relating to state government; appropriating money for environment, natural
resources, and energy; authorizing sale of gift cards and certificates; establishing
composting competitive grant program; modifying regulation of storm water
discharges; modifying waste management reporting requirements; requiring
nonresident all-terrain vehicle state trail pass; modifying horse trail and state park
pass requirements; extending certain land sale requirements; prohibiting certain
sales of outdoor recreation system lands; providing for exchange of riparian land;
requiring disclosure of certain chemicals in children's products by manufacturers;
requiring plastic yard waste bags to be compostable and establishing labeling
standards; modifying feedlot permit and grant provisions; authorizing uses of
the Hennepin County solid and hazardous waste fund; modifying greenhouse
gas emissions provisions and requiring a registry; establishing, modifying,
and authorizing fees and surcharges; providing for disposition of certain fees;
modifying and establishing assessments for certain regulatory expenses;
modifying prior appropriations; prohibiting certain reorganizations; providing for
fish consumption advisories in different languages; limiting use of certain funds;
requiring studies and reports; appropriating money to Department of Commerce
and Public Utilities Commission to finance activities related to commerce and
energy; providing for green enterprise assistance; modifying provisions related to
insurance audits, insurers and insurance products, certain financial institutions,
regulated activities related to certain mortgage transactions and professionals,
and debt management and debt settlement services; providing penalties and
remedies;amending Minnesota Statutes 2008, sections 45.011, subdivision 1;
45.027, subdivision 1; 46.04, subdivision 1; 46.05; 46.131, subdivision 2; 47.58,
subdivision 1; 47.60, subdivisions 1, 3, 6; 48.21; 58.05, subdivision 3; 58.06,
subdivision 2; 58.126; 58.13, subdivision 1; 60A.124; 60A.14, subdivision
1; 60B.03, subdivision 15; 60L.02, subdivision 3; 61B.19, subdivision 4;
61B.28, subdivisions 4, 8; 67A.01; 67A.06; 67A.07; 67A.14, subdivisions
1, 7; 67A.18, subdivision 1; 84.0835, subdivision 3; 84.415, subdivision
5, by adding a subdivision; 84.63; 84.631; 84.632; 84.922, subdivision 1a;
84D.15, subdivision 2; 85.015, subdivision 1b; 85.053, subdivision 10; 85.46,
subdivisions 3, 4, 7; 92.685; 93.481, subdivisions 1, 3, 5, 7; 94.342, subdivision
3; 97A.075, subdivision 1; 103G.271, subdivision 6; 103G.301, subdivisions 2,
3; 115.03, subdivision 5c; 115.073; 115.56, subdivision 4; 115.77, subdivision
1; 115A.1314, subdivision 2; 115A.557, subdivision 1; 115A.931; 116.0711;
116.41, subdivision 2; 116C.834, subdivision 1; 216B.62, subdivisions 3, 4, 5, by
adding a subdivision; 216H.10, subdivision 7; 216H.11; 325E.311, subdivision
6; 332A.02, subdivisions 5, 8, 9, 10, 13, by adding subdivisions; 332A.04,
subdivision 6; 332A.08; 332A.10; 332A.11, subdivision 2; 332A.14; 332A.16;
Laws 2005, chapter 156, article 2, section 45, as amended; Laws 2007, chapter
57, article 1, section 4, subdivision 2; Laws 2008, chapter 363, article 5, section
4, subdivision 7; proposing coding for new law in Minnesota Statutes, chapters
60A; 61A; 67A; 84; 86A; 93; 115A; 116; 116J; 216H; 325E; 383B; proposing
coding for new law as Minnesota Statutes, chapter 332B; repealing Minnesota
Statutes 2008, sections 60A.129; 61B.19, subdivision 6; 67A.14, subdivision 5;
67A.17; 67A.19; Laws 2008, chapter 363, article 5, section 30; Minnesota Rules,
parts 2675.2180; 2675.7100; 2675.7110; 2675.7120; 2675.7130; 2675.7140.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.12ENVIRONMENT AND NATURAL RESOURCES FINANCE
2.14 The amounts shown in this section summarize direct appropriations, by fund, made
2.15in this article.
|Section 1. SUMMARY OF APPROPRIATIONS.
|State Government Special
|Game and Fish
2.27 The sums shown in the columns marked "Appropriations" are appropriated to the
2.28agencies and for the purposes specified in this article. The appropriations are from the
2.29general fund, or another named fund, and are available for the fiscal years indicated
2.30for each purpose. The figures "2010" and "2011" used in this article mean that the
2.31appropriations listed under them are available for the fiscal year ending June 30, 2010, or
2.32June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
2.33year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal
2.34year ending June 30, 2009, are effective the day following final enactment.
|Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
||Available for the Year
||Ending June 30
|Sec. 3. POLLUTION CONTROL AGENCY
|Subdivision 1.Total Appropriation
3.10The amounts that may be spent for each
3.11purpose are specified in the following
3.13The commissioner shall require the chief
3.14financial officer or other financial staff to
3.15display the agency's budget on the agency's
3.16Web site in a manner that will allow citizens
3.17to understand more easily the value they are
3.18getting for their money. The agency must
3.19have an air permit and regulatory account,
3.20water permit and regulatory account, and
3.21solid waste permit and regulatory account to
3.22track revenues and expenses.
3.23By October 1, 2010 and 2011, the
3.24commissioner shall submit a report to the
3.25chairs of the legislative committees with
3.26primary jurisdiction over the environment
3.27and natural resources policy and finance
3.28that includes the number of environmental
3.29assessment worksheets completed in the
3.30previous fiscal year, the total number of
3.31staff hours spent on those environmental
3.32assessment worksheets, and the average and
3.33median number of hours spent per completed
3.34environmental assessment worksheet.
4.1Fee rules adopted by the agency during fiscal
4.2year 2010 are effective retroactively on July
4.4A recipient of a grant funded by an
4.5appropriation under this section shall display
4.6on its Web site detailed information on
4.7the expenditure of the grant funds, and
4.8measurable outcomes as a result of the
4.9expenditure of funds, and submit this
4.10information to the agency by June 30 each
4.11year. A recipient without an active Web site
4.12shall report to the agency by June 30 each
4.13year detailed information on the expenditure
4.14of the grant funds, and measurable outcomes
4.15as a result of the expenditure of funds. The
4.16commissioner shall display the information
4.17received by recipients under this paragraph
4.18on the agency's Web site.
|Appropriations by Fund
4.25$2,348,000 the first year and $2,348,000
4.26the second year are for the clean water
4.27partnership program. Priority shall be
4.28given to projects preventing impairments
4.29and degradation of lakes, rivers, streams,
4.30and groundwater according to Minnesota
4.31Statutes, section 114D.20, subdivision 2,
4.32clause (4). Funds from this appropriation
4.33may not be used to purchase or use pesticides
4.34suspected by current science of being
4.35endocrine disruptors. To the extent possible,
4.36with money from this appropriation, a
5.1person must plant vegetation or sow seed
5.2only of ecotypes native to Minnesota, and
5.3preferably of the local ecotype, using a high
5.4diversity of species originating from as
5.5close to the restoration site as possible, and
5.6protect existing native prairies from genetic
5.7contamination. Any balance remaining in the
5.8first year does not cancel and is available for
5.9the second year.
5.10$2,164,000 the first year and $2,164,000 the
5.11second year must be distributed as grants to
5.12delegated counties to administer the county
5.13feedlot program under new Minnesota
5.14Statutes, section 116.0711, subdivisions 2
5.15and 3. Any money remaining after the first
5.16year is available for the second year.
5.17$310,000 the first year and $310,000 the
5.18second year are for community technical
5.19assistance and education, including grants
5.20and technical assistance to communities for
5.21local and basinwide water quality protection.
5.22$100,000 the first year is for grants to
5.23local units of government to implement
5.24cost-effective projects to control runoff,
5.25prevent erosion, and provide ditch
5.26stabilization, in order to protect water quality
5.27in lakes, rivers, and streams and to protect
5.28groundwater from degradation. This is a
5.30$350,000 the first year and $350,000 the
5.31second year are for challenge grants to
5.32counties for subsurface sewage treatment
5.33system (SSTS) inventories that will
5.34determine the number of systems that are
5.35failing or that pose an imminent health threat
6.1and are located on riparian land or a lake
6.2or near wetlands or other sensitive waters.
6.3Counties must provide a nonstate match of
6.4at least 50 percent that may be in cash or in
6.5kind. The commissioner shall, by county,
6.6report: the number of systems evaluated, the
6.7number of systems determined to be failing
6.8or that pose an imminent health threat located
6.9on riparian land or a lake or near wetlands or
6.10other sensitive waters, the number replaced
6.11or soon to be replaced, and the gallons of
6.12sewage that are prevented from threatening
6.13waters. The commissioner shall develop
6.14recommendations and a plan for directly
6.15or indirectly inspecting and providing an
6.16inventory for all subsurface sewage treatment
6.17systems and submit a report to the chairs of
6.18the legislative committees having primary
6.19jurisdiction over environment and natural
6.20resources policy and finance no later than
6.21September 15, 2010. Direct inspection
6.22methods shall include field verification of
6.23each SSTS on riparian land or a lake or
6.24near wetlands or other sensitive waters to
6.25determine the owner, location, and which
6.26systems are failing or are an imminent
6.27health threat. Indirect inspection methods
6.28may include census-type data collection to
6.29determine the owner and location of each
6.30SSTS in the remaining portion of each
6.31county. An SSTS with a valid certificate of
6.32compliance may be considered inventoried
6.33without further work. This is a onetime
6.35$375,000 the first year and $375,000 the
6.36second year are for subsurface sewage
7.1treatment system (SSTS) administration and
7.2grants. Of this amount, $80,000 each year
7.3is for assistance to counties through grants
7.4for SSTS program administration. Any
7.5unexpended balance in the first year does not
7.6cancel but is available in the second year.
7.7$740,000 the first year and $740,000 the
7.8second year are from the environmental
7.9fund to address the need for continued
7.10increased activity in the areas of new
7.11technology review, technical assistance
7.12for local governments, and enforcement
7.13under Minnesota Statutes, sections 115.55
7.14to 115.58, and to complete the requirements
7.15of Laws 2003, chapter 128, article 1, section
7.16165. Of this amount, $48,000 each year is for
7.17administration of individual septic tank fees,
7.18as provided in this article.
7.19$1,250,000 the first year and $1,250,000
7.20the second year are for assessment and
7.21monitoring of lakes, rivers, and streams.
7.22$100,000 the first year and $100,000 the
7.23second year are for a grant to the Red River
7.24Watershed Management Board to enhance
7.25and expand existing river watch activities in
7.26the Red River of the North and shall enhance
7.27student understanding of the causes of
7.28flooding, flood prevention, and the impacts
7.29of flood waters on land and water resources.
7.30The Red River Watershed Management
7.31Board shall provide a report that includes
7.32formal evaluation results from the river
7.33watch program to the commissioners of
7.34education and the Pollution Control Agency
7.35and to the legislative committees with
8.1jurisdiction over the environment and natural
8.2resources policy and finance and K-12 policy
8.3and finance by February 15, 2011. This is a
8.5$7,540,000 the first year and $7,540,000
8.6the second year are from the environmental
8.7fund for completion of 20 percent of the
8.8needed statewide assessments of surface
8.9water quality and trends.
8.10$500,000 the first year is to develop minimal
8.11impact design standards for urban storm
8.12water runoff. This is a onetime appropriation
8.13and is available until June 30, 2011. The
8.14commissioner shall report to the chairs and
8.15ranking minority members of the legislative
8.16committees and divisions having primary
8.17jurisdiction over environment and natural
8.18resources policy and finance no later than
8.19January 12, 2011, regarding the expenditure
8.20of this appropriation.
8.21By October 1, 2009 and 2010, the
8.22commissioner shall report to the chairs
8.23of the legislative committees having
8.24primary jurisdiction over environment and
8.25natural resources policy and finance on the
8.26effectiveness of enforcement actions in the
8.27previous fiscal year in preventing water
8.29The commissioner shall continue the
8.30rulemaking process to better align water
8.31permit fee revenue for fiscal years 2010,
8.322011, 2012, and 2013 with the cost of issuing
8.33permits, including environmental review.
8.34Notwithstanding Minnesota Statutes, section
8.3516A.28, the appropriations encumbered on or
9.1before June 30, 2011, as grants or contracts
9.2for clean water partnership, SSTS's, surface
9.3water and groundwater assessments, total
9.4maximum daily loads, stormwater, and local
9.5basinwide water quality protection in this
9.6subdivision are available until June 30, 2013.
|Appropriations by Fund
9.10Up to $150,000 the first year and $150,000
9.11the second year may be transferred from the
9.12environmental fund to the small business
9.13environmental improvement loan account
9.14established in Minnesota Statutes, section
9.16$200,000 the first year and $200,000 the
9.17second year are from the environmental fund
9.18for a monitoring program under Minnesota
9.19Statutes, section 116.454.
9.20$125,000 the first year and $125,000 the
9.21second year are from the environmental fund
9.22for monitoring ambient air for hazardous
9.23pollutants in the metropolitan area.
9.24An agency report on the level of fine
9.25particulate matter in Minnesota's air must
9.26compare measured levels with a 24-hour
9.27PM 2.5 standard of 13 to 14 micrograms
9.28per cubic meter and an annual PM 2.5
9.29standard of 30 to 35 micrograms per cubic
9.30meter, as recommended by the Particulate
9.31Matter Review Panel of the Environmental
9.32Protection Agency's Clean Air Scientific
9.33Advisory Committee in its June 2005 report,
9.34EPA's Review of the National Ambient Air
9.35Quality Standards for Particulate Matter
10.1(Second Draft PM Staff Paper, January
10.3$700,000 the first year and $700,000 the
10.4second year are from the environmental
10.5fund for an air emissions database, including
10.6monitoring greenhouse gas emissions.
10.7The commissioner shall continue the
10.8rulemaking process to better align air quality
10.9fee revenue for fiscal years 2010, 2011, 2012,
10.10and 2013 with the cost of issuing permits,
10.11including environmental review.
|Appropriations by Fund
10.17All money for environmental response,
10.18compensation, and compliance in the
10.19remediation fund not otherwise appropriated
10.20is appropriated to the commissioners of the
10.21Pollution Control Agency and agriculture
10.22for purposes of Minnesota Statutes, section
10.23115B.20, subdivision 2, clauses (1), (2),
10.24(3), (6), and (7). At the beginning of each
10.25fiscal year, the two commissioners shall
10.26jointly submit an annual spending plan to
10.27the commissioner of finance that maximizes
10.28the utilization of resources and appropriately
10.29allocates the money between the two
10.30departments. This appropriation is available
10.31until June 20, 2011.
10.32$3,616,000 the first year and $3,616,000 the
10.33second year are from the petroleum tank fund
10.34to be transferred to the remediation fund for
11.1purposes of the leaking underground storage
11.2tank program to protect the land.
11.3$252,000 the first year and $252,000 the
11.4second year are from the remediation fund to
11.5be transferred to the Department of Health for
11.6private water supply monitoring and health
11.7assessment costs in areas contaminated
11.8by unpermitted mixed municipal solid
11.9waste disposal facilities and drinking water
11.10advisories and public information activities
11.11for areas contaminated by hazardous releases.
11.12$500,000 each year is for environmental
11.13health tracking and biomonitoring of a
11.14representative sample of the population
11.15including indigenous people and people of
11.16color. Of this amount, $450,000 each year is
11.17for transfer to the Department of Health.
|Appropriations by Fund
|Subd. 5.Environmental Assistance and
11.23$14,250,000 each year is from the
11.24environmental fund for SCORE block grants
11.26$250,000 each year is from the environmental
11.27fund to administer the composting
11.28grant program established under new
11.29Minnesota Statutes, section 115A.559. The
11.30appropriation is added to the agency base
11.31and available until June 30, 2011.
11.32By January 15, 2012, the commissioner shall
11.33report to the legislative committees with
11.34jurisdiction over environment and natural
11.35resources policy on:
12.1(1) the mixed municipal solid waste diversion
12.2rates accomplished by the grant program
12.3under new Minnesota Statutes, section
12.5(2) participants in the grant program and the
12.6programs developed with grant funds; and
12.7(3) the potential for new permanent programs
12.8based on results of projects funded with
12.9grants issued under new Minnesota Statutes,
12.11$225,000 the first year and $89,000 the
12.12second year are from the environmental
12.13fund for duties related to harmful chemicals
12.14in products under new Minnesota Statutes,
12.15sections 116.9401 to 116.9407. Of this
12.16amount, $133,000 the first year and $57,000
12.17the second year are for transfer to the
12.18Department of Health.
12.19$119,000 the first year and $119,000 the
12.20second year are from the environmental
12.21fund for environmental assistance grants
12.22or loans under Minnesota Statutes, section
12.23115A.0716. Any unencumbered grant and
12.24loan balances in the first year do not cancel
12.25but are available for grants and loans in the
12.27All money deposited in the environmental
12.28fund for the metropolitan solid waste
12.29landfill fee in accordance with Minnesota
12.30Statutes, section 473.843, and not otherwise
12.31appropriated, is appropriated for the purposes
12.32of Minnesota Statutes, section 473.844.
12.33Notwithstanding Minnesota Statutes, section
12.3416A.28, the appropriations encumbered on
12.35or before June 30, 2011, as contracts or
13.1grants for surface water and groundwater
13.2assessments; environmental assistance
13.3awarded under Minnesota Statutes, section
13.4115A.0716; technical and research assistance
13.5under Minnesota Statutes, section 115A.152;
13.6technical assistance under Minnesota
13.7Statutes, section 115A.52; and pollution
13.8prevention assistance under Minnesota
13.9Statutes, section 115D.04, are available until
13.10June 30, 2013.
13.11Before the governor makes budget
13.12recommendations to the legislature in 2011,
13.13the commissioner must report on revenues
13.14received and expenditures made under
13.15Minnesota Statutes, section 115A.1314,
13.16subdivision 2, during fiscal years 2010
13.17and 2011 to determine if fees collected
13.18are covering the costs of the program and
13.19request that the governor recommend a direct
13.20appropriation for the purposes of that section.
|Appropriations by Fund
13.22The commissioner shall transfer $40,000,000
13.23from the environmental fund to the
13.24remediation fund for the purposes of the
13.25remediation fund under Minnesota Statutes,
13.26section 116.155, subdivision 2.
|Subd. 6.Administrative Support
|Sec. 4. NATURAL RESOURCES
|Subdivision 1.Total Appropriation
14.1The amounts that may be spent for each
14.2purpose are specified in the following
14.4To the extent possible, a person conducting
14.5restoration with money appropriated in this
14.6section must plant vegetation or sow seed
14.7only of ecotypes native to Minnesota, and
14.8preferably of the local ecotype, using a high
14.9diversity of species originating from as
14.10close to the restoration site as possible, and
14.11protect existing native prairies from genetic
14.13A recipient of a grant funded by an
14.14appropriation under this section shall display
14.15on its Web site detailed information on
14.16the expenditure of the grant funds, and
14.17measurable outcomes as a result of the
14.18expenditure of funds, and submit this
14.19information to the department by June 30
14.20each year. A recipient without an active
14.21Web site shall report to the department by
14.22June 30 each year detailed information on
14.23the expenditure of the grant funds, and
14.24measurable outcomes as a result of the
14.25expenditure of funds. The commissioner
14.26shall display the information received by
14.27recipients under this paragraph on the
14.28department's Web site.
14.29The commissioner shall require the chief
14.30financial officer or other financial staff
14.31to display the department's budget on the
14.32department's Web site in a manner that will
14.33allow citizens to easily understand the value
14.34they are getting for their money.
|Appropriations by Fund
|Game and Fish
|Subd. 2.Land and Mineral Resources
15.6$1,202,000 the first year and $1,202,000
15.7the second year are from the mining
15.8administration account in the natural
15.9resources fund to cover the costs associated
15.10with issuing mining permits.
15.11$612,000 each year is from the dedicated
15.12receipts account in the natural resources fund
15.13to cover the costs associated with issuing
15.14licenses for land and water crossings and
15.16$351,000 the first year and $351,000 the
15.17second year are for iron ore cooperative
15.18research. Of this amount, $200,000 each year
15.19is from the minerals management account
15.20in the natural resources fund. $175,500 the
15.21first year and $175,500 the second year are
15.22available only as matched by $1 of nonstate
15.23money for each $1 of state money. The
15.24match may be cash or in-kind.
15.25$86,000 the first year and $86,000 the
15.26second year are for minerals cooperative
15.27environmental research, of which $43,000
15.28the first year and $43,000 the second year are
15.29available only as matched by $1 of nonstate
15.30money for each $1 of state money. The
15.31match may be cash or in-kind.
15.32$2,696,000 the first year and $2,696,000
15.33the second year are from the minerals
15.34management account in the natural resources
15.35fund for use as provided in Minnesota
16.1Statutes, section 93.2236, paragraph (c),
16.2for mineral resource management, projects
16.3to enhance future mineral income, and
16.4projects to promote new mineral resource
16.6$200,000 the first year and $200,000 the
16.7second year are from the state forest suspense
16.8account in the permanent school fund to
16.9accelerate land exchanges, land sales, and
16.10commercial leasing of school trust lands and
16.11to identify, evaluate, and lease construction
16.12aggregate located on school trust lands. This
16.13appropriation is to be used for securing
16.14maximum long-term economic return
16.15from the school trust lands consistent with
16.16fiduciary responsibilities and sound natural
16.17resources conservation and management
|Appropriations by Fund
|Game and Fish
|Subd. 3.Water Resources Management
16.23By January 15, 2010, the commissioner
16.24shall submit a report evaluating and
16.25recommending options to provide for the
16.26long-term protection of the state's surface
16.27water and groundwater resources and
16.28the funding of programs to provide this
16.30$275,000 the first year and $275,000 the
16.31second year are for grants for up to 50
16.32percent of the cost of implementation of
16.33the Red River mediation agreement. The
16.34commissioner shall submit a report to the
16.35chairs of the legislative committees having
17.1primary jurisdiction over environment and
17.2natural resources policy and finance on the
17.3accomplishments achieved with the grants
17.4by January 15, 2012.
17.5$60,000 the first year and $60,000 the
17.6second year are for a grant to the Mississippi
17.7Headwaters Board for up to 50 percent of
17.8the cost of implementing the comprehensive
17.9plan for the upper Mississippi within areas
17.10under the board's jurisdiction.
17.11$5,000 the first year and $5,000 the second
17.12year are for payment to the Leech Lake Band
17.13of Chippewa Indians to implement the band's
17.14portion of the comprehensive plan for the
17.16$125,000 the first year and $125,000 the
17.17second year are for the construction of ring
17.18dikes under Minnesota Statutes, section
17.19103F.161. The ring dikes may be publicly
17.20or privately owned. If the appropriation in
17.21either year is insufficient, the appropriation
17.22in the other year is available for it.
17.23By October 1, 2009, the commissioner shall
17.24develop a plan for the development of an
17.25adequate groundwater level monitoring
17.26network of wells in the 11-county
17.27metropolitan area. The commissioner,
17.28working with the Metropolitan Council,
17.29the Department of Homeland Security, and
17.30the commissioner of the Pollution Control
17.31Agency, shall design the network so that
17.32the wells can be used to identify threats to
17.33groundwater quality and institute practices to
17.34protect the groundwater from degradation.
17.35The network must be sufficient to ensure
18.1that water use in the metropolitan area
18.2does not harm ecosystems, degrade water
18.3quality, or compromise the ability of future
18.4generations to meet their own needs. The
18.5plan should include recommendations on
18.6the necessary payment rates for users of the
18.7system expressed in cents per gallon for well
18.8drilling, operation, and maintenance.
|Appropriations by Fund
|Subd. 4.Forest Management
18.14$2,000,000 each year is to maintain forest
18.15management operations. This is a onetime
18.17$1,200,000 the first year and $950,000
18.18the second year are from the heritage
18.19enhancement account in the game and fish
18.20fund to maintain and expand the ecological
18.21classification system program on state forest
18.22lands and prevent the introduction and spread
18.23of invasive species on state lands. This is a
18.25$7,217,000 the first year and $7,217,000
18.26the second year are for prevention,
18.27presuppression, and suppression costs of
18.28emergency firefighting and other costs
18.29incurred under Minnesota Statutes, section
18.3088.12. If the appropriation for either
18.31year is insufficient to cover all costs of
18.32presuppression and suppression, the amount
18.33necessary to pay for these costs during the
18.34biennium is appropriated from the general
19.1By January 15 of each year, the commissioner
19.2of natural resources shall submit a report to
19.3the chairs and ranking minority members
19.4of the house and senate committees
19.5and divisions having jurisdiction over
19.6environment and natural resources finance,
19.7identifying all firefighting costs incurred
19.8and reimbursements received in the prior
19.9fiscal year. These appropriations may
19.10not be transferred. Any reimbursement
19.11of firefighting expenditures made to the
19.12commissioner from any source other than
19.13federal mobilizations shall be deposited into
19.14the general fund.
19.15$12,193,000 the first year and $11,093,000
19.16the second year are from the forest
19.17management investment account in the
19.18natural resources fund for only the purposes
19.19specified in Minnesota Statutes, section
19.2089.039, subdivision 2.
19.21$780,000 the first year and $780,000 the
19.22second year are for the Forest Resources
19.23Council for implementation of the
19.24Sustainable Forest Resources Act.
|Appropriations by Fund
|Game and Fish
|Subd. 5.Parks and Trails Management
19.30$1,175,000 the first year and $1,175,000 the
19.31second year are from the water recreation
19.32account in the natural resources fund for
19.33enhancing public water access facilities.
19.34Of this amount, $100,000 is a onetime
19.35appropriation to provide downloadable
20.1GPS coordinates and river gauge data
20.2interpretation. The base appropriation is
20.4The appropriation in Laws 2003, chapter
20.5128, article 1, section 5, subdivision 6, from
20.6the water recreation account in the natural
20.7resources fund for a cooperative project with
20.8the United States Army Corps of Engineers
20.9to develop the Mississippi Whitewater Park
20.10is available until June 30, 2011. The project
20.11must be designed to prevent the spread of
20.12aquatic invasive species.
20.13$4,371,000 the first year and $4,371,000 the
20.14second year are from the natural resources
20.15fund for state park and recreation area
20.16operations. Of this amount, $375,000 each
20.17year is for coordinated activities with Explore
20.18Minnesota Tourism. This appropriation is
20.19from the revenue deposited in the natural
20.20resources fund under Minnesota Statutes,
20.21section 297A.94, paragraph (e), clause (2).
20.22$8,424,000 the first year and $8,424,000
20.23the second year are from the snowmobile
20.24trails and enforcement account in the
20.25natural resources fund for the snowmobile
20.26grants-in-aid program. This additional
20.27money may be used for new grant-in-aid
20.28trails. Any unencumbered balance does not
20.29cancel at the end of the first year and is
20.30available for the second year.
20.31$400,000 the first year and $400,000 the
20.32second year are from the snowmobile trails
20.33and enforcement account in the natural
20.34resources fund for operation and maintenance
20.35of state trails and increased oversight and
21.1training for the grant-in-aid program. This is
21.2a onetime appropriation.
21.3$1,360,000 the first year and $1,360,000
21.4the second year are from the natural
21.5resources fund for the off-highway vehicle
21.6grants-in-aid program. Of this amount,
21.7$1,110,000 each year is from the all-terrain
21.8vehicle account; $150,000 each year is from
21.9the off-highway motorcycle account; and
21.10$100,000 each year is from the off-road
21.11vehicle account. Any unencumbered balance
21.12does not cancel at the end of the first year
21.13and is available for the second year.
21.14$760,000 the first year and $760,000 the
21.15second year are from the natural resources
21.16fund for state trail operations. This
21.17appropriation is from the revenue deposited
21.18in the natural resources fund under Minnesota
21.19Statutes, section 297A.94, paragraph (e),
|Appropriations by Fund
|Game and Fish
|Subd. 6.Fish and Wildlife Management
21.26$100,000 the first year and $100,000 the
21.27second year are from the nongame wildlife
21.28account in the natural resources fund for gray
21.30$120,000 the first year and $120,000 the
21.31second year from the game and fish fund are
21.32for gray wolf management.
21.33$285,000 the first year and $285,000 the
21.34second year are from the walleye stamp
21.35account in the game and fish fund for the
22.1purposes specified under Minnesota Statutes,
22.2section 97A.075, subdivision 6. Of this
22.3amount, $25,000 must be spent in the first
22.4year to provide signage to each independent
22.5licensed dealer for display and promotion of
22.6the walleye stamp.
22.7$600,000 the first year and $600,000 the
22.8second year are to accelerate wildlife health
22.9programs. This is a onetime appropriation.
22.10$1,860,000 the first year and $1,860,000 the
22.11second year are from the wildlife acquisition
22.12surcharge account for only the purposes
22.13specified in Minnesota Statutes, section
22.1497A.071, subdivision 2a. This appropriation
22.15is available until spent.
22.16$8,167,000 the first year and $8,167,000
22.17the second year are from the heritage
22.18enhancement account in the game and
22.19fish fund only for activities specified in
22.20Minnesota Statutes, section 297A.94,
22.21paragraph (e), clause (1). Of this amount, at
22.22least 20 percent must be used to purchase
22.23or restore land, of which over half must
22.24be used for restoration. Notwithstanding
22.25Minnesota Statutes, section 297A.94, five
22.26percent of this appropriation may be used for
22.27expanding hunter and angler recruitment and
22.28retention. This appropriation may be used to
22.29leverage other funds and to provide fish and
22.30wildlife technical assistance for shallow lake
22.31management and restoration and stream and
22.32lake shoreland and habitat improvement and
22.33maintenance on private lands.
22.34Notwithstanding Minnesota Statutes, section
22.3584.943, $13,000 the first year and $13,000
23.1the second year from the critical habitat
23.2private sector matching account may be used
23.3to publicize the critical habitat license plate
23.5$830,000 the first year and $830,000 the
23.6second year are from the trout and salmon
23.7management account for only the purposes
23.8specified in Minnesota Statutes, section
23.997A.075, subdivision 3.
23.10$1,553,000 the first year and $1,553,000 the
23.11second year are from the deer management
23.12account for only the purposes specified
23.13in Minnesota Statutes, section
23.14subdivision 1, paragraph (b).
23.15$890,000 the first year and $890,000 the
23.16second year are from the deer and bear
23.17management account for only the purposes
23.18specified in Minnesota Statutes, section
23.1997A.075, subdivision 1, paragraph (c).
23.20$700,000 the first year and $700,000 the
23.21second year are from the waterfowl habitat
23.22improvement account for only the purposes
23.23specified in Minnesota Statutes, section
23.2497A.075, subdivision 2.
23.25$925,000 the first year and $925,000 the
23.26second year are from the pheasant habitat
23.27improvement account for only the purposes
23.28specified in Minnesota Statutes, section
23.2997A.075, subdivision 4.
23.30$192,000 the first year and $192,000 the
23.31second year are from the wild turkey
23.32management account for only the purposes
23.33specified in Minnesota Statutes, section
23.3497A.075, subdivision 5. Of this amount,
23.35$8,000 the first year and $8,000 the second
24.1year are transferred from the game and fish
24.2fund to the wild turkey management account.
24.3$535,000 the first year and $535,000 the
24.4second year are for preserving, restoring, and
24.5enhancing grassland/wetland complexes on
24.6public or private lands.
24.7Notwithstanding Minnesota Statutes, section
24.816A.28, the appropriations encumbered
24.9under contract on or before June 30, 2011, for
24.10aquatic restoration grants and wildlife habitat
24.11grants are available until June 30, 2012.
|Appropriations by Fund
|Game and Fish
|Subd. 7.Ecological Services
24.17$1,223,000 the first year and $1,223,000 the
24.18second year are from the nongame wildlife
24.19management account in the natural resources
24.20fund for the purpose of nongame wildlife
24.21management. Notwithstanding Minnesota
290.431, $100,000 the first
24.23year and $100,000 the second year may
24.24be used for nongame wildlife information,
24.25education, and promotion.
24.26$1,636,000 the first year and $1,636,000
24.27the second year are from the heritage
24.28enhancement account in the game and
24.29fish fund for only the purposes specified
24.30in Minnesota Statutes, section 297A.94,
24.31paragraph (e), clause (1).
24.32$2,142,000 the first year and $2,142,000 the
24.33second year are from the invasive species
24.34account, and $2,090,000 the first year
24.35and $2,090,000 the second year are from
25.1the general fund for management, public
25.2awareness, assessment and monitoring
25.3research, law enforcement, and water access
25.4inspection to prevent the spread of invasive
25.5species; management of invasive plants in
25.6public waters; and management of terrestrial
25.7invasive species on state-administered lands.
25.8Funds from this appropriation may not be
25.9used to purchase or use pesticides suspected
25.10by current science of being endocrine
25.12The commissioner shall report on the
25.13projected outcomes and goals for protecting
25.14species in all ecological provinces and the
25.15quantity and quality of groundwater and
25.16surface water of the state, including but not
25.17limited to, protecting rare and endangered
25.18species, native prairies, and wetlands, from
25.19merging ecological services and waters
25.20duties to the senate and house natural
25.21resources policy and finance committees and
25.22divisions. The commissioner shall not merge
25.23ecological services and waters duties prior to
25.24presenting the report to the committees and
25.25divisions. Any merger must include a variant
25.26of the word "ecology" in the title of the new
|Appropriations by Fund
|Game and Fish
25.34$1,082,000 the first year and $1,082,000 the
25.35second year are from the water recreation
26.1account in the natural resources fund for
26.2grants to counties for boat and water safety.
26.3$315,000 the first year and $315,000 the
26.4second year are from the snowmobile
26.5trails and enforcement account in the
26.6natural resources fund for grants to local
26.7law enforcement agencies for snowmobile
26.9$1,164,000 the first year and $1,164,000
26.10the second year are from the heritage
26.11enhancement account in the game and
26.12fish fund for only the purposes specified
26.13in Minnesota Statutes, section
26.14paragraph (e), clause (1).
