1.1                          A bill for an act 
  1.2             relating to state government; consolidating and 
  1.3             coordinating state environmental and natural resource 
  1.4             programs; reorganizing and restructuring state 
  1.5             agencies and departments; creating the sustainable 
  1.6             environmental policy board; creating the department of 
  1.7             environmental protection; adding powers and duties to 
  1.8             the department of natural resources; transferring all 
  1.9             the powers and duties of the environmental quality 
  1.10            board, the pollution control agency, the board of 
  1.11            water and soil resources, the office of environmental 
  1.12            assistance, the harmful substances compensation board, 
  1.13            the petroleum tank release compensation board, and the 
  1.14            Minnesota public facilities authority, and abolishing 
  1.15            these agencies; transferring certain powers and duties 
  1.16            of the departments of commerce and trade and economic 
  1.17            development; requiring further studies and reports; 
  1.18            amending Minnesota Statutes 1994, sections 15.01; 
  1.19            15A.081, subdivision 1; 84.01, subdivisions 1 and 3; 
  1.20            84.027, by adding a subdivision; 103B.3355; 103D.101, 
  1.21            subdivision 2; 115B.25, subdivision 2; 115B.28, 
  1.22            subdivisions 1 and 4; 115B.35, subdivisions 1, 4, 5, 
  1.23            and 6; 115C.07, subdivision 3; 115C.10, subdivision 1; 
  1.24            116.01; 116.02, subdivision 5; 116.03, subdivisions 1 
  1.25            and 2; 116C.01; 116C.02; 116C.03, subdivisions 1, 2, 
  1.26            and 3a; 116C.04, subdivision 2; 116C.24, subdivisions 
  1.27            2, 2a, and 3; 116C.25; 116C.34; 144.871, subdivision 
  1.28            5; 326.71, subdivision 5; 446A.02, subdivision 3; 
  1.29            446A.04, subdivisions 1 and 5; 446A.07, subdivisions 
  1.30            4, 5, and 6; 446A.071, subdivisions 3, 4, and 5; 
  1.31            446A.10, by adding a subdivision; 446A.12, subdivision 
  1.32            1; 473.811, subdivision 1; proposing coding for new 
  1.33            law in Minnesota Statutes, chapter 116C; repealing 
  1.34            Minnesota Statutes 1994, sections 103B.101, 
  1.35            subdivisions 1, 2, 3, 4, 5, 6, 7, 8, and 10; 103B.205, 
  1.36            subdivision 2; 103B.305, subdivision 2; 103B.3363, 
  1.37            subdivision 2; 103C.101, subdivision 12; 103D.011, 
  1.38            subdivision 5; 115A.03, subdivisions 8a and 22a; 
  1.39            115A.055; 115B.27; 115C.07, subdivisions 1 and 2; 
  1.40            115D.03, subdivision 4; 116.02, subdivisions 1, 2, 3, 
  1.41            and 4; 116.03, subdivision 6; 116.04; 446A.02, 
  1.42            subdivision 2; and 446A.03. 
  1.43  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.44                             ARTICLE 1 
  2.1          ENVIRONMENTAL AND NATURAL RESOURCES REORGANIZATION  
  2.2      Section 1.  [ENVIRONMENTAL AND NATURAL RESOURCES 
  2.3   REORGANIZATION ACT OF 1995.] 
  2.4      Subdivision 1.  [PURPOSES.] The purposes of this act, the 
  2.5   environmental and natural resources reorganization act of 1995, 
  2.6   are as follows: 
  2.7      (1) consolidate many of the state's diverse environmental 
  2.8   and natural resource programs into two agencies, the department 
  2.9   of natural resources and the department of environmental 
  2.10  protection, to provide better service to the citizens of the 
  2.11  state at lower cost; and 
  2.12     (2) coordinate programs and activities relating to 
  2.13  environmental and natural resource matters, better inform and 
  2.14  involve the public in regard to these programs, provide an 
  2.15  alternative, more expeditious review process for certain agency 
  2.16  actions, and provide policy planning through a sustainable 
  2.17  environmental policy board. 
  2.18     Subd. 2.  [FINDINGS.] The legislature finds as follows.  
  2.19  The current assignment of environmental and natural resources 
  2.20  programs among many state agencies creates confusion and 
  2.21  frustration for citizens and decision makers.  The environmental 
  2.22  and natural resources services provided by these programs can 
  2.23  better be delivered by consolidating related functions into two 
  2.24  agencies so that citizens of Minnesota have easier access to the 
  2.25  programs.  This consolidation will provide more responsiveness 
  2.26  to citizens, will ensure less fragmentation of environmental and 
  2.27  natural resources policies, will minimize overlapping 
  2.28  responsibilities among agencies, and will ensure, with the 
  2.29  assistance of the sustainable environmental policy board, better 
  2.30  coordination of environmental and natural resources policies.  
  2.31     Subd. 3.  [TRANSFERS OF POWERS AND DUTIES; CONSOLIDATIONS; 
  2.32  ABOLITION OF AGENCIES.] The purposes of the environmental and 
  2.33  natural resources reorganization act of 1995 are given effect by 
  2.34  the transfer of powers and duties, consolidations, abolition of 
  2.35  agencies, and other actions required by the various articles of 
  2.36  the act.  Unless otherwise specified, the required transfers are 
  3.1   accomplished under Minnesota Statutes, section 15.039, and 
  3.2   related laws, and include all powers, duties, rights, 
  3.3   obligations, rules, court actions, contracts, records, property 
  3.4   of every description, unexpended funds, personnel, and authority 
  3.5   imposed by law. 
  3.6      Sec. 2.  Minnesota Statutes 1994, section 15.01, is amended 
  3.7   to read: 
  3.8      15.01 [DEPARTMENTS OF THE STATE.] 
  3.9      The following agencies are designated as the departments of 
  3.10  the state government:  the department of administration; the 
  3.11  department of agriculture; the department of commerce; the 
  3.12  department of corrections; the department of education; the 
  3.13  department of economic security; the department of environmental 
  3.14  protection; the department of trade and economic development; 
  3.15  the department of finance; the department of health; the 
  3.16  department of human rights; the department of labor and 
  3.17  industry; the department of military affairs; the department of 
  3.18  natural resources; the department of employee relations; the 
  3.19  department of public safety; the department of public service; 
  3.20  the department of human services; the department of revenue; the 
  3.21  department of transportation; the department of veterans 
  3.22  affairs; and their successor departments. 
  3.23     Sec. 3.  Minnesota Statutes 1994, section 15A.081, 
  3.24  subdivision 1, is amended to read: 
  3.25     Subdivision 1.  [SALARY RANGES.] The governor shall set the 
  3.26  salary rate within the ranges listed below for positions 
  3.27  specified in this subdivision, upon approval of the legislative 
  3.28  commission on employee relations and the legislature as provided 
  3.29  by section 3.855: 
  3.30                            Salary Range 
  3.31  $57,500-$78,500 
  3.32     Commissioner of finance; 
  3.33     Commissioner of education; 
  3.34     Commissioner of transportation; 
  3.35     Commissioner of human services; 
  3.36     Commissioner of revenue; 
  4.1      Commissioner of public safety; 
  4.2      Executive director, state board of investment; 
  4.3   $50,000-$67,500 
  4.4      Commissioner of administration; 
  4.5      Commissioner of agriculture; 
  4.6      Commissioner of commerce; 
  4.7      Commissioner of corrections; 
  4.8      Commissioner of economic security; 
  4.9      Commissioner of employee relations; 
  4.10     Commissioner of environmental protection; 
  4.11     Commissioner of health; 
  4.12     Commissioner of labor and industry; 
  4.13     Commissioner of natural resources; 
  4.14     Commissioner of trade and economic development; 
  4.15     Chief administrative law judge; office of administrative 
  4.16     hearings; 
  4.17     Commissioner, pollution control agency; 
  4.18     Director, office of waste management; 
  4.19     Commissioner, housing finance agency; 
  4.20     Executive director, public employees retirement 
  4.21     association; 
  4.22     Executive director, teacher's retirement association; 
  4.23     Executive director, state retirement system; 
  4.24  $42,500-$60,000 
  4.25     Commissioner of human rights; 
  4.26     Commissioner, department of public service; 
  4.27     Commissioner of veterans affairs; 
  4.28     Commissioner, bureau of mediation services; 
  4.29     Commissioner, public utilities commission; 
  4.30     Commissioner, sustainable environmental policy board; 
  4.31     Member, transportation regulation board; 
  4.32     Ombudsman for corrections; 
  4.33     Ombudsman for mental health and retardation. 
  4.34                             ARTICLE 2
  4.35               SUSTAINABLE ENVIRONMENTAL POLICY BOARD 
  4.36     Section 1.  [SUSTAINABLE ENVIRONMENTAL POLICY BOARD; 
  5.1   TRANSFERS OF POWERS AND DUTIES TO THE BOARD; TRANSITIONAL 
  5.2   PROVISIONS.] 
  5.3      Subdivision 1.  [TRANSFER FROM ENVIRONMENTAL QUALITY BOARD; 
  5.4   EQB ABOLISHED.] The sustainable environmental policy board is 
  5.5   the successor of the environmental quality board.  The powers 
  5.6   and duties of the environmental quality board are transferred to 
  5.7   the sustainable environmental policy board in accordance with 
  5.8   Minnesota Statutes, section 15.039.  The former environmental 
  5.9   quality board and the executive director position for the board 
  5.10  are abolished. 
