of Section 20, Township 118, Range 30, which lies
south of the following described line and its extensions: said line commencing at the
southwest corner of said Section 20; thence on an assumed bearing of North 08 degrees
22 minutes 44 seconds West, along the west line of said section, a distance of 1350.00
feet to the point of beginning of the line to be described; thence North 88 degrees 28
minutes 35 seconds East, a distance of 699 feet to the shoreline of Greenleaf Lake and
said line terminating thereat; and Government Lot 8 of said section except the following
described tract: said tract being that part of said Government Lot 8 lying east of the
following described line: said line commencing at the southwest corner of said section;
thence easterly, along the south line of said section, a distance of 734.60 feet to the point
of beginning of the line to be described; thence north at a right angle, a distance of 100
feet and said line terminating thereat.

Subd. 2.

Management.

The commissioner of natural resources, in consultation with
local elected officials and citizens of Meeker County and other interested stakeholders,
shall develop a comprehensive management plan that provides for opportunities for
outdoor recreation, as defined under Minnesota Statutes, section 86A.03, subdivision 3, in
Greenleaf Lake State Recreation Area. The completed management plan shall serve as the
master plan for purposes of Minnesota Statutes, section 86A.09.

Sec. 168. VERMILLION HIGHLANDS WILDLIFE MANAGEMENT AREA.

(a) The following area is established and designated as the Vermillion Highlands
Wildlife Management Area, subject to the special permitted uses authorized in this section:

The approximately 2,840 acres owned by the University of Minnesota lying within
the area legally described as approximately the southerly 3/4 of the Southwest 1/4 of
Section 1, the Southeast 1/4 of Section 2, the East 1/2 of Section 10, Section 11, the
West 1/2 of Section 12, Section 13, and Section 14, all in Township 114 North, Range
19 West, Dakota County.

(b) Notwithstanding Minnesota Statutes, section 86A.05, subdivision 8, paragraph
(c), permitted uses in the Vermillion Highlands Wildlife Management Area include:

(1) education, outreach, and agriculture with the intent to eventually phase out
agriculture leases and plant and restore native prairie;

(2) research by the University of Minnesota or other permitted researchers;

(3) hiking, hunting, fishing, trapping, and other compatible wildlife-related
recreation of a natural outdoors experience, without constructing new hard surface trails
or roads, and supporting management and improvements;

(4) designated trails for hiking, horseback riding, biking, and cross-country skiing
and necessary trailhead support with minimal impact on the permitted uses in clause (3);

(5) shooting sports facilities for sporting clays, skeet, trapshooting, and rifle and
pistol shooting, including sanctioned events and training for responsible handling and
use of firearms;

(6) grant-in-aid snowmobile trails; and

(7) leases for small-scale farms to market vegetable farming.

(c) With the concurrence of representatives of the University of Minnesota and
Dakota County, the commissioner of natural resources may, by posting or rule, restrict the
permitted uses as follows:

(1) temporarily close areas or trails, by posting at the access points, to facilitate
hunting. When temporarily closing trails under this clause, the commissioner shall avoid
closing all trail loops simultaneously whenever practical; or

(2) limit other permitted uses to accommodate hunting and trapping after providing
advance public notice. Research conducted by the university may not be limited unless
mutually agreed by the commissioner and the University of Minnesota.

(d) Road maintenance within the wildlife management area shall be minimized, with
the intent to abandon interior roads when no longer needed for traditional agriculture
purposes.

(e) Money collected on leases from lands within the wildlife management area
must be kept in a separate account and spent within the wildlife management area under
direction of the representatives listed in paragraph (c). $200,000 of this money may be
transferred to the commissioner of natural resources for a master planning process and
resource inventory of the land identified in Minnesota Statutes, section 137.50, subdivision
6, in order to provide needed prairie and wetland restoration. The commissioner must work
with affected officials from the University of Minnesota and Dakota County to complete
these requirements and inform landowners and lessees about the planning process.

(f) Notwithstanding Minnesota Statutes, sections 97A.061 and 477A.11, the state
of Minnesota shall not provide payments in lieu of taxes for the lands described in
paragraph (a).

Sec. 169. INFORMATION SHARING.

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

Sec. 170. REPEALER.

(a) Minnesota Statutes 2006, sections 18G.16; and 89.51, subdivision 8, are repealed.

(b) Minnesota Statutes 2006, section 103G.2241, subdivision 8, is repealed the
day following final enactment.

(c) Minnesota Statutes 2006, section 85.012, subdivision 24b, is repealed.

ARTICLE 2

ENERGY

Section 1. SUMMARY OF APPROPRIATIONS.

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

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

Sec. 2. ENERGY FINANCE APPROPRIATIONS.

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

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2008		2009

Sec. 3. DEPARTMENT OF COMMERCE.

Subdivision 1. Total Appropriation

$

42,167,000

$

33,670,000

Appropriations by Fund
	2008	2009
General	32,523,000	24,026,000
Petroleum Cleanup	1,084,000	1,084,000
Workers' Compensation	835,000	835,000
Special Revenue	7,725,000	7,725,000

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

Subd. 2. Financial Examinations

6,489,000

6,637,000

Subd. 3. Petroleum Tank Release Cleanup Board

1,084,000

1,084,000

This appropriation is from the petroleum
tank release cleanup fund.

Subd. 4. Administrative Services

4,508,000

4,604,000

Subd. 5. Market Assurance

6,950,000

7,097,000

Appropriations by Fund
General	6,115,000	6,262,000
Workers' Compensation	835,000	835,000

Subd. 6. Energy and Telecommunications

$

23,036,000

$

14,148,000

Appropriations by Fund
General	15,411,000	6,523,000
Special Revenue	7,625,000	7,625,000

The utility subject to Minnesota Statutes,
section 116C.779, shall transfer $7,625,000
in fiscal year 2008 and $7,625,000 in fiscal
year 2009 to the Department of Commerce
on a schedule to be determined by the
commissioner of commerce. The funds must
be deposited in the special revenue fund
and are appropriated to the commissioner
for grants to promote renewable energy
projects and community energy outreach and
assistance. Of the amounts identified:

(1) $500,000 each year for capital grants for
on-farm biogas recovery facilities; eligible
projects will be selected in coordination
with the Department of Agriculture and the
Pollution Control Agency;

(2) $500,000 each year to provide financial
rebates to new solar electricity projects;

(3) $625,000 each year for continued funding
of community energy technical assistance
and outreach on renewable energy and
energy efficiency, as described in section 25.
Of this amount, $125,000 is for technical
assistance in the metropolitan area;

(4) $1,000,000 each year is for technical
analysis and demonstration funding for
automotive technology projects, with a
special focus on plug-in hybrid electric
vehicles and to study environmental-friendly
manufacturing and assembly processes to
identify ones that could employ workers
formerly employed at the St. Paul Ford
manufacturing plant and other large
manufacturing facilities in Minnesota;

(5) $750,000 in the first year is for the
purpose of preparing the hydrogen road map
and making grants under Minnesota Statutes,
section 216B.813;

(6) $2,000,000 in the first year is for deposit
with the rural wind energy development
revolving loan fund under Minnesota
Statutes, section 216C.39;

(7) $2,250,000 the first year and $2,000,000
the second year are to provide competitive,
cost-share grants to fund renewable energy
research in Minnesota. These grants must be
awarded by a three-member panel made up
of the commissioners of commerce, pollution
control, and agriculture, or their designees.
Grant applications must be ranked and grants
issued according to how well the applications
meet state energy policy research goals
established by the commissioners, the quality
and experience of the research teams, the
cross-interdisciplinary and cross-institutional
nature of the research teams, and the ability
of the research team to leverage nonstate
funds; and

(8) $3,000,000 the second year is for a grant
to the Board of Regents of the University of
Minnesota for the Initiative for Renewable
Energy and the Environment. The grant
is for the purposes set forth in Minnesota
Statutes, section 216B.241, subdivision 6.
The appropriation is available until spent.
The budget for this grant to the Board of
Regents of the University of Minnesota for
the Initiative for Renewable Energy and the
Environment is $5,000,000 each year in the
2010-2011 fiscal biennium.

As a condition of this grant, beginning in
the 2010-2011 biennium, the Initiative for
Renewable Energy and the Environment
must set aside at least 15 percent of the
funds received annually under the grant for
qualified projects conducted at a rural campus
or experiment station. Any amount of the
set aside funds that has not been awarded to
a rural campus or experiment station at the
end of the fiscal year must revert back to the
initiative for its exclusive use.

$1,500,000 the first year and $1,500,000 the
second year are for E85 cost-share grants.
The commissioner may reimburse owners
of gasoline service stations for up to 75
percent of the total cost of installing an E85
pump, including the tank and any related
components, up to a maximum of $15,000
per E85 pump. Notwithstanding Minnesota
Statutes, section 16A.28, this appropriation is
available until expended. Up to ten percent of
the funds may be used for cost-share grants to
convert or install underground tanks at retail
gasoline service stations storing biodiesel
fuel that is at least 99.9 percent biodiesel
fuel by volume for on-site blending and for
dispensing systems at retail gasoline service
stations that dispense biodiesel fuel blends of
at least ten percent biodiesel fuel by volume.
In awarding grants, the commissioner of
commerce must consult with the Minnesota
Soybean Growers Association and may
consult with other organizations deemed
appropriate. This is a onetime appropriation.

$4,500,000 the first year is for a onetime
grant to the St. Paul Port Authority in part
for a study related to a steam and electrical
energy facility to supply energy to a customer
using steam in a paper recycling operation.

The port authority shall convene and
regularly involve a citizen advisory
committee composed of members
recommended by St. Paul district councils
11, 12, 13, and 14 and other members as
appropriate to advise on the scope of the
study. The citizen advisory committee
must meet regularly throughout the course
of the study and the development of
recommendations. The citizen advisory
committee shall have the right to include
its separate recommendations as part of the
port authority recommendations submitted at
the public meeting and to the St. Paul City
Council.

The study shall:

(1) assess the economic and technical
feasibility of various fuel types to power the
plant;

(2) provide a full description and analysis of
each fuel type and their respective economic
and noneconomic impacts;

(3) provide a full description and analysis
of each fuel type and their respective
environmental emissions, including carbon
dioxide, and the cost of controlling those
emissions that affect human health;

(4) describe public subsidies related to the
production and use of each fuel type;

(5) describe potential energy efficiency
improvement that can be made to the paper
recycling operation and subsidies available
for each improvement; and

(6) evaluate additional uses for the steam and
electricity produced at the facility and the
cost of infrastructure needed to implement
the additional uses.

In addition, the grant may be used
for environmental review, permitting,
preliminary engineering, and development of
total project cost estimates, including project
design and engineering, other preliminary
work, and a preliminary financing plan for
the steam and electricity producing facility.
The St. Paul Port Authority shall present
the findings of its analysis and its preferred
alternative for an eligible energy technology
fuel mix in at least two public meetings
that must be held in the area encompassing
districts 11, 12, 13, and 14 in the city of
St. Paul. "Eligible energy technology" has
the meaning given in Minnesota Statutes,
section 216B.1691, subdivision 1, except
that it does not include mixed municipal
solid waste as an eligible energy technology.
The recommendation of the St. Paul Port
Authority concerning its preferred alternative
fuel mix must be based on the alternative
that has the least environmental impact
consistent with the economic viability
and technical feasibility of the facility.
Testimony shall be taken at the meetings
from citizens who live in the affected
communities. Resolutions concerning the
facility from district councils 11, 12, 13,
and 14 must be solicited by the city council.
Construction of the facility may not be
commenced unless and until the St. Paul City
Council has adopted a resolution approving
the construction after consideration of the
findings of the port authority, resolutions
from the district councils, and other public
input. The appropriation does not cancel and
is available until expended. Of this amount,
$500,000 is transferred to the Department
of Natural Resources for the Ecological
Services Division to prepare, authorize, and
implement habitat restoration plans on public
or private properties to fulfill ecological
principles of restoration ecology, while
providing roadside access to the byproduct
of the management actions at no cost to the
operator of a biomass-fueled cogeneration
facility located in St. Paul. The division
may provide grants or otherwise transfer
some or all of these funds to other public or
private entities to accomplish these purposes.
If a higher value nonbiomass market is
available for some of the byproduct of this
management, the division is authorized to
sell the material to that market, provided
that all of the proceeds are spent for the
further purposes of this appropriation.
The nonbiomass market sales of material
from this management cannot exceed 20
percent by weight of the total byproducts
produced by all approved activities under
this appropriation. The restoration activities
shall take place on land located within 75
miles by road of the city of St. Paul. The
division shall consult with the operator of the
biomass facility and other appropriate parties
regarding planned projects to be funded with
this appropriation. The division shall report
annually to the legislative policy and finance
committees for natural resources and energy
regarding the expenditures and results of the
program. This appropriation does not cancel
but is available until spent.

$150,000 the first year is appropriated to the
commissioner of commerce for grants for
demonstration projects of electric vehicles
with advanced transmission technologies
incorporating, if feasible, batteries,
converters, and other components developed
in Minnesota. Funds may be expended
under the grants only if grantees enter into
agreements specifying that commercial
production of these vehicles and components
will, to the extent possible, take place in
Minnesota.

(a) $1,000,000 each year is to the Center for
Rural Policy and Development at Minnesota
State University at Mankato to make a grant
to a nonprofit organization with experience
dealing with energy and community wind
issues to design and implement a rural wind
energy development assistance program.
This is a onetime only appropriation. The
program must be designed to maximize rural
economic development and stabilize rural
community institutions, including hospitals
and schools, by increasing the income of
local residents and increasing local tax
revenues. The grant may be disbursed in
two installments. The program must provide
assistance to rural entities seeking to develop
wind energy electric generation projects
and to sell the energy from the projects.
Among other strategies, the program may
consider combining rural entities and others
into groups with the size and market power
necessary for planning and developing
significant rural wind energy projects.

(b) The program must provide assistance by,
among other things:

(1) providing legal, engineering, and
financial services;

(2) identifying target communities with
favorable wind resources, community
interest, and local political support;

(3) providing assistance to reserve, obtain,
and assure the maintenance over time of
wind turbines;

(4) creating market opportunities for utilities
to meet their renewable energy obligations
through purchases of rural community wind;

(5) assisting in the negotiation of fair power
purchase agreements;

(6) facilitating transmission interconnection
and delivery of energy from rural and
community wind projects; and

(7) lowering the market risk facing potential
wind investors by supporting local wind
development from start to finish.

The grantee must demonstrate an ability
to sustain program functions with ongoing
revenue from sources other than state funding
and shall provide a 35 percent grant match
in the first year. The grant must be awarded
on a competitive basis. The center must use
best practices regarding grant management
functions, including selection and monitoring
of the grantee, compliance review, and
financial oversight. Grant management fees
are limited to 2.5 percent of the grant.

(c) The commissioner of commerce shall
monitor the activities of the rural wind
energy development assistance program
created under paragraphs (a) to (c). By
November 1, 2008, the commissioner shall
submit an evaluation of the program to
the chairs of the house of representatives
and senate committees with jurisdiction
over energy policy and finance, including
recommendations for legislative or
administrative action to better achieve the
program goals described in paragraph (a).

$1,000,000 in fiscal year 2008 is for
distribution to eligible households for home
heating assistance during the 2007 calendar
year. The commissioner must distribute
funds to eligible households according to
the formula developed for the distribution
of the federal Low-Income Home Energy
Assistance Program for fiscal year 2008.
This appropriation is available until spent.

$3,250,000 the first year is for the renewable
hydrogen initiative in Minnesota Statutes,
section 216B.813, to fund the competitive
grant program included in that section. The
commissioner may use up to two percent of
the competitive grant program appropriation
for grant administration and to develop and
implement the renewable hydrogen road
map. This is a onetime appropriation and is
available until expended.

$50,000 the first year is a onetime
appropriation for a comprehensive technical,
economic, and environmental analysis of the
benefits to be derived from greater use in this
state of geothermal heat pump systems for
heating and cooling air and heating water.
The analysis must:

(1) estimate the extent of geothermal heat
pump systems currently installed in this state
in residential, commercial, and institutional
buildings;

(2) estimate energy and economic savings of
geothermal heat pump systems in comparison
with fossil fuel-based heating and cooling
systems, including electricity use, on a
capital cost and life-cycle cost basis, for both
newly constructed and retrofitted residential,
commercial, and institutional buildings;

(3) compare the emission of pollutants and
greenhouse gases from geothermal heat
pump systems and fossil fuel-based heating
and cooling systems;

(4) identify financial assistance available
from state and federal sources and Minnesota
utilities to defray the costs of installing
geothermal heat pump systems;

(5) identify Minnesota firms currently
manufacturing or installing the physical
components of geothermal heat pump
systems and estimate the economic
development potential in this state if demand
for such systems increases significantly;

(6) identify the barriers to more widespread
adoption of geothermal heat pump systems in
this state and suggest strategies to overcome
those barriers; and

(7) make recommendations for legislative
action.

Not later than March 15, 2008, the
commissioner shall submit the results of the
analysis in a report to the chairs of the senate
and house of representatives committees
with primary jurisdiction over energy policy.

$45,000 the first year is a onetime
appropriation for a grant to Linden Hills
Power and Light for preliminary engineering
design work and other technical and legal
services required for a community digester
and neighborhood district heating and
cooling system demonstration project in the
Linden Hills neighborhood of Minneapolis.
Funds may be expended upon a determination
by the commissioner of commerce that the
project is technically and economically
feasible. A portion of the appropriation
may be used to expand the scope of the
project feasibility study to include portions
of adjacent communities including St. Louis
Park and Edina.