26.15$510,000 the first year and $510,000
26.16the second year are from the natural
26.17resources fund for grants to county law
26.18enforcement agencies for off-highway
26.19vehicle enforcement and public education
26.20activities based on off-highway vehicle use
26.21in the county. Of this amount, $498,000 each
26.22year is from the all-terrain vehicle account;
26.23$11,000 each year is from the off-highway
26.24motorcycle account; and $1,000 each year
26.25is from the off-road vehicle account. The
26.26county enforcement agencies may use
26.27money received under this appropriation
26.28to make grants to other local enforcement
26.29agencies within the county that have a high
26.30concentration of off-highway vehicle use. Of
26.31this appropriation, $25,000 each year is for
26.32administration of these grants.
26.33$250,000 the first year and $250,000 the
26.34second year are from the all-terrain vehicle
26.35account for grants to qualifying organizations
27.1to assist in safety and environmental
27.2education and monitoring trails on public
27.3lands under Minnesota Statutes, section
27.484.9011. Grants issued under this paragraph:
27.5(1) must be issued through a formal
27.6agreement with the organization; and (2)
27.7must not be used as a substitute for traditional
27.8spending by the organization. By December
27.915 each year, an organization receiving a
27.10grant under this paragraph shall report to the
27.11commissioner with details on expenditures
27.12and outcomes from the grant. By January
27.1315, 2011, the commissioner shall report
27.14on the expenditures and outcomes of the
27.15grants to the chairs and ranking minority
27.16members of the natural resources policy
27.17and finance committees and divisions. Of
27.18this appropriation, $25,000 each year is for
27.19administration of these grants.
27.20The commissioner must publicize
27.21opportunities for conservation officer
27.22employment and recruit, when possible,
27.23conservation officer candidates from the
27.24biological sciences departments at colleges
|Appropriations by Fund
|Game and Fish
|Subd. 9.Operations Support
27.31The commissioner may redirect the general
27.32fund reduction of $800,000 in fiscal year
27.332010 and $800,000 in fiscal year 2011, to
27.34other subdivisions of this section. No grants
27.35may be reduced. The commissioner shall
27.36report by October 1, 2011, to the chairs of
28.1the legislative committees having primary
28.2jurisdiction over environment and natural
28.3resources policy and finance regarding any
28.4redirection and what department outcomes
28.5were affected by the redirection.
28.6$320,000 the first year and $320,000 the
28.7second year are from the natural resources
28.8fund for grants to be divided equally between
28.9the city of St. Paul for the Como Zoo
28.10and Conservatory and the city of Duluth
28.11for the Duluth Zoo. This appropriation
28.12is from the revenue deposited to the fund
28.13under Minnesota Statutes, section 297A.94,
28.14paragraph (e), clause (5).
|Appropriations by Fund
|Game and Fish
28.17$3,900,000 the first year and $3,900,000 the
28.18second year are for natural resources block
28.19grants to local governments. The board may
28.20reduce the amount of the natural resources
28.21block grant to a county by an amount equal to
28.22any reduction in the county's general services
28.23allocation to a soil and water conservation
28.24district from the county's previous year
28.25allocation when the board determines that
28.26the reduction was disproportionate. Grants
28.27must be matched with a combination of local
28.28cash or in-kind contributions. The base
28.29grant portion related to water planning must
28.30be matched by an amount as specified by
28.31Minnesota Statutes, section 103B.3369.
28.32$3,500,000 the first year and $3,500,000
28.33the second year are for grants requested
28.34by soil and water conservation districts for
28.35general purposes, nonpoint engineering,
29.1and implementation of the reinvest in
29.2Minnesota conservation reserve program.
29.3Upon approval of the board, expenditures
29.4may be made from these appropriations for
29.5supplies and services benefiting soil and
29.6water conservation districts. Any district
29.7requesting a grant under this paragraph shall
29.8maintain a Web page that publishes, at a
29.9minimum, its annual plan, annual report,
29.10annual audit, annual budget, including
29.11membership dues, and meeting notices and
29.13$500,000 the first year and $500,000 the
29.14second year are for feedlot water quality
29.15grants for feedlots under 300 animal units
29.16where there are impaired waters.
29.17$2,000,000 the first year and $2,000,000
29.18the second year are for grants to soil and
29.19water conservation districts for cost-sharing
29.20contracts for erosion control, water quality
29.21management, of which at least $900,000
29.22each year is for establishing and maintaining
29.23riparian vegetation buffers of restored native
29.24prairie and restored prairie.
29.25$100,000 the first year and $100,000
29.26the second year are available for county
29.27cooperative weed management programs and
29.28to restore native plants in selected invasive
29.29species management sites by providing local
29.30native seeds and plants to landowners for
29.32Notwithstanding Minnesota Statutes, section
29.33103C.501, the board may shift cost-share
29.34funds in this section and may adjust the
29.35technical and administrative assistance
30.1portion of the grant funds to leverage
30.2federal or other nonstate funds or to address
30.3high-priority needs identified in local water
30.5$500,000 the first year and $500,000 the
30.6second year are for implementation and
30.7enforcement of the Wetland Conservation
30.8Act. The board must make available
30.9information about final enforcement actions
30.10on the board's Web site.
30.11$60,000 each year is for staff to monitor and
30.12enforce wetland replacement, wetland bank
30.13sites, and the Wetland Conservation Act. The
30.14board must include in its biennial report to
30.15the legislature information on all state and
30.16local units of government, including special
30.17purpose districts and impacts on wetlands
30.18in the state. This information must be made
30.19available on the board's Web site.
30.20$100,000 each year is for transfer to the
30.21commissioner of natural resources for
30.22enforcement of wetland violations.
30.23$100,000 each year is to make grants to local
30.24units of government within the 11-county
30.25metropolitan area to improve response to
30.26major wetland violations.
30.27$100,000 each year is for cost-share grants
30.28to local governments for public drainage
30.30$212,000 each year is to provide assistance
30.31to local drainage management officials and
30.32for the costs of the Drainage Work Group.
30.33$90,000 the first year and $90,000 the second
30.34year are for a grant to the Red River Basin
31.1Commission for water quality and floodplain
31.2management, including administration of
31.3programs. The commission shall submit
31.4a report to the chairs of the legislative
31.5committees having primary jurisdiction
31.6over environment and natural resources
31.7policy and finance on the accomplishments
31.8achieved with this appropriation by January
31.915, 2012. If the appropriation in either year
31.10is insufficient, the appropriation in the other
31.11year is available for it.
31.12$90,000 each year is to the Minnesota River
31.13Basin Joint Powers Board, also known as
31.14the Minnesota River Board, for operating
31.15expenses to measure and report the results of
31.16projects in the 12 major watersheds within
31.17the Minnesota River basin.
31.18$130,000 each year is for grants to Area
31.19II, Minnesota River Basin Projects,
31.20for floodplain management, including
31.21administration of programs.
31.22Notwithstanding Minnesota Statutes, section
31.23103C.501, a balance in the board's cost-share
31.24program is available for $150,000 each year
31.25for evaluating and reporting on performance,
31.26financial, and activity information of local
31.27water management entities as provided for in
31.28Minnesota Statutes, section 103B.102.
31.29The appropriations for grants in this
31.30section are available until expended. If an
31.31appropriation for grants in either year is
31.32insufficient, the appropriation in the other
31.33year is available for it.
31.34To the extent possible, any person conducting
31.35a restoration with money appropriated in
32.1this section must plant vegetation or sow
32.2seed only of ecotypes native to Minnesota,
32.3and preferably of the local ecotype, using a
32.4high diversity of species originating from as
32.5close to the restoration site as possible, and
32.6protect existing native prairies from genetic
32.8A recipient of a grant funded by an
32.9appropriation under this section shall display
32.10on its Web site detailed information on
32.11the expenditure of the grant funds, and
32.12measurable outcomes as a result of the
32.13expenditure of funds, and submit this
32.14information to the board by June 30 each
32.15year. A recipient without an active Web site
32.16shall report to the board by June 30 each year
32.17detailed information on the expenditure of
32.18the grant funds, and measurable outcomes
32.19as a result of the expenditure of funds. The
32.20board shall display the information received
32.21by recipients under this paragraph on the
32.22board's Web site.
32.23The board shall require the chief financial
32.24officer or other financial staff to display the
32.25board's budget on the board's Web site in a
32.26manner that will allow citizens to understand
32.27more easily the value they are getting for
|Sec. 5. BOARD OF WATER AND SOIL
|Sec. 6. METROPOLITAN COUNCIL
32.34$3,810,000 the first year and $3,810,000
32.35the second year are for metropolitan area
33.1regional parks operation and maintenance
33.2according to Minnesota Statutes, section
33.4$5,070,000 the first year and $5,070,000 the
33.5second year are from the natural resources
33.6fund for metropolitan area regional parks
33.7and trails maintenance and operations. This
33.8appropriation is from the revenue deposited
33.9in the natural resources fund under Minnesota
33.10Statutes, section 297A.94, paragraph (e),
|Appropriations by Fund
|Sec. 7. MINNESOTA CONSERVATION
33.18The Minnesota Conservation Corps may
33.19receive money appropriated from the
33.20natural resources fund under this section
33.21only as provided in an agreement with the
33.22commissioner of natural resources.
|Appropriations by Fund
|Sec. 8. ZOOLOGICAL BOARD
33.28$160,000 the first year and $160,000 the
33.29second year are from the natural resources
33.30fund from the revenue deposited under
33.31Minnesota Statutes, section 297A.94,
33.32paragraph (e), clause (5).
|Appropriations by Fund
|Sec. 9. SCIENCE MUSEUM OF
Sec. 10. Minnesota Statutes 2008, section 84.0835, subdivision 3, is amended to read:
Subd. 3. Citation authority.
Employees designated by the commissioner under
subdivision 1 may issue citations, as specifically authorized under this subdivision, for
85.052, subdivision 3
(payment of camping fees in state parks),
34.685.45, subdivision 1
(cross-country ski pass),
(horse trail pass), and 84.9275
34.7(nonresident all-terrain vehicle state trail pass)
(2) rules relating to hours and days of operation, restricted areas, noise, fireworks,
environmental protection, fires and refuse, pets, picnicking, camping and dispersed
camping, nonmotorized uses, construction of unauthorized permanent trails, mooring of
boats, fish cleaning, swimming, storage and abandonment of personal property, structures
and stands, animal trespass, state park individual and group motor vehicle permits,
licensed motor vehicles, designated roads, and snowmobile operation off trails;
(3) rules relating to off-highway vehicle registration, display of registration numbers,
required equipment, operation restrictions, off-trail use for hunting and trapping, and
operation in lakes, rivers, and streams;
(4) rules relating to off-highway vehicle and snowmobile operation causing damage
or in closed areas within the Richard J. Dorer Memorial Hardwood State Forest;
(5) rules relating to parking, snow removal, and damage on state forest roads; and
(6) rules relating to controlled hunting zones on major wildlife management units.
34.21EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 11. [84.0854] GIFT CARD AND CERTIFICATE SALES; RECEIPTS;
34.24 Subdivision 1. Sales authorized; gift cards and certificates. The commissioner
34.25may sell gift cards and certificates that can be used to purchase licenses, permits, products,
34.26or services sold by the commissioner. Gift cards and certificates are valid until they
34.27are redeemed. The commissioner may advertise the availability of this program and
34.28items offered for sale under this section. The commissioner may make the purchase and
34.29redemption of gift cards available electronically.
34.30 Subd. 2. Receipts; disposition. Proceeds of gift card and certificate sales shall be
34.31deposited in an account in the special revenue fund. When gift cards or certificates are
34.32redeemed, funds shall be transferred to the appropriate account or fund based on the
34.33license, permit, product, or service purchased. Money in the gift card and certificate
34.34account shall accrue interest, which shall be credited to the account. Interest on funds in
34.35the account is appropriated to the commissioner to help cover the cost of administering
35.1the gift card and certificate program. Money from gift cards and certificates sold but
35.2unredeemed after three years shall be transferred to the various accounts and funds
35.3receiving revenue from purchases of licenses, permits, products, or services purchased
35.4with gift card or certificate redemptions in the last two fiscal years. Unredeemed funds
35.5shall be distributed based on the dollar value of cards redeemed for the various licenses,
35.6permits, products, or services on a pro rata basis.
35.7 Subd. 3. Exemption from rulemaking. This section is not subject to the
35.8rulemaking provisions of chapter 14 and section 14.386 does not apply.
Sec. 12. Minnesota Statutes 2008, section 84.415, subdivision 5, is amended to read:
Fee Fees; disposition. (a)
In the event the construction of
causes damage to timber or other property of the state on or along the same, the license
or permit shall also provide for payment to the commissioner of finance of the amount
thereof of the damages
determined by the commissioner.
35.14(b) The application fee specified in Minnesota Rules is credited to the general fund.
All money received under such licenses or permits (c) The utility crossing fees
35.16specified in Minnesota Rules
shall be credited to the fund to which other income or
proceeds of sale from
land would be credited
, if provision therefor be made as
by law, otherwise to the general fund.
35.19(d) Money received from licenses and permits issued under this section for use of
35.20the beds of navigable waters shall be credited to the permanent school fund.
35.21(e) Money received under subdivision 6 must be credited to the land management
35.22account in the natural resources fund and is appropriated to the commissioner of natural
35.23resources to cover the costs incurred for issuing and monitoring utility licenses.
Sec. 13. Minnesota Statutes 2008, section 84.415, is amended by adding a subdivision
35.26 Subd. 6. Supplemental application fee and monitoring fee. (a) In addition to the
35.27application fee and utility crossing fees specified in Minnesota Rules, the commissioner of
35.28natural resources shall assess the applicant for a utility license the following fees:
35.29(1) a supplemental application fee of $1,500 for a public water crossing license and
35.30a supplemental application fee of $4,500 for a public lands crossing license, to cover
35.31reasonable costs for reviewing the application and preparing the license; and
35.32(2) a monitoring fee to cover the projected reasonable costs for monitoring the
35.33construction of the utility line and preparing special terms and conditions of the license
36.1to ensure proper construction. The commissioner must give the applicant an estimate of
36.2the monitoring fee before the applicant submits the fee.
36.3(b) The applicant shall pay fees under this subdivision to the commissioner of
36.4natural resources. The commissioner shall not issue the license until the applicant has
36.5paid all fees in full.
36.6(c) Upon completion of construction of the improvement for which the license
36.7or permit was issued, the commissioner shall refund the unobligated balance from the
36.8monitoring fee revenue. The commissioner shall not return the application fees, even
36.9if the application is withdrawn or denied.
Sec. 14. Minnesota Statutes 2008, section 84.63, is amended to read:
36.1184.63 CONVEYANCE OF INTERESTS IN LANDS TO STATE AND
Notwithstanding any existing law to the contrary, the commissioner of natural
resources is hereby authorized on behalf of the state to convey to the United States
or to the state of Minnesota or any of its subdivisions, upon state-owned lands under
the administration of the commissioner of natural resources, permanent or temporary
easements for specified periods or otherwise for trails, highways, roads including
limitation of right of access from the lands to adjacent highways and roads, flowage for
development of fish and game resources, stream protection, flood control, and necessary
appurtenances thereto, such conveyances to be made upon such terms and conditions
including provision for reversion in the event of non-user as the commissioner of natural
resources may determine.
36.23(b) In addition to the fee for the market value of the easement, the commissioner of
36.24natural resources shall assess the applicant the following fees:
36.25(1) an application fee of $2,000 to cover reasonable costs for reviewing the
36.26application and preparing the easement; and
36.27(2) a monitoring fee to cover the projected reasonable costs for monitoring the
36.28construction of the improvement for which the easement was conveyed and preparing
36.29special terms and conditions for the easement. The commissioner must give the applicant
36.30an estimate of the monitoring fee before the applicant submits the fee.
36.31(c) The applicant shall pay these fees to the commissioner of natural resources.
36.32The commissioner shall not issue the easement until the applicant has paid in full the
36.33application fee, the monitoring fee, and the market value payment for the easement.
36.34(d) Upon completion of construction of the improvement for which the easement
36.35was conveyed, the commissioner shall refund the unobligated balance from the monitoring
37.1fee revenue. The commissioner shall not return the application fee, even if the application
37.2is withdrawn or denied.
37.3(e) Money received under paragraph (b) must be deposited in the land management
37.4account in the natural resources fund and is appropriated to the commissioner of natural
37.5resources to cover the reasonable costs incurred for issuing and monitoring easements.
Sec. 15. Minnesota Statutes 2008, section 84.631, is amended to read:
37.784.631 ROAD EASEMENTS ACROSS STATE LANDS.
(a) Except as provided in section
85.015, subdivision 1b
, the commissioner, on
behalf of the state, may convey a road easement across state land under the commissioner's
jurisdiction other than school trust land, to a private person requesting an easement for
access to property owned by the person only if the following requirements are met: (1)
there are no reasonable alternatives to obtain access to the property; and (2) the exercise
of the easement will not cause significant adverse environmental or natural resource
(b) The commissioner shall:
(1) require the applicant to pay the market value of the easement;
(2) provide that the easement reverts to the state in the event of nonuse; and
(3) impose other terms and conditions of use as necessary and appropriate under
(c) An applicant shall submit
a an application
$2,000 with each
application for a road easement across state land.
The commissioner must give the
37.22 applicant an estimate of the costs of the road easement before the applicant submits the
The application fee is nonrefundable, even if the application is withdrawn or denied.
(d) In addition to the payment for the market value of the easement and the
37.25application fee, the commissioner of natural resources shall assess the applicant a
37.26monitoring fee to cover the projected reasonable costs for monitoring the construction of
37.27the road and preparing special terms and conditions for the easement. The commissioner
37.28must give the applicant an estimate of the monitoring fee before the applicant submits
37.29the fee. The applicant shall pay the application and monitoring fees to the commissioner
37.30of natural resources. The commissioner shall not issue the easement until the applicant
37.31has paid in full the application fee, the monitoring fee, and the market value payment for
37.33(e) Upon completion of construction of the road, the commissioner shall refund the
37.34unobligated balance from the monitoring fee revenue.
Fees collected under
(c) and (d)
the land management account in the natural resources fund and are appropriated
38.3to the commissioner of natural resources to cover the reasonable costs incurred under
Sec. 16. Minnesota Statutes 2008, section 84.632, is amended to read:
38.684.632 CONVEYANCE OF UNNEEDED STATE EASEMENTS.
(a) Notwithstanding section
, the commissioner of natural resources may,
in the name of the state, release all or part of an easement acquired by the state upon
application of a landowner whose property is burdened with the easement if the easement
is not needed for state purposes.
(b) All or part of an easement may be released by payment of
consideration of not
38.12 less than $500, to be determined by the commissioner the market value of the easement
The release must be in a form approved by the attorney general.
(c) Money received
for release of the easement under paragraph (b)
must be credited
to the account from which money was expended for purchase of the easement. If there is
no specific account, the money must be credited to the land acquisition account established
38.18(d) In addition to payment under paragraph (b), the commissioner of natural
38.19resources shall assess a landowner who applies for a release under this section an
38.20application fee of $2,000 for reviewing the application and preparing the release of
38.21easement. The applicant shall pay the application fee to the commissioner of natural
38.22resources. The commissioner shall not issue the release of easement until the applicant
38.23has paid the application fee in full. The commissioner shall not return the application fee,
38.24even if the application is withdrawn or denied.
38.25(e) Money received under paragraph (d) must be credited to the land management
38.26account in the natural resources fund and is appropriated to the commissioner of natural
38.27resources to cover the reasonable costs incurred under this section.
Sec. 17. Minnesota Statutes 2008, section 84.922, subdivision 1a, is amended to read:
Subd. 1a. Exemptions.
All-terrain vehicles exempt from registration are:
(1) vehicles owned and used by the United States, the state, another state, or a
(2) vehicles registered in another state or country that have not been in this state for
more than 30 consecutive days;
38.34(3) vehicles that:
39.1(i) are owned by a resident of another state or country that does not require
39.2registration of all-terrain vehicles;
39.3(ii) have not been in this state for more than 30 consecutive days; and
39.4(iii) are operated on state and grant-in-aid trails by a nonresident possessing a
39.5nonresident all-terrain vehicle state trail pass;
vehicles used exclusively in organized track racing events; and
vehicles that are 25 years old or older and were originally produced as a
separate identifiable make by a manufacturer.
39.9EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 18. [84.9275] NONRESIDENT ALL-TERRAIN VEHICLE STATE TRAIL
39.12 Subdivision 1. Pass required; fee. (a) A nonresident may not operate an all-terrain
39.13vehicle on a state or grant-in-aid all-terrain vehicle trail unless the operator carries a valid
39.14nonresident all-terrain vehicle state trail pass in immediate possession. The pass must
39.15be available for inspection by a peace officer, a conservation officer, or an employee
39.16designated under section 84.0835.
39.17(b) The commissioner of natural resources shall issue a pass upon application and
39.18payment of a $20 fee. The pass is valid from January 1 through December 31. Fees
39.19collected under this section, except for the issuing fee for licensing agents, shall be
39.20deposited in the state treasury and credited to the all-terrain vehicle account in the natural
39.21resources fund and, except for the electronic licensing system commission established by
39.22the commissioner under section
84.027, subdivision 15, must be used for grants-in-aid to
39.23counties and municipalities for all-terrain vehicle organizations to construct and maintain
39.24all-terrain vehicle trails and use areas.
39.25 (c) A nonresident all-terrain vehicle state trail pass is not required for:
39.26 (1) an all-terrain vehicle that is owned and used by the United States, another state,
39.27or a political subdivision thereof that is exempt from registration under section 84.922,
39.28subdivision 1a; or
39.29 (2) a person operating an all-terrain vehicle only on the portion of a trail that is
39.30owned by the person or the person's spouse, child, or parent.
39.31 Subd. 2. License agents. The commissioner may appoint agents to issue and sell
39.32nonresident all-terrain vehicle state trail passes. The commissioner may revoke the
39.33appointment of an agent at any time. The commissioner may adopt additional rules as
39.34provided in section
97A.485, subdivision 11. An agent shall observe all rules adopted
39.35by the commissioner for accounting and handling of passes pursuant to section
. An agent shall promptly deposit and remit all money received from the
40.2sale of the passes, exclusive of the issuing fee, to the commissioner.
40.3 Subd. 3. Issuance of passes. The commissioner and agents shall issue and sell
40.4nonresident all-terrain vehicle state trail passes. The commissioner shall also make the
40.5passes available through the electronic licensing system established under section 84.027,
40.7 Subd. 4. Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass
40.8shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees for
40.9passes issued by the commissioner shall be deposited in the all-terrain vehicle account in
40.10the natural resources fund and retained for the operation of the electronic licensing system.
40.11 Subd. 5. Duplicate passes. The commissioner and agents shall issue a duplicate
40.12pass to persons whose pass is lost or destroyed using the process established under section
40.1397A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident
40.14all-terrain vehicle state trail pass is $2, with an issuing fee of 50 cents.
40.15EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 19. Minnesota Statutes 2008, section 84D.15, subdivision 2, is amended to read:
Subd. 2. Receipts.
Money received from surcharges on watercraft licenses under
86B.415, subdivision 7
, and civil penalties under section
shall be deposited
in the invasive species account. Each year, the commissioner of finance shall transfer from
the game and fish fund to the invasive species account, the annual surcharge collected on
nonresident fishing licenses under section
97A.475, subdivision 7
, paragraph (b). In fiscal
40.22years 2010 and 2011, the commissioner of finance shall transfer $725,000 from the water
40.23recreation account under section 86B.706 to the invasive species account.
Sec. 20. Minnesota Statutes 2008, section 85.015, subdivision 1b, is amended to read:
Subd. 1b. Easements for ingress and egress. (a)
40.26except as provided in paragraph (b),
when a trail is established under this section, a
private property owner who has a preexisting right of ingress and egress over the trail
right-of-way is granted, without charge, a permanent easement for ingress and egress
purposes only. The easement is limited to the preexisting crossing and reverts to the state
upon abandonment. Nothing in this subdivision is intended to diminish or alter any written
or recorded easement that existed before the state acquired the land for the trail.
40.32(b) The commissioner of natural resources shall assess the applicant an application
40.33fee of $2,000 for reviewing the application and preparing the easement. The applicant
40.34shall pay the application fee to the commissioner of natural resources. The commissioner
41.1shall not issue the easement until the applicant has paid the application fee in full. The
41.2commissioner shall not return the application fee, even if the application is withdrawn
41.4(c) Money received under paragraph (b) must be credited to the land management
41.5account in the natural resources fund and is appropriated to the commissioner of natural
41.6resources to cover the reasonable costs incurred under this section.
Sec. 21. Minnesota Statutes 2008, section 85.053, subdivision 10, is amended to read:
Subd. 10. Free entrance; totally and permanently disabled veterans.
commissioner shall issue an annual park permit for no charge
any veteran with a
total and permanent service-connected disability, as determined by the United States
41.11Department of Veterans Affairs,
who presents each year a copy of their determination
letter to a park attendant or commissioner's designee. For the purposes of this section,
with a total and permanent service-connected disability" means a resident who
41.14 has a total and permanent service-connected disability as adjudicated by the United States
41.15 Veterans Administration or by the retirement board of one of the several branches of the
41.16 armed forces has the meaning given in section 197.447
41.17EFFECTIVE DATE.This section is effective July 1, 2009, for state park permits
41.18issued on or after that date.
Sec. 22. Minnesota Statutes 2008, section 85.46, subdivision 3, is amended to read:
Subd. 3. Issuance.
The commissioner of natural resources and agents shall issue
and sell horse trail passes. The pass shall include the applicant's signature and other
information deemed necessary by the commissioner. To be valid, a daily or annual
must be signed by the person riding, leading, or driving the horse, and a commercial
41.24annual pass must be signed by the owner of the commercial trail riding facility
41.25EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 23. Minnesota Statutes 2008, section 85.46, subdivision 4, is amended to read:
Subd. 4. Pass fees.
(a) The fee for an annual horse trail pass is $20 for an individual
16 years of age and over. The fee shall be collected at the time the pass is purchased.
Annual passes are valid for one year beginning January 1 and ending December 31.
(b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and
over. The fee shall be collected at the time the pass is purchased. The daily pass is valid
only for the date designated on the pass form.
42.1(c) The fee for a commercial annual horse trail pass is $200 and includes issuance
42.2of 15 passes. Additional or individual commercial annual horse trail passes may be
42.3purchased by the commercial trail riding facility owner at a fee of $20 each. Commercial
42.4annual horse trail passes are valid for one year beginning January 1 and ending December
42.531 and may be affixed to the horse tack, saddle, or person. Commercial annual horse trail
42.6passes are not transferable to another commercial trail riding facility. For the purposes of
42.7this section, a "commercial trail riding facility" is an operation where horses are used for
42.8riding instruction or other equestrian activities for hire or use by others.
42.9EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 24. Minnesota Statutes 2008, section 85.46, subdivision 7, is amended to read:
Subd. 7. Duplicate horse trail passes.
The commissioner of natural resources and
agents shall issue a duplicate pass to a person or commercial trail riding facility owner
whose pass is lost or destroyed using the process established under section
subdivision 3, and rules adopted thereunder. The fee for a duplicate horse trail pass is $2,
with an issuing fee of 50 cents.
42.16EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 25. [86A.055] PROHIBITION ON SALES OF OUTDOOR RECREATION
42.18SYSTEM LANDS FOR CERTAIN PURPOSES.
42.19Notwithstanding Laws 2005, chapter 156, article 2, section 45, as amended by Laws
42.202007, chapter 148, article 2, section 73, or other law to the contrary, a state agency shall
42.21not sell land that, on or after the effective date of this section, is classified as a unit of the
42.22outdoor recreation system under section 86A.05, for the purpose of anticipated savings
42.23to the general fund.
42.24EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 26. Minnesota Statutes 2008, section 92.685, is amended to read:
42.2692.685 LAND MANAGEMENT ACCOUNT.
The land management account is created in the natural resources fund. Money
credited to the account is appropriated annually to the commissioner of natural resources
for the Lands and Minerals Division
to administer the utility easement program under
42.30section 84.415, the easement program under section 84.63,
the road easement program
84.631, the easement release program under section 84.632, and the trail
43.2easement program under section 85.015, subdivision 1b
Sec. 27. Minnesota Statutes 2008, section 93.481, subdivision 1, is amended to read:
Subdivision 1. Prohibition against mining without permit; application for
Except as provided in this subdivision, after June 30, 1975, no person shall
engage in or carry out a mining operation for metallic minerals within the state unless the
person has first obtained a permit to mine from the commissioner. Any person engaging
in or carrying out a mining operation as of the effective date of the rules
shall apply for a permit to mine within 180 days after the
effective date of such rules. Any such existing mining operation may continue during the
pendency of the application for the permit to mine. The person applying for a permit shall
apply on forms prescribed by the commissioner and shall submit such information as the
commissioner may require, including but not limited to the following:
a proposed plan for the reclamation or restoration, or both, of any mining
area affected by mining operations to be conducted on and after the date on which permits
are required for mining under this section;
a certificate issued by an insurance company authorized to do business in
the United States that the applicant has a public liability insurance policy in force for
the mining operation for which the permit is sought, or evidence that the applicant has
satisfied other state or federal self-insurance requirements, to provide personal injury
and property damage protection in an amount adequate to compensate any persons who
might be damaged as a result of the mining operation or any reclamation or restoration
operations connected with the mining operation;
43.24(3) an application fee of:
43.25(i) $25,000 for a permit to mine for a taconite mining operation;
43.26(ii) $50,000 for a permit to mine for a nonferrous metallic minerals operation;
43.27(iii) $10,000 for a permit to mine for a scram mining operation; or
43.28(iv) $5,000 for a permit to mine for a peat operation;
a bond which may be required pursuant to section
a copy of the applicant's advertisement of the ownership, location, and
boundaries of the proposed mining area and reclamation or restoration operations, which
advertisement shall be published in a legal newspaper in the locality of the proposed site
at least once a week for four successive weeks before the application is filed, except that if
the application is for a permit to conduct lean ore stockpile removal the advertisement
need be published only once.
Sec. 28. Minnesota Statutes 2008, section 93.481, subdivision 3, is amended to read:
Subd. 3. Term of permit; amendment.
A permit issued by the commissioner
pursuant to this section shall be granted for the term determined necessary by the
commissioner for the completion of the proposed mining operation, including reclamation
or restoration. A permit may be amended upon written application to the commissioner.
44.6A permit amendment application fee must be submitted with the written application. The
44.7permit amendment application fee is ten percent of the amount provided for in subdivision
44.81, clause (3), for an application for the applicable permit to mine.
If the commissioner
determines that the proposed amendment constitutes a substantial change to the permit,
the person applying for the amendment shall publish notice in the same manner as for a
new permit, and a hearing shall be held if written objections are received in the same
manner as for a new permit. An amendment may be granted by the commissioner if the
commissioner determines that lawful requirements have been met.
Sec. 29. Minnesota Statutes 2008, section 93.481, subdivision 5, is amended to read:
Subd. 5. Assignment.
A permit may not be assigned or otherwise transferred
without the written approval of the commissioner. A permit assignment application fee
44.17must be submitted with the written application. The permit assignment application fee
44.18is ten percent of the amount provided for in subdivision 1, clause (3), for an application
44.19for the applicable permit to mine.
Sec. 30. Minnesota Statutes 2008, section 93.481, subdivision 7, is amended to read:
Subd. 7. Mining administration account.
The mining administration account is
established as an account in the natural resources fund.
Ferrous mining administrative
Fees charged to owners, operators, or managers of mines under this section and section
shall be credited to the account and may be appropriated to the commissioner
to cover the costs of providing and monitoring permits to mine
ferrous metals under
44.26 this section
. Earnings accruing from investment of the account remain with the account
44.28EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 31. [93.482] RECLAMATION FEES.
44.30 Subdivision 1. Annual permit to mine fee. (a) The commissioner shall charge
44.31every person holding a permit to mine an annual permit fee. The fee is payable to the
44.32commissioner by June 30 of each year, beginning in 2009.
45.1(b) The annual permit to mine fee for a taconite mining operation is $60,000 if the
45.2operation had production within the calendar year immediately preceding the year in
45.3which payment is due and $30,000 if there was no production within the immediately
45.4preceding calendar year.
45.5(c) The annual permit to mine fee for a nonferrous metallic minerals mining
45.6operation is $75,000 if the operation had production within the calendar year immediately
45.7preceding the year in which payment is due and $37,500 if there was no production within
45.8the immediately preceding calendar year.
45.9(d) The annual permit to mine fee for a scram mining operation is $5,000 if the
45.10operation had production within the calendar year immediately preceding the year in
45.11which payment is due and $2,500 if there was no production within the immediately
45.12preceding calendar year.
45.13(e) The annual permit to mine fee for a peat mining operation is $1,000 if the
45.14operation had production within the calendar year immediately preceding the year in
45.15which payment is due and $500 if there was no production within the immediately
45.16preceding calendar year.
45.17 Subd. 2. Supplemental application fee for taconite and nonferrous metallic
45.18minerals mining operation. (a) In addition to the application fee specified in section
45.1993.481, the commissioner shall assess a person submitting an application for a permit to
45.20mine for a taconite or a nonferrous metallic minerals mining operation the reasonable
45.21costs for reviewing the application and preparing the permit to mine. For nonferrous
45.22metallic minerals mining, the commissioner shall assess reasonable costs for monitoring
45.23construction of the mining facilities.
45.24(b) The commissioner must give the applicant an estimate of the supplemental
45.25application fee under this subdivision. The estimate must include a brief description
45.26of the tasks to be performed and the estimated cost of each task. The application fee
45.27under section 93.481 must be subtracted from the estimate of costs to determine the
45.28supplemental application fee.
45.29(c) The applicant and the commissioner shall enter into a written agreement to cover
45.30the estimated costs to be incurred by the commissioner.
45.31(d) The commissioner shall not issue the permit to mine until the applicant has paid
45.32all fees in full. Upon completion of construction of a nonferrous metallic minerals facility,
45.33the commissioner shall refund the unobligated balance of the monitoring fee revenue.
45.34 Subd. 3. Reclamation fee on taconite iron ore produced. (a) For the purposes
45.35of this subdivision:
46.1(1) "fee owner" means a person having any right, title, or interest in any minerals
46.2or mineral rights in this state from which taconite iron ore is mined. Fee owner does not
46.3include the United States, the state, or the University of Minnesota;
46.4(2) "taconite iron ore" means a ferruginous chert or ferruginous slate in the form of
46.5compact siliceous rock, in which the iron oxide is so finely disseminated that substantially
46.6all of the iron bearing particles of merchantable grade are smaller than 20 mesh; and
46.7(3) "ton" means a gross ton of 2,240 pounds.
