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SF 2096

4th 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; modifying certain license provisions; establishing an off-highway
1.10vehicle safety and conservation program; defining certain terms; providing for
1.11venison donation; providing for prairie establishment guidance; modifying
1.12Greenleaf Lake State Park provisions; creating the Cuyuna Country State
1.13Recreation Area Citizens Advisory Council; restricting certain off-road vehicle
1.14trails; modifying state park permit requirements; providing for control of tree
1.15pests; modifying timber sale provisions; exempting certain exchanged land from
1.16the tax-forfeited land assurance fee; authorizing certain leases of tax-forfeited
1.17lands; modifying definition of public official; modifying agency service
1.18requirements; creating a grant program; designating a state wildlife management
1.19area; improving oversight of local government water management; modifying
1.20certain authorities and duties; modifying provisions for wetland conservation;
1.21modifying requirements for ditch buffers; modifying provisions for individual
1.22sewage treatment systems; providing for civil enforcement; modifying provisions
1.23for regulating genetically engineered organisms; establishing requirements for
1.24acquisition of easements; modifying access to certain wetlands; modifying trail
1.25designation requirements; eliminating sunset of sustainable forest resources
1.26provisions; authorizing rulemaking; providing for voluntary termination of timber
1.27sale permits; modifying county environmental trust fund provisions; naming
1.28an island in Pelican Lake; modifying or adding provisions relating to financial
1.29institutions, investments of health savings accounts, mortgage originators, the
1.30Vehicle Protection Product Act, long-term care insurance, automobile insurance,
1.31an electronic licensing system and technology fees, allowable forms of collateral,
1.32securities regulation, charges billed by licensed health professionals, allocation
1.33of petroleum inspection fee for low-income weatherization assistance, delivery
1.34of home heating fuel, debt management services, the state energy city, energy
1.35savings, renewable energy research, a renewable hydrogen initiative, the
1.36Legislative Electric Energy Task Force, Clean Energy Resource Teams, landfill
1.37gas recovery, on-farm biogas recovery, nuisance liability of wind energy
1.38conversion systems, rural wind energy, petroleum violation escrow funds for
1.39K-12 school energy projects, renewable energy studies and reports, standards
2.1for hydrogen and fuel cells, hydrogen refueling stations, off-site renewable
2.2distributed generation, biofuel production permits, terrestrial and geologic carbon
2.3sequestration, utility charges and residential customers, the cold weather rule, a
2.4propane prepurchase program, and intervenor compensation for participants in
2.5proceedings before the Public Utilities Commission; modifying radioactive waste
2.6management; modifying public utility resource plan provisions; requiring studies
2.7and reports; providing civil penalties; making technical and clarifying changes;
2.8amending Minnesota Statutes 2006, sections 10A.01, subdivision 35; 13.712, by
2.9adding a subdivision; 15.99, subdivision 3; 16A.531, subdivision 1a; 17.4984,
2.10subdivision 1; 18G.03, by adding a subdivision; 18G.11; 45.011, subdivision 1;
2.1146.04, subdivision 1; 46.05; 46.131, subdivision 2; 47.19; 47.59, subdivision
2.126; 47.60, subdivision 2; 47.62, subdivision 1; 47.75, subdivision 1; 48.15,
2.13subdivision 4; 58.04, subdivisions 1, 2; 58.05; 58.06, subdivision 2, by adding
2.14a subdivision; 58.08, subdivision 3; 58.10, subdivision 1; 60K.55, subdivision
2.152; 65B.44, subdivisions 2, 3, 4, 5; 65B.47, subdivision 7; 65B.54, subdivision
2.161, by adding a subdivision; 72A.201, subdivision 6; 80A.28, subdivision 1;
2.1780A.65, subdivision 1; 82.24, subdivisions 1, 4; 82B.09, subdivision 1; 84.025,
2.18subdivision 9; 84.026, subdivision 1; 84.0272, by adding a subdivision; 84.0855,
2.19subdivisions 1, 2; 84.780; 84.927, subdivision 2; 84.963; 84D.02, by adding a
2.20subdivision; 84D.13, subdivision 7; 84D.14; 85.013, by adding a subdivision;
2.2185.054, subdivision 12, by adding a subdivision; 86B.706, subdivision 2; 88.01,
2.22by adding a subdivision; 88.79, subdivisions 1, 2; 88.82; 89.001, subdivision 8,
2.23by adding subdivisions; 89.01, subdivisions 1, 2, 4; 89.22, subdivision 2; 89.51,
2.24subdivisions 1, 6, 9; 89.52; 89.53; 89.54; 89.55; 89.56, subdivisions 1, 3; 89.57;
2.2589.58; 89.59; 89.60; 89.61; 90.161, by adding a subdivision; 93.22, subdivision
2.261; 97A.055, subdivision 4; 97A.065, by adding a subdivision; 97A.133, by
2.27adding a subdivision; 97A.205; 97A.473, subdivisions 3, 5; 97A.475, subdivision
2.287, by adding a subdivision; 97A.485, subdivision 7; 97C.081, subdivision
2.293; 103B.101, by adding a subdivision; 103C.321, by adding a subdivision;
2.30103D.325, by adding a subdivision; 103E.021, subdivisions 1, 2, 3, by adding a
2.31subdivision; 103E.315, subdivision 8; 103E.321, subdivision 1; 103E.701, by
2.32adding a subdivision; 103E.705, subdivisions 1, 2, 3; 103E.728, subdivision
2.332; 103G.222, subdivisions 1, 3; 103G.2241, subdivisions 1, 2, 3, 6, 9, 11;
2.34103G.2242, subdivisions 2, 2a, 9, 12, 15; 103G.2243, subdivision 2; 103G.235;
2.35103G.301, subdivision 2; 115.55, subdivisions 1, 2, 3, by adding a subdivision;
2.36116C.775; 116C.777; 116C.779, subdivisions 1, 2; 116C.92; 116C.94,
2.37subdivision 1; 116C.97, subdivision 2; 118A.03, subdivision 2; 148.102, by
2.38adding a subdivision; 216B.097, subdivisions 1, 3; 216B.098, subdivision 4;
2.39216B.16, subdivisions 10, 15; 216B.241, subdivision 6; 216B.2422, by adding a
2.40subdivision; 216B.812, subdivisions 1, 2; 216C.051, subdivisions 2, 9; 216C.41,
2.41subdivisions 1, 2, 3; 239.101, subdivision 3; 282.04, subdivision 1; 325E.311,
2.42subdivision 6; 325N.01; 332.54, subdivision 7; 394.23; 462.353, subdivision 2;
2.43Laws 1998, chapter 389, article 16, section 31, subdivision 4, as amended; Laws
2.442003, chapter 128, article 1, section 169; Laws 2006, chapter 236, article 1,
2.45section 21; proposing coding for new law in Minnesota Statutes, chapters 1; 16C;
2.4617; 45; 58; 60K; 84; 84D; 85; 89; 97B; 103B; 103E; 103G; 216B; 216C; 325E;
2.47561; proposing coding for new law as Minnesota Statutes, chapters 59C; 332A;
2.48repealing Minnesota Statutes 2006, sections 18G.16; 46.043; 47.62, subdivision
2.495; 58.08, subdivision 1; 85.012, subdivision 24b; 89.51, subdivision 8; 89A.11;
2.50103G.2241, subdivision 8; 216B.095; 332.12; 332.13; 332.14; 332.15; 332.16;
2.51332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 332.23; 332.24; 332.25;
2.52332.26; 332.27; 332.28; 332.29; Minnesota Rules, parts 7831.0100; 7831.0200;
2.537831.0300; 7831.0400; 7831.0500; 7831.0600; 7831.0700; 7831.0800.
2.54BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.1ARTICLE 1
3.2ENVIRONMENT AND NATURAL RESOURCES
3.3APPROPRIATIONS

3.4
Section 1. SUMMARY OF APPROPRIATIONS.
3.5    The amounts shown in this section summarize direct appropriations, by fund, made
3.6in this article.
3.7
2008
2009
Total
3.8
General
$
134,588,000
$
137,139,000
$
271,727,000
3.9
3.10
State Government Special
Revenue
48,000
48,000
96,000
3.11
Environmental
61,425,000
61,622,000
123,047,000
3.12
Natural Resources
79,496,000
80,188,000
159,684,000
3.13
Game and Fish
90,073,000
92,032,000
182,105,000
3.14
Remediation
11,666,000
11,186,000
22,852,000
3.15
Permanent School
200,000
200,000
400,000
3.16
Total
$
377,496,000
$
382,415,000
$
759,911,000

3.17
Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
3.18    The sums shown in the columns marked "Appropriations" are appropriated to the
3.19agencies and for the purposes specified in this article. The appropriations are from the
3.20general fund, or another named fund, and are available for the fiscal years indicated
3.21for each purpose. The figures "2008" and "2009" used in this article mean that the
3.22appropriations listed under them are available for the fiscal year ending June 30, 2008, or
3.23June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
3.24year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
3.25year ending June 30, 2007, are effective the day following final enactment.
3.26
APPROPRIATIONS
3.27
Available for the Year
3.28
Ending June 30
3.29
2008
2009

3.30
Sec. 3. POLLUTION CONTROL AGENCY
3.31
Subdivision 1.Total Appropriation
$
100,271,000
$
99,989,000
3.32
Appropriations by Fund
3.33
2008
2009
3.34
General
27,232,000
27,233,000
3.35
3.36
State Government
Special Revenue
48,000
48,000
4.1
Environmental
61,425,000
61,622,000
4.2
Remediation
11,566,000
11,086,000
4.3The amounts that may be spent for each
4.4purpose are specified in the following
4.5subdivisions.
4.6
Subd. 2.Water
42,928,000
42,248,000
4.7
Appropriations by Fund
4.8
General
23,326,000
23,266,000
4.9
4.10
State Government
Special Revenue
48,000
48,000
4.11
Remediation
550,000
-0-
4.12
Environmental
19,004,000
18,934,000
4.13$2,348,000 the first year and $2,348,000
4.14the second year are for the clean water
4.15partnership program. Any balance remaining
4.16in the first year does not cancel and
4.17is available for the second year. This
4.18appropriation may be used for grants to
4.19local units of government for the purpose
4.20of restoring impaired waters listed under
4.21section 303(d) of the federal Clean Water
4.22Act in accordance with adopted total
4.23maximum daily loads (TMDL's), including
4.24implementation of approved clean water
4.25partnership diagnostic study work plans that
4.26will assist in restoration of such impaired
4.27waters.
4.28$2,324,000 the first year and $2,324,000
4.29the second year are for grants to delegated
4.30counties to administer the county feedlot
4.31program. The commissioner, in consultation
4.32with the Minnesota Association of County
4.33Feedlot Officers executive team, may use up
4.34to five percent of the annual appropriation
4.35for initiatives to enhance existing delegated
4.36county feedlot programs, information and
5.1education, or technical assistance to reduce
5.2feedlot-related pollution hazards. Any
5.3unexpended balance in the first year does not
5.4cancel but is available in the second year.
5.5$335,000 the first year and $335,000 the
5.6second year are for community technical
5.7assistance and education, including grants
5.8and technical assistance to communities for
5.9local and basinwide water quality protection.
5.10$405,000 the first year and $405,000 the
5.11second year are for individual sewage
5.12treatment system (ISTS) administration and
5.13grants. Of this amount, $86,000 each year
5.14is for assistance to counties through grants
5.15for ISTS program administration. Any
5.16unexpended balance in the first year does not
5.17cancel but is available in the second year.
5.18$480,000 the first year and $480,000 the
5.19second year are from the environmental
5.20fund to address the need for continued
5.21increased activity in the areas of new
5.22technology review, technical assistance
5.23for local governments, and enforcement
5.24under Minnesota Statutes, sections 115.55
5.25to 115.58, and to complete the requirements
5.26of Laws 2003, chapter 128, article 1, section
5.27165. Of this amount, $48,000 each year is for
5.28administration of individual septic tank fees.
5.29$375,000 the first year and $375,000 the
5.30second year are to monitor and analyze
5.31endocrine disruptors in surface waters in at
5.32least 20 additional sites. The data must be
5.33placed on the agency's Web site.
5.34$15,317,000 the first year and $15,317,000
5.35the second year are to implement the
6.1requirements of Minnesota Statutes, chapter
6.2114D. Of this amount, $6,317,000 each
6.3year is for completion of ten percent of the
6.4needed statewide assessments of surface
6.5water quality and trends and $9,000,000
6.6each year is to develop TMDL's and TMDL
6.7implementation plans for waters listed on
6.8the United States Environmental Protection
6.9Agency approved impaired waters list. The
6.10agency shall complete an average of ten
6.11percent of the TMDL's each year over the
6.12next ten years.
6.13$690,000 the first year and $690,000 the
6.14second year are from the environmental fund
6.15to provide regulatory services to the ethanol,
6.16mining, and other developing economic
6.17sectors. This is a onetime appropriation.
6.18$88,000 the first year is for the endocrine
6.19disruptors report required to be completed
6.20under article 2.
6.21$550,000 is appropriated in fiscal year
6.222008 from the remediation fund to the
6.23commissioner of the Pollution Control
6.24Agency for transfer to the commissioner
6.25of health to conduct an evaluation of point
6.26of use water treatment units at removing
6.27perfluorooctanoic acid, perfluorooctane
6.28sulfonate, and perfluorobutanoic acid from
6.29known concentrations of these compounds
6.30in drinking water. The evaluation shall be
6.31completed by December 31, 2007, and the
6.32commissioner of health may contract for
6.33services to complete the evaluation.
6.34By January 15, 2008, the commissioner shall
6.35amend agency rules and, where legislative
7.1action is necessary, provide recommendations
7.2to the house of representatives and senate
7.3divisions on environmental finance on
7.4water and air fee changes that will result in
7.5revenue to the environmental fund to pay for
7.6regulatory services to the ethanol, mining,
7.7and other developing economic sectors.
7.8Notwithstanding Minnesota Statutes, section
7.916A.28, the appropriations encumbered
7.10under contract on or before June 30, 2009,
7.11for clean water partnership, individual
7.12sewage treatment systems (ISTS), Minnesota
7.13River, total maximum daily loads (TMDL's),
7.14stormwater contracts or grants, and local and
7.15basinwide water quality protection contracts
7.16or grants in this subdivision are available
7.17until June 30, 2011.
7.18
Subd. 3.Air
10,623,000
10,890,000
7.19
Appropriations by Fund
7.20
Environmental
10,623,000
10,890,000
7.21Up to $150,000 the first year and $150,000
7.22the second year may be transferred from the
7.23environmental fund to the small business
7.24environmental improvement loan account
7.25established in Minnesota Statutes, section
7.26116.993.
7.27$200,000 the first year and $200,000 the
7.28second year are from the environmental fund
7.29for a monitoring program under Minnesota
7.30Statutes, section 116.454.
7.31$125,000 the first year and $125,000 the
7.32second year are from the environmental fund
7.33for monitoring ambient air for hazardous
7.34pollutants in the metropolitan area.
8.1$760,000 the first year and $760,000 the
8.2second year are from the environmental fund
8.3to provide regulatory services to the ethanol,
8.4mining, and other developing economic
8.5sectors. This is a onetime appropriation.
8.6
Subd. 4.Land
18,081,000
18,151,000
8.7
Appropriations by Fund
8.8
Environmental
7,065,000
7,065,000
8.9
Remediation
11,016,000
11,086,000
8.10All money for environmental response,
8.11compensation, and compliance in the
8.12remediation fund not otherwise appropriated
8.13is appropriated to the commissioners of the
8.14Pollution Control Agency and agriculture
8.15for purposes of Minnesota Statutes, section
8.16115B.20, subdivision 2, clauses (1), (2),
8.17(3), (6), and (7). At the beginning of each
8.18fiscal year, the two commissioners shall
8.19jointly submit an annual spending plan
8.20to the commissioner of finance and the
8.21house and senate chairs of environment and
8.22natural resources finance that maximizes the
8.23utilization of resources and appropriately
8.24allocates the money between the two
8.25departments. This appropriation is available
8.26until June 30, 2009.
8.27$3,616,000 the first year and $3,616,000
8.28the second year are transferred from the
8.29petroleum tank fund to the remediation fund
8.30for appropriation to the commissioner for
8.31purposes of the leaking underground storage
8.32tank program to protect the land.
8.33$252,000 the first year and $252,000 the
8.34second year are from the remediation fund to
8.35be transferred to the Department of Health
9.1for health assessments, drinking water
9.2advisories, and public information activities
9.3for areas contaminated by hazardous releases.
9.4
Subd. 5.Multimedia
4,879,000
4,911,000
9.5
Appropriations by Fund
9.6
General
2,288,000
2,320,000
9.7
Environmental
2,591,000
2,591,000
9.8$550,000 the first year and $550,000 the
9.9second year are from the environmental fund
9.10to provide regulatory services to the ethanol,
9.11mining, and other developing economic
9.12sectors. This is a onetime appropriation.
9.13Notwithstanding Minnesota Statutes, section
9.1416A.28, the appropriations encumbered
9.15under contract on or before June 30, 2009, for
9.16total maximum daily load (TMDL) contracts
9.17or grants are available until June 30, 2011.
9.18
Subd. 6.Environmental Assistance
22,142,000
22,142,000
9.19$14,000,000 each year is from the
9.20environmental fund for SCORE block grants
9.21to counties.
9.22Any unencumbered grant and loan balances
9.23in the first year do not cancel but are available
9.24for grants and loans in the second year.
9.25All money deposited in the environmental
9.26fund for the metropolitan solid waste landfill
9.27fee under Minnesota Statutes, section
9.28473.843, and not otherwise appropriated, is
9.29appropriated to the agency for the purposes
9.30of Minnesota Statutes, section 473.844.
9.31$119,000 the first year and $119,000 the
9.32second year are from the environmental
9.33fund for environmental assistance grants
10.1or loans under Minnesota Statutes, section
10.2115A.0716.
10.3$1,200,000 the first year and $1,200,000 the
10.4second year are from the environmental fund
10.5to retrofit school buses statewide, including
10.6buses for preschool children, and for loans to
10.7small trucking firms to install equipment to
10.8reduce fuel consumption. This is a onetime
10.9appropriation.
10.10Notwithstanding Minnesota Statutes, section
10.1116A.28, the appropriations encumbered
10.12under contract on or before June 30,
10.132009, for environmental assistance grants
10.14awarded under Minnesota Statutes, section
10.15115A.0716, and for technical and research
10.16assistance under Minnesota Statutes,
10.17section 115A.152, technical assistance
10.18under Minnesota Statutes, section 115A.52,
10.19and pollution prevention assistance under
10.20Minnesota Statutes, section 115D.04, are
10.21available until June 30, 2011.
10.22
Subd. 7.Administrative Support
1,618,000
1,647,000
10.23The commissioner may transfer money from
10.24the environmental fund to the remediation
10.25fund as necessary for the purposes of the
10.26remediation fund under Minnesota Statutes,
10.27section 116.155, subdivision 2.

10.28
Sec. 4. NATURAL RESOURCES
10.29
Subdivision 1.Total Appropriation
$
245,396,000
$
250,238,000
10.30
Appropriations by Fund
10.31
2008
2009
10.32
General
80,587,000
82,778,000
10.33
Natural Resources
74,436,000
75,128,000
10.34
Game and Fish
90,073,000
92,032,000
11.1
Remediation
100,000
100,000
11.2
Permanent School
200,000
200,000
11.3The amounts that may be spent for each
11.4purpose are specified in the following
11.5subdivisions.
11.6
11.7
Subd. 2.Land and Mineral Resources
Management
11,461,000
11,448,000
11.8
Appropriations by Fund
11.9
General
6,347,000
6,406,000
11.10
Natural Resources
3,551,000
3,447,000
11.11
Game and Fish
1,363,000
1,395,000
11.12
Permanent School
200,000
200,000
11.13$475,000 the first year and $475,000 the
11.14second year are for iron ore cooperative
11.15research. Of this amount, $200,000 each year
11.16is from the minerals management account in
11.17the natural resources fund and $275,000 each
11.18year is from the general fund. $237,500 the
11.19first year and $237,500 the second year are
11.20available only as matched by $1 of nonstate
11.21money for each $1 of state money. The
11.22match may be cash or in-kind.
11.23$86,000 the first year and $86,000 the
11.24second year are for minerals cooperative
11.25environmental research, of which $43,000
11.26the first year and $43,000 the second year are
11.27available only as matched by $1 of nonstate
11.28money for each $1 of state money. The
11.29match may be cash or in-kind.
11.30$2,800,000 the first year and $2,696,000
11.31the second year are from the minerals
11.32management account in the natural resources
11.33fund for use as provided in Minnesota
11.34Statutes, section 93.2236, paragraph (c).
12.1$200,000 the first year and $200,000 the
12.2second year are from the state forest suspense
12.3account in the permanent school fund to
12.4accelerate land exchanges, land sales, and
12.5commercial leasing of school trust lands and
12.6to identify, evaluate, and lease construction
12.7aggregate located on school trust lands. This
12.8appropriation is to be used for securing
12.9maximum long-term economic return
12.10from the school trust lands consistent with
12.11fiduciary responsibilities and sound natural
12.12resources conservation and management
12.13principles.
12.14$15,000 the first year is for a report
12.15by February 1, 2008, to the house and
12.16senate committees with jurisdiction over
12.17environment and natural resources on
12.18proposed minimum legal and conservation
12.19standards that could be applied to
12.20conservation easements acquired with public
12.21money.
12.22$701,000 the first year and $701,000 the
12.23second year are to support the land records
12.24management system. Of this amount,
12.25$326,000 the first year and $326,000 the
12.26second year are from the game and fish fund
12.27and $375,000 the first year and $375,000 the
12.28second year are from the natural resources
12.29fund.
12.30
Subd. 3.Water Resources Management
12,931,000
13,116,000
12.31
Appropriations by Fund
12.32
General
12,651,000
12,836,000
12.33
Natural Resources
280,000
280,000
12.34$310,000 the first year and $310,000 the
12.35second year are for grants for up to 50
13.1percent of the cost of implementing the Red
13.2River mediation agreement.
13.3$65,000 the first year and $65,000 the
13.4second year are for a grant to the Mississippi
13.5Headwaters Board for up to 50 percent of
13.6the cost of implementing the comprehensive
13.7plan for the upper Mississippi within areas
13.8under the board's jurisdiction.
13.9$5,000 the first year and $5,000 the second
13.10year are for payment to the Leech Lake Band
13.11of Chippewa Indians to implement the band's
13.12portion of the comprehensive plan for the
13.13upper Mississippi.
13.14$200,000 the first year and $200,000 the
13.15second year are for the construction of ring
13.16dikes under Minnesota Statutes, section
13.17103F.161. The ring dikes may be publicly
13.18or privately owned. Any unencumbered
13.19balance does not cancel at the end of the
13.20first year and is available for the second
13.21year. If the appropriation in the first year is
13.22insufficient, the appropriation for the second
13.23year is available in the first year.
13.24$1,280,000 the first year and $1,280,000 the
13.25second year are to support the identification
13.26of impaired waters and develop plans to
13.27address those impairments, as required by the
13.28federal Clean Water Act. This is a onetime
13.29appropriation.
13.30
Subd. 4.Forest Management
41,098,000
41,830,000
13.31
Appropriations by Fund
13.32
General
22,858,000
23,273,000
13.33
Natural Resources
17,983,000
18,293,000
13.34
Game and Fish
257,000
264,000
14.1$7,217,000 the first year and $7,217,000
14.2the second year are for prevention,
14.3presuppression, and suppression costs of
14.4emergency firefighting and other costs
14.5incurred under Minnesota Statutes, section
14.688.12. If the appropriation for either
14.7year is insufficient to cover all costs of
14.8presuppression and suppression, the amount
14.9necessary to pay for these costs during the
14.10biennium is appropriated from the general
14.11fund.
14.12By November 15 of each year, the
14.13commissioner of natural resources shall
14.14submit a report to the chairs of the house
14.15and senate committees and divisions having
14.16jurisdiction over environment and natural
14.17resources finance, identifying all firefighting
14.18costs incurred and reimbursements received
14.19in the prior fiscal year. These appropriations
14.20may not be transferred. Any reimbursement
14.21of firefighting expenditures made to the
14.22commissioner from any source other than
14.23federal mobilizations shall be deposited into
14.24the general fund.
14.25$17,983,000 the first year and $18,293,000
14.26the second year are from the forest
14.27management investment account in the
14.28natural resources fund for only the purposes
14.29specified in Minnesota Statutes, section
14.3089.039, subdivision 2.
14.31$780,000 the first year and $780,000 the
14.32second year are for the Forest Resources
14.33Council for implementation of the
14.34Sustainable Forest Resources Act.
15.1$350,000 the first year and $350,000 the
15.2second year are for the FORIST timber
15.3management information system, other
15.4information systems, and for increased
15.5forestry management. The amount in the
15.6second year is also available in the first year.
15.7$257,000 the first year and $264,000 the
15.8second year are from the game and fish
15.9fund to implement ecological classification
15.10systems (ECS) standards on forested
15.11landscapes. This appropriation is from
15.12revenue deposited in the game and fish fund
15.13under Minnesota Statutes, section 297A.94,
15.14paragraph (e), clause (1).
15.15$55,000 the first year and $55,000 the
15.16second year are to develop and implement
15.17a statewide information and education
15.18campaign regarding the proposed statewide
15.19ban on the transport, storage, or use of
15.20nonapproved firewood on state administered
15.21land.
15.22$75,000 the first year is to the Forest
15.23Resources Council for a task force on
15.24forest protection and $75,000 the second
15.25year is appropriated to the commissioner
15.26for grants to cities, counties, townships,
15.27special recreation areas, and park and
15.28recreation boards in cities of the first class
15.29for the identification, removal, disposal, and
15.30replacement of dead or dying shade trees
15.31lost to forest pests or disease. For purposes
15.32of this section, "shade tree" means a woody
15.33perennial grown primarily for aesthetic or
15.34environmental purposes with minimal to
15.35residual timber value. The commissioner
16.1shall consult with municipalities; park and
16.2recreation boards in cities of the first class;
16.3nonprofit organizations; and other interested
16.4parties in developing eligibility criteria.
16.5
Subd. 5.Parks and Recreation Management
35,141,000
35,959,000
16.6
Appropriations by Fund
16.7
General
20,560,000
20,923,000
16.8
Natural Resources
14,581,000
15,036,000
16.9$640,000 the first year and $640,000 the
16.10second year are from the water recreation
16.11account in the natural resources fund for state
16.12park water access projects.
16.13$3,996,000 the first year and $3,996,000 the
16.14second year are from the natural resources
16.15fund for state park and recreation area
16.16operations. This appropriation is from the
16.17revenue deposited in the natural resources
16.18fund under Minnesota Statutes, section
16.19297A.94, paragraph (e), clause (2).
16.20$5,000 each year is for payment of expenses
16.21of the Cuyuna Country State Recreation Area
16.22Citizens Advisory Council.
16.23The appropriation in Laws 2003, chapter
16.24128, article 1, section 5, subdivision 6, from
16.25the water recreation account in the natural
16.26resources fund for a cooperative project with
16.27the United States Army Corps of Engineers
16.28to develop the Mississippi Whitewater Park
16.29is available until June 30, 2009.
16.30
Subd. 6.Trails and Waterways Management
29,727,000
29,822,000
16.31
Appropriations by Fund
16.32
General
2,528,000
2,548,000
16.33
Natural Resources
25,080,000
25,080,000
16.34
Game and Fish
2,119,000
2,194,000
17.1$8,424,000 the first year and $8,424,000
17.2the second year are from the snowmobile
17.3trails and enforcement account in the natural
17.4resources fund for snowmobile grants-in-aid.
17.5The additional money under this paragraph
17.6may be used for new grant-in-aid trails. Any
17.7unencumbered balance does not cancel at the
17.8end of the first year and is available for the
17.9second year.
17.10$925,000 the first year and $825,000 the
17.11second year are from the natural resources
17.12fund for off-highway vehicle grants-in-aid.
17.13Of this amount, $575,000 the first year
17.14and $575,000 the second year are from the
17.15all-terrain vehicle account; $150,000 each
17.16year is from the off-highway motorcycle
17.17account; and $200,000 the first year and
17.18$100,000 the second year are from the
17.19off-road vehicle account. Any unencumbered
17.20balance does not cancel at the end of the first
17.21year and is available for the second year.
17.22$261,000 the first year and $261,000 the
17.23second year are from the water recreation
17.24account in the natural resources fund for a
17.25safe harbor program on Lake Superior.
17.26$742,000 the first year and $760,000
17.27the second year are from the natural
17.28resources fund for state trail operations
17.29and maintenance. The money may be used
17.30for trail maintenance, signage, mapping,
17.31interpretation, native prairie restoration
17.32using best management practices, and
17.33maintenance of nonmotorized forest trails.
17.34This appropriation is from the revenue
17.35deposited in the natural resources fund
18.1under Minnesota Statutes, section 297A.94,
18.2paragraph (e), clause (2).
18.3$32,000 the first year and $107,000 the
18.4second year are from the game and fish fund
18.5and is added to the base for expenditures
18.6on water access sites according to the
18.7requirements of the federal sport and fish
18.8restoration program.
18.9Money appropriated under Laws 2005, First
18.10Special Session chapter 1, article 2, section
18.1111, subdivision 6, paragraph (h), for the Paul
18.12Bunyan State Trail connection is available
18.13until June 30, 2008.
18.14
Subd. 7.Fish and Wildlife Management
67,072,000
68,394,000
18.15
Appropriations by Fund
18.16
General
3,255,000
3,255,000
18.17
Natural Resources
1,876,000
1,876,000
18.18
Game and Fish
61,941,000
63,263,000
18.19$410,000 the first year and $418,000 the
18.20second year are for resource population
18.21surveys in the 1837 treaty area. Of this
18.22amount, $274,000 the first year and $288,000
18.23the second year are from the game and fish
18.24fund.
18.25$8,061,000 the first year and $8,167,000
18.26the second year are from the heritage
18.27enhancement account in the game and
18.28fish fund for only the purposes specified
18.29in Minnesota Statutes, section 297A.94,
18.30paragraph (e), clause (1). Of this amount,
18.31$1,175,000 the first year and $1,175,000 the
18.32second year are for preserving, restoring, and
18.33enhancing grassland/wetland complexes on
18.34public lands.
19.1Notwithstanding Minnesota Statutes, section
19.284.943, $13,000 the first year and $13,000
19.3the second year from the critical habitat
19.4private sector matching account may be used
19.5to publicize the critical habitat license plate
19.6match program.
19.7$8,000 the first year and $8,000 the second
19.8year are appropriated from the game and
19.9fish fund for transfer to the wild turkey
19.10management account for purposes specified
19.11in Minnesota Statutes, section 97A.075,
19.12subdivision 5.
19.13$108,000 the first year and $108,000 the
19.14second year are from the game and fish
19.15fund for costs associated with administering
19.16fishing contest permits.
19.17$182,000 the first year and $132,000 the
19.18second year are to accelerate wildlife health
19.19programs and to prevent the spread of
19.20disease from livestock and poultry to the
19.21wildlife population. $50,000 in the first
19.22year is for fencing cattle-feeding areas in
19.23bovine tuberculosis control zones, under the
19.24emergency deterrent materials assistance
19.25program in Minnesota Statutes, section
19.2697A.028, subdivision 3. This appropriation
19.27is available until June 30, 2009. $66,000 of
19.28this amount is permanent.
19.29$575,000 the first year and $575,000 the
19.30second year are for preserving, restoring, and
19.31enhancing grassland/wetland complexes on
19.32public lands.
19.33$150,000 the first year and $150,000 the
19.34second year are from the game and fish fund
19.35to expand the roadsides for wildlife program.
20.1$175,000 the first year and $175,000 the
20.2second year are appropriated from the game
20.3and fish fund to the commissioner of natural
20.4resources for grants to Let's Go Fishing
20.5of Minnesota to promote opportunities
20.6for fishing. The grants must be matched
20.7equally with cash or in-kind contributions
20.8from nonstate sources. This is a onetime
20.9appropriation.
20.10Notwithstanding Minnesota Statutes, section
20.1116A.28, the appropriations encumbered
20.12under contract on or before June 30, 2009, for
20.13aquatic restoration grants and wildlife habitat
20.14grants are available until June 30, 2010.
20.15
Subd. 8.Ecological Services
14,201,000
15,404,000
20.16
Appropriations by Fund
20.17
General
6,831,000
7,934,000
20.18
Natural Resources
3,488,000
3,519,000
20.19
Game and Fish
3,882,000
3,951,000
20.20$1,192,000 the first year and $1,223,000 the
20.21second year are from the nongame wildlife
20.22management account in the natural resources
20.23fund for the purpose of nongame wildlife
20.24management. Notwithstanding Minnesota
20.25Statutes, section 290.431, $100,000 the first
20.26year and $100,000 the second year may be
20.27used for nongame information, education,
20.28and promotion.
20.29$1,612,000 the first year and $1,636,000
20.30the second year are from the heritage
20.31enhancement account in the game and
20.32fish fund for only the purposes specified
20.33in Minnesota Statutes, section 297A.94,
20.34paragraph (e), clause (1), on public lands.
21.1$2,765,000 in the first year and $3,985,000
21.2in the second year, of which $1,795,000 the
21.3first year and $1,795,000 the second year
21.4are from the invasive species account in the
21.5natural resources fund for law enforcement
21.6and water access inspection to prevent the
21.7spread of invasive species, grants to manage
21.8invasive plants in public waters, technical
21.9assistance to grant applicants for improving
21.10lake quality, and management of terrestrial
21.11invasive species on state-administered lands.
21.12Priority shall be given to preventing the
21.13spread of aquatic invertebrates. Of this
21.14amount, $250,000 the first year and $250,000
21.15the second year are for a zebra mussel pilot
21.16program. This is a onetime appropriation.
21.17An applicant for a grant to manage invasive
21.18plants in public waters must have a workable
21.19plan for improving water quality and
21.20reducing the need for additional treatment.
21.21Grants may not be made for chemicals that
21.22are likely endocrine disruptors. A plan to
21.23prevent the introduction of asian carp into
21.24Minnesota waters must be made available to
21.25the public by November 1, 2007.
21.26$125,000 the first year is to support a
21.27technical advisory committee and for land
21.28management units that manage grass lands
21.29in order to develop plans to optimize
21.30native prairie seed harvest and replanting
21.31on state-owned lands. The work must
21.32use best management practices with an
21.33outcome of ensuring the survival of the
21.34native prairie remaining in Minnesota and to
21.35estimate the value of the seeds. Maximizing
21.36seed harvest may include allowing seed
22.1producers to keep a portion of the seed as
22.2compensation for supplying equipment and
22.3labor. The Department of Natural Resources
22.4in cooperation with the Department of
22.5Agriculture and the Board of Water and
22.6Soil Resources shall establish the technical
22.7advisory committee which has the expertise
22.8to develop (1) criteria to identify public
22.9and private marginal lands which could be
22.10used to produce native prairie seeds of a
22.11local eco-type or restore native prairies that
22.12could be used to produce clean energy, (2)
22.13guidelines for production that ensure high
22.14carbon sequestration, protection of wildlife
22.15and waters, and minimization of inputs and
22.16that do not compromise the survival of the
22.17native prairie remaining in Minnesota, and
22.18(3) recommendations for incentives that will
22.19result in the production of native prairie seeds
22.20of a local eco-type or restore native prairies.
22.21In addition to agency members, the advisory
22.22committee shall have one member from
22.23each of two statewide farm organizations,
22.24one member from a statewide sustainable
22.25farmer organization, one member each from
22.26three statewide rural economic development
22.27organizations, one member each from three
22.28statewide environmental organizations, and
22.29one member each from three statewide
22.30wildlife or conservation organizations.
22.31No person registered as a lobbyist under
22.32Minnesota Statutes, section 10A.03, may
22.33serve on the technical advisory committee.
22.34The technical committee shall work with the
22.35NextGen Energy Board to develop a clean
22.36energy program. A report on outcomes from
23.1the technical committee is due December
23.215, 2007, to the legislative finance chairs on
23.3environment and natural resources.
23.4$50,000 in the first year is for the
23.5commissioner, in consultation with the
23.6Environmental Quality Board, to report to
23.7the house and senate committees having
23.8jurisdiction over environmental policy
23.9and finance by February 1, 2008, on the
23.10Mississippi River critical area program. The
23.11report shall include the status of critical
23.12area plans, zoning ordinances, the number
23.13and types of revisions anticipated, and the
23.14nature and number of variances sought. The
23.15report shall include recommendations that
23.16adequately protect and manage the aesthetic
23.17integrity and natural environment of the river
23.18corridor.
23.19$1,500,000 the first year and $1,500,000 the
23.20second year are to support the identification
23.21of impaired waters and develop plans to
23.22address those impairments, as required by the
23.23federal Clean Water Act. This is a onetime
23.24appropriation.
23.25
Subd. 9.Enforcement
29,971,000
30,490,000
23.26
Appropriations by Fund
23.27
General
3,336,000
3,392,000
23.28
Natural Resources
7,113,000
7,113,000
23.29
Game and Fish
19,422,000
19,885,000
23.30
Remediation
100,000
100,000
23.31$100,000 each year is for a conservation
23.32officer position to be stationed at Mississippi
23.33Headwaters State Forest to work with local
23.34jurisdictions in enforcing state law along
23.35the Mississippi River from Lake Itasca
24.1downstream to Lake Bemidji and in the
24.2Bemidji region.
24.3$1,082,000 the first year and $1,082,000 the
24.4second year are from the water recreation
24.5account in the natural resources fund for
24.6grants to counties for boat and water safety.
24.7$100,000 the first year and $100,000 the
24.8second year are from the remediation fund
24.9for solid waste enforcement activities under
24.10Minnesota Statutes, section 116.073.
24.11$315,000 the first year and $315,000 the
24.12second year are from the snowmobile
24.13trails and enforcement account in the
24.14natural resources fund for grants to local
24.15law enforcement agencies for snowmobile
24.16enforcement activities.
24.17$1,164,000 the first year and $1,164,000
24.18the second year are from the heritage
24.19enhancement account in the game and
24.20fish fund for only the purposes specified
24.21in Minnesota Statutes, section 297A.94,
24.22paragraph (e), clause (1).
24.23$225,000 the first year and $225,000
24.24the second year are from the natural
24.25resources fund for grants to county law
24.26enforcement agencies for off-highway
24.27vehicle enforcement and public education
24.28activities based on off-highway vehicle use
24.29in the county. Of this amount, $213,000 each
24.30year is from the all-terrain vehicle account,
24.31$11,000 each year is from the off-highway
24.32motorcycle account, and $1,000 each year
24.33is from the off-road vehicle account. The
24.34county enforcement agencies may use
24.35money received under this appropriation
25.1to make grants to other local enforcement
25.2agencies within the county that have a high
25.3concentration of off-highway vehicle use. Of
25.4this appropriation, $25,000 each year is for
25.5administration of these grants.
25.6$15,000 the first year and $5,000 the second
25.7year are from the off-road vehicle account
25.8in the natural resources fund to establish
25.9the off-road vehicle environment and safety
25.10education and training program under
25.11Minnesota Statutes, section 84.8015.
25.12Overtime must be distributed to conservation
25.13officers at historical levels; however, a
25.14reasonable reduction or addition may be
25.15made to the officer's allocation, if justified,
25.16based on an individual officer's workload. If
25.17funding for enforcement is reduced because
25.18of an unallotment, the overtime bank may be
25.19reduced in proportion to reductions made in
25.20other areas of the budget.
25.21
Subd. 10.Operations Support
3,794,000
3,775,000
25.22
Appropriations by Fund
25.23
General
2,221,000
2,211,000
25.24
Natural Resources
484,000
484,000
25.25
Game and Fish
1,089,000
1,080,000
25.26$38,000 in the first year is from the game and
25.27fish fund for the study on the natural stands
25.28of wild rice required in article 2.
25.29$270,000 the first year and $270,000 the
25.30second year are from the natural resources
25.31fund for grants to be divided equally between
25.32the city of St. Paul for the Como Zoo
25.33and Conservatory and the city of Duluth
25.34for the Duluth Zoo. This appropriation
25.35is from the revenue deposited to the fund
26.1under Minnesota Statutes, section 297A.94,
26.2paragraph (e), clause (5).
26.3$55,000 in the first year and $7,000 in the
26.4second year are to be transferred to the
26.5Environmental Quality Board to fulfill the
26.6requirement of Minnesota Statutes, sections
26.7116C.92 and 116C.94.

26.8
26.9
Sec. 5. BOARD OF WATER AND SOIL
RESOURCES
$
22,369,000
$
22,728,000
26.10$4,102,000 the first year and $4,102,000 the
26.11second year are for natural resources block
26.12grants to local governments. The board may
26.13reduce the amount of the natural resources
26.14block grant to a county by an amount equal to
26.15any reduction in the county's general services
26.16allocation to a soil and water conservation
26.17district from the county's previous year
26.18allocation when the board determines that
26.19the reduction was disproportionate. Grants
26.20must be matched with a combination of local
26.21cash or in-kind contributions. The base grant
26.22portion related to water planning must be
26.23matched by an amount that would be raised
26.24by a levy under Minnesota Statutes, section
26.25103B.3369.
26.26$3,566,000 the first year and $3,566,000
26.27the second year are for grants requested
26.28by soil and water conservation districts for
26.29general purposes, nonpoint engineering,
26.30and implementation of the reinvest in
26.31Minnesota conservation reserve program.
26.32Upon approval of the board, expenditures
26.33may be made from these appropriations for
26.34supplies and services benefiting soil and
26.35water conservation districts. Any district
27.1requesting a grant under this paragraph
27.2shall create and maintain a Web page that
27.3publishes, at a minimum, its annual plan,
27.4annual report, annual audit, and annual
27.5budget, including membership dues and
27.6meeting notices and minutes.
27.7$3,250,000 the first year and $3,250,000
27.8the second year are for grants to soil and
27.9water conservation districts for cost-sharing
27.10contracts for erosion control and water
27.11quality management. Of this amount, at least
27.12$1,200,000 the first year and $1,200,000 the
27.13second year are for grants for cost-sharing
27.14contracts to establish and maintain vegetation
27.15buffers of restored native prairie and restored
27.16prairie using seeds of a local ecotype region.
27.17$300,000 the first year and $300,000 the
27.18second year are available to begin county
27.19cooperative weed management programs
27.20on natural lands and private lands enrolled
27.21in state and federal conservation programs
27.22and to restore native plants in selected
27.23invasive species management sites by
27.24providing local native seeds and plants
27.25to landowners for implementation. This
27.26appropriation is available until expended. If
27.27the appropriation in either year is insufficient,
27.28the appropriation in the other year is available
27.29for it. Notwithstanding Minnesota Statutes,
27.30section 103C.501, any balance in the board's
27.31cost-share program that remains from the
27.32fiscal year 2007 appropriation is available
27.33in an amount up to $2,000 for a grant to
27.34the Faribault Soil and Water Conservation
27.35District to pay for erosion repair on the Blue
27.36Earth River, and up to $40,000 is available for
28.1grants to soil and water conservation districts
28.2for Web site development and reporting; and
28.3$100,000 in fiscal years 2008 and 2009 is
28.4for evaluating and reporting on performance,
28.5financial, and activity information of local
28.6water management entities as provided for in
28.7article 2, section 73.
28.8The board shall develop a forestry practice
28.9docket for cost-share money. The board shall
28.10develop standards or policies for cost-share
28.11practices for the following purposes: (1)
28.12establishment and maintenance of vegetated
28.13buffers of restored prairie or restored native
28.14prairie using seeds of a local ecotype;
28.15(2) establishment of cooperative weed
28.16management programs on private natural
28.17lands and lands enrolled in state and federal
28.18conservation programs and restoration of
28.19native plants in selected invasive species
28.20management sites by providing local native
28.21seeds and plants to landowners; and (3)
28.22establishment of soil and water conservation
28.23and ecological improvement practices on
28.24private forest lands.
28.25$100,000 the first year and $100,000 the
28.26second year are for a grant to the Red
28.27River Basin Commission to develop a Red
28.28River basin plan and to coordinate water
28.29management activities in the states and
28.30provinces bordering the Red River. The
28.31unencumbered balance in the first year does
28.32not cancel but is available for the second
28.33year.
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 17.4984, subdivision 1, is amended to read:
37.3    Subdivision 1. License required. (a) A person or entity may not operate an aquatic
37.4farm without first obtaining an aquatic farm license from the commissioner.
37.5    (b) Applications for an aquatic farm license must be made on forms provided by
37.6the commissioner.
37.7    (c) Licenses are valid for five years and are transferable upon notification to the
37.8commissioner.
37.9    (d) The commissioner shall issue an aquatic farm license on payment of the required
37.10license fee under section 17.4988.
37.11    (e) A license issued by the commissioner is not a determination of private property
37.12rights, but is only based on a determination that the licensee does not have a significant
37.13detrimental impact on the public resource.
37.14    (f) The commissioner shall not issue a new license to farm minnows in a natural
37.15water body if the natural water body is the subject of a protective easement or other
37.16interest in land that was acquired with funding from federal waterfowl stamp proceeds
37.17or migratory waterfowl stamp proceeds under section 97A.075, subdivision 2, or if the
37.18natural water body was the subject of any other development, restoration, maintenance, or
37.19preservation project funded under section 97A.075, subdivision 2.
37.20EFFECTIVE DATE.This section is effective July 1, 2008.

37.21    Sec. 6. Minnesota Statutes 2006, section 18G.03, is amended by adding a subdivision
37.22to read:
37.23    Subd. 5. Certain species not subject to chapter 18G. This chapter does not apply
37.24to exotic aquatic plants and wild animal species regulated under chapter 84D.

37.25    Sec. 7. Minnesota Statutes 2006, section 18G.11, is amended to read:
37.2618G.11 COOPERATION WITH OTHER JURISDICTIONS.
37.27    Subdivision 1. Detection and control agreements. The commissioner may enter
37.28into cooperative agreements with organizations, persons, civic groups, governmental
37.29agencies, or other organizations to adopt and execute plans to detect and control areas
37.30infested or infected with harmful plant pests. The cooperative agreements may include
37.31provisions of joint funding of any control treatment.
38.1    If a harmful plant pest infestation or infection occurs and cannot be adequately
38.2controlled by individual persons, owners, tenants, or local units of government, the
38.3commissioner may conduct the necessary control measures independently or on a
38.4cooperative basis with federal or other units of government.
38.5    Subd. 2. New and emerging plant pest programs. The commissioner may make
38.6grants to municipalities or enter into contracts with municipalities, nurseries, colleges,
38.7universities, state or federal agencies in connection with new or emerging plant pests
38.8programs, including research, or any other organization with the legal authority to enter
38.9into contractual agreements.

38.10    Sec. 8. [84.02] DEFINITIONS.
38.11    Subdivision 1. Definitions. For purposes of this chapter, the terms defined in this
38.12section shall have the meanings given them.
38.13    Subd. 2. Best management practice for native prairie restoration. "Best
38.14management practice for native prairie restoration" means using seeds collected from a
38.15native prairie within the same county or within 25 miles of the county's border, but not
38.16across the boundary of an ecotype region.
38.17    Subd. 3. Created grassland. "Created grassland" means a restoration using seeds
38.18or plants with origins outside of the state of Minnesota.
38.19    Subd. 4. Ecotype region. "Ecotype region" means the following ecological
38.20subsections and counties based on the Department of Natural Resources map, "County
38.21Landscape Groupings Based on Ecological Subsections," dated February 15, 2007.
38.22
Ecotype Region
Counties or portions thereof:
38.23
38.24
38.25
Rochester Plateau, Blufflands, and Oak
Savanna
Houston, Winona, Fillmore, Wabasha,
Goodhue, Mower, Freeborn, Steele,
Olmsted, Rice, Waseca, Dakota, Dodge
38.26
38.27
38.28
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
38.29
38.30
Inner Coteau and Coteau Moraines
Lincoln, Lyon, Pipestone, Rock, Murray,
Nobles, Jackson, Cottonwood
38.31
Red River Prairie (South)
Traverse, Wilkin, Clay, Becker
38.32
38.33
38.34
Red River Prairie (North) and Aspen
Parklands
Kittson, Roseau, Red Lake, Pennington,
Marshall, Clearwater, Mahnomen, Polk,
Norman
38.35
38.36
38.37
Minnesota River Prairie (North)
Big Stone, Pope, Stevens, Grant, Swift,
Chippewa, Meeker, Kandiyohi, Renville,
Lac qui Parle, Yellow Medicine
39.1
39.2
Minnesota River Prairie (South)
Nicollet, Redwood, Brown, Watonwan,
Martin, Faribault, Blue Earth, Sibley
39.3
39.4
Hardwood Hills
Douglas, Morrison, Otter Tail, Stearns,
Todd
39.5    Subd. 5. Native prairie. "Native prairie" means land that has never been plowed
39.6where native prairie vegetation originating from the site currently predominates or, if
39.7disturbed, is predominantly covered with native prairie vegetation that originated from the
39.8site. Unbroken pasture land used for livestock grazing can be considered native prairie if it
39.9has predominantly native vegetation originating from the site and conservation practices
39.10have maintained biological diversity.
39.11    Subd. 6. Native prairie species of a local ecotype. "Native prairie species of a local
39.12ecotype" means a genetically differentiated population of a species that has at least one
39.13trait (morphological, biochemical, fitness, or phenological) that is evolutionarily adapted
39.14to local environmental conditions, notably plant competitors, pathogens, pollinators, soil
39.15microorganisms, growing season length, climate, hydrology, and soil.
39.16    Subd. 7. Restored native prairie. "Restored native prairie" means a restoration
39.17using at least 25 representative and biologically diverse native prairie plant species of a
39.18local ecotype originating in the same county as the restoration site or within 25 miles of
39.19the county's border, but not across the boundary of an ecotype region.
39.20    Subd. 8. Restored prairie. "Restored prairie" means a restoration using at least
39.2125 representative and biologically diverse native prairie plant species originating from
39.22the same ecotype region in which the restoration occurs.

