1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money for environmental, 
  1.4             natural resource, and agricultural purposes; providing 
  1.5             for regulation of certain activities and practices; 
  1.6             amending Minnesota Statutes 1996, sections 3.737, 
  1.7             subdivisions 1, 4, and by adding a subdivision; 
  1.8             41A.09, subdivision 1a; 84.83, subdivision 3; 84.871; 
  1.9             84.943, subdivision 3; 86B.415, by adding a 
  1.10            subdivision; 97A.037, subdivision 1; 97A.245; 
  1.11            103C.315, subdivision 4; 103F.155, subdivision 2; 
  1.12            103F.161, subdivision 2; 103G.271, subdivision 6; 
  1.13            115B.175, subdivision 3; and 116.07, subdivision 4h; 
  1.14            116.49, by adding a subdivision; Minnesota Statutes 
  1.15            1997 Supplement, sections 17.101, subdivision 5; 
  1.16            41A.09, subdivision 3a; 84.8205; 84.86, subdivision 1; 
  1.17            and 97A.485, subdivision 6; repealing Minnesota 
  1.18            Statutes 1997 Supplement, section 85.015, subdivision 
  1.19            1c; Laws 1991, chapter 275, section 3.  
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21  Section 1.  [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.] 
  1.22     The sums in the columns headed "APPROPRIATIONS" are 
  1.23  appropriated from the general fund, or another named fund, to 
  1.24  the agencies and for the purposes specified in this act to be 
  1.25  available for the fiscal years indicated for each purpose.  The 
  1.26  figures "1997," "1998," and "1999," where used in this act, mean 
  1.27  that the appropriation or appropriations listed under them are 
  1.28  available for the year ending June 30, 1997, June 30, 1998, or 
  1.29  June 30, 1999, respectively. 
  1.30                          SUMMARY BY FUND
  1.31                                            1998         1999
  1.32  General Fund                      $    9,171,000 $    2,965,000
  2.1                                              APPROPRIATIONS 
  2.2                                          Available for the Year 
  2.3                                              Ending June 30 
  2.4                                             1998         1999 
  2.5   Sec. 2.  POLLUTION CONTROL
  2.6   AGENCY                                   180,000      1,300,000
  2.7   $400,000 in fiscal year 1999 is added 
  2.8   to the appropriation for county feedlot 
  2.9   program grants in Laws 1997, chapter 
  2.10  216, section 2, subdivision 2.  In 
  2.11  fiscal year 1999 delegated counties 
  2.12  shall be eligible to receive a grant of 
  2.13  either:  $40 multiplied by the number 
  2.14  of livestock or poultry farms with 
  2.15  sales greater than $10,000, as reported 
  2.16  in the 1992 Census of Agriculture, 
  2.17  published by the United States Bureau 
  2.18  of Census; or $50 multiplied by the 
  2.19  number of feedlots with greater than 
  2.20  ten animal units, as determined by a 
  2.21  level 2 or level 3 feedlot inventory 
  2.22  conducted in accordance with the 
  2.23  Feedlot Inventory Guidebook published 
  2.24  by the board of water and soil 
  2.25  resources, dated June 1991. 
  2.26  $50,000 in fiscal year 1999 is for the 
  2.27  bioaccumulative residues research 
  2.28  program at the University of 
  2.29  Minnesota-Duluth to analyze fish 
  2.30  contaminants, including researching the 
  2.31  presence of selenium in fish samples.  
  2.32  As a condition of this grant, the 
  2.33  University of Minnesota-Duluth must 
  2.34  submit a work program and submit 
  2.35  semiannual progress reports as provided 
  2.36  in Minnesota Statutes, section 116P.05, 
  2.37  subdivision 2, paragraph (c). 
  2.38  $180,000 in fiscal year 1998 is for the 
  2.39  cost of administering the wastewater 
  2.40  infrastructure program.  This 
  2.41  appropriation is available until June 
  2.42  30, 2002. 
  2.43  $50,000 in fiscal year 1999 is for a 
  2.44  scoping study for a cost-benefit model 
  2.45  to analyze the costs of water quality 
  2.46  standards.  This is a one-time 
  2.47  appropriation. 
  2.48  $500,000 in fiscal year 1999 is for 
  2.49  further investigation of malformed 
  2.50  frogs in Minnesota.  This is a one-time 
  2.51  appropriation. 
  2.52  $300,000 is for expansion of permitting 
  2.53  activities under the federal Clean 
  2.54  Water Act that affect feedlots in 
  2.55  excess of 1,000 animal units. 
  2.56  The appropriation in Laws 1997, chapter 
  2.57  216, section 15, subdivision 14, 
  2.58  paragraph (c), for monitoring and 
  2.59  research regarding the effects of 
  2.60  endocrine-disrupting chemicals is 
  2.61  available until June 30, 2000. 
  2.62  Sec. 3.  ZOOLOGICAL BOARD              1,500,000               
  3.1   $1,500,000 is for zoo operations.  This 
  3.2   is a one-time supplemental 
  3.3   appropriation.  By September 1, 1998, 
  3.4   the board shall report to the governor, 
  3.5   the chair of the senate environment and 
  3.6   agriculture budget division, and the 
  3.7   chair of the house environment, natural 
  3.8   resources and agriculture finance 
  3.9   committee on recommendations to 
  3.10  internally manage the effects of 
  3.11  lowered attendance projections and 
  3.12  methods for improving attendance 
  3.13  forecasting. 
  3.14  Sec. 4.  NATURAL RESOURCES             4,571,000      3,960,000
  3.15  $1,600,000 in fiscal year 1999 is for 
  3.16  flood-related activities in the 
  3.17  division of waters.  $200,000 of this 
  3.18  appropriation is for alternative flood 
  3.19  control measures beneficial to the 
  3.20  environment, such as culvert-downsizing 
  3.21  on man-made waterways and wetland 
  3.22  restoration.  $10,000 of this 
  3.23  appropriation is for a grant to the 
  3.24  Marine-on-St. Croix watershed 
  3.25  management organization for engineering 
  3.26  analysis of flooding problems along 
  3.27  Twin Lake.  Notwithstanding Minnesota 
  3.28  Statutes, section 103F.161, subdivision 
  3.29  2, paragraph (c), this appropriation 
  3.30  may be combined with a flood hazard 
  3.31  mitigation grant previously awarded to 
  3.32  the watershed management organization.  
  3.33  $75,000 of this appropriation is for a 
  3.34  grant under Minnesota Statutes, section 
  3.35  103F.161, to Swift county for 
  3.36  improvements at Lake Oliver.  $75,000 
  3.37  of this appropriation is for a grant to 
  3.38  the city of Willernie under Minnesota 
  3.39  Statutes, section 103F.161, to 
  3.40  forestall erosion from a natural 
  3.41  waterway that threatens residences.  
  3.42  The city shall work with the 
  3.43  commissioner to develop an appropriate 
  3.44  plan for control of the erosion. 
  3.45  $476,000 in fiscal year 1998 is for 
  3.46  sealing inactive wells on state-owned 
  3.47  land.  The commissioner shall determine 
  3.48  project priorities as appropriate based 
  3.49  upon need.  This appropriation is 
  3.50  available until June 30, 2002. 
  3.51  $110,000 in fiscal year 1999 is for 
  3.52  state park operations. 
  3.53  $190,000 in fiscal year 1999 is for 
  3.54  population and habitat objectives of 
  3.55  the nongame wildlife management program.
  3.56  $180,000 in fiscal year 1998 and 
  3.57  $120,000 in fiscal year 1999 is for 
  3.58  increased public involvement in white 
  3.59  pine management planning and to 
  3.60  accelerate white pine management on 
  3.61  state forest lands.  This appropriation 
  3.62  is available until June 30, 1999. 
  3.63  $270,000 in fiscal year 1998 and 
  3.64  $230,000 in fiscal year 1999 is for 
  4.1   improvement of camper safety and 
  4.2   security in state forest campgrounds 
  4.3   and to make repairs to selected state 
  4.4   forest campgrounds. 
  4.5   $250,000 in fiscal year 1999 is for 
  4.6   operational costs related to wildlife 
  4.7   management at the area level. 
  4.8   $250,000 in fiscal year 1999 is for the 
  4.9   interpretation, management, and 
  4.10  monitoring of scientific and natural 
  4.11  areas. 
  4.12  $100,000 in fiscal year 1998 and 
  4.13  $200,000 in fiscal year 1999 is for 
  4.14  technical assistance and grants to 
  4.15  assist local government units and 
  4.16  organizations in the metropolitan area 
  4.17  to acquire and develop natural areas 
  4.18  and greenways. 
  4.19  $300,000 in fiscal year 1999 is for 
  4.20  state trail maintenance and amenities. 
  4.21  $100,000 in fiscal year 1998 and 
  4.22  $200,000 in fiscal year 1999 is for 
  4.23  further work to develop protected water 
  4.24  flow recommendations on Minnesota 
  4.25  streams and for support of river 
  4.26  restoration expertise and its 
  4.27  application to the Whitewater river and 
  4.28  Sandy river. 
  4.29  $2,140,000 in fiscal year 1998 is for 
  4.30  wildlife habitat improvement, wildlife 
  4.31  population surveys, monitoring, private 
  4.32  lands cost-sharing for wildlife habitat 
  4.33  and forest stewardship, and project 
  4.34  grants to local governments and private 
  4.35  organizations to enhance fish, 
  4.36  wildlife, and native plant habitats.  