46.8(b) A fee owner is subject to a reclamation fee of $.0075 per ton of taconite iron ore
46.9mined from the minerals or mineral rights owned by the fee owner.
46.10(c) The fee owner shall make payment to the commissioner no later than January
46.1120 of each calendar year for ore removed during the previous calendar year. The fee
46.12owner is liable for the payment of the reclamation fee. The fee owner may enter into an
46.13agreement with the mining operator to make the payment on their behalf from royalties
46.14due and owing or other financial terms.
46.15EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 32. Minnesota Statutes 2008, section 94.342, subdivision 3, is amended to read:
Subd. 3. Additional restrictions on riparian land. (a)
Land bordering on or
adjacent to any meandered or other public waters and withdrawn from sale by law is
riparian land. Riparian land may not be given in exchange unless:
expressly authorized by the legislature
through the same exchange the state acquires land on the same or other public
waters in the same general vicinity affording at least equal opportunity for access to the
waters and other riparian use by the public;
46.24(3) Class A land is being exchanged for Class A land; or
provided, that any (4) the
with is an agency of
the United States
46.26 agency thereof may be made free from this limitation upon condition that and
land given in exchange bordering on public waters shall be subject to reservations by
the state for public travel along the shores as provided by section
, unless waived
as provided in
this subdivision paragraph (b)
, and that there shall be reserved by the
additional rights of public use upon suitable portions of
state land as
the commissioner of natural resources, with the approval of the Land Exchange Board,
may deem necessary or desirable for camping, hunting, fishing, access to the water, and
other public uses.
In regard to (b) For
Class B or riparian land that is contained within that portion
of the Superior National Forest that is designated as the Boundary Waters Canoe Area
Wilderness, the condition that state land given in exchange bordering on public waters
must be subject to the public travel reservations provided in section
, may be waived
by the Land Exchange Board upon the recommendation of the commissioner of natural
resources and, if the land is Class B land, the additional recommendation of the county
board in which the land is located.
Sec. 33. Minnesota Statutes 2008, section 97A.075, subdivision 1, is amended to read:
Subdivision 1. Deer, bear, and lifetime licenses.
(a) For purposes of this
subdivision, "deer license" means a license issued under section
97A.475, subdivisions 2,
(5), (6), (7), (11), (13), (15), (16), and (17), and 3, clauses (2), (3), (4), (9), (11),
(12), and (13), and licenses issued under section
97B.301, subdivision 4
(b) $2 from each annual deer license and $2 annually from the lifetime fish and
wildlife trust fund, established in section
, for each license issued under section
47.1397A.473, subdivision 4
, shall be credited to the deer management account and shall be
used for deer habitat improvement or deer management programs.
(c) $1 from each annual deer license and each bear license and $1 annually from
the lifetime fish and wildlife trust fund, established in section
, for each license
issued under section
97A.473, subdivision 4
, shall be credited to the deer and bear
management account and shall be used for deer and bear management programs, including
a computerized licensing system.
(d) Fifty cents from each deer license is credited to the emergency deer feeding
and wild cervidae health management account and is appropriated for emergency deer
feeding and wild cervidae health management. Money appropriated for emergency
deer feeding and wild cervidae health management is available until expended.
47.24 the unencumbered balance in the appropriation for emergency deer feeding and wild
47.25 cervidae health management at the end of a fiscal year exceeds $2,500,000 for the first
47.26 time, $750,000 is canceled to the unappropriated balance of the game and fish fund.
The commissioner must inform the legislative chairs of the natural resources finance
committees every two years on how the money for emergency deer feeding and wild
cervidae health management has been spent.
When the unencumbered balance in the appropriation for emergency
deer feeding and wild cervidae health management exceeds $2,500,000 at the end of a
fiscal year, the unencumbered balance in excess of $2,500,000 is canceled and available
for deer and bear management programs and computerized licensing.
Sec. 34. Minnesota Statutes 2008, section 103G.271, subdivision 6, is amended to read:
Subd. 6. Water use permit processing fee.
(a) Except as described in paragraphs
(b) to (f), a water use permit processing fee must be prescribed by the commissioner in
accordance with the schedule of fees in this subdivision for each water use permit in force
at any time during the year. The schedule is as follows, with the stated fee in each clause
applied to the total amount appropriated:
(1) $140 for amounts not exceeding 50,000,000 gallons per year;
(2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
than 100,000,000 gallons per year;
(3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
than 150,000,000 gallons per year;
(4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
less than 200,000,000 gallons per year;
(5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
than 250,000,000 gallons per year;
(6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
less than 300,000,000 gallons per year;
(7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
than 350,000,000 gallons per year;
(8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
less than 400,000,000 gallons per year;
(9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
than 450,000,000 gallons per year;
(10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
less than 500,000,000 gallons per year; and
(11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
(b) For once-through cooling systems, a water use processing fee must be prescribed
by the commissioner in accordance with the following schedule of fees for each water use
permit in force at any time during the year:
(1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
(2) for all other users, $420 per 1,000,000 gallons.
(c) The fee is payable based on the amount of water appropriated during the year
and, except as provided in paragraph (f), the minimum fee is $100.
(d) For water use processing fees other than once-through cooling systems:
(1) the fee for a city of the first class may not exceed $250,000 per year;
(2) the fee for other entities for any permitted use may not exceed:
per year for an entity holding three or fewer permits;
per year for an entity holding four or five permits;
per year for an entity holding more than five permits;
(3) the fee for agricultural irrigation may not exceed $750 per year;
(4) the fee for a municipality that furnishes electric service and cogenerates steam
for home heating may not exceed $10,000 for its permit for water use related to the
cogeneration of electricity and steam; and
(5) no fee is required for a project involving the appropriation of surface water to
prevent flood damage or to remove flood waters during a period of flooding, as determined
by the commissioner.
(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
percent per month calculated from the original due date must be imposed on the unpaid
balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
may not be imposed on an agency, as defined in section
16B.01, subdivision 2
, or federal
governmental agency holding a water appropriation permit.
(f) The minimum water use processing fee for a permit issued for irrigation of
agricultural land is $20 for years in which:
(1) there is no appropriation of water under the permit; or
(2) the permit is suspended for more than seven consecutive days between May 1
and October 1.
(g) A surcharge of
per million gallons in addition to the fee prescribed in
paragraph (a) shall be applied to the volume of water used in each of the months of June,
July, and August that exceeds the volume of water used in January for municipal water
use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
with more than one permit shall be determined based on the total appropriations from all
permits that supply a common distribution system.
Sec. 35. Minnesota Statutes 2008, section 103G.301, subdivision 2, is amended to read:
Subd. 2. Permit application fees.
(a) A permit application fee to defray the costs of
receiving, recording, and processing the application must be paid for a permit authorized
under this chapter and for each request to amend or transfer an existing permit. Fees
49.30established under this subdivision, unless specified in paragraph (c), shall be compliant
49.31with section 16A.1285.
The fee for a project appropriating Proposed projects that require
water in excess
of 100 million gallons per year must be assessed fees
to recover the
of preparing and processing the permit, including costs incurred to evaluate the project
49.35and the costs incurred
for environmental review. Fees collected under this paragraph
must be credited to an account in the natural resources fund and are appropriated to the
for fiscal years 2008 and 2009
(c) The fee to apply for a permit to appropriate water,
other than a permit subject
50.4 to the in addition to any
fee under paragraph (b); a permit to construct or repair a dam
that is subject to dam safety inspection; or a state general permit
or to apply for the state
50.6 water bank program
is $150. The application fee for a permit to work in public waters or
to divert waters for mining must be at least $150, but not more than $1,000
, according to a
50.8 schedule of fees adopted under section
Sec. 36. Minnesota Statutes 2008, section 103G.301, subdivision 3, is amended to read:
Subd. 3. Field inspection fees.
(a) In addition to the application fee, the
commissioner may charge a field inspection fee for:
(1) projects requiring a mandatory environmental assessment under chapter 116D;
(2) projects undertaken without a required permit or application; and
(3) projects undertaken in excess of limitations established in an issued permit.
(b) The fee must be at least $100 but not more than actual inspection costs.
(c) The fee is to cover actual costs related to a permit applied for under this chapter
or for a project undertaken without proper authorization.
(d) The commissioner shall establish a schedule of field inspection fees under section
. The schedule must include actual costs related to field inspection, including
investigations of the area affected by the proposed activity, analysis of the proposed
activity, consultant services, and subsequent monitoring, if any, of the activity authorized
by the permit. Fees collected under this subdivision must be credited to an account in the
50.23natural resources fund and are appropriated to the commissioner.
Sec. 37. Minnesota Statutes 2008, section 115.03, subdivision 5c, is amended to read:
Subd. 5c. Regulation of storm water discharges.
(a) The agency may issue a
general permit to any category or subcategory of point source storm water discharges
that it deems administratively reasonable and efficient without making any findings
under agency rules. Nothing in this subdivision precludes the agency from requiring an
individual permit for a point source storm water discharge if the agency finds that it is
appropriate under applicable legal or regulatory standards.
(b) Pursuant to this paragraph, the legislature authorizes the agency to adopt and
enforce rules regulating point source storm water discharges. No further legislative
approval is required under any other legal or statutory provision whether enacted before or
after May 29, 2003.
51.1(c) The agency shall develop performance standards, design standards, or other
51.2tools to enable and promote the implementation of low-impact development and other
51.3storm water management techniques. For the purposes of this section, "low-impact
51.4development" means an approach to storm water management that mimics a site's natural
51.5hydrology as the landscape is developed. Using the low-impact development approach,
51.6storm water is managed on-site and the rate and volume of predevelopment storm water
51.7reaching receiving waters is unchanged. The calculation of predevelopment hydrology is
51.8based on native soil and vegetation.
Sec. 38. Minnesota Statutes 2008, section 115.073, is amended to read:
51.10115.073 ENFORCEMENT FUNDING.
Except as provided in section
, all money recovered by the state under this
chapter and chapters 115A and 116, including civil penalties and money paid under an
agreement, stipulation, or settlement, excluding money paid for past due fees or taxes,
up to the amount appropriated for implementation of Laws 1991, chapter 347,
deposited in the state treasury and credited to the environmental fund.
Sec. 39. Minnesota Statutes 2008, section 115.56, subdivision 4, is amended to read:
Subd. 4. License fee. (a) Until the agency adopts a final rule establishing fees for
51.18licenses under subdivision 2,
the fee for a license required under subdivision 2 is
per year and the annual license fee for a business with multiple licenses shall not
fees charged by the agency for licenses under subdivision
must be credited to the environmental fund and is exempt from section
Sec. 40. Minnesota Statutes 2008, section 115.77, subdivision 1, is amended to read:
Subdivision 1. Fees
following fees are established for the
51.25 purposes indicated: agency shall collect fees in amounts necessary, but no greater than the
51.26amounts necessary, to cover the reasonable costs of reviewing applications and issuing
51.28 (1) application for examination, $32;
51.29 (2) issuance of certificate, $23;
51.30 (3) reexamination resulting from failure to pass an examination, $32;
51.31 (4) renewal of certificate, $23;
51.32 (5) replacement certificate, $10; and
51.33 (6) reinstatement or reciprocity certificate, $40.
Sec. 41. Minnesota Statutes 2008, section 115A.1314, subdivision 2, is amended to
Subd. 2. Creation of account; appropriations.
(a) The electronic waste account
is established in the environmental fund. The commissioner of revenue must deposit
receipts from the fee established in subdivision 1 in the account. Any interest earned on
the account must be credited to the account. Money from other sources may be credited to
the account. Beginning in the second program year and continuing each program year
thereafter, as of the last day of each program year, the commissioner
determine the total amount of the variable fees that were collected.
By July 15, 2009, and
52.10 each July 15 thereafter, the commissioner of the Pollution Control Agency shall inform
52.11 the commissioner of revenue of the amount necessary to operate the program in the new
52.12 program year.
To the extent that the total fees collected by the commissioner
in connection with this section exceed the amount the commissioner
of the Pollution
52.14 Control Agency
determines necessary to operate the program for the new program
year, the commissioner
shall refund on a pro rata basis, to all manufacturers
who paid any fees for the previous program year, the amount of fees collected by the
in excess of the amount necessary to operate the program for the
new program year. No individual refund is required of amounts of $100 or less for a fiscal
year. Manufacturers who report collections less than 50 percent of their obligation for the
previous program year are not eligible for a refund.
Amounts not refunded pursuant to this
52.21 paragraph shall remain in the account. The commissioner of revenue shall issue refunds
52.22 by August 10. In lieu of issuing a refund, the commissioner of revenue may grant credit
52.23 against a manufacturer's variable fee due by September 1.
(b) Until June 30,
, money in the account is annually appropriated to the
Pollution Control Agency:
(1) for the purpose of implementing sections
transfer to the commissioner of revenue to carry out the department's duties under
115A.1320, subdivision 2
, and transfer to the commissioner of administration for
responsibilities under section
(2) to the commissioner of the Pollution Control Agency to be distributed on a
competitive basis through contracts with counties outside the 11-county metropolitan
area, as defined in paragraph (c), and with private entities that collect for recycling
covered electronic devices in counties outside the 11-county metropolitan area, where the
collection and recycling is consistent with the respective county's solid waste plan, for
the purpose of carrying out the activities under sections
awarding competitive grants under this clause, the commissioner must give preference to
counties and private entities that are working cooperatively with manufacturers to help
them meet their recycling obligations under section
115A.1318, subdivision 1
(c) The 11-county metropolitan area consists of the counties of Anoka, Carver,
Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright.
Sec. 42. Minnesota Statutes 2008, section 115A.557, subdivision 1, is amended to read:
Subdivision 1. Distribution; formula.
Any funds appropriated to the commissioner
for the purpose of distribution to counties under this section must be distributed each fiscal
year by the commissioner based on population, except a county may not receive less than
$55,000 in a fiscal year. If the amount available for distribution under this section is less
than the amount available in fiscal year 2001, the minimum county payment under
this section is reduced or increased
proportionately. For purposes of this subdivision,
"population" has the definition given in section
477A.011, subdivision 3
. A county that
participates in a multicounty district that manages solid waste and that has responsibility
for recycling programs as authorized in section
, must pass through to the
districts funds received by the county in excess of the minimum county payment under
this section in proportion to the population of the county served by that district.
Sec. 43. [115A.559] COMPOSTING COMPETITIVE GRANT PROGRAM.
53.18 Subdivision 1. Grant program established. The commissioner shall make
53.19competitive grants to political subdivisions to increase composting, reduce the amount of
53.20organic wastes entering disposal facilities, and reduce the costs associated with hauling
53.21waste by locating the composting site as close as possible to the site where the waste is
53.22generated. To achieve the purpose of the grant program, the commissioner shall actively
53.23recruit potential applicants beyond traditional solid waste professionals and organizations,
53.24such as soil and water conservation districts and schools. Each grant must include an
53.25educational component on the methods and benefits of composting.
53.26 Subd. 2. Application. (a) The commissioner must develop forms and procedures
53.27for soliciting and reviewing applications for grants under this section.
53.28(b) The determination of whether to make a grant under this section is within the
53.29discretion of the commissioner, subject to subdivision 4. The commissioner's decisions
53.30are not subject to judicial review, except for abuse of discretion.
53.31 Subd. 3. Priorities; eligible projects. (a) If applications for grants exceed the
53.32available appropriations, grants must be made for projects that, in the commissioner's
53.33judgment, provide the highest return in public benefits.
53.34(b) To be eligible to receive a grant, a project must:
54.1(1) be locally administered;
54.2(2) have measurable outcomes; and
54.3(3) include at least one of the following elements:
54.4(i) the development of erosion control methods that use compost;
54.5(ii) activities to encourage on-site composting by homeowners; or
54.6(iii) activities to encourage composting by schools or public institutions.
54.7 Subd. 4. Cancellation of grant. If a grant is awarded under this section and
54.8funds are not encumbered for the grant within four years after the award date, the grant
54.9must be canceled.
Sec. 44. Minnesota Statutes 2008, section 115A.931, is amended to read:
54.11115A.931 YARD WASTE PROHIBITION.
(a) Except as authorized by the agency, in the metropolitan area after January 1,
1990, and outside the metropolitan area after January 1, 1992, a person may not place
(1) in mixed municipal solid waste;
(2) in a disposal facility; or
(3) in a resource recovery facility except for the purposes of reuse, composting, or
115A.03, subd 38
54.20(c) On or after January 1, 2010, a person may not place yard waste or
54.21source-separated compostable materials generated in a metropolitan county in a plastic bag
54.22delivered to a transfer station or compost facility unless the bag meets all the specifications
54.23in ASTM Standard Specification for Compostable Plastics (D6400). For purposes of this
54.24paragraph, "metropolitan county" has the meaning given in section 473.121, subdivision
54.254, and "ASTM" has the meaning given in section 296A.01, subdivision 6.
54.26(d) A person who immediately empties a plastic bag containing yard waste or
54.27source-separated compostable materials delivered to a transfer station or compost facility
54.28and removes the plastic bag from the transfer station or compost facility is exempt from
54.30(e) Residents of a city of the first class that currently contracts for the collection of
54.31yard waste are exempt from paragraph (c) until January 1, 2013, if, by that date, the
54.32city implements a citywide source-separated compostable materials collection program
54.33using durable carts.
Sec. 45. Minnesota Statutes 2008, section 116.0711, is amended to read:
PERMIT CONDITIONS PERMITS; CONDITIONS;
55.4 Subdivision 1. Conditions.
(a) The agency shall not require feedlot permittees to
maintain records as to rainfall or snowfall as a condition of a general feedlot permit if the
owner directs the commissioner or agent of the commissioner to appropriate data on
precipitation maintained by a government agency or educational institution.
(b) A feedlot permittee shall give notice to the agency when the permittee proposes
to transfer ownership or control of the feedlot to a new party. The commissioner shall
not unreasonably withhold or unreasonably delay approval of any transfer request. This
request shall be handled in accordance with sections
(c) The Environmental Quality Board shall review and recommend modifications
55.13 to environmental review rules related to phased actions and animal agriculture facilities.
55.14 The Environmental Quality Board shall report recommendations to the chairs of the
55.15 committees of the senate and house of representatives with jurisdiction over agriculture
55.16 and the environment by January 15, 2002.
55.17 (d) If the owner of an animal feedlot requests an extension for an application for a
55.18 national pollutant discharge elimination permit or state disposal system permit by June 1,
55.19 2001, then the agency shall grant an extension for the application to September 1, 2001.
55.20 (e) (c)
An animal feedlot in shoreland that has been unused may resume operation
after obtaining a permit from the agency or county, regardless of the number of years that
the feedlot was unused.
55.23 Subd. 2. County feedlot program grants; three-part formula. (a) Money
55.24appropriated to the commissioner to make grants to delegated counties to administer
55.25the county feedlot program must be distributed according to the three-part formula in
55.26paragraphs (b) to (d).
55.27 (b) Number of feedlots in the county: 60 percent of the total appropriation must be
55.28distributed according to the number of feedlots that are required to be registered in the
55.29county. Grants awarded under this paragraph must be matched with a combination of local
55.30cash and in-kind contributions.
55.31 (c) Minimum program requirements: 25 percent of the total appropriation must be
55.32distributed based on the county (1) conducting an annual number of inspections at feedlots
55.33that is equal to or greater than seven percent of the total number of registered feedlots that
55.34are required to be registered in the county; and (2) meeting noninspection minimum
55.35program requirements as identified in the county feedlot workplan form. Counties that do
55.36not meet the inspection requirement must not receive 50 percent of the eligible funding
56.1under this paragraph. Counties must receive funding for noninspection requirements under
56.2this paragraph according to a scoring system checklist administered by the commissioner.
56.3The commissioner, in consultation with the Minnesota Association of County Feedlot
56.4Officers executive team, shall make a final decision regarding any appeal by a county
56.5regarding the terms and conditions of this paragraph.
56.6 (d) Performance credits: 15 percent of the total appropriation must be distributed
56.7according to work that has been done by the counties during the fiscal year. The amount
56.8must be determined by the number of performance credits a county accumulates during
56.9the year based on a performance credit matrix jointly agreed upon by the commissioner
56.10in consultation with the Minnesota Association of County Feedlot Officers executive
56.11team. To receive an award under this paragraph, the county must meet the requirements
56.12of paragraph (c), clause (1), and achieve 90 percent of the requirements according to
56.13paragraph (c), clause (2), of the formula. The rate of reimbursement per performance
56.14credit item must not exceed $200.
56.15 Subd. 3. Minimum grant; prorated grant; transfers. Delegated counties are
56.16eligible for a minimum grant of $7,500. To receive the full $7,500 amount, a county must
56.17meet the requirements under subdivision 2, paragraph (c). Nondelegated counties that
56.18apply for delegation shall receive a grant prorated according to the number of full quarters
56.19remaining in the program year from the date of commissioner approval of the delegation.
56.20Awards to any newly delegated counties must be made out of the appropriation reserved
56.21under subdivision 2, paragraph (d). The commissioner, in consultation with the Minnesota
56.22Association of County Feedlot Officers executive team, may decide to use money reserved
56.23under subdivision 2, paragraph (d), in an amount not to exceed five percent of the total
56.24annual appropriation for initiatives to enhance existing delegated county feedlot programs,
56.25information and education, or technical assistance efforts to reduce feedlot-related
56.26pollution hazards. Any amount remaining after distribution under subdivision 2,
56.27paragraphs (b) and (c), must be transferred for purposes of subdivision 2, paragraph (d).
Sec. 46. Minnesota Statutes 2008, section 116.41, subdivision 2, is amended to read:
Subd. 2. Training and certification programs.
The agency shall develop standards
of competence for persons operating and inspecting various classes of disposal facilities.
The agency shall conduct training programs for persons operating facilities for the
disposal of waste and for inspectors of such facilities, and
charge such fees as
are necessary to cover the actual costs of the training programs. All fees received shall be
paid into the state treasury and credited to the Pollution Control Agency training account
and are appropriated to the agency to pay expenses relating to the training of disposal
The agency shall require operators and inspectors of such facilities to obtain from
the agency a certificate of competence. The agency shall conduct examinations to test the
competence of applicants for certification, and shall require that certificates be renewed at
reasonable intervals. The agency may charge such fees as are necessary to cover the actual
costs of receiving and processing applications, conducting examinations, and issuing
and renewing certificates. Certificates shall not be required for a private individual for
land-spreading and associated interim and temporary storage of sewage sludge on property
owned or farmed by that individual.
Sec. 47. [116.9401] DEFINITIONS.
57.12(a) For the purposes of sections 116.9401 to 116.9407, the following terms have
57.13the meanings given them.
57.14(b) "Agency" means the Pollution Control Agency.
57.15(c) "Alternative" means a substitute process, product, material, chemical, strategy,
57.16or combination of these that is technically feasible and serves a functionally equivalent
57.17purpose to a chemical in a children's product.
57.18(d) "Chemical" means a substance with a distinct molecular composition or a group
57.19of structurally related substances and includes the breakdown products of the substance or
57.20substances that form through decomposition, degradation, or metabolism.
57.21(e) "Chemical of high concern" means a chemical identified on the basis of credible
57.22scientific evidence by a state, federal, or international agency as being known or suspected
57.23with a high degree of probability to:
57.24(1) harm the normal development of a fetus or child or cause other developmental
57.26(2) cause cancer, genetic damage, or reproductive harm;
57.27(3) disrupt the endocrine or hormone system;
57.28(4) damage the nervous system, immune system, or organs, or cause other systemic
57.30(5) be persistent, bioaccumulative, and toxic; or
57.31(6) be very persistent and very bioaccumulative.
57.32(f) "Child" means a person under 12 years of age.
57.33(g) "Children's product" means a consumer product intended for use by children,
57.34such as baby products, toys, car seats, personal care products, and clothing.
57.35(h) "Commissioner" means the commissioner of the Pollution Control Agency.
58.1(i) "Department" means the Department of Health.
58.2(j) "Distributor" means a person who sells consumer products to retail establishments
58.3on a wholesale basis.
58.4(k) "Green chemistry" means an approach to designing and manufacturing products
58.5that minimizes the use and generation of toxic substances.
58.6(l) "Manufacturer" means any person who manufactures a final consumer product
58.7sold at retail or whose brand name is affixed to the consumer product. In the case of a
58.8consumer product imported into the United States, manufacturer includes the importer
58.9or domestic distributor of the consumer product if the person who manufactured or
58.10assembled the consumer product or whose brand name is affixed to the consumer product
58.11does not have a presence in the United States.
58.12(m) "Priority chemical" means a chemical identified by the Department of Health as
58.13a chemical of high concern that meets the criteria in section 116.9403.
58.14(n) "Safer alternative" means an alternative whose potential to harm human health is
58.15less than that of the use of a priority chemical that it could replace.
58.16EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 48. [116.9402] IDENTIFICATION OF CHEMICALS OF HIGH CONCERN.
58.18(a) By July 1, 2010, the department shall, after consultation with the agency,
58.19generate a list of chemicals of high concern.
58.20(b) The department must periodically review and revise the list of chemicals of high
58.21concern at least every three years. The department may add chemicals to the list if the
58.22chemical meets one or more of the criteria in section 116.9401, paragraph (e).
58.23(c) The department shall consider chemicals listed as a suspected carcinogen,
58.24reproductive or developmental toxicant, or as being persistent, bioaccumulative, and
58.25toxic, or very persistent and very bioaccumulative by a state, federal, or international
58.26agency. These agencies may include, but are not limited to, the California Environmental
58.27Protection Agency, the Washington Department of Ecology, the United States Department
58.28of Health, the United States Environmental Protection Agency, the United Nation's World
58.29Health Organization, and European Parliament Annex X1V concerning the Registration,
58.30Evaluation, Authorisation, and Restriction of Chemicals.
58.31(d) The department may consider chemicals listed by another state as harmful to
58.32human health or the environment for possible inclusion in the list of chemicals of high
58.34EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 49. [116.9403] IDENTIFICATION OF PRIORITY CHEMICALS.
59.2(a) The department, after consultation with the agency, may designate a chemical of
59.3high concern as a priority chemical if the department finds that the chemical:
59.4(1) has been identified as a high-production volume chemical by the United States
59.5Environmental Protection Agency; and
59.6(2) meets any of the following criteria:
59.7(i) the chemical has been found through biomonitoring to be present in human blood,
59.8including umbilical cord blood, breast milk, urine, or other bodily tissues or fluids;
59.9(ii) the chemical has been found through sampling and analysis to be present in
59.10household dust, indoor air, drinking water, or elsewhere in the home environment; or
59.11(iii) the chemical has been found through monitoring to be present in fish, wildlife,
59.12or the natural environment.
59.13(b) By February 1, 2011, the department shall publish a list of priority chemicals in
59.14the State Register and on the department's Internet Web site and shall update the published
59.15list whenever a new priority chemical is designated.
59.16EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 50. [116.9405] APPLICABILITY.
59.18The requirements of sections 116.9401 to 116.9407 do not apply to:
59.19(1) chemicals in used children's products;
59.20(2) priority chemicals used in the manufacturing process, but that are not present
59.21in the final product;
59.22(3) priority chemicals used in agricultural production;
59.23(4) motor vehicles as defined in chapter 168 or watercraft as defined in chapter
59.2486B or their component parts, except that the use of priority chemicals in detachable
59.25car seats is not exempt;
59.26(5) priority chemicals generated solely as combustion by-products or that are present
59.27in combustible fuels;
59.29(7) pharmaceutical products or biologics;
59.30(8) a medical device as defined in the federal Food, Drug, and Cosmetic Act, United
59.31States Code, title 21, section 321(h);
59.32(9) food and food or beverage packaging, except a container containing baby food
59.33or infant formula;
59.34(10) consumer electronics products and electronic components, including but not
59.35limited to personal computers; audio and video equipment; calculators; digital displays;
60.1wireless phones; cameras; game consoles; printers; and handheld electronic and electrical
60.2devices used to access interactive software or their associated peripherals; or products that
60.3comply with the provisions of directive 2002/95/EC of the European Union, adopted by
60.4the European Parliament and Council of the European Union now or hereafter in effect; or
60.5 (11) outdoor sport equipment, including snowmobiles as defined in section 84.81,
60.6subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal
60.7watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section
60.886B.005, subdivision 18; and off-highway motorcycles, as defined in section 84.787,
60.9subdivision 7, and all attachments and repair parts for all of this equipment.
60.10EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 51. [116.9406] DONATIONS TO THE STATE.
60.12The commissioner may accept donations, grants, and other funds to carry out the
60.13purposes of sections 116.9401 to 116.9407. All donations, grants, and other funds must
60.14be accepted without preconditions regarding the outcomes of the regulatory oversight
60.15processes set forth in sections 116.9401 to 116.9407.
60.16EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 52. [116.9407] PARTICIPATION IN INTERSTATE CHEMICALS
60.19The state may cooperate with other states in an interstate chemicals clearinghouse
60.20regarding chemicals in consumer products, including the classification of priority
60.21chemicals in commerce; organizing and managing available data on chemicals, including
60.22information on uses, hazards, risks, and environmental and health concerns; and producing
60.23and evaluating information on safer alternatives to specific uses of priority chemicals.
60.24EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 53. Minnesota Statutes 2008, section 116C.834, subdivision 1, is amended to read:
Subdivision 1. Costs.
All costs incurred by the state to carry out its responsibilities
under the compact and under sections
shall be paid by generators
of low-level radioactive waste in this state through fees assessed by the Pollution Control
Agency. Fees may be reasonably assessed on the basis of volume or degree of hazard of
the waste produced by a generator. Costs for which fees may be assessed include, but
are not limited to:
(1) the state contribution required to join the compact;
(2) the expenses of the commission member and state agency costs incurred to
support the work of the Interstate Commission; and
(3) regulatory costs.
The fees are exempt from section
Sec. 54. [216H.021] GREENHOUSE GAS EMISSIONS REPORTING.
61.6 Subdivision 1. Commissioner to establish reporting system and maintain
61.7inventory. In order to measure the progress in meeting the goals of section 216H.02,
61.8subdivision 1, and to provide information to develop strategies to achieve those goals, the
61.9commissioner of the Pollution Control Agency shall establish a system for reporting and
61.10maintaining an inventory of greenhouse gas emissions. The commissioner must consult
61.11with the chief information officer of the Office of Enterprise Technology about system
61.12design and operation. Greenhouse gas emissions include those emissions described in
61.13section 216H.01, subdivision 2.
61.14 Subd. 2. Reporting system design. (a) The commissioner shall, to the extent
61.15practicable, design the system to coordinate with other regional or federal greenhouse gas
61.16emissions-reporting and inventory systems. The coordination may, without limitation,
61.17include the use of similar forms and reports, the sharing of information, and the use of
61.18common facilities, systems, and databases.
61.19(b) The reporting system need not include all sources of emissions nor all amounts
61.20of emissions but, at its outset, must include:
61.21(1) all stationary sources and other facilities required to obtain a permit under Title
61.22V of the federal Clean Air Act, United States Code, title 42, section 7401 et. seq.; and
61.23(2) facilities whose annual carbon dioxide equivalent emissions, as defined in
61.24section 216H.10, subdivision 3, exceed a threshold set by the commissioner at between
61.2510,000 tons and 25,000 tons. The reporting threshold set by the commissioner must
61.26be consistent with the goal of accurately tracking progress in attaining greenhouse
61.27gas emissions-reduction goals and the need for emissions data to assist in developing
61.28greenhouse gas emissions-reduction strategies.
61.29(c) In designing the greenhouse gas emissions reporting system, the commissioner
61.30shall consider requiring the reporting of greenhouse gas emissions from transportation
61.31fuels and greenhouse gas emissions from natural gas combustion that are not included
61.32in reporting from stationary sources. In determining whether to include reporting of
61.33these emissions, the commissioner must consider both the goal of accurately tracking
61.34progress in attaining greenhouse gas emissions-reduction goals and the need for emissions
61.35data to assist in developing greenhouse gas emissions-reduction strategies recommended
62.1by the Minnesota Climate Change Advisory Group. If the commissioner decides that
62.2transportation fuels and portions of natural gas combustion should not be included in
62.3the initial emissions reporting system, the commissioner must report to the chairs and
62.4ranking minority members of the senate and house of representatives committees with
62.5primary jurisdiction over energy and environmental policy the reasons for that decision
62.6and suggestions for steps that should be taken to allow their inclusion in the emissions
62.7reporting system in the future.
62.8(d) A facility reporting greenhouse gas emissions under this section must maintain
62.9the data used to create the reports for a minimum of five years.
62.10 Subd. 3. Rules. The commissioner of the Pollution Control Agency may adopt rules
62.11for the purposes of this section.
62.12EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 55. Minnesota Statutes 2008, section 216H.10, subdivision 7, is amended to read:
Subd. 7. High-GWP greenhouse gas.
"High-GWP greenhouse gas" means
sulfur hexafluoride, nitrous trifluoride, and any
62.16other gas the agency determines by rule to have a high global warming potential
Sec. 56. Minnesota Statutes 2008, section 216H.11, is amended to read:
62.18216H.11 HIGH-GWP GREENHOUSE GAS REPORTING.
Subdivision 1. Gas manufacturers.
, 2008, and
, a manufacturer of a high-GWP greenhouse gas must report to the agency the
total amount of each high-GWP greenhouse gas sold to a purchaser in this state during
the previous year.
Subd. 2. Purchases.
, 2008, and
in this state
metric tons or more carbon dioxide
equivalent of a high-GWP greenhouse gas for use or retail sale in this state
to the agency, on a form prescribed by the commissioner, the total amount of each
high-GWP greenhouse gas purchased for use or retail sale in this state
during the previous
year and the purpose for which the gas was used. The commissioner may adopt rules
62.29under chapter 14 to establish a different reporting threshold or to adopt specific reporting
62.30requirements for commercial or industrial facilities that purchase high-GWP gases for use
62.31or retail sale in this state.
Subd. 3. Acceptance of federal filing.