39.23    Sec. 9. Minnesota Statutes 2006, section 84.025, subdivision 9, is amended to read:
39.24    Subd. 9. Professional services support account. The commissioner of natural
39.25resources may bill the various programs carried out by the commissioner for the costs of
39.26providing them with professional support services. Except as provided under section
39.2789.421, receipts must be credited to a special account in the state treasury and are
39.28appropriated to the commissioner to pay the costs for which the billings were made.
39.29    The commissioner of natural resources shall submit to the commissioner of finance
39.30before the start of each fiscal year a work plan showing the estimated work to be done
39.31during the coming year, the estimated cost of doing the work, and the positions and fees
39.32that will be necessary. This account is exempted from statewide and agency indirect
39.33cost payments.

39.34    Sec. 10. Minnesota Statutes 2006, section 84.026, subdivision 1, is amended to read:
40.1    Subdivision 1. Contracts. The commissioner of natural resources is authorized
40.2to enter into contractual agreements with any public or private entity for the provision
40.3of statutorily prescribed natural resources services by the department. The contracts
40.4shall specify the services to be provided. Except as provided under section 89.421, funds
40.5generated in a contractual agreement made pursuant to this section shall be deposited in
40.6the special revenue fund and are appropriated to the department for purposes of providing
40.7the services specified in the contracts. The commissioner shall report revenues collected
40.8and expenditures made under this subdivision to the chairs of the Committees on Ways and
40.9Means in the house and Finance in the senate by January 1 of each odd-numbered year.

40.10    Sec. 11. Minnesota Statutes 2006, section 84.0272, is amended by adding a subdivision
40.11to read:
40.12    Subd. 5. Easement information. Parties to an easement purchased under the
40.13authority of the commissioner must:
40.14    (1) specify in the easement all provisions that are perpetual in nature;
40.15    (2) file the easement with the county recorder or registrar of titles in the county
40.16in which the land is located; and
40.17    (3) submit an electronic copy of the easement to the commissioner.

40.18    Sec. 12. Minnesota Statutes 2006, section 84.0855, subdivision 1, is amended to read:
40.19    Subdivision 1. Sales authorized; gift certificates. The commissioner may
40.20sell natural resources-related publications and maps; forest resource assessment
40.21products; federal migratory waterfowl, junior duck, and other federal stamps; and other
40.22nature-related merchandise, and may rent or sell items for the convenience of persons using
40.23Department of Natural Resources facilities or services. The commissioner may sell gift
40.24certificates for any items rented or sold. Notwithstanding section 16A.1285, a fee charged
40.25by the commissioner under this section may include a reasonable amount in excess of the
40.26actual cost to support Department of Natural Resources programs. The commissioner may
40.27advertise the availability of a program or item offered under this section.

40.28    Sec. 13. Minnesota Statutes 2006, section 84.0855, subdivision 2, is amended to read:
40.29    Subd. 2. Receipts; appropriation. Except as provided under section 89.421,
40.30money received by the commissioner under this section or to buy supplies for the use of
40.31volunteers, may be credited to one or more special accounts in the state treasury and is
40.32appropriated to the commissioner for the purposes for which the money was received.
40.33Money received from sales at the state fair shall be available for state fair related costs.
41.1Money received from sales of intellectual property and software products or services shall
41.2be available for development, maintenance, and support of software products and systems.

41.3    Sec. 14. Minnesota Statutes 2006, section 84.780, is amended to read:
41.484.780 OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.
41.5    (a) The off-highway vehicle damage account is created in the natural resources fund.
41.6Money in the off-highway vehicle damage account is appropriated to the commissioner
41.7of natural resources for the repair or restoration of property damaged by the operation of
41.8off-highway vehicles in an unpermitted illegal area after August 1, 2003, and for the costs
41.9of administration for this section. Before the commissioner may make a payment from
41.10this account, the commissioner must determine whether the damage to the property was
41.11caused by the unpermitted illegal use of off-highway vehicles, that the applicant has made
41.12reasonable efforts to identify the responsible individual and obtain payment from the
41.13individual, and that the applicant has made reasonable efforts to prevent reoccurrence.
41.14By June 30, 2008, the commissioner of finance must transfer the remaining balance in the
41.15account to the off-highway motorcycle account under section 84.794, the off-road vehicle
41.16account under section 84.803, and the all-terrain vehicle account under section 84.927.
41.17The amount transferred to each account must be proportionate to the amounts received in
41.18the damage account from the relevant off-highway vehicle accounts.
41.19    (b) Determinations of the commissioner under this section may be made by written
41.20order and are exempt from the rulemaking provisions of chapter 14. Section 14.386
41.21does not apply.
41.22    (c) This section expires July 1, 2008 These funds are available until expended.

41.23    Sec. 15. [84.8045] RESTRICTIONS ON OFF-ROAD VEHICLE TRAILS.
41.24    Notwithstanding any provision of sections 84.797 to 84.805 or other law to the
41.25contrary, the commissioner shall not permit land administered by the commissioner in
41.26Beltrami, Cass, Crow Wing, and Hubbard Counties to be used or developed for trails
41.27primarily for off-road vehicles as defined in section 84.797, subdivision 7, except:
41.28    (1) upon approval by the legislature; or
41.29    (2) in designated off-road vehicle use areas.
41.30EFFECTIVE DATE.This section is effective the day following final enactment.

41.31    Sec. 16. [84.9011] OFF-HIGHWAY VEHICLE SAFETY AND CONSERVATION
41.32PROGRAM.
42.1    Subdivision 1. Creation. The commissioner of natural resources shall establish
42.2a program to promote the safe and responsible operation of off-highway vehicles in a
42.3manner that does not harm the environment. The commissioner shall coordinate the
42.4program through the regional offices of the Department of Natural Resources.
42.5    Subd. 2. Purpose. The purpose of the program is to encourage off-highway vehicle
42.6clubs to assist, on a volunteer basis, in improving, maintaining, and monitoring of trails on
42.7state forest land and other public lands.
42.8    Subd. 3. Agreements. (a) The commissioner shall enter into informal agreements
42.9with off-highway vehicle clubs for volunteer services to maintain, make improvements to,
42.10and monitor trails on state forest land and other public lands. The off-highway vehicle
42.11clubs shall promote the operation of off-highway vehicles in a safe and responsible manner
42.12that complies with the laws and rules that relate to the operation of off-highway vehicles.
42.13    (b) The off-highway vehicle clubs may provide assistance to the department in
42.14locating, recruiting, and training instructors for off-highway vehicle training programs.
42.15    (c) The commissioner may provide assistance to enhance the comfort and safety
42.16of volunteers and to facilitate the implementation and administration of the safety and
42.17conservation program.
42.18    Subd. 4. Worker displacement prohibited. The commissioner may not enter into
42.19any agreement that has the purpose of or results in the displacement of public employees
42.20by volunteers participating in the off-highway safety and conservation program under
42.21this section. The commissioner must certify to the appropriate bargaining agent that the
42.22work performed by a volunteer will not result in the displacement of currently employed
42.23workers or workers on seasonal layoff or layoff from a substantially equivalent position,
42.24including partial displacement such as reduction in hours of nonovertime work, wages, or
42.25other employment benefits.

42.26    Sec. 17. Minnesota Statutes 2006, section 84.927, subdivision 2, is amended to read:
42.27    Subd. 2. Purposes. Subject to appropriation by the legislature, money in the
42.28all-terrain vehicle account may only be spent for:
42.29    (1) the education and training program under section 84.925;
42.30    (2) administration, enforcement, and implementation of sections 84.773 to 84.929;
42.31    (3) acquisition, maintenance, and development of vehicle trails and use areas;
42.32    (4) grant-in-aid programs to counties and municipalities to construct and maintain
42.33all-terrain vehicle trails and use areas;
42.34    (5) grants-in-aid to local safety programs; and
42.35    (6) enforcement and public education grants to local law enforcement agencies.; and
43.1    (7) maintenance of minimum-maintenance forest roads according to section 89.71,
43.2subdivision 5, and county forest roads within state forest boundaries as defined under
43.3section 89.021.
43.4    The distribution of funds made available through grant-in-aid programs must be
43.5guided by the statewide comprehensive outdoor recreation plan.

43.6    Sec. 18. Minnesota Statutes 2006, section 84.963, is amended to read:
43.784.963 PRAIRIE PLANT SEED PRODUCTION AREAS.
43.8    (a) The commissioner of natural resources shall study the feasibility of establishing
43.9private or public prairie plant seed production areas within prairie land locations. If
43.10prairie plant seed production is feasible, the commissioner may aid the establishment of
43.11production areas. The commissioner may enter cost-share or sharecrop agreements with
43.12landowners having easements for conservation purposes of ten or more years on their land
43.13to commercially produce prairie plant seed of Minnesota origin. The commissioner may
43.14only aid prairie plant seed production areas on agricultural land used to produce crops
43.15before December 23, 1985, and cropped three out of five years between 1981 and 1985.
43.16    (b) The commissioner shall compile, prepare, and electronically disseminate to
43.17the public prairie establishment guidance materials and resources. The resources must
43.18provide information and guidance on project planning, seed selection including ecotype
43.19and species mix, site preparation, seeding, maintenance, and technical service providers.
43.20The commissioner shall use actual prairie restoration projects under development on
43.21state-owned land to illustrate and demonstrate the practices described.

43.22    Sec. 19. Minnesota Statutes 2006, section 84D.02, is amended by adding a subdivision
43.23to read:
43.24    Subd. 7. Contracts for services for emergency invasive species prevention work;
43.25commissions to persons employed. The commissioner may contract for or accept the
43.26services of any persons whose aid is available, temporarily or otherwise, in emergency
43.27invasive species prevention work, either gratuitously or for compensation not in excess of
43.28the limits provided by law with respect to the employment of labor by the commissioner.
43.29The commissioner may issue a commission, or other written evidence of authority, to any
43.30person whose services are so arranged for and may thereby empower the person to act,
43.31temporarily or otherwise, in any other capacity, with powers and duties as may be specified
43.32in the commission or other written evidence of authority, but not in excess of the powers
43.33conferred by law. The commissioner of agriculture, under authority provided by law, shall
43.34cooperate with the commissioner in emergency control of invasive species prevention.

44.1    Sec. 20. Minnesota Statutes 2006, section 84D.13, subdivision 7, is amended to read:
44.2    Subd. 7. Satisfaction of civil penalties. A civil penalty is due and a watercraft
44.3license suspension is effective 30 days after issuance of the civil citation. A civil penalty
44.4collected under this section is payable to the commissioner and must be credited to the
44.5water recreation account invasive species account.

44.6    Sec. 21. Minnesota Statutes 2006, section 84D.14, is amended to read:
44.784D.14 EXEMPTIONS.
44.8    This chapter does not apply to:
44.9    (1) pathogens and terrestrial arthropods regulated under sections 18G.01 to 18G.16
44.1018G.15
; or
44.11    (2) mammals and birds defined by statute as livestock.

44.12    Sec. 22. [84D.15] INVASIVE SPECIES ACCOUNT.
44.13    Subdivision 1. Creation. The invasive species account is created in the state
44.14treasury in the natural resources fund.
44.15    Subd. 2. Receipts. Money received from surcharges on watercraft licenses under
44.16section 86B.415, subdivision 7, and civil penalties under section 84D.13 shall be deposited
44.17in the invasive species account. Each year, the commissioner of finance shall transfer from
44.18the game and fish fund to the invasive species account, the annual surcharge collected on
44.19nonresident fishing licenses under section 97A.475, subdivision 7, paragraph (b).
44.20    Subd. 3. Use of money in account. Money credited to the invasive species account
44.21in subdivision 2 shall be used for management of invasive species and implementation of
44.22this chapter as it pertains to invasive species, including control, public awareness, law
44.23enforcement, assessment and monitoring, management planning, and research.

44.24    Sec. 23. Minnesota Statutes 2006, section 85.013, is amended by adding a subdivision
44.25to read:
44.26    Subd. 11b. Greenleaf Lake State Recreation Area, which is hereby renamed from
44.27Greenleaf Lake State Park.

44.28    Sec. 24. [85.0146] CUYUNA COUNTRY STATE RECREATION AREA;
44.29CITIZENS ADVISORY COUNCIL.
44.30    Subdivision 1. Advisory council created. The Cuyuna Country State Recreation
44.31Area Citizens Advisory Council is established. Membership on the advisory council
44.32shall include:
45.1    (1) a representative of the Cuyuna Range Mineland Recreation Area Joint Powers
45.2Board;
45.3    (2) a representative of the Croft Mine Historical Park Joint Powers Board;
45.4    (3) a designee of the Cuyuna Range Mineland Reclamation Committee who has
45.5worked as a miner in the local area;
45.6    (4) a representative of the Crow Wing County Board;
45.7    (5) an elected state official;
45.8    (6) a representative of the Grand Rapids regional office of the Department of Natural
45.9Resources;
45.10    (7) a designee of the Iron Range Resources and Rehabilitation Board;
45.11    (8) a designee of the local business community selected by the area chambers of
45.12commerce;
45.13    (9) a designee of the local environmental community selected by the Crow Wing
45.14County District 5 commissioner;
45.15    (10) a designee of a local education organization selected by the Crosby-Ironton
45.16School Board;
45.17    (11) a designee of one of the recreation area user groups selected by the Cuyuna
45.18Range Chamber of Commerce; and
45.19    (12) a member of the Cuyuna Country Heritage Preservation Society.
45.20    Subd. 2. Administration. (a) The advisory council must meet at least four times
45.21annually. The council shall elect a chair and meetings shall be at the call of the chair.
45.22    (b) Members of the advisory council shall serve as volunteers for two-year terms
45.23with the ability to be reappointed. Members shall accept no per diem.
45.24    (c) The state recreation area manager may attend the council meetings and advise
45.25the council of issues in management of the recreation area.
45.26    (d) Before a major decision is implemented in the Cuyuna Country State Recreation
45.27Area, the area manager must consult with the council and take into consideration any
45.28council comments or advice that may impact the major decision.

45.29    Sec. 25. Minnesota Statutes 2006, section 85.054, subdivision 12, is amended to read:
45.30    Subd. 12. Soudan Underground Mine State Park. A state park permit is not
45.31required and a fee may not be charged for motor vehicle entry or, parking at the visitor
45.32parking area of Soudan Underground Mine State Park, or for tours of the High Energy
45.33Physics Lab by supervised kindergarten through grade 12 school classes during the school
45.34year.

46.1    Sec. 26. Minnesota Statutes 2006, section 85.054, is amended by adding a subdivision
46.2to read:
46.3    Subd. 13. Cuyuna Country State Recreation Area. A state park permit is not
46.4required and a fee may not be charged for motor vehicle entry or parking at Croft Mine
46.5Historical Park and Portsmouth Mine Lake Overlook in Cuyuna Country State Recreation
46.6Area, except for overnight camping.

46.7    Sec. 27. Minnesota Statutes 2006, section 86B.706, subdivision 2, is amended to read:
46.8    Subd. 2. Money deposited in account. The following shall be deposited in the state
46.9treasury and credited to the water recreation account:
46.10    (1) fees and surcharges from titling and licensing of watercraft under this chapter;
46.11    (2) fines, installment payments, and forfeited bail according to section 86B.705,
46.12subdivision 2
;
46.13    (3) civil penalties according to section 84D.13;
46.14    (4) mooring fees and receipts from the sale of marine gas at state-operated or
46.15state-assisted small craft harbors and mooring facilities according to section 86A.21;
46.16    (5) (4) the unrefunded gasoline tax attributable to watercraft use under section
46.17296A.18 ; and
46.18    (6) (5) fees for permits issued to control or harvest aquatic plants other than wild
46.19rice under section 103G.615, subdivision 2.

46.20    Sec. 28. Minnesota Statutes 2006, section 88.01, is amended by adding a subdivision
46.21to read:
46.22    Subd. 27. Community forest. "Community forest" means public and private trees
46.23and associated plants occurring individually, in small groups, or under forest conditions
46.24within a municipality.

46.25    Sec. 29. Minnesota Statutes 2006, section 88.79, subdivision 1, is amended to read:
46.26    Subdivision 1. Employment of competent foresters; service to private owners.
46.27    The commissioner of natural resources may employ competent foresters to furnish owners
46.28of forest lands within the state of Minnesota who own not more than 1,000 acres of forest
46.29land, forest management services consisting of:
46.30    (1) advice in management and protection of timber, including written stewardship
46.31and forest management plans;
46.32    (2) selection and marking of timber to be cut;
46.33    (3) measurement of products;
47.1    (4) aid in marketing harvested products;
47.2    (5) provision of tree-planting equipment; and
47.3    (6) advice in community forest management; and
47.4    (7) such other services as the commissioner of natural resources deems necessary
47.5or advisable to promote maximum sustained yield of timber and other benefits upon
47.6such forest lands.

47.7    Sec. 30. Minnesota Statutes 2006, section 88.79, subdivision 2, is amended to read:
47.8    Subd. 2. Charge for service; receipts to special revenue fund. The commissioner
47.9of natural resources may charge the owner receiving such services such sums as the
47.10commissioner shall determine to be fair and reasonable. The charges must account for
47.11differences in the value of timber and other benefits. The receipts from such services shall
47.12be credited to the special revenue fund and are annually appropriated to the commissioner
47.13for the purposes specified in subdivision 1.

47.14    Sec. 31. Minnesota Statutes 2006, section 88.82, is amended to read:
47.1588.82 MINNESOTA RELEAF PROGRAM.
47.16    The Minnesota releaf program is established in the Department of Natural Resources
47.17to encourage, promote, and fund the inventory, planting, assessment, maintenance, and
47.18improvement, protection, and restoration of trees and forest resources in this state to
47.19enhance community forest ecosystem health and sustainability as well as to reduce
47.20atmospheric carbon dioxide levels and promote energy conservation.

47.21    Sec. 32. Minnesota Statutes 2006, section 89.001, subdivision 8, is amended to read:
47.22    Subd. 8. Forest resources. "Forest resources" means those natural assets of forest
47.23lands, including timber and other forest crops; biological diversity; recreation; fish and
47.24wildlife habitat; wilderness; rare and distinctive flora and fauna; air; water; soil; climate;
47.25and educational, aesthetic, and historic values.

47.26    Sec. 33. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision
47.27to read:
47.28    Subd. 15. Forest pest. "Forest pest" means any vertebrate or invertebrate animal,
47.29plant pathogen, or plant that is determined by the commissioner to be harmful, injurious,
47.30or destructive to forests or timber.

48.1    Sec. 34. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision
48.2to read:
48.3    Subd. 16. Shade tree pest. "Shade tree pest" means any vertebrate or invertebrate
48.4animal, plant pathogen, or plant that is determined by the commissioner to be harmful,
48.5injurious, or destructive to shade trees or community forests.

48.6    Sec. 35. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision
48.7to read:
48.8    Subd. 17. Community forest. "Community forest" has the meaning given under
48.9section 88.01, subdivision 27.

48.10    Sec. 36. Minnesota Statutes 2006, section 89.001, is amended by adding a subdivision
48.11to read:
48.12    Subd. 18. Shade tree. "Shade tree" means a woody perennial grown primarily
48.13for aesthetic or environmental purposes.

48.14    Sec. 37. Minnesota Statutes 2006, section 89.01, subdivision 1, is amended to read:
48.15    Subdivision 1. Best methods. The commissioner shall ascertain and observe the
48.16best methods of reforesting cutover and denuded lands, foresting waste lands, preventing
48.17destruction minimizing loss or damage of forests and lands forest resources by fire, forest
48.18pests, or shade tree pests, administering forests on forestry principles, encouraging private
48.19owners to preserve and grow trees or timber for commercial or other purposes, and
48.20conserving the forests around the head waters of streams and on the watersheds of the state.

48.21    Sec. 38. Minnesota Statutes 2006, section 89.01, subdivision 2, is amended to read:
48.22    Subd. 2. General duties. The commissioner shall execute all rules pertaining
48.23to forestry and forest protection within the jurisdiction of the state; have charge of the
48.24work of protecting all forests and lands from fire, forest pests, and shade tree pests;
48.25shall investigate the origin of all forest fires; and prosecute all violators as provided by
48.26law; shall prepare and print for public distribution an abstract of the forest fire laws of
48.27Minnesota, together with such rules as may be formulated.
48.28    The commissioner shall prepare printed notices calling attention to the dangers from
48.29forest fires and cause them to be posted in conspicuous places.

48.30    Sec. 39. Minnesota Statutes 2006, section 89.01, subdivision 4, is amended to read:
49.1    Subd. 4. Forest plans. The commissioner shall cooperate with the several
49.2departments of the state and federal governments and with counties, towns, municipalities,
49.3corporations, or individuals in the preparation of plans for forest protection, and
49.4management, and planting or replacement of trees, in wood lots, and community forests
49.5or on timber tracts, using such influence as time will permit toward the establishment of
49.6scientific forestry principles in the management, protection, and promotion of the forest
49.7resources of the state.

49.8    Sec. 40. Minnesota Statutes 2006, section 89.22, subdivision 2, is amended to read:
49.9    Subd. 2. Receipts to natural resources special revenue fund. Fees collected under
49.10subdivision 1 shall be credited to a forest land use account in the natural resources fund
49.11the special revenue fund and are annually appropriated to the commissioner to recoup the
49.12costs of developing, operating, and maintaining facilities necessary for the specified uses
49.13in subdivision 1 or to prevent or mitigate resource impacts of those uses.
49.14EFFECTIVE DATE.This section is effective July 1, 2007, and applies to fees
49.15collected according to Minnesota Statutes, section 89.22, subdivision 1, after August
49.161, 2006.

49.17    Sec. 41. [89.421] FOREST RESOURCE ASSESSMENT PRODUCTS AND
49.18SERVICES ACCOUNT.
49.19    Subdivision 1. Creation. The forest resource assessment products and services
49.20account is created in the state treasury in the natural resources fund.
49.21    Subd. 2. Receipts. Money received from forest resource assessment product sales
49.22and services provided by the commissioner under sections 84.025, subdivision 9; 84.026;
49.23and 84.0855 shall be credited to the forest resource assessment products and services
49.24account. Forest resource assessment products and services include the sale of aerial
49.25photography, remote sensing, and satellite imagery products and services.
49.26    Subd. 3. Use of money in account. Money credited to the forest resource
49.27assessment products and services account under subdivision 2 is appropriated for fiscal
49.28years 2008 and 2009 to the commissioner and shall be used to maintain the staff and
49.29facilities producing the aerial photography, remote sensing, and satellite imagery products
49.30and services.

49.31    Sec. 42. Minnesota Statutes 2006, section 89.51, subdivision 1, is amended to read:
49.32    Subdivision 1. Applicability. For the purposes of sections 89.51 to 89.61 89.64 the
49.33terms described in this section have the meanings ascribed to them.

50.1    Sec. 43. Minnesota Statutes 2006, section 89.51, subdivision 6, is amended to read:
50.2    Subd. 6. Infestation. "Infestation," includes actual, potential, incipient, or
50.3emergency emergent infestation or infection by forest pests or shade tree pests.

50.4    Sec. 44. Minnesota Statutes 2006, section 89.51, subdivision 9, is amended to read:
50.5    Subd. 9. Forest land or forest. "Forest land" or "forest," means land on which
50.6occurs a stand or potential stand of trees valuable for timber products, watershed or
50.7wildlife protection, recreational uses, community forest benefits, or other purposes, and
50.8shall include lands owned or controlled by the state of Minnesota.

50.9    Sec. 45. Minnesota Statutes 2006, section 89.52, is amended to read:
50.1089.52 SURVEYS, INVESTIGATIONS.
50.11    The commissioner shall make surveys and investigations to determine the presence
50.12of infestations of forest pests or shade tree pests. For this purpose, duly designated
50.13representatives of the commissioner may enter at reasonable times on public and private
50.14lands for the purpose of conducting such to conduct the surveys and investigations.

50.15    Sec. 46. Minnesota Statutes 2006, section 89.53, is amended to read:
50.1689.53 CONTROL OF FOREST PESTS AND SHADE TREE PESTS.
50.17    Subdivision 1. Commissioner's duties; notice of control measures. Whenever the
50.18commissioner finds that an area in the state is infested or threatened to be infested with
50.19forest pests or shade tree pests, the commissioner shall determine whether measures of
50.20control are needed and are available, what control measures are to be applied, and the area
50.21over which the control measures shall be applied. The commissioner shall prescribe
50.22a proposed zone of infestation covering the area in which control measures are to be
50.23applied and shall publish notice of the proposal once a week, for two successive weeks
50.24in a newspaper having a general circulation in each county located in whole or in part
50.25in the proposed zone of infestation. Prescribing zones of infestation is and prescribing
50.26measures of control are exempt from the rulemaking provisions of chapter 14 and section
50.2714.386 does not apply.
50.28    Subd. 2. Notice requirements; public comment. The notice shall include a
50.29description of the boundaries of the proposed zone of infestation, the control measures
50.30to be applied, and a time and place where municipalities and owners of forest lands or
50.31shade trees in the zone may show cause orally or in writing why the zone and control
50.32measures should or should not be established. The commissioner shall consider any
51.1statements received in determining whether the zone shall be established and the control
51.2measures applied.
51.3    Subd. 3. Experimental programs. The commissioner may establish experimental
51.4programs for the control of forest pests or shade tree pests and for municipal reforestation.

51.5    Sec. 47. Minnesota Statutes 2006, section 89.54, is amended to read:
51.689.54 ZONES OF INFESTATION, ESTABLISHMENT.
51.7    Upon the decision by the commissioner that the establishment of a zone of
51.8infestation is necessary, the commissioner shall make a written order establishing said
51.9the zone, and upon making said the order, said the zone shall be established. Notice of the
51.10establishment of the zone shall thereupon be published in a newspaper having a general
51.11circulation in each county located in whole or in part in the proposed zone and posted on
51.12the Department of Natural Resources Web site.

51.13    Sec. 48. Minnesota Statutes 2006, section 89.55, is amended to read:
51.1489.55 INFESTATION CONTROL, COSTS.
51.15    Upon the establishment of the zone of infestation, the commissioner may apply
51.16measures of infestation prevention and control on public and private forest and other
51.17lands within such zone and to any trees, timber, plants or shrubs thereon, wood or wood
51.18products, or contaminated soil harboring or which may harbor the forest pests or shade
51.19tree pests. For this purpose, the duly authorized representatives of the commissioner
51.20are authorized to enter upon any lands, public or private within such the zone. The
51.21commissioner may enter into agreements with owners of the lands in the zone covering
51.22the control work on their lands, and fixing the pro rata basis on which the cost of such the
51.23work will be shared between the commissioner and said the owner.

51.24    Sec. 49. Minnesota Statutes 2006, section 89.56, subdivision 1, is amended to read:
51.25    Subdivision 1. Statement of expenses; cost to owners. At the end of each fiscal
51.26year and upon completion of the infestation control measures in any zone of infestation,
51.27the commissioner shall prepare a certified statement of expenses incurred in carrying
51.28out such the measures, including expenses of owners covered by agreements entered
51.29into pursuant to section 89.55. The statement shall show the amount which that the
51.30commissioner determines to be its the commissioner's share of the expenses. The share of
51.31the commissioner may include funds and the value of other contributions made available
51.32by the federal government and other cooperators. The balance of such the costs shall
51.33constitute a charge on an acreage basis as provided herein against the owners of lands in
52.1the zone containing trees valuable or potentially valuable for commercial timber purposes
52.2and affected or likely to be affected by the forest pests or shade tree pests for which control
52.3measures were conducted. In fixing the rates at which charges shall be made against each
52.4owner, the commissioner shall consider the present commercial value of the trees on the
52.5land, the present and potential benefits to such the owner from the application of the
52.6control measures, and the cost of applying such the measures to the land, and such other
52.7factors as in the discretion of the commissioner will enable determination of an equitable
52.8distribution of the cost to all such owners. No charge shall be made against owners to the
52.9extent that they have individually or as members of a cooperative association contributed
52.10funds, supplies, or services pursuant to agreement under this section.

52.11    Sec. 50. Minnesota Statutes 2006, section 89.56, subdivision 3, is amended to read:
52.12    Subd. 3. Collection. The unpaid charges assessed under sections 89.51 to 89.61
52.1389.64 and the actions of the commissioner on any protests filed pursuant to subdivision 2,
52.14shall be reported to the tax levying authority for the county in which the lands for which
52.15the charges are assessed are situated and shall be made a public record. Any charges
52.16finally determined to be due shall become a special assessment and shall be payable
52.17in the same manner and with the same interest and penalty charges and with the same
52.18procedure for collection as apply to ad valorem property taxes. Upon collection of the
52.19charges, the county treasurer shall forthwith cause the amounts thereof to be paid to the
52.20forest pest and shade tree pest control fund account created by section 89.58. Any unpaid
52.21charge or lien against the lands shall not be affected by the sale thereof or by dissolution
52.22of the zone of infestation.

52.23    Sec. 51. Minnesota Statutes 2006, section 89.57, is amended to read:
52.2489.57 DISSOLUTION OF ZONE INFESTATION.
52.25    Whenever the commissioner shall determine that forest pest or shade tree pest
52.26control work within an established zone of infestation is no longer necessary or feasible,
52.27the commissioner shall dissolve the zone.

52.28    Sec. 52. Minnesota Statutes 2006, section 89.58, is amended to read:
52.2989.58 FOREST PEST AND SHADE TREE PEST CONTROL ACCOUNT.
52.30    All money collected under the provisions of sections 89.51 to 89.61 89.64, together
52.31with such money as may be appropriated by the legislature or allocated by the Legislative
52.32Advisory Commission for the purposes of sections 89.51 to 89.61 89.64, and such money
52.33as may be contributed or paid by the federal government, or any other public or private
53.1agency, organization or individual, shall be deposited in the state treasury, to the credit
53.2of the forest pest and shade tree pest control account, which account is hereby created,
53.3and any moneys therein are appropriated to the commissioner for use in carrying out the
53.4purposes hereof of sections 89.51 to 89.64.

53.5    Sec. 53. Minnesota Statutes 2006, section 89.59, is amended to read:
53.689.59 COOPERATION.
53.7    The commissioner may cooperate with the United States or agencies thereof, other
53.8agencies of the state, county or municipal governments, agencies of neighboring states, or
53.9other public or private organizations or individuals and may accept such funds, equipment,
53.10supplies, or services from cooperators and others as it the commissioner may provide in
53.11agreements with the United States or its agencies for matching of federal funds as required
53.12under laws of the United States relating to forest pests and shade tree pests.

53.13    Sec. 54. Minnesota Statutes 2006, section 89.60, is amended to read:
53.1489.60 DUTIES, RULES; COMMISSIONER.
53.15    The commissioner is authorized to employ personnel in accordance with the laws of
53.16this state, to procure necessary equipment, supplies, and service, to enter into contracts, to
53.17provide funds to any agency of the United States for work or services under sections 89.51
53.18to 89.61 89.64, and to designate or appoint, as its the commissioner's representatives,
53.19employees of its cooperators, including employees of the United States or any agency
53.20thereof. The commissioner may prescribe rules for carrying out the purposes hereof
53.21of this section.

53.22    Sec. 55. Minnesota Statutes 2006, section 89.61, is amended to read:
53.2389.61 ACT SUPPLEMENTAL.
53.24    Provisions of sections 89.51 to 89.61 89.64 are supplementary to and not to be
53.25construed to repeal existing legislation.

53.26    Sec. 56. [89.62] SHADE TREE PEST CONTROL; GRANT PROGRAM.
53.27    Subdivision 1. Grants. The commissioner may make grants to aid in the control of
53.28a shade tree pest. To be eligible, a grantee must have a pest control program approved
53.29by the commissioner that:
53.30    (1) defines tree ownership and who is responsible for the costs associated with
53.31control measures;
54.1    (2) defines the zone of infestation within which the control measures are to be
54.2applied;
54.3    (3) includes a tree inspector certified under section 89.63 and having the authority to
54.4enter and inspect private lands;
54.5    (4) has the means to enforce measures needed to limit the spread of shade tree
54.6pests; and
54.7    (5) provides that grant money received will be deposited in a separate fund to be
54.8spent only for the purposes authorized by this section.
54.9    Subd. 2. Grant eligibility. The following are eligible for grants under this section:
54.10    (1) a home rule charter or statutory city or a town that exercises municipal powers
54.11under section 368.01 or any general or special law;
54.12    (2) a special park district organized under chapter 398;
54.13    (3) a special-purpose park and recreation board;
54.14    (4) a soil and water conservation district;
54.15    (5) a county; or
54.16    (6) any other organization with the legal authority to enter into contractual
54.17agreements.
54.18    Subd. 3. Rules; applicability to municipalities. The rules and procedures adopted
54.19under this section by the commissioner apply in a municipality unless the municipality
54.20adopts an ordinance determined by the commissioner to be more stringent than the rules
54.21and procedures of the commissioner. The rules and procedures of the commissioner or
54.22the municipality apply to all state agencies, special purpose districts, and metropolitan
54.23commissions as defined in section 473.121, subdivision 5a, that own or control land
54.24adjacent to or within a zone of infestation.

54.25    Sec. 57. [89.63] CERTIFICATION OF TREE INSPECTORS.
54.26    (a) The governing body of a municipality may appoint a qualified tree inspector.
54.27Two or more municipalities may jointly appoint a tree inspector for the purpose of
54.28administering their respective pest control programs.
54.29    (b) Upon a determination by the commissioner that a candidate for the position
54.30of tree inspector is qualified, the commissioner shall issue a certificate of qualification
54.31to the tree inspector. The certificate is valid for one year. A person certified as a tree
54.32inspector by the commissioner may enter and inspect any public or private property that
54.33might harbor forest pests or shade tree pests. The commissioner shall offer an annual tree
54.34inspector certification workshop, upon completion of which participants are qualified
54.35as tree inspectors.
55.1    (c) The commissioner may suspend and, upon notice and hearing, decertify a
55.2tree inspector if the tree inspector fails to act competently or in the public interest in
55.3the performance of duties.

55.4    Sec. 58. [89.64] EXEMPTIONS.
55.5    This chapter does not supersede the authority of the Department of Agriculture
55.6under chapter 18G.

55.7    Sec. 59. Minnesota Statutes 2006, section 90.161, is amended by adding a subdivision
55.8to read:
55.9    Subd. 4. Change of security. Prior to any harvest activity, or activities incidental
55.10to the preparation for harvest, a purchaser having posted a bond for 100 percent of the
55.11purchase price of a sale may request the release of the bond and the commissioner
55.12shall grant such release upon cash payment to the commissioner of the down payment
55.13requirement of the sale, plus interest.

55.14    Sec. 60. Minnesota Statutes 2006, section 93.22, subdivision 1, is amended to read:
55.15    Subdivision 1. Generally. (a) All payments under sections 93.14 to 93.285 shall
55.16be made to the Department of Natural Resources and shall be credited according to this
55.17section.
55.18    (a) If the lands or minerals and mineral rights covered by a lease are held by the state
55.19by virtue of an act of Congress, payments made under the lease shall be credited to the
55.20permanent fund of the class of land to which the leased premises belong.
55.21    (b) If a lease covers the bed of navigable waters, payments made under the lease
55.22shall be credited to the permanent school fund of the state.
55.23    (c) If the lands or minerals and mineral rights covered by a lease are held by the
55.24state in trust for the taxing districts, payments made under the lease shall be distributed
55.25annually on the first day of September as follows:
55.26    (1) 20 percent to the general fund; and
55.27    (2) 80 percent to the respective counties in which the lands lie, to be apportioned
55.28among the taxing districts interested therein as follows: county, three-ninths; town or city,
55.29two-ninths; and school district, four-ninths.
55.30    (d) Except as provided under this section and except where the disposition of
55.31payments may be otherwise directed by law, all payments shall be paid into the general
55.32fund of the state.
56.1    (b) Twenty percent of all payments under sections 93.14 to 93.285 shall be
56.2credited to the minerals management account in the natural resources fund as costs for
56.3the administration and management of state mineral resources by the commissioner of
56.4natural resources.
56.5    (c) The remainder of the payments shall be credited as follows:
56.6    (1) if the lands or minerals and mineral rights covered by a lease are held by the state
56.7by virtue of an act of Congress, payments made under the lease shall be credited to the
56.8permanent fund of the class of land to which the leased premises belong;
56.9    (2) if a lease covers the bed of navigable waters, payments made under the lease
56.10shall be credited to the permanent school fund of the state;
56.11    (3) if the lands or minerals and mineral rights covered by a lease are held by the state
56.12in trust for the taxing districts, payments made under the lease shall be distributed annually
56.13on the first day of September to the respective counties in which the lands lie, to be
56.14apportioned among the taxing districts interested therein as follows: county, three-ninths;
56.15town or city, two-ninths; and school district, four-ninths;
56.16    (4) if the lands or mineral rights covered by a lease became the absolute property of
56.17the state under the provisions of chapter 84A, payments made under the lease shall be
56.18distributed as follows: county containing the land from which the income was derived,
56.19five-eighths; and general fund of the state, three-eighths; and
56.20    (5) except as provided under this section and except where the disposition of
56.21payments may be otherwise directed by law, payments made under a lease shall be paid
56.22into the general fund of the state.

56.23    Sec. 61. Minnesota Statutes 2006, section 97A.055, subdivision 4, is amended to read:
56.24    Subd. 4. Game and fish annual reports. (a) By December 15 each year,
56.25the commissioner shall submit to the legislative committees having jurisdiction over
56.26appropriations and the environment and natural resources reports on each of the following:
56.27    (1) the amount of revenue from the following and purposes for which expenditures
56.28were made:
56.29    (i) the small game license surcharge under section 97A.475, subdivision 4;
56.30    (ii) the Minnesota migratory waterfowl stamp under section 97A.475, subdivision
56.315
, clause (1);
56.32    (iii) the trout and salmon stamp under section 97A.475, subdivision 10;
56.33    (iv) the pheasant stamp under section 97A.475, subdivision 5, clause (2); and
56.34    (v) the turkey stamp under section 97A.475, subdivision 5, clause (3); and
56.35    (vi) the deer license surcharge under section 97A.475, subdivision 3a;
57.1    (2) the amounts available under section 97A.075, subdivision 1, paragraphs (b) and
57.2(c), and the purposes for which these amounts were spent;
57.3    (3) money credited to the game and fish fund under this section and purposes for
57.4which expenditures were made from the fund;
57.5    (4) outcome goals for the expenditures from the game and fish fund; and
57.6    (5) summary and comments of citizen oversight committee reviews under
57.7subdivision 4b.
57.8    (b) The report must include the commissioner's recommendations, if any, for
57.9changes in the laws relating to the stamps and surcharge referenced in paragraph (a).

57.10    Sec. 62. Minnesota Statutes 2006, section 97A.065, is amended by adding a
57.11subdivision to read:
57.12    Subd. 6. Deer license surcharge. The surcharge collected under section 97A.475,
57.13subdivision 3a, shall be deposited in a special revenue account and is appropriated for fiscal
57.14years 2008 and 2009 to the commissioner for deer management, including for grants or
57.15payments to agencies, organizations, or individuals for assisting with the cost of processing
57.16deer taken for population management purposes for venison donation programs. None of
57.17the additional license fees shall be transferred to any other agency for administration of
57.18programs other than venison donation. If any money transferred by the commissioner is
57.19not used for a venison donation program, it shall be returned to the commissioner.

57.20    Sec. 63. Minnesota Statutes 2006, section 97A.133, is amended by adding a
57.21subdivision to read:
57.22    Subd. 66. Vermillion Highlands Wildlife Management Area, Dakota County.

57.23    Sec. 64. Minnesota Statutes 2006, section 97A.205, is amended to read:
57.2497A.205 ENFORCEMENT OFFICER POWERS.
57.25    An enforcement officer is authorized to:
57.26    (1) execute and serve court issued warrants and processes relating to wild animals,
57.27wild rice, public waters, water pollution, conservation, and use of water, in the same
57.28manner as a sheriff;
57.29    (2) enter any land to carry out the duties and functions of the division;
57.30    (3) make investigations of violations of the game and fish laws;
57.31    (4) take an affidavit, if it aids an investigation;
57.32    (5) arrest, without a warrant, a person who is detected in the actual violation of the
57.33game and fish laws, a provision of chapters 84, 84A, 84D, 85, 86A, 88 to 97C, 103E,
58.1103F, 103G, sections 86B.001 to 86B.815, 89.51 to 89.61 89.64; or 609.66, subdivision 1,
58.2clauses (1), (2), (5), and (7); and 609.68; and
58.3    (6) take an arrested person before a court in the county where the offense was
58.4committed and make a complaint.
58.5    Nothing in this section grants an enforcement officer any greater powers than other
58.6licensed peace officers.

58.7    Sec. 65. Minnesota Statutes 2006, section 97A.473, subdivision 3, is amended to read:
58.8    Subd. 3. Lifetime small game hunting license; fee. (a) A resident lifetime small
58.9game hunting license authorizes a person to hunt and trap small game in the state. The
58.10license authorizes those hunting and trapping activities authorized by the annual resident
58.11small game hunting license and trapping licenses. The license does not include a turkey
58.12stamp validation or any other hunting stamps required by law.
58.13    (b) The fees for a resident lifetime small game hunting license are:
58.14    (1) age 3 and under, $217;
58.15    (2) age 4 to age 15, $290;
58.16    (3) age 16 to age 50, $363; and
58.17    (4) age 51 and over, $213.
58.18EFFECTIVE DATE.This section is effective the day following final enactment
58.19and applies retroactively to licenses issued after February 28, 2001.

58.20    Sec. 66. Minnesota Statutes 2006, section 97A.473, subdivision 5, is amended to read:
58.21    Subd. 5. Lifetime sporting license; fee. (a) A resident lifetime sporting license
58.22authorizes a person to take fish by angling and hunt and trap small game in the state.
58.23The license authorizes those activities authorized by the annual resident angling and,
58.24resident small game hunting, and resident trapping licenses. The license does not include
58.25a trout and salmon stamp validation, a turkey stamp validation, or any other hunting
58.26stamps required by law.
58.27    (b) The fees for a resident lifetime sporting license are:
58.28    (1) age 3 and under, $357;
58.29    (2) age 4 to age 15, $480;
58.30    (3) age 16 to age 50, $613; and
58.31    (4) age 51 and over, $413.
58.32EFFECTIVE DATE.This section is effective the day following final enactment
58.33and applies retroactively to licenses issued after February 28, 2001.

59.1    Sec. 67. Minnesota Statutes 2006, section 97A.475, is amended by adding a
59.2subdivision to read:
59.3    Subd. 3a. Deer license surcharge. (a) Fees for annual resident and nonresident
59.4licenses to take deer by firearms or archery established under subdivisions 2, clauses (4),
59.5(5), (9), and (11), and 3, clauses (2), (3), and (7), must be increased by a surcharge of $1,
59.6except as provided under section 97A.065, subdivision 6. An additional commission may
59.7not be assessed on the surcharge and the following statement must be included in the
59.8annual deer hunting regulations: "The $1 deer license surcharge is being paid by hunters
59.9for deer management, including assisting with the costs of processing deer donated for
59.10charitable purposes."
59.11    (b) The commissioner shall report to the legislature on the participation in and
59.12effectiveness of the venison donation program by February 1, 2010.

59.13    Sec. 68. Minnesota Statutes 2006, section 97A.475, subdivision 7, is amended to read:
59.14    Subd. 7. Nonresident fishing. (a) Fees for the following licenses, to be issued
59.15to nonresidents, are:
59.16    (1) to take fish by angling, $34;
59.17    (2) to take fish by angling limited to seven consecutive days selected by the licensee,
59.18$24;
59.19    (3) to take fish by angling for a 72-hour period selected by the licensee, $20;
59.20    (4) to take fish by angling for a combined license for a family for one or both parents
59.21and dependent children under the age of 16, $46;
59.22    (5) to take fish by angling for a 24-hour period selected by the licensee, $8.50; and
59.23    (6) to take fish by angling for a combined license for a married couple, limited to
59.2414 consecutive days selected by one of the licensees, $35.
59.25    (b) A $2 surcharge shall be added to all nonresident fishing licenses, except licenses
59.26issued under paragraph (a), clause (5). An additional commission may not be assessed
59.27on this surcharge.
59.28EFFECTIVE DATE.This section is effective March 1, 2008.

59.29    Sec. 69. Minnesota Statutes 2006, section 97A.485, subdivision 7, is amended to read:
59.30    Subd. 7. Electronic licensing system commission. The commissioner shall retain
59.31for the operation of the electronic licensing system the commission established under
59.32section 84.027, subdivision 15, and issuing fees collected by the commissioner on all
59.33license fees collected, excluding:
59.34    (1) the small game surcharge; and
60.1    (2) the deer license surcharge; and
60.2    (3) $2.50 of the license fee for the licenses in section 97A.475, subdivisions 6,
60.3clauses (1)
, (2), and (4), 7, 8, 12, and 13.

60.4    Sec. 70. [97B.303] VENISON DONATIONS.
60.5    An individual who legally takes a deer may donate the deer, for distribution to
60.6charitable food assistance programs, to a meat processor that is licensed under chapter
60.728A. An individual donating a deer must supply the processor with the tag number under
60.8which the deer was taken.

60.9    Sec. 71. Minnesota Statutes 2006, section 97C.081, subdivision 3, is amended to read:
60.10    Subd. 3. Contests requiring a permit. (a) A person must have a permit from the
60.11commissioner to conduct a fishing contest that does not meet the criteria in subdivision 2.
60.12Permits shall be issued without a fee. The commissioner shall charge a fee for the permit
60.13that recovers the costs of issuing the permit and of monitoring the activities allowed by
60.14the permit. Receipts collected from this fee shall be credited to the game and fish fund.
60.15Notwithstanding section 16A.1283, the commissioner may, by written order published in
60.16the State Register, establish contest permit fees. The fees are not subject to the rulemaking
60.17provisions of chapter 14 and section 14.386 does not apply.
60.18    (b) If entry fees are over $25 per person, or total prizes are valued at more than
60.19$25,000, and if the applicant has either:
60.20    (1) not previously conducted a fishing contest requiring a permit under this
60.21subdivision; or
60.22    (2) ever failed to make required prize awards in a fishing contest conducted by
60.23the applicant, the commissioner may require the applicant to furnish the commissioner
60.24evidence of financial responsibility in the form of a surety bond or bank letter of credit in
60.25the amount of $25,000.
60.26    (c) The permit fee for any individual contest may not exceed the following amounts:
60.27    (1) $120 for an open water contest not exceeding 100 participants and without
60.28off-site weigh-in;
60.29    (2) $400 for an open water contest with more than 100 participants and without
60.30off-site weigh-in;
60.31    (3) $500 for an open water contest not exceeding 100 participants with off-site
60.32weigh-in;
60.33    (4) $1,000 for an open water contest with more than 100 participants with off-site
60.34weigh-in; or
61.1    (5) $120 for an ice fishing contest with more than 150 participants.

61.2    Sec. 72. Minnesota Statutes 2006, section 103B.101, is amended by adding a
61.3subdivision to read:
61.4    Subd. 12. Authority to issue penalty orders. The board may issue an order
61.5requiring violations to be corrected and administratively assessing monetary penalties for
61.6violations of this chapter and chapters 103C, 103D, 103E, 103F, and 103G, any rules
61.7adopted under those chapters, and any standards, limitations, or conditions established
61.8by the board.
61.9EFFECTIVE DATE.This section is effective the day following final enactment.

61.10    Sec. 73. [103B.102] LOCAL WATER MANAGEMENT ACCOUNTABILITY
61.11AND OVERSIGHT.
61.12    Subdivision 1. Findings; improving accountability and oversight. The legislature
61.13finds that a process is needed to monitor the performance and activities of local water
61.14management entities. The process should be preemptive so that problems can be identified
61.15early and systematically. Underperforming entities should be provided assistance and
61.16direction for improving performance in a reasonable time frame.
61.17    Subd. 2. Definitions. For the purposes of this section, "local water management
61.18entities" means watershed districts, soil and water conservation districts, metropolitan
61.19water management organizations, and counties operating separately or jointly in their
61.20role as local water management authorities under chapter 103B, 103C, 103D, or 103G
61.21and chapter 114D.
61.22    Subd. 3. Evaluation and report. The Board of Water and Soil Resources shall
61.23evaluate performance, financial, and activity information for each local water management
61.24entity. The board shall evaluate the entities' progress in accomplishing their adopted
61.25plans on a regular basis, but not less than once every five years. The board shall maintain
61.26a summary of local water management entity performance on the board's Web site.
61.27Beginning February 1, 2008, and annually thereafter, the board shall provide an analysis
61.28of local water management entity performance to the chairs of the house and senate
61.29committees having jurisdiction over environment and natural resources policy.
61.30    Subd. 4. Corrective actions. (a) In addition to other authorities, the Board of Water
61.31and Soil Resources may, based on its evaluation in subdivision 3, reduce, withhold, or
61.32redirect grants and other funding if the local water management entity has not corrected
61.33deficiencies as prescribed in a notice from the board within one year from the date of
61.34the notice.
62.1    (b) The board may defer a decision on a termination petition filed under section
62.2103B.221, 103C.225, or 103D.271 for up to one year to conduct or update the evaluation
62.3under subdivision 3 or to communicate the results of the evaluation to petitioners or to
62.4local and state government agencies.

62.5    Sec. 74. Minnesota Statutes 2006, section 103C.321, is amended by adding a
62.6subdivision to read:
62.7    Subd. 6. Credit card use. The supervisors may authorize the use of a credit card
62.8by any soil and water conservation district officer or employee otherwise authorized
62.9to make a purchase on behalf of the soil and water conservation district. If a soil and
62.10water conservation district officer or employee makes a purchase by credit card that is not
62.11approved by the supervisors, the officer or employee is personally liable for the amount of
62.12the purchase. A purchase by credit card must otherwise comply with all statutes, rules,
62.13or soil and water conservation district policy applicable to soil and water conservation
62.14district purchases.