  5.11     Subd. 2.  [TRANSFER OF CERTAIN POWERS AND DUTIES FROM BOARD 
  5.12  OF WATER AND SOIL RESOURCES.] The powers and duties listed in 
  5.13  Minnesota Statutes, section 116C.04, subdivision 2, paragraph 
  5.14  (e), are transferred to the sustainable environmental policy 
  5.15  board from the board of water and soil resources in accordance 
  5.16  with Minnesota Statutes, section 15.039. 
  5.17     Subd. 3.  [TRANSFER OF ENVIRONMENTAL COORDINATION 
  5.18  RESPONSIBILITIES FROM THE DEPARTMENT OF TRADE AND ECONOMIC 
  5.19  DEVELOPMENT.] All of the powers and duties of the department of 
  5.20  trade and economic development under Minnesota Statutes, 
  5.21  sections 116C.22 to 116C.34, relating to coordination of 
  5.22  environmental permitting procedures, are transferred to the 
  5.23  board of sustainable environmental policy in accordance with 
  5.24  Minnesota Statutes, section 15.039.  
  5.25     Subd. 4.  [EMPLOYMENT AGREEMENTS.] Nothing in this section 
  5.26  is intended to abrogate or modify any rights now enjoyed by 
  5.27  affected employees under terms of an agreement between an 
  5.28  exclusive bargaining representative and the state or one of its 
  5.29  appointing authorities. 
  5.30     Sec. 2.  Minnesota Statutes 1994, section 116C.01, is 
  5.31  amended to read: 
  5.32     116C.01 [FINDINGS.] 
  5.33     The legislature of the state of Minnesota finds that 
  5.34  problems related to the environment environmental protection, 
  5.35  wise use of natural resources, and sustainable development often 
  5.36  encompass the responsibilities of several state agencies and 
  6.1   that solutions to these environmental problems require the 
  6.2   interaction of these agencies and coordination of their 
  6.3   activities.  The legislature also finds that the principles of 
  6.4   sustainable development will guide the state toward 
  6.5   environmental protection and economic development that will 
  6.6   ensure a sound economy as well as enhance natural resources for 
  6.7   future generations.  Finally, the legislature finds that further 
  6.8   debate concerning population, economic, and technological growth 
  6.9   should be encouraged so that the consequences and causes of 
  6.10  alternative decisions can be better known and understood by the 
  6.11  public and its government.  To achieve the goals of coordination 
  6.12  of environmental protection, wise use of natural resources, 
  6.13  sustainable development, and furtherance of the public 
  6.14  discussion and public debate of these and related concerns, a 
  6.15  board of sustainable environmental policy is created. 
  6.16     Sec. 3.  Minnesota Statutes 1994, section 116C.02, is 
  6.17  amended to read: 
  6.18     116C.02 [DEFINITIONS.] 
  6.19     Subdivision 1.  For the purposes of sections 116C.01 to 
  6.20  116C.08, the following terms have the meaning given them. 
  6.21     Subd. 2.  "Board" means the Minnesota sustainable 
  6.22  environmental quality policy board. 
  6.23     Subd. 3.  "Sustainable development" means management and 
  6.24  development of environmental resources to ensure both 
  6.25  sustainable human progress and environmental protection by 
  6.26  meeting the needs of the present without compromising the 
  6.27  ability of future generations to meet their own needs. 
  6.28     Sec. 4.  Minnesota Statutes 1994, section 116C.03, 
  6.29  subdivision 1, is amended to read: 
  6.30     Subdivision 1.  [CREATION.] An A sustainable 
  6.31  environmental quality policy board, designated as the Minnesota 
  6.32  sustainable environmental quality policy board, is hereby 
  6.33  created as an agency in the executive branch of state 
  6.34  government.  The agency is headed by a commissioner appointed by 
  6.35  the governor subject to section 15.06. 
  6.36     Sec. 5.  Minnesota Statutes 1994, section 116C.03, 
  7.1   subdivision 2, is amended to read: 
  7.2      Subd. 2.  [MEMBERSHIP.] The members of the board are the 
  7.3   director of the office of strategic and long-range planning, the 
  7.4   commissioner of public service, the commissioner of the 
  7.5   pollution control agency environmental protection, the 
  7.6   commissioner of natural resources, the director of the office of 
  7.7   environmental assistance, the commissioner of agriculture, the 
  7.8   commissioner of health, the commissioner of transportation, the 
  7.9   chair of the board of water and soil resources commissioner of 
  7.10  trade and economic development, and a representative of the 
  7.11  governor's office designated by the governor the commissioner of 
  7.12  environmental quality and sustainable development.  The governor 
  7.13  shall appoint five six members from the general public to the 
  7.14  board, subject to the advice and consent of the senate.  At 
  7.15  least two of the five six public members must have knowledge of 
  7.16  and be conversant in water management issues in the state.  At 
  7.17  least one public member must be an elected county official and 
  7.18  at least one member must be an elected municipal official.  
  7.19  Notwithstanding the provisions of section 15.06, subdivision 6, 
  7.20  members of the board may not delegate their powers and 
  7.21  responsibilities as board members to any other person. 
  7.22     Sec. 6.  Minnesota Statutes 1994, section 116C.03, 
  7.23  subdivision 3a, is amended to read: 
  7.24     Subd. 3a.  The representative of the governor's office 
  7.25  shall serve commissioner of sustainable environmental policy 
  7.26  serves as chair of the board.  The commissioner is responsible 
  7.27  for ensuring the coordination of state environmental and natural 
  7.28  resources policy between the departments of environmental 
  7.29  protection and natural resources, as well as attaining the goals 
  7.30  of the Minnesota environmental policy act.  The commissioner 
  7.31  must report regularly to the governor on the progress of 
  7.32  attaining coordination between environmental and natural 
  7.33  resources programs and may make recommendations to further the 
  7.34  coordination of these programs and to attain the goals of the 
  7.35  environmental policy act. 
  7.36     Sec. 7.  Minnesota Statutes 1994, section 116C.04, 
  8.1   subdivision 2, is amended to read: 
  8.2      Subd. 2.  (a) The board shall determine which environmental 
  8.3   problems of interdepartmental concern to state government shall 
  8.4   be considered by the board.  The board shall initiate 
  8.5   interdepartmental investigations into those matters that it 
  8.6   determines are in need of study.  Topics for investigation may 
  8.7   include but need not be limited to future population and 
  8.8   settlement patterns, air and water resources and quality, solid 
  8.9   waste management, transportation and utility corridors, 
  8.10  economically productive open space, energy policy and need, 
  8.11  growth and development, and land use planning, and sustainable 
  8.12  development.  
  8.13     (b) The board shall review programs of state agencies that 
  8.14  significantly affect the environment and coordinate recommend to 
  8.15  the commissioner coordination of those it determines are 
  8.16  interdepartmental in nature, and insure agency compliance with 
  8.17  state environmental policy.  
  8.18     (c) The board may review environmental rules and criteria 
  8.19  for granting and denying permits by state agencies and may 
  8.20  resolve conflicts involving among state agencies with regard to 
  8.21  programs, rules, permits and procedures significantly affecting 
  8.22  the environment, provided that such resolution of conflicts is 
  8.23  consistent with state environmental policy.  
  8.24     (d) State agencies shall submit to the board all proposed 
  8.25  legislation of major significance relating to the environment 
  8.26  and the board shall submit a report to the governor and the 
  8.27  legislature with comments on such major environmental proposals 
  8.28  of state agencies.  The board shall formulate a policy of 
  8.29  sustainable development for recommendation for adoption by the 
  8.30  legislature.  The board's recommendation must include any 
  8.31  proposed changes that are necessary to the environmental policy 
  8.32  act and to any other laws that must be changed to conform to the 
  8.33  sustainable development policy that is recommended.  The board 
  8.34  shall review the policy at least biennially and shall recommend 
  8.35  any necessary changes in a report it must make to the governor 
  8.36  and legislature by July 1 of each even-numbered year.  When 
  9.1   preparing a budget or developing a policy, each state agency 
  9.2   must refer to and be guided by the sustainable development 
  9.3   policy in effect at the time of preparation of the budget or 
  9.4   development of the policy.  Any policy that is recommended to 
  9.5   the legislature, as it relates to or affects any state-owned 
  9.6   land granted to the state by the United States under school, 
  9.7   swampland, internal improvement, university, and other grants, 
  9.8   must recognize and give effect to any conditions or limitations 
  9.9   attached to these grants.  
  9.10     (e) The board shall:  
  9.11     (1) determine water law and policy under sections 103A.301 
  9.12  to 103A.341; 
  9.13     (2) resolve disputes with respect to comprehensive local 
  9.14  water plans under section 103B.345; and 
  9.15     (3) hear appeals of watershed district orders under section 
  9.16  103D.535. 