  4.37  Of this amount, $750,000 is for brush 
  4.38  land and forest habitat renewal for 
  4.39  sharp-tailed grouse and other species 
  4.40  of birds dependent on open brush lands 
  4.41  in forest areas by providing financial 
  4.42  and technical assistance to landowners 
  4.43  as well as brush land renewal on public 
  4.44  lands; $575,000 is for wildlife habitat 
  4.45  improvements through cost-sharing and 
  4.46  technical assistance to private 
  4.47  landowners; $400,000 is for forest 
  4.48  stewardship improvements through 
  4.49  cost-sharing and technical assistance 
  4.50  to private landowners; and $400,000 is 
  4.51  for wildlife population surveys, 
  4.52  monitoring, evaluation, and constituent 
  4.53  surveys.  This appropriation is 
  4.54  available until June 30, 2000. 
  4.55  $200,000 in fiscal year 1998 is added 
  4.56  to the appropriation in Laws 1997, 
  4.57  chapter 216, section 15, subdivision 4, 
  4.58  paragraph (c), clause (4), for the 
  4.59  statewide conservation partners program.
  4.60  $1,000,000 in fiscal year 1998 and 
  4.61  $190,000 in fiscal year 1999 is to 
  4.62  enhance customer service and data 
  4.63  access through the collaborative use of 
  5.1   technology, improve communication with 
  5.2   citizens and stakeholders, and provide 
  5.3   technical assistance and data delivery 
  5.4   to citizens and local government. 
  5.5   $465,000 of this appropriation is for 
  5.6   the Minnesota Environmental/Natural 
  5.7   Resource Electronic Library (MENREL) to 
  5.8   accelerate the development of 
  5.9   integrated and indexed environmental 
  5.10  and geographic data catalogs, 
  5.11  cross-agency search and retrieval, and 
  5.12  content-rich libraries of environmental 
  5.13  data and information.  $725,000 of this 
  5.14  appropriation is for improving citizen 
  5.15  access through the Internet to 
  5.16  environmental and geographic data 
  5.17  including the capability of producing 
  5.18  customized maps and reports. 
  5.19  $30,000 in fiscal year 1998 and 
  5.20  $170,000 in fiscal year 1999 is for 
  5.21  expansion of the "Becoming an Outdoors 
  5.22  Woman Program," and for a position to 
  5.23  coordinate shooting range development 
  5.24  on a statewide basis.  Of this amount, 
  5.25  $35,000 is available to match an equal 
  5.26  amount of nonstate money for shooting 
  5.27  range partnership agreements. 
  5.28  $125,000 in fiscal year 1999 is for 
  5.29  local initiatives grants program 
  5.30  administration. 
  5.31  The appropriations in Laws 1996, 
  5.32  chapter 407, section 3, for the Iron 
  5.33  Range off-highway vehicle recreation 
  5.34  area are available until June 30, 2000. 
  5.35  $75,000 in fiscal year 1998 is for a 
  5.36  grant to the St. Croix Valley Heritage 
  5.37  Coalition, Inc. for the St. Croix 
  5.38  Valley Heritage Center. 
  5.39  The appropriation in Laws 1997, chapter 
  5.40  216, section 5, subdivision 4, for 
  5.41  grants to local community forest 
  5.42  ecosystem health programs is available 
  5.43  until June 30, 2000. 
  5.44  $25,000 in fiscal year 1999 is for 
  5.45  promotion and enhanced public awareness 
  5.46  of the RIM critical habitat license 
  5.47  plate program. 
  5.48  Sec. 5.  BOARD OF WATER AND 
  5.49  SOIL RESOURCES                         2,330,000       2,000,000
  5.50  $1,700,000 in fiscal year 1998 is for 
  5.51  professional and technical services 
  5.52  necessary to administer the RIM and PWP 
  5.53  conservation easement programs.  This 
  5.54  appropriation is available until June 
  5.55  30, 2002.  Any unexpended balance 
  5.56  remaining in this appropriation may be 
  5.57  used for RIM easement acquisition. 
  5.58  $630,000 in fiscal year 1998 is for 
  5.59  professional and technical services to 
  5.60  administer the local government road 
  5.61  replacement program.  This 
  5.62  appropriation is available until June 
  6.1   30, 2002.  Any unexpended balance 
  6.2   remaining in this appropriation may be 
  6.3   used for RIM easement acquisition. 
  6.4   $2,000,000 in fiscal year 1999 is for 
  6.5   grants to soil and water conservation 
  6.6   districts for cost-sharing contracts 
  6.7   for water quality management on dairy 
  6.8   facility feedlots.  This appropriation 
  6.9   is available until expended. 
  6.10  Sec. 6.  AGRICULTURE                     560,000      3,395,000
  6.11  $110,000 in fiscal year 1998 and 
  6.12  $250,000 in fiscal year 1999 is for 
  6.13  expansion of efforts to prevent the 
  6.14  establishment and spread of gypsy moths 
  6.15  in Minnesota. 
  6.16  $25,000 in fiscal year 1998 and 
  6.17  $325,000 in fiscal year 1999 is for a 
  6.18  state meat inspection program. 
  6.19  $75,000 in fiscal year 1999 is for 
  6.20  additional matching funds for the WIC 
  6.21  coupon program. 
  6.22  $25,000 in fiscal year 1999 is for 
  6.23  additional livestock depredation 
  6.24  payments pursuant to Minnesota 
  6.25  Statutes, section 3.737. 
  6.26  Any unencumbered balance from the 
  6.27  appropriation in Laws 1997, chapter 
  6.28  216, section 7, subdivision 4, for 
  6.29  beaver damage control grants for the 
  6.30  first year of the biennium is available 
  6.31  for the second year of the biennium. 
  6.32  $150,000 in fiscal year 1998 is added 
  6.33  to the appropriation in Laws 1997, 
  6.34  chapter 216, section 7, subdivision 4, 
  6.35  to accomplish reform of the federal 
  6.36  milk market order system and for legal 
  6.37  actions opposing the Northeast Dairy 
  6.38  Compact.  This appropriation is 
  6.39  available until June 30, 1999. 
  6.40  $2,000,000 in fiscal year 1999 is added 
  6.41  to the appropriation for dairy 
  6.42  diagnostic teams in Laws 1997, chapter 
  6.43  216, section 7, subdivision 2. 
  6.44  $200,000 in fiscal year 1998 is for 
  6.45  transfer to the value-added 
  6.46  agricultural product revolving fund 
  6.47  under Minnesota Statutes, section 
  6.48  41B.046. 
  6.49  $535,000 in fiscal year 1999 is for a 
  6.50  pilot program to expand the concept of 
  6.51  the Minnesota grown program and is 
  6.52  available until June 30, 2000.  The 
  6.53  program is to assist low-income 
  6.54  families in accessing nutritious and 
  6.55  affordable food and to promote economic 
  6.56  development by creating new markets and 
  6.57  food distribution systems.  $35,000 of 
  6.58  this appropriation is for costs of 
  6.59  administration.  $175,000 of this 
  6.60  appropriation is for payment to the 
  7.1   Sustainable Resources Center for the 
  7.2   costs of administering the pilot 
  7.3   program.  $325,000 of this 
  7.4   appropriation is for food coupons.  The 
  7.5   coupons shall be distributed and 
  7.6   administered according to this section, 
  7.7   subject to the approval of the 
  7.8   commissioner of agriculture. 
  7.9   The Sustainable Resources Center, in 
  7.10  conjunction with the Minnesota food 
  7.11  association, and subject to the 
  7.12  approval of the commissioner of 
  7.13  agriculture, shall select up to two 
  7.14  urban and up to two rural communities 
  7.15  as locations for activities that will 
  7.16  serve as models for sustainable 
  7.17  community food systems.  These 
  7.18  activities shall include but are not 
  7.19  limited to: 
  7.20  (1) conducting food system assessments 
  7.21  in each community to identify assets 
  7.22  and needs; 
  7.23  (2) supporting the creation of producer 
  7.24  distribution networks to establish 
  7.25  direct links to low-income consumers; 
  7.26  and 
  7.27  (3) working with food processing plants 
  7.28  in the selected community to develop 
  7.29  the support services needed to make 
  7.30  entry-level jobs accessible to 
  7.31  low-income people. 
  7.32  During calendar year 1999, the 
  7.33  commissioner of agriculture, within the 
  7.34  funds available, shall issue coupons to 
  7.35  eligible individuals.  The coupons must 
  7.36  be issued in a one-time allocation 
  7.37  designated for use in each month of the 
  7.38  one-year period following the date of 
  7.39  issue.  Eligible individuals may 
  7.40  receive up to $100 in coupons per year, 
  7.41  subject to the limitation that 
  7.42  additional eligible individuals who 
  7.43  reside in the same household may 
  7.44  receive up to $20 in coupons per year, 
  7.45  up to a maximum of $200 per household 
  7.46  per year.  Eligible individuals include 
  7.47  individuals who are residents of the 
  7.48  communities in the pilot project and 
  7.49  are eligible for the Minnesota grown 
  7.50  coupons under this section.  Eligible 
  7.51  individuals include: 
  7.52  (1) legal noncitizens who are eligible 
  7.53  for food programs under Minnesota 
  7.54  Statutes, chapter 256D or 256J; and 
  7.55  (2) individuals receiving food stamps. 