62.15    Sec. 75. Minnesota Statutes 2006, section 103D.325, is amended by adding a
62.16subdivision to read:
62.17    Subd. 4. Credit card use. The managers may authorize the use of a credit card
62.18by any watershed district officer or employee otherwise authorized to make a purchase
62.19on behalf of the watershed district. If a watershed district officer or employee makes a
62.20purchase by credit card that is not approved by the managers, the officer or employee is
62.21personally liable for the amount of the purchase. A purchase by credit card must otherwise
62.22comply with all statutes, rules, or watershed district policy applicable to watershed district
62.23purchases.

62.24    Sec. 76. Minnesota Statutes 2006, section 103E.021, subdivision 1, is amended to read:
62.25    Subdivision 1. Spoil banks must be spread and grass planted permanent
62.26vegetation established. In any proceeding to establish, construct, improve, or do any
62.27work affecting a public drainage system under any law that appoints viewers to assess
62.28benefits and damages, the authority having jurisdiction over the proceeding shall order
62.29spoil banks to be spread consistent with the plan and function of the drainage system. The
62.30authority shall order that permanent grass, other than a noxious weed, be planted on
62.31the banks ditch side slopes and on a strip that a permanent strip of perennial vegetation
62.32approved by the drainage authority be established on each side of the ditch. Preference
62.33should be given to planting native species of a local ecotype. The approved perennial
63.1vegetation shall not impede future maintenance of the ditch. The permanent strips of
63.2perennial vegetation shall be 16-1/2 feet in width measured outward from the top edge
63.3of the constructed channel resulting from the proceeding, or to the crown of the leveled
63.4spoil bank, whichever is the greater, on each side of the top edge of the channel of the
63.5ditch. except for an action by a drainage authority that results only in a redetermination of
63.6benefits and damages, for which the required width shall be 16-1/2 feet. Drainage system
63.7rights-of-way for the acreage and additional property required for the planting permanent
63.8strips must be acquired by the authority having jurisdiction.

63.9    Sec. 77. Minnesota Statutes 2006, section 103E.021, subdivision 2, is amended to read:
63.10    Subd. 2. Reseeding and harvesting grass perennial vegetation. The authority
63.11having jurisdiction over the repair and maintenance of the drainage system shall supervise
63.12all necessary reseeding. The permanent grass strips of perennial vegetation must be
63.13maintained in the same manner as other drainage system repairs. Harvest of the grass
63.14vegetation from the grass permanent strip in a manner not harmful to the grass vegetation
63.15or the drainage system is the privilege of the fee owner or assigns. The county drainage
63.16inspector shall establish rules for the fee owner and assigns to harvest the grass vegetation.

63.17    Sec. 78. Minnesota Statutes 2006, section 103E.021, subdivision 3, is amended to read:
63.18    Subd. 3. Agricultural practices prohibited. Agricultural practices, other than
63.19those required for the maintenance of a permanent growth of grass perennial vegetation,
63.20are not permitted on any portion of the property acquired for planting perennial vegetation.

63.21    Sec. 79. Minnesota Statutes 2006, section 103E.021, is amended by adding a
63.22subdivision to read:
63.23    Subd. 6. Incremental implementation of vegetated ditch buffer strips and side
63.24inlet controls. (a) Notwithstanding other provisions of this chapter requiring appointment
63.25of viewers and redetermination of benefits and damages, a drainage authority may
63.26implement permanent buffer strips of perennial vegetation approved by the drainage
63.27authority or side inlet controls, or both, adjacent to a public drainage ditch, where
63.28necessary to control erosion and sedimentation, improve water quality, or maintain the
63.29efficiency of the drainage system. Preference should be given to planting native species of
63.30a local ecotype. The approved perennial vegetation shall not impede future maintenance
63.31of the ditch. The permanent strips of perennial vegetation shall be 16-1/2 feet in width
63.32measured outward from the top edge of the existing constructed channel. Drainage system
64.1rights-of-way for the acreage and additional property required for the permanent strips
64.2must be acquired by the authority having jurisdiction.
64.3    (b) A project under this subdivision shall be implemented as a repair according to
64.4section 103E.705, except that the drainage authority may appoint an engineer to examine
64.5the drainage system and prepare an engineer's repair report for the project.
64.6    (c) Damages shall be determined by the drainage authority, or viewers, appointed by
64.7the drainage authority, according to section 103E.315, subdivision 8. A damages statement
64.8shall be prepared, including an explanation of how the damages were determined for each
64.9property affected by the project, and filed with the auditor or watershed district. Within 30
64.10days after the damages statement is filed, the auditor or watershed district shall prepare
64.11property owners' reports according to section 103E.323, subdivision 1, clauses (1), (2),
64.12(6), (7), and (8), and mail a copy of the property owner's report and damages statement to
64.13each owner of property affected by the proposed project.
64.14    (d) After a damages statement is filed, the drainage authority shall set a time, by
64.15order, not more than 30 days after the date of the order, for a hearing on the project. At
64.16least ten days before the hearing, the auditor or watershed district shall give notice by mail
64.17of the time and location of the hearing to the owners of property and political subdivisions
64.18likely to be affected by the project.
64.19    (e) The drainage authority shall make findings and order the repairs to be made if
64.20the drainage authority determines from the evidence presented at the hearing and by the
64.21viewers and engineer, if appointed, that the repairs are necessary for the drainage system
64.22and the costs of the repairs are within the limitations of section 103E.705.

64.23    Sec. 80. [103E.067] DITCH BUFFER STRIP ANNUAL REPORTING.
64.24    The drainage authority shall annually submit a report to the Board of Water and Soil
64.25Resources for the calendar year including:
64.26    (1) the number and types of actions for which viewers were appointed;
64.27    (2) the number of miles of buffer strips established according to section 103E.021;
64.28    (3) the number of drainage system inspections conducted; and
64.29    (4) the number of violations of section 103E.021 identified and enforcement actions
64.30taken.

64.31    Sec. 81. Minnesota Statutes 2006, section 103E.315, subdivision 8, is amended to read:
64.32    Subd. 8. Extent of damages. Damages to be paid may include:
64.33    (1) the fair market value of the property required for the channel of an open ditch
64.34and the permanent grass strip of perennial vegetation under section 103E.021;
65.1    (2) the diminished value of a farm due to severing a field by an open ditch;
65.2    (3) loss of crop production during drainage project construction; and
65.3    (4) the diminished productivity or land value from increased overflow.; and
65.4    (5) costs to restore a perennial vegetative cover or structural practice existing
65.5under a federal or state conservation program adjacent to the permanent drainage system
65.6right-of-way and damaged by the drainage project.

65.7    Sec. 82. Minnesota Statutes 2006, section 103E.321, subdivision 1, is amended to read:
65.8    Subdivision 1. Requirements. The viewers' report must show, in tabular form,
65.9for each lot, 40-acre tract, and fraction of a lot or tract under separate ownership that
65.10is benefited or damaged:
65.11    (1) a description of the lot or tract, under separate ownership, that is benefited or
65.12damaged;
65.13    (2) the names of the owners as they appear on the current tax records of the county
65.14and their addresses;
65.15    (3) the number of acres in each tract or lot;
65.16    (4) the number and value of acres added to a tract or lot by the proposed drainage of
65.17public waters;
65.18    (5) the damage, if any, to riparian rights;
65.19    (6) the damages paid for the permanent grass strip of perennial vegetation under
65.20section 103E.021;
65.21    (7) the total number and value of acres added to a tract or lot by the proposed
65.22drainage of public waters, wetlands, and other areas not currently being cultivated;
65.23    (8) the number of acres and amount of benefits being assessed for drainage of areas
65.24which before the drainage benefits could be realized would require a public waters work
65.25permit to work in public waters under section 103G.245 to excavate or fill a navigable
65.26water body under United States Code, title 33, section 403, or a permit to discharge into
65.27waters of the United States under United States Code, title 33, section 1344;
65.28    (9) the number of acres and amount of benefits being assessed for drainage of areas
65.29that would be considered conversion of a wetland under United States Code, title 16,
65.30section 3821, if the area was placed in agricultural production;
65.31    (10) the amount of right-of-way acreage required; and
65.32    (11) the amount that each tract or lot will be benefited or damaged.

65.33    Sec. 83. Minnesota Statutes 2006, section 103E.701, is amended by adding a
65.34subdivision to read:
66.1    Subd. 7. Restoration; disturbance or destruction by repair. If a drainage system
66.2repair disturbs or destroys a perennial vegetative cover or structural practice existing
66.3under a federal or state conservation program adjacent to the permanent drainage system
66.4right-of-way, the practice must be restored according to the applicable practice plan or
66.5as determined by the drainage authority, if a practice plan is not available. Restoration
66.6costs shall be paid by the drainage system.

66.7    Sec. 84. Minnesota Statutes 2006, section 103E.705, subdivision 1, is amended to read:
66.8    Subdivision 1. Inspection. After the construction of a drainage system has been
66.9completed, the drainage authority shall maintain the drainage system that is located in its
66.10jurisdiction, including grass the permanent strips of perennial vegetation under section
66.11103E.021 , and provide the repairs necessary to make the drainage system efficient. The
66.12drainage authority shall have the drainage system inspected on a regular basis by an
66.13inspection committee of the drainage authority or a drainage inspector appointed by the
66.14drainage authority. Open drainage ditches shall be inspected at a minimum of every five
66.15years when no violation of section 103E.021 is found and annually when a violation of
66.16section 103E.021 is found, until one year after the violation is corrected.

66.17    Sec. 85. Minnesota Statutes 2006, section 103E.705, subdivision 2, is amended to read:
66.18    Subd. 2. Grass Permanent strip of perennial vegetation inspection and
66.19compliance notice. (a) The drainage authority having jurisdiction over a drainage system
66.20must inspect the drainage system for violations of section 103E.021. If an inspection
66.21committee of the drainage authority or a drainage inspector determines that permanent
66.22grass strips of perennial vegetation are not being maintained in compliance with section
66.23103E.021 , a compliance notice must be sent to the property owner.
66.24    (b) The notice must state:
66.25    (1) the date the ditch was inspected;
66.26    (2) the persons making the inspection;
66.27    (3) that spoil banks are to be spread in a manner consistent with the plan and function
66.28of the drainage system and that the drainage system has acquired a grass permanent strip
66.2916-1/2 feet in width or to the crown of the spoil bank, whichever is greater of perennial
66.30vegetation, according to section 103E.021;
66.31    (4) the violations of section 103E.021;
66.32    (5) the measures that must be taken by the property owner to comply with section
66.33103E.021 and the date when the property must be in compliance; and
67.1    (6) that if the property owner does not comply by the date specified, the drainage
67.2authority will perform the work necessary to bring the area into compliance with section
67.3103E.021 and charge the cost of the work to the property owner.
67.4    (c) If a property owner does not bring an area into compliance with section 103E.021
67.5as provided in the compliance notice, the inspection committee or drainage inspector
67.6must notify the drainage authority.
67.7    (d) This subdivision applies to property acquired under section 103E.021.

67.8    Sec. 86. Minnesota Statutes 2006, section 103E.705, subdivision 3, is amended to read:
67.9    Subd. 3. Drainage inspection report. For each drainage system that the board
67.10designates and requires the drainage inspector to examine, the drainage inspector shall
67.11make a drainage inspection report in writing to the board after examining a drainage
67.12system, designating portions that need repair or maintenance of grass the permanent
67.13strips of perennial vegetation and the location and nature of the repair or maintenance.
67.14The board shall consider the drainage inspection report at its next meeting and may repair
67.15all or any part of the drainage system as provided under this chapter. The grass permanent
67.16strips of perennial vegetation must be maintained in compliance with section 103E.021.

67.17    Sec. 87. Minnesota Statutes 2006, section 103E.728, subdivision 2, is amended to read:
67.18    Subd. 2. Additional assessment for agricultural practices on grass permanent
67.19strip of perennial vegetation. (a) The drainage authority may, after notice and hearing,
67.20charge an additional assessment on property that has agricultural practices on or otherwise
67.21violates provisions related to the permanent grass strip of perennial vegetation acquired
67.22under section 103E.021.
67.23    (b) The drainage authority may determine the cost of the repair per mile of open
67.24ditch on the ditch system. Property that is in violation of the grass requirement shall be
67.25assessed a cost of 20 percent of the repair cost per open ditch mile multiplied by the length
67.26of open ditch in miles on the property in violation.
67.27    (c) After the amount of the additional assessment is determined and applied to the
67.28repair cost, the balance of the repair cost may be apportioned pro rata as provided in
67.29subdivision 1.

67.30    Sec. 88. [103G.122] COMMISSIONER'S AUTHORITY TO REMOVE DEBRIS.
67.31    (a) The commissioner shall remove debris from public waters that was:
67.32    (1) caused by a disaster or a public emergency as defined in chapter 12; and
68.1    (2) constitutes a threat to public safety in any way, including swimming, boating, or
68.2other recreational use of the public waters.
68.3    (b) A statutory or home rule charter city or county may allow residents and adjacent
68.4property owners to place debris retrieved from public waters onto the public access for
68.5pickup.

68.6    Sec. 89. Minnesota Statutes 2006, section 103G.222, subdivision 1, is amended to read:
68.7    Subdivision 1. Requirements. (a) Wetlands must not be drained or filled, wholly
68.8or partially, unless replaced by restoring or creating wetland areas of at least equal
68.9public value under a replacement plan approved as provided in section 103G.2242, a
68.10replacement plan under a local governmental unit's comprehensive wetland protection
68.11and management plan approved by the board under section 103G.2243, or, if a permit to
68.12mine is required under section 93.481, under a mining reclamation plan approved by the
68.13commissioner under the permit to mine. Mining reclamation plans shall apply the same
68.14principles and standards for replacing wetlands by restoration or creation of wetland areas
68.15that are applicable to mitigation plans approved as provided in section 103G.2242. Public
68.16value must be determined in accordance with section 103B.3355 or a comprehensive
68.17wetland protection and management plan established under section 103G.2243. Sections
68.18103G.221 to 103G.2372 also apply to excavation in permanently and semipermanently
68.19flooded areas of types 3, 4, and 5 wetlands.
68.20    (b) Replacement must be guided by the following principles in descending order
68.21of priority:
68.22    (1) avoiding the direct or indirect impact of the activity that may destroy or diminish
68.23the wetland;
68.24    (2) minimizing the impact by limiting the degree or magnitude of the wetland
68.25activity and its implementation;
68.26    (3) rectifying the impact by repairing, rehabilitating, or restoring the affected
68.27wetland environment;
68.28    (4) reducing or eliminating the impact over time by preservation and maintenance
68.29operations during the life of the activity;
68.30    (5) compensating for the impact by restoring a wetland; and
68.31    (6) compensating for the impact by replacing or providing substitute wetland
68.32resources or environments.
68.33    For a project involving the draining or filling of wetlands in an amount not exceeding
68.3410,000 square feet more than the applicable amount in section 103G.2241, subdivision 9,
69.1paragraph (a), the local government unit may make an on-site sequencing determination
69.2without a written alternatives analysis from the applicant.
69.3    (c) If a wetland is located in a cultivated field, then replacement must be
69.4accomplished through restoration only without regard to the priority order in paragraph
69.5(b), provided that a deed restriction is placed on the altered wetland prohibiting
69.6nonagricultural use for at least ten years.
69.7    (d) If a wetland is drained under section 103G.2241, subdivision 2, the local
69.8government unit may require a deed restriction that prohibits nonagricultural use for at
69.9least ten years unless the drained wetland is replaced as provided under this section. The
69.10local government unit may require the deed restriction if it determines the wetland area
69.11drained is at risk of conversion to a nonagricultural use within ten years based on the
69.12zoning classification, proximity to a municipality or full service road, or other criteria as
69.13determined by the local government unit.
69.14    (e) Restoration and replacement of wetlands must be accomplished in accordance
69.15with the ecology of the landscape area affected and ponds that are created primarily to
69.16fulfill stormwater management, and water quality treatment requirements may not be
69.17used to satisfy replacement requirements under this chapter unless the design includes
69.18pretreatment of runoff and the pond is functioning as a wetland.
69.19    (e) (f) Except as provided in paragraph (f) (g), for a wetland or public waters wetland
69.20located on nonagricultural land, replacement must be in the ratio of two acres of replaced
69.21wetland for each acre of drained or filled wetland.
69.22    (f) (g) For a wetland or public waters wetland located on agricultural land or in a
69.23greater than 80 percent area, replacement must be in the ratio of one acre of replaced
69.24wetland for each acre of drained or filled wetland.
69.25    (g) (h) Wetlands that are restored or created as a result of an approved replacement
69.26plan are subject to the provisions of this section for any subsequent drainage or filling.
69.27    (h) (i) Except in a greater than 80 percent area, only wetlands that have been
69.28restored from previously drained or filled wetlands, wetlands created by excavation in
69.29nonwetlands, wetlands created by dikes or dams along public or private drainage ditches,
69.30or wetlands created by dikes or dams associated with the restoration of previously drained
69.31or filled wetlands may be used in a statewide banking program established in rules adopted
69.32under section 103G.2242, subdivision 1. Modification or conversion of nondegraded
69.33naturally occurring wetlands from one type to another are not eligible for enrollment in a
69.34statewide wetlands bank.
69.35    (i) (j) The Technical Evaluation Panel established under section 103G.2242,
69.36subdivision 2
, shall ensure that sufficient time has occurred for the wetland to develop
70.1wetland characteristics of soils, vegetation, and hydrology before recommending that the
70.2wetland be deposited in the statewide wetland bank. If the Technical Evaluation Panel has
70.3reason to believe that the wetland characteristics may change substantially, the panel shall
70.4postpone its recommendation until the wetland has stabilized.
70.5    (j) (k) This section and sections 103G.223 to 103G.2242, 103G.2364, and
70.6103G.2365 apply to the state and its departments and agencies.
70.7    (k) (l) For projects involving draining or filling of wetlands associated with a new
70.8public transportation project, and for projects expanded solely for additional traffic
70.9capacity, public transportation authorities may purchase credits from the board at the cost
70.10to the board to establish credits. Proceeds from the sale of credits provided under this
70.11paragraph are appropriated to the board for the purposes of this paragraph.
70.12    (l) (m) A replacement plan for wetlands is not required for individual projects that
70.13result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction,
70.14or replacement of a currently serviceable existing state, city, county, or town public road
70.15necessary, as determined by the public transportation authority, to meet state or federal
70.16design or safety standards or requirements, excluding new roads or roads expanded solely
70.17for additional traffic capacity lanes. This paragraph only applies to authorities for public
70.18transportation projects that:
70.19    (1) minimize the amount of wetland filling or draining associated with the project
70.20and consider mitigating important site-specific wetland functions on-site;
70.21    (2) except as provided in clause (3), submit project-specific reports to the board, the
70.22Technical Evaluation Panel, the commissioner of natural resources, and members of the
70.23public requesting a copy at least 30 days prior to construction that indicate the location,
70.24amount, and type of wetlands to be filled or drained by the project or, alternatively,
70.25convene an annual meeting of the parties required to receive notice to review projects to
70.26be commenced during the upcoming year; and
70.27    (3) for minor and emergency maintenance work impacting less than 10,000 square
70.28feet, submit project-specific reports, within 30 days of commencing the activity, to the
70.29board that indicate the location, amount, and type of wetlands that have been filled
70.30or drained.
70.31    Those required to receive notice of public transportation projects may appeal
70.32minimization, delineation, and on-site mitigation decisions made by the public
70.33transportation authority to the board according to the provisions of section 103G.2242,
70.34subdivision 9
. The Technical Evaluation Panel shall review minimization and delineation
70.35decisions made by the public transportation authority and provide recommendations
71.1regarding on-site mitigation if requested to do so by the local government unit, a
71.2contiguous landowner, or a member of the Technical Evaluation Panel.
71.3    Except for state public transportation projects, for which the state Department of
71.4Transportation is responsible, the board must replace the wetlands, and wetland areas of
71.5public waters if authorized by the commissioner or a delegated authority, drained or filled
71.6by public transportation projects on existing roads.
71.7    Public transportation authorities at their discretion may deviate from federal and
71.8state design standards on existing road projects when practical and reasonable to avoid
71.9wetland filling or draining, provided that public safety is not unreasonably compromised.
71.10The local road authority and its officers and employees are exempt from liability for
71.11any tort claim for injury to persons or property arising from travel on the highway and
71.12related to the deviation from the design standards for construction or reconstruction under
71.13this paragraph. This paragraph does not preclude an action for damages arising from
71.14negligence in construction or maintenance on a highway.
71.15    (m) (n) If a landowner seeks approval of a replacement plan after the proposed
71.16project has already affected the wetland, the local government unit may require the
71.17landowner to replace the affected wetland at a ratio not to exceed twice the replacement
71.18ratio otherwise required.
71.19    (n) (o) A local government unit may request the board to reclassify a county or
71.20watershed on the basis of its percentage of presettlement wetlands remaining. After
71.21receipt of satisfactory documentation from the local government, the board shall change
71.22the classification of a county or watershed. If requested by the local government unit,
71.23the board must assist in developing the documentation. Within 30 days of its action to
71.24approve a change of wetland classifications, the board shall publish a notice of the change
71.25in the Environmental Quality Board Monitor.
71.26    (o) (p) One hundred citizens who reside within the jurisdiction of the local
71.27government unit may request the local government unit to reclassify a county or watershed
71.28on the basis of its percentage of presettlement wetlands remaining. In support of their
71.29petition, the citizens shall provide satisfactory documentation to the local government unit.
71.30The local government unit shall consider the petition and forward the request to the board
71.31under paragraph (n) (o) or provide a reason why the petition is denied.
71.32EFFECTIVE DATE.This section is effective the day following final enactment.

71.33    Sec. 90. Minnesota Statutes 2006, section 103G.222, subdivision 3, is amended to read:
71.34    Subd. 3. Wetland replacement siting. (a) Siting wetland replacement must follow
71.35this priority order:
72.1    (1) on site or in the same minor watershed as the affected wetland;
72.2    (2) in the same watershed as the affected wetland;
72.3    (3) in the same county as the affected wetland;
72.4    (4) for replacement by wetland banking, in the same wetland bank service area as
72.5the impacted wetland, except that impacts in a 50 to 80 percent area must be replaced in
72.6a 50 to 80 percent area and impacts in a less than 50 percent area must be replaced in a
72.7less than 50 percent area;
72.8    (5) for project specific replacement, in an adjacent watershed or county to the
72.9affected wetland, or for replacement by wetland banking, in an adjacent wetland bank
72.10service area, except that impacts in a 50 to 80 percent area must be replaced in a 50 to
72.1180 percent area and impacts in a less than 50 percent area must be replaced in a less
72.12than 50 percent area; and
72.13    (5) (6) statewide, only for wetlands affected in greater than 80 percent areas and for
72.14public transportation projects, except that wetlands affected in less than 50 percent areas
72.15must be replaced in less than 50 percent areas, and wetlands affected in the seven-county
72.16metropolitan area must be replaced at a ratio of two to one in: (i) the affected county or,
72.17(ii) in another of the seven metropolitan counties, or (iii) in one of the major watersheds
72.18that are wholly or partially within the seven-county metropolitan area, but at least one to
72.19one must be replaced within the seven-county metropolitan area.
72.20    (b) Notwithstanding paragraph (a), siting wetland replacement in greater than 80
72.21percent areas may follow the priority order under this paragraph: (1) by wetland banking
72.22after evaluating on-site replacement and replacement within the watershed; (2) replaced
72.23in an adjacent wetland bank service area if wetland bank credits are not reasonably
72.24available in the same wetland bank service area as the affected wetland, as determined
72.25by the local government unit or by a comprehensive inventory approved by the board;
72.26and (3) statewide.
72.27    (c) Notwithstanding paragraph (a), siting wetland replacement in the seven-county
72.28metropolitan area must follow the priority order under this paragraph: (1) in the affected
72.29county; (2) in another of the seven metropolitan counties; or (3) in one of the major
72.30watersheds that are wholly or partially within the seven-county metropolitan area, but at
72.31least one to one must be replaced within the seven-county metropolitan area.
72.32    (d) The exception in paragraph (a), clause (5) (6), does not apply to replacement
72.33completed using wetland banking credits established by a person who submitted a
72.34complete wetland banking application to a local government unit by April 1, 1996.
73.1    (c) (e) When reasonable, practicable, and environmentally beneficial replacement
73.2opportunities are not available in siting priorities listed in paragraph (a), the applicant
73.3may seek opportunities at the next level.
73.4    (d) (f) For the purposes of this section, "reasonable, practicable, and environmentally
73.5beneficial replacement opportunities" are defined as opportunities that:
73.6    (1) take advantage of naturally occurring hydrogeomorphological conditions and
73.7require minimal landscape alteration;
73.8    (2) have a high likelihood of becoming a functional wetland that will continue
73.9in perpetuity;
73.10    (3) do not adversely affect other habitat types or ecological communities that are
73.11important in maintaining the overall biological diversity of the area; and
73.12    (4) are available and capable of being done after taking into consideration cost,
73.13existing technology, and logistics consistent with overall project purposes.
73.14    (e) (g) Regulatory agencies, local government units, and other entities involved in
73.15wetland restoration shall collaborate to identify potential replacement opportunities within
73.16their jurisdictional areas.
73.17EFFECTIVE DATE.This section is effective the day following final enactment.

73.18    Sec. 91. Minnesota Statutes 2006, section 103G.2241, subdivision 1, is amended to
73.19read:
73.20    Subdivision 1. Agricultural activities. (a) A replacement plan for wetlands is
73.21not required for:
73.22    (1) activities in a wetland that was planted with annually seeded crops, was in a crop
73.23rotation seeding of pasture grass or legumes, or was required to be set aside to receive
73.24price support or other payments under United States Code, title 7, sections 1421 to 1469,
73.25in six of the last ten years prior to January 1, 1991;
73.26    (2) activities in a wetland that is or has been enrolled in the federal conservation
73.27reserve program under United States Code, title 16, section 3831, that:
73.28    (i) was planted with annually seeded crops, was in a crop rotation seeding, or was
73.29required to be set aside to receive price support or payment under United States Code,
73.30title 7, sections 1421 to 1469, in six of the last ten years prior to being enrolled in the
73.31program; and
73.32    (ii) has not been restored with assistance from a public or private wetland restoration
73.33program;
73.34    (3) activities in a wetland that has received a commenced drainage determination
73.35provided for by the federal Food Security Act of 1985, that was made to the county
74.1Agricultural Stabilization and Conservation Service office prior to September 19, 1988,
74.2and a ruling and any subsequent appeals or reviews have determined that drainage of the
74.3wetland had been commenced prior to December 23, 1985;
74.4    (4) activities in a type 1 wetland on agricultural land, except for bottomland
74.5hardwood type 1 wetlands, and activities in a type 2 or type 6 wetland that is less than two
74.6acres in size and located on agricultural land;
74.7    (1) activities in a wetland conducted as part of normal farming practices. For
74.8purposes of this clause, "normal farming practices" means farming, silvicultural, grazing,
74.9and ranching activities such as plowing, seeding, cultivating, and harvesting for the
74.10production of feed, food, fuel, fiber, and forest products, but does not include activities
74.11that result in the draining or filling of wetlands in whole or part;
74.12    (2) soil and water conservation practices approved by the soil and water conservation
74.13district, after review by the Technical Evaluation Panel;
74.14    (5) (3) aquaculture activities including pond excavation and construction and
74.15maintenance of associated access roads and dikes authorized under, and conducted in
74.16accordance with, a permit issued by the United States Army Corps of Engineers under
74.17section 404 of the federal Clean Water Act, United States Code, title 33, section 1344, but
74.18not including construction or expansion of buildings; or
74.19    (6) (4) wild rice production activities, including necessary diking and other activities
74.20authorized under a permit issued by the United States Army Corps of Engineers under
74.21section 404 of the federal Clean Water Act, United States Code, title 33, section 1344;.
74.22    (7) normal agricultural practices to control noxious or secondary weeds as defined
74.23by rule of the commissioner of agriculture, in accordance with applicable requirements
74.24under state and federal law, including established best management practices; and
74.25    (8) agricultural activities in a wetland that is on agricultural land:
74.26    (i) annually enrolled in the federal Agriculture Improvement and Reform Act of
74.271996 and is subject to United States Code, title 16, sections 3821 to 3823, in effect on
74.28January 1, 2000; or
74.29    (ii) subject to subsequent federal farm program restrictions that meet minimum
74.30state standards under this chapter and sections 103A.202 and 103B.3355 and that have
74.31been approved by the Board of Water and Soil Resources, the commissioners of natural
74.32resources and agriculture, and the Pollution Control Agency.
74.33    (b) Land enrolled in a federal farm program under paragraph (a), clause (8), is
74.34eligible for easement participation for those acres not already compensated under a federal
74.35program.
75.1    (c) The exemption under paragraph (a), clause (4), may be expanded to additional
75.2acreage, including types 1, 2, and 6 wetlands that are part of a larger wetland system, when
75.3the additional acreage is part of a conservation plan approved by the local soil and water
75.4conservation district, the additional draining or filling is necessary for efficient operation
75.5of the farm, the hydrology of the larger wetland system is not adversely affected, and
75.6wetlands other than types 1, 2, and 6 are not drained or filled.
75.7EFFECTIVE DATE.This section is effective the day following final enactment.

75.8    Sec. 92. Minnesota Statutes 2006, section 103G.2241, subdivision 2, is amended to
75.9read:
75.10    Subd. 2. Drainage. (a) For the purposes of this subdivision, "public drainage
75.11system" means a drainage system as defined in section 103E.005, subdivision 12, and any
75.12ditch or tile lawfully connected to the drainage system. If wetlands drained under this
75.13subdivision are converted to uses prohibited under paragraph (b), clause (2), during the
75.14ten-year period following drainage, the wetlands must be replaced according to section
75.15103G.222.
75.16    (b) A replacement plan is not required for draining of type 1 wetlands, or up to five
75.17acres of type 2 or 6 wetlands, in an unincorporated area on land that has been assessed
75.18drainage benefits for a public drainage system, provided that:
75.19    (1) during the 20-year period that ended January 1, 1992:
75.20    (i) there was an expenditure made from the drainage system account for the public
75.21drainage system;
75.22    (ii) the public drainage system was repaired or maintained as approved by the
75.23drainage authority; or
75.24    (iii) no repair or maintenance of the public drainage system was required under
75.25section 103E.705, subdivision 1, as determined by the public drainage authority; and
75.26    (2) the wetlands are not drained for conversion to:
75.27    (i) platted lots;
75.28    (ii) planned unit, commercial, or industrial developments; or
75.29    (iii) any development with more than one residential unit per 40 acres.
75.30If wetlands drained under this paragraph are converted to uses prohibited under clause
75.31(2) during the ten-year period following drainage, the wetlands must be replaced under
75.32section 103G.222.
76.1    (c) A replacement plan is not required for draining or filling of wetlands, except for
76.2draining types 3, 4, and 5 wetlands that have been in existence for more than 25 years,
76.3resulting from maintenance and repair of existing public drainage systems.
76.4    (d) A replacement plan is not required for draining or filling of wetlands, except
76.5for draining wetlands that have been in existence for more than 25 years, resulting from
76.6maintenance and repair of existing drainage systems other than public drainage systems.
76.7    (e) A replacement plan is not required for draining or filling of wetlands resulting
76.8from activities conducted as part of a public drainage system improvement project that
76.9received final approval from the drainage authority before July 1, 1991, and after July 1,
76.101986, if:
76.11    (1) the approval remains valid;
76.12    (2) the project remains active; and
76.13    (3) no additional drainage will occur beyond that originally approved.
76.14    (e) A replacement plan is not required for draining agricultural land that: (1) was
76.15planted with annually seeded crops before July 5, except for crops that are normally
76.16planted after that date, in eight out of the ten most recent years prior to the impact; (2)
76.17was in a crop rotation seeding of pasture grass or legumes in eight out of the ten most
76.18recent years prior to the impact; or (3) was enrolled in a state or federal land conservation
76.19program and met the requirements of clause (1) or (2) before enrollment.
76.20    (f) The public drainage authority may, as part of the repair, install control structures,
76.21realign the ditch, construct dikes along the ditch, or make other modifications as necessary
76.22to prevent drainage of the wetland.
76.23    (g) Wetlands of all types that would be drained as a part of a public drainage repair
76.24project are eligible for the permanent wetlands preserve under section 103F.516. The
76.25board shall give priority to acquisition of easements on types 3, 4, and 5 wetlands that have
76.26been in existence for more than 25 years on public drainage systems and other wetlands
76.27that have the greatest risk of drainage from a public drainage repair project.
76.28EFFECTIVE DATE.This section is effective the day following final enactment.

76.29    Sec. 93. Minnesota Statutes 2006, section 103G.2241, subdivision 3, is amended to
76.30read:
76.31    Subd. 3. Federal approvals. A replacement plan for wetlands is not required for:
76.32    (1) activities exempted from federal regulation under United States Code, title 33,
76.33section 1344(f), as in effect on January 1, 1991;
76.34    (2) activities authorized under, and conducted in accordance with, an applicable
76.35general permit issued by the United States Army Corps of Engineers under section 404
77.1of the federal Clean Water Act, United States Code, title 33, section 1344, except the
77.2nationwide permit in Code of Federal Regulations, title 33, section 330.5, paragraph (a),
77.3clauses (14), limited to when a new road crosses a wetland, and (26), as in effect on
77.4January 1, 1991; or
77.5    (3) activities authorized under the federal Clean Water Act, section 404, or the
77.6Rivers and Harbors Act, section 10, regulations that meet minimum state standards
77.7under this chapter and sections 103A.202 and 103B.3355 and that have been approved
77.8by the Board of Water and Soil Resources, the commissioners of natural resources and
77.9agriculture, and the Pollution Control Agency.
77.10EFFECTIVE DATE.This section is effective the day following final enactment.

77.11    Sec. 94. Minnesota Statutes 2006, section 103G.2241, subdivision 6, is amended to
77.12read:
77.13    Subd. 6. Utilities; public works. (a) A replacement plan for wetlands is not
77.14required for:
77.15    (1) placement, maintenance, repair, enhancement, or replacement of utility or
77.16utility-type service if:
77.17    (i) the impacts of the proposed project on the hydrologic and biological
77.18characteristics of the wetland have been avoided and minimized to the extent possible; and
77.19    (ii) the proposed project significantly modifies or alters less than one-half acre of
77.20wetlands;
77.21    (2) activities associated with routine maintenance of utility and pipeline
77.22rights-of-way, provided the activities do not result in additional intrusion into the wetland;
77.23    (3) alteration of a wetland associated with the operation, maintenance, or repair of
77.24an interstate pipeline within all existing or acquired interstate pipeline rights-of-way;
77.25    (4) emergency repair and normal maintenance and repair of existing public works,
77.26provided the activity does not result in additional intrusion of the public works into the
77.27wetland and does not result in the draining or filling, wholly or partially, of a wetland;
77.28    (5) normal maintenance and minor repair of structures causing no additional
77.29intrusion of an existing structure into the wetland, and maintenance and repair of private
77.30crossings that do not result in the draining or filling, wholly or partially, of a wetland; or
77.31    (6) repair and updating of existing individual sewage treatment systems as necessary
77.32to comply with local, state, and federal regulations.
77.33    (1) new placement or maintenance, repair, enhancement, or replacement of existing
77.34utility or utility-type service, including pipelines, if:
78.1    (i) the direct and indirect impacts of the proposed project have been avoided and
78.2minimized to the extent possible; and
78.3    (ii) the proposed project significantly modifies or alters less than one-half acre of
78.4wetlands;
78.5    (2) activities associated with operation, routine maintenance, or emergency repair of
78.6existing utilities and public work structures, including pipelines, provided the activities
78.7do not result in additional wetland intrusion or additional draining or filling of a wetland
78.8either wholly or partially; or
78.9    (3) repair and updating of existing individual sewage treatment systems necessary to
78.10comply with local, state, and federal regulations.
78.11    (b) For maintenance, repair, and replacement, the local government unit may issue
78.12a seasonal or annual exemption certification or the utility may proceed without local
78.13government unit certification if the utility is carrying out the work according to approved
78.14best management practices. Work of an emergency nature may proceed as necessary
78.15and any drain or fill activities shall be addressed with the local government unit after
78.16the emergency work has been completed.
78.17EFFECTIVE DATE.This section is effective the day following final enactment.

78.18    Sec. 95. Minnesota Statutes 2006, section 103G.2241, subdivision 9, is amended to
78.19read:
78.20    Subd. 9. De minimis. (a) Except as provided in paragraphs (b) and (c), a
78.21replacement plan for wetlands is not required for draining or filling the following amounts
78.22of wetlands as part of a project:
78.23    (1) 10,000 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar and
78.24tamarack wetlands, outside of the shoreland wetland protection zone in a greater than
78.2580 percent area;
78.26    (2) 5,000 2,500 square feet of type 1, 2, 6, or 7 wetland, excluding white cedar
78.27and tamarack wetlands, outside of the shoreland wetland protection zone in a 50 to 80
78.28percent area;
78.29    (3) 2,000 1,000 square feet of type 1, 2, or 6 wetland, outside of the shoreland
78.30wetland protection zone in a less than 50 percent area;
78.31    (4) 400 100 square feet of wetland types not listed in clauses (1) to (3) outside of
78.32the building setback zone of the shoreland wetland protection zones in all counties; or
78.33    (5) 400 square feet of type 1, 2, 3, 4, 5, 6, 7, or 8 wetland types listed in clauses (1)
78.34to (3), in beyond the building setback zone, as defined in the local shoreland management
78.35ordinance, but within the shoreland wetland protection zone, except that. In a greater
79.1than 80 percent area, the local government unit may increase the de minimis amount
79.2up to 1,000 square feet in the shoreland protection zone in areas beyond the building
79.3setback if the wetland is isolated and is determined to have no direct surficial connection
79.4to the public water. To the extent that a local shoreland management ordinance is more
79.5restrictive than this provision, the local shoreland ordinance applies; or
79.6    (6) up to 20 square feet of wetland, regardless of type or location.
79.7    (b) The amounts listed in paragraph (a), clauses (1) to (5) (6), may not be combined
79.8on a project.
79.9    (c) This exemption no longer applies to a landowner's portion of a wetland when
79.10the cumulative area drained or filled of the landowner's portion since January 1, 1992, is
79.11the greatest of:
79.12    (1) the applicable area listed in paragraph (a), if the landowner owns the entire
79.13wetland;
79.14    (2) five percent of the landowner's portion of the wetland; or
79.15    (3) 400 square feet.
79.16    (d) This exemption may not be combined with another exemption in this section on
79.17a project.
79.18    (e) Property may not be divided to increase the amounts listed in paragraph (a).
79.19EFFECTIVE DATE.This section is effective the day following final enactment.

79.20    Sec. 96. Minnesota Statutes 2006, section 103G.2241, subdivision 11, is amended to
79.21read:
79.22    Subd. 11. Exemption conditions. (a) A person conducting an activity in a wetland
79.23under an exemption in subdivisions 1 to 10 shall ensure that:
79.24    (1) appropriate erosion control measures are taken to prevent sedimentation of
79.25the water;
79.26    (2) the activity does not block fish passage in a watercourse; and
79.27    (3) the activity is conducted in compliance with all other applicable federal,
79.28state, and local requirements, including best management practices and water resource
79.29protection requirements established under chapter 103H.
79.30    (b) An activity is exempt if it qualifies for any one of the exemptions, even though it
79.31may be indicated as not exempt under another exemption.
79.32    (c) Persons proposing to conduct an exempt activity are encouraged to contact the
79.33local government unit or the local government unit's designee for advice on minimizing
79.34wetland impacts.
80.1    (d) The board shall develop rules that address the application and implementation
80.2of exemptions and that provide for estimates and reporting of exempt wetland impacts,
80.3including those in section 103G.2241, subdivisions 2, 6, and 9.
80.4EFFECTIVE DATE.This section is effective the day following final enactment.

80.5    Sec. 97. Minnesota Statutes 2006, section 103G.2242, subdivision 2, is amended to
80.6read:
80.7    Subd. 2. Evaluation. (a) Questions concerning the public value, location, size,
80.8or type of a wetland shall be submitted to and determined by a Technical Evaluation
80.9Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of
80.10a technical professional employee of the board, a technical professional employee of
80.11the local soil and water conservation district or districts, a technical professional with
80.12expertise in water resources management appointed by the local government unit, and
80.13a technical professional employee of the Department of Natural Resources for projects
80.14affecting public waters or wetlands adjacent to public waters. The panel shall use the
80.15"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987),
80.16including updates, supplementary guidance, and replacements, if any, "Wetlands of
80.17the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition),
80.18and "Classification of Wetlands and Deepwater Habitats of the United States" (1979
80.19edition). The panel shall provide the wetland determination and recommendations on
80.20other technical matters to the local government unit that must approve a replacement
80.21plan, wetland banking plan, exemption determination, no-loss determination, or wetland
80.22boundary or type determination and may recommend approval or denial of the plan. The
80.23authority must consider and include the decision of the Technical Evaluation Panel in their
80.24approval or denial of a plan or determination.
80.25    (b) Persons conducting wetland or public waters boundary delineations or type
80.26determinations are exempt from the requirements of chapter 326. By January 15, 2001,
80.27the board, in consultation with the Minnesota Association of Professional Soil Scientists,
80.28the University of Minnesota, and the Wetland Delineators' Association, shall submit a plan
80.29for a professional wetland delineator certification program to the legislature. The board
80.30may develop a professional wetland delineator certification program.
80.31EFFECTIVE DATE.This section is effective the day following final enactment.

80.32    Sec. 98. Minnesota Statutes 2006, section 103G.2242, subdivision 2a, is amended to
80.33read:
81.1    Subd. 2a. Wetland boundary or type determination. (a) A landowner may apply
81.2for a wetland boundary or type determination from the local government unit. The
81.3landowner applying for the determination is responsible for submitting proof necessary
81.4to make the determination, including, but not limited to, wetland delineation field data,
81.5observation well data, topographic mapping, survey mapping, and information regarding
81.6soils, vegetation, hydrology, and groundwater both within and outside of the proposed
81.7wetland boundary.
81.8    (b) A local government unit that receives an application under paragraph (a) may
81.9seek the advice of the Technical Evaluation Panel as described in subdivision 2, and, if
81.10necessary, expand the Technical Evaluation Panel. The local government unit may delegate
81.11the decision authority for wetland boundary or type determinations with the zoning
81.12administrator to designated staff, or establish other procedures it considers appropriate.
81.13    (c) The local government unit decision must be made in compliance with section
81.1415.99 . Within ten calendar days of the decision, the local government unit decision must
81.15be mailed to the landowner, members of the Technical Evaluation Panel, the watershed
81.16district or watershed management organization, if one exists, and individual members of
81.17the public who request a copy.
81.18    (d) Appeals of decisions made by designated local government staff must be made
81.19to the local government unit. Notwithstanding any law to the contrary, a ruling on an
81.20appeal must be made by the local government unit within 30 days from the date of the
81.21filing of the appeal.
81.22    (e) The local government unit decision is valid for three years unless the Technical
81.23Evaluation Panel determines that natural or artificial changes to the hydrology, vegetation,
81.24or soils of the area have been sufficient to alter the wetland boundary or type.
81.25EFFECTIVE DATE.This section is effective the day following final enactment.

81.26    Sec. 99. Minnesota Statutes 2006, section 103G.2242, subdivision 9, is amended to
81.27read:
81.28    Subd. 9. Appeal. (a) Appeal of a replacement plan, exemption, wetland banking,
81.29wetland boundary or type determination, or no-loss decision, or restoration order may
81.30be obtained by mailing a petition and payment of a filing fee of $200, which shall be
81.31retained by the board to defray administrative costs, to the board within 30 days after the
81.32postmarked date of the mailing specified in subdivision 7. If appeal is not sought within
81.3330 days, the decision becomes final. The local government unit may require the petitioner
81.34to post a letter of credit, cashier's check, or cash in an amount not to exceed $500. If the
82.1petition for hearing is accepted, the amount posted must be returned to the petitioner.
82.2Appeal may be made by:
82.3    (1) the wetland owner;
82.4    (2) any of those to whom notice is required to be mailed under subdivision 7; or
82.5    (3) 100 residents of the county in which a majority of the wetland is located.
82.6    (b) Within 30 days after receiving a petition, the board shall decide whether to
82.7grant the petition and hear the appeal. The board shall grant the petition unless the board
82.8finds that:
82.9    (1) the appeal is meritless, trivial, or brought solely for the purposes of delay;
82.10    (2) the petitioner has not exhausted all local administrative remedies;
82.11    (3) expanded technical review is needed;
82.12    (4) the local government unit's record is not adequate; or
82.13    (5) the petitioner has not posted a letter of credit, cashier's check, or cash if required
82.14by the local government unit.
82.15    (c) In determining whether to grant the appeal, the board shall also consider the
82.16size of the wetland, other factors in controversy, any patterns of similar acts by the local
82.17government unit or petitioner, and the consequences of the delay resulting from the appeal.
82.18    (d) All appeals must be heard by the committee for dispute resolution of the board,
82.19and a decision made within 60 days of filing the local government unit's record and the
82.20written briefs submitted for the appeal. The decision must be served by mail on the parties
82.21to the appeal, and is not subject to the provisions of chapter 14. A decision whether to
82.22grant a petition for appeal and a decision on the merits of an appeal must be considered the
82.23decision of an agency in a contested case for purposes of judicial review under sections
82.2414.63 to 14.69.
82.25    (e) Notwithstanding section 16A.1283, the board shall establish a fee schedule to
82.26defray the administrative costs of appeals made to the board under this subdivision. Fees
82.27established under this authority shall not exceed $1,000. Establishment of the fee is not
82.28subject to the rulemaking process of chapter 14 and section 14.386 does not apply.
82.29EFFECTIVE DATE.This section is effective the day following final enactment.

82.30    Sec. 100. Minnesota Statutes 2006, section 103G.2242, subdivision 12, is amended to
82.31read:
82.32    Subd. 12. Replacement credits. (a) No public or private wetland restoration,
82.33enhancement, or construction may be allowed for replacement unless specifically
82.34designated for replacement and paid for by the individual or organization performing the
83.1wetland restoration, enhancement, or construction, and is completed prior to any draining
83.2or filling of the wetland.
83.3    (b) Paragraph (a) does not apply to a wetland whose owner has paid back with
83.4interest the individual or organization restoring, enhancing, or constructing the wetland.
83.5    (c) Notwithstanding section 103G.222, subdivision 1, paragraph (h) (i), the
83.6following actions, and others established in rule, that are consistent with criteria in rules
83.7adopted by the board in conjunction with the commissioners of natural resources and
83.8agriculture, are eligible for replacement credit as determined by the local government unit,
83.9including enrollment in a statewide wetlands bank:
83.10    (1) reestablishment of permanent native, noninvasive vegetative cover on a wetland
83.11on agricultural land that was planted with annually seeded crops, was in a crop rotation
83.12seeding of pasture grasses or legumes, or was in a land retirement program during the
83.13past ten years;
83.14    (2) buffer areas of permanent native, noninvasive vegetative cover established or
83.15preserved on upland adjacent to replacement wetlands;
83.16    (3) wetlands restored for conservation purposes under terminated easements or
83.17contracts; and
83.18    (4) water quality treatment ponds constructed to pretreat storm water runoff prior
83.19to discharge to wetlands, public waters, or other water bodies, provided that the water
83.20quality treatment ponds must be associated with an ongoing or proposed project that
83.21will impact a wetland and replacement credit for the treatment ponds is based on the
83.22replacement of wetland functions and on an approved stormwater management plan for
83.23the local government.
83.24    (d) Notwithstanding section 103G.222, subdivision 1, paragraphs (e) (f) and (f) (g),
83.25the board may establish by rule different replacement ratios for restoration projects with
83.26exceptional natural resource value.
83.27EFFECTIVE DATE.This section is effective the day following final enactment.

83.28    Sec. 101. Minnesota Statutes 2006, section 103G.2242, subdivision 15, is amended to
83.29read:
83.30    Subd. 15. Fees paid to board. All fees established in subdivision subdivisions 9
83.31and 14 must be paid to the Board of Water and Soil Resources and credited to the general
83.32fund to be used for the purpose of administration of the wetland bank and to process
83.33appeals under section 103G.2242, subdivision 9.
83.34EFFECTIVE DATE.This section is effective the day following final enactment.

84.1    Sec. 102. Minnesota Statutes 2006, section 103G.2243, subdivision 2, is amended to
84.2read:
84.3    Subd. 2. Plan contents. A comprehensive wetland protection and management
84.4plan may:
84.5    (1) provide for classification of wetlands in the plan area based on:
84.6    (i) an inventory of wetlands in the plan area;
84.7    (ii) an assessment of the wetland functions listed in section 103B.3355, using a
84.8methodology chosen by the Technical Evaluation Panel from one of the methodologies
84.9established or approved by the board under that section; and
84.10    (iii) the resulting public values;
84.11    (2) vary application of the sequencing standards in section 103G.222, subdivision 1,
84.12paragraph (b), for projects based on the classification and criteria set forth in the plan;
84.13    (3) vary the replacement standards of section 103G.222, subdivision 1, paragraphs
84.14(e) (f) and (f) (g), based on the classification and criteria set forth in the plan, for specific
84.15wetland impacts provided there is no net loss of public values within the area subject to
84.16the plan, and so long as:
84.17    (i) in a 50 to 80 percent area, a minimum acreage requirement of one acre of replaced
84.18wetland for each acre of drained or filled wetland requiring replacement is met within
84.19the area subject to the plan; and
84.20    (ii) in a less than 50 percent area, a minimum acreage requirement of two acres of
84.21replaced wetland for each acre of drained or filled wetland requiring replacement is met
84.22within the area subject to the plan, except that replacement for the amount above a 1:1
84.23ratio can be accomplished as described in section 103G.2242, subdivision 12; and
84.24    (4) in a greater than 80 percent area, allow replacement credit, based on the
84.25classification and criteria set forth in the plan, for any project that increases the public
84.26value of wetlands, including activities on adjacent upland acres; and.
84.27    (5) in a greater than 80 percent area, based on the classification and criteria set forth
84.28in the plan, expand the application of the exemptions in section 103G.2241, subdivision
84.291
, paragraph (a), clause (4), to also include nonagricultural land, provided there is no
84.30net loss of wetland values.
84.31EFFECTIVE DATE.This section is effective the day following final enactment.