With the approval of the commissioner, this
section may be satisfied by filing with the commissioner a copy of a greenhouse gas
emissions report filed with a federal agency or a regional or national greenhouse gas
63.2registry, provided that the entity with which the report is filed requires the emissions
63.3data to be verified
Sec. 57. [325E.046] STANDARDS FOR LABELING PLASTIC BAGS.
63.5 Subdivision 1. "Biodegradable" label. A manufacturer, distributor, or wholesaler
63.6may not offer for sale in this state a plastic bag labeled "biodegradable," "degradable,"
63.7or any form of those terms, or in any way imply that the bag will chemically decompose
63.8into innocuous elements in a reasonably short period of time in a landfill, composting, or
63.9other terrestrial environment unless a scientifically based standard for biodegradability is
63.10developed and the bags are certified as meeting the standard.
63.11 Subd. 2. "Compostable" label. A manufacturer, distributor, or wholesaler may not
63.12offer for sale in this state a plastic bag labeled "compostable" unless, at the time of sale,
63.13the bag meets the ASTM Standard Specification for Compostable Plastics (D6400). Each
63.14bag must be labeled to reflect that it meets the standard. For purposes of this subdivision,
63.15"ASTM" has the meaning given in section 296A.01, subdivision 6.
63.16 Subd. 3. Enforcement; civil penalty; injunctive relief. (a) A manufacturer,
63.17distributor, or wholesaler who violates subdivision 1 or 2 is subject to a civil penalty of
63.18$100 for each prepackaged saleable unit offered for sale up to a maximum of $5,000
63.19and may be enjoined from those violations.
63.20(b) The attorney general may bring an action in the name of the state in a court of
63.21competent jurisdiction for recovery of civil penalties or for injunctive relief as provided in
63.22this subdivision. The attorney general may accept an assurance of discontinuance of acts
63.23in violation of subdivision 1 or 2 in the manner provided in section 8.31, subdivision 2b.
63.24EFFECTIVE DATE.This section is effective January 1, 2010.
Sec. 58. [383B.236] WASTE MANAGEMENT BY HENNEPIN COUNTY.
63.26The Hennepin County Board of Commissioners may utilize money received from
63.27the sale of energy and recovered materials and placed in the county solid and hazardous
63.28waste fund under section 473.811, subdivision 9, for program expenses of the Department
63.29of Environmental Services, or the department or office succeeding to the functions of the
63.30Department of Environmental Services. This authority shall be in addition to the authority
63.31given in section 473.811, subdivision 9.
Sec. 59. Laws 2005, chapter 156, article 2, section 45, as amended by Laws 2007,
chapter 148, article 2, section 73, is amended to read:
Sec. 45. SALE OF STATE LAND.
Subdivision 1. State land sales.
The commissioner of administration shall
coordinate with the head of each department or agency having control of state-owned land
to identify and sell at least $6,440,000 of state-owned land. Sales should be completed
according to law and as provided in this section as soon as practicable but no later than
. Notwithstanding Minnesota Statutes, sections
, or any other law to the contrary, the commissioner may offer land
for public sale by only providing notice of lands or an offer of sale of lands to state
departments or agencies, the University of Minnesota, cities, counties, towns, school
districts, or other public entities.
Subd. 2. Anticipated savings.
Notwithstanding Minnesota Statutes, section
64.1294.16, subdivision 3
, or other law to the contrary, the amount of the proceeds from the
sale of land under this section that exceeds the actual expenses of selling the land must
be deposited in the general fund, except as otherwise provided by the commissioner of
finance. Notwithstanding Minnesota Statutes, section
, the commissioner
of finance may establish the timing of payments for land purchased under this section. If
the total of all money deposited into the general fund from the proceeds of the sale of land
under this section is anticipated to be less than $6,440,000, the governor must allocate the
amount of the difference as reductions to general fund operating expenditures for other
executive agencies for the biennium ending June 30,
Subd. 3. Sale of state lands revolving loan fund.
$290,000 is appropriated from
the general fund in fiscal year 2006 to the commissioner of administration for purposes
of paying the actual expenses of selling state-owned lands to achieve the anticipated
savings required in this section. From the gross proceeds of land sales under this section,
the commissioner of administration must cancel the amount of the appropriation in this
subdivision to the general fund by June 30,
64.27EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 60. Laws 2007, chapter 57, article 1, section 4, subdivision 2, is amended to read:
|Subd. 2.Land and Mineral Resources
|Appropriations by Fund
|Game and Fish
$475,000 the first year and $475,000 the
second year are for iron ore cooperative
research. Of this amount, $200,000 each year
is from the minerals management account in
the natural resources fund and $275,000 each
year is from the general fund. $237,500 the
first year and $237,500 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The
match may be cash or in-kind.
$86,000 the first year and $86,000 the
second year are for minerals cooperative
environmental research, of which $43,000
the first year and $43,000 the second year are
available only as matched by $1 of nonstate
money for each $1 of state money. The
match may be cash or in-kind.
$2,800,000 the first year and $2,696,000
the second year are from the minerals
management account in the natural resources
fund for use as provided in Minnesota
, paragraph (c).
$200,000 the first year and $200,000 the
second year are from the state forest suspense
account in the permanent school fund to
accelerate land exchanges, land sales, and
commercial leasing of school trust lands and
to identify, evaluate, and lease construction
aggregate located on school trust lands. This
appropriation is to be used for securing
maximum long-term economic return
from the school trust lands consistent with
fiduciary responsibilities and sound natural
resources conservation and management
$15,000 the first year is for a report
by February 1, 2008, to the house and
senate committees with jurisdiction over
environment and natural resources on
proposed minimum legal and conservation
standards that could be applied to
conservation easements acquired with public
$1,201,000 the first year and $701,000 the
second year are to support the land records
management system. Of this amount,
$326,000 the first year and $326,000 the
second year are from the game and fish fund
and $375,000 the first year and $375,000 the
second year are from the natural resources
fund. The unexpended balances are available
66.17until June 30, 2011.
must report to the legislative chairs on
environmental finance on the outcomes of
the land records management support.
$500,000 the first year and $500,000 the
second year are for land asset management.
This is a onetime appropriation.
Sec. 61. Laws 2008, chapter 363, article 5, section 4, subdivision 7, is amended to read:
|Subd. 7.Fish and Wildlife Management
|Appropriations by Fund
|Game and Fish
$329,000 in 2009 is a reduction for fish and
$46,000 in 2009 is a reduction in the
appropriation for the Minnesota Shooting
Sports Education Center.
$52,000 in 2009 is a reduction for licensing.
$123,000 in 2008 and $246,000 in 2009 are
from the game and fish fund to implement
fish virus surveillance, prepare infrastructure
to handle possible outbreaks, and implement
control procedures for highest risk waters
and fish production operations. This is a
Notwithstanding Minnesota Statutes, section
, paragraph (e), $300,000 in 2009
is from the second year appropriation in
Laws 2007, chapter 57, article 1, section 4,
subdivision 7, from the heritage enhancement
account in the game and fish fund to study,
predesign, and design a
facilities at the Vermillion Highlands Wildlife
67.16 Management Area authorized by Laws 2007,
67.17 chapter 57, article 1, section 168 facility in
67.18the seven-county metropolitan area
. This is
available onetime only and is available until
$300,000 in 2009 is appropriated from the
game and fish fund for only activities that
improve, enhance, or protect fish and wildlife
resources. This is a onetime appropriation.
Sec. 62. SCORE REPORTING.
67.26 Subdivision 1. 2010 requirement. The requirements for the report specified in
67.27Minnesota Statutes, section 115A.557, subdivision 3, paragraph (b), clause (2), that is due
67.28April 1, 2010, shall be abbreviated in scope. The information collected shall be sufficient
67.29for the commissioner of the Pollution Control Agency to determine that counties have
67.30complied with the requirements of this subdivision.
67.31 Subd. 2. Recommendations; report. The commissioner of the Pollution Control
67.32Agency, in consultation with the Association of Minnesota Counties, the Solid Waste
67.33Administrators Association, the Solid Waste Management Coordinating Board, and other
67.34interested parties shall make recommendations to amend the reporting requirements under
67.35Minnesota Statutes, section 115A.557, subdivision 3, in ways that reduce the resources
68.1counties employ to collect the data reported, while ensuring that estimation methods used
68.2to report data are consistent across counties and that the data reported are accurate and
68.3useful as a guide to solid waste management policy makers. The commissioner shall also
68.4make recommendations regarding the feasibility and desirability of multicounty reporting
68.5of the data. The commissioner's recommendations must be presented in a report submitted
68.6to the chairs and ranking minority members of the senate and house of representatives
68.7committees and divisions with primary jurisdiction over solid waste policy and finance
68.8no later than January 15, 2010.
Sec. 63. PRIORITY CHEMICAL REPORTS.
68.10(a) By January 15, 2010, the commissioner of health, in consultation with the
68.11Pollution Control Agency, shall report to the chairs and ranking minority members
68.12of the senate and house of representatives committees with primary jurisdiction over
68.13environment and natural resources policy, commerce, and public health regarding the
68.14progress on implementing new Minnesota Statutes, sections 116.9401 to 116.9407, and
68.15information on the progress of federal, international, and other states in identifying,
68.16prioritizing, evaluating, regulating, and reducing the use of chemicals of high concern
68.17and priority chemicals in children's products and in determining the availability of safer
68.18alternatives for specific applications and promoting the use of those safer alternatives.
68.19(b) By December 15, 2010, the commissioner of the Pollution Control Agency
68.20shall report to the chairs and ranking minority members of the senate and house of
68.21representatives committees with primary jurisdiction over environment and natural
68.22resources policy, commerce, and public health assessing mechanisms used by other states,
68.23the federal government, and other countries to reduce and phase out the use of priority
68.24chemicals in children's products and promote the use of safer alternatives. The report shall
68.25include potential funding mechanisms to implement this process. The report must include
68.26recommendations to promote and provide incentives for product design that use principles
68.27of green chemistry and life-cycle analysis. In developing the report, the agency may
68.28consult with stakeholders, including representatives of state agencies, manufacturers of
68.29children's products, chemical manufacturers, public health experts, independent scientists,
68.30and public interest groups. The report must include information on any stakeholder
68.31process consulted with or used in developing the report.
68.32(c) By January 15, 2010, the agency shall provide an interim report about the
68.33progress in developing the report required under paragraph (b), including information
68.34on the status of any stakeholder process.
68.35EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 64. REORGANIZATION PROHIBITION; ENVIRONMENTAL QUALITY
69.3Notwithstanding Minnesota Statutes, section 16B.37, unless expressly provided by
69.4law, the commissioner of administration shall not reorganize the Environmental Quality
69.5Board within another agency, prior to July 1, 2011.
Sec. 65. ENVIRONMENTAL REVIEW STREAMLINING REPORT.
69.7By February 15, 2010, the commissioner of the Pollution Control Agency, in
69.8consultation with staff from the Environmental Quality Board, shall submit a report
69.9to the environment and natural resources policy and finance committees of the house
69.10and senate on options to streamline the environmental review process under Minnesota
69.11Statutes, chapter 116D. In preparing the report, the commissioner shall consult with state
69.12agencies, local government units, and business, agriculture, and environmental advocacy
69.13organizations with an interest in the environmental review process. The report shall
69.14include options that will reduce the time required to complete environmental review and
69.15the cost of the process to responsible governmental units and project proposers while
69.16maintaining or improving air, land, and water quality standards.
Sec. 66. COMPENSATION OF GOVERNOR'S STAFF.
69.18For fiscal years 2010 and 2011, the Department of Natural Resources, the Pollution
69.19Control Agency, and the Board of Water and Soil Resources may not use funds
69.20appropriated in this article or funds from any statutory or open appropriation to pay
69.21directly or indirectly for the compensation costs of staff in the office of the governor.
Sec. 67. FISH CONSUMPTION ADVISORIES.
69.23 The commissioner of natural resources, in cooperation with the commissioner of
69.24health, shall ensure that fish consumption advisories are displayed in at least four different
69.25languages, one of which must be English, to fairly represent the population of the state.
Sec. 68. CARBON SEQUESTRATION FORESTRY REPORT.
69.27The Minnesota Forest Resources Council shall review the Minnesota Climate
69.28Change Advisory Group's recommendation to increase carbon sequestration in forests by
69.29planting 1,000,000 acres of trees and shall submit a report to the chairs of the house of
69.30representatives and senate committees with jurisdiction over energy and energy finance,
69.31environment and natural resources, and environment and natural resources finance; the
69.32governor; and the commissioner of natural resources by January 15, 2010. The report
70.1shall, at a minimum, include recommendations on implementation and analysis of the
70.2number and ownership of acres available for tree planting, the types of native species best
70.3suited for planting, the availability of planting stock, and potential costs.
Sec. 69. REPEALER.
70.5Laws 2008, chapter 363, article 5, section 30, is repealed.
70.9 The amounts shown in this section summarize direct appropriations, by fund, made
70.10in this article.
|Section 1. SUMMARY OF APPROPRIATIONS.
|Petroleum Tank Cleanup
70.20 The sums shown in the columns marked "Appropriations" are appropriated to the
70.21agencies and for the purposes specified in this article. The appropriations are from the
70.22general fund, or another named fund, and are available for the fiscal years indicated
70.23for each purpose. The figures "2010" and "2011" used in this article mean that the
70.24appropriations listed under them are available for the fiscal year ending June 30, 2010, or
70.25June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
70.26year 2011. "The biennium" is fiscal years 2010 and 2011. Appropriations for the fiscal
70.27year ending June 30, 2009, are effective the day following final enactment.
|Sec. 2. ENERGY FINANCE APPROPRIATIONS.
||Available for the Year
||Ending June 30
|Sec. 3. DEPARTMENT OF COMMERCE
|Subdivision 1.Total Appropriation
71.10The amounts that may be spent for each
71.11purpose are specified in the following
|Appropriations by Fund
71.14$1,000 each year is for consumer small loan
71.15regulation modifications in article 7. This
71.16appropriation is added to the department's
|Subd. 2.Financial Institutions
71.20This appropriation is from the petroleum
71.21tank release cleanup fund. The base funding
71.22for this program ends June 30, 2012.
|Subd. 3.Petroleum Tank Release Cleanup
|Subd. 4.Administrative Services
|Subd. 6.Market Assurance
|Appropriations by Fund
|Subd. 7.Office of Energy Security
71.34$250,000 the first year is for E-85 grants
71.35under Laws 2007, chapter 57, article 2,
72.1section 3, subdivision 6. Grants for on-site
72.2blending pumps must include up to 75
72.3percent of the total cost of the project, up to
72.4a maximum of $15,000 per pump. This is a
72.6The utility subject to Minnesota Statutes,
72.7section 116C.779, shall transfer $1,350,000
72.8in fiscal year 2010 and $625,000 in fiscal
72.9year 2011 only to the Department of
72.10Commerce on a schedule determined by the
72.11commissioner of commerce. These funds
72.12must be deposited in the special revenue fund
72.13and are appropriated to the commissioner
72.14for grants to promote renewable energy
72.15projects and community energy outreach and
72.16assistance. Of the amounts identified:
72.17(1) $300,000 the first year is for a grant
72.18to the Board of Regents of the University
72.19of Minnesota for the Natural Resources
72.20and Research Institute at the University of
72.21Minnesota, Duluth, to develop statewide
72.22heat flow maps in order to determine
72.23the geothermal potential of the state of
72.25(2) $625,000 each year is for continued
72.26funding of community energy technical
72.27assistance and outreach on renewable
72.28energy and energy efficiency, as described
72.29in Minnesota Statutes, section 216C.385.
72.30Of this amount, $125,000 each year is for
72.31technical assistance in the metropolitan area;
72.32(3) $25,000 the first year is for a grant to
72.33a nonprofit organization with experience
72.34in creating innovative partnerships through
72.35collaborative action with diverse interests,
73.1including businesses, government agencies,
73.2environmental organizations, and others,
73.3to manage a stakeholder process on green
73.4jobs that would integrate the work of the
73.5state Green Jobs Task Force and the mayors'
73.6initiative on green manufacturing; and
73.7(4) $400,000 the first year is to provide
73.8financial rebates for new solar electricity
|Appropriations by Fund
73.12$300,000 the first year and $300,000
73.13the second year are for transfer to the
73.14commissioner of human services to
73.15supplement the ongoing operational expenses
73.16of the Minnesota Commission Serving
73.17Deaf and Hard-of-Hearing People. This
73.18appropriation is from the telecommunication
73.19access Minnesota fund, and is added to
73.20the commission's base. This appropriation
73.21consolidates, and is not in addition to,
73.22appropriation language from Laws 2006,
73.23chapter 282, article 11, section 4, and
73.24Laws 2007, chapter 57, article 2, section 3,
73.26$300,000 each year is from the
73.27telecommunications access fund to the
73.28commissioner of commerce for a grant to
73.29the Legislative Coordinating Commission
73.30for a pilot program to provide captioning
73.31of live streaming of legislative sessions
73.32on the commission's Web site and a grant
73.33to the Commission of Deaf, DeafBlind,
73.34and Hard-of-Hearing Minnesotans to
73.35provide information on their Web site in
73.36American Sign Language and to provide
74.1technical assistance to state agencies. The
74.2commissioner of commerce may allocate
74.3a portion of this money to the Office
74.4of Technology to coordinate technology
74.5accessibility and usability.
74.7By July 31, 2009, the commissioner of
74.8finance shall transfer $500,000 from the
74.9unexpended balance in the auto theft
74.10prevention account to the general fund.
|Subd. 8.Telecommunications Access
|Sec. 4. PUBLIC UTILITIES COMMISSION
Sec. 5. Minnesota Statutes 2008, section 45.027, subdivision 1, is amended to read:
Subdivision 1. General powers.
In connection with the duties and responsibilities
entrusted to the commissioner, and Laws 1993, chapter 361, section 2, the commissioner
of commerce may:
(1) make public or private investigations within or without this state as the
commissioner considers necessary to determine whether any person has violated or is
about to violate any law, rule, or order related to the duties and responsibilities entrusted
to the commissioner;
(2) require or permit any person to file a statement in writing, under oath or otherwise
as the commissioner determines, as to all the facts and circumstances concerning the
matter being investigated;
(3) hold hearings, upon reasonable notice, in respect to any matter arising out of the
duties and responsibilities entrusted to the commissioner;
(4) conduct investigations and hold hearings for the purpose of compiling
information related to the duties and responsibilities entrusted to the commissioner;
(5) examine the books, accounts, records, and files of every licensee, and of every
person who is engaged in any activity regulated; the commissioner or a designated
representative shall have free access during normal business hours to the offices and
places of business of the person, and to all books, accounts, papers, records, files, safes,
and vaults maintained in the place of business;
(6) publish information which is contained in any order issued by the commissioner;
(7) require any person subject to duties and responsibilities entrusted to the
commissioner, to report all sales or transactions that are regulated. The reports must
be made within ten days after the commissioner has ordered the report. The report is
accessible only to the respondent and other governmental agencies unless otherwise
ordered by a court of competent jurisdiction
75.6(8) assess a licensee the necessary expenses of the investigation performed by the
75.7department when an investigation is made by order of the commissioner. The cost of the
75.8investigation shall be determined by the commissioner and is based on the salary cost
75.9of investigators or assistants and at an average rate per day or fraction thereof so as to
75.10provide for the total cost of the investigations. All money collected must be deposited into
75.11the general fund. A natural person licensed under chapter 60K or 82 shall not be charged
75.12costs of an investigation if the investigation results in no finding of a violation.
Sec. 6. Minnesota Statutes 2008, section 60A.14, subdivision 1, is amended to read:
Subdivision 1. Fees other than examination fees.
In addition to the fees and
charges provided for examinations, the following fees must be paid to the commissioner
for deposit in the general fund:
(a) by township mutual fire insurance companies;
(1) for filing certificate of incorporation $25 and amendments thereto, $10;
(2) for filing annual statements, $15;
(3) for each annual certificate of authority, $15;
(4) for filing bylaws $25 and amendments thereto, $10;
(b) by other domestic and foreign companies including fraternals and reciprocal
(1) for filing an application for an initial certification of authority to be admitted
to transact business in this state, $1,500;
(2) for filing certified copy of certificate of articles of incorporation, $100;
(3) for filing annual statement, $225;
(4) for filing certified copy of amendment to certificate or articles of incorporation,
(5) for filing bylaws, $75 or amendments thereto, $75;
(6) for each company's certificate of authority, $575, annually;
(c) the following general fees apply:
(1) for each certificate, including certified copy of certificate of authority, renewal,
valuation of life policies, corporate condition or qualification, $25;
(2) for each copy of paper on file in the commissioner's office 50 cents per page,
and $2.50 for certifying the same;
(3) for license to procure insurance in unadmitted foreign companies, $575;
(4) for valuing the policies of life insurance companies, one cent per $1,000 of
insurance so valued, provided that the fee shall not exceed $13,000 per year for any
company. The commissioner may, in lieu of a valuation of the policies of any foreign life
insurance company admitted, or applying for admission, to do business in this state, accept
a certificate of valuation from the company's own actuary or from the commissioner of
insurance of the state or territory in which the company is domiciled;
(5) for receiving and filing certificates of policies by the company's actuary, or by
the commissioner of insurance of any other state or territory, $50;
(6) for each appointment of an agent filed with the commissioner, $10;
(7) for filing forms, rates, and compliance certifications under section
per filing, or
per filing when submitted via electronic filing system. Filing
fees may be paid on a quarterly basis in response to an invoice. Billing and payment may
be made electronically;
(8) for annual renewal of surplus lines insurer license, $300.
The commissioner shall adopt rules to define filings that are subject to a fee.
Sec. 7. [116J.438] MINNESOTA GREEN ENTERPRISE ASSISTANCE.
76.20(a) The commissioner of employment and economic development, in consultation
76.21with the commissioner of commerce, shall lead a multiagency project to advise,
76.22promote, market, and coordinate state agency collaboration on green enterprise and
76.23green economy projects, as defined in section 116J.437. The multiagency project must
76.24include the commissioners of employment and economic development, natural resources,
76.25agriculture, transportation, and commerce, and the Pollution Control Agency. The
76.26project must involve collaboration with the chairs and ranking minority members of
76.27legislative committees overseeing energy policy and energy finance, state agencies,
76.28local governments, representatives from business and agriculture, and other interested
76.29stakeholders. The objective of the project is to utilize existing state resources to expedite
76.30the delivery of grants, licenses, permits, and other state authorizations and approvals for
76.31green economy projects. The commissioner shall appoint a lead person to coordinate
76.32green enterprise assistance activities.
76.33(b) The commissioner of employment and economic development shall seek out and
76.34may select persons from the business community to assist the commissioner in project
77.1(c) The commissioner may accept gifts, contributions, and in-kind services for the
77.2purposes of this section, under the authority provided in section 116J.035, subdivision
77.31. Any funds received must be placed in a special revenue account for the purposes of
77.5EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 8. Minnesota Statutes 2008, section 216B.62, subdivision 3, is amended to read:
Subd. 3. Assessing all public utilities.
The department and commission shall
quarterly, at least 30 days before the start of each quarter, estimate the total of their
expenditures in the performance of their duties relating to
public utilities under
77.10 216A.085 ,
sections 216A.085 and
, other than amounts chargeable
to public utilities under subdivision 2
and (2) alternative energy engineering
77.12 activity under section
216C.261 or 7
. The remainder
, except the amount assessed
77.13 against cooperatives and municipalities for alternative energy engineering activity under
77.14 subdivision 5,
shall be assessed by the commission and department to the several public
utilities in proportion to their respective gross operating revenues from retail sales of gas
or electric service within the state during the last calendar year. The assessment shall be
paid into the state treasury within 30 days after the bill has been transmitted via mail,
personal delivery, or electronic service to the several public utilities, which shall constitute
notice of the assessment and demand of payment thereof. The total amount which may
be assessed to the public utilities, under authority of this subdivision, shall not exceed
one-sixth of one percent of the total gross operating revenues of the public utilities
during the calendar year from retail sales of gas or electric service within the state. The
assessment for the third quarter of each fiscal year shall be adjusted to compensate for the
amount by which actual expenditures by the commission and department for the preceding
fiscal year were more or less than the estimated expenditures previously assessed.
Sec. 9. Minnesota Statutes 2008, section 216B.62, subdivision 4, is amended to read:
Subd. 4. Objections.
Within 30 days after the date of the transmittal of any bill as
3, or 7,
the public utility against which the bill
has been rendered may file with the commission objections setting out the grounds upon
which it is claimed the bill is excessive, erroneous, unlawful or invalid. The commission
shall within 60 days hold a hearing and issue an order in accordance with its findings. The
order shall be appealable in the same manner as other final orders of the commission.
Sec. 10. Minnesota Statutes 2008, section 216B.62, subdivision 5, is amended to read:
Subd. 5. Assessing cooperatives and municipals.
The commission and department
may charge cooperative electric associations, generation and transmission cooperative
electric associations, municipal power agencies, and municipal electric utilities their
proportionate share of the expenses incurred in the review and disposition of resource
plans, adjudication of service area disputes, proceedings under section
, and the costs incurred in the adjudication of complaints over
service standards, practices, and rates. Cooperative electric associations electing to
become subject to rate regulation by the commission pursuant to section
, are also subject to this section. Neither a cooperative electric association
nor a municipal electric utility is liable for costs and expenses in a calendar year in excess
of the limitation on costs that may be assessed against public utilities under subdivision
2. A cooperative electric association, generation and transmission cooperative electric
association, municipal power agency, or municipal electric utility may object to and appeal
bills of the commission and department as provided in subdivision 4.
The department shall assess cooperatives and municipalities for the costs of
78.16 alternative energy engineering activities under section
216C.261 . Each cooperative and
78.17 municipality shall be assessed in proportion that its gross operating revenues for the sale
78.18 of gas and electric service within the state for the last calendar year bears to the total of
78.19 those revenues for all public utilities, cooperatives, and municipalities.
Sec. 11. Minnesota Statutes 2008, section 216B.62, is amended by adding a subdivision
78.22 Subd. 7. Assessing all utilities. The department shall assess public utilities,
78.23cooperative electric associations, and municipal utilities for the costs of activities under
78.24chapter 216C. The department shall not assess for costs of grants, loans, or other aids or
78.25for costs that can be recovered through other assessment authority. Each public utility,
78.26cooperative, and municipal utility shall be assessed in the proportion that its gross
78.27operating revenue for the sale of gas and electric service within the state for the last
78.28calendar year bears to the total of those revenues for all public utilities, cooperatives,
Sec. 12. BULK INSTALLATION OF SOLAR PHOTOVOLTAIC PANELS ON
78.31SCHOOL BUILDINGS; FEASIBILITY STUDY AND REPORT.
78.32The director of the Office of Energy Security, in consultation with the commissioner
78.33of education, schools, school districts, and solar industry experts, must study the economic
78.34and technical feasibility of bulk installation of solar photovoltaic panels on school
79.1buildings in this state. The study must use a power-purchase agreement model in which
79.2a private company would pay for, install, and own the solar photovoltaic panels. No
79.3later than January 15, 2010, the director of the Office of Energy Security must report
79.4the results of the feasibility study, including whether the proposed model would reduce
79.5carbon emissions and result in savings to school districts, to the chairs and ranking
79.6minority members of the house of representatives and senate committees with jurisdiction
79.7over energy policy and finance.
79.8EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 13. APPROPRIATIONS; CANCELLATIONS.
79.10(a) The remaining balance of the fiscal year 2009 special revenue fund appropriation
79.11for the Green Jobs Task Force under Laws 2008, chapter 363, article 6, section 3,
79.12subdivision 4, is transferred and appropriated to the commissioner of employment and
79.13economic development for the purposes of green enterprise assistance under Minnesota
79.14Statutes, section 116J.438. This appropriation is available until spent.
79.15(b) The unencumbered balance of the fiscal year 2008 appropriation to the
79.16commissioner of commerce for the rural and energy development revolving loan
79.17fund under Laws 2007, chapter 57, article 2, section 3, subdivision 6, is canceled and
79.18reappropriated as follows:
79.19(1) $1,500,000 is for a grant to the Board of Trustees of the Minnesota State Colleges
79.20and Universities for the International Renewable Energy Technology Institute (IRETI) to
79.21be located at Minnesota State University, Mankato, as a public and private partnership to
79.22support applied research in renewable energy and energy efficiency to aid in the transfer of
79.23technology from Sweden to Minnesota and to support technology commercialization from
79.24companies located in Minnesota and throughout the world; and
79.25(2) the remaining balance is for a grant to the Board of Regents of the University of
79.26Minnesota for the initiative for renewable energy and the environment to fund start up
79.27costs related to a national solar testing and certification laboratory to test, rate, and certify
79.28the performance of equipment and devices that utilize solar energy for heating and cooling
79.29air and water and for generating electricity.
79.30This appropriation is available until expended.
79.31EFFECTIVE DATE.This section is effective the day following final enactment.
80.2DEPARTMENT OF COMMERCE; OTHER REGULATORY PROVISIONS
Section 1. Minnesota Statutes 2008, section 47.58, subdivision 1, is amended to read:
Subdivision 1. Definitions.
For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
(a) "Reverse mortgage loan" means a loan:
(1) Made to a borrower wherein the committed principal amount is paid to the
borrower in equal or unequal installments over a period of months or years, interest is
assessed, and authorized closing costs are incurred as specified in the loan agreement;
(2) Which is secured by a mortgage on residential property owned solely by the
(3) Which is due when the committed principal amount has been fully paid to the
borrower, or upon sale of the property securing the loan, or upon the death of the last
surviving borrower, or upon the borrower terminating use of the property as principal
residence so as to disqualify the property from the homestead credit given in chapter 290A.
(b) "Lender" means any bank subject to chapter 48, credit union subject to chapter
52, savings bank organized and operated pursuant to chapter 50, savings association
subject to chapter 51A, any residential mortgage originator subject to chapter 58,
insurance company as defined in section
60A.02, subdivision 4
. "Lender" also includes
any federally chartered bank supervised by the comptroller of the currency or federally
chartered savings association supervised by the Federal Home Loan Bank Board or
federally chartered credit union supervised by the National Credit Union Administration,
to the extent permitted by federal law.
(c) "Borrower" includes any natural person holding an interest in severalty or as joint
tenant or tenant-in-common in the property securing a reverse mortgage loan.
(d) "Outstanding loan balance" means the current net amount of money owed by the
borrower to the lender whether or not that sum is suspended pursuant to the terms of the
reverse mortgage loan agreement or is immediately due and payable. The outstanding
loan balance is calculated by adding the current totals of the items described in clauses (1)
to (5) and subtracting the current totals of the item described in clause (6):
(1) The sum of all payments made by the lender which are necessary to clear the
property securing the loan of any outstanding mortgage encumbrance or mechanics or
material supplier's lien.
(2) The total disbursements made by the lender to date pursuant to the loan
agreement as formulated in accordance with subdivision 3.
(3) All taxes, assessments, insurance premiums and other similar charges paid to
date by the lender pursuant to subdivision 6, which charges were not reimbursed by the
borrower within 60 days.
(4) All actual closing costs which the borrower has deferred, if a deferral provision
is contained in the loan agreement as authorized by subdivision 7.
(5) The total accrued interest to date, as authorized by subdivision 5.
(6) All payments made by the borrower pursuant to subdivision 4.
(e) "Actual closing costs" mean reasonable charges or sums ordinarily paid at the
time of closing for the following, whether or not retained by the lender:
(1) Any insurance premiums on policies covering the mortgaged property including
but not limited to premiums for title insurance, fire and extended coverage insurance, flood
insurance, and private mortgage insurance.
(2) Abstracting, title examination and search, and examination of public records
related to the mortgaged property.
(3) The preparation and recording of any or all documents required by law or custom
for closing a reverse mortgage loan agreement.
(4) Appraisal and survey of real property securing a reverse mortgage loan.
(5) A single service charge, which service charge shall include any consideration,
not otherwise specified in this section as an "actual closing cost," paid by the borrower to
the lender for or in relation to the acquisition, making, refinancing or modification of a
reverse mortgage loan, and shall also include any consideration received by the lender
for making a commitment for a reverse mortgage loan, whether or not an actual loan
follows the commitment. The service charge shall not exceed one percent of the bona fide
committed principal amount of the reverse mortgage loan.
(6) Charges and fees necessary for or related to the transfer of real property securing
a reverse mortgage loan or the closing of a reverse mortgage loan agreement paid by the
borrower and received by any party other than the lender.
Sec. 2. Minnesota Statutes 2008, section 47.60, subdivision 1, is amended to read:
Subdivision 1. Definitions.
For purposes of this section, the terms defined have
the meanings given them:
(a) "Consumer small loan" is a loan transaction in which cash is advanced to a
borrower for the borrower's own personal, family, or household purpose. A consumer
small loan is a short-term, unsecured loan to be repaid in a single installment. The cash
advance of a consumer small loan is equal to or less than $350. A consumer small loan
includes an indebtedness evidenced by but not limited to a promissory note or agreement
to defer the presentation of a personal check for a fee.
(b) "Consumer small loan lender" is a financial institution as defined in section
person business entity
registered with the commissioner and engaged in the
business of making consumer small loans.
Sec. 3. Minnesota Statutes 2008, section 47.60, subdivision 3, is amended to read:
Subd. 3. Filing.
person business entity
other than a financial institution
as defined by section
engages in the business of making consumer small loans to
person business entity
shall file with the commissioner as a
consumer small loan lender. The filing must be on a form prescribed by the commissioner
together with a fee of $250 for each place of business and contain the following
information in addition to the information required by the commissioner:
(1) evidence that the filer has available for the operation of the business at the
location specified, liquid assets of at least $50,000; and
(2) a biographical statement on the principal person responsible for the operation
and management of the business to be certified.