  9.17     Sec. 8.  [116C.09] [ALTERNATIVE SUMMARY REVIEW OF AGENCY 
  9.18  DECISIONS; PROCEDURES, HEARING, REMAND.] 
  9.19     Subdivision 1.  [PETITIONER.] A person listed in this 
  9.20  subdivision may petition the board for alternative summary 
  9.21  review of a decision by a responsible governmental unit under 
  9.22  section 116D.04 to prepare an environmental impact statement or 
  9.23  an environmental assessment worksheet, or to conduct no 
  9.24  environmental review at all: 
  9.25     (1) a responsible governmental unit; 
  9.26     (2) a person who is a party to the matter on which the 
  9.27  responsible governmental unit has made the decision; or 
  9.28     (3) a person who has been granted the right to intervene in 
  9.29  the matter on which the responsible governmental unit has made 
  9.30  the decision. 
  9.31     Subd. 2.  [PETITION.] The petitioner must file a written 
  9.32  petition for summary review within 15 days after receiving 
  9.33  written notice from the department of the decision for which 
  9.34  review is sought.  The petition must be in a form prescribed by 
  9.35  the commissioner.  To the greatest extent possible, any facts 
  9.36  contained in the petition shall be agreed upon by the petitioner 
 10.1   and the department.  The matter is not a contested case under 
 10.2   chapter 14. 
 10.3      Subd. 3.  [HEARING.] Within 30 days after receiving the 
 10.4   petition the board shall hold a hearing on the matter, unless it 
 10.5   determines that more time is necessary to prepare for the 
 10.6   hearing and either issues an order authorizing delay until a 
 10.7   later specified time or issues an order denying summary review.  
 10.8   The commissioner or, at the board's request, a hearing officer 
 10.9   requested from the office of administrative hearings, is the 
 10.10  presiding officer at the hearing.  The board may direct that all 
 10.11  or certain petitions be heard by a three-member panel consisting 
 10.12  of the presiding officer, one state agency board member, and one 
 10.13  public board member.  The presiding officer shall conduct the 
 10.14  summary review hearing under the requirements of this section in 
 10.15  a fair and impartial but informed manner that expedites the 
 10.16  review to the greatest extent possible.  To the greatest extent 
 10.17  possible, the matter shall be heard on the record developed 
 10.18  before the petition is filed.  Any witnesses that appear must be 
 10.19  sworn and are subject to cross-examination, but testimony 
 10.20  presented and evidence submitted need not comply with rules of 
 10.21  procedure relating to testimony or evidence in civil matters.  
 10.22     Subd. 4.  [INTERVENTION; DENIAL OF SUMMARY REVIEW.] A 
 10.23  person other than the petitioner who has previously participated 
 10.24  in the matter for which summary review is sought but who was not 
 10.25  a party or an intervenor in that matter, may submit to the board 
 10.26  or panel a written request, before the hearing begins, to appear 
 10.27  and participate as an intervenor.  The requester shall state, in 
 10.28  writing, the reasons believed by the requester to justify 
 10.29  intervention.  At the beginning of the hearing, the panel shall 
 10.30  determine whether, and to what extent, the requester will be 
 10.31  allowed to intervene.  
 10.32     Subd. 5.  [DENIAL OF SUMMARY REVIEW.] The panel may also 
 10.33  determine, in writing, at or before the beginning of the 
 10.34  hearing, that summary review is not in the public interest and 
 10.35  that the matter is inappropriate for summary review, and shall 
 10.36  issue its order denying summary review, with reasons.  That 
 11.1   order is not appealable.  However, the petitioner may request 
 11.2   review, or take an appeal of the decision of the responsible 
 11.3   governmental unit for which summary review has been denied, in 
 11.4   the same manner that is otherwise provided by law for review or 
 11.5   appeal of the responsible governmental unit decision and within 
 11.6   the time period otherwise provided by law for such a request for 
 11.7   review or appeal.  The time within which the review may be 
 11.8   requested or the appeal may be taken begins to run the day after 
 11.9   the person receives written notice of the board's or panel's 
 11.10  order denying alternative summary review.  
 11.11     Subd. 6.  [DECISION.] The board or panel shall issue its 
 11.12  decision in writing within 15 days after concluding the 
 11.13  hearing.  The decision by the board or panel shall affirm, 
 11.14  affirm in part, reverse, or reverse in part the decision of the 
 11.15  responsible governmental unit.  The decision shall include 
 11.16  findings based on the record before the board or panel, 
 11.17  conclusions, including reasons for the conclusions, as to 
 11.18  whether the decision of the responsible governmental unit 
 11.19  complies with the environmental policy law applicable to the 
 11.20  matter, and an order remanding the matter to the responsible 
 11.21  governmental unit for action that may be necessary under the 
 11.22  order.  The board or panel shall notify the petitioner and any 
 11.23  intervenor of its decision by mailing a copy of the decision by 
 11.24  certified mail to the petitioner or intervenor.  Within 30 days 
 11.25  after receiving the decision, a petitioner and any intervenor 
 11.26  having the right to appeal the underlying responsible 
 11.27  governmental unit decision may appeal the decision by the board 
 11.28  or panel to the court of appeals.  The appeal shall be 
 11.29  determined on the record made before the board or panel. 
 11.30     Subd. 7.  [SUMMARY REVIEW AN ALTERNATIVE.] The summary 
 11.31  review procedure provided by this section is an alternative, not 
 11.32  additional, procedure to the review or appeal procedures 
 11.33  otherwise available under other laws in regard to those 
 11.34  responsible governmental unit decisions that may be summarily 
 11.35  reviewed under this section. 
 11.36     Sec. 9.  Minnesota Statutes 1994, section 116C.24, 
 12.1   subdivision 2, is amended to read: 
 12.2      Subd. 2.  [BOARD.] "Board" means the Minnesota sustainable 
 12.3   environmental quality policy board. 
 12.4      Sec. 10.  Minnesota Statutes 1994, section 116C.24, 
 12.5   subdivision 2a, is amended to read: 
 12.6      Subd. 2a.  [COMMISSIONER.] "Commissioner" means the 
 12.7   commissioner of trade and economic development sustainable 
 12.8   environmental policy.  
 12.9      Sec. 11.  Minnesota Statutes 1994, section 116C.24, 
 12.10  subdivision 3, is amended to read: 
 12.11     Subd. 3.  [COORDINATION UNIT.] "Coordination unit" means 
 12.12  the bureau of business licenses or other office established 
 12.13  pursuant to sections 116J.73 to 116J.76 section 116C.25. 
 12.14     Sec. 12.  Minnesota Statutes 1994, section 116C.25, is 
 12.15  amended to read: 
 12.16     116C.25 [ENVIRONMENTAL PERMITS COORDINATION UNIT.] 
 12.17     The commissioner of trade and economic 
 12.18  development sustainable environmental policy shall direct the 
 12.19  establish a bureau of business licenses, office, or other 
 12.20  organizational unit to act as the a coordination unit to 
 12.21  implement and administer the provisions of sections 116C.22 to 
 12.22  116C.34.  The commissioner shall employ necessary staff to work 
 12.23  for the coordination unit on a continuous basis. 
 12.24     Sec. 13.  Minnesota Statutes 1994, section 116C.34, is 
 12.25  amended to read: 
 12.26     116C.34 [BUREAU OF BUSINESS LICENSES PUBLIC INFORMATION AND 
 12.27  REFERRAL SYSTEM; COORDINATION UNIT DUTIES.] 
 12.28     Subdivision 1.  [INFORMATION AND REFERRAL SYSTEM; OFFICE 
 12.29  AND OMBUDSMAN.] The bureau of business licenses commissioner 
 12.30  shall establish and maintain as a separate bureau, office, or 
 12.31  other organizational unit, an information and referral system to 
 12.32  assist the public in the understanding and compliance with the 
 12.33  requirements of state and local governmental laws and rules 
 12.34  concerning the use of natural resources and protection of the 
 12.35  environment, together with information relating to associated 
 12.36  permitting, enforcement, and rulemaking processes.  The system 
 13.1   shall provide a telephone information service and disseminate 
 13.2   printed materials.  The bureau commissioner shall provide 
 13.3   assistance to regional development commissions and local 
 13.4   governments desiring to create a permit information center. 
 13.5      Subd. 2.  [COORDINATION UNIT DUTIES.] The bureau 
 13.6   coordination unit shall: 
 13.7      (a) Identify all existing state licenses, permit 
 13.8   certifications, approvals, compliance schedules, or other 
 13.9   programs which pertain to the use of natural resources and to 
 13.10  protection of the environment. 
 13.11     (b) Standardize permit titles and assign designation codes 
 13.12  to all such permits which would thereafter be imprinted on all 
 13.13  permit forms. 