84.32    Sec. 103. Minnesota Statutes 2006, section 103G.235, is amended to read:
84.33103G.235 RESTRICTIONS ON ACCESS TO PUBLIC WATERS WETLANDS.
85.1    Subdivision 1. Wetlands adjacent to roads. To protect the public health or safety,
85.2local units of government may by ordinance restrict public access to public waters
85.3wetlands from municipality, county, or township roads that abut public waters wetlands.
85.4    Subd. 2. Privately restored or created wetlands. When a landowner creates a new
85.5wetland or restores a formerly existing wetland on private land that is adjacent to public
85.6land or a public road right-of-way, there is no public access to the created or restored
85.7wetland if posted by the landowner.

85.8    Sec. 104. Minnesota Statutes 2006, section 103G.301, subdivision 2, is amended to
85.9read:
85.10    Subd. 2. Permit application fees. (a) A permit application fee to defray the costs of
85.11receiving, recording, and processing the application must be paid for a permit authorized
85.12under this chapter and for each request to amend or transfer an existing permit.
85.13    (b) The fee to apply for a permit to appropriate water by a nonpublic applicant or a
85.14nonagricultural irrigation applicant must be assessed to recover the reasonable costs of
85.15preparing and issuing the permit. Fees collected under this paragraph must be credited
85.16to an account in the natural resources fund and are appropriated for fiscal years 2008
85.17and 2009 to the commissioner.
85.18    (b) (c) The fee to apply for a permit to appropriate water, other than a permit subject
85.19to the fee under paragraph (b); a permit to construct or repair a dam that is subject to dam
85.20safety inspection,; or a state general permit or to apply for the state water bank program is
85.21$150. The application fee for a permit to work in public waters or to divert waters for
85.22mining must be at least $150, but not more than $1,000, according to a schedule of fees
85.23adopted under section 16A.1285.

85.24    Sec. 105. Minnesota Statutes 2006, section 115.55, subdivision 1, is amended to read:
85.25    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to sections
85.26115.55 to 115.56.
85.27    (b) "Advisory committee" means the Advisory Committee on Individual Sewage
85.28Treatment Systems established under the individual sewage treatment system rules. The
85.29advisory committee must be appointed to ensure geographic representation of the state
85.30and include elected public officials.
85.31    (c) "Applicable requirements" means:
85.32    (1) local ordinances that comply with the individual sewage treatment system rules,
85.33as required in subdivision 2; or
86.1    (2) in areas not subject to the ordinances described in clause (1), the individual
86.2sewage treatment system rules.
86.3    (d) "City" means a statutory or home rule charter city.
86.4    (e) "Commissioner" means the commissioner of the Pollution Control Agency.
86.5    (f) "Dwelling" means a building or place used or intended to be used by human
86.6occupants as a single-family or two-family unit.
86.7    (g) "Individual sewage treatment system" or "system" means a sewage treatment
86.8system, or part thereof, serving a dwelling, other establishment, or group thereof, that
86.9uses subsurface soil treatment and disposal, or a holding tank, serving a dwelling, other
86.10establishment, or a group thereof.
86.11    (h) "Individual sewage treatment system professional" means an inspector, installer,
86.12site evaluator or designer, or pumper.
86.13    (i) "Individual sewage treatment system rules" means rules adopted by the agency
86.14that establish minimum standards and criteria for the design, location, installation, use,
86.15and maintenance of individual sewage treatment systems.
86.16    (j) "Inspector" means a person who inspects individual sewage treatment systems for
86.17compliance with the applicable requirements.
86.18    (k) "Installer" means a person who constructs or repairs individual sewage treatment
86.19systems.
86.20    (l) "Local unit of government" means a township, city, or county.
86.21    (m) "Performance-based system" means a system that is designed specifically for a
86.22site and the environmental conditions on that site and designed to adequately protect the
86.23public health and the environment and provide long-term performance. At a minimum, a
86.24performance based system must ensure that applicable water quality standards are met in
86.25both ground and surface water that ultimately receive the treated wastewater.
86.26    (n) "Pumper" means a person who maintains components of individual sewage
86.27treatment systems including, but not limited to, septic, aerobic, and holding tanks.
86.28    (n) (o) "Seasonal dwelling" means a dwelling that is occupied or used for less than
86.29180 days per year and less than 120 consecutive days.
86.30    (o) (p) "Septic system tank" means any covered receptacle designed, constructed,
86.31and installed as part of an individual sewage treatment system.
86.32    (p) (q) "Site evaluator or designer" means a person who:
86.33    (1) investigates soils and site characteristics to determine suitability, limitations, and
86.34sizing requirements; and
86.35    (2) designs individual sewage treatment systems.
87.1    (q) (r) "Straight-pipe system" means a sewage disposal system that includes toilet
87.2waste and transports raw or partially settled sewage directly to a lake, a stream, a drainage
87.3system, or ground surface.

87.4    Sec. 106. Minnesota Statutes 2006, section 115.55, subdivision 2, is amended to read:
87.5    Subd. 2. Local ordinances. (a) All counties that did not adopt ordinances by
87.6May 7, 1994, or that do not have ordinances, must adopt ordinances that comply with
87.7revisions to the individual sewage treatment system rules by January 1, 1999, unless all
87.8towns and cities in the county have adopted such ordinances within two years of the final
87.9adoption by the agency. County ordinances must apply to all areas of the county other
87.10than cities or towns that have adopted ordinances that comply with this section and are
87.11as strict as the applicable county ordinances. Any ordinance adopted by a local unit of
87.12government before May 7, 1994, to regulate individual sewage treatment systems must be
87.13in compliance with the individual sewage treatment system rules by January 1, 1998.
87.14    (b) A copy of each ordinance adopted under this subdivision must be submitted to
87.15the commissioner upon adoption.
87.16    (c) A local unit of government must make available to the public upon request a
87.17written list of any differences between its ordinances and rules adopted under this section.

87.18    Sec. 107. Minnesota Statutes 2006, section 115.55, subdivision 3, is amended to read:
87.19    Subd. 3. Rules. (a) The agency shall adopt rules containing minimum standards and
87.20criteria for the design, location, installation, use, and maintenance of individual sewage
87.21treatment systems. The rules must include:
87.22    (1) how the agency will ensure compliance under subdivision 2;
87.23    (2) how local units of government shall enforce ordinances under subdivision 2,
87.24including requirements for permits and inspection programs;
87.25    (3) how the advisory committee will participate in review and implementation of
87.26the rules;
87.27    (4) provisions for alternative nonstandard systems and performance-based systems;
87.28    (5) provisions for handling and disposal of effluent;
87.29    (6) provisions for system abandonment; and
87.30    (7) procedures for variances, including the consideration of variances based on cost
87.31and variances that take into account proximity of a system to other systems.
87.32    (b) The agency shall consult with the advisory committee before adopting rules
87.33under this subdivision.
88.1    (c) Notwithstanding the repeal of the agency rule under which the commissioner
88.2has established a list of warrantied individual sewage treatment systems, the warranties
88.3for all systems so listed as of the effective date of the repeal shall continue to be valid
88.4for the remainder of the warranty period.
88.5    (d) The rules required in paragraph (a) must also address the following:
88.6    (1) a definition of redoximorphic features and other criteria that can be used by
88.7system designers and inspectors;
88.8    (2) direction on the interpretation of observed soil features that may be
88.9redoximorphic and their relation to zones of seasonal saturation; and
88.10    (3) procedures on how to resolve professional disagreements on seasonally saturated
88.11soils.
88.12These rules must be in place by March 31, 2006.

88.13    Sec. 108. Minnesota Statutes 2006, section 115.55, is amended by adding a subdivision
88.14to read:
88.15    Subd. 12. Advisory committee; county individual sewage treatment system
88.16management plan. (a) A county may adopt an individual sewage treatment system
88.17management plan that describes how the county plans on carrying out individual sewage
88.18treatment system needs. The commissioner of the Pollution Control Agency shall form an
88.19advisory committee to determine what the plans should address. The advisory committee
88.20shall be made up of representatives of the Association of Minnesota Counties, Pollution
88.21Control Agency, Board of Water and Soil Resources, Department of Health, and other
88.22public agencies or local units of government that have an interest in individual sewage
88.23treatment systems.
88.24    (b) The advisory committee shall advise the agency on the standards, management,
88.25monitoring, and reporting requirements for performance-based systems.

88.26    Sec. 109. Minnesota Statutes 2006, section 116C.92, is amended to read:
88.27116C.92 COORDINATION OF ACTIVITIES.
88.28    Subdivision 1. State coordinating organization. The Environmental Quality Board
88.29is designated the state coordinating organization for state and federal regulatory activities
88.30relating to genetically engineered organisms.
88.31    Subd. 2. Notice of nationwide action. The board shall notify interested parties if a
88.32permit to release genetically engineered wild rice is issued anywhere in the United States.
88.33For purposes of this subdivision, "interested parties" means:
88.34    (1) the state's wild rice industry;
89.1    (2) the legislature;
89.2    (3) federally recognized tribes within Minnesota; and
89.3    (4) individuals who request to be notified.

89.4    Sec. 110. Minnesota Statutes 2006, section 116C.94, subdivision 1, is amended to read:
89.5    Subdivision 1. General authority. (a) Except as provided in paragraph (b), the
89.6board shall adopt rules consistent with sections 116C.91 to 116C.96 that require an
89.7environmental assessment worksheet and otherwise comply with chapter 116D and rules
89.8adopted under it for a proposed release and a permit for a release. The board may place
89.9conditions on a permit and may deny, modify, suspend, or revoke a permit.
89.10    (b) The board shall adopt rules that require an environmental impact statement and
89.11otherwise comply with chapter 116D and rules adopted under it for a proposed release and
89.12a permit for a release of genetically engineered wild rice. The board may place conditions
89.13on the permit and may deny, modify, suspend, or revoke the permit.

89.14    Sec. 111. Minnesota Statutes 2006, section 116C.97, subdivision 2, is amended to read:
89.15    Subd. 2. Federal oversight. (a) If the board determines, upon its own volition or at
89.16the request of any person, that a federal program exists for regulating the release of certain
89.17genetically engineered organisms and the federal oversight under the program is adequate
89.18to protect human health or the environment, then any person may release such genetically
89.19engineered organisms after obtaining the necessary federal approval and without obtaining
89.20a state release permit or a significant environmental permit or complying with the other
89.21requirements of sections 116C.91 to 116C.96 and the rules of the board adopted pursuant
89.22to section 116C.94.
89.23    (b) If the board determines the federal program is adequate to meet only certain
89.24requirements of sections 116C.91 to 116C.96 and the rules of the board adopted pursuant
89.25to section 116C.94, the board may exempt such releases from those requirements.
89.26    (c) A person proposing a release for which a federal authorization is required may
89.27apply to the board for an exemption from the board's permit or to a state agency with a
89.28significant environmental permit for the proposed release for an exemption from the
89.29agency's permit. The proposer must file with the board or state agency a written request
89.30for exemption with a copy of the federal application and the information necessary to
89.31determine if there is a potential for significant environmental effects under chapter 116D
89.32and rules adopted under it. The board or state agency shall give public notice of the request
89.33in the first available issue of the EQB Monitor and shall provide an opportunity for public
89.34comment on the environmental review process consistent with chapter 116D and rules
90.1adopted under it. The board or state agency may grant the exemption if the board or state
90.2agency finds that the federal authorization issued is adequate to meet the requirements of
90.3chapter 116D and rules adopted under it and any other requirement of the board's or state
90.4agency's authority regarding the release of genetically engineered organisms. The board
90.5or state agency must grant or deny the exemption within 45 days after the receipt of the
90.6written request and the information required by the board or state agency.
90.7    (d) This subdivision does not apply to genetically engineered organisms for which
90.8an environmental impact statement is required under sections 116C.91 to 116C.96.

90.9    Sec. 112. Minnesota Statutes 2006, section 282.04, subdivision 1, is amended to read:
90.10    Subdivision 1. Timber sales; land leases and uses. (a) The county auditor may
90.11sell timber upon any tract that may be approved by the natural resources commissioner.
90.12The sale of timber shall be made for cash at not less than the appraised value determined
90.13by the county board to the highest bidder after not less than one week's published notice
90.14in an official paper within the county. Any timber offered at the public sale and not sold
90.15may thereafter be sold at private sale by the county auditor at not less than the appraised
90.16value thereof, until the time as the county board may withdraw the timber from sale. The
90.17appraised value of the timber and the forestry practices to be followed in the cutting of
90.18said timber shall be approved by the commissioner of natural resources.
90.19    (b) Payment of the full sale price of all timber sold on tax-forfeited lands shall be
90.20made in cash at the time of the timber sale, except in the case of oral or sealed bid auction
90.21sales, the down payment shall be no less than 15 percent of the appraised value, and the
90.22balance shall be paid prior to entry. In the case of auction sales that are partitioned and
90.23sold as a single sale with predetermined cutting blocks, the down payment shall be no less
90.24than 15 percent of the appraised price of the entire timber sale which may be held until the
90.25satisfactory completion of the sale or applied in whole or in part to the final cutting block.
90.26The value of each separate block must be paid in full before any cutting may begin in that
90.27block. With the permission of the county contract administrator the purchaser may enter
90.28unpaid blocks and cut necessary timber incidental to developing logging roads as may
90.29be needed to log other blocks provided that no timber may be removed from an unpaid
90.30block until separately scaled and paid for. If payment is provided as specified in this
90.31paragraph as security under paragraph (a) and no cutting has taken place on the contract,
90.32the county auditor may credit the security provided, less any down payment required for
90.33an auction sale under this paragraph, to any other contract issued to the contract holder
90.34by the county under this chapter to which the contract holder requests in writing that it
91.1be credited, provided the request and transfer is made within the same calendar year as
91.2the security was received.
91.3    (c) The county board may require final settlement on the basis of a scale of cut
91.4products sell any timber, including biomass, as appraised or scaled. Any parcels of land
91.5from which timber is to be sold by scale of cut products shall be so designated in the
91.6published notice of sale under paragraph (a), in which case the notice shall contain a
91.7description of the parcels, a statement of the estimated quantity of each species of timber,
91.8and the appraised price of each species of timber for 1,000 feet, per cord or per piece, as
91.9the case may be. In those cases any bids offered over and above the appraised prices shall
91.10be by percentage, the percent bid to be added to the appraised price of each of the different
91.11species of timber advertised on the land. The purchaser of timber from the parcels shall
91.12pay in cash at the time of sale at the rate bid for all of the timber shown in the notice of
91.13sale as estimated to be standing on the land, and in addition shall pay at the same rate for
91.14any additional amounts which the final scale shows to have been cut or was available for
91.15cutting on the land at the time of sale under the terms of the sale. Where the final scale
91.16of cut products shows that less timber was cut or was available for cutting under terms
91.17of the sale than was originally paid for, the excess payment shall be refunded from the
91.18forfeited tax sale fund upon the claim of the purchaser, to be audited and allowed by the
91.19county board as in case of other claims against the county. No timber, except hardwood
91.20pulpwood, may be removed from the parcels of land or other designated landings until
91.21scaled by a person or persons designated by the county board and approved by the
91.22commissioner of natural resources. Landings other than the parcel of land from which
91.23timber is cut may be designated for scaling by the county board by written agreement
91.24with the purchaser of the timber. The county board may, by written agreement with the
91.25purchaser and with a consumer designated by the purchaser when the timber is sold by the
91.26county auditor, and with the approval of the commissioner of natural resources, accept the
91.27consumer's scale of cut products delivered at the consumer's landing. No timber shall be
91.28removed until fully paid for in cash. Small amounts of timber not exceeding $3,000 in
91.29appraised valuation may be sold for not less than the full appraised value at private sale
91.30to individual persons without first publishing notice of sale or calling for bids, provided
91.31that in case of a sale involving a total appraised value of more than $200 the sale shall be
91.32made subject to final settlement on the basis of a scale of cut products in the manner above
91.33provided and not more than two of the sales, directly or indirectly to any individual shall
91.34be in effect at one time.
91.35    (d) As directed by the county board, the county auditor may lease tax-forfeited land
91.36to individuals, corporations or organized subdivisions of the state at public or private sale,
92.1and at the prices and under the terms as the county board may prescribe, for use as cottage
92.2and camp sites and for agricultural purposes and for the purpose of taking and removing of
92.3hay, stumpage, sand, gravel, clay, rock, marl, and black dirt from the land, and for garden
92.4sites and other temporary uses provided that no leases shall be for a period to exceed ten
92.5years; provided, further that any leases involving a consideration of more than $12,000 per
92.6year, except to an organized subdivision of the state shall first be offered at public sale in
92.7the manner provided herein for sale of timber. Upon the sale of any leased land, it shall
92.8remain subject to the lease for not to exceed one year from the beginning of the term of the
92.9lease. Any rent paid by the lessee for the portion of the term cut off by the cancellation
92.10shall be refunded from the forfeited tax sale fund upon the claim of the lessee, to be
92.11audited and allowed by the county board as in case of other claims against the county.
92.12    (e) As directed by the county board, the county auditor may lease tax-forfeited land
92.13to individuals, corporations, or organized subdivisions of the state at public or private sale,
92.14at the prices and under the terms as the county board may prescribe, for the purpose
92.15of taking and removing for use for road construction and other purposes tax-forfeited
92.16stockpiled iron-bearing material. The county auditor must determine that the material is
92.17needed and suitable for use in the construction or maintenance of a road, tailings basin,
92.18settling basin, dike, dam, bank fill, or other works on public or private property, and
92.19that the use would be in the best interests of the public. No lease shall exceed ten years.
92.20The use of a stockpile for these purposes must first be approved by the commissioner of
92.21natural resources. The request shall be deemed approved unless the requesting county
92.22is notified to the contrary by the commissioner of natural resources within six months
92.23after receipt of a request for approval for use of a stockpile. Once use of a stockpile has
92.24been approved, the county may continue to lease it for these purposes until approval is
92.25withdrawn by the commissioner of natural resources.
92.26    (f) The county auditor, with the approval of the county board is authorized to grant
92.27permits, licenses, and leases to tax-forfeited lands for the depositing of stripping, lean
92.28ores, tailings, or waste products from mines or ore milling plants, upon the conditions and
92.29for the consideration and for the period of time, not exceeding 15 years, as the county
92.30board may determine. The permits, licenses, or leases are subject to approval by the
92.31commissioner of natural resources.
92.32    (g) Any person who removes any timber from tax-forfeited land before said
92.33timber has been scaled and fully paid for as provided in this subdivision is guilty of a
92.34misdemeanor.
92.35    (h) The county auditor may, with the approval of the county board, and without first
92.36offering at public sale, grant leases, for a term not exceeding 25 years, for the removal
93.1of peat and for the production or removal of farm-grown closed-loop biomass as defined
93.2in section 216B.2424, subdivision 1, or short-rotation woody crops from tax-forfeited
93.3lands upon the terms and conditions as the county board may prescribe. Any lease for
93.4the removal of peat, farm-grown closed-loop biomass, or short-rotation woody crops
93.5from tax-forfeited lands must first be reviewed and approved by the commissioner of
93.6natural resources if the lease covers 320 or more acres. No lease for the removal of
93.7peat, farm-grown closed-loop biomass, or short-rotation woody crops shall be made by
93.8the county auditor pursuant to this section without first holding a public hearing on the
93.9auditor's intention to lease. One printed notice in a legal newspaper in the county at least
93.10ten days before the hearing, and posted notice in the courthouse at least 20 days before
93.11the hearing shall be given of the hearing.
93.12    (i) Notwithstanding any provision of paragraph (c) to the contrary, the St. Louis
93.13County auditor may, at the discretion of the county board, sell timber to the party who
93.14bids the highest price for all the several kinds of timber, as provided for sales by the
93.15commissioner of natural resources under section 90.14. Bids offered over and above the
93.16appraised price need not be applied proportionately to the appraised price of each of
93.17the different species of timber.
93.18    (j) In lieu of any payment or deposit required in paragraph (b), as directed by the
93.19county board and under terms set by the county board, the county auditor may accept an
93.20irrevocable bank letter of credit in the amount equal to the amount otherwise determined
93.21in paragraph (b). If an irrevocable bank letter of credit is provided under this paragraph,
93.22at the written request of the purchaser, the county may periodically allow the bank letter
93.23of credit to be reduced by an amount proportionate to the value of timber that has been
93.24harvested and for which the county has received payment. The remaining amount of
93.25the bank letter of credit after a reduction under this paragraph must not be less than 20
93.26percent of the value of the timber purchased. If an irrevocable bank letter of credit or
93.27cash deposit is provided for the down payment required in paragraph (b), and no cutting
93.28of timber has taken place on the contract for which a letter of credit has been provided,
93.29the county may allow the transfer of the letter of credit to any other contract issued to the
93.30contract holder by the county under this chapter to which the contract holder requests in
93.31writing that it be credited.

93.32    Sec. 113. Minnesota Statutes 2006, section 394.23, is amended to read:
93.33394.23 COMPREHENSIVE PLAN.
93.34    The board has the power and authority to prepare and adopt by ordinance, a
93.35comprehensive plan. A comprehensive plan or plans when adopted by ordinance must be
94.1the basis for official controls adopted under the provisions of sections 394.21 to 394.37.
94.2The commissioner of natural resources must provide the natural heritage data from the
94.3county biological survey, if available, to each county for use in the comprehensive plan.

94.4    Sec. 114. Minnesota Statutes 2006, section 462.353, subdivision 2, is amended to read:
94.5    Subd. 2. Studies and reports. In exercising its powers under subdivision 1, a
94.6municipality may collect and analyze data, prepare maps, charts, tables, and other
94.7illustrations and displays, and conduct necessary studies. A municipality may publicize its
94.8purposes, suggestions, and findings on planning matters, may distribute reports thereon,
94.9and may advise the public on the planning matters within the scope of its duties and
94.10objectives. The commissioner of natural resources must provide the natural heritage
94.11data from the county biological survey, if available, to each municipality for use in the
94.12comprehensive plan.

94.13    Sec. 115. Laws 1998, chapter 389, article 16, section 31, subdivision 4, as amended
94.14by Laws 1999, chapter 180, section 3, and Laws 2001, chapter 164, section 5, and Laws
94.152005, First Special Session chapter 1, article 2, section 149, is amended to read:
94.16    Subd. 4. County environmental trust fund. Notwithstanding the provisions of
94.17Minnesota Statutes, chapter 282, and any other law relating to the apportionment of
94.18proceeds from the sale of tax-forfeited land, and except as otherwise provided in this
94.19section, a county board must deposit the money received from the sale of land under
94.20subdivision 3 into an environmental trust fund established by the county under this
94.21subdivision. The county board may: (1) deposit part or all of the environmental trust fund
94.22money as provided in Minnesota Statutes, chapter 118A; or (2) enter into an agreement
94.23with the State Board of Investment to invest all or part of the money in investments
94.24under Minnesota Statutes, section 11A.24, subdivisions 1 to 5, on behalf of the county.
94.25The following may be withheld by a county board and are not required to be deposited
94.26into an environmental trust fund: the costs of appraisal, abstracts, and surveys; money
94.27received from a sale which is attributable to land owned by a county in fee; amounts paid
94.28to lessees for improvements; amounts paid to acquire land which is included in a county
94.29plan for exchange and is conveyed to the state in the exchange, including the purchase
94.30price, appraisal, abstract, survey, and closing costs; and the costs of sale to lessees or other
94.31parties, including the costs of advertising, realtors, and closing services. If the proceeds
94.32from the sale of tax-forfeited land in a county are $250,000 or more, the amount the
94.33county may spend from the fund each calendar year may not exceed 5-1/2 percent of the
94.34market value of the fund on January 1 of the preceding calendar year, and the county board
95.1may spend money from the fund only for purposes related to the improvement of natural
95.2resources. To the extent money received from the sale is attributable to tax-forfeited
95.3land from another county, the money must be deposited in an environmental trust fund
95.4established under this section by that county board. The county board must not delegate
95.5to an appointed official or any other person any decision required or permitted to be
95.6made under this subdivision.

95.7    Sec. 116. Laws 2003, chapter 128, article 1, section 169, is amended to read:
95.8    Sec. 169. CONTINUOUS TRAIL DESIGNATION.
95.9    (a) The commissioner of natural resources shall locate, plan, design, map, construct,
95.10designate, and sign a new trail for use by all-terrain vehicles and off-highway motorcycles
95.11of not less than 70 continuous miles in length on any land owned by the state or in
95.12cooperation with any county on land owned by that county or on a combination of any of
95.13these lands. This new trail shall be ready for use by April 1, 2007 June 30, 2009.
95.14    (b) All funding for this new trail shall come from the all-terrain vehicle dedicated
95.15account and is appropriated each year as needed.
95.16    (c) This new trail shall have at least two areas of access complete with appropriate
95.17parking for vehicles and trailers and enough room for loading and unloading all-terrain
95.18vehicles. Some existing trails, that are strictly all-terrain vehicle trails, and are not
95.19inventoried forest roads, may be incorporated into the design of this new all-terrain vehicle
95.20trail. This new trail may be of a continuous loop design and shall provide for spurs to other
95.21all-terrain vehicle trails as long as those spurs do not count toward the 70 continuous miles
95.22of this new all-terrain vehicle trail. Four rest areas shall be provided along the way.

95.23    Sec. 117. Laws 2006, chapter 236, article 1, section 21, is amended to read:
95.24    Sec. 21. EXCHANGE OF TAX-FORFEITED LAND; PRIVATE SALE;
95.25ITASCA COUNTY.
95.26    (a) For the purpose of a land exchange for use in connection with a proposed
95.27steel mill in Itasca County referenced in Laws 1999, chapter 240, article 1, section 8,
95.28subdivision 3, title examination and approval of the land described in paragraph (b)
95.29shall be undertaken as a condition of exchange of the land for class B land, and shall be
95.30governed by Minnesota Statutes, section 94.344, subdivisions 9 and 10, and the provisions
95.31of this section. Notwithstanding the evidence of title requirements in Minnesota Statutes,
95.32section 94.344, subdivisions 9 and 10, the county attorney shall examine one or more title
95.33reports or title insurance commitments prepared or underwritten by a title insurer licensed
95.34to conduct title insurance business in this state, regardless of whether abstracts were
96.1created or updated in the preparation of the title reports or commitments. The opinion of
96.2the county attorney, and approval by the attorney general, shall be based on those title
96.3reports or commitments.
96.4    (b) The land subject to this section is located in Itasca County and is described as:
96.5    (1) Sections 3, 4, 7, 10, 14, 15, 16, 17, 18, 20, 21, 22, 23, 26, 28, and 29, Township
96.656 North, Range 22 West;
96.7    (2) Sections 3, 4, 9, 10, 13, and 14, Township 56 North, Range 23 West;
96.8    (3) Section 30, Township 57 North, Range 22 West; and
96.9    (4) Sections 25, 26, 34, 35, and 36, Township 57 North, Range 23 West.
96.10    (c) Riparian land given in exchange by Itasca County for the purpose of the steel
96.11mill referenced in paragraph (a), is exempt from the restrictions imposed by Minnesota
96.12Statutes, section 94.342, subdivision 3.
96.13    (d) Notwithstanding Minnesota Statutes, sections 92.45 and 282.018, subdivision 1,
96.14and the public sale provisions of Minnesota Statutes, chapter 282, Itasca County may sell,
96.15by private sale, any land received in exchange for the purpose of the steel mill referenced
96.16in paragraph (a), under the remaining provisions of Minnesota Statutes, chapter 282. The
96.17sale must be in a form approved by the attorney general.
96.18    (e) Notwithstanding Minnesota Statutes, section 284.28, subdivision 8, or any other
96.19law to the contrary, land acquired through an exchange under this section is exempt from
96.20payment of three percent of the sales price required to be collected by the county auditor
96.21at the time of sale for deposit in the state treasury.

96.22    Sec. 118. VOLUNTARY TERMINATION OF TIMBER SALE PERMITS.
96.23    (a) Notwithstanding Minnesota Statutes, sections 90.161, 90.173, and 90.211, or
96.24other law to the contrary, the commissioner of natural resources shall, in the case of
96.25nontrust land, terminate the permit for an eligible sale of timber without penalty according
96.26to this section and upon request of the permit holder. In the case of a permit relating
96.27to trust land, the commissioner shall terminate the permit for an eligible sale of timber
96.28according to this section only if termination of the permit would secure the maximum
96.29long-term economic return from the land consistent with the fiduciary responsibilities
96.30imposed by law in regard to the trust lands.
96.31    (b) An "eligible sale" means a sale for timber:
96.32    (1) the permit for which was issued on or after October 1, 2004, but before March
96.3331, 2006;
96.34    (2) that contains aspen as the predominant timber species;
96.35    (3) for which the aspen was sold for $40 per cord or more; and
97.1    (4) for which no harvest activities or activities incidental to harvest have occurred.
97.2    (c) The maximum amount available for voluntary turn back under this section is
97.37,500 cords of all species for each permittee.
97.4    (d) In the case of a 100 percent secured sale, the permittee may choose to be released
97.5from the security of any permit consistent with paragraph (b), except that the permittee
97.6must pay 15 percent of the appraised value of the permit, plus eight percent interest from
97.7date of purchase to date of conversion under this paragraph, in cash, to the commissioner.
97.8    (e) In the case of any sale, including a sale under paragraph (d), for which the
97.9commissioner has received a 15 percent down payment and that meets the criteria in
97.10paragraph (b), the permit holder may request a credit equal to two-thirds of the down
97.11payment. Amounts credited to permittees under this paragraph must first be applied to
97.12any existing sales that remain in the permittee's account and may then be used toward
97.13future timber purchases. Credits under this paragraph expire two years after the effective
97.14date of the permit termination.
97.15    (f) All permit terminations under this section must be completed by December 31,
97.162007. The commissioner of natural resources must proceed expeditiously to reoffer for
97.17sale any timber subject of a turn back under this section.
97.18EFFECTIVE DATE.This section is effective the day following final enactment.

97.19    Sec. 119. FOREST PROTECTION PLAN.
97.20    Subdivision 1. Task force plan. (a) The Forest Resources Council shall create a task
97.21force to develop a plan to prepare the state for early detection, appropriate response, and
97.22educating the public regarding invasive pests that threaten the tree cover of Minnesota. The
97.23task force also may give advice on how to best promote forest diversity and the planting of
97.24trees to address environmental challenges with the state. The plan must address:
97.25    (1) current efforts to address forest pests, what geographic areas and property types
97.26have regular and active monitoring of forest pests, and gaps in the adequacy of the current
97.27oversight and detection system;
97.28    (2) how the state may establish a flexible, yet comprehensive, system of tree
97.29monitoring so that trees in all areas of Minnesota will be covered by active early pest
97.30detection efforts. In analyzing this, the task force shall consider possible roles for certified
97.31tree inspectors, volunteers, and state and local government;
97.32    (3) current storm damage response and how that might be improved for forest health
97.33and to minimize vulnerability to pest infection;
98.1    (4) the adequacy of the current response plan, the clarity of state and local roles and
98.2responsibilities, emergency communication plans, and the availability of needed funding
98.3for pest outbreak response and how to scale it up should a major outbreak be detected;
98.4    (5) recommendations for clear delineation of state and local roles in notifying
98.5property owners and enforcing remediation actions;
98.6    (6) the best approach to broad public education on the threats of new invasive tree
98.7pests, the expected response to an outbreak, the value of trees to our environment, and the
98.8promotion of a more diversified tree cover statewide; and
98.9    (7) an assessment of funding needs and options for the above activities and possible
98.10funding approaches to promote the planting of a more diverse tree cover, along with
98.11assisting in the costs of tree removal and replacement for public entities and property
98.12owners.
98.13    (b) A report and recommendations to the legislative committees with jurisdiction
98.14over natural resources and to the Legislative-Citizen Commission on Minnesota Resources
98.15shall be due on December 15, 2007.
98.16    Subd. 2. Task force creation. The chair of the Forest Resources Council and the
98.17commissioners of agriculture and natural resources shall jointly appoint the members
98.18of the task force, which shall include up to 15 members with representatives of the
98.19University of Minnesota; city, township, and county associations; commercial timber
98.20and forest industries of varying size; nursery and landscape architecture; arborists and
98.21certified tree inspectors; nonprofit organizations engaged in tree advocacy, planting, and
98.22education; master gardeners; and the Minnesota Shade Tree Advisory Council and a tribal
98.23representative recommended by the Indian Affairs Council.
98.24    Representatives of the Departments of Agriculture and Natural Resources shall serve
98.25as ex-officio members and assist the task force in its work.

98.26    Sec. 120. ENDOCRINE DISRUPTOR REPORT.
98.27    The commissioner of the Pollution Control Agency shall prepare a report on
98.28strategies to prevent the entry of endocrine disruptors into waters of the state. The report
98.29must include an estimate for each strategy of the proportion of endocrine disruptors that
98.30are prevented from entering the waters of the state. The commissioner shall submit the
98.31report to the house and senate committees having jurisdiction over environment and
98.32natural resources policy and finance by January 15, 2008.

98.33    Sec. 121. EASEMENT REPORT REQUIRED.
99.1    By January 1, 2008, the commissioner of natural resources must report to the
99.2house and senate committees with jurisdiction over environment and natural resources
99.3finance with proposed minimum legal and conservation standards that could be applied
99.4to conservation easements acquired with public money.

99.5    Sec. 122. TAX-FORFEITED LANDS LEASE; ITASCA COUNTY.
99.6    Notwithstanding Minnesota Statutes, section 282.04, or other law to the contrary,
99.7the Itasca County auditor may lease tax-forfeited land to Minnesota Steel for a period of
99.820 years, for use as a tailings basin and buffer area. A lease entered under this section
99.9is renewable.

99.10    Sec. 123. WILD RICE STUDY.
99.11    By February 15, 2008, the commissioner of natural resources must prepare a study
99.12for natural wild rice that includes:
99.13    (1) the current location and estimated acreage and area of natural stands;
99.14    (2) potential threats to natural stands, including, but not limited to, development
99.15pressure, water levels, pollution, invasive species, and genetically engineered strains; and
99.16    (3) recommendations to the house and senate committees with jurisdiction over
99.17natural resources on protecting and increasing natural wild rice stands in the state.
99.18    In developing the study, the commissioner must contact and ask for comments
99.19from the state's wild rice industry, the commissioner of agriculture, local officials with
99.20significant areas of wild rice within their jurisdictions, tribal leaders within affected
99.21federally recognized tribes, and interested citizens.
99.22EFFECTIVE DATE.This section is effective the day following final enactment.

99.23    Sec. 124. CONSTRUCTION.
99.24    Nothing in sections 109, 110, 111, and 123 affects, alters, or modifies the authorities,
99.25responsibilities, obligations, or powers of the state or any political subdivision thereof or
99.26any federally recognized tribe.

99.27    Sec. 125. SEPTIC BEST PRACTICES ASSISTANCE.
99.28    The commissioner of the Pollution Control Agency shall establish a database of
99.29best practices regarding the installation, management, and maintenance of individual
99.30sewage treatment systems. The database must be made available to any interested public
99.31or private party.

100.1    Sec. 126. RULEMAKING.
100.2    Within 90 days of the effective date of this section, the Board of Water and Soil
100.3Resources shall adopt rules that amend Minnesota Rules, chapter 8420, to incorporate
100.4statute changes and to address the related wetland exemption provisions in Minnesota
100.5Rules, parts 8420.0115 to 8420.0210, and the wetland replacement and banking provisions
100.6in Minnesota Rules, parts 8420.0500 to 8420.0760. These rules are exempt from the
100.7rulemaking provisions of Minnesota Statutes, chapter 14, except that Minnesota Statutes,
100.8section 14.386, applies and the proposed rules must be submitted to the senate and house
100.9committees having jurisdiction over environment and natural resources at least 30 days
100.10prior to being published in the State Register. The amended rules are effective for two
100.11years from the date of publication in the State Register unless they are superseded by
100.12permanent rules.
100.13EFFECTIVE DATE.This section is effective the day following final enactment.

100.14    Sec. 127. GREENLEAF LAKE STATE RECREATION AREA.
100.15    Subdivision 1. [85.013] [Subd. 11b.] Greenleaf Lake State Recreation Area.
100.16    In addition to the lands designated under Laws 2003, First Special Session chapter 13,
100.17section 6, as amended by Laws 2004, chapter 262, article 2, section 10, the following lands
100.18are added to the Greenleaf Lake State Recreation Area:
100.19(1) the West 1104.98 feet of Government Lot 4, Section 21, Township 118 North, Range
100.2030 West, Meeker County, Minnesota; and
100.21(2) that part of Government Lot 7 of Section 20, Township 118, Range 30, which lies
100.22south of the following described line and its extensions: said line commencing at the
100.23southwest corner of said Section 20; thence on an assumed bearing of North 08 degrees
100.2422 minutes 44 seconds West, along the west line of said section, a distance of 1350.00
100.25feet to the point of beginning of the line to be described; thence North 88 degrees 28
100.26minutes 35 seconds East, a distance of 699 feet to the shoreline of Greenleaf Lake and
100.27said line terminating thereat; and Government Lot 8 of said section except the following
100.28described tract: said tract being that part of said Government Lot 8 lying east of the
100.29following described line: said line commencing at the southwest corner of said section;
100.30thence easterly, along the south line of said section, a distance of 734.60 feet to the point
100.31of beginning of the line to be described; thence north at a right angle, a distance of 100
100.32feet and said line terminating thereat.
100.33    Subd. 2. Management. (a) The commissioner of natural resources, in consultation
100.34with local elected officials and citizens of Meeker County and other interested
101.1stakeholders, shall develop a comprehensive management plan that provides for
101.2opportunities for outdoor recreation, as defined under Minnesota Statutes, section 86A.03,
101.3subdivision 3, in Greenleaf Lake State Recreation Area. The completed management plan
101.4shall serve as the master plan for purposes of Minnesota Statutes, section 86A.09.
101.5    (b) The redesignation of Greenleaf Lake State Park to a state recreation area under
101.6this act does not take effect until the first parcel of land is purchased by the commissioner
101.7for the state recreation area.

101.8    Sec. 128. VERMILLION HIGHLANDS WILDLIFE MANAGEMENT AREA.
101.9    (a) The following area is established and designated as the Vermillion Highlands
101.10Wildlife Management Area, subject to the special permitted uses authorized in this section:
101.11    The approximately 2,840 acres owned by the University of Minnesota lying within
101.12the area legally described as approximately the southerly 3/4 of the Southwest 1/4 of
101.13Section 1, the Southeast 1/4 of Section 2, the East 1/2 of Section 10, Section 11, the
101.14West 1/2 of Section 12, Section 13, and Section 14, all in Township 114 North, Range
101.1519 West, Dakota County.
101.16    (b) Notwithstanding Minnesota Statutes, section 86A.05, subdivision 8, paragraph
101.17(c), permitted uses in the Vermillion Highlands Wildlife Management Area include:
101.18    (1) education, outreach, and agriculture with the intent to eventually phase out
101.19agriculture leases and plant and restore native prairie;
101.20    (2) research by the University of Minnesota or other permitted researchers;
101.21    (3) hiking, hunting, fishing, trapping, and other compatible wildlife-related
101.22recreation of a natural outdoors experience, without constructing new hard surface trails
101.23or roads, and supporting management and improvements;
101.24    (4) designated trails for hiking, horseback riding, biking, and cross-country skiing
101.25and necessary trailhead support with minimal impact on the permitted uses in clause (3);
101.26    (5) shooting sports facilities for sporting clays, skeet, trapshooting, and rifle and
101.27pistol shooting, including sanctioned events and training for responsible handling and
101.28use of firearms;
101.29    (6) grant-in-aid snowmobile trails; and
101.30    (7) leases for small-scale farms to market vegetable farming.
101.31    (c) With the concurrence of representatives of the University of Minnesota and
101.32Dakota County, the commissioner of natural resources may, by posting or rule, restrict the
101.33permitted uses as follows:
102.1    (1) temporarily close areas or trails, by posting at the access points, to facilitate
102.2hunting. When temporarily closing trails under this clause, the commissioner shall avoid
102.3closing all trail loops simultaneously whenever practical; or
102.4    (2) limit other permitted uses to accommodate hunting and trapping after providing
102.5advance public notice. Research conducted by the university may not be limited unless
102.6mutually agreed by the commissioner and the University of Minnesota.
102.7    (d) Road maintenance within the wildlife management area shall be minimized, with
102.8the intent to abandon interior roads when no longer needed for traditional agriculture
102.9purposes.
102.10    (e) Money collected on leases from lands within the wildlife management area
102.11must be kept in a separate account and spent within the wildlife management area under
102.12direction of the representatives listed in paragraph (c). $200,000 of this money may be
102.13transferred to the commissioner of natural resources for a master planning process and
102.14resource inventory of the land identified in Minnesota Statutes, section 137.50, subdivision
102.156, in order to provide needed prairie and wetland restoration. The commissioner must work
102.16with affected officials from the University of Minnesota and Dakota County to complete
102.17these requirements and inform landowners and lessees about the planning process.
102.18    (f) Notwithstanding Minnesota Statutes, sections 97A.061 and 477A.11, the state
102.19of Minnesota shall not provide payments in lieu of taxes for the lands described in
102.20paragraph (a).

102.21    Sec. 129. STRAND'S STATE ISLAND.
102.22    Notwithstanding Minnesota Statutes, section 83A.02, the commissioner of natural
102.23resources shall change the name of Big Island in Pelican Lake in St. Louis County
102.24to Strand's State Island.

102.25    Sec. 130. REPEALER.
102.26(a) Minnesota Statutes 2006, sections 18G.16; and 89.51, subdivision 8, are repealed.
102.27(b) Minnesota Statutes 2006, section 89A.11, is repealed effective July 1, 2007.
102.28(c) Minnesota Statutes 2006, section 103G.2241, subdivision 8, is repealed the
102.29day following final enactment.
102.30(d) Minnesota Statutes 2006, section 85.012, subdivision 24b, is repealed.

102.31ARTICLE 3
102.32SCIENCE MUSEUM AND STATE ZOO

102.33
Section 1. SUMMARY OF APPROPRIATIONS.
103.1    The amounts shown in this section summarize direct appropriations by fund made
103.2in this article.
103.3
2008
2009
Total
103.4
General
$
8,313,000
$
8,440,000
$
16,753,000
103.5
Natural Resources
137,000
138,000
275,000
103.6
Total
$
8,450,000
$
8,578,000
$
17,028,000

103.7
103.8
Sec. 2. SCIENCE MUSEUM OF
MINNESOTA
$
1,250,000
$
1,250,000
103.9The base budget for the Science Museum
103.10of Minnesota is $1,000,000 each year in the
103.112010-2011 biennium.

103.12
Sec. 3. ZOOLOGICAL BOARD
$
7,200,000
$
7,328,000
103.13
Appropriations by Fund
103.14
2008
2009
103.15
General
7,063,000
7,190,000
103.16
Natural Resources
137,000
138,000
103.17$137,000 the first year and $138,000 the
103.18second year are from the natural resources
103.19fund from the revenue deposited under
103.20Minnesota Statutes, section 297A.94,
103.21paragraph (e), clause (5). This is a onetime
103.22appropriation.
103.23The general fund base budget for the
103.24Zoological Board is $6,940,000 each year in
103.25the 2010-2011 biennium.

103.26ARTICLE 4
103.27ENERGY APPROPRIATIONS

103.28
Section 1. SUMMARY OF APPROPRIATIONS.
103.29    The amounts shown in this section summarize direct appropriations, by fund, made
103.30in this article.
103.31
2008
2009
Total
103.32
General
$
51,752,000
$
33,542,000
$
85,294,000
103.33
Petroleum Tank Cleanup
1,084,000
1,084,000
2,168,000
103.34
Workers' Compensation
835,000
835,000
1,670,000
104.1
Special Revenue
5,600,000
4,600,000
10,200,000
104.2
Total
$
59,271,000
$
40,061,000
$
99,332,000

104.3
Sec. 2. ENERGY FINANCE APPROPRIATIONS.
104.4    The sums shown in the columns marked "Appropriations" are appropriated to the
104.5agencies and for the purposes specified in this article. The appropriations are from the
104.6general fund, or another named fund, and are available for the fiscal years indicated
104.7for each purpose. The figures "2008" and "2009" used in this article mean that the
104.8appropriations listed under them are available for the fiscal year ending June 30, 2008, or
104.9June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
104.10year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal
104.11year ending June 30, 2007, are effective the day following final enactment.
104.12
APPROPRIATIONS
104.13
Available for the Year
104.14
Ending June 30
104.15
2008
2009

104.16
Sec. 3. DEPARTMENT OF COMMERCE.
104.17
Subdivision 1.Total Appropriation
$
51,721,000
$
33,695,000
104.18
Appropriations by Fund
104.19
2008
2009
104.20
General
44,202,000
27,176,000
104.21
Petroleum Cleanup
1,084,000
1,084,000
104.22
104.23
Workers'
Compensation
835,000
835,000
104.24
Special Revenue
5,600,000
4,600,000
104.25The amounts that may be spent for each
104.26purpose are specified in the following
104.27subdivisions.
104.28
Subd. 2.Financial Examinations
6,432,000
6,519,000
104.29
104.30
Subd. 3.Petroleum Tank Release Cleanup
Board
1,084,000
1,084,000
104.31This appropriation is from the petroleum
104.32tank release cleanup fund.
104.33
Subd. 4.Administrative Services
4,477,000
4,540,000
104.34
Subd. 5.Market Assurance
6,902,000
6,999,000
105.1
Appropriations by Fund
105.2
General
6,067,000
6,164,000
105.3
105.4
Workers'
Compensation
835,000
835,000
105.5
Subd. 6.Energy and Telecommunications
32,726,000
14,453,000
105.6
Appropriations by Fund
105.7
General
27,226,000
9,953,000
105.8
Special Revenue
5,500,000
4,500,000
105.9$2,000,000 the first year and $2,000,000 the
105.10second year are for E85 cost-share grants.
105.11Notwithstanding Minnesota Statutes, section
105.1216A.28, this appropriation is available
105.13until expended. The base appropriation for
105.14these grants is $2,000,000 each year in the
105.152010-2011 biennium. Funding for these
105.16grants ends June 30, 2011. Up to ten percent
105.17of the funds may be used for cost-share grants
105.18for pumps dispensing fuel that contains at
105.19least ten percent biodiesel fuel by volume.
105.20The utility subject to Minnesota Statutes,
105.21section 116C.779, shall transfer $2,500,000
105.22in fiscal year 2008 and $2,500,000 in fiscal
105.23year 2009 to the Department of Commerce
105.24on a schedule to be determined by the
105.25commissioner of commerce. The funds must
105.26be deposited in the special revenue fund
105.27and are appropriated to the commissioner
105.28for grants to promote renewable energy
105.29projects and community energy outreach and
105.30assistance. Of the amounts identified:
105.31(1) $500,000 each year for capital grants for
105.32on-farm biogas recovery facilities; eligible
105.33projects will be selected in coordination
105.34with the Department of Agriculture and the
105.35Pollution Control Agency;
106.1(2) $500,000 each year to provide financial
106.2rebates to new solar electricity projects;
106.3(3) $500,000 each year for continued funding
106.4of community energy technical assistance
106.5and outreach on renewable energy and
106.6energy efficiency, as described in article 6,
106.7section 13; and
106.8(4) $1,000,000 each year for technical
106.9analysis and demonstration funding for
106.10automotive technology projects, with a
106.11special focus on plug-in hybrid electric
106.12vehicles.
106.13The utility subject to Minnesota Statutes,
106.14section 116C.779, shall transfer $3,000,000
106.15in fiscal year 2008 and $2,000,000 in fiscal
106.16year 2009 to the Department of Commerce
106.17on a schedule to be determined by the
106.18commissioner of commerce. The funds must
106.19be deposited in the special revenue fund and
106.20are appropriated to the commissioner for
106.21grants to provide competitive, cost-share
106.22grants to fund renewable energy research in
106.23Minnesota. These grants must be awarded
106.24by a three-member panel made up of the
106.25commissioners of commerce, pollution
106.26control, and agriculture, or their designees.
106.27Grant applications must be ranked and grants
106.28issued according to how well the applications
106.29meet state energy policy research goals
106.30established by the commissioners, the quality
106.31and experience of the research teams, the
106.32cross-interdisciplinary and cross-institutional
106.33nature of the research teams, and the ability
106.34of the research team to leverage nonstate
106.35funds.
107.1$3,000,000 the second year is for a grant to
107.2the Board of Regents of the University of
107.3Minnesota for the Initiative for Renewable
107.4Energy and the Environment. The grant
107.5is for the purposes set forth in Minnesota
107.6Statutes, section 216B.241, subdivision 6.
107.7The appropriation is available until spent.
107.8The base budget for this grant to the Board
107.9of Regents of the University of Minnesota
107.10for the Initiative for Renewable Energy and
107.11the Environment is $5,000,000 each year in
107.12the 2010-2011 fiscal biennium.
107.13As a condition of this grant, beginning in
107.14the 2010-2011 biennium, the Initiative for
107.15Renewable Energy and the Environment
107.16must set aside at least 15 percent of the
107.17funds received annually under the grant for
107.18qualified projects conducted at a rural campus
107.19or experiment station. Any amount of the
107.20set aside funds that has not been awarded to
107.21a rural campus or experiment station at the
107.22end of the fiscal year must revert back to the
107.23initiative for its exclusive use.
107.24$10,000,000 the first year is for the renewable
107.25hydrogen initiative in Minnesota Statutes,
107.26section 216B.813, to fund the competitive
107.27grant program included in that section. The
107.28commissioner may use up to two percent of
107.29the competitive grant program appropriation
107.30for grant administration and to develop and
107.31implement the renewable hydrogen road
107.32map. This is a onetime appropriation and is
107.33available until expended.
107.34$3,100,000 the first year is for deposit in the
107.35rural wind energy development revolving
108.1loan fund under Minnesota Statutes, section
108.2216C.39. This appropriation does not cancel.
108.3This is a onetime appropriation.
108.4$1,000,000 the first year and $1,000,000 the
108.5second year are for a grant to the Center for
108.6Rural Policy and Development for the rural
108.7wind energy development program in article
108.86, section 21. This is a onetime appropriation
108.9and is available until expended.
108.10$50,000 the first year is a onetime
108.11appropriation for a comprehensive technical,
108.12economic, and environmental analysis of the
108.13benefits to be derived from greater use in this
108.14state of geothermal heat pump systems for
108.15heating and cooling air and heating water.
108.16The analysis must:
108.17(1) estimate the extent of geothermal heat
108.18pump systems currently installed in this state
108.19in residential, commercial, and institutional
108.20buildings;
108.21(2) estimate energy and economic savings of
108.22geothermal heat pump systems in comparison
108.23with fossil fuel-based heating and cooling
108.24systems, including electricity use, on a
108.25capital cost and life-cycle cost basis, for both
108.26newly constructed and retrofitted residential,
108.27commercial, and institutional buildings;
108.28(3) compare the emission of pollutants and
108.29greenhouse gases from geothermal heat
108.30pump systems and fossil fuel-based heating
108.31and cooling systems;
108.32(4) identify financial assistance available
108.33from state and federal sources and Minnesota
108.34utilities to defray the costs of installing
108.35geothermal heat pump systems;
109.1(5) identify Minnesota firms currently
109.2manufacturing or installing the physical
109.3components of geothermal heat pump
109.4systems and estimate the economic
109.5development potential in this state if demand
109.6for such systems increases significantly;
109.7(6) identify the barriers to more widespread
109.8adoption of geothermal heat pump systems in
109.9this state and suggest strategies to overcome
109.10those barriers; and
109.11(7) make recommendations for legislative
109.12action.
109.13Not later than March 15, 2008, the
109.14commissioner shall submit the results of the
109.15analysis in a report to the chairs of the senate
109.16and house of representatives committees
109.17with primary jurisdiction over energy policy.
109.18$45,000 the first year is a onetime
109.19appropriation for a grant to Linden Hills
109.20Power and Light for preliminary engineering
109.21design work and other technical and legal
109.22services required for a community digester
109.23and neighborhood district heating and
109.24cooling system demonstration project in the
109.25Linden Hills neighborhood of Minneapolis.
109.26Funds may be expended upon a determination
109.27by the commissioner of commerce that the
109.28project is technically and economically
109.29feasible. A portion of the appropriation
109.30may be used to expand the scope of the
109.31project feasibility study to include portions
109.32of adjacent communities including St. Louis
109.33Park and Edina.
109.34$3,000,000 the first year is for the purpose
109.35of the propane prepurchase program under
110.1Minnesota Statutes, section 216B.0951. This
110.2is a onetime appropriation and is available
110.3for the biennium.
110.4$4,000,000 the first year is for a onetime
110.5grant to the St. Paul Port Authority for
110.6environmental review and permitting,
110.7preliminary engineering, and development of
110.8a steam-producing facility to be located in
110.9St. Paul using fuels consistent with eligible
110.10energy technologies as defined in Minnesota
110.11Statutes, section 216B.243, subdivision 3a.
110.12Grant funds for the project may only
110.13be expended when the commissioner of
110.14commerce has reviewed and approved a
110.15project plan that includes the following
110.16elements:
110.17(i) total project cost estimates;
110.18(ii) cost estimates for project design and
110.19engineering tasks;
110.20(iii) a preliminary plan for fuel source
110.21procurement from a renewable energy source
110.22as defined in Minnesota Statutes, section
110.23216B.243, subdivision 3a; and
110.24(iv) a preliminary financing plan for the
110.25entire project.
110.26$150,000 the first year is appropriated to the
110.27commissioner of commerce for grants for
110.28demonstration projects of electric vehicles
110.29with advanced transmission technologies
110.30incorporating, if feasible, batteries,
110.31converters, and other components developed
110.32in Minnesota. Funds may be expended
110.33under the grants only if grantees enter into
110.34agreements specifying that commercial
111.1production of these vehicles and components
111.2will, to the extent possible, take place in
111.3Minnesota.
111.4
111.5
Subd. 7.Telecommunications Access
Minnesota
100,000
100,000
111.6$100,000 the first year and $100,000
111.7the second year are appropriated to the
111.8commissioner of commerce for transfer
111.9to the commissioner of human services to
111.10supplement the ongoing operational expenses
111.11of the Minnesota Commission Serving
111.12Deaf and Hard-of-Hearing People. This
111.13appropriation is from the telecommunication
111.14access Minnesota fund, and is added to the
111.15commission's base.