Revocation of the filing
and the right to engage in the business of a consumer small
82.18 loan lender
is the same as in the case of a regulated lender license in section
82.19For purposes of this subdivision, "business entity" includes one that does not have a
82.20physical location in Minnesota that makes a consumer small loan electronically via the
Sec. 4. Minnesota Statutes 2008, section 47.60, subdivision 6, is amended to read:
Subd. 6. Penalties for violation.
person business entity
members, officers, directors, agents, and employees who violate or participate in the
violation of any of the provisions of this section may be liable in the same manner as in
Sec. 5. Minnesota Statutes 2008, section 48.21, is amended to read:
82.2848.21 REAL ESTATE; RESTRICTIONS ON HOLDING.
Subdivision 1. Specific restrictions. (a)
A bank may purchase, carry as an asset,
and convey real estate only:
(1) as provided for in section
(2) if acquired through foreclosure of a mortgage given to it in good faith as security
for loans made by or money due to it;
(3) if conveyed to it in satisfaction of debts previously contracted in good faith in
the course of its dealings;
(4) if acquired by sale on execution or judgment of a court in its favor; or
(5) if reasonably necessary to mitigate or avoid loss on a loan or investment
Real estate acquired under paragraph (a),
clauses (2) to (5),
shall be carried as an
asset only in accordance with rules the commissioner prescribes. The maximum period for
83.8holding other real estate as an asset shall be five years, provided that upon application to
83.9the commissioner, the commissioner may approve the possession of such real estate by a
83.10bank for a period longer than five years, but not to exceed an additional five years, if:
83.11(1) the bank has made a good faith attempt to dispose of the real estate within the
83.12initial five-year period; or
83.13(2) disposal within the initial five-year period would be detrimental to the bank.
Subd. 2. Real estate holdings not bank liabilities.
Real estate owned by a bank as
a result of actions authorized in
clauses (2) to (5) of
subdivision 1, paragraph (a), clauses
83.16(2) to (5),
and subsequently sold to any buyer on a contract for deed may not be considered
creating a liability to a bank for purposes of section
Subd. 3. Real estate holdings not sold; authority to write off.
any rules of the commissioner to the contrary, if real estate owned by a bank pursuant to
clauses (2) to (5) of
subdivision 1, paragraph (a), clauses (2) to (5),
is not sold or otherwise
disposed of within the maximum period
established by rule by the commissioner
bank may write off any remaining balance at a rate not less than one-fifth of that balance
each subsequent calendar year.
Sec. 6. Minnesota Statutes 2008, section 58.05, subdivision 3, is amended to read:
Subd. 3. Certificate of exemption.
A person must obtain a certificate of exemption
from the commissioner to qualify as an exempt person under section
58.04, subdivision 1
paragraph (c), a financial institution under clause (2), or by order of the commissioner
under clause (6); or under section
58.04, subdivision 2
, paragraph (b), as a financial
institution under clause
, or by order of the commissioner under clause
Sec. 7. Minnesota Statutes 2008, section 58.06, subdivision 2, is amended to read:
Subd. 2. Application contents.
(a) The application must contain the name and
complete business address or addresses of the license applicant. The license applicant
must be a partnership, limited liability partnership, association, limited liability company,
corporation, or other form of business organization, and the application must contain the
names and complete business addresses of each partner, member, director, and principal
officer. The application must also include a description of the activities of the license
applicant, in the detail and for the periods the commissioner may require.
An A residential mortgage originator
applicant must submit one of the following:
(1) evidence which shows, to the commissioner's satisfaction, that either the federal
Department of Housing and Urban Development or the Federal National Mortgage
Association has approved the residential mortgage originator
applicant as a mortgagee;
(2) a surety bond or irrevocable letter of credit in the amount of not less than
$50,000 in a form approved by the commissioner, issued by an insurance company or bank
authorized to do so in this state. The bond or irrevocable letter of credit must be available
for the recovery of expenses, fines, and fees levied by the commissioner under this chapter
and for losses incurred by borrowers. The bond or letter of credit must be submitted with
the license application, and evidence of continued coverage must be submitted with each
renewal. Any change in the bond or letter of credit must be submitted for approval by the
commissioner within ten days of its execution; or
(3) a copy of the residential mortgage originator
applicant's most recent audited
financial statement, including balance sheet, statement of income or loss, statements of
changes in shareholder equity, and statement of changes in financial position. Financial
statements must be as of a date within 12 months of the date of application.
(c) The application must also include all of the following:
(1) an affirmation under oath that the applicant:
(i) is in compliance with the requirements of section
(ii) will maintain a perpetual roster of individuals employed as residential mortgage
originators, including employees and independent contractors, which includes the
that mandatory testing,
was, and continuing education were
completed. In addition, the roster must be made available to the commissioner on demand,
within three business days of the commissioner's request;
(iii) will advise the commissioner of any material changes to the information
submitted in the most recent application within ten days of the change;
(iv) will advise the commissioner in writing immediately of any bankruptcy petitions
filed against or by the applicant or licensee;
(v) will maintain at all times either a net worth, net of intangibles, of at least
$250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000;
(vi) complies with federal and state tax laws; and
(vii) complies with sections
, the Minnesota unclaimed property
(2) information as to the mortgage lending, servicing, or brokering experience of the
applicant and persons in control of the applicant;
(3) information as to criminal convictions, excluding traffic violations, of persons in
control of the license applicant;
(4) whether a court of competent jurisdiction has found that the applicant or persons
in control of the applicant have engaged in conduct evidencing gross negligence, fraud,
misrepresentation, or deceit in performing an act for which a license is required under
(5) whether the applicant or persons in control of the applicant have been the subject
of: an order of suspension or revocation, cease and desist order, or injunctive order, or
order barring involvement in an industry or profession issued by this or another state or
federal regulatory agency or by the Secretary of Housing and Urban Development within
the ten-year period immediately preceding submission of the application; and
(6) other information required by the commissioner.
Sec. 8. Minnesota Statutes 2008, section 58.126, is amended to read:
85.1658.126 EDUCATION AND TESTING REQUIREMENT.
No individual shall engage in residential mortgage origination or make residential
mortgage loans, whether as an employee or independent contractor, before the completion
hours of educational training which has been approved by the commissioner, and
covering state and federal laws concerning residential mortgage lending.
85.21(b) In addition to the initial education requirements in paragraph (a), each individual
85.22must also complete eight hours of continuing education annually. The education must
85.24(1) three hours of federal law and regulations;
85.25(2) two hours of ethics, which must include fraud, consumer protection, and fair
85.27(3) two hours of standards governing nontraditional mortgage lending.
85.28(c) The commissioner may by rule establish testing requirements for individuals
85.29subject to the requirements of paragraphs (a) and (b). An individual must satisfy the
85.30testing requirements established by the commissioner before engaging in residential
85.31mortgage loan origination or making residential mortgage loans.
85.32EFFECTIVE DATE.This section is effective September 1, 2009, and applies to
85.33license applications and renewals made on or after that date.
Sec. 9. Minnesota Statutes 2008, section 58.13, subdivision 1, is amended to read:
Subdivision 1. Generally.
(a) No person acting as a residential mortgage originator
or servicer, including a person required to be licensed under this chapter, and no person
exempt from the licensing requirements of this chapter under section
, except as
otherwise provided in paragraph (b), shall:
(1) fail to maintain a trust account to hold trust funds received in connection with a
residential mortgage loan;
(2) fail to deposit all trust funds into a trust account within three business days of
receipt; commingle trust funds with funds belonging to the licensee or exempt person; or
use trust account funds for any purpose other than that for which they are received;
(3) unreasonably delay the processing of a residential mortgage loan application,
or the closing of a residential mortgage loan. For purposes of this clause, evidence of
unreasonable delay includes but is not limited to those factors identified in section
, clause (d);
(4) fail to disburse funds according to its contractual or statutory obligations;
(5) fail to perform in conformance with its written agreements with borrowers,
investors, other licensees, or exempt persons;
(6) charge a fee for a product or service where the product or service is not actually
provided, or misrepresent the amount charged by or paid to a third party for a product
(7) fail to comply with sections
, the Minnesota unclaimed property
(8) violate any provision of any other applicable state or federal law regulating
residential mortgage loans including, without limitation, sections
(9) make or cause to be made, directly or indirectly, any false, deceptive, or
misleading statement or representation in connection with a residential loan transaction
including, without limitation, a false, deceptive, or misleading statement or representation
regarding the borrower's ability to qualify for any mortgage product;
(10) conduct residential mortgage loan business under any name other than that
under which the license or certificate of exemption was issued;
(11) compensate, whether directly or indirectly, coerce or intimidate an appraiser for
the purpose of influencing the independent judgment of the appraiser with respect to the
value of real estate that is to be covered by a residential mortgage or is being offered as
security according to an application for a residential mortgage loan;
(12) issue any document indicating conditional qualification or conditional approval
for a residential mortgage loan, unless the document also clearly indicates that final
qualification or approval is not guaranteed, and may be subject to additional review;
(13) make or assist in making any residential mortgage loan with the intent that the
loan will not be repaid and that the residential mortgage originator will obtain title to
the property through foreclosure;
(14) provide or offer to provide for a borrower, any brokering or lending services
under an arrangement with a person other than a licensee or exempt person, provided that
a person may rely upon a written representation by the residential mortgage originator that
it is in compliance with the licensing requirements of this chapter;
(15) claim to represent a licensee or exempt person, unless the person is an employee
of the licensee or exempt person or unless the person has entered into a written agency
agreement with the licensee or exempt person;
(16) fail to comply with the record keeping and notification requirements identified
or fail to abide by the affirmations made on the application for licensure;
(17) represent that the licensee or exempt person is acting as the borrower's agent
after providing the nonagency disclosure required by section
, unless the disclosure
is retracted and the licensee or exempt person complies with all of the requirements of
(18) make, provide, or arrange for a residential mortgage loan that is of a lower
investment grade if the borrower's credit score or, if the originator does not utilize credit
scoring or if a credit score is unavailable, then comparable underwriting data, indicates
that the borrower may qualify for a residential mortgage loan, available from or through
the originator, that is of a higher investment grade, unless the borrower is informed that
the borrower may qualify for a higher investment grade loan with a lower interest rate
and/or lower discount points, and consents in writing to receipt of the lower investment
For purposes of this section, "investment grade" refers to a system of categorizing
residential mortgage loans in which the loans are: (i) commonly referred to as "prime" or
"subprime"; (ii) commonly designated by an alphabetical character with "A" being the
highest investment grade; and (iii) are distinguished by interest rate or discount points
or both charged to the borrower, which vary according to the degree of perceived risk
of default based on factors such as the borrower's credit, including credit score and
credit patterns, income and employment history, debt ratio, loan-to-value ratio, and prior
bankruptcy or foreclosure;
(19) make, publish, disseminate, circulate, place before the public, or cause to be
made, directly or indirectly, any advertisement or marketing materials of any type, or any
statement or representation relating to the business of residential mortgage loans that is
false, deceptive, or misleading;
(20) advertise loan types or terms that are not available from or through the licensee
or exempt person on the date advertised, or on the date specified in the advertisement.
For purposes of this clause, advertisement includes, but is not limited to, a list of sample
mortgage terms, including interest rates, discount points, and closing costs provided by
licensees or exempt persons to a print or electronic medium that presents the information
to the public;
(21) use or employ phrases, pictures, return addresses, geographic designations, or
other means that create the impression, directly or indirectly, that a licensee or other
person is a governmental agency, or is associated with, sponsored by, or in any manner
connected to, related to, or endorsed by a governmental agency, if that is not the case;
(22) violate section
, relating to table funding;
(23) make, provide, or arrange for a residential mortgage loan all or a portion
of the proceeds of which are used to fully or partially pay off a "special mortgage"
unless the borrower has obtained a written certification from an authorized independent
loan counselor that the borrower has received counseling on the advisability of the
loan transaction. For purposes of this section, "special mortgage" means a residential
mortgage loan originated, subsidized, or guaranteed by or through a state, tribal, or
local government, or nonprofit organization, that bears one or more of the following
nonstandard payment terms which substantially benefit the borrower: (i) payments vary
with income; (ii) payments of principal or interest are not required or can be deferred under
specified conditions; (iii) principal or interest is forgivable under specified conditions;
or (iv) where no interest or an annual interest rate of two percent or less is charged in
connection with the loan. For purposes of this section, "authorized independent loan
counselor" means a nonprofit, third-party individual or organization providing homebuyer
education programs, foreclosure prevention services, mortgage loan counseling, or credit
counseling certified by the United States Department of Housing and Urban Development,
the Minnesota Home Ownership Center, the Minnesota Mortgage Foreclosure Prevention
Association, AARP, or NeighborWorks America;
(24) make, provide, or arrange for a residential mortgage loan without verifying
the borrower's reasonable ability to pay the scheduled payments of the following, as
applicable: principal; interest; real estate taxes; homeowner's insurance, assessments,
and mortgage insurance premiums. For loans in which the interest rate may vary, the
reasonable ability to pay shall be determined based on a fully indexed rate and a repayment
schedule which achieves full amortization over the life of the loan. For all residential
mortgage loans, the borrower's income and financial resources must be verified by tax
returns, payroll receipts, bank records, or other similarly reliable documents.
Nothing in this section shall be construed to limit a mortgage originator's or exempt
person's ability to rely on criteria other than the borrower's income and financial resources
to establish the borrower's reasonable ability to repay the residential mortgage loan,
including criteria established by the United States Department of Veterans Affairs or the
United States Department of Housing and Urban Development for interest rate reduction
refinancing loans or streamline loans, or criteria authorized or promulgated by the
Federal National Mortgage Association or Federal Home Loan Mortgage Corporation;
however, such other criteria must be verified through reasonably reliable methods and
documentation. The mortgage originator's analysis of the borrower's reasonable ability
to repay may include, but is not limited to, consideration of the following items, if
verified: (1) the borrower's current and expected income; (2) current and expected cash
flow; (3) net worth and other financial resources other than the consumer's equity in the
dwelling that secures the loan; (4) current financial obligations; (5) property taxes and
insurance; (6) assessments on the property; (7) employment status; (8) credit history; (9)
debt-to-income ratio; (10) credit scores; (11) tax returns; (12) pension statements; and
(13) employment payment records, provided that no mortgage originator shall disregard
facts and circumstances that indicate that the financial or other information submitted by
the consumer is inaccurate or incomplete. A statement by the borrower to the residential
mortgage originator or exempt person of the borrower's income and resources or sole
reliance on any single item listed above is not sufficient to establish the existence of the
income or resources when verifying the reasonable ability to pay.
(25) engage in "churning." As used in this section, "churning" means knowingly or
intentionally making, providing, or arranging for a residential mortgage loan when the
new residential mortgage loan does not provide a reasonable, tangible net benefit to the
borrower considering all of the circumstances including the terms of both the new and
refinanced loans, the cost of the new loan, and the borrower's circumstances;
(26) the first time a residential mortgage originator orally informs a borrower of the
anticipated or actual periodic payment amount for a first-lien residential mortgage loan
which does not include an amount for payment of property taxes and hazard insurance,
the residential mortgage originator must inform the borrower that an additional amount
will be due for taxes and insurance and, if known, disclose to the borrower the amount of
the anticipated or actual periodic payments for property taxes and hazard insurance. This
same oral disclosure must be made each time the residential mortgage originator orally
informs the borrower of a different anticipated or actual periodic payment amount change
from the amount previously disclosed. A residential mortgage originator need not make
this disclosure concerning a refinancing loan if the residential mortgage originator knows
that the borrower's existing loan that is anticipated to be refinanced does not have an
escrow account; or
(27) make, provide, or arrange for a residential mortgage loan, other than a reverse
mortgage pursuant to United States Code, title 15, chapter 41, if the borrower's compliance
with any repayment option offered pursuant to the terms of the loan will result in negative
amortization during any six-month period.
(b) Paragraph (a), clauses (24) through (27), do not apply to a state or federally
chartered bank, savings bank, or credit union, an institution chartered by Congress under
the Farm Credit Act, or to a person making, providing, or arranging a residential mortgage
loan originated or purchased by a state agency or a tribal or local unit of government. This
paragraph supersedes any inconsistent provision of this chapter.
Sec. 10. Minnesota Statutes 2008, section 60A.124, is amended to read:
90.1760A.124 INDEPENDENT AUDIT.
The audit report of the independent certified public accountant that performs the
audit of an insurer's annual statement as required under section
should contain a statement as to whether anything, in
connection with their audit, came to their attention that caused them to believe that the
insurer failed to adopt and consistently apply the valuation procedure as required by
Sec. 11. [60A.1291] ANNUAL AUDIT.
90.25 Subdivision 1. Definitions. The definitions in this subdivision apply to this section.
90.26(a) "Accountant" and "independent public accountant" mean an independent certified
90.27public accountant or accounting firm in good standing with the American Institute of
90.28Certified Public Accountants and in all states in which the accountant or firm is licensed
90.29or is required to be licensed to practice. For Canadian and British companies, the term
90.30means a Canadian-chartered or British-chartered accountant.
90.31(b) "Audit committee" means a committee or equivalent body established by the
90.32board of directors of an entity for the purpose of overseeing the accounting and financial
90.33reporting processes of an insurer or group of insurers, and audits of financial statements of
90.34the insurer or group of insurers. The audit committee of any entity that controls a group of
91.1insurers may be deemed to be the audit committee for one or more of these controlled
91.2insurers solely for the purposes of this section at the election of the controlling person
91.3under subdivision 15, paragraph (e). If an audit committee is not designated by the insurer,
91.4the insurer's entire board of directors constitutes the audit committee.
91.5(c) "Indemnification" means an agreement of indemnity or a release from liability
91.6where the intent or effect is to shift or limit in any manner the potential liability of the
91.7person or firm for failure to adhere to applicable auditing or professional standards,
91.8whether or not resulting in part from knowing of other misrepresentations made by the
91.9insurer or its representatives.
91.10(d) "Independent board member" has the same meaning as described in subdivision
91.1115, paragraph (c).
91.12(e) "Internal control over financial reporting" means a process effected by an entity's
91.13board of directors, management, and other personnel designed to provide reasonable
91.14assurance regarding the reliability of the financial statements, for example, those items
91.15specified in subdivision 4, paragraphs (a), clauses (2) to (6), (b), and (c), and includes
91.16those policies and procedures that:
91.17(1) pertain to the maintenance of records that, in reasonable detail, accurately and
91.18fairly reflect the transactions and dispositions of assets;
91.19(2) provide reasonable assurance that transactions are recorded as necessary to permit
91.20preparation of the financial statements, for example, those items specified in subdivision 4,
91.21paragraphs (a), clauses (2) to (6), (b), and (c), and that receipts and expenditures are being
91.22made only in accordance with authorizations of management and directors; and
91.23(3) provide reasonable assurance regarding prevention or timely detection of
91.24unauthorized acquisition, use, or disposition of assets that could have a material effect on
91.25the financial statements, for example, those items specified in subdivision 4, paragraphs
91.26(a), clauses (2) to (6), (b), and (c).
91.27(f) "SEC" means the United States Securities and Exchange Commission.
91.28(g) "Section 404" means Section 404 of the Sarbanes-Oxley Act of 2002 and the
91.29SEC's rules and regulations promulgated under it.
91.30(h) "Section 404 report" means management's report on "internal control over
91.31financial reporting" as defined by the SEC and the related attestation report of the
91.32independent certified public accountant as described in paragraph (a).
91.33(i) "SOX compliant entity" means an entity that either is required to be
91.34compliant with, or voluntarily is compliant with, all of the following provisions of the
91.35Sarbanes-Oxley Act of 2002: (i) the preapproval requirements of Section 201 (section
91.3610A(i) of the Securities Exchange Act of 1934); (ii) the audit committee independence
92.1requirements of Section 301 (section 10A(m)(3) of the Securities Exchange Act of 1934);
92.2and (iii) the internal control over financial reporting requirements of Section 404 (Item
92.3308 of SEC Regulation S-K).
92.4 Subd. 2. Filing requirements. Every insurance company doing business in this
92.5state, including fraternal benefit societies, reciprocal exchanges, service plan corporations
92.6licensed pursuant to chapter 62C, and legal service plans licensed pursuant to chapter
92.762G, unless exempted by the commissioner pursuant to subdivision 9, paragraph (a), or by
92.8subdivision 18, shall have an annual audit of the financial activities of the most recently
92.9completed calendar year performed by an independent certified public accountant, and
92.10shall file the report of this audit with the commissioner on or before June 1 for the
92.11immediately preceding year ending December 31. The commissioner may require an
92.12insurer to file an audited financial report earlier than June 1 with 90 days' advance notice
92.13to the insurer.
92.14Extensions of the June 1 filing date may be granted by the commissioner for 30-day
92.15periods upon a showing by the insurer and its independent certified public accountant of
92.16the reasons for requesting the extension and a determination by the commissioner of good
92.17cause for the extension.
92.18The request for extension must be submitted in writing not less than ten days before
92.19the due date in sufficient detail to permit the commissioner to make an informed decision
92.20with respect to the requested extension.
92.21If an extension is granted in accordance with this subdivision, a similar extension of
92.2230 days is granted to the filing of management's report of internal control over financial
92.24Every insurer required to file an annual audited financial report pursuant to this
92.25subdivision shall designate a group of individuals as constituting its audit committee. The
92.26audit committee of an entity that controls an insurer may be deemed to be the insurer's
92.27audit committee for purposes of this subdivision at the election of the controlling person.
92.28 Subd. 3. Exemptions. Foreign and alien insurers filing audited financial reports
92.29in another state under the other state's requirements of audited financial reports which
92.30have been found by the commissioner to be substantially similar to these requirements
92.31are exempt from this section if a copy of the audited financial report, communication of
92.32internal control related matters noted in an audit, accountant's letter of qualifications, and
92.33report on significant deficiencies in internal controls, which are filed with the other state,
92.34are filed with the commissioner in accordance with the filing dates specified in subdivision
92.352 (Canadian insurers may submit accountants' reports as filed with the Canadian Dominion
92.36Department of Insurance); and a copy of any notification of adverse financial condition
93.1report filed with the other state is filed with the commissioner within the time specified
93.2in subdivision 11. Foreign or alien insurers required to file management's report of
93.3internal control over financial reporting in another state are exempt from filing the report
93.4in this state provided the other state has substantially similar reporting requirements and
93.5the report is filed with the commissioner of the other state within the time specified.
93.6This subdivision does not prohibit or in any way limit the commissioner from ordering,
93.7conducting, and performing examinations of insurers under the authority of this chapter.
93.8 Subd. 4. Contents of annual audit; financial report. (a) The annual audited
93.9financial report must report, in conformity with statutory accounting practices required
93.10or permitted by the commissioner of insurance of the state of domicile, the financial
93.11position of the insurer as of the end of the most recent calendar year and the results of
93.12its operations, cash flows, and changes in capital and surplus for the year ended. The
93.13annual audited financial report must include:
93.14(1) a report of an independent certified public accountant;
93.15(2) a balance sheet reporting admitted assets, liabilities, capital, and surplus;
93.16(3) a statement of operations;
93.17(4) a statement of cash flows;
93.18(5) a statement of changes in capital and surplus; and
93.19(6) notes to the financial statements.
93.20(b) The notes required under paragraph (a) are those required by the appropriate
93.21National Association of Insurance Commissioners (NAIC) annual statement instructions
93.22and National Association of Insurance Commissioners Accounting Practices and
93.23Procedures Manual and include reconciliation of differences, if any, between the audited
93.24statutory financial statements and the annual statement filed under section 60A.13,
93.25subdivision 1, with a written description of the nature of these differences.
93.26(c) The financial statements included in the audited financial report must be prepared
93.27in a form and using language and groupings substantially the same as the relevant sections
93.28of the annual statement of the insurer filed with the commissioner. The financial statement
93.29must be comparative, presenting the amounts as of December 31 of the current year and
93.30the amounts as of the immediately preceding December 31. In the first year in which
93.31an insurer is required to file an audited financial report, the comparative data may be
93.32omitted. The amounts may be rounded to the nearest $1,000, and all immaterial amounts
93.33may be combined.
93.34 Subd. 5. Designation of independent certified public accountant. Each insurer
93.35required by this section to file an annual audited financial report must notify the
93.36commissioner in writing of the name and address of the independent certified public
94.1accountant or accounting firm retained to conduct the annual audit within 60 days after
94.2becoming subject to the annual audit requirement. The insurer shall obtain from the
94.3accountant a letter which states that the accountant is aware of the provisions that relate
94.4to accounting and financial matters in the insurance laws and the rules of the insurance
94.5regulatory authority of the state of domicile. The letter shall affirm that the accountant will
94.6express an opinion on the financial statements in terms of their conformity to the statutory
94.7accounting practices prescribed or otherwise permitted by that insurance regulatory
94.8authority, specifying the exceptions believed to be appropriate. A copy of the accountant's
94.9letter shall be filed with the commissioner.
94.10 Subd. 6. Report of disagreements. If an accountant who was the accountant for
94.11the immediately preceding filed audited financial report is dismissed or resigns, the
94.12insurer shall notify the commissioner of this event within five business days. Within
94.13ten business days of this notification, the insurer shall also furnish the commissioner
94.14with a separate letter stating whether in the 24 months preceding this event there were
94.15any disagreements with the former accountant on any matter of accounting principles or
94.16practices, financial statement disclosure, or auditing scope or procedure, which, if not
94.17resolved to the satisfaction of the former accountant, would have caused that person to
94.18make reference to the subject matter of the disagreement in connection with the opinion
94.19on the financial statements. The disagreements required to be reported in response to this
94.20subdivision include both those resolved to the former accountant's satisfaction and those
94.21not resolved to the former accountant's satisfaction. Disagreements contemplated by this
94.22subdivision are those disagreements between personnel of the insurer responsible for
94.23presentation of its financial statements and personnel of the accounting firm responsible
94.24for rendering its report. The insurer shall also in writing request the former accountant
94.25to furnish a letter addressed to the insurer stating whether the accountant agrees with
94.26the statements contained in the insurer's letter and, if not, stating the reasons for any
94.27disagreement. The insurer shall furnish this responsive letter from the former accountant
94.28to the commissioner together with its own.
94.29 Subd. 7. Qualifications of independent certified public accountant. (a) The
94.30commissioner shall not recognize any person or firm as a qualified independent certified
94.31public accountant that is not in good standing with the American Institute of Certified
94.32Public Accountants and in all states in which the accountant is licensed or is required
94.33to be licensed to practice, or for a Canadian or British company, that is not a chartered
94.34accountant, or that has either directly or indirectly entered into an agreement of indemnity
94.35or release from liability (collectively referred to as an indemnification agreement) with
94.36respect to the audit of the insurer. Except as otherwise provided, an independent certified
95.1public accountant must be recognized as qualified as long as the person conforms to the
95.2standards of the person's profession, as contained in the Code of Professional Conduct
95.3of the American Institute of Certified Public Accountants and the Code of Professional
95.4Conduct of the Minnesota Board of Public Accountancy or similar code and the person is
95.5properly licensed in good standing with all required state boards of accountancy.
95.6(b) The lead or coordinating audit partner, having primary responsibility for the
95.7audit, may not act in that capacity for more than five consecutive years. The person shall
95.8be disqualified from acting in that or a similar capacity for the same company or its
95.9insurance subsidiaries or affiliates for a period of five consecutive years. An insurer may
95.10make application to the commissioner for relief from this rotation requirement on the
95.11basis of unusual circumstances. This application must be made at least 30 days before
95.12the end of the calendar year. The commissioner may consider the following factors in
95.13determining if the relief should be granted:
95.14(1) number of partners, expertise of the partners, or the number of insurance clients
95.15in the currently registered firm;
95.16(2) premium volume of the insurer; or
95.17(3) number of jurisdictions in which the insurer transacts business.
95.18The insurer shall file, with its annual statement filing, the approval for relief from this
95.19paragraph with the states that it is licensed in or doing business in and with the NAIC. If
95.20the nondomestic state accepts electronic filing with the NAIC, the insurer shall file the
95.21approval in an electronic format acceptable to the NAIC.
95.22(c) The commissioner shall not recognize as a qualified independent certified public
95.23accountant, nor accept an annual audited financial report, prepared in whole or in part by
95.24an accountant who provides to an insurer, contemporaneously with the audit, the following
95.26(1) bookkeeping or other services related to the accounting records or financial
95.27statements of the insurer;
95.28(2) financial information systems design and implementation;
95.29(3) appraisal or valuation services, fairness opinions, or contribution in-kind reports;
95.30(4) actuarially oriented advisory services involving the determination of amounts
95.31recorded in the financial statements. The accountant may assist an insurer in understanding
95.32the methods, assumptions, and inputs used in the determination of amounts recorded in the
95.33financial statement only if it is reasonable to conclude that the services provided will not
95.34be subject to audit procedures during an audit of the insurer's financial statements. An
95.35accountant's actuary may also issue an actuarial opinion or certification on an insurer's
95.36reserves if the following conditions have been met:
96.1(i) neither the accountant nor the accountant's actuary has performed any
96.2management functions or made any management decisions;
96.3(ii) the insurer has competent personnel, or engages a third-party actuary, to estimate
96.4the loss reserves for which management takes responsibility; and
96.5(iii) the accountant's actuary tests the reasonableness of the reserves after the
96.6insurer's management has determined the amount of the loss reserves;
96.7(5) internal audit outsourcing services;
96.8(6) management functions or human resources;
96.9(7) broker or dealer, investment adviser, or investment banking services;
96.10(8) legal services or expert services unrelated to the audit; and
96.11(9) any other services that the commissioner determines, by rule, are impermissible.
96.12(d) The commissioner shall not recognize as a qualified independent certified public
96.13accountant, nor accept any audited financial report, prepared in whole or in part by any
96.14natural person who has been convicted of fraud, bribery, a violation of the Racketeer
96.15Influenced and Corrupt Organizations Act, United States Code, title 18, sections 1961 to
96.161968, or any dishonest conduct or practices under federal or state law, has been found to
96.17have violated the insurance laws of this state with respect to any previous reports submitted
96.18under this section, or has demonstrated a pattern or practice of failing to detect or disclose
96.19material information in previous reports filed under the provisions of this section.
96.20(e) The commissioner, after notice and hearing under chapter 14, may find that
96.21the accountant is not qualified for purposes of expressing an opinion on the financial
96.22statements in the annual audited financial report. The commissioner may require the
96.23insurer to replace the accountant with another whose relationship with the insurer is
96.24qualified within the meaning of this section.
96.25 Subd. 8. Exemptions to qualifications of certified public accountant. (a) Insurers
96.26having direct written and assumed premiums of less than $100,000,000 in any calendar
96.27year may request an exemption from subdivision 7, paragraph (c). The insurer shall
96.28file with the commissioner a written statement discussing the reasons why the insurer
96.29should be exempt from these provisions. If the commissioner finds, upon review of this
96.30statement, that compliance with this section would constitute a financial or organizational
96.31hardship upon the insurer, an exemption may be granted.
96.32(b) A qualified independent certified public accountant who performs the audit
96.33may engage in other nonaudit services, including tax services, that are not described in
96.34subdivision 7, paragraph (c), only if the activity is approved in advance by the audit
96.35committee, in accordance with paragraph (c).
97.1(c) All auditing services and nonaudit services provided to an insurer by the qualified
97.2independent certified public accountant of the insurer must be preapproved by the audit
97.3committee. The preapproval requirement is waived with respect to nonaudit services if
97.4the insurer is a SOX compliant entity or a direct or indirect wholly owned subsidiary of a
97.5SOX compliant entity or:
97.6(1) the aggregate amount of all such nonaudit services provided to the insurer
97.7constitutes not more than five percent of the total amount of fees paid by the insurer to
97.8its qualified independent certified public accountant during the fiscal year in which the
97.9nonaudit services are provided;
97.10(2) the services were not recognized by the insurer at the time of the engagement to
97.11be nonaudit services; and
97.12(3) the services are promptly brought to the attention of the audit committee and
97.13approved before the completion of the audit by the audit committee or by one or more
97.14members of the audit committee who are the members of the board of directors to whom
97.15authority to grant such approvals has been delegated by the audit committee.
97.16(d) The audit committee may delegate to one or more designated members of the
97.17audit committee the authority to grant the preapprovals required by paragraph (c). The
97.18decisions of any member to whom this authority is delegated must be presented to the full
97.19audit committee at each of its scheduled meetings.
97.20(e) The commissioner shall not recognize an independent certified public accountant
97.21as qualified for a particular insurer if a member of the board, president, chief executive
97.22officer, controller, chief financial officer, chief accounting officer, or any person serving in
97.23an equivalent position for that insurer, was employed by the independent certified public
97.24accountant and participated in the audit of that insurer during the one-year period preceding
97.25the date that the most current statutory opinion is due. This paragraph applies only to
97.26partners and senior managers involved in the audit. An insurer may make application to
97.27the commissioner for relief from this paragraph on the basis of unusual circumstances.
97.28(f) The insurer shall file, with its annual statement filing, the approval for relief with
97.29the states that it is licensed in or doing business in and the NAIC. If the nondomestic state
97.30accepts electronic filing with the NAIC, the insurer shall file the approval in an electronic
97.31format acceptable to the NAIC.
97.32 Subd. 9. Consolidated or combined audits. (a) The commissioner may allow
97.33an insurer to file consolidated or combined audited financial statements required by
97.34subdivision 2, in lieu of separate annual audited financial statements, where it can be
97.35demonstrated that an insurer is part of a group of insurance companies that has a pooling
97.36or 100 percent reinsurance agreement which substantially affects the solvency and
98.1integrity of the reserves of the insurer and the insurer cedes all of its direct and assumed
98.2business to the pool. An affiliated insurance company not meeting these requirements may
98.3be included in the consolidated or combined audited financial statements, if the company's
98.4total admitted assets are less than five percent of the consolidated group's total admitted
98.5assets. If these circumstances exist, then the company may file a written application to
98.6file consolidated or combined audited financial statements. This application must be for
98.7a specified period.
98.8(b) Upon written application by a domestic insurer, the commissioner may
98.9authorize the domestic insurer to include additional affiliated insurance companies in the
98.10consolidated or combined audited financial statements. A foreign insurer must obtain the
98.11prior written authorization of the commissioner of its state of domicile in order to submit
98.12an application for authority to file consolidated or combined audited financial statements.
98.13This application must be for a specified period.
98.14(c) A consolidated annual audit filing must include a columnar consolidated or
98.15combining worksheet. Amounts shown on the audited consolidated or combined financial
98.16statement must be shown on the worksheet. Amounts for each insurer must be stated
98.17separately. Noninsurance operations may be shown on the worksheet on a combined or
98.18individual basis. Explanations of consolidating or eliminating entries must be shown on
98.19the worksheet. A reconciliation of any differences between the amounts shown in the
98.20individual insurer columns of the worksheet and comparable amounts shown on the annual
98.21statement of the insurers must be included on the worksheet.