 13.14     (c) Develop permit profiles including applicable rules 
 13.15  copies of all appropriate permit forms, statutory mandate and 
 13.16  legislative history, names of individuals administering the 
 13.17  program, permit processing procedures, documentation of the 
 13.18  magnitude of the program and of geographic and seasonal 
 13.19  distribution of the workload, and estimated application 
 13.20  processing time. 
 13.21     (d) Identify the public information procedures currently 
 13.22  associated with each permit program. 
 13.23     (e) Identify the data monitored or acquired through each 
 13.24  permit and ascertain current users of that data. 
 13.25     (f) Recommend revisions to the list of natural resource 
 13.26  management and development permits contained in Minnesota 
 13.27  Statutes 1974, section 116D.04, subdivision 5. 
 13.28     (g) Recommend legislative or administrative modifications 
 13.29  of existing permit programs to increase their efficiency and 
 13.30  utility. 
 13.31     Subd. 3.  [COUNTY AUDITOR'S DUTIES.] The auditor of each 
 13.32  county shall post in a conspicuous place in the auditor's office 
 13.33  the telephone numbers of the bureau of business licenses 
 13.34  coordination unit and the permit information center in the 
 13.35  office of the applicable regional development commission; copies 
 13.36  of any master applications or permit applications forwarded to 
 14.1   the auditor pursuant to section 116C.27, subdivision 1; and 
 14.2   copies of any information published by the bureau coordination 
 14.3   unit or an information center pursuant to subdivision 1. 
 14.4                              ARTICLE 3  
 14.5                          NATURAL RESOURCES 
 14.6      Section 1.  Minnesota Statutes 1994, section 84.01, 
 14.7   subdivision 1, is amended to read: 
 14.8      Subdivision 1.  [DEPARTMENT, COMMISSIONER; POWERS AND 
 14.9   DUTIES.] The name of the department of conservation is changed 
 14.10  to the department of natural resources.  The name of the 
 14.11  commissioner of conservation is changed to the commissioner of 
 14.12  natural resources.  Subject to the provisions of this act, Laws 
 14.13  1969, chapter 1129, and other applicable laws, the department of 
 14.14  natural resources with its commissioner and other officers shall 
 14.15  continue to exercise all the powers and duties vested in, or 
 14.16  imposed upon its commissioner as existing and constituted 
 14.17  immediately prior to the effective date of Laws 1969, chapter 
 14.18  1129 this act. 
 14.19     Sec. 2.  Minnesota Statutes 1994, section 84.01, 
 14.20  subdivision 3, is amended to read: 
 14.21     Subd. 3.  [ASSISTANT COMMISSIONERS, OFFICERS, EMPLOYEES; 
 14.22  DELEGATIONS.] Subject to the provisions of this act, Laws 1969, 
 14.23  chapter 1129, and to other applicable laws the commissioner 
 14.24  shall organize the department and employ three assistant 
 14.25  commissioners, each of whom shall serve at the pleasure of the 
 14.26  commissioner in the unclassified service, one of whom shall have 
 14.27  responsibility for coordinating and directing the planning of 
 14.28  every division within the agency, and such other officers, 
 14.29  employees, and agents as the commissioner may deem necessary to 
 14.30  discharge the functions of the department, define the duties of 
 14.31  such officers, employees, and agents and to delegate to them any 
 14.32  of the commissioner's powers, duties, and responsibilities 
 14.33  subject to the control of, and under the conditions prescribed 
 14.34  by, the commissioner.  Appointments to exercise delegated power 
 14.35  shall be by written order filed with the secretary of state. 
 14.36     Sec. 3.  Minnesota Statutes 1994, section 84.027, is 
 15.1   amended by adding a subdivision to read: 
 15.2      Subd. 6a.  [POWERS AND DUTIES TRANSFERRED TO DEPARTMENT OF 
 15.3   NATURAL RESOURCES.] (a) The powers and duties of the board of 
 15.4   water and soil resources, except those transferred to the 
 15.5   sustainable environmental policy board under article 2, section 
 15.6   1, subdivision 2, and except the personnel position transferred 
 15.7   to the department of environmental protection under section 4, 
 15.8   are transferred to the department of natural resources in 
 15.9   accordance with section 15.039.  The former board of water and 
 15.10  soil resources is abolished. 
 15.11     (b) Nothing in this subdivision is intended to abrogate or 
 15.12  modify any rights now enjoyed by affected employees under terms 
 15.13  of an agreement between an exclusive bargaining representative 
 15.14  and the state or one of its appointing authorities.  
 15.15     Sec. 4.  [POSITION TRANSFERRED.] 
 15.16     The following complement position under the board of water 
 15.17  and soil resources is transferred to the department of 
 15.18  environmental protection:  one complement position relating to 
 15.19  feedlot matters.  
 15.20     Sec. 5.  Minnesota Statutes 1994, section 103B.3355, is 
 15.21  amended to read: 
 15.22     103B.3355 [PUBLIC VALUE CRITERIA FOR WETLANDS.] 
 15.23     (a) The board of water and soil resources, in consultation 
 15.24  with the commissioner of natural resources, shall adopt rules 
 15.25  establishing criteria to determine the public value of 
 15.26  wetlands.  The rules must consider the public benefit and use of 
 15.27  the wetlands and include:  
 15.28     (1) criteria to determine the benefits of wetlands for 
 15.29  water quality, including filtering of pollutants to surface and 
 15.30  groundwater, utilization of nutrients that would otherwise 
 15.31  pollute public waters, trapping of sediments, and utilization of 
 15.32  the wetland as a recharge area for groundwater; 
 15.33     (2) criteria to determine the benefits of wetlands for 
 15.34  floodwater retention, including the potential for flooding in 
 15.35  the watershed, the value of property subject to flooding, and 
 15.36  the reduction in potential flooding by the wetland; 
 16.1      (3) criteria to determine the benefits of wetlands for 
 16.2   public recreation, including wildlife habitat, hunting and 
 16.3   fishing areas, wildlife breeding areas, wildlife viewing areas, 
 16.4   aesthetically enhanced areas, and nature areas; 
 16.5      (4) criteria to determine the benefits of wetlands for 
 16.6   commercial uses, including wild rice growing and harvesting and 
 16.7   aquaculture; and 
 16.8      (5) criteria to determine the benefits of wetlands for 
 16.9   other public uses.  
 16.10     (b) The criteria established under this section must be 
 16.11  used to determine the public value of wetlands in the state.  
 16.12  The board of water and soil resources, in consultation with the 
 16.13  commissioner of natural resources, shall also use the criteria 
 16.14  in identifying regions of the state where preservation, 
 16.15  enhancement, restoration, and establishment of wetlands would 
 16.16  have high public value.  Before the criteria are adopted, 
 16.17  the board, in consultation with the commissioner, may identify 
 16.18  high priority wetland regions using available information 
 16.19  relating to the factors listed in paragraph (a).  The board 
 16.20  commissioner shall notify local units of government with water 
 16.21  planning authority of these high priority regions. 
 16.22     Sec. 6.  Minnesota Statutes 1994, section 103D.101, 
 16.23  subdivision 2, is amended to read: 
 16.24     Subd. 2.  [INVESTIGATIONS.] To implement this chapter and 
 16.25  to hold hearings, the chair and members of the board 
 16.26  commissioner of natural resources may subpoena witnesses, 
 16.27  administer oaths, and compel the production of books, records, 
 16.28  and other evidence.  
 16.29     Sec. 7.  [REPEALER.] 
 16.30     Minnesota Statutes 1994, sections 103B.101, subdivisions 1, 
 16.31  2, 3, 4, 5, 6, 7, 8, and 10; 103B.205, subdivision 2; 103B.305, 
 16.32  subdivision 2; 103B.3363, subdivision 2; 103C.101, subdivision 
 16.33  12; and 103D.011, subdivision 5, are repealed. 
 16.34                             ARTICLE 4 
 16.35                ENVIRONMENTAL PROTECTION DEPARTMENT 
 16.36     Section 1.  [DEPARTMENT OF ENVIRONMENTAL PROTECTION 
 17.1   CREATED; TRANSFERS OF POWER; TRANSITIONAL PROVISIONS.] 
 17.2      Subdivision 1.  [TRANSFER FROM ENVIRONMENTAL QUALITY 
 17.3   BOARD.] The department of environmental protection is created 
 17.4   under sections 11 to 14, the transfers of powers and duties 
 17.5   under this article, and the provisions of article 1.  The 
 17.6   department is the successor to the pollution control agency.  
 17.7   The powers and duties of the pollution control agency are 
 17.8   transferred to the department of environmental protection under 
 17.9   Minnesota Statutes, section 15.039.  The former pollution 
 17.10  control agency is abolished.  
 17.11     Subd. 2.  [TRANSFER FROM THE OFFICE OF ENVIRONMENTAL 
 17.12  ASSISTANCE.] The powers and duties of the office of 
 17.13  environmental assistance and its director, including all powers 
 17.14  formerly vested in the waste management board, are transferred 
 17.15  to the department of environmental protection under Minnesota 
 17.16  Statutes, section 15.039.  The former office of environmental 
 17.17  assistance is abolished. 