111.16
Sec. 4. PUBLIC UTILITIES COMMISSION
$
5,315,000
$
5,366,000

111.17
111.18
Sec. 5. DEPARTMENT OF NATURAL
RESOURCES
$
535,000
$
0
111.19$475,000 the first year is a onetime
111.20appropriation for terrestrial and geologic
111.21carbon sequestration reports and studies in
111.22article 7. Of this amount, the commissioner
111.23shall make payments of $385,000 to the
111.24Board of Regents of the University of
111.25Minnesota for the purposes of terrestrial
111.26carbon sequestration activities, and $90,000
111.27to the Minnesota Geological Survey for the
111.28purposes of geologic carbon sequestration
111.29assessment.
111.30$60,000 the first year is a onetime
111.31appropriation to the commissioner of natural
111.32resources to conduct a feasibility study
111.33in conjunction with U.S. Army Corps of
111.34Engineers on the foundation and hydraulics
112.1of the Rapidan Dam in Blue Earth County.
112.2This appropriation must be equally matched
112.3by Blue Earth County, and is available until
112.4expended.

112.5
Sec. 6. POLLUTION CONTROL AGENCY
$
700,000
$
0
112.6$400,000 the first year is a onetime
112.7appropriation for a grant to the Koochiching
112.8Economic Development Authority for
112.9a feasibility study for a plasma torch
112.10gasification facility that converts municipal
112.11solid waste into energy and slag.
112.12$300,000 the first year is for the biomass
112.13gasification facilities air emissions study for
112.14the purpose of fully characterizing the air
112.15emissions exerted from biomass gasification
112.16facilities across a range of feedstocks. This
112.17is a onetime appropriation.

112.18
Sec. 7. DEPARTMENT OF HEALTH
$
1,000,000
$
1,000,000
112.19$1,000,000 the first year and $1,000,000
112.20the second year are appropriated to the
112.21commissioner of health for grants for lead
112.22environmental risk assessment conducted
112.23by local units of government, as required
112.24under Minnesota Statutes, section 144.9504,
112.25subdivision 2, and lead cleanup. Of
112.26these amounts, $500,000 the first year
112.27and $500,000 the second year must be
112.28awarded to the federally designated nonprofit
112.29organization operating the Clear Corps
112.30program. This is a onetime appropriation.

113.1ARTICLE 5
113.2COMMERCE

113.3    Section 1. Minnesota Statutes 2006, section 13.712, is amended by adding a
113.4subdivision to read:
113.5    Subd. 3. Vehicle protection product warrantors. Financial information provided
113.6to the commissioner of commerce by vehicle protection product warrantors is classified
113.7under section 59C.05, subdivision 3.
113.8EFFECTIVE DATE.This section is effective January 1, 2008.

113.9    Sec. 2. Minnesota Statutes 2006, section 45.011, subdivision 1, is amended to read:
113.10    Subdivision 1. Scope. As used in chapters 45 to 83, 155A, 332, 332A, 345, and
113.11359, and sections 325D.30 to 325D.42, 326.83 to 326.991, and 386.61 to 386.78, unless
113.12the context indicates otherwise, the terms defined in this section have the meanings given
113.13them.
113.14EFFECTIVE DATE.This section is effective January 1, 2008.

113.15    Sec. 3. [45.24] LICENSE TECHNOLOGY FEES.
113.16    (a) The commissioner may establish and maintain an electronic licensing database
113.17system for license origination, renewal, and tracking the completion of continuing
113.18education requirements by individual licensees who have continuing education
113.19requirements, and other related purposes.
113.20    (b) The commissioner shall pay for the cost of operating and maintaining the
113.21electronic database system described in paragraph (a) through a technology surcharge
113.22imposed upon the fee for license origination and renewal, for individual licenses that
113.23require continuing education.
113.24    (c) The surcharge permitted under paragraph (b) shall be up to $40 for each two-year
113.25licensing period, except as otherwise provided in paragraph (f), and shall be payable at the
113.26time of license origination and renewal.
113.27    (d) The Commerce Department technology account is hereby created as an account
113.28in the special revenue fund.
113.29    (e) The commissioner shall deposit the surcharge permitted under this section in
113.30the account created in paragraph (d), and funds in the account are appropriated to the
113.31commissioner in the amounts needed for purposes of this section.
114.1    (f) The commissioner shall temporarily reduce or suspend the surcharge as necessary
114.2if the balance in the account created in paragraph (d) exceeds $2,000,000 as of the end of
114.3any calendar year and shall increase or decrease the surcharge as necessary to keep the
114.4fund balance at an adequate level but not in excess of $2,000,000.
114.5EFFECTIVE DATE.This section is effective the day following final enactment.

114.6    Sec. 4. Minnesota Statutes 2006, section 46.04, subdivision 1, is amended to read:
114.7    Subdivision 1. General. The commissioner of commerce, referred to in chapters
114.846 to 59A, and sections 332.12 to 332.29 chapter 332A, as the commissioner, is vested
114.9with all the powers, authority, and privileges which, prior to the enactment of Laws 1909,
114.10chapter 201, were conferred by law upon the public examiner, and shall take over all
114.11duties in relation to state banks, savings banks, trust companies, savings associations, and
114.12other financial institutions within the state which, prior to the enactment of chapter 201,
114.13were imposed upon the public examiner. The commissioner of commerce shall exercise
114.14a constant supervision, either personally or through the examiners herein provided for,
114.15over the books and affairs of all state banks, savings banks, trust companies, savings
114.16associations, credit unions, industrial loan and thrift companies, and other financial
114.17institutions doing business within this state; and shall, through examiners, examine each
114.18financial institution at least once every 24 calendar months. In satisfying this examination
114.19requirement, the commissioner may accept reports of examination prepared by a federal
114.20agency having comparable supervisory powers and examination procedures. With the
114.21exception of industrial loan and thrift companies which do not have deposit liabilities
114.22and licensed regulated lenders, it shall be the principal purpose of these examinations to
114.23inspect and verify the assets and liabilities of each and so far investigate the character
114.24and value of the assets of each institution as to determine with reasonable certainty that
114.25the values are correctly carried on its books. Assets and liabilities shall be verified in
114.26accordance with methods of procedure which the commissioner may determine to be
114.27adequate to carry out the intentions of this section. It shall be the further purpose of
114.28these examinations to assess the adequacy of capital protection and the capacity of the
114.29institution to meet usual and reasonably anticipated deposit withdrawals and other cash
114.30commitments without resorting to excessive borrowing or sale of assets at a significant
114.31loss, and to investigate each institution's compliance with applicable laws and rules. Based
114.32on the examination findings, the commissioner shall make a determination as to whether
114.33the institution is being operated in a safe and sound manner. None of the above provisions
114.34limits the commissioner in making additional examinations as deemed necessary or
114.35advisable. The commissioner shall investigate the methods of operation and conduct of
115.1these institutions and their systems of accounting, to ascertain whether these methods and
115.2systems are in accordance with law and sound banking principles. The commissioner may
115.3make requirements as to records as deemed necessary to facilitate the carrying out of the
115.4commissioner's duties and to properly protect the public interest. The commissioner may
115.5examine, or cause to be examined by these examiners, on oath, any officer, director,
115.6trustee, owner, agent, clerk, customer, or depositor of any financial institution touching
115.7the affairs and business thereof, and may issue, or cause to be issued by the examiners,
115.8subpoenas, and administer, or cause to be administered by the examiners, oaths. In
115.9case of any refusal to obey any subpoena issued under the commissioner's direction,
115.10the refusal may at once be reported to the district court of the district in which the bank
115.11or other financial institution is located, and this court shall enforce obedience to these
115.12subpoenas in the manner provided by law for enforcing obedience to subpoenas of the
115.13court. In all matters relating to official duties, the commissioner of commerce has the
115.14power possessed by courts of law to issue subpoenas and cause them to be served and
115.15enforced, and all officers, directors, trustees, and employees of state banks, savings banks,
115.16trust companies, savings associations, and other financial institutions within the state,
115.17and all persons having dealings with or knowledge of the affairs or methods of these
115.18institutions, shall afford reasonable facilities for these examinations, make returns and
115.19reports to the commissioner of commerce as the commissioner may require; attend and
115.20answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books,
115.21accounts, documents, and property as the commissioner may desire to inspect, and in all
115.22things aid the commissioner in the performance of duties.
115.23EFFECTIVE DATE.This section is effective January 1, 2008.

115.24    Sec. 5. Minnesota Statutes 2006, section 46.05, is amended to read:
115.2546.05 SUPERVISION OVER FINANCIAL INSTITUTIONS.
115.26    Every state bank, savings bank, trust company, savings association, debt
115.27management services provider, and other financial institutions shall be at all times under
115.28the supervision and subject to the control of the commissioner of commerce. If, and
115.29whenever in the performance of duties, the commissioner finds it necessary to make a
115.30special investigation of any financial institution under the commissioner's supervision,
115.31and other than a complete examination, the commissioner shall make a charge therefor to
115.32include only the necessary costs thereof. Such a fee shall be payable to the commissioner
115.33on the commissioner's making a request for payment.
115.34EFFECTIVE DATE.This section is effective January 1, 2008.

116.1    Sec. 6. Minnesota Statutes 2006, section 46.131, subdivision 2, is amended to read:
116.2    Subd. 2. Assessment authority. Each bank, trust company, savings bank, savings
116.3association, regulated lender, industrial loan and thrift company, credit union, motor
116.4vehicle sales finance company, debt prorating agency management services provider and
116.5insurance premium finance company organized under the laws of this state or required
116.6to be administered by the commissioner of commerce shall pay into the state treasury its
116.7proportionate share of the cost of maintaining the Department of Commerce.
116.8EFFECTIVE DATE.This section is effective January 1, 2008.

116.9    Sec. 7. Minnesota Statutes 2006, section 47.19, is amended to read:
116.1047.19 CORPORATION MAY BE MEMBER OR STOCKHOLDER OF
116.11FEDERAL AGENCY.
116.12    Any corporation is hereby empowered and authorized to become a member of,
116.13or stockholder in, any such agency, and to that end to purchase stock in, or securities
116.14of, or deposit money with, such agency and/or to comply with any other conditions of
116.15membership or credit; to borrow money from such agency upon such rates of interest, not
116.16exceeding the contract rate of interest in this state, and upon such terms and conditions
116.17as may be agreed upon by such corporation and such agency, for the purpose of making
116.18loans, paying withdrawals, paying maturities, paying debts, and for any other purpose not
116.19inconsistent with the objects of the corporation; provided, that the aggregate amount of the
116.20indebtedness, so incurred by such corporation, which shall be outstanding at any time shall
116.21not exceed 25 35 percent of the then total assets of the corporation; to assign, pledge and
116.22hypothecate its bonds, mortgages or other assets; and, in case of savings associations, to
116.23repledge with such agency the shares of stock in such association which any owner thereof
116.24may have pledged as collateral security, without obtaining the consent thereunto of such
116.25owner, as security for the repayment of the indebtedness so created by such corporation
116.26and as evidenced by its note or other evidence of indebtedness given for such borrowed
116.27money; and to do any and all things which shall or may be necessary or convenient in
116.28order to comply with and to obtain the benefits of the provisions of any act of Congress
116.29creating such agency, or any amendments thereto.

116.30    Sec. 8. Minnesota Statutes 2006, section 47.59, subdivision 6, is amended to read:
116.31    Subd. 6. Additional charges. (a) For purposes of this subdivision, "financial
116.32institution" includes a person described in subdivision 4, paragraph (a). In addition to the
116.33finance charges permitted by this section, a financial institution may contract for and
117.1receive the following additional charges that may be included in the principal amount
117.2of the loan or credit sale unpaid balances:
117.3    (1) official fees and taxes;
117.4    (2) charges for insurance as described in paragraph (b);
117.5    (3) with respect to a loan or credit sale contract secured by real estate, the following
117.6"closing costs," if they are bona fide, reasonable in amount, and not for the purpose of
117.7circumvention or evasion of this section:
117.8    (i) fees or premiums for title examination, abstract of title, title insurance, surveys,
117.9or similar purposes;
117.10    (ii) fees for preparation of a deed, mortgage, settlement statement, or other
117.11documents, if not paid to the financial institution;
117.12    (iii) escrows for future payments of taxes, including assessments for improvements,
117.13insurance, and water, sewer, and land rents;
117.14    (iv) fees for notarizing deeds and other documents;
117.15    (v) appraisal and credit report fees; and
117.16    (vi) fees for determining whether any portion of the property is located in a flood
117.17zone and fees for ongoing monitoring of the property to determine changes, if any,
117.18in flood zone status;
117.19    (4) a delinquency charge on a payment, including the minimum payment due in
117.20connection with open-end credit, not paid in full on or before the tenth day after its due
117.21date in an amount not to exceed five percent of the amount of the payment or $5.20,
117.22whichever is greater;
117.23    (5) for a returned check or returned automatic payment withdrawal request, an
117.24amount not in excess of the service charge limitation in section 604.113, except that, on
117.25a loan transaction that is a consumer small loan as defined in section 47.60, subdivision
117.261, paragraph (a), in which cash is advanced in exchange for a personal check, the civil
117.27penalty provisions of section 604.113, subdivision 2, paragraph (b), may not be demanded
117.28or assessed against the borrower
; and
117.29    (6) charges for other benefits, including insurance, conferred on the borrower that
117.30are of a type that is not for credit.
117.31    (b) An additional charge may be made for insurance written in connection with the
117.32loan or credit sale contract, which may be included in the principal amount of the loan or
117.33credit sale unpaid balances:
117.34    (1) with respect to insurance against loss of or damage to property, or against
117.35liability arising out of the ownership or use of property, if the financial institution furnishes
117.36a clear, conspicuous, and specific statement in writing to the borrower setting forth the
118.1cost of the insurance if obtained from or through the financial institution and stating that
118.2the borrower may choose the person through whom the insurance is to be obtained;
118.3    (2) with respect to credit insurance or mortgage insurance providing life, accident,
118.4health, or unemployment coverage, if the insurance coverage is not required by the
118.5financial institution, and this fact is clearly and conspicuously disclosed in writing to
118.6the borrower, and the borrower gives specific, dated, and separately signed affirmative
118.7written indication of the borrower's desire to do so after written disclosure to the borrower
118.8of the cost of the insurance; and
118.9    (3) with respect to the vendor's single interest insurance, but only (i) to the extent
118.10that the insurer has no right of subrogation against the borrower; and (ii) to the extent that
118.11the insurance does not duplicate the coverage of other insurance under which loss is
118.12payable to the financial institution as its interest may appear, against loss of or damage
118.13to property for which a separate charge is made to the borrower according to clause (1);
118.14and (iii) if a clear, conspicuous, and specific statement in writing is furnished by the
118.15financial institution to the borrower setting forth the cost of the insurance if obtained from
118.16or through the financial institution and stating that the borrower may choose the person
118.17through whom the insurance is to be obtained.
118.18    (c) In addition to the finance charges and other additional charges permitted by
118.19this section, a financial institution may contract for and receive the following additional
118.20charges in connection with open-end credit, which may be included in the principal
118.21amount of the loan or balance upon which the finance charge is computed:
118.22    (1) annual charges, not to exceed $50 per annum, payable in advance, for the
118.23privilege of opening and maintaining open-end credit;
118.24    (2) charges for the use of an automated teller machine;
118.25    (3) charges for any monthly or other periodic payment period in which the borrower
118.26has exceeded or, except for the financial institution's dishonor would have exceeded,
118.27the maximum approved credit limit, in an amount not in excess of the service charge
118.28permitted in section 604.113;
118.29    (4) charges for obtaining a cash advance in an amount not to exceed the service
118.30charge permitted in section 604.113; and
118.31    (5) charges for check and draft copies and for the replacement of lost or stolen
118.32credit cards.
118.33    (d) In addition to the finance charges and other additional charges permitted by this
118.34section, a financial institution may contract for and receive a onetime loan administrative
118.35fee not exceeding $25 in connection with closed-end credit, which may be included in the
118.36principal balance upon which the finance charge is computed. This paragraph applies only
119.1to closed-end credit in an original principal amount of $4,320 or less. The determination
119.2of an original principal amount must exclude the administrative fee contracted for and
119.3received according to this paragraph.

119.4    Sec. 9. Minnesota Statutes 2006, section 47.60, subdivision 2, is amended to read:
119.5    Subd. 2. Authorization, terms, conditions, and prohibitions. (a) In lieu of the
119.6interest, finance charges, or fees in any other law, a consumer small loan lender may
119.7charge the following:
119.8    (1) on any amount up to and including $50, a charge of $5.50 may be added;
119.9    (2) on amounts in excess of $50, but not more than $100, a charge may be added
119.10equal to ten percent of the loan proceeds plus a $5 administrative fee;
119.11    (3) on amounts in excess of $100, but not more than $250, a charge may be
119.12added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5
119.13administrative fee;
119.14    (4) for amounts in excess of $250 and not greater than the maximum in subdivision
119.151, paragraph (a), a charge may be added equal to six percent of the loan proceeds with a
119.16minimum of $17.50 plus a $5 administrative fee.
119.17    (b) The term of a loan made under this section shall be for no more than 30 calendar
119.18days.
119.19    (c) After maturity, the contract rate must not exceed 2.75 percent per month of the
119.20remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly
119.21rate in the contract for each calendar day the balance is outstanding.
119.22    (d) No insurance charges or other charges must be permitted to be charged, collected,
119.23or imposed on a consumer small loan except as authorized in this section.
119.24    (e) On a loan transaction in which cash is advanced in exchange for a personal
119.25check, a return check charge may be charged as authorized by section 604.113, subdivision
119.262
, paragraph (a). The civil penalty provisions of section 604.113, subdivision 2, paragraph
119.27(b), may not be demanded or assessed against the borrower.
119.28    (f) A loan made under this section must not be repaid by the proceeds of another
119.29loan made under this section by the same lender or related interest. The proceeds from a
119.30loan made under this section must not be applied to another loan from the same lender or
119.31related interest. No loan to a single borrower made pursuant to this section shall be split or
119.32divided and no single borrower shall have outstanding more than one loan with the result
119.33of collecting a higher charge than permitted by this section or in an aggregate amount of
119.34principal exceed at any one time the maximum of $350.

120.1    Sec. 10. Minnesota Statutes 2006, section 47.62, subdivision 1, is amended to read:
120.2    Subdivision 1. General authority. Any person may establish and maintain one
120.3or more electronic financial terminals. Any financial institution may provide for its
120.4customers the use of an electronic financial terminal by entering into an agreement with
120.5any person who has established and maintains one or more electronic financial terminals if
120.6that person authorizes use of the electronic financial terminal to all financial institutions
120.7on a nondiscriminatory basis pursuant to section 47.64. Electronic financial terminals to
120.8be established and maintained in this state by financial institutions located in states other
120.9than Minnesota must file a notification to the commissioner as required in this section.
120.10The notification may be in the form lawfully required by the state regulator responsible
120.11for the examination and supervision of that financial institution. If there is no such
120.12requirement, then notification must be in the form required by this section for Minnesota
120.13financial institutions.

120.14    Sec. 11. Minnesota Statutes 2006, section 47.75, subdivision 1, is amended to read:
120.15    Subdivision 1. Retirement, health savings, and medical savings accounts. (a) A
120.16commercial bank, savings bank, savings association, credit union, or industrial loan and
120.17thrift company may act as trustee or custodian:
120.18    (1) under the Federal Self-Employed Individual Tax Retirement Act of 1962, as
120.19amended;
120.20    (2) of a medical savings account under the Federal Health Insurance Portability and
120.21Accountability Act of 1996, as amended;
120.22    (3) of a health savings account under the Medicare Prescription Drug, Improvement,
120.23and Modernization Act of 2003, as amended; and
120.24    (4) under the Federal Employee Retirement Income Security Act of 1974, as
120.25amended.
120.26    (b) The trustee or custodian may accept the trust funds if the funds are invested
120.27only in savings accounts or time deposits in the commercial bank, savings bank, savings
120.28association, credit union, or industrial loan and thrift company, except that health savings
120.29accounts may also be invested in transaction accounts. Health savings accounts invested in
120.30transaction accounts shall not be subject to the restrictions in section 48.512, subdivision
120.313. All funds held in the fiduciary capacity may be commingled by the financial institution
120.32in the conduct of its business, but individual records shall be maintained by the fiduciary
120.33for each participant and shall show in detail all transactions engaged under authority
120.34of this subdivision.
120.35EFFECTIVE DATE. This section is effective the day following final enactment.

121.1    Sec. 12. Minnesota Statutes 2006, section 48.15, subdivision 4, is amended to read:
121.2    Subd. 4. Retirement, health savings, and medical savings accounts. (a) A state
121.3bank may act as trustee or custodian:
121.4    (1) of a self-employed retirement plan under the Federal Self-Employed Individual
121.5Tax Retirement Act of 1962, as amended;
121.6    (2) of a medical savings account under the Federal Health Insurance Portability and
121.7Accountability Act of 1996, as amended;
121.8    (3) of a health savings account under the Medicare Prescription Drug, Improvement,
121.9and Modernization Act of 2003, as amended; and
121.10    (4) of an individual retirement account under the Federal Employee Retirement
121.11Income Security Act of 1974, as amended, if the bank's duties as trustee or custodian are
121.12essentially ministerial or custodial in nature and the funds are invested only (i) in the
121.13bank's own savings or time deposits, except that health savings accounts may also be
121.14invested in transaction accounts. Health savings accounts invested in transaction accounts
121.15shall not be subject to the restrictions in section 48.512, subdivision 3; or (ii) in any
121.16other assets at the direction of the customer if the bank does not exercise any investment
121.17discretion, invest the funds in collective investment funds administered by it, or provide
121.18any investment advice with respect to those account assets.
121.19    (b) Affiliated discount brokers may be utilized by the bank acting as trustee or
121.20custodian for self-directed IRAs, if specifically authorized and directed in appropriate
121.21documents. The relationship between the affiliated broker and the bank must be fully
121.22disclosed. Brokerage commissions to be charged to the IRA by the affiliated broker should
121.23be accurately disclosed. Provisions should be made for disclosure of any changes in
121.24commission rates prior to their becoming effective. The affiliated broker may not provide
121.25investment advice to the customer.
121.26    (c) All funds held in the fiduciary capacity may be commingled by the financial
121.27institution in the conduct of its business, but individual records shall be maintained by
121.28the fiduciary for each participant and shall show in detail all transactions engaged under
121.29authority of this subdivision.
121.30    (d) The authority granted by this section is in addition to, and not limited by, section
121.3147.75 .
121.32EFFECTIVE DATE. This section is effective the day following final enactment.

121.33    Sec. 13. Minnesota Statutes 2006, section 58.04, subdivision 1, is amended to read:
121.34    Subdivision 1. Residential mortgage originator licensing requirements. (a)
121.35Beginning August 1, 1999, No person shall act as a residential mortgage originator, or
122.1make residential mortgage loans without first obtaining a license from the commissioner
122.2according to the licensing procedures provided in this chapter.
122.3    (b) A licensee must be either a partnership, limited liability partnership, association,
122.4limited liability company, corporation, or other form of business organization, and must
122.5have and maintain at all times one of the following: approval as a mortgagee by either the
122.6federal Department of Housing and Urban Development or the Federal National Mortgage
122.7Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety bond
122.8or irrevocable letter of credit in the amount of $100,000. Net worth, net of intangibles,
122.9must be calculated in accordance with generally accepted accounting principles.
122.10    (c) The following persons are exempt from the residential mortgage originator
122.11licensing requirements:
122.12    (1) an employee of one mortgage originator licensee or one person holding a
122.13certificate of exemption;
122.14    (2) a person licensed as a real estate broker under chapter 82 who is not licensed to
122.15another real estate broker;
122.16    (3) an individual real estate licensee who is licensed to a real estate broker as
122.17described in clause (2) if:
122.18    (i) the individual licensee acts only under the name, authority, and supervision of the
122.19broker to whom the licensee is licensed;
122.20    (ii) the broker to whom the licensee is licensed obtains a certificate of exemption
122.21according to section 58.05, subdivision 2;
122.22    (iii) the broker does not collect an advance fee for its residential mortgage-related
122.23activities; and
122.24    (iv) the residential mortgage origination activities are incidental to the real estate
122.25licensee's primary activities as a real estate broker or salesperson;
122.26    (4) an individual licensed as a property/casualty or life/health insurance agent under
122.27chapter 60K if:
122.28    (i) the insurance agent acts on behalf of only one residential mortgage originator,
122.29which is in compliance with chapter 58;
122.30    (ii) the insurance agent has entered into a written contract with the mortgage
122.31originator under the terms of which the mortgage originator agrees to accept responsibility
122.32for the insurance agent's residential mortgage-related activities;
122.33    (iii) the insurance agent obtains a certificate of exemption under section 58.05,
122.34subdivision 2
; and
122.35    (iv) the insurance agent does not collect an advance fee for the insurance agent's
122.36residential mortgage-related activities;
123.1    (5) (1) a person who is not in the business of making residential mortgage loans and
123.2who makes no more than three such loans, with its own funds, during any 12-month period;
123.3    (6) (2) a financial institution as defined in section 58.02, subdivision 10;
123.4    (7) (3) an agency of the federal government, or of a state or municipal government;
123.5    (8) (4) an employee or employer pension plan making loans only to its participants;
123.6    (9) (5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result
123.7of a specific order issued by a court of competent jurisdiction; or
123.8    (10) (6) a person exempted by order of the commissioner.

123.9    Sec. 14. Minnesota Statutes 2006, section 58.04, subdivision 2, is amended to read:
123.10    Subd. 2. Residential mortgage servicer licensing requirements. (a) Beginning
123.11August 1, 1999, No person shall engage in activities or practices that fall within the
123.12definition of "servicing a residential mortgage loan" under section 58.02, subdivision
123.1322
, without first obtaining a license from the commissioner according to the licensing
123.14procedures provided in this chapter.
123.15    (b) The following persons are exempt from the residential mortgage servicer
123.16licensing requirements:
123.17    (1) a person licensed as a residential mortgage originator;
123.18    (2) an employee of one licensee or one person holding a certificate of exemption
123.19based on an exemption under this subdivision;
123.20    (3) (2) a person servicing loans made with its the person's own funds, if no more
123.21than three such loans are made in any 12-month period;
123.22    (4) (3) a financial institution as defined in section 58.02, subdivision 10;
123.23    (5) (4) an agency of the federal government, or of a state or municipal government;
123.24    (6) (5) an employee or employer pension plan making loans only to its participants;
123.25    (7) (6) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result
123.26of a specific order issued by a court of competent jurisdiction; or
123.27    (8) (7) a person exempted by order of the commissioner.

123.28    Sec. 15. Minnesota Statutes 2006, section 58.05, is amended to read:
123.2958.05 EXEMPTIONS FROM LICENSE.
123.30    Subdivision 1. Exempt person. An exempt person as defined by section 58.04,
123.31subdivision 1
, paragraph (b) (c), and subdivision 2, paragraph (b), is exempt from the
123.32licensing requirements of this chapter, but is subject to all other provisions of this chapter.
123.33    Subd. 3. Certificate of exemption. A person must obtain a certificate of exemption
123.34from the commissioner to qualify as an exempt person under section 58.04, subdivision
124.11
, paragraph (b) (c), as a real estate broker under clause (2), an insurance agent under
124.2clause (4), a financial institution under clause (6) (2), or by order of the commissioner
124.3under clause (10) (6); or under section 58.04, subdivision 2, paragraph (b), as a financial
124.4institution under clause (4) (3), or by order of the commissioner under clause (8) (7).

124.5    Sec. 16. Minnesota Statutes 2006, section 58.06, subdivision 2, is amended to read:
124.6    Subd. 2. Application contents. (a) The application must contain the name and
124.7complete business address or addresses of the license applicant. If The license applicant is
124.8must be a partnership, limited liability partnership, association, limited liability company,
124.9corporation, or other form of business organization, and the application must contain the
124.10names and complete business addresses of each partner, member, director, and principal
124.11officer. The application must also include a description of the activities of the license
124.12applicant, in the detail and for the periods the commissioner may require.
124.13    (b) An applicant must submit one of the following:
124.14    (1) evidence which shows, to the commissioner's satisfaction, that either the federal
124.15Department of Housing and Urban Development or the Federal National Mortgage
124.16Association has approved the applicant as a mortgagee;
124.17    (2) a surety bond or irrevocable letter of credit in the amount of not less than
124.18$100,000 in a form approved by the commissioner, issued by an insurance company
124.19or bank authorized to do so in this state. The bond or irrevocable letter of credit must
124.20be available for the recovery of expenses, fines, and fees levied by the commissioner
124.21under this chapter and for losses incurred by borrowers. The bond or letter of credit must
124.22be submitted with the license application, and evidence of continued coverage must be
124.23submitted with each renewal. Any change in the bond or letter of credit must be submitted
124.24for approval by the commissioner within ten days of its execution; or
124.25    (3) a copy of the applicant's most recent audited financial statement, including
124.26balance sheet, statement of income or loss, statements of changes in shareholder equity,
124.27and statement of changes in financial position. Financial statements must be as of a date
124.28within 12 months of the date of application.
124.29    (c) The application must also include all of the following:
124.30    (a) (1) an affirmation under oath that the applicant:
124.31    (1) will maintain competent staff and adequate staffing levels, through direct
124.32employees or otherwise, to meet the requirements of this chapter; (i) is in compliance
124.33with the requirements of section 58.125;
124.34    (ii) will maintain a perpetual roster of individuals employed as residential mortgage
124.35originators, including employees and independent contractors, which includes the date that
125.1mandatory initial education was completed. In addition, the roster must be made available
125.2to the commissioner on demand, within three business days of the commissioner's request;
125.3    (2) (iii) will advise the commissioner of any material changes to the information
125.4submitted in the most recent application within ten days of the change;
125.5    (3) (iv) will advise the commissioner in writing immediately of any bankruptcy
125.6petitions filed against or by the applicant or licensee;
125.7    (4) is financially solvent; (v) will maintain at all times either a net worth, net of
125.8intangibles, of at least $250,000 or a surety bond or irrevocable letter of credit in the
125.9amount of at least $100,000;
125.10    (5) (vi) complies with federal and state tax laws; and
125.11    (6) (vii) complies with sections 345.31 to 345.60, the Minnesota unclaimed property
125.12law; and
125.13    (7) is, or that a person in control of the license applicant is, at least 18 years of age;
125.14    (b) (2) information as to the mortgage lending, servicing, or brokering experience
125.15of the applicant and persons in control of the applicant;
125.16    (c) (3) information as to criminal convictions, excluding traffic violations, of persons
125.17in control of the license applicant;
125.18    (d) (4) whether a court of competent jurisdiction has found that the applicant or
125.19persons in control of the applicant have engaged in conduct evidencing gross negligence,
125.20fraud, misrepresentation, or deceit in performing an act for which a license is required
125.21under this chapter;
125.22    (e) (5) whether the applicant or persons in control of the applicant have been the
125.23subject of: an order of suspension or revocation, cease and desist order, or injunctive
125.24order, or order barring involvement in an industry or profession issued by this or another
125.25state or federal regulatory agency or by the Secretary of Housing and Urban Development
125.26within the ten-year period immediately preceding submission of the application; and
125.27    (f) (6) other information required by the commissioner.

125.28    Sec. 17. Minnesota Statutes 2006, section 58.06, is amended by adding a subdivision
125.29to read:
125.30    Subd. 3. Waiver. The commissioner may, for good cause shown, waive any
125.31requirement of this section with respect to any license application or to permit a license
125.32applicant to submit substituted information in its license application in lieu of the
125.33information required by this section.

125.34    Sec. 18. Minnesota Statutes 2006, section 58.08, subdivision 3, is amended to read:
126.1    Subd. 3. Exemption. Subdivisions 1 and Subdivision 2 do does not apply to
126.2mortgage originators or mortgage servicers who are approved as seller/servicers by the
126.3Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

126.4    Sec. 19. Minnesota Statutes 2006, section 58.10, subdivision 1, is amended to read:
126.5    Subdivision 1. Amounts. The following fees must be paid to the commissioner:
126.6    (1) for an initial residential mortgage originator license, $850 $2,550, $50 of which
126.7is credited to the consumer education account in the special revenue fund;
126.8    (2) for a renewal license, $450 $1,350, $50 of which is credited to the consumer
126.9education account in the special revenue fund;
126.10    (3) for an initial residential mortgage servicer's license, $1,000;
126.11    (4) for a renewal license, $500; and
126.12    (5) for a certificate of exemption, $100.

126.13    Sec. 20. [58.115] EXAMINATIONS.
126.14    The commissioner has under this chapter the same powers with respect to
126.15examinations that the commissioner has under section 46.04, including the authority to
126.16charge for the direct costs of the examination, including travel and per diem expenses.

126.17    Sec. 21. [58.126] EDUCATION REQUIREMENT.
126.18    No individual shall engage in residential mortgage origination or make residential
126.19mortgage loans, whether as an employee or independent contractor, before the completion
126.20of 15 hours of educational training which has been approved by the commissioner, and
126.21covering state and federal laws concerning residential mortgage lending.

126.22    Sec. 22. [59C.01] SHORT TITLE.
126.23    This chapter may be cited as the Vehicle Protection Product Act.
126.24EFFECTIVE DATE.This section is effective January 1, 2008.

126.25    Sec. 23. [59C.02] DEFINITIONS.
126.26    Subdivision 1. Terms. For purposes of this chapter, the terms defined in subdivisions
126.272 to 11 have the meanings given them.
126.28    Subd. 2. Administrator. "Administrator" means a third party other than the
126.29warrantor who is designated by the warrantor to be responsible for the administration
126.30of vehicle protection product warranties.
126.31    Subd. 3. Commissioner. "Commissioner" means the commissioner of commerce.
127.1    Subd. 4. Department. "Department" means the Department of Commerce.
127.2    Subd. 5. Incidental costs. "Incidental costs" means expenses specified in the
127.3warranty incurred by the warranty holder related to the failure of the vehicle protection
127.4product to perform as provided in the warranty. Incidental costs may include, without
127.5limitation, insurance policy deductibles, rental vehicle charges, the difference between the
127.6actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle,
127.7sales taxes, registration fees, transaction fees, and mechanical inspection fees.
127.8    Subd. 6. Service contract. "Service contract" means a contract or agreement as
127.9regulated under chapter 59B.
127.10    Subd. 7. Vehicle protection product. "Vehicle protection product" means a vehicle
127.11protection device, system, or service that:
127.12    (1) is installed on or applied to a vehicle;
127.13    (2) is designed to prevent loss or damage to a vehicle from a specific cause; and
127.14    (3) includes a written warranty.
127.15    For purposes of this section, vehicle protection product includes, without limitation,
127.16alarm systems; body part marking products; steering locks; window etch products; pedal
127.17and ignition locks; fuel and ignition kill switches; and electronic, radio, and satellite
127.18tracking devices.
127.19    Subd. 8. Vehicle protection product warranty or warranty. "Vehicle protection
127.20product warranty" or "warranty" means, for the purposes of this chapter, a written
127.21agreement by a warrantor that provides if the vehicle protection product fails to prevent
127.22loss or damage to a vehicle from a specific cause, that the warranty holder must be
127.23paid specified incidental costs by the warrantor as a result of the failure of the vehicle
127.24protection product to perform pursuant to the terms of the warranty.
127.25    Subd. 9. Vehicle protection product warrantor or warrantor. "Vehicle protection
127.26product warrantor" or "warrantor," for the purposes of this chapter, means a person who is
127.27contractually obligated to the warranty holder under the terms of the vehicle protection
127.28product warranty agreement. Warrantor does not include an authorized insurer providing a
127.29warranty reimbursement insurance policy.
127.30    Subd. 10. Warranty holder. "Warranty holder," for the purposes of this chapter,
127.31means the person who purchases a vehicle protection product or who is a permitted
127.32transferee.
127.33    Subd. 11. Warranty reimbursement insurance policy. "Warranty reimbursement
127.34insurance policy" means a policy of insurance that is issued to the vehicle protection
127.35product warrantor to provide reimbursement to, or to pay on behalf of, the warrantor all
128.1covered contractual obligations incurred by the warrantor under the terms and conditions
128.2of the insured vehicle protection product warranties sold by the warrantor.
128.3EFFECTIVE DATE.This section is effective January 1, 2008.

128.4    Sec. 24. [59C.03] SCOPE AND EXEMPTIONS.
128.5    (a) No vehicle protection product may be sold or offered for sale in this state unless
128.6the seller, warrantor, and administrator, if any, comply with the provisions of this chapter.
128.7    (b) Vehicle protection product warrantors and related vehicle protection product
128.8sellers and warranty administrators complying with this chapter are not required to comply
128.9with and are not subject to any other provision of chapters 59B to 72A, except that section
128.1072A.20, subdivision 38, shall apply to vehicle protection product warranties in the same
128.11manner it applies to service contracts.
128.12    (c) Service contract providers who do not sell vehicle protection products are not
128.13subject to the requirements of this chapter and sales of vehicle protection products are
128.14exempt from the requirements of chapter 59B.
128.15    (d) Warranties, indemnity agreements, and guarantees that are not provided as a part
128.16of a vehicle protection product are not subject to the provisions of this chapter.
128.17EFFECTIVE DATE.This section is effective January 1, 2008.

128.18    Sec. 25. [59C.04] REGISTRATION AND FILING REQUIREMENTS OF
128.19WARRANTORS.
128.20    Subdivision 1. General requirement. A person may not operate as a warrantor or
128.21represent to the public that the person is a warrantor unless the person is registered with
128.22the department on a form prescribed by the commissioner.
128.23    Subd. 2. Registration records. A registrant shall file a warrantor registration
128.24record annually and shall update it within 30 days of any change. A registration record
128.25must contain the following information:
128.26    (1) the warrantor's name, any fictitious names under which the warrantor does
128.27business in the state, principal office address, and telephone number;
128.28    (2) the name and address of the warrantor's agent for service of process in the state if
128.29other than the warrantor;
128.30    (3) the names of the warrantor's executive officer or officers directly responsible for
128.31the warrantor's vehicle protection product business;
129.1    (4) the name, address, and telephone number of any administrators designated by
129.2the warrantor to be responsible for the administration of vehicle protection product
129.3warranties in this state;
129.4    (5) a copy of the warranty reimbursement insurance policy or policies or other
129.5financial information required by section 59C.05;
129.6    (6) a copy of each warranty the warrantor proposes to use in this state; and
129.7    (7) a statement indicating under which provision of section 59C.05 the warrantor
129.8qualifies to do business in this state as a warrantor.
129.9    Subd. 3. Registration fee. The commissioner may charge each registrant a
129.10reasonable fee to offset the cost of processing the registration and maintaining the records
129.11in an amount not to exceed $250 annually. The information in subdivision 2, clauses (1)
129.12and (2), must be made available to the public.
129.13    Subd. 4. Renewal. If a registrant fails to register by the renewal deadline, the
129.14commissioner shall give them written notice of the failure and the registrant will have 30
129.15days to complete the renewal of the registration before the commissioner suspends the
129.16registration.
129.17    Subd. 5. Exception. An administrator or person who sells or solicits a sale of a
129.18vehicle protection product but who is not a warrantor shall not be required to register as a
129.19warrantor or be licensed under the insurance laws of this state to sell vehicle protection
129.20products.
129.21EFFECTIVE DATE.This section is effective January 1, 2008.

129.22    Sec. 26. [59C.05] FINANCIAL RESPONSIBILITY.
129.23    Subdivision 1. General requirements. No vehicle protection product may be sold,
129.24or offered for sale in this state unless the warrantor meets either the requirements of
129.25subdivision 2 or 3 in order to ensure adequate performance under the warranty. No other
129.26financial security requirements or financial standards for warrantors is required.
129.27    Subd. 2. Warranty reimbursement insurance policy. The vehicle protection
129.28product warrantor shall be insured under a warranty reimbursement insurance policy
129.29issued by an insurer authorized to do business in this state which provides that:
129.30    (1) the insurer will pay to, or on behalf of the warrantor, 100 percent of all sums
129.31that the warrantor is legally obligated to pay according to the warrantor's contractual
129.32obligations under the warrantor's vehicle protection product warranty;
129.33    (2) a true and correct copy of the warranty reimbursement insurance policy has been
129.34filed with the commissioner by the warrantor; and
129.35    (3) the policy contains the provision required in section 59C.06.
130.1    Subd. 3. Network or stockholder's equity. (1) The vehicle protection product
130.2warrantor, or its parent company in accordance with clause (2), shall maintain a net worth
130.3or stockholders' equity of $50,000,000; and
130.4    (2) the warrantor shall provide the commissioner with a copy of the warrantor's or
130.5the warrantor's parent company's most recent Form 10-K or Form 20-F filed with the
130.6Securities and Exchange Commission within the last calendar year or, if the warrantor
130.7does not file with the Securities and Exchange Commission, a copy of the warrantor or
130.8the warrantor's parent company's audited financial statements that shows a net worth of
130.9the warrantor or its parent company of at least $50,000,000. If the warrantor's parent
130.10company's Form 10-K, Form 20-F, or audited financial statements are filed to meet
130.11the warrantor's financial stability requirement, then the parent company shall agree to
130.12guarantee the obligations of the warrantor relating to warranties issued by the warrantor in
130.13this state. The financial information provided to the commissioner under this paragraph
130.14is trade secret information for purposes of section 13.37.
130.15EFFECTIVE DATE.This section is effective January 1, 2008.

130.16    Sec. 27. [59C.06] WARRANTY REIMBURSEMENT POLICY
130.17REQUIREMENTS.
130.18    No warranty reimbursement insurance policy may be issued, sold, or offered for sale
130.19in this state unless the policy meets the following conditions:
130.20    (1) the policy states that the issuer of the policy will reimburse, or pay on behalf of
130.21the vehicle protection product warrantor, all covered sums that the warrantor is legally
130.22obligated to pay, or will provide all service that the warrantor is legally obligated to
130.23perform according to the warrantor's contractual obligations under the provisions of the
130.24insured warranties sold by the warrantor;
130.25    (2) the policy states that in the event payment due under the terms of the warranty is
130.26not provided by the warrantor within 60 days after proof of loss has been filed according
130.27to the terms of the warranty by the warranty holder, the warranty holder may file directly
130.28with the warranty reimbursement insurance company for reimbursement;
130.29    (3) the policy provides that a warranty reimbursement insurance company that
130.30insures a warranty is deemed to have received payment of the premium if the warranty
130.31holder paid for the vehicle protection product and the insurer's liability under the policy
130.32shall not be reduced or relieved by a failure of the warrantor, for any reason, to report the
130.33issuance of a warranty to the insurer; and
130.34    (4) the policy has the following provisions regarding cancellation of the policy:
131.1    (i) the issuer of a reimbursement insurance policy shall not cancel the policy until a
131.2notice of cancellation in writing has been mailed or delivered to the commissioner and
131.3each insured warrantor;
131.4    (ii) the cancellation of a reimbursement insurance policy shall not reduce the issuer's
131.5responsibility for vehicle protection products sold prior to the date of cancellation; and
131.6    (iii) in the event an insurer cancels a policy that a warrantor has filed with the
131.7commissioner, the warrantor shall do either of the following:
131.8    (A) file a copy of a new policy with the commissioner, before the termination of
131.9the prior policy, providing no lapse in coverage following the termination of the prior
131.10policy; or
131.11    (B) discontinue offering warranties as of the termination date of the policy until a
131.12new policy becomes effective and is accepted by the commissioner.
131.13EFFECTIVE DATE.This section is effective January 1, 2008.

131.14    Sec. 28. [59C.07] DISCLOSURE TO WARRANTY HOLDER.
131.15    A vehicle protection product warranty must not be sold or offered for sale in this
131.16state unless the warranty:
131.17    (1) states, "The obligations of the warrantor to the warranty holder are guaranteed
131.18under a warranty reimbursement insurance policy" if the warrantor elects to meet its
131.19financial responsibility obligations under section 59C.05, subdivision 2, or states "The
131.20obligations of the warrantor under this warranty are backed by the full faith and credit
131.21of the warrantor" if the warrantor elects to meet its financial responsibility obligations
131.22under section 59C.05, subdivision 3;
131.23    (2) states that in the event a warranty holder must make a claim against a party other
131.24than the warranty reimbursement insurance policy issuer, the warranty holder is entitled to
131.25make a direct claim against the insurer upon the failure of the warrantor to pay any claim
131.26or meet any obligation under the terms of the warranty within 60 days after proof of loss
131.27has been filed with the warrantor, if the warrantor elects to meet its financial responsibility
131.28obligations under section 59C.05, subdivision 2;
131.29    (3) states the name and address of the issuer of the warranty reimbursement
131.30insurance policy, and this information need not be preprinted on the warranty form, but
131.31may be added to or stamped on the warranty, if the warrantor elects to meet its financial
131.32responsibility obligations under section 59C.05, subdivision 2;
131.33    (4) identifies the warrantor, the seller, and the warranty holder;
132.1    (5) sets forth the total purchase price and the terms under which it is to be paid,
132.2however, the purchase price is not required to be preprinted on the vehicle protection
132.3product warranty and may be negotiated with the consumer at the time of sale;
132.4    (6) sets forth the procedure for making a claim, including a telephone number;
132.5    (7) specifies the payments or performance to be provided under the warranty
132.6including payments for incidental costs expressed as either a fixed amount specified in the
132.7warranty or sales agreement or by the use of a formula itemizing specific incidental costs
132.8incurred by the warranty holder, the manner of calculation or determination of payments
132.9or performance, and any limitations, exceptions, or exclusions;
132.10    (8) sets forth all of the obligations and duties of the warranty holder such as the duty
132.11to protect against any further damage to the vehicle, the obligation to notify the warrantor
132.12in advance of any repair, or other similar requirements, if any;
132.13    (9) sets forth any terms, restrictions, or conditions governing transferability and
132.14cancellation of the warranty, if any; and
132.15    (10) contains a disclosure that reads substantially as follows: "This agreement is a
132.16product warranty and is not insurance."
132.17EFFECTIVE DATE.This section is effective January 1, 2008.

