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             18C.141; 35.82, subdivision 2; 41A.09, subdivision 1a; 
  1.9             84.871; 86B.101, subdivision 2; 86B.415, subdivision 
  1.10            1, and by adding a subdivision; 89A.03, subdivision 1; 
  1.11            90.193; 93.002, subdivision 1; 97A.037, subdivision 1; 
  1.12            97A.245; 103C.315, subdivision 4; 103F.155, 
  1.13            subdivision 2; 103F.161, subdivision 2; 103G.271, 
  1.14            subdivision 6; 115.076, subdivision 1; 116.07, by 
  1.15            adding subdivisions; 308A.131, subdivision 1; 
  1.16            308A.705, subdivision 3; Minnesota Statutes 1997 
  1.17            Supplement, sections 17.101, subdivision 5; 41A.09, 
  1.18            subdivision 3a; 84.8205; 84.86, subdivision 1; 85.015, 
  1.19            subdivision 1c; 115.55, subdivision 5a; 116.07, 
  1.20            subdivision 7; 116.18, subdivision 3c; 169.1217, 
  1.21            subdivision 1; and 308A.705, subdivision 1; Laws 1997, 
  1.22            chapter 216, section 15, subdivision 8; proposing 
  1.23            coding for new law in Minnesota Statutes, chapters 17; 
  1.24            18C; and 84; repealing Minnesota Statutes 1997 
  1.25            Supplement, section 85.015, subdivision 1c; and Laws 
  1.26            1991, chapter 275, section 3. 
  1.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.28  Section 1.  [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.] 
  1.29     The sums in the columns headed "APPROPRIATIONS" are 
  1.30  appropriated from the general fund, or another named fund, to 
  1.31  the agencies and for the purposes specified in this act to be 
  1.32  available for the fiscal years indicated for each purpose.  The 
  1.33  figures "1998" and "1999," where used in this act, mean that the 
  1.34  appropriation or appropriations listed under them are available 
  1.35  for the year ending June 30, 1998, or June 30, 1999, 
  1.36  respectively. 
  2.1                           SUMMARY BY FUND
  2.2                                             1998         1999
  2.3   General Fund                          $5,294,000     $12,498,000
  2.4   Natural Resources Fund                   -0-             500,000
  2.5   Total                                  5,294,000      12,998,000
  2.6                                              APPROPRIATIONS 
  2.7                                          Available for the Year 
  2.8                                              Ending June 30 
  2.9                                             1998         1999 
  2.10  Sec. 2.  POLLUTION CONTROL
  2.11  AGENCY                                   180,000      1,210,000
  2.12  $350,000 in fiscal year 1999 is added 
  2.13  to the appropriation for county feedlot 
  2.14  program grants in Laws 1997, chapter 
  2.15  216, section 2, subdivision 2.  In 
  2.16  fiscal year 1999 delegated counties 
  2.17  shall be eligible to receive a grant of 
  2.18  either:  $40 multiplied by the number 
  2.19  of livestock or poultry farms with 
  2.20  sales greater than $10,000, as reported 
  2.21  in the 1992 Census of Agriculture, 
  2.22  published by the United States Bureau 
  2.23  of Census; or $50 multiplied by the 
  2.24  number of feedlots with greater than 
  2.25  ten animal units, as determined by a 
  2.26  level 2 or level 3 feedlot inventory 
  2.27  conducted in accordance with the 
  2.28  Feedlot Inventory Guidebook published 
  2.29  by the board of water and soil 
  2.30  resources, dated June 1991. 
  2.31  $50,000 in fiscal year 1999 is for the 
  2.32  bioaccumulative residues research 
  2.33  program at the University of 
  2.34  Minnesota-Duluth to analyze fish 
  2.35  contaminants, including researching the 
  2.36  presence of selenium in fish samples.  
  2.37  As a condition of this grant, the 
  2.38  University of Minnesota-Duluth must 
  2.39  submit a work program and submit 
  2.40  semiannual progress reports as provided 
  2.41  in Minnesota Statutes, section 116P.05, 
  2.42  subdivision 2, paragraph (c).  This is 
  2.43  a one-time appropriation. 
  2.44  $180,000 in fiscal year 1998 is for the 
  2.45  cost of administering the wastewater 
  2.46  infrastructure program.  This 
  2.47  appropriation is available until June 
  2.48  30, 2002. 
  2.49  $50,000 in fiscal year 1999 is for a 
  2.50  scoping study for a cost-benefit model 
  2.51  to analyze the costs of water quality 
  2.52  standards.  This is a one-time 
  2.53  appropriation. 
  2.54  $375,000 in fiscal year 1999 is for 
  2.55  acceleration of research being 
  2.56  conducted on deformities and possible 
  2.57  causes found in amphibians.  The 
  2.58  funding must be shared with the 
  2.59  departments of agriculture, natural 
  2.60  resources, and health and with the 
  3.1   appropriate University of Minnesota 
  3.2   departments.  $39,000 of the 
  3.3   appropriation must be shared with 
  3.4   Hamline University for its friends of 
  3.5   the frog program.  The money must be 
  3.6   used for research and monitoring of 
  3.7   amphibian deformities, including, but 
  3.8   not limited to, a possible groundwater 
  3.9   surface water interconnection.  The 
  3.10  money may be used as a match for any 
  3.11  federal dollars available.  This is a 
  3.12  one-time appropriation. 
  3.13  $300,000 in fiscal year 1999 is for 
  3.14  expansion of permitting activities 
  3.15  under the federal Clean Water Act that 
  3.16  affect feedlots in excess of 1,000 
  3.17  animal units. 
  3.18  The availability of the appropriation 
  3.19  in Laws 1997, chapter 216, section 15, 
  3.20  subdivision 14, paragraph (c), to 
  3.21  monitor and research the effects of 
  3.22  endocrine disrupting chemicals in 
  3.23  surface waters is extended to June 30, 
  3.24  2000. 