 17.18     Subd. 3.  [TRANSFER FROM THE HARMFUL SUBSTANCES 
 17.19  COMPENSATION BOARD.] The powers and duties of the harmful 
 17.20  substances compensation board are transferred to the department 
 17.21  of environmental protection under Minnesota Statutes, section 
 17.22  15.039.  The former harmful substances compensation board is 
 17.23  abolished.  
 17.24     Subd. 4.  [TRANSFER FROM THE PETROLEUM TANK RELEASE 
 17.25  COMPENSATION BOARD.] The powers and duties of the petroleum tank 
 17.26  release compensation board and the powers and duties of the 
 17.27  commissioner of commerce relating to the petroleum tank release 
 17.28  compensation board are transferred to the department of 
 17.29  environmental protection under Minnesota Statutes, section 
 17.30  15.039.  The former petroleum tank release compensation board is 
 17.31  abolished.  
 17.32     Subd. 5.  [TRANSFER FROM THE MINNESOTA PUBLIC FACILITIES 
 17.33  AUTHORITY.] Except for powers and duties transferred to the 
 17.34  commissioner of finance by this subdivision, the powers and 
 17.35  duties of the Minnesota public facilities authority and the 
 17.36  powers and duties of the commissioner of trade and economic 
 18.1   development relating to the authority are transferred to the 
 18.2   department of environmental protection under Minnesota Statutes, 
 18.3   section 15.039.  The powers and duties of the public facilities 
 18.4   authority relating to the issuance of bonds, servicing of bonds, 
 18.5   arbitrage, and fund investment under Minnesota Statutes, 
 18.6   sections 446A.12 to 446A.20 and 446A.21, subdivision 1, 
 18.7   paragraph (b), are transferred to the commissioner of finance 
 18.8   under Minnesota Statutes, section 15.039.  The former Minnesota 
 18.9   public facilities authority is abolished.  
 18.10     Subd. 6.  [EMPLOYMENT AGREEMENTS.] Nothing in subdivisions 
 18.11  1 to 5 is intended to abrogate or modify rights now enjoyed by 
 18.12  affected employees under terms of an agreement between an 
 18.13  exclusive bargaining representative and the state or one of its 
 18.14  appointing authorities.  
 18.15     Sec. 2.  Minnesota Statutes 1994, section 115B.25, 
 18.16  subdivision 2, is amended to read: 
 18.17     Subd. 2.  [BOARD COMMISSIONER.] "Board" "Commissioner" 
 18.18  means the harmful substance compensation board established in 
 18.19  section 115B.27 commissioner of environmental protection. 
 18.20     Sec. 3.  Minnesota Statutes 1994, section 115B.28, 
 18.21  subdivision 1, is amended to read: 
 18.22     Subdivision 1.  [DUTIES.] In addition to performing duties 
 18.23  specified in sections 115B.25 to 115B.37 or in other law, and 
 18.24  subject to the limitations on disclosure contained in section 
 18.25  115B.35, the board commissioner shall: 
 18.26     (1) adopt or modify rules as soon as practicable after all 
 18.27  members are appointed, including rules governing practice and 
 18.28  procedure before the board, the form and procedure for 
 18.29  applications for compensation, and procedures for claims 
 18.30  investigations; 
 18.31     (2) publicize the availability of compensation and 
 18.32  application procedures on a statewide basis with special 
 18.33  emphasis on geographical areas surrounding sites identified by 
 18.34  the pollution control agency as having releases from a facility 
 18.35  where a harmful substance was placed or came to be located prior 
 18.36  to July 1, 1983; 
 19.1      (3) collect, analyze, and make available to the public, in 
 19.2   consultation with the department of health, the pollution 
 19.3   control agency, the University of Minnesota medical and public 
 19.4   health schools, and the medical community, data regarding 
 19.5   injuries relating to exposure to harmful substances; and 
 19.6      (4) prepare and transmit by December 31 of each year to the 
 19.7   governor and the legislature an annual report to include (a) a 
 19.8   summary of board activity under clause (3); (b) data determined 
 19.9   by the board commissioner from actual cases, including but not 
 19.10  limited to number of cases, actual compensation received by each 
 19.11  claimant, types of cases, and types of injuries compensated, as 
 19.12  they relate to types of harmful substances as well as length of 
 19.13  exposure, but excluding identification of the claimants; (c) all 
 19.14  administrative costs associated with the business of the board 
 19.15  under sections 115B.25 to 115B.37; and (d) board recommendations 
 19.16  for legislative changes, further study, or any other 
 19.17  recommendation aimed at improving the system of compensation. 
 19.18     Sec. 4.  Minnesota Statutes 1994, section 115B.28, 
 19.19  subdivision 4, is amended to read: 
 19.20     Subd. 4.  [ADMINISTRATIVE PERSONNEL AND SERVICES.] The 
 19.21  board may appoint an executive director who is not a member of 
 19.22  the board.  The executive director is in the unclassified 
 19.23  service.  The commissioner of health shall provide staff 
 19.24  assistance, administrative services, and office space under a 
 19.25  contract with the board.  The board shall reimburse the 
 19.26  commissioner for the staff, services, and space provided.  In 
 19.27  order to perform its the duties prescribed by sections 115B.25 
 19.28  to 115B.37, the board commissioner may request information from 
 19.29  the supervising officer of any state agency or state institution 
 19.30  of higher education.  When requesting health data as defined in 
 19.31  section 13.38 or sections 144.671 to 144.69, the board 
 19.32  commissioner must submit a written release signed by the subject 
 19.33  of the data or, if the subject is deceased, a representative of 
 19.34  the deceased, authorizing release of the data in whole or in 
 19.35  part.  The supervising officer shall comply with the board's 
 19.36  commissioner's request to the extent possible considering 
 20.1   available agency or institution appropriations and may assign 
 20.2   agency or institution employees to assist the board commissioner 
 20.3   in performing its duties under sections 115B.25 to 115B.37. 
 20.4      Sec. 5.  Minnesota Statutes 1994, section 115B.35, 
 20.5   subdivision 1, is amended to read: 
 20.6      Subdivision 1.  [ASSIGNMENT OF CLAIMS.] The chair of the 
 20.7   board commissioner shall assign each claim that has been 
 20.8   accepted for filing to one member of the board, except that no 
 20.9   claims shall be assigned to either of the two members appointed 
 20.10  to the board as members of the general public a staff person in 
 20.11  the department of environmental protection. 
 20.12     Sec. 6.  Minnesota Statutes 1994, section 115B.35, 
 20.13  subdivision 4, is amended to read: 
 20.14     Subd. 4.  [PRELIMINARY DECISION.] The board member staff 
 20.15  person to whom the claim is assigned shall review all materials 
 20.16  filed in support of the claim and may cause an investigation to 
 20.17  be conducted into the validity of the claim.  The board member 
 20.18  staff person may make a preliminary decision on the basis of the 
 20.19  papers filed in support of the claim and the report of any 
 20.20  investigation of it. The decision must be in writing and include 
 20.21  the reasons for the decision, subject to the limitations on 
 20.22  disclosure of protected information. 
 20.23     Sec. 7.  Minnesota Statutes 1994, section 115B.35, 
 20.24  subdivision 5, is amended to read: 
 20.25     Subd. 5.  [CIRCULATION OF PRELIMINARY DECISION.] Copies A 
 20.26  copy of the preliminary decision made under subdivision 4 must 
 20.27  be circulated provided to the other board members commissioner 
 20.28  as soon as practicable.  On receipt of the preliminary decision, 
 20.29  the members have commissioner has 20 days to challenge disagree 
 20.30  with it by written notice to the members who made the decision.  
 20.31  If no other member challenges the preliminary decision, a copy 
 20.32  must be sent to affected parties.  The claimant who may 
 20.33  challenge the decision by written notice to the board 
 20.34  commissioner within 30 days of receipt of the decision.  If 
 20.35  the board member staff person relies on protected information to 
 20.36  deny a claim, the preliminary decision must include a statement 
 21.1   to this effect.  If no notice is received within the required 
 21.2   time, the preliminary decision becomes a final decision of 
 21.3   the board commissioner.  
 21.4      Sec. 8.  Minnesota Statutes 1994, section 115B.35, 
 21.5   subdivision 6, is amended to read: 
 21.6      Subd. 6.  [CHALLENGES.] If a board member or a claimant 
 21.7   challenges a preliminary decision made pursuant to subdivision 
 21.8   4, the full board commissioner shall order the claimant to 
 21.9   appear before the board.  The appearance is not a contested case 
 21.10  hearing under chapter 14.  The claimant may produce further 
 21.11  evidence to support the claim, including books, studies, 
 21.12  reports, and any other written material and oral testimony of 
 21.13  witnesses, including experts.  The board members commissioner 
 21.14  may ask questions of the claimant and any witnesses presented by 
 21.15  the claimant.  After the appearance, the board commissioner 
 21.16  shall make a final decision on the claim as soon as 
 21.17  practicable.  The decision must be in writing and include the 
 21.18  reasons for the decision, subject to the limits on disclosure of 
 21.19  protected information.  A copy of each final decision must be 
 21.20  sent to the claimant, including, for a claim that is granted, an 
 21.21  explanation of the form in which the claim will be paid.  If the 
 21.22  final decision of the board commissioner relies on protected 
 21.23  information to deny a claim, the decision shall include a 
 21.24  statement to this effect.  At the claimant's request, the board 
 21.25  commissioner shall disclose to the claimant that portion of the 
 21.26  protected information relied on by the board commissioner and 
 21.27  shall provide the claimant with an opportunity to provide 
 21.28  additional information relevant to the element of the standard 
 21.29  that has not been demonstrated.  The board commissioner shall 
 21.30  make a final decision based on all available information.  
