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SF 2096

2nd Unofficial Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to state government; appropriating money for activities of the Science
1.3Museum, the Zoological Board, the Departments of Commerce, Natural
1.4Resources, and Health, the Pollution Control Agency, the Public Utilities
1.5Commission, the Board of Water and Soil Resources, the Metropolitan Council,
1.6and the Minnesota Conservation Corps; providing for grants and fund transfers;
1.7modifying disposition of certain revenue; authorizing certain sales; modifying
1.8and creating certain accounts; modifying and establishing certain fees and
1.9surcharges; establishing an off-highway vehicle safety and conservation
1.10program; defining certain terms; providing for venison donation; providing for
1.11prairie establishment guidance; creating the Cuyuna Country State Recreation
1.12Area Citizens Advisory Council; restricting certain off-road vehicle trails;
1.13modifying state park permit requirements; modifying timber sale provisions;
1.14exempting certain exchanged land from the tax-forfeited land assurance fee;
1.15authorizing certain leases of tax-forfeited lands; modifying definition of public
1.16official; modifying agency service requirements; creating a grant program;
1.17designating a state wildlife management area; improving oversight of local
1.18government water management; modifying authority of watershed district board
1.19of managers and soil and water conservation board of supervisors; modifying
1.20provisions for wetland conservation; modifying requirements for ditch buffers;
1.21modifying provisions for individual sewage treatment systems; providing for
1.22civil enforcement; modifying provisions for regulating genetically engineered
1.23organisms; establishing requirements for acquisition of easements; modifying
1.24access to certain wetlands; modifying trail designation requirements; eliminating
1.25sunset of sustainable forest resources provisions; authorizing rulemaking;
1.26providing for voluntary termination of timber sale permits; modifying county
1.27environmental trust fund provisions; naming an island in Pelican Lake; modifying
1.28or adding provisions relating to financial institutions, investments of health
1.29savings accounts, mortgage originators, the Vehicle Protection Product Act,
1.30long-term care insurance, automobile insurance, an electronic licensing system
1.31and technology fees, allowable forms of collateral, securities regulation, charges
1.32billed by licensed health professionals, allocation of petroleum inspection fee
1.33for low-income weatherization assistance, delivery of home heating fuel, debt
1.34management services, the state energy city, energy savings, renewable energy
1.35research, a renewable hydrogen initiative, the Legislative Electric Energy Task
1.36Force, Clean Energy Resource Teams, landfill gas recovery, on-farm biogas
1.37recovery, nuisance liability of wind energy conversion systems, rural wind
1.38energy, petroleum violation escrow funds for K-12 school energy projects,
1.39renewable energy studies and reports, standards for hydrogen and fuel cells,
2.1hydrogen refueling stations, off-site renewable distributed generation, biofuel
2.2production permits, terrestrial and geologic carbon sequestration, dry cask
2.3storage at a nuclear power plant, utility charges and residential customers, the
2.4cold weather rule, a propane prepurchase program, and intervenor compensation
2.5for participants in proceedings before the Public Utilities Commission; requiring
2.6studies and reports; providing civil penalties; making technical and clarifying
2.7changes;amending Minnesota Statutes 2006, sections 10A.01, subdivision 35;
2.813.712, by adding a subdivision; 15.99, subdivision 3; 16A.531, subdivision
2.91a; 45.011, subdivision 1; 46.04, subdivision 1; 46.05; 46.131, subdivision 2;
2.1047.19; 47.59, subdivision 6; 47.60, subdivision 2; 47.62, subdivision 1; 47.75,
2.11subdivision 1; 48.15, subdivision 4; 58.04, subdivisions 1, 2; 58.05; 58.06,
2.12subdivision 2, by adding a subdivision; 58.08, subdivision 3; 58.10, subdivision
2.131; 60K.55, subdivision 2; 65B.44, subdivisions 2, 3, 4, 5; 65B.47, subdivision
2.147; 65B.54, subdivision 1, by adding a subdivision; 80A.28, subdivision 1;
2.1580A.65, subdivision 1; 82.24, subdivisions 1, 4; 82B.09, subdivision 1; 84.025,
2.16subdivision 9; 84.026, subdivision 1; 84.0272, by adding a subdivision; 84.0855,
2.17subdivisions 1, 2; 84.780; 84.927, subdivision 2; 84.963; 84D.02, by adding
2.18a subdivision; 84D.13, subdivision 7; 85.054, subdivision 12, by adding a
2.19subdivision; 86B.706, subdivision 2; 89.22, subdivision 2; 90.161, by adding
2.20a subdivision; 93.22, subdivision 1; 97A.055, subdivision 4; 97A.065, by
2.21adding a subdivision; 97A.133, by adding a subdivision; 97A.475, subdivision
2.227, by adding a subdivision; 97A.485, subdivision 7; 97C.081, subdivision
2.233; 103B.101, by adding a subdivision; 103C.321, by adding a subdivision;
2.24103D.325, by adding a subdivision; 103E.021, subdivisions 1, 2, 3, by adding a
2.25subdivision; 103E.315, subdivision 8; 103E.321, subdivision 1; 103E.701, by
2.26adding a subdivision; 103E.705, subdivisions 1, 2, 3; 103E.728, subdivision
2.272; 103G.222, subdivisions 1, 3; 103G.2241, subdivisions 1, 2, 3, 6, 9, 11;
2.28103G.2242, subdivisions 2, 2a, 9, 12, 15; 103G.2243, subdivision 2; 103G.235;
2.29103G.301, subdivision 2; 115.55, subdivisions 1, 2, 3, by adding a subdivision;
2.30116C.779, subdivision 2; 116C.92; 116C.94, subdivision 1; 116C.97, subdivision
2.312; 118A.03, subdivision 2; 148.102, by adding a subdivision; 216B.097,
2.32subdivisions 1, 3; 216B.098, subdivision 4; 216B.16, subdivisions 10, 15;
2.33216B.241, subdivision 6; 216B.812, subdivisions 1, 2; 216C.051, subdivisions 2,
2.349; 216C.41, subdivisions 1, 2, 3; 239.101, subdivision 3; 282.04, subdivision 1;
2.35325E.311, subdivision 6; 325N.01; 332.54, subdivision 7; Laws 1998, chapter
2.36389, article 16, section 31, subdivision 4, as amended; Laws 2003, chapter 128,
2.37article 1, section 169; Laws 2006, chapter 236, article 1, section 21; proposing
2.38coding for new law in Minnesota Statutes, chapters 1; 16C; 17; 45; 58; 60K;
2.3984; 84D; 85; 89; 97B; 103B; 103E; 216B; 216C; 325E; 561; proposing coding
2.40for new law as Minnesota Statutes, chapters 59C; 332A; repealing Minnesota
2.41Statutes 2006, sections 46.043; 47.62, subdivision 5; 58.08, subdivision 1;
2.4289A.11; 103G.2241, subdivision 8; 216B.095; 332.12; 332.13; 332.14; 332.15;
2.43332.16; 332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 332.23; 332.24; 332.25;
2.44332.26; 332.27; 332.28; 332.29; Minnesota Rules, parts 7831.0100; 7831.0200;
2.457831.0300; 7831.0400; 7831.0500; 7831.0600; 7831.0700; 7831.0800.
2.46BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.47ARTICLE 1
2.48ENVIRONMENT AND NATURAL RESOURCES
2.49APPROPRIATIONS

2.50
Section 1. SUMMARY OF APPROPRIATIONS.
2.51    The amounts shown in this section summarize direct appropriations, by fund, made
2.52in this article.
3.1
2008
2009
Total
3.2
General
$
134,588,000
$
137,139,000
$
271,727,000
3.3
3.4
State Government Special
Revenue
48,000
48,000
96,000
3.5
Environmental
61,425,000
61,622,000
123,047,000
3.6
Natural Resources
79,811,000
80,820,000
160,631,000
3.7
Game and Fish
90,073,000
92,032,000
182,105,000
3.8
Remediation
11,666,000
11,186,000
22,852,000
3.9
Permanent School
200,000
200,000
400,000
3.10
Total
$
377,811,000
$
383,047,000
$
760,858,000

3.11
Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
3.12    The sums shown in the columns marked "Appropriations" are appropriated to the
3.13agencies and for the purposes specified in this article. The appropriations are from the
3.14general fund, or another named fund, and are available for the fiscal years indicated
3.15for each purpose. The figures "2008" and "2009" used in this article mean that the
3.16appropriations listed under them are available for the fiscal year ending June 30, 2008, or
3.17June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
3.18year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
3.19year ending June 30, 2007, are effective the day following final enactment.
3.20
APPROPRIATIONS
3.21
Available for the Year
3.22
Ending June 30
3.23
2008
2009

3.24
Sec. 3. POLLUTION CONTROL AGENCY
3.25
Subdivision 1.Total Appropriation
$
100,271,000
$
99,989,000
3.26
Appropriations by Fund
3.27
2008
2009
3.28
General
27,232,000
27,233,000
3.29
3.30
State Government
Special Revenue
48,000
48,000
3.31
Environmental
61,425,000
61,622,000
3.32
Remediation
11,566,000
11,086,000
3.33The amounts that may be spent for each
3.34purpose are specified in the following
3.35subdivisions.
3.36
Subd. 2.Water
42,928,000
42,248,000
4.1
Appropriations by Fund
4.2
General
23,326,000
23,266,000
4.3
4.4
State Government
Special Revenue
48,000
48,000
4.5
Remediation
550,000
-0-
4.6
Environmental
19,004,000
18,934,000
4.7$2,348,000 the first year and $2,348,000
4.8the second year are for the clean water
4.9partnership program. Any balance remaining
4.10in the first year does not cancel and
4.11is available for the second year. This
4.12appropriation may be used for grants to
4.13local units of government for the purpose
4.14of restoring impaired waters listed under
4.15section 303(d) of the federal Clean Water
4.16Act in accordance with adopted total
4.17maximum daily loads (TMDL's), including
4.18implementation of approved clean water
4.19partnership diagnostic study work plans that
4.20will assist in restoration of such impaired
4.21waters.
4.22$2,324,000 the first year and $2,324,000
4.23the second year are for grants to delegated
4.24counties to administer the county feedlot
4.25program. The commissioner, in consultation
4.26with the Minnesota Association of County
4.27Feedlot Officers executive team, may use up
4.28to five percent of the annual appropriation
4.29for initiatives to enhance existing delegated
4.30county feedlot programs, information and
4.31education, or technical assistance to reduce
4.32feedlot-related pollution hazards. Any
4.33unexpended balance in the first year does not
4.34cancel but is available in the second year.
4.35$335,000 the first year and $335,000 the
4.36second year are for community technical
5.1assistance and education, including grants
5.2and technical assistance to communities for
5.3local and basinwide water quality protection.
5.4$405,000 the first year and $405,000 the
5.5second year are for individual sewage
5.6treatment system (ISTS) administration and
5.7grants. Of this amount, $86,000 each year
5.8is for assistance to counties through grants
5.9for ISTS program administration. Any
5.10unexpended balance in the first year does not
5.11cancel but is available in the second year.
5.12$480,000 the first year and $480,000 the
5.13second year are from the environmental
5.14fund to address the need for continued
5.15increased activity in the areas of new
5.16technology review, technical assistance
5.17for local governments, and enforcement
5.18under Minnesota Statutes, sections 115.55
5.19to 115.58, and to complete the requirements
5.20of Laws 2003, chapter 128, article 1, section
5.21165. Of this amount, $48,000 each year is for
5.22administration of individual septic tank fees.
5.23$375,000 the first year and $375,000 the
5.24second year are to monitor and analyze
5.25endocrine disruptors in surface waters in at
5.26least 20 additional sites. The data must be
5.27placed on the agency's Web site.
5.28$15,317,000 the first year and $15,317,000
5.29the second year are to implement the
5.30requirements of Minnesota Statutes, chapter
5.31114D. Of this amount, $6,317,000 each
5.32year is for completion of ten percent of the
5.33needed statewide assessments of surface
5.34water quality and trends and $9,000,000
5.35each year is to develop TMDL's and TMDL
6.1implementation plans for waters listed on
6.2the United States Environmental Protection
6.3Agency approved impaired waters list. The
6.4agency shall complete an average of ten
6.5percent of the TMDL's each year over the
6.6next ten years.
6.7$690,000 the first year and $690,000 the
6.8second year are from the environmental fund
6.9to provide regulatory services to the ethanol,
6.10mining, and other developing economic
6.11sectors. This is a onetime appropriation.
6.12$88,000 the first year is for the endocrine
6.13disruptors report required to be completed
6.14under article 2.
6.15$550,000 is appropriated in fiscal year
6.162008 from the remediation fund to the
6.17commissioner of the Pollution Control
6.18Agency for transfer to the commissioner
6.19of health to conduct an evaluation of point
6.20of use water treatment units at removing
6.21perfluorooctanoic acid, perfluorooctane
6.22sulfonate, and perfluorobutanoic acid from
6.23known concentrations of these compounds
6.24in drinking water. The evaluation shall be
6.25completed by December 31, 2007, and the
6.26commissioner of health may contract for
6.27services to complete the evaluation.
6.28By January 15, 2008, the commissioner shall
6.29amend agency rules and, where legislative
6.30action is necessary, provide recommendations
6.31to the house of representatives and senate
6.32divisions on environmental finance on
6.33water and air fee changes that will result in
6.34revenue to the environmental fund to pay for
7.1regulatory services to the ethanol, mining,
7.2and other developing economic sectors.
7.3Notwithstanding Minnesota Statutes, section
7.416A.28, the appropriations encumbered
7.5under contract on or before June 30, 2009,
7.6for clean water partnership, individual
7.7sewage treatment systems (ISTS), Minnesota
7.8River, total maximum daily loads (TMDL's),
7.9stormwater contracts or grants, and local and
7.10basinwide water quality protection contracts
7.11or grants in this subdivision are available
7.12until June 30, 2011.
7.13
Subd. 3.Air
10,623,000
10,890,000
7.14
Appropriations by Fund
7.15
Environmental
10,623,000
10,890,000
7.16Up to $150,000 the first year and $150,000
7.17the second year may be transferred from the
7.18environmental fund to the small business
7.19environmental improvement loan account
7.20established in Minnesota Statutes, section
7.21116.993.
7.22$200,000 the first year and $200,000 the
7.23second year are from the environmental fund
7.24for a monitoring program under Minnesota
7.25Statutes, section 116.454.
7.26$125,000 the first year and $125,000 the
7.27second year are from the environmental fund
7.28for monitoring ambient air for hazardous
7.29pollutants in the metropolitan area.
7.30$760,000 the first year and $760,000 the
7.31second year are from the environmental fund
7.32to provide regulatory services to the ethanol,
7.33mining, and other developing economic
7.34sectors. This is a onetime appropriation.
8.1
Subd. 4.Land
18,081,000
18,151,000
8.2
Appropriations by Fund
8.3
Environmental
7,065,000
7,065,000
8.4
Remediation
11,016,000
11,086,000
8.5All money for environmental response,
8.6compensation, and compliance in the
8.7remediation fund not otherwise appropriated
8.8is appropriated to the commissioners of the
8.9Pollution Control Agency and agriculture
8.10for purposes of Minnesota Statutes, section
8.11115B.20, subdivision 2, clauses (1), (2),
8.12(3), (6), and (7). At the beginning of each
8.13fiscal year, the two commissioners shall
8.14jointly submit an annual spending plan
8.15to the commissioner of finance and the
8.16house and senate chairs of environment and
8.17natural resources finance that maximizes the
8.18utilization of resources and appropriately
8.19allocates the money between the two
8.20departments. This appropriation is available
8.21until June 30, 2009.
8.22$3,616,000 the first year and $3,616,000
8.23the second year are transferred from the
8.24petroleum tank fund to the remediation fund
8.25for appropriation to the commissioner for
8.26purposes of the leaking underground storage
8.27tank program to protect the land.
8.28$252,000 the first year and $252,000 the
8.29second year are from the remediation fund to
8.30be transferred to the Department of Health
8.31for health assessments, drinking water
8.32advisories, and public information activities
8.33for areas contaminated by hazardous releases.
8.34
Subd. 5.Multimedia
4,879,000
4,911,000
9.1
Appropriations by Fund
9.2
General
2,288,000
2,320,000
9.3
Environmental
2,591,000
2,591,000
9.4$550,000 the first year and $550,000 the
9.5second year are from the environmental fund
9.6to provide regulatory services to the ethanol,
9.7mining, and other developing economic
9.8sectors. This is a onetime appropriation.
9.9Notwithstanding Minnesota Statutes, section
9.1016A.28, the appropriations encumbered
9.11under contract on or before June 30, 2009, for
9.12total maximum daily load (TMDL) contracts
9.13or grants are available until June 30, 2011.
9.14
Subd. 6.Environmental Assistance
22,142,000
22,142,000
9.15$14,000,000 each year is from the
9.16environmental fund for SCORE block grants
9.17to counties.
9.18Any unencumbered grant and loan balances
9.19in the first year do not cancel but are available
9.20for grants and loans in the second year.
9.21All money deposited in the environmental
9.22fund for the metropolitan solid waste landfill
9.23fee under Minnesota Statutes, section
9.24473.843, and not otherwise appropriated, is
9.25appropriated to the agency for the purposes
9.26of Minnesota Statutes, section 473.844.
9.27$119,000 the first year and $119,000 the
9.28second year are from the environmental
9.29fund for environmental assistance grants
9.30or loans under Minnesota Statutes, section
9.31115A.0716.
9.32$1,200,000 the first year and $1,200,000 the
9.33second year are from the environmental fund
9.34to retrofit school buses statewide, including
10.1buses for preschool children, and for loans to
10.2small trucking firms to install equipment to
10.3reduce fuel consumption. This is a onetime
10.4appropriation.
10.5Notwithstanding Minnesota Statutes, section
10.616A.28, the appropriations encumbered
10.7under contract on or before June 30,
10.82009, for environmental assistance grants
10.9awarded under Minnesota Statutes, section
10.10115A.0716, and for technical and research
10.11assistance under Minnesota Statutes,
10.12section 115A.152, technical assistance
10.13under Minnesota Statutes, section 115A.52,
10.14and pollution prevention assistance under
10.15Minnesota Statutes, section 115D.04, are
10.16available until June 30, 2011.
10.17
Subd. 7.Administrative Support
1,618,000
1,647,000
10.18The commissioner may transfer money from
10.19the environmental fund to the remediation
10.20fund as necessary for the purposes of the
10.21remediation fund under Minnesota Statutes,
10.22section 116.155, subdivision 2.

10.23
Sec. 4. NATURAL RESOURCES
10.24
Subdivision 1.Total Appropriation
$
245,711,000
$
250,870,000
10.25
Appropriations by Fund
10.26
2008
2009
10.27
General
80,587,000
82,778,000
10.28
Natural Resources
74,751,000
75,760,000
10.29
Game and Fish
90,073,000
92,032,000
10.30
Remediation
100,000
100,000
10.31
Permanent School
200,000
200,000
10.32The amounts that may be spent for each
10.33purpose are specified in the following
10.34subdivisions.
11.1
11.2
Subd. 2.Land and Mineral Resources
Management
11,461,000
11,448,000
11.3
Appropriations by Fund
11.4
General
6,347,000
6,406,000
11.5
Natural Resources
3,551,000
3,447,000
11.6
Game and Fish
1,363,000
1,395,000
11.7
Permanent School
200,000
200,000
11.8$475,000 the first year and $475,000 the
11.9second year are for iron ore cooperative
11.10research. Of this amount, $200,000 each year
11.11is from the minerals management account in
11.12the natural resources fund and $275,000 each
11.13year is from the general fund. $237,500 the
11.14first year and $237,500 the second year are
11.15available only as matched by $1 of nonstate
11.16money for each $1 of state money. The
11.17match may be cash or in-kind.
11.18$86,000 the first year and $86,000 the
11.19second year are for minerals cooperative
11.20environmental research, of which $43,000
11.21the first year and $43,000 the second year are
11.22available only as matched by $1 of nonstate
11.23money for each $1 of state money. The
11.24match may be cash or in-kind.
11.25$2,800,000 the first year and $2,696,000
11.26the second year are from the minerals
11.27management account in the natural resources
11.28fund for use as provided in Minnesota
11.29Statutes, section 93.2236, paragraph (c).
11.30$200,000 the first year and $200,000 the
11.31second year are from the state forest suspense
11.32account in the permanent school fund to
11.33accelerate land exchanges, land sales, and
11.34commercial leasing of school trust lands and
11.35to identify, evaluate, and lease construction
11.36aggregate located on school trust lands. This
12.1appropriation is to be used for securing
12.2maximum long-term economic return
12.3from the school trust lands consistent with
12.4fiduciary responsibilities and sound natural
12.5resources conservation and management
12.6principles.
12.7$15,000 the first year is for a report
12.8by February 1, 2008, to the house and
12.9senate committees with jurisdiction over
12.10environment and natural resources on
12.11proposed minimum legal and conservation
12.12standards that could be applied to
12.13conservation easements acquired with public
12.14money.
12.15$701,000 the first year and $701,000 the
12.16second year are to support the land records
12.17management system. Of this amount,
12.18$326,000 the first year and $326,000 the
12.19second year are from the game and fish fund
12.20and $375,000 the first year and $375,000 the
12.21second year are from the natural resources
12.22fund.
12.23
Subd. 3.Water Resources Management
12,931,000
13,116,000
12.24
Appropriations by Fund
12.25
General
12,651,000
12,836,000
12.26
Natural Resources
280,000
280,000
12.27$310,000 the first year and $310,000 the
12.28second year are for grants for up to 50
12.29percent of the cost of implementing the Red
12.30River mediation agreement.
12.31$65,000 the first year and $65,000 the
12.32second year are for a grant to the Mississippi
12.33Headwaters Board for up to 50 percent of
12.34the cost of implementing the comprehensive
13.1plan for the upper Mississippi within areas
13.2under the board's jurisdiction.
13.3$5,000 the first year and $5,000 the second
13.4year are for payment to the Leech Lake Band
13.5of Chippewa Indians to implement the band's
13.6portion of the comprehensive plan for the
13.7upper Mississippi.
13.8$200,000 the first year and $200,000 the
13.9second year are for the construction of ring
13.10dikes under Minnesota Statutes, section
13.11103F.161. The ring dikes may be publicly
13.12or privately owned. Any unencumbered
13.13balance does not cancel at the end of the
13.14first year and is available for the second
13.15year. If the appropriation in the first year is
13.16insufficient, the appropriation for the second
13.17year is available in the first year.
13.18$1,280,000 the first year and $1,280,000 the
13.19second year are to support the identification
13.20of impaired waters and develop plans to
13.21address those impairments, as required by the
13.22federal Clean Water Act. This is a onetime
13.23appropriation.
13.24
Subd. 4.Forest Management
41,148,000
41,930,000
13.25
Appropriations by Fund
13.26
General
22,858,000
23,273,000
13.27
Natural Resources
18,033,000
18,393,000
13.28
Game and Fish
257,000
264,000
13.29$7,217,000 the first year and $7,217,000
13.30the second year are for prevention,
13.31presuppression, and suppression costs of
13.32emergency firefighting and other costs
13.33incurred under Minnesota Statutes, section
13.3488.12. If the appropriation for either
13.35year is insufficient to cover all costs of
14.1presuppression and suppression, the amount
14.2necessary to pay for these costs during the
14.3biennium is appropriated from the general
14.4fund.
14.5By November 15 of each year, the
14.6commissioner of natural resources shall
14.7submit a report to the chairs of the house
14.8and senate committees and divisions having
14.9jurisdiction over environment and natural
14.10resources finance, identifying all firefighting
14.11costs incurred and reimbursements received
14.12in the prior fiscal year. These appropriations
14.13may not be transferred. Any reimbursement
14.14of firefighting expenditures made to the
14.15commissioner from any source other than
14.16federal mobilizations shall be deposited into
14.17the general fund.
14.18$17,983,000 the first year and $18,293,000
14.19the second year are from the forest
14.20management investment account in the
14.21natural resources fund for only the purposes
14.22specified in Minnesota Statutes, section
14.2389.039, subdivision 2.
14.24$780,000 the first year and $780,000 the
14.25second year are for the Forest Resources
14.26Council for implementation of the
14.27Sustainable Forest Resources Act.
14.28$350,000 the first year and $350,000 the
14.29second year are for the FORIST timber
14.30management information system, other
14.31information systems, and for increased
14.32forestry management. The amount in the
14.33second year is also available in the first year.
14.34$257,000 the first year and $264,000 the
14.35second year are from the game and fish
15.1fund to implement ecological classification
15.2systems (ECS) standards on forested
15.3landscapes. This appropriation is from
15.4revenue deposited in the game and fish fund
15.5under Minnesota Statutes, section 297A.94,
15.6paragraph (e), clause (1).
15.7$55,000 the first year and $55,000 the
15.8second year are to develop and implement
15.9a statewide information and education
15.10campaign regarding the proposed statewide
15.11ban on the transport, storage, or use of
15.12nonapproved firewood on state administered
15.13land.
15.14$75,000 the first year is to the Forest
15.15Resources Council for a task force on
15.16forest protection and $75,000 the second
15.17year is appropriated to the commissioner
15.18for grants to cities, counties, townships,
15.19special recreation areas, and park and
15.20recreation boards in cities of the first class
15.21for the identification, removal, disposal, and
15.22replacement of dead or dying shade trees
15.23lost to forest pests or disease. For purposes
15.24of this section, "shade tree" means a woody
15.25perennial grown primarily for aesthetic or
15.26environmental purposes with minimal to
15.27residual timber value. The commissioner
15.28shall consult with municipalities; park and
15.29recreation boards in cities of the first class;
15.30nonprofit organizations; and other interested
15.31parties in developing eligibility criteria.
15.32$50,000 the first year and $100,000 the
15.33second year are from the natural resources
15.34fund for forest road maintenance in support
15.35of all-terrain vehicle trails.
16.1
Subd. 5.Parks and Recreation Management
35,141,000
35,959,000
16.2
Appropriations by Fund
16.3
General
20,560,000
20,923,000
16.4
Natural Resources
14,581,000
15,036,000
16.5$640,000 the first year and $640,000 the
16.6second year are from the water recreation
16.7account in the natural resources fund for state
16.8park water access projects.
16.9$3,996,000 the first year and $3,996,000 the
16.10second year are from the natural resources
16.11fund for state park and recreation area
16.12operations. This appropriation is from the
16.13revenue deposited in the natural resources
16.14fund under Minnesota Statutes, section
16.15297A.94, paragraph (e), clause (2).
16.16$5,000 each year is for payment of expenses
16.17of the Cuyuna Country State Recreation Area
16.18Citizens Advisory Council.
16.19The commissioner of natural resources, in
16.20consultation with the local elected officials
16.21and citizens of Meeker County, shall develop
16.22a plan for Greenleaf Lake State Recreation
16.23Area. The commissioner shall submit the
16.24plan to the legislative committees with
16.25jurisdiction over state parks and capital
16.26investment by February 1, 2008.
16.27The appropriation in Laws 2003, chapter
16.28128, article 1, section 5, subdivision 6, from
16.29the water recreation account in the natural
16.30resources fund for a cooperative project with
16.31the United States Army Corps of Engineers
16.32to develop the Mississippi Whitewater Park
16.33is available until June 30, 2009.
16.34
Subd. 6.Trails and Waterways Management
29,942,000
30,147,000
17.1
Appropriations by Fund
17.2
General
2,528,000
2,548,000
17.3
Natural Resources
25,295,000
25,405,000
17.4
Game and Fish
2,119,000
2,194,000
17.5$8,424,000 the first year and $8,424,000
17.6the second year are from the snowmobile
17.7trails and enforcement account in the natural
17.8resources fund for snowmobile grants-in-aid.
17.9The additional money under this paragraph
17.10may be used for new grant-in-aid trails. Any
17.11unencumbered balance does not cancel at the
17.12end of the first year and is available for the
17.13second year.
17.14$1,140,000 the first year and $1,132,000 the
17.15second year are from the natural resources
17.16fund for off-highway vehicle grants-in-aid.
17.17Of this amount, $790,000 the first year
17.18and $882,000 the second year are from the
17.19all-terrain vehicle account; $150,000 each
17.20year is from the off-highway motorcycle
17.21account; and $200,000 the first year and
17.22$100,000 the second year are from the
17.23off-road vehicle account. Any unencumbered
17.24balance does not cancel at the end of the first
17.25year and is available for the second year.
17.26$261,000 the first year and $261,000 the
17.27second year are from the water recreation
17.28account in the natural resources fund for a
17.29safe harbor program on Lake Superior.
17.30$742,000 the first year and $760,000
17.31the second year are from the natural
17.32resources fund for state trail operations
17.33and maintenance. The money may be used
17.34for trail maintenance, signage, mapping,
17.35interpretation, native prairie restoration
18.1using best management practices, and
18.2maintenance of nonmotorized forest trails.
18.3This appropriation is from the revenue
18.4deposited in the natural resources fund
18.5under Minnesota Statutes, section 297A.94,
18.6paragraph (e), clause (2).
18.7$32,000 the first year and $107,000 the
18.8second year are from the game and fish fund
18.9and is added to the base for expenditures
18.10on water access sites according to the
18.11requirements of the federal sport and fish
18.12restoration program.
18.13
Subd. 7.Fish and Wildlife Management
67,072,000
68,394,000
18.14
Appropriations by Fund
18.15
General
3,255,000
3,255,000
18.16
Natural Resources
1,876,000
1,876,000
18.17
Game and Fish
61,941,000
63,263,000
18.18$410,000 the first year and $418,000 the
18.19second year are for resource population
18.20surveys in the 1837 treaty area. Of this
18.21amount, $274,000 the first year and $288,000
18.22the second year are from the game and fish
18.23fund.
18.24$8,061,000 the first year and $8,167,000
18.25the second year are from the heritage
18.26enhancement account in the game and
18.27fish fund for only the purposes specified
18.28in Minnesota Statutes, section 297A.94,
18.29paragraph (e), clause (1). Of this amount,
18.30$1,175,000 the first year and $1,175,000 the
18.31second year are for preserving, restoring, and
18.32enhancing grassland/wetland complexes on
18.33public lands.
18.34Notwithstanding Minnesota Statutes, section
18.3584.943, $13,000 the first year and $13,000
19.1the second year from the critical habitat
19.2private sector matching account may be used
19.3to publicize the critical habitat license plate
19.4match program.
19.5$8,000 the first year and $8,000 the second
19.6year are appropriated from the game and
19.7fish fund for transfer to the wild turkey
19.8management account for purposes specified
19.9in Minnesota Statutes, section 97A.075,
19.10subdivision 5.
19.11$108,000 the first year and $108,000 the
19.12second year are from the game and fish
19.13fund for costs associated with administering
19.14fishing contest permits.
19.15$182,000 the first year and $132,000 the
19.16second year are to accelerate wildlife health
19.17programs and to prevent the spread of
19.18disease from livestock and poultry to the
19.19wildlife population. $50,000 in the first
19.20year is for fencing cattle-feeding areas in
19.21bovine tuberculosis control zones, under the
19.22emergency deterrent materials assistance
19.23program in Minnesota Statutes, section
19.2497A.028, subdivision 3. This appropriation
19.25is available until June 30, 2009. $66,000 of
19.26this amount is permanent.
19.27$575,000 the first year and $575,000 the
19.28second year are for preserving, restoring, and
19.29enhancing grassland/wetland complexes on
19.30public lands.
19.31$150,000 the first year and $150,000 the
19.32second year are from the game and fish fund
19.33to expand the roadsides for wildlife program.
19.34$175,000 the first year and $175,000 the
19.35second year are appropriated from the game
20.1and fish fund to the commissioner of natural
20.2resources for grants to Let's Go Fishing
20.3of Minnesota to promote opportunities
20.4for fishing. The grants must be matched
20.5equally with cash or in-kind contributions
20.6from nonstate sources. This is a onetime
20.7appropriation.
20.8Notwithstanding Minnesota Statutes, section
20.916A.28, the appropriations encumbered
20.10under contract on or before June 30, 2009, for
20.11aquatic restoration grants and wildlife habitat
20.12grants are available until June 30, 2010.
20.13
Subd. 8.Ecological Services
14,201,000
15,404,000
20.14
Appropriations by Fund
20.15
General
6,831,000
7,934,000
20.16
Natural Resources
3,488,000
3,519,000
20.17
Game and Fish
3,882,000
3,951,000
20.18$1,192,000 the first year and $1,223,000 the
20.19second year are from the nongame wildlife
20.20management account in the natural resources
20.21fund for the purpose of nongame wildlife
20.22management. Notwithstanding Minnesota
20.23Statutes, section 290.431, $100,000 the first
20.24year and $100,000 the second year may be
20.25used for nongame information, education,
20.26and promotion.
20.27$1,612,000 the first year and $1,636,000
20.28the second year are from the heritage
20.29enhancement account in the game and
20.30fish fund for only the purposes specified
20.31in Minnesota Statutes, section 297A.94,
20.32paragraph (e), clause (1), on public lands.
20.33$2,765,000 in the first year and $3,985,000
20.34in the second year, of which $1,795,000 the
20.35first year and $1,795,000 the second year
21.1are from the invasive species account in the
21.2natural resources fund for law enforcement
21.3and water access inspection to prevent the
21.4spread of invasive species, grants to manage
21.5invasive plants in public waters, technical
21.6assistance to grant applicants for improving
21.7lake quality, and management of terrestrial
21.8invasive species on state-administered lands.
21.9Priority shall be given to preventing the
21.10spread of aquatic invertebrates. Of this
21.11amount, $250,000 the first year and $250,000
21.12the second year are for a zebra mussel pilot
21.13program. This is a onetime appropriation.
21.14An applicant for a grant to manage invasive
21.15plants in public waters must have a workable
21.16plan for improving water quality and
21.17reducing the need for additional treatment.
21.18Grants may not be made for chemicals that
21.19are likely endocrine disruptors. A plan to
21.20prevent the introduction of asian carp into
21.21Minnesota waters must be made available to
21.22the public by November 1, 2007.
21.23$125,000 the first year is to support a
21.24technical advisory committee and for land
21.25management units that manage grass lands
21.26in order to develop plans to optimize
21.27native prairie seed harvest and replanting
21.28on state-owned lands. The work must
21.29use best management practices with an
21.30outcome of ensuring the survival of the
21.31native prairie remaining in Minnesota and to
21.32estimate the value of the seeds. Maximizing
21.33seed harvest may include allowing seed
21.34producers to keep a portion of the seed as
21.35compensation for supplying equipment and
21.36labor. The Department of Natural Resources
22.1in cooperation with the Department of
22.2Agriculture and the Board of Water and
22.3Soil Resources shall establish the technical
22.4advisory committee which has the expertise
22.5to develop (1) criteria to identify public
22.6and private marginal lands which could be
22.7used to produce native prairie seeds of a
22.8local eco-type or restore native prairies that
22.9could be used to produce clean energy, (2)
22.10guidelines for production that ensure high
22.11carbon sequestration, protection of wildlife
22.12and waters, and minimization of inputs and
22.13that do not compromise the survival of the
22.14native prairie remaining in Minnesota, and
22.15(3) recommendations for incentives that will
22.16result in the production of native prairie seeds
22.17of a local eco-type or restore native prairies.
22.18In addition to agency members, the advisory
22.19committee shall have one member from
22.20each of two farm organizations, one member
22.21from a sustainable farmer organization, one
22.22member each from three rural economic
22.23development organizations, one member
22.24each from three environmental organizations,
22.25and one member each from three wildlife or
22.26conservation organizations. The technical
22.27committee shall work with the NextGen
22.28Energy Board to develop a clean energy
22.29program. A report on outcomes from the
22.30technical committee is due December 15,
22.312007, to the legislative finance chairs on
22.32environment and natural resources.
22.33$50,000 in the first year is for the
22.34commissioner, in consultation with the
22.35Environmental Quality Board, to report to
22.36the house and senate committees having
23.1jurisdiction over environmental policy
23.2and finance by February 1, 2008, on the
23.3Mississippi River critical area program. The
23.4report shall include the status of critical
23.5area plans, zoning ordinances, the number
23.6and types of revisions anticipated, and the
23.7nature and number of variances sought. The
23.8report shall include recommendations that
23.9adequately protect and manage the aesthetic
23.10integrity and natural environment of the river
23.11corridor.
23.12$1,500,000 the first year and $1,500,000 the
23.13second year are to support the identification
23.14of impaired waters and develop plans to
23.15address those impairments, as required by the
23.16federal Clean Water Act. This is a onetime
23.17appropriation.
23.18
Subd. 9.Enforcement
30,021,000
30,697,000
23.19
Appropriations by Fund
23.20
General
3,336,000
3,392,000
23.21
Natural Resources
7,163,000
7,320,000
23.22
Game and Fish
19,422,000
19,885,000
23.23
Remediation
100,000
100,000
23.24$100,000 each year is for a conservation
23.25officer position to be stationed at Mississippi
23.26Headwaters State Forest to work with local
23.27jurisdictions in enforcing state law along
23.28the Mississippi River from Lake Itasca
23.29downstream to Lake Bemidji and in the
23.30Bemidji region.
23.31$1,082,000 the first year and $1,082,000 the
23.32second year are from the water recreation
23.33account in the natural resources fund for
23.34grants to counties for boat and water safety.
24.1$100,000 the first year and $100,000 the
24.2second year are from the remediation fund
24.3for solid waste enforcement activities under
24.4Minnesota Statutes, section 116.073.
24.5$315,000 the first year and $315,000 the
24.6second year are from the snowmobile
24.7trails and enforcement account in the
24.8natural resources fund for grants to local
24.9law enforcement agencies for snowmobile
24.10enforcement activities.
24.11$1,164,000 the first year and $1,164,000
24.12the second year are from the heritage
24.13enhancement account in the game and
24.14fish fund for only the purposes specified
24.15in Minnesota Statutes, section 297A.94,
24.16paragraph (e), clause (1).
24.17$225,000 the first year and $225,000
24.18the second year are from the natural
24.19resources fund for grants to county law
24.20enforcement agencies for off-highway
24.21vehicle enforcement and public education
24.22activities based on off-highway vehicle use
24.23in the county. Of this amount, $213,000 each
24.24year is from the all-terrain vehicle account,
24.25$11,000 each year is from the off-highway
24.26motorcycle account, and $1,000 each year
24.27is from the off-road vehicle account. The
24.28county enforcement agencies may use
24.29money received under this appropriation
24.30to make grants to other local enforcement
24.31agencies within the county that have a high
24.32concentration of off-highway vehicle use. Of
24.33this appropriation, $25,000 each year is for
24.34administration of these grants.
25.1$15,000 the first year and $5,000 the second
25.2year are from the off-road vehicle account
25.3in the natural resources fund to establish
25.4the off-road vehicle environment and safety
25.5education and training program under
25.6Minnesota Statutes, section 84.8015.
25.7$50,000 the first year and $225,000 the
25.8second year are from the natural resources
25.9fund for grants to qualifying off-highway
25.10vehicle organizations to assist in safety and
25.11environmental education and monitoring
25.12trails on public lands. Of this appropriation,
25.13$25,000 each year is for administration of
25.14these grants.
25.15Overtime must be distributed to conservation
25.16officers at historical levels; however, a
25.17reasonable reduction or addition may be
25.18made to the officer's allocation, if justified,
25.19based on an individual officer's workload. If
25.20funding for enforcement is reduced because
25.21of an unallotment, the overtime bank may be
25.22reduced in proportion to reductions made in
25.23other areas of the budget.
25.24
Subd. 10.Operations Support
3,794,000
3,775,000
25.25
Appropriations by Fund
25.26
General
2,221,000
2,211,000
25.27
Natural Resources
484,000
484,000
25.28
Game and Fish
1,089,000
1,080,000
25.29$38,000 in the first year is from the game and
25.30fish fund for the study on the natural stands
25.31of wild rice required in article 2.
25.32$270,000 the first year and $270,000 the
25.33second year are from the natural resources
25.34fund for grants to be divided equally between
25.35the city of St. Paul for the Como Zoo
26.1and Conservatory and the city of Duluth
26.2for the Duluth Zoo. This appropriation
26.3is from the revenue deposited to the fund
26.4under Minnesota Statutes, section 297A.94,
26.5paragraph (e), clause (5).
26.6$55,000 in the first year and $7,000 in the
26.7second year are to be transferred to the
26.8Environmental Quality Board to fulfill the
26.9requirement of Minnesota Statutes, sections
26.10116C.92 and 116C.94.

26.11
26.12
Sec. 5. BOARD OF WATER AND SOIL
RESOURCES
$
22,369,000
$
22,728,000
26.13$4,102,000 the first year and $4,102,000 the
26.14second year are for natural resources block
26.15grants to local governments. The board may
26.16reduce the amount of the natural resources
26.17block grant to a county by an amount equal to
26.18any reduction in the county's general services
26.19allocation to a soil and water conservation
26.20district from the county's previous year
26.21allocation when the board determines that
26.22the reduction was disproportionate. Grants
26.23must be matched with a combination of local
26.24cash or in-kind contributions. The base grant
26.25portion related to water planning must be
26.26matched by an amount that would be raised
26.27by a levy under Minnesota Statutes, section
26.28103B.3369.
26.29$3,566,000 the first year and $3,566,000
26.30the second year are for grants requested
26.31by soil and water conservation districts for
26.32general purposes, nonpoint engineering,
26.33and implementation of the reinvest in
26.34Minnesota conservation reserve program.
26.35Upon approval of the board, expenditures
27.1may be made from these appropriations for
27.2supplies and services benefiting soil and
27.3water conservation districts. Any district
27.4requesting a grant under this paragraph
27.5shall create and maintain a Web page that
27.6publishes, at a minimum, its annual plan,
27.7annual report, annual audit, and annual
27.8budget, including membership dues and
27.9meeting notices and minutes.
27.10$3,250,000 the first year and $3,250,000
27.11the second year are for grants to soil and
27.12water conservation districts for cost-sharing
27.13contracts for erosion control and water
27.14quality management. Of this amount, at least
27.15$1,200,000 the first year and $1,200,000 the
27.16second year are for grants for cost-sharing
27.17contracts to establish and maintain vegetation
27.18buffers of restored native prairie and restored
27.19prairie using seeds of a local ecotype region.
27.20$300,000 the first year and $300,000 the
27.21second year are available to begin county
27.22cooperative weed management programs
27.23on natural lands and private lands enrolled
27.24in state and federal conservation programs
27.25and to restore native plants in selected
27.26invasive species management sites by
27.27providing local native seeds and plants
27.28to landowners for implementation. This
27.29appropriation is available until expended. If
27.30the appropriation in either year is insufficient,
27.31the appropriation in the other year is available
27.32for it. Notwithstanding Minnesota Statutes,
27.33section 103C.501, any balance in the board's
27.34cost-share program that remains from the
27.35fiscal year 2007 appropriation is available
27.36in an amount up to $2,000 for a grant to
28.1the Faribault Soil and Water Conservation
28.2District to pay for erosion repair on the Blue
28.3Earth River, and up to $40,000 is available for
28.4grants to soil and water conservation districts
28.5for Web site development and reporting; and
28.6$100,000 in fiscal years 2008 and 2009 is
28.7for evaluating and reporting on performance,
28.8financial, and activity information of local
28.9water management entities as provided for in
28.10article 2, section 37.
28.11The board shall develop a forestry practice
28.12docket for cost-share money. The board shall
28.13develop standards or policies for cost-share
28.14practices for the following purposes: (1)
28.15establishment and maintenance of vegetated
28.16buffers of restored prairie or restored native
28.17prairie using seeds of a local ecotype;
28.18(2) establishment of cooperative weed
28.19management programs on private natural
28.20lands and lands enrolled in state and federal
28.21conservation programs and restoration of
28.22native plants in selected invasive species
28.23management sites by providing local native
28.24seeds and plants to landowners; and (3)
28.25establishment of soil and water conservation
28.26and ecological improvement practices on
28.27private forest lands.
28.28$100,000 the first year and $100,000 the
28.29second year are for a grant to the Red
28.30River Basin Commission to develop a Red
28.31River basin plan and to coordinate water
28.32management activities in the states and
28.33provinces bordering the Red River. The
28.34unencumbered balance in the first year does
28.35not cancel but is available for the second
28.36year.
29.1$5,450,000 the first year and $5,450,000 the
29.2second year are for implementation of the
29.3Clean Water Legacy Act as follows:
29.4(1) $1,500,000 each year is for targeted
29.5nonpoint restoration cost-share and incentive
29.6payments, of which up to $1,400,000 each
29.7year is available for grants. Of this amount,
29.8$250,000 each year must be contracted for
29.9services with the Minnesota Conservation
29.10Corps. The grant funds are available until
29.11expended;
29.12(2) $2,000,000 each year is for targeted
29.13nonpoint restoration and protection and
29.14technical, compliance, and engineering
29.15assistance activities, of which up to
29.16$1,325,000 the first year and $1,700,000
29.17the second year are available for grants, of
29.18which $225,000 the first year is to inventory
29.19wetland mitigation opportunities and water
29.20quality and watershed improvement projects
29.21in a greater than 80 percent area and of
29.22which $150,000 the first year is to conduct a
29.23regionwide wetland mitigation siting analysis
29.24for greater than 80 percent areas. The
29.25$225,000 amount shall include an inventory
29.26of the wetland and water resources that have
29.27been developed on former mine lands and
29.28an analysis of the functions and values of
29.29those wetland and water resources. This is a
29.30onetime appropriation and is available until
29.31June 30, 2009. The $150,000 amount for
29.32analysis shall (i) evaluate wetland mitigation
29.33opportunities in each watershed and wetland
29.34bank service area, (ii) develop goals for
29.35maintaining water quality in the greater than
29.3680 percent areas, and (iii) identify wetland
30.1mitigation opportunities in other regions with
30.2a greater loss of wetlands or with impaired
30.3waters. This is a onetime appropriation and
30.4is available until June 30, 2009. A report on
30.5the analysis outcomes shall be given to the
30.6house and senate chairs of the environment
30.7and natural resources policy and finance
30.8committees by January 15, 2009;
30.9(3) $200,000 each year is for reporting
30.10and evaluating applied soil and water
30.11conservation practices;
30.12(4) $1,000,000 each year is for grants
30.13to implement county individual sewage
30.14treatment system programs. Of this
30.15amount, after a county has complied with
30.16requirements to adopt ordinances pursuant
30.17to Minnesota Statutes, section 115.55,
30.18subdivision 2, the county may request grants
30.19of up to $60,000 the first year and $60,000
30.20the second year to inventory properties with
30.21individual sewage treatment systems that
30.22are an imminent threat to public health or
30.23safety due to water discharges of untreated
30.24sewage, and require compliance under an
30.25applicable ordinance. The grant amount
30.26shall be proportional to the number of
30.27properties expected to be inventoried. Each
30.28county receiving an appropriation under
30.29this paragraph shall report the number of
30.30inspections and the number determined to be
30.31an imminent threat to public health or safety
30.32to the Pollution Control Agency by February
30.331 of each year;
31.1(5) $650,000 each year is for feedlot water
31.2quality grants for feedlots under 300 animal
31.3units where there are impaired waters; and
31.4(6) $100,000 each year is to the Minnesota
31.5River Basin Joint Powers Board, also known
31.6as the Minnesota River Board, for operating
31.7expenses to measure and report the results of
31.8projects in the 12 major watersheds within
31.9the Minnesota River basin.
31.10If the appropriations in clauses (1) to (6) in
31.11either year are insufficient, the appropriation
31.12in the other year is available for it. All of
31.13the money appropriated in clauses (1) to
31.14(6) as grants to local governments shall be
31.15administered through the Board of Water
31.16and Soil Resources' local water resources
31.17protection and management program under
31.18Minnesota Statutes, section 103B.3369.
31.19$140,000 the first year and $140,000
31.20the second year are for a grant to Area
31.21II, Minnesota River Basin Projects,
31.22for floodplain management, including
31.23administration of programs.
31.24$1,120,000 the first year and $1,060,000 the
31.25second year may be spent for the following
31.26purposes to support implementation of the
31.27Wetland Conservation Act: $500,000 each
31.28year is to make grants to local units of
31.29governments to improve response to major
31.30wetland violations; $500,000 each year is for
31.31staffing to provide adequate state oversight
31.32and technical support to local governments
31.33administering the Wetland Conservation Act;
31.34$60,000 each year is for staff to monitor and
31.35enforce wetland replacement and wetland
32.1bank sites; and $60,000 the first year is
32.2for rulemaking required by changes to the
32.3Wetland Conservation Act.
32.4$450,000 the first year and $800,000
32.5the second year are to implement
32.6recommendations of the Drainage Work
32.7Group to enhance public drainage and
32.8modernization as follows: $150,000 the first
32.9year is to develop guidelines for drainage
32.10records preservation and modernization;
32.11$500,000 the second year is for cost-share
32.12grants to local governments for public
32.13drainage records modernization; and
32.14$300,000 each year is to provide assistance
32.15to local drainage management officials, to
32.16facilitate the work of the Drainage Work
32.17Group, to staff a drainage assistance team,
32.18and to update the Minnesota Public Drainage
32.19Manual. All of the money appropriated in
32.20this paragraph as grants to local governments
32.21shall be administered through the Board
32.22of Water and Soil Resources' local water
32.23resources protection and management
32.24program under Minnesota Statutes, section
32.25103B.3369.
32.26In addition to other authorities, the Board
32.27of Water and Soil Resources may reduce,
32.28withhold, or redirect grants and other funding
32.29if the local water management entity has
32.30not corrected deficiencies as prescribed in a
32.31notice from the board within one year from
32.32the date of the notice.