  3.25  $85,000 in fiscal year 1999 is for a 
  3.26  grant to Benton county to pay the 
  3.27  principal amount due in fiscal year 
  3.28  1999 on bonds issued by the county to 
  3.29  pay part of a final order or settlement 
  3.30  of a lawsuit for environmental response 
  3.31  costs at a mixed municipal solid waste 
  3.32  facility.  This money and any future 
  3.33  money appropriated for this purpose 
  3.34  must be apportioned by Benton county 
  3.35  among the local units of government 
  3.36  that were parties to the final order or 
  3.37  settlement in the same proportion that 
  3.38  the local units of government agreed to 
  3.39  as their share of the liability.  This 
  3.40  is a one-time appropriation. 
  3.41  Sec. 3.  ZOOLOGICAL BOARD              1,500,000          -0-  
  3.42  $1,500,000 is for zoo operations.  This 
  3.43  is a one-time supplemental 
  3.44  appropriation.  By September 1, 1998, 
  3.45  the board shall report to the governor, 
  3.46  the chair of the senate environment and 
  3.47  agriculture budget division, and the 
  3.48  chair of the house environment, natural 
  3.49  resources and agriculture finance 
  3.50  committee on recommendations to 
  3.51  internally manage the effects of 
  3.52  lowered attendance projections and 
  3.53  methods for improving attendance 
  3.54  forecasting. 
  3.55  Sec. 4.  NATURAL RESOURCES             2,974,000      7,717,000
  3.56                          Summary by Fund
  3.57  General Fund            2,974,000      7,267,000
  3.58  Natural Resources Fund     -0-           450,000
  3.59  $1,504,000 in fiscal year 1999 is for 
  3.60  flood-related activities in the 
  3.61  division of waters.  $200,000 of this 
  4.1   appropriation is for alternative flood 
  4.2   control measures beneficial to the 
  4.3   environment, such as culvert downsizing 
  4.4   on man-made waterways and wetland 
  4.5   restoration.  $10,000 of this 
  4.6   appropriation is for a grant to the 
  4.7   Marine-on-St. Croix watershed 
  4.8   management organization for engineering 
  4.9   analysis of flooding problems along 
  4.10  Twin lake.  Notwithstanding Minnesota 
  4.11  Statutes, section 103F.161, subdivision 
  4.12  2, paragraph (c), this appropriation 
  4.13  may be combined with a flood hazard 
  4.14  mitigation grant previously awarded to 
  4.15  the watershed management organization.  
  4.16  $75,000 of this appropriation is for a 
  4.17  grant under Minnesota Statutes, section 
  4.18  103F.161, to Swift county for 
  4.19  improvements at Lake Oliver.  $30,000 
  4.20  of this appropriation is for a grant 
  4.21  under Minnesota Statutes, section 
  4.22  103F.161, to the Chisago Lake 
  4.23  improvement district for improvements 
  4.24  to the outlet project.  The portion of 
  4.25  this appropriation to be included in 
  4.26  the department's base is $1,189,000 for 
  4.27  each fiscal year. 
  4.28  $150,000 in fiscal year 1999 is for 
  4.29  transfer to the Minnesota forest 
  4.30  resources council for implementation of 
  4.31  the Sustainable Forest Resources Act 
  4.32  pursuant to Minnesota Statutes, chapter 
  4.33  89A.  This a one-time appropriation. 
  4.34  $476,000 in fiscal year 1998 is for 
  4.35  sealing inactive wells on state-owned 
  4.36  land.  The commissioner shall determine 
  4.37  project priorities as appropriate based 
  4.38  upon need.  This appropriation is 
  4.39  available until June 30, 2002. 
  4.40  $430,000 in fiscal year 1999 is for 
  4.41  operations at Fort Snelling park and 
  4.42  for statewide resource protection.  The 
  4.43  portion of this appropriation to be 
  4.44  included in the department's base is 
  4.45  $200,000 in each fiscal year. 
  4.46  $250,000 in fiscal year 1999 is for 
  4.47  population and habitat objectives of 
  4.48  the nongame wildlife management program.
  4.49  $180,000 in fiscal year 1998 and 
  4.50  $120,000 in fiscal year 1999 are for 
  4.51  increased public involvement in white 
  4.52  pine management planning and to 
  4.53  accelerate white pine management on 
  4.54  state forest lands.  Any amount of this 
  4.55  appropriation not used in fiscal year 
  4.56  1998 is available in fiscal year 1999. 
  4.57  $370,000 in fiscal year 1998 and 
  4.58  $230,000 in fiscal year 1999 are for 
  4.59  improvement of camper safety and 
  4.60  security in state forest campgrounds 
  4.61  and to make repairs to selected state 
  4.62  forest campgrounds. 
  4.63  $450,000 in fiscal year 1999 is from 
  4.64  the water recreation account in the 
  5.1   natural resources fund for enforcement 
  5.2   of personal watercraft laws.  At least 
  5.3   one-half of the conservation officers 
  5.4   hired pursuant to this item must be 
  5.5   from the protected classes.  $225,000 
  5.6   of this appropriation is for grants to 
  5.7   counties where there is significant use 
  5.8   of personal watercraft on waters in and 
  5.9   bordering the counties.  The grants 
  5.10  must be used for personal watercraft 
  5.11  safety education and law enforcement, 
  5.12  pursuant to Minnesota Statutes, section 
  5.13  86B.415, subdivision 7a. 
  5.14  $250,000 in fiscal year 1999 is for 
  5.15  operational costs related to wildlife 
  5.16  management at the area level. 
  5.17  $470,000 in fiscal year 1998 and 
  5.18  $250,000 in fiscal year 1999 are for 
  5.19  the interpretation, management, and 
  5.20  monitoring of scientific and natural 
  5.21  areas. 
  5.22  $340,000 in fiscal year 1999 is for 
  5.23  technical assistance and grants to 
  5.24  assist local government units and 
  5.25  organizations in the metropolitan area 
  5.26  to acquire and develop natural areas 
  5.27  and greenways. 
  5.28  $300,000 in fiscal year 1999 is for 
  5.29  state trail maintenance and amenities.  
  5.30  $250,000 in fiscal year 1999 is for a 
  5.31  grant to the city of North St. Paul for 
  5.32  improvements including trail 
  5.33  connections, lighting, and landscaping 
  5.34  related to the trail bridge over 
  5.35  Highway 36 in North St. Paul.  This is 
  5.36  a one-time appropriation. 