 21.31     Sec. 9.  Minnesota Statutes 1994, section 115C.07, 
 21.32  subdivision 3, is amended to read: 
 21.33     Subd. 3.  [RULES.] (a) The board commissioner of 
 21.34  environmental protection shall adopt rules regarding its 
 21.35  practices and procedures before the commissioner, the form and 
 21.36  procedure for applications for compensation from the fund, 
 22.1   procedures for investigation of claims and specifying the costs 
 22.2   that are eligible for reimbursement from the fund.  
 22.3      (b) The board may adopt emergency rules under this 
 22.4   subdivision for one year after June 1, 1993.  
 22.5      (c) The board shall adopt emergency rules on competitive 
 22.6   bidding that specify a bid format and an invoice format that are 
 22.7   consistent with each other and with an application for 
 22.8   reimbursement. 
 22.9      (d) The board shall adopt emergency rules under sections 
 22.10  14.29 and 14.385 to establish costs that are not eligible for 
 22.11  reimbursement. 
 22.12     (e) By January 1, 1994, the board shall publish proposed 
 22.13  rules and establishing a fee schedule of costs or criteria for 
 22.14  evaluating the reasonableness of costs submitted for 
 22.15  reimbursement.  The board shall adopt the rules by June 1, 1994. 
 22.16     (f) (b) The board commissioner may adopt rules requiring 
 22.17  certification of environmental consultants. 
 22.18     (g) The board may adopt other rules necessary to implement 
 22.19  this chapter. 
 22.20     Sec. 10.  Minnesota Statutes 1994, section 115C.10, 
 22.21  subdivision 1, is amended to read: 
 22.22     Subdivision 1.  [PAYMENT FROM ACCOUNT; SUBROGATION; 
 22.23  APPROPRIATION.] (a) If the cost of authorized actions under 
 22.24  section 115C.03 exceeds the amount appropriated to the agency 
 22.25  for the actions and amounts awarded to the agency from the 
 22.26  federal government, the agency may apply to the board for money 
 22.27  to pay for the actions from the account.  The board commissioner 
 22.28  shall pay the agency the cost of the proposed actions under 
 22.29  section 115C.03 if the board commissioner finds that the 
 22.30  conditions for the agency to be paid from the account have been 
 22.31  met, and that an adequate amount exists in the account to pay 
 22.32  for the corrective action.  If the board pays payment is made 
 22.33  from the account to the agency for the cost of authorized 
 22.34  actions for which a responsible person has petroleum tank 
 22.35  leakage or spill insurance coverage, the board is subrogated to 
 22.36  the agency's rights agency possesses the rights prescribed by 
 23.1   section 115C.04, subdivision 3, with respect to the responsible 
 23.2   person and the responsible person's insurer, to the extent of 
 23.3   the board's account's payment of costs for which the responsible 
 23.4   person has insurance coverage, subject to the limitations on an 
 23.5   agency cost recovery action set forth in section 115C.04, 
 23.6   subdivision 3.  The board commissioner may request the attorney 
 23.7   general to bring an action in district court against the 
 23.8   responsible person or that person's insurer to enforce the 
 23.9   board's subrogation these rights.  Acceptance of a payment from 
 23.10  the board by the agency constitutes an assignment to the board 
 23.11  of the subrogation rights specified in this subdivision. 
 23.12     (b) Money in the account is appropriated to the board 
 23.13  commissioner for the purpose of this subdivision.  
 23.14     Sec. 11.  Minnesota Statutes 1994, section 116.01, is 
 23.15  amended to read: 
 23.16     116.01 [POLICY.] 
 23.17     To meet the variety and complexity of problems relating to 
 23.18  water, air and land pollution in the areas of the state affected 
 23.19  thereby, and to achieve a reasonable degree of purity of water, 
 23.20  air and land resources of the state consistent with the maximum 
 23.21  enjoyment and use thereof in furtherance of the welfare of the 
 23.22  people of the state, it is in the public interest that there be 
 23.23  established a pollution control agency department of 
 23.24  environmental protection.  
 23.25     Sec. 12.  Minnesota Statutes 1994, section 116.02, 
 23.26  subdivision 5, is amended to read: 
 23.27     Subd. 5.  (a) The pollution control agency is the successor 
 23.28  of the water pollution control commission, and all powers and 
 23.29  duties now vested in or imposed upon said commission by chapter 
 23.30  115, or any act amendatory thereof or supplementary thereto, are 
 23.31  hereby transferred to, imposed upon, and vested in the Minnesota 
 23.32  pollution control agency, except as to those matters pending 
 23.33  before the commission in which hearings have been held and 
 23.34  evidence has been adduced.  The water pollution commission shall 
 23.35  complete its action in such pending matters not later than six 
 23.36  months from May 26, 1967.  The water pollution control 
 24.1   commission, as heretofore constituted, is hereby abolished, (a) 
 24.2   effective upon completion of its action in the pending cases, as 
 24.3   hereinbefore provided for; or (b) six months from May 26, 1967, 
 24.4   whichever is the earlier. 
 24.5      (b) Pursuant to this act and section 15.039, the powers and 
 24.6   duties transferred to the Minnesota pollution control agency 
 24.7   under this subdivision are transferred to the department of 
 24.8   environmental protection. 
 24.9      Sec. 13.  Minnesota Statutes 1994, section 116.03, 
 24.10  subdivision 1, is amended to read: 
 24.11     Subdivision 1.  [COMMISSIONER; DEPUTY, ASSISTANTS, AND 
 24.12  ADVISORY COUNCIL.] (a) The office of commissioner of the 
 24.13  pollution control agency department of environmental protection 
 24.14  is created as an agency in the executive branch of state 
 24.15  government and is under the supervision and control of the a 
 24.16  commissioner, who is appointed by the governor under the 
 24.17  provisions of section 15.06. 
 24.18     (b) The commissioner may appoint a deputy director 
 24.19  commissioner and an assistant commissioner commissioners who 
 24.20  shall be in the unclassified service. 
 24.21     Sec. 14.  Minnesota Statutes 1994, section 116.03, 
 24.22  subdivision 2, is amended to read: 
 24.23     Subd. 2.  The commissioner shall organize the agency 
 24.24  department and employ such assistants and other officers, 
 24.25  employees and agents as the commissioner may deem necessary to 
 24.26  discharge the functions of the commissioner's office and the 
 24.27  department, define the duties of such officers, employees and 
 24.28  agents, and delegate to them any of the commissioner's powers, 
 24.29  duties, and responsibilities, subject to the commissioner's 
 24.30  control and under such conditions as the commissioner may 
 24.31  prescribe.  The commissioner may also contract with persons, 
 24.32  firms, corporations, the federal government and any agency or 
 24.33  instrumentality thereof, the water research center of the 
 24.34  University of Minnesota or any other instrumentality of such 
 24.35  university, for doing any of the work of the commissioner's 
 24.36  office, and none of the provisions of chapter 16, relating to 
 25.1   bids, shall apply to such contracts.  All personnel employed and 
 25.2   all contracts entered into pursuant to this subdivision shall be 
 25.3   subject to the approval of the pollution control agency.  
 25.4   Agreements to exercise delegated powers shall be by written 
 25.5   order filed with the secretary of state.  An employee of the 
 25.6   state commissioner of health engaged in environmental sanitation 
 25.7   work may transfer to the pollution control agency department of 
 25.8   environmental protection with the approval of the commissioner.  
 25.9   Under such a transfer the employee shall be assigned to a 
 25.10  position of similar responsibility and pay without loss of 
 25.11  seniority, vacation, sick leave, or other benefits under the 
 25.12  state civil service act. 
 25.13     Sec. 15.  Minnesota Statutes 1994, section 144.871, 
 25.14  subdivision 5, is amended to read: 
 25.15     Subd. 5.  [COMMISSIONER.] "Commissioner" means the 
 25.16  commissioner of health environmental protection. 
 25.17     Sec. 16.  Minnesota Statutes 1994, section 326.71, 
 25.18  subdivision 5, is amended to read: 
 25.19     Subd. 5.  [COMMISSIONER.] "Commissioner" means the 
 25.20  commissioner of health environmental protection and the 
 25.21  commissioner's authorized delegates.  
 25.22     Sec. 17.  Minnesota Statutes 1994, section 446A.02, 
 25.23  subdivision 3, is amended to read: 
 25.24     Subd. 3.  [COMMISSIONER.] "Commissioner" means the 
 25.25  commissioner of trade and economic development environmental 
 25.26  protection. 