Subd. 7. Telecommunications Access Minnesota

100,000

100,000

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

Sec. 4. PUBLIC UTILITIES COMMISSION

$

5,347,000

$

5,433,000

Sec. 5. NEXTGEN ENERGY BOARD

By October 1 of 2007 and 2008, an entity
receiving renewable development funds to
conduct energy research under this article
must present a research plan outlining the
activities to be conducted with those funds,
and any results from research completed with
those funds during the previous year, to the
NextGen Energy Board established under
Minnesota Statutes, section 41A.05, for its
review and comment.

Sec. 6.

[16C.141] EMPLOYEE SUGGESTIONS; ENERGY SAVINGS
INCENTIVE PROGRAM.

Subdivision 1.

Creation of program.

The commissioner of administration must
implement a program using best practices and develop policies under which state
employees may receive cash awards for making suggestions that result in documented
cost savings to state agencies from reduced energy usage in state-owned buildings. The
program must be structured to provide state employees an opportunity to receive a cash
award for suggestions that are implemented and result in documented cost savings to state
agencies from reduced energy use in state-owned buildings. The program must also
include methods to document submissions of suggestions and energy and cost savings
resulting from the implementation of employee suggestions.

Subd. 2.

Funding.

To the extent necessary to fund the program under this section,
the commissioner of administration, with approval of the commissioner of finance, may
transfer a portion of the documented cost savings resulting from a suggestion under this
section from the general services revolving fund to an energy savings reward account.
Money in the energy savings reward account is appropriated to the commissioner for
purposes of making cash rewards and paying the commissioner's incentive program
developments costs and administrative expenses under this section.

Subd. 3.

Report to legislature.

The commissioner of administration shall report to
the chairs of the senate and house of representatives committees with jurisdiction over
energy policy by January 1, 2008, on the development of the incentive program, and
by January 15 each year thereafter on the implementation of this section, including the
ideas submitted and energy savings realized.

Subd. 4.

Minnesota State Colleges and Universities.

This section does not apply to
the Minnesota State Colleges and Universities, except to the extent the Board of Trustees
of the Minnesota State Colleges and Universities provides that the section does apply.

Subd. 5.

Repeal.

This section is repealed July 1, 2009.

Sec. 7.

Minnesota Statutes 2006, section 116C.775, is amended to read:

116C.775 SHIPMENT PRIORITIES; PRAIRIE ISLAND NUCLEAR PLANTS.

If a storage or disposal site becomes available outside of the state to accept
high-level nuclear waste stored at Prairie Island or Monticello, the waste contained in dry
casks shall be shipped to that site before the shipment of any waste from the spent nuclear
fuel storage pool. Once waste is shipped that was contained in a cask, the cask must be
decommissioned and not used for further storage.

Sec. 8.

Minnesota Statutes 2006, section 116C.777, is amended to read:

116C.777 SITE.

The spent fuel contents of dry casks located on Prairie Island must be moved
immediately upon the availability of another site for storage of the spent fuel that is not
located on Prairie Island or at Monticello.

Sec. 9.

Minnesota Statutes 2006, section 116C.779, subdivision 1, is amended to read:

Subdivision 1.

Renewable development account.

(a) The public utility that owns
the Prairie Island nuclear generating plant must transfer to a renewable development
account $16,000,000 annually each year the plant is in operation, and $7,500,000 each
year the plant is not in operation if ordered by the commission pursuant to paragraph
(c) (d). The fund transfer must be made if nuclear waste is stored in a dry cask at the
independent spent-fuel storage facility at Prairie Island for any part of a year. Funds
in the account may be expended only for development of renewable energy sources.
Preference must be given to development of renewable energy source projects located
within the state. The utility that owns a nuclear generating plant is eligible to apply for
renewable development fund grants. The utility's proposals must be evaluated by the
renewable development fund board in a manner consistent with that used to evaluate other
renewable development fund project proposals.

(b) The public utility that owns the Monticello nuclear generating plant must transfer
to the renewable development account $350,000 each year for each dry cask containing
spent fuel that is located at the Monticello nuclear power plant for each year the plant is
in operation, and $5,250,000 each year the plant is not in operation if ordered by the
commission pursuant to paragraph (d). The fund transfer must be made if nuclear waste
is stored in a dry cask at the independent spent-fuel storage facility at Monticello for
any part of a year.

(b) (c) Expenditures from the account may only be made after approval by order of
the Public Utilities Commission upon a petition by the public utility.

(c) (d) After discontinuation of operation of the Prairie Island nuclear plant or the
Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the
Prairie Island discontinued facility, the commission shall require the public utility to pay
$7,500,000 for the discontinued Prairie Island facility and $5,250,000 for the discontinued
Monticello facility for any year in which the commission finds, by the preponderance of
the evidence, that the public utility did not make a good faith effort to remove the spent
nuclear fuel stored at Prairie Island the facility to a permanent or interim storage site out
of the state. This determination shall be made at least every two years.

Sec. 10.

[173.0851] STATE ENERGY CITY.

The city of Elk River is designated as a state energy city.

Sec. 11.

[216B.091] MONTHLY REPORTS.

(a) Each public utility must report the following data on residential customers to the
commission monthly, in a format determined by the commission:

(1) number of customers;

(2) number and total amount of accounts past due;

(3) average customer past due amount;

(4) total revenue received from the low-income home energy assistance program and
other sources contributing to the bills of low-income persons;

(5) average monthly bill;

(6) total sales revenue;

(7) total write-offs due to uncollectible bills;

(8) number of disconnection notices mailed;

(9) number of accounts disconnected for nonpayment;

(10) number of accounts reconnected to service; and

(11) number of accounts that remain disconnected, grouped by the duration of
disconnection, as follows:

(i) 1-30 days;

(ii) 31-60 days; and

(iii) more than 60 days.

(b) Monthly reports for October through April must also include the following data:

(1) number of cold weather protection requests;

(2) number of payment arrangement requests received and granted;

(3) number of right to appeal notices mailed to customers;

(4) number of reconnect request appeals withdrawn;

(5) number of occupied heat-affected accounts disconnected for 24 hours or more
for electric and natural gas service separately;

(6) number of occupied non-heat-affected accounts disconnected for 24 hours or
more for electric and gas service separately;

(7) number of customers granted cold weather rule protection;

(8) number of customers disconnected who did not request cold weather rule
protection; and

(9) number of customers disconnected who requested cold weather rule protection.

(c) The data reported under paragraphs (a) and (b) is presumed to be accurate upon
submission and must be made available through the commission's electronic filing system.

Sec. 12.

[216B.0951] PROPANE PREPURCHASE PROGRAM.

Subdivision 1.

Establishment.

The commissioner of commerce shall operate, or
contract to operate, a propane fuel prepurchase fuel program. The commissioner may
contract at any time of the year to purchase the lesser of one-third of the liquid propane
fuel consumed by low-income home energy assistance program recipients during the
previous heating season or the amount that can be purchased with available funds. The
propane fuel prepurchase program must be available statewide through each local agency
that administers the energy assistance program. The commissioner may decide to limit or
not engage in prepurchasing if the commissioner finds that there is a reasonable likelihood
that prepurchasing will not provide fuel-cost savings.

Subd. 2.

Hedge account.

The commissioner may establish a hedge account with
realized program savings due to prepurchasing. The account must be used to compensate
program recipients an amount up to the difference in cost for fuel provided to the recipient
if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No
more than ten percent of the aggregate prepurchase program savings may be used to
establish the hedge account.

Subd. 3.

Report.

The Department of Commerce shall issue a report by June 30,
2008, made available electronically on its Web site and in print upon request, that contains
the following information:

(1) the cost per gallon of prepurchased fuel;

(2) the total gallons of fuel prepurchased;

(3) the average cost of propane each month between October and the following April;

(4) the number of energy assistance program households receiving prepurchased
fuel; and

(5) the average savings accruing or benefit increase provided to energy assistance
households.

Sec. 13.

[216B.096] COLD WEATHER RULE; PUBLIC UTILITIES.

Subdivision 1.

Scope.

This section applies only to residential customers of a utility.

Subd. 2.

Definitions.

(a) The terms used in this section have the meanings given
them in this subdivision.

(b) "Cold weather period" means the period from October 15 through April 15 of
the following year.

(c) "Customer" means a residential customer of a utility.

(d) "Disconnection" means the involuntary loss of utility heating service as a result
of a physical act by a utility to discontinue service. Disconnection includes installation of
a service or load limiter or any device that limits or interrupts utility service in any way.

(e) "Household income" means the combined income, as defined in section 290A.03,
subdivision 3, of all residents of the customer's household, computed on an annual basis.
Household income does not include any amount received for energy assistance.

(f) "Reasonably timely payment" means payment within five working days of
agreed-upon due dates.

(g) "Reconnection" means the restoration of utility heating service after it has been
disconnected.

(h) "Summary of rights and responsibilities" means a commission-approved notice
that contains, at a minimum, the following:

(1) an explanation of the provisions of subdivision 5;

(2) an explanation of no-cost and low-cost methods to reduce the consumption
of energy;

(3) a third-party notice;

(4) ways to avoid disconnection;

(5) information regarding payment agreements;

(6) an explanation of the customer's right to appeal a determination of income by the
utility and the right to appeal if the utility and the customer cannot arrive at a mutually
acceptable payment agreement; and

(7) a list of names and telephone numbers for county and local energy assistance and
weatherization providers in each county served by the utility.

(i) "Third-party notice" means a commission-approved notice containing, at a
minimum, the following information:

(1) a statement that the utility will send a copy of any future notice of proposed
disconnection of utility heating service to a third party designated by the residential
customer;

(2) instructions on how to request this service; and

(3) a statement that the residential customer should contact the person the customer
intends to designate as the third-party contact before providing the utility with the party's
name.

(j) "Utility" means a public utility as defined in section 216B.02, and a cooperative
electric association electing to be a public utility under section 216B.026. Utility also
means a municipally owned gas or electric utility for nonresident consumers of the
municipally owned utility and a cooperative electric association when a complaint in
connection with utility heating service during the cold weather period is filed under
section 216B.17, subdivision 6 or 6a.

(k) "Utility heating service" means natural gas or electricity used as a primary
heating source, including electricity service necessary to operate gas heating equipment,
for the customer's primary residence.

(l) "Working days" means Mondays through Fridays, excluding legal holidays. The
day of receipt of a personally served notice and the day of mailing of a notice shall not
be counted in calculating working days.

Subd. 3.

Utility obligations before cold weather period.

Each year, between
September 1 and October 15, each utility must provide all customers, personally or by first
class mail, a summary of rights and responsibilities. The summary must also be provided
to all new residential customers when service is initiated.

Subd. 4.

Notice before disconnection during cold weather period.

Before
disconnecting utility heating service during the cold weather period, a utility must
provide, personally or by first class mail, a commission-approved notice to a customer,
in easy-to-understand language, that contains, at a minimum, the date of the scheduled
disconnection, the amount due, and a summary of rights and responsibilities.

Subd. 5.

Cold weather rule.

(a) During the cold weather period, a utility may not
disconnect and must reconnect utility heating service of a customer whose household
income is at or below 50 percent of the state median income if the customer enters into
and makes reasonably timely payments under a mutually acceptable payment agreement
with the utility that is based on the financial resources and circumstances of the household;
provided that, a utility may not require a customer to pay more than ten percent of the
household income toward current and past utility bills for utility heating service.

(b) A utility may accept more than ten percent of the household income as the
payment arrangement amount if agreed to by the customer.

(c) The customer or a designated third party may request a modification of the terms
of a payment agreement previously entered into if the customer's financial circumstances
have changed or the customer is unable to make reasonably timely payments.

(d) The payment agreement terminates at the expiration of the cold weather period
unless a longer period is mutually agreed to by the customer and the utility.

Subd. 6.

Verification of income.

(a) In verifying a customer's household income,
a utility may:

(1) accept the signed statement of a customer that the customer is income eligible;

(2) obtain income verification from a local energy assistance provider or a
government agency;

(3) consider one or more of the following:

(i) the most recent income tax return filed by members of the customer's household;

(ii) for each employed member of the customer's household, paycheck stubs for the
last two months or a written statement from the employer reporting wages earned during
the preceding two months;

(iii) documentation that the customer receives a pension from the Department of
Human Services, the Social Security Administration, the Veteran's Administration, or
other pension provider;

(iv) a letter showing the customer's dismissal from a job or other documentation of
unemployment; or

(v) other documentation that supports the customer's declaration of income
eligibility.

(b) A customer who receives energy assistance benefits under any federal, state,
or county government programs in which eligibility is defined as household income at
or below 50 percent of state median income is deemed to be automatically eligible for
protection under this section and no other verification of income may be required.

Subd. 7.

Prohibitions and requirements.

(a) This subdivision applies during
the cold weather period.

(b) A utility may not charge a deposit or delinquency charge to a customer who has
entered into a payment agreement or a customer who has appealed to the commission
under subdivision 8.

(c) A utility may not disconnect service during the following periods:

(1) during the pendency of any appeal under subdivision 8;

(2) earlier than ten working days after a utility has deposited in first class mail,
or seven working days after a utility has personally served, the notice required under
subdivision 4 to a customer in an occupied dwelling;

(3) earlier than ten working days after the utility has deposited in first class mail
the notice required under subdivision 4 to the recorded billing address of the customer,
if the utility has reasonably determined from an on-site inspection that the dwelling
is unoccupied;

(4) on a Friday, unless the utility makes personal contact with, and offers a payment
agreement consistent with this section to the customer;

(5) on a Saturday, Sunday, holiday, or the day before a holiday;

(6) when utility offices are closed;

(7) when no utility personnel are available to resolve disputes, enter into payment
agreements, accept payments, and reconnect service; or

(8) when commission offices are closed.

(d) A utility may not discontinue service until the utility investigates whether the
dwelling is actually occupied. At a minimum, the investigation must include one visit
by the utility to the dwelling during normal working hours. If no contact is made and
there is reason to believe that the dwelling is occupied, the utility must attempt a second
contact during nonbusiness hours. If personal contact is made, the utility representative
must provide notice required under subdivision 4 and, if the utility representative is not
authorized to enter into a payment agreement, the telephone number the customer can call
to establish a payment agreement.

(e) Each utility must reconnect utility service if, following disconnection, the
dwelling is found to be occupied and the customer agrees to enter into a payment
agreement or appeals to the commission because the customer and the utility are unable to
agree on a payment agreement.

Subd. 8.

Disputes; customer appeals.

(a) A utility must provide the customer
and any designated third party with a commission-approved written notice of the right
to appeal:

(1) a utility determination that the customer's household income is more than 50
percent of state median household income; or

(2) when the utility and customer are unable to agree on the establishment or
modification of a payment agreement.

(b) A customer's appeal must be filed with the commission no later than seven
working days after the customer's receipt of a personally served appeal notice, or within
ten working days after the utility has deposited a first class mail appeal notice.

(c) The commission must determine all customer appeals on an informal basis,
within 20 working days of receipt of a customer's written appeal. In making its
determination, the commission must consider one or more of the factors in subdivision 6.

(d) Notwithstanding any other law, following an appeals decision adverse to the
customer, a utility may not disconnect utility heating service for seven working days
after the utility has personally served a disconnection notice, or for ten working days
after the utility has deposited a first class mail notice. The notice must contain, in
easy-to-understand language, the date on or after which disconnection will occur, the
reason for disconnection, and ways to avoid disconnection.

Subd. 8a.

Cooperative and municipal disputes.

Complaints in connection with
utility heating service during the cold weather period filed against a municipal or a
cooperative electric association with the commission under section 216B.17, subdivision 6
or 6a, are governed by section 216B.097.

Subd. 9.

Customers above 50 percent of state median income.

During the
cold weather period, a customer whose household income is above 50 percent of state
median income:

(1) has the right to a payment agreement that takes into consideration any
extenuating circumstances of the household; and

(2) may not be disconnected and must be reconnected if the customer makes timely
payments under a payment agreement accepted by a utility.

Subdivision 7, paragraph (b), does not apply to customers whose household income is
above 50 percent of state median income.

Subd. 10.

Reporting.

Annually on November 1, a utility must electronically file
with the commission a report, in a format specified by the commission, specifying the
number of utility heating service customers whose service is disconnected or remains
disconnected for nonpayment as of October 1 and October 15. If customers remain
disconnected on October 15, a utility must file a report each week between November 1
and the end of the cold weather period specifying:

(1) the number of utility heating service customers that are or remain disconnected
from service for nonpayment; and

(2) the number of utility heating service customers that are reconnected to service
each week. The utility may discontinue weekly reporting if the number of utility heating
service customers that are or remain disconnected reaches zero before the end of the
cold weather period.

The data reported under this subdivision are presumed to be accurate upon submission and
must be made available through the commission's electronic filing system.

Sec. 14.

Minnesota Statutes 2006, section 216B.097, subdivision 1, is amended to read:

Subdivision 1.

Application; notice to residential customer.

(a) A municipal utility
or a cooperative electric association must not disconnect and must reconnect the utility
service of a residential customer during the period between October 15 and April 15 if
the disconnection affects the primary heat source for the residential unit when and all of
the following conditions are met:

(1) the customer has declared inability to pay on forms provided by the utility. For
the purposes of this clause, a customer that is receiving energy assistance is deemed
to have demonstrated an inability to pay;

(2) The household income of the customer is less than at or below 50 percent of the
state median household income;. A municipal utility or cooperative electric association
utility may (i) verify income on forms it provides or (ii) obtain

(3) verification of income may be conducted by from the local energy assistance
provider or the utility, unless the. A customer is automatically eligible for protection
against disconnection as a recipient of deemed to meet the income requirements of this
clause if the customer receives any form of public assistance, including energy assistance,
that uses an income eligibility in an amount threshold set at or below the income eligibility
in clause (2) 50 percent of the state median household income;

(4) (2) A customer whose account is current for the billing period immediately prior
to October 15 or who, at any time, enters into and makes reasonably timely payments
under a payment schedule agreement that considers the financial resources of the
household and is reasonably current with payments under the schedule; and

(5) the (3) A customer receives referrals to energy assistance programs,
weatherization, conservation, or other programs likely to reduce the customer's energy
bills.