  7.56  The amount of the Minnesota grown 
  7.57  coupons must be excluded as income 
  7.58  under the AFDC, refugee cash 
  7.59  assistance, general assistance, MFIP, 
  7.60  MFIP-R, MFIP-S, food stamp programs, 
  7.61  state housing subsidy programs, 
  7.62  low-income energy assistance programs, 
  7.63  and other programs that do not count 
  8.1   food stamps as income.  Counties must 
  8.2   apply to the commissioner to 
  8.3   participate in the Minnesota grown 
  8.4   coupon program. 
  8.5   The coupons must be clearly labeled as 
  8.6   redeemable only for products licensed 
  8.7   to use the Minnesota grown logo or 
  8.8   labeling statement under Minnesota 
  8.9   Statutes, section 17.102.  Coupons may 
  8.10  be redeemed by farmers, custom meat 
  8.11  processors, community-supported 
  8.12  agriculture farms, and other entities 
  8.13  approved by the commissioner of 
  8.14  agriculture.  The person accepting the 
  8.15  coupon is responsible for its 
  8.16  redemption only on products licensed to 
  8.17  use the Minnesota grown logo or 
  8.18  labeling statement.  The commissioner 
  8.19  must receive and reimburse all valid 
  8.20  coupons redeemed pursuant to this 
  8.21  section. 
  8.22  The commissioner may establish criteria 
  8.23  for vendor eligibility and may enforce 
  8.24  the Minnesota grown coupon program 
  8.25  according to Minnesota Statutes, 
  8.26  sections 17.982 to 17.984. 
  8.27  $160,000 in fiscal year 1999 is for 
  8.28  value-added agricultural product 
  8.29  processing and marketing grants under 
  8.30  Minnesota Statutes, section 17.101, 
  8.31  subdivision 5.  This appropriation and 
  8.32  the appropriation in Laws 1997, chapter 
  8.33  216, section 7, subdivision 3, for 
  8.34  grants under Minnesota Statutes, 
  8.35  section 17.101, subdivision 5, are 
  8.36  available until June 30, 2001. 
  8.37  $25,000 in fiscal year 1999 is for the 
  8.38  Passing on the Farm Center established 
  8.39  in Minnesota Statutes, section 17.985.  
  8.40  This appropriation is in addition to 
  8.41  the appropriations in Laws 1997, 
  8.42  chapter 216, section 7, subdivision 4. 
  8.43  $50,000 in fiscal year 1998 is for a 
  8.44  grant to the University of Minnesota 
  8.45  for investigation, screening, and a 
  8.46  survey of existing research into the 
  8.47  design and development of low-cost 
  8.48  alternatives to pasteurization that 
  8.49  provide comparable bacteria count 
  8.50  reduction in fruit juice.  The 
  8.51  commissioner must report to the chair 
  8.52  of the house environment, natural 
  8.53  resources, and agriculture finance 
  8.54  committee and the chair of the senate 
  8.55  environment and agriculture budget 
  8.56  division by January 15, 1999, regarding 
  8.57  the results of the research and with a 
  8.58  recommendation for further action. 
  8.59  $25,000 in fiscal year 1998 is for a 
  8.60  grant to the University of Minnesota to 
  8.61  study the cause of depredation on farms 
  8.62  suffering significant wolf depredation 
  8.63  problems.  This appropriation is 
  8.64  available until June 30, 1999. 
  9.1   As a condition of receiving state 
  9.2   funds, the ethanol production plant in 
  9.3   St. Paul must provide year-round public 
  9.4   access to the well that was publicly 
  9.5   accessible when the plant was a brewery.
  9.6   Sec. 7.  BOARD OF ANIMAL HEALTH           30,000        160,000
  9.7   $30,000 in fiscal year 1998 and 
  9.8   $160,000 in fiscal year 1999 is for 
  9.9   expansion of the program for the 
  9.10  control of paratuberculosis ("Johne's 
  9.11  disease") in domestic bovine herds.  
  9.12  These appropriations are in addition to 
  9.13  the appropriations for the same 
  9.14  purposes in Laws 1997, chapter 216, 
  9.15  section 8. 
  9.16  Sec. 8.  MINNESOTA FOREST  
  9.17  RESOURCES COUNCIL                                       150,000 
  9.18  $150,000 in fiscal year 1999 is for 
  9.19  implementation of the Sustainable 
  9.20  Forest Resources Act pursuant to 
  9.21  Minnesota Statutes, chapter 89A. 
  9.22  Sec. 9.  ETHANOL DEVELOPMENT  
  9.23  FUND TRANSFER                                                   
  9.24  As cash flow in the ethanol development 
  9.25  fund under Minnesota Statutes, section 
  9.26  41B.044, permits, but no later than 
  9.27  June 30, 1999, the commissioner of 
  9.28  finance, in consultation with the 
  9.29  commissioner of agriculture, shall 
  9.30  transfer $400,000 from the unencumbered 
  9.31  balance in the fund to the general 
  9.32  fund.  This transfer is in addition to 
  9.33  the transfer required by Laws 1997, 
  9.34  chapter 216, section 17. 
  9.35     Sec. 10.  Minnesota Statutes 1996, section 3.737, 
  9.36  subdivision 1, is amended to read: 
  9.37     Subdivision 1.  [COMPENSATION REQUIRED.] (a) 
  9.38  Notwithstanding section 3.736, subdivision 3, paragraph (e), or 
  9.39  any other law, a livestock owner shall be compensated by the 
  9.40  commissioner of agriculture for livestock that is destroyed by a 
  9.41  timber wolf or is so crippled so by a timber wolf that it must 
  9.42  be destroyed by an animal classified as endangered under the 
  9.43  federal Endangered Species Act of 1973.  The owner is entitled 
  9.44  to the fair market value of the destroyed livestock, not to 
  9.45  exceed $400 $750 per animal destroyed, as determined by the 
  9.46  commissioner, upon recommendation of the county a university 
  9.47  extension agent for the owner's county and a conservation 
  9.48  officer.  
  9.49     (b) Either the agent or the conservation officer must make 
 10.1   a personal inspection of the site.  The agent or the 
 10.2   conservation officer must take into account factors in addition 
 10.3   to a visual identification of a carcass when making a 
 10.4   recommendation to the commissioner.  The commissioner, upon 
 10.5   recommendation of the agent and conservation officer, shall 
 10.6   determine whether the livestock was destroyed by an animal 
 10.7   described in this subdivision a timber wolf and any deficiencies 
 10.8   in the owner's adoption of the best management practices 
 10.9   developed in subdivision 5.  The commissioner may authorize 
 10.10  payment of claims only if the agent and the conservation officer 
 10.11  have recommended payment.  The owner shall file a claim on forms 
 10.12  provided by the commissioner and available at the county 
 10.13  extension agent's office. 
 10.14     Sec. 11.  Minnesota Statutes 1996, section 3.737, 
 10.15  subdivision 4, is amended to read: 
 10.16     Subd. 4.  [PAYMENT, DENIAL OF COMPENSATION.] (a) If the 
 10.17  commissioner finds that the livestock owner has shown that the 
 10.18  loss of the livestock was likely caused more probably than not 
 10.19  by an animal classified as an endangered species a timber wolf, 
 10.20  the commissioner shall pay compensation as provided in this 
 10.21  section and in the rules of the department.  
 10.22     (b) For a wolf depredation claim submitted by a livestock 
 10.23  owner after January 1, 1999, the commissioner shall, based on 
 10.24  the report from the university extension agent and conservation 
 10.25  officer, evaluate the claim for conformance with the best 
 10.26  management practices developed by the commissioner in 
 10.27  subdivision 5.  The commissioner must provide to the livestock 
 10.28  owner an itemized list of any deficiencies in the livestock 
 10.29  owner's adoption of best management practices that were noted in 
 10.30  the county extension agent's or conservation officer's report. 
 10.31     (c) If the commissioner denies compensation claimed by an 
 10.32  owner under this section, the commissioner shall issue a written 
 10.33  decision based upon the available evidence.  It shall include 
 10.34  specification of the facts upon which the decision is based and 
 10.35  the conclusions on the material issues of the claim.  A copy of 
 10.36  the decision shall be mailed to the owner.  
 11.1      (d) A decision to deny compensation claimed under this 
 11.2   section is not subject to the contested case review procedures 
 11.3   of chapter 14, but may be reviewed upon a trial de novo in a 
 11.4   court in the county where the loss occurred.  The decision of 
 11.5   the court may be appealed as in other civil cases.  Review in 
 11.6   court may be obtained by filing a petition for review with the 
 11.7   administrator of the court within 60 days following receipt of a 
 11.8   decision under this section.  Upon the filing of a petition, the 
 11.9   administrator shall mail a copy to the commissioner and set a 
 11.10  time for hearing within 90 days of the filing.  