32.33
Sec. 6. METROPOLITAN COUNCIL
$
8,620,000
$
8,620,000
32.34
Appropriations by Fund
32.35
2008
2009
33.1
General
4,050,000
4,050,000
33.2
Natural Resources
4,570,000
4,570,000
33.3$4,050,000 the first year and $4,050,000
33.4the second year are for metropolitan parks
33.5operations.
33.6$4,570,000 the first year and $4,570,000 the
33.7second year are from the natural resources
33.8fund for metropolitan area regional parks
33.9and trails maintenance and operations. This
33.10appropriation is from the revenue deposited
33.11in the natural resources fund under Minnesota
33.12Statutes, section 297A.94, paragraph (e),
33.13clause (3).

33.14
33.15
Sec. 7. MINNESOTA CONSERVATION
CORPS
$
840,000
$
840,000
33.16
Appropriations by Fund
33.17
2008
2009
33.18
General
350,000
350,000
33.19
Natural Resources
490,000
490,000
33.20The Minnesota Conservation Corps may
33.21receive money appropriated from the
33.22natural resources fund under this section
33.23only as provided in an agreement with the
33.24commissioner of natural resources.

33.25ARTICLE 2
33.26ENVIRONMENT AND NATURAL RESOURCES POLICY

33.27    Section 1. Minnesota Statutes 2006, section 10A.01, subdivision 35, is amended to
33.28read:
33.29    Subd. 35. Public official. "Public official" means any:
33.30    (1) member of the legislature;
33.31    (2) individual employed by the legislature as secretary of the senate, legislative
33.32auditor, chief clerk of the house, revisor of statutes, or researcher, legislative analyst, or
33.33attorney in the Office of Senate Counsel and Research or House Research;
34.1    (3) constitutional officer in the executive branch and the officer's chief administrative
34.2deputy;
34.3    (4) solicitor general or deputy, assistant, or special assistant attorney general;
34.4    (5) commissioner, deputy commissioner, or assistant commissioner of any state
34.5department or agency as listed in section 15.01 or 15.06, or the state chief information
34.6officer;
34.7    (6) member, chief administrative officer, or deputy chief administrative officer of a
34.8state board or commission that has either the power to adopt, amend, or repeal rules under
34.9chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
34.10    (7) individual employed in the executive branch who is authorized to adopt, amend,
34.11or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
34.12    (8) executive director of the State Board of Investment;
34.13    (9) deputy of any official listed in clauses (7) and (8);
34.14    (10) judge of the Workers' Compensation Court of Appeals;
34.15    (11) administrative law judge or compensation judge in the State Office of
34.16Administrative Hearings or referee in the Department of Employment and Economic
34.17Development;
34.18    (12) member, regional administrator, division director, general counsel, or operations
34.19manager of the Metropolitan Council;
34.20    (13) member or chief administrator of a metropolitan agency;
34.21    (14) director of the Division of Alcohol and Gambling Enforcement in the
34.22Department of Public Safety;
34.23    (15) member or executive director of the Higher Education Facilities Authority;
34.24    (16) member of the board of directors or president of Minnesota Technology, Inc.;
34.25    (17) member of the board of directors or executive director of the Minnesota State
34.26High School League;
34.27    (18) member of the Minnesota Ballpark Authority established in section 473.755; or
34.28    (19) citizen member of the Legislative-Citizen Commission on Minnesota
34.29Resources. ;
34.30    (20) manager of a watershed district or member of a watershed management
34.31organization; or
34.32    (21) supervisor of a soil and water conservation district.

34.33    Sec. 2. Minnesota Statutes 2006, section 15.99, subdivision 3, is amended to read:
34.34    Subd. 3. Application; extensions. (a) The time limit in subdivision 2 begins upon
34.35the agency's receipt of a written request containing all information required by law or by
35.1a previously adopted rule, ordinance, or policy of the agency, including the applicable
35.2application fee. If an agency receives a written request that does not contain all required
35.3information, the 60-day limit starts over only if the agency sends written notice within 15
35.4business days of receipt of the request telling the requester what information is missing.
35.5    (b) If a request relating to zoning, septic systems, watershed district review, soil and
35.6water conservation district review, or expansion of the metropolitan urban service area
35.7requires the approval of more than one state agency in the executive branch, the 60-day
35.8period in subdivision 2 begins to run for all executive branch agencies on the day a request
35.9containing all required information is received by one state agency. The agency receiving
35.10the request must forward copies to other state agencies whose approval is required.
35.11    (c) An agency response, including an approval with conditions, meets the 60-day
35.12time limit if the agency can document that the response was sent within 60 days of receipt
35.13of the written request. Failure to satisfy the conditions, if any, may be a basis to revoke
35.14or rescind the approval by the agency and will not give rise to a claim that the 60-day
35.15limit was not met.
35.16    (d) The time limit in subdivision 2 is extended if a state statute, federal law, or court
35.17order requires a process to occur before the agency acts on the request, and the time
35.18periods prescribed in the state statute, federal law, or court order make it impossible to
35.19act on the request within 60 days. In cases described in this paragraph, the deadline is
35.20extended to 60 days after completion of the last process required in the applicable statute,
35.21law, or order. Final approval of an agency receiving a request is not considered a process
35.22for purposes of this paragraph.
35.23    (e) The time limit in subdivision 2 is extended if: (1) a request submitted to a state
35.24agency requires prior approval of a federal agency; or (2) an application submitted to
35.25a city, county, town, school district, metropolitan or regional entity, or other political
35.26subdivision requires prior approval of a state or federal agency. In cases described in
35.27this paragraph, the deadline for agency action is extended to 60 days after the required
35.28prior approval is granted.
35.29    (f) An agency may extend the time limit in subdivision 2 before the end of the
35.30initial 60-day period by providing written notice of the extension to the applicant. The
35.31notification must state the reasons for the extension and its anticipated length, which may
35.32not exceed 60 days unless approved by the applicant.
35.33    (g) An applicant may by written notice to the agency request an extension of the
35.34time limit under this section.
35.35EFFECTIVE DATE.This section is effective the day following final enactment.

36.1    Sec. 3. Minnesota Statutes 2006, section 16A.531, subdivision 1a, is amended to read:
36.2    Subd. 1a. Revenues. The following revenues must be deposited in the
36.3environmental fund:
36.4    (1) all revenue from the motor vehicle transfer fee imposed under section 115A.908;
36.5    (2) all fees collected under section 116.07, subdivision 4d;
36.6    (3) all money collected by the Pollution Control Agency in enforcement matters
36.7as provided in section 115.073;
36.8    (4) all revenues from license fees for individual sewage treatment systems under
36.9section 115.56;
36.10    (5) all loan repayments deposited under section 115A.0716;
36.11    (6) all revenue from pollution prevention fees imposed under section 115D.12;
36.12    (7) all loan repayments deposited under section 116.994;
36.13    (8) all fees collected under section 116C.834;
36.14    (9) revenue collected from the solid waste management tax pursuant to chapter 297H;
36.15    (10) fees collected under section 473.844; and
36.16    (11) interest accrued on the fund; and
36.17    (12) money received in the form of gifts, grants, reimbursement, or appropriation
36.18from any source for any of the purposes provided in subdivision 2, except federal grants.

36.19    Sec. 4. [17.035] VENISON DISTRIBUTION AND REIMBURSEMENT.
36.20    Subdivision 1. Reimbursement. A meat processor holding a license under chapter
36.2128A may apply to the commissioner of agriculture for reimbursement of $70 towards the
36.22cost of processing a deer donated according to subdivision 1. The meat processor shall
36.23deliver the deer, processed into cuts or ground meat, to a charitable organization that is
36.24registered under chapter 309 and with the commissioner of agriculture and that operates
36.25a food assistance program. To request reimbursement, the processor shall submit an
36.26application, on a form prescribed by the commissioner of agriculture, the tag number
36.27under which the deer was taken, and a receipt for the deer from the charitable organization.
36.28    Subd. 2. Distribution. (a) The commissioner of agriculture shall ensure the
36.29equitable statewide distribution of processed deer by requiring the charitable organization
36.30to allocate and distribute processed deer according to the allocation formula used in the
36.31distribution of United States Department of Agriculture commodities under the federal
36.32emergency food assistance program. The charitable organization must submit quarterly
36.33reports to the commissioner on forms prescribed by the commissioner. The reports must
36.34include, but are not limited to, information on the amount of processed deer received and
36.35the organizations to which the meat was distributed.
37.1    (b) The commissioner of agriculture may adopt rules to implement this section.

37.2    Sec. 5. Minnesota Statutes 2006, section 84.025, subdivision 9, is amended to read:
37.3    Subd. 9. Professional services support account. The commissioner of natural
37.4resources may bill the various programs carried out by the commissioner for the costs of
37.5providing them with professional support services. Except as provided under section
37.689.421, receipts must be credited to a special account in the state treasury and are
37.7appropriated to the commissioner to pay the costs for which the billings were made.
37.8    The commissioner of natural resources shall submit to the commissioner of finance
37.9before the start of each fiscal year a work plan showing the estimated work to be done
37.10during the coming year, the estimated cost of doing the work, and the positions and fees
37.11that will be necessary. This account is exempted from statewide and agency indirect
37.12cost payments.

37.13    Sec. 6. [84.02] DEFINITIONS.
37.14    Subdivision 1. Definitions. For purposes of this chapter, the terms defined in this
37.15section shall have the meanings given them.
37.16    Subd. 2. Best management practice for native prairie restoration. "Best
37.17management practice for native prairie restoration" means using seeds collected from a
37.18native prairie within the same county or within 25 miles of the county's border, but not
37.19across the boundary of an ecotype region.
37.20    Subd. 3. Created grassland. "Created grassland" means a restoration using seeds
37.21or plants with origins outside of the state of Minnesota.
37.22    Subd. 4. Ecotype region. "Ecotype region" means the following ecological
37.23subsections and counties based on the Department of Natural Resources map, "County
37.24Landscape Groupings Based on Ecological Subsections," dated February 15, 2007.
37.25
Ecotype Region
Counties or portions thereof:
37.26
37.27
37.28
Rochester Plateau, Blufflands, and Oak
Savanna
Houston, Winona, Fillmore, Wabasha,
Goodhue, Mower, Freeborn, Steele,
Olmsted, Rice, Waseca, Dakota, Dodge
37.29
37.30
37.31
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
37.32
37.33
Inner Coteau and Coteau Moraines
Lincoln, Lyon, Pipestone, Rock, Murray,
Nobles, Jackson, Cottonwood
37.34
Red River Prairie (South)
Traverse, Wilkin, Clay, Becker
37.35
37.36
37.37
Red River Prairie (North) and Aspen
Parklands
Kittson, Roseau, Red Lake, Pennington,
Marshall, Clearwater, Mahnomen, Polk,
Norman
38.1
38.2
38.3
Minnesota River Prairie (North)
Big Stone, Pope, Stevens, Grant, Swift,
Chippewa, Meeker, Kandiyohi, Renville,
Lac qui Parle, Yellow Medicine
38.4
38.5
Minnesota River Prairie (South)
Nicollet, Redwood, Brown, Watonwan,
Martin, Faribault, Blue Earth, Sibley
38.6
38.7
Hardwood Hills
Douglas, Morrison, Otter Tail, Stearns,
Todd
38.8    Subd. 5. Native prairie. "Native prairie" means land that has never been plowed
38.9where native prairie vegetation originating from the site currently predominates or, if
38.10disturbed, is predominantly covered with native prairie vegetation that originated from the
38.11site. Unbroken pasture land used for livestock grazing can be considered native prairie if it
38.12has predominantly native vegetation originating from the site and conservation practices
38.13have maintained biological diversity.
38.14    Subd. 6. Native prairie species of a local ecotype. "Native prairie species of a local
38.15ecotype" means a genetically differentiated population of a species that has at least one
38.16trait (morphological, biochemical, fitness, or phenological) that is evolutionarily adapted
38.17to local environmental conditions, notably plant competitors, pathogens, pollinators, soil
38.18microorganisms, growing season length, climate, hydrology, and soil.
38.19    Subd. 7. Restored native prairie. "Restored native prairie" means a restoration
38.20using at least 25 representative and biologically diverse native prairie plant species of a
38.21local ecotype originating in the same county as the restoration site or within 25 miles of
38.22the county's border, but not across the boundary of an ecotype region.
38.23    Subd. 8. Restored prairie. "Restored prairie" means a restoration using at least
38.2425 representative and biologically diverse native prairie plant species originating from
38.25the same ecotype region in which the restoration occurs.

38.26    Sec. 7. Minnesota Statutes 2006, section 84.026, subdivision 1, is amended to read:
38.27    Subdivision 1. Contracts. The commissioner of natural resources is authorized
38.28to enter into contractual agreements with any public or private entity for the provision
38.29of statutorily prescribed natural resources services by the department. The contracts
38.30shall specify the services to be provided. Except as provided under section 89.421, funds
38.31generated in a contractual agreement made pursuant to this section shall be deposited in
38.32the special revenue fund and are appropriated to the department for purposes of providing
38.33the services specified in the contracts. The commissioner shall report revenues collected
38.34and expenditures made under this subdivision to the chairs of the Committees on Ways and
38.35Means in the house and Finance in the senate by January 1 of each odd-numbered year.

39.1    Sec. 8. Minnesota Statutes 2006, section 84.0272, is amended by adding a subdivision
39.2to read:
39.3    Subd. 5. Easement information. Parties to an easement purchased under the
39.4authority of the commissioner must:
39.5    (1) specify in the easement all provisions that are perpetual in nature;
39.6    (2) file the easement with the county recorder or registrar of titles in the county
39.7in which the land is located; and
39.8    (3) submit an electronic copy of the easement to the commissioner.

39.9    Sec. 9. Minnesota Statutes 2006, section 84.0855, subdivision 1, is amended to read:
39.10    Subdivision 1. Sales authorized; gift certificates. The commissioner may
39.11sell natural resources-related publications and maps; forest resource assessment
39.12products; federal migratory waterfowl, junior duck, and other federal stamps; and other
39.13nature-related merchandise, and may rent or sell items for the convenience of persons using
39.14Department of Natural Resources facilities or services. The commissioner may sell gift
39.15certificates for any items rented or sold. Notwithstanding section 16A.1285, a fee charged
39.16by the commissioner under this section may include a reasonable amount in excess of the
39.17actual cost to support Department of Natural Resources programs. The commissioner may
39.18advertise the availability of a program or item offered under this section.

39.19    Sec. 10. Minnesota Statutes 2006, section 84.0855, subdivision 2, is amended to read:
39.20    Subd. 2. Receipts; appropriation. Except as provided under section 89.421,
39.21money received by the commissioner under this section or to buy supplies for the use of
39.22volunteers, may be credited to one or more special accounts in the state treasury and is
39.23appropriated to the commissioner for the purposes for which the money was received.
39.24Money received from sales at the state fair shall be available for state fair related costs.
39.25Money received from sales of intellectual property and software products or services shall
39.26be available for development, maintenance, and support of software products and systems.

39.27    Sec. 11. Minnesota Statutes 2006, section 84.780, is amended to read:
39.2884.780 OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.
39.29    (a) The off-highway vehicle damage account is created in the natural resources fund.
39.30Money in the off-highway vehicle damage account is appropriated to the commissioner
39.31of natural resources for the repair or restoration of property damaged by the operation of
39.32off-highway vehicles in an unpermitted illegal area after August 1, 2003, and for the costs
39.33of administration for this section. Before the commissioner may make a payment from
40.1this account, the commissioner must determine whether the damage to the property was
40.2caused by the unpermitted illegal use of off-highway vehicles, that the applicant has made
40.3reasonable efforts to identify the responsible individual and obtain payment from the
40.4individual, and that the applicant has made reasonable efforts to prevent reoccurrence.
40.5By June 30, 2008, the commissioner of finance must transfer the remaining balance in the
40.6account to the off-highway motorcycle account under section 84.794, the off-road vehicle
40.7account under section 84.803, and the all-terrain vehicle account under section 84.927.
40.8The amount transferred to each account must be proportionate to the amounts received in
40.9the damage account from the relevant off-highway vehicle accounts.
40.10    (b) Determinations of the commissioner under this section may be made by written
40.11order and are exempt from the rulemaking provisions of chapter 14. Section 14.386
40.12does not apply.
40.13    (c) This section expires July 1, 2008 These funds are available until expended.

40.14    Sec. 12. [84.8045] RESTRICTIONS ON OFF-ROAD VEHICLE TRAILS.
40.15    Notwithstanding any provision of sections 84.797 to 84.805 or other law to the
40.16contrary, the commissioner shall not permit land administered by the commissioner in
40.17Beltrami, Cass, Crow Wing, and Hubbard Counties to be used or developed for trails
40.18primarily for off-road vehicles as defined in section 84.797, subdivision 7, except:
40.19    (1) upon approval by the legislature; or
40.20    (2) in designated off-road vehicle use areas.
40.21EFFECTIVE DATE.This section is effective the day following final enactment.

40.22    Sec. 13. [84.9011] OFF-HIGHWAY VEHICLE SAFETY AND CONSERVATION
40.23PROGRAM.
40.24    Subdivision 1. Creation. The commissioner of natural resources shall establish
40.25a program to promote the safe and responsible operation of off-highway vehicles in a
40.26manner that does not harm the environment. The commissioner shall coordinate the
40.27program through the regional offices of the Department of Natural Resources.
40.28    Subd. 2. Purpose. The purpose of the program is to encourage off-highway vehicle
40.29clubs to assist, on a volunteer basis, in improving, maintaining, and monitoring of trails on
40.30state forest land and other public lands.
40.31    Subd. 3. Agreements. (a) The commissioner shall enter into informal agreements
40.32with off-highway vehicle clubs for volunteer services to maintain, make improvements to,
40.33and monitor trails on state forest land and other public lands. The off-highway vehicle
41.1clubs shall promote the operation of off-highway vehicles in a safe and responsible manner
41.2that complies with the laws and rules that relate to the operation of off-highway vehicles.
41.3    (b) The off-highway vehicle clubs may provide assistance to the department in
41.4locating, recruiting, and training instructors for off-highway vehicle training programs.
41.5    (c) The commissioner may provide assistance to enhance the comfort and safety
41.6of volunteers and to facilitate the implementation and administration of the safety and
41.7conservation program.
41.8    Subd. 4. Worker displacement prohibited. The commissioner may not enter into
41.9any agreement that has the purpose of or results in the displacement of public employees
41.10by volunteers participating in the off-highway safety and conservation program under
41.11this section. The commissioner must certify to the appropriate bargaining agent that the
41.12work performed by a volunteer will not result in the displacement of currently employed
41.13workers or workers on seasonal layoff or layoff from a substantially equivalent position,
41.14including partial displacement such as reduction in hours of nonovertime work, wages, or
41.15other employment benefits.

41.16    Sec. 14. Minnesota Statutes 2006, section 84.927, subdivision 2, is amended to read:
41.17    Subd. 2. Purposes. Subject to appropriation by the legislature, money in the
41.18all-terrain vehicle account may only be spent for:
41.19    (1) the education and training program under section 84.925;
41.20    (2) administration, enforcement, and implementation of sections 84.773 to 84.929;
41.21    (3) acquisition, maintenance, and development of vehicle trails and use areas;
41.22    (4) grant-in-aid programs to counties and municipalities to construct and maintain
41.23all-terrain vehicle trails and use areas;
41.24    (5) grants-in-aid to local safety programs; and
41.25    (6) enforcement and public education grants to local law enforcement agencies.; and
41.26    (7) maintenance of minimum-maintenance forest roads according to section 89.71,
41.27subdivision 5, and county forest roads within state forest boundaries as defined under
41.28section 89.021.
41.29    The distribution of funds made available through grant-in-aid programs must be
41.30guided by the statewide comprehensive outdoor recreation plan.

41.31    Sec. 15. Minnesota Statutes 2006, section 84.963, is amended to read:
41.3284.963 PRAIRIE PLANT SEED PRODUCTION AREAS.
41.33    (a) The commissioner of natural resources shall study the feasibility of establishing
41.34private or public prairie plant seed production areas within prairie land locations. If
42.1prairie plant seed production is feasible, the commissioner may aid the establishment of
42.2production areas. The commissioner may enter cost-share or sharecrop agreements with
42.3landowners having easements for conservation purposes of ten or more years on their land
42.4to commercially produce prairie plant seed of Minnesota origin. The commissioner may
42.5only aid prairie plant seed production areas on agricultural land used to produce crops
42.6before December 23, 1985, and cropped three out of five years between 1981 and 1985.
42.7    (b) The commissioner shall compile, prepare, and electronically disseminate to
42.8the public prairie establishment guidance materials and resources. The resources must
42.9provide information and guidance on project planning, seed selection including ecotype
42.10and species mix, site preparation, seeding, maintenance, and technical service providers.
42.11The commissioner shall use actual prairie restoration projects under development on
42.12state-owned land to illustrate and demonstrate the practices described.

42.13    Sec. 16. Minnesota Statutes 2006, section 84D.02, is amended by adding a subdivision
42.14to read:
42.15    Subd. 7. Contracts for services for emergency invasive species prevention work;
42.16commissions to persons employed. The commissioner may contract for or accept the
42.17services of any persons whose aid is available, temporarily or otherwise, in emergency
42.18invasive species prevention work, either gratuitously or for compensation not in excess of
42.19the limits provided by law with respect to the employment of labor by the commissioner.
42.20The commissioner may issue a commission, or other written evidence of authority, to any
42.21person whose services are so arranged for and may thereby empower the person to act,
42.22temporarily or otherwise, in any other capacity, with powers and duties as may be specified
42.23in the commission or other written evidence of authority, but not in excess of the powers
42.24conferred by law. The commissioner of agriculture, under authority provided by law, shall
42.25cooperate with the commissioner in emergency control of invasive species prevention.

42.26    Sec. 17. Minnesota Statutes 2006, section 84D.13, subdivision 7, is amended to read:
42.27    Subd. 7. Satisfaction of civil penalties. A civil penalty is due and a watercraft
42.28license suspension is effective 30 days after issuance of the civil citation. A civil penalty
42.29collected under this section is payable to the commissioner and must be credited to the
42.30water recreation account invasive species account.

42.31    Sec. 18. [84D.15] INVASIVE SPECIES ACCOUNT.
42.32    Subdivision 1. Creation. The invasive species account is created in the state
42.33treasury in the natural resources fund.
43.1    Subd. 2. Receipts. Money received from surcharges on watercraft licenses under
43.2section 86B.415, subdivision 7, and civil penalties under section 84D.13 shall be deposited
43.3in the invasive species account. Each year, the commissioner of finance shall transfer from
43.4the game and fish fund to the invasive species account, the annual surcharge collected on
43.5nonresident fishing licenses under section 97A.475, subdivision 7, paragraph (b).
43.6    Subd. 3. Use of money in account. Money credited to the invasive species account
43.7in subdivision 2 shall be used for management of invasive species and implementation of
43.8this chapter as it pertains to invasive species, including control, public awareness, law
43.9enforcement, assessment and monitoring, management planning, and research.

43.10    Sec. 19. [85.0146] CUYUNA COUNTRY STATE RECREATION AREA;
43.11CITIZENS ADVISORY COUNCIL.
43.12    Subdivision 1. Advisory council created. The Cuyuna Country State Recreation
43.13Area Citizens Advisory Council is established. Membership on the advisory council
43.14shall include:
43.15    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers
43.16Board;
43.17    (2) a representative of the Croft Mine Historical Park Joint Powers Board;
43.18    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has
43.19worked as a miner in the local area;
43.20    (4) a representative of the Crow Wing County Board;
43.21    (5) an elected state official;
43.22    (6) a representative of the Grand Rapids regional office of the Department of Natural
43.23Resources;
43.24    (7) a designee of the Iron Range Resources and Rehabilitation Board;
43.25    (8) a designee of the local business community selected by the area chambers of
43.26commerce;
43.27    (9) a designee of the local environmental community selected by the Crow Wing
43.28County District 5 commissioner;
43.29    (10) a designee of a local education organization selected by the Crosby-Ironton
43.30School Board;
43.31    (11) a designee of one of the recreation area user groups selected by the Cuyuna
43.32Range Chamber of Commerce; and
43.33    (12) a member of the Cuyuna Country Heritage Preservation Society.
43.34    Subd. 2. Administration. (a) The advisory council must meet at least four times
43.35annually. The council shall elect a chair and meetings shall be at the call of the chair.
44.1    (b) Members of the advisory council shall serve as volunteers for two-year terms
44.2with the ability to be reappointed. Members shall accept no per diem.
44.3    (c) The state recreation area manager may attend the council meetings and advise
44.4the council of issues in management of the recreation area.
44.5    (d) Before a major decision is implemented in the Cuyuna Country State Recreation
44.6Area, the area manager must consult with the council and take into consideration any
44.7council comments or advice that may impact the major decision.

44.8    Sec. 20. Minnesota Statutes 2006, section 85.054, subdivision 12, is amended to read:
44.9    Subd. 12. Soudan Underground Mine State Park. A state park permit is not
44.10required and a fee may not be charged for motor vehicle entry or, parking at the visitor
44.11parking area of Soudan Underground Mine State Park, or for tours of the High Energy
44.12Physics Lab by supervised kindergarten through grade 12 school classes during the school
44.13year.

44.14    Sec. 21. Minnesota Statutes 2006, section 85.054, is amended by adding a subdivision
44.15to read:
44.16    Subd. 13. Cuyuna Country State Recreation Area. A state park permit is not
44.17required and a fee may not be charged for motor vehicle entry or parking at Croft Mine
44.18Historical Park and Portsmouth Mine Lake Overlook in Cuyuna Country State Recreation
44.19Area, except for overnight camping.

44.20    Sec. 22. Minnesota Statutes 2006, section 86B.706, subdivision 2, is amended to read:
44.21    Subd. 2. Money deposited in account. The following shall be deposited in the state
44.22treasury and credited to the water recreation account:
44.23    (1) fees and surcharges from titling and licensing of watercraft under this chapter;
44.24    (2) fines, installment payments, and forfeited bail according to section 86B.705,
44.25subdivision 2
;
44.26    (3) civil penalties according to section 84D.13;
44.27    (4) mooring fees and receipts from the sale of marine gas at state-operated or
44.28state-assisted small craft harbors and mooring facilities according to section 86A.21;
44.29    (5) (4) the unrefunded gasoline tax attributable to watercraft use under section
44.30296A.18 ; and
44.31    (6) (5) fees for permits issued to control or harvest aquatic plants other than wild
44.32rice under section 103G.615, subdivision 2.

45.1    Sec. 23. Minnesota Statutes 2006, section 89.22, subdivision 2, is amended to read:
45.2    Subd. 2. Receipts to natural resources special revenue fund. Fees collected under
45.3subdivision 1 shall be credited to a forest land use account in the natural resources fund
45.4the special revenue fund and are annually appropriated to the commissioner to recoup the
45.5costs of developing, operating, and maintaining facilities necessary for the specified uses
45.6in subdivision 1 or to prevent or mitigate resource impacts of those uses.
45.7EFFECTIVE DATE.This section is effective July 1, 2007, and applies to fees
45.8collected according to Minnesota Statutes, section 89.22, subdivision 1, after August
45.91, 2006.

45.10    Sec. 24. [89.421] FOREST RESOURCE ASSESSMENT PRODUCTS AND
45.11SERVICES ACCOUNT.
45.12    Subdivision 1. Creation. The forest resource assessment products and services
45.13account is created in the state treasury in the natural resources fund.
45.14    Subd. 2. Receipts. Money received from forest resource assessment product sales
45.15and services provided by the commissioner under sections 84.025, subdivision 9; 84.026;
45.16and 84.0855 shall be credited to the forest resource assessment products and services
45.17account. Forest resource assessment products and services include the sale of aerial
45.18photography, remote sensing, and satellite imagery products and services.
45.19    Subd. 3. Use of money in account. Money credited to the forest resource
45.20assessment products and services account under subdivision 2 is appropriated for fiscal
45.21years 2008 and 2009 to the commissioner and shall be used to maintain the staff and
45.22facilities producing the aerial photography, remote sensing, and satellite imagery products
45.23and services.

45.24    Sec. 25. [89.62] SHADE TREE PEST CONTROL; GRANT PROGRAM.
45.25    Subdivision 1. Grants. The commissioner may make grants to aid in the control of
45.26a shade tree pest. To be eligible, a grantee must have a pest control program approved
45.27by the commissioner that:
45.28    (1) defines tree ownership and who is responsible for the costs associated with
45.29control measures;
45.30    (2) defines the zone of infestation within which the control measures are to be
45.31applied;
45.32    (3) includes a tree inspector certified under section 89.63 and having the authority to
45.33enter and inspect private lands;
46.1    (4) has the means to enforce measures needed to limit the spread of shade tree
46.2pests; and
46.3    (5) provides that grant money received will be deposited in a separate fund to be
46.4spent only for the purposes authorized by this section.
46.5    Subd. 2. Grant eligibility. The following are eligible for grants under this section:
46.6    (1) a home rule charter or statutory city or a town that exercises municipal powers
46.7under section 368.01 or any general or special law;
46.8    (2) a special park district organized under chapter 398;
46.9    (3) a special-purpose park and recreation board;
46.10    (4) a soil and water conservation district;
46.11    (5) a county; or
46.12    (6) any other organization with the legal authority to enter into contractual
46.13agreements.
46.14    Subd. 3. Rules; applicability to municipalities. The rules and procedures adopted
46.15under this section by the commissioner apply in a municipality unless the municipality
46.16adopts an ordinance determined by the commissioner to be more stringent than the rules
46.17and procedures of the commissioner. The rules and procedures of the commissioner or
46.18the municipality apply to all state agencies, special purpose districts, and metropolitan
46.19commissions as defined in section 473.121, subdivision 5a, that own or control land
46.20adjacent to or within a zone of infestation.

46.21    Sec. 26. Minnesota Statutes 2006, section 90.161, is amended by adding a subdivision
46.22to read:
46.23    Subd. 4. Change of security. Prior to any harvest activity, or activities incidental
46.24to the preparation for harvest, a purchaser having posted a bond for 100 percent of the
46.25purchase price of a sale may request the release of the bond and the commissioner
46.26shall grant such release upon cash payment to the commissioner of the down payment
46.27requirement of the sale, plus interest.

46.28    Sec. 27. Minnesota Statutes 2006, section 93.22, subdivision 1, is amended to read:
46.29    Subdivision 1. Generally. (a) All payments under sections 93.14 to 93.285 shall
46.30be made to the Department of Natural Resources and shall be credited according to this
46.31section.
46.32    (a) If the lands or minerals and mineral rights covered by a lease are held by the state
46.33by virtue of an act of Congress, payments made under the lease shall be credited to the
46.34permanent fund of the class of land to which the leased premises belong.
47.1    (b) If a lease covers the bed of navigable waters, payments made under the lease
47.2shall be credited to the permanent school fund of the state.
47.3    (c) If the lands or minerals and mineral rights covered by a lease are held by the
47.4state in trust for the taxing districts, payments made under the lease shall be distributed
47.5annually on the first day of September as follows:
47.6    (1) 20 percent to the general fund; and
47.7    (2) 80 percent to the respective counties in which the lands lie, to be apportioned
47.8among the taxing districts interested therein as follows: county, three-ninths; town or city,
47.9two-ninths; and school district, four-ninths.
47.10    (d) Except as provided under this section and except where the disposition of
47.11payments may be otherwise directed by law, all payments shall be paid into the general
47.12fund of the state.
47.13    (b) Twenty percent of all payments under sections 93.14 to 93.285 shall be
47.14credited to the minerals management account in the natural resources fund as costs for
47.15the administration and management of state mineral resources by the commissioner of
47.16natural resources.
47.17    (c) The remainder of the payments shall be credited as follows:
47.18    (1) if the lands or minerals and mineral rights covered by a lease are held by the state
47.19by virtue of an act of Congress, payments made under the lease shall be credited to the
47.20permanent fund of the class of land to which the leased premises belong;
47.21    (2) if a lease covers the bed of navigable waters, payments made under the lease
47.22shall be credited to the permanent school fund of the state;
47.23    (3) if the lands or minerals and mineral rights covered by a lease are held by the state
47.24in trust for the taxing districts, payments made under the lease shall be distributed annually
47.25on the first day of September to the respective counties in which the lands lie, to be
47.26apportioned among the taxing districts interested therein as follows: county, three-ninths;
47.27town or city, two-ninths; and school district, four-ninths;
47.28    (4) if the lands or mineral rights covered by a lease became the absolute property of
47.29the state under the provisions of chapter 84A, payments made under the lease shall be
47.30distributed as follows: county containing the land from which the income was derived,
47.31five-eighths; and general fund of the state, three-eighths; and
47.32    (5) except as provided under this section and except where the disposition of
47.33payments may be otherwise directed by law, payments made under a lease shall be paid
47.34into the general fund of the state.

47.35    Sec. 28. Minnesota Statutes 2006, section 97A.055, subdivision 4, is amended to read:
48.1    Subd. 4. Game and fish annual reports. (a) By December 15 each year,
48.2the commissioner shall submit to the legislative committees having jurisdiction over
48.3appropriations and the environment and natural resources reports on each of the following:
48.4    (1) the amount of revenue from the following and purposes for which expenditures
48.5were made:
48.6    (i) the small game license surcharge under section 97A.475, subdivision 4;
48.7    (ii) the Minnesota migratory waterfowl stamp under section 97A.475, subdivision
48.85
, clause (1);
48.9    (iii) the trout and salmon stamp under section 97A.475, subdivision 10;
48.10    (iv) the pheasant stamp under section 97A.475, subdivision 5, clause (2); and
48.11    (v) the turkey stamp under section 97A.475, subdivision 5, clause (3); and
48.12    (vi) the deer license surcharge under section 97A.475, subdivision 3a;
48.13    (2) the amounts available under section 97A.075, subdivision 1, paragraphs (b) and
48.14(c), and the purposes for which these amounts were spent;
48.15    (3) money credited to the game and fish fund under this section and purposes for
48.16which expenditures were made from the fund;
48.17    (4) outcome goals for the expenditures from the game and fish fund; and
48.18    (5) summary and comments of citizen oversight committee reviews under
48.19subdivision 4b.
48.20    (b) The report must include the commissioner's recommendations, if any, for
48.21changes in the laws relating to the stamps and surcharge referenced in paragraph (a).

48.22    Sec. 29. Minnesota Statutes 2006, section 97A.065, is amended by adding a
48.23subdivision to read:
48.24    Subd. 6. Deer license surcharge. The surcharge collected under section 97A.475,
48.25subdivision 3a, shall be deposited in a special revenue account and is appropriated for fiscal
48.26years 2008 and 2009 to the commissioner for deer management, including for grants or
48.27payments to agencies, organizations, or individuals for assisting with the cost of processing
48.28deer taken for population management purposes for venison donation programs. None of
48.29the additional license fees shall be transferred to any other agency for administration of
48.30programs other than venison donation. If any money transferred by the commissioner is
48.31not used for a venison donation program, it shall be returned to the commissioner.

48.32    Sec. 30. Minnesota Statutes 2006, section 97A.133, is amended by adding a
48.33subdivision to read:
48.34    Subd. 66. Vermillion Highlands Wildlife Management Area, Dakota County.

49.1    Sec. 31. Minnesota Statutes 2006, section 97A.475, is amended by adding a
49.2subdivision to read:
49.3    Subd. 3a. Deer license surcharge. (a) Fees for annual resident and nonresident
49.4licenses to take deer by firearms or archery established under subdivisions 2, clauses (4),
49.5(5), (9), and (11), and 3, clauses (2), (3), and (7), must be increased by a surcharge of $1,
49.6except as provided under section 97A.065, subdivision 6. An additional commission may
49.7not be assessed on the surcharge and the following statement must be included in the
49.8annual deer hunting regulations: "The $1 deer license surcharge is being paid by hunters
49.9for deer management, including assisting with the costs of processing deer donated for
49.10charitable purposes."
49.11    (b) The commissioner shall report to the legislature on the participation in and
49.12effectiveness of the venison donation program by February 1, 2010.

49.13    Sec. 32. Minnesota Statutes 2006, section 97A.475, subdivision 7, is amended to read:
49.14    Subd. 7. Nonresident fishing. (a) Fees for the following licenses, to be issued
49.15to nonresidents, are:
49.16    (1) to take fish by angling, $34;
49.17    (2) to take fish by angling limited to seven consecutive days selected by the licensee,
49.18$24;
49.19    (3) to take fish by angling for a 72-hour period selected by the licensee, $20;
49.20    (4) to take fish by angling for a combined license for a family for one or both parents
49.21and dependent children under the age of 16, $46;
49.22    (5) to take fish by angling for a 24-hour period selected by the licensee, $8.50; and
49.23    (6) to take fish by angling for a combined license for a married couple, limited to
49.2414 consecutive days selected by one of the licensees, $35.
49.25    (b) A $2 surcharge shall be added to all nonresident fishing licenses, except licenses
49.26issued under paragraph (a), clause (5). An additional commission may not be assessed
49.27on this surcharge.
49.28EFFECTIVE DATE.This section is effective March 1, 2008.

49.29    Sec. 33. Minnesota Statutes 2006, section 97A.485, subdivision 7, is amended to read:
49.30    Subd. 7. Electronic licensing system commission. The commissioner shall retain
49.31for the operation of the electronic licensing system the commission established under
49.32section 84.027, subdivision 15, and issuing fees collected by the commissioner on all
49.33license fees collected, excluding:
49.34    (1) the small game surcharge; and
50.1    (2) the deer license surcharge; and
50.2    (3) $2.50 of the license fee for the licenses in section 97A.475, subdivisions 6,
50.3clauses (1)
, (2), and (4), 7, 8, 12, and 13.

50.4    Sec. 34. [97B.303] VENISON DONATIONS.
50.5    An individual who legally takes a deer may donate the deer, for distribution to
50.6charitable food assistance programs, to a meat processor that is licensed under chapter
50.728A. An individual donating a deer must supply the processor with the tag number under
50.8which the deer was taken.

50.9    Sec. 35. Minnesota Statutes 2006, section 97C.081, subdivision 3, is amended to read:
50.10    Subd. 3. Contests requiring a permit. (a) A person must have a permit from the
50.11commissioner to conduct a fishing contest that does not meet the criteria in subdivision 2.
50.12Permits shall be issued without a fee. The commissioner shall charge a fee for the permit
50.13that recovers the costs of issuing the permit and of monitoring the activities allowed by
50.14the permit. Receipts collected from this fee shall be credited to the game and fish fund.
50.15Notwithstanding section 16A.1283, the commissioner may, by written order published in
50.16the State Register, establish contest permit fees. The fees are not subject to the rulemaking
50.17provisions of chapter 14 and section 14.386 does not apply.
50.18    (b) If entry fees are over $25 per person, or total prizes are valued at more than
50.19$25,000, and if the applicant has either:
50.20    (1) not previously conducted a fishing contest requiring a permit under this
50.21subdivision; or
50.22    (2) ever failed to make required prize awards in a fishing contest conducted by
50.23the applicant, the commissioner may require the applicant to furnish the commissioner
50.24evidence of financial responsibility in the form of a surety bond or bank letter of credit in
50.25the amount of $25,000.
50.26    (c) The permit fee for any individual contest may not exceed the following amounts:
50.27    (1) $120 for an open water contest not exceeding 100 participants and without
50.28off-site weigh-in;
50.29    (2) $400 for an open water contest with more than 100 participants and without
50.30off-site weigh-in;
50.31    (3) $500 for an open water contest not exceeding 100 participants with off-site
50.32weigh-in;
50.33    (4) $1,000 for an open water contest with more than 100 participants with off-site
50.34weigh-in; or
51.1    (5) $120 for an ice fishing contest with more than 150 participants.

51.2    Sec. 36. Minnesota Statutes 2006, section 103B.101, is amended by adding a
51.3subdivision to read:
51.4    Subd. 12. Authority to issue penalty orders. The board may issue an order
51.5requiring violations to be corrected and administratively assessing monetary penalties for
51.6violations of this chapter and chapters 103C, 103D, 103E, 103F, and 103G, any rules
51.7adopted under those chapters, and any standards, limitations, or conditions established
51.8by the board.
51.9EFFECTIVE DATE.This section is effective the day following final enactment.

51.10    Sec. 37. [103B.102] LOCAL WATER MANAGEMENT ACCOUNTABILITY
51.11AND OVERSIGHT.
51.12    Subdivision 1. Findings; improving accountability and oversight. The legislature
51.13finds that a process is needed to monitor the performance and activities of local water
51.14management entities. The process should be preemptive so that problems can be identified
51.15early and systematically. Underperforming entities should be provided assistance and
51.16direction for improving performance in a reasonable time frame.
51.17    Subd. 2. Definitions. For the purposes of this section, "local water management
51.18entities" means watershed districts, soil and water conservation districts, metropolitan
51.19water management organizations, and counties operating separately or jointly in their
51.20role as local water management authorities under chapter 103B, 103C, 103D, or 103G
51.21and chapter 114D.
51.22    Subd. 3. Evaluation and report. The Board of Water and Soil Resources shall
51.23evaluate performance, financial, and activity information for each local water management
51.24entity. The board shall evaluate the entities' progress in accomplishing their adopted
51.25plans on a regular basis, but not less than once every five years. The board shall maintain
51.26a summary of local water management entity performance on the board's Web site.
51.27Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis
51.28of local water management entity performance to the chairs of the house and senate
51.29committees having jurisdiction over environment and natural resources policy.
51.30    Subd. 4. Corrective actions. (a) In addition to other authorities, the Board of Water
51.31and Soil Resources may, based on its evaluation in subdivision 3, reduce, withhold, or
51.32redirect grants and other funding if the local water management entity has not corrected
51.33deficiencies as prescribed in a notice from the board within one year from the date of
51.34the notice.
52.1    (b) The board may defer a decision on a termination petition filed under section
52.2103B.221, 103C.225, or 103D.271 for up to one year to conduct or update the evaluation
52.3under subdivision 3 or to communicate the results of the evaluation to petitioners or to
52.4local and state government agencies.

52.5    Sec. 38. Minnesota Statutes 2006, section 103C.321, is amended by adding a
52.6subdivision to read:
52.7    Subd. 6. Credit card use. The supervisors may authorize the use of a credit card
52.8by any soil and water conservation district officer or employee otherwise authorized
52.9to make a purchase on behalf of the soil and water conservation district. If a soil and
52.10water conservation district officer or employee makes a purchase by credit card that is not
52.11approved by the supervisors, the officer or employee is personally liable for the amount of
52.12the purchase. A purchase by credit card must otherwise comply with all statutes, rules,
52.13or soil and water conservation district policy applicable to soil and water conservation
52.14district purchases.

52.15    Sec. 39. Minnesota Statutes 2006, section 103D.325, is amended by adding a
52.16subdivision to read:
52.17    Subd. 4. Credit card use. The managers may authorize the use of a credit card
52.18by any watershed district officer or employee otherwise authorized to make a purchase
52.19on behalf of the watershed district. If a watershed district officer or employee makes a
52.20purchase by credit card that is not approved by the managers, the officer or employee is
52.21personally liable for the amount of the purchase. A purchase by credit card must otherwise
52.22comply with all statutes, rules, or watershed district policy applicable to watershed district
52.23purchases.