  5.37  $500,000 in fiscal year 1999 is for 
  5.38  further work to develop protected water 
  5.39  flow recommendations on Minnesota 
  5.40  streams and for support of river 
  5.41  restoration expertise and its 
  5.42  application to the Whitewater river and 
  5.43  Sandy river.  $300,000 of this amount 
  5.44  is a one-time appropriation for stream 
  5.45  protection on Brown's creek in 
  5.46  Washington county. 
  5.47  $53,000 in fiscal year 1999 is for 
  5.48  minerals cooperative environmental 
  5.49  research.  $26,500 is available only as 
  5.50  matched by $1 of nonstate money for 
  5.51  each $1 of state money.  This 
  5.52  appropriation is added to the 
  5.53  appropriation in Laws 1997, chapter 
  5.54  216, section 5, subdivision 2.  
  5.55  $75,000 in fiscal year 1998 is to 
  5.56  repair state forest land in Morrison, 
  5.57  Mille Lacs, Kanabec, and Crow Wing 
  5.58  counties. 
  5.59  $100,000 in fiscal year 1998 is for 
  5.60  development and maintenance of habitat 
  5.61  and facilities, and data management 
  5.62  system development at Swan lake 
  6.1   wildlife management area.  
  6.2   $1,175,000 in fiscal year 1999 is for 
  6.3   wildlife habitat improvement, wildlife 
  6.4   population surveys, monitoring, private 
  6.5   lands cost-sharing for wildlife habitat 
  6.6   and forest stewardship, and project 
  6.7   grants to local governments and private 
  6.8   organizations to enhance fish, 
  6.9   wildlife, and native plant habitats.  
  6.10  Of this amount, $375,000 is for brush 
  6.11  land and forest habitat renewal for 
  6.12  sharp-tailed grouse and other species 
  6.13  of birds dependent on open brush lands 
  6.14  in forest areas by providing financial 
  6.15  and technical assistance to landowners 
  6.16  as well as brush land renewal on public 
  6.17  lands; $300,000 is for wildlife habitat 
  6.18  improvements through cost-sharing and 
  6.19  technical assistance to private 
  6.20  landowners; $300,000 is for forest 
  6.21  stewardship improvements through 
  6.22  cost-sharing and technical assistance 
  6.23  to private landowners; and $200,000 is 
  6.24  for wildlife population surveys, 
  6.25  monitoring, evaluation, and constituent 
  6.26  surveys.  The portion of this 
  6.27  appropriation to be included in the 
  6.28  department's base is $1,075,000 in each 
  6.29  fiscal year.  The base amounts for each 
  6.30  specific item are $325,000, $275,000, 
  6.31  $275,000, and $200,000, respectively.  
  6.32  $100,000 in fiscal year 1998 is for 
  6.33  engineering and hydraulic studies in 
  6.34  conjunction with the proposed 
  6.35  development of an urban whitewater 
  6.36  trail along the Mississippi river in 
  6.37  the lower St. Anthony Falls area below 
  6.38  the stone arch bridge in Minneapolis 
  6.39  and to examine the economic impact, 
  6.40  market use potential, public safety 
  6.41  concerns, environmental considerations, 
  6.42  and land and water use impacts of the 
  6.43  proposed Mississippi Whitewater trail.  
  6.44  The commissioner must coordinate and 
  6.45  work with affected local, state, and 
  6.46  federal governments and interested 
  6.47  citizen groups, including, but not 
  6.48  limited to, the National Park Service, 
  6.49  the United States Army Corps of 
  6.50  Engineers, the University of Minnesota, 
  6.51  the Minnesota historical society, the 
  6.52  metropolitan parks and open space 
  6.53  commission, the Minneapolis park board, 
  6.54  and the Mississippi Whitewater Park 
  6.55  Development Corporation.  The 
  6.56  commissioner must report to the senate 
  6.57  environment and agriculture budget 
  6.58  division and the house environment, 
  6.59  natural resources, and agriculture 
  6.60  finance committee by November 1, 1999, 
  6.61  on the findings from the studies 
  6.62  required under this item.  This 
  6.63  appropriation is available until June 
  6.64  30, 1999. 
  6.65  $100,000 in fiscal year 1998 is for a 
  6.66  grant to the township of Linwood in 
  6.67  Anoka county to construct a surface 
  6.68  water drainage system to control water 
  7.1   pollution.  This appropriation is 
  7.2   available until expended.  Expenses 
  7.3   incurred by Linwood township related to 
  7.4   the proposed project, prior to this 
  7.5   appropriation, may be considered as 
  7.6   part of the total project cost for 
  7.7   purposes of satisfying the requirements 
  7.8   of Minnesota Statutes, section 
  7.9   103F.161, subdivision 2, paragraph (c). 
  7.10  $200,000 in fiscal year 1998 is added 
  7.11  to the appropriation in Laws 1997, 
  7.12  chapter 216, section 15, subdivision 4, 
  7.13  paragraph (c), clause (4), for the 
  7.14  statewide conservation partners program.
  7.15  $215,000 in fiscal year 1998 and 
  7.16  $250,000 in fiscal year 1999 are to 
  7.17  enhance customer service and data 
  7.18  access through the collaborative use of 
  7.19  technology, to improve communication 
  7.20  with citizens and stakeholders, to 
  7.21  provide technical assistance and data 
  7.22  delivery to citizens and local 
  7.23  government, and for the Minnesota 
  7.24  Environmental/Natural Resource 
  7.25  Electronic Library (MENREL) to 
  7.26  accelerate the development of 
  7.27  integrated and indexed environmental 
  7.28  and geographic data catalogs, 
  7.29  cross-agency search and retrieval, and 
  7.30  content-rich libraries of environmental 
  7.31  data and information. 
  7.32  $350,000 in fiscal year 1998 is to 
  7.33  serve as the state match to federal 
  7.34  money to remove surplus sediment along 
  7.35  the east bank of the Mississippi river 
  7.36  at Little Falls.  The commissioner must 
  7.37  coordinate and work with the United 
  7.38  States Army Corps of Engineers on this 
  7.39  project.  This appropriation is 
  7.40  available until expended. 