 11.11     Sec. 12.  Minnesota Statutes 1996, section 3.737, is 
 11.12  amended by adding a subdivision to read: 
 11.13     Subd. 5.  [WOLF BEST MANAGEMENT PRACTICES.] By January 1, 
 11.14  1999, the commissioner must develop best management practices to 
 11.15  prevent wolf depredation on livestock farms.  The commissioner 
 11.16  shall periodically update the best management practices when new 
 11.17  practices are found by the commissioner to prevent wolf 
 11.18  depredation on livestock farms.  The commissioner must provide 
 11.19  an updated copy of the best management practices for wolf 
 11.20  depredation to all livestock owners who have previously 
 11.21  submitted livestock claims under this section. 
 11.22     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 11.23  17.101, subdivision 5, is amended to read: 
 11.24     Subd. 5.  [VALUE-ADDED AGRICULTURAL LIVESTOCK PRODUCT 
 11.25  PROCESSING AND MARKETING GRANT PROGRAM.] (a) For purposes of 
 11.26  this section,: 
 11.27     (1) "livestock or dairy agricultural commodity" means a 
 11.28  material produced for use in or as food, feed, seed, or fiber 
 11.29  and includes crops for fiber, food, oilseeds, seeds, livestock, 
 11.30  livestock products, dairy, dairy products, poultry, poultry 
 11.31  products, and other products or by-products of the farm produced 
 11.32  for the same or similar use, except ethanol; and 
 11.33     (2) "agricultural product processing facility" means land, 
 11.34  buildings, structures, fixtures, and improvements located or to 
 11.35  be located in Minnesota and used or operated primarily for the 
 11.36  processing or production of marketable products from 
 12.1   agricultural livestock or dairy commodities produced in 
 12.2   Minnesota.  
 12.3      (b) The commissioner shall establish and implement a 
 12.4   value-added agricultural livestock and dairy product processing 
 12.5   and marketing grant program to help farmers finance new 
 12.6   cooperatives that organize for the purposes of 
 12.7   operating livestock and dairy agricultural product processing 
 12.8   facilities and for marketing activities related to the sale and 
 12.9   distribution of processed livestock and dairy agricultural 
 12.10  products.  
 12.11     (c) To be eligible for this program a grantee must:  
 12.12     (1) be a cooperative organized under chapter 308A; 
 12.13     (2) certify that all of the control and equity in the 
 12.14  cooperative is from farmers as defined in section 500.24, 
 12.15  subdivision 2, who are actively engaged in livestock or dairy 
 12.16  agricultural commodity production; 
 12.17     (3) be operated primarily for the processing of livestock 
 12.18  or dairy agricultural commodities produced in Minnesota; 
 12.19     (4) receive livestock or dairy agricultural commodities 
 12.20  produced primarily by shareholders or members of the 
 12.21  cooperative; and 
 12.22     (5) have no direct or indirect involvement in the 
 12.23  production of livestock and dairy agricultural commodities.  
 12.24     (d) The commissioner may receive applications from and make 
 12.25  grants up to $50,000 for feasibility, marketing analysis, and 
 12.26  predesign of facilities to eligible cooperatives.  The 
 12.27  commissioner shall give priority to applicants who use the 
 12.28  grants for planning costs related to an application for 
 12.29  financial assistance from the United States Department of 
 12.30  Agriculture, Rural Business - Cooperative Service. 
 12.31     Sec. 14.  Minnesota Statutes 1996, section 41A.09, 
 12.32  subdivision 1a, is amended to read: 
 12.33     Subd. 1a.  [ETHANOL PRODUCTION GOAL.] It is a goal of the 
 12.34  state that ethanol production plants in the state attain a total 
 12.35  annual production level of 220,000,000 240,000,000 gallons.  
 12.36     Sec. 15.  Minnesota Statutes 1997 Supplement, section 
 13.1   41A.09, subdivision 3a, is amended to read: 
 13.2      Subd. 3a.  [PAYMENTS.] (a) The commissioner of agriculture 
 13.3   shall make cash payments to producers of ethanol, anhydrous 
 13.4   alcohol, and wet alcohol located in the state.  These payments 
 13.5   shall apply only to ethanol, anhydrous alcohol, and wet alcohol 
 13.6   fermented in the state and produced at plants that have begun 
 13.7   production by June 30, 2000.  For the purpose of this 
 13.8   subdivision, an entity that holds a controlling interest in more 
 13.9   than one ethanol plant is considered a single producer.  The 
 13.10  amount of the payment for each producer's annual production is: 
 13.11     (1) except as provided in paragraph (b), for each gallon of 
 13.12  ethanol or anhydrous alcohol produced on or before June 30, 
 13.13  2000, or ten years after the start of production, whichever is 
 13.14  later, 20 cents per gallon; and 
 13.15     (2) for each gallon produced of wet alcohol on or before 
 13.16  June 30, 2000, or ten years after the start of production, 
 13.17  whichever is later, a payment in cents per gallon calculated by 
 13.18  the formula "alcohol purity in percent divided by five," and 
 13.19  rounded to the nearest cent per gallon, but not less than 11 
 13.20  cents per gallon. 
 13.21     The producer payments for anhydrous alcohol and wet alcohol 
 13.22  under this section may be paid to either the original producer 
 13.23  of anhydrous alcohol or wet alcohol or the secondary processor, 
 13.24  at the option of the original producer, but not to both. 
 13.25     (b) If the level of production at an ethanol plant 
 13.26  increases due to an increase in the production capacity of the 
 13.27  plant and the increased production begins by June 30, 2000, the 
 13.28  payment under paragraph (a), clause (1), applies to the 
 13.29  additional increment of production until ten years after the 
 13.30  increased production began.  Once a plant's production capacity 
 13.31  reaches 15,000,000 gallons per year, no additional increment 
 13.32  will qualify for the payment. 
 13.33     (c) The commissioner shall make payments to producers of 
 13.34  ethanol or wet alcohol in the amount of 1.5 cents for each 
 13.35  kilowatt hour of electricity generated using closed-loop biomass 
 13.36  in a cogeneration facility at an ethanol plant located in the 
 14.1   state.  Payments under this paragraph shall be made only for 
 14.2   electricity generated at cogeneration facilities that begin 
 14.3   operation by June 30, 2000.  The payments apply to electricity 
 14.4   generated on or before the date ten years after the producer 
 14.5   first qualifies for payment under this paragraph.  Total 
 14.6   payments under this paragraph in any fiscal year may not exceed 
 14.7   $750,000.  For the purposes of this paragraph: 
 14.8      (1) "closed-loop biomass" means any organic material from a 
 14.9   plant that is planted for the purpose of being used to generate 
 14.10  electricity or for multiple purposes that include being used to 
 14.11  generate electricity; and 
 14.12     (2) "cogeneration" means the combined generation of: 
 14.13     (i) electrical or mechanical power; and 
 14.14     (ii) steam or forms of useful energy, such as heat, that 
 14.15  are used for industrial, commercial, heating, or cooling 
 14.16  purposes. 
 14.17     (d) The total payments under paragraphs (a) and (b) to all 
 14.18  producers may not exceed $34,000,000 $40,000,000 in a fiscal 
 14.19  year.  Total payments under paragraphs (a) and (b) to a producer 
 14.20  in a fiscal year may not exceed $3,000,000. 
 14.21     (e) By the last day of October, January, April, and July, 
 14.22  each producer shall file a claim for payment for ethanol, 
 14.23  anhydrous alcohol, and wet alcohol production during the 
 14.24  preceding three calendar months.  A producer with more than one 
 14.25  plant shall file a separate claim for each plant.  A producer 
 14.26  shall file a separate claim for the original production capacity 
 14.27  of each plant and for each additional increment of production 
 14.28  that qualifies under paragraph (b).  A producer that files a 
 14.29  claim under this subdivision shall include a statement of the 
 14.30  producer's total ethanol, anhydrous alcohol, and wet alcohol 
 14.31  production in Minnesota during the quarter covered by the claim, 
 14.32  including anhydrous alcohol and wet alcohol produced or received 
 14.33  from an outside source.  A producer shall file a separate claim 
 14.34  for any amount claimed under paragraph (c).  For each claim and 
 14.35  statement of total ethanol, anhydrous alcohol, and wet alcohol 
 14.36  production filed under this subdivision, the volume of ethanol, 
 15.1   anhydrous alcohol, and wet alcohol production or amounts of 
 15.2   electricity generated using closed-loop biomass must be examined 
 15.3   by an independent certified public accountant in accordance with 
 15.4   standards established by the American Institute of Certified 
 15.5   Public Accountants. 
 15.6      (f) Payments shall be made November 15, February 15, May 
 15.7   15, and August 15.  A separate payment shall be made for each 
 15.8   claim filed.  The total quarterly payment to a producer under 
 15.9   this paragraph, excluding amounts paid under paragraph (c), may 
 15.10  not exceed $750,000.  If the total amount for which all 
 15.11  producers are eligible in a quarter under paragraphs (a) and (b) 
 15.12  exceeds $8,500,000, the commissioner shall make payments in the 
 15.13  order in which the portion of production capacity covered by 
 15.14  each claim went into production.  If the total amount of ethanol 
 15.15  or wet alcohol production reported for a quarter under paragraph 
 15.16  (e) equals or exceeds 55,000,000 gallons: 
 15.17     (1) payments under this subdivision do not apply to the 
 15.18  amount produced in excess of 55,000,000 gallons; 
 15.19     (2) the commissioner shall make payments to producers in 
 15.20  the order in which the portion of production capacity covered by 
 15.21  each claim began production; and 
 15.22     (3) only those producers that receive payments for the 
 15.23  quarter, or received payments under paragraph (a) or (b) in an 
 15.24  earlier quarter, will be eligible for future ethanol or wet 
 15.25  alcohol production payments under this subdivision. 