(b) A municipal utility or a cooperative electric association must, between August
15 and October 15 of each year, notify all residential customers of the provisions of this
section.

Sec. 15.

Minnesota Statutes 2006, section 216B.097, subdivision 3, is amended to read:

Subd. 3.

Restrictions if disconnection necessary.

(a) If a residential customer must
be involuntarily disconnected between October 15 and April 15 for failure to comply with
the provisions of subdivision 1, the disconnection must not occur:

(1) on a Friday or on the day before a holiday, unless the customer declines to enter
into a payment agreement offered that day in person or via personal contact by telephone
by a municipal utility or cooperative electric association;

(2) on a weekend, holiday, or the day before a holiday;

(3) when utility offices are closed; or

(4) after the close of business on a day when disconnection is permitted, unless
a field representative of a municipal utility or cooperative electric association who is
authorized to enter into a payment agreement, accept payment, and continue service,
offers a payment agreement to the customer.

Further, the disconnection must not occur until at least 20 days after the notice required
in subdivision 2 has been mailed to the customer or 15 days after the notice has been
personally delivered to the customer.

(b) If a customer does not respond to a disconnection notice, the customer must
not be disconnected until the utility investigates whether the residential unit is actually
occupied. If the unit is found to be occupied, the utility must immediately inform the
occupant of the provisions of this section. If the unit is unoccupied, the utility must give
seven days' written notice of the proposed disconnection to the local energy assistance
provider before making a disconnection.

(c) If, prior to disconnection, a customer appeals a notice of involuntary
disconnection, as provided by the utility's established appeal procedure, the utility must
not disconnect until the appeal is resolved.

Sec. 16.

Minnesota Statutes 2006, section 216B.098, subdivision 4, is amended to read:

Subd. 4.

Undercharges.

(a) A utility shall offer a payment agreement to customers
who have been undercharged if no culpable conduct by the customer or resident of
the customer's household caused the undercharge. The agreement must cover a period
equal to the time over which the undercharge occurred or a different time period that is
mutually agreeable to the customer and the utility, except that the duration of a payment
agreement offered by a utility to a customer whose household income is at or below 50
percent of state median household income must consider the financial circumstances of
the customer's household.

(b) No interest or delinquency fee may be charged under this as part of an
undercharge agreement under this subdivision.

(c) If a customer inquiry or complaint results in the utility's discovery of the
undercharge, the utility may bill for undercharges incurred after the date of the inquiry
or complaint only if the utility began investigating the inquiry or complaint within a
reasonable time after when it was made.

Sec. 17.

Minnesota Statutes 2006, section 216B.812, subdivision 1, is amended to read:

Subdivision 1.

Early purchase and deployment of renewable hydrogen, fuel
cells, and related technologies by the state.

(a) The Department of Commerce, in
conjunction coordination with the Department of Administration and the Pollution Control
Agency, shall identify opportunities for demonstrating the use of deploying renewable
hydrogen, fuel cells, and related technologies within state-owned facilities, vehicle fleets,
and operations in ways that demonstrate their commercial performance and economics.

(b) The Department of Commerce shall recommend to the Department of
Administration, when feasible, the purchase and demonstration deployment of hydrogen,
fuel cells, and related technologies, when feasible, in ways that strategically contribute
to realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109, and
which contribute to the following nonexclusive list of objectives:

(1) provide needed performance data to the marketplace;

(2) identify code and regulatory issues to be resolved;

(3) foster economic development and job creation in the state;

(4) raise public awareness of renewable hydrogen, fuel cells, and related
technologies; or

(5) reduce emissions of carbon dioxide and other pollutants.

(c) The Department of Commerce and the Pollution Control Agency shall also
recommend to the Department of Administration changes to the state's procurement
guidelines and contracts in order to facilitate the purchase and deployment of cost-effective
renewable hydrogen, fuel cells, and related technologies by all levels of government.

Sec. 18.

Minnesota Statutes 2006, section 216B.16, subdivision 10, is amended to read:

Subd. 10.

Intervenor payment compensation.

(a) A nonprofit organization or
an individual granted formal intervenor status by the commission is eligible to receive
compensation.

(b) The commission may order a utility to pay all or a portion of a party's intervention
compensate all or part of an eligible intervenor's reasonable costs not to exceed $20,000
per intervenor in any proceeding of participation in a general rate case that comes before
the commission when the commission finds that the intervenor has materially assisted
the commission's deliberation and the intervenor has insufficient financial resources to
afford the costs of intervention and when a lack of compensation would present financial
hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor
in any proceeding. For the purpose of this subdivision, "materially assisted" means that
the intervenor's participation and presentation was useful and seriously considered, or
otherwise substantially contributed to the commission's deliberations in the proceeding.

(c) In determining whether an intervenor has materially assisted the commission's
deliberation, the commission must consider, among other factors, whether:

(1) the intervenor represented an interest that would not otherwise have been
adequately represented;

(2) the evidence or arguments presented or the positions taken by the intervenor
were an important factor in producing a fair decision;

(3) the intervenor's position promoted a public purpose or policy;

(4) the evidence presented, arguments made, issues raised, or positions taken by the
intervenor would not have been a part of the record without the intervenor's participation;
and

(5) the administrative law judge or the commission adopted, in whole or in part, a
position advocated by the intervenor.

(d) In determining whether the absence of compensation would present financial
hardship to the intervenor, the commission must consider:

(1) whether the costs presented in the intervenor's claim reflect reasonable fees for
attorneys and expert witnesses and other reasonable costs; and

(2) the ratio between the costs of intervention and the intervenor's unrestricted funds.

(e) An intervenor seeking compensation must file a request and an affidavit of service
with the commission, and serve a copy of the request on each party to the proceeding.
The request must be filed 30 days after the later of (1) the expiration of the period within
which a petition for rehearing, amendment, vacation, reconsideration, or reargument must
be filed or (2) the date the commission issues an order following rehearing, amendment,
vacation, reconsideration, or reargument.

(f) The compensation request must include:

(1) the name and address of the intervenor or representative of the nonprofit
organization the intervenor is representing;

(2) proof of the organization's nonprofit, tax-exempt status;

(3) the name and docket number of the proceeding for which compensation is
requested;

(4) a list of actual annual revenues and expenses of the organization the intervenor is
representing for the preceding year and projected revenues, revenue sources, and expenses
for the current year;

(5) the organization's balance sheet for the preceding year and a current monthly
balance sheet;

(6) an itemization of intervenor costs and the total compensation request; and

(7) a narrative explaining why additional organizational funds cannot be devoted
to the intervention.

(g) Within 30 days after service of the request for compensation, a party may file
a response, together with an affidavit of service, with the commission. A copy of the
response must be served on the intervenor and all other parties to the proceeding.

(h) Within 15 days after the response is filed, the intervenor may file a reply with
the commission. A copy of the reply and an affidavit of service must be served on all
other parties to the proceeding.

(i) If additional costs are incurred as a result of additional proceedings following
the commission's initial order, the intervenor may file an amended request within 30
days after the commission issues an amended order. Paragraphs (e) to (h) apply to an
amended request.

(j) The commission must issue a decision on intervenor compensation within 60
days of a filing by an intervenor.

(k) A party may request reconsideration of the commission's compensation decision
within 30 days of the decision.

(l) If the commission issues an order requiring payment of intervenor compensation,
the utility that was the subject of the proceeding must pay the compensation to the
intervenor, and file with the commission proof of payment, within 30 days after the later
of (1) the expiration of the period within which a petition for reconsideration of the
commission's compensation decision must be filed or (2) the date the commission issues
an order following reconsideration of its order on intervenor compensation.

Sec. 19.

Minnesota Statutes 2006, section 216B.16, subdivision 15, is amended to read:

Subd. 15.

Low-income affordability programs.

(a) The commission may must
consider ability to pay as a factor in setting utility rates and may establish affordability
programs for low-income residential ratepayers in order to ensure affordable, reliable, and
continuous service to low-income utility customers. By September 1, 2007, a public
utility serving low-income residential ratepayers who use natural gas for heating must
file an affordability program with the commission. For purposes of this subdivision,
"low-income residential ratepayers" means ratepayers who receive energy assistance from
the low-income home energy assistance program (LIHEAP).

(b) The purpose of the low-income programs is to Any affordability program the
commission orders a utility to implement must:

(1) lower the percentage of income that participating low-income households devote
to energy bills, to;

(2) increase participating customer payments, and to over time by increasing the
frequency of payments;

(3) decrease or eliminate participating customer arrears;

(4) lower the utility costs associated with customer account collection activities; and

(5) coordinate the program with other available low-income bill payment assistance
and conservation resources.

In ordering low-income affordability programs, the commission may require public
utilities to file program evaluations, including the coordination of other available
low-income bill payment and conservation resources and that measure the effect of the
affordability program on:

(1) reducing the percentage of income that participating households devote to energy
bills;

(2) service disconnections; and

(3) frequency of customer payment behavior payments, utility collection costs,
arrearages, and bad debt.

(c) The commission must issue orders necessary to implement, administer, and
evaluate affordability programs, and to allow a utility to recover program costs, including
administrative costs, on a timely basis. The commission may not allow a utility to recover
administrative costs, excluding start-up costs, in excess of five percent of total program
costs, or program evaluation costs in excess of two percent of total program costs. The
commission must permit deferred accounting, with carrying costs, for recovery of program
costs incurred during the period between general rate cases.

(d) Public utilities may use information collected or created for the purpose of
administering energy assistance to administer affordability programs.

Sec. 20.

[216B.1637] RECOVERY OF CERTAIN LIMITED UTILITY
GREENHOUSE GAS INFRASTRUCTURE COSTS.

A public utility that owns a nuclear power plant and a public utility furnishing gas
service may file for recovery of investments and expenses associated with the replacement
of cast iron natural gas distribution and service lines owned by the utility and to replace
breakers that contain sodium hexafluoride in order to reduce the risk of greenhouse gases
being released into the atmosphere. Upon a finding that the projects are consistent with
the public interest and do not impose excessive costs on customers, the commission shall
provide timely recovery of the utility's investment and expenses on any approved projects
through a rate adjustment mechanism similar to that provided for transmission projects
under section 216B.16, subdivision 7b, paragraphs (b) to (d).

Sec. 21.

Minnesota Statutes 2006, section 216B.241, subdivision 6, is amended to read:

Subd. 6.

Renewable energy research.

(a) A public utility that owns a nuclear
generation facility in the state shall spend five percent of the total amount that utility
is required to spend under this section to support basic and applied research and
demonstration activities at the University of Minnesota Initiative for Renewable Energy
and the Environment for the development of renewable energy sources and technologies.
The utility shall transfer the required amount to the University of Minnesota on or before
July 1 of each year and that annual amount shall be deducted from the amount of money the
utility is required to spend under this section. The University of Minnesota shall transfer
at least ten percent of these funds to at least one rural campus or experiment station.

(b) Research Activities funded under this subdivision shall may include, but are
not limited to:

(1) development of environmentally sound production, distribution, and use of
energy, chemicals, and materials from renewable sources;

(2) processing and utilization of agricultural and forestry plant products and other
bio-based, renewable sources as a substitute for fossil-fuel-based energy, chemicals, and
materials using a variety of means including biocatalysis, biorefining, and fermentation;

(3) conversion of state wind resources to hydrogen for energy storage and
transportation to areas of energy demand;

(4) improvements in scalable hydrogen fuel cell technologies; and

(5) production of hydrogen from bio-based, renewable sources; and sequestration
of carbon.

(1) environmentally sound production of energy from a renewable energy source
including biomass;

(2) environmentally sound production of hydrogen from biomass and any other
renewable energy source for energy storage and energy utilization;

(3) development of energy conservation and efficient energy utilization technologies;

(4) energy storage technologies; and

(5) analysis of policy options to facilitate adoption of technologies that use or
produce low-carbon renewable energy.

(c) Notwithstanding other law to the contrary, the utility may, but is not required to,
spend more than two percent of its gross operating revenues from service provided in this
state under this section or section 216B.2411.

(d) For the purposes of this subdivision:

(1) "renewable energy source: means hydro, wind, solar, biomass and geothermal
energy, and microorganisms used as an energy source; and

(2) "biomass" means plant and animal material, agricultural and forest residues,
mixed municipal solid waste, and sludge from wastewater treatment.

(e) This subdivision expires June 30, 2008 2010.

Sec. 22.

Minnesota Statutes 2006, section 216B.812, subdivision 2, is amended to read:

Subd. 2.

Pilot projects.

(a) In consultation with appropriate representatives from
state agencies, local governments, universities, businesses, and other interested parties,
the Department of Commerce shall report back to the legislature by November 1, 2005,
and every two years thereafter, with a slate of proposed pilot projects that contribute to
realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109. The
Department of Commerce must consider the following nonexclusive list of priorities in
developing the proposed slate of pilot projects:

(1) demonstrate deploy "bridge" technologies such as hybrid-electric, off-road, and
fleet vehicles running on hydrogen or fuels blended with hydrogen;

(2) develop lead to cost-competitive, on-site renewable hydrogen production
technologies;

(3) demonstrate nonvehicle applications for hydrogen;

(4) improve the cost and efficiency of hydrogen from renewable energy sources; and

(5) improve the cost and efficiency of hydrogen production using direct solar energy
without electricity generation as an intermediate step.

(b) For all demonstrations deployment projects that do not involve a demonstration
component, individual system components of the technology must should, if feasible, meet
commercial performance standards and systems modeling must be completed to predict
commercial performance, risk, and synergies. In addition, the proposed pilots should meet
as many of the following criteria as possible:

(1) advance energy security;

(2) capitalize on the state's native resources;

(3) result in economically competitive infrastructure being put in place;

(4) be located where it will link well with existing and related projects and be
accessible to the public, now or in the future;

(5) demonstrate multiple, integrated aspects of renewable hydrogen infrastructure;

(6) include an explicit public education and awareness component;

(7) be scalable to respond to changing circumstances and market demands;

(8) draw on firms and expertise within the state where possible;

(9) include an assessment of its economic, environmental, and social impact; and

(10) serve other needs beyond hydrogen development.

Sec. 23.

[216B.813] MINNESOTA RENEWABLE HYDROGEN INITIATIVE.

Subdivision 1.

Road map.

The Department of Commerce shall coordinate and
administer directly or by contract the Minnesota renewable hydrogen initiative. If the
department decides to contract for its duties under this section, it must contract with a
nonpartisan, nonprofit organization within the state to develop the road map. The initiative
may be run as a public-private partnership representing business, academic, governmental,
and nongovernmental organizations. The initiative must oversee the development and
implementation of a renewable hydrogen road map, including appropriate technology
deployments, that achieve the hydrogen goal of section 216B.013. The road map should
be compatible with the United States Department of Energy's National Hydrogen Energy
Roadmap and be based on an assessment of marketplace economics and the state's
opportunities in hydrogen, fuel cells, and related technologies, so as to capitalize on
strengths. The road map should establish a vision, goals, general timeline, strategies for
working with industry, and measurable milestones for achieving the state's renewable
hydrogen goal. The road map should describe how renewable hydrogen and fuel cells fit
in Minnesota's overall energy system, and should help foster a consistent, predictable, and
prudent investment environment. The department must report to the legislature on the
progress in implementing the road map by November 1 of each odd-numbered year.

Subd. 2.

Grants.

(a) The commissioner of commerce shall operate a competitive
grant program for projects to assist the state in attaining its renewable hydrogen energy
goals. The commissioner of commerce shall assemble an advisory committee made up of
industry, university, government, and nongovernment organizations to:

(1) help identify the most promising technology deployment projects for public
investment;

(2) advise on the technical specifications for those projects; and

(3) make recommendations on project grants.

(b) The commissioner shall give preference to project concepts included in the
department's most recent biennial report: Strategic Demonstration Projects to Accelerate
the Commercialization of Renewable Hydrogen and Related Technologies in Minnesota.
Projects eligible for funding must combine one or more of the hydrogen production
options listed in the department's report with an end use that has significant commercial
potential, preferably high visibility, and relies on fuel cells or related technologies. Each
funded technology deployment must include an explicit education and awareness-raising
component, be compatible with the renewable hydrogen deployment criteria defined in
section 216B.812, and receive 50 percent of its total cost from nonstate sources. The 50
percent requirement does not apply for recipients that are public institutions.

Sec. 24.

Minnesota Statutes 2006, section 216C.051, subdivision 2, is amended to read:

Subd. 2.

Establishment.

(a) There is established a Legislative Electric Energy Task
Force to study future electric energy sources and costs and to make recommendations
for legislation for an environmentally and economically sustainable and advantageous
electric energy supply.

(b) The task force consists of:

(1) ten members of the house of representatives including the chairs of the
Environment and Natural Resources Committee and Regulated Industries Subcommittee
the Energy Finance and Policy Division and eight members to be appointed by the speaker
of the house, four of whom must be from the minority caucus; and

(2) ten members of the senate including the chairs of the Environment, Energy and
Natural Resources Budget Division and Jobs, Energy, and Community Development
Utilities, Technology and Communications committees and eight members to be appointed
by the Subcommittee on Committees, four of whom must be from the minority caucus.