52.24    Sec. 40. Minnesota Statutes 2006, section 103E.021, subdivision 1, is amended to read:
52.25    Subdivision 1. Spoil banks must be spread and grass planted permanent
52.26vegetation established. In any proceeding to establish, construct, improve, or do any
52.27work affecting a public drainage system under any law that appoints viewers to assess
52.28benefits and damages, the authority having jurisdiction over the proceeding shall order
52.29spoil banks to be spread consistent with the plan and function of the drainage system. The
52.30authority shall order that permanent grass, other than a noxious weed, be planted on
52.31the banks ditch side slopes and on a strip that a permanent strip of perennial vegetation
52.32approved by the drainage authority be established on each side of the ditch. Preference
52.33should be given to planting native species of a local ecotype. The approved perennial
53.1vegetation shall not impede future maintenance of the ditch. The permanent strips of
53.2perennial vegetation shall be 16-1/2 feet in width measured outward from the top edge
53.3of the constructed channel resulting from the proceeding, or to the crown of the leveled
53.4spoil bank, whichever is the greater, on each side of the top edge of the channel of the
53.5ditch. except for an action by a drainage authority that results only in a redetermination of
53.6benefits and damages, for which the required width shall be 16-1/2 feet. Drainage system
53.7rights-of-way for the acreage and additional property required for the planting permanent
53.8strips must be acquired by the authority having jurisdiction.

53.9    Sec. 41. Minnesota Statutes 2006, section 103E.021, subdivision 2, is amended to read:
53.10    Subd. 2. Reseeding and harvesting grass perennial vegetation. The authority
53.11having jurisdiction over the repair and maintenance of the drainage system shall supervise
53.12all necessary reseeding. The permanent grass strips of perennial vegetation must be
53.13maintained in the same manner as other drainage system repairs. Harvest of the grass
53.14vegetation from the grass permanent strip in a manner not harmful to the grass vegetation
53.15or the drainage system is the privilege of the fee owner or assigns. The county drainage
53.16inspector shall establish rules for the fee owner and assigns to harvest the grass vegetation.

53.17    Sec. 42. Minnesota Statutes 2006, section 103E.021, subdivision 3, is amended to read:
53.18    Subd. 3. Agricultural practices prohibited. Agricultural practices, other than
53.19those required for the maintenance of a permanent growth of grass perennial vegetation,
53.20are not permitted on any portion of the property acquired for planting perennial vegetation.

53.21    Sec. 43. Minnesota Statutes 2006, section 103E.021, is amended by adding a
53.22subdivision to read:
53.23    Subd. 6. Incremental implementation of vegetated ditch buffer strips and side
53.24inlet controls. (a) Notwithstanding other provisions of this chapter requiring appointment
53.25of viewers and redetermination of benefits and damages, a drainage authority may
53.26implement permanent buffer strips of perennial vegetation approved by the drainage
53.27authority or side inlet controls, or both, adjacent to a public drainage ditch, where
53.28necessary to control erosion and sedimentation, improve water quality, or maintain the
53.29efficiency of the drainage system. Preference should be given to planting native species of
53.30a local ecotype. The approved perennial vegetation shall not impede future maintenance
53.31of the ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width
53.32measured outward from the top edge of the existing constructed channel. Drainage system
54.1rights-of-way for the acreage and additional property required for the permanent strips
54.2must be acquired by the authority having jurisdiction.
54.3    (b) A project under this subdivision shall be implemented as a repair according to
54.4section 103E.705, except that the drainage authority may appoint an engineer to examine
54.5the drainage system and prepare an engineer's repair report for the project.
54.6    (c) Damages shall be determined by the drainage authority, or viewers, appointed by
54.7the drainage authority, according to section 103E.315, subdivision 8. A damages statement
54.8shall be prepared, including an explanation of how the damages were determined for each
54.9property affected by the project, and filed with the auditor or watershed district. Within 30
54.10days after the damages statement is filed, the auditor or watershed district shall prepare
54.11property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2),
54.12(6), (7), and (8), and mail a copy of the property owner's report and damages statement to
54.13each owner of property affected by the proposed project.
54.14    (d) After a damages statement is filed, the drainage authority shall set a time, by
54.15order, not more than 30 days after the date of the order, for a hearing on the project. At
54.16least ten days before the hearing, the auditor or watershed district shall give notice by mail
54.17of the time and location of the hearing to the owners of property and political subdivisions
54.18likely to be affected by the project.
54.19    (e) The drainage authority shall make findings and order the repairs to be made if
54.20the drainage authority determines from the evidence presented at the hearing and by the
54.21viewers and engineer, if appointed, that the repairs are necessary for the drainage system
54.22and the costs of the repairs are within the limitations of section 103E.705.

54.23    Sec. 44. [103E.067] DITCH BUFFER STRIP ANNUAL REPORTING.
54.24    The drainage authority shall annually submit a report to the Board of Water and Soil
54.25Resources for the calendar year including:
54.26    (1) the number and types of actions for which viewers were appointed;
54.27    (2) the number of miles of buffer strips established according to section 103E.021;
54.28    (3) the number of drainage system inspections conducted; and
54.29    (4) the number of violations of section 103E.021 identified and enforcement actions
54.30taken.

54.31    Sec. 45. Minnesota Statutes 2006, section 103E.315, subdivision 8, is amended to read:
54.32    Subd. 8. Extent of damages. Damages to be paid may include:
54.33    (1) the fair market value of the property required for the channel of an open ditch
54.34and the permanent grass strip of perennial vegetation under section 103E.021;
55.1    (2) the diminished value of a farm due to severing a field by an open ditch;
55.2    (3) loss of crop production during drainage project construction; and
55.3    (4) the diminished productivity or land value from increased overflow.; and
55.4    (5) costs to restore a perennial vegetative cover or structural practice existing
55.5under a federal or state conservation program adjacent to the permanent drainage system
55.6right-of-way and damaged by the drainage project.

55.7    Sec. 46. Minnesota Statutes 2006, section 103E.321, subdivision 1, is amended to read:
55.8    Subdivision 1. Requirements. The viewers' report must show, in tabular form,
55.9for each lot, 40-acre tract, and fraction of a lot or tract under separate ownership that
55.10is benefited or damaged:
55.11    (1) a description of the lot or tract, under separate ownership, that is benefited or
55.12damaged;
55.13    (2) the names of the owners as they appear on the current tax records of the county
55.14and their addresses;
55.15    (3) the number of acres in each tract or lot;
55.16    (4) the number and value of acres added to a tract or lot by the proposed drainage of
55.17public waters;
55.18    (5) the damage, if any, to riparian rights;
55.19    (6) the damages paid for the permanent grass strip of perennial vegetation under
55.20section 103E.021;
55.21    (7) the total number and value of acres added to a tract or lot by the proposed
55.22drainage of public waters, wetlands, and other areas not currently being cultivated;
55.23    (8) the number of acres and amount of benefits being assessed for drainage of areas
55.24which before the drainage benefits could be realized would require a public waters work
55.25permit to work in public waters under section 103G.245 to excavate or fill a navigable
55.26water body under United States Code, title 33, section 403, or a permit to discharge into
55.27waters of the United States under United States Code, title 33, section 1344;
55.28    (9) the number of acres and amount of benefits being assessed for drainage of areas
55.29that would be considered conversion of a wetland under United States Code, title 16,
55.30section 3821, if the area was placed in agricultural production;
55.31    (10) the amount of right-of-way acreage required; and
55.32    (11) the amount that each tract or lot will be benefited or damaged.

55.33    Sec. 47. Minnesota Statutes 2006, section 103E.701, is amended by adding a
55.34subdivision to read:
56.1    Subd. 7. Restoration; disturbance or destruction by repair. If a drainage system
56.2repair disturbs or destroys a perennial vegetative cover or structural practice existing
56.3under a federal or state conservation program adjacent to the permanent drainage system
56.4right-of-way, the practice must be restored according to the applicable practice plan or
56.5as determined by the drainage authority, if a practice plan is not available. Restoration
56.6costs shall be paid by the drainage system.

56.7    Sec. 48. Minnesota Statutes 2006, section 103E.705, subdivision 1, is amended to read:
56.8    Subdivision 1. Inspection. After the construction of a drainage system has been
56.9completed, the drainage authority shall maintain the drainage system that is located in its
56.10jurisdiction, including grass the permanent strips of perennial vegetation under section
56.11103E.021 , and provide the repairs necessary to make the drainage system efficient. The
56.12drainage authority shall have the drainage system inspected on a regular basis by an
56.13inspection committee of the drainage authority or a drainage inspector appointed by the
56.14drainage authority. Open drainage ditches shall be inspected at a minimum of every five
56.15years when no violation of section 103E.021 is found and annually when a violation of
56.16section 103E.021 is found, until one year after the violation is corrected.

56.17    Sec. 49. Minnesota Statutes 2006, section 103E.705, subdivision 2, is amended to read:
56.18    Subd. 2. Grass Permanent strip of perennial vegetation inspection and
56.19compliance notice. (a) The drainage authority having jurisdiction over a drainage system
56.20must inspect the drainage system for violations of section 103E.021. If an inspection
56.21committee of the drainage authority or a drainage inspector determines that permanent
56.22grass strips of perennial vegetation are not being maintained in compliance with section
56.23103E.021 , a compliance notice must be sent to the property owner.
56.24    (b) The notice must state:
56.25    (1) the date the ditch was inspected;
56.26    (2) the persons making the inspection;
56.27    (3) that spoil banks are to be spread in a manner consistent with the plan and function
56.28of the drainage system and that the drainage system has acquired a grass permanent strip
56.2916-1/2 feet in width or to the crown of the spoil bank, whichever is greater of perennial
56.30vegetation, according to section 103E.021;
56.31    (4) the violations of section 103E.021;
56.32    (5) the measures that must be taken by the property owner to comply with section
56.33103E.021 and the date when the property must be in compliance; and
57.1    (6) that if the property owner does not comply by the date specified, the drainage
57.2authority will perform the work necessary to bring the area into compliance with section
57.3103E.021 and charge the cost of the work to the property owner.
57.4    (c) If a property owner does not bring an area into compliance with section 103E.021
57.5as provided in the compliance notice, the inspection committee or drainage inspector
57.6must notify the drainage authority.
57.7    (d) This subdivision applies to property acquired under section 103E.021.

57.8    Sec. 50. Minnesota Statutes 2006, section 103E.705, subdivision 3, is amended to read:
57.9    Subd. 3. Drainage inspection report. For each drainage system that the board
57.10designates and requires the drainage inspector to examine, the drainage inspector shall
57.11make a drainage inspection report in writing to the board after examining a drainage
57.12system, designating portions that need repair or maintenance of grass the permanent
57.13strips of perennial vegetation and the location and nature of the repair or maintenance.
57.14The board shall consider the drainage inspection report at its next meeting and may repair
57.15all or any part of the drainage system as provided under this chapter. The grass permanent
57.16strips of perennial vegetation must be maintained in compliance with section 103E.021.

57.17    Sec. 51. Minnesota Statutes 2006, section 103E.728, subdivision 2, is amended to read:
57.18    Subd. 2. Additional assessment for agricultural practices on grass permanent
57.19strip of perennial vegetation. (a) The drainage authority may, after notice and hearing,
57.20charge an additional assessment on property that has agricultural practices on or otherwise
57.21violates provisions related to the permanent grass strip of perennial vegetation acquired
57.22under section 103E.021.
57.23    (b) The drainage authority may determine the cost of the repair per mile of open
57.24ditch on the ditch system. Property that is in violation of the grass requirement shall be
57.25assessed a cost of 20 percent of the repair cost per open ditch mile multiplied by the length
57.26of open ditch in miles on the property in violation.
57.27    (c) After the amount of the additional assessment is determined and applied to the
57.28repair cost, the balance of the repair cost may be apportioned pro rata as provided in
57.29subdivision 1.

57.30    Sec. 52. Minnesota Statutes 2006, section 103G.222, subdivision 1, is amended to read:
57.31    Subdivision 1. Requirements. (a) Wetlands must not be drained or filled, wholly
57.32or partially, unless replaced by restoring or creating wetland areas of at least equal
57.33public value under a replacement plan approved as provided in section 103G.2242, a
58.1replacement plan under a local governmental unit's comprehensive wetland protection
58.2and management plan approved by the board under section 103G.2243, or, if a permit to
58.3mine is required under section 93.481, under a mining reclamation plan approved by the
58.4commissioner under the permit to mine. Mining reclamation plans shall apply the same
58.5principles and standards for replacing wetlands by restoration or creation of wetland areas
58.6that are applicable to mitigation plans approved as provided in section 103G.2242. Public
58.7value must be determined in accordance with section 103B.3355 or a comprehensive
58.8wetland protection and management plan established under section 103G.2243. Sections
58.9103G.221 to 103G.2372 also apply to excavation in permanently and semipermanently
58.10flooded areas of types 3, 4, and 5 wetlands.
58.11    (b) Replacement must be guided by the following principles in descending order
58.12of priority:
58.13    (1) avoiding the direct or indirect impact of the activity that may destroy or diminish
58.14the wetland;
58.15    (2) minimizing the impact by limiting the degree or magnitude of the wetland
58.16activity and its implementation;
58.17    (3) rectifying the impact by repairing, rehabilitating, or restoring the affected
58.18wetland environment;
58.19    (4) reducing or eliminating the impact over time by preservation and maintenance
58.20operations during the life of the activity;
58.21    (5) compensating for the impact by restoring a wetland; and
58.22    (6) compensating for the impact by replacing or providing substitute wetland
58.23resources or environments.
58.24    For a project involving the draining or filling of wetlands in an amount not exceeding
58.2510,000 square feet more than the applicable amount in section 103G.2241, subdivision 9,
58.26paragraph (a), the local government unit may make an on-site sequencing determination
58.27without a written alternatives analysis from the applicant.
58.28    (c) If a wetland is located in a cultivated field, then replacement must be
58.29accomplished through restoration only without regard to the priority order in paragraph
58.30(b), provided that a deed restriction is placed on the altered wetland prohibiting
58.31nonagricultural use for at least ten years.
58.32    (d) If a wetland is drained under section 103G.2241, subdivision 2, the local
58.33government unit may require a deed restriction that prohibits nonagricultural use for at
58.34least ten years unless the drained wetland is replaced as provided under this section. The
58.35local government unit may require the deed restriction if it determines the wetland area
58.36drained is at risk of conversion to a nonagricultural use within ten years based on the
59.1zoning classification, proximity to a municipality or full service road, or other criteria as
59.2determined by the local government unit.
59.3    (e) Restoration and replacement of wetlands must be accomplished in accordance
59.4with the ecology of the landscape area affected and ponds that are created primarily to
59.5fulfill stormwater management, and water quality treatment requirements may not be
59.6used to satisfy replacement requirements under this chapter unless the design includes
59.7pretreatment of runoff and the pond is functioning as a wetland.
59.8    (e) (f) Except as provided in paragraph (f) (g), for a wetland or public waters wetland
59.9located on nonagricultural land, replacement must be in the ratio of two acres of replaced
59.10wetland for each acre of drained or filled wetland.
59.11    (f) (g) For a wetland or public waters wetland located on agricultural land or in a
59.12greater than 80 percent area, replacement must be in the ratio of one acre of replaced
59.13wetland for each acre of drained or filled wetland.
59.14    (g) (h) Wetlands that are restored or created as a result of an approved replacement
59.15plan are subject to the provisions of this section for any subsequent drainage or filling.
59.16    (h) (i) Except in a greater than 80 percent area, only wetlands that have been
59.17restored from previously drained or filled wetlands, wetlands created by excavation in
59.18nonwetlands, wetlands created by dikes or dams along public or private drainage ditches,
59.19or wetlands created by dikes or dams associated with the restoration of previously drained
59.20or filled wetlands may be used in a statewide banking program established in rules adopted
59.21under section 103G.2242, subdivision 1. Modification or conversion of nondegraded
59.22naturally occurring wetlands from one type to another are not eligible for enrollment in a
59.23statewide wetlands bank.
59.24    (i) (j) The Technical Evaluation Panel established under section 103G.2242,
59.25subdivision 2
, shall ensure that sufficient time has occurred for the wetland to develop
59.26wetland characteristics of soils, vegetation, and hydrology before recommending that the
59.27wetland be deposited in the statewide wetland bank. If the Technical Evaluation Panel has
59.28reason to believe that the wetland characteristics may change substantially, the panel shall
59.29postpone its recommendation until the wetland has stabilized.
59.30    (j) (k) This section and sections 103G.223 to 103G.2242, 103G.2364, and
59.31103G.2365 apply to the state and its departments and agencies.
59.32    (k) (l) For projects involving draining or filling of wetlands associated with a new
59.33public transportation project, and for projects expanded solely for additional traffic
59.34capacity, public transportation authorities may purchase credits from the board at the cost
59.35to the board to establish credits. Proceeds from the sale of credits provided under this
59.36paragraph are appropriated to the board for the purposes of this paragraph.
60.1    (l) (m) A replacement plan for wetlands is not required for individual projects that
60.2result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction,
60.3or replacement of a currently serviceable existing state, city, county, or town public road
60.4necessary, as determined by the public transportation authority, to meet state or federal
60.5design or safety standards or requirements, excluding new roads or roads expanded solely
60.6for additional traffic capacity lanes. This paragraph only applies to authorities for public
60.7transportation projects that:
60.8    (1) minimize the amount of wetland filling or draining associated with the project
60.9and consider mitigating important site-specific wetland functions on-site;
60.10    (2) except as provided in clause (3), submit project-specific reports to the board, the
60.11Technical Evaluation Panel, the commissioner of natural resources, and members of the
60.12public requesting a copy at least 30 days prior to construction that indicate the location,
60.13amount, and type of wetlands to be filled or drained by the project or, alternatively,
60.14convene an annual meeting of the parties required to receive notice to review projects to
60.15be commenced during the upcoming year; and
60.16    (3) for minor and emergency maintenance work impacting less than 10,000 square
60.17feet, submit project-specific reports, within 30 days of commencing the activity, to the
60.18board that indicate the location, amount, and type of wetlands that have been filled
60.19or drained.
60.20    Those required to receive notice of public transportation projects may appeal
60.21minimization, delineation, and on-site mitigation decisions made by the public
60.22transportation authority to the board according to the provisions of section 103G.2242,
60.23subdivision 9
. The Technical Evaluation Panel shall review minimization and delineation
60.24decisions made by the public transportation authority and provide recommendations
60.25regarding on-site mitigation if requested to do so by the local government unit, a
60.26contiguous landowner, or a member of the Technical Evaluation Panel.
60.27    Except for state public transportation projects, for which the state Department of
60.28Transportation is responsible, the board must replace the wetlands, and wetland areas of
60.29public waters if authorized by the commissioner or a delegated authority, drained or filled
60.30by public transportation projects on existing roads.
60.31    Public transportation authorities at their discretion may deviate from federal and
60.32state design standards on existing road projects when practical and reasonable to avoid
60.33wetland filling or draining, provided that public safety is not unreasonably compromised.
60.34The local road authority and its officers and employees are exempt from liability for
60.35any tort claim for injury to persons or property arising from travel on the highway and
60.36related to the deviation from the design standards for construction or reconstruction under
61.1this paragraph. This paragraph does not preclude an action for damages arising from
61.2negligence in construction or maintenance on a highway.
61.3    (m) (n) If a landowner seeks approval of a replacement plan after the proposed
61.4project has already affected the wetland, the local government unit may require the
61.5landowner to replace the affected wetland at a ratio not to exceed twice the replacement
61.6ratio otherwise required.
61.7    (n) (o) A local government unit may request the board to reclassify a county or
61.8watershed on the basis of its percentage of presettlement wetlands remaining. After
61.9receipt of satisfactory documentation from the local government, the board shall change
61.10the classification of a county or watershed. If requested by the local government unit,
61.11the board must assist in developing the documentation. Within 30 days of its action to
61.12approve a change of wetland classifications, the board shall publish a notice of the change
61.13in the Environmental Quality Board Monitor.
61.14    (o) (p) One hundred citizens who reside within the jurisdiction of the local
61.15government unit may request the local government unit to reclassify a county or watershed
61.16on the basis of its percentage of presettlement wetlands remaining. In support of their
61.17petition, the citizens shall provide satisfactory documentation to the local government unit.
61.18The local government unit shall consider the petition and forward the request to the board
61.19under paragraph (n) (o) or provide a reason why the petition is denied.
61.20EFFECTIVE DATE.This section is effective the day following final enactment.

61.21    Sec. 53. Minnesota Statutes 2006, section 103G.222, subdivision 3, is amended to read:
61.22    Subd. 3. Wetland replacement siting. (a) Siting wetland replacement must follow
61.23this priority order:
61.24    (1) on site or in the same minor watershed as the affected wetland;
61.25    (2) in the same watershed as the affected wetland;
61.26    (3) in the same county as the affected wetland;
61.27    (4) for replacement by wetland banking, in the same wetland bank service area as
61.28the impacted wetland, except that impacts in a 50 to 80 percent area must be replaced in
61.29a 50 to 80 percent area and impacts in a less than 50 percent area must be replaced in a
61.30less than 50 percent area;
61.31    (5) for project specific replacement, in an adjacent watershed or county to the
61.32affected wetland, or for replacement by wetland banking, in an adjacent wetland bank
61.33service area, except that impacts in a 50 to 80 percent area must be replaced in a 50 to
61.3480 percent area and impacts in a less than 50 percent area must be replaced in a less
61.35than 50 percent area; and
62.1    (5) (6) statewide, only for wetlands affected in greater than 80 percent areas and for
62.2public transportation projects, except that wetlands affected in less than 50 percent areas
62.3must be replaced in less than 50 percent areas, and wetlands affected in the seven-county
62.4metropolitan area must be replaced at a ratio of two to one in: (i) the affected county or,
62.5(ii) in another of the seven metropolitan counties, or (iii) in one of the major watersheds
62.6that are wholly or partially within the seven-county metropolitan area, but at least one to
62.7one must be replaced within the seven-county metropolitan area.
62.8    (b) Notwithstanding paragraph (a), siting wetland replacement in greater than 80
62.9percent areas may follow the priority order under this paragraph: (1) by wetland banking
62.10after evaluating on-site replacement and replacement within the watershed; (2) replaced
62.11in an adjacent wetland bank service area if wetland bank credits are not reasonably
62.12available in the same wetland bank service area as the affected wetland, as determined
62.13by the local government unit or by a comprehensive inventory approved by the board;
62.14and (3) statewide.
62.15    (c) Notwithstanding paragraph (a), siting wetland replacement in the seven-county
62.16metropolitan area must follow the priority order under this paragraph: (1) in the affected
62.17county; (2) in another of the seven metropolitan counties; or (3) in one of the major
62.18watersheds that are wholly or partially within the seven-county metropolitan area, but at
62.19least one to one must be replaced within the seven-county metropolitan area.
62.20    (d) The exception in paragraph (a), clause (5) (6), does not apply to replacement
62.21completed using wetland banking credits established by a person who submitted a
62.22complete wetland banking application to a local government unit by April 1, 1996.
62.23    (c) (e) When reasonable, practicable, and environmentally beneficial replacement
62.24opportunities are not available in siting priorities listed in paragraph (a), the applicant
62.25may seek opportunities at the next level.
62.26    (d) (f) For the purposes of this section, "reasonable, practicable, and environmentally
62.27beneficial replacement opportunities" are defined as opportunities that:
62.28    (1) take advantage of naturally occurring hydrogeomorphological conditions and
62.29require minimal landscape alteration;
62.30    (2) have a high likelihood of becoming a functional wetland that will continue
62.31in perpetuity;
62.32    (3) do not adversely affect other habitat types or ecological communities that are
62.33important in maintaining the overall biological diversity of the area; and
62.34    (4) are available and capable of being done after taking into consideration cost,
62.35existing technology, and logistics consistent with overall project purposes.
63.1    (e) (g) Regulatory agencies, local government units, and other entities involved in
63.2wetland restoration shall collaborate to identify potential replacement opportunities within
63.3their jurisdictional areas.
63.4EFFECTIVE DATE.This section is effective the day following final enactment.

63.5    Sec. 54. Minnesota Statutes 2006, section 103G.2241, subdivision 1, is amended to
63.6read:
63.7    Subdivision 1. Agricultural activities. (a) A replacement plan for wetlands is
63.8not required for:
63.9    (1) activities in a wetland that was planted with annually seeded crops, was in a crop
63.10rotation seeding of pasture grass or legumes, or was required to be set aside to receive
63.11price support or other payments under United States Code, title 7, sections 1421 to 1469,
63.12in six of the last ten years prior to January 1, 1991;
63.13    (2) activities in a wetland that is or has been enrolled in the federal conservation
63.14reserve program under United States Code, title 16, section 3831, that:
63.15    (i) was planted with annually seeded crops, was in a crop rotation seeding, or was
63.16required to be set aside to receive price support or payment under United States Code,
63.17title 7, sections 1421 to 1469, in six of the last ten years prior to being enrolled in the
63.18program; and
63.19    (ii) has not been restored with assistance from a public or private wetland restoration
63.20program;
63.21    (3) activities in a wetland that has received a commenced drainage determination
63.22provided for by the federal Food Security Act of 1985, that was made to the county
63.23Agricultural Stabilization and Conservation Service office prior to September 19, 1988,
63.24and a ruling and any subsequent appeals or reviews have determined that drainage of the
63.25wetland had been commenced prior to December 23, 1985;
63.26    (4) activities in a type 1 wetland on agricultural land, except for bottomland
63.27hardwood type 1 wetlands, and activities in a type 2 or type 6 wetland that is less than two
63.28acres in size and located on agricultural land;
63.29    (1) activities in a wetland conducted as part of normal farming practices. For
63.30purposes of this clause, "normal farming practices" means farming, silvicultural, grazing,
63.31and ranching activities such as plowing, seeding, cultivating, and harvesting for the
63.32production of feed, food, fuel, fiber, and forest products, but does not include activities
63.33that result in the draining or filling of wetlands in whole or part;
63.34    (2) soil and water conservation practices approved by the soil and water conservation
63.35district, after review by the Technical Evaluation Panel;
64.1    (5) (3) aquaculture activities including pond excavation and construction and
64.2maintenance of associated access roads and dikes authorized under, and conducted in
64.3accordance with, a permit issued by the United States Army Corps of Engineers under
64.4section 404 of the federal Clean Water Act, United States Code, title 33, section 1344, but
64.5not including construction or expansion of buildings; or
64.6    (6) (4) wild rice production activities, including necessary diking and other activities
64.7authorized under a permit issued by the United States Army Corps of Engineers under
64.8section 404 of the federal Clean Water Act, United States Code, title 33, section 1344;.
64.9    (7) normal agricultural practices to control noxious or secondary weeds as defined
64.10by rule of the commissioner of agriculture, in accordance with applicable requirements
64.11under state and federal law, including established best management practices; and
64.12    (8) agricultural activities in a wetland that is on agricultural land:
64.13    (i) annually enrolled in the federal Agriculture Improvement and Reform Act of
64.141996 and is subject to United States Code, title 16, sections 3821 to 3823, in effect on
64.15January 1, 2000; or
64.16    (ii) subject to subsequent federal farm program restrictions that meet minimum
64.17state standards under this chapter and sections 103A.202 and 103B.3355 and that have
64.18been approved by the Board of Water and Soil Resources, the commissioners of natural
64.19resources and agriculture, and the Pollution Control Agency.
64.20    (b) Land enrolled in a federal farm program under paragraph (a), clause (8), is
64.21eligible for easement participation for those acres not already compensated under a federal
64.22program.
64.23    (c) The exemption under paragraph (a), clause (4), may be expanded to additional
64.24acreage, including types 1, 2, and 6 wetlands that are part of a larger wetland system, when
64.25the additional acreage is part of a conservation plan approved by the local soil and water
64.26conservation district, the additional draining or filling is necessary for efficient operation
64.27of the farm, the hydrology of the larger wetland system is not adversely affected, and
64.28wetlands other than types 1, 2, and 6 are not drained or filled.
64.29EFFECTIVE DATE.This section is effective the day following final enactment.

64.30    Sec. 55. Minnesota Statutes 2006, section 103G.2241, subdivision 2, is amended to
64.31read:
64.32    Subd. 2. Drainage. (a) For the purposes of this subdivision, "public drainage
64.33system" means a drainage system as defined in section 103E.005, subdivision 12, and any
64.34ditch or tile lawfully connected to the drainage system. If wetlands drained under this
64.35subdivision are converted to uses prohibited under paragraph (b), clause (2), during the
65.1ten-year period following drainage, the wetlands must be replaced according to section
65.2103G.222.
65.3    (b) A replacement plan is not required for draining of type 1 wetlands, or up to five
65.4acres of type 2 or 6 wetlands, in an unincorporated area on land that has been assessed
65.5drainage benefits for a public drainage system, provided that:
65.6    (1) during the 20-year period that ended January 1, 1992:
65.7    (i) there was an expenditure made from the drainage system account for the public
65.8drainage system;
65.9    (ii) the public drainage system was repaired or maintained as approved by the
65.10drainage authority; or
65.11    (iii) no repair or maintenance of the public drainage system was required under
65.12section 103E.705, subdivision 1, as determined by the public drainage authority; and
65.13    (2) the wetlands are not drained for conversion to:
65.14    (i) platted lots;
65.15    (ii) planned unit, commercial, or industrial developments; or
65.16    (iii) any development with more than one residential unit per 40 acres.
65.17If wetlands drained under this paragraph are converted to uses prohibited under clause
65.18(2) during the ten-year period following drainage, the wetlands must be replaced under
65.19section 103G.222.
65.20    (c) A replacement plan is not required for draining or filling of wetlands, except for
65.21draining types 3, 4, and 5 wetlands that have been in existence for more than 25 years,
65.22resulting from maintenance and repair of existing public drainage systems.
65.23    (d) A replacement plan is not required for draining or filling of wetlands, except
65.24for draining wetlands that have been in existence for more than 25 years, resulting from
65.25maintenance and repair of existing drainage systems other than public drainage systems.
65.26    (e) A replacement plan is not required for draining or filling of wetlands resulting
65.27from activities conducted as part of a public drainage system improvement project that
65.28received final approval from the drainage authority before July 1, 1991, and after July 1,
65.291986, if:
65.30    (1) the approval remains valid;
65.31    (2) the project remains active; and
65.32    (3) no additional drainage will occur beyond that originally approved.
65.33    (e) A replacement plan is not required for draining agricultural land that: (1) was
65.34planted with annually seeded crops before June 10, except for crops that are normally
65.35planted after that date, in eight out of the ten most recent years prior to the impact; (2)
65.36was in a crop rotation seeding of pasture grass or legumes in eight out of the ten most
66.1recent years prior to the impact; or (3) was enrolled in a state or federal land conservation
66.2program and met the requirements of clause (1) or (2) before enrollment.
66.3    (f) The public drainage authority may, as part of the repair, install control structures,
66.4realign the ditch, construct dikes along the ditch, or make other modifications as necessary
66.5to prevent drainage of the wetland.
66.6    (g) Wetlands of all types that would be drained as a part of a public drainage repair
66.7project are eligible for the permanent wetlands preserve under section 103F.516. The
66.8board shall give priority to acquisition of easements on types 3, 4, and 5 wetlands that have
66.9been in existence for more than 25 years on public drainage systems and other wetlands
66.10that have the greatest risk of drainage from a public drainage repair project.
66.11EFFECTIVE DATE.This section is effective the day following final enactment.

66.12    Sec. 56. Minnesota Statutes 2006, section 103G.2241, subdivision 3, is amended to
66.13read:
66.14    Subd. 3. Federal approvals. A replacement plan for wetlands is not required for:
66.15    (1) activities exempted from federal regulation under United States Code, title 33,
66.16section 1344(f), as in effect on January 1, 1991;
66.17    (2) activities authorized under, and conducted in accordance with, an applicable
66.18general permit issued by the United States Army Corps of Engineers under section 404
66.19of the federal Clean Water Act, United States Code, title 33, section 1344, except the
66.20nationwide permit in Code of Federal Regulations, title 33, section 330.5, paragraph (a),
66.21clauses (14), limited to when a new road crosses a wetland, and (26), as in effect on
66.22January 1, 1991; or
66.23    (3) activities authorized under the federal Clean Water Act, section 404, or the
66.24Rivers and Harbors Act, section 10, regulations that meet minimum state standards
66.25under this chapter and sections 103A.202 and 103B.3355 and that have been approved
66.26by the Board of Water and Soil Resources, the commissioners of natural resources and
66.27agriculture, and the Pollution Control Agency.
66.28EFFECTIVE DATE.This section is effective the day following final enactment.

66.29    Sec. 57. Minnesota Statutes 2006, section 103G.2241, subdivision 6, is amended to
66.30read:
66.31    Subd. 6. Utilities; public works. (a) A replacement plan for wetlands is not
66.32required for:
67.1    (1) placement, maintenance, repair, enhancement, or replacement of utility or
67.2utility-type service if:
67.3    (i) the impacts of the proposed project on the hydrologic and biological
67.4characteristics of the wetland have been avoided and minimized to the extent possible; and
67.5    (ii) the proposed project significantly modifies or alters less than one-half acre of
67.6wetlands;
67.7    (2) activities associated with routine maintenance of utility and pipeline
67.8rights-of-way, provided the activities do not result in additional intrusion into the wetland;
67.9    (3) alteration of a wetland associated with the operation, maintenance, or repair of
67.10an interstate pipeline within all existing or acquired interstate pipeline rights-of-way;
67.11    (4) emergency repair and normal maintenance and repair of existing public works,
67.12provided the activity does not result in additional intrusion of the public works into the
67.13wetland and does not result in the draining or filling, wholly or partially, of a wetland;
67.14    (5) normal maintenance and minor repair of structures causing no additional
67.15intrusion of an existing structure into the wetland, and maintenance and repair of private
67.16crossings that do not result in the draining or filling, wholly or partially, of a wetland; or
67.17    (6) repair and updating of existing individual sewage treatment systems as necessary
67.18to comply with local, state, and federal regulations.
67.19    (1) new placement or maintenance, repair, enhancement, or replacement of existing
67.20utility or utility-type service, including pipelines, if:
67.21    (i) the direct and indirect impacts of the proposed project have been avoided and
67.22minimized to the extent possible; and
67.23    (ii) the proposed project significantly modifies or alters less than one-half acre of
67.24wetlands;
67.25    (2) activities associated with operation, routine maintenance, or emergency repair of
67.26existing utilities and public work structures, including pipelines, provided the activities
67.27do not result in additional wetland intrusion or additional draining or filling of a wetland
67.28either wholly or partially; or
67.29    (3) repair and updating of existing individual sewage treatment systems necessary to
67.30comply with local, state, and federal regulations.
67.31    (b) For maintenance, repair, and replacement, the local government unit may issue
67.32a seasonal or annual exemption certification or the utility may proceed without local
67.33government unit certification if the utility is carrying out the work according to approved
67.34best management practices. Work of an emergency nature may proceed as necessary
67.35and any drain or fill activities shall be addressed with the local government unit after
67.36the emergency work has been completed.
68.1EFFECTIVE DATE.This section is effective the day following final enactment.

68.2    Sec. 58. Minnesota Statutes 2006, section 103G.2241, subdivision 9, is amended to
68.3read:
68.4    Subd. 9. De minimis. (a) Except as provided in paragraphs (b) and (c), a
68.5replacement plan for wetlands is not required for draining or filling the following amounts
68.6of wetlands as part of a project:
68.7    (1) 10,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and
68.8tamarack wetlands, outside of the shoreland wetland protection zone in a greater than
68.980 percent area;
68.10    (2) 5,000 2,500 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar
68.11and tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80
68.12percent area;
68.13    (3) 2,000 1,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland
68.14wetland protection zone in a less than 50 percent area;
68.15    (4) 400 100 square feet of wetland types not listed in clauses (1) to (3) outside of
68.16the building setback zone of the shoreland wetland protection zones in all counties; or
68.17    (5) 400 square feet of type 1, 2, 3, 4, 5, 6, 7, or 8 wetland types listed in clauses (1)
68.18to (3), in beyond the building setback zone, as defined in the local shoreland management
68.19ordinance, but within the shoreland wetland protection zone, except that. In a greater
68.20than 80 percent area, the local government unit may increase the de minimis amount
68.21up to 1,000 square feet in the shoreland protection zone in areas beyond the building
68.22setback if the wetland is isolated and is determined to have no direct surficial connection
68.23to the public water. To the extent that a local shoreland management ordinance is more
68.24restrictive than this provision, the local shoreland ordinance applies; or
68.25    (6) up to 20 square feet of wetland, regardless of type or location.
68.26    (b) The amounts listed in paragraph (a), clauses (1) to (5) (6), may not be combined
68.27on a project.
68.28    (c) This exemption no longer applies to a landowner's portion of a wetland when
68.29the cumulative area drained or filled of the landowner's portion since January 1, 1992, is
68.30the greatest of:
68.31    (1) the applicable area listed in paragraph (a), if the landowner owns the entire
68.32wetland;
68.33    (2) five percent of the landowner's portion of the wetland; or
68.34    (3) 400 square feet.
69.1    (d) This exemption may not be combined with another exemption in this section on
69.2a project.
69.3    (e) Property may not be divided to increase the amounts listed in paragraph (a).
69.4EFFECTIVE DATE.This section is effective the day following final enactment.

69.5    Sec. 59. Minnesota Statutes 2006, section 103G.2241, subdivision 11, is amended to
69.6read:
69.7    Subd. 11. Exemption conditions. (a) A person conducting an activity in a wetland
69.8under an exemption in subdivisions 1 to 10 shall ensure that:
69.9    (1) appropriate erosion control measures are taken to prevent sedimentation of
69.10the water;
69.11    (2) the activity does not block fish passage in a watercourse; and
69.12    (3) the activity is conducted in compliance with all other applicable federal,
69.13state, and local requirements, including best management practices and water resource
69.14protection requirements established under chapter 103H.
69.15    (b) An activity is exempt if it qualifies for any one of the exemptions, even though it
69.16may be indicated as not exempt under another exemption.
69.17    (c) Persons proposing to conduct an exempt activity are encouraged to contact the
69.18local government unit or the local government unit's designee for advice on minimizing
69.19wetland impacts.
69.20    (d) The board shall develop rules that address the application and implementation
69.21of exemptions and that provide for estimates and reporting of exempt wetland impacts,
69.22including those in section 103G.2241, subdivisions 2, 6, and 9.
69.23EFFECTIVE DATE.This section is effective the day following final enactment.

69.24    Sec. 60. Minnesota Statutes 2006, section 103G.2242, subdivision 2, is amended to
69.25read:
69.26    Subd. 2. Evaluation. (a) Questions concerning the public value, location, size,
69.27or type of a wetland shall be submitted to and determined by a Technical Evaluation
69.28Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of
69.29a technical professional employee of the board, a technical professional employee of
69.30the local soil and water conservation district or districts, a technical professional with
69.31expertise in water resources management appointed by the local government unit, and
69.32a technical professional employee of the Department of Natural Resources for projects
69.33affecting public waters or wetlands adjacent to public waters. The panel shall use the
70.1"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987),
70.2including updates, supplementary guidance, and replacements, if any, "Wetlands of
70.3the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition),
70.4and "Classification of Wetlands and Deepwater Habitats of the United States" (1979
70.5edition). The panel shall provide the wetland determination and recommendations on
70.6other technical matters to the local government unit that must approve a replacement
70.7plan, wetland banking plan, exemption determination, no-loss determination, or wetland
70.8boundary or type determination and may recommend approval or denial of the plan. The
70.9authority must consider and include the decision of the Technical Evaluation Panel in their
70.10approval or denial of a plan or determination.
70.11    (b) Persons conducting wetland or public waters boundary delineations or type
70.12determinations are exempt from the requirements of chapter 326. By January 15, 2001,
70.13the board, in consultation with the Minnesota Association of Professional Soil Scientists,
70.14the University of Minnesota, and the Wetland Delineators' Association, shall submit a plan
70.15for a professional wetland delineator certification program to the legislature. The board
70.16may develop a professional wetland delineator certification program.
70.17EFFECTIVE DATE.This section is effective the day following final enactment.

70.18    Sec. 61. Minnesota Statutes 2006, section 103G.2242, subdivision 2a, is amended to
70.19read:
70.20    Subd. 2a. Wetland boundary or type determination. (a) A landowner may apply
70.21for a wetland boundary or type determination from the local government unit. The
70.22landowner applying for the determination is responsible for submitting proof necessary
70.23to make the determination, including, but not limited to, wetland delineation field data,
70.24observation well data, topographic mapping, survey mapping, and information regarding
70.25soils, vegetation, hydrology, and groundwater both within and outside of the proposed
70.26wetland boundary.
70.27    (b) A local government unit that receives an application under paragraph (a) may
70.28seek the advice of the Technical Evaluation Panel as described in subdivision 2, and, if
70.29necessary, expand the Technical Evaluation Panel. The local government unit may delegate
70.30the decision authority for wetland boundary or type determinations with the zoning
70.31administrator to designated staff, or establish other procedures it considers appropriate.
70.32    (c) The local government unit decision must be made in compliance with section
70.3315.99 . Within ten calendar days of the decision, the local government unit decision must
70.34be mailed to the landowner, members of the Technical Evaluation Panel, the watershed
71.1district or watershed management organization, if one exists, and individual members of
71.2the public who request a copy.
71.3    (d) Appeals of decisions made by designated local government staff must be made
71.4to the local government unit. Notwithstanding any law to the contrary, a ruling on an
71.5appeal must be made by the local government unit within 30 days from the date of the
71.6filing of the appeal.
71.7    (e) The local government unit decision is valid for three years unless the Technical
71.8Evaluation Panel determines that natural or artificial changes to the hydrology, vegetation,
71.9or soils of the area have been sufficient to alter the wetland boundary or type.
71.10EFFECTIVE DATE.This section is effective the day following final enactment.

71.11    Sec. 62. Minnesota Statutes 2006, section 103G.2242, subdivision 9, is amended to
71.12read:
71.13    Subd. 9. Appeal. (a) Appeal of a replacement plan, exemption, wetland banking,
71.14wetland boundary or type determination, or no-loss decision, or restoration order may
71.15be obtained by mailing a petition and payment of a filing fee of $200, which shall be
71.16retained by the board to defray administrative costs, to the board within 30 days after the
71.17postmarked date of the mailing specified in subdivision 7. If appeal is not sought within
71.1830 days, the decision becomes final. The local government unit may require the petitioner
71.19to post a letter of credit, cashier's check, or cash in an amount not to exceed $500. If the
71.20petition for hearing is accepted, the amount posted must be returned to the petitioner.
71.21Appeal may be made by:
71.22    (1) the wetland owner;
71.23    (2) any of those to whom notice is required to be mailed under subdivision 7; or
71.24    (3) 100 residents of the county in which a majority of the wetland is located.
71.25    (b) Within 30 days after receiving a petition, the board shall decide whether to
71.26grant the petition and hear the appeal. The board shall grant the petition unless the board
71.27finds that:
71.28    (1) the appeal is meritless, trivial, or brought solely for the purposes of delay;
71.29    (2) the petitioner has not exhausted all local administrative remedies;
71.30    (3) expanded technical review is needed;
71.31    (4) the local government unit's record is not adequate; or
71.32    (5) the petitioner has not posted a letter of credit, cashier's check, or cash if required
71.33by the local government unit.
72.1    (c) In determining whether to grant the appeal, the board shall also consider the
72.2size of the wetland, other factors in controversy, any patterns of similar acts by the local
72.3government unit or petitioner, and the consequences of the delay resulting from the appeal.
72.4    (d) All appeals must be heard by the committee for dispute resolution of the board,
72.5and a decision made within 60 days of filing the local government unit's record and the
72.6written briefs submitted for the appeal. The decision must be served by mail on the parties
72.7to the appeal, and is not subject to the provisions of chapter 14. A decision whether to
72.8grant a petition for appeal and a decision on the merits of an appeal must be considered the
72.9decision of an agency in a contested case for purposes of judicial review under sections
72.1014.63 to 14.69.
72.11    (e) Notwithstanding section 16A.1283, the board shall establish a fee schedule to
72.12defray the administrative costs of appeals made to the board under this subdivision. Fees
72.13established under this authority shall not exceed $1,000. Establishment of the fee is not
72.14subject to the rulemaking process of chapter 14 and section 14.386 does not apply.
72.15EFFECTIVE DATE.This section is effective the day following final enactment.

72.16    Sec. 63. Minnesota Statutes 2006, section 103G.2242, subdivision 12, is amended to
72.17read:
72.18    Subd. 12. Replacement credits. (a) No public or private wetland restoration,
72.19enhancement, or construction may be allowed for replacement unless specifically
72.20designated for replacement and paid for by the individual or organization performing the
72.21wetland restoration, enhancement, or construction, and is completed prior to any draining
72.22or filling of the wetland.
72.23    (b) Paragraph (a) does not apply to a wetland whose owner has paid back with
72.24interest the individual or organization restoring, enhancing, or constructing the wetland.
72.25    (c) Notwithstanding section 103G.222, subdivision 1, paragraph (h) (i), the
72.26following actions, and others established in rule, that are consistent with criteria in rules
72.27adopted by the board in conjunction with the commissioners of natural resources and
72.28agriculture, are eligible for replacement credit as determined by the local government unit,
72.29including enrollment in a statewide wetlands bank:
72.30    (1) reestablishment of permanent native, noninvasive vegetative cover on a wetland
72.31on agricultural land that was planted with annually seeded crops, was in a crop rotation
72.32seeding of pasture grasses or legumes, or was in a land retirement program during the
72.33past ten years;
72.34    (2) buffer areas of permanent native, noninvasive vegetative cover established or
72.35preserved on upland adjacent to replacement wetlands;
73.1    (3) wetlands restored for conservation purposes under terminated easements or
73.2contracts; and
73.3    (4) water quality treatment ponds constructed to pretreat storm water runoff prior
73.4to discharge to wetlands, public waters, or other water bodies, provided that the water
73.5quality treatment ponds must be associated with an ongoing or proposed project that
73.6will impact a wetland and replacement credit for the treatment ponds is based on the
73.7replacement of wetland functions and on an approved stormwater management plan for
73.8the local government.
73.9    (d) Notwithstanding section 103G.222, subdivision 1, paragraphs (e) (f) and (f) (g),
73.10the board may establish by rule different replacement ratios for restoration projects with
73.11exceptional natural resource value.
73.12EFFECTIVE DATE.This section is effective the day following final enactment.