98.22 Subd. 10. Scope of audit and report of independent certified public accountant.
98.23Financial statements furnished pursuant to subdivision 4 must be examined by an
98.24independent certified public accountant. The audit of the insurer's financial statements
98.25must be conducted in accordance with generally accepted auditing standards. In
98.26accordance with AICPA Statement on Auditing Standards (SAS) No. 109, Understanding
98.27the Entity and its Environment and Assessing the Risks of Material Misstatement, or its
98.28replacement, the independent certified public accountant should obtain an understanding
98.29of internal control sufficient to plan the audit. To the extent required by SAS No. 109,
98.30for those insurers required to file a management's report of internal control over financial
98.31reporting pursuant to subdivision 17, the independent certified public accountant should
98.32consider (as that term is defined in SAS No. 102, Defining Professional Requirements in
98.33Statements on Auditing Standards or its replacement) the most recently available report in
98.34planning and performing the audit of the statutory financial statements. Consideration
98.35should be given to other procedures illustrated in the Financial Condition Examiners
99.1Handbook promulgated by the National Association of Insurance Commissioners as the
99.2independent certified public accountant deems necessary.
99.3 Subd. 11. Notification of adverse financial condition. The insurer required to
99.4furnish the annual audited financial report shall require the independent certified public
99.5accountant to provide written notice within five business days to the board of directors of
99.6the insurer or its audit committee of any determination by that independent certified public
99.7accountant that the insurer has materially misstated its financial condition as reported to
99.8the commissioner as of the balance sheet date currently under audit or that the insurer does
99.9not meet the minimum capital and surplus requirement of sections
99.1066A.33 as of that date. An insurer required to file an annual audited financial report who
99.11received a notification of adverse financial condition from the accountant shall file a
99.12copy of the notification with the commissioner within five business days of the receipt
99.13of the notification. The insurer shall provide the independent certified public accountant
99.14making the notification with evidence of the report being furnished to the commissioner.
99.15If the independent certified public accountant fails to receive the evidence within the
99.16required five-day period, the independent certified public accountant shall furnish to the
99.17commissioner a copy of the notification to the board of directors or its audit committee
99.18within the next five business days. No independent certified public accountant is liable in
99.19any manner to any person for any statement made in connection with this subdivision if
99.20the statement is made in good faith in compliance with this subdivision. If the accountant
99.21becomes aware of facts which might have affected the audited financial report after
99.22the date it was filed, the accountant shall take the action prescribed by AU section
99.23561, Subsequent Discovery of Facts Existing at the Date of the Auditor's Report of the
99.24Professional Standards issued by the American Institute of Certified Public Accountants,
99.25or its replacement.
99.26 Subd. 12. Communication of internal control related matters noted in an
99.27audit. In addition to the annual audited financial report, each insurer shall furnish the
99.28commissioner with a written communication as to any unremediated material weaknesses
99.29in its internal control over financial reporting noted during the audit. The communication
99.30must be prepared by the accountant within 60 days after the filing of the annual audited
99.31financial report, and must contain a description of any unremediated material weakness, as
99.32the term material weakness is defined by SAS No. 115, Communicating Internal Control
99.33Related Matters Identified in an Audit, or its replacement, as of December 31 immediately
99.34preceding so as to coincide with the audited financial report discussed in subdivision 2 in
99.35the insurer's internal control over financial reporting noted by the accountant during the
100.1course of their audit of the financial statements. If no unremediated material weaknesses
100.2were noted, the communication should so state.
100.3The insurer is required to provide a description of remedial actions taken or
100.4proposed to correct unremediated material weaknesses, if the actions are not described in
100.5the accountant's communication.
100.6 Subd. 13. Accountant's letter of qualification. The accountant shall furnish the
100.7insurer in connection with, and for inclusion in, the filing of the annual audited financial
100.8report, a letter stating that the accountant is independent with respect to the insurer and
100.9conforms to the standards of the accountant's profession as contained in the Code of
100.10Professional Conduct of the American Institute of Certified Public Accountants and the
100.11Code of Professional Conduct of the Minnesota Board of Accountancy or similar code;
100.12the background and experience in general, and the experience in audits of insurers of the
100.13staff assigned to the engagement and whether each is an independent certified public
100.14accountant; that the accountant understands that the annual audited financial report and the
100.15opinion on it will be filed in compliance with this statute and that the commissioner will
100.16be relying on this information in the monitoring and regulation of the financial position of
100.17insurers; that the accountant consents to the requirements of subdivision 14 and that the
100.18accountant consents and agrees to make available for review by the commissioner, or the
100.19commissioner's designee or appointed agent, the work papers, as defined in subdivision
100.2014; a representation that the accountant is properly licensed in good standing by the
100.21appropriate state licensing authorities and is a member in good standing in the American
100.22Institute of Certified Public Accountants; and a representation that the accountant complies
100.23with subdivision 7. Nothing in this section prohibits the accountant from utilizing staff
100.24the accountant deems appropriate where use is consistent with the standards prescribed
100.25by generally accepted auditing standards.
100.26 Subd. 14. Availability and maintenance of independent certified public
100.27accountants' work papers. Work papers are the records kept by the independent certified
100.28public accountant of the procedures followed, tests performed, information obtained, and
100.29conclusions reached pertinent to the independent certified public accountant's audit of the
100.30financial statements of an insurer. Work papers may include audit planning documents,
100.31work programs, analyses, memoranda, letters of confirmation and representation,
100.32management letters, abstracts of company documents, and schedules or commentaries
100.33prepared or obtained by the independent certified public accountant in the course of the
100.34audit of the financial statements of an insurer and that support the accountant's opinion.
100.35Every insurer required to file an audited financial report shall require the accountant,
100.36through the insurer, to make available for review by the examiners the work papers
101.1prepared in the conduct of the audit and any communications related to the audit between
101.2the accountant and the insurer. The work papers must be made available at the offices of
101.3the insurer, at the offices of the commissioner, or at any other reasonable place designated
101.4by the commissioner. The insurer shall require that the accountant retain the audit work
101.5papers and communications until the commissioner has filed a report on examination
101.6covering the period of the audit but no longer than seven years after the period reported
101.7upon, provided retention of the working papers beyond the seven years is not required by
101.8other professional or regulatory requirements. In the conduct of the periodic review by
101.9the examiners, it must be agreed that photocopies of pertinent audit work papers may be
101.10made and retained by the commissioner. These copies shall be part of the commissioner's
101.11work papers and must be given the same confidentiality as other examination work papers
101.12generated by the commissioner.
101.13 Subd. 15. Requirements for audit committee. (a) The audit committee must
101.14be directly responsible for the appointment, compensation, and oversight of the work
101.15of any accountant including resolution of disagreements between management and the
101.16accountant regarding financial reporting for the purpose of preparing or issuing the audited
101.17financial report or related work pursuant to this section. Each accountant shall report
101.18directly to the audit committee.
101.19(b) Each member of the audit committee must be a member of the board of directors
101.20of the insurer or a member of the board of directors of an entity elected pursuant to
101.21paragraph (e) and subdivision 1, paragraph (b).
101.22(c) In order to be considered independent for purposes of this section, a member of
101.23the audit committee may not, other than in his or her capacity as a member of the audit
101.24committee, the board of directors, or any other board committee, accept any consulting,
101.25advisory, or other compensatory fee from the entity or be an affiliated person of the entity
101.26or any subsidiary of the entity. However, if law requires board participation by otherwise
101.27nonindependent members, that law shall prevail and such members may participate in the
101.28audit committee and be designated as independent for audit committee purposes, unless
101.29they are an officer or employee of the insurer or one of its affiliates.
101.30(d) If a member of the audit committee ceases to be independent for reasons outside
101.31the member's reasonable control, that person, with notice by the responsible entity to the
101.32state, may remain an audit committee member of the responsible entity until the earlier of
101.33the next annual meeting of the responsible entity or one year from the occurrence of the
101.34event that caused the member to be no longer independent.
101.35(e) To exercise the election of the controlling person to designate the audit committee
101.36for purposes of this section, the ultimate controlling person shall provide written notice to
102.1the commissioners of the affected insurers. Notification must be made timely before the
102.2issuance of the statutory audit report and include a description of the basis for the election.
102.3The election can be changed through notice to the commissioner by the insurer, which
102.4shall include a description of the basis for the change. The election remains in effect for
102.5perpetuity, until rescinded.
102.6(f) The audit committee shall require the accountant that performs for an insurer any
102.7audit required by this section to timely report to the audit committee in accordance with
102.8the requirements of SAS No. 114, The Auditor's Communication with Those Charged
102.9with Governance, or its replacement, including:
102.10(1) all significant accounting policies and material permitted practices;
102.11(2) all material alternative treatments of financial information within statutory
102.12accounting principles that have been discussed with management officials of the insurer,
102.13ramifications of the use of the alternative disclosures and treatments, and the treatment
102.14preferred by the accountant; and
102.15(3) other material written communications between the accountant and the
102.16management of the insurer, such as any management letter or schedule of unadjusted
102.18(g) If an insurer is a member of an insurance holding company system, the reports
102.19required by paragraph (f) may be provided to the audit committee on an aggregate basis
102.20for insurers in the holding company system, provided that any substantial differences
102.21among insurers in the system are identified to the audit committee.
102.22(h) The proportion of independent audit committee members shall meet or exceed
102.23the following criteria:
102.24(1) for companies with prior calendar year direct written and assumed premiums $0
102.25to $300,000,000, no minimum requirements;
102.26(2) for companies with prior calendar year direct written and assumed premiums
102.27over $300,000,000 to $500,000,000, majority of members must be independent; and
102.28(3) for companies with prior calendar year direct written and assumed premiums
102.29over $500,000,000, 75 percent or more must be independent.
102.30(i) An insurer with direct written and assumed premium, excluding premiums
102.31reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less
102.32than $500,000,000 may make application to the commissioner for a waiver from the
102.33requirements of this subdivision based upon hardship. The insurer shall file, with its
102.34annual statement filing, the approval for relief from this subdivision with the states that
102.35it is licensed in or doing business in and the NAIC. If the nondomestic state accepts
103.1electronic filing with the NAIC, the insurer shall file the approval in an electronic format
103.2acceptable to the NAIC.
103.3This subdivision does not apply to foreign or alien insurers licensed in this state or
103.4an insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary
103.5of a SOX compliant entity.
103.6 Subd. 16. Conduct of insurer in connection with the preparation of required
103.7reports and documents. (a) No director or officer of an insurer shall, directly or indirectly:
103.8(1) make or cause to be made a materially false or misleading statement to an
103.9accountant in connection with any audit, review, or communication required under this
103.11(2) omit to state, or cause another person to omit to state, any material fact necessary
103.12in order to make statements made, in light of the circumstances under which the statements
103.13were made, not misleading to an accountant in connection with any audit, review, or
103.14communication required under this section.
103.15(b) No officer or director of an insurer, or any other person acting under the direction
103.16thereof, shall directly or indirectly take any action to coerce, manipulate, mislead, or
103.17fraudulently influence any accountant engaged in the performance of an audit pursuant to
103.18this section if that person knew or should have known that the action, if successful, could
103.19result in rendering the insurer's financial statements materially misleading.
103.20(c) For purposes of paragraph (b), actions that, "if successful, could result in
103.21rendering the insurer's financial statements materially misleading" include, but are not
103.22limited to, actions taken at any time with respect to the professional engagement period to
103.23coerce, manipulate, mislead, or fraudulently influence an accountant:
103.24(1) to issue or reissue a report on an insurer's financial statements that is not
103.25warranted in the circumstances due to material violations of statutory accounting
103.26principles prescribed by the commissioner, generally accepted auditing standards, or
103.27other professional or regulatory standards;
103.28(2) not to perform audit, review, or other procedures required by generally accepted
103.29auditing standards or other professional standards;
103.30(3) not to withdraw an issued report; or
103.31(4) not to communicate matters to an insurer's audit committee.
103.32 Subd. 17. Management's report of internal control over financial reporting.
103.33(a) Every insurer required to file an audited financial report pursuant to this section that
103.34has annual direct written and assumed premiums, excluding premiums reinsured with the
103.35Federal Crop Insurance Corporation and Federal Flood Program, of $500,000,000 or
103.36more, shall prepare a report of the insurer's or group of insurers' internal control over
104.1financial reporting, as these terms are defined in subdivision 1. The report must be filed
104.2with the commissioner along with the communication of internal control related matters
104.3noted in an audit described under subdivision 12. Management's report of internal control
104.4over financial reporting shall be as of December 31 immediately preceding.
104.5(b) Notwithstanding the premium threshold in paragraph (a), the commissioner may
104.6require an insurer to file management's report of internal control over financial reporting
104.7if the insurer is in any RBC level event, or meets any one or more of the standards of
104.8an insurer deemed to be in hazardous financial condition pursuant to sections 60G.20
104.10(c) An insurer or a group of insurers that is:
104.11(1) directly subject to Section 404;
104.12(2) part of a holding company system whose parent is directly subject to Section 404;
104.13(3) not directly subject to Section 404 but is a SOX compliant entity; or
104.14(4) a member of a holding company system whose parent is not directly subject to
104.15Section 404 but is a SOX compliant entity;
104.16may file its or its parent's Section 404 report and an addendum in satisfaction of this
104.17requirement provided that those internal controls of the insurer or group of insurers
104.18having a material impact on the preparation of the insurer's or group of insurers' audited
104.19statutory financial statements, consisting of those items included in subdivision 4,
104.20paragraphs (a), clauses (2) to (6), (b), and (c), were included in the scope of the Section
104.21404 report. The addendum shall be a positive statement by management that there are
104.22no material processes with respect to the preparation of the insurer's or group of insurers'
104.23audited statutory financial statements, consisting of those items included in subdivision 4,
104.24paragraphs (a), clauses (2) to (6), (b), and (c), excluded from the Section 404 report. If
104.25there are internal controls of the insurer or group of insurers that have a material impact on
104.26the preparation of the insurer's or group of insurers' audited statutory financial statements
104.27and those internal controls were not included in the scope of the Section 404 report, the
104.28insurer or group of insurers may either file (i) a report under this subdivision, or (ii) the
104.29Section 404 report and a report under this subdivision for those internal controls that have
104.30a material impact on the preparation of the insurer's or group of insurers' audited statutory
104.31financial statements not covered by the Section 404 report.
104.32(d) Management's report of internal control over financial reporting shall include:
104.33(1) a statement that management is responsible for establishing and maintaining
104.34adequate internal control over financial reporting;
104.35(2) a statement that management has established internal control over financial
104.36reporting and an assertion, to the best of management's knowledge and belief, after diligent
105.1inquiry, as to whether its internal control over financial reporting is effective to provide
105.2reasonable assurance regarding the reliability of financial statements in accordance with
105.3statutory accounting principles;
105.4(3) a statement that briefly describes the approach or processes by which
105.5management evaluated the effectiveness of its internal control over financial reporting;
105.6(4) a statement that briefly describes the scope of work that is included and whether
105.7any internal controls were excluded;
105.8(5) disclosure of any unremediated material weaknesses in the internal control over
105.9financial reporting identified by management as of December 31 immediately preceding.
105.10Management is not permitted to conclude that the internal control over financial reporting
105.11is effective to provide reasonable assurance regarding the reliability of financial statements
105.12in accordance with statutory accounting principles if there is one or more unremediated
105.13material weaknesses in its internal control over financial reporting;
105.14(6) a statement regarding the inherent limitations of internal control systems; and
105.15(7) signatures of the chief executive officer and the chief financial officer or
105.16equivalent position or title.
105.17(e) Management shall document and make available upon financial condition
105.18examination the basis upon which its assertions, required in paragraph (d), are made.
105.19Management may base its assertions, in part, upon its review, monitoring, and testing of
105.20internal controls undertaken in the normal course of its activities.
105.21(1) Management has discretion as to the nature of the internal control framework
105.22used, and the nature and extent of documentation, in order to make its assertion in a
105.23cost-effective manner and, as such, may include assembly of or reference to existing
105.25(2) Management's report on internal control over financial reporting, required by
105.26paragraph (a), and any documentation provided in support of the report during the course
105.27of a financial condition examination, must be kept confidential by the Department of
105.29 Subd. 18. Exemptions. (a) Upon written application of any insurer, the
105.30commissioner may grant an exemption from compliance with the provisions of this
105.31section. In order to receive an exemption, an insurer must demonstrate to the satisfaction
105.32of the commissioner that compliance would constitute a financial or organizational
105.33hardship upon the insurer. An exemption may be granted at any time and from time
105.34to time for specified periods. Within ten days from the denial of an insurer's written
105.35request for an exemption, the insurer may request in writing a hearing on its application
105.36for an exemption. This hearing must be held in accordance with chapter 14. Upon written
106.1application of any insurer, the commissioner may permit an insurer to file annual audited
106.2financial reports on some basis other than a calendar year basis for a specified period. An
106.3exemption may not be granted until the insurer presents an alternative method satisfying
106.4the purposes of this section. Within ten days from a denial of a written request for an
106.5exemption, the insurer may request in writing a hearing on its application. The hearing
106.6must be held in accordance with chapter 14.
106.7(b) This section applies to all insurers, unless otherwise indicated, required to file
106.8an annual audit by subdivision 2, except insurers having less than $1,000,000 of direct
106.9written premiums in this state in any calendar year and fewer than 1,000 policyholders
106.10or certificate holders of directly written policies nationwide at the end of the calendar
106.11year, are exempt from this section for that year, unless the commissioner makes a
106.12specific finding that compliance is necessary for the commissioner to carry out statutory
106.13responsibilities, except that insurers having assumed premiums from reinsurance contracts
106.14or treaties of $1,000,000 or more are not exempt.
106.15 Subd. 19. Canadian and British companies. (a) In the case of Canadian and
106.16British insurers, the annual audited financial report means the annual statement of total
106.17business on the form filed by these companies with their domiciliary supervision authority
106.18and duly audited by an independent chartered accountant.
106.19(b) For these insurers the letter required in subdivision 5 shall state that the
106.20accountant is aware of the requirements relating to the annual audited statement filed
106.21with the commissioner under subdivision 2, and shall affirm that the opinion expressed
106.22is in conformity with those requirements.
106.23 Subd. 20. Commercial mortgage loan valuation procedures. A report of the
106.24independent certified public accountant that performs the audit of an insurer's annual
106.25statement as required under subdivision 2, shall be filed and contain a statement as to
106.26whether anything in connection with the audit came to the accountant's attention that
106.27caused the accountant to believe that the insurer failed to adopt and consistently apply the
106.28valuation procedures as required by sections
106.29 Subd. 21. Examinations. (a) The commissioner or a designated representative shall
106.30determine the nature, scope, and frequency of examinations under this section conducted
106.31by examiners under section
60A.031. These examinations may cover all aspects of the
106.32insurer's assets, condition, affairs, and operations and may include and be supplemented
106.33by audit procedures performed by independent certified public accountants. Scheduling
106.34of examinations will take into account all relevant matters with respect to the insurer's
106.35condition, including results of the National Association of Insurance Commissioners,
106.36Insurance Regulatory Information Systems, changes in management, results of market
107.1conduct examinations, and audited financial reports. The type of examinations performed
107.2by examiners under this section must be compliance examinations, targeted examinations,
107.3and comprehensive examinations.
107.4(b) Compliance examinations will consist of a review of the accountant's workpapers
107.5defined under this section and a general review of the insurer's corporate affairs and
107.6insurance operations to determine compliance with the Minnesota insurance laws and
107.7the rules of the Department of Commerce. The examiners may perform alternative or
107.8additional examination procedures to supplement those performed by the accountant
107.9when the examiners determine that the procedures are necessary to verify the financial
107.10condition of the insurer.
107.11(c) Targeted examinations may cover limited areas of the insurer's operations as
107.12the commissioner may deem appropriate.
107.13(d) Comprehensive examinations will be performed when the report of the
107.14accountant as provided for in subdivision 7, paragraph (b), the notification required by
107.15subdivision 7, paragraph (c), the results of compliance or targeted examinations, or other
107.16circumstances indicate in the judgment of the commissioner or a designated representative
107.17that a complete examination of the condition and affairs of the insurer is necessary.
107.18(e) Upon completion of each targeted, compliance, or comprehensive examination,
107.19the examiner appointed by the commissioner shall make a full and true report on the
107.20results of the examination. Each report shall include a general description of the audit
107.21procedures performed by the examiners and the procedures of the accountant that
107.22the examiners may have utilized to supplement their examination procedures and the
107.23procedures that were performed by the registered independent certified public accountant
107.24if included as a supplement to the examination.
107.25 Subd. 22. Penalties. An annual statement, report, or document related to the
107.26business of insurance must not be filed with the commissioner or issued to the public if it
107.27is signed by anyone who is represented in the instrument as an "accountant," unless the
107.28person is qualified as defined by this section. A violation of this subdivision is a violation
72A.19 and punishable in accordance with section
107.30EFFECTIVE DATE.(a) Domestic insurers retaining a certified public accountant
107.31on the effective date of this section who qualify as independent shall comply with this
107.32section for the year ending December 31, 2010, and each year thereafter unless the
107.33commissioner permits otherwise.
107.34(b) Domestic insurers not retaining a certified public accountant on the effective
107.35date of this section who qualifies as independent shall meet the following schedule for
107.36compliance unless the commissioner permits otherwise.
108.1(1) As of December 31, 2010, file with the commissioner an audited financial report.
108.2(2) For the year ending December 31, 2010, and each year thereafter, such insurers
108.3shall file with the commissioner all reports and communication required by this section.
108.4(c) Foreign insurers shall comply with this section for the year ending December 31,
108.52010, and each year thereafter, unless the commissioner permits otherwise.
108.6(d) The requirements of subdivision 7, paragraph (b), are in effect for audits of the
108.7year beginning January 1, 2010, and thereafter.
108.8(e) The requirements of subdivision 15 are in effect January 1, 2010. An insurer or
108.9group of insurers that is not required to have independent audit committee members or
108.10only a majority of independent audit committee members, as opposed to a supermajority,
108.11because the total written and assumed premium is below the threshold and subsequently
108.12becomes subject to one of the independence requirements due to changes in premium has
108.13one year following the year the threshold is exceeded, but not earlier than January 1,
108.142010, to comply with the independence requirements. Likewise, an insurer that becomes
108.15subject to one of the independence requirements as a result of a business combination
108.16has one calendar year following the date of acquisition or combination to comply with
108.17the independence requirements.
108.18(f) An insurer or group of insurers that is not required to file a report because the total
108.19written premium is below the threshold and subsequently becomes subject to the reporting
108.20requirements has two years following the year the threshold is exceeded, but not earlier
108.21than December 31, 2010, to file a report. Likewise, an insurer acquired in a business
108.22combination has two calendar years following the date of acquisition or combination to
108.23comply with the reporting requirements.
108.24(g) The requirements and provisions contained in this section are effective January
108.251, 2010, and thereafter.
Sec. 12. Minnesota Statutes 2008, section 60B.03, subdivision 15, is amended to read:
Subd. 15. Insolvency.
(a) For an insurer organized under sections
, the inability to pay
any uncontested debt as it becomes due
or any other loss within 30 days after the due date
108.30 specified in the first assessment notice issued pursuant to section
(b) For any other insurer, that it is unable to pay its debts or meet its obligations
as they mature or that its assets do not exceed its liabilities plus the greater of (1) any
capital and surplus required by law to be constantly maintained, or (2) its authorized and
issued capital stock. For purposes of this subdivision, "assets" includes one-half of the
maximum total assessment liability of the policyholders of the insurer, and "liabilities"
includes reserves required by law. For policies issued on the basis of unlimited assessment
liability, the maximum total liability, for purposes of determining solvency only, shall be
deemed to be that amount that could be obtained if there were 100 percent collection of an
assessment at the rate of ten mills per dollar of insurance written by it and in force.
Sec. 13. Minnesota Statutes 2008, section 60L.02, subdivision 3, is amended to read:
Subd. 3. Additional requirements.
(a) In order to be eligible to be governed by
, the insurer must meet the requirements specified under this
(b) The insurer shall:
(1) have been in continuous operation for a minimum of five years; and
(2) maintain a minimum claims-paying, financial strength, or equivalent rating from
at least one nationally recognized statistical rating organization in one of the organization's
three highest rating categories for the time period during which sections
apply to the insurer. For purposes of this subdivision, the rating must be based on a
review of the insurer by the nationally recognized statistical rating organization with the
cooperation of the insurer; must not depend on a guarantee or other credit enhancement
from another entity; and must not be modified or otherwise qualified to show dependence
of the rating on the performance or a contractual obligation of, or the insurer's affiliation
with, another insurer.
(c) The insurer or an affiliate, as defined in section
60D.15, subdivision 2
, of the
insurer shall employ at least one individual as a professional investment manager for
the insurer's investments whom the board of directors or trustees of the insurer finds
is qualified on the basis of experience, education or training, competence, personal
integrity, and who conducts professional investment management activities in accordance
with the Code of Ethics and Standards of Professional Conduct of the Association for
Investment Management and Research. For purposes of complying with this paragraph,
an employee of an affiliate may only be used if they are responsible for managing the
(d) The board of directors of the insurer must annually adopt a resolution finding
that the insurer or an affiliate, as defined in section
60D.15, subdivision 2
, of the insurer
has employed a professional investment manager for the insurer's investments with
sufficient expertise and has sufficient other resources to implement and monitor the
insurer's investment policies and strategies.
(e) In the report required under section
60A.129 60A.1291, subdivision 3 12
the insurer's independent auditor shall not have identified any significant
deficiencies in the insurer's internal control structure related to investments during any of
the five years immediately preceding the date on which sections
apply to the insurer, and as long as sections
apply to the insurer.
Sec. 14. [61A.258] PRENEED INSURANCE PRODUCTS; MINIMUM
110.5MORTALITY STANDARDS FOR RESERVES AND NONFORFEITURE VALUES.
110.6 Subdivision 1. Definitions. For the purposes of this section, the following terms
110.7have the meanings given them:
110.8(1) "2001 CSO Mortality Table (2001 CSO)" means that mortality table, consisting
110.9of separate rates of mortality for male and female lives, developed by the American
110.10Academy of Actuaries CSO Task Force from the Valuation Basic Mortality Table
110.11developed by the Society of Actuaries Individual Life Insurance Valuation Mortality
110.12Task Force, and adopted by the National Association of Insurance Commissioners
110.13(NAIC) in December 2002. The 2001 CSO Mortality Table (2001 CSO) is included in
110.14the Proceedings of the NAIC (2nd Quarter 2002). Unless the context indicates otherwise,
110.15the "2001 CSO Mortality Table (2001 CSO)" includes both the ultimate form of that
110.16table and the select and ultimate form of that table and includes both the smoker and
110.17nonsmoker mortality tables and the composite mortality tables. It also includes both the
110.18age-nearest-birthday and age-last-birthday bases of the mortality tables;
110.19(2) "Ultimate 1980 CSO" means the Commissioners' 1980 Standard Ordinary Life
110.20Valuation Mortality Tables (1980 CSO) without ten-year selection factors, incorporated
110.21into the 1980 amendments to the NAIC Standard Valuation Law approved in December
110.23(3) "preneed insurance" is any life insurance policy or certificate that is issued
110.24in combination with, in support of, with an assignment to, or as a guarantee for a
110.25prearrangement agreement for goods and services to be provided at the time of and
110.26immediately following the death of the insured. Goods and services may include, but
110.27are not limited to embalming, cremation, body preparation, viewing or visitation, coffin
110.28or urn, memorial stone, and transportation of the deceased. The status of the policy or
110.29contract as preneed insurance is determined at the time of issue in accordance with the
110.30policy form filing.
110.31 Subd. 2. Minimum valuation mortality standards. For preneed insurance
110.32contracts, the minimum mortality standard for determining reserve liabilities and
110.33nonforfeiture values for both male and female insureds shall be the Ultimate 1980 CSO.
111.1 Subd. 3. Minimum valuation interest rate standards. (a) The interest rates used
111.2in determining the minimum standard for valuation of preneed insurance shall be the
111.3calendar year statutory valuation interest rates as defined in section 61A.25.
111.4(b) The interest rates used in determining the minimum standard for nonforfeiture
111.5values for preneed insurance shall be the calendar year statutory nonforfeiture interest
111.6rates as defined in section 61A.24.
111.7 Subd. 4. Minimum valuation method standards. (a) The method used in
111.8determining the standard for the minimum valuation of reserves of preneed insurance shall
111.9be the method defined in section 61A.25.
111.10(b) The method used in determining the standard for the minimum nonforfeiture
111.11values for preneed insurance shall be the method defined in section 61A.24.
111.12EFFECTIVE DATE; TRANSITION RULES.(a) This section is effective January
111.131, 2009, and applies to preneed insurance policies and certificates issued on or after that
111.15(b) For preneed insurance policies issued on or after the effective date of this
111.16section and before January 1, 2012, the 2001 CSO may be used as the minimum standard
111.17for reserves and minimum standard for nonforfeiture benefits for both male and female
111.19(c) If an insurer elects to use the 2001 CSO as a minimum standard for any policy
111.20issued on or after the effective date of this section and before January 1, 2012, the insurer
111.21shall provide, as a part of the actuarial opinion memorandum submitted in support of
111.22the company's asset adequacy testing, an annual written notification to the domiciliary
111.23commissioner. The notification shall include:
111.24(1) a complete list of all preneed policy forms that use the 2001 CSO as a minimum
111.26(2) a certification signed by the appointed actuary stating that the reserve
111.27methodology employed by the company in determining reserves for the preneed policies
111.28issued after the effective date and using the 2001 CSO as a minimum standard, develops
111.29adequate reserves (For the purposes of this certification, the preneed insurance policies
111.30using the 2001 CSO as a minimum standard cannot be aggregated with any other
111.32(3) supporting information regarding the adequacy of reserves for preneed insurance
111.33policies issued after the effective date of this section and using the 2001 CSO as a
111.34minimum standard for reserves.
112.1(d) Preneed insurance policies issued on or after January 1, 2012, must use the
112.2Ultimate 1980 CSO in the calculation of minimum nonforfeiture values and minimum
Sec. 15. Minnesota Statutes 2008, section 61B.19, subdivision 4, is amended to read:
Subd. 4. Limitation of benefits.
The benefits for which the association may become
liable shall in no event exceed the lesser of:
(1) the contractual obligations for which the insurer is liable or would have been
liable if it were not an impaired or insolvent insurer; or
(2) subject to the limitation in clause (5), with respect to any one life, regardless of
the number of policies or contracts:
in life insurance death benefits, but not more than
in net cash surrender and net cash withdrawal values for life insurance;
in health insurance benefits, including any net cash surrender
and net cash withdrawal values;
in annuity net cash surrender and net cash withdrawal values;
in present value of annuity benefits for structured settlement
annuities or for annuities in regard to which periodic annuity benefits, for a period of not
less than the annuitant's lifetime or for a period certain of not less than ten years, have
begun to be paid, on or before the date of impairment or insolvency; or
(3) subject to the limitations in clauses (5) and (6), with respect to each individual
resident participating in a retirement plan, except a defined benefit plan, established under
section 401, 403(b), or 457 of the Internal Revenue Code of 1986, as amended through
December 31, 1992, covered by an unallocated annuity contract, or the beneficiaries
of each such individual if deceased, in the aggregate,
in net cash
surrender and net cash withdrawal values;
(4) where no coverage limit has been specified for a covered policy or benefit, the
coverage limit shall be
in present value;
(5) in no event shall the association be liable to expend more than
in the aggregate with respect to any one life under clause (2), items (i), (ii), (iii),
(iv), and clause (4), and any one individual under clause (3);
(6) in no event shall the association be liable to expend more than
with respect to all unallocated annuities of a retirement plan, except a defined
benefit plan, established under section 401, 403(b), or 457 of the Internal Revenue Code
of 1986, as amended through December 31, 1992. If total claims from a plan exceed
shall be prorated among the
(7) for purposes of applying clause (2)(ii) and clause (5), with respect only to
health insurance benefits, the term "any one life" applies to each individual covered by a
health insurance policy;
(8) where covered contractual obligations are equal to or less than the limits stated in
this subdivision, the association will pay the difference between the covered contractual
obligations and the amount credited by the estate of the insolvent or impaired insurer, if
that amount has been determined or, if it has not, the covered contractual limit, subject
to the association's right of subrogation;
(9) where covered contractual obligations exceed the limits stated in this subdivision,
the amount payable by the association will be determined as though the covered
contractual obligations were equal to those limits. In making the determination, the estate
shall be deemed to have credited the covered person the same amount as the estate would
credit a covered person with contractual obligations equal to those limits; or
(10) the following illustrates how the principles stated in clauses (8) and (9) apply.
The example illustrated concerns hypothetical claims subject to the limit stated in clause
(2)(iii). The principles stated in clauses (8) and (9), and illustrated in this clause, apply
to claims subject to any limits stated in this subdivision.
CONTRACTUAL OBLIGATIONS OF:
For purposes of this subdivision, the commissioner shall determine the discount rate
to be used in determining the present value of annuity benefits.
114.14EFFECTIVE DATE.This section is effective the day following final enactment
114.15and applies to member insurers who are first determined to be impaired or insolvent on or
114.16after that date. Member insurers who are subject to an order of impairment in effect on the
114.17effective date but are not declared insolvent until after the effective date shall continue to
114.18be governed by the law in effect prior to the effective date.
Sec. 16. Minnesota Statutes 2008, section 61B.28, subdivision 4, is amended to read:
Subd. 4. Prohibited sales practice.
No person, including an insurer, agent, or
affiliate of an insurer, shall make, publish, disseminate, circulate, or place before the
public, or cause directly or indirectly, to be made, published, disseminated, circulated,
or placed before the public, in any newspaper, magazine, or other publication, or in the
form of a notice, circular, pamphlet, letter, or poster, or over any radio station or television
station, or in any other way, an advertisement, announcement, or statement, written or
oral, which uses the existence of the Minnesota Life and Health Insurance Guaranty
Association for the purpose of sales, solicitation, or inducement to purchase any form of
insurance covered by sections
. The notice required by subdivision 8
is not a violation of this subdivision nor is it a violation of this subdivision to explain
114.30verbally to an applicant or potential applicant the coverage provided by the Minnesota
114.31Life and Health Insurance Guaranty Association at any time during the application process
. This subdivision does not apply to the Minnesota Life and Health Insurance
Guaranty Association or an entity that does not sell or solicit insurance.