(c) The task force may employ staff, contract for consulting services, and may
reimburse the expenses of persons requested to assist it in its duties other than state
employees or employees of electric utilities. The director of the Legislative Coordinating
Commission shall assist the task force in administrative matters. The task force shall
elect cochairs, one member of the house and one member of the senate from among the
committee and subcommittee chairs named to the committee. The task force members
from the house shall elect the house cochair, and the task force members from the senate
shall elect the senate cochair.

Sec. 25.

Minnesota Statutes 2006, section 216C.051, subdivision 9, is amended to read:

Subd. 9.

Expiration.

This section is repealed June 30, 2007 2010.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 26.

Minnesota Statutes 2006, section 216C.052, is amended by adding a
subdivision to read:

Subd. 8a.

Manitoba Hydro information.

By January 1, 2008, and each year
thereafter, the task force shall request the Manitoba Hydro-Electric Board to provide
the following information for each community that is a signatory to the Northern Flood
Agreement, including South Indian Lake:

(1) median household income and number of residents employed full time and
part time;

(2) the number of outstanding claims filed against Manitoba Hydro by individuals
and communities and the number of claims settled by Manitoba Hydro; and

(3) the amount of shoreline damaged by flooding and erosion and the amount of
shoreline restored and cleaned.

For the purposes of this subdivision, "Northern Flood Agreement" means the
agreement entered into by the Northern Flood Committee, Incorporated, the Manitoba
Hydro-Electric Board, the province of Manitoba, and the government of Canada on
December 16, 1977.

Sec. 27.

[216C.385] CLEAN ENERGY RESOURCE TEAMS.

Subdivision 1.

Findings.

The legislature finds that community-based energy
programs are an effective means of implementing improved energy practices including
conservation, greater efficiency in energy use, and the production and use of renewable
resources such as wind, solar, biomass, and biofuels. Further, community-based energy
programs are found to be a public purpose for which public money may be spent.

Subd. 2.

Mission, organization, and membership.

The clean energy resource
teams (CERT's) project is an innovative state, university, and nonprofit partnership that
serves as a catalyst for community energy planning and projects. The mission of CERT's
is to give citizens a voice in the energy planning process by connecting them with the
necessary technical resources to identify and implement community-scale renewable
energy and energy efficiency projects. In 2003, the Department of Commerce designated
the CERT's project as a statewide collaborative venture and recognized six regional teams
based on their geography: Central, Northeast, Northwest, Southeast, Southwest, and
West-Central. Membership of CERT's may include but is not limited to representatives
of utilities; federal, state, and local governments; small business; labor; senior citizens;
academia; and other interested parties. The Department of Commerce may certify
additional clean energy resource teams by regional geography, including teams in the Twin
Cities metropolitan area.

Subd. 3.

Powers and duties.

In order to develop and implement community-based
energy programs, a clean energy resource team may:

(1) analyze social and economic impacts caused by energy expenditures;

(2) analyze regional renewable and energy efficiency resources and opportunities;

(3) link community members and community energy projects to the knowledge
and capabilities of the University of Minnesota, the State Energy Office, nonprofit
organizations, and regional community members, among others;

(4) plan, set priorities for, provide technical assistance to, and catalyze local energy
efficiency and renewable energy projects that help to meet state energy policy goals and
maximize local economic development opportunities;

(5) provide a broad-based resource and communications network that links local,
county, and regional energy efficiency and renewable energy project efforts around the
state (both interregional and intraregional);

(6) seek, accept, and disburse grants and other aids from public or private sources
for purposes authorized in this subdivision;

(7) provides a convening and networking function within CERT's regions to facilitate
education, knowledge formation, and project replication; and

(8) exercise other powers and duties imposed on it by statute, charter, or ordinance.

Subd. 4.

Department assistance.

The commissioner, via the clean energy resource
teams, may provide professional, technical, organizational, and financial assistance to
regions and communities to develop and implement community energy programs and
projects, within available resources.

Sec. 28.

[216C.39] RURAL WIND ENERGY DEVELOPMENT REVOLVING
LOAN FUND.

Subdivision 1.

Establishment.

A rural wind energy development revolving loan
fund is established as an account in the special revenue fund in the state treasury. The
commissioner of finance shall credit to the account the amounts authorized under this
section and appropriations and transfers to the account. Earnings, such as interest,
dividends, and any other earnings arising from fund assets, must be credited to the account.

Subd. 2.

Purpose.

The rural wind energy development revolving loan fund
is created to provide financial assistance, through partnership with local owners and
communities, in developing community wind energy projects that meet the specifications
of section 216B.1612, subdivision 2, paragraph (f).

Subd. 3.

Expenditures.

Money in the fund is appropriated to the commissioner
of commerce, and may be used to make loans to qualifying owners of wind energy
projects, as defined in section 216B.1612, subdivision 2, paragraph (f), to assist in funding
wind studies and transmission interconnection studies. The loans must be structured
for repayment within 30 days after the project begins commercial operations or two
years from the date the loan is issued, whichever is sooner. The commissioner may pay
reasonable and actual costs of administering the loan program, not to exceed interest
earned on fund assets.

Subd. 4.

Limitations.

A loan may not be approved for an amount exceeding
$100,000. This limit applies to all money loaned to a single project or single entity,
whether paid to one or more qualifying owners and whether paid in one or more fiscal
years.

Subd. 5.

Administration; eligible projects.

(a) Applications for a loan under
this section must be made in a manner and on forms prescribed by the commissioner.
Loans to eligible projects must be made in the order in which complete applications are
received by the commissioner. Loan funds must be disbursed to an applicant within ten
days of submission of a payment request by the applicant that demonstrates a payment
due to the Midwest Independent System Operator. Interest payable on the loan amount
may not exceed 1.5 percent per annum.

(b) A project is eligible for a loan under this program if:

(1) the project has completed an adequate interconnection feasibility study that
indicates the project may be interconnected with system upgrades of less than ten percent
of the estimated project costs;

(2) the project has a signed power purchase agreement with an electric utility or
provides evidence that the project is under serious consideration for such an agreement by
an electric utility;

(3) the ownership and structure of the project allows it to qualify as a
community-based energy development (C-BED) project under section 216B.1612, and the
developer commits to obtaining and maintaining C-BED status; and

(4) the commissioner has determined that sufficient funds are available to make a
loan to the project.

Sec. 29.

Minnesota Statutes 2006, section 216C.41, subdivision 3, is amended to read:

Subd. 3.

Eligibility window.

Payments may be made under this section only for:

(a) electricity generated from:

(1) from a qualified hydroelectric facility that is operational and generating
electricity before December 31, 2009;

(2) from a qualified wind energy conversion facility that is operational and
generating electricity before January 1, 2008; or

(3) from a qualified on-farm biogas recovery facility from July 1, 2001, through
December 31, 2017; and

(b) gas generated from a qualified on-farm biogas recovery facility from July 1,
2007, through December 31, 2017.

Sec. 30. PETROLEUM VIOLATION ESCROW FUNDS.

(a) Petroleum violation escrow funds appropriated to the commissioner of commerce
by Laws 1988, chapter 686, article 1, section 38, for state energy loan programs for
schools, hospitals, and public buildings must be used for grants to kindergarten through
grade 12 schools to develop energy conservation or renewable energy projects. A grant
may not exceed $500,000. The commissioner must endeavor to award grants throughout
the regions of the state. No more than one grant may be awarded in a county, unless an
insufficient number of applications is received from schools located in other counties to
exhaust available funds.

(b) The commissioner of commerce must petition the federal Department of Energy
for a waiver from any federal regulation that limits the proportion of federal funds
expended on state energy programs that may be spent on energy efficiency.

(c) For purposes of this subdivision, "renewable energy" means wind, solar,
hydroelectric with a capacity of less than 60 megawatts, geothermal, hydrogen, fuel cells
made from renewable resources, herbaceous crops, agricultural crops, agricultural waste,
and aquatic plant matter.

EFFECTIVE DATE.

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

Sec. 31. UNIFORM CODES AND STANDARDS FOR HYDROGEN, FUEL
CELLS, AND RELATED TECHNOLOGIES; RECOMMENDATIONS AND
REPORT.

(a) The commissioner of labor and industry, in consultation with the Department of
Commerce and other relevant public and private interests, shall develop recommendations
regarding the adoption of uniform codes and standards for hydrogen infrastructure, fuel
cells, and related technologies, and report those recommendations to the legislature by
December 31, 2008.

(b) The goal of the recommendations is to have all regulatory jurisdictions in the
state have the same safety standards with regard to the production, storage, transportation,
distribution, and use of hydrogen, fuel cells, and related technologies. The commissioner's
recommendations must, without limitation, include:

(1) codes and standards that already exist for hydrogen, fuel cells, and related
technologies, and how the state should formalize their use;

(2) codes and standards still under development by various official standard-making
bodies;

(3) gaps between existing codes and standards, those under development, and those
that may still be needed but are not yet being developed;

(4) the need for, and estimated cost of, additional education and training for
emergency management and code officials;

(5) any changes needed to environmental and other permitting processes to
accommodate the commercialization of hydrogen, fuel cells, and related technologies; and

(6) recommendations on appropriate codes and standards for educational and
research institutions.

Sec. 32. HYDROGEN REFUELING STATION GRANTS.

In addition to the purposes specified in Laws 2005, chapter 97, article 13, section
4, for which the commissioner of commerce may make grants, the commissioner may
make grants under that law for the purpose of developing, deploying, and encouraging
commercially promising renewable hydrogen production systems and hydrogen end
uses in partnership with industry. The authority of the commissioner to make grants
and assessments under Laws 2005, chapter 97, article 13, section 4, continues until the
authorized grants and assessments are made.

Sec. 33. OFF-SITE RENEWABLE DISTRIBUTED GENERATION.

The commissioner of commerce shall convene a broad group of interested
stakeholders to evaluate the feasibility and potential for the interconnection and parallel
operation of off-site renewable distributed generation in a manner consistent with
Minnesota Statutes, sections 216B.37 to 216B.43, and shall issue recommendations to
the chairs of the house of representatives and senate committees with jurisdiction over
energy issues by February 1, 2008.

Sec. 34. DEFINITIONS.

For purposes of sections 32 to 34, the following definitions apply:

(1) "terrestrial carbon sequestration" means the long-term storage of carbon in soil
and vegetation to prevent its collection in the atmosphere as carbon dioxide; and

(2) "geologic carbon sequestration" means injecting carbon dioxide into underground
geologic formations where it can be stored for long periods of time to prevent its escape
to the atmosphere.

Sec. 35. TERRESTRIAL CARBON SEQUESTRATION ACTIVITIES.

Subdivision 1.

Study; scope.

The Board of Regents of the University of Minnesota
is requested to conduct a study assessing the potential capacity for carbon sequestration in
Minnesota's terrestrial systems. The study must:

(1) conduct a statewide inventory and construct a database of lands across several
land types, such as forests, agricultural lands, peatlands, and wetlands, that have the
potential to sequester significant quantities of carbon and of lands that currently contain
large stocks of carbon that are at risk of being emitted to the atmosphere as a result of
changes in land use and climate;

(2) quantify the ability of various land use practices, such as the growth of different
species of crops, grasses, and trees, to sequester carbon and their impacts on other
ecological services of value, including air and water quality, biodiversity, and wildlife
habitat;

(3) identify a network of benchmark monitoring sites to measure the impact of
long-term, large-scale factors, such as changes in climate, carbon dioxide levels, and land
use, on the terrestrial carbon sequestration capacity of various land types, to improve
understanding of carbon-terrestrial interactions and dynamics;

(4) identify long-term demonstration projects to measure the impact of deliberate
sequestration practices, including the establishment of biofuel production systems, on
forest, agricultural, wetland, and prairie ecosystems; and

(5) evaluate current state policies and programs that affect the levels of terrestrial
sequestration on public and private lands and identify gaps and recommend policy changes
to increase sequestration rates.

Subd. 2.

Coordination of terrestrial carbon sequestration activities.

Planning
and implementation of the study described in subdivision 1 will be coordinated by
the Minnesota Terrestrial Carbon Sequestration Initiative, a task force consisting of
representatives from the University of Minnesota, the Department of Agriculture, the
Board of Water and Soil Resources, the Department of Commerce, the Department
of Natural Resources, and the Pollution Control Agency and agricultural, forestry,
conservation, and business stakeholders.

Subd. 3.

Contracting.

The University of Minnesota may contract with another
party to perform any of the tasks listed in subdivision 1.

Subd. 4.

Report.

The commissioner of natural resources must submit a report
with the results of the study to the senate and house committees with jurisdiction over
environmental and energy policies no later than February 1, 2008.

Sec. 36. GEOLOGIC CARBON SEQUESTRATION ASSESSMENT.

Subdivision 1.

Study; scope.

(a) The Minnesota Geological Survey shall conduct
a study assessing the potential capacity for geologic carbon sequestration in the
Midcontinent Rift system in Minnesota. The study must assess the potential of porous
and permeable sandstone layers deeper than one kilometer below the surface that are
capped by less permeable shale and must identify potential risks to carbon storage, such
as areas of low permeability in injection zones, low storage capacity, and potential seal
failure. The study must identify the most promising formations and geographic areas for
physical analysis of carbon sequestration potential. The study must review geologic
maps, published reports and surveys, and any relevant unpublished raw data with respect
to attributes that are pertinent for the long-term sequestration of carbon in geologic
formations, in particular, those that bear on formation injectivity, capacity, and seal
effectiveness. The study must examine the following characteristics of key sedimentary
units within the Midcontinent Rift system in Minnesota:

(1) likely depth, temperature, and pressure;

(2) physical properties, including the ability to contain and transmit fluids;

(3) the type of rocks present;

(4) structure and geometry, including folds and faults; and

(5) hydrogeology, including water chemistry and water flow.

(b) The commissioner of natural resources, in consultation with the Minnesota
Geological Survey, shall contract for a study to estimate the properties of the Midcontinent
Rift system in Minnesota, as described in paragraph (a), clauses (1) to (5), through the
use of computer models developed for similar geologic formations located outside of
Minnesota which have been studied in greater detail.

Subd. 2.

Consultation.

The Minnesota Geological Survey shall consult with the
Minnesota Mineral Coordinating Committee, established in Minnesota Statutes, section
93.0015, in planning and implementing the study design.

Subd. 3.

Report.

The commissioner of natural resources must submit a report
with the results of the study to the senate and house committees with jurisdiction over
environmental and energy policies no later than February 1, 2008.

Sec. 37. ST. PAUL PORT AUTHORITY.

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

Sec. 38. BIOFUEL PERMITTING REPORT.

By January 15, 2008, the Pollution Control Agency, the commissioner of natural
resources, and the Environmental Quality Board shall report to the house of representatives
and senate committees and divisions with jurisdiction over agriculture and environment
policy and budget on the process to issue permits for biofuel production facilities. The
report shall include:

(1) information on the timing of the permits and measures taken to improve the
timing of the permitting process;

(2) recommended changes to statutes, rules, procedures, or fees to improve the
biofuel facility permitting process and reduce the groundwater needed for production; and

(3) other information or analysis that may be helpful in understanding or improving
the biofuel production facility permitting process.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 39. WINONA COUNTY; ELECTRIC POWER PLANT.

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

EFFECTIVE DATE.

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

Sec. 40. APPLICATION OF RULES.

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

Sec. 41. REVISOR'S INSTRUCTION.

The revisor of statutes must change the reference from "216B.095" to "216B.096"
wherever found in Minnesota Rules, chapter 7820.

Sec. 42. REPEALER.

(a) Minnesota Statutes 2006, section 216B.095, is repealed.

(b) Minnesota Rules, parts 7820.1500; 7820.1600; 7820.1700; 7820.1750;
7820.1800; 7820.1900; 7820.2000; 7820.2100; 7820.2150; 7820.2200; and 7820.2300,
are repealed.

Sec. 43. EFFECTIVE DATE.

Sections 13, 39, and 40 are effective September 1, 2008.

ARTICLE 3

COMMERCE

Section 1.

Minnesota Statutes 2006, section 13.712, is amended by adding a
subdivision to read:

Subd. 3.

Vehicle protection product warrantors.

Financial information provided
to the commissioner of commerce by vehicle protection product warrantors is classified
under section 59C.05, subdivision 3.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 2.

Minnesota Statutes 2006, section 45.011, subdivision 1, is amended to read:

Subdivision 1.

Scope.

As used in chapters 45 to 83, 155A, 332, 332A, 345, and
359, and sections 325D.30 to 325D.42, 326.83 to 326.991, and 386.61 to 386.78, unless
the context indicates otherwise, the terms defined in this section have the meanings given
them.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 3.

[45.24] LICENSE TECHNOLOGY FEES.

(a) The commissioner may establish and maintain an electronic licensing database
system for license origination, renewal, and tracking the completion of continuing
education requirements by individual licensees who have continuing education
requirements, and other related purposes.

(b) The commissioner shall pay for the cost of operating and maintaining the
electronic database system described in paragraph (a) through a technology surcharge
imposed upon the fee for license origination and renewal, for individual licenses that
require continuing education.

(c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year
licensing period, except as otherwise provided in paragraph (f), and shall be payable at the
time of license origination and renewal.

(d) The Commerce Department technology account is hereby created as an account
in the special revenue fund.

(e) The commissioner shall deposit the surcharge permitted under this section in
the account created in paragraph (d), and funds in the account are appropriated to the
commissioner in the amounts needed for purposes of this section.

(f) The commissioner shall temporarily reduce or suspend the surcharge as necessary
if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of
any calendar year and shall increase or decrease the surcharge as necessary to keep the
fund balance at an adequate level but not in excess of $2,000,000.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4.