 15.26     (g) If the total amount for which all producers are 
 15.27  eligible in a quarter under paragraph (c) exceeds the amount 
 15.28  available for payments, the commissioner shall make payments in 
 15.29  the order in which the plants covered by the claims began 
 15.30  generating electricity using closed-loop biomass. 
 15.31     (h) After July 1, 1997, new production capacity is only 
 15.32  eligible for payment under this subdivision if the commissioner 
 15.33  receives: 
 15.34     (1) an application for approval of the new production 
 15.35  capacity; 
 15.36     (2) an appropriate letter of long-term financial commitment 
 16.1   for construction of the new capacity; and 
 16.2      (3) copies of all necessary permits for construction of the 
 16.3   new capacity. 
 16.4      The commissioner may approve the additional capacity based 
 16.5   on the order in which the applications are received.  The 
 16.6   commissioner shall not approve production capacity in excess of 
 16.7   the limitations in paragraph (f) (d).  The commissioner may not 
 16.8   approve any additional capacity after July 1, 1998.  Existing 
 16.9   plants are not eligible for new capacity beyond planned 
 16.10  expansions reported to the commissioner by February 1997 1998. 
 16.11     Sec. 16.  Minnesota Statutes 1997 Supplement, section 
 16.12  84.8205, is amended to read: 
 16.13     84.8205 [SNOWMOBILE STATE TRAIL PERMIT STICKER.] 
 16.14     Subdivision 1.  [STICKER REQUIRED; FEE.] A person may not 
 16.15  operate a snowmobile that is not registered in this state may 
 16.16  not be operated on a state or grant-in-aid snowmobile trail 
 16.17  unless a snowmobile state trail sticker is affixed to the 
 16.18  snowmobile operator has in possession a snowmobile state trail 
 16.19  permit.  The commissioner of natural resources shall issue a 
 16.20  permit sticker upon application and payment of a $15 fee.  The 
 16.21  permit sticker is valid from November 1 through April 30.  Fees 
 16.22  collected under this section shall be deposited in the state 
 16.23  treasury and credited to the snowmobile trails and enforcement 
 16.24  account in the natural resources fund. 
 16.25     Subd. 2.  [PLACEMENT OF STICKER.] The state trail sticker 
 16.26  shall be permanently affixed to the forward half of the 
 16.27  snowmobile directly above or below the headlight of the 
 16.28  snowmobile. 
 16.29     Subd. 3.  [LICENSE AGENTS.] County auditors are appointed 
 16.30  agents of the commissioner for the sale of snowmobile state 
 16.31  trail stickers.  The commissioner may appoint other state 
 16.32  agencies as agents for the sale of the stickers.  A county 
 16.33  auditor may appoint subagents within the county or within 
 16.34  adjacent counties to sell stickers.  Upon appointment of a 
 16.35  subagent, the auditor shall notify the commissioner of the name 
 16.36  and address of the subagent.  The auditor may revoke the 
 17.1   appointment of a subagent, and the commissioner may revoke the 
 17.2   appointment of a state agency at any time.  The commissioner may 
 17.3   require an auditor to revoke a subagent's appointment.  The 
 17.4   auditor shall furnish stickers on consignment to any subagent 
 17.5   who furnishes a surety bond in favor of the county in an amount 
 17.6   at least equal to the value of the stickers to be consigned to 
 17.7   that subagent.  A surety bond is not required for a state agency 
 17.8   appointed by the commissioner.  The county auditor shall be 
 17.9   responsible for all stickers issued to and user fees received by 
 17.10  agents except in a county where the county auditor does not 
 17.11  retain fees paid for license purposes.  In these counties, the 
 17.12  responsibilities imposed by this section upon the county auditor 
 17.13  are imposed upon the county.  The commissioner may promulgate 
 17.14  additional rules governing the accounting and procedures for 
 17.15  handling state trail stickers as provided in section 97A.485, 
 17.16  subdivision 11. 
 17.17     Any resident desiring to sell snowmobile state trail 
 17.18  stickers may either purchase for cash or obtain on consignment 
 17.19  stickers from a county auditor in groups of not less than ten 
 17.20  individual stickers.  In selling stickers, the resident shall be 
 17.21  deemed a subagent of the county auditor and the commissioner, 
 17.22  and shall observe all rules promulgated by the commissioner for 
 17.23  accounting and handling of licenses and stickers pursuant to 
 17.24  section 97A.485, subdivision 11. 
 17.25     The county auditor shall promptly deposit all money 
 17.26  received from the sale of the stickers with the county treasurer 
 17.27  and shall promptly transmit any reports required by the 
 17.28  commissioner, plus 96 percent of the price paid by each 
 17.29  stickerholder, exclusive of the issuing fee, for each sticker 
 17.30  sold or consigned by the auditor and subsequently sold to a 
 17.31  stickerholder during the accounting period.  The county auditor 
 17.32  shall retain as a commission four percent of all sticker fees, 
 17.33  excluding the issuing fee for stickers consigned to subagents 
 17.34  and the issuing fee on stickers sold by the auditor to 
 17.35  stickerholders. 
 17.36     Unsold stickers in the hands of any subagent shall be 
 18.1   redeemed by the commissioner if presented for redemption within 
 18.2   the time prescribed by the commissioner.  Any stickers not 
 18.3   presented for redemption within the period prescribed shall be 
 18.4   conclusively presumed to have been sold, and the subagent 
 18.5   possessing the same or to whom they are charged shall be 
 18.6   accountable. 
 18.7      Subd. 4.  [DISTRIBUTION OF STICKERS.] The commissioner 
 18.8   shall provide stickers to all agents authorized to issue 
 18.9   stickers by the commissioner. 
 18.10     Subd. 5.  [AGENT'S FEE.] The fee for a sticker shall be 
 18.11  increased by the amount of an issuing fee of $1 per sticker.  
 18.12  The issuing fee may be retained by the seller of the sticker.  
 18.13     Sec. 17.  Minnesota Statutes 1996, section 84.83, 
 18.14  subdivision 3, is amended to read: 
 18.15     Subd. 3.  [PURPOSES FOR THE ACCOUNT.] The money deposited 
 18.16  in the account and interest earned on that money may be expended 
 18.17  only as appropriated by law for the following purposes:  
 18.18     (1) for a grant-in-aid program to counties and 
 18.19  municipalities for construction and maintenance of snowmobile 
 18.20  trails, including maintenance of trails on lands and waters of 
 18.21  Voyageurs National Park; 
 18.22     (2) for acquisition, development, and maintenance of state 
 18.23  recreational snowmobile trails; 
 18.24     (3) for snowmobile safety programs; and 
 18.25     (4) for the administration and enforcement of sections 
 18.26  84.81 to 84.90.  
 18.27     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
 18.28  84.86, subdivision 1, is amended to read: 
 18.29     Subdivision 1.  With a view of achieving maximum use of 
 18.30  snowmobiles consistent with protection of the environment the 
 18.31  commissioner of natural resources shall adopt rules in the 
 18.32  manner provided by chapter 14, for the following purposes: 
 18.33     (1) Registration of snowmobiles and display of registration 
 18.34  numbers. 
 18.35     (2) Use of snowmobiles insofar as game and fish resources 
 18.36  are affected. 
 19.1      (3) Use of snowmobiles on public lands and waters, or on 
 19.2   grant-in-aid trails, including, but not limited to, the use of 
 19.3   nonmetal traction devices. 
 19.4      (4) Uniform signs to be used by the state, counties, and 
 19.5   cities, which are necessary or desirable to control, direct, or 
 19.6   regulate the operation and use of snowmobiles. 
 19.7      (5) Specifications relating to snowmobile mufflers. 
 19.8      (6) A comprehensive snowmobile information and safety 
 19.9   education and training program, including but not limited to the 
 19.10  preparation and dissemination of snowmobile information and 
 19.11  safety advice to the public, the training of snowmobile 
 19.12  operators, and the issuance of snowmobile safety certificates to 
 19.13  snowmobile operators who successfully complete the snowmobile 
 19.14  safety education and training course.  For the purpose of 
 19.15  administering such program and to defray a portion of the 
 19.16  expenses of training and certifying snowmobile operators, the 
 19.17  commissioner shall collect a fee of not to exceed $5 from each 
 19.18  person who receives the youth and young adult training and a fee 
 19.19  established under chapter 16A from each person who receives the 
 19.20  adult training.  The commissioner shall deposit the fee in the 
 19.21  snowmobile trails and enforcement account and the amount thereof 
 19.22  is appropriated annually to the commissioner of natural 
 19.23  resources for the administration of such programs.  The 
 19.24  commissioner shall cooperate with private organizations and 
 19.25  associations, private and public corporations, and local 
 19.26  governmental units in furtherance of the program established 
 19.27  under this clause.  The commissioner shall consult with the 
 19.28  commissioner of public safety in regard to training program 
 19.29  subject matter and performance testing that leads to the 
 19.30  certification of snowmobile operators. 