  7.41  $203,000 in fiscal year 1998 is for a 
  7.42  forestry information management system 
  7.43  to improve the timber sale program, 
  7.44  forest development model, and fire 
  7.45  management. 
  7.46  $35,000 in fiscal year 1998 and 
  7.47  $115,000 in fiscal year 1999 are for 
  7.48  expansion of the "Becoming an Outdoors 
  7.49  Woman Program," and for a position to 
  7.50  coordinate shooting range development 
  7.51  on a statewide basis.  Of this amount, 
  7.52  $35,000 in fiscal year 1998 is 
  7.53  available until June 30, 1999, to match 
  7.54  an equal amount of nonstate money for 
  7.55  shooting range partnership agreements 
  7.56  and is a one-time appropriation. 
  7.57  $50,000 in fiscal year 1998 is for 
  7.58  ecosystem-based management workshops 
  7.59  for teams of local officials, natural 
  7.60  resource managers, and citizens. 
  7.61  $200,000 in fiscal year 1999 is for 
  7.62  aquatic plant restoration.  
  7.63  $125,000 in fiscal year 1999 is for 
  8.1   local initiatives grants program 
  8.2   administration. 
  8.3   $150,000 in fiscal year 1999 is for 
  8.4   long-term monitoring of lake ecosystems.
  8.5   The appropriations in Laws 1996, 
  8.6   chapter 407, section 3, for the Iron 
  8.7   Range off-highway vehicle recreation 
  8.8   area are available until June 30, 2000. 
  8.9   $100,000 in fiscal year 1999 is for an 
  8.10  enhanced lake classification system to 
  8.11  provide comprehensive lake 
  8.12  descriptions.  This appropriation is 
  8.13  added to the base in fiscal year 2000 
  8.14  only. 
  8.15  $200,000 in fiscal year 1999 is to 
  8.16  identify lake watershed boundaries for 
  8.17  lakes greater than 100 acres in a 
  8.18  geographic information system format.  
  8.19  This appropriation is added to the base 
  8.20  in fiscal year 2000 only. 
  8.21  $150,000 in fiscal year 1999 is to 
  8.22  develop methodologies to assess the 
  8.23  cumulative effects of development on 
  8.24  lakes.  This appropriation is added to 
  8.25  the base in fiscal year 2000 only. 
  8.26  $100,000 in fiscal year 1999 is for a 
  8.27  grant to the Upper Swede Hollow 
  8.28  Association for improvements in and 
  8.29  around Swede Hollow Park.  The 
  8.30  appropriation must be used for 
  8.31  plantings, improvements to railway 
  8.32  trestles, trail repair, reconstruction 
  8.33  of the pond outlet, and other trail 
  8.34  improvements.  This is a one-time 
  8.35  appropriation. 
  8.36  $50,000 in fiscal year 1998 and $50,000 
  8.37  in fiscal year 1999 are for an 
  8.38  agreement with the University of 
  8.39  Minnesota College of Architecture and 
  8.40  Landscape Architecture to develop 
  8.41  environmental brownfields mitigation 
  8.42  strategies.  This is a one-time 
  8.43  appropriation. 
  8.44  The appropriation in Laws 1997, chapter 
  8.45  216, section 5, subdivision 4, for 
  8.46  grants to local community forest 
  8.47  ecosystem health programs is available 
  8.48  until June 30, 2000. 
  8.49  $25,000 in fiscal year 1999 is for 
  8.50  promotion and enhanced public awareness 
  8.51  of the RIM critical habitat license 
  8.52  plate program. 
  8.53  Sec. 5.  BOARD OF WATER AND 
  8.54  SOIL RESOURCES                           300,000    1,100,000   
  8.55  $200,000 in fiscal year 1998 is for a 
  8.56  grant to the Faribault county soil and 
  8.57  water conservation district for the 
  8.58  quad-lakes restoration project in 
  8.59  Faribault and Blue Earth counties and 
  8.60  is available until expended. 
  9.1   $1,000,000 in fiscal year 1999 is for 
  9.2   grants to soil and water conservation 
  9.3   districts for cost-sharing contracts 
  9.4   for water quality management on 
  9.5   feedlots.  Priority must be given to 
  9.6   feedlot operators who have received a 
  9.7   notice of violation and for feedlots in 
  9.8   counties that are conducting or have 
  9.9   completed a level 2 or level 3 feedlot 
  9.10  inventory. 
  9.11  $100,000 in fiscal year 1998 is for a 
  9.12  grant to the University of Minnesota 
  9.13  extension service to improve existing 
  9.14  Minnesota extension shoreland guidance 
  9.15  and other related guidebooks.  This is 
  9.16  a one-time appropriation, available 
  9.17  until expended. 
  9.18  $100,000 in fiscal year 1999 is for a 
  9.19  pilot grant program to soil and water 
  9.20  conservation districts for cost-sharing 
  9.21  contracts with landowners to establish 
  9.22  and maintain plantings of trees, 
  9.23  shrubs, and grass strips that are 
  9.24  native species of a local ecotype for 
  9.25  the primary purpose of controlling snow 
  9.26  deposition for the benefit of public 
  9.27  transportation.  The board, in 
  9.28  consultation with the Minnesota 
  9.29  Association of Soil and Water 
  9.30  Conservation Districts, shall select at 
  9.31  least five districts for participation 
  9.32  in the pilot program.  Up to 20 percent 
  9.33  of the appropriation may be used for 
  9.34  the technical and administrative 
  9.35  expenses of soil and water conservation 
  9.36  districts to implement this item.  The 
  9.37  board shall enter into grant agreements 
  9.38  to accomplish the transfer of funds to 
  9.39  soil and water conservation districts 
  9.40  and to establish guidelines to 
  9.41  implement this item.  Cost-sharing 
  9.42  contracts between soil and water 
  9.43  conservation districts and landowners 
  9.44  may provide for annual payments to 
  9.45  landowners for maintenance.  This 
  9.46  appropriation is available until spent. 