73.13    Sec. 64. Minnesota Statutes 2006, section 103G.2242, subdivision 15, is amended to
73.14read:
73.15    Subd. 15. Fees paid to board. All fees established in subdivision subdivisions 9
73.16and 14 must be paid to the Board of Water and Soil Resources and credited to the general
73.17fund to be used for the purpose of administration of the wetland bank and to process
73.18appeals under section 103G.2242, subdivision 9.
73.19EFFECTIVE DATE.This section is effective the day following final enactment.

73.20    Sec. 65. Minnesota Statutes 2006, section 103G.2243, subdivision 2, is amended to
73.21read:
73.22    Subd. 2. Plan contents. A comprehensive wetland protection and management
73.23plan may:
73.24    (1) provide for classification of wetlands in the plan area based on:
73.25    (i) an inventory of wetlands in the plan area;
73.26    (ii) an assessment of the wetland functions listed in section 103B.3355, using a
73.27methodology chosen by the Technical Evaluation Panel from one of the methodologies
73.28established or approved by the board under that section; and
73.29    (iii) the resulting public values;
73.30    (2) vary application of the sequencing standards in section 103G.222, subdivision 1,
73.31paragraph (b), for projects based on the classification and criteria set forth in the plan;
73.32    (3) vary the replacement standards of section 103G.222, subdivision 1, paragraphs
73.33(e) (f) and (f) (g), based on the classification and criteria set forth in the plan, for specific
74.1wetland impacts provided there is no net loss of public values within the area subject to
74.2the plan, and so long as:
74.3    (i) in a 50 to 80 percent area, a minimum acreage requirement of one acre of replaced
74.4wetland for each acre of drained or filled wetland requiring replacement is met within
74.5the area subject to the plan; and
74.6    (ii) in a less than 50 percent area, a minimum acreage requirement of two acres of
74.7replaced wetland for each acre of drained or filled wetland requiring replacement is met
74.8within the area subject to the plan, except that replacement for the amount above a 1:1
74.9ratio can be accomplished as described in section 103G.2242, subdivision 12; and
74.10    (4) in a greater than 80 percent area, allow replacement credit, based on the
74.11classification and criteria set forth in the plan, for any project that increases the public
74.12value of wetlands, including activities on adjacent upland acres; and.
74.13    (5) in a greater than 80 percent area, based on the classification and criteria set forth
74.14in the plan, expand the application of the exemptions in section 103G.2241, subdivision
74.151
, paragraph (a), clause (4), to also include nonagricultural land, provided there is no
74.16net loss of wetland values.
74.17EFFECTIVE DATE.This section is effective the day following final enactment.

74.18    Sec. 66. Minnesota Statutes 2006, section 103G.235, is amended to read:
74.19103G.235 RESTRICTIONS ON ACCESS TO PUBLIC WATERS WETLANDS.
74.20    Subdivision 1. Wetlands adjacent to roads. To protect the public health or safety,
74.21local units of government may by ordinance restrict public access to public waters
74.22wetlands from municipality, county, or township roads that abut public waters wetlands.
74.23    Subd. 2. Privately restored or created wetlands. When a landowner creates a new
74.24wetland or restores a formerly existing wetland on private land that is adjacent to public
74.25land or a public road right-of-way, there is no public access to the created or restored
74.26wetland if posted by the landowner.

74.27    Sec. 67. Minnesota Statutes 2006, section 103G.301, subdivision 2, is amended to read:
74.28    Subd. 2. Permit application fees. (a) A permit application fee to defray the costs of
74.29receiving, recording, and processing the application must be paid for a permit authorized
74.30under this chapter and for each request to amend or transfer an existing permit.
74.31    (b) The fee to apply for a permit to appropriate water by a nonpublic applicant or a
74.32nonagricultural irrigation applicant must be assessed to recover the reasonable costs of
74.33preparing and issuing the permit. Fees collected under this paragraph must be credited
75.1to an account in the natural resources fund and are appropriated for fiscal years 2008
75.2and 2009 to the commissioner.
75.3    (b) (c) The fee to apply for a permit to appropriate water, other than a permit subject
75.4to the fee under paragraph (b); a permit to construct or repair a dam that is subject to dam
75.5safety inspection,; or a state general permit or to apply for the state water bank program is
75.6$150. The application fee for a permit to work in public waters or to divert waters for
75.7mining must be at least $150, but not more than $1,000, according to a schedule of fees
75.8adopted under section 16A.1285.

75.9    Sec. 68. Minnesota Statutes 2006, section 115.55, subdivision 1, is amended to read:
75.10    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to sections
75.11115.55 to 115.56.
75.12    (b) "Advisory committee" means the Advisory Committee on Individual Sewage
75.13Treatment Systems established under the individual sewage treatment system rules. The
75.14advisory committee must be appointed to ensure geographic representation of the state
75.15and include elected public officials.
75.16    (c) "Applicable requirements" means:
75.17    (1) local ordinances that comply with the individual sewage treatment system rules,
75.18as required in subdivision 2; or
75.19    (2) in areas not subject to the ordinances described in clause (1), the individual
75.20sewage treatment system rules.
75.21    (d) "City" means a statutory or home rule charter city.
75.22    (e) "Commissioner" means the commissioner of the Pollution Control Agency.
75.23    (f) "Dwelling" means a building or place used or intended to be used by human
75.24occupants as a single-family or two-family unit.
75.25    (g) "Individual sewage treatment system" or "system" means a sewage treatment
75.26system, or part thereof, serving a dwelling, other establishment, or group thereof, that
75.27uses subsurface soil treatment and disposal, or a holding tank, serving a dwelling, other
75.28establishment, or a group thereof.
75.29    (h) "Individual sewage treatment system professional" means an inspector, installer,
75.30site evaluator or designer, or pumper.
75.31    (i) "Individual sewage treatment system rules" means rules adopted by the agency
75.32that establish minimum standards and criteria for the design, location, installation, use,
75.33and maintenance of individual sewage treatment systems.
75.34    (j) "Inspector" means a person who inspects individual sewage treatment systems for
75.35compliance with the applicable requirements.
76.1    (k) "Installer" means a person who constructs or repairs individual sewage treatment
76.2systems.
76.3    (l) "Local unit of government" means a township, city, or county.
76.4    (m) "Performance-based system" means a system that is designed specifically for a
76.5site and the environmental conditions on that site and designed to adequately protect the
76.6public health and the environment and provide long-term performance. At a minimum, a
76.7performance based system must ensure that applicable water quality standards are met in
76.8both ground and surface water that ultimately receive the treated wastewater.
76.9    (n) "Pumper" means a person who maintains components of individual sewage
76.10treatment systems including, but not limited to, septic, aerobic, and holding tanks.
76.11    (n) (o) "Seasonal dwelling" means a dwelling that is occupied or used for less than
76.12180 days per year and less than 120 consecutive days.
76.13    (o) (p) "Septic system tank" means any covered receptacle designed, constructed,
76.14and installed as part of an individual sewage treatment system.
76.15    (p) (q) "Site evaluator or designer" means a person who:
76.16    (1) investigates soils and site characteristics to determine suitability, limitations, and
76.17sizing requirements; and
76.18    (2) designs individual sewage treatment systems.
76.19    (q) (r) "Straight-pipe system" means a sewage disposal system that includes toilet
76.20waste and transports raw or partially settled sewage directly to a lake, a stream, a drainage
76.21system, or ground surface.

76.22    Sec. 69. Minnesota Statutes 2006, section 115.55, subdivision 2, is amended to read:
76.23    Subd. 2. Local ordinances. (a) All counties that did not adopt ordinances by
76.24May 7, 1994, or that do not have ordinances, must adopt ordinances that comply with
76.25revisions to the individual sewage treatment system rules by January 1, 1999, unless all
76.26towns and cities in the county have adopted such ordinances within two years of the final
76.27adoption by the agency. County ordinances must apply to all areas of the county other
76.28than cities or towns that have adopted ordinances that comply with this section and are
76.29as strict as the applicable county ordinances. Any ordinance adopted by a local unit of
76.30government before May 7, 1994, to regulate individual sewage treatment systems must be
76.31in compliance with the individual sewage treatment system rules by January 1, 1998.
76.32    (b) A copy of each ordinance adopted under this subdivision must be submitted to
76.33the commissioner upon adoption.
76.34    (c) A local unit of government must make available to the public upon request a
76.35written list of any differences between its ordinances and rules adopted under this section.

77.1    Sec. 70. Minnesota Statutes 2006, section 115.55, subdivision 3, is amended to read:
77.2    Subd. 3. Rules. (a) The agency shall adopt rules containing minimum standards and
77.3criteria for the design, location, installation, use, and maintenance of individual sewage
77.4treatment systems. The rules must include:
77.5    (1) how the agency will ensure compliance under subdivision 2;
77.6    (2) how local units of government shall enforce ordinances under subdivision 2,
77.7including requirements for permits and inspection programs;
77.8    (3) how the advisory committee will participate in review and implementation of
77.9the rules;
77.10    (4) provisions for alternative nonstandard systems and performance-based systems;
77.11    (5) provisions for handling and disposal of effluent;
77.12    (6) provisions for system abandonment; and
77.13    (7) procedures for variances, including the consideration of variances based on cost
77.14and variances that take into account proximity of a system to other systems.
77.15    (b) The agency shall consult with the advisory committee before adopting rules
77.16under this subdivision.
77.17    (c) Notwithstanding the repeal of the agency rule under which the commissioner
77.18has established a list of warrantied individual sewage treatment systems, the warranties
77.19for all systems so listed as of the effective date of the repeal shall continue to be valid
77.20for the remainder of the warranty period.
77.21    (d) The rules required in paragraph (a) must also address the following:
77.22    (1) a definition of redoximorphic features and other criteria that can be used by
77.23system designers and inspectors;
77.24    (2) direction on the interpretation of observed soil features that may be
77.25redoximorphic and their relation to zones of seasonal saturation; and
77.26    (3) procedures on how to resolve professional disagreements on seasonally saturated
77.27soils.
77.28These rules must be in place by March 31, 2006.

77.29    Sec. 71. Minnesota Statutes 2006, section 115.55, is amended by adding a subdivision
77.30to read:
77.31    Subd. 12. Advisory committee; county individual sewage treatment system
77.32management plan. (a) A county may adopt an individual sewage treatment system
77.33management plan that describes how the county plans on carrying out individual sewage
77.34treatment system needs. The commissioner of the Pollution Control Agency shall form an
77.35advisory committee to determine what the plans should address. The advisory committee
78.1shall be made up of representatives of the Association of Minnesota Counties, Pollution
78.2Control Agency, Board of Water and Soil Resources, Department of Health, and other
78.3public agencies or local units of government that have an interest in individual sewage
78.4treatment systems.
78.5    (b) The advisory committee shall advise the agency on the standards, management,
78.6monitoring, and reporting requirements for performance-based systems.

78.7    Sec. 72. Minnesota Statutes 2006, section 116C.92, is amended to read:
78.8116C.92 COORDINATION OF ACTIVITIES.
78.9    Subdivision 1. State coordinating organization. The Environmental Quality Board
78.10is designated the state coordinating organization for state and federal regulatory activities
78.11relating to genetically engineered organisms.
78.12    Subd. 2. Notice of nationwide action. The board shall notify interested parties if a
78.13permit to release genetically engineered wild rice is issued anywhere in the United States.
78.14For purposes of this subdivision, "interested parties" means:
78.15    (1) the state's wild rice industry;
78.16    (2) the legislature;
78.17    (3) federally recognized tribes within Minnesota; and
78.18    (4) individuals who request to be notified.

78.19    Sec. 73. Minnesota Statutes 2006, section 116C.94, subdivision 1, is amended to read:
78.20    Subdivision 1. General authority. (a) Except as provided in paragraph (b), the
78.21board shall adopt rules consistent with sections 116C.91 to 116C.96 that require an
78.22environmental assessment worksheet and otherwise comply with chapter 116D and rules
78.23adopted under it for a proposed release and a permit for a release. The board may place
78.24conditions on a permit and may deny, modify, suspend, or revoke a permit.
78.25    (b) The board shall adopt rules that require an environmental impact statement and
78.26otherwise comply with chapter 116D and rules adopted under it for a proposed release and
78.27a permit for a release of genetically engineered wild rice. The board may place conditions
78.28on the permit and may deny, modify, suspend, or revoke the permit.

78.29    Sec. 74. Minnesota Statutes 2006, section 116C.97, subdivision 2, is amended to read:
78.30    Subd. 2. Federal oversight. (a) If the board determines, upon its own volition or at
78.31the request of any person, that a federal program exists for regulating the release of certain
78.32genetically engineered organisms and the federal oversight under the program is adequate
78.33to protect human health or the environment, then any person may release such genetically
79.1engineered organisms after obtaining the necessary federal approval and without obtaining
79.2a state release permit or a significant environmental permit or complying with the other
79.3requirements of sections 116C.91 to 116C.96 and the rules of the board adopted pursuant
79.4to section 116C.94.
79.5    (b) If the board determines the federal program is adequate to meet only certain
79.6requirements of sections 116C.91 to 116C.96 and the rules of the board adopted pursuant
79.7to section 116C.94, the board may exempt such releases from those requirements.
79.8    (c) A person proposing a release for which a federal authorization is required may
79.9apply to the board for an exemption from the board's permit or to a state agency with a
79.10significant environmental permit for the proposed release for an exemption from the
79.11agency's permit. The proposer must file with the board or state agency a written request
79.12for exemption with a copy of the federal application and the information necessary to
79.13determine if there is a potential for significant environmental effects under chapter 116D
79.14and rules adopted under it. The board or state agency shall give public notice of the request
79.15in the first available issue of the EQB Monitor and shall provide an opportunity for public
79.16comment on the environmental review process consistent with chapter 116D and rules
79.17adopted under it. The board or state agency may grant the exemption if the board or state
79.18agency finds that the federal authorization issued is adequate to meet the requirements of
79.19chapter 116D and rules adopted under it and any other requirement of the board's or state
79.20agency's authority regarding the release of genetically engineered organisms. The board
79.21or state agency must grant or deny the exemption within 45 days after the receipt of the
79.22written request and the information required by the board or state agency.
79.23    (d) This subdivision does not apply to genetically engineered organisms for which
79.24an environmental impact statement is required under sections 116C.91 to 116C.96.

79.25    Sec. 75. Minnesota Statutes 2006, section 282.04, subdivision 1, is amended to read:
79.26    Subdivision 1. Timber sales; land leases and uses. (a) The county auditor may
79.27sell timber upon any tract that may be approved by the natural resources commissioner.
79.28The sale of timber shall be made for cash at not less than the appraised value determined
79.29by the county board to the highest bidder after not less than one week's published notice
79.30in an official paper within the county. Any timber offered at the public sale and not sold
79.31may thereafter be sold at private sale by the county auditor at not less than the appraised
79.32value thereof, until the time as the county board may withdraw the timber from sale. The
79.33appraised value of the timber and the forestry practices to be followed in the cutting of
79.34said timber shall be approved by the commissioner of natural resources.
80.1    (b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be
80.2made in cash at the time of the timber sale, except in the case of oral or sealed bid auction
80.3sales, the down payment shall be no less than 15 percent of the appraised value, and the
80.4balance shall be paid prior to entry. In the case of auction sales that are partitioned and
80.5sold as a single sale with predetermined cutting blocks, the down payment shall be no less
80.6than 15 percent of the appraised price of the entire timber sale which may be held until the
80.7satisfactory completion of the sale or applied in whole or in part to the final cutting block.
80.8The value of each separate block must be paid in full before any cutting may begin in that
80.9block. With the permission of the county contract administrator the purchaser may enter
80.10unpaid blocks and cut necessary timber incidental to developing logging roads as may
80.11be needed to log other blocks provided that no timber may be removed from an unpaid
80.12block until separately scaled and paid for. If payment is provided as specified in this
80.13paragraph as security under paragraph (a) and no cutting has taken place on the contract,
80.14the county auditor may credit the security provided, less any down payment required for
80.15an auction sale under this paragraph, to any other contract issued to the contract holder
80.16by the county under this chapter to which the contract holder requests in writing that it
80.17be credited, provided the request and transfer is made within the same calendar year as
80.18the security was received.
80.19    (c) The county board may require final settlement on the basis of a scale of cut
80.20products sell any timber, including biomass, as appraised or scaled. Any parcels of land
80.21from which timber is to be sold by scale of cut products shall be so designated in the
80.22published notice of sale under paragraph (a), in which case the notice shall contain a
80.23description of the parcels, a statement of the estimated quantity of each species of timber,
80.24and the appraised price of each species of timber for 1,000 feet, per cord or per piece, as
80.25the case may be. In those cases any bids offered over and above the appraised prices shall
80.26be by percentage, the percent bid to be added to the appraised price of each of the different
80.27species of timber advertised on the land. The purchaser of timber from the parcels shall
80.28pay in cash at the time of sale at the rate bid for all of the timber shown in the notice of
80.29sale as estimated to be standing on the land, and in addition shall pay at the same rate for
80.30any additional amounts which the final scale shows to have been cut or was available for
80.31cutting on the land at the time of sale under the terms of the sale. Where the final scale
80.32of cut products shows that less timber was cut or was available for cutting under terms
80.33of the sale than was originally paid for, the excess payment shall be refunded from the
80.34forfeited tax sale fund upon the claim of the purchaser, to be audited and allowed by the
80.35county board as in case of other claims against the county. No timber, except hardwood
80.36pulpwood, may be removed from the parcels of land or other designated landings until
81.1scaled by a person or persons designated by the county board and approved by the
81.2commissioner of natural resources. Landings other than the parcel of land from which
81.3timber is cut may be designated for scaling by the county board by written agreement
81.4with the purchaser of the timber. The county board may, by written agreement with the
81.5purchaser and with a consumer designated by the purchaser when the timber is sold by the
81.6county auditor, and with the approval of the commissioner of natural resources, accept the
81.7consumer's scale of cut products delivered at the consumer's landing. No timber shall be
81.8removed until fully paid for in cash. Small amounts of timber not exceeding $3,000 in
81.9appraised valuation may be sold for not less than the full appraised value at private sale
81.10to individual persons without first publishing notice of sale or calling for bids, provided
81.11that in case of a sale involving a total appraised value of more than $200 the sale shall be
81.12made subject to final settlement on the basis of a scale of cut products in the manner above
81.13provided and not more than two of the sales, directly or indirectly to any individual shall
81.14be in effect at one time.
81.15    (d) As directed by the county board, the county auditor may lease tax-forfeited land
81.16to individuals, corporations or organized subdivisions of the state at public or private sale,
81.17and at the prices and under the terms as the county board may prescribe, for use as cottage
81.18and camp sites and for agricultural purposes and for the purpose of taking and removing of
81.19hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden
81.20sites and other temporary uses provided that no leases shall be for a period to exceed ten
81.21years; provided, further that any leases involving a consideration of more than $12,000 per
81.22year, except to an organized subdivision of the state shall first be offered at public sale in
81.23the manner provided herein for sale of timber. Upon the sale of any leased land, it shall
81.24remain subject to the lease for not to exceed one year from the beginning of the term of the
81.25lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation
81.26shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be
81.27audited and allowed by the county board as in case of other claims against the county.
81.28    (e) As directed by the county board, the county auditor may lease tax-forfeited land
81.29to individuals, corporations, or organized subdivisions of the state at public or private sale,
81.30at the prices and under the terms as the county board may prescribe, for the purpose
81.31of taking and removing for use for road construction and other purposes tax-forfeited
81.32stockpiled iron-bearing material. The county auditor must determine that the material is
81.33needed and suitable for use in the construction or maintenance of a road, tailings basin,
81.34settling basin, dike, dam, bank fill, or other works on public or private property, and
81.35that the use would be in the best interests of the public. No lease shall exceed ten years.
81.36The use of a stockpile for these purposes must first be approved by the commissioner of
82.1natural resources. The request shall be deemed approved unless the requesting county
82.2is notified to the contrary by the commissioner of natural resources within six months
82.3after receipt of a request for approval for use of a stockpile. Once use of a stockpile has
82.4been approved, the county may continue to lease it for these purposes until approval is
82.5withdrawn by the commissioner of natural resources.
82.6    (f) The county auditor, with the approval of the county board is authorized to grant
82.7permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean
82.8ores, tailings, or waste products from mines or ore milling plants, upon the conditions and
82.9for the consideration and for the period of time, not exceeding 15 years, as the county
82.10board may determine. The permits, licenses, or leases are subject to approval by the
82.11commissioner of natural resources.
82.12    (g) Any person who removes any timber from tax-forfeited land before said
82.13timber has been scaled and fully paid for as provided in this subdivision is guilty of a
82.14misdemeanor.
82.15    (h) The county auditor may, with the approval of the county board, and without first
82.16offering at public sale, grant leases, for a term not exceeding 25 years, for the removal
82.17of peat and for the production or removal of farm-grown closed-loop biomass as defined
82.18in section 216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited
82.19lands upon the terms and conditions as the county board may prescribe. Any lease for
82.20the removal of peat, farm-grown closed-loop biomass, or short-rotation woody crops
82.21from tax-forfeited lands must first be reviewed and approved by the commissioner of
82.22natural resources if the lease covers 320 or more acres. No lease for the removal of
82.23peat, farm-grown closed-loop biomass, or short-rotation woody crops shall be made by
82.24the county auditor pursuant to this section without first holding a public hearing on the
82.25auditor's intention to lease. One printed notice in a legal newspaper in the county at least
82.26ten days before the hearing, and posted notice in the courthouse at least 20 days before
82.27the hearing shall be given of the hearing.
82.28    (i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis
82.29County auditor may, at the discretion of the county board, sell timber to the party who
82.30bids the highest price for all the several kinds of timber, as provided for sales by the
82.31commissioner of natural resources under section 90.14. Bids offered over and above the
82.32appraised price need not be applied proportionately to the appraised price of each of
82.33the different species of timber.
82.34    (j) In lieu of any payment or deposit required in paragraph (b), as directed by the
82.35county board and under terms set by the county board, the county auditor may accept an
82.36irrevocable bank letter of credit in the amount equal to the amount otherwise determined
83.1in paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph,
83.2at the written request of the purchaser, the county may periodically allow the bank letter
83.3of credit to be reduced by an amount proportionate to the value of timber that has been
83.4harvested and for which the county has received payment. The remaining amount of
83.5the bank letter of credit after a reduction under this paragraph must not be less than 20
83.6percent of the value of the timber purchased. If an irrevocable bank letter of credit or
83.7cash deposit is provided for the down payment required in paragraph (b), and no cutting
83.8of timber has taken place on the contract for which a letter of credit has been provided,
83.9the county may allow the transfer of the letter of credit to any other contract issued to the
83.10contract holder by the county under this chapter to which the contract holder requests in
83.11writing that it be credited.

83.12    Sec. 76. Laws 1998, chapter 389, article 16, section 31, subdivision 4, as amended
83.13by Laws 1999, chapter 180, section 3, and Laws 2001, chapter 164, section 5, and Laws
83.142005, First Special Session chapter 1, article 2, section 149, is amended to read:
83.15    Subd. 4. County environmental trust fund. Notwithstanding the provisions of
83.16Minnesota Statutes, chapter 282, and any other law relating to the apportionment of
83.17proceeds from the sale of tax-forfeited land, and except as otherwise provided in this
83.18section, a county board must deposit the money received from the sale of land under
83.19subdivision 3 into an environmental trust fund established by the county under this
83.20subdivision. The county board may: (1) deposit part or all of the environmental trust fund
83.21money as provided in Minnesota Statutes, chapter 118A; or (2) enter into an agreement
83.22with the State Board of Investment to invest all or part of the money in investments
83.23under Minnesota Statutes, section 11A.24, subdivisions 1 to 5, on behalf of the county.
83.24The following may be withheld by a county board and are not required to be deposited
83.25into an environmental trust fund: the costs of appraisal, abstracts, and surveys; money
83.26received from a sale which is attributable to land owned by a county in fee; amounts paid
83.27to lessees for improvements; amounts paid to acquire land which is included in a county
83.28plan for exchange and is conveyed to the state in the exchange, including the purchase
83.29price, appraisal, abstract, survey, and closing costs; and the costs of sale to lessees or other
83.30parties, including the costs of advertising, realtors, and closing services. If the proceeds
83.31from the sale of tax-forfeited land in a county are $250,000 or more, the amount the
83.32county may spend from the fund each calendar year may not exceed 5-1/2 percent of the
83.33market value of the fund on January 1 of the preceding calendar year, and the county board
83.34may spend money from the fund only for purposes related to the improvement of natural
83.35resources. To the extent money received from the sale is attributable to tax-forfeited
84.1land from another county, the money must be deposited in an environmental trust fund
84.2established under this section by that county board. The county board must not delegate
84.3to an appointed official or any other person any decision required or permitted to be
84.4made under this subdivision.

84.5    Sec. 77. Laws 2003, chapter 128, article 1, section 169, is amended to read:
84.6    Sec. 169. CONTINUOUS TRAIL DESIGNATION.
84.7    (a) The commissioner of natural resources shall locate, plan, design, map, construct,
84.8designate, and sign a new trail for use by all-terrain vehicles and off-highway motorcycles
84.9of not less than 70 continuous miles in length on any land owned by the state or in
84.10cooperation with any county on land owned by that county or on a combination of any of
84.11these lands. This new trail shall be ready for use by April 1, 2007 June 30, 2009.
84.12    (b) All funding for this new trail shall come from the all-terrain vehicle dedicated
84.13account and is appropriated each year as needed.
84.14    (c) This new trail shall have at least two areas of access complete with appropriate
84.15parking for vehicles and trailers and enough room for loading and unloading all-terrain
84.16vehicles. Some existing trails, that are strictly all-terrain vehicle trails, and are not
84.17inventoried forest roads, may be incorporated into the design of this new all-terrain vehicle
84.18trail. This new trail may be of a continuous loop design and shall provide for spurs to other
84.19all-terrain vehicle trails as long as those spurs do not count toward the 70 continuous miles
84.20of this new all-terrain vehicle trail. Four rest areas shall be provided along the way.

84.21    Sec. 78. Laws 2006, chapter 236, article 1, section 21, is amended to read:
84.22    Sec. 21. EXCHANGE OF TAX-FORFEITED LAND; PRIVATE SALE;
84.23ITASCA COUNTY.
84.24    (a) For the purpose of a land exchange for use in connection with a proposed
84.25steel mill in Itasca County referenced in Laws 1999, chapter 240, article 1, section 8,
84.26subdivision 3, title examination and approval of the land described in paragraph (b)
84.27shall be undertaken as a condition of exchange of the land for class B land, and shall be
84.28governed by Minnesota Statutes, section 94.344, subdivisions 9 and 10, and the provisions
84.29of this section. Notwithstanding the evidence of title requirements in Minnesota Statutes,
84.30section 94.344, subdivisions 9 and 10, the county attorney shall examine one or more title
84.31reports or title insurance commitments prepared or underwritten by a title insurer licensed
84.32to conduct title insurance business in this state, regardless of whether abstracts were
84.33created or updated in the preparation of the title reports or commitments. The opinion of
85.1the county attorney, and approval by the attorney general, shall be based on those title
85.2reports or commitments.
85.3    (b) The land subject to this section is located in Itasca County and is described as:
85.4    (1) Sections 3, 4, 7, 10, 14, 15, 16, 17, 18, 20, 21, 22, 23, 26, 28, and 29, Township
85.556 North, Range 22 West;
85.6    (2) Sections 3, 4, 9, 10, 13, and 14, Township 56 North, Range 23 West;
85.7    (3) Section 30, Township 57 North, Range 22 West; and
85.8    (4) Sections 25, 26, 34, 35, and 36, Township 57 North, Range 23 West.
85.9    (c) Riparian land given in exchange by Itasca County for the purpose of the steel
85.10mill referenced in paragraph (a), is exempt from the restrictions imposed by Minnesota
85.11Statutes, section 94.342, subdivision 3.
85.12    (d) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1,
85.13and the public sale provisions of Minnesota Statutes, chapter 282, Itasca County may sell,
85.14by private sale, any land received in exchange for the purpose of the steel mill referenced
85.15in paragraph (a), under the remaining provisions of Minnesota Statutes, chapter 282. The
85.16sale must be in a form approved by the attorney general.
85.17    (e) Notwithstanding Minnesota Statutes, section 284.28, subdivision 8, or any other
85.18law to the contrary, land acquired through an exchange under this section is exempt from
85.19payment of three percent of the sales price required to be collected by the county auditor
85.20at the time of sale for deposit in the state treasury.

85.21    Sec. 79. VOLUNTARY TERMINATION OF TIMBER SALE PERMITS.
85.22    (a) Notwithstanding Minnesota Statutes, sections 90.161, 90.173, and 90.211, or
85.23other law to the contrary, the commissioner of natural resources shall, in the case of
85.24nontrust land, terminate the permit for an eligible sale of timber without penalty according
85.25to this section and upon request of the permit holder. In the case of a permit relating
85.26to trust land, the commissioner shall terminate the permit for an eligible sale of timber
85.27according to this section only if termination of the permit would secure the maximum
85.28long-term economic return from the land consistent with the fiduciary responsibilities
85.29imposed by law in regard to the trust lands.
85.30    (b) An "eligible sale" means a sale for timber:
85.31    (1) the permit for which was issued on or after October 1, 2004, but before March
85.3231, 2006;
85.33    (2) that contains aspen as the predominant timber species;
85.34    (3) for which the aspen was sold for $40 per cord or more; and
85.35    (4) for which no harvest activities or activities incidental to harvest have occurred.
86.1    (c) The maximum amount available for voluntary turn back under this section is
86.27,500 cords of all species for each permittee.
86.3    (d) In the case of a 100 percent secured sale, the permittee may choose to be released
86.4from the security of any permit consistent with paragraph (b), except that the permittee
86.5must pay 15 percent of the appraised value of the permit, plus eight percent interest from
86.6date of purchase to date of conversion under this paragraph, in cash, to the commissioner.
86.7    (e) In the case of any sale, including a sale under paragraph (d), for which the
86.8commissioner has received a 15 percent down payment and that meets the criteria in
86.9paragraph (b), the permit holder may request a credit equal to two-thirds of the down
86.10payment. Amounts credited to permittees under this paragraph must first be applied to
86.11any existing sales that remain in the permittee's account and may then be used toward
86.12future timber purchases. Credits under this paragraph expire two years after the effective
86.13date of the permit termination.
86.14    (f) All permit terminations under this section must be completed by December 31,
86.152007. The commissioner of natural resources must proceed expeditiously to reoffer for
86.16sale any timber subject of a turn back under this section.
86.17EFFECTIVE DATE.This section is effective the day following final enactment.

86.18    Sec. 80. ENDOCRINE DISRUPTOR REPORT.
86.19    The commissioner of the Pollution Control Agency shall prepare a report on
86.20strategies to prevent the entry of endocrine disruptors into waters of the state. The report
86.21must include an estimate for each strategy of the proportion of endocrine disruptors that
86.22are prevented from entering the waters of the state. The commissioner shall submit the
86.23report to the house and senate committees having jurisdiction over environment and
86.24natural resources policy and finance by January 15, 2008.

86.25    Sec. 81. EASEMENT REPORT REQUIRED.
86.26    By January 1, 2008, the commissioner of natural resources must report to the
86.27house and senate committees with jurisdiction over environment and natural resources
86.28finance with proposed minimum legal and conservation standards that could be applied
86.29to conservation easements acquired with public money.

86.30    Sec. 82. TAX-FORFEITED LANDS LEASE; ITASCA COUNTY.
86.31    Notwithstanding Minnesota Statutes, section 282.04, or other law to the contrary,
86.32the Itasca County auditor may lease tax-forfeited land to Minnesota Steel for a period of
87.120 years, for use as a tailings basin and buffer area. A lease entered under this section
87.2is renewable.

87.3    Sec. 83. WILD RICE STUDY.
87.4    By February 15, 2008, the commissioner of natural resources must prepare a study
87.5for natural wild rice that includes:
87.6    (1) the current location and estimated acreage and area of natural stands;
87.7    (2) identified threats to natural stands, including, but not limited to, development
87.8pressure, water levels, pollution, invasive species, and genetic strains; and
87.9    (3) recommendations to the house and senate committees with jurisdiction over
87.10natural resources on protecting and increasing natural wild rice stands in the state.
87.11    In developing the study, the commissioner must contact and ask for comments
87.12from the state's wild rice industry, the commissioner of agriculture, local officials with
87.13significant areas of wild rice within their jurisdictions, tribal leaders within affected
87.14federally recognized tribes, and interested citizens.
87.15EFFECTIVE DATE.This section is effective the day following final enactment.

87.16    Sec. 84. CONSTRUCTION.
87.17    Nothing in sections 72, 73, 74, and 83 affects, alters, or modifies the authorities,
87.18responsibilities, obligations, or powers of the state or any political subdivision thereof or
87.19any federally recognized tribe.

87.20    Sec. 85. SEPTIC BEST PRACTICES ASSISTANCE.
87.21    The commissioner of the Pollution Control Agency shall establish a database of
87.22best practices regarding the installation, management, and maintenance of individual
87.23sewage treatment systems. The database must be made available to any interested public
87.24or private party.

87.25    Sec. 86. RULEMAKING.
87.26    Within 90 days of the effective date of this section, the Board of Water and Soil
87.27Resources shall adopt rules that amend Minnesota Rules, chapter 8420, to incorporate
87.28statute changes and to address the related wetland exemption provisions in Minnesota
87.29Rules, parts 8420.0115 to 8420.0210, and the wetland replacement and banking provisions
87.30in Minnesota Rules, parts 8420.0500 to 8420.0760. These rules are exempt from the
87.31rulemaking provisions of Minnesota Statutes, chapter 14, except that Minnesota Statutes,
87.32section 14.386, applies and the proposed rules must be submitted to the senate and house
88.1committees having jurisdiction over environment and natural resources at least 30 days
88.2prior to being published in the State Register. The amended rules are effective for two
88.3years from the date of publication in the State Register unless they are superseded by
88.4permanent rules.
88.5EFFECTIVE DATE.This section is effective the day following final enactment.

88.6    Sec. 87. VERMILLION HIGHLANDS WILDLIFE MANAGEMENT AREA.
88.7    (a) The following area is established and designated as the Vermillion Highlands
88.8Wildlife Management Area, subject to the special permitted uses authorized in this section:
88.9    The approximately 2,840 acres owned by the University of Minnesota lying within
88.10the area legally described as approximately the southerly 3/4 of the Southwest 1/4 of
88.11Section 1, the Southeast 1/4 of Section 2, the East 1/2 of Section 10, Section 11, the
88.12West 1/2 of Section 12, Section 13, and Section 14, all in Township 114 North, Range
88.1319 West, Dakota County.
88.14    (b) Notwithstanding Minnesota Statutes, section 86A.05, subdivision 8, paragraph
88.15(c), permitted uses in the Vermillion Highlands Wildlife Management Area include:
88.16    (1) education, outreach, and agriculture with the intent to eventually phase out
88.17agriculture leases and plant and restore native prairie;
88.18    (2) research by the University of Minnesota or other permitted researchers;
88.19    (3) hiking, hunting, fishing, trapping, and other compatible wildlife-related
88.20recreation of a natural outdoors experience, without constructing new hard surface trails
88.21or roads, and supporting management and improvements;
88.22    (4) designated trails for hiking, horseback riding, biking, and cross-country skiing
88.23and necessary trailhead support with minimal impact on the permitted uses in clause (3);
88.24    (5) shooting sports facilities for sporting clays, skeet, trapshooting, and rifle and
88.25pistol shooting, including sanctioned events and training for responsible handling and
88.26use of firearms;
88.27    (6) grant-in-aid snowmobile trails; and
88.28    (7) leases for small-scale farms to market vegetable farming.
88.29    (c) With the concurrence of representatives of the University of Minnesota and
88.30Dakota County, the commissioner of natural resources may, by posting or rule, restrict the
88.31permitted uses as follows:
88.32    (1) temporarily close areas or trails, by posting at the access points, to facilitate
88.33hunting. When temporarily closing trails under this clause, the commissioner shall avoid
88.34closing all trail loops simultaneously whenever practical; or
89.1    (2) limit other permitted uses to accommodate hunting and trapping after providing
89.2advance public notice. Research conducted by the university may not be limited unless
89.3mutually agreed by the commissioner and the University of Minnesota.
89.4    (d) Road maintenance within the wildlife management area shall be minimized, with
89.5the intent to abandon interior roads when no longer needed for traditional agriculture
89.6purposes.
89.7    (e) Money collected on leases from lands within the wildlife management area
89.8must be kept in a separate account and spent within the wildlife management area under
89.9direction of the representatives listed in paragraph (c). $200,000 of this money may be
89.10transferred to the commissioner of natural resources for a master planning process and
89.11resource inventory of the land identified in Minnesota Statutes, section 137.50, subdivision
89.126, in order to provide needed prairie and wetland restoration. The commissioner must work
89.13with affected officials from the University of Minnesota and Dakota County to complete
89.14these requirements and inform landowners and lessees about the planning process.
89.15    (f) Notwithstanding Minnesota Statutes, sections 97A.061 and 477A.11, the state
89.16of Minnesota shall not provide payments in lieu of taxes for the lands described in
89.17paragraph (a).

89.18    Sec. 88. STRAND'S STATE ISLAND.
89.19    Notwithstanding Minnesota Statutes, section 83A.02, the commissioner of natural
89.20resources shall change the name of Big Island in Pelican Lake in St. Louis County
89.21to Strand's State Island.

89.22    Sec. 89. REPEALER.
89.23(a) Minnesota Statutes 2006, section 89A.11, is repealed.
89.24(b) Minnesota Statutes 2006, section 103G.2241, subdivision 8, is repealed.
89.25EFFECTIVE DATE.Paragraph (a) of this section is effective July 1, 2007.
89.26Paragraph (b) of this section is effective the day following final enactment.

89.27ARTICLE 3
89.28SCIENCE MUSEUM AND STATE ZOO

89.29
Section 1. SUMMARY OF APPROPRIATIONS.
89.30    The amounts shown in this section summarize direct appropriations by fund made
89.31in this article.
90.1
2008
2009
Total
90.2
General
$
8,313,000
$
8,440,000
$
16,753,000
90.3
Natural Resources
137,000
138,000
275,000
90.4
Total
$
8,450,000
$
8,578,000
$
17,028,000

90.5
90.6
Sec. 2. SCIENCE MUSEUM OF
MINNESOTA
$
1,250,000
$
1,250,000
90.7The base budget for the Science Museum
90.8of Minnesota is $1,000,000 each year in the
90.92010-2011 biennium.

90.10
Sec. 3. ZOOLOGICAL BOARD
$
7,200,000
$
7,328,000
90.11
Appropriations by Fund
90.12
2008
2009
90.13
General
7,063,000
7,190,000
90.14
Natural Resources
137,000
138,000
90.15$137,000 the first year and $138,000 the
90.16second year are from the natural resources
90.17fund from the revenue deposited under
90.18Minnesota Statutes, section 297A.94,
90.19paragraph (e), clause (5). This is a onetime
90.20appropriation.
90.21The general fund base budget for the
90.22Zoological Board is $6,940,000 each year in
90.23the 2010-2011 biennium.

90.24ARTICLE 4
90.25ENERGY APPROPRIATIONS

90.26
Section 1. SUMMARY OF APPROPRIATIONS.
90.27    The amounts shown in this section summarize direct appropriations, by fund, made
90.28in this article.
90.29
2008
2009
Total
90.30
General
$
51,752,000
$
33,542,000
$
85,294,000
90.31
Petroleum Tank Cleanup
1,084,000
1,084,000
2,168,000
90.32
Workers' Compensation
835,000
835,000
1,670,000
90.33
Special Revenue
5,600,000
4,600,000
10,200,000
90.34
Total
$
59,271,000
$
40,061,000
$
99,332,000

91.1
Sec. 2. ENERGY FINANCE APPROPRIATIONS.
91.2    The sums shown in the columns marked "Appropriations" are appropriated to the
91.3agencies and for the purposes specified in this article. The appropriations are from the
91.4general fund, or another named fund, and are available for the fiscal years indicated
91.5for each purpose. The figures "2008" and "2009" used in this article mean that the
91.6appropriations listed under them are available for the fiscal year ending June 30, 2008, or
91.7June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
91.8year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
91.9year ending June 30, 2007, are effective the day following final enactment.
91.10
APPROPRIATIONS
91.11
Available for the Year
91.12
Ending June 30
91.13
2008
2009

91.14
Sec. 3. DEPARTMENT OF COMMERCE.
91.15
Subdivision 1.Total Appropriation
$
51,721,000
$
33,695,000
91.16
Appropriations by Fund
91.17
2008
2009
91.18
General
44,202,000
27,176,000
91.19
Petroleum Cleanup
1,084,000
1,084,000
91.20
91.21
Workers'
Compensation
835,000
835,000
91.22
Special Revenue
5,600,000
4,600,000
91.23The amounts that may be spent for each
91.24purpose are specified in the following
91.25subdivisions.
91.26
Subd. 2.Financial Examinations
6,432,000
6,519,000
91.27
91.28
Subd. 3.Petroleum Tank Release Cleanup
Board
1,084,000
1,084,000
91.29This appropriation is from the petroleum
91.30tank release cleanup fund.
91.31
Subd. 4.Administrative Services
4,477,000
4,540,000
91.32
Subd. 5.Market Assurance
6,902,000
6,999,000
92.1
Appropriations by Fund
92.2
General
6,067,000
6,164,000
92.3
92.4
Workers'
Compensation
835,000
835,000
92.5
Subd. 6.Energy and Telecommunications
32,726,000
14,453,000
92.6
Appropriations by Fund
92.7
General
27,226,000
9,953,000
92.8
Special Revenue
5,500,000
4,500,000
92.9$2,000,000 the first year and $2,000,000 the
92.10second year are for E85 cost-share grants.
92.11Notwithstanding Minnesota Statutes, section
92.1216A.28, this appropriation is available
92.13until expended. The base appropriation for
92.14these grants is $2,000,000 each year in the
92.152010-2011 biennium. Funding for these
92.16grants ends June 30, 2011. Up to ten percent
92.17of the funds may be used for cost-share grants
92.18for pumps dispensing fuel that contains at
92.19least ten percent biodiesel fuel by volume.
92.20The utility subject to Minnesota Statutes,
92.21section 116C.779, shall transfer $2,500,000
92.22in fiscal year 2008 and $2,500,000 in fiscal
92.23year 2009 to the Department of Commerce
92.24on a schedule to be determined by the
92.25commissioner of commerce. The funds must
92.26be deposited in the special revenue fund
92.27and are appropriated to the commissioner
92.28for grants to promote renewable energy
92.29projects and community energy outreach and
92.30assistance. Of the amounts identified:
92.31(1) $500,000 each year for capital grants for
92.32on-farm biogas recovery facilities; eligible
92.33projects will be selected in coordination
92.34with the Department of Agriculture and the
92.35Pollution Control Agency;
93.1(2) $500,000 each year to provide financial
93.2rebates to new solar electricity projects;
93.3(3) $500,000 each year for continued funding
93.4of community energy technical assistance
93.5and outreach on renewable energy and
93.6energy efficiency; and
93.7(4) $1,000,000 each year for technical
93.8analysis and demonstration funding for
93.9automotive technology projects, with a
93.10special focus on plug-in hybrid electric
93.11vehicles.
93.12The utility subject to Minnesota Statutes,
93.13section 116C.779, shall transfer $3,000,000
93.14in fiscal year 2008 and $2,000,000 in fiscal
93.15year 2009 to the Department of Commerce
93.16on a schedule to be determined by the
93.17commissioner of commerce. The funds must
93.18be deposited in the special revenue fund and
93.19are appropriated to the commissioner for
93.20grants to provide competitive, cost-share
93.21grants to fund renewable energy research in
93.22Minnesota. These grants must be awarded
93.23by a three-member panel made up of the
93.24commissioners of commerce, pollution
93.25control, and agriculture, or their designees.
93.26Grant applications must be ranked and grants
93.27issued according to how well the applications
93.28meet state energy policy research goals
93.29established by the commissioners, the quality
93.30and experience of the research teams, the
93.31cross-interdisciplinary and cross-institutional
93.32nature of the research teams, and the ability
93.33of the research team to leverage nonstate
93.34funds.
94.1$3,000,000 the second year is for a grant to
94.2the Board of Regents of the University of
94.3Minnesota for the Initiative for Renewable
94.4Energy and the Environment. The grant
94.5is for the purposes set forth in Minnesota
94.6Statutes, section 216B.241, subdivision 6.
94.7The appropriation is available until spent.
94.8The base budget for this grant to the Board
94.9of Regents of the University of Minnesota
94.10for the Initiative for Renewable Energy and
94.11the Environment is $5,000,000 each year in
94.12the 2010-2011 fiscal biennium.
94.13As a condition of this grant, beginning in
94.14the 2010-2011 biennium, the Initiative for
94.15Renewable Energy and the Environment
94.16must set aside at least 15 percent of the
94.17funds received annually under the grant for
94.18qualified projects conducted at a rural campus
94.19or experiment station. Any amount of the
94.20set aside funds that has not been awarded to
94.21a rural campus or experiment station at the
94.22end of the fiscal year must revert back to the
94.23initiative for its exclusive use.
94.24$10,000,000 the first year is for the renewable
94.25hydrogen initiative in Minnesota Statutes,
94.26section 216B.813, to fund the competitive
94.27grant program included in that section. The
94.28commissioner may use up to two percent of
94.29the competitive grant program appropriation
94.30for grant administration and to develop and
94.31implement the renewable hydrogen road
94.32map. This is a onetime appropriation and is
94.33available until expended.
94.34$3,100,000 the first year is for deposit in the
94.35rural wind energy development revolving
95.1loan fund under Minnesota Statutes, section
95.2216C.39. This appropriation does not cancel.
95.3This is a onetime appropriation.
95.4$1,000,000 the first year and $1,000,000 the
95.5second year are for a grant to the Center for
95.6Rural Policy and Development for the rural
95.7wind energy development program in article
95.83. This is a onetime appropriation and is
95.9available until expended.
95.10$50,000 the first year is a onetime
95.11appropriation for a comprehensive technical,
95.12economic, and environmental analysis of the
95.13benefits to be derived from greater use in this
95.14state of geothermal heat pump systems for
95.15heating and cooling air and heating water.
95.16The analysis must:
95.17(1) estimate the extent of geothermal heat
95.18pump systems currently installed in this state
95.19in residential, commercial, and institutional
95.20buildings;
95.21(2) estimate energy and economic savings of
95.22geothermal heat pump systems in comparison
95.23with fossil fuel-based heating and cooling
95.24systems, including electricity use, on a
95.25capital cost and life-cycle cost basis, for both
95.26newly constructed and retrofitted residential,
95.27commercial, and institutional buildings;
95.28(3) compare the emission of pollutants and
95.29greenhouse gases from geothermal heat
95.30pump systems and fossil fuel-based heating
95.31and cooling systems;
95.32(4) identify financial assistance available
95.33from state and federal sources and Minnesota
95.34utilities to defray the costs of installing
95.35geothermal heat pump systems;
96.1(5) identify Minnesota firms currently
96.2manufacturing or installing the physical
96.3components of geothermal heat pump
96.4systems and estimate the economic
96.5development potential in this state if demand
96.6for such systems increases significantly;
96.7(6) identify the barriers to more widespread
96.8adoption of geothermal heat pump systems in
96.9this state and suggest strategies to overcome
96.10those barriers; and
96.11(7) make recommendations for legislative
96.12action.
96.13Not later than March 15, 2008, the
96.14commissioner shall submit the results of the
96.15analysis in a report to the chairs of the senate
96.16and house of representatives committees
96.17with primary jurisdiction over energy policy.
96.18$45,000 the first year is a onetime
96.19appropriation for a grant to Linden Hills
96.20Power and Light for preliminary engineering
96.21design work and other technical and legal
96.22services required for a community digester
96.23and neighborhood district heating and
96.24cooling system demonstration project in the
96.25Linden Hills neighborhood of Minneapolis.
96.26Funds may be expended upon a determination
96.27by the commissioner of commerce that the
96.28project is technically and economically
96.29feasible. A portion of the appropriation
96.30may be used to expand the scope of the
96.31project feasibility study to include portions
96.32of adjacent communities including St. Louis
96.33Park and Edina.
96.34$3,000,000 the first year is for the purpose
96.35of the propane prepurchase program under
97.1Minnesota Statutes, section 216B.0951. This
97.2is a onetime appropriation and is available
97.3for the biennium.
97.4$4,000,000 the first year is for a onetime
97.5grant to the St. Paul Port Authority for
97.6environmental review and permitting,
97.7preliminary engineering, and development of
97.8a steam-producing facility to be located in
97.9St. Paul using fuels consistent with eligible
97.10energy technologies as defined in Minnesota
97.11Statutes, section 216B.243, subdivision 3a.
97.12Grant funds for the project may only
97.13be expended when the commissioner of
97.14commerce has reviewed and approved a
97.15project plan that includes the following
97.16elements:
97.17(i) total project cost estimates;
97.18(ii) cost estimates for project design and
97.19engineering tasks;
97.20(iii) a preliminary plan for fuel source
97.21procurement from a renewable energy source
97.22as defined in Minnesota Statutes, section
97.23216B.243, subdivision 3a; and
97.24(iv) a preliminary financing plan for the
97.25entire project.
97.26$150,000 the first year is appropriated to the
97.27commissioner of commerce for grants for
97.28demonstration projects of electric vehicles
97.29with advanced transmission technologies
97.30incorporating, if feasible, batteries,
97.31converters, and other components developed
97.32in Minnesota. Funds may be expended
97.33under the grants only if grantees enter into
97.34agreements specifying that commercial
98.1production of these vehicles and components
98.2will, to the extent possible, take place in
98.3Minnesota.
98.4
98.5
Subd. 7.Telecommunications Access
Minnesota
100,000
100,000
98.6$100,000 the first year and $100,000
98.7the second year are appropriated to the
98.8commissioner of commerce for transfer
98.9to the commissioner of human services to
98.10supplement the ongoing operational expenses
98.11of the Minnesota Commission Serving
98.12Deaf and Hard-of-Hearing People. This
98.13appropriation is from the telecommunication
98.14access Minnesota fund, and is added to the
98.15commission's base.