Minnesota Statutes 2006, section 46.04, subdivision 1, is amended to read:

Subdivision 1.

General.

The commissioner of commerce, referred to in chapters
46 to 59A, and sections 332.12 to 332.29 chapter 332A, 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.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 5.

Minnesota Statutes 2006, section 46.05, is amended to read:

46.05 SUPERVISION OVER FINANCIAL INSTITUTIONS.

Every state bank, savings bank, trust company, savings association, debt
management 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.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 6.

Minnesota Statutes 2006, 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 prorating agency management services provider 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 of Commerce.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 7.

Minnesota Statutes 2006, section 47.19, is amended to read:

47.19 CORPORATION MAY BE MEMBER OR STOCKHOLDER OF
FEDERAL AGENCY.

Any corporation is hereby empowered and authorized to become a member of,
or stockholder in, any such agency, and to that end to purchase stock in, or securities
of, or deposit money with, such agency and/or to comply with any other conditions of
membership or credit; to borrow money from such agency upon such rates of interest, not
exceeding the contract rate of interest in this state, and upon such terms and conditions
as may be agreed upon by such corporation and such agency, for the purpose of making
loans, paying withdrawals, paying maturities, paying debts, and for any other purpose not
inconsistent with the objects of the corporation; provided, that the aggregate amount of the
indebtedness, so incurred by such corporation, which shall be outstanding at any time shall
not exceed 25 35 percent of the then total assets of the corporation; to assign, pledge and
hypothecate its bonds, mortgages or other assets; and, in case of savings associations, to
repledge with such agency the shares of stock in such association which any owner thereof
may have pledged as collateral security, without obtaining the consent thereunto of such
owner, as security for the repayment of the indebtedness so created by such corporation
and as evidenced by its note or other evidence of indebtedness given for such borrowed
money; and to do any and all things which shall or may be necessary or convenient in
order to comply with and to obtain the benefits of the provisions of any act of Congress
creating such agency, or any amendments thereto.

Sec. 8.

Minnesota Statutes 2006, section 47.59, subdivision 6, is amended to read:

Subd. 6.

Additional charges.

(a) For purposes of this subdivision, "financial
institution" includes a person described in subdivision 4, paragraph (a). In addition to the
finance charges permitted by this section, a financial institution may contract for and
receive the following additional charges that may be included in the principal amount
of the loan or credit sale unpaid balances:

(1) official fees and taxes;

(2) charges for insurance as described in paragraph (b);

(3) with respect to a loan or credit sale contract secured by real estate, the following
"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of
circumvention or evasion of this section:

(i) fees or premiums for title examination, abstract of title, title insurance, surveys,
or similar purposes;

(ii) fees for preparation of a deed, mortgage, settlement statement, or other
documents, if not paid to the financial institution;

(iii) escrows for future payments of taxes, including assessments for improvements,
insurance, and water, sewer, and land rents;

(iv) fees for notarizing deeds and other documents;

(v) appraisal and credit report fees; and

(vi) fees for determining whether any portion of the property is located in a flood
zone and fees for ongoing monitoring of the property to determine changes, if any,
in flood zone status;

(4) a delinquency charge on a payment, including the minimum payment due in
connection with open-end credit, not paid in full on or before the tenth day after its due
date in an amount not to exceed five percent of the amount of the payment or $5.20,
whichever is greater;

(5) for a returned check or returned automatic payment withdrawal request, an
amount not in excess of the service charge limitation in section 604.113, except that, on
a loan transaction that is a consumer small loan as defined in section 47.60, subdivision
1, paragraph (a), in which cash is advanced in exchange for a personal check, the civil
penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded
or assessed against the borrower; and

(6) charges for other benefits, including insurance, conferred on the borrower that
are of a type that is not for credit.

(b) An additional charge may be made for insurance written in connection with the
loan or credit sale contract, which may be included in the principal amount of the loan or
credit sale unpaid balances:

(1) with respect to insurance against loss of or damage to property, or against
liability arising out of the ownership or use of property, if the financial institution furnishes
a clear, conspicuous, and specific statement in writing to the borrower setting forth the
cost of the insurance if obtained from or through the financial institution and stating that
the borrower may choose the person through whom the insurance is to be obtained;

(2) with respect to credit insurance or mortgage insurance providing life, accident,
health, or unemployment coverage, if the insurance coverage is not required by the
financial institution, and this fact is clearly and conspicuously disclosed in writing to
the borrower, and the borrower gives specific, dated, and separately signed affirmative
written indication of the borrower's desire to do so after written disclosure to the borrower
of the cost of the insurance; and

(3) with respect to the vendor's single interest insurance, but only (i) to the extent
that the insurer has no right of subrogation against the borrower; and (ii) to the extent that
the insurance does not duplicate the coverage of other insurance under which loss is
payable to the financial institution as its interest may appear, against loss of or damage
to property for which a separate charge is made to the borrower according to clause (1);
and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the
financial institution to the borrower setting forth the cost of the insurance if obtained from
or through the financial institution and stating that the borrower may choose the person
through whom the insurance is to be obtained.

(c) In addition to the finance charges and other additional charges permitted by
this section, a financial institution may contract for and receive the following additional
charges in connection with open-end credit, which may be included in the principal
amount of the loan or balance upon which the finance charge is computed:

(1) annual charges, not to exceed $50 per annum, payable in advance, for the
privilege of opening and maintaining open-end credit;

(2) charges for the use of an automated teller machine;

(3) charges for any monthly or other periodic payment period in which the borrower
has exceeded or, except for the financial institution's dishonor would have exceeded,
the maximum approved credit limit, in an amount not in excess of the service charge
permitted in section 604.113;

(4) charges for obtaining a cash advance in an amount not to exceed the service
charge permitted in section 604.113; and

(5) charges for check and draft copies and for the replacement of lost or stolen
credit cards.

(d) In addition to the finance charges and other additional charges permitted by this
section, a financial institution may contract for and receive a onetime loan administrative
fee not exceeding $25 in connection with closed-end credit, which may be included in the
principal balance upon which the finance charge is computed. This paragraph applies only
to closed-end credit in an original principal amount of $4,320 or less. The determination
of an original principal amount must exclude the administrative fee contracted for and
received according to this paragraph.

Sec. 9.

Minnesota Statutes 2006, section 47.60, subdivision 2, is amended to read:

Subd. 2.

Authorization, terms, conditions, and prohibitions.

(a) In lieu of the
interest, finance charges, or fees in any other law, a consumer small loan lender may
charge the following:

(1) on any amount up to and including $50, a charge of $5.50 may be added;

(2) on amounts in excess of $50, but not more than $100, a charge may be added
equal to ten percent of the loan proceeds plus a $5 administrative fee;

(3) on amounts in excess of $100, but not more than $250, a charge may be
added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5
administrative fee;

(4) for amounts in excess of $250 and not greater than the maximum in subdivision
1, paragraph (a), a charge may be added equal to six percent of the loan proceeds with a
minimum of $17.50 plus a $5 administrative fee.

(b) The term of a loan made under this section shall be for no more than 30 calendar
days.

(c) After maturity, the contract rate must not exceed 2.75 percent per month of the
remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly
rate in the contract for each calendar day the balance is outstanding.

(d) No insurance charges or other charges must be permitted to be charged, collected,
or imposed on a consumer small loan except as authorized in this section.

(e) On a loan transaction in which cash is advanced in exchange for a personal
check, a return check charge may be charged as authorized by section 604.113, subdivision
2, paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph
(b), may not be demanded or assessed against the borrower.

(f) A loan made under this section must not be repaid by the proceeds of another
loan made under this section by the same lender or related interest. The proceeds from a
loan made under this section must not be applied to another loan from the same lender or
related interest. No loan to a single borrower made pursuant to this section shall be split or
divided and no single borrower shall have outstanding more than one loan with the result
of collecting a higher charge than permitted by this section or in an aggregate amount of
principal exceed at any one time the maximum of $350.

Sec. 10.

Minnesota Statutes 2006, section 47.62, subdivision 1, is amended to read:

Subdivision 1.

General authority.

Any person may establish and maintain one
or more electronic financial terminals. Any financial institution may provide for its
customers the use of an electronic financial terminal by entering into an agreement with
any person who has established and maintains one or more electronic financial terminals if
that person authorizes use of the electronic financial terminal to all financial institutions
on a nondiscriminatory basis pursuant to section 47.64. Electronic financial terminals to
be established and maintained in this state by financial institutions located in states other
than Minnesota must file a notification to the commissioner as required in this section.
The notification may be in the form lawfully required by the state regulator responsible
for the examination and supervision of that financial institution. If there is no such
requirement, then notification must be in the form required by this section for Minnesota
financial institutions.

Sec. 11.

Minnesota Statutes 2006, section 47.75, subdivision 1, is amended to read:

Subdivision 1.

Retirement, health savings, and medical savings accounts.

(a) A
commercial bank, savings bank, savings association, credit union, or industrial loan and
thrift company may act as trustee or custodian:

(1) under the Federal Self-Employed Individual Tax Retirement Act of 1962, as
amended;

(2) of a medical savings account under the Federal Health Insurance Portability and
Accountability Act of 1996, as amended;

(3) of a health savings account under the Medicare Prescription Drug, Improvement,
and Modernization Act of 2003, as amended; and

(4) under the Federal Employee Retirement Income Security Act of 1974, as
amended.

(b) The trustee or custodian may accept the trust funds if the funds are invested
only in savings accounts or time deposits in the commercial bank, savings bank, savings
association, credit union, or industrial loan and thrift company, except that health savings
accounts may also be invested in transaction accounts. Health savings accounts invested in
transaction accounts shall not be subject to the restrictions in section 48.512, subdivision
3. All funds held in the fiduciary capacity may be commingled by the financial institution
in the conduct of its business, but individual records shall be maintained by the fiduciary
for each participant and shall show in detail all transactions engaged under authority
of this subdivision.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 12.

Minnesota Statutes 2006, section 48.15, subdivision 4, is amended to read:

Subd. 4.

Retirement, health savings, and medical savings accounts.

(a) A state
bank may act as trustee or custodian:

(1) of a self-employed retirement plan under the Federal Self-Employed Individual
Tax Retirement Act of 1962, as amended;

(2) of a medical savings account under the Federal Health Insurance Portability and
Accountability Act of 1996, as amended;

(3) of a health savings account under the Medicare Prescription Drug, Improvement,
and Modernization Act of 2003, as amended; and

(4) of an individual retirement account under the Federal Employee Retirement
Income Security Act of 1974, as amended, if the bank's duties as trustee or custodian are
essentially ministerial or custodial in nature and the funds are invested only (i) in the
bank's own savings or time deposits, except that health savings accounts may also be
invested in transaction accounts. Health savings accounts invested in transaction accounts
shall not be subject to the restrictions in section 48.512, subdivision 3; or (ii) in any
other assets at the direction of the customer if the bank does not exercise any investment
discretion, invest the funds in collective investment funds administered by it, or provide
any investment advice with respect to those account assets.

(b) Affiliated discount brokers may be utilized by the bank acting as trustee or
custodian for self-directed IRAs, if specifically authorized and directed in appropriate
documents. The relationship between the affiliated broker and the bank must be fully
disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should
be accurately disclosed. Provisions should be made for disclosure of any changes in
commission rates prior to their becoming effective. The affiliated broker may not provide
investment advice to the customer.

(c) All funds held in the fiduciary capacity may be commingled by the financial
institution in the conduct of its business, but individual records shall be maintained by
the fiduciary for each participant and shall show in detail all transactions engaged under
authority of this subdivision.

(d) The authority granted by this section is in addition to, and not limited by, section
47.75.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 13.

Minnesota Statutes 2006, section 58.04, subdivision 1, is amended to read:

Subdivision 1.

Residential mortgage originator licensing requirements.

(a)
Beginning August 1, 1999, No person shall act as a residential mortgage originator, or
make residential mortgage loans without first obtaining a license from the commissioner
according to the licensing procedures provided in this chapter.

(b) A licensee must be either a partnership, limited liability partnership, association,
limited liability company, corporation, or other form of business organization, and must
have and maintain at all times one of the following: approval as a mortgagee by either the
federal Department of Housing and Urban Development or the Federal National Mortgage
Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety
bond or irrevocable letter of credit in the amount of $50,000. Net worth, net of intangibles,
must be calculated in accordance with generally accepted accounting principles.

(c) The following persons are exempt from the residential mortgage originator
licensing requirements:

(1) an employee of one mortgage originator licensee or one person holding a
certificate of exemption;

(2) a person licensed as a real estate broker under chapter 82 who is not licensed to
another real estate broker;

(3) an individual real estate licensee who is licensed to a real estate broker as
described in clause (2) if:

(i) the individual licensee acts only under the name, authority, and supervision of the
broker to whom the licensee is licensed;

(ii) the broker to whom the licensee is licensed obtains a certificate of exemption
according to section 58.05, subdivision 2;

(iii) the broker does not collect an advance fee for its residential mortgage-related
activities; and

(iv) the residential mortgage origination activities are incidental to the real estate
licensee's primary activities as a real estate broker or salesperson;

(4) an individual licensed as a property/casualty or life/health insurance agent under
chapter 60K if:

(i) the insurance agent acts on behalf of only one residential mortgage originator,
which is in compliance with chapter 58;

(ii) the insurance agent has entered into a written contract with the mortgage
originator under the terms of which the mortgage originator agrees to accept responsibility
for the insurance agent's residential mortgage-related activities;

(iii) the insurance agent obtains a certificate of exemption under section 58.05,
subdivision 2; and

(iv) the insurance agent does not collect an advance fee for the insurance agent's
residential mortgage-related activities;

(5) (1) a person who is not in the business of making residential mortgage loans and
who makes no more than three such loans, with its own funds, during any 12-month period;

(6) (2) a financial institution as defined in section 58.02, subdivision 10;

(7) (3) an agency of the federal government, or of a state or municipal government;

(8) (4) an employee or employer pension plan making loans only to its participants;

(9) (5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result
of a specific order issued by a court of competent jurisdiction; or

(10) (6) a person exempted by order of the commissioner.

Sec. 14.

Minnesota Statutes 2006, section 58.05, is amended to read:

58.05 EXEMPTIONS FROM LICENSE.

Subdivision 1.

Exempt person.

An exempt person as defined by section 58.04,
subdivision 1, paragraph (b) (c), and subdivision 2, paragraph (b), is exempt from the
licensing requirements of this chapter, but is subject to all other provisions of this chapter.

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 (b) (c), as a real estate broker under clause (2), an insurance agent under
clause (4), a financial institution under clause (6) (2), or by order of the commissioner
under clause (10) (6); or under section 58.04, subdivision 2, paragraph (b), as a financial
institution under clause (4) (3), or by order of the commissioner under clause (8) (7).

Sec. 15.

Minnesota Statutes 2006, 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. If The license applicant is
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.

(b) An 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 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 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:

(a) (1) an affirmation under oath that the applicant:

(1) will maintain competent staff and adequate staffing levels, through direct
employees or otherwise, to meet the requirements of this chapter; (i) is in compliance
with the requirements of section 58.125;

(ii) will maintain a perpetual roster of individuals employed as residential mortgage
originators, including employees and independent contractors, which includes the date that
mandatory initial education was completed. In addition, the roster must be made available
to the commissioner on demand, within three business days of the commissioner's request;

(2) (iii) will advise the commissioner of any material changes to the information
submitted in the most recent application within ten days of the change;

(3) (iv) will advise the commissioner in writing immediately of any bankruptcy
petitions filed against or by the applicant or licensee;

(4) is financially solvent; (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;

(5) (vi) complies with federal and state tax laws; and

(6) (vii) complies with sections 345.31 to 345.60, the Minnesota unclaimed property
law; and

(7) is, or that a person in control of the license applicant is, at least 18 years of age;

(b) (2) information as to the mortgage lending, servicing, or brokering experience
of the applicant and persons in control of the applicant;

(c) (3) information as to criminal convictions, excluding traffic violations, of persons
in control of the license applicant;

(d) (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 this chapter;

(e) (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

(f) (6) other information required by the commissioner.

Sec. 16.

Minnesota Statutes 2006, section 58.06, is amended by adding a subdivision
to read:

Subd. 3.

Waiver.

The commissioner may, for good cause shown, waive any
requirement of this section with respect to an initial license application or to permit a
license applicant to submit substituted information in its license application in lieu of
the information required by this section.

Sec. 17.

Minnesota Statutes 2006, section 58.08, subdivision 3, is amended to read:

Subd. 3.

Exemption.

Subdivisions 1 and Subdivision 2 do does not apply to
mortgage originators or mortgage servicers who are approved as seller/servicers by the
Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

Sec. 18.

Minnesota Statutes 2006, section 58.10, subdivision 1, is amended to read:

Subdivision 1.

Amounts.

The following fees must be paid to the commissioner:

(1) for an initial residential mortgage originator license, $850 $2,125, $50 of which
is credited to the consumer education account in the special revenue fund;

(2) for a renewal license, $450 $1,125, $50 of which is credited to the consumer
education account in the special revenue fund;

(3) for an initial residential mortgage servicer's license, $1,000;

(4) for a renewal license, $500; and

(5) for a certificate of exemption, $100.

Sec. 19.

[58.115] EXAMINATIONS.

The commissioner has under this chapter the same powers with respect to
examinations that the commissioner has under section 46.04, including the authority to
charge for the direct costs of the examination, including travel and per diem expenses.

Sec. 20.

[58.126] EDUCATION REQUIREMENT.

No individual shall engage in residential mortgage origination or make residential
mortgage loans, whether as an employee or independent contractor, before the completion
of 15 hours of educational training which has been approved by the commissioner, and
covering state and federal laws concerning residential mortgage lending.