 25.27     Sec. 18.  Minnesota Statutes 1994, section 446A.04, 
 25.28  subdivision 1, is amended to read: 
 25.29     Subdivision 1.  [BYLAWS; RULES.] The authority shall adopt 
 25.30  bylaws for its organization and internal management.  The 
 25.31  commissioner may adopt rules covering the authority's 
 25.32  operations, properties, and facilities under sections 446A.01 to 
 25.33  446A.09. 
 25.34     Sec. 19.  Minnesota Statutes 1994, section 446A.04, 
 25.35  subdivision 5, is amended to read: 
 25.36     Subd. 5.  [FEES.] (a) The authority commissioner may set 
 26.1   and collect fees for costs incurred by the authority for audits, 
 26.2   arbitrage accounting, and payment of fees charged by the state 
 26.3   board of investment.  The authority commissioner may also set 
 26.4   and collect fees for costs incurred by the commissioner and the 
 26.5   pollution control agency department of environmental protection, 
 26.6   including costs for personnel and administrative services, for 
 26.7   its financings and the establishment and maintenance of reserve 
 26.8   funds.  Fees charged directly to borrowers upon executing a loan 
 26.9   agreement must not exceed one-half of one percent of the loan 
 26.10  amount.  Servicing fees assessed to loan repayments must not 
 26.11  exceed two percent of the loan repayment.  The disposition of 
 26.12  fees collected for costs incurred by the authority for audits, 
 26.13  arbitrage accounting, and payment of fees charged by the state 
 26.14  board of investment is governed by section 446A.11, subdivision 
 26.15  13.  Fees collected under this subdivision for costs incurred by 
 26.16  the commissioner or the pollution control agency department must 
 26.17  be credited to the general fund. 
 26.18     (b) The authority commissioner shall annually report to the 
 26.19  chairs of the finance and appropriations committees of the 
 26.20  legislature on: 
 26.21     (1) the amount of fees collected under this subdivision for 
 26.22  costs incurred by the authority for audits, arbitrage 
 26.23  accounting, and payment of fees charged by the state board of 
 26.24  investment; 
 26.25     (2) the purposes for which the fee proceeds have been 
 26.26  spent; and 
 26.27     (3) the amount of any remaining balance of fee proceeds. 
 26.28     Sec. 20.  Minnesota Statutes 1994, section 446A.07, 
 26.29  subdivision 4, is amended to read: 
 26.30     Subd. 4.  [INTENDED USE PLAN.] The pollution control agency 
 26.31  department of environmental protection shall annually prepare 
 26.32  and submit to the United States Environmental Protection Agency 
 26.33  an intended use plan.  The plan must identify the intended uses 
 26.34  of the amounts available to the water pollution control 
 26.35  revolving fund, including a list of wastewater treatment and 
 26.36  storm water projects and all other eligible activities to be 
 27.1   funded during the fiscal year.  Information regarding eligible 
 27.2   activities must be submitted to the pollution control 
 27.3   agency commissioner by the appropriate state agency or 
 27.4   department within 30 days of written notification by 
 27.5   the pollution control agency commissioner.  The pollution 
 27.6   control agency may not submit the plan until it has received the 
 27.7   review and comment of the authority or until 30 days have 
 27.8   elapsed since the plan was submitted to the authority, whichever 
 27.9   occurs first. 
 27.10     Sec. 21.  Minnesota Statutes 1994, section 446A.07, 
 27.11  subdivision 5, is amended to read: 
 27.12     Subd. 5.  [APPLICATIONS.] Applications by municipalities 
 27.13  and other entities identified in the annual intended use plan 
 27.14  for loans from the water pollution control revolving fund must 
 27.15  be made to the authority commissioner on forms requiring 
 27.16  information prescribed by the rules of the agency adopted under 
 27.17  this section.  The authority shall send the applications to the 
 27.18  agency within ten days of receipt.  The director commissioner 
 27.19  shall certify to the authority those applications that appear to 
 27.20  meet the criteria set forth in the Federal Water Pollution 
 27.21  Control Act, this section, and rules of the agency department. 
 27.22     Sec. 22.  Minnesota Statutes 1994, section 446A.07, 
 27.23  subdivision 6, is amended to read: 
 27.24     Subd. 6.  [AWARD AND TERMS OF LOANS.] The authority 
 27.25  commissioner shall award loans to those municipalities and other 
 27.26  entities certified by the pollution control agency commissioner 
 27.27  or shall provide funding for the appropriate state agency or 
 27.28  department to make loans for eligible activities certified by 
 27.29  the pollution control agency commissioner provided the use of 
 27.30  funds and the terms and conditions of the loans are in 
 27.31  conformance with the federal Water Pollution Control Act, this 
 27.32  section, and rules of the pollution control agency and the 
 27.33  authority department adopted under this section. 
 27.34     Sec. 23.  Minnesota Statutes 1994, section 446A.071, 
 27.35  subdivision 3, is amended to read: 
 27.36     Subd. 3.  [PROGRAM ADMINISTRATION.] The authority 
 28.1   commissioner may provide supplemental assistance to 
 28.2   municipalities demonstrating financial need whose applications 
 28.3   have been certified by the commissioner of the pollution control 
 28.4   agency under section 116.182.  The authority commissioner shall 
 28.5   provide supplemental assistance according to the priority 
 28.6   ranking established by the pollution control agency department 
 28.7   except for amounts set aside under subdivision 1, paragraph 
 28.8   (c).  The authority commissioner shall assist municipalities in 
 28.9   securing other funding from appropriate sources.  The authority 
 28.10  commissioner shall not award financial assistance under this 
 28.11  section unless it determines that the total project financing 
 28.12  will be in place. 
 28.13     Sec. 24.  Minnesota Statutes 1994, section 446A.071, 
 28.14  subdivision 4, is amended to read: 
 28.15     Subd. 4.  [FUNDING LEVEL.] (a) The authority commissioner 
 28.16  may provide supplemental assistance for essential project 
 28.17  components and costs as certified by the commissioner of the 
 28.18  pollution control agency under section 116.182, subdivision 4, 
 28.19  only if the loan or other financial assistance under section 
 28.20  446A.07 is not sufficient to provide financing for that portion 
 28.21  of the project.  The authority commissioner shall take into 
 28.22  account the ability of significant wastewater contributors to 
 28.23  pay their fair share of the total project costs in determining 
 28.24  eligibility of costs for supplemental assistance. 
 28.25     (b) When feasible, the authority commissioner shall 
 28.26  coordinate and leverage assistance under the wastewater 
 28.27  infrastructure funding program with other grant programs for 
 28.28  which the municipality is eligible. 
 28.29     (c) Requirements under paragraph (a) do not apply to the 
 28.30  economic development set-aside under subdivision 1, paragraph 
 28.31  (c). 
 28.32     Sec. 25.  Minnesota Statutes 1994, section 446A.071, 
 28.33  subdivision 5, is amended to read: 
 28.34     Subd. 5.  [APPLICATIONS.] Applications for supplemental 
 28.35  assistance must be made to the authority commissioner on forms 
 28.36  prescribed by the authority commissioner and must include 
 29.1   information identified in the rules of the authority and the 
 29.2   agency.  The authority shall forward an application to the 
 29.3   commissioner of the pollution control agency within ten days of 
 29.4   receipt.  The commissioner of the pollution control agency shall 
 29.5   review the projects and applications to determine if they meet 
 29.6   the criteria set forth in section 116.182 and the agency 
 29.7   departmental rules for the program.  The commissioner of the 
 29.8   pollution control agency shall certify approved applications to 
 29.9   the authority under section 116.182. 
 29.10     Sec. 26.  Minnesota Statutes 1994, section 446A.10, is 
 29.11  amended by adding a subdivision to read: 
 29.12     Subd. 3.  [TRANSFER TO DEPARTMENT OF ENVIRONMENTAL 
 29.13  PROTECTION.] Pursuant to this act and section 15.039, all 
 29.14  responsibilities, powers, and duties transferred to the 
 29.15  Minnesota public facilities authority or to the pollution 
 29.16  control agency by subdivisions 1 and 2 are transferred to the 
 29.17  department of environmental protection. 
 29.18     Sec. 27.  Minnesota Statutes 1994, section 446A.12, 
 29.19  subdivision 1, is amended to read: 
 29.20     Subdivision 1.  [BONDING AUTHORITY.] The authority 
 29.21  commissioner of environmental protection may request the 
 29.22  commissioner of finance to issue negotiable bonds in a principal 
 29.23  amount that the authority commissioner of environmental 
 29.24  protection determines necessary to provide sufficient funds for 
 29.25  achieving its the commissioner's purposes, including the making 
 29.26  of loans and purchase of securities, the payment of interest on 
 29.27  bonds of the authority, the establishment of reserves to 
 29.28  secure its the bonds, the payment of fees to a third party 
 29.29  providing credit enhancement, and the payment of all other 
 29.30  expenditures of the authority incident to and necessary or 
 29.31  convenient to carry out its corporate purposes and powers under 
 29.32  chapter 446, but not including the making of grants.  Bonds of 
 29.33  the authority may be issued as bonds or notes or in any other 
 29.34  form authorized by law.  The principal amount of bonds issued 
 29.35  and outstanding under this section at any time may not exceed 
 29.36  $350,000,000.  