98.16
Sec. 4. PUBLIC UTILITIES COMMISSION
$
5,315,000
$
5,366,000

98.17
98.18
Sec. 5. DEPARTMENT OF NATURAL
RESOURCES
$
535,000
$
0
98.19$475,000 the first year is a onetime
98.20appropriation for terrestrial and geologic
98.21carbon sequestration reports and studies in
98.22article 4. Of this amount, the commissioner
98.23shall make payments of $385,000 to the
98.24Board of Regents of the University of
98.25Minnesota for the purposes of terrestrial
98.26carbon sequestration activities, and $90,000
98.27to the Minnesota Geological Survey for the
98.28purposes of geologic carbon sequestration
98.29assessment.
98.30$60,000 the first year is a onetime
98.31appropriation to the commissioner of natural
98.32resources to conduct a feasibility study
98.33in conjunction with U.S. Army Corps of
98.34Engineers on the foundation and hydraulics
99.1of the Rapidan Dam in Blue Earth County.
99.2This appropriation must be equally matched
99.3by Blue Earth County, and is available until
99.4expended.

99.5
Sec. 6. POLLUTION CONTROL AGENCY
$
700,000
$
0
99.6$400,000 the first year is a onetime
99.7appropriation for a grant to the Koochiching
99.8Economic Development Authority for
99.9a feasibility study for a plasma torch
99.10gasification facility that converts municipal
99.11solid waste into energy and slag.
99.12$300,000 the first year is for the biomass
99.13gasification facilities air emissions study for
99.14the purpose of fully characterizing the air
99.15emissions exerted from biomass gasification
99.16facilities across a range of feedstocks. This
99.17is a onetime appropriation.

99.18
Sec. 7. DEPARTMENT OF HEALTH
$
1,000,000
$
1,000,000
99.19$1,000,000 the first year and $1,000,000
99.20the second year are appropriated to the
99.21commissioner of health for grants for lead
99.22environmental risk assessment conducted
99.23by local units of government, as required
99.24under Minnesota Statutes, section 144.9504,
99.25subdivision 2, and lead cleanup. Of
99.26these amounts, $500,000 the first year
99.27and $500,000 the second year must be
99.28awarded to the federally designated nonprofit
99.29organization operating the Clear Corps
99.30program. This is a onetime appropriation.

100.1ARTICLE 5
100.2COMMERCE

100.3    Section 1. Minnesota Statutes 2006, section 13.712, is amended by adding a
100.4subdivision to read:
100.5    Subd. 3. Vehicle protection product warrantors. Financial information provided
100.6to the commissioner of commerce by vehicle protection product warrantors is classified
100.7under section 59C.05, subdivision 3.
100.8EFFECTIVE DATE.This section is effective January 1, 2008.

100.9    Sec. 2. Minnesota Statutes 2006, section 45.011, subdivision 1, is amended to read:
100.10    Subdivision 1. Scope. As used in chapters 45 to 83, 155A, 332, 332A, 345, and
100.11359, and sections 325D.30 to 325D.42, 326.83 to 326.991, and 386.61 to 386.78, unless
100.12the context indicates otherwise, the terms defined in this section have the meanings given
100.13them.
100.14EFFECTIVE DATE.This section is effective January 1, 2008.

100.15    Sec. 3. [45.24] LICENSE TECHNOLOGY FEES.
100.16    (a) The commissioner may establish and maintain an electronic licensing database
100.17system for license origination, renewal, and tracking the completion of continuing
100.18education requirements by individual licensees who have continuing education
100.19requirements, and other related purposes.
100.20    (b) The commissioner shall pay for the cost of operating and maintaining the
100.21electronic database system described in paragraph (a) through a technology surcharge
100.22imposed upon the fee for license origination and renewal, for individual licenses that
100.23require continuing education.
100.24    (c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year
100.25licensing period, except as otherwise provided in paragraph (f), and shall be payable at the
100.26time of license origination and renewal.
100.27    (d) The Commerce Department technology account is hereby created as an account
100.28in the special revenue fund.
100.29    (e) The commissioner shall deposit the surcharge permitted under this section in
100.30the account created in paragraph (d), and funds in the account are appropriated to the
100.31commissioner in the amounts needed for purposes of this section.
101.1    (f) The commissioner shall temporarily reduce or suspend the surcharge as necessary
101.2if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of
101.3any calendar year and shall increase or decrease the surcharge as necessary to keep the
101.4fund balance at an adequate level but not in excess of $2,000,000.
101.5EFFECTIVE DATE.This section is effective the day following final enactment.

101.6    Sec. 4. Minnesota Statutes 2006, section 46.04, subdivision 1, is amended to read:
101.7    Subdivision 1. General. The commissioner of commerce, referred to in chapters
101.846 to 59A, and sections 332.12 to 332.29 chapter 332A, as the commissioner, is vested
101.9with all the powers, authority, and privileges which, prior to the enactment of Laws 1909,
101.10chapter 201, were conferred by law upon the public examiner, and shall take over all
101.11duties in relation to state banks, savings banks, trust companies, savings associations, and
101.12other financial institutions within the state which, prior to the enactment of chapter 201,
101.13were imposed upon the public examiner. The commissioner of commerce shall exercise
101.14a constant supervision, either personally or through the examiners herein provided for,
101.15over the books and affairs of all state banks, savings banks, trust companies, savings
101.16associations, credit unions, industrial loan and thrift companies, and other financial
101.17institutions doing business within this state; and shall, through examiners, examine each
101.18financial institution at least once every 24 calendar months. In satisfying this examination
101.19requirement, the commissioner may accept reports of examination prepared by a federal
101.20agency having comparable supervisory powers and examination procedures. With the
101.21exception of industrial loan and thrift companies which do not have deposit liabilities
101.22and licensed regulated lenders, it shall be the principal purpose of these examinations to
101.23inspect and verify the assets and liabilities of each and so far investigate the character
101.24and value of the assets of each institution as to determine with reasonable certainty that
101.25the values are correctly carried on its books. Assets and liabilities shall be verified in
101.26accordance with methods of procedure which the commissioner may determine to be
101.27adequate to carry out the intentions of this section. It shall be the further purpose of
101.28these examinations to assess the adequacy of capital protection and the capacity of the
101.29institution to meet usual and reasonably anticipated deposit withdrawals and other cash
101.30commitments without resorting to excessive borrowing or sale of assets at a significant
101.31loss, and to investigate each institution's compliance with applicable laws and rules. Based
101.32on the examination findings, the commissioner shall make a determination as to whether
101.33the institution is being operated in a safe and sound manner. None of the above provisions
101.34limits the commissioner in making additional examinations as deemed necessary or
101.35advisable. The commissioner shall investigate the methods of operation and conduct of
102.1these institutions and their systems of accounting, to ascertain whether these methods and
102.2systems are in accordance with law and sound banking principles. The commissioner may
102.3make requirements as to records as deemed necessary to facilitate the carrying out of the
102.4commissioner's duties and to properly protect the public interest. The commissioner may
102.5examine, or cause to be examined by these examiners, on oath, any officer, director,
102.6trustee, owner, agent, clerk, customer, or depositor of any financial institution touching
102.7the affairs and business thereof, and may issue, or cause to be issued by the examiners,
102.8subpoenas, and administer, or cause to be administered by the examiners, oaths. In
102.9case of any refusal to obey any subpoena issued under the commissioner's direction,
102.10the refusal may at once be reported to the district court of the district in which the bank
102.11or other financial institution is located, and this court shall enforce obedience to these
102.12subpoenas in the manner provided by law for enforcing obedience to subpoenas of the
102.13court. In all matters relating to official duties, the commissioner of commerce has the
102.14power possessed by courts of law to issue subpoenas and cause them to be served and
102.15enforced, and all officers, directors, trustees, and employees of state banks, savings banks,
102.16trust companies, savings associations, and other financial institutions within the state,
102.17and all persons having dealings with or knowledge of the affairs or methods of these
102.18institutions, shall afford reasonable facilities for these examinations, make returns and
102.19reports to the commissioner of commerce as the commissioner may require; attend and
102.20answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books,
102.21accounts, documents, and property as the commissioner may desire to inspect, and in all
102.22things aid the commissioner in the performance of duties.
102.23EFFECTIVE DATE.This section is effective January 1, 2008.

102.24    Sec. 5. Minnesota Statutes 2006, section 46.05, is amended to read:
102.2546.05 SUPERVISION OVER FINANCIAL INSTITUTIONS.
102.26    Every state bank, savings bank, trust company, savings association, debt
102.27management services provider, and other financial institutions shall be at all times under
102.28the supervision and subject to the control of the commissioner of commerce. If, and
102.29whenever in the performance of duties, the commissioner finds it necessary to make a
102.30special investigation of any financial institution under the commissioner's supervision,
102.31and other than a complete examination, the commissioner shall make a charge therefor to
102.32include only the necessary costs thereof. Such a fee shall be payable to the commissioner
102.33on the commissioner's making a request for payment.
102.34EFFECTIVE DATE.This section is effective January 1, 2008.

103.1    Sec. 6. Minnesota Statutes 2006, section 46.131, subdivision 2, is amended to read:
103.2    Subd. 2. Assessment authority. Each bank, trust company, savings bank, savings
103.3association, regulated lender, industrial loan and thrift company, credit union, motor
103.4vehicle sales finance company, debt prorating agency management services provider and
103.5insurance premium finance company organized under the laws of this state or required
103.6to be administered by the commissioner of commerce shall pay into the state treasury its
103.7proportionate share of the cost of maintaining the Department of Commerce.
103.8EFFECTIVE DATE.This section is effective January 1, 2008.

103.9    Sec. 7. Minnesota Statutes 2006, section 47.19, is amended to read:
103.1047.19 CORPORATION MAY BE MEMBER OR STOCKHOLDER OF
103.11FEDERAL AGENCY.
103.12    Any corporation is hereby empowered and authorized to become a member of,
103.13or stockholder in, any such agency, and to that end to purchase stock in, or securities
103.14of, or deposit money with, such agency and/or to comply with any other conditions of
103.15membership or credit; to borrow money from such agency upon such rates of interest, not
103.16exceeding the contract rate of interest in this state, and upon such terms and conditions
103.17as may be agreed upon by such corporation and such agency, for the purpose of making
103.18loans, paying withdrawals, paying maturities, paying debts, and for any other purpose not
103.19inconsistent with the objects of the corporation; provided, that the aggregate amount of the
103.20indebtedness, so incurred by such corporation, which shall be outstanding at any time shall
103.21not exceed 25 35 percent of the then total assets of the corporation; to assign, pledge and
103.22hypothecate its bonds, mortgages or other assets; and, in case of savings associations, to
103.23repledge with such agency the shares of stock in such association which any owner thereof
103.24may have pledged as collateral security, without obtaining the consent thereunto of such
103.25owner, as security for the repayment of the indebtedness so created by such corporation
103.26and as evidenced by its note or other evidence of indebtedness given for such borrowed
103.27money; and to do any and all things which shall or may be necessary or convenient in
103.28order to comply with and to obtain the benefits of the provisions of any act of Congress
103.29creating such agency, or any amendments thereto.

103.30    Sec. 8. Minnesota Statutes 2006, section 47.59, subdivision 6, is amended to read:
103.31    Subd. 6. Additional charges. (a) For purposes of this subdivision, "financial
103.32institution" includes a person described in subdivision 4, paragraph (a). In addition to the
103.33finance charges permitted by this section, a financial institution may contract for and
104.1receive the following additional charges that may be included in the principal amount
104.2of the loan or credit sale unpaid balances:
104.3    (1) official fees and taxes;
104.4    (2) charges for insurance as described in paragraph (b);
104.5    (3) with respect to a loan or credit sale contract secured by real estate, the following
104.6"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of
104.7circumvention or evasion of this section:
104.8    (i) fees or premiums for title examination, abstract of title, title insurance, surveys,
104.9or similar purposes;
104.10    (ii) fees for preparation of a deed, mortgage, settlement statement, or other
104.11documents, if not paid to the financial institution;
104.12    (iii) escrows for future payments of taxes, including assessments for improvements,
104.13insurance, and water, sewer, and land rents;
104.14    (iv) fees for notarizing deeds and other documents;
104.15    (v) appraisal and credit report fees; and
104.16    (vi) fees for determining whether any portion of the property is located in a flood
104.17zone and fees for ongoing monitoring of the property to determine changes, if any,
104.18in flood zone status;
104.19    (4) a delinquency charge on a payment, including the minimum payment due in
104.20connection with open-end credit, not paid in full on or before the tenth day after its due
104.21date in an amount not to exceed five percent of the amount of the payment or $5.20,
104.22whichever is greater;
104.23    (5) for a returned check or returned automatic payment withdrawal request, an
104.24amount not in excess of the service charge limitation in section 604.113, except that, on
104.25a loan transaction that is a consumer small loan as defined in section 47.60, subdivision
104.261, paragraph (a), in which cash is advanced in exchange for a personal check, the civil
104.27penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded
104.28or assessed against the borrower
; and
104.29    (6) charges for other benefits, including insurance, conferred on the borrower that
104.30are of a type that is not for credit.
104.31    (b) An additional charge may be made for insurance written in connection with the
104.32loan or credit sale contract, which may be included in the principal amount of the loan or
104.33credit sale unpaid balances:
104.34    (1) with respect to insurance against loss of or damage to property, or against
104.35liability arising out of the ownership or use of property, if the financial institution furnishes
104.36a clear, conspicuous, and specific statement in writing to the borrower setting forth the
105.1cost of the insurance if obtained from or through the financial institution and stating that
105.2the borrower may choose the person through whom the insurance is to be obtained;
105.3    (2) with respect to credit insurance or mortgage insurance providing life, accident,
105.4health, or unemployment coverage, if the insurance coverage is not required by the
105.5financial institution, and this fact is clearly and conspicuously disclosed in writing to
105.6the borrower, and the borrower gives specific, dated, and separately signed affirmative
105.7written indication of the borrower's desire to do so after written disclosure to the borrower
105.8of the cost of the insurance; and
105.9    (3) with respect to the vendor's single interest insurance, but only (i) to the extent
105.10that the insurer has no right of subrogation against the borrower; and (ii) to the extent that
105.11the insurance does not duplicate the coverage of other insurance under which loss is
105.12payable to the financial institution as its interest may appear, against loss of or damage
105.13to property for which a separate charge is made to the borrower according to clause (1);
105.14and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the
105.15financial institution to the borrower setting forth the cost of the insurance if obtained from
105.16or through the financial institution and stating that the borrower may choose the person
105.17through whom the insurance is to be obtained.
105.18    (c) In addition to the finance charges and other additional charges permitted by
105.19this section, a financial institution may contract for and receive the following additional
105.20charges in connection with open-end credit, which may be included in the principal
105.21amount of the loan or balance upon which the finance charge is computed:
105.22    (1) annual charges, not to exceed $50 per annum, payable in advance, for the
105.23privilege of opening and maintaining open-end credit;
105.24    (2) charges for the use of an automated teller machine;
105.25    (3) charges for any monthly or other periodic payment period in which the borrower
105.26has exceeded or, except for the financial institution's dishonor would have exceeded,
105.27the maximum approved credit limit, in an amount not in excess of the service charge
105.28permitted in section 604.113;
105.29    (4) charges for obtaining a cash advance in an amount not to exceed the service
105.30charge permitted in section 604.113; and
105.31    (5) charges for check and draft copies and for the replacement of lost or stolen
105.32credit cards.
105.33    (d) In addition to the finance charges and other additional charges permitted by this
105.34section, a financial institution may contract for and receive a onetime loan administrative
105.35fee not exceeding $25 in connection with closed-end credit, which may be included in the
105.36principal balance upon which the finance charge is computed. This paragraph applies only
106.1to closed-end credit in an original principal amount of $4,320 or less. The determination
106.2of an original principal amount must exclude the administrative fee contracted for and
106.3received according to this paragraph.

106.4    Sec. 9. Minnesota Statutes 2006, section 47.60, subdivision 2, is amended to read:
106.5    Subd. 2. Authorization, terms, conditions, and prohibitions. (a) In lieu of the
106.6interest, finance charges, or fees in any other law, a consumer small loan lender may
106.7charge the following:
106.8    (1) on any amount up to and including $50, a charge of $5.50 may be added;
106.9    (2) on amounts in excess of $50, but not more than $100, a charge may be added
106.10equal to ten percent of the loan proceeds plus a $5 administrative fee;
106.11    (3) on amounts in excess of $100, but not more than $250, a charge may be
106.12added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5
106.13administrative fee;
106.14    (4) for amounts in excess of $250 and not greater than the maximum in subdivision
106.151, paragraph (a), a charge may be added equal to six percent of the loan proceeds with a
106.16minimum of $17.50 plus a $5 administrative fee.
106.17    (b) The term of a loan made under this section shall be for no more than 30 calendar
106.18days.
106.19    (c) After maturity, the contract rate must not exceed 2.75 percent per month of the
106.20remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly
106.21rate in the contract for each calendar day the balance is outstanding.
106.22    (d) No insurance charges or other charges must be permitted to be charged, collected,
106.23or imposed on a consumer small loan except as authorized in this section.
106.24    (e) On a loan transaction in which cash is advanced in exchange for a personal
106.25check, a return check charge may be charged as authorized by section 604.113, subdivision
106.262
, paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph
106.27(b), may not be demanded or assessed against the borrower.
106.28    (f) A loan made under this section must not be repaid by the proceeds of another
106.29loan made under this section by the same lender or related interest. The proceeds from a
106.30loan made under this section must not be applied to another loan from the same lender or
106.31related interest. No loan to a single borrower made pursuant to this section shall be split or
106.32divided and no single borrower shall have outstanding more than one loan with the result
106.33of collecting a higher charge than permitted by this section or in an aggregate amount of
106.34principal exceed at any one time the maximum of $350.

107.1    Sec. 10. Minnesota Statutes 2006, section 47.62, subdivision 1, is amended to read:
107.2    Subdivision 1. General authority. Any person may establish and maintain one
107.3or more electronic financial terminals. Any financial institution may provide for its
107.4customers the use of an electronic financial terminal by entering into an agreement with
107.5any person who has established and maintains one or more electronic financial terminals if
107.6that person authorizes use of the electronic financial terminal to all financial institutions
107.7on a nondiscriminatory basis pursuant to section 47.64. Electronic financial terminals to
107.8be established and maintained in this state by financial institutions located in states other
107.9than Minnesota must file a notification to the commissioner as required in this section.
107.10The notification may be in the form lawfully required by the state regulator responsible
107.11for the examination and supervision of that financial institution. If there is no such
107.12requirement, then notification must be in the form required by this section for Minnesota
107.13financial institutions.

107.14    Sec. 11. Minnesota Statutes 2006, section 47.75, subdivision 1, is amended to read:
107.15    Subdivision 1. Retirement, health savings, and medical savings accounts. (a) A
107.16commercial bank, savings bank, savings association, credit union, or industrial loan and
107.17thrift company may act as trustee or custodian:
107.18    (1) under the Federal Self-Employed Individual Tax Retirement Act of 1962, as
107.19amended;
107.20    (2) of a medical savings account under the Federal Health Insurance Portability and
107.21Accountability Act of 1996, as amended;
107.22    (3) of a health savings account under the Medicare Prescription Drug, Improvement,
107.23and Modernization Act of 2003, as amended; and
107.24    (4) under the Federal Employee Retirement Income Security Act of 1974, as
107.25amended.
107.26    (b) The trustee or custodian may accept the trust funds if the funds are invested
107.27only in savings accounts or time deposits in the commercial bank, savings bank, savings
107.28association, credit union, or industrial loan and thrift company, except that health savings
107.29accounts may also be invested in transaction accounts. Health savings accounts invested in
107.30transaction accounts shall not be subject to the restrictions in section 48.512, subdivision
107.313. All funds held in the fiduciary capacity may be commingled by the financial institution
107.32in the conduct of its business, but individual records shall be maintained by the fiduciary
107.33for each participant and shall show in detail all transactions engaged under authority
107.34of this subdivision.
107.35EFFECTIVE DATE. This section is effective the day following final enactment.

108.1    Sec. 12. Minnesota Statutes 2006, section 48.15, subdivision 4, is amended to read:
108.2    Subd. 4. Retirement, health savings, and medical savings accounts. (a) A state
108.3bank may act as trustee or custodian:
108.4    (1) of a self-employed retirement plan under the Federal Self-Employed Individual
108.5Tax Retirement Act of 1962, as amended;
108.6    (2) of a medical savings account under the Federal Health Insurance Portability and
108.7Accountability Act of 1996, as amended;
108.8    (3) of a health savings account under the Medicare Prescription Drug, Improvement,
108.9and Modernization Act of 2003, as amended; and
108.10    (4) of an individual retirement account under the Federal Employee Retirement
108.11Income Security Act of 1974, as amended, if the bank's duties as trustee or custodian are
108.12essentially ministerial or custodial in nature and the funds are invested only (i) in the
108.13bank's own savings or time deposits, except that health savings accounts may also be
108.14invested in transaction accounts. Health savings accounts invested in transaction accounts
108.15shall not be subject to the restrictions in section 48.512, subdivision 3; or (ii) in any
108.16other assets at the direction of the customer if the bank does not exercise any investment
108.17discretion, invest the funds in collective investment funds administered by it, or provide
108.18any investment advice with respect to those account assets.
108.19    (b) Affiliated discount brokers may be utilized by the bank acting as trustee or
108.20custodian for self-directed IRAs, if specifically authorized and directed in appropriate
108.21documents. The relationship between the affiliated broker and the bank must be fully
108.22disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should
108.23be accurately disclosed. Provisions should be made for disclosure of any changes in
108.24commission rates prior to their becoming effective. The affiliated broker may not provide
108.25investment advice to the customer.
108.26    (c) All funds held in the fiduciary capacity may be commingled by the financial
108.27institution in the conduct of its business, but individual records shall be maintained by
108.28the fiduciary for each participant and shall show in detail all transactions engaged under
108.29authority of this subdivision.
108.30    (d) The authority granted by this section is in addition to, and not limited by, section
108.3147.75 .
108.32EFFECTIVE DATE. This section is effective the day following final enactment.

108.33    Sec. 13. Minnesota Statutes 2006, section 58.04, subdivision 1, is amended to read:
108.34    Subdivision 1. Residential mortgage originator licensing requirements. (a)
108.35Beginning August 1, 1999, No person shall act as a residential mortgage originator, or
109.1make residential mortgage loans without first obtaining a license from the commissioner
109.2according to the licensing procedures provided in this chapter.
109.3    (b) A licensee must be either a partnership, limited liability partnership, association,
109.4limited liability company, corporation, or other form of business organization, and must
109.5have and maintain at all times one of the following: approval as a mortgagee by either the
109.6federal Department of Housing and Urban Development or the Federal National Mortgage
109.7Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety bond
109.8or irrevocable letter of credit in the amount of $100,000. Net worth, net of intangibles,
109.9must be calculated in accordance with generally accepted accounting principles.
109.10    (c) The following persons are exempt from the residential mortgage originator
109.11licensing requirements:
109.12    (1) an employee of one mortgage originator licensee or one person holding a
109.13certificate of exemption;
109.14    (2) a person licensed as a real estate broker under chapter 82 who is not licensed to
109.15another real estate broker;
109.16    (3) an individual real estate licensee who is licensed to a real estate broker as
109.17described in clause (2) if:
109.18    (i) the individual licensee acts only under the name, authority, and supervision of the
109.19broker to whom the licensee is licensed;
109.20    (ii) the broker to whom the licensee is licensed obtains a certificate of exemption
109.21according to section 58.05, subdivision 2;
109.22    (iii) the broker does not collect an advance fee for its residential mortgage-related
109.23activities; and
109.24    (iv) the residential mortgage origination activities are incidental to the real estate
109.25licensee's primary activities as a real estate broker or salesperson;
109.26    (4) an individual licensed as a property/casualty or life/health insurance agent under
109.27chapter 60K if:
109.28    (i) the insurance agent acts on behalf of only one residential mortgage originator,
109.29which is in compliance with chapter 58;
109.30    (ii) the insurance agent has entered into a written contract with the mortgage
109.31originator under the terms of which the mortgage originator agrees to accept responsibility
109.32for the insurance agent's residential mortgage-related activities;
109.33    (iii) the insurance agent obtains a certificate of exemption under section 58.05,
109.34subdivision 2
; and
109.35    (iv) the insurance agent does not collect an advance fee for the insurance agent's
109.36residential mortgage-related activities;
110.1    (5) (1) a person who is not in the business of making residential mortgage loans and
110.2who makes no more than three such loans, with its own funds, during any 12-month period;
110.3    (6) (2) a financial institution as defined in section 58.02, subdivision 10;
110.4    (7) (3) an agency of the federal government, or of a state or municipal government;
110.5    (8) (4) an employee or employer pension plan making loans only to its participants;
110.6    (9) (5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result
110.7of a specific order issued by a court of competent jurisdiction; or
110.8    (10) (6) a person exempted by order of the commissioner.

110.9    Sec. 14. Minnesota Statutes 2006, section 58.04, subdivision 2, is amended to read:
110.10    Subd. 2. Residential mortgage servicer licensing requirements. (a) Beginning
110.11August 1, 1999, No person shall engage in activities or practices that fall within the
110.12definition of "servicing a residential mortgage loan" under section 58.02, subdivision
110.1322
, without first obtaining a license from the commissioner according to the licensing
110.14procedures provided in this chapter.
110.15    (b) The following persons are exempt from the residential mortgage servicer
110.16licensing requirements:
110.17    (1) a person licensed as a residential mortgage originator;
110.18    (2) an employee of one licensee or one person holding a certificate of exemption
110.19based on an exemption under this subdivision;
110.20    (3) (2) a person servicing loans made with its the person's own funds, if no more
110.21than three such loans are made in any 12-month period;
110.22    (4) (3) a financial institution as defined in section 58.02, subdivision 10;
110.23    (5) (4) an agency of the federal government, or of a state or municipal government;
110.24    (6) (5) an employee or employer pension plan making loans only to its participants;
110.25    (7) (6) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result
110.26of a specific order issued by a court of competent jurisdiction; or
110.27    (8) (7) a person exempted by order of the commissioner.

110.28    Sec. 15. Minnesota Statutes 2006, section 58.05, is amended to read:
110.2958.05 EXEMPTIONS FROM LICENSE.
110.30    Subdivision 1. Exempt person. An exempt person as defined by section 58.04,
110.31subdivision 1
, paragraph (b) (c), and subdivision 2, paragraph (b), is exempt from the
110.32licensing requirements of this chapter, but is subject to all other provisions of this chapter.
110.33    Subd. 3. Certificate of exemption. A person must obtain a certificate of exemption
110.34from the commissioner to qualify as an exempt person under section 58.04, subdivision
111.11
, paragraph (b) (c), as a real estate broker under clause (2), an insurance agent under
111.2clause (4), a financial institution under clause (6) (2), or by order of the commissioner
111.3under clause (10) (6); or under section 58.04, subdivision 2, paragraph (b), as a financial
111.4institution under clause (4) (3), or by order of the commissioner under clause (8) (7).

111.5    Sec. 16. Minnesota Statutes 2006, section 58.06, subdivision 2, is amended to read:
111.6    Subd. 2. Application contents. (a) The application must contain the name and
111.7complete business address or addresses of the license applicant. If The license applicant is
111.8must be a partnership, limited liability partnership, association, limited liability company,
111.9corporation, or other form of business organization, and the application must contain the
111.10names and complete business addresses of each partner, member, director, and principal
111.11officer. The application must also include a description of the activities of the license
111.12applicant, in the detail and for the periods the commissioner may require.
111.13    (b) An applicant must submit one of the following:
111.14    (1) evidence which shows, to the commissioner's satisfaction, that either the federal
111.15Department of Housing and Urban Development or the Federal National Mortgage
111.16Association has approved the applicant as a mortgagee;
111.17    (2) a surety bond or irrevocable letter of credit in the amount of not less than
111.18$100,000 in a form approved by the commissioner, issued by an insurance company
111.19or bank authorized to do so in this state. The bond or irrevocable letter of credit must
111.20be available for the recovery of expenses, fines, and fees levied by the commissioner
111.21under this chapter and for losses incurred by borrowers. The bond or letter of credit must
111.22be submitted with the license application, and evidence of continued coverage must be
111.23submitted with each renewal. Any change in the bond or letter of credit must be submitted
111.24for approval by the commissioner within ten days of its execution; or
111.25    (3) a copy of the applicant's most recent audited financial statement, including
111.26balance sheet, statement of income or loss, statements of changes in shareholder equity,
111.27and statement of changes in financial position. Financial statements must be as of a date
111.28within 12 months of the date of application.
111.29    (c) The application must also include all of the following:
111.30    (a) (1) an affirmation under oath that the applicant:
111.31    (1) will maintain competent staff and adequate staffing levels, through direct
111.32employees or otherwise, to meet the requirements of this chapter; (i) is in compliance
111.33with the requirements of section 58.125;
111.34    (ii) will maintain a perpetual roster of individuals employed as residential mortgage
111.35originators, including employees and independent contractors, which includes the date that
112.1mandatory initial education was completed. In addition, the roster must be made available
112.2to the commissioner on demand, within three business days of the commissioner's request;
112.3    (2) (iii) will advise the commissioner of any material changes to the information
112.4submitted in the most recent application within ten days of the change;
112.5    (3) (iv) will advise the commissioner in writing immediately of any bankruptcy
112.6petitions filed against or by the applicant or licensee;
112.7    (4) is financially solvent; (v) will maintain at all times either a net worth, net of
112.8intangibles, of at least $250,000 or a surety bond or irrevocable letter of credit in the
112.9amount of at least $100,000;
112.10    (5) (vi) complies with federal and state tax laws; and
112.11    (6) (vii) complies with sections 345.31 to 345.60, the Minnesota unclaimed property
112.12law; and
112.13    (7) is, or that a person in control of the license applicant is, at least 18 years of age;
112.14    (b) (2) information as to the mortgage lending, servicing, or brokering experience
112.15of the applicant and persons in control of the applicant;
112.16    (c) (3) information as to criminal convictions, excluding traffic violations, of persons
112.17in control of the license applicant;
112.18    (d) (4) whether a court of competent jurisdiction has found that the applicant or
112.19persons in control of the applicant have engaged in conduct evidencing gross negligence,
112.20fraud, misrepresentation, or deceit in performing an act for which a license is required
112.21under this chapter;
112.22    (e) (5) whether the applicant or persons in control of the applicant have been the
112.23subject of: an order of suspension or revocation, cease and desist order, or injunctive
112.24order, or order barring involvement in an industry or profession issued by this or another
112.25state or federal regulatory agency or by the Secretary of Housing and Urban Development
112.26within the ten-year period immediately preceding submission of the application; and
112.27    (f) (6) other information required by the commissioner.

112.28    Sec. 17. Minnesota Statutes 2006, section 58.06, is amended by adding a subdivision
112.29to read:
112.30    Subd. 3. Waiver. The commissioner may, for good cause shown, waive any
112.31requirement of this section with respect to any license application or to permit a license
112.32applicant to submit substituted information in its license application in lieu of the
112.33information required by this section.

112.34    Sec. 18. Minnesota Statutes 2006, section 58.08, subdivision 3, is amended to read:
113.1    Subd. 3. Exemption. Subdivisions 1 and Subdivision 2 do does not apply to
113.2mortgage originators or mortgage servicers who are approved as seller/servicers by the
113.3Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

113.4    Sec. 19. Minnesota Statutes 2006, section 58.10, subdivision 1, is amended to read:
113.5    Subdivision 1. Amounts. The following fees must be paid to the commissioner:
113.6    (1) for an initial residential mortgage originator license, $850 $2,550, $50 of which
113.7is credited to the consumer education account in the special revenue fund;
113.8    (2) for a renewal license, $450 $1,350, $50 of which is credited to the consumer
113.9education account in the special revenue fund;
113.10    (3) for an initial residential mortgage servicer's license, $1,000;
113.11    (4) for a renewal license, $500; and
113.12    (5) for a certificate of exemption, $100.

113.13    Sec. 20. [58.115] EXAMINATIONS.
113.14    The commissioner has under this chapter the same powers with respect to
113.15examinations that the commissioner has under section 46.04, including the authority to
113.16charge for the direct costs of the examination, including travel and per diem expenses.

113.17    Sec. 21. [58.126] EDUCATION REQUIREMENT.
113.18    No individual shall engage in residential mortgage origination or make residential
113.19mortgage loans, whether as an employee or independent contractor, before the completion
113.20of 15 hours of educational training which has been approved by the commissioner, and
113.21covering state and federal laws concerning residential mortgage lending.

113.22    Sec. 22. [59C.01] SHORT TITLE.
113.23    This chapter may be cited as the Vehicle Protection Product Act.
113.24EFFECTIVE DATE.This section is effective January 1, 2008.

113.25    Sec. 23. [59C.02] DEFINITIONS.
113.26    Subdivision 1. Terms. For purposes of this chapter, the terms defined in subdivisions
113.272 to 11 have the meanings given them.
113.28    Subd. 2. Administrator. "Administrator" means a third party other than the
113.29warrantor who is designated by the warrantor to be responsible for the administration
113.30of vehicle protection product warranties.
113.31    Subd. 3. Commissioner. "Commissioner" means the commissioner of commerce.
114.1    Subd. 4. Department. "Department" means the Department of Commerce.
114.2    Subd. 5. Incidental costs. "Incidental costs" means expenses specified in the
114.3warranty incurred by the warranty holder related to the failure of the vehicle protection
114.4product to perform as provided in the warranty. Incidental costs may include, without
114.5limitation, insurance policy deductibles, rental vehicle charges, the difference between the
114.6actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle,
114.7sales taxes, registration fees, transaction fees, and mechanical inspection fees.
114.8    Subd. 6. Service contract. "Service contract" means a contract or agreement as
114.9regulated under chapter 59B.
114.10    Subd. 7. Vehicle protection product. "Vehicle protection product" means a vehicle
114.11protection device, system, or service that:
114.12    (1) is installed on or applied to a vehicle;
114.13    (2) is designed to prevent loss or damage to a vehicle from a specific cause; and
114.14    (3) includes a written warranty.
114.15    For purposes of this section, vehicle protection product includes, without limitation,
114.16alarm systems; body part marking products; steering locks; window etch products; pedal
114.17and ignition locks; fuel and ignition kill switches; and electronic, radio, and satellite
114.18tracking devices.
114.19    Subd. 8. Vehicle protection product warranty or warranty. "Vehicle protection
114.20product warranty" or "warranty" means, for the purposes of this chapter, a written
114.21agreement by a warrantor that provides if the vehicle protection product fails to prevent
114.22loss or damage to a vehicle from a specific cause, that the warranty holder must be
114.23paid specified incidental costs by the warrantor as a result of the failure of the vehicle
114.24protection product to perform pursuant to the terms of the warranty.
114.25    Subd. 9. Vehicle protection product warrantor or warrantor. "Vehicle protection
114.26product warrantor" or "warrantor," for the purposes of this chapter, means a person who is
114.27contractually obligated to the warranty holder under the terms of the vehicle protection
114.28product warranty agreement. Warrantor does not include an authorized insurer providing a
114.29warranty reimbursement insurance policy.
114.30    Subd. 10. Warranty holder. "Warranty holder," for the purposes of this chapter,
114.31means the person who purchases a vehicle protection product or who is a permitted
114.32transferee.
114.33    Subd. 11. Warranty reimbursement insurance policy. "Warranty reimbursement
114.34insurance policy" means a policy of insurance that is issued to the vehicle protection
114.35product warrantor to provide reimbursement to, or to pay on behalf of, the warrantor all
115.1covered contractual obligations incurred by the warrantor under the terms and conditions
115.2of the insured vehicle protection product warranties sold by the warrantor.
115.3EFFECTIVE DATE.This section is effective January 1, 2008.

115.4    Sec. 24. [59C.03] SCOPE AND EXEMPTIONS.
115.5    (a) No vehicle protection product may be sold or offered for sale in this state unless
115.6the seller, warrantor, and administrator, if any, comply with the provisions of this chapter.
115.7    (b) Vehicle protection product warrantors and related vehicle protection product
115.8sellers and warranty administrators complying with this chapter are not required to comply
115.9with and are not subject to any other provision of chapters 59B to 72A, except that section
115.1072A.20, subdivision 38, shall apply to vehicle protection product warranties in the same
115.11manner it applies to service contracts.
115.12    (c) Service contract providers who do not sell vehicle protection products are not
115.13subject to the requirements of this chapter and sales of vehicle protection products are
115.14exempt from the requirements of chapter 59B.
115.15    (d) Warranties, indemnity agreements, and guarantees that are not provided as a part
115.16of a vehicle protection product are not subject to the provisions of this chapter.
115.17EFFECTIVE DATE.This section is effective January 1, 2008.

115.18    Sec. 25. [59C.04] REGISTRATION AND FILING REQUIREMENTS OF
115.19WARRANTORS.
115.20    Subdivision 1. General requirement. A person may not operate as a warrantor or
115.21represent to the public that the person is a warrantor unless the person is registered with
115.22the department on a form prescribed by the commissioner.
115.23    Subd. 2. Registration records. A registrant shall file a warrantor registration
115.24record annually and shall update it within 30 days of any change. A registration record
115.25must contain the following information:
115.26    (1) the warrantor's name, any fictitious names under which the warrantor does
115.27business in the state, principal office address, and telephone number;
115.28    (2) the name and address of the warrantor's agent for service of process in the state if
115.29other than the warrantor;
115.30    (3) the names of the warrantor's executive officer or officers directly responsible for
115.31the warrantor's vehicle protection product business;
116.1    (4) the name, address, and telephone number of any administrators designated by
116.2the warrantor to be responsible for the administration of vehicle protection product
116.3warranties in this state;
116.4    (5) a copy of the warranty reimbursement insurance policy or policies or other
116.5financial information required by section 59C.05;
116.6    (6) a copy of each warranty the warrantor proposes to use in this state; and
116.7    (7) a statement indicating under which provision of section 59C.05 the warrantor
116.8qualifies to do business in this state as a warrantor.
116.9    Subd. 3. Registration fee. The commissioner may charge each registrant a
116.10reasonable fee to offset the cost of processing the registration and maintaining the records
116.11in an amount not to exceed $250 annually. The information in subdivision 2, clauses (1)
116.12and (2), must be made available to the public.
116.13    Subd. 4. Renewal. If a registrant fails to register by the renewal deadline, the
116.14commissioner shall give them written notice of the failure and the registrant will have 30
116.15days to complete the renewal of the registration before the commissioner suspends the
116.16registration.
116.17    Subd. 5. Exception. An administrator or person who sells or solicits a sale of a
116.18vehicle protection product but who is not a warrantor shall not be required to register as a
116.19warrantor or be licensed under the insurance laws of this state to sell vehicle protection
116.20products.
116.21EFFECTIVE DATE.This section is effective January 1, 2008.

116.22    Sec. 26. [59C.05] FINANCIAL RESPONSIBILITY.
116.23    Subdivision 1. General requirements. No vehicle protection product may be sold,
116.24or offered for sale in this state unless the warrantor meets either the requirements of
116.25subdivision 2 or 3 in order to ensure adequate performance under the warranty. No other
116.26financial security requirements or financial standards for warrantors is required.
116.27    Subd. 2. Warranty reimbursement insurance policy. The vehicle protection
116.28product warrantor shall be insured under a warranty reimbursement insurance policy
116.29issued by an insurer authorized to do business in this state which provides that:
116.30    (1) the insurer will pay to, or on behalf of the warrantor, 100 percent of all sums
116.31that the warrantor is legally obligated to pay according to the warrantor's contractual
116.32obligations under the warrantor's vehicle protection product warranty;
116.33    (2) a true and correct copy of the warranty reimbursement insurance policy has been
116.34filed with the commissioner by the warrantor; and
116.35    (3) the policy contains the provision required in section 59C.06.
117.1    Subd. 3. Network or stockholder's equity. (1) The vehicle protection product
117.2warrantor, or its parent company in accordance with clause (2), shall maintain a net worth
117.3or stockholders' equity of $50,000,000; and
117.4    (2) the warrantor shall provide the commissioner with a copy of the warrantor's or
117.5the warrantor's parent company's most recent Form 10-K or Form 20-F filed with the
117.6Securities and Exchange Commission within the last calendar year or, if the warrantor
117.7does not file with the Securities and Exchange Commission, a copy of the warrantor or
117.8the warrantor's parent company's audited financial statements that shows a net worth of
117.9the warrantor or its parent company of at least $50,000,000. If the warrantor's parent
117.10company's Form 10-K, Form 20-F, or audited financial statements are filed to meet
117.11the warrantor's financial stability requirement, then the parent company shall agree to
117.12guarantee the obligations of the warrantor relating to warranties issued by the warrantor in
117.13this state. The financial information provided to the commissioner under this paragraph
117.14is trade secret information for purposes of section 13.37.
117.15EFFECTIVE DATE.This section is effective January 1, 2008.

117.16    Sec. 27. [59C.06] WARRANTY REIMBURSEMENT POLICY
117.17REQUIREMENTS.
117.18    No warranty reimbursement insurance policy may be issued, sold, or offered for sale
117.19in this state unless the policy meets the following conditions:
117.20    (1) the policy states that the issuer of the policy will reimburse, or pay on behalf of
117.21the vehicle protection product warrantor, all covered sums that the warrantor is legally
117.22obligated to pay, or will provide all service that the warrantor is legally obligated to
117.23perform according to the warrantor's contractual obligations under the provisions of the
117.24insured warranties sold by the warrantor;
117.25    (2) the policy states that in the event payment due under the terms of the warranty is
117.26not provided by the warrantor within 60 days after proof of loss has been filed according
117.27to the terms of the warranty by the warranty holder, the warranty holder may file directly
117.28with the warranty reimbursement insurance company for reimbursement;
117.29    (3) the policy provides that a warranty reimbursement insurance company that
117.30insures a warranty is deemed to have received payment of the premium if the warranty
117.31holder paid for the vehicle protection product and the insurer's liability under the policy
117.32shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the
117.33issuance of a warranty to the insurer; and
117.34    (4) the policy has the following provisions regarding cancellation of the policy:
118.1    (i) the issuer of a reimbursement insurance policy shall not cancel the policy until a
118.2notice of cancellation in writing has been mailed or delivered to the commissioner and
118.3each insured warrantor;
118.4    (ii) the cancellation of a reimbursement insurance policy shall not reduce the issuer's
118.5responsibility for vehicle protection products sold prior to the date of cancellation; and
118.6    (iii) in the event an insurer cancels a policy that a warrantor has filed with the
118.7commissioner, the warrantor shall do either of the following:
118.8    (A) file a copy of a new policy with the commissioner, before the termination of
118.9the prior policy, providing no lapse in coverage following the termination of the prior
118.10policy; or
118.11    (B) discontinue offering warranties as of the termination date of the policy until a
118.12new policy becomes effective and is accepted by the commissioner.
118.13EFFECTIVE DATE.This section is effective January 1, 2008.