EFFECTIVE DATE.

This section is effective March 1, 2008.

Sec. 21.

[59C.01] SHORT TITLE.

This chapter may be cited as the Vehicle Protection Product Act.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 22.

[59C.02] DEFINITIONS.

Subdivision 1.

Terms.

For purposes of this chapter, the terms defined in subdivisions
2 to 11 have the meanings given them.

Subd. 2.

Administrator.

"Administrator" means a third party other than the
warrantor who is designated by the warrantor to be responsible for the administration
of vehicle protection product warranties.

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of commerce.

Subd. 4.

Department.

"Department" means the Department of Commerce.

Subd. 5.

Incidental costs.

"Incidental costs" means expenses specified in the
warranty incurred by the warranty holder related to the failure of the vehicle protection
product to perform as provided in the warranty. Incidental costs may include, without
limitation, insurance policy deductibles, rental vehicle charges, the difference between the
actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle,
sales taxes, registration fees, transaction fees, and mechanical inspection fees.

Subd. 6.

Service contract.

"Service contract" means a contract or agreement as
regulated under chapter 59B.

Subd. 7.

Vehicle protection product.

"Vehicle protection product" means a vehicle
protection device, system, or service that:

(1) is installed on or applied to a vehicle;

(2) is designed to prevent loss or damage to a vehicle from a specific cause; and

(3) includes a written warranty.

For purposes of this section, vehicle protection product includes, without limitation,
alarm systems; body part marking products; steering locks; window etch products; pedal
and ignition locks; fuel and ignition kill switches; and electronic, radio, and satellite
tracking devices.

Subd. 8.

Vehicle protection product warranty or warranty.

"Vehicle protection
product warranty" or "warranty" means, for the purposes of this chapter, a written
agreement by a warrantor that provides if the vehicle protection product fails to prevent
loss or damage to a vehicle from a specific cause, that the warranty holder must be
paid specified incidental costs by the warrantor as a result of the failure of the vehicle
protection product to perform pursuant to the terms of the warranty.

Subd. 9.

Vehicle protection product warrantor or warrantor.

"Vehicle protection
product warrantor" or "warrantor," for the purposes of this chapter, means a person who is
contractually obligated to the warranty holder under the terms of the vehicle protection
product warranty agreement. Warrantor does not include an authorized insurer providing a
warranty reimbursement insurance policy.

Subd. 10.

Warranty holder.

"Warranty holder," for the purposes of this chapter,
means the person who purchases a vehicle protection product or who is a permitted
transferee.

Subd. 11.

Warranty reimbursement insurance policy.

"Warranty reimbursement
insurance policy" means a policy of insurance that is issued to the vehicle protection
product warrantor to provide reimbursement to, or to pay on behalf of, the warrantor all
covered contractual obligations incurred by the warrantor under the terms and conditions
of the insured vehicle protection product warranties sold by the warrantor.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 23.

[59C.03] SCOPE AND EXEMPTIONS.

(a) No vehicle protection product may be sold or offered for sale in this state unless
the seller, warrantor, and administrator, if any, comply with the provisions of this chapter.

(b) Vehicle protection product warrantors and related vehicle protection product
sellers and warranty administrators complying with this chapter are not required to comply
with and are not subject to any other provision of chapters 59B to 72A, except that section
72A.20, subdivision 38, shall apply to vehicle protection product warranties in the same
manner it applies to service contracts.

(c) Service contract providers who do not sell vehicle protection products are not
subject to the requirements of this chapter and sales of vehicle protection products are
exempt from the requirements of chapter 59B.

(d) Warranties, indemnity agreements, and guarantees that are not provided as a part
of a vehicle protection product are not subject to the provisions of this chapter.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 24.

[59C.04] REGISTRATION AND FILING REQUIREMENTS OF
WARRANTORS.

Subdivision 1.

General requirement.

A person may not operate as a warrantor or
represent to the public that the person is a warrantor unless the person is registered with
the department on a form prescribed by the commissioner.

Subd. 2.

Registration records.

A registrant shall file a warrantor registration
record annually and shall update it within 30 days of any change. A registration record
must contain the following information:

(1) the warrantor's name, any fictitious names under which the warrantor does
business in the state, principal office address, and telephone number;

(2) the name and address of the warrantor's agent for service of process in the state if
other than the warrantor;

(3) the names of the warrantor's executive officer or officers directly responsible for
the warrantor's vehicle protection product business;

(4) the name, address, and telephone number of any administrators designated by
the warrantor to be responsible for the administration of vehicle protection product
warranties in this state;

(5) a copy of the warranty reimbursement insurance policy or policies or other
financial information required by section 59C.05;

(6) a copy of each warranty the warrantor proposes to use in this state; and

(7) a statement indicating under which provision of section 59C.05 the warrantor
qualifies to do business in this state as a warrantor.

Subd. 3.

Registration fee.

The commissioner may charge each registrant a
reasonable fee to offset the cost of processing the registration and maintaining the records
in an amount of $250 annually. The information in subdivision 2, clauses (1) and (2), must
be made available to the public.

Subd. 4.

Renewal.

The registrant will have 30 days to complete the renewal of the
registration before the commissioner suspends the registration.

Subd. 5.

Exception.

An administrator or person who sells or solicits a sale of a
vehicle protection product but who is not a warrantor shall not be required to register as a
warrantor or be licensed under the insurance laws of this state to sell vehicle protection
products.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 25.

[59C.05] FINANCIAL RESPONSIBILITY.

Subdivision 1.

General requirements.

No vehicle protection product may be sold,
or offered for sale in this state unless the warrantor meets either the requirements of
subdivision 2 or 3 in order to ensure adequate performance under the warranty. No other
financial security requirements or financial standards for warrantors is required.

Subd. 2.

Warranty reimbursement insurance policy.

The vehicle protection
product warrantor shall be insured under a warranty reimbursement insurance policy
issued by an insurer authorized to do business in this state which provides that:

(1) the insurer will pay to, or on behalf of the warrantor, 100 percent of all sums
that the warrantor is legally obligated to pay according to the warrantor's contractual
obligations under the warrantor's vehicle protection product warranty;

(2) a true and correct copy of the warranty reimbursement insurance policy has been
filed with the commissioner by the warrantor; and

(3) the policy contains the provision required in section 59C.06.

Subd. 3.

Network or stockholder's equity.

(1) The vehicle protection product
warrantor, or its parent company in accordance with clause (2), shall maintain a net worth
or stockholders' equity of $50,000,000; and

(2) the warrantor shall provide the commissioner with a copy of the warrantor's or
the warrantor's parent company's most recent Form 10-K or Form 20-F filed with the
Securities and Exchange Commission within the last calendar year or, if the warrantor
does not file with the Securities and Exchange Commission, a copy of the warrantor or
the warrantor's parent company's audited financial statements that shows a net worth of
the warrantor or its parent company of at least $50,000,000. If the warrantor's parent
company's Form 10-K, Form 20-F, or audited financial statements are filed to meet
the warrantor's financial stability requirement, then the parent company shall agree to
guarantee the obligations of the warrantor relating to warranties issued by the warrantor in
this state. The financial information provided to the commissioner under this paragraph
is trade secret information for purposes of section 13.37.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 26.

[59C.06] WARRANTY REIMBURSEMENT POLICY
REQUIREMENTS.

No warranty reimbursement insurance policy may be issued, sold, or offered for sale
in this state unless the policy meets the following conditions:

(1) the policy states that the issuer of the policy will reimburse, or pay on behalf of
the vehicle protection product warrantor, all covered sums that the warrantor is legally
obligated to pay, or will provide all service that the warrantor is legally obligated to
perform according to the warrantor's contractual obligations under the provisions of the
insured warranties sold by the warrantor;

(2) the policy states that in the event payment due under the terms of the warranty is
not provided by the warrantor within 60 days after proof of loss has been filed according
to the terms of the warranty by the warranty holder, the warranty holder may file directly
with the warranty reimbursement insurance company for reimbursement;

(3) the policy provides that a warranty reimbursement insurance company that
insures a warranty is deemed to have received payment of the premium if the warranty
holder paid for the vehicle protection product and the insurer's liability under the policy
shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the
issuance of a warranty to the insurer; and

(4) the policy has the following provisions regarding cancellation of the policy:

(i) the issuer of a reimbursement insurance policy shall not cancel the policy until a
notice of cancellation in writing has been mailed or delivered to the commissioner and
each insured warrantor;

(ii) the cancellation of a reimbursement insurance policy shall not reduce the issuer's
responsibility for vehicle protection products sold prior to the date of cancellation; and

(iii) in the event an insurer cancels a policy that a warrantor has filed with the
commissioner, the warrantor shall do either of the following:

(A) file a copy of a new policy with the commissioner, before the termination of
the prior policy, providing no lapse in coverage following the termination of the prior
policy; or

(B) discontinue offering warranties as of the termination date of the policy until a
new policy becomes effective and is accepted by the commissioner.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 27.

[59C.07] DISCLOSURE TO WARRANTY HOLDER.

A vehicle protection product warranty must not be sold or offered for sale in this
state unless the warranty:

(1) states, "The obligations of the warrantor to the warranty holder are guaranteed
under a warranty reimbursement insurance policy" if the warrantor elects to meet its
financial responsibility obligations under section 59C.05, subdivision 2, or states "The
obligations of the warrantor under this warranty are backed by the full faith and credit
of the warrantor" if the warrantor elects to meet its financial responsibility obligations
under section 59C.05, subdivision 3;

(2) states that in the event a warranty holder must make a claim against a party other
than the warranty reimbursement insurance policy issuer, the warranty holder is entitled to
make a direct claim against the insurer upon the failure of the warrantor to pay any claim
or meet any obligation under the terms of the warranty within 60 days after proof of loss
has been filed with the warrantor, if the warrantor elects to meet its financial responsibility
obligations under section 59C.05, subdivision 2;

(3) states the name and address of the issuer of the warranty reimbursement
insurance policy, and this information need not be preprinted on the warranty form, but
may be added to or stamped on the warranty, if the warrantor elects to meet its financial
responsibility obligations under section 59C.05, subdivision 2;

(4) identifies the warrantor, the seller, and the warranty holder;

(5) sets forth the total purchase price and the terms under which it is to be paid,
however, the purchase price is not required to be preprinted on the vehicle protection
product warranty and may be negotiated with the consumer at the time of sale;

(6) sets forth the procedure for making a claim, including a telephone number;

(7) specifies the payments or performance to be provided under the warranty
including payments for incidental costs expressed as either a fixed amount specified in the
warranty or sales agreement or by the use of a formula itemizing specific incidental costs
incurred by the warranty holder, the manner of calculation or determination of payments
or performance, and any limitations, exceptions, or exclusions;

(8) sets forth all of the obligations and duties of the warranty holder such as the duty
to protect against any further damage to the vehicle, the obligation to notify the warrantor
in advance of any repair, or other similar requirements, if any;

(9) sets forth any terms, restrictions, or conditions governing transferability and
cancellation of the warranty, if any; and

(10) contains a disclosure that reads substantially as follows: "This agreement is a
product warranty and is not insurance."

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 28.

[59C.08] PROHIBITED ACTS.

(a) Unless licensed as an insurance company, a vehicle protection product warrantor
shall not use in its name, contracts, or literature, any of the words "insurance," "casualty,"
"surety," "mutual," or any other words descriptive of the insurance, casualty, or surety
business or deceptively similar to the name or description of any insurance or surety
corporation, or any other vehicle protection product warrantor. A warrantor may use the
term "guaranty" or similar word in the warrantor's name.

(b) A vehicle protection product seller or warrantor may not require as a condition of
financing that a retail purchaser of a motor vehicle purchase a vehicle protection product.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 29.

[59C.09] RECORD KEEPING.

(a) All vehicle protection product warrantors shall keep accurate accounts, books,
and records concerning transactions regulated under this chapter.

(b) A vehicle protection product warrantor's accounts, books, and records must
include:

(1) copies of all vehicle protection product warranties;

(2) the name and address of each warranty holder; and

(3) the dates, amounts, and descriptions of all receipts, claims, and expenditures.

(c) A vehicle protection product warrantor shall retain all required accounts, books,
and records pertaining to each warranty holder for at least two years after the specified
period of coverage has expired. A warrantor discontinuing business in this state shall
maintain its records until it furnishes the commissioner satisfactory proof that it has
discharged all obligations to warranty holders in this state.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 30.

[59C.10] COMMISSIONER'S POWERS AND DUTIES.

Subdivision 1.

Examination and compliance powers.

The commissioner may
conduct examinations of warrantors, administrators, or other persons to enforce this
chapter and protect warranty holders in this state. Upon request of the commissioner, a
warrantor shall make available to the commissioner all accounts, books, and records
concerning vehicle protection products sold by the warrantor and transactions regulated
under this chapter that are necessary to enable the commissioner to reasonably determine
compliance or noncompliance with this chapter.

Subd. 2.

Enforcement authority.

The commissioner may take action that is
necessary or appropriate to enforce the provisions of this chapter and the commissioner's
rules and orders and to protect warranty holders in this state. The commissioner has the
enforcement authority in chapter 45 available to enforce the provisions of the chapter and
the rules adopted pursuant to it.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 31.

[59C.12] APPLICABILITY.

This chapter applies to all vehicle protection products sold or offered for sale on
or after the effective date of this chapter. The failure of any person to comply with this
chapter before its effective date is not admissible in any court proceeding, administrative
proceeding, arbitration, or alternative dispute resolution proceeding and may not otherwise
be used to prove that the action of any person or the affected vehicle protection product
was unlawful or otherwise improper. The adoption of this chapter does not imply that
a vehicle protection product warranty was insurance before the effective date of this
chapter. Nothing in this section may be construed to require the application of the penalty
provisions where this section is not applicable.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 32.

[60K.365] PRODUCER TRAINING REQUIREMENTS FOR
LONG-TERM CARE INSURANCE PRODUCTS.

(a) An individual may not sell, solicit, or negotiate long-term care insurance
unless the individual is licensed as an insurance producer for accident and health or
sickness insurance or life insurance and has completed an initial training course and
ongoing training every 24 months thereafter. The training must meet the requirements of
paragraph (b).

(b) The initial training course required by this section must be no less than eight
hours, and the ongoing training courses required by this section must be no less than four
hours every 24 months. The courses must be approved by the commissioner and may be
approved as continuing education courses under section 60K.56. The courses must consist
of topics related to long-term care insurance, long-term care services, and qualified state
long-term care insurance partnership programs, including, but not limited to:

(1) state and federal regulations and requirements and the relationship between
qualified state long-term care insurance partnership programs and other public and private
coverage of long-term care services, including Medicaid/Minnesota medical assistance;

(2) available long-term care services and providers;

(3) changes or improvements in long-term care services or providers;

(4) alternatives to the purchase of private long-term care insurance;

(5) the effect of inflation on benefits and the importance of inflation protection; and

(6) consumer suitability standards and guidelines.

The training required by this section must not include training that is insurer or
company product specific or that includes any sales or marketing information, materials,
or training, other than those required by state or federal law.

(c) Insurers shall obtain verification that a producer has received the training
required by this section before a producer is permitted to sell, solicit, or negotiate the
insurer's long-term care insurance products. Insurers shall maintain records verifying that
the producer has received the training contained in this section and make that verification
available to the commissioner upon request.

(d) The satisfaction of these initial training requirements in any state shall be deemed
to satisfy the initial training requirements of this section.

(e) Nonresident producers selling partnership policies shall be expected to
demonstrate knowledge about unique aspects of the Minnesota medical assistance system.
An insurer offering partnership products in Minnesota shall maintain records verifying that
its nonresident producers have attained the required training and make that verification
available to the commissioner upon request.

EFFECTIVE DATE; APPLICATION.

This section is effective the day following
final enactment; producers have until January 1, 2008, to complete the initial training
course.

Sec. 33.

Minnesota Statutes 2006, section 60K.55, subdivision 2, is amended to read:

Subd. 2.

Licensing fees.

(a) In addition to fees provided for examinations and the
technology surcharge required under paragraph (d), each insurance producer licensed
under this chapter shall pay to the commissioner a fee of:

(1) $50 for an initial life, accident and health, property, or casualty license issued to
an individual insurance producer, and a fee of $50 for each renewal;

(2) $50 for an initial variable life and variable annuity license issued to an individual
insurance producer, and a fee of $50 for each renewal;

(3) $50 for an initial personal lines license issued to an individual insurance
producer, and a fee of $50 for each renewal;

(4) $50 for an initial limited lines license issued to an individual insurance producer,
and a fee of $50 for each renewal;

(5) $200 for an initial license issued to a business entity, and a fee of $200 for each
renewal; and

(6) $500 for an initial surplus lines license, and a fee of $500 for each renewal.

(b) Initial licenses issued under this chapter are valid for a period not to exceed 24
months and expire on October 31 of the renewal year assigned by the commissioner.
Each renewal insurance producer license is valid for a period of 24 months. Licensees
who submit renewal applications postmarked or delivered on or before October 15 of the
renewal year may continue to transact business whether or not the renewal license has been
received by November 1. Licensees who submit applications postmarked or delivered
after October 15 of the renewal year must not transact business after the expiration date
of the license until the renewal license has been received.

(c) All fees are nonreturnable, except that an overpayment of any fee may be
refunded upon proper application.

(d) In addition to the fees required under paragraph (a), individual insurance
producers shall pay, for each initial license and renewal, a technology surcharge of up to
$40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted
under that section.

EFFECTIVE DATE.

This section is effective August 31, 2007.

Sec. 34.

Minnesota Statutes 2006, section 80A.28, subdivision 1, is amended to read:

Subdivision 1.