132.18    Sec. 29. [59C.08] PROHIBITED ACTS.
132.19    (a) Unless licensed as an insurance company, a vehicle protection product warrantor
132.20shall not use in its name, contracts, or literature, any of the words "insurance," "casualty,"
132.21"surety," "mutual," or any other words descriptive of the insurance, casualty, or surety
132.22business or deceptively similar to the name or description of any insurance or surety
132.23corporation, or any other vehicle protection product warrantor. A warrantor may use the
132.24term "guaranty" or similar word in the warrantor's name.
132.25    (b) A vehicle protection product seller or warrantor may not require as a condition of
132.26financing that a retail purchaser of a motor vehicle purchase a vehicle protection product.
132.27EFFECTIVE DATE.This section is effective January 1, 2008.

132.28    Sec. 30. [59C.09] RECORD KEEPING.
132.29    (a) All vehicle protection product warrantors shall keep accurate accounts, books,
132.30and records concerning transactions regulated under this chapter.
132.31    (b) A vehicle protection product warrantor's accounts, books, and records must
132.32include:
132.33    (1) copies of all vehicle protection product warranties;
133.1    (2) the name and address of each warranty holder; and
133.2    (3) the dates, amounts, and descriptions of all receipts, claims, and expenditures.
133.3    (c) A vehicle protection product warrantor shall retain all required accounts, books,
133.4and records pertaining to each warranty holder for at least two years after the specified
133.5period of coverage has expired. A warrantor discontinuing business in this state shall
133.6maintain its records until it furnishes the commissioner satisfactory proof that it has
133.7discharged all obligations to warranty holders in this state.
133.8EFFECTIVE DATE.This section is effective January 1, 2008.

133.9    Sec. 31. [59C.10] COMMISSIONER'S POWERS AND DUTIES.
133.10    Subdivision 1. Examination and compliance powers. The commissioner may
133.11conduct examinations of warrantors, administrators, or other persons to enforce this
133.12chapter and protect warranty holders in this state. Upon request of the commissioner, a
133.13warrantor shall make available to the commissioner all accounts, books, and records
133.14concerning vehicle protection products sold by the warrantor and transactions regulated
133.15under this chapter that are necessary to enable the commissioner to reasonably determine
133.16compliance or noncompliance with this chapter.
133.17    Subd. 2. Enforcement authority. The commissioner may take action that is
133.18necessary or appropriate to enforce the provisions of this chapter and the commissioner's
133.19rules and orders and to protect warranty holders in this state. The commissioner has the
133.20enforcement authority in chapter 45 available to enforce the provisions of the chapter and
133.21the rules adopted pursuant to it.
133.22EFFECTIVE DATE.This section is effective January 1, 2008.

133.23    Sec. 32. [59C.12] APPLICABILITY.
133.24    This chapter applies to all vehicle protection products sold or offered for sale on
133.25or after the effective date of this chapter. The failure of any person to comply with this
133.26chapter before its effective date is not admissible in any court proceeding, administrative
133.27proceeding, arbitration, or alternative dispute resolution proceeding and may not otherwise
133.28be used to prove that the action of any person or the affected vehicle protection product
133.29was unlawful or otherwise improper. The adoption of this chapter does not imply that
133.30a vehicle protection product warranty was insurance before the effective date of this
133.31chapter. Nothing in this section may be construed to require the application of the penalty
133.32provisions where this section is not applicable.
133.33EFFECTIVE DATE.This section is effective January 1, 2008.

134.1    Sec. 33. [60K.365] PRODUCER TRAINING REQUIREMENTS FOR
134.2LONG-TERM CARE PARTNERSHIP PROGRAM INSURANCE PRODUCTS.
134.3    (a) An individual may not sell, solicit, or negotiate long-term care insurance
134.4unless the individual is licensed as an insurance producer for accident and health or
134.5sickness insurance or life insurance and has completed an initial training course and
134.6ongoing training every 24 months thereafter. The training shall meet the requirements of
134.7paragraph (b).
134.8    (b) The initial training course required by this subdivision shall be no less than
134.9eight hours and the ongoing training courses required by this subdivision shall be no less
134.10than four hours every 24 months. The courses shall be approved by the Department of
134.11Commerce and may be approved as continuing education courses under section 60K.56.
134.12The courses shall consist of topics related to long-term care insurance, long-term care
134.13services, and, if applicable, qualified state long-term care insurance partnership programs,
134.14including but not limited to:
134.15    (1) state and federal regulations and requirements and the relationship between
134.16qualified state long-term care insurance partnership programs and other public and private
134.17coverage of long-term care services, including Medicaid;
134.18    (2) available long-term care services and providers;
134.19    (3) changes or improvements in long-term care services or providers;
134.20    (4) alternatives to the purchase of private long-term care insurance;
134.21    (5) the effect of inflation on benefits and the importance of inflation protection; and
134.22    (6) consumer suitability standards and guidelines.
134.23    The training required by this subdivision shall not include training that is insurer or
134.24company product specific or that includes any sales or marketing information, materials,
134.25or training, other than those required by state or federal law.
134.26    (c) Insurers shall obtain verification that a producer has received the training
134.27required by this subdivision before a producer is permitted to sell, solicit, or negotiate the
134.28insurer's long-term care insurance products. Insurers shall maintain records verifying
134.29that the producer has received the training contained in this subdivision and make that
134.30verification available to the commissioner upon request.
134.31    (d) Currently licensed producers must complete the initial training course by January
134.321, 2008.
134.33EFFECTIVE DATE.This section is effective the day following final enactment.

134.34    Sec. 34. Minnesota Statutes 2006, section 60K.55, subdivision 2, is amended to read:
135.1    Subd. 2. Licensing fees. (a) In addition to fees provided for examinations and the
135.2technology surcharge required under paragraph (d), each insurance producer licensed
135.3under this chapter shall pay to the commissioner a fee of:
135.4    (1) $50 for an initial life, accident and health, property, or casualty license issued to
135.5an individual insurance producer, and a fee of $50 for each renewal;
135.6    (2) $50 for an initial variable life and variable annuity license issued to an individual
135.7insurance producer, and a fee of $50 for each renewal;
135.8    (3) $50 for an initial personal lines license issued to an individual insurance
135.9producer, and a fee of $50 for each renewal;
135.10    (4) $50 for an initial limited lines license issued to an individual insurance producer,
135.11and a fee of $50 for each renewal;
135.12    (5) $200 for an initial license issued to a business entity, and a fee of $200 for each
135.13renewal; and
135.14    (6) $500 for an initial surplus lines license, and a fee of $500 for each renewal.
135.15    (b) Initial licenses issued under this chapter are valid for a period not to exceed 24
135.16months and expire on October 31 of the renewal year assigned by the commissioner.
135.17Each renewal insurance producer license is valid for a period of 24 months. Licensees
135.18who submit renewal applications postmarked or delivered on or before October 15 of the
135.19renewal year may continue to transact business whether or not the renewal license has been
135.20received by November 1. Licensees who submit applications postmarked or delivered
135.21after October 15 of the renewal year must not transact business after the expiration date
135.22of the license until the renewal license has been received.
135.23    (c) All fees are nonreturnable, except that an overpayment of any fee may be
135.24refunded upon proper application.
135.25    (d) In addition to the fees required under paragraph (a), individual insurance
135.26producers shall pay, for each initial license and renewal, a technology surcharge of up to
135.27$40 under section 45.24, unless the commissioner has adjusted the surcharge as permitted
135.28under that section.
135.29EFFECTIVE DATE.This section is effective October 1, 2007.

135.30    Sec. 35. Minnesota Statutes 2006, section 65B.44, subdivision 2, is amended to read:
135.31    Subd. 2. Medical expense benefits. (a) Medical expense benefits shall reimburse
135.32all reasonable expenses for necessary:
135.33    (1) medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services,
135.34including prosthetic devices and items that provide relief from any injury;
135.35    (2) prescription drugs;
136.1    (3) ambulance and all other transportation expenses incurred in traveling to receive
136.2other covered medical expense benefits;
136.3    (4) sign interpreting and language translation services, other than such services
136.4provided by a family member of the patient, related to the receipt of medical, surgical,
136.5x-ray, optical, dental, chiropractic, hospital, extended care, nursing, and rehabilitative
136.6services; and
136.7    (5) hospital, extended care, and nursing services.
136.8    (b) Hospital room and board benefits may be limited, except for intensive care
136.9facilities, to the regular daily semiprivate room rates customarily charged by the institution
136.10in which the recipient of benefits is confined.
136.11    (c) Such benefits shall also include necessary remedial treatment and services
136.12recognized and permitted under the laws of this state for an injured person who relies
136.13upon spiritual means through prayer alone for healing in accordance with that person's
136.14religious beliefs.
136.15    (d) Medical expense loss includes medical expenses accrued prior to the death of a
136.16person notwithstanding the fact that benefits are paid or payable to the decedent's survivors.
136.17    (e) Medical expense benefits for rehabilitative services shall be subject to the
136.18provisions of section 65B.45.

136.19    Sec. 36. Minnesota Statutes 2006, section 65B.44, subdivision 3, is amended to read:
136.20    Subd. 3. Disability and income loss benefits. Disability and income loss benefits
136.21shall provide compensation for 85 percent of the injured person's loss of present and future
136.22gross income from inability to work proximately caused by the nonfatal injury subject
136.23to a maximum of $250 $500 per week. Loss of income includes the costs incurred by a
136.24self-employed person to hire substitute employees to perform tasks which are necessary to
136.25maintain the income of the injured person, which are normally performed by the injured
136.26person, and which cannot be performed because of the injury.
136.27    If the injured person is unemployed at the time of injury and is receiving or is
136.28eligible to receive unemployment benefits under chapter 268, but the injured person loses
136.29eligibility for those benefits because of inability to work caused by the injury, disability
136.30and income loss benefits shall provide compensation for the lost benefits in an amount
136.31equal to the unemployment benefits which otherwise would have been payable, subject to
136.32a maximum of $250 $500 per week.
136.33    Compensation under this subdivision shall be reduced by any income from substitute
136.34work actually performed by the injured person or by income the injured person would
137.1have earned in available appropriate substitute work which the injured person was capable
137.2of performing but unreasonably failed to undertake.
137.3    For the purposes of this section "inability to work" means disability which prevents
137.4the injured person from engaging in any substantial gainful occupation or employment
137.5on a regular basis, for wage or profit, for which the injured person is or may by training
137.6become reasonably qualified. If the injured person returns to employment and is unable by
137.7reason of the injury to work continuously, compensation for lost income shall be reduced
137.8by the income received while the injured person is actually able to work. The weekly
137.9maximums may not be prorated to arrive at a daily maximum, even if the injured person
137.10does not incur loss of income for a full week.
137.11    For the purposes of this section, an injured person who is "unable by reason of the
137.12injury to work continuously" includes, but is not limited to, a person who misses time
137.13from work, including reasonable travel time, and loses income, vacation, or sick leave
137.14benefits, to obtain medical treatment for an injury arising out of the maintenance or use
137.15of a motor vehicle.

137.16    Sec. 37. Minnesota Statutes 2006, section 65B.44, subdivision 4, is amended to read:
137.17    Subd. 4. Funeral and burial expenses. Funeral and burial benefits shall be
137.18reasonable expenses not in excess of $2,000 $5,000, including expenses for cremation or
137.19delivery under the Uniform Anatomical Gift Act (1987), sections 525.921 to 525.9224.

137.20    Sec. 38. Minnesota Statutes 2006, section 65B.44, subdivision 5, is amended to read:
137.21    Subd. 5. Replacement service and loss. Replacement service loss benefits shall
137.22reimburse all expenses reasonably incurred by or on behalf of the nonfatally injured
137.23person in obtaining usual and necessary substitute services in lieu of those that, had the
137.24injured person not been injured, the injured person would have performed not for income
137.25but for direct personal benefit or for the benefit of the injured person's household; if
137.26the nonfatally injured person normally, as a full time responsibility, provides care and
137.27maintenance of a home with or without children, the benefit to be provided under this
137.28subdivision shall be the reasonable value of such care and maintenance or the reasonable
137.29expenses incurred in obtaining usual and necessary substitute care and maintenance of
137.30the home, whichever is greater. These benefits shall be subject to a maximum of $200
137.31$600 per week. All replacement services loss sustained on the date of injury and the first
137.32seven days thereafter is excluded in calculating replacement services loss.

137.33    Sec. 39. Minnesota Statutes 2006, section 65B.47, subdivision 7, is amended to read:
138.1    Subd. 7. Adding policies together. Unless a policyholder makes a specific election
138.2not to have two or more policies added together the limit of liability for basic economic
138.3loss benefits for two or more motor vehicles may not must be added together to determine
138.4the limit of insurance coverage available to an injured person for any one accident. An
138.5insurer shall notify policyholders that they may elect not to have two or more policies
138.6added together.

138.7    Sec. 40. Minnesota Statutes 2006, section 65B.54, subdivision 1, is amended to read:
138.8    Subdivision 1. Payment of basic economic loss benefits. Basic economic loss
138.9benefits are payable monthly as loss accrues. Loss accrues not when injury occurs, but as
138.10income loss, replacement services loss, survivor's economic loss, survivor's replacement
138.11services loss, or medical or funeral expense is incurred. Benefits are overdue if not
138.12paid within 30 days after the reparation obligor receives reasonable proof of the fact
138.13and amount of loss realized, unless the reparation obligor elects to accumulate claims
138.14for periods not exceeding 31 days and pays them within 15 days after the period of
138.15accumulation. However, if the insurer notifies the insured that it is denying benefits, the
138.16insured need not continue to provide the insurer with proof of the bills, losses, or expenses.
138.17If reasonable proof is supplied as to only part of a claim, and the part totals $100 or more,
138.18the part is overdue if not paid within the time provided by this section. Medical or funeral
138.19expense benefits may be paid by the reparation obligor directly to persons supplying
138.20products, services, or accommodations to the claimant.

138.21    Sec. 41. Minnesota Statutes 2006, section 65B.54, is amended by adding a subdivision
138.22to read:
138.23    Subd. 6. Unethical practices. (a) A licensed health care provider or attorney shall
138.24not initiate direct contact, in person, over the telephone, or by other electronic means,
138.25with any person who has suffered an injury arising out of the maintenance or use of an
138.26automobile, for the purpose of influencing that person to receive treatment or to purchase
138.27any good, item, or service from the licensee or attorney or anyone associated with the
138.28licensee or attorney. This subdivision prohibits such direct contact whether initiated by the
138.29licensee or attorney individually or on behalf of the licensee or attorney by any employee,
138.30independent contractor, agent, or third party. This subdivision does not apply when an
138.31injured person voluntarily initiates contact with a licensee or attorney.
138.32    (b) This subdivision does not prohibit licensees or attorneys from mailing advertising
138.33literature directly to such persons, so long as:
139.1    (1) the word "ADVERTISEMENT" appears clearly and conspicuously at the
139.2beginning of the written materials;
139.3    (2) the name of the individual licensee or attorney appears clearly and conspicuously
139.4within the written materials;
139.5    (3) the licensee or attorney is clearly identified as a licensed health care provider
139.6within the written materials; and
139.7    (4) the licensee or attorney does not initiate, individually or through any employee,
139.8independent contractor, agent, or third party, direct contact with the person after the
139.9written materials are sent.
139.10    (c) This subdivision does not apply to:
139.11    (1) advertising that does not involve direct contact with specific prospective patients,
139.12in public media such as telephone directories, professional directories, ads in newspapers
139.13and other periodicals, radio or television ads, Web sites, billboards, or similar media; or
139.14    (2) general marketing practices such as giving lectures; participating in special
139.15events, trade shows, or meetings of organizations; or making presentations relative to
139.16the benefits of chiropractic treatment; or
139.17    (3) contact with friends or relatives, or statements made in a social setting.
139.18    (d) A violation of this subdivision is grounds for the licensing authority or Office of
139.19Lawyers Professional Responsibility to take disciplinary action against the licensee or
139.20attorney, including revocation in appropriate cases.

139.21    Sec. 42. Minnesota Statutes 2006, section 72A.201, subdivision 6, is amended to read:
139.22    Subd. 6. Standards for automobile insurance claims handling, settlement offers,
139.23and agreements. In addition to the acts specified in subdivisions 4, 5, 7, 8, and 9, the
139.24following acts by an insurer, adjuster, or a self-insured or self-insurance administrator
139.25constitute unfair settlement practices:
139.26    (1) if an automobile insurance policy provides for the adjustment and settlement
139.27of an automobile total loss on the basis of actual cash value or replacement with like
139.28kind and quality and the insured is not an automobile dealer, failing to offer one of the
139.29following methods of settlement:
139.30    (a) comparable and available replacement automobile, with all applicable taxes,
139.31license fees, at least pro rata for the unexpired term of the replaced automobile's license,
139.32and other fees incident to the transfer or evidence of ownership of the automobile paid, at
139.33no cost to the insured other than the deductible amount as provided in the policy;
139.34    (b) a cash settlement based upon the actual cost of purchase of a comparable
139.35automobile, including all applicable taxes, license fees, at least pro rata for the unexpired
140.1term of the replaced automobile's license, and other fees incident to transfer of evidence
140.2of ownership, less the deductible amount as provided in the policy. The costs must be
140.3determined by:
140.4    (i) the cost of a comparable automobile, adjusted for mileage, condition, and options,
140.5in the local market area of the insured, if such an automobile is available in that area; or
140.6    (ii) one of two or more quotations obtained from two or more qualified sources
140.7located within the local market area when a comparable automobile is not available in
140.8the local market area. The insured shall be provided the information contained in all
140.9quotations prior to settlement; or
140.10    (iii) any settlement or offer of settlement which deviates from the procedure above
140.11must be documented and justified in detail. The basis for the settlement or offer of
140.12settlement must be explained to the insured;
140.13    (2) if an automobile insurance policy provides for the adjustment and settlement
140.14of an automobile partial loss on the basis of repair or replacement with like kind and
140.15quality and the insured is not an automobile dealer, failing to offer one of the following
140.16methods of settlement:
140.17    (a) to assume all costs, including reasonable towing costs, for the satisfactory repair
140.18of the motor vehicle. Satisfactory repair includes repair of both obvious and hidden
140.19damage as caused by the claim incident. This assumption of cost may be reduced by
140.20applicable policy provision; or
140.21    (b) to offer a cash settlement sufficient to pay for satisfactory repair of the vehicle.
140.22Satisfactory repair includes repair of obvious and hidden damage caused by the claim
140.23incident, and includes reasonable towing costs;
140.24    (3) regardless of whether the loss was total or partial, in the event that a damaged
140.25vehicle of an insured cannot be safely driven, failing to exercise the right to inspect
140.26automobile damage prior to repair within five business days following receipt of
140.27notification of claim. In other cases the inspection must be made in 15 days;
140.28    (4) regardless of whether the loss was total or partial, requiring unreasonable travel
140.29of a claimant or insured to inspect a replacement automobile, to obtain a repair estimate,
140.30to allow an insurer to inspect a repair estimate, to allow an insurer to inspect repairs made
140.31pursuant to policy requirements, or to have the automobile repaired;
140.32    (5) regardless of whether the loss was total or partial, if loss of use coverage
140.33exists under the insurance policy, failing to notify an insured at the time of the insurer's
140.34acknowledgment of claim, or sooner if inquiry is made, of the fact of the coverage,
140.35including the policy terms and conditions affecting the coverage and the manner in which
140.36the insured can apply for this coverage;
141.1    (6) regardless of whether the loss was total or partial, failing to include the insured's
141.2deductible in the insurer's demands under its subrogation rights. Subrogation recovery
141.3must be shared at least on a proportionate basis with the insured, unless the deductible
141.4amount has been otherwise recovered by the insured, except that when an insurer is
141.5recovering directly from an uninsured third party by means of installments, the insured
141.6must receive the full deductible share as soon as that amount is collected and before any
141.7part of the total recovery is applied to any other use. No deduction for expenses may be
141.8made from the deductible recovery unless an attorney is retained to collect the recovery, in
141.9which case deduction may be made only for a pro rata share of the cost of retaining the
141.10attorney. An insured is not bound by any settlement of its insurer's subrogation claim with
141.11respect to the deductible amount, unless the insured receives, as a result of the subrogation
141.12settlement, the full amount of the deductible. Recovery by the insurer and receipt by the
141.13insured of less than all of the insured's deductible amount does not affect the insured's
141.14rights to recover any unreimbursed portion of the deductible from parties liable for the loss;
141.15    (7) requiring as a condition of payment of a claim that repairs to any damaged
141.16vehicle must be made by a particular contractor or repair shop or that parts, other than
141.17window glass, must be replaced with parts other than original equipment parts or engaging
141.18in any act or practice of intimidation, coercion, threat, incentive, or inducement for or
141.19against an insured to use a particular contractor or repair shop. Consumer benefits included
141.20within preferred vendor programs must not be considered an incentive or inducement.
141.21At the time a claim is reported, the insurer must provide the following advisory to the
141.22insured or claimant:
141.23    "You have the legal right to choose a repair shop to fix your vehicle. Your policy
141.24will cover the reasonable costs of repairing your vehicle to its pre-accident condition no
141.25matter where you have repairs made. Have you selected a repair shop or would you
141.26like a referral?"
141.27    After an insured has indicated that the insured has selected a repair shop, the insurer
141.28must cease all efforts to influence the insured's or claimant's choice of repair shop;
141.29    (8) where liability is reasonably clear, failing to inform the claimant in an automobile
141.30property damage liability claim that the claimant may have a claim for loss of use of
141.31the vehicle;
141.32    (9) failing to make a good faith assignment of comparative negligence percentages
141.33in ascertaining the issue of liability;
141.34    (10) failing to pay any interest required by statute on overdue payment for an
141.35automobile personal injury protection claim;
142.1    (11) if an automobile insurance policy contains either or both of the time limitation
142.2provisions as permitted by section 65B.55, subdivisions 1 and 2, failing to notify the
142.3insured in writing of those limitations at least 60 days prior to the expiration of that time
142.4limitation;
142.5    (12) if an insurer chooses to have an insured examined as permitted by section
142.665B.56, subdivision 1 , failing to notify the insured of all of the insured's rights and
142.7obligations under that statute, including the right to request, in writing, and to receive
142.8a copy of the report of the examination;
142.9    (13) failing to provide, to an insured who has submitted a claim for benefits
142.10described in section 65B.44, a complete copy of the insurer's claim file on the insured,
142.11excluding internal company memoranda, all materials that relate to any insurance fraud
142.12investigation, materials that constitute attorney work-product or that qualify for the
142.13attorney-client privilege, and medical reviews that are subject to section 145.64, within ten
142.14business days of receiving a written request from the insured. The insurer may charge
142.15the insured a reasonable copying fee. This clause supersedes any inconsistent provisions
142.16of sections 72A.49 to 72A.505;
142.17    (14) if an automobile policy provides for the adjustment or settlement of an
142.18automobile loss due to damaged window glass, failing to provide payment to the insured's
142.19chosen vendor based on a fair, competitive price that is fair and reasonable within the
142.20local industry at large.
142.21Where facts establish that a different rate in a specific geographic area actually served
142.22by the vendor is required by that market, that geographic area must be considered. For
142.23purposes of this clause, a price determined at the highest agreed upon price that the insurer
142.24pays to vendors that the insurer recommends and whose business is located in or within
142.2550 miles of the insured's city of residence or a price based upon the highest agreed upon
142.26price paid in a city of the same class size as the insured's city of residence as defined in
142.27section 410.01 shall be deemed a fair, competitive price. This clause does not prohibit
142.28an insurer from recommending a vendor to the insured or from agreeing with a vendor
142.29to perform work at an agreed-upon price, provided, however, that before recommending
142.30a vendor, the insurer shall offer its insured the opportunity to choose the vendor. If the
142.31insurer recommends a vendor, the insurer must also provide the following advisory:
142.32"Minnesota law gives you the right to go to any glass vendor you choose, and
142.33prohibits me from pressuring you to choose a particular vendor.";
142.34    (15) requiring that the repair or replacement of motor vehicle glass and related
142.35products and services be made in a particular place or shop or by a particular entity, or by
143.1otherwise limiting the ability of the insured to select the place, shop, or entity to repair or
143.2replace the motor vehicle glass and related products and services; or
143.3    (16) engaging in any act or practice of intimidation, coercion, threat, incentive, or
143.4inducement for or against an insured to use a particular company or location to provide
143.5the motor vehicle glass repair or replacement services or products. For purposes of this
143.6section, a warranty shall not be considered an inducement or incentive.

143.7    Sec. 43. Minnesota Statutes 2006, section 80A.28, subdivision 1, is amended to read:
143.8    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of
143.9$100 for every application for registration or notice filing. There shall be an additional fee
143.10of one-tenth of one percent of the maximum aggregate offering price at which the securities
143.11are to be offered in this state, and the maximum combined fees shall not exceed $300.
143.12    (b) When an application for registration is withdrawn before the effective date or a
143.13preeffective stop order is entered under section 80A.13, subdivision 1, all but the $100
143.14filing fee shall be returned. If an application to register securities is denied, the total of all
143.15fees received shall be retained.
143.16    (c) Where a filing is made in connection with a federal covered security under
143.17section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing.
143.18If the filing is made in connection with redeemable securities issued by an open end
143.19management company or unit investment trust, as defined in the Investment Company Act
143.20of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate
143.21offering price at which the securities are to be offered in this state during the notice filing
143.22period. The fee must be paid at the time of the initial filing and thereafter in connection
143.23with each renewal no later than July 1 of each year and must be sufficient to cover the
143.24shares the issuer expects to sell in this state over the next 12 months. If during a current
143.25notice filing the issuer determines it is likely to sell shares in excess of the shares for
143.26which fees have been paid to the commissioner, the issuer shall submit an amended notice
143.27filing to the commissioner under section 80A.122, subdivision 1, clause (3), together with
143.28a fee of 1/20 of one percent of the maximum aggregate offering price of the additional
143.29shares. Shares for which a fee has been paid, but which have not been sold at the time
143.30of expiration of the notice filing, may not be sold unless an additional fee to cover the
143.31shares has been paid to the commissioner as provided in this section and section 80A.122,
143.32subdivision 4a
. If the filing is made in connection with redeemable securities issued by
143.33such a company or trust, there is no maximum fee for securities filings made according to
143.34this paragraph. If the filing is made in connection with any other federal covered security
143.35under Section 18(b)(2) of the Securities Act of 1933, there is an additional fee of one-tenth
144.1of one percent of the maximum aggregate offering price at which the securities are to be
144.2offered in this state, and the combined fees shall not exceed $300. Beginning with fiscal
144.3year 2001 and continuing each fiscal year thereafter, as of the last day of each fiscal year,
144.4the commissioner shall determine the total amount of all fees that were collected under
144.5this paragraph in connection with any filings made for that fiscal year for securities of an
144.6open-end investment company on behalf of a security that is a federal covered security
144.7pursuant to section 18(b)(2) of the Securities Act of 1933. To the extent the total fees
144.8collected by the commissioner in connection with these filings exceed $25,000,000 in a
144.9fiscal year, the commissioner shall refund, on a pro rata basis, to all persons who paid any
144.10fees for that fiscal year, the amount of fees collected by the commissioner in excess of
144.11$25,000,000. No individual refund is required of amounts of $100 or less for a fiscal year.

144.12    Sec. 44. Minnesota Statutes 2006, section 80A.65, subdivision 1, is amended to read:
144.13    Subdivision 1. Registration or notice filing fee. (a) There shall be a filing fee of
144.14$100 for every application for registration or notice filing. There shall be an additional fee
144.15of one-tenth of one percent of the maximum aggregate offering price at which the securities
144.16are to be offered in this state, and the maximum combined fees shall not exceed $300.
144.17    (b) When an application for registration is withdrawn before the effective date
144.18or a preeffective stop order is entered under section 80A.54, all but the $100 filing fee
144.19shall be returned. If an application to register securities is denied, the total of all fees
144.20received shall be retained.
144.21    (c) Where a filing is made in connection with a federal covered security under
144.22section 18(b)(2) of the Securities Act of 1933, there is a fee of $100 for every initial filing.
144.23If the filing is made in connection with redeemable securities issued by an open end
144.24management company or unit investment trust, as defined in the Investment Company Act
144.25of 1940, there is an additional annual fee of 1/20 of one percent of the maximum aggregate
144.26offering price at which the securities are to be offered in this state during the notice filing
144.27period. The fee must be paid at the time of the initial filing and thereafter in connection
144.28with each renewal no later than July 1 of each year and must be sufficient to cover the
144.29shares the issuer expects to sell in this state over the next 12 months. If during a current
144.30notice filing the issuer determines it is likely to sell shares in excess of the shares for which
144.31fees have been paid to the administrator, the issuer shall submit an amended notice filing
144.32to the administrator under section 80A.50, together with a fee of 1/20 of one percent of the
144.33maximum aggregate offering price of the additional shares. Shares for which a fee has
144.34been paid, but which have not been sold at the time of expiration of the notice filing, may
144.35not be sold unless an additional fee to cover the shares has been paid to the administrator
145.1as provided in this section and section 80A.50. If the filing is made in connection with
145.2redeemable securities issued by such a company or trust, there is no maximum fee for
145.3securities filings made according to this paragraph. If the filing is made in connection
145.4with any other federal covered security under Section 18(b)(2) of the Securities Act of
145.51933, there is an additional fee of one-tenth of one percent of the maximum aggregate
145.6offering price at which the securities are to be offered in this state, and the combined fees
145.7shall not exceed $300. Beginning with fiscal year 2001 and continuing each fiscal year
145.8thereafter, as of the last day of each fiscal year, the administrator shall determine the total
145.9amount of all fees that were collected under this paragraph in connection with any filings
145.10made for that fiscal year for securities of an open-end investment company on behalf of a
145.11security that is a federal covered security pursuant to section 18(b)(2) of the Securities
145.12Act of 1933. To the extent the total fees collected by the administrator in connection
145.13with these filings exceed $25,000,000 in a fiscal year, the administrator shall refund, on
145.14a pro rata basis, to all persons who paid any fees for that fiscal year, the amount of fees
145.15collected by the administrator in excess of $25,000,000. No individual refund is required
145.16of amounts of $100 or less for a fiscal year.

145.17    Sec. 45. Minnesota Statutes 2006, section 82.24, subdivision 1, is amended to read:
145.18    Subdivision 1. Amounts. The following fees shall be paid to the commissioner:
145.19    (a) a fee of $150 for each initial individual broker's license, and a fee of $100 for
145.20each renewal thereof;
145.21    (b) a fee of $70 for each initial salesperson's license, and a fee of $40 for each
145.22renewal thereof;
145.23    (c) a fee of $85 for each initial real estate closing agent license, and a fee of $60
145.24for each renewal thereof;
145.25    (d) a fee of $150 for each initial corporate, limited liability company, or partnership
145.26license, and a fee of $100 for each renewal thereof;
145.27    (e) a fee for payment to the education, research and recovery fund in accordance
145.28with section 82.43;
145.29    (f) a fee of $20 for each transfer;
145.30    (g) a fee of $50 for license reinstatement; and
145.31    (h) a fee of $20 for reactivating a corporate, limited liability company, or partnership
145.32license without land; and
145.33    (i) in addition to the fees required under this subdivision, individual licensees under
145.34clauses (a) and (b) shall pay, for each initial license and renewal, a technology surcharge
146.1of up to $40 under section 45.24, unless the commissioner has adjusted the surcharge
146.2as permitted under that section.
146.3EFFECTIVE DATE.This section is effective the day following final enactment.

146.4    Sec. 46. Minnesota Statutes 2006, section 82.24, subdivision 4, is amended to read:
146.5    Subd. 4. Deposit of fees. Unless otherwise provided by this chapter, all fees
146.6collected under this chapter shall be deposited in the state treasury. The technology
146.7surcharge shall be deposited as required under section 45.24.
146.8EFFECTIVE DATE.This section is effective the day following final enactment.

146.9    Sec. 47. Minnesota Statutes 2006, section 82B.09, subdivision 1, is amended to read:
146.10    Subdivision 1. Amounts. (a) The following fees must be paid to the commissioner:
146.11    (1) $150 for each initial individual real estate appraiser's license; and
146.12    (2) $100 for each renewal.
146.13    (b) In addition to the fees required under this subdivision, individual real estate
146.14appraisers shall pay a technology surcharge of up to $40 under section 45.24, unless the
146.15commissioner has adjusted the surcharge as permitted under that section.
146.16EFFECTIVE DATE.This section is effective the day following final enactment.

146.17    Sec. 48. Minnesota Statutes 2006, section 118A.03, subdivision 2, is amended to read:
146.18    Subd. 2. In lieu of surety bond. The following are the allowable forms of collateral
146.19in lieu of a corporate surety bond:
146.20    (1) United States government Treasury bills, Treasury notes, Treasury bonds;
146.21    (2) issues of United States government agencies and instrumentalities as quoted by a
146.22recognized industry quotation service available to the government entity;
146.23    (3) general obligation securities of any state or local government with taxing powers
146.24which is rated "A" or better by a national bond rating service, or revenue obligation
146.25securities of any state or local government with taxing powers which is rated "AA" or
146.26better by a national bond rating service;
146.27    (4) unrated general obligation securities of a local government with taxing powers
146.28may be pledged as collateral against funds deposited by that same local government entity;
146.29    (5) irrevocable standby letters of credit issued by Federal Home Loan Banks to a
146.30municipality accompanied by written evidence that the bank's public debt is rated "AA" or
146.31better by Moody's Investors Service, Inc., or Standard & Poor's Corporation; and
146.32    (6) time deposits that are fully insured by any federal agency.

147.1    Sec. 49. Minnesota Statutes 2006, section 148.102, is amended by adding a subdivision
147.2to read:
147.3    Subd. 3a. Reparation obligors. A reparation obligor as defined in section 65B.43,
147.4subdivision 9, may submit any relevant information to the board in any case in which
147.5the reparation obligor has reason to believe that charges being billed by a licensee are
147.6fraudulent, unreasonable, or inconsistent with treatment actually received by the injured
147.7party involved.
147.8    A reparation obligor that makes a report under this section shall provide the board
147.9with any additional information, related to the reported activities, requested by the board.

147.10    Sec. 50. Minnesota Statutes 2006, section 239.101, subdivision 3, is amended to read:
147.11    Subd. 3. Petroleum inspection fee. (a) An inspection fee is imposed (1) on
147.12petroleum products when received by the first licensed distributor, and (2) on petroleum
147.13products received and held for sale or use by any person when the petroleum products
147.14have not previously been received by a licensed distributor. The petroleum inspection
147.15fee is $1 for every 1,000 gallons received. The commissioner of revenue shall collect
147.16the fee. The revenue from 81 cents of the fee is appropriated to the commissioner of
147.17commerce for the cost of operations of the Division of Weights and Measures, petroleum
147.18supply monitoring, and the oil burner retrofit program to make grants to providers of
147.19low-income weatherization services to install renewable energy equipment in households
147.20that are eligible for weatherization assistance under Minnesota's weatherization assistance
147.21program state plan. The remainder of the fee must be deposited in the general fund.
147.22    (b) The commissioner of revenue shall credit a person for inspection fees previously
147.23paid in error or for any material exported or sold for export from the state upon filing of a
147.24report as prescribed by the commissioner of revenue.
147.25    (c) The commissioner of revenue may collect the inspection fee along with any
147.26taxes due under chapter 296A.

147.27    Sec. 51. [325E.027] DISCRIMINATION PROHIBITION.
147.28    (a) No dealer or distributor of liquid propane gas or number 1 or number 2 fuel oil
147.29who has signed a low-income home energy assistance program vendor agreement with the
147.30department of commerce may refuse to deliver liquid propane gas or number 1 or number
147.312 fuel oil to any person located within the dealer's or distributor's normal delivery area
147.32who receives direct grants under the low-income home energy assistance program if:
147.33    (1) the person has requested delivery;
147.34    (2) the dealer or distributor has product available;
148.1    (3) the person requesting delivery is capable of making full payment at the time of
148.2delivery; and
148.3    (4) the person is not in arrears regarding any previous fuel purchase from that dealer
148.4or distributor.
148.5    (b) A dealer or distributor making delivery to a person receiving direct grants
148.6under the low-income home energy assistance program may not charge that person any
148.7additional costs or fees that would not be charged to any other customer and must make
148.8available to that person any discount program on the same basis as the dealer or distributor
148.9makes available to any other customer.

148.10    Sec. 52. Minnesota Statutes 2006, section 325E.311, subdivision 6, is amended to read:
148.11    Subd. 6. Telephone solicitation. "Telephone solicitation" means any voice
148.12communication over a telephone line for the purpose of encouraging the purchase or
148.13rental of, or investment in, property, goods, or services, whether the communication is
148.14made by a live operator, through the use of an automatic dialing-announcing device as
148.15defined in section 325E.26, subdivision 2, or by other means. Telephone solicitation
148.16does not include communications:
148.17    (1) to any residential subscriber with that subscriber's prior express invitation or
148.18permission; or
148.19    (2) by or on behalf of any person or entity with whom a residential subscriber has a
148.20prior or current business or personal relationship.
148.21Telephone solicitation also does not include communications if the caller is identified by a
148.22caller identification service and the call is:
148.23    (i) by or on behalf of an organization that is identified as a nonprofit organization
148.24under state or federal law, unless the organization is a debt management services provider
148.25defined in section 332A.02;
148.26    (ii) by a person soliciting without the intent to complete, and who does not in
148.27fact complete, the sales presentation during the call, but who will complete the sales
148.28presentation at a later face-to-face meeting between the solicitor who makes the call
148.29and the prospective purchaser; or
148.30    (iii) by a political party as defined under section 200.02, subdivision 6.
148.31EFFECTIVE DATE.This section is effective January 1, 2008.

148.32    Sec. 53. Minnesota Statutes 2006, section 325N.01, is amended to read:
148.33325N.01 DEFINITIONS.
149.1    The definitions in paragraphs (a) to (h) apply to sections 325N.01 to 325N.09.
149.2    (a) "Foreclosure consultant" means any person who, directly or indirectly, makes
149.3any solicitation, representation, or offer to any owner to perform for compensation or
149.4who, for compensation, performs any service which the person in any manner represents
149.5will in any manner do any of the following:
149.6    (1) stop or postpone the foreclosure sale;
149.7    (2) obtain any forbearance from any beneficiary or mortgagee;
149.8    (3) assist the owner to exercise the right of reinstatement provided in section 580.30;
149.9    (4) obtain any extension of the period within which the owner may reinstate the
149.10owner's obligation;
149.11    (5) obtain any waiver of an acceleration clause contained in any promissory note or
149.12contract secured by a mortgage on a residence in foreclosure or contained in the mortgage;
149.13    (6) assist the owner in foreclosure or loan default to obtain a loan or advance
149.14of funds;
149.15    (7) avoid or ameliorate the impairment of the owner's credit resulting from the
149.16recording of a notice of default or the conduct of a foreclosure sale; or
149.17    (8) save the owner's residence from foreclosure.
149.18    (b) A foreclosure consultant does not include any of the following:
149.19    (1) a person licensed to practice law in this state when the person renders service
149.20in the course of his or her practice as an attorney-at-law;
149.21    (2) a person licensed as a debt prorater under sections 332.12 to 332.29 management
149.22services provider under chapter 332A, when the person is acting as a debt prorater
149.23management services provider as defined in these sections that chapter;
149.24    (3) a person licensed as a real estate broker or salesperson under chapter 82 when the
149.25person engages in acts whose performance requires licensure under that chapter unless the
149.26person is engaged in offering services designed to, or purportedly designed to, enable the
149.27owner to retain possession of the residence in foreclosure;
149.28    (4) a person licensed as an accountant under chapter 326A when the person is acting
149.29in any capacity for which the person is licensed under those provisions;
149.30    (5) a person or the person's authorized agent acting under the express authority
149.31or written approval of the Department of Housing and Urban Development or other
149.32department or agency of the United States or this state to provide services;
149.33    (6) a person who holds or is owed an obligation secured by a lien on any residence
149.34in foreclosure when the person performs services in connection with this obligation or lien
149.35if the obligation or lien did not arise as the result of or as part of a proposed foreclosure
149.36reconveyance;
150.1    (7) any person or entity doing business under any law of this state, or of the United
150.2States relating to banks, trust companies, savings and loan associations, industrial loan and
150.3thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee
150.4which is a United States Department of Housing and Urban Development approved
150.5mortgagee and any subsidiary or affiliate of these persons or entities, and any agent or
150.6employee of these persons or entities while engaged in the business of these persons
150.7or entities;
150.8    (8) a person licensed as a residential mortgage originator or servicer pursuant to
150.9chapter 58, when acting under the authority of that license or a foreclosure purchaser as
150.10defined in section 325N.10;
150.11    (9) a nonprofit agency or organization that offers counseling or advice to an owner
150.12of a home in foreclosure or loan default if they do not contract for services with for-profit
150.13lenders or foreclosure purchasers; and
150.14    (10) a judgment creditor of the owner, to the extent that the judgment creditor's claim
150.15accrued prior to the personal service of the foreclosure notice required by section 580.03,
150.16but excluding a person who purchased the claim after such personal service.
150.17    (c) "Foreclosure reconveyance" means a transaction involving:
150.18    (1) the transfer of title to real property by a foreclosed homeowner during a
150.19foreclosure proceeding, either by transfer of interest from the foreclosed homeowner or
150.20by creation of a mortgage or other lien or encumbrance during the foreclosure process
150.21that allows the acquirer to obtain title to the property by redeeming the property as
150.22a junior lienholder; and
150.23    (2) the subsequent conveyance, or promise of a subsequent conveyance, of an interest
150.24back to the foreclosed homeowner by the acquirer or a person acting in participation with
150.25the acquirer that allows the foreclosed homeowner to possess the real property following
150.26the completion of the foreclosure proceeding, which interest includes, but is not limited to,
150.27an interest in a contract for deed, purchase agreement, option to purchase, or lease.
150.28    (d) "Person" means any individual, partnership, corporation, limited liability
150.29company, association, or other group, however organized.
150.30    (e) "Service" means and includes, but is not limited to, any of the following:
150.31    (1) debt, budget, or financial counseling of any type;
150.32    (2) receiving money for the purpose of distributing it to creditors in payment or
150.33partial payment of any obligation secured by a lien on a residence in foreclosure;
150.34    (3) contacting creditors on behalf of an owner of a residence in foreclosure;
151.1    (4) arranging or attempting to arrange for an extension of the period within which
151.2the owner of a residence in foreclosure may cure the owner's default and reinstate his or
151.3her obligation pursuant to section 580.30;
151.4    (5) arranging or attempting to arrange for any delay or postponement of the time of
151.5sale of the residence in foreclosure;
151.6    (6) advising the filing of any document or assisting in any manner in the preparation
151.7of any document for filing with any bankruptcy court; or
151.8    (7) giving any advice, explanation, or instruction to an owner of a residence in
151.9foreclosure, which in any manner relates to the cure of a default in or the reinstatement
151.10of an obligation secured by a lien on the residence in foreclosure, the full satisfaction of
151.11that obligation, or the postponement or avoidance of a sale of a residence in foreclosure,
151.12pursuant to a power of sale contained in any mortgage.
151.13    (f) "Residence in foreclosure" means residential real property consisting of one to
151.14four family dwelling units, one of which the owner occupies as his or her principal place
151.15of residence, and against which there is an outstanding notice of pendency of foreclosure,
151.16recorded pursuant to section 580.032, or against which a summons and complaint has
151.17been served under chapter 581.
151.18    (g) "Owner" means the record owner of the residential real property in foreclosure at
151.19the time the notice of pendency was recorded, or the summons and complaint served.
151.20    (h) "Contract" means any agreement, or any term in any agreement, between
151.21a foreclosure consultant and an owner for the rendition of any service as defined in
151.22paragraph (e).
151.23EFFECTIVE DATE.This section is effective January 1, 2008.

151.24    Sec. 54. Minnesota Statutes 2006, section 332.54, subdivision 7, is amended to read:
151.25    Subd. 7. Fees. The fee for a credit services organization's registration is $100
151.26$1,000 for issuance or renewal for each location of business.
151.27EFFECTIVE DATE; APPLICATION.This section is effective July 1, 2007, and
151.28applies to registrations issued or renewed on or after that date.

151.29    Sec. 55. [332A.02] DEFINITIONS.
151.30    Subdivision 1. Scope. Unless a different meaning is clearly indicated by the context,
151.31for the purposes of this chapter the terms defined in this section have the meanings given
151.32them.
152.1    Subd. 2. Accreditation. "Accreditation" means certification as an accredited
152.2credit counseling provider by the International Standards Organization or the Council on
152.3Accreditation.
152.4    Subd. 3. Attorney general. "Attorney general" means the attorney general of the
152.5state of Minnesota.
152.6    Subd. 4. Commissioner. "Commissioner" means commissioner of commerce.
152.7    Subd. 5. Controlling or affiliated party. "Controlling or affiliated party" means
152.8any person directly or indirectly controlling, controlled by, or under common control
152.9with another person.
152.10    Subd. 6. Debt management services agreement. "Debt management services
152.11agreement" means the written contract between the debt management services provider
152.12and the debtor.
152.13    Subd. 7. Debt management services plan. "Debt management services plan"
152.14means the debtor's individualized package of debt management services set forth in the
152.15debt management services agreement.
152.16    Subd. 8. Debt management services provider. "Debt management services
152.17provider" means any person offering or providing debt management services to a debtor
152.18domiciled in this state, regardless of whether or not a fee is charged for the services and
152.19regardless of whether the person maintains a physical presence in the state. This term does
152.20not include services performed by the following when engaged in the regular course of
152.21their respective businesses and professions:
152.22    (1) attorneys at law, escrow agents, accountants, broker-dealers in securities;
152.23    (2) state or national banks, trust companies, savings associations, title insurance
152.24companies, insurance companies, and all other lending institutions duly authorized to
152.25transact business in Minnesota, provided no fee is charged for the service;
152.26    (3) persons who, as employees on a regular salary or wage of an employer not
152.27engaged in the business of debt management, perform credit services for their employer;
152.28    (4) public officers acting in their official capacities and persons acting as a debt
152.29management services provider pursuant to court order;
152.30    (5) any person while performing services incidental to the dissolution, winding up,
152.31or liquidation of a partnership, corporation, or other business enterprise;
152.32    (6) the state, its political subdivisions, public agencies, and their employees;
152.33    (7) credit unions and collection agencies, provided no fee is charged for the service;
152.34    (8) "qualified organizations" designated as representative payees for purposes of the
152.35Social Security and Supplemental Security Income Representative Payee System and the
152.36federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508; and
153.1    (9) accelerated mortgage payment providers. "Accelerated mortgage payment
153.2providers" are persons who, after satisfying the requirements of sections 332.30 to
153.3332.303, receive funds to make mortgage payments to a lender or lenders, on behalf
153.4of mortgagors, in order to exceed regularly scheduled minimum payment obligations
153.5under the terms of the indebtedness. The term does not include: (i) persons or entities
153.6described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and
153.7thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to
153.8make loans under section 47.20, subdivision 1. For purposes of this clause and sections
153.9332.30 to 332.303, "lender" means the original lender or that lender's assignee, whichever
153.10is the current mortgage holder.
153.11    Subd. 9. Debt management services. "Debt management services" means the
153.12provision of any one or more of the following:
153.13    (1) managing the financial affairs of an individual by distributing income or money
153.14to the individual's creditors;
153.15    (2) receiving funds for the purpose of distributing the funds among creditors in
153.16payment or partial payment of obligations of a debtor; or
153.17    (3) settling, adjusting, prorating, pooling, or liquidating the indebtedness of a debtor.
153.18Any person so engaged or holding out as so engaged is deemed to be engaged in the
153.19provision of debt management services regardless of whether or not a fee is charged for
153.20such services.
153.21    Subd. 10. Debtor. "Debtor" means the person for whom the debt prorating service
153.22is performed.
153.23    Subd. 11. Person. "Person" means any individual, firm, partnership, association,
153.24or corporation.
153.25    Subd. 12. Registrant. "Registrant" means any person registered by the
153.26commissioner pursuant to this chapter and, where used in conjunction with an act or
153.27omission required or prohibited by this chapter, shall mean any person performing debt
153.28management services.
153.29EFFECTIVE DATE.This section is effective January 1, 2008.

153.30    Sec. 56. [332A.03] REQUIREMENT OF REGISTRATION.
153.31    On or after August 1, 2007, it is unlawful for any person, whether or not located in
153.32this state, to operate as a debt management services provider or provide debt management
153.33services, including but not limited to offering, advertising, or executing or causing to
153.34be executed any debt management services or debt management services agreement,
153.35except as authorized by law without first becoming registered as provided in this
154.1chapter. A person who possesses a valid license as a debt prorater that was issued by the
154.2commissioner before August 1, 2007, is deemed to be registered as a debt management
154.3services provider until the date the debt prorater license expires, at which time the licensee
154.4must obtain a renewal as a debt management services provider in compliance with this
154.5chapter. Debt proraters who were not required to be licensed as debt proraters before
154.6August 1, 2007, may continue to provide debt management services without complying
154.7with this chapter to those debtors who entered into a contract to participate in a debt
154.8management plan before August 1, 2007, except that the debt prorater must comply with
154.9section 332A.13, subdivision 2.
154.10EFFECTIVE DATE.This section is effective January 1, 2008.