118.14    Sec. 28. [59C.07] DISCLOSURE TO WARRANTY HOLDER.
118.15    A vehicle protection product warranty must not be sold or offered for sale in this
118.16state unless the warranty:
118.17    (1) states, "The obligations of the warrantor to the warranty holder are guaranteed
118.18under a warranty reimbursement insurance policy" if the warrantor elects to meet its
118.19financial responsibility obligations under section 59C.05, subdivision 2, or states "The
118.20obligations of the warrantor under this warranty are backed by the full faith and credit
118.21of the warrantor" if the warrantor elects to meet its financial responsibility obligations
118.22under section 59C.05, subdivision 3;
118.23    (2) states that in the event a warranty holder must make a claim against a party other
118.24than the warranty reimbursement insurance policy issuer, the warranty holder is entitled to
118.25make a direct claim against the insurer upon the failure of the warrantor to pay any claim
118.26or meet any obligation under the terms of the warranty within 60 days after proof of loss
118.27has been filed with the warrantor, if the warrantor elects to meet its financial responsibility
118.28obligations under section 59C.05, subdivision 2;
118.29    (3) states the name and address of the issuer of the warranty reimbursement
118.30insurance policy, and this information need not be preprinted on the warranty form, but
118.31may be added to or stamped on the warranty, if the warrantor elects to meet its financial
118.32responsibility obligations under section 59C.05, subdivision 2;
118.33    (4) identifies the warrantor, the seller, and the warranty holder;
119.1    (5) sets forth the total purchase price and the terms under which it is to be paid,
119.2however, the purchase price is not required to be preprinted on the vehicle protection
119.3product warranty and may be negotiated with the consumer at the time of sale;
119.4    (6) sets forth the procedure for making a claim, including a telephone number;
119.5    (7) specifies the payments or performance to be provided under the warranty
119.6including payments for incidental costs expressed as either a fixed amount specified in the
119.7warranty or sales agreement or by the use of a formula itemizing specific incidental costs
119.8incurred by the warranty holder, the manner of calculation or determination of payments
119.9or performance, and any limitations, exceptions, or exclusions;
119.10    (8) sets forth all of the obligations and duties of the warranty holder such as the duty
119.11to protect against any further damage to the vehicle, the obligation to notify the warrantor
119.12in advance of any repair, or other similar requirements, if any;
119.13    (9) sets forth any terms, restrictions, or conditions governing transferability and
119.14cancellation of the warranty, if any; and
119.15    (10) contains a disclosure that reads substantially as follows: "This agreement is a
119.16product warranty and is not insurance."
119.17EFFECTIVE DATE.This section is effective January 1, 2008.

119.18    Sec. 29. [59C.08] PROHIBITED ACTS.
119.19    (a) Unless licensed as an insurance company, a vehicle protection product warrantor
119.20shall not use in its name, contracts, or literature, any of the words "insurance," "casualty,"
119.21"surety," "mutual," or any other words descriptive of the insurance, casualty, or surety
119.22business or deceptively similar to the name or description of any insurance or surety
119.23corporation, or any other vehicle protection product warrantor. A warrantor may use the
119.24term "guaranty" or similar word in the warrantor's name.
119.25    (b) A vehicle protection product seller or warrantor may not require as a condition of
119.26financing that a retail purchaser of a motor vehicle purchase a vehicle protection product.
119.27EFFECTIVE DATE.This section is effective January 1, 2008.

119.28    Sec. 30. [59C.09] RECORD KEEPING.
119.29    (a) All vehicle protection product warrantors shall keep accurate accounts, books,
119.30and records concerning transactions regulated under this chapter.
119.31    (b) A vehicle protection product warrantor's accounts, books, and records must
119.32include:
119.33    (1) copies of all vehicle protection product warranties;
120.1    (2) the name and address of each warranty holder; and
120.2    (3) the dates, amounts, and descriptions of all receipts, claims, and expenditures.
120.3    (c) A vehicle protection product warrantor shall retain all required accounts, books,
120.4and records pertaining to each warranty holder for at least two years after the specified
120.5period of coverage has expired. A warrantor discontinuing business in this state shall
120.6maintain its records until it furnishes the commissioner satisfactory proof that it has
120.7discharged all obligations to warranty holders in this state.
120.8EFFECTIVE DATE.This section is effective January 1, 2008.

120.9    Sec. 31. [59C.10] COMMISSIONER'S POWERS AND DUTIES.
120.10    Subdivision 1. Examination and compliance powers. The commissioner may
120.11conduct examinations of warrantors, administrators, or other persons to enforce this
120.12chapter and protect warranty holders in this state. Upon request of the commissioner, a
120.13warrantor shall make available to the commissioner all accounts, books, and records
120.14concerning vehicle protection products sold by the warrantor and transactions regulated
120.15under this chapter that are necessary to enable the commissioner to reasonably determine
120.16compliance or noncompliance with this chapter.
120.17    Subd. 2. Enforcement authority. The commissioner may take action that is
120.18necessary or appropriate to enforce the provisions of this chapter and the commissioner's
120.19rules and orders and to protect warranty holders in this state. The commissioner has the
120.20enforcement authority in chapter 45 available to enforce the provisions of the chapter and
120.21the rules adopted pursuant to it.
120.22EFFECTIVE DATE.This section is effective January 1, 2008.

120.23    Sec. 32. [59C.12] APPLICABILITY.
120.24    This chapter applies to all vehicle protection products sold or offered for sale on
120.25or after the effective date of this chapter. The failure of any person to comply with this
120.26chapter before its effective date is not admissible in any court proceeding, administrative
120.27proceeding, arbitration, or alternative dispute resolution proceeding and may not otherwise
120.28be used to prove that the action of any person or the affected vehicle protection product
120.29was unlawful or otherwise improper. The adoption of this chapter does not imply that
120.30a vehicle protection product warranty was insurance before the effective date of this
120.31chapter. Nothing in this section may be construed to require the application of the penalty
120.32provisions where this section is not applicable.
120.33EFFECTIVE DATE.This section is effective January 1, 2008.

121.1    Sec. 33. [60K.365] PRODUCER TRAINING REQUIREMENTS FOR
121.2LONG-TERM CARE PARTNERSHIP PROGRAM INSURANCE PRODUCTS.
121.3    (a) An individual may not sell, solicit, or negotiate long-term care insurance
121.4unless the individual is licensed as an insurance producer for accident and health or
121.5sickness insurance or life insurance and has completed an initial training course and
121.6ongoing training every 24 months thereafter. The training shall meet the requirements of
121.7paragraph (b).
121.8    (b) The initial training course required by this subdivision shall be no less than
121.9eight hours and the ongoing training courses required by this subdivision shall be no less
121.10than four hours every 24 months. The courses shall be approved by the Department of
121.11Commerce and may be approved as continuing education courses under section 60K.56.
121.12The courses shall consist of topics related to long-term care insurance, long-term care
121.13services, and, if applicable, qualified state long-term care insurance partnership programs,
121.14including but not limited to:
121.15    (1) state and federal regulations and requirements and the relationship between
121.16qualified state long-term care insurance partnership programs and other public and private
121.17coverage of long-term care services, including Medicaid;
121.18    (2) available long-term care services and providers;
121.19    (3) changes or improvements in long-term care services or providers;
121.20    (4) alternatives to the purchase of private long-term care insurance;
121.21    (5) the effect of inflation on benefits and the importance of inflation protection; and
121.22    (6) consumer suitability standards and guidelines.
121.23    The training required by this subdivision shall not include training that is insurer or
121.24company product specific or that includes any sales or marketing information, materials,
121.25or training, other than those required by state or federal law.
121.26    (c) Insurers shall obtain verification that a producer has received the training
121.27required by this subdivision before a producer is permitted to sell, solicit, or negotiate the
121.28insurer's long-term care insurance products. Insurers shall maintain records verifying
121.29that the producer has received the training contained in this subdivision and make that
121.30verification available to the commissioner upon request.
121.31    (d) Currently licensed producers must complete the initial training course by January
121.321, 2008.
121.33EFFECTIVE DATE.This section is effective the day following final enactment.

121.34    Sec. 34. Minnesota Statutes 2006, section 60K.55, subdivision 2, is amended to read:
122.1    Subd. 2. Licensing fees. (a) In addition to fees provided for examinations and the
122.2technology surcharge required under paragraph (d), each insurance producer licensed
122.3under this chapter shall pay to the commissioner a fee of:
122.4    (1) $50 for an initial life, accident and health, property, or casualty license issued to
122.5an individual insurance producer, and a fee of $50 for each renewal;
122.6    (2) $50 for an initial variable life and variable annuity license issued to an individual
122.7insurance producer, and a fee of $50 for each renewal;
122.8    (3) $50 for an initial personal lines license issued to an individual insurance
122.9producer, and a fee of $50 for each renewal;
122.10    (4) $50 for an initial limited lines license issued to an individual insurance producer,
122.11and a fee of $50 for each renewal;
122.12    (5) $200 for an initial license issued to a business entity, and a fee of $200 for each
122.13renewal; and
122.14    (6) $500 for an initial surplus lines license, and a fee of $500 for each renewal.
122.15    (b) Initial licenses issued under this chapter are valid for a period not to exceed 24
122.16months and expire on October 31 of the renewal year assigned by the commissioner.
122.17Each renewal insurance producer license is valid for a period of 24 months. Licensees
122.18who submit renewal applications postmarked or delivered on or before October 15 of the
122.19renewal year may continue to transact business whether or not the renewal license has been
122.20received by November 1. Licensees who submit applications postmarked or delivered
122.21after October 15 of the renewal year must not transact business after the expiration date
122.22of the license until the renewal license has been received.
122.23    (c) All fees are nonreturnable, except that an overpayment of any fee may be
122.24refunded upon proper application.
122.25    (d) In addition to the fees required under paragraph (a), individual insurance
122.26producers shall pay, for each initial license and renewal, a technology surcharge of up to
122.27$40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted
122.28under that section.
122.29EFFECTIVE DATE.This section is effective October 1, 2007.

122.30    Sec. 35. Minnesota Statutes 2006, section 65B.44, subdivision 2, is amended to read:
122.31    Subd. 2. Medical expense benefits. (a) Medical expense benefits shall reimburse
122.32all reasonable expenses for necessary:
122.33    (1) medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services,
122.34including prosthetic devices and items that provide relief from any injury;
122.35    (2) prescription drugs;
123.1    (3) ambulance and all other transportation expenses incurred in traveling to receive
123.2other covered medical expense benefits;
123.3    (4) sign interpreting and language translation services, other than such services
123.4provided by a family member of the patient, related to the receipt of medical, surgical,
123.5x-ray, optical, dental, chiropractic, hospital, extended care, nursing, and rehabilitative
123.6services; and
123.7    (5) hospital, extended care, and nursing services.
123.8    (b) Hospital room and board benefits may be limited, except for intensive care
123.9facilities, to the regular daily semiprivate room rates customarily charged by the institution
123.10in which the recipient of benefits is confined.
123.11    (c) Such benefits shall also include necessary remedial treatment and services
123.12recognized and permitted under the laws of this state for an injured person who relies
123.13upon spiritual means through prayer alone for healing in accordance with that person's
123.14religious beliefs.
123.15    (d) Medical expense loss includes medical expenses accrued prior to the death of a
123.16person notwithstanding the fact that benefits are paid or payable to the decedent's survivors.
123.17    (e) Medical expense benefits for rehabilitative services shall be subject to the
123.18provisions of section 65B.45.

123.19    Sec. 36. Minnesota Statutes 2006, section 65B.44, subdivision 3, is amended to read:
123.20    Subd. 3. Disability and income loss benefits. Disability and income loss benefits
123.21shall provide compensation for 85 percent of the injured person's loss of present and future
123.22gross income from inability to work proximately caused by the nonfatal injury subject
123.23to a maximum of $250 $500 per week. Loss of income includes the costs incurred by a
123.24self-employed person to hire substitute employees to perform tasks which are necessary to
123.25maintain the income of the injured person, which are normally performed by the injured
123.26person, and which cannot be performed because of the injury.
123.27    If the injured person is unemployed at the time of injury and is receiving or is
123.28eligible to receive unemployment benefits under chapter 268, but the injured person loses
123.29eligibility for those benefits because of inability to work caused by the injury, disability
123.30and income loss benefits shall provide compensation for the lost benefits in an amount
123.31equal to the unemployment benefits which otherwise would have been payable, subject to
123.32a maximum of $250 $500 per week.
123.33    Compensation under this subdivision shall be reduced by any income from substitute
123.34work actually performed by the injured person or by income the injured person would
124.1have earned in available appropriate substitute work which the injured person was capable
124.2of performing but unreasonably failed to undertake.
124.3    For the purposes of this section "inability to work" means disability which prevents
124.4the injured person from engaging in any substantial gainful occupation or employment
124.5on a regular basis, for wage or profit, for which the injured person is or may by training
124.6become reasonably qualified. If the injured person returns to employment and is unable by
124.7reason of the injury to work continuously, compensation for lost income shall be reduced
124.8by the income received while the injured person is actually able to work. The weekly
124.9maximums may not be prorated to arrive at a daily maximum, even if the injured person
124.10does not incur loss of income for a full week.
124.11    For the purposes of this section, an injured person who is "unable by reason of the
124.12injury to work continuously" includes, but is not limited to, a person who misses time
124.13from work, including reasonable travel time, and loses income, vacation, or sick leave
124.14benefits, to obtain medical treatment for an injury arising out of the maintenance or use
124.15of a motor vehicle.

124.16    Sec. 37. Minnesota Statutes 2006, section 65B.44, subdivision 4, is amended to read:
124.17    Subd. 4. Funeral and burial expenses. Funeral and burial benefits shall be
124.18reasonable expenses not in excess of $2,000 $5,000, including expenses for cremation or
124.19delivery under the Uniform Anatomical Gift Act (1987), sections 525.921 to 525.9224.

124.20    Sec. 38. Minnesota Statutes 2006, section 65B.44, subdivision 5, is amended to read:
124.21    Subd. 5. Replacement service and loss. Replacement service loss benefits shall
124.22reimburse all expenses reasonably incurred by or on behalf of the nonfatally injured
124.23person in obtaining usual and necessary substitute services in lieu of those that, had the
124.24injured person not been injured, the injured person would have performed not for income
124.25but for direct personal benefit or for the benefit of the injured person's household; if
124.26the nonfatally injured person normally, as a full time responsibility, provides care and
124.27maintenance of a home with or without children, the benefit to be provided under this
124.28subdivision shall be the reasonable value of such care and maintenance or the reasonable
124.29expenses incurred in obtaining usual and necessary substitute care and maintenance of
124.30the home, whichever is greater. These benefits shall be subject to a maximum of $200
124.31$600 per week. All replacement services loss sustained on the date of injury and the first
124.32seven days thereafter is excluded in calculating replacement services loss.

124.33    Sec. 39. Minnesota Statutes 2006, section 65B.47, subdivision 7, is amended to read:
125.1    Subd. 7. Adding policies together. Unless a policyholder makes a specific election
125.2not to have two or more policies added together the limit of liability for basic economic
125.3loss benefits for two or more motor vehicles may not must be added together to determine
125.4the limit of insurance coverage available to an injured person for any one accident. An
125.5insurer shall notify policyholders that they may elect not to have two or more policies
125.6added together.

125.7    Sec. 40. Minnesota Statutes 2006, section 65B.54, subdivision 1, is amended to read:
125.8    Subdivision 1. Payment of basic economic loss benefits. Basic economic loss
125.9benefits are payable monthly as loss accrues. Loss accrues not when injury occurs, but as
125.10income loss, replacement services loss, survivor's economic loss, survivor's replacement
125.11services loss, or medical or funeral expense is incurred. Benefits are overdue if not
125.12paid within 30 days after the reparation obligor receives reasonable proof of the fact
125.13and amount of loss realized, unless the reparation obligor elects to accumulate claims
125.14for periods not exceeding 31 days and pays them within 15 days after the period of
125.15accumulation. However, if the insurer notifies the insured that it is denying benefits, the
125.16insured need not continue to provide the insurer with proof of the bills, losses, or expenses.
125.17If reasonable proof is supplied as to only part of a claim, and the part totals $100 or more,
125.18the part is overdue if not paid within the time provided by this section. Medical or funeral
125.19expense benefits may be paid by the reparation obligor directly to persons supplying
125.20products, services, or accommodations to the claimant.

125.21    Sec. 41. Minnesota Statutes 2006, section 65B.54, is amended by adding a subdivision
125.22to read:
125.23    Subd. 6. Unethical practices. (a) A licensed health care provider shall not initiate
125.24direct contact, in person, over the telephone, or by other electronic means, with any person
125.25who has suffered an injury arising out of the maintenance or use of an automobile, for the
125.26purpose of influencing that person to receive treatment or to purchase any good or item
125.27from the licensee or anyone associated with the licensee. This subdivision prohibits such
125.28direct contact whether initiated by the licensee individually or on behalf of the licensee by
125.29any employee, independent contractor, agent, or third party. This subdivision does not
125.30apply when an injured person voluntarily initiates contact with a licensee.
125.31    (b) This subdivision does not prohibit licensees from mailing advertising literature
125.32directly to such persons, so long as:
125.33    (1) the word "ADVERTISEMENT" appears clearly and conspicuously at the
125.34beginning of the written materials;
126.1    (2) the name of the individual licensee appears clearly and conspicuously within
126.2the written materials;
126.3    (3) the licensee is clearly identified as a licensed health care provider within the
126.4written materials; and
126.5    (4) the licensee does not initiate, individually or through any employee, independent
126.6contractor, agent, or third party, direct contact with the person after the written materials
126.7are sent.
126.8    (c) This subdivision does not apply to:
126.9    (1) advertising that does not involve direct contact with specific prospective patients,
126.10in public media such as telephone directories, professional directories, ads in newspapers
126.11and other periodicals, radio or television ads, Web sites, billboards, or similar media; or
126.12    (2) general marketing practices such as giving lectures; participating in special
126.13events, trade shows, or meetings of organizations; or making presentations relative to
126.14the benefits of chiropractic treatment; or
126.15    (3) contact with friends or relatives, or statements made in a social setting.
126.16    (d) A violation of this subdivision is grounds for the licensing authority to take
126.17disciplinary action against the licensee, including revocation in appropriate cases.

126.18    Sec. 42. Minnesota Statutes 2006, section 80A.28, subdivision 1, is amended to read:
126.19    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of
126.20$100 for every application for registration or notice filing. There shall be an additional fee
126.21of one-tenth of one percent of the maximum aggregate offering price at which the securities
126.22are to be offered in this state, and the maximum combined fees shall not exceed $300.
126.23    (b) When an application for registration is withdrawn before the effective date or a
126.24preeffective stop order is entered under section 80A.13, subdivision 1, all but the $100
126.25filing fee shall be returned. If an application to register securities is denied, the total of all
126.26fees received shall be retained.
126.27    (c) Where a filing is made in connection with a federal covered security under
126.28section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing.
126.29If the filing is made in connection with redeemable securities issued by an open end
126.30management company or unit investment trust, as defined in the Investment Company Act
126.31of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate
126.32offering price at which the securities are to be offered in this state during the notice filing
126.33period. The fee must be paid at the time of the initial filing and thereafter in connection
126.34with each renewal no later than July 1 of each year and must be sufficient to cover the
126.35shares the issuer expects to sell in this state over the next 12 months. If during a current
127.1notice filing the issuer determines it is likely to sell shares in excess of the shares for
127.2which fees have been paid to the commissioner, the issuer shall submit an amended notice
127.3filing to the commissioner under section 80A.122, subdivision 1, clause (3), together with
127.4a fee of 1/20 of one percent of the maximum aggregate offering price of the additional
127.5shares. Shares for which a fee has been paid, but which have not been sold at the time
127.6of expiration of the notice filing, may not be sold unless an additional fee to cover the
127.7shares has been paid to the commissioner as provided in this section and section 80A.122,
127.8subdivision 4a
. If the filing is made in connection with redeemable securities issued by
127.9such a company or trust, there is no maximum fee for securities filings made according to
127.10this paragraph. If the filing is made in connection with any other federal covered security
127.11under Section 18(b)(2) of the Securities Act of 1933, there is an additional fee of one-tenth
127.12of one percent of the maximum aggregate offering price at which the securities are to be
127.13offered in this state, and the combined fees shall not exceed $300. Beginning with fiscal
127.14year 2001 and continuing each fiscal year thereafter, as of the last day of each fiscal year,
127.15the commissioner shall determine the total amount of all fees that were collected under
127.16this paragraph in connection with any filings made for that fiscal year for securities of an
127.17open-end investment company on behalf of a security that is a federal covered security
127.18pursuant to section 18(b)(2) of the Securities Act of 1933. To the extent the total fees
127.19collected by the commissioner in connection with these filings exceed $25,000,000 in a
127.20fiscal year, the commissioner shall refund, on a pro rata basis, to all persons who paid any
127.21fees for that fiscal year, the amount of fees collected by the commissioner in excess of
127.22$25,000,000. No individual refund is required of amounts of $100 or less for a fiscal year.

127.23    Sec. 43. Minnesota Statutes 2006, section 80A.65, subdivision 1, is amended to read:
127.24    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of
127.25$100 for every application for registration or notice filing. There shall be an additional fee
127.26of one-tenth of one percent of the maximum aggregate offering price at which the securities
127.27are to be offered in this state, and the maximum combined fees shall not exceed $300.
127.28    (b) When an application for registration is withdrawn before the effective date
127.29or a preeffective stop order is entered under section 80A.54, all but the $100 filing fee
127.30shall be returned. If an application to register securities is denied, the total of all fees
127.31received shall be retained.
127.32    (c) Where a filing is made in connection with a federal covered security under
127.33section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing.
127.34If the filing is made in connection with redeemable securities issued by an open end
127.35management company or unit investment trust, as defined in the Investment Company Act
128.1of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate
128.2offering price at which the securities are to be offered in this state during the notice filing
128.3period. The fee must be paid at the time of the initial filing and thereafter in connection
128.4with each renewal no later than July 1 of each year and must be sufficient to cover the
128.5shares the issuer expects to sell in this state over the next 12 months. If during a current
128.6notice filing the issuer determines it is likely to sell shares in excess of the shares for which
128.7fees have been paid to the administrator, the issuer shall submit an amended notice filing
128.8to the administrator under section 80A.50, together with a fee of 1/20 of one percent of the
128.9maximum aggregate offering price of the additional shares. Shares for which a fee has
128.10been paid, but which have not been sold at the time of expiration of the notice filing, may
128.11not be sold unless an additional fee to cover the shares has been paid to the administrator
128.12as provided in this section and section 80A.50. If the filing is made in connection with
128.13redeemable securities issued by such a company or trust, there is no maximum fee for
128.14securities filings made according to this paragraph. If the filing is made in connection
128.15with any other federal covered security under Section 18(b)(2) of the Securities Act of
128.161933, there is an additional fee of one-tenth of one percent of the maximum aggregate
128.17offering price at which the securities are to be offered in this state, and the combined fees
128.18shall not exceed $300. Beginning with fiscal year 2001 and continuing each fiscal year
128.19thereafter, as of the last day of each fiscal year, the administrator shall determine the total
128.20amount of all fees that were collected under this paragraph in connection with any filings
128.21made for that fiscal year for securities of an open-end investment company on behalf of a
128.22security that is a federal covered security pursuant to section 18(b)(2) of the Securities
128.23Act of 1933. To the extent the total fees collected by the administrator in connection
128.24with these filings exceed $25,000,000 in a fiscal year, the administrator shall refund, on
128.25a pro rata basis, to all persons who paid any fees for that fiscal year, the amount of fees
128.26collected by the administrator in excess of $25,000,000. No individual refund is required
128.27of amounts of $100 or less for a fiscal year.

128.28    Sec. 44. Minnesota Statutes 2006, section 82.24, subdivision 1, is amended to read:
128.29    Subdivision 1. Amounts. The following fees shall be paid to the commissioner:
128.30    (a) a fee of $150 for each initial individual broker's license, and a fee of $100 for
128.31each renewal thereof;
128.32    (b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each
128.33renewal thereof;
128.34    (c) a fee of $85 for each initial real estate closing agent license, and a fee of $60
128.35for each renewal thereof;
129.1    (d) a fee of $150 for each initial corporate, limited liability company, or partnership
129.2license, and a fee of $100 for each renewal thereof;
129.3    (e) a fee for payment to the education, research and recovery fund in accordance
129.4with section 82.43;
129.5    (f) a fee of $20 for each transfer;
129.6    (g) a fee of $50 for license reinstatement; and
129.7    (h) a fee of $20 for reactivating a corporate, limited liability company, or partnership
129.8license without land; and
129.9    (i) in addition to the fees required under this subdivision, individual licensees under
129.10clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge
129.11of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge
129.12as permitted under that section.
129.13EFFECTIVE DATE.This section is effective the day following final enactment.

129.14    Sec. 45. Minnesota Statutes 2006, section 82.24, subdivision 4, is amended to read:
129.15    Subd. 4. Deposit of fees. Unless otherwise provided by this chapter, all fees
129.16collected under this chapter shall be deposited in the state treasury. The technology
129.17surcharge shall be deposited as required under section 45.24.
129.18EFFECTIVE DATE.This section is effective the day following final enactment.

129.19    Sec. 46. Minnesota Statutes 2006, section 82B.09, subdivision 1, is amended to read:
129.20    Subdivision 1. Amounts. (a) The following fees must be paid to the commissioner:
129.21    (1) $150 for each initial individual real estate appraiser's license; and
129.22    (2) $100 for each renewal.
129.23    (b) In addition to the fees required under this subdivision, individual real estate
129.24appraisers shall pay a technology surcharge of up to $40 under section 45.24, unless the
129.25commissioner has adjusted the surcharge as permitted under that section.
129.26EFFECTIVE DATE.This section is effective the day following final enactment.

129.27    Sec. 47. Minnesota Statutes 2006, section 118A.03, subdivision 2, is amended to read:
129.28    Subd. 2. In lieu of surety bond. The following are the allowable forms of collateral
129.29in lieu of a corporate surety bond:
129.30    (1) United States government Treasury bills, Treasury notes, Treasury bonds;
129.31    (2) issues of United States government agencies and instrumentalities as quoted by a
129.32recognized industry quotation service available to the government entity;
130.1    (3) general obligation securities of any state or local government with taxing powers
130.2which is rated "A" or better by a national bond rating service, or revenue obligation
130.3securities of any state or local government with taxing powers which is rated "AA" or
130.4better by a national bond rating service;
130.5    (4) unrated general obligation securities of a local government with taxing powers
130.6may be pledged as collateral against funds deposited by that same local government entity;
130.7    (5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a
130.8municipality accompanied by written evidence that the bank's public debt is rated "AA" or
130.9better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and
130.10    (6) time deposits that are fully insured by any federal agency.

130.11    Sec. 48. Minnesota Statutes 2006, section 148.102, is amended by adding a subdivision
130.12to read:
130.13    Subd. 3a. Reparation obligors. A reparation obligor as defined in section 65B.43,
130.14subdivision 9, may submit any relevant information to the board in any case in which
130.15the reparation obligor has reason to believe that charges being billed by a licensee are
130.16fraudulent, unreasonable, or inconsistent with treatment actually received by the injured
130.17party involved.
130.18    A reparation obligor that makes a report under this section shall provide the board
130.19with any additional information, related to the reported activities, requested by the board.

130.20    Sec. 49. Minnesota Statutes 2006, section 239.101, subdivision 3, is amended to read:
130.21    Subd. 3. Petroleum inspection fee. (a) An inspection fee is imposed (1) on
130.22petroleum products when received by the first licensed distributor, and (2) on petroleum
130.23products received and held for sale or use by any person when the petroleum products
130.24have not previously been received by a licensed distributor. The petroleum inspection
130.25fee is $1 for every 1,000 gallons received. The commissioner of revenue shall collect
130.26the fee. The revenue from 81 cents of the fee is appropriated to the commissioner of
130.27commerce for the cost of operations of the Division of Weights and Measures, petroleum
130.28supply monitoring, and the oil burner retrofit program to make grants to providers of
130.29low-income weatherization services to install renewable energy equipment in households
130.30that are eligible for weatherization assistance under Minnesota's weatherization assistance
130.31program state plan. The remainder of the fee must be deposited in the general fund.
130.32    (b) The commissioner of revenue shall credit a person for inspection fees previously
130.33paid in error or for any material exported or sold for export from the state upon filing of a
130.34report as prescribed by the commissioner of revenue.
131.1    (c) The commissioner of revenue may collect the inspection fee along with any
131.2taxes due under chapter 296A.

131.3    Sec. 50. [325E.027] DISCRIMINATION PROHIBITION.
131.4    (a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil
131.5who has signed a low-income home energy assistance program vendor agreement with the
131.6department of commerce may refuse to deliver liquid propane gas or number 1 or number
131.72 fuel oil to any person located within the dealer's or distributor's normal delivery area
131.8who receives direct grants under the low-income home energy assistance program if:
131.9    (1) the person has requested delivery;
131.10    (2) the dealer or distributor has product available;
131.11    (3) the person requesting delivery is capable of making full payment at the time of
131.12delivery; and
131.13    (4) the person is not in arrears regarding any previous fuel purchase from that dealer
131.14or distributor.
131.15    (b) A dealer or distributor making delivery to a person receiving direct grants
131.16under the low-income home energy assistance program may not charge that person any
131.17additional costs or fees that would not be charged to any other customer and must make
131.18available to that person any discount program on the same basis as the dealer or distributor
131.19makes available to any other customer.

131.20    Sec. 51. Minnesota Statutes 2006, section 325E.311, subdivision 6, is amended to read:
131.21    Subd. 6. Telephone solicitation. "Telephone solicitation" means any voice
131.22communication over a telephone line for the purpose of encouraging the purchase or
131.23rental of, or investment in, property, goods, or services, whether the communication is
131.24made by a live operator, through the use of an automatic dialing-announcing device as
131.25defined in section 325E.26, subdivision 2, or by other means. Telephone solicitation
131.26does not include communications:
131.27    (1) to any residential subscriber with that subscriber's prior express invitation or
131.28permission; or
131.29    (2) by or on behalf of any person or entity with whom a residential subscriber has a
131.30prior or current business or personal relationship.
131.31Telephone solicitation also does not include communications if the caller is identified by a
131.32caller identification service and the call is:
132.1    (i) by or on behalf of an organization that is identified as a nonprofit organization
132.2under state or federal law, unless the organization is a debt management services provider
132.3defined in section 332A.02;
132.4    (ii) by a person soliciting without the intent to complete, and who does not in
132.5fact complete, the sales presentation during the call, but who will complete the sales
132.6presentation at a later face-to-face meeting between the solicitor who makes the call
132.7and the prospective purchaser; or
132.8    (iii) by a political party as defined under section 200.02, subdivision 6.
132.9EFFECTIVE DATE.This section is effective January 1, 2008.

132.10    Sec. 52. Minnesota Statutes 2006, section 325N.01, is amended to read:
132.11325N.01 DEFINITIONS.
132.12    The definitions in paragraphs (a) to (h) apply to sections 325N.01 to 325N.09.
132.13    (a) "Foreclosure consultant" means any person who, directly or indirectly, makes
132.14any solicitation, representation, or offer to any owner to perform for compensation or
132.15who, for compensation, performs any service which the person in any manner represents
132.16will in any manner do any of the following:
132.17    (1) stop or postpone the foreclosure sale;
132.18    (2) obtain any forbearance from any beneficiary or mortgagee;
132.19    (3) assist the owner to exercise the right of reinstatement provided in section 580.30;
132.20    (4) obtain any extension of the period within which the owner may reinstate the
132.21owner's obligation;
132.22    (5) obtain any waiver of an acceleration clause contained in any promissory note or
132.23contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;
132.24    (6) assist the owner in foreclosure or loan default to obtain a loan or advance
132.25of funds;
132.26    (7) avoid or ameliorate the impairment of the owner's credit resulting from the
132.27recording of a notice of default or the conduct of a foreclosure sale; or
132.28    (8) save the owner's residence from foreclosure.
132.29    (b) A foreclosure consultant does not include any of the following:
132.30    (1) a person licensed to practice law in this state when the person renders service
132.31in the course of his or her practice as an attorney-at-law;
132.32    (2) a person licensed as a debt prorater under sections 332.12 to 332.29 management
132.33services provider under chapter 332A, when the person is acting as a debt prorater
132.34management services provider as defined in these sections that chapter;
133.1    (3) a person licensed as a real estate broker or salesperson under chapter 82 when the
133.2person engages in acts whose performance requires licensure under that chapter unless the
133.3person is engaged in offering services designed to, or purportedly designed to, enable the
133.4owner to retain possession of the residence in foreclosure;
133.5    (4) a person licensed as an accountant under chapter 326A when the person is acting
133.6in any capacity for which the person is licensed under those provisions;
133.7    (5) a person or the person's authorized agent acting under the express authority
133.8or written approval of the Department of Housing and Urban Development or other
133.9department or agency of the United States or this state to provide services;
133.10    (6) a person who holds or is owed an obligation secured by a lien on any residence
133.11in foreclosure when the person performs services in connection with this obligation or lien
133.12if the obligation or lien did not arise as the result of or as part of a proposed foreclosure
133.13reconveyance;
133.14    (7) any person or entity doing business under any law of this state, or of the United
133.15States relating to banks, trust companies, savings and loan associations, industrial loan and
133.16thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee
133.17which is a United States Department of Housing and Urban Development approved
133.18mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or
133.19employee of these persons or entities while engaged in the business of these persons
133.20or entities;
133.21    (8) a person licensed as a residential mortgage originator or servicer pursuant to
133.22chapter 58, when acting under the authority of that license or a foreclosure purchaser as
133.23defined in section 325N.10;
133.24    (9) a nonprofit agency or organization that offers counseling or advice to an owner
133.25of a home in foreclosure or loan default if they do not contract for services with for-profit
133.26lenders or foreclosure purchasers; and
133.27    (10) a judgment creditor of the owner, to the extent that the judgment creditor's claim
133.28accrued prior to the personal service of the foreclosure notice required by section 580.03,
133.29but excluding a person who purchased the claim after such personal service.
133.30    (c) "Foreclosure reconveyance" means a transaction involving:
133.31    (1) the transfer of title to real property by a foreclosed homeowner during a
133.32foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or
133.33by creation of a mortgage or other lien or encumbrance during the foreclosure process
133.34that allows the acquirer to obtain title to the property by redeeming the property as
133.35a junior lienholder; and
134.1    (2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest
134.2back to the foreclosed homeowner by the acquirer or a person acting in participation with
134.3the acquirer that allows the foreclosed homeowner to possess the real property following
134.4the completion of the foreclosure proceeding, which interest includes, but is not limited to,
134.5an interest in a contract for deed, purchase agreement, option to purchase, or lease.
134.6    (d) "Person" means any individual, partnership, corporation, limited liability
134.7company, association, or other group, however organized.
134.8    (e) "Service" means and includes, but is not limited to, any of the following:
134.9    (1) debt, budget, or financial counseling of any type;
134.10    (2) receiving money for the purpose of distributing it to creditors in payment or
134.11partial payment of any obligation secured by a lien on a residence in foreclosure;
134.12    (3) contacting creditors on behalf of an owner of a residence in foreclosure;
134.13    (4) arranging or attempting to arrange for an extension of the period within which
134.14the owner of a residence in foreclosure may cure the owner's default and reinstate his or
134.15her obligation pursuant to section 580.30;
134.16    (5) arranging or attempting to arrange for any delay or postponement of the time of
134.17sale of the residence in foreclosure;
134.18    (6) advising the filing of any document or assisting in any manner in the preparation
134.19of any document for filing with any bankruptcy court; or
134.20    (7) giving any advice, explanation, or instruction to an owner of a residence in
134.21foreclosure, which in any manner relates to the cure of a default in or the reinstatement
134.22of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of
134.23that obligation, or the postponement or avoidance of a sale of a residence in foreclosure,
134.24pursuant to a power of sale contained in any mortgage.
134.25    (f) "Residence in foreclosure" means residential real property consisting of one to
134.26four family dwelling units, one of which the owner occupies as his or her principal place
134.27of residence, and against which there is an outstanding notice of pendency of foreclosure,
134.28recorded pursuant to section 580.032, or against which a summons and complaint has
134.29been served under chapter 581.
134.30    (g) "Owner" means the record owner of the residential real property in foreclosure at
134.31the time the notice of pendency was recorded, or the summons and complaint served.
134.32    (h) "Contract" means any agreement, or any term in any agreement, between
134.33a foreclosure consultant and an owner for the rendition of any service as defined in
134.34paragraph (e).
134.35EFFECTIVE DATE.This section is effective January 1, 2008.

135.1    Sec. 53. Minnesota Statutes 2006, section 332.54, subdivision 7, is amended to read:
135.2    Subd. 7. Fees. The fee for a credit services organization's registration is $100
135.3$1,000 for issuance or renewal for each location of business.
135.4EFFECTIVE DATE; APPLICATION.This section is effective July 1, 2007, and
135.5applies to registrations issued or renewed on or after that date.

135.6    Sec. 54. [332A.02] DEFINITIONS.
135.7    Subdivision 1. Scope. Unless a different meaning is clearly indicated by the context,
135.8for the purposes of this chapter the terms defined in this section have the meanings given
135.9them.
135.10    Subd. 2. Accreditation. "Accreditation" means certification as an accredited
135.11credit counseling provider by the International Standards Organization or the Council on
135.12Accreditation.
135.13    Subd. 3. Attorney general. "Attorney general" means the attorney general of the
135.14state of Minnesota.
135.15    Subd. 4. Commissioner. "Commissioner" means commissioner of commerce.
135.16    Subd. 5. Controlling or affiliated party. "Controlling or affiliated party" means
135.17any person directly or indirectly controlling, controlled by, or under common control
135.18with another person.
135.19    Subd. 6. Debt management services agreement. "Debt management services
135.20agreement" means the written contract between the debt management services provider
135.21and the debtor.
135.22    Subd. 7. Debt management services plan. "Debt management services plan"
135.23means the debtor's individualized package of debt management services set forth in the
135.24debt management services agreement.
135.25    Subd. 8. Debt management services provider. "Debt management services
135.26provider" means any person offering or providing debt management services to a debtor
135.27domiciled in this state, regardless of whether or not a fee is charged for the services and
135.28regardless of whether the person maintains a physical presence in the state. This term does
135.29not include services performed by the following when engaged in the regular course of
135.30their respective businesses and professions:
135.31    (1) attorneys at law, escrow agents, accountants, broker-dealers in securities;
135.32    (2) state or national banks, trust companies, savings associations, title insurance
135.33companies, insurance companies, and all other lending institutions duly authorized to
135.34transact business in Minnesota, provided no fee is charged for the service;
136.1    (3) persons who, as employees on a regular salary or wage of an employer not
136.2engaged in the business of debt management, perform credit services for their employer;
136.3    (4) public officers acting in their official capacities and persons acting as a debt
136.4management services provider pursuant to court order;
136.5    (5) any person while performing services incidental to the dissolution, winding up,
136.6or liquidation of a partnership, corporation, or other business enterprise;
136.7    (6) the state, its political subdivisions, public agencies, and their employees;
136.8    (7) credit unions and collection agencies, provided no fee is charged for the service;
136.9    (8) "qualified organizations" designated as representative payees for purposes of the
136.10Social Security and Supplemental Security Income Representative Payee System and the
136.11federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508; and
136.12    (9) accelerated mortgage payment providers. "Accelerated mortgage payment
136.13providers" are persons who, after satisfying the requirements of sections 332.30 to
136.14332.303, receive funds to make mortgage payments to a lender or lenders, on behalf
136.15of mortgagors, in order to exceed regularly scheduled minimum payment obligations
136.16under the terms of the indebtedness. The term does not include: (i) persons or entities
136.17described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and
136.18thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to
136.19make loans under section 47.20, subdivision 1. For purposes of this clause and sections
136.20332.30 to 332.303, "lender" means the original lender or that lender's assignee, whichever
136.21is the current mortgage holder.
136.22    Subd. 9. Debt management services. "Debt management services" means the
136.23provision of any one or more of the following:
136.24    (1) managing the financial affairs of an individual by distributing income or money
136.25to the individual's creditors;
136.26    (2) receiving funds for the purpose of distributing the funds among creditors in
136.27payment or partial payment of obligations of a debtor; or
136.28    (3) settling, adjusting, prorating, pooling, or liquidating the indebtedness of a debtor.
136.29Any person so engaged or holding out as so engaged is deemed to be engaged in the
136.30provision of debt management services regardless of whether or not a fee is charged for
136.31such services.
136.32    Subd. 10. Debtor. "Debtor" means the person for whom the debt prorating service
136.33is performed.
136.34    Subd. 11. Person. "Person" means any individual, firm, partnership, association,
136.35or corporation.
137.1    Subd. 12. Registrant. "Registrant" means any person registered by the
137.2commissioner pursuant to this chapter and, where used in conjunction with an act or
137.3omission required or prohibited by this chapter, shall mean any person performing debt
137.4management services.
137.5EFFECTIVE DATE.This section is effective January 1, 2008.

137.6    Sec. 55. [332A.03] REQUIREMENT OF REGISTRATION.
137.7    On or after August 1, 2007, it is unlawful for any person, whether or not located in
137.8this state, to operate as a debt management services provider or provide debt management
137.9services, including but not limited to offering, advertising, or executing or causing to
137.10be executed any debt management services or debt management services agreement,
137.11except as authorized by law without first becoming registered as provided in this
137.12chapter. A person who possesses a valid license as a debt prorater that was issued by the
137.13commissioner before August 1, 2007, is deemed to be registered as a debt management
137.14services provider until the date the debt prorater license expires, at which time the licensee
137.15must obtain a renewal as a debt management services provider in compliance with this
137.16chapter. Debt proraters who were not required to be licensed as debt proraters before
137.17August 1, 2007, may continue to provide debt management services without complying
137.18with this chapter to those debtors who entered into a contract to participate in a debt
137.19management plan before August 1, 2007, except that the debt prorater must comply with
137.20section 332A.13, subdivision 2.
137.21EFFECTIVE DATE.This section is effective January 1, 2008.

137.22    Sec. 56. [332A.04] REGISTRATION.
137.23    Subdivision 1. Form. Application for registration to operate as a debt management
137.24services provider in this state must be made in writing to the commissioner, under oath, in
137.25the form prescribed by the commissioner, and must contain:
137.26    (1) the full name of each principal of the entity applying;
137.27    (2) the address, which must not be a post office box, and the telephone number and,
137.28if applicable, e-mail address, of the applicant;
137.29    (3) identification of the trust account required under section 332A.13;
137.30    (4) consent to the jurisdiction of the courts of this state;
137.31    (5) the name and address of the registered agent authorized to accept service of
137.32process on behalf of the applicant or appointment of the commissioner as the applicant's
137.33agent for purposes of accepting service of process;
138.1    (6) disclosure of:
138.2    (i) whether any controlling or affiliated party has ever been convicted of a crime
138.3or found civilly liable for an offense involving moral turpitude, including forgery,
138.4embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to
138.5defraud, or any other similar offense or violation, or any violation of a federal or state law
138.6or regulation in connection with activities relating to the rendition of debt management
138.7services or involving any consumer fraud, false advertising, deceptive trade practices, or
138.8similar consumer protection law;
138.9    (ii) any judgments, private or public litigation, tax liens, written complaints,
138.10administrative actions, or investigations by any government agency against the applicant
138.11or any officer, director, manager, or shareholder owning more than five percent interest
138.12in the applicant, unresolved or otherwise, filed or otherwise commenced within the
138.13preceding ten years;
138.14    (iii) whether the applicant or any person employed by the applicant has had a record
138.15of having defaulted in the payment of money collected for others, including the discharge
138.16of debts through bankruptcy proceedings; and
138.17    (iv) whether the applicant's license or registration to provide debt management
138.18services in any other state has ever been revoked or suspended;
138.19    (7) a copy of the applicant's standard debt management services agreement that the
138.20applicant intends to execute with debtors;
138.21    (8) proof of accreditation of:
138.22    (i) the debt management services provider; and
138.23    (ii) all individuals employed by, under contract with, or otherwise agents of the
138.24provider who offer to provide or provide debt management services; and
138.25    (9) any other information and material as the commissioner may require.
138.26    Subd. 2. Term and scope of registration. The registration must remain in full
138.27force and effect for one calendar year or until it is surrendered by the licensee or revoked
138.28or suspended by the commissioner. The registration is limited solely to the business
138.29of providing debt management services.
138.30    Subd. 3. Fees. The registration application must be accompanied by payment of
138.31$1,000 as a registration fee.
138.32    Subd. 4. Bond. The registration application must be accompanied by payment of
138.33the premium for a surety bond in which the applicant shall be the obligor, in a sum to be
138.34determined by the commissioner but not less than $5,000, and in which an insurance
138.35company, which is duly authorized by the state of Minnesota to transact the business of
138.36fidelity and surety insurance, shall be a surety. However, the commissioner may accept
139.1a deposit in cash, or securities that may legally be purchased by savings banks or for
139.2trust funds of an aggregate market value equal to the bond requirement, in lieu of the
139.3surety bond. The cash or securities must be deposited with the commissioner of finance.
139.4The commissioner may also require a fidelity bond in an appropriate amount covering
139.5employees of any applicant. Each branch office or additional place of business of an
139.6applicant must be bonded as provided in this subdivision. In determining the bond amount
139.7necessary for the maintenance of any office, whether it is a surety bond, fidelity bond, or
139.8both, the commissioner shall consider the financial responsibility, experience, character,
139.9and general fitness of the debt management services provider and its operators and owners;
139.10the volume of business handled or proposed to be handled; the location of the office
139.11and the geographical area served or proposed to be served; and other information the
139.12commissioner may deem pertinent based upon past performance, previous examinations,
139.13annual reports, and manner of business conducted in other states.
139.14    Subd. 5. Condition of bond. The bond must run to the state of Minnesota for the
139.15use of the state and of any person or persons who may have a cause of action against the
139.16obligor arising out of the obligor's activities as a debt management services provider to
139.17a debtor domiciled in this state. The bond must be conditioned that the obligor will not
139.18commit any fraudulent act and will faithfully conform to and abide by the provisions of
139.19this chapter and of all rules lawfully made by the commissioner under this chapter and
139.20pay to the state and to any such person or persons any and all money that may become
139.21due or owing to the state or to such person or persons from the obligor under and by
139.22virtue of this chapter.
139.23    Subd. 6. Right of action on bond. If the registrant has failed to account to a debtor
139.24or distribute to the debtor's creditors the amounts required by this chapter and the debt
139.25management services agreement between the debtor and registrant, the debtor or the
139.26debtor's legal representative or receiver, the commissioner, or the attorney general, shall
139.27have, in addition to all other legal remedies, a right of action in the name of the debtor
139.28on the bond or the security given under this section, for loss suffered by the debtor, not
139.29exceeding the face amount of the bond or security, and without the necessity of joining
139.30the registrant in the suit or action.
139.31    Subd. 7. Registrant list. The commissioner must maintain a list of registered debt
139.32management services providers. The list must be made available to the public in written
139.33form upon request and on the Department of Commerce Web site.
139.34EFFECTIVE DATE.This section is effective January 1, 2008.