Registration or notice filing fee.

(a) There shall be a filing fee of
$100 for every application for registration or notice filing. There shall be an additional fee
of one-tenth of one percent of the maximum aggregate offering price at which the securities
are to be offered in this state, and the maximum combined fees shall not exceed $300.

(b) When an application for registration is withdrawn before the effective date or a
preeffective stop order is entered under section 80A.13, subdivision 1, all but the $100
filing fee shall be returned. If an application to register securities is denied, the total of all
fees received shall be retained.

(c) Where a filing is made in connection with a federal covered security under
section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing.
If the filing is made in connection with redeemable securities issued by an open end
management company or unit investment trust, as defined in the Investment Company
Act of 1940, there is an additional annual fee of 1/20 of one percent of the maximum
aggregate offering price at which the securities are to be offered in this state during the
notice filing period. The fee must be paid at the time of the initial filing and thereafter
in connection with each renewal no later than July 1 of each year and must be sufficient
to cover the shares the issuer expects to sell in this state over the next 12 months. If
during a current notice filing the issuer determines it is likely to sell shares in excess of
the shares for which fees have been paid to the commissioner, the issuer shall submit an
amended notice filing to the commissioner under section 80A.122, subdivision 1, clause
(3), together with a fee of 1/20 of one percent of the maximum aggregate offering price
of the additional shares. Shares for which a fee has been paid, but which have not been
sold at the time of expiration of the notice filing, may not be sold unless an additional fee
to cover the shares has been paid to the commissioner as provided in this section and
section 80A.122, subdivision 4a. If the filing is made in connection with redeemable
securities issued by such a company or trust, there is no maximum fee for securities filings
made according to this paragraph. If the filing is made in connection with any other
federal covered security under Section 18(b)(2) of the Securities Act of 1933, there is an
additional fee of one-tenth of one percent of the maximum aggregate offering price at
which the securities are to be offered in this state, and the combined fees shall not exceed
$300. Beginning with fiscal year 2001 and continuing each fiscal year thereafter, as of the
last day of each fiscal year, the commissioner shall determine the total amount of all fees
that were collected under this paragraph in connection with any filings made for that fiscal
year for securities of an open-end investment company on behalf of a security that is a
federal covered security pursuant to section 18(b)(2) of the Securities Act of 1933. To the
extent the total fees collected by the commissioner in connection with these filings exceed
$25,000,000 $25,600,000 in a fiscal year, the commissioner shall refund, on a pro rata
basis, to all persons who paid any fees for that fiscal year, the amount of fees collected by
the commissioner in excess of $25,000,000 $25,600,000. No individual refund is required
of amounts of $100 or less for a fiscal year.

Sec. 35.

Minnesota Statutes 2006, section 80A.65, subdivision 1, is amended to read:

Subdivision 1.

Registration or notice filing fee.

(a) There shall be a filing fee of
$100 for every application for registration or notice filing. There shall be an additional fee
of one-tenth of one percent of the maximum aggregate offering price at which the securities
are to be offered in this state, and the maximum combined fees shall not exceed $300.

(b) When an application for registration is withdrawn before the effective date
or a preeffective stop order is entered under section 80A.54, all but the $100 filing fee
shall be returned. If an application to register securities is denied, the total of all fees
received shall be retained.

(c) Where a filing is made in connection with a federal covered security under
section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing.
If the filing is made in connection with redeemable securities issued by an open end
management company or unit investment trust, as defined in the Investment Company Act
of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate
offering price at which the securities are to be offered in this state during the notice filing
period. The fee must be paid at the time of the initial filing and thereafter in connection
with each renewal no later than July 1 of each year and must be sufficient to cover the
shares the issuer expects to sell in this state over the next 12 months. If during a current
notice filing the issuer determines it is likely to sell shares in excess of the shares for which
fees have been paid to the administrator, the issuer shall submit an amended notice filing
to the administrator under section 80A.50, together with a fee of 1/20 of one percent of the
maximum aggregate offering price of the additional shares. Shares for which a fee has
been paid, but which have not been sold at the time of expiration of the notice filing, may
not be sold unless an additional fee to cover the shares has been paid to the administrator
as provided in this section and section 80A.50. If the filing is made in connection with
redeemable securities issued by such a company or trust, there is no maximum fee for
securities filings made according to this paragraph. If the filing is made in connection with
any other federal covered security under Section 18(b)(2) of the Securities Act of 1933,
there is an additional fee of one-tenth of one percent of the maximum aggregate offering
price at which the securities are to be offered in this state, and the combined fees shall not
exceed $300. Beginning with fiscal year 2001 and continuing each fiscal year thereafter,
as of the last day of each fiscal year, the administrator shall determine the total amount of
all fees that were collected under this paragraph in connection with any filings made for
that fiscal year for securities of an open-end investment company on behalf of a security
that is a federal covered security pursuant to section 18(b)(2) of the Securities Act of
1933. To the extent the total fees collected by the administrator in connection with these
filings exceed $25,000,000 $25,600,000 in a fiscal year, the administrator shall refund,
on a pro rata basis, to all persons who paid any fees for that fiscal year, the amount of
fees collected by the administrator in excess of $25,000,000 $25,600,000. No individual
refund is required of amounts of $100 or less for a fiscal year.

Sec. 36.

Minnesota Statutes 2006, section 82.24, subdivision 1, is amended to read:

Subdivision 1.

Amounts.

The following fees shall be paid to the commissioner:

(a) a fee of $150 for each initial individual broker's license, and a fee of $100 for
each renewal thereof;

(b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each
renewal thereof;

(c) a fee of $85 for each initial real estate closing agent license, and a fee of $60
for each renewal thereof;

(d) a fee of $150 for each initial corporate, limited liability company, or partnership
license, and a fee of $100 for each renewal thereof;

(e) a fee for payment to the education, research and recovery fund in accordance
with section 82.43;

(f) a fee of $20 for each transfer;

(g) a fee of $50 for license reinstatement; and

(h) a fee of $20 for reactivating a corporate, limited liability company, or partnership
license without land; and

(i) in addition to the fees required under this subdivision, individual licensees under
clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge
of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge
as permitted under that section.

EFFECTIVE DATE; APPLICATION.

This section is effective the day following
final enactment and applies to new licensees effective September 1, 2007.

Sec. 37.

Minnesota Statutes 2006, section 82.24, subdivision 4, is amended to read:

Subd. 4.

Deposit of fees.

Unless otherwise provided by this chapter, all fees
collected under this chapter shall be deposited in the state treasury. The technology
surcharge shall be deposited as required under section 45.24.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 38.

Minnesota Statutes 2006, section 82B.09, subdivision 1, is amended to read:

Subdivision 1.

Amounts.

(a) The following fees must be paid to the commissioner:

(1) $150 for each initial individual real estate appraiser's license; and

(2) $100 for each renewal.

(b) In addition to the fees required under this subdivision, individual real estate
appraisers shall pay a technology surcharge of up to $40 under section 45.24, unless the
commissioner has adjusted the surcharge as permitted under that section.

EFFECTIVE DATE.

This section is effective June 30, 2007.

Sec. 39.

Minnesota Statutes 2006, section 118A.03, subdivision 2, is amended to read:

Subd. 2.

In lieu of surety bond.

The following are the allowable forms of collateral
in lieu of a corporate surety bond:

(1) United States government Treasury bills, Treasury notes, Treasury bonds;

(2) issues of United States government agencies and instrumentalities as quoted by a
recognized industry quotation service available to the government entity;

(3) general obligation securities of any state or local government with taxing powers
which is rated "A" or better by a national bond rating service, or revenue obligation
securities of any state or local government with taxing powers which is rated "AA" or
better by a national bond rating service;

(4) unrated general obligation securities of a local government with taxing powers
may be pledged as collateral against funds deposited by that same local government entity;

(5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a
municipality accompanied by written evidence that the bank's public debt is rated "AA" or
better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and

(6) time deposits that are fully insured by any federal agency.

Sec. 40.

Minnesota Statutes 2006, section 239.101, subdivision 3, is amended to read:

Subd. 3.

Petroleum inspection fee.

(a) An inspection fee is imposed (1) on
petroleum products when received by the first licensed distributor, and (2) on petroleum
products received and held for sale or use by any person when the petroleum products
have not previously been received by a licensed distributor. The petroleum inspection
fee is $1 for every 1,000 gallons received. The commissioner of revenue shall collect
the fee. The revenue from 81 cents of the fee is appropriated to the commissioner of
commerce for the cost of operations of the Division of Weights and Measures, petroleum
supply monitoring, and the oil burner retrofit program to make grants to providers of
low-income weatherization services to install renewable energy equipment in households
that are eligible for weatherization assistance under Minnesota's weatherization assistance
program state plan. The remainder of the fee must be deposited in the general fund.

(b) The commissioner of revenue shall credit a person for inspection fees previously
paid in error or for any material exported or sold for export from the state upon filing of a
report as prescribed by the commissioner of revenue.

(c) The commissioner of revenue may collect the inspection fee along with any
taxes due under chapter 296A.

Sec. 41.

[325E.027] DISCRIMINATION PROHIBITION.

(a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil
who has signed a low-income home energy assistance program vendor agreement with the
department of commerce may refuse to deliver liquid propane gas or number 1 or number
2 fuel oil to any person located within the dealer's or distributor's normal delivery area
who receives direct grants under the low-income home energy assistance program if:

(1) the person has requested delivery;

(2) the dealer or distributor has product available;

(3) the person requesting delivery is capable of making full payment at the time of
delivery; and

(4) the person is not in arrears regarding any previous fuel purchase from that dealer
or distributor.

(b) A dealer or distributor making delivery to a person receiving direct grants
under the low-income home energy assistance program may not charge that person any
additional costs or fees that would not be charged to any other customer and must make
available to that person any discount program on the same basis as the dealer or distributor
makes available to any other customer.

Sec. 42.

Minnesota Statutes 2006, 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
permission; 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;

(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.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 43.

Minnesota Statutes 2006, section 325N.01, is amended to read:

325N.01 DEFINITIONS.

The definitions in paragraphs (a) to (h) apply to sections 325N.01 to 325N.09.

(a) "Foreclosure consultant" means any person who, directly or indirectly, makes
any solicitation, representation, or offer to any owner to perform for compensation or
who, for compensation, performs any service which the person in any manner represents
will in any manner do any of the following:

(1) stop or postpone the foreclosure sale;

(2) obtain any forbearance from any beneficiary or mortgagee;

(3) assist the owner to exercise the right of reinstatement provided in section 580.30;

(4) obtain any extension of the period within which the owner may reinstate the
owner's obligation;

(5) obtain any waiver of an acceleration clause contained in any promissory note or
contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;

(6) assist the owner in foreclosure or loan default to obtain a loan or advance
of funds;

(7) avoid or ameliorate the impairment of the owner's credit resulting from the
recording of a notice of default or the conduct of a foreclosure sale; or

(8) save the owner's residence from foreclosure.

(b) A foreclosure consultant does not include any of the following:

(1) a person licensed to practice law in this state when the person renders service
in the course of his or her practice as an attorney-at-law;

(2) a person licensed as a debt prorater under sections 332.12 to 332.29 management
services provider under chapter 332A, when the person is acting as a debt prorater
management services provider as defined in these sections that chapter;

(3) a person licensed as a real estate broker or salesperson under chapter 82 when the
person engages in acts whose performance requires licensure under that chapter unless the
person is engaged in offering services designed to, or purportedly designed to, enable the
owner to retain possession of the residence in foreclosure;

(4) a person licensed as an accountant under chapter 326A when the person is acting
in any capacity for which the person is licensed under those provisions;

(5) a person or the person's authorized agent acting under the express authority
or written approval of the Department of Housing and Urban Development or other
department or agency of the United States or this state to provide services;

(6) a person who holds or is owed an obligation secured by a lien on any residence
in foreclosure when the person performs services in connection with this obligation or lien
if the obligation or lien did not arise as the result of or as part of a proposed foreclosure
reconveyance;

(7) any person or entity doing business under any law of this state, or of the United
States relating to banks, trust companies, savings and loan associations, industrial loan and
thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee
which is a United States Department of Housing and Urban Development approved
mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or
employee of these persons or entities while engaged in the business of these persons
or entities;

(8) a person licensed as a residential mortgage originator or servicer pursuant to
chapter 58, when acting under the authority of that license or a foreclosure purchaser as
defined in section 325N.10;

(9) a nonprofit agency or organization that offers counseling or advice to an owner
of a home in foreclosure or loan default if they do not contract for services with for-profit
lenders or foreclosure purchasers; and

(10) a judgment creditor of the owner, to the extent that the judgment creditor's claim
accrued prior to the personal service of the foreclosure notice required by section 580.03,
but excluding a person who purchased the claim after such personal service.

(c) "Foreclosure reconveyance" means a transaction involving:

(1) the transfer of title to real property by a foreclosed homeowner during a
foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or
by creation of a mortgage or other lien or encumbrance during the foreclosure process
that allows the acquirer to obtain title to the property by redeeming the property as
a junior lienholder; and

(2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest
back to the foreclosed homeowner by the acquirer or a person acting in participation with
the acquirer that allows the foreclosed homeowner to possess the real property following
the completion of the foreclosure proceeding, which interest includes, but is not limited to,
an interest in a contract for deed, purchase agreement, option to purchase, or lease.

(d) "Person" means any individual, partnership, corporation, limited liability
company, association, or other group, however organized.

(e) "Service" means and includes, but is not limited to, any of the following:

(1) debt, budget, or financial counseling of any type;

(2) receiving money for the purpose of distributing it to creditors in payment or
partial payment of any obligation secured by a lien on a residence in foreclosure;

(3) contacting creditors on behalf of an owner of a residence in foreclosure;

(4) arranging or attempting to arrange for an extension of the period within which
the owner of a residence in foreclosure may cure the owner's default and reinstate his or
her obligation pursuant to section 580.30;

(5) arranging or attempting to arrange for any delay or postponement of the time of
sale of the residence in foreclosure;

(6) advising the filing of any document or assisting in any manner in the preparation
of any document for filing with any bankruptcy court; or

(7) giving any advice, explanation, or instruction to an owner of a residence in
foreclosure, which in any manner relates to the cure of a default in or the reinstatement
of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of
that obligation, or the postponement or avoidance of a sale of a residence in foreclosure,
pursuant to a power of sale contained in any mortgage.

(f) "Residence in foreclosure" means residential real property consisting of one to
four family dwelling units, one of which the owner occupies as his or her principal place
of residence, and against which there is an outstanding notice of pendency of foreclosure,
recorded pursuant to section 580.032, or against which a summons and complaint has
been served under chapter 581.

(g) "Owner" means the record owner of the residential real property in foreclosure at
the time the notice of pendency was recorded, or the summons and complaint served.

(h) "Contract" means any agreement, or any term in any agreement, between
a foreclosure consultant and an owner for the rendition of any service as defined in
paragraph (e).

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 44.

Minnesota Statutes 2006, section 332.54, subdivision 7, is amended to read:

Subd. 7.

Fees.

The fee for a credit services organization's registration is $100
$1,000 for issuance or renewal for each location of business.

EFFECTIVE DATE; APPLICATION.

This section is effective July 1, 2007, and
applies to registrations issued or renewed on or after that date.

Sec. 45.

[332A.02] DEFINITIONS.

Subdivision 1.

Scope.

Unless a different meaning is clearly indicated by the context,
for the purposes of this chapter the terms defined in this section have the meanings given
them.

Subd. 2.

Accreditation.

"Accreditation" means certification as an accredited credit
counseling provider by the Council on Accreditation.

Subd. 3.

Attorney general.

"Attorney general" means the attorney general of the
state of Minnesota.

Subd. 4.

Commissioner.

"Commissioner" means commissioner of commerce.

Subd. 5.

Controlling or affiliated party.

"Controlling or affiliated party" means
any person directly or indirectly controlling, controlled by, or under common control
with another person.

Subd. 6.

Debt management services agreement.

"Debt management services
agreement" means the written contract between the debt management services provider
and the debtor.

Subd. 7.

Debt management services plan.

"Debt management services plan"
means the debtor's individualized package of debt management services set forth in the
debt management services agreement.

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 does
not 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, 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;

(7) credit unions and collection agencies, provided no fee is charged for the service;

(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 332.30 to
332.303, 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
332.30 to 332.303, "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 providers.

Subd. 9.

Debt management services.

"Debt management services" means the
provision of any one or more of the following services in connection with debt incurred
primarily for personal, family, or household services:

(1) managing the financial affairs of an individual by distributing income or money
to the individual's creditors;

(2) receiving funds for the purpose of distributing the funds among creditors in
payment or partial payment of obligations of a debtor; or

(3) adjusting, prorating, pooling, or liquidating the indebtedness of a debtor. 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 such services.

Subd. 10.

Debtor.

"Debtor" means the person for whom the debt prorating service
is performed.

Subd. 11.

Person.

"Person" means any individual, firm, partnership, association,
or corporation.

Subd. 12.

Registrant.

"Registrant" means any person registered by the
commissioner pursuant to this chapter and, where used in conjunction with an act or
omission required or prohibited by this chapter, shall mean any person performing debt
management services.

Subd. 13.

Debt settlement provider.

"Debt settlement provider" means any person
engaging in or holding out as engaging in the business of negotiating, adjusting, or settling
debt incurred primarily for personal, family, or household purposes without holding or
receiving the debtor's funds or personal property and without paying the debtor's funds to,
or distributing the debtor's property among, creditors. The term shall not include persons
listed in subdivision 8, clauses (1) to (10).

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 46.

[332A.03] REQUIREMENT OF REGISTRATION.

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

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 47.