154.11    Sec. 57. [332A.04] REGISTRATION.
154.12    Subdivision 1. Form. Application for registration to operate as a debt management
154.13services provider in this state must be made in writing to the commissioner, under oath, in
154.14the form prescribed by the commissioner, and must contain:
154.15    (1) the full name of each principal of the entity applying;
154.16    (2) the address, which must not be a post office box, and the telephone number and,
154.17if applicable, e-mail address, of the applicant;
154.18    (3) identification of the trust account required under section 332A.13;
154.19    (4) consent to the jurisdiction of the courts of this state;
154.20    (5) the name and address of the registered agent authorized to accept service of
154.21process on behalf of the applicant or appointment of the commissioner as the applicant's
154.22agent for purposes of accepting service of process;
154.23    (6) disclosure of:
154.24    (i) whether any controlling or affiliated party has ever been convicted of a crime
154.25or found civilly liable for an offense involving moral turpitude, including forgery,
154.26embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to
154.27defraud, or any other similar offense or violation, or any violation of a federal or state law
154.28or regulation in connection with activities relating to the rendition of debt management
154.29services or involving any consumer fraud, false advertising, deceptive trade practices, or
154.30similar consumer protection law;
154.31    (ii) any judgments, private or public litigation, tax liens, written complaints,
154.32administrative actions, or investigations by any government agency against the applicant
154.33or any officer, director, manager, or shareholder owning more than five percent interest
154.34in the applicant, unresolved or otherwise, filed or otherwise commenced within the
154.35preceding ten years;
155.1    (iii) whether the applicant or any person employed by the applicant has had a record
155.2of having defaulted in the payment of money collected for others, including the discharge
155.3of debts through bankruptcy proceedings; and
155.4    (iv) whether the applicant's license or registration to provide debt management
155.5services in any other state has ever been revoked or suspended;
155.6    (7) a copy of the applicant's standard debt management services agreement that the
155.7applicant intends to execute with debtors;
155.8    (8) proof of accreditation of:
155.9    (i) the debt management services provider; and
155.10    (ii) all individuals employed by, under contract with, or otherwise agents of the
155.11provider who offer to provide or provide debt management services; and
155.12    (9) any other information and material as the commissioner may require.
155.13    Subd. 2. Term and scope of registration. The registration must remain in full
155.14force and effect for one calendar year or until it is surrendered by the licensee or revoked
155.15or suspended by the commissioner. The registration is limited solely to the business
155.16of providing debt management services.
155.17    Subd. 3. Fees. The registration application must be accompanied by payment of
155.18$1,000 as a registration fee.
155.19    Subd. 4. Bond. The registration application must be accompanied by payment of
155.20the premium for a surety bond in which the applicant shall be the obligor, in a sum to be
155.21determined by the commissioner but not less than $5,000, and in which an insurance
155.22company, which is duly authorized by the state of Minnesota to transact the business of
155.23fidelity and surety insurance, shall be a surety. However, the commissioner may accept
155.24a deposit in cash, or securities that may legally be purchased by savings banks or for
155.25trust funds of an aggregate market value equal to the bond requirement, in lieu of the
155.26surety bond. The cash or securities must be deposited with the commissioner of finance.
155.27The commissioner may also require a fidelity bond in an appropriate amount covering
155.28employees of any applicant. Each branch office or additional place of business of an
155.29applicant must be bonded as provided in this subdivision. In determining the bond amount
155.30necessary for the maintenance of any office, whether it is a surety bond, fidelity bond, or
155.31both, the commissioner shall consider the financial responsibility, experience, character,
155.32and general fitness of the debt management services provider and its operators and owners;
155.33the volume of business handled or proposed to be handled; the location of the office
155.34and the geographical area served or proposed to be served; and other information the
155.35commissioner may deem pertinent based upon past performance, previous examinations,
155.36annual reports, and manner of business conducted in other states.
156.1    Subd. 5. Condition of bond. The bond must run to the state of Minnesota for the
156.2use of the state and of any person or persons who may have a cause of action against the
156.3obligor arising out of the obligor's activities as a debt management services provider to
156.4a debtor domiciled in this state. The bond must be conditioned that the obligor will not
156.5commit any fraudulent act and will faithfully conform to and abide by the provisions of
156.6this chapter and of all rules lawfully made by the commissioner under this chapter and
156.7pay to the state and to any such person or persons any and all money that may become
156.8due or owing to the state or to such person or persons from the obligor under and by
156.9virtue of this chapter.
156.10    Subd. 6. Right of action on bond. If the registrant has failed to account to a debtor
156.11or distribute to the debtor's creditors the amounts required by this chapter and the debt
156.12management services agreement between the debtor and registrant, the debtor or the
156.13debtor's legal representative or receiver, the commissioner, or the attorney general, shall
156.14have, in addition to all other legal remedies, a right of action in the name of the debtor
156.15on the bond or the security given under this section, for loss suffered by the debtor, not
156.16exceeding the face amount of the bond or security, and without the necessity of joining
156.17the registrant in the suit or action.
156.18    Subd. 7. Registrant list. The commissioner must maintain a list of registered debt
156.19management services providers. The list must be made available to the public in written
156.20form upon request and on the Department of Commerce Web site.
156.21EFFECTIVE DATE.This section is effective January 1, 2008.

156.22    Sec. 58. [332A.05] NONASSIGNMENT OF REGISTRATION.
156.23    A registration must not be transferred or assigned without the consent of the
156.24commissioner.
156.25EFFECTIVE DATE.This section is effective January 1, 2008.

156.26    Sec. 59. [332A.06] RENEWAL OF REGISTRATION.
156.27    Each year, each registrant under the provisions of this chapter must, not more than
156.2860 nor less than 30 days before its registration is to expire, apply to the commissioner for
156.29renewal of its registration on a form prescribed by the commissioner. The application must
156.30be signed by the registrant under penalty of perjury, contain current information on all
156.31matters required in the original application, and be accompanied by a payment of $250.
156.32The registrant must maintain a continuous surety bond that satisfies the requirements of
156.33section 332A.04, subdivision 4, provided that the commissioner may require a different
157.1amount that is at least equal to the largest amount that has accrued in the registrant's trust
157.2account during the previous year. The renewal is effective for one year.
157.3EFFECTIVE DATE.This section is effective January 1, 2008.

157.4    Sec. 60. [332A.07] OTHER DUTIES OF REGISTRANT.
157.5    Subdivision 1. Requirement to update information. A registrant must update any
157.6information required by this chapter provided in its original or renewal application not
157.7later than 90 days after the date the events precipitating the update occurred.
157.8    Subd. 2. Inspection of debtor of registration. Each registrant must maintain a
157.9copy of its registration in its files. The registrant must allow a debtor, upon request, to
157.10inspect the registration.
157.11EFFECTIVE DATE.This section is effective January 1, 2008.

157.12    Sec. 61. [332A.08] DENIAL OF REGISTRATION.
157.13    The commissioner, with notice to the applicant by certified mail sent to the address
157.14listed on the application, may deny an application for a registration upon finding that
157.15the applicant:
157.16    (1) has submitted an application required under section 332A.04 that contains
157.17incorrect, misleading, incomplete, or materially untrue information. An application is
157.18incomplete if it does not include all the information required in section 332A.04;
157.19    (2) has failed to pay any fee or pay or maintain any bond required by this chapter,
157.20or failed to comply with any order, decision, or finding of the commissioner made under
157.21and within the authority of this chapter;
157.22    (3) has violated any provision of this chapter or any rule or direction lawfully made
157.23by the commissioner under and within the authority of this chapter;
157.24    (4) or any controlling or affiliated party has ever been convicted of a crime or found
157.25civilly liable for an offense involving moral turpitude, including forgery, embezzlement,
157.26obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any
157.27other similar offense or violation, or any violation of a federal or state law or regulation
157.28in connection with activities relating to the rendition of debt management services or
157.29any consumer fraud, false advertising, deceptive trade practices, or similar consumer
157.30protection law;
157.31    (5) has had a registration or license previously revoked or suspended in this state or
157.32any other state or the applicant or licensee has been permanently or temporarily enjoined
157.33by any court of competent jurisdiction from engaging in or continuing any conduct or
158.1practice involving any aspect of the debt management services provider business; or
158.2any controlling or affiliated party has been an officer, director, manager, or shareholder
158.3owning more than a ten percent interest in a debt management services provider whose
158.4registration has previously been revoked or suspended in this state or any other state, or
158.5who has been permanently or temporarily enjoined by any court of competent jurisdiction
158.6from engaging in or continuing any conduct or practice involving any aspect of the debt
158.7management services provider business;
158.8    (6) has made any false statement or representation to the commissioner;
158.9    (7) is insolvent;
158.10    (8) refuses to fully comply with an investigation or examination of the debt
158.11management services provider by the commissioner;
158.12    (9) has improperly withheld, misappropriated, or converted any money or properties
158.13received in the course of doing business;
158.14    (10) has failed to have a trust account with an actual cash balance equal to or greater
158.15than the sum of the escrow balances of each debtor's account;
158.16    (11) has defaulted in making payments to creditors on behalf of debtors as required
158.17by agreements between the provider and debtor; or
158.18    (12) has used fraudulent, coercive, or dishonest practices, or demonstrated
158.19incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere.
158.20EFFECTIVE DATE.This section is effective January 1, 2008.

158.21    Sec. 62. [332A.09] SUSPENDING, REVOKING, OR REFUSING TO RENEW
158.22REGISTRATION.
158.23    Subdivision 1. Procedure. The commissioner may revoke, suspend, or refuse
158.24to renew any registration issued under this chapter, or may levy a civil penalty under
158.25section 45.027, or any combination of actions, if the debt management services provider
158.26or any controlling or affiliated person has committed any act or omission for which the
158.27commissioner could have refused to issue an initial registration or renew an existing
158.28registration. Revocation of or refusal to renew a registration must be upon notice and
158.29hearing as prescribed in the Administrative Procedure Act, sections 14.57 to 14.69. The
158.30notice must set a time for hearing before the commissioner not less than 20 nor more than
158.3130 days after service of the notice, provided the registrant may waive the 20-day minimum.
158.32The commissioner may, in the notice, suspend the registration for a period not to exceed 60
158.33days. Unless the notice states that the registration is suspended, pending the determination
158.34of the main issue, the registrant may continue to transact business until the final decision of
158.35the commissioner. If the registration is suspended, the commissioner shall hold a hearing
159.1and render a final determination within ten days of a request by the registrant. If the
159.2commissioner fails to do so, the suspension shall terminate and be of no force or effect.
159.3    Subd. 2. Notification of interested persons. After the notice and hearing required
159.4in subdivision 1, upon issuing an order suspending or revoking a registration or refusing to
159.5renew a registration, the commissioner may notify all individuals who have contracts with
159.6the affected registrant and all creditors who have agreed to a debt management services
159.7plan that the registration has been revoked and that the order is subject to appeal.
159.8    Subd. 3. Receiver for funds of sanctioned registrant. When an order is issued
159.9revoking or refusing to renew a registration, the commissioner may apply for, and the
159.10district court must appoint, a receiver to temporarily or permanently receive the assets of
159.11the registrant pending a final determination of the validity of the order.
159.12EFFECTIVE DATE.This section is effective January 1, 2008.

159.13    Sec. 63. [332A.10] WRITTEN DEBT MANAGEMENT SERVICES
159.14AGREEMENT.
159.15    Subdivision 1. Written agreement required. A debt management services provider
159.16may not perform any debt management services or receive any money related to a debt
159.17management plan until the provider has obtained a debt management services agreement
159.18that contains all terms of the agreement between the debt management services provider
159.19and the debtor. A debt management services agreement must be in writing, dated, and
159.20signed by the debt management services provider and the debtor. The registrant must
159.21furnish the debtor with a copy of the signed contract upon execution.
159.22    Subd. 2. Actions prior to written agreement. No person may provide debt
159.23management services for a debtor unless the person first has:
159.24    (1) provided the debtor individualized counseling and educational information
159.25that, at a minimum, addresses managing household finances, managing credit and debt,
159.26budgeting, and personal savings strategies;
159.27    (2) prepared in writing and provided to the debtor, in a form that the debtor may
159.28keep, an individualized financial analysis and a proposed debt management plan listing the
159.29debtor's known debts with specific recommendations regarding actions the debtor should
159.30take to reduce or eliminate the amount of the debts, including written disclosure that
159.31debt management services are not suitable for all debtors and that there are other ways,
159.32including bankruptcy, to deal with indebtedness;
159.33    (3) made a determination supported by an individualized financial analysis that the
159.34debtor can reasonably meet the requirements of the proposed debt management plan
160.1and that there is a net tangible benefit to the debtor of entering into the proposed debt
160.2management plan; and
160.3    (4) prepared, in a form the debtor may keep, a written list identifying all known
160.4creditors of the debtor that the provider reasonably expects to participate in the plan
160.5and the creditors, including secured creditors, that the provider reasonably expects not
160.6to participate.
160.7    Subd. 3. Required terms. (a) Each debt management services agreement must
160.8contain the following terms, which must be disclosed prominently and clearly in bold print
160.9on the front page of the agreement, segregated by bold lines from all other information on
160.10the page:
160.11    (1) the fee amount to be paid by the debtor and whether the initial fee amount is
160.12refundable or nonrefundable;
160.13    (2) the monthly fee amount or percentage to be paid by the debtor; and
160.14    (3) the total amount of fees reasonably anticipated to be paid by the debtor over
160.15the term of the agreement.
160.16    (b) Each debt management services agreement must also contain the following:
160.17    (1) a disclosure that if the amount of debt owed is increased by interest, late fees,
160.18over the limit fees, and other amounts imposed by the creditors, the length of the debt
160.19management services agreement will be extended and remain in force and that the total
160.20dollar charges agreed upon may increase at the rate agreed upon in the original contract
160.21agreement;
160.22    (2) a prominent statement describing the terms upon which the debtor may cancel
160.23the contract as set forth in section 332A.11;
160.24    (3) a detailed description of all services to be performed by the debt management
160.25services provider for the debtor;
160.26    (4) the debt management services provider's refund policy; and
160.27    (5) the debt management services provider's principal business address and the name
160.28and address of its agent in this state authorized to receive service of process.
160.29    Subd. 4. Prohibited terms. The following terms shall not be included in the debt
160.30management services agreement:
160.31    (1) a hold harmless clause;
160.32    (2) a confession of judgment, or a power of attorney to confess judgment against the
160.33debtor or appear as the debtor in any judicial proceeding;
160.34    (3) a waiver of the right to a jury trial, if applicable, in any action brought by
160.35or against a debtor;
161.1    (4) an assignment of or an order for payment of wages or other compensation for
161.2services;
161.3    (5) a provision in which the debtor agrees not to assert any claim or defense arising
161.4out of the debt management services agreement;
161.5    (6) a waiver of any provision of this chapter or a release of any obligation required
161.6to be performed on the part of the debt management services provider; or
161.7    (7) a mandatory arbitration clause.
161.8    Subd. 5. New debt management services agreements; modification of existing
161.9agreements. (a) Separate and additional debt management services agreements that
161.10comply with this chapter may be entered into by the debt management services provider
161.11and the debtor provided that no additional initial fee may be charged by the debt
161.12management services provider.
161.13    (b) Any modification of an existing debt management services agreement, including
161.14any increase in the number or amount of debts included in the debt management service,
161.15must be in writing and signed by both parties. No fees, charges, or other consideration
161.16may be demanded from the debtor for the modification, other than an increase in the
161.17amount of the monthly maintenance fee established in the original debt management
161.18services agreement.
161.19EFFECTIVE DATE.This section is effective January 1, 2008.

161.20    Sec. 64. [332A.11] RIGHT TO CANCEL.
161.21    Subdivision 1. Debtor's right to cancel. A debtor has the right to cancel the debt
161.22management services agreement without cause at any time upon ten days' written notice to
161.23the debt management services provider. In the event of cancellation, the debt management
161.24services provider must, within ten days of the cancellation, notify the debtor's creditors of
161.25the cancellation and provide a refund of all unexpended funds paid by or for the debtor to
161.26the debt management services provider.
161.27    Subd. 2. Notice of debtor's right to cancel. A debt management services
161.28agreement must contain, on its face, in an easily readable typeface immediately adjacent
161.29to the space for signature by the debtor, the following notice: "Right To Cancel: You have
161.30the right to cancel this contract at any time on ten days' written notice."
161.31    Subd. 3. Automatic termination. Upon the payment of all listed debts and
161.32fees, the debt management services agreement must automatically terminate, and all
161.33unexpended funds paid by or for the debtor to the debt management services provider
161.34must be immediately returned to the debtor.
162.1    Subd. 4. Debt management services provider's right to cancel. A debt
162.2management services provider may cancel a debt management services agreement
162.3with good cause upon 30 days' written notice to the debtor. Within ten days after the
162.4cancellation, the debt management services provider must: (1) notify the debtor's creditors
162.5of the cancellation; and (2) return to the debtor all unexpended funds paid by or for the
162.6debtor.
162.7EFFECTIVE DATE.This section is effective January 1, 2008.

162.8    Sec. 65. [332A.12] BOOKS, RECORDS, AND INFORMATION.
162.9    Subdivision 1. Records retention. Every registrant must keep, and use in the
162.10registrant's business, such books, accounts, and records, including electronic records, as
162.11will enable the commissioner to determine whether the registrant is complying with this
162.12chapter and of the rules, orders, and directives adopted by the commissioner under this
162.13chapter. Every registrant must preserve such books, accounts, and records for at least six
162.14years after making the final entry on any transaction recorded therein. Examinations of
162.15the books, records, and method of operations conducted under the supervision of the
162.16commissioner shall be done at the cost of the registrant. The cost must be assessed as
162.17determined under section 46.131.
162.18    Subd. 2. Statements to debtors. Each registrant must maintain and must make
162.19available records and accounts that will enable each debtor to ascertain the amounts
162.20paid to the creditors of the debtor. A statement showing amounts received from the
162.21debtor, disbursements to each creditor, amounts which any creditor has agreed to accept
162.22as payment in full for any debt owed the creditor by the debtor, charges deducted by
162.23the registrant, and such other information as the commissioner may prescribe, must be
162.24furnished by the registrant to the debtor at least monthly and, in addition, upon any
162.25cancellation or termination of the contract. In addition to the statements required by this
162.26subdivision, each debtor must have reasonable access, without cost, by electronic or other
162.27means, to information in the registrant's files applicable to the debtor. These statements,
162.28records, and accounts must otherwise remain confidential except for duly authorized state
162.29and government officials, the commissioner, the attorney general, the debtor, and the
162.30debtor's representative and designees. Each registrant must prepare and retain in the file of
162.31each debtor a written analysis of the debtor's income and expenses to substantiate that the
162.32plan of payment is feasible and practicable.
162.33EFFECTIVE DATE.This section is effective January 1, 2008.

163.1    Sec. 66. [332A.13] FEES, PAYMENTS, AND CONSENT OF CREDITORS.
163.2    Subdivision 1. Origination fee; credit background report cost. The registrant
163.3may charge a nonrefundable origination fee of not more than $50, which may be retained
163.4by the registrant from the initial amount paid by the debtor to the registrant.
163.5    Subd. 2. Monthly maintenance fee. The registrant may charge a periodic fee for
163.6account maintenance or other purposes, but only if the fee is reasonable for the services
163.7provided and does exceed the lesser of 15 percent of the monthly payment amount or $75.
163.8    Subd. 3. Additional fees unauthorized. A registrant may not impose any fee or
163.9other charge or receive any funds or other payment other than the initial fee or monthly
163.10maintenance fee authorized by this section.
163.11    Subd. 4. Amount of periodic payments retained. The registrant may retain as
163.12payment for the fees authorized by this section no more than 15 percent of any periodic
163.13payment made to the registrant by the debtor. The remaining 85 percent must be disbursed
163.14to listed creditors under and in accordance with the debt management services agreement.
163.15No fees or charges may be received or retained by the registrant for any handling of
163.16recurring payments. Recurring payments include current rent, mortgage, utility, telephone,
163.17maintenance as defined in section 518.27, child support, insurance premiums, and such
163.18other payments as the commissioner may by rule prescribe.
163.19    Subd. 5. Advance payments. No fees or charges may be received or retained for
163.20any payments by the debtor made more than the following number of days in advance
163.21of the date specified in the debt management services agreement on which they are due:
163.22(1) 42 days in the case of contracts requiring monthly payments; (2) 15 days in the case
163.23of agreements requiring biweekly payments; or (3) seven days in the case of agreements
163.24requiring weekly payments. For those agreements which do not require payments in
163.25specified amounts, a payment is deemed an advance payment to the extent it exceeds
163.26twice the average regular payment previously made by the debtor under that contract. This
163.27subdivision does not apply when the debtor intends to use the advance payments to satisfy
163.28future payment of obligations due within 30 days under the contract. This subdivision
163.29supersedes any inconsistent provision of this chapter.
163.30    Subd. 6. Consent of creditors. A registrant must actively seek to obtain the consent
163.31of all creditors to the debt management services plan set forth in the debt management
163.32services agreement. Consent by a creditor may be express and in writing, or may be
163.33evidenced by acceptance of a payment made under the debt management services plan
163.34set forth in the contract. The registrant must notify the debtor within ten days after any
163.35failure to obtain the required consent and of the debtor's right to cancel without penalty.
163.36The notice must be in a form as the commissioner shall prescribe. Nothing contained in
164.1this section is deemed to require the return of any origination fee and any fees earned by
164.2the registrant prior to cancellation or default.
164.3    Subd. 7. Withdrawal of creditor. Whenever a creditor withdraws from a debt
164.4management services plan, or refuses to participate in a debt management services plan,
164.5the registrant must promptly notify the debtor of the withdrawal or refusal. In no case
164.6may this notice be provided more than 15 days after the debt management services plan
164.7learns of the creditor's decision to withdraw from or refuse to participate in a plan. This
164.8notice must include the identity of the creditor withdrawing from the plan, the amount of
164.9the monthly payment to that creditor, and the right of the debtor to cancel the agreement
164.10under section 332A.11.
164.11    Subd. 8. Payments held in trust. The registrant must maintain a separate trust
164.12account and deposit in the account all payments received from the moment that they are
164.13received, except that the registrant may commingle the payment with the registrant's
164.14own property or funds, but only to the extent necessary to ensure the maintenance of a
164.15minimum balance if the financial institution at which the trust account is held requires
164.16a minimum balance to avoid the assessment of fees or penalties for failure to maintain
164.17a minimum balance. All disbursements, whether to the debtor or to the creditors of the
164.18debtor, or to the registrant, must be made from such account.
164.19    Subd. 9. Timely payment of creditors. The registrant must disburse any funds
164.20paid by or on behalf of a debtor to creditors of the consumer within 42 days after receipt
164.21of the funds, or earlier if necessary to comply with the due date in the contract between
164.22the debtor and the creditor, unless the reasonable payment of one or more of the debtor's
164.23obligations requires that the funds be held for a longer period so as to accumulate a sum
164.24certain, or where the debtor's payment is returned for insufficient funds or other reason
164.25that makes the withholding of such payments in the net interest of the debtor.
164.26EFFECTIVE DATE.This section is effective January 1, 2008.

164.27    Sec. 67. [332A.14] PROHIBITIONS.
164.28    A registrant shall not:
164.29    (1) purchase from a creditor any obligation of a debtor;
164.30    (2) use, threaten to use, seek to have used, or seek to have threatened the use of any
164.31legal process, including but not limited to garnishment and repossession of personal
164.32property, against any debtor while the debt management services agreement between the
164.33registrant and the debtor remains executory;
164.34    (3) advise a debtor to stop paying a creditor until a debt management services plan is
164.35in place;
165.1    (4) require as a condition of performing debt management services the purchase of
165.2any services, stock, insurance, commodity, or other property or any interest therein either
165.3by the debtor or the registrant;
165.4    (5) compromise any debts unless the prior written approval of the debtor has been
165.5obtained to such compromise and unless such compromise inures solely to the benefit
165.6of the debtor;
165.7    (6) receive from any debtor as security or in payment of any fee a promissory note
165.8or other promise to pay or any mortgage or other security, whether as to real or personal
165.9property;
165.10    (7) lend money or provide credit to any debtor if any interest or fee is charged,
165.11or directly or indirectly collect any fee for referring, advising, procuring, arranging, or
165.12assisting a consumer in obtaining any extension of credit or other debtor service from a
165.13lender or services provider;
165.14    (8) structure a debt management services agreement that would result in negative
165.15amortization of any debt in the plan;
165.16    (9) engage in any unfair, deceptive, or unconscionable act or practice in connection
165.17with any service provided to any debtor;
165.18    (10) offer, pay, or give any material cash fee, gift, bonus, premium, reward, or other
165.19compensation to any person for referring any prospective customer to the registrant or for
165.20enrolling a debtor in a debt management services plan, or provide any other incentives
165.21for employees or agents of the debt management services provider to induce debtors to
165.22enter into a debt management plan;
165.23    (11) receive any cash, fee, gift, bonus, premium, reward, or other compensation
165.24from any person other than the debtor or a person on the debtor's behalf in connection
165.25with activities as a registrant, provided that this paragraph does not apply to a registrant
165.26which is a bona fide nonprofit corporation duly organized under chapter 317A or under
165.27the similar laws of another state;
165.28    (12) enter into a contract with a debtor unless a thorough written budget analysis
165.29indicates that the debtor can reasonably meet the requirements of the financial adjustment
165.30plan and will be benefited by the plan;
165.31    (13) in any way charge or purport to charge or provide any debtor credit insurance in
165.32conjunction with any contract or agreement involved in the debt management services
165.33plan;
165.34    (14) operate or employ a person who is an employee or owner of a collection agency
165.35or process-serving business; or
166.1    (15) require or attempt to require payment of a sum that the registrant states,
166.2discloses, or advertises to be a voluntary contribution from the debtor.
166.3EFFECTIVE DATE.This section is effective January 1, 2008.

166.4    Sec. 68. [332A.16] ADVERTISEMENT OF DEBT MANAGEMENT SERVICES
166.5PLANS.
166.6    No debt management services provider may make false, deceptive, or misleading
166.7statements or omissions about the rates, terms, or conditions of an actual or proposed
166.8debt management services plan or its debt management services, or create the likelihood
166.9of consumer confusion or misunderstanding regarding its services, including but not
166.10limited to the following:
166.11    (1) represent that the debt management services provider is a nonprofit, not-for-profit,
166.12or has similar status or characteristics if some or all of the debt management services will
166.13be provided by a for-profit company that is a controlling or affiliated party to the debt
166.14management services provider; or
166.15    (2) make any communication that gives the impression that the debt management
166.16services provider is acting on behalf of a government agency.
166.17EFFECTIVE DATE.This section is effective January 1, 2008.

166.18    Sec. 69. [332A.17] DEBT MANAGEMENT SERVICES AGREEMENT
166.19RESCISSION.
166.20    Any debtor has the right to rescind any debt management services agreement with
166.21a debt management services provider that commits a material violation of this chapter.
166.22On rescission, all fees paid to the debt management services provider or any other person
166.23other than creditors of the debtor must be returned to the debtor entering into the debt
166.24management services agreement within ten days of rescission of the debt management
166.25services agreement.
166.26EFFECTIVE DATE.This section is effective January 1, 2008.

166.27    Sec. 70. [332A.18] ENFORCEMENT; REMEDIES.
166.28    Subdivision 1. Violation a deceptive practice. A violation of any of the provisions
166.29of this chapter is considered an unfair or deceptive trade practice under section 8.31,
166.30subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in
166.31the public interest.
167.1    Subd. 2. Private right of action. (a) A debt management services provider who
167.2fails to comply with any of the provisions of this chapter is liable under this section in
167.3an individual action for the sum of: (i) actual, incidental, and consequential damages
167.4sustained by the debtor as a result of the failure; and (ii) statutory damages of up to $1,000.
167.5    (b) A debt management services provider who fails to comply with any of the
167.6provisions of this chapter is liable under this section in a class action for the sum of: (i) the
167.7amount that each named plaintiff could recover under paragraph (a), clause (i); and (ii)
167.8such amount as the court may allow for all other class members.
167.9    (c) In determining the amount of statutory damages, the court shall consider, among
167.10other relevant factors:
167.11    (1) the frequency, nature, and persistence of noncompliance;
167.12    (2) the extent to which the noncompliance was intentional; and
167.13    (3) in the case of a class action, the number of debtors adversely affected.
167.14    (d) A plaintiff or class successful in a legal or equitable action under this section is
167.15entitled to the costs of the action, plus reasonable attorney fees.
167.16    Subd. 3. Injunctive relief. A debtor may sue a debt management services provider
167.17for temporary or permanent injunctive or other appropriate equitable relief to prevent
167.18violations of any provision of this chapter. A court must grant injunctive relief on a
167.19showing that the debt management services provider has violated any provision of this
167.20chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to
167.21prevail on allegations that the debt management services provider violated any provision
167.22of this chapter.
167.23    Subd. 4. Remedies cumulative. The remedies provided in this section are
167.24cumulative and do not restrict any remedy that is otherwise available. The provisions
167.25of this chapter are not exclusive and are in addition to any other requirements, rights,
167.26remedies, and penalties provided by law.
167.27    Subd. 5. Public enforcement. The attorney general shall enforce this chapter
167.28under section 8.31.
167.29EFFECTIVE DATE.This section is effective January 1, 2008.

167.30    Sec. 71. [332A.19] INVESTIGATION.
167.31    The commissioner may examine the books and records of every registrant and of
167.32any person engaged in the business of providing debt management services as defined in
167.33section 332A.02 at any reasonable time. The commissioner once during any calendar year
167.34may require the submission of an audit prepared by a certified public accountant of the
167.35books and records of each registrant. If the registrant has, within one year previous to the
168.1commissioner's demand, had an audit prepared for some other purpose, this audit may be
168.2submitted to satisfy the requirement of this section. The commissioner may investigate
168.3any complaint concerning violations of this chapter and may require the attendance and
168.4sworn testimony of witnesses and the production of documents.
168.5EFFECTIVE DATE.This section is effective January 1, 2008.

168.6    Sec. 72. LICENSE RENEWAL EXTENSION.
168.7    The July 31, 2007, renewal date for mortgage originators is extended to October 30,
168.82007, because of the changes to the licensing requirements made by this article.

168.9    Sec. 73. REPEALER.
168.10(a) Minnesota Statutes 2006, sections 46.043; 47.62, subdivision 5; and 58.08,
168.11subdivision 1, are repealed.
168.12(b) Minnesota Statutes 2006, sections 332.12; 332.13; 332.14; 332.15; 332.16;
168.13332.17; 332.18; 332.19; 332.20; 332.21; 332.22; 332.23; 332.24; 332.25; 332.26; 332.27;
168.14332.28; and 332.29, are repealed effective January 1, 2008.

168.15ARTICLE 6
168.16ENERGY

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

168.19    Sec. 2. [16C.141] EMPLOYEE SUGGESTIONS; ENERGY SAVINGS
168.20INCENTIVE PROGRAM.
168.21    Subdivision 1. Creation of program. The commissioner of administration must
168.22implement a program using best practices and develop policies under which state
168.23employees may receive cash awards for making suggestions that result in documented cost
168.24savings to state agencies from reduced energy usage in state-owned buildings. The cash
168.25awards must be an amount equal to half the amount of the energy costs saved by agencies
168.26in the year immediately following the implementation of the employee suggestion, up to
168.27$1,000 per suggestion. The program must include methods for documenting submission
168.28of suggestions and for documenting savings achieved as a result of these suggestions.
168.29    Subd. 2. Funding. To the extent necessary to fund the program under this section,
168.30the commissioner of administration, with approval of the commissioner of finance, may
168.31transfer a portion of the documented cost savings resulting from a suggestion under this
169.1section from the general services revolving fund to an energy savings reward account.
169.2Money in the energy savings reward account is appropriated to the commissioner for
169.3purposes of making cash rewards and paying the commissioner's incentive program
169.4developments costs and administrative expenses under this section.
169.5    Subd. 3. Report to legislature. The commissioner of administration shall report to
169.6the chairs of the senate and house of representatives committees with jurisdiction over
169.7energy policy by January 1, 2008, on the development of the incentive program, and
169.8by January 15 each year thereafter on the implementation of this section, including the
169.9ideas submitted and energy savings realized.
169.10    Subd. 4. Minnesota State Colleges and Universities. This section does not apply to
169.11the Minnesota State Colleges and Universities, except to the extent the Board of Trustees
169.12of the Minnesota State Colleges and Universities provides that the section does apply.
169.13    Subd. 5. Repeal. This section is repealed July 1, 2009.

169.14    Sec. 3. Minnesota Statutes 2006, section 116C.775, is amended to read:
169.15116C.775 SHIPMENT PRIORITIES; PRAIRIE ISLAND NUCLEAR PLANTS.
169.16    If a storage or disposal site becomes available outside of the state to accept
169.17high-level nuclear waste stored at Prairie Island or Monticello, the waste contained in dry
169.18casks shall be shipped to that site before the shipment of any waste from the spent nuclear
169.19fuel storage pool. Once waste is shipped that was contained in a cask, the cask must be
169.20decommissioned and not used for further storage.

169.21    Sec. 4. Minnesota Statutes 2006, section 116C.777, is amended to read:
169.22116C.777 SITE.
169.23    The spent fuel contents of dry casks located on Prairie Island must be moved
169.24immediately upon the availability of another site for storage of the spent fuel that is not
169.25located on Prairie Island or at Monticello.

169.26    Sec. 5. Minnesota Statutes 2006, section 116C.779, subdivision 1, is amended to read:
169.27    Subdivision 1. Renewable development account. (a) The public utility that owns
169.28the Prairie Island nuclear generating plant must transfer to a renewable development
169.29account $16,000,000 annually each year the plant is in operation, and $7,500,000 each
169.30year the plant is not in operation if ordered by the commission pursuant to paragraph
169.31(c) (d). The fund transfer must be made if nuclear waste is stored in a dry cask at the
169.32independent spent-fuel storage facility at Prairie Island for any part of a year. Funds in the
170.1account may be expended only for development of renewable energy sources. Preference
170.2must be given to development of renewable energy source projects located within the state.
170.3    (b) The public utility that owns the Monticello nuclear generating plant must transfer
170.4to the renewable development account $500,000 annually for each dry cask containing
170.5spent nuclear fuel that is located at the independent spent fuel storage installation at the
170.6Monticello nuclear generating plant when the plant is in operation and $7,500,000 each
170.7year the plant is not in operation if ordered by the commission under paragraph (d). The
170.8fund transfer must be made if nuclear waste is stored in a dry cask at the independent spent
170.9fuel storage facility at Monticello for any part of a year.
170.10    (c) Expenditures from the account may only be made after approval by order of the
170.11Public Utilities Commission upon a petition by the public utility.
170.12    (c) After discontinuation of operation of the Prairie Island nuclear plant and each
170.13year (d) If spent nuclear fuel is stored in a dry cask at the Prairie Island facility or
170.14Monticello nuclear generating plant after the plant discontinues generating electricity, the
170.15commission shall require the public utility to pay $7,500,000 for any year in which the
170.16commission finds, by the preponderance of the evidence, that the public utility did not
170.17make a good faith effort to remove the spent nuclear fuel stored at the Prairie Island or
170.18Monticello plant to a permanent or interim storage site out of the state. This determination
170.19shall be made at least every two years.

170.20    Sec. 6. Minnesota Statutes 2006, section 116C.779, subdivision 2, is amended to read:
170.21    Subd. 2. Renewable energy production incentive. (a) Until January 1, 2018, up to
170.22$10,900,000 $11,400,000 annually must be allocated from available funds in the account
170.23to fund renewable energy production incentives and on-farm biogas recovery facility
170.24grants. $9,400,000 of this annual amount is for incentives for up to 200 megawatts of
170.25electricity generated by wind energy conversion systems that are eligible for the incentives
170.26under section 216C.41. The balance of this amount, Up to $1,500,000 $1,000,000
170.27annually, may be used for production incentives for on-farm biogas recovery facilities
170.28and landfill gas recovery facilities that are eligible for the incentive under section 216C.41
170.29or for production incentives for other renewables, to be provided in the same manner
170.30as under section 216C.41. Of this amount, no more than $500,000 may be used for
170.31production incentives for landfill gas recovery facilities. Up to $1,000,000 may be used
170.32for grants for qualified on-farm biogas recovery facilities as provided in section 216C.42.
170.33Any portion of the $10,900,000 $11,400,000 not expended in any calendar year for the
170.34incentive is available for other spending purposes under this section. This subdivision
170.35does not create an obligation to contribute funds to the account.
171.1    (b) The Department of Commerce shall determine eligibility of projects under
171.2section 216C.41 for the purposes of this subdivision. At least quarterly, the Department of
171.3Commerce shall notify the public utility of the name and address of each eligible project
171.4owner and the amount due to each project under section 216C.41. The public utility shall
171.5make payments within 15 working days after receipt of notification of payments due.

171.6    Sec. 7. Minnesota Statutes 2006, section 216B.241, subdivision 6, is amended to read:
171.7    Subd. 6. Renewable energy research. (a) A public utility that owns a nuclear
171.8generation facility in the state shall spend five percent of the total amount that utility
171.9is required to spend under this section to support basic and applied research and
171.10demonstration activities at the University of Minnesota Initiative for Renewable Energy
171.11and the Environment for the development of renewable energy sources and technologies.
171.12The utility shall transfer the required amount to the University of Minnesota on or before
171.13July 1 of each year and that annual amount shall be deducted from the amount of money the
171.14utility is required to spend under this section. The University of Minnesota shall transfer
171.15at least ten percent of these funds to at least one rural campus or experiment station.
171.16    (b) Research Activities funded under this subdivision shall may include, but are
171.17not limited to:
171.18    (1) development of environmentally sound production, distribution, and use of
171.19energy, chemicals, and materials from renewable sources;
171.20    (2) processing and utilization of agricultural and forestry plant products and other
171.21bio-based, renewable sources as a substitute for fossil-fuel-based energy, chemicals, and
171.22materials using a variety of means including biocatalysis, biorefining, and fermentation;
171.23    (3) conversion of state wind resources to hydrogen for energy storage and
171.24transportation to areas of energy demand;
171.25    (4) improvements in scalable hydrogen fuel cell technologies; and
171.26    (5) production of hydrogen from bio-based, renewable sources; and sequestration
171.27of carbon.
171.28    (1) environmentally sound production of energy from a renewable energy source
171.29including biomass;
171.30    (2) environmentally sound production of hydrogen from biomass and any other
171.31renewable energy source for energy storage and energy utilization;
171.32    (3) development of energy conservation and efficient energy utilization technologies;
171.33    (4) energy storage technologies; and
171.34    (5) analysis of policy options to facilitate adoption of technologies that use or
171.35produce a renewable energy source.
172.1    (c) Notwithstanding other law to the contrary, the utility may, but is not required to,
172.2spend more than two percent of its gross operating revenues from service provided in this
172.3state under this section or section 216B.2411.
172.4    (d) For the purposes of this subdivision:
172.5    (1) "renewable energy source: means hydro, wind, solar, biomass and geothermal
172.6energy, and microorganisms used as an energy source; and
172.7    (2) "biomass" means plant and animal material, agricultural and forest residues,
172.8mixed municipal solid waste, and sludge from wastewater treatment.
172.9    (e) This subdivision expires June 30, 2008 2010.

172.10    Sec. 8. Minnesota Statutes 2006, section 216B.812, subdivision 1, is amended to read:
172.11    Subdivision 1. Early purchase and deployment of renewable hydrogen, fuel
172.12cells, and related technologies by the state. (a) The Department of Commerce, in
172.13conjunction coordination with the Department of Administration and the Pollution Control
172.14Agency, shall identify opportunities for demonstrating the use of deploying renewable
172.15hydrogen, fuel cells, and related technologies within state-owned facilities, vehicle fleets,
172.16and operations in ways that demonstrate their commercial performance and economics.
172.17    (b) The Department of Commerce shall recommend to the Department of
172.18Administration, when feasible, the purchase and demonstration deployment of hydrogen,
172.19fuel cells, and related technologies, when feasible, in ways that strategically contribute
172.20to realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109, and
172.21which contribute to the following nonexclusive list of objectives:
172.22    (1) provide needed performance data to the marketplace;
172.23    (2) identify code and regulatory issues to be resolved;
172.24    (3) foster economic development and job creation in the state;
172.25    (4) raise public awareness of renewable hydrogen, fuel cells, and related
172.26technologies; or
172.27    (5) reduce emissions of carbon dioxide and other pollutants.
172.28    (c) The Department of Commerce and the Pollution Control Agency shall also
172.29recommend to the Department of Administration changes to the state's procurement
172.30guidelines and contracts in order to facilitate the purchase and deployment of cost-effective
172.31renewable hydrogen, fuel cells, and related technologies by all levels of government.

172.32    Sec. 9. Minnesota Statutes 2006, section 216B.812, subdivision 2, is amended to read:
172.33    Subd. 2. Pilot projects. (a) In consultation with appropriate representatives from
172.34state agencies, local governments, universities, businesses, and other interested parties,
173.1the Department of Commerce shall report back to the legislature by November 1, 2005,
173.2and every two years thereafter, with a slate of proposed pilot projects that contribute to
173.3realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109. The
173.4Department of Commerce must consider the following nonexclusive list of priorities in
173.5developing the proposed slate of pilot projects:
173.6    (1) demonstrate deploy "bridge" technologies such as hybrid-electric, off-road, and
173.7fleet vehicles running on hydrogen or fuels blended with hydrogen;
173.8    (2) develop lead to cost-competitive, on-site renewable hydrogen production
173.9technologies;
173.10    (3) demonstrate nonvehicle applications for hydrogen;
173.11    (4) improve the cost and efficiency of hydrogen from renewable energy sources; and
173.12    (5) improve the cost and efficiency of hydrogen production using direct solar energy
173.13without electricity generation as an intermediate step.
173.14    (b) For all demonstrations deployment projects that do not involve a demonstration
173.15component, individual system components of the technology must should, if feasible, meet
173.16commercial performance standards and systems modeling must be completed to predict
173.17commercial performance, risk, and synergies. In addition, the proposed pilots should meet
173.18as many of the following criteria as possible:
173.19    (1) advance energy security;
173.20    (2) capitalize on the state's native resources;
173.21    (3) result in economically competitive infrastructure being put in place;
173.22    (4) be located where it will link well with existing and related projects and be
173.23accessible to the public, now or in the future;
173.24    (5) demonstrate multiple, integrated aspects of renewable hydrogen infrastructure;
173.25    (6) include an explicit public education and awareness component;
173.26    (7) be scalable to respond to changing circumstances and market demands;
173.27    (8) draw on firms and expertise within the state where possible;
173.28    (9) include an assessment of its economic, environmental, and social impact; and
173.29    (10) serve other needs beyond hydrogen development.

173.30    Sec. 10. [216B.813] MINNESOTA RENEWABLE HYDROGEN INITIATIVE.
173.31    Subdivision 1. Road map. The Department of Commerce shall coordinate and
173.32administer directly or by contract the Minnesota renewable hydrogen initiative. If the
173.33department decides to contract for its duties under this section, it must contract with a
173.34nonpartisan, nonprofit organization within the state to develop the road map. The initiative
173.35may be run as a public-private partnership representing business, academic, governmental,
174.1and nongovernmental organizations. The initiative must oversee the development and
174.2implementation of a renewable hydrogen road map, including appropriate technology
174.3deployments, that achieve the hydrogen goal of section 216B.013. The road map should
174.4be compatible with the United States Department of Energy's National Hydrogen Energy
174.5Roadmap and be based on an assessment of marketplace economics and the state's
174.6opportunities in hydrogen, fuel cells, and related technologies, so as to capitalize on
174.7strengths. The road map should establish a vision, goals, general timeline, strategies for
174.8working with industry, and measurable milestones for achieving the state's renewable
174.9hydrogen goal. The road map should describe how renewable hydrogen and fuel cells fit
174.10in Minnesota's overall energy system, and should help foster a consistent, predictable, and
174.11prudent investment environment. The department must report to the legislature on the
174.12progress in implementing the road map by November 1 of each odd-numbered year.
174.13    Subd. 2. Grants. (a) The commissioner of commerce shall operate a competitive
174.14grant program for projects to assist the state in attaining its renewable hydrogen energy
174.15goals. The commissioner of commerce shall assemble an advisory committee made up of
174.16industry, university, government, and nongovernment organizations to:
174.17    (1) help identify the most promising technology deployment projects for public
174.18investment;
174.19    (2) advise on the technical specifications for those projects; and
174.20    (3) make recommendations on project grants.
174.21    (b) The commissioner shall give preference to project concepts included in the
174.22department's most recent biennial report: Strategic Demonstration Projects to Accelerate
174.23the Commercialization of Renewable Hydrogen and Related Technologies in Minnesota.
174.24Projects eligible for funding must combine one or more of the hydrogen production
174.25options listed in the department's report with an end use that has significant commercial
174.26potential, preferably high visibility, and relies on fuel cells or related technologies. Each
174.27funded technology deployment must include an explicit education and awareness-raising
174.28component, be compatible with the renewable hydrogen deployment criteria defined in
174.29section 216B.812, and receive 50 percent of its total cost from nonstate sources. The 50
174.30percent requirement does not apply for recipients that are public institutions.

174.31    Sec. 11. Minnesota Statutes 2006, section 216C.051, subdivision 2, is amended to read:
174.32    Subd. 2. Establishment. (a) There is established a Legislative Electric Energy Task
174.33Force to study future electric energy sources and costs and to make recommendations
174.34for legislation for an environmentally and economically sustainable and advantageous
174.35electric energy supply.
175.1    (b) The task force consists of:
175.2    (1) ten members of the house of representatives including the chairs of the
175.3Environment and Natural Resources Committee and Regulated Industries Subcommittee
175.4the Energy Finance and Policy Division and eight members to be appointed by the speaker
175.5of the house, four of whom must be from the minority caucus; and
175.6    (2) ten members of the senate including the chairs of the Environment, Energy and
175.7Natural Resources Budget Division and Jobs, Energy, and Community Development
175.8Utilities, Technology and Communications committees and eight members to be appointed
175.9by the Subcommittee on Committees, four of whom must be from the minority caucus.
175.10    (c) The task force may employ staff, contract for consulting services, and may
175.11reimburse the expenses of persons requested to assist it in its duties other than state
175.12employees or employees of electric utilities. The director of the Legislative Coordinating
175.13Commission shall assist the task force in administrative matters. The task force shall
175.14elect cochairs, one member of the house and one member of the senate from among the
175.15committee and subcommittee chairs named to the committee. The task force members
175.16from the house shall elect the house cochair, and the task force members from the senate
175.17shall elect the senate cochair.

175.18    Sec. 12. Minnesota Statutes 2006, section 216C.051, subdivision 9, is amended to read:
175.19    Subd. 9. Expiration. This section is repealed June 30, 2007 2008.
175.20EFFECTIVE DATE.This section is effective the day following final enactment.

175.21    Sec. 13. [216C.385] CLEAN ENERGY RESOURCE TEAMS.
175.22    Subdivision 1. Findings. The legislature finds that community-based energy
175.23programs are an effective means of implementing improved energy practices including
175.24conservation, greater efficiency in energy use, and the production and use of renewable
175.25resources such as wind, solar, biomass, and biofuels. Further, community-based energy
175.26programs are found to be a public purpose for which public money may be spent.
175.27    Subd. 2. Mission, organization, and membership. The Clean Energy Resource
175.28Teams (CERT's) project is an innovative state, university, and nonprofit partnership that
175.29serves as a catalyst for community energy planning and projects. The mission of CERT's
175.30is to give citizens a voice in the energy planning process by connecting them with the
175.31necessary technical resources to identify and implement community-scale renewable
175.32energy and energy efficiency projects. In 2003, the Department of Commerce designated
175.33the CERT's project as a statewide collaborative venture and recognized six regional teams
175.34based on their geography: Central, Northeast, Northwest, Southeast, Southwest, and
176.1West-Central. Membership of CERT's may include but is not limited to representatives
176.2of utilities; federal, state, and local governments; small business; labor; senior citizens;
176.3academia; and other interested parties. The Department of Commerce may certify
176.4additional Clean Energy Resource Teams by regional geography, including teams in
176.5the Twin Cities metropolitan area.
176.6    Subd. 3. Powers and duties. In order to develop and implement community-based
176.7energy programs, a Clean Energy Resource Team may:
176.8    (1) analyze social and economic impacts caused by energy expenditures;
176.9    (2) analyze regional renewable and energy efficiency resources and opportunities;
176.10    (3) link community members and community energy projects to the knowledge
176.11and capabilities of the University of Minnesota, the State Energy Office, nonprofit
176.12organizations, and regional community members, among others;
176.13    (4) plan, set priorities for, provide technical assistance to, and catalyze local energy
176.14efficiency and renewable energy projects that help to meet state energy policy goals and
176.15maximize local economic development opportunities;
176.16    (5) provide a broad-based resource and communications network that links local,
176.17county, and regional energy efficiency and renewable energy project efforts around the
176.18state (both interregional and intraregional);
176.19    (6) seek, accept, and disburse grants and other aids from public or private sources
176.20for purposes authorized in this subdivision;
176.21    (7) provides a convening and networking function within CERT's regions to facilitate
176.22education, knowledge formation, and project replication; and
176.23    (8) exercise other powers and duties imposed on it by statute, charter, or ordinance.
176.24    Subd. 4. Department assistance. The commissioner, via the Clean Energy
176.25Resource Teams, may provide professional, technical, organizational, and financial
176.26assistance to regions and communities to develop and implement community energy
176.27programs and projects, within available resources.