  9.47  Sec. 6.  AGRICULTURE                     310,000      2,169,000
  9.48  $110,000 in fiscal year 1998 and 
  9.49  $250,000 in fiscal year 1999 are for 
  9.50  expansion of efforts to prevent the 
  9.51  establishment and spread of gypsy moths 
  9.52  in Minnesota. 
  9.53  $25,000 in fiscal year 1998 and 
  9.54  $325,000 in fiscal year 1999 are for a 
  9.55  state meat inspection program. 
  9.56  $75,000 in fiscal year 1999 is for 
  9.57  additional matching funds for the WIC 
  9.58  coupon program. 
  9.59  $25,000 in fiscal year 1999 is for 
  9.60  additional livestock depredation 
  9.61  payments pursuant to Minnesota 
  9.62  Statutes, section 3.737. 
  9.63  $50,000 in fiscal year 1999 is added to 
 10.1   the appropriation in Laws 1997, chapter 
 10.2   216, section 7, subdivision 4, for 
 10.3   beaver damage control grants.  This is 
 10.4   a one-time appropriation. 
 10.5   Any unencumbered balance from the 
 10.6   appropriation in Laws 1997, chapter 
 10.7   216, section 7, subdivision 4, for 
 10.8   beaver damage control grants for the 
 10.9   first year of the biennium is available 
 10.10  for the second year of the biennium. 
 10.11  $100,000 in fiscal year 1998 is added 
 10.12  to the appropriation in Laws 1997, 
 10.13  chapter 216, section 7, subdivision 4, 
 10.14  to accomplish reform of the federal 
 10.15  milk market order system and for legal 
 10.16  actions opposing the Northeast Dairy 
 10.17  Compact.  This appropriation is 
 10.18  available until June 30, 1999. 
 10.19  $500,000 in fiscal year 1999 is added 
 10.20  to the appropriation for dairy 
 10.21  diagnostic teams in Laws 1997, chapter 
 10.22  216, section 7, subdivision 2, and is 
 10.23  added to the department's base. 
 10.24  $267,000 in fiscal year 1999 is for a 
 10.25  pilot program to expand the concept of 
 10.26  the Minnesota grown program.  The 
 10.27  program is to assist low-income 
 10.28  families in accessing nutritious and 
 10.29  affordable food and to promote economic 
 10.30  development by creating new markets and 
 10.31  food distribution systems.  $17,000 of 
 10.32  this appropriation is for costs of 
 10.33  administration.  $87,000 of this 
 10.34  appropriation is for payment to the 
 10.35  Sustainable Resources Center for the 
 10.36  purposes of this appropriation.  
 10.37  $163,000 of this appropriation is for 
 10.38  food coupons.  The coupons shall be 
 10.39  distributed and administered according 
 10.40  to this section, subject to the 
 10.41  approval of the commissioner of 
 10.42  agriculture.  The portion of this 
 10.43  appropriation to be included in the 
 10.44  department's base for fiscal year 2001 
 10.45  is $200,000, which may only be used for 
 10.46  food coupons. 
 10.47  The Sustainable Resources Center, in 
 10.48  conjunction with the Minnesota Food 
 10.49  Association, and subject to the 
 10.50  approval of the commissioner of 
 10.51  agriculture, shall select up to two 
 10.52  urban and up to two rural communities 
 10.53  as locations for activities that will 
 10.54  serve as models for sustainable 
 10.55  community food systems.  These 
 10.56  activities shall include but are not 
 10.57  limited to: 
 10.58  (1) conducting food system assessments 
 10.59  in each community to identify assets 
 10.60  and needs; 
 10.61  (2) supporting the creation of producer 
 10.62  distribution networks to establish 
 10.63  direct links to low-income consumers; 
 10.64  and 
 11.1   (3) working with food processing plants 
 11.2   in the selected community to develop 
 11.3   the support services needed to make 
 11.4   entry-level jobs accessible to 
 11.5   low-income people. 
 11.6   During each fiscal year beginning in 
 11.7   fiscal year 1999, the commissioner of 
 11.8   agriculture, within the funds 
 11.9   available, shall provide coupons to the 
 11.10  Sustainable Resources Center for 
 11.11  distribution to participating eligible 
 11.12  individuals.  The coupons must be 
 11.13  issued in two allocations each fiscal 
 11.14  year.  Eligible individuals may receive 
 11.15  up to $100 in coupons per year, subject 
 11.16  to the limitation that additional 
 11.17  eligible individuals who reside in the 
 11.18  same household may receive up to $20 in 
 11.19  coupons per year, up to a maximum of 
 11.20  $200 per household per year.  Eligible 
 11.21  individuals include individuals who are 
 11.22  residents of the communities in the 
 11.23  pilot project and are eligible for the 
 11.24  Minnesota grown coupons under this 
 11.25  section.  Eligible individuals include: 
 11.26  (1) individuals who are in a 
 11.27  state-verified income program; and 
 11.28  (2) individuals who are selected by the 
 11.29  Sustainable Resources Center based on 
 11.30  guidelines targeting specific 
 11.31  populations within the pilot 
 11.32  communities. 
 11.33  The amount of the Minnesota grown 
 11.34  coupons must be excluded as income 
 11.35  under the AFDC, refugee cash 
 11.36  assistance, general assistance, MFIP, 
 11.37  MFIP-R, MFIP-S, food stamp programs, 
 11.38  state housing subsidy programs, 
 11.39  low-income energy assistance programs, 
 11.40  and other programs that do not count 
 11.41  food stamps as income. 
 11.42  The coupons must be clearly labeled as 
 11.43  redeemable only for products licensed 
 11.44  to use the Minnesota grown logo or 
 11.45  labeling statement under Minnesota 
 11.46  Statutes, section 17.102.  Coupons may 
 11.47  be redeemed by farmers, custom meat 
 11.48  processors, community-supported 
 11.49  agriculture farms, and other entities 
 11.50  approved by the commissioner of 
 11.51  agriculture.  The person accepting the 
 11.52  coupon is responsible for its 
 11.53  redemption only on products licensed to 
 11.54  use the Minnesota grown logo or 
 11.55  labeling statement.  The commissioner 
 11.56  must receive and reimburse all valid 
 11.57  coupons redeemed pursuant to this 
 11.58  section. 