 19.31     (7) The operator of any snowmobile involved in an accident 
 19.32  resulting in injury requiring medical attention or 
 19.33  hospitalization to or death of any person or total damage to an 
 19.34  extent of $500 or more, shall forward a written report of the 
 19.35  accident to the commissioner on such form as the commissioner 
 19.36  shall prescribe.  If the operator is killed or is unable to file 
 20.1   a report due to incapacitation, any peace officer investigating 
 20.2   the accident shall file the accident report within ten business 
 20.3   days. 
 20.4      Sec. 19.  Minnesota Statutes 1996, section 84.871, is 
 20.5   amended to read: 
 20.6      84.871 [MUFFLERS EQUIPMENT REQUIREMENTS.] 
 20.7      Subdivision 1.  [MUFFLERS.] Except as provided in this 
 20.8   section, every snowmobile shall be equipped at all times with a 
 20.9   muffler in good working order which blends the exhaust noise 
 20.10  into the overall snowmobile noise and is in constant operation 
 20.11  to prevent excessive or unusual noise.  The exhaust system shall 
 20.12  not emit or produce a sharp popping or crackling sound.  This 
 20.13  section does not apply to organized races or similar competitive 
 20.14  events held on (1) private lands, with the permission of the 
 20.15  owner, lessee, or custodian of the land; (2) public lands and 
 20.16  water under the jurisdiction of the commissioner of natural 
 20.17  resources, with the commissioner's permission; or (3) other 
 20.18  public lands, with the consent of the public agency owning the 
 20.19  land.  No person shall have for sale, sell, or offer for sale on 
 20.20  any new snowmobile any muffler that fails to comply with the 
 20.21  specifications required by the rules of the commissioner after 
 20.22  the effective date of the rules.  
 20.23     Subd. 2.  [METAL TRACTION DEVICES.] A person may not 
 20.24  operate a snowmobile equipped with metal traction devices on the 
 20.25  traffic lanes of hard-surfaced roads or hard-surfaced trails.  A 
 20.26  road authority may permit a person operating a snowmobile with 
 20.27  metal traction devices to cross a hard-surfaced road and may 
 20.28  impose restrictions on the means of crossing that reduce damage 
 20.29  to the road. Pursuant to section 84.86, the commissioner may 
 20.30  adopt rules that limit the use of nonmetal traction devices. 
 20.31     Sec. 20.  Minnesota Statutes 1996, section 84.943, 
 20.32  subdivision 3, is amended to read: 
 20.33     Subd. 3.  [APPROPRIATIONS MUST BE MATCHED BY PRIVATE 
 20.34  FUNDS.] Appropriations transferred to the critical habitat 
 20.35  private sector matching account and money credited to the 
 20.36  account under section 168.1296, subdivision 5, may be expended 
 21.1   only to the extent that they are matched equally with 
 21.2   contributions to the account from private sources, including 
 21.3   money credited to the account under section 168.1296, 
 21.4   subdivision 5, or by funds contributed to the nongame wildlife 
 21.5   management account.  The private contributions may be made in 
 21.6   cash or in contributions of land or interests in land that are 
 21.7   designated by the commissioner of natural resources as program 
 21.8   acquisitions.  Appropriations transferred to the account that 
 21.9   are not matched within three years from the date of the 
 21.10  appropriation shall cancel to the source of the appropriation.  
 21.11  For the purposes of this section, the private contributions of 
 21.12  land or interests in land shall be valued in accordance with 
 21.13  their appraised value. 
 21.14     Sec. 21.  Minnesota Statutes 1996, section 86B.415, is 
 21.15  amended by adding a subdivision to read: 
 21.16     Subd. 7a.  [PERSONAL WATERCRAFT SURCHARGE.] A $30 surcharge 
 21.17  is placed on each personal watercraft licensed under 
 21.18  subdivisions 1 to 5 for enforcement of personal watercraft laws 
 21.19  and for personal watercraft safety education.  Any grants to 
 21.20  counties from revenue collected under this subdivision must be 
 21.21  proportional to the use of personal watercraft in each county.  
 21.22  Grants made under this subdivision are subject to the applicable 
 21.23  administrative, reporting, and auditing requirements in sections 
 21.24  86B.701 and 86B.705. 
 21.25     Sec. 22.  Minnesota Statutes 1996, section 97A.037, 
 21.26  subdivision 1, is amended to read: 
 21.27     Subdivision 1.  [INTERFERENCE WITH TAKING WILD ANIMALS 
 21.28  PROHIBITED.] A person who has the intent to prevent, or disrupt, 
 21.29  or dissuade the taking of another person from taking or 
 21.30  preparing to take a wild animal or enjoyment of the out-of-doors 
 21.31  may must not disturb or interfere with another that person who 
 21.32  if that person is lawfully taking a wild animal or preparing to 
 21.33  take a wild animal.  "Preparing to take a wild animal" includes 
 21.34  travel, camping, and other acts that occur on land or water 
 21.35  where the affected person has the right or privilege to take 
 21.36  lawfully a wild animal. 
 22.1      Sec. 23.  Minnesota Statutes 1996, section 97A.245, is 
 22.2   amended to read: 
 22.3      97A.245 [REWARDS.] 
 22.4      The commissioner may pay rewards for information leading to 
 22.5   the conviction of a person that has violated a provision of laws 
 22.6   relating to wild animals or threatened or endangered species of 
 22.7   wildlife.  A reward may not exceed $500, except a reward for 
 22.8   information relating to big game or threatened or endangered 
 22.9   species of wildlife, may be up to $1,000 and a reward for 
 22.10  information relating to timber wolves may be up to $2,500.  The 
 22.11  rewards may only be paid from funds donated to the commissioner 
 22.12  for these purposes and may not be paid to salaried conservation 
 22.13  officers or peace officers.  
 22.14     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 22.15  97A.485, subdivision 6, is amended to read: 
 22.16     Subd. 6.  [LICENSES TO BE SOLD AND ISSUING FEES.] (a) 
 22.17  Persons authorized to sell licenses under this section must sell 
 22.18  the following licenses for the license fee and the following 
 22.19  issuing fees:  
 22.20     (1) to take deer or bear with firearms and by archery, the 
 22.21  issuing fee is $1; 
 22.22     (2) Minnesota sporting, the issuing fee is $1; and 
 22.23     (3) to take small game, for a person under age 65 to take 
 22.24  fish by angling or for a person of any age to take fish by 
 22.25  spearing, and to trap fur-bearing animals, the issuing fee is 
 22.26  $1; 
 22.27     (4) for a trout and salmon stamp that is not issued 
 22.28  simultaneously with an angling or sporting license, an issuing 
 22.29  fee of 50 cents may be charged at the discretion of the 
 22.30  authorized seller; and 
 22.31     (5) for stamps other than a trout and salmon stamp, and for 
 22.32  a special season Canada goose license, there is no fee. 
 22.33     (b) An issuing fee may not be collected for issuance of a 
 22.34  trout and salmon stamp if a stamp is issued simultaneously with 
 22.35  the related angling or sporting license.  Only one issuing fee 
 22.36  may be collected when selling more than one trout and salmon 
 23.1   stamp in the same transaction after the end of the season for 
 23.2   which the stamp was issued. 
 23.3      (c) The auditor or subagent shall keep the issuing fee as a 
 23.4   commission for selling the licenses.  
 23.5      (d) The commissioner shall collect the issuing fee on 
 23.6   licenses sold by the commissioner. 
 23.7      (e) A license, except stamps, must state the amount of the 
 23.8   issuing fee and that the issuing fee is kept by the seller as a 
 23.9   commission for selling the licenses. 
 23.10     (f) For duplicate licenses, the issuing fees are: 
 23.11     (1) for licenses to take big game, 75 cents; and 
 23.12     (2) for other licenses, 50 cents. 
 23.13     Sec. 25.  Minnesota Statutes 1996, section 103C.315, 
 23.14  subdivision 4, is amended to read: 
 23.15     Subd. 4.  [COMPENSATION.] A supervisor shall receive 
 23.16  compensation for services as the state board may determine, and 
 23.17  may be reimbursed for expenses, including traveling expenses, 
 23.18  necessarily incurred in the discharge of duties.  A supervisor 
 23.19  shall may be reimbursed for the use of the supervisor's own 
 23.20  automobile in the performance of official duties at the a rate 
 23.21  per mile prescribed for state officers and employees up to the 
 23.22  maximum tax-deductible mileage rate permitted under the federal 
 23.23  Internal Revenue Code. 
 23.24     Sec. 26.  Minnesota Statutes 1996, section 103F.155, 
 23.25  subdivision 2, is amended to read: 
 23.26     Subd. 2.  [COMMISSIONER'S REVIEW.] (a) The commissioner 
 23.27  shall review the plan and consult with the state office of civil 
 23.28  defense and other appropriate state and federal agencies.  
 23.29  Following the review, the commissioner shall accept, require 
 23.30  modification, or reject the plan.  
 23.31     (b) If required modifications are not made, or if the plan 
 23.32  is rejected, the commissioner shall order the removal of the 
 23.33  emergency protection measures and shall not provide grant money 
 23.34  under section 103F.161 until the plan is approved or the 
 23.35  required modifications are made. 