A person violating
114.34 this section is guilty of a misdemeanor.
Sec. 17. Minnesota Statutes 2008, section 61B.28, subdivision 8, is amended to read:
Subd. 8. Form.
The form of notice referred to in subdivision 7, paragraph (a),
is as follows:
(insert name, current address, and
telephone number of insurer)
NOTICE CONCERNING POLICYHOLDER RIGHTS IN AN
INSOLVENCY UNDER THE MINNESOTA LIFE AND HEALTH
INSURANCE GUARANTY ASSOCIATION LAW
If the insurer that issued your life, annuity, or health insurance policy becomes
impaired or insolvent, you are entitled to compensation for your policy from the assets of
that insurer. The amount you recover will depend on the financial condition of the insurer.
In addition, residents of Minnesota who purchase life insurance, annuities, or health
insurance from insurance companies authorized to do business in Minnesota are protected,
SUBJECT TO LIMITS AND EXCLUSIONS, in the event the insurer becomes financially
impaired or insolvent. This protection is provided by the Minnesota Life and Health
Insurance Guaranty Association.
Minnesota Life and Health Insurance Guaranty Association
address and telephone number)
The maximum amount the guaranty association will pay for all policies issued on
one life by the same insurer is limited to
. Subject to this
limit, the guaranty association will pay up to
insurance death benefits,
in net cash surrender and net cash withdrawal
values for life insurance,
in health insurance benefits, including any
net cash surrender and net cash withdrawal values,
in annuity net
cash surrender and net cash withdrawal values,
in present value of
annuity benefits for annuities which are part of a structured settlement or for annuities
in regard to which periodic annuity benefits, for a period of not less than the annuitant's
lifetime or for a period certain of not less than ten years, have begun to be paid on or
before the date of impairment or insolvency, or if no coverage limit has been specified
for a covered policy or benefit, the coverage limit shall be
value. Unallocated annuity contracts issued to retirement plans, other than defined benefit
plans, established under section 401, 403(b), or 457 of the Internal Revenue Code of
1986, as amended through December 31, 1992, are covered up to
net cash surrender and net cash withdrawal values, for Minnesota residents covered by
the plan provided, however, that the association shall not be responsible for more than
in claims from all Minnesota residents covered by the plan. If
total claims exceed
shall be prorated
among all claimants. These are the maximum claim amounts. Coverage by the guaranty
association is also subject to other substantial limitations and exclusions and requires
continued residency in Minnesota. If your claim exceeds the guaranty association's limits,
you may still recover a part or all of that amount from the proceeds of the liquidation of
the insolvent insurer, if any exist. Funds to pay claims may not be immediately available.
The guaranty association assesses insurers licensed to sell life and health insurance in
Minnesota after the insolvency occurs. Claims are paid from this assessment.
THE COVERAGE PROVIDED BY THE GUARANTY ASSOCIATION IS NOT
A SUBSTITUTE FOR USING CARE IN SELECTING INSURANCE COMPANIES
THAT ARE WELL MANAGED AND FINANCIALLY STABLE. IN SELECTING AN
INSURANCE COMPANY OR POLICY, YOU SHOULD NOT RELY ON COVERAGE
BY THE GUARANTY ASSOCIATION.
THIS NOTICE IS REQUIRED BY MINNESOTA STATE LAW TO ADVISE
POLICYHOLDERS OF LIFE, ANNUITY, OR HEALTH INSURANCE POLICIES
OF THEIR RIGHTS IN THE EVENT THEIR INSURANCE CARRIER BECOMES
FINANCIALLY INSOLVENT. THIS NOTICE IN NO WAY IMPLIES THAT THE
COMPANY CURRENTLY HAS ANY TYPE OF FINANCIAL PROBLEMS. ALL LIFE,
ANNUITY, AND HEALTH INSURANCE POLICIES ARE REQUIRED TO PROVIDE
Additional language may be added to the notice if approved by the commissioner
prior to its use in the form. This section does not apply to fraternal benefit societies
regulated under chapter 64B.
Sec. 18. Minnesota Statutes 2008, section 67A.01, is amended to read:
116.2667A.01 NUMBER OF MEMBERS REQUIRED, PROPERTY AND
116.28 Subdivision 1. Number of members.
It shall be lawful for any number of
persons, not less than 25, residing in adjoining
in this state, who shall
collectively own property worth at least $50,000, to form themselves into a corporation
for mutual insurance against loss or damage by the perils listed in section
(b) Except as otherwise provided in this section, the company shall operate in no
116.33 more than 150 adjoining townships in the aggregate at the same time. The company may,
116.34 if approval has been granted by the commissioner, operate in more than 150 adjoining
116.35 townships in the aggregate at the same time, subject to a maximum of 300 townships.
117.1 If the company confines its operations to one county it may transact business in that
117.2 county by so providing in its certificate of incorporation. In case of merger of two or
117.3 more companies having contiguous territories, the surviving company in the merger may
117.4 transact business in the entire territory of the merged companies, but the territory of the
117.5 surviving company in the merger must not be larger than 300 townships.
117.6 Subd. 2. Authorized territory. (a) A township mutual fire insurance company may
117.7be authorized to write business in up to nine adjoining counties in the aggregate at the
117.8same time. If policyholder surplus is at least $500,000 as reported in the company's last
117.9annual financial statement filed with the commissioner, the company may, if approval has
117.10been granted by the commissioner, be authorized to write business in ten or more counties
117.11in the aggregate at the same time, subject to a maximum of 20 adjoining counties, in
117.12accordance with the following schedule:
117.26(b) In the case of a merger of two or more companies having contiguous territories,
117.27the surviving company in the merger may transact business in the entire territory of the
117.28merged companies; however, the territory of the surviving company in the merger may not
117.29be larger than 20 counties.
117.30(c) A township mutual fire insurance company may write new and renewal insurance
117.31on property in cities within the company's authorized territory having a population less
117.32than 25,000. A township mutual may continue to write new and renewal insurance once
117.33the population increases to 25,000 or greater provided that amended and restated articles
117.34are filed with the commissioner along with a certification that such city's population has
117.35increased to 25,000 or greater.
117.36(d) A township mutual fire insurance company may write new and renewal insurance
117.37on property in cities within the company's authorized territory with a population of 25,000
117.38or greater, but less than 150,000, if approval has been granted by the commissioner.
118.1No township mutual fire insurance company shall insure any property in cities with a
118.2population of 150,000 or greater.
118.3(e) If a township mutual fire insurance company provides evidence to the
118.4commissioner that the company had insurance in force on December 31, 2007, in a city
118.5within the company's authorized territory with a population of 25,000 or greater, but less
118.6than 150,000, the company may write new and renewal insurance on property in that city
118.7provided that the company files amended and restated articles by July 31, 2010, naming
Sec. 19. Minnesota Statutes 2008, section 67A.06, is amended to read:
118.1067A.06 POWERS OF CORPORATION.
Every corporation formed under the provisions of sections
shall have power:
(1) to have succession by its corporate name for the time stated in its certificate of
(2) to sue and be sued in any court;
(3) to have and use a common seal and alter the same at pleasure;
(4) to acquire, by purchase or otherwise, and to hold, enjoy, improve, lease,
encumber, and convey all real and personal property necessary for the purpose of its
organization, subject to such limitations as may be imposed by law or by its articles of
(5) to elect or appoint in such manner as it may determine all necessary or proper
officers, agents, boards, and committees, fix their compensation, and define their powers
(6) to make and amend consistently with law bylaws providing for the management
of its property and the regulation and government of its affairs;
(7) to wind up and liquidate its business in the manner provided by chapter 60B;
(8) to indemnify certain persons against expenses and liabilities as provided in
. In applying section
for this purpose, the term "members"
shall be substituted for the terms "shareholders" and "stockholders
118.30(9) to eliminate or limit a director's personal liability to the company or its members
118.31for monetary damages for breach of fiduciary duty as a director. A company shall not
118.32eliminate or limit the liability of a director:
118.33(i) for breach of loyalty to the company or its members;
118.34(ii) for acts or omissions made in bad faith or with intentional misconduct or
118.35knowing violation of law;
119.1(iii) for transactions from which the director derived an improper personal benefit; or
119.2(iv) for acts or omissions occurring before the date that the provisions in the articles
119.3eliminating or limiting liability become effective.
Sec. 20. Minnesota Statutes 2008, section 67A.07, is amended to read:
119.567A.07 PRINCIPAL OFFICE.
The principal office of a township mutual fire insurance company shall be located in
township or in a city in a township county
in which the company is authorized to do
Sec. 21. Minnesota Statutes 2008, section 67A.14, subdivision 1, is amended to read:
Subdivision 1. Kinds of property; property outside authorized territory.
Township mutual fire insurance companies may insure qualified property. Qualified
property means dwellings, household goods, appurtenant structures, farm buildings, farm
personal property, churches, church personal property, county fair buildings, community
and township meeting halls and their usual contents.
(b) Township mutual fire insurance companies may extend coverage to include
an insured's secondary property if the township mutual fire insurance company covers
qualified property belonging to the insured. Secondary property means any real or
personal property that is not considered qualified property for a township mutual fire
insurance company to cover under this chapter. The maximum amount of coverage that a
township mutual fire insurance company may write for secondary property is 25 percent of
the total limit of liability of the policy issued to an insured covering the qualified property.
119.22(c) A township mutual fire insurance company may insure any real or personal
119.23property, including qualified or secondary property, subject to the limitations in
119.24subdivision 1, paragraph (b), located outside the limits of the territory in which the
119.25company is authorized by its certificate or articles of incorporation to transact business, if
119.26the company is already covering qualified property belonging to the insured, inside the
119.27limits of the company's territory.
119.28(d) A township mutual fire insurance company may insure property temporarily
119.29outside of the authorized territory of the township mutual fire insurance company.
Sec. 22. Minnesota Statutes 2008, section 67A.14, subdivision 7, is amended to read:
Subd. 7. Amount of insurable risk.
No township mutual fire
shall insure or reinsure a single risk or hazard in a larger sum than the greater of $3,000, or
one tenth of its net assets plus two tenths of a mill of its insurance in force; provided that
no portion of any such risk or hazard which shall have been reinsured, as authorized by
the laws of this state, shall be included in determining the limitation of risk prescribed
by this subdivision.
Sec. 23. [67A.175] SURPLUS REQUIREMENTS.
120.5 Subdivision 1. Minimum. Township mutual fire insurance companies shall maintain
120.6a minimum policyholders' surplus of $300,000 at all times.
120.7 Subd. 2. Corrective action plan; filing. A township mutual fire insurance company
120.8that falls below the $300,000 minimum surplus requirement must file a corrective action
120.9plan with the commissioner. The plan shall state how the company will correct its surplus
120.10deficiency. The plan must be submitted within 45 days of the company falling below the
120.11minimum surplus level.
120.12 Subd. 3. Corrective action plan; commissioner's notification. Within 30 days
120.13after the submission by a township mutual fire insurance company of a corrective action
120.14plan, the commissioner shall notify the insurer whether the plan may be implemented or
120.15is, in the judgment of the commissioner, unsatisfactory. If the commissioner determines
120.16the plan is unsatisfactory, the notification to the company must set forth the reasons for the
120.17determination, and may set forth proposed revisions that will render the plan satisfactory
120.18in the judgment of the commissioner. Upon notification from the commissioner, the
120.19insurer shall prepare a revised corrective action plan that may incorporate by reference
120.20any revisions proposed by the commissioner, and shall submit the revised plan to the
120.21commissioner within 45 days.
Sec. 24. Minnesota Statutes 2008, section 67A.18, subdivision 1, is amended to read:
Subdivision 1. By member.
Any member may terminate membership in the
company by giving written notice or returning the member's policy to the secretary
120.25 paying the withdrawing member's share of all existing claims
Sec. 25. REPEALER.
120.27 Subdivision 1. Annual audits. Minnesota Statutes 2008, section 60A.129, is
120.29 Subd. 2. Township mutual insured properties, joint or partial risks, and
120.30assessments. Minnesota Statutes 2008, sections 67A.14, subdivision 5; 67A.17; and
120.3167A.19, are repealed.
120.32 Subd. 3. Banking procedures; real estate tax records. Minnesota Rules, part
120.332675.2180, is repealed.
121.1 Subd. 4. Debt prorating companies. Minnesota Rules, parts 2675.7100;
121.22675.7110; 2675.7120; 2675.7130; and 2675.7140, are repealed.
121.3 Subd. 5. Guaranty association; inflation indexing. Minnesota Statutes 2008,
121.4section 61B.19, subdivision 6, is repealed.
121.6DEBT MANAGEMENT SERVICES
Section 1. Minnesota Statutes 2008, section 45.011, subdivision 1, is amended to read:
Subdivision 1. Scope.
As used in chapters 45 to 83, 155A, 332, 332A, 332B,
345, and 359, and sections
, unless the context indicates otherwise, the terms defined in this section have
the meanings given them.
Sec. 2. Minnesota Statutes 2008, section 46.04, subdivision 1, is amended to read:
Subdivision 1. General.
The commissioner of commerce, referred to in chapters 46
332A, and 332B
as the commissioner, is vested with all the powers,
authority, and privileges which, prior to the enactment of Laws 1909, chapter 201, were
conferred by law upon the public examiner, and shall take over all duties in relation to
state banks, savings banks, trust companies, savings associations, and other financial
institutions within the state which, prior to the enactment of chapter 201, were imposed
upon the public examiner. The commissioner of commerce shall exercise a constant
supervision, either personally or through the examiners herein provided for, over the
books and affairs of all state banks, savings banks, trust companies, savings associations,
credit unions, industrial loan and thrift companies, and other financial institutions doing
business within this state; and shall, through examiners, examine each financial institution
at least once every 24 calendar months. In satisfying this examination requirement, the
commissioner may accept reports of examination prepared by a federal agency having
comparable supervisory powers and examination procedures. With the exception of
industrial loan and thrift companies which do not have deposit liabilities and licensed
regulated lenders, it shall be the principal purpose of these examinations to inspect and
verify the assets and liabilities of each and so far investigate the character and value of
the assets of each institution as to determine with reasonable certainty that the values are
correctly carried on its books. Assets and liabilities shall be verified in accordance with
methods of procedure which the commissioner may determine to be adequate to carry out
the intentions of this section. It shall be the further purpose of these examinations to
assess the adequacy of capital protection and the capacity of the institution to meet usual
and reasonably anticipated deposit withdrawals and other cash commitments without
resorting to excessive borrowing or sale of assets at a significant loss, and to investigate
each institution's compliance with applicable laws and rules. Based on the examination
findings, the commissioner shall make a determination as to whether the institution
is being operated in a safe and sound manner. None of the above provisions limits the
commissioner in making additional examinations as deemed necessary or advisable. The
commissioner shall investigate the methods of operation and conduct of these institutions
and their systems of accounting, to ascertain whether these methods and systems are
in accordance with law and sound banking principles. The commissioner may make
requirements as to records as deemed necessary to facilitate the carrying out of the
commissioner's duties and to properly protect the public interest. The commissioner may
examine, or cause to be examined by these examiners, on oath, any officer, director,
trustee, owner, agent, clerk, customer, or depositor of any financial institution touching
the affairs and business thereof, and may issue, or cause to be issued by the examiners,
subpoenas, and administer, or cause to be administered by the examiners, oaths. In
case of any refusal to obey any subpoena issued under the commissioner's direction,
the refusal may at once be reported to the district court of the district in which the bank
or other financial institution is located, and this court shall enforce obedience to these
subpoenas in the manner provided by law for enforcing obedience to subpoenas of the
court. In all matters relating to official duties, the commissioner of commerce has the
power possessed by courts of law to issue subpoenas and cause them to be served and
enforced, and all officers, directors, trustees, and employees of state banks, savings banks,
trust companies, savings associations, and other financial institutions within the state,
and all persons having dealings with or knowledge of the affairs or methods of these
institutions, shall afford reasonable facilities for these examinations, make returns and
reports to the commissioner of commerce as the commissioner may require; attend and
answer, under oath, the commissioner's lawful inquiries; produce and exhibit any books,
accounts, documents, and property as the commissioner may desire to inspect, and in all
things aid the commissioner in the performance of duties.
Sec. 3. Minnesota Statutes 2008, section 46.05, is amended to read:
122.3146.05 SUPERVISION OVER FINANCIAL INSTITUTIONS.
Every state bank, savings bank, trust company, savings association, debt management
services provider, debt settlement services provider,
and other financial institutions shall
be at all times under the supervision and subject to the control of the commissioner
of commerce. If, and whenever in the performance of duties, the commissioner finds
it necessary to make a special investigation of any financial institution under the
commissioner's supervision, and other than a complete examination, the commissioner
shall make a charge therefor to include only the necessary costs thereof. Such a fee shall
be payable to the commissioner on the commissioner's making a request for payment.
Sec. 4. Minnesota Statutes 2008, section 46.131, subdivision 2, is amended to read:
Subd. 2. Assessment authority.
Each bank, trust company, savings bank, savings
association, regulated lender, industrial loan and thrift company, credit union, motor
vehicle sales finance company, debt management services provider, debt settlement
and insurance premium finance company organized under the laws of
this state or required to be administered by the commissioner of commerce shall pay
into the state treasury its proportionate share of the cost of maintaining the Department
Sec. 5. Minnesota Statutes 2008, section 325E.311, subdivision 6, is amended to read:
Subd. 6. Telephone solicitation.
"Telephone solicitation" means any voice
communication over a telephone line for the purpose of encouraging the purchase or
rental of, or investment in, property, goods, or services, whether the communication is
made by a live operator, through the use of an automatic dialing-announcing device as
defined in section
325E.26, subdivision 2
, or by other means. Telephone solicitation
does not include communications:
(1) to any residential subscriber with that subscriber's prior express invitation or
(2) by or on behalf of any person or entity with whom a residential subscriber has a
prior or current business or personal relationship.
Telephone solicitation also does not include communications if the caller is identified by a
caller identification service and the call is:
(i) by or on behalf of an organization that is identified as a nonprofit organization
under state or federal law, unless the organization is a debt management services provider
defined in section
332A.02 or a debt settlement services provider defined in section
(ii) by a person soliciting without the intent to complete, and who does not in
fact complete, the sales presentation during the call, but who will complete the sales
presentation at a later face-to-face meeting between the solicitor who makes the call
and the prospective purchaser; or
(iii) by a political party as defined under section
200.02, subdivision 6
Sec. 6. Minnesota Statutes 2008, section 332A.02, is amended by adding a subdivision
124.3 Subd. 2a. Advertise. "Advertise" means to solicit business through any means or
Sec. 7. Minnesota Statutes 2008, section 332A.02, subdivision 5, is amended to read:
Subd. 5. Controlling or affiliated party.
"Controlling or affiliated party" means
any person or entity that controls or is controlled,
directly or indirectly
124.8 controlled by
, or is
under common control with another person. Controlling or affiliated
124.9party includes, but is not limited to, employees, officers, independent contractors,
124.10corporations, partnerships, and limited liability corporations.
Sec. 8. Minnesota Statutes 2008, section 332A.02, is amended by adding a subdivision
124.13 Subd. 5a. Creditor. "Creditor" means any party:
124.14(1) named by the debtor as a creditor in the debt management services plan or debt
124.15management services agreement;
124.16(2) that acquires or holds the debt; or
124.17(3) to whom interactions with the debt management services is assigned in relation
124.18to the debt listed in the debt management services plan or debt management services
Sec. 9. Minnesota Statutes 2008, section 332A.02, subdivision 8, is amended to read:
Subd. 8. Debt management services provider.
"Debt management services
provider" means any person offering or providing debt management services to a debtor
domiciled in this state, regardless of whether or not a fee is charged for the services and
regardless of whether the person maintains a physical presence in the state. This term
124.25includes any person to whom debt management services are delegated, and
include services performed by the following when engaged in the regular course of their
respective businesses and professions:
(1) attorneys at law, escrow agents, accountants, broker-dealers in securities;
(2) state or national banks, credit unions,
trust companies, savings associations,
title insurance companies, insurance companies, and all other lending institutions duly
authorized to transact business in Minnesota
, provided no fee is charged for the service
(3) persons who, as employees on a regular salary or wage of an employer not
engaged in the business of debt management, perform credit services for their employer;
(4) public officers acting in their official capacities and persons acting as a debt
management services provider pursuant to court order;
(5) any person while performing services incidental to the dissolution, winding up,
or liquidation of a partnership, corporation, or other business enterprise;
(6) the state, its political subdivisions, public agencies, and their employees;
credit unions and
collection agencies, provided
no fee is charged for the service
125.7that the services are provided to a creditor
(8) "qualified organizations" designated as representative payees for purposes of the
Social Security and Supplemental Security Income Representative Payee System and the
federal Omnibus Budget Reconciliation Act of 1990, Public Law 101-508;
(9) accelerated mortgage payment providers. "Accelerated mortgage payment
providers" are persons who, after satisfying the requirements of sections
, receive funds to make mortgage payments to a lender or lenders, on behalf
of mortgagors, in order to exceed regularly scheduled minimum payment obligations
under the terms of the indebtedness. The term does not include: (i) persons or entities
described in clauses (1) to (8); (ii) mortgage lenders or servicers, industrial loan and
thrift companies, or regulated lenders under chapter 56; or (iii) persons authorized to
make loans under section
47.20, subdivision 1
. For purposes of this clause and sections
, "lender" means the original lender or that lender's assignee, whichever
is the current mortgage holder;
(10) trustees, guardians, and conservators; and
(11) debt settlement services
Sec. 10. Minnesota Statutes 2008, section 332A.02, subdivision 9, is amended to read:
Subd. 9. Debt management services.
"Debt management services" means the
provision of any
one or more of the following
in connection with debt incurred
125.26 primarily for personal, family, or household services:
125.27 (1) managing the financial affairs of an individual by distributing income or money
125.28 to the individual's creditors;
125.29 (2) receiving funds for the purpose of distributing the funds among creditors in
125.30 payment or partial payment of obligations of a debtor; or
125.31 (3) adjusting, prorating, pooling, or liquidating the indebtedness of a debtor whereby
125.32a debt management services provider assists in managing the financial affairs of a debtor
125.33by distributing periodic payments to the debtor's creditors from funds that the debt
125.34management services provider receives from the debtor and where the primary purpose of
126.1the services is to effect full repayment of debt incurred primarily for personal, family, or
Any person so engaged or holding out as so engaged is deemed to be engaged in the
provision of debt management services regardless of whether or not a fee is charged for
Sec. 11. Minnesota Statutes 2008, section 332A.02, subdivision 10, is amended to read:
Subd. 10. Debtor.
"Debtor" means the person for whom the debt
126.8 is management services are
Sec. 12. Minnesota Statutes 2008, section 332A.02, subdivision 13, is amended to read:
Subd. 13. Debt settlement services provider.
"Debt settlement services
means any person engaging in or holding out as engaging in the business of negotiating,
126.12 adjusting, or settling debt incurred primarily for personal, family, or household purposes
126.13 without holding or receiving the debtor's funds or personal property and without paying
126.14 the debtor's funds to, or distributing the debtor's property among, creditors has the
126.15meaning given in section 332B.02, subdivision 11
The term shall not include persons
126.16 listed in subdivision 8, clauses (1) to (10).
Sec. 13. Minnesota Statutes 2008, section 332A.04, subdivision 6, is amended to read:
Subd. 6. Right of action on bond.
If the registrant has failed to account to a debtor
or distribute to the debtor's creditors the amounts required by this chapter
and, or has
126.20failed to perform any of the services promised in
the debt management services agreement
between the debtor and registrant
, the registrant is in default.
The debtor or the debtor's
legal representative or receiver, the commissioner, or the attorney general, shall have, in
addition to all other legal remedies, a right of action in the name of the debtor on the bond
or the security given under this section, for loss suffered by the debtor, not exceeding the
face amount of the bond or security, and without the necessity of joining the registrant
in the suit or action based on the default
Sec. 14. Minnesota Statutes 2008, section 332A.08, is amended to read:
126.28332A.08 DENIAL OF REGISTRATION.
The commissioner, with notice to the applicant by certified mail sent to the address
listed on the application, may deny an application for a registration upon finding that
(1) has submitted an application required under section
incorrect, misleading, incomplete, or materially untrue information. An application is
incomplete if it does not include all the information required in section
(2) has failed to pay any fee or pay or maintain any bond required by this chapter,
or failed to comply with any order, decision, or finding of the commissioner made under
and within the authority of this chapter;
(3) has violated any provision of this chapter or any rule or direction lawfully made
by the commissioner under and within the authority of this chapter;
(4) or any controlling or affiliated party has ever been convicted of a crime or found
civilly liable for an offense involving moral turpitude, including forgery, embezzlement,
obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any
other similar offense or violation, or any violation of a federal or state law or regulation
in connection with activities relating to the rendition of debt management services or
any consumer fraud, false advertising, deceptive trade practices, or similar consumer
(5) has had a registration or license previously revoked or suspended in this state or
any other state or the applicant or licensee has been permanently or temporarily enjoined
by any court of competent jurisdiction from engaging in or continuing any conduct or
practice involving any aspect of the debt management services provider business; or
any controlling or affiliated party has been an officer, director, manager, or shareholder
owning more than a ten percent interest in a debt management services provider whose
registration has previously been revoked or suspended in this state or any other state, or
who has been permanently or temporarily enjoined by any court of competent jurisdiction
from engaging in or continuing any conduct or practice involving any aspect of the debt
management services provider business;
(6) has made any false statement or representation to the commissioner;
(7) is insolvent;
(8) refuses to fully comply with an investigation or examination of the debt
management services provider by the commissioner;
(9) has improperly withheld, misappropriated, or converted any money or properties
received in the course of doing business;
(10) has failed to have a trust account with an actual cash balance equal to or greater
than the sum of the escrow balances of each debtor's account;
(11) has defaulted in making payments to creditors on behalf of debtors as required
by agreements between the provider and debtor;
(12) has used fraudulent, coercive, or dishonest practices, or demonstrated
incompetence, untrustworthiness, or financial irresponsibility in this state or elsewhere; or
128.3(13) has been shown to have engaged in a pattern of failing to perform the services
Sec. 15. Minnesota Statutes 2008, section 332A.10, is amended to read:
128.6332A.10 WRITTEN DEBT MANAGEMENT SERVICES AGREEMENT.
Subdivision 1. Written agreement required. (a)
A debt management services
provider may not perform any debt management services or receive any money related
to a debt management services plan until the provider has obtained a debt management
services agreement that contains all terms of the agreement between the debt management
services provider and the debtor.
A debt management services agreement must:
be in writing, dated, and signed by the debt management services provider and
128.15(2) conspicuously indicate whether or not the debt management services provider
128.16is registered with the Minnesota Department of Commerce and include any registration
128.18(3) be written in the debtor's primary language if the debt management services
128.19provider advertised in that language
The registrant must furnish the debtor with a copy of the signed contract upon
Subd. 2. Actions prior to written agreement.
No person may provide debt
management services for a debtor or execute a debt management services agreement
unless the person first has:
(1) provided the debtor individualized counseling and educational information
that, at a minimum, addresses managing household finances, managing credit and debt,
budgeting, and personal savings strategies;
(2) prepared in writing and provided to the debtor, in a form that the debtor may
keep, an individualized financial analysis and a proposed debt management services
plan listing the debtor's known debts with specific recommendations regarding actions
the debtor should take to reduce or eliminate the amount of the debts, including written
disclosure that debt management services are not suitable for all debtors and that there are
other ways, including bankruptcy, to deal with indebtedness;
(3) made a determination supported by an individualized financial analysis that the
debtor can reasonably meet the requirements of the proposed debt management services
plan and that there is a net tangible benefit to the debtor of entering into the proposed debt
management services plan;
(4) prepared, in a form the debtor may keep, a written list identifying all known
creditors of the debtor that the provider reasonably expects to participate in the plan
and the creditors, including secured creditors, that the provider reasonably expects not
to participate; and
129.7(5) disclosed, in addition to the written disclosure on the agreement required under
129.8subdivision 1, whether or not the debt management services provider is registered with the
129.9Minnesota Department of Commerce and any registration number
Subd. 3. Required terms.
(a) Each debt management services agreement must
contain the following terms, which must be disclosed prominently and clearly in bold print
on the front page of the agreement, segregated by bold lines from all other information on
(1) the origination
fee amount to be paid by the debtor and whether all or a portion
is refundable or nonrefundable;
(2) the monthly fee amount or percentage to be paid by the debtor; and
(3) the total amount of fees reasonably anticipated to be paid by the debtor over
the term of the agreement.
(b) Each debt management services agreement must also contain the following:
(1) a disclosure that if the amount of debt owed is increased by interest, late fees,
over the limit fees, and other amounts imposed by the creditors, the length of the debt
management services agreement will be extended and remain in force and that the total
dollar charges agreed upon may increase at the rate agreed upon in the original contract
(2) a prominent statement describing the terms upon which the debtor may cancel
the contract as set forth in section
(3) a detailed description of all services to be performed by the debt management
services provider for the debtor;
(4) the debt management services provider's refund policy; and
(5) the debt management services provider's principal business address and the name
and address of its agent in this state authorized to receive service of process.
Subd. 4. Prohibited terms.
The following terms shall not be included in the debt
management services agreement:
(1) a hold harmless clause;
(2) a confession of judgment, or a power of attorney to confess judgment against the
debtor or appear as the debtor in any judicial proceeding;
(3) a waiver of the right to a jury trial, if applicable, in any action brought by
or against a debtor;
(4) an assignment of or an order for payment of wages or other compensation for
(5) a provision in which the debtor agrees not to assert any claim or defense arising
out of the debt management services agreement;
(6) a waiver of any provision of this chapter or a release of any obligation required
to be performed on the part of the debt management services provider; or
(7) a mandatory arbitration clause or a clause selecting a law other than the laws of
130.10Minnesota under which the debt management services agreement or any other dispute
130.11involving the provision of debt management services is governed or enforced
Subd. 5. New debt management services agreements; modification of existing
(a) Separate and additional debt management services agreements that
comply with this chapter may be entered into by the debt management services provider
and the debtor provided that no additional
fee may be charged by the
debt management services provider.
(b) Any modification of an existing debt management services agreement, including
any increase in the number or amount of debts included in the debt management
, must be in writing and signed by both parties, except that the signature
of the debtor is not required if:
(1) a creditor is added to or deleted from a debt management services agreement
at the request of the debtor or a debtor voluntarily increases the amount of a payment,
provided the debt management services provider must provide an updated payment
schedule to the debtor within seven days; or
(2) the payment amount to a creditor in the agreement increases by $10 or less
and the total payment amount to all creditors increases a total of $20 or less as a result
of incorrect or incomplete information provided by the debtor regarding the amount of
debt owed a creditor, provided the debt management services provider must notify the
debtor of the increase within seven days.
No fees, charges, or other consideration may be demanded from the debtor for
the modification, other than an increase in the amount of the monthly maintenance fee
established in the original debt management services agreement.
Sec. 16. Minnesota Statutes 2008, section 332A.11, subdivision 2, is amended to read:
Subd. 2. Notice of debtor's right to cancel.
A debt management services
agreement must contain, on its face, in an easily readable
adjacent to the space for signature by the debtor, the following notice: "Right To Cancel:
You have the right to cancel this contract at any time on ten days' written notice."
Sec. 17. Minnesota Statutes 2008, section 332A.14, is amended to read:
A registrant No debt management services provider
(1) purchase from a creditor any obligation of a debtor;
(2) use, threaten to use, seek to have used, or seek to have threatened the use of any
legal process, including but not limited to garnishment and repossession of personal
property, against any debtor while the debt management services agreement between the
registrant and the debtor remains executory;
(3) advise, counsel, or encourage
a debtor to stop paying a creditor
until a debt
131.12 management services plan is in place, or imply, infer, encourage, or in any other way
131.13indicate, that it is advisable to stop paying a creditor
131.14(4) sanction or condone the act by a debtor of ceasing payments or imply, infer,
131.15or in any manner indicate that the act of ceasing payments is advisable or beneficial to
require as a condition of performing debt management services the purchase
of any services, stock, insurance, commodity, or other property or any interest therein
either by the debtor or the registrant;
compromise any debts unless the prior written or contractual
approval of the
debtor has been obtained to such compromise and unless such compromise inures solely
to the benefit of the debtor;
receive from any debtor as security or in payment of any fee a promissory
note or other promise to pay or any mortgage or other security, whether as to real or
lend money or provide credit to any debtor if any interest or fee is charged,
or directly or indirectly collect any fee for referring, advising, procuring, arranging, or
assisting a consumer in obtaining any extension of credit or other debtor service from a
lender or debt management services provider;
structure a debt management services agreement that would result in negative
amortization of any debt in the plan;
engage in any unfair, deceptive, or unconscionable act or practice in
connection with any service provided to any debtor;
offer, pay, or give any material cash fee, gift, bonus, premium, reward, or
other compensation to any person for referring any prospective customer to the registrant
or for enrolling a debtor in a debt management services plan, or provide any other
incentives for employees or agents of the debt management services provider to induce
debtors to enter into a debt management services plan;
receive any cash, fee, gift, bonus, premium, reward, or other compensation
from any person other than the debtor or a person on the debtor's behalf in connection
with activities as a registrant, provided that this paragraph does not apply to a registrant
which is a bona fide nonprofit corporation duly organized under chapter 317A or under
the similar laws of another state;
enter into a contract with a debtor unless a thorough written budget analysis
indicates that the debtor can reasonably meet the requirements of the financial adjustment
plan and will be benefited by the plan;
in any way charge or purport to charge or provide any debtor credit
insurance in conjunction with any contract or agreement involved in the debt management
operate or employ a person who is an employee or owner of a collection
agency or process-serving business; or
solicit, demand, collect, require, or attempt to require payment of a sum
that the registrant states, discloses, or advertises to be a voluntary contribution to a debt
132.19management services provider or designee
from the debtor.