 11.59  The commissioner may establish criteria 
 11.60  for vendor eligibility and may enforce 
 11.61  the Minnesota grown coupon program 
 11.62  according to Minnesota Statutes, 
 11.63  sections 17.982 to 17.984. 
 11.64  $160,000 in fiscal year 1999 is for 
 12.1   value-added agricultural product 
 12.2   processing and marketing grants under 
 12.3   Minnesota Statutes, section 17.101, 
 12.4   subdivision 5.  This appropriation and 
 12.5   the appropriation in Laws 1997, chapter 
 12.6   216, section 7, subdivision 3, for 
 12.7   grants under Minnesota Statutes, 
 12.8   section 17.101, subdivision 5, are 
 12.9   available until June 30, 2001. 
 12.10  $125,000 in fiscal year 1999 is for a 
 12.11  grant to the Market Champ, Inc. board.  
 12.12  This is a one-time appropriation. 
 12.13  $25,000 in fiscal year 1999 is for the 
 12.14  Passing on the Farm Center established 
 12.15  in Minnesota Statutes, section 17.985.  
 12.16  This is a one-time appropriation. 
 12.17  $200,000 in fiscal year 1999 is to 
 12.18  expand the shared savings loan program 
 12.19  under Minnesota Statutes, section 
 12.20  17.115, to include a program of 
 12.21  revolving loans for demonstration 
 12.22  projects of farm manure digester 
 12.23  technology.  Notwithstanding the 
 12.24  limitations of Minnesota Statutes, 
 12.25  section 17.115, subdivision 2, 
 12.26  paragraphs (b) and (c), loans under 
 12.27  this program are no-interest loans in 
 12.28  principal amounts not to exceed 
 12.29  $200,000 and may be made to any 
 12.30  resident of this state.  Loans for one 
 12.31  or more projects must be made only 
 12.32  after the commissioner seeks 
 12.33  applications.  Loans under this program 
 12.34  may be used as a match for federal 
 12.35  loans or grants.  Money repaid from 
 12.36  loans must be returned to the revolving 
 12.37  fund for future projects.  This is a 
 12.38  one-time appropriation. 
 12.39  $50,000 in fiscal year 1998 is for a 
 12.40  grant to the University of Minnesota 
 12.41  for investigation, screening, and a 
 12.42  survey of existing research into the 
 12.43  design and development of low-cost 
 12.44  alternatives to pasteurization that 
 12.45  provide comparable bacteria count 
 12.46  reduction in fruit juice.  The 
 12.47  commissioner must report to the chair 
 12.48  of the house environment, natural 
 12.49  resources, and agriculture finance 
 12.50  committee and the chair of the senate 
 12.51  environment and agriculture budget 
 12.52  division by January 15, 1999, regarding 
 12.53  the results of the research and with a 
 12.54  recommendation for further action. 
 12.55  $25,000 in fiscal year 1998 is for a 
 12.56  grant to the University of Minnesota to 
 12.57  study factors associated with farms 
 12.58  that experience varying levels of 
 12.59  livestock depredation caused by timber 
 12.60  wolves.  The university shall make 
 12.61  recommendations to the commissioner to 
 12.62  assist in the development of best 
 12.63  management practices to prevent timber 
 12.64  wolf depredation on livestock farms.  
 12.65  This appropriation is available until 
 12.66  June 30, 1999. 
 13.1   $60,000 in fiscal year 1999 is for 
 13.2   payment of attorney general and other 
 13.3   costs of assisting local government 
 13.4   units in the process of adoption, 
 13.5   review, or modification of ordinances 
 13.6   relating to animal feedlots.  This 
 13.7   appropriation is available until June 
 13.8   30, 1999. 
 13.9   $107,000 in fiscal year 1999 is for 
 13.10  development of the program under 
 13.11  Minnesota Statutes, section 18C.430.  
 13.12  This is a one-time appropriation. 
 13.13  As a condition of receiving state 
 13.14  funds, the ethanol production plant in 
 13.15  St. Paul must provide year-round public 
 13.16  access to the well that was publicly 
 13.17  accessible when the plant was a brewery.
 13.18  Sec. 7.  UNIVERSITY
 13.19  OF MINNESOTA                            -0-             292,000 
 13.20  For alternative and sustainable hog 
 13.21  production facilities and programs.  
 13.22  $125,000 of this appropriation is for a 
 13.23  grant to the Minnesota Institute for 
 13.24  Sustainable Agriculture to extend 
 13.25  funding for the Alternative Swine 
 13.26  Production Systems Task Force and 
 13.27  coordinator.  $30,000 of this 
 13.28  appropriation is for a grant to the 
 13.29  Minnesota Institute for Sustainable 
 13.30  Agriculture for alternative and 
 13.31  sustainable hog production programs and 
 13.32  program support, including on-farm 
 13.33  systems research.  $137,000 of this 
 13.34  appropriation is to establish a faculty 
 13.35  position in agricultural and community 
 13.36  sociology at the University of 
 13.37  Minnesota-Morris, focusing on the 
 13.38  sustainability of agricultural systems 
 13.39  and rural communities.  The position 
 13.40  shall be defined by the Alternative 
 13.41  Swine Production Systems Task Force.  
 13.42  This is a one-time appropriation. 
 13.43  Sec. 8.  BOARD OF ANIMAL HEALTH           30,000        160,000
 13.44  $30,000 in fiscal year 1998 and 
 13.45  $160,000 in fiscal year 1999 is for 
 13.46  expansion of the program for the 
 13.47  control of paratuberculosis ("Johne's 
 13.48  disease") in domestic bovine herds.  
 13.49  These appropriations are in addition to 
 13.50  the appropriations for the same 
 13.51  purposes in Laws 1997, chapter 216, 
 13.52  section 8. 