176.28    Sec. 14. [216C.39] RURAL WIND ENERGY DEVELOPMENT REVOLVING
176.29LOAN FUND.
176.30    Subdivision 1. Establishment. A rural wind energy development revolving loan
176.31fund is established as an account in the special revenue fund in the state treasury. The
176.32commissioner of finance shall credit to the account the amounts authorized under this
176.33section and appropriations and transfers to the account. Earnings, such as interest,
176.34dividends, and any other earnings arising from fund assets, must be credited to the account.
177.1    Subd. 2. Purpose. The rural wind energy development revolving loan fund
177.2is created to provide financial assistance, through partnership with local owners and
177.3communities, in developing community wind energy projects that meet the specifications
177.4of section 216B.1612, subdivision 2, paragraph (f).
177.5    Subd. 3. Expenditures. Money in the fund is appropriated to the commissioner
177.6of commerce, and may be used to make loans to qualifying owners of wind energy
177.7projects, as defined in section 216B.1612, subdivision 2, paragraph (f), to assist in funding
177.8wind studies and transmission interconnection studies. The loans must be structured for
177.9repayment within 30 days after the project begins commercial operations or two years
177.10from the date the loan is issued, whichever is sooner.
177.11    Subd. 4. Limitations. A loan may not be approved for an amount exceeding
177.12$100,000. This limit applies to all money loaned to a single project or single entity,
177.13whether paid to one or more qualifying owners and whether paid in one or more fiscal
177.14years.
177.15    Subd. 5. Administration; eligible projects. (a) Applications for a loan under
177.16this section must be made in a manner and on forms prescribed by the commissioner.
177.17Loans to eligible projects must be made in the order in which complete applications are
177.18received by the commissioner. Loan funds must be disbursed to an applicant within ten
177.19days of submission of a payment request by the applicant that demonstrates a payment
177.20due to the Midwest Independent System Operator. Interest payable on the loan amount
177.21may not exceed 1.5 percent per annum.
177.22    (b) A project is eligible for a loan under this program if:
177.23    (1) the project has completed an adequate interconnection feasibility study that
177.24indicates the project may be interconnected with system upgrades of less than ten percent
177.25of the estimated project costs;
177.26    (2) the project has a signed power purchase agreement with an electric utility or
177.27provides evidence that the project is under serious consideration for such an agreement by
177.28an electric utility;
177.29    (3) the ownership and structure of the project allows it to qualify as a
177.30community-based energy development (C-BED) project under section 216B.1612, and the
177.31developer commits to obtaining and maintaining C-BED status; and
177.32    (4) the commissioner has determined that sufficient funds are available to make a
177.33loan to the project.

177.34    Sec. 15. Minnesota Statutes 2006, section 216C.41, subdivision 1, is amended to read:
178.1    Subdivision 1. Definitions. (a) Unless otherwise provided, the definitions in this
178.2subdivision apply to this section.
178.3    (b) "Qualified hydroelectric facility" means a hydroelectric generating facility in
178.4this state that:
178.5    (1) is located at the site of a dam, if the dam was in existence as of March 31,
178.61994; and
178.7    (2) begins generating electricity after July 1, 1994, or generates electricity after
178.8substantial refurbishing of a facility that begins after July 1, 2001.
178.9    (c) "Qualified wind energy conversion facility" means a wind energy conversion
178.10system in this state that:
178.11    (1) produces two megawatts or less of electricity as measured by nameplate rating
178.12and begins generating electricity after December 31, 1996, and before July 1, 1999;
178.13    (2) begins generating electricity after June 30, 1999, produces two megawatts or
178.14less of electricity as measured by nameplate rating, and is:
178.15    (i) owned by a resident of Minnesota or an entity that is organized under the laws
178.16of this state, is not prohibited from owning agricultural land under section 500.24, and
178.17owns the land where the facility is sited;
178.18    (ii) owned by a Minnesota small business as defined in section 645.445;
178.19    (iii) owned by a Minnesota nonprofit organization;
178.20    (iv) owned by a tribal council if the facility is located within the boundaries of
178.21the reservation;
178.22    (v) owned by a Minnesota municipal utility or a Minnesota cooperative electric
178.23association; or
178.24    (vi) owned by a Minnesota political subdivision or local government, including,
178.25but not limited to, a county, statutory or home rule charter city, town, school district, or
178.26any other local or regional governmental organization such as a board, commission, or
178.27association; or
178.28    (3) begins generating electricity after June 30, 1999, produces seven megawatts or
178.29less of electricity as measured by nameplate rating, and:
178.30    (i) is owned by a cooperative organized under chapter 308A other than a Minnesota
178.31cooperative electric association; and
178.32    (ii) all shares and membership in the cooperative are held by an entity that is not
178.33prohibited from owning agricultural land under section 500.24.
178.34    (d) "Qualified on-farm biogas recovery facility" means an anaerobic digester system
178.35that:
178.36    (1) is located at the site of an agricultural operation; and
179.1    (2) is owned by an entity that is not prohibited from owning agricultural land under
179.2section 500.24 and that owns or rents the land where the facility is located.
179.3    (e) "Anaerobic digester system" means a system of components that processes
179.4animal waste based on the absence of oxygen and produces gas used to generate electricity.
179.5    (f) "Qualified landfill gas recovery facility" means a landfill that is operating or
179.6closed, that generates gas from the decomposition of organic matter, and that installs a
179.7system to collect the gas after July 1, 2007.

179.8    Sec. 16. Minnesota Statutes 2006, section 216C.41, subdivision 2, is amended to read:
179.9    Subd. 2. Incentive payment; appropriation. (a) Incentive payments must be made
179.10according to this section to (1) a qualified on-farm biogas recovery facility, (2) the owner
179.11or operator of a qualified hydropower facility or qualified wind energy conversion facility
179.12for electric energy generated and sold by the facility, (3) a publicly owned hydropower
179.13facility for electric energy that is generated by the facility and used by the owner of the
179.14facility outside the facility, or (4) the owner of a publicly owned dam that is in need of
179.15substantial repair, for electric energy that is generated by a hydropower facility at the
179.16dam and the annual incentive payments will be used to fund the structural repairs and
179.17replacement of structural components of the dam, or to retire debt incurred to fund those
179.18repairs, or (5) a qualified landfill gas recovery facility.
179.19    (b) Payment may only be made upon receipt by the commissioner of commerce of
179.20an incentive payment application that establishes that the applicant is eligible to receive an
179.21incentive payment and that satisfies other requirements the commissioner deems necessary.
179.22The application must be in a form and submitted at a time the commissioner establishes.
179.23    (c) There is annually appropriated from the renewable development account
179.24under section 116C.779 to the commissioner of commerce sums sufficient to make the
179.25payments required under this section, in addition to the amounts funded by the renewable
179.26development account as specified in subdivision 5a.

179.27    Sec. 17. Minnesota Statutes 2006, section 216C.41, subdivision 3, is amended to read:
179.28    Subd. 3. Eligibility window. Payments may be made under this section only for:
179.29    (a) electricity generated from:
179.30    (1) from a qualified hydroelectric facility that is operational and generating
179.31electricity before December 31, 2009;
179.32    (2) from a qualified wind energy conversion facility that is operational and
179.33generating electricity before January 1, 2008; or
180.1    (3) from a qualified on-farm biogas recovery facility from July 1, 2001, through
180.2December 31, 2017; and
180.3    (b) gas generated from:
180.4    (1) a qualified on-farm biogas recovery facility from July 1, 2007, through December
180.531, 2017; or
180.6    (2) a qualified landfill gas recovery facility from July 1, 2007, through December
180.731, 2017.

180.8    Sec. 18. [216C.42] ON-FARM BIOGAS RECOVERY GRANTS.
180.9    Subdivision 1. Definitions. For the purpose of this section, the following terms
180.10have the meanings given.
180.11    (a) "Qualified on-farm biogas recovery facility" means an anaerobic digester system
180.12that:
180.13    (1) is located at the site of an agricultural operation;
180.14    (2) is owned by an entity that is not prohibited from owning agricultural land under
180.15section 500.24 and that owns or rents the land where the facility is located; and
180.16    (3) is owned by a qualified owner as defined in section 216B.1612, subdivision 2,
180.17paragraph (c).
180.18    (b) "Anaerobic digester system" means a system of components that processes
180.19animal waste based on the absence of oxygen and produces gas.
180.20    (c) "Commissioner" means the commissioner of agriculture.
180.21    Subd. 2. Eligibility. Subject to the availability of funds, the commissioner must
180.22approve grants to a qualified owner of a qualified on-farm biogas recovery facility for the
180.23total installed costs of capital investments associated with the facility, up to a maximum of
180.24$500,000.
180.25    Subd. 3. Application. Application for a grant under this section must be made by a
180.26qualified owner to the commissioner on a form the commissioner prescribes by rule. The
180.27commissioner must review each application to determine:
180.28    (1) whether the application is complete;
180.29    (2) whether the information, calculations, and estimates contained in the application
180.30are appropriate, accurate, and reasonable;
180.31    (3) whether the project is eligible for a grant;
180.32    (4) the amount of the grant for which the project is eligible; and
180.33    (5) other funding sources the owner proposes to use to finance the project in addition
180.34to a grant authorized by this section.
180.35An applicant may submit only one grant application each year under this section.
181.1    Subd. 4. Additional information. During application review, the commissioner
181.2may request additional information about a proposed project, including information on
181.3project cost. Failure to provide information requested disqualifies a grant application.
181.4    Subd. 5. Public accessibility of grant application data. Data contained in an
181.5application submitted to the commissioner for a grant under this section, including
181.6supporting technical documentation, is classified as public data not on individuals under
181.7section 13.02, subdivision 14.
181.8    Subd. 6. Rules. The commissioner must adopt rules necessary to implement this
181.9section. The rules must contain at a minimum:
181.10    (1) standards for project eligibility;
181.11    (2) criteria for reviewing grant applications; and
181.12    (3) procedures and guidelines for program monitoring and evaluation.
181.13    Subd. 7. Right of first refusal. A utility that provides electric service at retail in
181.14the area where the qualified on-farm biogas recovery facility is located has the right of
181.15first refusal for any gas produced by a qualified on-farm biogas recovery facility that has
181.16received a grant under this section. A utility's right of first refusal expires if:
181.17    (1) within 45 days after the qualified owner files an incentive payment application
181.18with the commissioner of commerce, the utility fails to send a letter of intent to the
181.19qualified owner indicating the utility's willingness to negotiate a purchase agreement; or
181.20    (2) the parties enter negotiations but fail to reach agreement within 120 days after
181.21the qualified owner files an incentive payment application with the commissioner of
181.22commerce.
181.23    Subd. 8. Eligibility toward renewable energy objective and standard. Any gas
181.24generated by a qualified on-farm biogas recovery facility awarded a grant under this
181.25section that is purchased by a utility may be counted toward the utility's renewable energy
181.26objective and standard under section 216B.1691.
181.27    Subd. 9. Appropriation. Up to $1,000,000 is appropriated annually from the
181.28renewable development account through fiscal year 2015 to the commissioner of
181.29agriculture for the purpose of providing grants to qualified on-farm biogas recovery
181.30facilities.

181.31    Sec. 19. [561.20] NUISANCE LIABILITY OF WIND ENERGY CONVERSION
181.32SYSTEMS.
181.33    Subdivision 1. Definition. For the purposes of this section, "wind energy conversion
181.34system" has the meaning given in section 216C.06.
182.1    Subd. 2. Wind energy conversion system not a nuisance. (a) A wind energy
182.2conversion system is not and does not become a private or public nuisance after two years
182.3from the date it begins generating electricity as a matter of law if the system:
182.4    (1) complies with all applicable federal, state, or county laws, regulations, rules, and
182.5ordinances and any permits issued for it; and
182.6    (2) operates according to generally accepted practices.
182.7    (b) For a period of two years from the date it begins generating electricity, there is
182.8a rebuttable presumption that a wind energy conversion system in compliance with the
182.9requirements of paragraph (a) is not a public or private nuisance.
182.10    (c) This subdivision does not apply:
182.11    (1) to any prosecution for the crime of public nuisance as provided in section
182.12609.74 or to an action by a public authority to abate a particular condition that is a public
182.13nuisance; or
182.14    (2) to any enforcement action brought by a local unit of government related to
182.15zoning under chapter 394 or 462.
182.16    Subd. 3. Existing contracts. This section must not be construed to invalidate any
182.17contracts or commitments made before the effective date of this section.
182.18    Subd. 4. Severability. If a provision of this section, or application thereof to any
182.19person or set of circumstances, is held invalid or unconstitutional, the invalidity does not
182.20affect other provisions or applications of this section that can be given effect without the
182.21invalid provision or application. To that end, the provisions of this section are declared to
182.22be severable.
182.23EFFECTIVE DATE.This section is effective the day following final enactment.

182.24    Sec. 20. PETROLEUM VIOLATION ESCROW FUNDS.
182.25    (a) Petroleum violation escrow funds appropriated to the commissioner of commerce
182.26by Laws 1988, chapter 686, article 1, section 38, for state energy loan programs for
182.27schools, hospitals, and public buildings must be used for grants to kindergarten through
182.28grade 12 schools to develop energy conservation or renewable energy projects. A grant
182.29may not exceed $500,000. The commissioner must endeavor to award grants throughout
182.30the regions of the state. No more than one grant may be awarded in a county, unless an
182.31insufficient number of applications is received from schools located in other counties to
182.32exhaust available funds.
182.33    (b) The commissioner of commerce must petition the federal Department of Energy
182.34for a waiver from any federal regulation that limits the proportion of federal funds
182.35expended on state energy programs that may be spent on energy efficiency.
183.1    (c) For purposes of this subdivision, "renewable energy" means wind, solar,
183.2hydroelectric with a capacity of less than 60 megawatts, geothermal, hydrogen, fuel cells
183.3made from renewable resources, herbaceous crops, agricultural crops, agricultural waste,
183.4and aquatic plant matter.
183.5EFFECTIVE DATE.This section is effective the day after the commissioner of
183.6commerce receives the waiver described in paragraph (b).

183.7    Sec. 21. RURAL WIND ENERGY DEVELOPMENT PROGRAM.
183.8    (a) The Center for Rural Policy and Development shall make a grant to a nonprofit
183.9organization with experience dealing with energy and community wind issues to design
183.10and implement a rural wind energy development assistance program. The program must
183.11be designed to maximize rural economic development and stabilize rural community
183.12institutions, including hospitals and schools, by increasing the income of local residents
183.13and increasing local tax revenues. The grant may be disbursed in two installments. The
183.14program must provide assistance to rural entities seeking to develop wind generation
183.15projects that meet the specifications of Minnesota Statutes, section 216B.1612, subdivision
183.162, paragraph (f), and to sell the electricity the projects produce. Among other strategies,
183.17the program may consider aggregating rural entities and others into groups with the size
183.18and market power necessary to plan and develop significant rural wind energy projects.
183.19    (b) The program must provide assistance that includes, but is not limited to:
183.20    (1) providing legal, engineering, and financial services;
183.21    (2) identifying target communities with favorable wind resources, community
183.22interest, and local political support;
183.23    (3) providing assistance to reserve, obtain, and ensure the maintenance over time of
183.24wind turbines;
183.25    (4) creating market opportunities for utilities to meet their renewable energy standard
183.26obligations through purchases from rural community wind projects;
183.27    (5) assisting in negotiating fair power purchase agreements;
183.28    (6) facilitating transmission interconnection and delivery of energy from community
183.29wind projects; and
183.30    (7) lowering the market risk facing potential wind investors by supporting all phases
183.31of project development.
183.32    The grantee must demonstrate an ability to sustain program functions with ongoing
183.33revenue from sources other than state funding and shall provide a 35 percent grant match.
183.34The grant must be awarded on a competitive basis. The center must use best practices
183.35regarding grant management functions, including selection and monitoring of the grantee,
184.1compliance review, and financial oversight. Grant management fees are limited to 2.5
184.2percent of the grant.
184.3    (c) The commissioner of commerce shall monitor the activities of the rural wind
184.4energy development assistance program created under this section. By November 1, 2008,
184.5the commissioner shall submit an evaluation of the program to the chairs of the house of
184.6representatives and senate committees with jurisdiction over energy policy and finance,
184.7including recommendations for legislative or administrative action to better achieve the
184.8program goals described in paragraph (a).

184.9    Sec. 22. UNIFORM CODES AND STANDARDS FOR HYDROGEN, FUEL
184.10CELLS, AND RELATED TECHNOLOGIES; RECOMMENDATIONS AND
184.11REPORT.
184.12    (a) The commissioner of labor and industry, in consultation with the Department of
184.13Commerce and other relevant public and private interests, shall develop recommendations
184.14regarding the adoption of uniform codes and standards for hydrogen infrastructure, fuel
184.15cells, and related technologies, and report those recommendations to the legislature by
184.16December 31, 2008.
184.17    (b) The goal of the recommendations is to have all regulatory jurisdictions in the
184.18state have the same safety standards with regard to the production, storage, transportation,
184.19distribution, and use of hydrogen, fuel cells, and related technologies. The commissioner's
184.20recommendations must, without limitation, include:
184.21    (1) codes and standards that already exist for hydrogen, fuel cells, and related
184.22technologies, and how the state should formalize their use;
184.23    (2) codes and standards still under development by various official standard-making
184.24bodies;
184.25    (3) gaps between existing codes and standards, those under development, and those
184.26that may still be needed but are not yet being developed;
184.27    (4) the need for, and estimated cost of, additional education and training for
184.28emergency management and code officials;
184.29    (5) any changes needed to environmental and other permitting processes to
184.30accommodate the commercialization of hydrogen, fuel cells, and related technologies; and
184.31    (6) recommendations on appropriate codes and standards for educational and
184.32research institutions.

184.33    Sec. 23. HYDROGEN REFUELING STATION GRANTS.
185.1    In addition to the purposes specified in Laws 2005, chapter 97, article 13, section
185.24, for which the commissioner of commerce may make grants, the commissioner may
185.3make grants under that law for the purpose of developing, deploying, and encouraging
185.4commercially promising renewable hydrogen production systems and hydrogen end
185.5uses in partnership with industry. The authority of the commissioner to make grants
185.6and assessments under Laws 2005, chapter 97, article 13, section 4, continues until the
185.7authorized grants and assessments are made.

185.8    Sec. 24. OFF-SITE RENEWABLE DISTRIBUTED GENERATION.
185.9    The commissioner of commerce shall convene a broad group of interested
185.10stakeholders to evaluate the feasibility and potential for the interconnection and parallel
185.11operation of off-site renewable distributed generation in a manner consistent with
185.12Minnesota Statutes, sections 216B.37 to 216B.43, and shall issue recommendations to
185.13the chairs of the house of representatives and senate committees with jurisdiction over
185.14energy issues by February 1, 2008.

185.15ARTICLE 7
185.16ENVIRONMENT

185.17    Section 1. BIOFUEL PERMITTING REPORT.
185.18    By January 15, 2008, the Pollution Control Agency, the commissioner of natural
185.19resources, and the Environmental Quality Board shall report to the house of representatives
185.20and senate committees and divisions with jurisdiction over agriculture and environment
185.21policy and budget on the process to issue permits for biofuel production facilities. The
185.22report shall include:
185.23    (1) information on the timing of the permits and measures taken to improve the
185.24timing of the permitting process;
185.25    (2) recommended changes to statutes, rules, or procedures to improve the biofuel
185.26facility permitting process and reduce the groundwater needed for production; and
185.27    (3) other information or analysis that may be helpful in understanding or improving
185.28the biofuel production facility permitting process.
185.29EFFECTIVE DATE.This section is effective the day following final enactment.

185.30    Sec. 2. DEFINITIONS.
186.1    Subdivision 1. Terrestrial carbon sequestration. "Terrestrial carbon sequestration"
186.2means the long-term storage of carbon in soil and vegetation to prevent its collection in
186.3the atmosphere as carbon dioxide.
186.4    Subd. 2. Geologic carbon sequestration. "Geologic carbon sequestration" means
186.5injecting carbon dioxide into underground geologic formations where it can be stored for
186.6long periods of time to prevent its escape to the atmosphere.

186.7    Sec. 3. TERRESTRIAL CARBON SEQUESTRATION ACTIVITIES.
186.8    Subdivision 1. Study; scope. The Board of Regents of the University of Minnesota
186.9is requested to conduct a study assessing the potential capacity for carbon sequestration in
186.10Minnesota's terrestrial systems. The study must:
186.11    (1) conduct a statewide inventory and construct a database of lands across several
186.12land types, such as forests, agricultural lands, peatlands, and wetlands, that have the
186.13potential to sequester significant quantities of carbon and of lands that currently contain
186.14large stocks of carbon that are at risk of being emitted to the atmosphere as a result of
186.15changes in land use and climate;
186.16    (2) quantify the ability of various land use practices, such as the growth of different
186.17species of crops, grasses, and trees, to sequester carbon and their impacts on other
186.18ecological services of value, including air and water quality, biodiversity, and wildlife
186.19habitat;
186.20    (3) identify a network of benchmark monitoring sites to measure the impact of
186.21long-term, large-scale factors, such as changes in climate, carbon dioxide levels, and land
186.22use, on the terrestrial carbon sequestration capacity of various land types, to improve
186.23understanding of carbon-terrestrial interactions and dynamics;
186.24    (4) identify long-term demonstration projects to measure the impact of deliberate
186.25sequestration practices, including the establishment of biofuel production systems, on
186.26forest, agricultural, wetland, and prairie ecosystems; and
186.27    (5) evaluate current state policies and programs that affect the levels of terrestrial
186.28sequestration on public and private lands and identify gaps and recommend policy changes
186.29to increase sequestration rates.
186.30    Subd. 2. Coordination of terrestrial carbon sequestration activities. Planning
186.31and implementation of the study described in subdivision 1 will be coordinated by
186.32the Minnesota Terrestrial Carbon Sequestration Initiative, a task force consisting of
186.33representatives from the University of Minnesota, the Department of Agriculture, the
186.34Board of Water and Soil Resources, the Department of Commerce, the Department
187.1of Natural Resources, and the Pollution Control Agency and agricultural, forestry,
187.2conservation, and business stakeholders.
187.3    Subd. 3. Contracting. The University of Minnesota may contract with another
187.4party to perform any of the tasks listed in subdivision 1.
187.5    Subd. 4. Report. The commissioner of natural resources must submit a report
187.6with the results of the study to the senate and house of representatives committees with
187.7jurisdiction over environmental and energy policies no later than February 1, 2008.

187.8    Sec. 4. GEOLOGIC CARBON SEQUESTRATION ASSESSMENT.
187.9    Subdivision 1. Study; scope. (a) The Minnesota Geological Survey shall conduct
187.10a study assessing the potential capacity for geologic carbon sequestration in the
187.11Midcontinent Rift system in Minnesota. The study must assess the potential of porous
187.12and permeable sandstone layers deeper than one kilometer below the surface that are
187.13capped by less permeable shale and must identify potential risks to carbon storage, such
187.14as areas of low permeability in injection zones, low storage capacity, and potential seal
187.15failure. The study must identify the most promising formations and geographic areas for
187.16physical analysis of carbon sequestration potential. The study must review geologic
187.17maps, published reports and surveys, and any relevant unpublished raw data with respect
187.18to attributes that are pertinent for the long-term sequestration of carbon in geologic
187.19formations, in particular, those that bear on formation injectivity, capacity, and seal
187.20effectiveness. The study must examine the following characteristics of key sedimentary
187.21units within the Midcontinent Rift system in Minnesota:
187.22    (1) likely depth, temperature, and pressure;
187.23    (2) physical properties, including the ability to contain and transmit fluids;
187.24    (3) the type of rocks present;
187.25    (4) structure and geometry, including folds and faults; and
187.26    (5) hydrogeology, including water chemistry and water flow.
187.27    (b) The commissioner of natural resources, in consultation with the Minnesota
187.28Geological Survey, shall contract for a study to estimate the properties of the Midcontinent
187.29Rift system in Minnesota, as described in paragraph (a), clauses (1) to (5), through the
187.30use of computer models developed for similar geologic formations located outside of
187.31Minnesota which have been studied in greater detail.
187.32    Subd. 2. Consultation. The Minnesota Geological Survey shall consult with the
187.33Minnesota Mineral Coordinating Committee, established in Minnesota Statutes, section
187.3493.0015, in planning and implementing the study design.
188.1    Subd. 3. Report. The commissioner of natural resources must submit a report
188.2with the results of the study to the senate and house of representatives committees with
188.3jurisdiction over environmental and energy policies no later than February 1, 2008.

188.4ARTICLE 8
188.5HEATING ASSISTANCE AND UTILITIES

188.6    Section 1. [216B.091] MONTHLY REPORTS.
188.7    (a) Each public utility must report the following data on residential customers to the
188.8commission monthly, in a format determined by the commission:
188.9    (1) number of customers;
188.10    (2) number and total amount of accounts past due;
188.11    (3) average customer past due amount;
188.12    (4) total revenue received from the low-income home energy assistance program and
188.13other sources contributing to the bills of low-income persons;
188.14    (5) average monthly bill;
188.15    (6) total sales revenue;
188.16    (7) total write-offs due to uncollectible bills;
188.17    (8) number of disconnection notices mailed;
188.18    (9) number of accounts disconnected for nonpayment;
188.19    (10) number of accounts reconnected to service; and
188.20    (11) number of accounts that remain disconnected, grouped by the duration of
188.21disconnection, as follows:
188.22    (i) 1-30 days;
188.23    (ii) 31-60 days; and
188.24    (iii) more than 60 days.
188.25    (b) Monthly reports for October through April must also include the following data:
188.26    (1) number of cold weather protection requests;
188.27    (2) number of payment arrangement requests received and granted;
188.28    (3) number of right to appeal notices mailed to customers;
188.29    (4) number of reconnect request appeals withdrawn;
188.30    (5) number of occupied heat-affected accounts disconnected for 24 hours or more
188.31for electric and natural gas service separately;
188.32    (6) number of occupied non-heat-affected accounts disconnected for 24 hours or
188.33more for electric and gas service separately;
188.34    (7) number of customers granted cold weather rule protection;
189.1    (8) number of customers disconnected who did not request cold weather rule
189.2protection; and
189.3    (9) number of customers disconnected who requested cold weather rule protection.
189.4    (c) The data reported under paragraphs (a) and (b) is presumed to be accurate upon
189.5submission and must be made available through the commission's electronic filing system.

189.6    Sec. 2. [216B.0951] PROPANE PREPURCHASE PROGRAM.
189.7    Subdivision 1. Establishment. The commissioner of commerce shall operate, or
189.8contract to operate, a propane fuel prepurchase fuel program. The commissioner may
189.9contract at any time of the year to purchase the lesser of one-third of the liquid propane
189.10fuel consumed by low-income home energy assistance program recipients during the
189.11previous heating season or the amount that can be purchased with available funds. The
189.12propane fuel prepurchase program must be available statewide through each local agency
189.13that administers the energy assistance program. The commissioner may decide to limit or
189.14not engage in prepurchasing if the commissioner finds that there is a reasonable likelihood
189.15that prepurchasing will not provide fuel-cost savings.
189.16    Subd. 2. Hedge account. The commissioner may establish a hedge account with
189.17realized program savings due to prepurchasing. The account must be used to compensate
189.18program recipients an amount up to the difference in cost for fuel provided to the recipient
189.19if winter-delivered fuel prices are lower than the prepurchase or summer-fill price. No
189.20more than ten percent of the aggregate prepurchase program savings may be used to
189.21establish the hedge account.
189.22    Subd. 3. Report. The Department of Commerce shall issue a report by June 30,
189.232008, made available electronically on its Web site and in print upon request, that contains
189.24the following information:
189.25    (1) the cost per gallon of prepurchased fuel;
189.26    (2) the total gallons of fuel prepurchased;
189.27    (3) the average cost of propane each month between October and the following April;
189.28    (4) the number of energy assistance program households receiving prepurchased
189.29fuel; and
189.30    (5) the average savings accruing or benefit increase provided to energy assistance
189.31households.

189.32    Sec. 3. [216B.096] COLD WEATHER RULE; PUBLIC UTILITIES.
189.33    Subdivision 1. Scope. This section applies only to residential customers of a
189.34public utility.
190.1    Subd. 2. Definitions. (a) The terms used in this section have the meanings given
190.2them in this subdivision.
190.3    (b) "Cold weather period" means the period from October 15 through April 15 of
190.4the following year.
190.5    (c) "Customer" means a residential customer of a utility.
190.6    (d) "Customer's income" means the actual monthly income of the customer or the
190.7average monthly income of the customer computed on a calendar year basis, whichever is
190.8less, and does not include any amount received for energy assistance.
190.9    (e) "Disconnection" means the involuntary loss of utility heating service as a result
190.10of a physical act by a utility to discontinue service. Disconnection includes installation of
190.11a service or load limiter or any device that limits or interrupts utility service in any way.
190.12    (f) "Household income" means the combined income, as defined in section 290A.03,
190.13subdivision 3, of all residents of the customer's household, computed on an annual basis.
190.14Household income does not include any amount received for energy assistance.
190.15    (g) "Reasonably timely payment" means payment within seven calendar days of
190.16agreed-upon due dates.
190.17    (h) "Reconnection" means the restoration of utility heating service after it has been
190.18disconnected.
190.19    (i) "Third party notice" means a commission-approved notice containing, at a
190.20minimum, the following information:
190.21    (1) a statement that the utility will send a copy of any future notice of proposed
190.22disconnection of utility heating service to a third party designated by the residential
190.23customer;
190.24    (2) instructions on how to request this service; and
190.25    (3) a statement that the residential customer should contact the person the customer
190.26intends to designate as the third party contact before providing the utility with the party's
190.27name.
190.28    (j) "Utility" means a public utility as defined in section 216B.02.
190.29    (k) "Utility heating service" means natural gas or electricity used as a primary
190.30heating source, including electricity service necessary to operate gas heating equipment.
190.31    (l) "Working days" means Mondays through Fridays, excluding legal holidays.
190.32    Subd. 3. Utility obligations before cold weather period. (a) Each year, between
190.33September 1 and October 15, each utility must notify all customers of the provisions of
190.34this section. Notice must also be provided to all new residential customers when service is
190.35initiated. Notice must, at a minimum, include:
190.36    (1) an explanation of the customer's rights and responsibilities under subdivision 5;
191.1    (2) an explanation of no-cost and low-cost methods to reduce the consumption
191.2of energy; and
191.3    (3) a third party notice.
191.4    (b) Also, each year, between September 1 and October 15, each utility must attempt
191.5to contact, establish a payment agreement, and reconnect utility heating service to all
191.6customers who were disconnected after the preceding heating season. A record must be
191.7made of all contacts and attempted contacts.
191.8    Subd. 4. Notice before disconnection during cold weather period. Before
191.9disconnecting utility heating service during the cold weather period, a utility must provide
191.10notice to a customer, in easy-to-understand language, that contains the following:
191.11    (1) the date of the scheduled disconnection;
191.12    (2) the amount due;
191.13    (3) ways to avoid disconnection;
191.14    (4) information regarding payment agreements;
191.15    (5) a statement explaining the customer's rights and responsibilities, including the
191.16right to appeal a determination by the utility that the customer is not eligible for protection
191.17and the right to request commission intervention if the utility and customer cannot arrive
191.18at a mutually acceptable payment agreement;
191.19    (6) a list of local energy assistance and weatherization providers in each county
191.20served by the utility; and
191.21    (7) a third party notice.
191.22    Subd. 5. Cold weather rule. (a) During the cold weather period, a utility may
191.23not disconnect and must reconnect a customer whose household income is at or below
191.2450 percent of the state median income if the customer enters into and makes reasonably
191.25timely payments under a mutually acceptable payment agreement with the utility that is
191.26based on the financial resources and circumstances of the household; provided that, a
191.27utility may not require a customer to pay more than ten percent of the customer's income
191.28toward current and past utility bills for utility heating service.
191.29    (b) A utility may accept more than ten percent of the household income as the
191.30payment arrangement amount if agreed to by the customer.
191.31    (c) The customer or a designated third party may request a modification of the terms
191.32of a payment agreement previously entered into if the customer's financial circumstances
191.33have changed or the customer is unable to make reasonably timely payments. The utility
191.34may refer to commission staff a customer who requests more than two modifications of a
191.35payment agreement during a single cold weather rule period if no payments have been
191.36made.
192.1    (d) The payment agreement terminates at the expiration of the cold weather period
192.2unless a longer period is mutually agreed to by the customer and the utility.
192.3    Subd. 6. Verification of income. (a) In verifying a customer's household income,
192.4a utility may:
192.5    (1) accept the signed statement of a customer that the customer is income eligible;
192.6    (2) obtain income verification from a local energy assistance provider or a
192.7government agency;
192.8    (3) consider one or more of the following:
192.9    (i) the most recent income tax return filed by members of the customer's household;
192.10    (ii) for each employed member of the customer's household, paycheck stubs for the
192.11last two months or a written statement from the employer reporting wages earned during
192.12the preceding two months;
192.13    (iii) a customer's Medicaid card, documentation that the customer receives food
192.14stamps, or a food support eligibility document;
192.15    (iv) documentation that the customer receives a pension from the Department of
192.16Human Services, the Social Security Administration, the Veteran's Administration, or
192.17other pension provider;
192.18    (v) a letter showing the customer's dismissal from a job or other documentation of
192.19unemployment; or
192.20    (vi) other documentation that supports the customer's declaration of income
192.21eligibility.
192.22    (b) A customer who receives energy assistance benefits under any federal, state,
192.23or county government programs in which eligibility is defined as household income at
192.24or below 50 percent of state median income is deemed to be automatically eligible for
192.25protection under this section and no other verification of income may be required.
192.26    Subd. 7. Prohibitions and requirements. During the cold weather period:
192.27    (a) A utility may not charge a deposit or delinquency charge to a customer who has
192.28entered into a payment agreement or a customer who has appealed to the commission
192.29under subdivision 8.
192.30    (b) A utility may not disconnect service during the following periods:
192.31    (1) during the pendency of any appeal under subdivision 8;
192.32    (2) earlier than ten working days after a utility has deposited in first class mail,
192.33or seven working days after a utility has personally served, the notice required under
192.34subdivision 4 to a customer in an occupied dwelling;
192.35    (3) earlier than ten working days after the utility has deposited in first class mail
192.36the notice required under subdivision 4 to the recorded billing address of the customer,
193.1if the utility has reasonably determined from an on-site inspection that the dwelling
193.2is unoccupied;
193.3    (4) on a Friday, unless the utility makes personal contact with, and offers a payment
193.4agreement to, the customer;
193.5    (5) on a Saturday, Sunday, holiday, or the day before a holiday;
193.6    (6) when utility offices are closed;
193.7    (7) when no utility personnel are available to resolve disputes, enter into payment
193.8agreements, accept payments, and reconnect service; or
193.9    (8) when commission offices are closed.
193.10    (c) Also, a utility may not discontinue service until the utility investigates whether
193.11the dwelling is actually occupied. At a minimum, the investigation must include one visit
193.12by the utility to the dwelling during normal working hours. If no contact is made and
193.13there is reason to believe that the dwelling is occupied, the utility must attempt a second
193.14contact during nonbusiness hours. If personal contact is made, the utility representative
193.15must provide notice required under subdivision 4 and, if the utility representative is not
193.16authorized to enter into a payment agreement, the telephone number the customer can call
193.17to establish a payment agreement.
193.18    (d) Each utility must reconnect utility service if, following disconnection, the
193.19dwelling is found to be occupied and the customer agrees to enter into a payment
193.20agreement or appeals to the commission because the customer and the utility are unable to
193.21agree on a payment agreement.
193.22    Subd. 8. Disputes; customer appeals. (a) A utility must provide the customer
193.23and any designated third party with a commission-approved written notice of the right
193.24to appeal:
193.25    (1) upon a utility determination that the customer's household income is more than
193.2650 percent of state median household income; or
193.27    (2) when the utility and customer are unable to agree on the establishment or
193.28modification of a payment agreement.
193.29    (b) A customer's appeal must be filed with the commission no later than seven
193.30working days after the customer's receipt of a personally served disconnection notice, or
193.31within ten working days after the utility has deposited a first class mail notice. If no
193.32disconnection notice has been issued, an appeal may be filed at any time.
193.33    (c) The commission must determine all customer appeals on an informal basis,
193.34within 30 calendar days of receipt of a customer's written appeal. In making its
193.35determination, the commission must consider one or more of the factors in subdivision 6,
193.36paragraph (a), clauses (2) and (3).
194.1    (d) Notwithstanding any other law, following an appeals decision adverse to the
194.2customer, a utility may not disconnect utility heating service for seven working days
194.3after the utility has personally served a disconnection notice, or for ten working days
194.4after the utility has deposited a first class mail notice. The notice must contain, in
194.5easy-to-understand language, the date on or after which disconnection will occur, the
194.6reason for disconnection, and ways to avoid disconnection.
194.7    Subd. 9. Utility appeals. A utility may file an appeal of the commission's informal
194.8determination under subdivision 8 within 14 working days after it is issued. An appeal
194.9must be in writing, on forms prescribed by the commission. A copy of the appeal and a
194.10commission-approved letter explaining that the customer may have service disconnected
194.11must be mailed by the utility to the local human services or social services agency and
194.12the local energy assistance provider on the same day as the utility mails its appeal to
194.13the commission.
194.14    Subd. 10. Reporting. Annually on November 1, a utility must file with the
194.15commission a report specifying the number of utility heating service customers whose
194.16service is disconnected or remains disconnected as of October 1 and October 15. If
194.17customers remain disconnected on October 15, a utility must file a report each week
194.18between November 1 and the end of the cold weather period specifying:
194.19    (1) the number of utility heating service customers that are or remain disconnected
194.20from service; and
194.21    (2) the number of utility heating service customers that are reconnected to service
194.22each week. The utility may discontinue weekly reporting if the number of utility heating
194.23service customers that are or remain disconnected reaches zero before the end of the
194.24cold weather period.

194.25    Sec. 4. Minnesota Statutes 2006, section 216B.097, subdivision 1, is amended to read:
194.26    Subdivision 1. Application; notice to residential customer. (a) A municipal utility
194.27or a cooperative electric association must not disconnect and must reconnect the utility
194.28service of a residential customer during the period between October 15 and April 15 if
194.29the disconnection affects the primary heat source for the residential unit when and all of
194.30the following conditions are met:
194.31    (1) the customer has declared inability to pay on forms provided by the utility. For
194.32the purposes of this clause, a customer that is receiving energy assistance is deemed
194.33to have demonstrated an inability to pay;
195.1    (2) The household income of the customer is less than at or below 50 percent of the
195.2state median household income;. A municipal utility or cooperative electric association
195.3utility may (i) verify income on forms it provides or (ii) obtain
195.4    (3) verification of income may be conducted by from the local energy assistance
195.5provider or the utility, unless the. A customer is deemed automatically eligible for to meet
195.6the income requirements of this clause protection against disconnection as a recipient of
195.7if the customer receives any form of public assistance, including energy assistance, that
195.8uses an income eligibility in an amount threshold set at or below the income eligibility in
195.9clause (2); 50 percent of the state median household income.
195.10    (4) (2) A customer whose account is current for the billing period immediately prior
195.11to October 15 or who, at any time, enters into and makes reasonably timely payments
195.12under a payment schedule agreement that considers the financial resources of the
195.13household and is reasonably current with payments under the schedule; and.
195.14    (5) the (3) A customer receives referrals to energy assistance programs,
195.15weatherization, conservation, or other programs likely to reduce the customer's energy
195.16bills.
195.17    (b) A municipal utility or a cooperative electric association must, between August
195.1815 and October 15 of each year, notify all residential customers of the provisions of this
195.19section.

195.20    Sec. 5. Minnesota Statutes 2006, section 216B.097, subdivision 3, is amended to read:
195.21    Subd. 3. Restrictions if disconnection necessary. (a) If a residential customer must
195.22be involuntarily disconnected between October 15 and April 15 for failure to comply with
195.23the provisions of subdivision 1, the disconnection must not occur:
195.24    (1) on a Friday or on the day before a holiday, unless the customer declines to enter
195.25into a payment agreement offered that day in person or via personal contact by telephone
195.26by a municipal utility or cooperative electric association;
195.27    (2) on a weekend, holiday, or the day before a holiday;
195.28    (3) when utility offices are closed; or
195.29    (4) after the close of business on a day when disconnection is permitted, unless
195.30a field representative of a municipal utility or cooperative electric association who is
195.31authorized to enter into a payment agreement, accept payment, and continue service,
195.32offers a payment agreement to the customer.
195.33Further, the disconnection must not occur until at least 20 days after the notice required
195.34in subdivision 2 has been mailed to the customer or 15 days after the notice has been
195.35personally delivered to the customer.
196.1    (b) If a customer does not respond to a disconnection notice, the customer must
196.2not be disconnected until the utility investigates whether the residential unit is actually
196.3occupied. If the unit is found to be occupied, the utility must immediately inform the
196.4occupant of the provisions of this section. If the unit is unoccupied, the utility must give
196.5seven days' written notice of the proposed disconnection to the local energy assistance
196.6provider before making a disconnection.
196.7    (c) If, prior to disconnection, a customer appeals a notice of involuntary
196.8disconnection, as provided by the utility's established appeal procedure, the utility must
196.9not disconnect until the appeal is resolved.

196.10    Sec. 6. Minnesota Statutes 2006, section 216B.098, subdivision 4, is amended to read:
196.11    Subd. 4. Undercharges. (a) A utility shall offer a payment agreement to customers
196.12who have been undercharged if no culpable conduct by the customer or resident of
196.13the customer's household caused the undercharge. The agreement must cover a period
196.14equal to the time over which the undercharge occurred or a different time period that is
196.15mutually agreeable to the customer and the utility, except that the duration of a payment
196.16agreement offered by a utility to a customer whose household income is at or below 50
196.17percent of state median household income must consider the financial circumstances of
196.18the customer's household.
196.19    (b) No interest or delinquency fee may be charged under this as part of an
196.20undercharge agreement under this subdivision.
196.21    (c) If a customer inquiry or complaint results in the utility's discovery of the
196.22undercharge, the utility may bill for undercharges incurred after the date of the inquiry
196.23or complaint only if the utility began investigating the inquiry or complaint within a
196.24reasonable time after when it was made.

196.25    Sec. 7. Minnesota Statutes 2006, section 216B.16, subdivision 10, is amended to read:
196.26    Subd. 10. Intervenor payment compensation. (a) An organization or individual
196.27granted formal intervenor status by the commission is eligible to receive compensation.
196.28    (b) The commission may order a utility to pay all or a portion of a party's intervention
196.29 compensate all or part of an eligible intervenor's reasonable costs not to exceed $20,000
196.30per intervenor in any proceeding of participation in a general rate case that comes before
196.31the commission when the commission finds that the intervenor has materially assisted
196.32the commission's deliberation and the intervenor has insufficient financial resources to
196.33afford the costs of intervention and when a lack of compensation would present financial
196.34hardship to the intervenor. Compensation may not exceed $50,000 for a single intervenor
197.1in any proceeding. For the purpose of this subdivision, "materially assisted" means that
197.2the intervenor's participation and presentation was useful and seriously considered, or
197.3otherwise substantially contributed to the commission's deliberations in the proceeding.
197.4    (c) In determining whether an intervenor has materially assisted the commission's
197.5deliberation, the commission must consider, at a minimum, whether:
197.6    (1) the intervenor represented an interest that would not otherwise have been
197.7adequately represented;
197.8    (2) the evidence or arguments presented or the positions taken by the intervenor
197.9were an important factor in producing a fair decision;
197.10    (3) the intervenor's position promoted a public purpose or policy;
197.11    (4) the evidence presented, arguments made, issues raised, or positions taken by the
197.12intervenor would not have been a part of the record without the intervenor's participation;
197.13and
197.14    (5) the administrative law judge or the commission adopted, in whole or in part, a
197.15position advocated by the intervenor.
197.16    (d) In determining whether the absence of compensation would present financial
197.17hardship to the intervenor, the commission must consider:
197.18    (1) whether the costs presented in the intervenor's claim reflect reasonable fees for
197.19attorneys and expert witnesses and other reasonable costs; and
197.20    (2) the ratio between the costs of intervention and the intervenor's unrestricted funds.
197.21    (e) An intervenor seeking compensation must file a request and an affidavit of service
197.22with the commission, and serve a copy of the request on each party to the proceeding.
197.23The request must be filed 30 days after the later of (1) the expiration of the period within
197.24which a petition for rehearing, amendment, vacation, reconsideration, or reargument must
197.25be filed or (2) the date the commission issues an order following rehearing, amendment,
197.26vacation, reconsideration, or reargument.
197.27    (f) The compensation request must include:
197.28    (1) the name and address of the intervenor or representative of the nonprofit
197.29organization the intervenor is representing;
197.30    (2) if necessary, proof of the organization's nonprofit, tax-exempt status;
197.31    (3) the name and docket number of the proceeding for which compensation is
197.32requested;
197.33    (4) a list of actual annual revenues and expenses of the organization the intervenor is
197.34representing for the preceding year and projected revenues, revenue sources, and expenses
197.35for the current year;
198.1    (5) the organization's balance sheet for the preceding year and a current monthly
198.2balance sheet;
198.3    (6) an itemization of intervenor costs and the total compensation request; and
198.4    (7) a narrative explaining why additional organizational funds cannot be devoted
198.5to the intervention.
198.6    (g) Within 30 days after service of the request for compensation, a party may file
198.7a response, together with an affidavit of service, with the commission. A copy of the
198.8response must be served on the intervenor and all other parties to the proceeding.
198.9    (h) Within 15 days after the response is filed, the intervenor may file a reply with
198.10the commission. A copy of the reply and an affidavit of service must be served on all
198.11other parties to the proceeding.
198.12    (i) If additional costs are incurred as a result of additional proceedings following
198.13the commission's initial order, the intervenor may file an amended request within 30
198.14days after the commission issues an amended order. Paragraphs (e) to (h) apply to an
198.15amended request.
198.16    (j) The commission must issue a decision on intervenor compensation within 60
198.17days of a filing by an intervenor.
198.18    (k) A party may request reconsideration of the commission's compensation decision
198.19within 30 days of the decision.
198.20    (l) If the commission issues an order requiring payment of intervenor compensation,
198.21the utility that was the subject of the proceeding must pay the compensation to the
198.22intervenor, and file with the commission proof of payment, within 30 days after the later
198.23of (1) the expiration of the period within which a petition for reconsideration of the
198.24commission's compensation decision must be filed or (2) the date the commission issues
198.25an order following reconsideration of its order on intervenor compensation.

198.26    Sec. 8. Minnesota Statutes 2006, section 216B.16, subdivision 15, is amended to read:
198.27    Subd. 15. Low-income affordability programs. (a) The commission may must
198.28consider ability to pay as a factor in setting utility rates and may establish affordability
198.29programs for low-income residential ratepayers in order to ensure affordable, reliable, and
198.30continuous service to low-income utility customers. By September 1, 2007, a public
198.31utility serving low-income residential ratepayers who use natural gas for heating must
198.32file an affordability program with the commission. For purposes of this subdivision,
198.33"low-income residential ratepayers" means ratepayers who receive energy assistance from
198.34the low-income home energy assistance program (LIHEAP).
199.1    (b) The purpose of the low-income programs is to Any affordability program the
199.2commission orders a utility to implement must:
199.3    (1) lower the percentage of income that participating low-income households devote
199.4to energy bills, to;
199.5    (2) increase participating customer payments, and to over time by increasing the
199.6frequency of payments;
199.7    (3) decrease or eliminate participating customer arrears;
199.8    (4) lower the utility costs associated with customer account collection activities; and
199.9    (5) coordinate the program with other available low-income bill payment assistance
199.10and conservation resources.
199.11In ordering low-income affordability programs, the commission may require public
199.12utilities to file program evaluations, including the coordination of other available
199.13low-income bill payment and conservation resources and that measure the effect of the
199.14affordability program on:
199.15    (1) reducing the percentage of income that participating households devote to energy
199.16bills;
199.17    (2) service disconnections; and
199.18    (3) frequency of customer payment behavior payments, utility collection costs,
199.19arrearages, and bad debt.
199.20    (c) The commission must issue orders necessary to implement, administer, and
199.21evaluate affordability programs, and to allow a utility to recover program costs, including
199.22administrative costs, on a timely basis. The commission may not allow a utility to recover
199.23administrative costs, excluding start-up costs, in excess of five percent of total program
199.24costs, or program evaluation costs in excess of two percent of total program costs. The
199.25commission must permit deferred accounting, with carrying costs, for recovery of program
199.26costs incurred during the period between general rate cases.
199.27    (d) Public utilities may use information collected or created for the purpose of
199.28administering energy assistance to administer affordability programs.

199.29    Sec. 9. Minnesota Statutes 2006, section 216B.2422, is amended by adding a
199.30subdivision to read:
199.31    Subd. 2b. Xcel requirement. The utility that owns the nuclear generating plant
199.32at Prairie Island must include the following information in its resource plan for each
199.33community that is a signatory to the Northern Flood Agreement, including South Indian
199.34Lake:
200.1    (1) median household income and number of residents employed full time and
200.2part time;
200.3    (2) the number of outstanding claims filed against Manitoba Hydro by individuals
200.4and communities, and the number of claims settled by Manitoba Hydro; and
200.5    (3) the amount of shoreline damaged by flooding and erosion, and the amount of
200.6shoreline restored and cleaned.
200.7    For the purposes of this subdivision, "Northern Flood Agreement" means the
200.8agreement entered into by the Northern Flood Committee, Incorporated, the Manitoba
200.9Hydro-Electric Board, the province of Manitoba, and the government of Canada on
200.10December 16, 1977.

200.11    Sec. 10. RULES; INSTRUCTION TO COMMISSION AND REVISOR.
200.12    Subdivision 1. Public Utilities Commission. The commission must amend
200.13Minnesota Rules, chapters 7820 and 7831, to conform with the provisions of Minnesota
200.14Statutes, section 216B.096, as authorized under Minnesota Statutes, section 14.388,
200.15subdivision 1, clause (3).
200.16    Subd. 2. Revisor of statutes. The revisor of statutes shall change the reference from
200.17"216B.095" to "216B.096" wherever found in Minnesota Rules, chapter 7820.

200.18    Sec. 11. REPEALER.
200.19(a) Minnesota Rules, parts 7831.0100; 7831.0200; 7831.0300; 7831.0400;
200.207831.0500; 7831.0600; 7831.0700; and 7831.0800, are repealed as they pertain to a
200.21general rate case for a gas or electric utility held before the commission. The Public
200.22Utilities Commission shall timely adopt rules to conform with this repealer and Minnesota
200.23Statutes, section 216B.16, subdivision 10, as amended by this act, under the exempt rule
200.24procedures of Minnesota Statutes, section 14.388, subdivision 1, clause (3).
200.25(b) Minnesota Statutes 2006, section 216B.095, is repealed.