[332A.04] REGISTRATION.

Subdivision 1.

Form.

Application for registration to operate as a debt management
services provider in this state must be made in writing to the commissioner, under oath, in
the form prescribed by the commissioner, and must contain:

(1) the full name of each principal of the entity applying;

(2) the address, which must not be a post office box, and the telephone number and,
if applicable, e-mail address, of the applicant;

(3) identification of the trust account required under section 332A.13;

(4) consent to the jurisdiction of the courts of this state;

(5) the name and address of the registered agent authorized to accept service of
process on behalf of the applicant or appointment of the commissioner as the applicant's
agent for purposes of accepting service of process;

(6) disclosure of:

(i) whether 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 involving any consumer fraud, false advertising, deceptive trade practices, or
similar consumer protection law;

(ii) any judgments, private or public litigation, tax liens, written complaints,
administrative actions, or investigations by any government agency against the applicant
or any officer, director, manager, or shareholder owning more than five percent interest
in the applicant, unresolved or otherwise, filed or otherwise commenced within the
preceding ten years;

(iii) whether the applicant or any person employed by the applicant has had a record
of having defaulted in the payment of money collected for others, including the discharge
of debts through bankruptcy proceedings; and

(iv) whether the applicant's license or registration to provide debt management
services in any other state has ever been revoked or suspended;

(7) a copy of the applicant's standard debt management services agreement that the
applicant intends to execute with debtors;

(8) proof of accreditation; and

(9) any other information and material as the commissioner may require.

Subd. 2.

Term and scope of registration.

The registration must remain in full force
and effect for one year or until it is surrendered by the registrant or revoked or suspended
by the commissioner. The registration is limited solely to the business of providing debt
management services.

Subd. 3.

Fees.

The registration application must be accompanied by payment of
$1,000 as a registration fee.

Subd. 4.

Bond.

The registration application must be accompanied by payment of
the premium for a surety bond in which the applicant shall be the obligor, in a sum to be
determined by the commissioner but not less than $5,000, and in which an insurance
company, which is duly authorized by the state of Minnesota to transact the business of
fidelity and surety insurance, shall be a surety. However, the commissioner may accept
a deposit in cash, or securities that may legally be purchased by savings banks or for
trust funds of an aggregate market value equal to the bond requirement, in lieu of the
surety bond. The cash or securities must be deposited with the commissioner of finance.
The commissioner may also require a fidelity bond in an appropriate amount covering
employees of any applicant. Each branch office or additional place of business in this state
of an applicant must be bonded as provided in this subdivision. In determining the bond
amount necessary for the maintenance of any office, whether it is a surety bond, fidelity
bond, or both, the commissioner shall consider the financial responsibility, experience,
character, and general fitness of the debt management services provider and its operators
and owners; the volume of business handled or proposed to be handled; the location of the
office and the geographical area served or proposed to be served; and other information the
commissioner may deem pertinent based upon past performance, previous examinations,
annual reports, and manner of business conducted in other states.

Subd. 5.

Condition of bond.

The bond must run to the state of Minnesota for the
use of the state and of any person or persons who may have a cause of action against the
obligor arising out of the obligor's activities as a debt management services provider to
a debtor domiciled in this state. The bond must be conditioned that the obligor will not
commit any fraudulent act and will faithfully conform to and abide by the provisions of
this chapter and of all rules lawfully made by the commissioner under this chapter and
pay to the state and to any such person or persons any and all money that may become
due or owing to the state or to such person or persons from the obligor under and by
virtue of this chapter.

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 the debt
management services agreement between the debtor and registrant, 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.

Subd. 7.

Registrant list.

The commissioner must maintain a list of registered debt
management services providers. The list must be made available to the public in written
form upon request and on the Department of Commerce Web site.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 48.

[332A.05] NONASSIGNMENT OF REGISTRATION.

A registration must not be transferred or assigned without the consent of the
commissioner.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 49.

[332A.06] RENEWAL OF REGISTRATION.

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

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 50.

[332A.07] OTHER DUTIES OF REGISTRANT.

Subdivision 1.

Requirement to update information.

A registrant must update any
information required by this chapter provided in its original or renewal application not
later than 90 days after the date the events precipitating the update occurred.

Subd. 2.

Inspection of debtor of registration.

Each registrant must maintain a
copy of its registration in its files. The registrant must allow a debtor, upon request, to
inspect the registration.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 51.

[332A.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
the applicant:

(1) has submitted an application required under section 332A.04 that contains
incorrect, misleading, incomplete, or materially untrue information. An application is
incomplete if it does not include all the information required in section 332A.04;

(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
protection law;

(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; or

(12) has used fraudulent, coercive, or dishonest practices, or demonstrated
incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 52.

[332A.09] SUSPENDING, REVOKING, OR REFUSING TO RENEW
REGISTRATION.

Subdivision 1.

Procedure.

The commissioner may revoke, suspend, or refuse
to renew any registration issued under this chapter, or may levy a civil penalty under
section 45.027, or any combination of actions, if the debt management services provider
or any controlling or affiliated person has committed any act or omission for which the
commissioner could have refused to issue an initial registration or renew an existing
registration. Revocation of or refusal to renew a registration must be upon notice and
hearing as prescribed in the Administrative Procedure Act, sections 14.57 to 14.69. The
notice must set a time for hearing before the commissioner not less than 20 nor more than
30 days after service of the notice, provided the registrant may waive the 20-day minimum.
The commissioner may, in the notice, suspend the registration for a period not to exceed 60
days. Unless the notice states that the registration is suspended, pending the determination
of the main issue, the registrant may continue to transact business until the final decision of
the commissioner. If the registration is suspended, the commissioner shall hold a hearing
and render a final determination within ten days of a request by the registrant. If the
commissioner fails to do so, the suspension shall terminate and be of no force or effect.

Subd. 2.

Notification of interested persons.

After the notice and hearing required
in subdivision 1, upon issuing an order suspending or revoking a registration or refusing to
renew a registration, the commissioner may notify all individuals who have contracts with
the affected registrant and all creditors who have agreed to a debt management services
plan that the registration has been revoked and that the order is subject to appeal.

Subd. 3.

Receiver for funds of sanctioned registrant.

When an order is issued
revoking or refusing to renew a registration, the commissioner may apply for, and the
district court must appoint, a receiver to temporarily or permanently receive the assets of
the registrant pending a final determination of the validity of the order.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 53.

[332A.10] WRITTEN DEBT MANAGEMENT SERVICES
AGREEMENT.

Subdivision 1.

Written agreement required.

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 the debtor. The registrant must
furnish the debtor with a copy of the signed contract upon execution.

Subd. 2.

Actions prior to written agreement.

No person may provide debt
management services for a debtor 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; and

(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.

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
the page:

(1) the fee amount to be paid by the debtor and whether the initial fee amount 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
agreement;

(2) a prominent statement describing the terms upon which the debtor may cancel
the contract as set forth in section 332A.11;

(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
services;

(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.

Subd. 5.

New debt management services agreements; modification of existing
agreements.

(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 initial 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 service,
must be in writing and signed by both parties. 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.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 54.

[332A.11] RIGHT TO CANCEL.

Subdivision 1.

Debtor's right to cancel.

A debtor has the right to cancel the debt
management services agreement without cause at any time upon ten days' written notice to
the debt management services provider. In the event of cancellation, the debt management
services provider must, within ten days of the cancellation, notify the debtor's creditors of
the cancellation and provide a refund of all unexpended funds paid by or for the debtor to
the debt management services provider.

Subd. 2.

Notice of debtor's right to cancel.

A debt management services
agreement must contain, on its face, in an easily readable typeface immediately 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."

Subd. 3.

Automatic termination.

Upon the payment of all listed debts and
fees, the debt management services agreement must automatically terminate, and all
unexpended funds paid by or for the debtor to the debt management services provider
must be immediately returned to the debtor.

Subd. 4.

Debt management services provider's right to cancel.

A debt
management services provider may cancel a debt management services agreement
with good cause upon 30 days' written notice to the debtor. Within ten days after the
cancellation, the debt management services provider must: (1) notify the debtor's creditors
of the cancellation; and (2) return to the debtor all unexpended funds paid by or for the
debtor.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 55.

[332A.12] BOOKS, RECORDS, AND INFORMATION.

Subdivision 1.

Records retention.

Every registrant must keep, and use in the
registrant's business, such books, accounts, and records, including electronic records, as
will enable the commissioner to determine whether the registrant is complying with this
chapter and of the rules, orders, and directives adopted by the commissioner under this
chapter. Every registrant must preserve such books, accounts, and records for at least six
years after making the final entry on any transaction recorded therein. Examinations of
the books, records, and method of operations conducted under the supervision of the
commissioner shall be done at the cost of the registrant. The cost must be assessed as
determined under section 46.131.

Subd. 2.

Statements to debtors.

Each registrant must maintain and must make
available records and accounts that will enable each debtor to ascertain the amounts
paid to the creditors of the debtor. A statement showing amounts received from the
debtor, disbursements to each creditor, amounts which any creditor has agreed to accept
as payment in full for any debt owed the creditor by the debtor, charges deducted by
the registrant, and such other information as the commissioner may prescribe, must be
furnished by the registrant to the debtor at least monthly and, in addition, upon any
cancellation or termination of the contract. In addition to the statements required by this
subdivision, each debtor must have reasonable access, without cost, by electronic or other
means, to information in the registrant's files applicable to the debtor. These statements,
records, and accounts must otherwise remain confidential except for duly authorized state
and government officials, the commissioner, the attorney general, the debtor, and the
debtor's representative and designees. Each registrant must prepare and retain in the file of
each debtor a written analysis of the debtor's income and expenses to substantiate that the
plan of payment is feasible and practicable.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 56.

[332A.13] FEES, PAYMENTS, AND CONSENT OF CREDITORS.

Subdivision 1.

Origination fee.

The registrant may charge a nonrefundable
origination fee of not more than $50, which may be retained by the registrant from the
initial amount paid by the debtor to the registrant.

Subd. 2.

Monthly maintenance fee.

The registrant may charge a periodic fee for
account maintenance or other purposes, but only if the fee is reasonable for the services
provided and does not exceed the lesser of 15 percent of the monthly payment amount or
$75.

Subd. 3.

Additional fees unauthorized.

A registrant may not impose any fee or
other charge or receive any funds or other payment other than the initial fee or monthly
maintenance fee authorized by this section.

Subd. 4.

Amount of periodic payments retained.

The registrant may retain as
payment for the fees authorized by this section no more than 15 percent of any periodic
payment made to the registrant by the debtor. The remaining 85 percent must be disbursed
to listed creditors under and in accordance with the debt management services agreement.
No fees or charges may be received or retained by the registrant for any handling of
recurring payments. Recurring payments include current rent, mortgage, utility, telephone,
maintenance as defined in section 518.27, child support, insurance premiums, and such
other payments as the commissioner may by rule prescribe.

Subd. 5.

Advance payments.

No fees or charges may be received or retained for
any payments by the debtor made more than the following number of days in advance
of the date specified in the debt management services agreement on which they are due:
(1) 42 days in the case of contracts requiring monthly payments; (2) 15 days in the case
of agreements requiring biweekly payments; or (3) seven days in the case of agreements
requiring weekly payments. For those agreements which do not require payments in
specified amounts, a payment is deemed an advance payment to the extent it exceeds
twice the average regular payment previously made by the debtor under that contract. This
subdivision does not apply when the debtor intends to use the advance payments to satisfy
future payment of obligations due within 30 days under the contract. This subdivision
supersedes any inconsistent provision of this chapter.

Subd. 6.

Consent of creditors.

A registrant must actively seek to obtain the consent
of all creditors to the debt management services plan set forth in the debt management
services agreement. Consent by a creditor may be express and in writing, or may be
evidenced by acceptance of a payment made under the debt management services plan
set forth in the contract. The registrant must notify the debtor within ten days after any
failure to obtain the required consent and of the debtor's right to cancel without penalty.
The notice must be in a form as the commissioner shall prescribe. Nothing contained in
this section is deemed to require the return of any origination fee and any fees earned by
the registrant prior to cancellation or default.

Subd. 7.

Withdrawal of creditor.

Whenever a creditor withdraws from a debt
management services plan, or refuses to participate in a debt management services plan,
the registrant must promptly notify the debtor of the withdrawal or refusal. In no case may
this notice be provided more than 15 days after the debt management services provider
learns of the creditor's decision to withdraw from or refuse to participate in a plan. This
notice must include the identity of the creditor withdrawing from the plan, the amount of
the monthly payment to that creditor, and the right of the debtor to cancel the agreement
under section 332A.11.

Subd. 8.

Payments held in trust.

The registrant must maintain a separate trust
account and deposit in the account all payments received from the moment that they are
received, except that the registrant may commingle the payment with the registrant's
own property or funds, but only to the extent necessary to ensure the maintenance of a
minimum balance if the financial institution at which the trust account is held requires
a minimum balance to avoid the assessment of fees or penalties for failure to maintain
a minimum balance. All disbursements, whether to the debtor or to the creditors of the
debtor, or to the registrant, must be made from such account.

Subd. 9.

Timely payment of creditors.

The registrant must disburse any funds paid
by or on behalf of a debtor to creditors of the consumer within 42 days after receipt of
the funds, or earlier if necessary to comply with the due date in the agreement between
the debtor and the creditor, unless the reasonable payment of one or more of the debtor's
obligations requires that the funds be held for a longer period so as to accumulate a sum
certain, or where the debtor's payment is returned for insufficient funds or other reason
that makes the withholding of such payments in the net interest of the debtor.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 57.

[332A.14] PROHIBITIONS.

A registrant shall not:

(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 a debtor to stop paying a creditor until a debt management services plan is
in place;

(4) 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;

(5) compromise any debts unless the prior written approval of the debtor has been
obtained to such compromise and unless such compromise inures solely to the benefit
of the debtor;

(6) 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 personal
property;

(7) 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;

(8) structure a debt management services agreement that would result in negative
amortization of any debt in the plan;

(9) engage in any unfair, deceptive, or unconscionable act or practice in connection
with any service provided to any debtor;

(10) 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;

(11) 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;

(12) 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;

(13) 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 services
plan;

(14) operate or employ a person who is an employee or owner of a collection agency
or process-serving business; or

(15) solicit, demand, collect, require, or attempt to require payment of a sum that the
registrant states, discloses, or advertises to be a voluntary contribution from the debtor.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 58.

[332A.16] ADVERTISEMENT OF DEBT MANAGEMENT SERVICES
PLANS.

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.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 59.

[332A.17] DEBT MANAGEMENT SERVICES AGREEMENT
RESCISSION.

Any debtor has the right to rescind any debt management services agreement with
a debt management services provider that commits a material violation of this chapter.
On rescission, all fees paid to the debt management services provider or any other person
other than creditors of the debtor must be returned to the debtor entering into the debt
management services agreement within ten days of rescission of the debt management
services agreement.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 60.

[332A.18] ENFORCEMENT; REMEDIES.

Subdivision 1.

Violation a deceptive practice.

A violation of any of the provisions
of this chapter is considered an unfair or deceptive trade practice under section 8.31,
subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in
the public interest.

Subd. 2.

Private right of action.

(a) A debt management services provider who
fails to comply with any of the provisions of this chapter is liable under this section in an
individual action for the sum of (i) actual, incidental, and consequential damages sustained
by the debtor as a result of the failure; and (ii) statutory damages of up to $1,000.

(b) A debt management services provider who fails to comply with any of the
provisions of this chapter is liable to the named plaintiffs under this section in a class
action for the amount that each named plaintiff could recover under paragraph (a), clause
(i), and to the other class members for such amount as the court may allow.

(c) In determining the amount of statutory damages, the court shall consider, among
other relevant factors:

(1) the frequency, nature, and persistence of noncompliance;

(2) the extent to which the noncompliance was intentional; and

(3) in the case of a class action, the number of debtors adversely affected.

(d) A plaintiff or class successful in a legal or equitable action under this section is
entitled to the costs of the action, plus reasonable attorney fees.

Subd. 3.

Injunctive relief.

A debtor may sue a debt management services provider
for temporary or permanent injunctive or other appropriate equitable relief to prevent
violations of any provision of this chapter. A court must grant injunctive relief on a
showing that the debt management services provider has violated any provision of this
chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to
prevail on allegations that the debt management services provider violated any provision
of this chapter.

Subd. 4.

Remedies cumulative.

The remedies provided in this section are
cumulative and do not restrict any remedy that is otherwise available. The provisions
of this chapter are not exclusive and are in addition to any other requirements, rights,
remedies, and penalties provided by law.

Subd. 5.

Public enforcement.

The attorney general shall enforce this chapter
under section 8.31.

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 61.

[332A.19] INVESTIGATION.

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

EFFECTIVE DATE.

This section is effective January 1, 2008.

Sec. 62. LICENSE RENEWAL EXTENSION.

The July 31, 2007, renewal date for mortgage originators is extended to October 30,
2007, because of the changes to the licensing requirements made by this article.

Sec. 63. DELAYED LICENSE RENEWAL DATE FOR REAL ESTATE
BROKERS AND SALESPERSONS.

The June 30, 2007, renewal date for licenses of real estate brokers and salespersons
is extended to August 31, 2007, due to the technology surcharge created in this act.

Sec. 64. REPEALER.

(a) Minnesota Statutes 2006, sections 46.043; 47.62, subdivision 5; and 58.08,
subdivision 1, are repealed.

(b) Minnesota Statutes 2006, sections 332.12; 332.13; 332.14; 332.15; 332.16;
332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 332.23; 332.24; 332.25; 332.26; 332.27;
332.28; and 332.29, are repealed effective January 1, 2008.