 13.53  Sec. 9.  ADMINISTRATION                    -0-           350,000
 13.54                          Summary by Fund
 13.55  General Fund              -0-            300,000
 13.56  Natural Resources Fund    -0-             50,000
 13.57  $50,000 is from the water recreation 
 13.58  account in the natural resources fund 
 13.59  for a study by a qualified consultant 
 13.60  to determine the actual percentage of 
 14.1   all gasoline received in and produced 
 14.2   or brought into the state, except 
 14.3   gasoline used for aviation purposes, 
 14.4   that is being used as fuel for 
 14.5   watercraft in this state.  The study 
 14.6   must include a determination of the 
 14.7   amount of gasoline consumed by vehicles 
 14.8   in the course of transporting 
 14.9   watercraft on the highways of this 
 14.10  state.  The commissioner shall consult 
 14.11  with the commissioners of revenue, 
 14.12  transportation, and natural resources 
 14.13  in preparing the request for proposals 
 14.14  for the study and in selecting the 
 14.15  consultant to perform the study.  The 
 14.16  commissioner shall report to the chairs 
 14.17  of the senate and house environment and 
 14.18  natural resources committees, the 
 14.19  senate environment and agriculture 
 14.20  budget division, the house environment, 
 14.21  natural resources, and agriculture 
 14.22  finance committee, the senate 
 14.23  transportation committee, and the house 
 14.24  transportation and transit committee on 
 14.25  the results of the study by February 1, 
 14.26  1999.  This is a one-time appropriation.
 14.27  $300,000 is for modifications of 
 14.28  department of natural resources 
 14.29  business systems to address year 2000 
 14.30  changes.  This appropriation is added 
 14.31  to the appropriation for technology 
 14.32  management in Laws 1997, chapter 202, 
 14.33  article 1, section 12, subdivision 7.  
 14.34  This is a one-time appropriation. 
 14.35  Sec. 10.  ETHANOL DEVELOPMENT  
 14.36  FUND TRANSFER                                                   
 14.37  As cash flow in the ethanol development 
 14.38  fund under Minnesota Statutes, section 
 14.39  41B.044, permits, but no later than 
 14.40  June 30, 1999, the commissioner of 
 14.41  finance, in consultation with the 
 14.42  commissioner of agriculture, shall 
 14.43  transfer $400,000 from the unencumbered 
 14.44  balance in the fund to the general 
 14.45  fund.  This transfer is in addition to 
 14.46  the transfer required by Laws 1997, 
 14.47  chapter 216, section 17. 
 14.48     Sec. 11.  Minnesota Statutes 1996, section 3.737, 
 14.49  subdivision 1, is amended to read: 
 14.50     Subdivision 1.  [COMPENSATION REQUIRED.] (a) 
 14.51  Notwithstanding section 3.736, subdivision 3, paragraph (e), or 
 14.52  any other law, a livestock owner shall be compensated by the 
 14.53  commissioner of agriculture for livestock that is destroyed by a 
 14.54  timber wolf or is so crippled so by a timber wolf that it must 
 14.55  be destroyed by an animal classified as endangered under the 
 14.56  federal Endangered Species Act of 1973.  The owner is entitled 
 14.57  to the fair market value of the destroyed livestock, not to 
 15.1   exceed $400 $750 per animal destroyed, as determined by the 
 15.2   commissioner, upon recommendation of the county a university 
 15.3   extension agent for the owner's county and a conservation 
 15.4   officer.  
 15.5      (b) Either the agent or the conservation officer must make 
 15.6   a personal inspection of the site.  The agent or the 
 15.7   conservation officer must take into account factors in addition 
 15.8   to a visual identification of a carcass when making a 
 15.9   recommendation to the commissioner.  The commissioner, upon 
 15.10  recommendation of the agent and conservation officer, shall 
 15.11  determine whether the livestock was destroyed by an animal 
 15.12  described in this subdivision a timber wolf and any deficiencies 
 15.13  in the owner's adoption of the best management practices 
 15.14  developed in subdivision 5.  The commissioner may authorize 
 15.15  payment of claims only if the agent and the conservation officer 
 15.16  have recommended payment.  The owner shall file a claim on forms 
 15.17  provided by the commissioner and available at the county 
 15.18  university extension agent's office. 
 15.19     Sec. 12.  Minnesota Statutes 1996, section 3.737, 
 15.20  subdivision 4, is amended to read: 
 15.21     Subd. 4.  [PAYMENT, DENIAL OF COMPENSATION.] (a) If the 
 15.22  commissioner finds that the livestock owner has shown that the 
 15.23  loss of the livestock was likely caused more probably than not 
 15.24  by an animal classified as an endangered species a timber wolf, 
 15.25  the commissioner shall pay compensation as provided in this 
 15.26  section and in the rules of the department.  
 15.27     (b) For a timber wolf depredation claim submitted by a 
 15.28  livestock owner after September 1, 1999, the commissioner shall, 
 15.29  based on the report from the university extension agent and 
 15.30  conservation officer, evaluate the claim for conformance with 
 15.31  the best management practices developed by the commissioner in 
 15.32  subdivision 5.  The commissioner must provide to the livestock 
 15.33  owner an itemized list of any deficiencies in the livestock 
 15.34  owner's adoption of best management practices that were noted in 
 15.35  the university extension agent's or conservation officer's 
 15.36  report. 
 16.1      (c) If the commissioner denies compensation claimed by an 
 16.2   owner under this section, the commissioner shall issue a written 
 16.3   decision based upon the available evidence.  It shall include 
 16.4   specification of the facts upon which the decision is based and 
 16.5   the conclusions on the material issues of the claim.  A copy of 
 16.6   the decision shall be mailed to the owner.  
 16.7      (d) A decision to deny compensation claimed under this 
 16.8   section is not subject to the contested case review procedures 
 16.9   of chapter 14, but may be reviewed upon a trial de novo in a 
 16.10  court in the county where the loss occurred.  The decision of 
 16.11  the court may be appealed as in other civil cases.  Review in 
 16.12  court may be obtained by filing a petition for review with the 
 16.13  administrator of the court within 60 days following receipt of a 
 16.14  decision under this section.  Upon the filing of a petition, the 
 16.15  administrator shall mail a copy to the commissioner and set a 
 16.16  time for hearing within 90 days of the filing.  