 23.36     Sec. 27.  Minnesota Statutes 1996, section 103F.161, 
 24.1   subdivision 2, is amended to read: 
 24.2      Subd. 2.  [ACTION ON GRANT APPLICATIONS.] (a) A local 
 24.3   government may apply to the commissioner for a grant on forms 
 24.4   provided by the commissioner.  The commissioner shall confer 
 24.5   with the local government requesting the grant and may make a 
 24.6   grant up to $75,000 $200,000 based on the following 
 24.7   considerations: 
 24.8      (1) the extent and effectiveness of mitigation measures 
 24.9   already implemented by the local government requesting the 
 24.10  grant; 
 24.11     (2) the feasibility, practicality, and effectiveness of the 
 24.12  proposed mitigation measures and the associated nonflood related 
 24.13  benefits and detriments; 
 24.14     (3) the level of grant assistance that should be provided 
 24.15  to the local government, based on available facts regarding the 
 24.16  nature, extent, and severity of flood problems; 
 24.17     (4) the frequency of occurrence of severe flooding that has 
 24.18  resulted in declaration of the area as a flood disaster area by 
 24.19  the President of the United States; 
 24.20     (5) the economic, social, and environmental benefits and 
 24.21  detriments of the proposed mitigation measures; 
 24.22     (6) whether the floodplain management ordinance or 
 24.23  regulation adopted by the local government meets the minimum 
 24.24  standards established by the commissioner, the degree of 
 24.25  enforcement of the ordinance or regulation, and whether the 
 24.26  local government is complying with the ordinance or regulation; 
 24.27     (7) the degree to which the grant request is consistent 
 24.28  with local water plans developed under chapters 103B and 103D; 
 24.29     (8) the financial capability of the local government to 
 24.30  solve its flood hazard problems without financial assistance; 
 24.31  and 
 24.32     (9) the estimated cost and method of financing of the 
 24.33  proposed mitigation measures based on local money and federal 
 24.34  and state financial assistance. 
 24.35     (b) If the amount of the grant requested 
 24.36  is $75,000 $200,000 or more, the commissioner shall determine, 
 25.1   under the considerations in paragraph (a), whether any part of 
 25.2   the grant should be awarded.  The commissioner must submit an 
 25.3   appropriation request to the governor and the legislature for 
 25.4   funding consideration before each odd-numbered year, consisting 
 25.5   of requests or parts of grant requests of $75,000 $200,000 or 
 25.6   more.  The commissioner must prioritize the grant requests, 
 25.7   under the considerations in paragraph (a), beginning with the 
 25.8   projects the commissioner determines most deserving of financing.
 25.9      (c) A grant may not exceed one-half the total cost of the 
 25.10  proposed mitigation measures. 
 25.11     (d) After July 1, 1991, grants made under this section may 
 25.12  be made to local governments whose grant requests are part of, 
 25.13  or responsive to, a comprehensive local water plan prepared 
 25.14  under chapter 103B or 103D. 
 25.15     Sec. 28.  Minnesota Statutes 1996, section 103G.271, 
 25.16  subdivision 6, is amended to read: 
 25.17     Subd. 6.  [WATER USE PERMIT PROCESSING FEE.] (a) Except as 
 25.18  described in paragraphs (b) to (f), a water use permit 
 25.19  processing fee must be prescribed by the commissioner in 
 25.20  accordance with the following schedule of fees for each water 
 25.21  use permit in force at any time during the year: 
 25.22     (1) 0.05 cents per 1,000 gallons for the first 50,000,000 
 25.23  gallons per year; 
 25.24     (2) 0.10 cents per 1,000 gallons for amounts greater than 
 25.25  50,000,000 gallons but less than 100,000,000 gallons per year; 
 25.26     (3) 0.15 cents per 1,000 gallons for amounts greater than 
 25.27  100,000,000 gallons but less than 150,000,000 gallons per year; 
 25.28  and 
 25.29     (4) 0.20 cents per 1,000 gallons for amounts greater than 
 25.30  150,000,000 gallons but less than 200,000,000 gallons per year; 
 25.31     (5) 0.25 cents per 1,000 gallons for amounts greater than 
 25.32  200,000,000 gallons but less than 250,000,000 gallons per year; 
 25.33     (6) 0.30 cents per 1,000 gallons for amounts greater than 
 25.34  250,000,000 gallons but less than 300,000,000 gallons per year; 
 25.35     (7) 0.35 cents per 1,000 gallons for amounts greater than 
 25.36  300,000,000 gallons but less than 350,000,000 gallons per year; 
 26.1      (8) 0.40 cents per 1,000 gallons for amounts greater than 
 26.2   350,000,000 gallons but less than 400,000,000 gallons per year; 
 26.3   and 
 26.4      (9) 0.45 cents per 1,000 gallons for amounts greater than 
 26.5   400,000,000 gallons per year.  
 26.6      (b) For once-through cooling systems, a water use 
 26.7   processing fee must be prescribed by the commissioner in 
 26.8   accordance with the following schedule of fees for each water 
 26.9   use permit in force at any time during the year: 
 26.10     (1) for nonprofit corporations and school districts: 
 26.11     (i) 5.0 cents per 1,000 gallons until December 31, 1991; 
 26.12     (ii) 10.0 cents per 1,000 gallons from January 1, 1992, 
 26.13  until December 31, 1996; and 
 26.14     (iii), 15.0 cents per 1,000 gallons after January 1, 1997; 
 26.15  and 
 26.16     (2) for all other users, 20 cents per 1,000 gallons. 
 26.17     (c) The fee is payable based on the amount of water 
 26.18  appropriated during the year and, except as provided in 
 26.19  paragraph (f), the minimum fee is $50.  
 26.20     (d) For water use processing fees other than once-through 
 26.21  cooling systems:  
 26.22     (1) the fee for a city of the first class may not exceed 
 26.23  $175,000 per year; 
 26.24     (2) the fee for other entities for any permitted use may 
 26.25  not exceed: 
 26.26     (i) $35,000 per year for an entity holding three or fewer 
 26.27  permits; 
 26.28     (ii) $50,000 per year for an entity holding four or five 
 26.29  permits; 
 26.30     (iii) $175,000 per year for an entity holding more than 
 26.31  five permits; 
 26.32     (3) the fee for agricultural irrigation may not exceed $750 
 26.33  per year; and 
 26.34     (4) the fee for a municipality that furnishes electric 
 26.35  service and cogenerates steam for home heating may not exceed 
 26.36  $10,000 for its permit for water use related to the cogeneration 
 27.1   of electricity and steam; and 
 27.2      (5) no fee is required for a project involving the 
 27.3   appropriation of surface water to prevent flood damage or to 
 27.4   remove flood waters during a period of flooding, as determined 
 27.5   by the commissioner.  
 27.6      (e) Failure to pay the fee is sufficient cause for revoking 
 27.7   a permit.  A penalty of two percent per month calculated from 
 27.8   the original due date must be imposed on the unpaid balance of 
 27.9   fees remaining 30 days after the sending of a second notice of 
 27.10  fees due.  A fee may not be imposed on an agency, as defined in 
 27.11  section 16B.01, subdivision 2, or federal governmental agency 
 27.12  holding a water appropriation permit. 
 27.13     (f) The minimum water use processing fee for a permit 
 27.14  issued for irrigation of agricultural land is $10 for years in 
 27.15  which: 
 27.16     (1) there is no appropriation of water under the permit; or 
 27.17     (2) the permit is suspended for more than seven consecutive 
 27.18  days between May 1 and October 1. 
 27.19     (g) For once-through systems fees payable after July 1, 
 27.20  1993, 75 percent of the fees must be credited to a special 
 27.21  account and are appropriated to the Minnesota public facilities 
 27.22  authority for loans under section 446A.21. 
 27.23     Sec. 29.  Minnesota Statutes 1996, section 115B.175, 
 27.24  subdivision 3, is amended to read: 
 27.25     Subd. 3.  [SUBMISSION AND APPROVAL OF VOLUNTARY RESPONSE 
 27.26  ACTION PLANS.] (a) "Voluntary response action plan" means: 
 27.27     (1) a plan submitted to the commissioner under section 
 27.28  115B.17, subdivision 14, that meets the requirements of this 
 27.29  section; or 
 27.30     (2) for the purposes of a site eligible under section 
 27.31  116J.554, subdivision 1, paragraph (c), a letter from the 
 27.32  commissioner stating that no response action plan is required 
 27.33  for a site. 
 27.34     (b) A person shall submit a voluntary response action plan 
 27.35  to the commissioner under section 115B.17, subdivision 14.  The 
 27.36  commissioner may provide assistance to review voluntary response 
 28.1   action plans or supervise response action implementation under 
 28.2   that subdivision. 
 28.3      (b) (c) A voluntary response action plan submitted for 
 28.4   approval of the commissioner must include an investigation 
 28.5   report that describes the methods and results of an 
 28.6   investigation of the releases and threatened releases at the 
 28.7   identified area of real property.  The commissioner must not 
 28.8   approve the voluntary response action plan unless the 
 28.9   commissioner determines that the nature and extent of the 
 28.10  releases and threatened releases at the identified area of real 
 28.11  property have been adequately identified and evaluated in the 
 28.12  investigation report. 
 28.13     (c) (d) Response actions required in a voluntary response 
 28.14  action plan under this section must meet the same standards for 
 28.15  protection that apply to response actions taken or requested 
 28.16  under section 115B.17, subdivision 1 or 2. 