Sec. 18. Minnesota Statutes 2008, section 332A.16, is amended to read:
132.21332A.16 ADVERTISEMENT OF DEBT MANAGEMENT SERVICES
No debt management services provider may make false, deceptive, or misleading
statements or omissions about the rates, terms, or conditions of an actual or proposed
debt management services plan or its debt management services, or create the likelihood
of consumer confusion or misunderstanding regarding its services, including but not
limited to the following:
(1) represent that the debt management services provider is a nonprofit,
not-for-profit, or has similar status or characteristics if some or all of the debt management
services will be provided by a for-profit company that is a controlling or affiliated party to
the debt management services provider; or
(2) make any communication that gives the impression that the debt management
services provider is acting on behalf of a government agency.
Sec. 19. [332B.02] DEFINITIONS.
133.1 Subdivision 1. Scope. Unless a different meaning is clearly indicated by the context,
133.2for the purposes of this chapter, the terms defined in this section have the meanings given
133.4 Subd. 2. Accreditation. "Accreditation" means certification as an accredited credit
133.5counseling provider by the Council on Accreditation, the Bureau Veritas Certification
133.6North America, Inc., or BSI Management Systems America, Inc.
133.7 Subd. 3. Advertise. "Advertise" means to solicit business through any means or
133.9 Subd. 4. Aggregate debt. "Aggregate debt" means the total of principal and interest
133.10that is owed by the debtor to the creditors at the time of execution of the debt settlement
133.12 Subd. 5. Attorney general. "Attorney general" means the attorney general of the
133.13state of Minnesota.
133.14 Subd. 6. Commissioner. "Commissioner" means the commissioner of commerce.
133.15 Subd. 7. Controlling or affiliated party. "Controlling or affiliated party" means
133.16any person or entity that controls or is controlled, directly or indirectly, or is under
133.17common control with another person. Controlling or affiliated party includes, but is not
133.18limited to, employees, officers, independent contractors, corporations, partnerships, and
133.19limited liability corporations.
133.20 Subd. 8. Credit counseling. "Credit counseling" means the provision of counseling
133.21and advice on managing household finances, including but not limited to, managing credit
133.22and debt, budgeting, and personal savings.
133.23 Subd. 9. Creditor. "Creditor" means any party:
133.24(1) named by the debtor as a creditor in the debt settlement services plan or debt
133.25settlement services agreement;
133.26(2) that acquires or holds the debt; or
133.27(3) to whom interactions with the debt settlement services is assigned in relation to
133.28the debt listed in the debt settlement services plan or debt settlement services agreement.
133.29 Subd. 10. Debt settlement services. "Debt settlement services" means any one or
133.30more of the following activities:
133.31(1) offering to provide advice, or offering to act or acting as an intermediary between
133.32a debtor and one or more of the debtor's creditors, where the primary purpose of the
133.33advice or action is to obtain a settlement for less than the full amount of debt, whether
133.34in principal, interest, fees, or other charges, incurred primarily for personal, family, or
133.35household purposes including, but not limited to, offering debt negotiation, debt reduction,
133.36or debt relief services; or
134.1(2) advising, encouraging, assisting, or counseling a debtor to accumulate funds in
134.2an account for future payment of a reduced amount of debt to one or more of the debtor's
134.4Any person so engaged or holding out as so engaged is deemed to be engaged in
134.5the provision of debt settlement services, regardless of whether or not a fee is charged for
134.7 Subd. 11. Debt settlement services agreement. "Debt settlement services
134.8agreement" means the written contract between the debt settlement services provider
134.9and the debtor.
134.10 Subd. 12. Debt settlement services plan. "Debt settlement services plan" means
134.11the debtor's individualized package of debt settlement services set forth in the debt
134.12settlement services agreement.
134.13 Subd. 13. Debt settlement services provider. "Debt settlement services provider"
134.14means any person offering or providing debt settlement services to a debtor domiciled
134.15in this state, regardless of whether or not a fee is charged for the services and regardless
134.16of whether the person maintains a physical presence in the state. The term includes
134.17any person to whom debt settlement duties are delegated. The term shall not include
134.18persons listed in section 332A.02, subdivision 8, clauses (1) to (10), or a debt management
134.20 Subd. 14. Lead generator. "Lead generator" means a person that, without providing
134.21debt settlement services: (1) solicits debtors to engage in debt settlement through mail,
134.22in person, or electronic Web site-based solicitation or any other means, (2) acts as an
134.23intermediary or referral agent between a debtor and an entity actually providing debt
134.24settlement services, or (3) obtains a debtor's personally identifiable information and
134.25transmits that information to a debt settlement services provider.
134.26 Subd. 15. Person. "Person" means an individual, firm, partnership, association,
134.28 Subd. 16. Registrant. "Registrant" means any person registered by the
134.29commissioner pursuant to this chapter and, where used in conjunction with an act or
134.30omission required or prohibited by this chapter, shall mean any person performing debt
Sec. 20. [332B.03] REQUIREMENT OF REGISTRATION.
134.33On or after August 1, 2009, it is unlawful for any person, whether or not located
134.34in this state, to operate as a debt settlement services provider or provide debt settlement
134.35services including, but not limited to, offering, advertising, or executing or causing to be
135.1executed any debt settlement services or debt settlement services agreement, except as
135.2authorized by law, without first becoming registered as provided in this chapter. Debt
135.3settlement services providers may continue to provide debt settlement services without
135.4complying with this chapter to those debtors who entered into a contract to participate
135.5in a debt settlement services plan prior to August 1, 2009, but may not enter into a debt
135.6settlement services agreement with a debt on or after August 1, 2009, without complying
135.7with this chapter.
Sec. 21. [332B.04] REGISTRATION.
135.9 Subdivision 1. Form. Application for registration to operate as a debt settlement
135.10services provider in this state must be made in writing to the commissioner, under oath, in
135.11the form prescribed by the commissioner, and must contain:
135.12(1) the full name of each principal of the entity applying;
135.13(2) the address, which must not be a post office box, and the telephone number and,
135.14if applicable, the e-mail address, of the applicant;
135.15(3) consent to the jurisdiction of the courts of this state;
135.16(4) the name and address of the registered agent authorized to accept service of
135.17process on behalf of the applicant or appointment of the commissioner as the applicant's
135.18agent for purposes of accepting service of process;
135.19(5) disclosure of:
135.20(i) whether any controlling or affiliated party has ever been convicted of a crime
135.21or found civilly liable for an offense involving moral turpitude, including forgery,
135.22embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to
135.23defraud, or any other similar offense or violation, or any violation of a federal or state
135.24law or regulation in connection with activities relating to the rendition of debt settlement
135.25services or involving any consumer fraud, false advertising, deceptive trade practices, or
135.26similar consumer protection law;
135.27(ii) any judgments, private or public litigation, tax liens, written complaints,
135.28administrative actions, or investigations by any government agency against the applicant
135.29or any officer, director, manager, or shareholder owning more than five percent interest
135.30in the applicant, unresolved or otherwise, filed or otherwise commenced within the
135.31preceding ten years;
135.32(iii) whether the applicant or any person employed by the applicant has had a record
135.33of having defaulted in the payment of money collected for others, including the discharge
135.34of debts through bankruptcy proceedings; and
136.1(iv) whether the applicant's license or registration to provide debt settlement services
136.2in any other state has ever been revoked or suspended;
136.3(6) a copy of the applicant's standard debt settlement services agreement that the
136.4applicant intends to execute with debtors;
136.5(7) proof of accreditation, unless the applicant submits an affidavit attesting that the
136.6applicant does not provide credit counseling services; and
136.7(8) any other information and material as the commissioner may require.
136.8The commissioner may, for good cause shown, temporarily waive any requirement
136.9of this subdivision.
136.10 Subd. 2. Term and scope of registration. A registration is effective until 11:59
136.11p.m. on December 31 of the year for which the application for registration is filed or until
136.12it is surrendered by the registrant or revoked or suspended by the commissioner. The
136.13registration is limited solely to the business of providing debt settlement services.
136.14 Subd. 3. Fees; bond. An applicant for registration as a debt settlement services
136.15provider must comply with the requirements of section 332A.04, subdivisions 3, 4, and 5.
136.16 Subd. 4. Right of action on bond. If the registrant has failed to account to a debtor,
136.17or has failed to perform any of the services promised, the registrant is in default. The
136.18debtor or the debtor's legal representative or receiver, the commissioner, or the attorney
136.19general, shall have, in addition to all other legal remedies, a right of action in the name of
136.20the debtor on the bond or the security given under this section, for loss suffered by the
136.21debtor, not exceeding the face amount of the bond or security, and without the necessity of
136.22joining the registrant in the suit or action based on the default.
136.23 Subd. 5. Registrant list. The commissioner must maintain a list of registered debt
136.24settlement services providers. The list must be made available to the public in written
136.25form upon request and on the Department of Commerce Web site.
136.26 Subd. 6. Renewal of registration. Each year, each registrant under the provisions
136.27of this chapter must, not more than 60 nor less than 30 days before its registration is to
136.28expire, apply to the commissioner for renewal of its registration on a form prescribed by
136.29the commissioner. The application must be signed by the registrant under penalty of
136.30perjury, contain current information on all matters required in the original application, and
136.31be accompanied by a payment of $250. The registrant must maintain a continuous surety
136.32bond that satisfies the requirements of section 332A.04, subdivision 4. The renewal is
136.33effective for one year. The commissioner may, for good cause shown, temporarily waive
136.34any requirement of this section.
Sec. 22. [332B.05] DENIAL, SUSPENSION, REVOCATION, OR
137.2NONRENEWAL OF REGISTRATION.
137.3 Subdivision 1. Denial. The commissioner, with notice to the applicant by certified
137.4mail sent to the address listed on the application, may deny an application for a registration
137.5for any of the reasons specified under section 332A.08.
137.6 Subd. 2. Suspension, revocation, or nonrenewal. The commissioner may suspend,
137.7revoke, or refuse to renew any registration issued under this chapter, or may levy a civil
137.8penalty under section 45.027, or any combination of actions, if the debt settlement services
137.9provider or any controlling or affiliated person has committed any act or omission for
137.10which the commissioner could have refused to issue an initial registration.
137.11 Subd. 3. Procedure. Suspension, revocation, or nonrenewal must be upon notice
137.12and under the conditions prescribed in section 332A.09, subdivision 1. Upon issuance of
137.13an order suspending, revoking, or refusing to renew a registration, the commissioner:
137.14(1) shall follow the procedure established in section 332A.09, subdivision 2; and
137.15(2) may follow the procedure specified in section 332A.09, subdivision 3, concerning
137.16the appointment of a receiver for funds of sanctioned registrants.
Sec. 23. [332B.06] WRITTEN DEBT SETTLEMENT SERVICES AGREEMENT;
137.18DISCLOSURES; TRUST ACCOUNT.
137.19 Subdivision 1. Written agreement required. (a) A debt settlement services
137.20provider may not perform, or impose any charges or receive any payment for, any debt
137.21settlement services until the provider and the debtor have executed a debt settlement
137.22services agreement that contains all terms of the agreement between the debt settlement
137.23services provider and the debtor and complies with all the applicable requirements of
137.25(b) A debt settlement services agreement must:
137.26(1) be in writing, dated, and signed by the debt settlement services provider and
137.28(2) conspicuously indicate whether or not the debt settlement services provider is
137.29registered with the Minnesota Department of Commerce and include any registration
137.31(3) be written in the debtor's primary language if the debt settlement services
137.32provider advertises in that language.
137.33(c) The registrant must furnish the debtor with a copy of the signed contract upon
138.1 Subd. 2. Actions prior to executing a written agreement. No person may provide
138.2debt settlement services for a debtor or execute a debt settlement services agreement
138.3unless the person first has:
138.4(1) informed the debtor, in writing, that debt settlement is not appropriate for all
138.5debtors and that there are other ways to deal with debt, including using credit counseling
138.6or debt management services, or filing bankruptcy;
138.7(2) prepared in writing and provided to the debtor, in a form the debtor may keep,
138.8an individualized financial analysis of the debtor's financial circumstances, including
138.9income and liabilities, and made a determination supported by the individualized financial
138.11(i) the debt settlement plan proposed for addressing the debt is suitable for the
138.13(ii) the debtor can reasonably meet the requirements of the proposed debt settlement
138.14services plan; and
138.15(iii) based on the totality of the circumstances, there is a net tangible benefit to the
138.16debtor of entering into the proposed debt settlement services plan; and
138.17(3) provided, on a document separate from any other document, the total amount and
138.18an itemization of fees, including any origination fees, monthly fees, and settlement fees
138.19reasonably anticipated to be paid by the debtor over the term of the agreement.
138.20 Subd. 3. Determination concerning creditor participation. (a) Before executing a
138.21debt settlement services agreement or providing any services, a debt settlement services
138.22provider must make a determination, supported by sufficient bases, which creditors listed
138.23by the debtor are reasonably likely, and which are not reasonably likely, to participate in
138.24the debt settlement services plan set forth in the debt settlement services agreement.
138.25(b) A debt settlement services provider has a defense against a claim that no
138.26sufficient basis existed to make a determination that a creditor was likely to participate if
138.27the debt settlement services provider can produce:
138.28(1) written confirmation from the creditor that, at the time the determination was
138.29made, the creditor and the debt settlement services provider were engaged in negotiations
138.30to settle a debt for another debtor; or
138.31(2) evidence that the provider and the creditor had entered into a settlement of a debt
138.32within the six months prior to the date of the determination.
138.33(c) The debt settlement services provider must notify the debtor as soon as
138.34practicable after the provider has made a determination of the likelihood of participation
138.35or nonparticipation of all the creditors listed for inclusion in the debt settlement services
138.36agreement or debt settlement services plan. If not all creditors listed in the debt settlement
139.1services agreement are reasonably likely to participate in the debt settlement services plan,
139.2the debt settlement services provider must obtain the written authorization from the debtor
139.3to proceed with the debt settlement services agreement without the likely participation of
139.4all listed creditors.
139.5 Subd. 4. Disclosures. (a) A person offering to provide or providing debt settlement
139.6services must disclose both orally and in writing whether or not the person is registered
139.7with the Minnesota Department of Commerce and any registration number.
139.8(b) No person may provide debt settlement services unless the person first has
139.9provided, both orally and in writing, on a single sheet of paper, separate from any other
139.10document or writing, the following verbatim notice:
139.12We CANNOT GUARANTEE that you will successfully reduce or eliminate your
139.14If you stop paying your creditors, there is a strong likelihood some or all of the
139.15following may happen:
139.16• YOUR WAGES OR BANK ACCOUNT MAY STILL BE GARNISHED.
139.17• YOU MAY STILL BE CONTACTED BY CREDITORS.
139.18• YOU MAY STILL BE SUED BY CREDITORS for the money you owe.
139.19• FEES, INTEREST, AND OTHER CHARGES WILL CONTINUE TO MOUNT
139.20UP DURING THE (INSERT NUMBER) MONTHS THIS PLAN IS IN EFFECT.
139.21Even if we do settle your debt, YOU MAY STILL HAVE TO PAY TAXES on
139.22the amount forgiven.
139.23Your credit rating may be adversely affected.
139.24(c) The heading, "CAUTION," must be in bold, underlined, 28-point type, and the
139.25remaining text must be in 14-point type, with a double space between each statement.
139.26(d) The disclosures and notices required under this subdivision must be provided
139.27in the debtor's primary language if the debt settlement services provider advertises in
139.29 Subd. 5. Required terms. (a) Each debt settlement services agreement must contain
139.30on the front page of the agreement, segregated by bold lines from all other information
139.31on the page and disclosed prominently and clearly in bold print, the total amount and an
139.32itemization of fees, including any origination fees, monthly fees, and settlement fees
139.33reasonably anticipated to be paid by the debtor over the term of the agreement.
139.34(b) Each debt settlement services agreement must also contain the following:
139.35(1) a prominent statement describing the terms upon which the debtor may cancel
139.36the contract as set forth in section 332B.07;
140.1(2) a detailed description of all services to be performed by the debt settlement
140.2services provider for the debtor;
140.3(3) the debt settlement services provider's refund policy;
140.4(4) the debt settlement services provider's principal business address, which must
140.5not be a post office box, and the name and address of its agent in this state authorized to
140.6receive service of process; and
140.7(5) the name of each creditor the debtor has listed and the aggregate debt owed to
140.8each creditor that will be the subject of settlement.
140.9 Subd. 6. Prohibited terms. A debt settlement services agreement may not contain
140.10any of the terms prohibited under section 332A.10, subdivision 4.
140.11 Subd. 7. New debt settlement services agreements; modifications of existing
140.12agreements. (a) Separate and additional debt settlement services agreements that comply
140.13with this chapter may be entered into by the debt settlement services provider and the
140.14debtor, provided that no additional origination fee may be charged by the debt settlement
140.16(b) Any modification of an existing debt settlement services agreement, including
140.17any increase in the number or amount of debts included in the debt settlement services
140.18agreement, must be in writing and signed by both parties. No fee may be charged to
140.19modify an existing agreement.
140.20 Subd. 8. Funds held in trust. Debtor funds may be held in trust for the purpose
140.21of writing exchange checks for no longer than 42 days. If the registrant holds debtor
140.22funds, the registrant must maintain a separate trust account, except that the registrant may
140.23commingle debtor funds with the registrant's own funds, in the form of an imprest fund,
140.24to the extent necessary to ensure maintenance of a minimum balance, if the financial
140.25institution at which the trust account is held requires a minimum balance to avoid the
140.26assessment of fees or penalties for failure to maintain a minimum balance.
Sec. 24. [332B.07] RIGHT TO CANCEL.
140.28 Subdivision 1. Debtor's right to cancel. (a) A debtor has the right to cancel a debt
140.29settlement services agreement without cause at any time upon ten days' written notice
140.30to the debt settlement services provider.
140.31(b) In the event of cancellation, the debt settlement services provider must, within
140.32ten days of the cancellation, notify the debtor's creditors with whom the debt settlement
140.33services provider is or has been, under the terms of the debt settlement agreement, in
140.34communication, of the cancellation and immediately refund all fees paid by the debtor to
140.35the debt settlement services provider that exceed the fees allowed under section 332B.09.
141.1(c) Upon cancellation, the debt settlement services provider must cease collection of
141.2any monthly fees beginning in the month following cancellation.
141.3 Subd. 2. Notice of debtor's right to cancel. A debt settlement services agreement
141.4must contain, on its face, in an easily readable type immediately adjacent to the space for
141.5signature by the debtor, the following notice: "Right to Cancel: You have the right to
141.6cancel this contract at any time on ten days' written notice."
141.7 Subd. 3. Automatic termination. Upon the payment of all listed or settled debts
141.8and fees, the debt settlement services agreement must automatically terminate, and all
141.9funds held by the debt settlement services provider that exceed the fees allowed under
141.10section 332B.09 must be immediately returned to the debtor.
141.11 Subd. 4. Debt settlement services provider's right to cancel. (a) A debt settlement
141.12services provider may cancel a debt settlement services agreement with good cause upon
141.1330 days' written notice to the debtor.
141.14(b) Within ten days after the cancellation, the debt settlement services provider
141.15must notify the debtor's creditors with whom the debt settlement services provider is or
141.16has been, under the terms of the debt settlement services agreement, in communication,
141.17of the cancellation.
141.18(c) Upon cancellation, the debt settlement services provider must cease collection of
141.19any monthly fees beginning in the month following cancellation.
141.20(d) A debt settlement services provider is entitled to the full amount of the fees
141.21provided for in the debt settlement services agreement if the provider can show that:
141.22(1) the provider obtained a settlement offer from the creditor or creditors in
141.23accordance with the debt settlement services agreement;
141.24(2) the debtor rejected the settlement offer; or
141.25(3) within the period contemplated in the debt settlement services agreement, the
141.26debtor entered into a settlement agreement with the same creditor or creditors for an
141.27amount equal to or lower than the settlement offer obtained by the provider.
Sec. 25. [332B.08] BOOKS, RECORDS, AND INFORMATION.
141.29 Subdivision 1. Records retention; annual report. Every registrant must keep, and
141.30use in the registrant's business, such books, accounts, and records, including electronic
141.31records, as will enable the commissioner to determine whether the registrant is complying
141.32with this chapter and the rules, orders, and directives adopted by the commissioner under
141.33this chapter. Every registrant must preserve such books, accounts, and records for at least
141.34six years after making the final entry on any transaction recorded therein. Examinations
141.35of the books, records, and method of operations conducted under the supervision of the
142.1commissioner shall be done at the cost of the registrant. The cost must be assessed as
142.2determined under section 46.131.
142.3 Subd. 2. Annual report. On or before March 15 of each calendar year,
142.4each registrant must file a report with the commissioner containing information the
142.5commissioner may require about the preceding calendar year. The report must be in a
142.6form the commissioner prescribes.
142.7 Subd. 3. Statements to debtors. (a) Each registrant must:
142.8(1) maintain and make available records and accounts that will enable each debtor to
142.9ascertain the amounts paid to the creditors, if any. A statement showing amounts received
142.10from the debtor, disbursements, if any, to each creditor, amounts that any creditor has
142.11agreed to as payment in full for any debt owed the creditor by the debtor, fees deducted by
142.12the registrant, and other information the commissioner may prescribe, must be furnished
142.13by the registrant to the debtor at least monthly and, in addition, upon any cancellation or
142.14termination of the contract;
142.15(2) include in the statement furnished to debtors a list of all activities conducted
142.16pursuant to the contract, including the nature of communications and progress of
142.17negotiations with each creditor during the reporting period; and
142.18(3) prepare and retain in the file of each debtor a written analysis of the debtor's
142.19income and expenses to substantiate that the plan of payment is feasible and practicable.
142.20(b) Each debtor must have reasonable access, without cost, by electronic or other
142.21means, to information in the registrant's files applicable to the debtor. These statements,
142.22records, and accounts must otherwise remain confidential, except for duly authorized
142.23state and government officials, the commissioner, the attorney general, the debtor, and
142.24the debtor's representative and designees.
Sec. 26. [332B.09] FEES; WITHDRAWAL OF CREDITORS; NOTIFICATION
142.26TO DEBTOR OF SETTLEMENT OFFER.
142.27 Subdivision 1. Choice of fee structure. A debt settlement services provider may
142.28calculate fees on a percentage of debt basis or on a percentage of savings basis. The fee
142.29structure shall be clearly disclosed and explained in the debt settlement services agreement.
142.30 Subd. 2. Fees as a percentage of debt. (a) The total amount of the fees claimed,
142.31demanded, charged, collected, or received under this subdivision shall be calculated as
142.3215 percent of the aggregate debt. A debt settlement services provider that calculates
142.33fees as a percentage of debt may:
142.34(1) charge an origination fee, which may be designated by the debt settlement
142.35services provider as nonrefundable, of:
143.1(i) $200 on aggregate debt of less than $20,000; or
143.2(ii) $400 on aggregate debt of $20,000 or more;
143.3(2) charge a monthly fee of:
143.4(i) no greater than $50 per month on aggregate debt of less than $40,000; and
143.5(ii) no greater than $60 per month on aggregate debt of $40,000 or more; and
143.6(3) charge a settlement fee for the remainder of the allowable fees, which may be
143.7demanded and collected no earlier than upon delivery to the debt settlement services
143.8provider by a creditor of a bona fide written settlement offer consistent with the terms of
143.9the debt settlement services agreement. A settlement fee may be assessed for each debt
143.10settled, but the sum total of the origination fee, the monthly fee, and the settlement fee
143.11may not exceed 15 percent of the aggregate debt.
143.12(b) When a settlement offer is obtained by a debt settlement services provider from a
143.13creditor, the collection of any monthly fees shall cease beginning the month following the
143.14month in which the settlement offer was obtained by the debt settlement services provider.
143.15(c) In no event may more than 40 percent of the total amount of fees allowable be
143.16claimed, demanded, charged, collected, or received by a debt settlement services provider
143.17any earlier than upon delivery to the debt settlement services provider by a creditor of
143.18a bona fide written settlement offer consistent with the terms of the debt settlement
143.20 Subd. 3. Fees as a percentage of savings. (a) The total amount of the fees claimed,
143.21demanded, charged, collected, or received under this subdivision shall be calculated as 30
143.22percent of the savings actually negotiated by the debt settlement services provider. The
143.23savings shall be calculated as the difference between the aggregate debt that is stated
143.24in the debt settlement services agreement at the time of its execution and total amount
143.25that the debtor actually pays to settle all the debts stated in the debt settlement services
143.26agreement, provided that only savings resulting from concessions actually negotiated by
143.27the debt settlement services provider may be counted. A debt settlement services provider
143.28that calculates fees as a percentage of debt may:
143.29(1) charge an origination fee, which may be designated by the debt settlement
143.30services provider as nonrefundable, of:
143.31(i) $300 on aggregate debt of less than $20,000; or
143.32(ii) $500 on aggregate debt of $20,000 or more;
143.33(2) charge a monthly fee of:
143.34(i) no greater than $65 on aggregate debt of less than $40,000; and
143.35(ii) no greater than $75 on aggregate debt of $40,000 or more; and
144.1(3) charge a settlement fee for the remainder of the allowable fees, which may be
144.2demanded and collected no earlier than upon delivery to the debt settlement services
144.3provider by a creditor of a bona fide, final written settlement offer consistent with the
144.4terms of the debt settlement services agreement. A settlement fee may be assessed for each
144.5debt settled, but the sum total of the origination fee, the monthly fee, and the settlement
144.6fee may not exceed 30 percent of the savings, as calculated under paragraph (a).
144.7(b) The collection of monthly fees shall cease under this subdivision when the
144.8total of monthly fees and the origination fee equals 50 percent of the total fees allowable
144.9under this subdivision. For the purposes of this subdivision, 50 percent of the total fees
144.10allowable shall assume a settlement of 50 cents on the dollar.
144.11(c) In no event may more than 50 percent of the total amount of fees allowable be
144.12claimed, demanded, charged, collected, or received by a debt settlement services provider
144.13any earlier than upon delivery to the debt settlement services provider by a creditor of a
144.14bona fide, final written settlement offer consistent with the terms of the debt settlement
144.16 Subd. 4. Fees exclusive. No fees, charges, assessments, or any other compensation
144.17may be claimed, demanded, charged, collected, or received other than the fees allowed
144.18under this section. Any fees collected in excess of those allowed under this section must
144.19be immediately returned to the debtor.
144.20 Subd. 5. Withdrawal of creditor. Whenever a creditor withdraws from a debt
144.21settlement services plan, the debt settlement services provider must promptly notify the
144.22debtor of the withdrawal, identify the creditor, and inform the debtor of the right to modify
144.23the debt settlement services agreement, unless at least 50 percent of the listed creditors
144.24withdraw, in which case the debt settlement services provider must notify the debtor of the
144.25debtor's right to cancel. In no case may this notice be provided more than 15 days after the
144.26debt settlement services provider learns of the creditor's decision to withdraw from a plan.
144.27 Subd. 6. Timely notification of settlement offer. A debt settlement services
144.28provider must make all reasonable efforts to notify the debtor within 24 hours of a
144.29settlement offer made by a creditor.
Sec. 27. [332B.10] PROHIBITIONS.
144.31No debt settlement services provider shall:
144.32(1) engage in any activity, act, or omission prohibited under section 332A.14;
144.33(2) promise, guarantee, or directly or indirectly imply, infer, or in any manner
144.34represent that any debt will be settled prior to the presentation to the debtor of an offer by
144.35the creditors participating in the debt settlement plan to settle;
145.1(3) misrepresent the timing of negotiations with creditors;
145.2(4) imply, infer, or in any manner represent that:
145.3(i) fees, interest, and other charges will not continue to accrue prior to the time
145.4debts are settled;
145.5(ii) wages or bank accounts are not subject to garnishment;
145.6(iii) creditors will not continue to contact the debtor;
145.7(iv) the debtor is not subject to legal action; and
145.8(v) the debtor will not be subject to tax consequences for the portion of any debts
145.10(5) execute a power of attorney or any other agreement, oral or written, express
145.11or implied, that extinguishes or limits the debtor's right at any time to contract or
145.12communicate with any creditor or the creditor's right at any time to communicate with
145.14(6) exercise or attempt to exercise a power of attorney after an individual has
145.15terminated an agreement;
145.16(7) state, imply, infer, or, in any other manner, indicate that entering into a debt
145.17settlement services agreement or settling debts will either have no effect on, or improve,
145.18the debtor's credit, credit rating, and credit score;
145.19(8) challenge a debt without the written consent of the debtor;
145.20(9) make any false or misleading claim regarding a creditor's right to collect a debt;
145.21(10) falsely represent that the debt settlement services provider can negotiate better
145.22settlement terms with a creditor than the debtor alone can negotiate;
145.23(11) provide or offer to provide legal advice or legal services unless the person
145.24providing or offering to provide legal advice is licensed to practice law in the state;
145.25(12) misrepresent that it is authorized or competent to furnish legal advice or
145.26perform legal services; and
145.27(13) settle a debt or lead an individual to believe that a payment to a creditor is in
145.28settlement of a debt to the creditor unless, at the time of settlement, the individual receives
145.29a certification from the creditor that the payment is in full settlement of the debt.
Sec. 28. [332B.11] ADVERTISEMENT AND SOLICITATION OF DEBT
145.32 Subdivision 1. Advertisement. No debt settlement services provider or lead
146.1(1) make any false, deceptive, or misleading statements or omissions about the rates,
146.2terms, or conditions of an actual or proposed debt settlement services plan, or create the
146.3likelihood of consumer confusion or misunderstanding regarding its services;
146.4(2) represent that the debt settlement services provider is a nonprofit, not-for-profit,
146.5or has similar status or characteristics if some or all of the debt settlement services will
146.6be provided by a for-profit company that is a controlling or affiliated party to the debt
146.7settlement services provider;
146.8(3) make any communication that gives the impression that the debt settlement
146.9services provider is acting on behalf of a government agency; or
146.10(4) represent, claim, imply, or infer that secured debts may be settled.
146.11 Subd. 2. Solicitation by lead generators. (a) In all print, electronic, and nonprint
146.12solicitations, including Web sites and radio or television advertising, a lead generator must
146.13prominently make the following verbatim disclosure: "This company does not actually
146.14provide any debt settlement, debt consolidation, or other credit counseling services. We
146.15ONLY refer you to companies that want to provide some or all of those services."
146.16(b) A lead generator may not, in any advertising or solicitation to debtors:
146.17(1) represent that any service is guaranteed; or
146.18(2) misrepresent the benefits of its services or debt settlement or consolidation in
146.19comparison to credit counseling, debt management, or bankruptcy.
Sec. 29. [332B.12] DEBT SETTLEMENT SERVICES AGREEMENT
146.22Any debtor has the right to rescind any debt settlement services agreement with a
146.23debt settlement services provider that commits a material violation of this chapter. On
146.24rescission, all fees paid to the debt settlement services provider or any other person other
146.25than creditors of the debtor must be returned to the debtor entering into the debt settlement
146.26services agreement within ten days of rescission of the debt settlement services agreement.
Sec. 30. [332B.13] ENFORCEMENT; REMEDIES.
146.28 Subdivision 1. Violation as deceptive practice. A violation of any of the provisions
146.29of this chapter is considered an unfair or deceptive trade practice under section 8.31,
146.30subdivision 1. A private right of action under section 8.31 by an aggrieved debtor is in
146.31the public interest.
146.32 Subd. 2. Private right of action. (a) A debt settlement provider who fails to
146.33comply with any of the provisions of this chapter, or a lead generator who violates section
146.34332B.11, is liable under this section in an individual action for the sum of:
147.1(1) actual, incidental, and consequential damages sustained by the debtor as a result
147.2of the failure; and
147.3(2) statutory damages of up to $5,000.
147.4(b) A debt settlement provider who fails to comply with any of the provisions of
147.5this chapter, or a lead generator who violates section 332B.11, is liable to the named
147.6plaintiffs under this section in a class action for the amount that each named plaintiff
147.7could recover under paragraph (a), clause (1), and to the other class members for such
147.8amount as the court may allow.
147.9(c) In determining the amount of statutory damages, the court shall consider, among
147.10other relevant factors:
147.11(1) the frequency, nature, and persistence of noncompliance;
147.12(2) the extent to which the noncompliance was intentional; and
147.13(3) in the case of a class action, the number of debtors adversely affected.
147.14(d) A plaintiff or class successful in a legal or equitable action under this section is
147.15entitled to the costs of the action, plus reasonable attorney fees.
147.16 Subd. 3. Injunctive relief. (a) A debtor may sue a debt settlement services provider
147.17for temporary or permanent injunctive or other appropriate equitable relief to prevent
147.18violations of any provision of this chapter. A court must grant injunctive relief on a
147.19showing that the debt settlement services provider has violated any provision of this
147.20chapter, or in the case of a temporary injunction, on a showing that the debtor is likely to
147.21prevail on allegations that the debt settlement services provider violated any provision
147.22of this chapter.
147.23(b) A debtor may sue a lead generator for temporary or permanent injunctive or other
147.24appropriate equitable relief to prevent violations of section 332B.11. A court must grant
147.25injunctive relief on a showing that the lead generator has violated section 332B.11, or in
147.26the case of a temporary injunction, on a showing that the debtor is likely to prevail on
147.27allegations that the lead generator violated section 332B.11.
147.28 Subd. 4. Remedies cumulative. The remedies provided in this section are
147.29cumulative and do not restrict any remedy that is otherwise available. The provisions
147.30of this chapter are not exclusive and are in addition to any other requirements, rights,
147.31remedies, and penalties provided by law.
147.32 Subd. 5. Public enforcement. The attorney general shall enforce this chapter
147.33under section 8.31.
Sec. 31. [332B.14] INVESTIGATIONS.
148.1At any reasonable time, the commissioner may examine the books and records of
148.2every registrant and of any person engaged in the business of providing debt settlement
148.3services. The commissioner, once during any calendar year, may require the submission
148.4of an audit prepared by a certified public accountant of the books and records of each
148.5registrant. If the registrant has, within one year previous to the commissioner's demand,
148.6had an audit prepared for some other purpose, this audit may be submitted to satisfy the
148.7requirement of this section. The commissioner may investigate any complaint concerning
148.8violations of this chapter and may require the attendance and sworn testimony of witnesses
148.9and the production of documents.