139.35    Sec. 57. [332A.05] NONASSIGNMENT OF REGISTRATION.
140.1    A registration must not be transferred or assigned without the consent of the
140.2commissioner.
140.3EFFECTIVE DATE.This section is effective January 1, 2008.

140.4    Sec. 58. [332A.06] RENEWAL OF REGISTRATION.
140.5    Each year, each registrant under the provisions of this chapter must, not more than
140.660 nor less than 30 days before its registration is to expire, apply to the commissioner for
140.7renewal of its registration on a form prescribed by the commissioner. The application must
140.8be signed by the registrant under penalty of perjury, contain current information on all
140.9matters required in the original application, and be accompanied by a payment of $250.
140.10The registrant must maintain a continuous surety bond that satisfies the requirements of
140.11section 332A.04, subdivision 4, provided that the commissioner may require a different
140.12amount that is at least equal to the largest amount that has accrued in the registrant's trust
140.13account during the previous year. The renewal is effective for one year.
140.14EFFECTIVE DATE.This section is effective January 1, 2008.

140.15    Sec. 59. [332A.07] OTHER DUTIES OF REGISTRANT.
140.16    Subdivision 1. Requirement to update information. A registrant must update any
140.17information required by this chapter provided in its original or renewal application not
140.18later than 90 days after the date the events precipitating the update occurred.
140.19    Subd. 2. Inspection of debtor of registration. Each registrant must maintain a
140.20copy of its registration in its files. The registrant must allow a debtor, upon request, to
140.21inspect the registration.
140.22EFFECTIVE DATE.This section is effective January 1, 2008.

140.23    Sec. 60. [332A.08] DENIAL OF REGISTRATION.
140.24    The commissioner, with notice to the applicant by certified mail sent to the address
140.25listed on the application, may deny an application for a registration upon finding that
140.26the applicant:
140.27    (1) has submitted an application required under section 332A.04 that contains
140.28incorrect, misleading, incomplete, or materially untrue information. An application is
140.29incomplete if it does not include all the information required in section 332A.04;
140.30    (2) has failed to pay any fee or pay or maintain any bond required by this chapter,
140.31or failed to comply with any order, decision, or finding of the commissioner made under
140.32and within the authority of this chapter;
141.1    (3) has violated any provision of this chapter or any rule or direction lawfully made
141.2by the commissioner under and within the authority of this chapter;
141.3    (4) or any controlling or affiliated party has ever been convicted of a crime or found
141.4civilly liable for an offense involving moral turpitude, including forgery, embezzlement,
141.5obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any
141.6other similar offense or violation, or any violation of a federal or state law or regulation
141.7in connection with activities relating to the rendition of debt management services or
141.8any consumer fraud, false advertising, deceptive trade practices, or similar consumer
141.9protection law;
141.10    (5) has had a registration or license previously revoked or suspended in this state or
141.11any other state or the applicant or licensee has been permanently or temporarily enjoined
141.12by any court of competent jurisdiction from engaging in or continuing any conduct or
141.13practice involving any aspect of the debt management services provider business; or
141.14any controlling or affiliated party has been an officer, director, manager, or shareholder
141.15owning more than a ten percent interest in a debt management services provider whose
141.16registration has previously been revoked or suspended in this state or any other state, or
141.17who has been permanently or temporarily enjoined by any court of competent jurisdiction
141.18from engaging in or continuing any conduct or practice involving any aspect of the debt
141.19management services provider business;
141.20    (6) has made any false statement or representation to the commissioner;
141.21    (7) is insolvent;
141.22    (8) refuses to fully comply with an investigation or examination of the debt
141.23management services provider by the commissioner;
141.24    (9) has improperly withheld, misappropriated, or converted any money or properties
141.25received in the course of doing business;
141.26    (10) has failed to have a trust account with an actual cash balance equal to or greater
141.27than the sum of the escrow balances of each debtor's account;
141.28    (11) has defaulted in making payments to creditors on behalf of debtors as required
141.29by agreements between the provider and debtor; or
141.30    (12) has used fraudulent, coercive, or dishonest practices, or demonstrated
141.31incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere.
141.32EFFECTIVE DATE.This section is effective January 1, 2008.

141.33    Sec. 61. [332A.09] SUSPENDING, REVOKING, OR REFUSING TO RENEW
141.34REGISTRATION.
142.1    Subdivision 1. Procedure. The commissioner may revoke, suspend, or refuse
142.2to renew any registration issued under this chapter, or may levy a civil penalty under
142.3section 45.027, or any combination of actions, if the debt management services provider
142.4or any controlling or affiliated person has committed any act or omission for which the
142.5commissioner could have refused to issue an initial registration or renew an existing
142.6registration. Revocation of or refusal to renew a registration must be upon notice and
142.7hearing as prescribed in the Administrative Procedure Act, sections 14.57 to 14.69. The
142.8notice must set a time for hearing before the commissioner not less than 20 nor more than
142.930 days after service of the notice, provided the registrant may waive the 20-day minimum.
142.10The commissioner may, in the notice, suspend the registration for a period not to exceed 60
142.11days. Unless the notice states that the registration is suspended, pending the determination
142.12of the main issue, the registrant may continue to transact business until the final decision of
142.13the commissioner. If the registration is suspended, the commissioner shall hold a hearing
142.14and render a final determination within ten days of a request by the registrant. If the
142.15commissioner fails to do so, the suspension shall terminate and be of no force or effect.
142.16    Subd. 2. Notification of interested persons. After the notice and hearing required
142.17in subdivision 1, upon issuing an order suspending or revoking a registration or refusing to
142.18renew a registration, the commissioner may notify all individuals who have contracts with
142.19the affected registrant and all creditors who have agreed to a debt management services
142.20plan that the registration has been revoked and that the order is subject to appeal.
142.21    Subd. 3. Receiver for funds of sanctioned registrant. When an order is issued
142.22revoking or refusing to renew a registration, the commissioner may apply for, and the
142.23district court must appoint, a receiver to temporarily or permanently receive the assets of
142.24the registrant pending a final determination of the validity of the order.
142.25EFFECTIVE DATE.This section is effective January 1, 2008.

142.26    Sec. 62. [332A.10] WRITTEN DEBT MANAGEMENT SERVICES
142.27AGREEMENT.
142.28    Subdivision 1. Written agreement required. A debt management services provider
142.29may not perform any debt management services or receive any money related to a debt
142.30management plan until the provider has obtained a debt management services agreement
142.31that contains all terms of the agreement between the debt management services provider
142.32and the debtor. A debt management services agreement must be in writing, dated, and
142.33signed by the debt management services provider and the debtor. The registrant must
142.34furnish the debtor with a copy of the signed contract upon execution.
143.1    Subd. 2. Actions prior to written agreement. No person may provide debt
143.2management services for a debtor unless the person first has:
143.3    (1) provided the debtor individualized counseling and educational information
143.4that, at a minimum, addresses managing household finances, managing credit and debt,
143.5budgeting, and personal savings strategies;
143.6    (2) prepared in writing and provided to the debtor, in a form that the debtor may
143.7keep, an individualized financial analysis and a proposed debt management plan listing the
143.8debtor's known debts with specific recommendations regarding actions the debtor should
143.9take to reduce or eliminate the amount of the debts, including written disclosure that
143.10debt management services are not suitable for all debtors and that there are other ways,
143.11including bankruptcy, to deal with indebtedness;
143.12    (3) made a determination supported by an individualized financial analysis that the
143.13debtor can reasonably meet the requirements of the proposed debt management plan
143.14and that there is a net tangible benefit to the debtor of entering into the proposed debt
143.15management plan; and
143.16    (4) prepared, in a form the debtor may keep, a written list identifying all known
143.17creditors of the debtor that the provider reasonably expects to participate in the plan
143.18and the creditors, including secured creditors, that the provider reasonably expects not
143.19to participate.
143.20    Subd. 3. Required terms. (a) Each debt management services agreement must
143.21contain the following terms, which must be disclosed prominently and clearly in bold print
143.22on the front page of the agreement, segregated by bold lines from all other information on
143.23the page:
143.24    (1) the fee amount to be paid by the debtor and whether the initial fee amount is
143.25refundable or nonrefundable;
143.26    (2) the monthly fee amount or percentage to be paid by the debtor; and
143.27    (3) the total amount of fees reasonably anticipated to be paid by the debtor over
143.28the term of the agreement.
143.29    (b) Each debt management services agreement must also contain the following:
143.30    (1) a disclosure that if the amount of debt owed is increased by interest, late fees,
143.31over the limit fees, and other amounts imposed by the creditors, the length of the debt
143.32management services agreement will be extended and remain in force and that the total
143.33dollar charges agreed upon may increase at the rate agreed upon in the original contract
143.34agreement;
143.35    (2) a prominent statement describing the terms upon which the debtor may cancel
143.36the contract as set forth in section 332A.11;
144.1    (3) a detailed description of all services to be performed by the debt management
144.2services provider for the debtor;
144.3    (4) the debt management services provider's refund policy; and
144.4    (5) the debt management services provider's principal business address and the name
144.5and address of its agent in this state authorized to receive service of process.
144.6    Subd. 4. Prohibited terms. The following terms shall not be included in the debt
144.7management services agreement:
144.8    (1) a hold harmless clause;
144.9    (2) a confession of judgment, or a power of attorney to confess judgment against the
144.10debtor or appear as the debtor in any judicial proceeding;
144.11    (3) a waiver of the right to a jury trial, if applicable, in any action brought by
144.12or against a debtor;
144.13    (4) an assignment of or an order for payment of wages or other compensation for
144.14services;
144.15    (5) a provision in which the debtor agrees not to assert any claim or defense arising
144.16out of the debt management services agreement;
144.17    (6) a waiver of any provision of this chapter or a release of any obligation required
144.18to be performed on the part of the debt management services provider; or
144.19    (7) a mandatory arbitration clause.
144.20    Subd. 5. New debt management services agreements; modification of existing
144.21agreements. (a) Separate and additional debt management services agreements that
144.22comply with this chapter may be entered into by the debt management services provider
144.23and the debtor provided that no additional initial fee may be charged by the debt
144.24management services provider.
144.25    (b) Any modification of an existing debt management services agreement, including
144.26any increase in the number or amount of debts included in the debt management service,
144.27must be in writing and signed by both parties. No fees, charges, or other consideration
144.28may be demanded from the debtor for the modification, other than an increase in the
144.29amount of the monthly maintenance fee established in the original debt management
144.30services agreement.
144.31EFFECTIVE DATE.This section is effective January 1, 2008.

144.32    Sec. 63. [332A.11] RIGHT TO CANCEL.
144.33    Subdivision 1. Debtor's right to cancel. A debtor has the right to cancel the debt
144.34management services agreement without cause at any time upon ten days' written notice to
144.35the debt management services provider. In the event of cancellation, the debt management
145.1services provider must, within ten days of the cancellation, notify the debtor's creditors of
145.2the cancellation and provide a refund of all unexpended funds paid by or for the debtor to
145.3the debt management services provider.
145.4    Subd. 2. Notice of debtor's right to cancel. A debt management services
145.5agreement must contain, on its face, in an easily readable typeface immediately adjacent
145.6to the space for signature by the debtor, the following notice: "Right To Cancel: You have
145.7the right to cancel this contract at any time on ten days' written notice."
145.8    Subd. 3. Automatic termination. Upon the payment of all listed debts and
145.9fees, the debt management services agreement must automatically terminate, and all
145.10unexpended funds paid by or for the debtor to the debt management services provider
145.11must be immediately returned to the debtor.
145.12    Subd. 4. Debt management services provider's right to cancel. A debt
145.13management services provider may cancel a debt management services agreement
145.14with good cause upon 30 days' written notice to the debtor. Within ten days after the
145.15cancellation, the debt management services provider must: (1) notify the debtor's creditors
145.16of the cancellation; and (2) return to the debtor all unexpended funds paid by or for the
145.17debtor.
145.18EFFECTIVE DATE.This section is effective January 1, 2008.

145.19    Sec. 64. [332A.12] BOOKS, RECORDS, AND INFORMATION.
145.20    Subdivision 1. Records retention. Every registrant must keep, and use in the
145.21registrant's business, such books, accounts, and records, including electronic records, as
145.22will enable the commissioner to determine whether the registrant is complying with this
145.23chapter and of the rules, orders, and directives adopted by the commissioner under this
145.24chapter. Every registrant must preserve such books, accounts, and records for at least six
145.25years after making the final entry on any transaction recorded therein. Examinations of
145.26the books, records, and method of operations conducted under the supervision of the
145.27commissioner shall be done at the cost of the registrant. The cost must be assessed as
145.28determined under section 46.131.
145.29    Subd. 2. Statements to debtors. Each registrant must maintain and must make
145.30available records and accounts that will enable each debtor to ascertain the amounts
145.31paid to the creditors of the debtor. A statement showing amounts received from the
145.32debtor, disbursements to each creditor, amounts which any creditor has agreed to accept
145.33as payment in full for any debt owed the creditor by the debtor, charges deducted by
145.34the registrant, and such other information as the commissioner may prescribe, must be
145.35furnished by the registrant to the debtor at least monthly and, in addition, upon any
146.1cancellation or termination of the contract. In addition to the statements required by this
146.2subdivision, each debtor must have reasonable access, without cost, by electronic or other
146.3means, to information in the registrant's files applicable to the debtor. These statements,
146.4records, and accounts must otherwise remain confidential except for duly authorized state
146.5and government officials, the commissioner, the attorney general, the debtor, and the
146.6debtor's representative and designees. Each registrant must prepare and retain in the file of
146.7each debtor a written analysis of the debtor's income and expenses to substantiate that the
146.8plan of payment is feasible and practicable.
146.9EFFECTIVE DATE.This section is effective January 1, 2008.

146.10    Sec. 65. [332A.13] FEES, PAYMENTS, AND CONSENT OF CREDITORS.
146.11    Subdivision 1. Origination fee; credit background report cost. The registrant
146.12may charge a nonrefundable origination fee of not more than $50, which may be retained
146.13by the registrant from the initial amount paid by the debtor to the registrant.
146.14    Subd. 2. Monthly maintenance fee. The registrant may charge a periodic fee for
146.15account maintenance or other purposes, but only if the fee is reasonable for the services
146.16provided and does exceed the lesser of 15 percent of the monthly payment amount or $75.
146.17    Subd. 3. Additional fees unauthorized. A registrant may not impose any fee or
146.18other charge or receive any funds or other payment other than the initial fee or monthly
146.19maintenance fee authorized by this section.
146.20    Subd. 4. Amount of periodic payments retained. The registrant may retain as
146.21payment for the fees authorized by this section no more than 15 percent of any periodic
146.22payment made to the registrant by the debtor. The remaining 85 percent must be disbursed
146.23to listed creditors under and in accordance with the debt management services agreement.
146.24No fees or charges may be received or retained by the registrant for any handling of
146.25recurring payments. Recurring payments include current rent, mortgage, utility, telephone,
146.26maintenance as defined in section 518.27, child support, insurance premiums, and such
146.27other payments as the commissioner may by rule prescribe.
146.28    Subd. 5. Advance payments. No fees or charges may be received or retained for
146.29any payments by the debtor made more than the following number of days in advance
146.30of the date specified in the debt management services agreement on which they are due:
146.31(1) 42 days in the case of contracts requiring monthly payments; (2) 15 days in the case
146.32of agreements requiring biweekly payments; or (3) seven days in the case of agreements
146.33requiring weekly payments. For those agreements which do not require payments in
146.34specified amounts, a payment is deemed an advance payment to the extent it exceeds
146.35twice the average regular payment previously made by the debtor under that contract. This
147.1subdivision does not apply when the debtor intends to use the advance payments to satisfy
147.2future payment of obligations due within 30 days under the contract. This subdivision
147.3supersedes any inconsistent provision of this chapter.
147.4    Subd. 6. Consent of creditors. A registrant must actively seek to obtain the consent
147.5of all creditors to the debt management services plan set forth in the debt management
147.6services agreement. Consent by a creditor may be express and in writing, or may be
147.7evidenced by acceptance of a payment made under the debt management services plan
147.8set forth in the contract. The registrant must notify the debtor within ten days after any
147.9failure to obtain the required consent and of the debtor's right to cancel without penalty.
147.10The notice must be in a form as the commissioner shall prescribe. Nothing contained in
147.11this section is deemed to require the return of any origination fee and any fees earned by
147.12the registrant prior to cancellation or default.
147.13    Subd. 7. Withdrawal of creditor. Whenever a creditor withdraws from a debt
147.14management services plan, or refuses to participate in a debt management services plan,
147.15the registrant must promptly notify the debtor of the withdrawal or refusal. In no case
147.16may this notice be provided more than 15 days after the debt management services plan
147.17learns of the creditor's decision to withdraw from or refuse to participate in a plan. This
147.18notice must include the identity of the creditor withdrawing from the plan, the amount of
147.19the monthly payment to that creditor, and the right of the debtor to cancel the agreement
147.20under section 332A.11.
147.21    Subd. 8. Payments held in trust. The registrant must maintain a separate trust
147.22account and deposit in the account all payments received from the moment that they are
147.23received, except that the registrant may commingle the payment with the registrant's
147.24own property or funds, but only to the extent necessary to ensure the maintenance of a
147.25minimum balance if the financial institution at which the trust account is held requires
147.26a minimum balance to avoid the assessment of fees or penalties for failure to maintain
147.27a minimum balance. All disbursements, whether to the debtor or to the creditors of the
147.28debtor, or to the registrant, must be made from such account.
147.29    Subd. 9. Timely payment of creditors. The registrant must disburse any funds
147.30paid by or on behalf of a debtor to creditors of the consumer within 42 days after receipt
147.31of the funds, or earlier if necessary to comply with the due date in the contract between
147.32the debtor and the creditor, unless the reasonable payment of one or more of the debtor's
147.33obligations requires that the funds be held for a longer period so as to accumulate a sum
147.34certain, or where the debtor's payment is returned for insufficient funds or other reason
147.35that makes the withholding of such payments in the net interest of the debtor.
147.36EFFECTIVE DATE.This section is effective January 1, 2008.

148.1    Sec. 66. [332A.14] PROHIBITIONS.
148.2    A registrant shall not:
148.3    (1) purchase from a creditor any obligation of a debtor;
148.4    (2) use, threaten to use, seek to have used, or seek to have threatened the use of any
148.5legal process, including but not limited to garnishment and repossession of personal
148.6property, against any debtor while the debt management services agreement between the
148.7registrant and the debtor remains executory;
148.8    (3) advise a debtor to stop paying a creditor until a debt management services plan is
148.9in place;
148.10    (4) require as a condition of performing debt management services the purchase of
148.11any services, stock, insurance, commodity, or other property or any interest therein either
148.12by the debtor or the registrant;
148.13    (5) compromise any debts unless the prior written approval of the debtor has been
148.14obtained to such compromise and unless such compromise inures solely to the benefit
148.15of the debtor;
148.16    (6) receive from any debtor as security or in payment of any fee a promissory note
148.17or other promise to pay or any mortgage or other security, whether as to real or personal
148.18property;
148.19    (7) lend money or provide credit to any debtor if any interest or fee is charged,
148.20or directly or indirectly collect any fee for referring, advising, procuring, arranging, or
148.21assisting a consumer in obtaining any extension of credit or other debtor service from a
148.22lender or services provider;
148.23    (8) structure a debt management services agreement that would result in negative
148.24amortization of any debt in the plan;
148.25    (9) engage in any unfair, deceptive, or unconscionable act or practice in connection
148.26with any service provided to any debtor;
148.27    (10) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or other
148.28compensation to any person for referring any prospective customer to the registrant or for
148.29enrolling a debtor in a debt management services plan, or provide any other incentives
148.30for employees or agents of the debt management services provider to induce debtors to
148.31enter into a debt management plan;
148.32    (11) receive any cash, fee, gift, bonus, premium, reward, or other compensation
148.33from any person other than the debtor or a person on the debtor's behalf in connection
148.34with activities as a registrant, provided that this paragraph does not apply to a registrant
148.35which is a bona fide nonprofit corporation duly organized under chapter 317A or under
148.36the similar laws of another state;
149.1    (12) enter into a contract with a debtor unless a thorough written budget analysis
149.2indicates that the debtor can reasonably meet the requirements of the financial adjustment
149.3plan and will be benefited by the plan;
149.4    (13) in any way charge or purport to charge or provide any debtor credit insurance in
149.5conjunction with any contract or agreement involved in the debt management services
149.6plan;
149.7    (14) operate or employ a person who is an employee or owner of a collection agency
149.8or process-serving business; or
149.9    (15) require or attempt to require payment of a sum that the registrant states,
149.10discloses, or advertises to be a voluntary contribution from the debtor.
149.11EFFECTIVE DATE.This section is effective January 1, 2008.

149.12    Sec. 67. [332A.16] ADVERTISEMENT OF DEBT MANAGEMENT SERVICES
149.13PLANS.
149.14    No debt management services provider may make false, deceptive, or misleading
149.15statements or omissions about the rates, terms, or conditions of an actual or proposed
149.16debt management services plan or its debt management services, or create the likelihood
149.17of consumer confusion or misunderstanding regarding its services, including but not
149.18limited to the following:
149.19    (1) represent that the debt management services provider is a nonprofit, not-for-profit,
149.20or has similar status or characteristics if some or all of the debt management services will
149.21be provided by a for-profit company that is a controlling or affiliated party to the debt
149.22management services provider; or
149.23    (2) make any communication that gives the impression that the debt management
149.24services provider is acting on behalf of a government agency.
149.25EFFECTIVE DATE.This section is effective January 1, 2008.

149.26    Sec. 68. [332A.17] DEBT MANAGEMENT SERVICES AGREEMENT
149.27RESCISSION.
149.28    Any debtor has the right to rescind any debt management services agreement with
149.29a debt management services provider that commits a material violation of this chapter.
149.30On rescission, all fees paid to the debt management services provider or any other person
149.31other than creditors of the debtor must be returned to the debtor entering into the debt
149.32management services agreement within ten days of rescission of the debt management
149.33services agreement.
150.1EFFECTIVE DATE.This section is effective January 1, 2008.

150.2    Sec. 69. [332A.18] ENFORCEMENT; REMEDIES.
150.3    Subdivision 1. Violation a deceptive practice. A violation of any of the provisions
150.4of this chapter is considered an unfair or deceptive trade practice under section 8.31,
150.5subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in
150.6the public interest.
150.7    Subd. 2. Private right of action. (a) A debt management services provider who
150.8fails to comply with any of the provisions of this chapter is liable under this section in
150.9an individual action for the sum of: (i) actual, incidental, and consequential damages
150.10sustained by the debtor as a result of the failure; and (ii) statutory damages of up to $1,000.
150.11    (b) A debt management services provider who fails to comply with any of the
150.12provisions of this chapter is liable under this section in a class action for the sum of: (i) the
150.13amount that each named plaintiff could recover under paragraph (a), clause (i); and (ii)
150.14such amount as the court may allow for all other class members.
150.15    (c) In determining the amount of statutory damages, the court shall consider, among
150.16other relevant factors:
150.17    (1) the frequency, nature, and persistence of noncompliance;
150.18    (2) the extent to which the noncompliance was intentional; and
150.19    (3) in the case of a class action, the number of debtors adversely affected.
150.20    (d) A plaintiff or class successful in a legal or equitable action under this section is
150.21entitled to the costs of the action, plus reasonable attorney fees.
150.22    Subd. 3. Injunctive relief. A debtor may sue a debt management services provider
150.23for temporary or permanent injunctive or other appropriate equitable relief to prevent
150.24violations of any provision of this chapter. A court must grant injunctive relief on a
150.25showing that the debt management services provider has violated any provision of this
150.26chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to
150.27prevail on allegations that the debt management services provider violated any provision
150.28of this chapter.
150.29    Subd. 4. Remedies cumulative. The remedies provided in this section are
150.30cumulative and do not restrict any remedy that is otherwise available. The provisions
150.31of this chapter are not exclusive and are in addition to any other requirements, rights,
150.32remedies, and penalties provided by law.
150.33    Subd. 5. Public enforcement. The attorney general shall enforce this chapter
150.34under section 8.31.
150.35EFFECTIVE DATE.This section is effective January 1, 2008.

151.1    Sec. 70. [332A.19] INVESTIGATION.
151.2    The commissioner may examine the books and records of every registrant and of
151.3any person engaged in the business of providing debt management services as defined in
151.4section 332A.02 at any reasonable time. The commissioner once during any calendar year
151.5may require the submission of an audit prepared by a certified public accountant of the
151.6books and records of each registrant. If the registrant has, within one year previous to the
151.7commissioner's demand, had an audit prepared for some other purpose, this audit may be
151.8submitted to satisfy the requirement of this section. The commissioner may investigate
151.9any complaint concerning violations of this chapter and may require the attendance and
151.10sworn testimony of witnesses and the production of documents.
151.11EFFECTIVE DATE.This section is effective January 1, 2008.

151.12    Sec. 71. LICENSE RENEWAL EXTENSION.
151.13    The July 31, 2007, renewal date for mortgage originators is extended to October 30,
151.142007, because of the changes to the licensing requirements made by this article.

151.15    Sec. 72. REPEALER.
151.16(a) Minnesota Statutes 2006, sections 46.043; 47.62, subdivision 5; and 58.08,
151.17subdivision 1, are repealed.
151.18(b) Minnesota Statutes 2006, sections 332.12; 332.13; 332.14; 332.15; 332.16;
151.19332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 332.23; 332.24; 332.25; 332.26; 332.27;
151.20332.28; and 332.29, are repealed effective January 1, 2008.

151.21ARTICLE 6
151.22ENERGY

151.23    Section 1. [1.1499] STATE ENERGY CITY.
151.24    The city of Elk River is designated as the state energy city.

151.25    Sec. 2. [16C.141] EMPLOYEE SUGGESTIONS; ENERGY SAVINGS
151.26INCENTIVE PROGRAM.
151.27    Subdivision 1. Creation of program. The commissioner of administration must
151.28implement a program using best practices and develop policies under which state
151.29employees may receive cash awards for making suggestions that result in documented cost
151.30savings to state agencies from reduced energy usage in state-owned buildings. The cash
151.31awards must be an amount equal to half the amount of the energy costs saved by agencies
152.1in the year immediately following the implementation of the employee suggestion, up to
152.2$1,000 per suggestion. The program must include methods for documenting submission
152.3of suggestions and for documenting savings achieved as a result of these suggestions.
152.4    Subd. 2. Funding. To the extent necessary to fund the program under this section,
152.5the commissioner of administration, with approval of the commissioner of finance, may
152.6transfer a portion of the documented cost savings resulting from a suggestion under this
152.7section from the general services revolving fund to an energy savings reward account.
152.8Money in the energy savings reward account is appropriated to the commissioner for
152.9purposes of making cash rewards and paying the commissioner's incentive program
152.10developments costs and administrative expenses under this section.
152.11    Subd. 3. Report to legislature. The commissioner of administration shall report to
152.12the chairs of the senate and house of representatives committees with jurisdiction over
152.13energy policy by January 1, 2008, on the development of the incentive program, and
152.14by January 15 each year thereafter on the implementation of this section, including the
152.15ideas submitted and energy savings realized.
152.16    Subd. 4. Minnesota State Colleges and Universities. This section does not apply to
152.17the Minnesota State Colleges and Universities, except to the extent the Board of Trustees
152.18of the Minnesota State Colleges and Universities provides that the section does apply.
152.19    Subd. 5. Repeal. This section is repealed July 1, 2009.

152.20    Sec. 3. Minnesota Statutes 2006, section 116C.779, subdivision 2, is amended to read:
152.21    Subd. 2. Renewable energy production incentive. (a) Until January 1, 2018, up to
152.22$10,900,000 $11,400,000 annually must be allocated from available funds in the account
152.23to fund renewable energy production incentives and on-farm biogas recovery facility
152.24grants. $9,400,000 of this annual amount is for incentives for up to 200 megawatts of
152.25electricity generated by wind energy conversion systems that are eligible for the incentives
152.26under section 216C.41. The balance of this amount, Up to $1,500,000 $1,000,000
152.27annually, may be used for production incentives for on-farm biogas recovery facilities
152.28and landfill gas recovery facilities that are eligible for the incentive under section 216C.41
152.29or for production incentives for other renewables, to be provided in the same manner
152.30as under section 216C.41. Of this amount, no more than $500,000 may be used for
152.31production incentives for landfill gas recovery facilities. Up to $1,000,000 may be used
152.32for grants for qualified on-farm biogas recovery facilities as provided in section 216C.42.
152.33Any portion of the $10,900,000 $11,400,000 not expended in any calendar year for the
152.34incentive is available for other spending purposes under this section. This subdivision
152.35does not create an obligation to contribute funds to the account.
153.1    (b) The Department of Commerce shall determine eligibility of projects under
153.2section 216C.41 for the purposes of this subdivision. At least quarterly, the Department of
153.3Commerce shall notify the public utility of the name and address of each eligible project
153.4owner and the amount due to each project under section 216C.41. The public utility shall
153.5make payments within 15 working days after receipt of notification of payments due.

153.6    Sec. 4. Minnesota Statutes 2006, section 216B.241, subdivision 6, is amended to read:
153.7    Subd. 6. Renewable energy research. (a) A public utility that owns a nuclear
153.8generation facility in the state shall spend five percent of the total amount that utility
153.9is required to spend under this section to support basic and applied research and
153.10demonstration activities at the University of Minnesota Initiative for Renewable Energy
153.11and the Environment for the development of renewable energy sources and technologies.
153.12The utility shall transfer the required amount to the University of Minnesota on or before
153.13July 1 of each year and that annual amount shall be deducted from the amount of money the
153.14utility is required to spend under this section. The University of Minnesota shall transfer
153.15at least ten percent of these funds to at least one rural campus or experiment station.
153.16    (b) Research Activities funded under this subdivision shall may include, but are
153.17not limited to:
153.18    (1) development of environmentally sound production, distribution, and use of
153.19energy, chemicals, and materials from renewable sources;
153.20    (2) processing and utilization of agricultural and forestry plant products and other
153.21bio-based, renewable sources as a substitute for fossil-fuel-based energy, chemicals, and
153.22materials using a variety of means including biocatalysis, biorefining, and fermentation;
153.23    (3) conversion of state wind resources to hydrogen for energy storage and
153.24transportation to areas of energy demand;
153.25    (4) improvements in scalable hydrogen fuel cell technologies; and
153.26    (5) production of hydrogen from bio-based, renewable sources; and sequestration
153.27of carbon.
153.28    (1) environmentally sound production of energy from a renewable energy source
153.29including biomass;
153.30    (2) environmentally sound production of hydrogen from biomass and any other
153.31renewable energy source for energy storage and energy utilization;
153.32    (3) development of energy conservation and efficient energy utilization technologies;
153.33    (4) energy storage technologies; and
153.34    (5) analysis of policy options to facilitate adoption of technologies that use or
153.35produce a renewable energy source.
154.1    (c) Notwithstanding other law to the contrary, the utility may, but is not required to,
154.2spend more than two percent of its gross operating revenues from service provided in this
154.3state under this section or section 216B.2411.
154.4    (d) For the purposes of this subdivision:
154.5    (1) "renewable energy source: means hydro, wind, solar, biomass and geothermal
154.6energy, and microorganisms used as an energy source; and
154.7    (2) "biomass" means plant and animal material, agricultural and forest residues,
154.8mixed municipal solid waste, and sludge from wastewater treatment.
154.9    (e) This subdivision expires June 30, 2008 2010.

154.10    Sec. 5. Minnesota Statutes 2006, section 216B.812, subdivision 1, is amended to read:
154.11    Subdivision 1. Early purchase and deployment of renewable hydrogen, fuel
154.12cells, and related technologies by the state. (a) The Department of Commerce, in
154.13conjunction coordination with the Department of Administration and the Pollution Control
154.14Agency, shall identify opportunities for demonstrating the use of deploying renewable
154.15hydrogen, fuel cells, and related technologies within state-owned facilities, vehicle fleets,
154.16and operations in ways that demonstrate their commercial performance and economics.
154.17    (b) The Department of Commerce shall recommend to the Department of
154.18Administration, when feasible, the purchase and demonstration deployment of hydrogen,
154.19fuel cells, and related technologies, when feasible, in ways that strategically contribute
154.20to realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109, and
154.21which contribute to the following nonexclusive list of objectives:
154.22    (1) provide needed performance data to the marketplace;
154.23    (2) identify code and regulatory issues to be resolved;
154.24    (3) foster economic development and job creation in the state;
154.25    (4) raise public awareness of renewable hydrogen, fuel cells, and related
154.26technologies; or
154.27    (5) reduce emissions of carbon dioxide and other pollutants.
154.28    (c) The Department of Commerce and the Pollution Control Agency shall also
154.29recommend to the Department of Administration changes to the state's procurement
154.30guidelines and contracts in order to facilitate the purchase and deployment of cost-effective
154.31renewable hydrogen, fuel cells, and related technologies by all levels of government.

154.32    Sec. 6. Minnesota Statutes 2006, section 216B.812, subdivision 2, is amended to read:
154.33    Subd. 2. Pilot projects. (a) In consultation with appropriate representatives from
154.34state agencies, local governments, universities, businesses, and other interested parties,
155.1the Department of Commerce shall report back to the legislature by November 1, 2005,
155.2and every two years thereafter, with a slate of proposed pilot projects that contribute to
155.3realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109. The
155.4Department of Commerce must consider the following nonexclusive list of priorities in
155.5developing the proposed slate of pilot projects:
155.6    (1) demonstrate deploy "bridge" technologies such as hybrid-electric, off-road, and
155.7fleet vehicles running on hydrogen or fuels blended with hydrogen;
155.8    (2) develop lead to cost-competitive, on-site renewable hydrogen production
155.9technologies;
155.10    (3) demonstrate nonvehicle applications for hydrogen;
155.11    (4) improve the cost and efficiency of hydrogen from renewable energy sources; and
155.12    (5) improve the cost and efficiency of hydrogen production using direct solar energy
155.13without electricity generation as an intermediate step.
155.14    (b) For all demonstrations deployment projects that do not involve a demonstration
155.15component, individual system components of the technology must should, if feasible, meet
155.16commercial performance standards and systems modeling must be completed to predict
155.17commercial performance, risk, and synergies. In addition, the proposed pilots should meet
155.18as many of the following criteria as possible:
155.19    (1) advance energy security;
155.20    (2) capitalize on the state's native resources;
155.21    (3) result in economically competitive infrastructure being put in place;
155.22    (4) be located where it will link well with existing and related projects and be
155.23accessible to the public, now or in the future;
155.24    (5) demonstrate multiple, integrated aspects of renewable hydrogen infrastructure;
155.25    (6) include an explicit public education and awareness component;
155.26    (7) be scalable to respond to changing circumstances and market demands;
155.27    (8) draw on firms and expertise within the state where possible;
155.28    (9) include an assessment of its economic, environmental, and social impact; and
155.29    (10) serve other needs beyond hydrogen development.

155.30    Sec. 7. [216B.813] MINNESOTA RENEWABLE HYDROGEN INITIATIVE.
155.31    Subdivision 1. Road map. The Department of Commerce shall coordinate and
155.32administer directly or by contract the Minnesota renewable hydrogen initiative. If the
155.33department decides to contract for its duties under this section, it must contract with a
155.34nonpartisan, nonprofit organization within the state to develop the road map. The initiative
155.35may be run as a public-private partnership representing business, academic, governmental,
156.1and nongovernmental organizations. The initiative must oversee the development and
156.2implementation of a renewable hydrogen road map, including appropriate technology
156.3deployments, that achieve the hydrogen goal of section 216B.013. The road map should
156.4be compatible with the United States Department of Energy's National Hydrogen Energy
156.5Roadmap and be based on an assessment of marketplace economics and the state's
156.6opportunities in hydrogen, fuel cells, and related technologies, so as to capitalize on
156.7strengths. The road map should establish a vision, goals, general timeline, strategies for
156.8working with industry, and measurable milestones for achieving the state's renewable
156.9hydrogen goal. The road map should describe how renewable hydrogen and fuel cells fit
156.10in Minnesota's overall energy system, and should help foster a consistent, predictable, and
156.11prudent investment environment. The department must report to the legislature on the
156.12progress in implementing the road map by November 1 of each odd-numbered year.
156.13    Subd. 2. Grants. (a) The commissioner of commerce shall operate a competitive
156.14grant program for projects to assist the state in attaining its renewable hydrogen energy
156.15goals. The commissioner of commerce shall assemble an advisory committee made up of
156.16industry, university, government, and nongovernment organizations to:
156.17    (1) help identify the most promising technology deployment projects for public
156.18investment;
156.19    (2) advise on the technical specifications for those projects; and
156.20    (3) make recommendations on project grants.
156.21    (b) The commissioner shall give preference to project concepts included in the
156.22department's most recent biennial report: Strategic Demonstration Projects to Accelerate
156.23the Commercialization of Renewable Hydrogen and Related Technologies in Minnesota.
156.24Projects eligible for funding must combine one or more of the hydrogen production
156.25options listed in the department's report with an end use that has significant commercial
156.26potential, preferably high visibility, and relies on fuel cells or related technologies. Each
156.27funded technology deployment must include an explicit education and awareness-raising
156.28component, be compatible with the renewable hydrogen deployment criteria defined in
156.29section 216B.812, and receive 50 percent of its total cost from nonstate sources. The 50
156.30percent requirement does not apply for recipients that are public institutions.

156.31    Sec. 8. Minnesota Statutes 2006, section 216C.051, subdivision 2, is amended to read:
156.32    Subd. 2. Establishment. (a) There is established a Legislative Electric Energy Task
156.33Force to study future electric energy sources and costs and to make recommendations
156.34for legislation for an environmentally and economically sustainable and advantageous
156.35electric energy supply.
157.1    (b) The task force consists of:
157.2    (1) ten members of the house of representatives including the chairs of the
157.3Environment and Natural Resources Committee and Regulated Industries Subcommittee
157.4the Energy Finance and Policy Division and eight members to be appointed by the speaker
157.5of the house, four of whom must be from the minority caucus; and
157.6    (2) ten members of the senate including the chairs of the Environment, Energy and
157.7Natural Resources Budget Division and Jobs, Energy, and Community Development
157.8Utilities, Technology and Communications committees and eight members to be appointed
157.9by the Subcommittee on Committees, four of whom must be from the minority caucus.
157.10    (c) The task force may employ staff, contract for consulting services, and may
157.11reimburse the expenses of persons requested to assist it in its duties other than state
157.12employees or employees of electric utilities. The director of the Legislative Coordinating
157.13Commission shall assist the task force in administrative matters. The task force shall
157.14elect cochairs, one member of the house and one member of the senate from among the
157.15committee and subcommittee chairs named to the committee. The task force members
157.16from the house shall elect the house cochair, and the task force members from the senate
157.17shall elect the senate cochair.

157.18    Sec. 9. Minnesota Statutes 2006, section 216C.051, subdivision 9, is amended to read:
157.19    Subd. 9. Expiration. This section is repealed June 30, 2007 2008.
157.20EFFECTIVE DATE.This section is effective the day following final enactment.

157.21    Sec. 10. [216C.385] CLEAN ENERGY RESOURCE TEAMS.
157.22    Subdivision 1. Findings. The legislature finds that community-based energy
157.23programs are an effective means of implementing improved energy practices including
157.24conservation, greater efficiency in energy use, and the production and use of renewable
157.25resources such as wind, solar, biomass, and biofuels. Further, community-based energy
157.26programs are found to be a public purpose for which public money may be spent.
157.27    Subd. 2. Mission, organization, and membership. The Clean Energy Resource
157.28Teams (CERT's) project is an innovative state, university, and nonprofit partnership that
157.29serves as a catalyst for community energy planning and projects. The mission of CERT's
157.30is to give citizens a voice in the energy planning process by connecting them with the
157.31necessary technical resources to identify and implement community-scale renewable
157.32energy and energy efficiency projects. In 2003, the Department of Commerce designated
157.33the CERT's project as a statewide collaborative venture and recognized six regional teams
157.34based on their geography: Central, Northeast, Northwest, Southeast, Southwest, and
158.1West-Central. Membership of CERT's may include but is not limited to representatives
158.2of utilities; federal, state, and local governments; small business; labor; senior citizens;
158.3academia; and other interested parties. The Department of Commerce may certify
158.4additional Clean Energy Resource Teams by regional geography, including teams in
158.5the Twin Cities metropolitan area.
158.6    Subd. 3. Powers and duties. In order to develop and implement community-based
158.7energy programs, a Clean Energy Resource Team may:
158.8    (1) analyze social and economic impacts caused by energy expenditures;
158.9    (2) analyze regional renewable and energy efficiency resources and opportunities;
158.10    (3) link community members and community energy projects to the knowledge
158.11and capabilities of the University of Minnesota, the State Energy Office, nonprofit
158.12organizations, and regional community members, among others;
158.13    (4) plan, set priorities for, provide technical assistance to, and catalyze local energy
158.14efficiency and renewable energy projects that help to meet state energy policy goals and
158.15maximize local economic development opportunities;
158.16    (5) provide a broad-based resource and communications network that links local,
158.17county, and regional energy efficiency and renewable energy project efforts around the
158.18state (both interregional and intraregional);
158.19    (6) seek, accept, and disburse grants and other aids from public or private sources
158.20for purposes authorized in this subdivision;
158.21    (7) provides a convening and networking function within CERT's regions to facilitate
158.22education, knowledge formation, and project replication; and
158.23    (8) exercise other powers and duties imposed on it by statute, charter, or ordinance.
158.24    Subd. 4. Department assistance. The commissioner, via the Clean Energy
158.25Resource Teams, may provide professional, technical, organizational, and financial
158.26assistance to regions and communities to develop and implement community energy
158.27programs and projects, within available resources.

158.28    Sec. 11. [216C.39] RURAL WIND ENERGY DEVELOPMENT REVOLVING
158.29LOAN FUND.
158.30    Subdivision 1. Establishment. A rural wind energy development revolving loan
158.31fund is established as an account in the special revenue fund in the state treasury. The
158.32commissioner of finance shall credit to the account the amounts authorized under this
158.33section and appropriations and transfers to the account. Earnings, such as interest,
158.34dividends, and any other earnings arising from fund assets, must be credited to the account.
159.1    Subd. 2. Purpose. The rural wind energy development revolving loan fund
159.2is created to provide financial assistance, through partnership with local owners and
159.3communities, in developing community wind energy projects that meet the specifications
159.4of section 216B.1612, subdivision 2, paragraph (f).
159.5    Subd. 3. Expenditures. Money in the fund is appropriated to the commissioner
159.6of commerce, and may be used to make loans to qualifying owners of wind energy
159.7projects, as defined in section 216B.1612, subdivision 2, paragraph (f), to assist in funding
159.8wind studies and transmission interconnection studies. The loans must be structured for
159.9repayment within 30 days after the project begins commercial operations or two years
159.10from the date the loan is issued, whichever is sooner.
159.11    Subd. 4. Limitations. A loan may not be approved for an amount exceeding
159.12$100,000. This limit applies to all money loaned to a single project or single entity,
159.13whether paid to one or more qualifying owners and whether paid in one or more fiscal
159.14years.
159.15    Subd. 5. Administration; eligible projects. (a) Applications for a loan under
159.16this section must be made in a manner and on forms prescribed by the commissioner.
159.17Loans to eligible projects must be made in the order in which complete applications are
159.18received by the commissioner. Loan funds must be disbursed to an applicant within ten
159.19days of submission of a payment request by the applicant that demonstrates a payment
159.20due to the Midwest Independent System Operator. Interest payable on the loan amount
159.21may not exceed 1.5 percent per annum.
159.22    (b) A project is eligible for a loan under this program if:
159.23    (1) the project has completed an adequate interconnection feasibility study that
159.24indicates the project may be interconnected with system upgrades of less than ten percent
159.25of the estimated project costs;
159.26    (2) the project has a signed power purchase agreement with an electric utility or
159.27provides evidence that the project is under serious consideration for such an agreement by
159.28an electric utility;
159.29    (3) the ownership and structure of the project allows it to qualify as a
159.30community-based energy development (C-BED) project under section 216B.1612, and the
159.31developer commits to obtaining and maintaining C-BED status; and
159.32    (4) the commissioner has determined that sufficient funds are available to make a
159.33loan to the project.