 28.17     (d) (e) When the commissioner approves a voluntary response 
 28.18  action plan, the commissioner may include in the approval an 
 28.19  acknowledgment that, upon certification of completion of the 
 28.20  response actions as provided in subdivision 5, the person 
 28.21  submitting the plan will receive the protection from liability 
 28.22  provided under this section. 
 28.23     Sec. 30.  Minnesota Statutes 1996, section 116.07, 
 28.24  subdivision 4h, is amended to read: 
 28.25     Subd. 4h.  [FINANCIAL RESPONSIBILITY RULES.] (a) The agency 
 28.26  shall adopt rules requiring the operator or owner of a solid 
 28.27  waste disposal facility to submit to the agency proof of the 
 28.28  operator's or owner's financial capability to provide reasonable 
 28.29  and necessary response during the operating life of the facility 
 28.30  and for 30 years after closure for a mixed municipal solid waste 
 28.31  disposal facility or for a minimum of 20 years after closure, as 
 28.32  determined by agency rules, for any other solid waste disposal 
 28.33  facility, and to provide for the closure of the facility and 
 28.34  postclosure care required under agency rules.  Proof of 
 28.35  financial responsibility is required of the operator or owner of 
 28.36  a facility receiving an original permit or a permit for 
 29.1   expansion after adoption of the rules.  Within 180 days of the 
 29.2   effective date of the rules or by July 1, 1987, whichever is 
 29.3   later, proof of financial responsibility is required of an 
 29.4   operator or owner of a facility with a remaining capacity of 
 29.5   more than five years or 500,000 cubic yards that is in operation 
 29.6   at the time the rules are adopted.  The agency may not allow the 
 29.7   operator or owner of a solid waste disposal facility to 
 29.8   substitute any of the other financial responsibility mechanisms 
 29.9   authorized by agency rules for financial assurance obligations 
 29.10  covered by existing trust fund reserves.  The agency shall allow 
 29.11  the substitution of other financial responsibility mechanisms 
 29.12  authorized by agency rules for unfunded financial assurance 
 29.13  trust fund obligations.  Compliance with the rules and the 
 29.14  requirements of paragraph (b) is a condition of obtaining or 
 29.15  retaining a permit to operate the facility. 
 29.16     (b) A municipality, as defined in section 475.51, 
 29.17  subdivision 2, including a sanitary district, that owns or 
 29.18  operates a solid waste disposal facility that was in operation 
 29.19  on May 15, 1989, may meet its financial responsibility for all 
 29.20  or a portion of the contingency action portion of the reasonable 
 29.21  and necessary response costs at the facility by pledging its 
 29.22  full faith and credit to meet its responsibility. 
 29.23     The pledge must be made in accordance with the requirements 
 29.24  in chapter 475 for issuing bonds of the municipality, and the 
 29.25  following additional requirements: 
 29.26     (1) The governing body of the municipality shall enact an 
 29.27  ordinance that clearly accepts responsibility for the costs of 
 29.28  contingency action at the facility and that reserves, during the 
 29.29  operating life of the facility and for the time period required 
 29.30  in paragraph (a) after closure, a portion of the debt limit of 
 29.31  the municipality, as established under section 475.53 or other 
 29.32  law, that is equal to the total contingency action costs. 
 29.33     (2) The municipality shall require that all collectors that 
 29.34  haul to the facility implement a plan for reducing solid waste 
 29.35  by using volume-based pricing, recycling incentives, or other 
 29.36  means. 
 30.1      (3) When a municipality opts to meet a portion of its 
 30.2   financial responsibility by relying on its authority to issue 
 30.3   bonds, it shall also begin setting aside in a dedicated 
 30.4   long-term care trust fund money that will cover a portion of the 
 30.5   potential contingency action costs at the facility, the amount 
 30.6   to be determined by the agency for each facility based on at 
 30.7   least the amount of waste deposited in the disposal facility 
 30.8   each year, and the likelihood and potential timing of conditions 
 30.9   arising at the facility that will necessitate response action.  
 30.10  The agency may not require a municipality to set aside more than 
 30.11  five percent of the total cost in a single year. 
 30.12     (4) A municipality shall have and consistently maintain an 
 30.13  investment grade bond rating as a condition of using bonding 
 30.14  authority to meet financial responsibility under this section. 
 30.15     (5) The municipality shall file with the commissioner of 
 30.16  revenue its consent to have the amount of its contingency action 
 30.17  costs deducted from state aid payments otherwise due the 
 30.18  municipality and paid instead to the environmental response, 
 30.19  compensation, and compliance account created in section 115B.20, 
 30.20  if the municipality fails to conduct the contingency action at 
 30.21  the facility when ordered by the agency.  If the agency notifies 
 30.22  the commissioner that the municipality has failed to conduct 
 30.23  contingency action when ordered by the agency, the commissioner 
 30.24  shall deduct the amounts indicated by the agency from the state 
 30.25  aids in accordance with the consent filed with the commissioner. 
 30.26     (6) The municipality shall file with the agency written 
 30.27  proof that it has complied with the requirements of paragraph 
 30.28  (b). 
 30.29     (c) The method for proving financial responsibility under 
 30.30  paragraph (b) may not be applied to a new solid waste disposal 
 30.31  facility or to expansion of an existing facility, unless the 
 30.32  expansion is a vertical expansion.  Vertical expansions of 
 30.33  qualifying existing facilities cannot be permitted for a 
 30.34  duration of longer than three years. 
 30.35     Sec. 31.  Minnesota Statutes 1996, section 116.49, is 
 30.36  amended by adding a subdivision to read: 
 31.1      Subd. 3.  [ABOVEGROUND STORAGE TANK RULES.] After the 
 31.2   effective date of this section, and until December 31, 1999, any 
 31.3   new rules or amendments to existing rules that are proposed by 
 31.4   the agency with respect to aboveground storage tanks must be 
 31.5   submitted to the legislative committees with jurisdiction over 
 31.6   the environment within one week of publishing the notice of 
 31.7   intent to adopt rules in the State Register.  The rules may 
 31.8   become effective no earlier than 90 days or the March 15 
 31.9   following the submittal, whichever is later, except that if the 
 31.10  submittal occurs between the date of adjournment of the 
 31.11  legislature and the following February 1, and the rules are 
 31.12  adopted following a public hearing, the rules may become 
 31.13  effective no earlier than March 15 of the year following 
 31.14  February 1. 
 31.15     Sec. 32.  [REPORT.] 
 31.16     No later than July 1, 1998, the pollution control agency 
 31.17  shall submit a report to the legislative committees with 
 31.18  jurisdiction over the environment which identifies all petroleum 
 31.19  facilities in the state with greater than 1,000,000 gallons 
 31.20  total capacity, the status of any permit applications at such 
 31.21  facilities, and any known pollution or contamination problems 
 31.22  and related cleanup plans or cleanup efforts at such facilities. 
 31.23     Sec. 33.  [WOLF HYBRID STUDY.] 
 31.24     By January 1, 1999, the board of animal health shall report 
 31.25  to the senate agriculture and rural development and house 
 31.26  agriculture committees regarding the need for law governing the 
 31.27  possession of a wolf hybrid, including any animal that is any 
 31.28  part wolf, in captivity.  The report must discuss the possible 
 31.29  scope of such law, the feasibility of enforcing the law, and any 
 31.30  associated costs.  If the report recommends legislation, it must 
 31.31  include a draft proposal. 
 31.32     Sec. 34.  [WATER QUALITY COST-BENEFIT MODEL SCOPING TASK 
 31.33  FORCE.] 
 31.34     The commissioner of the pollution control agency shall 
 31.35  convene a task force comprising no more than three 
 31.36  representatives each from industry, labor, agriculture, 
 32.1   municipalities, watershed management groups, and environmental 
 32.2   groups within 30 days of the effective date of this section.  
 32.3   The task force shall select an entity to conduct a scoping study 
 32.4   for a cost-benefit model to analyze water quality standards.  
 32.5   The scoping study shall include:  a watershed-based approach 
 32.6   that evaluates both point and nonpoint pollution sources, the 
 32.7   extent of the costs and benefits to be evaluated, the necessary 
 32.8   elements of the model, a model that is transferable to other 
 32.9   watersheds and standards, and the characteristics of the 
 32.10  watersheds and standards to be evaluated.  By October 15, 1998, 
 32.11  the task force shall review the completed scoping study and make 
 32.12  recommendations on the scope, cost, and time frame for 
 32.13  development of the model to the commissioner and to the chairs 
 32.14  of the house and senate environment and natural resources 
 32.15  committees, the chair of the house environment, natural 
 32.16  resources and agriculture finance committee, and the chair of 
 32.17  the senate environment and agriculture budget division.  
 32.18     Sec. 35.  [REPEALER.] 
 32.19     Minnesota Statutes 1997 Supplement, section 85.015, 
 32.20  subdivision 1c; and Laws 1991, chapter 275, section 3, are 
 32.21  repealed. 
 32.22     Sec. 36.  [EFFECTIVE DATE.] 
 32.23     Section 20 is effective July 1, 1999.  Section 21 is 
 32.24  effective January 1, 1999.  The remainder of this act is 
 32.25  effective the day following final enactment.