 30.1      Sec. 28.  Minnesota Statutes 1994, section 473.811, 
 30.2   subdivision 1, is amended to read: 
 30.3      Subdivision 1.  [COUNTY ACQUISITION OF FACILITIES.] To 
 30.4   accomplish the purpose specified in section 473.803, each 
 30.5   metropolitan county may acquire by purchase, lease, gift or 
 30.6   condemnation as provided by law, upon such terms and conditions 
 30.7   as it shall determine, including contracts for deed and 
 30.8   conditional sales contracts, solid waste facilities or 
 30.9   properties or easements for solid waste facilities which are in 
 30.10  accordance with rules adopted by the agency environmental 
 30.11  protection department, the policy plan adopted by the council 
 30.12  and the county master plan as approved by the council before 
 30.13  July 1, 1995, and any policy plan or master plan changes made by 
 30.14  the department of environmental protection, and may improve or 
 30.15  construct improvements on any property or facility so acquired.  
 30.16  No metropolitan city, county or town shall own or operate a 
 30.17  hazardous waste facility, except a facility to manage household 
 30.18  hazardous waste.  Each metropolitan county is authorized to levy 
 30.19  a tax in anticipation of need for expenditure for the 
 30.20  acquisition and betterment of solid waste facilities.  If a tax 
 30.21  is levied in anticipation of need, the purpose must be specified 
 30.22  in a resolution of the county directing that the levy and the 
 30.23  proceeds of the tax may be used only for that purpose.  Until so 
 30.24  used, the proceeds shall be retained in a separate fund or 
 30.25  invested in the same manner as surplus in a sinking fund may be 
 30.26  invested under section 475.66.  The right of condemnation shall 
 30.27  be exercised in accordance with chapter 117.  
 30.28     For the purposes of this section "solid waste facility" 
 30.29  includes a facility to manage household hazardous waste. 
 30.30     Sec. 29.  [REPEALER.] 
 30.31     Minnesota Statutes 1994, sections 115A.03, subdivisions 8a 
 30.32  and 22a; 115A.055; 115B.27; 115C.07, subdivisions 1 and 2; 
 30.33  115D.03, subdivision 4; 116.02, subdivisions 1, 2, 3, and 4; 
 30.34  116.03, subdivision 6; 116.04; 446A.02, subdivision 2; and 
 30.35  446A.03, are repealed. 
 30.36                             ARTICLE 5 
 31.1           STUDIES, INSTRUCTIONS TO REVISOR, EFFECTIVE DATE 
 31.2      Section 1.  [STUDIES ON WATER MANAGEMENT AND PROTECTION; 
 31.3   DECENTRALIZED ADMINISTRATION.] 
 31.4      Subdivision 1.  [MEMBERSHIP.] The commissioners of 
 31.5   environmental protection and natural resources shall conduct two 
 31.6   studies and make recommendations as provided in this section.  
 31.7      Subd. 2.  [STUDIES; RECOMMENDATIONS.] One study shall 
 31.8   determine the best way to manage and protect the water resources 
 31.9   of the state, including a review of all water programs, whether 
 31.10  federal, state, or local, together with a recommendation on what 
 31.11  the water related responsibilities of each government or agency 
 31.12  should be.  The other study shall determine the best way to 
 31.13  deliver environmental and natural resource services at the 
 31.14  regional level, including a recommendation of a decentralized 
 31.15  structure for the two agencies.  
 31.16     Subd. 3.  [REPORT.] Each study shall be submitted to the 
 31.17  legislature and to the governor in a written report to be 
 31.18  submitted by January 15, 1996.  The study and recommendation 
 31.19  relating to water management shall also be submitted to the 
 31.20  legislative water commission.  
 31.21     Sec. 2.  [INSTRUCTIONS TO THE REVISOR.] 
 31.22     Subdivision 1.  [CHANGES TO STATUTES AND RULES.] In 
 31.23  Minnesota Statutes, the revisor of statutes is directed to make 
 31.24  the changes set forth in this section.  The revisor shall make 
 31.25  similar conforming changes to Minnesota Rules.  
 31.26     Subd. 2.  [SUSTAINABLE ENVIRONMENTAL POLICY BOARD.](a) 
 31.27  Wherever they appear in Minnesota Statutes, the revisor shall 
 31.28  change the terms "environmental quality board" or "board" or 
 31.29  similar terms, when referring to the environmental quality 
 31.30  board, to "sustainable environmental policy board" or "board." 
 31.31     (b) Wherever they appear in Minnesota Statutes, sections 
 31.32  103A.301 to 103A.341, 103B.345, and 103D.535, the revisor shall 
 31.33  change the terms "board of water and soil resources," "board," 
 31.34  "executive director of the board of water and soil resources," 
 31.35  or "director," or similar terms when referring to the board of 
 31.36  water and soil resources, to "sustainable environmental quality 
 32.1   board," "board," or "commissioner." 
 32.2      (c) Wherever they appear in Minnesota Statutes, sections 
 32.3   116C.22 to 116C.34, and related laws, the revisor shall change 
 32.4   the terms "department of trade and economic development," 
 32.5   "department," "commissioner of trade and economic development," 
 32.6   or "commissioner," when referring to environmental coordination 
 32.7   under Minnesota Statutes, sections 116C.22 to 116C.34, and 
 32.8   related laws, to "sustainable environmental quality board," 
 32.9   "board," "commissioner of sustainable environmental quality," or 
 32.10  "commissioner." 
 32.11     Subd. 3.  [DEPARTMENT OF NATURAL RESOURCES.] Except in 
 32.12  relation to powers and duties transferred to the environmental 
 32.13  quality and sustainable development board, wherever the 
 32.14  following terms appear in Minnesota Statutes, the revisor shall 
 32.15  change the terms "board of water and soil resources," "board," 
 32.16  "executive director of the board of water and soil resources," 
 32.17  or "director," or similar terms, when referring to the board of 
 32.18  water and soil resources, to "department of natural resources," 
 32.19  "department," "commissioner of natural resources," or 
 32.20  "commissioner." 
 32.21     Subd. 4.  [ENVIRONMENTAL PROTECTION DEPARTMENT.] (a) 
 32.22  Wherever they appear in Minnesota Statutes, the revisor shall 
 32.23  change the terms "pollution control agency," "agency," 
 32.24  "commissioner of the pollution control agency," "commissioner," 
 32.25  or similar terms, when referring to the pollution control 
 32.26  agency, to "department of environmental protection," 
 32.27  "department," "commissioner of environmental protection," or 
 32.28  "commissioner." 
 32.29     (b) Wherever they appear in Minnesota Statutes, the revisor 
 32.30  shall change the terms listed in the following clauses to 
 32.31  "department of environmental protection," "department," 
 32.32  "commissioner of environmental protection," or "commissioner":  
 32.33     (1) "office of environmental assistance," "office," 
 32.34  "director of environmental assistance," "director," "board of 
 32.35  waste management," or "board," or similar terms, under Minnesota 
 32.36  Statutes, sections 115A.055 to 115A.12, chapter 115D, and 
 33.1   related laws; 
 33.2      (2) "harmful substances compensation board," or "board," or 
 33.3   similar terms, under Minnesota Statutes, sections 115B.25 to 
 33.4   115B.37, and related laws; 
 33.5      (3) "petroleum tank release compensation board," or 
 33.6   "board," or similar terms, under Minnesota Statutes, sections 
 33.7   115C.07 to 115C.11, and related laws; and 
 33.8      (4) "Minnesota public facilities authority," "authority," 
 33.9   "commissioner of trade and economic development," or 
 33.10  "commissioner," or similar terms, under Minnesota Statutes, 
 33.11  sections 446A.01 to 446A.09, and related laws. 
 33.12     Subd. 5.  [DEPARTMENT OF FINANCE.] Wherever they appear in 
 33.13  Minnesota Statutes, sections 446A.12 to 446A.21, and related 
 33.14  laws, the revisor shall change the terms "Minnesota public 
 33.15  facilities authority" or "authority," when referring to the 
 33.16  issuance of bonds, servicing of bonds, arbitrage, and fund 
 33.17  investment by the authority to "department of finance," 
 33.18  "department," "commissioner of finance," or "commissioner." 
 33.19     Subd. 6.  [REVISOR'S ADDITIONAL INSTRUCTIONS.] In 
 33.20  consultation with legislative staff and affected agencies, the 
 33.21  revisor shall prepare any recodifications of and amendments to 
 33.22  Minnesota Statutes determined by the revisor as necessary to 
 33.23  give effect to this act and present any recodification and 
 33.24  amendments to the legislature no later than January 1, 1996.  
 33.25     Sec. 3.  [EFFECTIVE DATE.] 
 33.26     Except where otherwise provided, this act is effective July 
 33.27  1, 1995.