159.34    Sec. 12. Minnesota Statutes 2006, section 216C.41, subdivision 1, is amended to read:
160.1    Subdivision 1. Definitions. (a) Unless otherwise provided, the definitions in this
160.2subdivision apply to this section.
160.3    (b) "Qualified hydroelectric facility" means a hydroelectric generating facility in
160.4this state that:
160.5    (1) is located at the site of a dam, if the dam was in existence as of March 31,
160.61994; and
160.7    (2) begins generating electricity after July 1, 1994, or generates electricity after
160.8substantial refurbishing of a facility that begins after July 1, 2001.
160.9    (c) "Qualified wind energy conversion facility" means a wind energy conversion
160.10system in this state that:
160.11    (1) produces two megawatts or less of electricity as measured by nameplate rating
160.12and begins generating electricity after December 31, 1996, and before July 1, 1999;
160.13    (2) begins generating electricity after June 30, 1999, produces two megawatts or
160.14less of electricity as measured by nameplate rating, and is:
160.15    (i) owned by a resident of Minnesota or an entity that is organized under the laws
160.16of this state, is not prohibited from owning agricultural land under section 500.24, and
160.17owns the land where the facility is sited;
160.18    (ii) owned by a Minnesota small business as defined in section 645.445;
160.19    (iii) owned by a Minnesota nonprofit organization;
160.20    (iv) owned by a tribal council if the facility is located within the boundaries of
160.21the reservation;
160.22    (v) owned by a Minnesota municipal utility or a Minnesota cooperative electric
160.23association; or
160.24    (vi) owned by a Minnesota political subdivision or local government, including,
160.25but not limited to, a county, statutory or home rule charter city, town, school district, or
160.26any other local or regional governmental organization such as a board, commission, or
160.27association; or
160.28    (3) begins generating electricity after June 30, 1999, produces seven megawatts or
160.29less of electricity as measured by nameplate rating, and:
160.30    (i) is owned by a cooperative organized under chapter 308A other than a Minnesota
160.31cooperative electric association; and
160.32    (ii) all shares and membership in the cooperative are held by an entity that is not
160.33prohibited from owning agricultural land under section 500.24.
160.34    (d) "Qualified on-farm biogas recovery facility" means an anaerobic digester system
160.35that:
160.36    (1) is located at the site of an agricultural operation; and
161.1    (2) is owned by an entity that is not prohibited from owning agricultural land under
161.2section 500.24 and that owns or rents the land where the facility is located.
161.3    (e) "Anaerobic digester system" means a system of components that processes
161.4animal waste based on the absence of oxygen and produces gas used to generate electricity.
161.5    (f) "Qualified landfill gas recovery facility" means a landfill that is operating or
161.6closed, that generates gas from the decomposition of organic matter, and that installs a
161.7system to collect the gas after July 1, 2007.

161.8    Sec. 13. Minnesota Statutes 2006, section 216C.41, subdivision 2, is amended to read:
161.9    Subd. 2. Incentive payment; appropriation. (a) Incentive payments must be made
161.10according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner
161.11or operator of a qualified hydropower facility or qualified wind energy conversion facility
161.12for electric energy generated and sold by the facility, (3) a publicly owned hydropower
161.13facility for electric energy that is generated by the facility and used by the owner of the
161.14facility outside the facility, or (4) the owner of a publicly owned dam that is in need of
161.15substantial repair, for electric energy that is generated by a hydropower facility at the
161.16dam and the annual incentive payments will be used to fund the structural repairs and
161.17replacement of structural components of the dam, or to retire debt incurred to fund those
161.18repairs, or (5) a qualified landfill gas recovery facility.
161.19    (b) Payment may only be made upon receipt by the commissioner of commerce of
161.20an incentive payment application that establishes that the applicant is eligible to receive an
161.21incentive payment and that satisfies other requirements the commissioner deems necessary.
161.22The application must be in a form and submitted at a time the commissioner establishes.
161.23    (c) There is annually appropriated from the renewable development account
161.24under section 116C.779 to the commissioner of commerce sums sufficient to make the
161.25payments required under this section, in addition to the amounts funded by the renewable
161.26development account as specified in subdivision 5a.

161.27    Sec. 14. Minnesota Statutes 2006, section 216C.41, subdivision 3, is amended to read:
161.28    Subd. 3. Eligibility window. Payments may be made under this section only for:
161.29    (a) electricity generated from:
161.30    (1) from a qualified hydroelectric facility that is operational and generating
161.31electricity before December 31, 2009;
161.32    (2) from a qualified wind energy conversion facility that is operational and
161.33generating electricity before January 1, 2008; or
162.1    (3) from a qualified on-farm biogas recovery facility from July 1, 2001, through
162.2December 31, 2017; and
162.3    (b) gas generated from:
162.4    (1) a qualified on-farm biogas recovery facility from July 1, 2007, through December
162.531, 2017; or
162.6    (2) a qualified landfill gas recovery facility from July 1, 2007, through December
162.731, 2017.

162.8    Sec. 15. [216C.42] ON-FARM BIOGAS RECOVERY GRANTS.
162.9    Subdivision 1. Definitions. For the purpose of this section, the following terms
162.10have the meanings given.
162.11    (a) "Qualified on-farm biogas recovery facility" means an anaerobic digester system
162.12that:
162.13    (1) is located at the site of an agricultural operation;
162.14    (2) is owned by an entity that is not prohibited from owning agricultural land under
162.15section 500.24 and that owns or rents the land where the facility is located; and
162.16    (3) is owned by a qualified owner as defined in section 216B.1612, subdivision 2,
162.17paragraph (c).
162.18    (b) "Anaerobic digester system" means a system of components that processes
162.19animal waste based on the absence of oxygen and produces gas.
162.20    (c) "Commissioner" means the commissioner of agriculture.
162.21    Subd. 2. Eligibility. Subject to the availability of funds, the commissioner must
162.22approve grants to a qualified owner of a qualified on-farm biogas recovery facility for the
162.23total installed costs of capital investments associated with the facility, up to a maximum of
162.24$500,000.
162.25    Subd. 3. Application. Application for a grant under this section must be made by a
162.26qualified owner to the commissioner on a form the commissioner prescribes by rule. The
162.27commissioner must review each application to determine:
162.28    (1) whether the application is complete;
162.29    (2) whether the information, calculations, and estimates contained in the application
162.30are appropriate, accurate, and reasonable;
162.31    (3) whether the project is eligible for a grant;
162.32    (4) the amount of the grant for which the project is eligible; and
162.33    (5) other funding sources the owner proposes to use to finance the project in addition
162.34to a grant authorized by this section.
162.35An applicant may submit only one grant application each year under this section.
163.1    Subd. 4. Additional information. During application review, the commissioner
163.2may request additional information about a proposed project, including information on
163.3project cost. Failure to provide information requested disqualifies a grant application.
163.4    Subd. 5. Public accessibility of grant application data. Data contained in an
163.5application submitted to the commissioner for a grant under this section, including
163.6supporting technical documentation, is classified as public data not on individuals under
163.7section 13.02, subdivision 14.
163.8    Subd. 6. Rules. The commissioner must adopt rules necessary to implement this
163.9section. The rules must contain at a minimum:
163.10    (1) standards for project eligibility;
163.11    (2) criteria for reviewing grant applications; and
163.12    (3) procedures and guidelines for program monitoring and evaluation.
163.13    Subd. 7. Right of first refusal. A utility that provides electric service at retail in
163.14the area where the qualified on-farm biogas recovery facility is located has the right of
163.15first refusal for any gas produced by a qualified on-farm biogas recovery facility that has
163.16received a grant under this section. A utility's right of first refusal expires if:
163.17    (1) within 45 days after the qualified owner files an incentive payment application
163.18with the commissioner of commerce, the utility fails to send a letter of intent to the
163.19qualified owner indicating the utility's willingness to negotiate a purchase agreement; or
163.20    (2) the parties enter negotiations but fail to reach agreement within 120 days after
163.21the qualified owner files an incentive payment application with the commissioner of
163.22commerce.
163.23    Subd. 8. Eligibility toward renewable energy objective and standard. Any gas
163.24generated by a qualified on-farm biogas recovery facility awarded a grant under this
163.25section that is purchased by a utility may be counted toward the utility's renewable energy
163.26objective and standard under section 216B.1691.
163.27    Subd. 9. Appropriation. Up to $1,000,000 is appropriated annually from the
163.28renewable development account through fiscal year 2015 to the commissioner of
163.29agriculture for the purpose of providing grants to qualified on-farm biogas recovery
163.30facilities.

163.31    Sec. 16. [561.20] NUISANCE LIABILITY OF WIND ENERGY CONVERSION
163.32SYSTEMS.
163.33    Subdivision 1. Definition. For the purposes of this section, "wind energy conversion
163.34system" has the meaning given in section 216C.06.
164.1    Subd. 2. Wind energy conversion system not a nuisance. (a) A wind energy
164.2conversion system is not and does not become a private or public nuisance after two years
164.3from the date it begins generating electricity as a matter of law if the system:
164.4    (1) complies with all applicable federal, state, or county laws, regulations, rules, and
164.5ordinances and any permits issued for it; and
164.6    (2) operates according to generally accepted practices.
164.7    (b) For a period of two years from the date it begins generating electricity, there is
164.8a rebuttable presumption that a wind energy conversion system in compliance with the
164.9requirements of paragraph (a) is not a public or private nuisance.
164.10    (c) This subdivision does not apply:
164.11    (1) to any prosecution for the crime of public nuisance as provided in section
164.12609.74 or to an action by a public authority to abate a particular condition that is a public
164.13nuisance; or
164.14    (2) to any enforcement action brought by a local unit of government related to
164.15zoning under chapter 394 or 462.
164.16    Subd. 3. Existing contracts. This section must not be construed to invalidate any
164.17contracts or commitments made before the effective date of this section.
164.18    Subd. 4. Severability. If a provision of this section, or application thereof to any
164.19person or set of circumstances, is held invalid or unconstitutional, the invalidity does not
164.20affect other provisions or applications of this section that can be given effect without the
164.21invalid provision or application. To that end, the provisions of this section are declared to
164.22be severable.
164.23EFFECTIVE DATE.This section is effective the day following final enactment.

164.24    Sec. 17. PETROLEUM VIOLATION ESCROW FUNDS.
164.25    (a) Petroleum violation escrow funds appropriated to the commissioner of commerce
164.26by Laws 1988, chapter 686, article 1, section 38, for state energy loan programs for
164.27schools, hospitals, and public buildings must be used for grants to kindergarten through
164.28grade 12 schools to develop energy conservation or renewable energy projects. A grant
164.29may not exceed $500,000. The commissioner must endeavor to award grants throughout
164.30the regions of the state. No more than one grant may be awarded in a county, unless an
164.31insufficient number of applications is received from schools located in other counties to
164.32exhaust available funds.
164.33    (b) The commissioner of commerce must petition the federal Department of Energy
164.34for a waiver from any federal regulation that limits the proportion of federal funds
164.35expended on state energy programs that may be spent on energy efficiency.
165.1    (c) For purposes of this subdivision, "renewable energy" means wind, solar,
165.2hydroelectric with a capacity of less than 60 megawatts, geothermal, hydrogen, fuel cells
165.3made from renewable resources, herbaceous crops, agricultural crops, agricultural waste,
165.4and aquatic plant matter.
165.5EFFECTIVE DATE.This section is effective the day after the commissioner of
165.6commerce receives the waiver described in paragraph (b).

165.7    Sec. 18. RURAL WIND ENERGY DEVELOPMENT PROGRAM.
165.8    (a) The Center for Rural Policy and Development shall make a grant to a nonprofit
165.9organization with experience dealing with energy and community wind issues to design
165.10and implement a rural wind energy development assistance program. The program must
165.11be designed to maximize rural economic development and stabilize rural community
165.12institutions, including hospitals and schools, by increasing the income of local residents
165.13and increasing local tax revenues. The grant may be disbursed in two installments. The
165.14program must provide assistance to rural entities seeking to develop wind generation
165.15projects that meet the specifications of Minnesota Statutes, section 216B.1612, subdivision
165.162, paragraph (f), and to sell the electricity the projects produce. Among other strategies,
165.17the program may consider aggregating rural entities and others into groups with the size
165.18and market power necessary to plan and develop significant rural wind energy projects.
165.19    (b) The program must provide assistance that includes, but is not limited to:
165.20    (1) providing legal, engineering, and financial services;
165.21    (2) identifying target communities with favorable wind resources, community
165.22interest, and local political support;
165.23    (3) providing assistance to reserve, obtain, and ensure the maintenance over time of
165.24wind turbines;
165.25    (4) creating market opportunities for utilities to meet their renewable energy standard
165.26obligations through purchases from rural community wind projects;
165.27    (5) assisting in negotiating fair power purchase agreements;
165.28    (6) facilitating transmission interconnection and delivery of energy from community
165.29wind projects; and
165.30    (7) lowering the market risk facing potential wind investors by supporting all phases
165.31of project development.
165.32    The grantee must demonstrate an ability to sustain program functions with ongoing
165.33revenue from sources other than state funding and shall provide a 35 percent grant match.
165.34The grant must be awarded on a competitive basis. The center must use best practices
165.35regarding grant management functions, including selection and monitoring of the grantee,
166.1compliance review, and financial oversight. Grant management fees are limited to 2.5
166.2percent of the grant.
166.3    (c) The commissioner of commerce shall monitor the activities of the rural wind
166.4energy development assistance program created under this section. By November 1, 2008,
166.5the commissioner shall submit an evaluation of the program to the chairs of the house of
166.6representatives and senate committees with jurisdiction over energy policy and finance,
166.7including recommendations for legislative or administrative action to better achieve the
166.8program goals described in paragraph (a).

166.9    Sec. 19. UNIFORM CODES AND STANDARDS FOR HYDROGEN, FUEL
166.10CELLS, AND RELATED TECHNOLOGIES; RECOMMENDATIONS AND
166.11REPORT.
166.12    (a) The commissioner of labor and industry, in consultation with the Department of
166.13Commerce and other relevant public and private interests, shall develop recommendations
166.14regarding the adoption of uniform codes and standards for hydrogen infrastructure, fuel
166.15cells, and related technologies, and report those recommendations to the legislature by
166.16December 31, 2008.
166.17    (b) The goal of the recommendations is to have all regulatory jurisdictions in the
166.18state have the same safety standards with regard to the production, storage, transportation,
166.19distribution, and use of hydrogen, fuel cells, and related technologies. The commissioner's
166.20recommendations must, without limitation, include:
166.21    (1) codes and standards that already exist for hydrogen, fuel cells, and related
166.22technologies, and how the state should formalize their use;
166.23    (2) codes and standards still under development by various official standard-making
166.24bodies;
166.25    (3) gaps between existing codes and standards, those under development, and those
166.26that may still be needed but are not yet being developed;
166.27    (4) the need for, and estimated cost of, additional education and training for
166.28emergency management and code officials;
166.29    (5) any changes needed to environmental and other permitting processes to
166.30accommodate the commercialization of hydrogen, fuel cells, and related technologies; and
166.31    (6) recommendations on appropriate codes and standards for educational and
166.32research institutions.

166.33    Sec. 20. HYDROGEN REFUELING STATION GRANTS.
167.1    In addition to the purposes specified in Laws 2005, chapter 97, article 13, section
167.24, for which the commissioner of commerce may make grants, the commissioner may
167.3make grants under that law for the purpose of developing, deploying, and encouraging
167.4commercially promising renewable hydrogen production systems and hydrogen end
167.5uses in partnership with industry. The authority of the commissioner to make grants
167.6and assessments under Laws 2005, chapter 97, article 13, section 4, continues until the
167.7authorized grants and assessments are made.

167.8    Sec. 21. OFF-SITE RENEWABLE DISTRIBUTED GENERATION.
167.9    The commissioner of commerce shall convene a broad group of interested
167.10stakeholders to evaluate the feasibility and potential for the interconnection and parallel
167.11operation of off-site renewable distributed generation in a manner consistent with
167.12Minnesota Statutes, sections 216B.37 to 216B.43, and shall issue recommendations to
167.13the chairs of the house of representatives and senate committees with jurisdiction over
167.14energy issues by February 1, 2008.

167.15ARTICLE 7
167.16ENVIRONMENT

167.17    Section 1. BIOFUEL PERMITTING REPORT.
167.18    By January 15, 2008, the Pollution Control Agency, the commissioner of natural
167.19resources, and the Environmental Quality Board shall report to the house of representatives
167.20and senate committees and divisions with jurisdiction over agriculture and environment
167.21policy and budget on the process to issue permits for biofuel production facilities. The
167.22report shall include:
167.23    (1) information on the timing of the permits and measures taken to improve the
167.24timing of the permitting process;
167.25    (2) recommended changes to statutes, rules, or procedures to improve the biofuel
167.26facility permitting process and reduce the groundwater needed for production; and
167.27    (3) other information or analysis that may be helpful in understanding or improving
167.28the biofuel production facility permitting process.
167.29EFFECTIVE DATE.This section is effective the day following final enactment.

167.30    Sec. 2. DEFINITIONS.
168.1    Subdivision 1. Terrestrial carbon sequestration. "Terrestrial carbon sequestration"
168.2means the long-term storage of carbon in soil and vegetation to prevent its collection in
168.3the atmosphere as carbon dioxide.
168.4    Subd. 2. Geologic carbon sequestration. "Geologic carbon sequestration" means
168.5injecting carbon dioxide into underground geologic formations where it can be stored for
168.6long periods of time to prevent its escape to the atmosphere.

168.7    Sec. 3. TERRESTRIAL CARBON SEQUESTRATION ACTIVITIES.
168.8    Subdivision 1. Study; scope. The Board of Regents of the University of Minnesota
168.9is requested to conduct a study assessing the potential capacity for carbon sequestration in
168.10Minnesota's terrestrial systems. The study must:
168.11    (1) conduct a statewide inventory and construct a database of lands across several
168.12land types, such as forests, agricultural lands, peatlands, and wetlands, that have the
168.13potential to sequester significant quantities of carbon and of lands that currently contain
168.14large stocks of carbon that are at risk of being emitted to the atmosphere as a result of
168.15changes in land use and climate;
168.16    (2) quantify the ability of various land use practices, such as the growth of different
168.17species of crops, grasses, and trees, to sequester carbon and their impacts on other
168.18ecological services of value, including air and water quality, biodiversity, and wildlife
168.19habitat;
168.20    (3) identify a network of benchmark monitoring sites to measure the impact of
168.21long-term, large-scale factors, such as changes in climate, carbon dioxide levels, and land
168.22use, on the terrestrial carbon sequestration capacity of various land types, to improve
168.23understanding of carbon-terrestrial interactions and dynamics;
168.24    (4) identify long-term demonstration projects to measure the impact of deliberate
168.25sequestration practices, including the establishment of biofuel production systems, on
168.26forest, agricultural, wetland, and prairie ecosystems; and
168.27    (5) evaluate current state policies and programs that affect the levels of terrestrial
168.28sequestration on public and private lands and identify gaps and recommend policy changes
168.29to increase sequestration rates.
168.30    Subd. 2. Coordination of terrestrial carbon sequestration activities. Planning
168.31and implementation of the study described in subdivision 1 will be coordinated by
168.32the Minnesota Terrestrial Carbon Sequestration Initiative, a task force consisting of
168.33representatives from the University of Minnesota, the Department of Agriculture, the
168.34Board of Water and Soil Resources, the Department of Commerce, the Department
169.1of Natural Resources, and the Pollution Control Agency and agricultural, forestry,
169.2conservation, and business stakeholders.
169.3    Subd. 3. Contracting. The University of Minnesota may contract with another
169.4party to perform any of the tasks listed in subdivision 1.
169.5    Subd. 4. Report. The commissioner of natural resources must submit a report
169.6with the results of the study to the senate and house of representatives committees with
169.7jurisdiction over environmental and energy policies no later than February 1, 2008.

169.8    Sec. 4. GEOLOGIC CARBON SEQUESTRATION ASSESSMENT.
169.9    Subdivision 1. Study; scope. (a) The Minnesota Geological Survey shall conduct
169.10a study assessing the potential capacity for geologic carbon sequestration in the
169.11Midcontinent Rift system in Minnesota. The study must assess the potential of porous
169.12and permeable sandstone layers deeper than one kilometer below the surface that are
169.13capped by less permeable shale and must identify potential risks to carbon storage, such
169.14as areas of low permeability in injection zones, low storage capacity, and potential seal
169.15failure. The study must identify the most promising formations and geographic areas for
169.16physical analysis of carbon sequestration potential. The study must review geologic
169.17maps, published reports and surveys, and any relevant unpublished raw data with respect
169.18to attributes that are pertinent for the long-term sequestration of carbon in geologic
169.19formations, in particular, those that bear on formation injectivity, capacity, and seal
169.20effectiveness. The study must examine the following characteristics of key sedimentary
169.21units within the Midcontinent Rift system in Minnesota:
169.22    (1) likely depth, temperature, and pressure;
169.23    (2) physical properties, including the ability to contain and transmit fluids;
169.24    (3) the type of rocks present;
169.25    (4) structure and geometry, including folds and faults; and
169.26    (5) hydrogeology, including water chemistry and water flow.
169.27    (b) The commissioner of natural resources, in consultation with the Minnesota
169.28Geological Survey, shall contract for a study to estimate the properties of the Midcontinent
169.29Rift system in Minnesota, as described in paragraph (a), clauses (1) to (5), through the
169.30use of computer models developed for similar geologic formations located outside of
169.31Minnesota which have been studied in greater detail.
169.32    Subd. 2. Consultation. The Minnesota Geological Survey shall consult with the
169.33Minnesota Mineral Coordinating Committee, established in Minnesota Statutes, section
169.3493.0015, in planning and implementing the study design.
170.1    Subd. 3. Report. The commissioner of natural resources must submit a report
170.2with the results of the study to the senate and house of representatives committees with
170.3jurisdiction over environmental and energy policies no later than February 1, 2008.

170.4    Sec. 5. STAY EXTENDED; DRY CASK STORAGE AT MONTICELLO.
170.5    The stay of a Public Utilities Commission decision to approve an application for
170.6a certificate of need for additional dry cask storage at the Monticello nuclear power
170.7generating facility, imposed under Minnesota Statutes, section 116C.83, subdivision 3,
170.8is extended until June 1, 2008.
170.9EFFECTIVE DATE.This section is effective the day following final enactment.

170.10ARTICLE 8
170.11HEATING ASSISTANCE AND UTILITIES

170.12    Section 1. [216B.091] MONTHLY REPORTS.
170.13    (a) Each public utility must report the following data on residential customers to the
170.14commission monthly, in a format determined by the commission:
170.15    (1) number of customers;
170.16    (2) number and total amount of accounts past due;
170.17    (3) average customer past due amount;
170.18    (4) total revenue received from the low-income home energy assistance program and
170.19other sources contributing to the bills of low-income persons;
170.20    (5) average monthly bill;
170.21    (6) total sales revenue;
170.22    (7) total write-offs due to uncollectible bills;
170.23    (8) number of disconnection notices mailed;
170.24    (9) number of accounts disconnected for nonpayment;
170.25    (10) number of accounts reconnected to service; and
170.26    (11) number of accounts that remain disconnected, grouped by the duration of
170.27disconnection, as follows:
170.28    (i) 1-30 days;
170.29    (ii) 31-60 days; and
170.30    (iii) more than 60 days.
170.31    (b) Monthly reports for October through April must also include the following data:
170.32    (1) number of cold weather protection requests;
170.33    (2) number of payment arrangement requests received and granted;
171.1    (3) number of right to appeal notices mailed to customers;
171.2    (4) number of reconnect request appeals withdrawn;
171.3    (5) number of occupied heat-affected accounts disconnected for 24 hours or more
171.4for electric and natural gas service separately;
171.5    (6) number of occupied non-heat-affected accounts disconnected for 24 hours or
171.6more for electric and gas service separately;
171.7    (7) number of customers granted cold weather rule protection;
171.8    (8) number of customers disconnected who did not request cold weather rule
171.9protection; and
171.10    (9) number of customers disconnected who requested cold weather rule protection.
171.11    (c) The data reported under paragraphs (a) and (b) is presumed to be accurate upon
171.12submission and must be made available through the commission's electronic filing system.

171.13    Sec. 2. [216B.0951] PROPANE PREPURCHASE PROGRAM.
171.14    Subdivision 1. Establishment. The commissioner of commerce shall operate, or
171.15contract to operate, a propane fuel prepurchase fuel program. The commissioner may
171.16contract at any time of the year to purchase the lesser of one-third of the liquid propane
171.17fuel consumed by low-income home energy assistance program recipients during the
171.18previous heating season or the amount that can be purchased with available funds. The
171.19propane fuel prepurchase program must be available statewide through each local agency
171.20that administers the energy assistance program. The commissioner may decide to limit or
171.21not engage in prepurchasing if the commissioner finds that there is a reasonable likelihood
171.22that prepurchasing will not provide fuel-cost savings.
171.23    Subd. 2. Hedge account. The commissioner may establish a hedge account with
171.24realized program savings due to prepurchasing. The account must be used to compensate
171.25program recipients an amount up to the difference in cost for fuel provided to the recipient
171.26if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No
171.27more than ten percent of the aggregate prepurchase program savings may be used to
171.28establish the hedge account.
171.29    Subd. 3. Report. The Department of Commerce shall issue a report by June 30,
171.302008, made available electronically on its Web site and in print upon request, that contains
171.31the following information:
171.32    (1) the cost per gallon of prepurchased fuel;
171.33    (2) the total gallons of fuel prepurchased;
171.34    (3) the average cost of propane each month between October and the following April;
172.1    (4) the number of energy assistance program households receiving prepurchased
172.2fuel; and
172.3    (5) the average savings accruing or benefit increase provided to energy assistance
172.4households.

172.5    Sec. 3. [216B.096] COLD WEATHER RULE; PUBLIC UTILITIES.
172.6    Subdivision 1. Scope. This section applies only to residential customers of a
172.7public utility.
172.8    Subd. 2. Definitions. (a) The terms used in this section have the meanings given
172.9them in this subdivision.
172.10    (b) "Cold weather period" means the period from October 15 through April 15 of
172.11the following year.
172.12    (c) "Customer" means a residential customer of a utility.
172.13    (d) "Customer's income" means the actual monthly income of the customer or the
172.14average monthly income of the customer computed on a calendar year basis, whichever is
172.15less, and does not include any amount received for energy assistance.
172.16    (e) "Disconnection" means the involuntary loss of utility heating service as a result
172.17of a physical act by a utility to discontinue service. Disconnection includes installation of
172.18a service or load limiter or any device that limits or interrupts utility service in any way.
172.19    (f) "Household income" means the combined income, as defined in section 290A.03,
172.20subdivision 3, of all residents of the customer's household, computed on an annual basis.
172.21Household income does not include any amount received for energy assistance.
172.22    (g) "Reasonably timely payment" means payment within seven calendar days of
172.23agreed-upon due dates.
172.24    (h) "Reconnection" means the restoration of utility heating service after it has been
172.25disconnected.
172.26    (i) "Third party notice" means a commission-approved notice containing, at a
172.27minimum, the following information:
172.28    (1) a statement that the utility will send a copy of any future notice of proposed
172.29disconnection of utility heating service to a third party designated by the residential
172.30customer;
172.31    (2) instructions on how to request this service; and
172.32    (3) a statement that the residential customer should contact the person the customer
172.33intends to designate as the third party contact before providing the utility with the party's
172.34name.
172.35    (j) "Utility" means a public utility as defined in section 216B.02.
173.1    (k) "Utility heating service" means natural gas or electricity used as a primary
173.2heating source, including electricity service necessary to operate gas heating equipment.
173.3    (l) "Working days" means Mondays through Fridays, excluding legal holidays.
173.4    Subd. 3. Utility obligations before cold weather period. (a) Each year, between
173.5September 1 and October 15, each utility must notify all customers of the provisions of
173.6this section. Notice must also be provided to all new residential customers when service is
173.7initiated. Notice must, at a minimum, include:
173.8    (1) an explanation of the customer's rights and responsibilities under subdivision 5;
173.9    (2) an explanation of no-cost and low-cost methods to reduce the consumption
173.10of energy; and
173.11    (3) a third party notice.
173.12    (b) Also, each year, between September 1 and October 15, each utility must attempt
173.13to contact, establish a payment agreement, and reconnect utility heating service to all
173.14customers who were disconnected after the preceding heating season. A record must be
173.15made of all contacts and attempted contacts.
173.16    Subd. 4. Notice before disconnection during cold weather period. Before
173.17disconnecting utility heating service during the cold weather period, a utility must provide
173.18notice to a customer, in easy-to-understand language, that contains the following:
173.19    (1) the date of the scheduled disconnection;
173.20    (2) the amount due;
173.21    (3) ways to avoid disconnection;
173.22    (4) information regarding payment agreements;
173.23    (5) a statement explaining the customer's rights and responsibilities, including the
173.24right to appeal a determination by the utility that the customer is not eligible for protection
173.25and the right to request commission intervention if the utility and customer cannot arrive
173.26at a mutually acceptable payment agreement;
173.27    (6) a list of local energy assistance and weatherization providers in each county
173.28served by the utility; and
173.29    (7) a third party notice.
173.30    Subd. 5. Cold weather rule. (a) During the cold weather period, a utility may
173.31not disconnect and must reconnect a customer whose household income is at or below
173.3250 percent of the state median income if the customer enters into and makes reasonably
173.33timely payments under a mutually acceptable payment agreement with the utility that is
173.34based on the financial resources and circumstances of the household; provided that, a
173.35utility may not require a customer to pay more than ten percent of the customer's income
173.36toward current and past utility bills for utility heating service.
174.1    (b) A utility may accept more than ten percent of the household income as the
174.2payment arrangement amount if agreed to by the customer.
174.3    (c) The customer or a designated third party may request a modification of the terms
174.4of a payment agreement previously entered into if the customer's financial circumstances
174.5have changed or the customer is unable to make reasonably timely payments. The utility
174.6may refer to commission staff a customer who requests more than two modifications of a
174.7payment agreement during a single cold weather rule period if no payments have been
174.8made.
174.9    (d) The payment agreement terminates at the expiration of the cold weather period
174.10unless a longer period is mutually agreed to by the customer and the utility.
174.11    Subd. 6. Verification of income. (a) In verifying a customer's household income,
174.12a utility may:
174.13    (1) accept the signed statement of a customer that the customer is income eligible;
174.14    (2) obtain income verification from a local energy assistance provider or a
174.15government agency;
174.16    (3) consider one or more of the following:
174.17    (i) the most recent income tax return filed by members of the customer's household;
174.18    (ii) for each employed member of the customer's household, paycheck stubs for the
174.19last two months or a written statement from the employer reporting wages earned during
174.20the preceding two months;
174.21    (iii) a customer's Medicaid card, documentation that the customer receives food
174.22stamps, or a food support eligibility document;
174.23    (iv) documentation that the customer receives a pension from the Department of
174.24Human Services, the Social Security Administration, the Veteran's Administration, or
174.25other pension provider;
174.26    (v) a letter showing the customer's dismissal from a job or other documentation of
174.27unemployment; or
174.28    (vi) other documentation that supports the customer's declaration of income
174.29eligibility.
174.30    (b) A customer who receives energy assistance benefits under any federal, state,
174.31or county government programs in which eligibility is defined as household income at
174.32or below 50 percent of state median income is deemed to be automatically eligible for
174.33protection under this section and no other verification of income may be required.
174.34    Subd. 7. Prohibitions and requirements. During the cold weather period:
175.1    (a) A utility may not charge a deposit or delinquency charge to a customer who has
175.2entered into a payment agreement or a customer who has appealed to the commission
175.3under subdivision 8.
175.4    (b) A utility may not disconnect service during the following periods:
175.5    (1) during the pendency of any appeal under subdivision 8;
175.6    (2) earlier than ten working days after a utility has deposited in first class mail,
175.7or seven working days after a utility has personally served, the notice required under
175.8subdivision 4 to a customer in an occupied dwelling;
175.9    (3) earlier than ten working days after the utility has deposited in first class mail
175.10the notice required under subdivision 4 to the recorded billing address of the customer,
175.11if the utility has reasonably determined from an on-site inspection that the dwelling
175.12is unoccupied;
175.13    (4) on a Friday, unless the utility makes personal contact with, and offers a payment
175.14agreement to, the customer;
175.15    (5) on a Saturday, Sunday, holiday, or the day before a holiday;
175.16    (6) when utility offices are closed;
175.17    (7) when no utility personnel are available to resolve disputes, enter into payment
175.18agreements, accept payments, and reconnect service; or
175.19    (8) when commission offices are closed.
175.20    (c) Also, a utility may not discontinue service until the utility investigates whether
175.21the dwelling is actually occupied. At a minimum, the investigation must include one visit
175.22by the utility to the dwelling during normal working hours. If no contact is made and
175.23there is reason to believe that the dwelling is occupied, the utility must attempt a second
175.24contact during nonbusiness hours. If personal contact is made, the utility representative
175.25must provide notice required under subdivision 4 and, if the utility representative is not
175.26authorized to enter into a payment agreement, the telephone number the customer can call
175.27to establish a payment agreement.
175.28    (d) Each utility must reconnect utility service if, following disconnection, the
175.29dwelling is found to be occupied and the customer agrees to enter into a payment
175.30agreement or appeals to the commission because the customer and the utility are unable to
175.31agree on a payment agreement.
175.32    Subd. 8. Disputes; customer appeals. (a) A utility must provide the customer
175.33and any designated third party with a commission-approved written notice of the right
175.34to appeal:
175.35    (1) upon a utility determination that the customer's household income is more than
175.3650 percent of state median household income; or
176.1    (2) when the utility and customer are unable to agree on the establishment or
176.2modification of a payment agreement.
176.3    (b) A customer's appeal must be filed with the commission no later than seven
176.4working days after the customer's receipt of a personally served disconnection notice, or
176.5within ten working days after the utility has deposited a first class mail notice. If no
176.6disconnection notice has been issued, an appeal may be filed at any time.
176.7    (c) The commission must determine all customer appeals on an informal basis,
176.8within 30 calendar days of receipt of a customer's written appeal. In making its
176.9determination, the commission must consider one or more of the factors in subdivision 6,
176.10paragraph (a), clauses (2) and (3).
176.11    (d) Notwithstanding any other law, following an appeals decision adverse to the
176.12customer, a utility may not disconnect utility heating service for seven working days
176.13after the utility has personally served a disconnection notice, or for ten working days
176.14after the utility has deposited a first class mail notice. The notice must contain, in
176.15easy-to-understand language, the date on or after which disconnection will occur, the
176.16reason for disconnection, and ways to avoid disconnection.
176.17    Subd. 9. Utility appeals. A utility may file an appeal of the commission's informal
176.18determination under subdivision 8 within 14 working days after it is issued. An appeal
176.19must be in writing, on forms prescribed by the commission. A copy of the appeal and a
176.20commission-approved letter explaining that the customer may have service disconnected
176.21must be mailed by the utility to the local human services or social services agency and
176.22the local energy assistance provider on the same day as the utility mails its appeal to
176.23the commission.
176.24    Subd. 10. Reporting. Annually on November 1, a utility must file with the
176.25commission a report specifying the number of utility heating service customers whose
176.26service is disconnected or remains disconnected as of October 1 and October 15. If
176.27customers remain disconnected on October 15, a utility must file a report each week
176.28between November 1 and the end of the cold weather period specifying:
176.29    (1) the number of utility heating service customers that are or remain disconnected
176.30from service; and
176.31    (2) the number of utility heating service customers that are reconnected to service
176.32each week. The utility may discontinue weekly reporting if the number of utility heating
176.33service customers that are or remain disconnected reaches zero before the end of the
176.34cold weather period.

176.35    Sec. 4. Minnesota Statutes 2006, section 216B.097, subdivision 1, is amended to read:
177.1    Subdivision 1. Application; notice to residential customer. (a) A municipal utility
177.2or a cooperative electric association must not disconnect and must reconnect the utility
177.3service of a residential customer during the period between October 15 and April 15 if
177.4the disconnection affects the primary heat source for the residential unit when and all of
177.5the following conditions are met:
177.6    (1) the customer has declared inability to pay on forms provided by the utility. For
177.7the purposes of this clause, a customer that is receiving energy assistance is deemed
177.8to have demonstrated an inability to pay;
177.9    (2) The household income of the customer is less than at or below 50 percent of the
177.10state median household income;. A municipal utility or cooperative electric association
177.11utility may (i) verify income on forms it provides or (ii) obtain
177.12    (3) verification of income may be conducted by from the local energy assistance
177.13provider or the utility, unless the. A customer is deemed automatically eligible for to meet
177.14the income requirements of this clause protection against disconnection as a recipient of
177.15if the customer receives any form of public assistance, including energy assistance, that
177.16uses an income eligibility in an amount threshold set at or below the income eligibility in
177.17clause (2); 50 percent of the state median household income.
177.18    (4) (2) A customer whose account is current for the billing period immediately prior
177.19to October 15 or who, at any time, enters into and makes reasonably timely payments
177.20under a payment schedule agreement that considers the financial resources of the
177.21household and is reasonably current with payments under the schedule; and.
177.22    (5) the (3) A customer receives referrals to energy assistance programs,
177.23weatherization, conservation, or other programs likely to reduce the customer's energy
177.24bills.
177.25    (b) A municipal utility or a cooperative electric association must, between August
177.2615 and October 15 of each year, notify all residential customers of the provisions of this
177.27section.

177.28    Sec. 5. Minnesota Statutes 2006, section 216B.097, subdivision 3, is amended to read:
177.29    Subd. 3. Restrictions if disconnection necessary. (a) If a residential customer must
177.30be involuntarily disconnected between October 15 and April 15 for failure to comply with
177.31the provisions of subdivision 1, the disconnection must not occur:
177.32    (1) on a Friday or on the day before a holiday, unless the customer declines to enter
177.33into a payment agreement offered that day in person or via personal contact by telephone
177.34by a municipal utility or cooperative electric association;
177.35    (2) on a weekend, holiday, or the day before a holiday;
178.1    (3) when utility offices are closed; or
178.2    (4) after the close of business on a day when disconnection is permitted, unless
178.3a field representative of a municipal utility or cooperative electric association who is
178.4authorized to enter into a payment agreement, accept payment, and continue service,
178.5offers a payment agreement to the customer.
178.6Further, the disconnection must not occur until at least 20 days after the notice required
178.7in subdivision 2 has been mailed to the customer or 15 days after the notice has been
178.8personally delivered to the customer.
178.9    (b) If a customer does not respond to a disconnection notice, the customer must
178.10not be disconnected until the utility investigates whether the residential unit is actually
178.11occupied. If the unit is found to be occupied, the utility must immediately inform the
178.12occupant of the provisions of this section. If the unit is unoccupied, the utility must give
178.13seven days' written notice of the proposed disconnection to the local energy assistance
178.14provider before making a disconnection.
178.15    (c) If, prior to disconnection, a customer appeals a notice of involuntary
178.16disconnection, as provided by the utility's established appeal procedure, the utility must
178.17not disconnect until the appeal is resolved.

178.18    Sec. 6. Minnesota Statutes 2006, section 216B.098, subdivision 4, is amended to read:
178.19    Subd. 4. Undercharges. (a) A utility shall offer a payment agreement to customers
178.20who have been undercharged if no culpable conduct by the customer or resident of
178.21the customer's household caused the undercharge. The agreement must cover a period
178.22equal to the time over which the undercharge occurred or a different time period that is
178.23mutually agreeable to the customer and the utility, except that the duration of a payment
178.24agreement offered by a utility to a customer whose household income is at or below 50
178.25percent of state median household income must consider the financial circumstances of
178.26the customer's household.
178.27    (b) No interest or delinquency fee may be charged under this as part of an
178.28undercharge agreement under this subdivision.
178.29    (c) If a customer inquiry or complaint results in the utility's discovery of the
178.30undercharge, the utility may bill for undercharges incurred after the date of the inquiry
178.31or complaint only if the utility began investigating the inquiry or complaint within a
178.32reasonable time after when it was made.

178.33    Sec. 7. Minnesota Statutes 2006, section 216B.16, subdivision 10, is amended to read:
179.1    Subd. 10. Intervenor payment compensation. (a) An organization or individual
179.2granted formal intervenor status by the commission is eligible to receive compensation.
179.3    (b) The commission may order a utility to pay all or a portion of a party's intervention
179.4 compensate all or part of an eligible intervenor's reasonable costs not to exceed $20,000
179.5per intervenor in any proceeding of participation in a general rate case that comes before
179.6the commission when the commission finds that the intervenor has materially assisted
179.7the commission's deliberation and the intervenor has insufficient financial resources to
179.8afford the costs of intervention and when a lack of compensation would present financial
179.9hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor
179.10in any proceeding. For the purpose of this subdivision, "materially assisted" means that
179.11the intervenor's participation and presentation was useful and seriously considered, or
179.12otherwise substantially contributed to the commission's deliberations in the proceeding.
179.13    (c) In determining whether an intervenor has materially assisted the commission's
179.14deliberation, the commission must consider, at a minimum, whether:
179.15    (1) the intervenor represented an interest that would not otherwise have been
179.16adequately represented;
179.17    (2) the evidence or arguments presented or the positions taken by the intervenor
179.18were an important factor in producing a fair decision;
179.19    (3) the intervenor's position promoted a public purpose or policy;
179.20    (4) the evidence presented, arguments made, issues raised, or positions taken by the
179.21intervenor would not have been a part of the record without the intervenor's participation;
179.22and
179.23    (5) the administrative law judge or the commission adopted, in whole or in part, a
179.24position advocated by the intervenor.
179.25    (d) In determining whether the absence of compensation would present financial
179.26hardship to the intervenor, the commission must consider:
179.27    (1) whether the costs presented in the intervenor's claim reflect reasonable fees for
179.28attorneys and expert witnesses and other reasonable costs; and
179.29    (2) the ratio between the costs of intervention and the intervenor's unrestricted funds.
179.30    (e) An intervenor seeking compensation must file a request and an affidavit of service
179.31with the commission, and serve a copy of the request on each party to the proceeding.
179.32The request must be filed 30 days after the later of (1) the expiration of the period within
179.33which a petition for rehearing, amendment, vacation, reconsideration, or reargument must
179.34be filed or (2) the date the commission issues an order following rehearing, amendment,
179.35vacation, reconsideration, or reargument.
179.36    (f) The compensation request must include:
180.1    (1) the name and address of the intervenor or representative of the nonprofit
180.2organization the intervenor is representing;
180.3    (2) if necessary, proof of the organization's nonprofit, tax-exempt status;
180.4    (3) the name and docket number of the proceeding for which compensation is
180.5requested;
180.6    (4) a list of actual annual revenues and expenses of the organization the intervenor is
180.7representing for the preceding year and projected revenues, revenue sources, and expenses
180.8for the current year;
180.9    (5) the organization's balance sheet for the preceding year and a current monthly
180.10balance sheet;
180.11    (6) an itemization of intervenor costs and the total compensation request; and
180.12    (7) a narrative explaining why additional organizational funds cannot be devoted
180.13to the intervention.
180.14    (g) Within 30 days after service of the request for compensation, a party may file
180.15a response, together with an affidavit of service, with the commission. A copy of the
180.16response must be served on the intervenor and all other parties to the proceeding.
180.17    (h) Within 15 days after the response is filed, the intervenor may file a reply with
180.18the commission. A copy of the reply and an affidavit of service must be served on all
180.19other parties to the proceeding.
180.20    (i) If additional costs are incurred as a result of additional proceedings following
180.21the commission's initial order, the intervenor may file an amended request within 30
180.22days after the commission issues an amended order. Paragraphs (e) to (h) apply to an
180.23amended request.
180.24    (j) The commission must issue a decision on intervenor compensation within 60
180.25days of a filing by an intervenor.
180.26    (k) A party may request reconsideration of the commission's compensation decision
180.27within 30 days of the decision.
180.28    (l) If the commission issues an order requiring payment of intervenor compensation,
180.29the utility that was the subject of the proceeding must pay the compensation to the
180.30intervenor, and file with the commission proof of payment, within 30 days after the later
180.31of (1) the expiration of the period within which a petition for reconsideration of the
180.32commission's compensation decision must be filed or (2) the date the commission issues
180.33an order following reconsideration of its order on intervenor compensation.

180.34    Sec. 8. Minnesota Statutes 2006, section 216B.16, subdivision 15, is amended to read:
181.1    Subd. 15. Low-income affordability programs. (a) The commission may must
181.2consider ability to pay as a factor in setting utility rates and may establish affordability
181.3programs for low-income residential ratepayers in order to ensure affordable, reliable, and
181.4continuous service to low-income utility customers. By September 1, 2007, a public
181.5utility serving low-income residential ratepayers who use natural gas for heating must
181.6file an affordability program with the commission. For purposes of this subdivision,
181.7"low-income residential ratepayers" means ratepayers who receive energy assistance from
181.8the low-income home energy assistance program (LIHEAP).
181.9    (b) The purpose of the low-income programs is to Any affordability program the
181.10commission orders a utility to implement must:
181.11    (1) lower the percentage of income that participating low-income households devote
181.12to energy bills, to;
181.13    (2) increase participating customer payments, and to over time by increasing the
181.14frequency of payments;
181.15    (3) decrease or eliminate participating customer arrears;
181.16    (4) lower the utility costs associated with customer account collection activities; and
181.17    (5) coordinate the program with other available low-income bill payment assistance
181.18and conservation resources.
181.19In ordering low-income affordability programs, the commission may require public
181.20utilities to file program evaluations, including the coordination of other available
181.21low-income bill payment and conservation resources and that measure the effect of the
181.22affordability program on:
181.23    (1) reducing the percentage of income that participating households devote to energy
181.24bills;
181.25    (2) service disconnections; and
181.26    (3) frequency of customer payment behavior payments, utility collection costs,
181.27arrearages, and bad debt.
181.28    (c) The commission must issue orders necessary to implement, administer, and
181.29evaluate affordability programs, and to allow a utility to recover program costs, including
181.30administrative costs, on a timely basis. The commission may not allow a utility to recover
181.31administrative costs, excluding start-up costs, in excess of five percent of total program
181.32costs, or program evaluation costs in excess of two percent of total program costs. The
181.33commission must permit deferred accounting, with carrying costs, for recovery of program
181.34costs incurred during the period between general rate cases.
181.35    (d) Public utilities may use information collected or created for the purpose of
181.36administering energy assistance to administer affordability programs.

182.1    Sec. 9. RULES; INSTRUCTION TO COMMISSION AND REVISOR.
182.2    Subdivision 1. Public Utilities Commission. The commission must amend
182.3Minnesota Rules, chapters 7820 and 7831, to conform with the provisions of Minnesota
182.4Statutes, section 216B.096, as authorized under Minnesota Statutes, section 14.388,
182.5subdivision 1, clause (3).
182.6    Subd. 2. Revisor of statutes. The revisor of statutes shall change the reference from
182.7"216B.095" to "216B.096" wherever found in Minnesota Rules, chapter 7820.

182.8    Sec. 10. REPEALER.
182.9(a) Minnesota Rules, parts 7831.0100; 7831.0200; 7831.0300; 7831.0400;
182.107831.0500; 7831.0600; 7831.0700; and 7831.0800, are repealed as they pertain to a
182.11general rate case for a gas or electric utility held before the commission. The Public
182.12Utilities Commission shall timely adopt rules to conform with this repealer and Minnesota
182.13Statutes, section 216B.16, subdivision 10, as amended by this act, under the exempt rule
182.14procedures of Minnesota Statutes, section 14.388, subdivision 1, clause (3).
182.15(b) Minnesota Statutes 2006, section 216B.095, is repealed.