 16.17     Sec. 13.  Minnesota Statutes 1996, section 3.737, is 
 16.18  amended by adding a subdivision to read: 
 16.19     Subd. 5.  [TIMBER WOLF BEST MANAGEMENT PRACTICES.] By 
 16.20  September 1, 1999, the commissioner must develop best management 
 16.21  practices to prevent timber wolf depredation on livestock 
 16.22  farms.  The commissioner shall periodically update the best 
 16.23  management practices when new practices are found by the 
 16.24  commissioner to prevent timber wolf depredation on livestock 
 16.25  farms.  The commissioner must provide an updated copy of the 
 16.26  best management practices for timber wolf depredation to all 
 16.27  livestock owners who are still engaged in livestock farming and 
 16.28  have previously submitted livestock claims under this section. 
 16.29     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
 16.30  17.101, subdivision 5, is amended to read: 
 16.31     Subd. 5.  [VALUE-ADDED AGRICULTURAL LIVESTOCK PRODUCT 
 16.32  PROCESSING AND MARKETING GRANT PROGRAM.] (a) For purposes of 
 16.33  this section,: 
 16.34     (1) "livestock or dairy agricultural commodity" means a 
 16.35  material produced for use in or as food, feed, seed, or fiber 
 16.36  and includes crops for fiber, food, oilseeds, seeds, livestock, 
 17.1   livestock products, dairy, dairy products, poultry, poultry 
 17.2   products, and other products or by-products of the farm produced 
 17.3   for the same or similar use, except ethanol; and 
 17.4      (2) "agricultural product processing facility" means land, 
 17.5   buildings, structures, fixtures, and improvements located or to 
 17.6   be located in Minnesota and used or operated primarily for the 
 17.7   processing or production of marketable products from 
 17.8   agricultural livestock or dairy commodities produced in 
 17.9   Minnesota.  
 17.10     (b) The commissioner shall establish and implement a 
 17.11  value-added agricultural livestock and dairy product processing 
 17.12  and marketing grant program to help farmers finance new 
 17.13  cooperatives that organize for the purposes of 
 17.14  operating livestock and dairy agricultural product processing 
 17.15  facilities and for marketing activities related to the sale and 
 17.16  distribution of processed livestock and dairy agricultural 
 17.17  products.  
 17.18     (c) To be eligible for this program a grantee must:  
 17.19     (1) be a cooperative organized under chapter 308A; 
 17.20     (2) certify that all of the control and equity in the 
 17.21  cooperative is from farmers as defined in section 500.24, 
 17.22  subdivision 2, who are actively engaged in livestock or dairy 
 17.23  agricultural commodity production; 
 17.24     (3) be operated primarily for the processing of livestock 
 17.25  or dairy agricultural commodities produced in Minnesota; 
 17.26     (4) receive livestock or dairy agricultural commodities 
 17.27  produced primarily by shareholders or members of the 
 17.28  cooperative; and 
 17.29     (5) have no direct or indirect involvement in the 
 17.30  production of livestock and dairy agricultural commodities.  
 17.31     (d) The commissioner may receive applications from and make 
 17.32  grants up to $50,000 for feasibility, marketing analysis, and 
 17.33  predesign of facilities to eligible cooperatives.  The 
 17.34  commissioner shall give priority to applicants who use the 
 17.35  grants for planning costs related to an application for 
 17.36  financial assistance from the United States Department of 
 18.1   Agriculture, Rural Business - Cooperative Service. 
 18.2      Sec. 15.  [17.987] [MARKET CHAMP, INC; ACCESS TO QUALITY 
 18.3   GENETICS BY FAMILY FARMERS.] 
 18.4      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] Market Champ, 
 18.5   Inc. is established as a nonprofit public corporation under 
 18.6   chapter 317A and is subject to the provisions of that chapter. 
 18.7   The corporation is neither a state agency nor an entity within 
 18.8   the University of Minnesota.  The purpose of the corporation is 
 18.9   to transfer high quality swine genetic material from the 
 18.10  University of Minnesota to the family farmers of the state in 
 18.11  order to enhance the state's economic growth and the 
 18.12  competitiveness of family farmers.  Market Champ, Inc. shall 
 18.13  assist Minnesota swine producers in understanding genetic 
 18.14  technologies and developing improved animal genetic lines. 
 18.15     Subd. 2.  [DUTIES.] Market Champ, Inc. shall: 
 18.16     (1) encourage family farmers to use the highest quality 
 18.17  swine genetics; 
 18.18     (2) facilitate the transfer of the latest swine genetic 
 18.19  research and technology information and materials from the 
 18.20  University of Minnesota and other sources to family farmers; 
 18.21     (3) assist family farmers to market the swine they produce; 
 18.22     (4) develop a system for tracking family farmers' products 
 18.23  through the processing, meat packing, and marketing system to 
 18.24  determine the market value of the genetic technology; 
 18.25     (5) provide genetic testing, counseling, and assistance in 
 18.26  genetic decisions to identify new market developments and 
 18.27  capture value-added opportunities; 
 18.28     (6) provide centralized testing services with regional 
 18.29  technology transfer specialists; 
 18.30     (7) secure access to new genetic tests and services for all 
 18.31  Minnesota producers through licensing agreements; and 
 18.32     (8) assist family farmers who do not otherwise have access 
 18.33  to high quality genetic technologies. 
 18.34     Subd. 3.  [BOARD OF DIRECTORS.] (a) Market Champ, Inc. 
 18.35  shall be governed by a board of directors consisting of 11 
 18.36  voting members, appointed by the governor. 
 19.1      (b) The members of the board shall be: 
 19.2      (1) two representatives of small family farmers with under 
 19.3   250 sows; 
 19.4      (2) one representative of purebred swine producers; 
 19.5      (3) one member of the Minnesota Pork Producers Association; 
 19.6      (4) one representative of the pork industry; 
 19.7      (5) one member of the meat packing industry; 
 19.8      (6) one member representing the University of Minnesota; 
 19.9      (7) one member representing Minnesota state colleges and 
 19.10  universities; 
 19.11     (8) the commissioner of agriculture; 
 19.12     (9) the chair of the senate committee on agriculture and 
 19.13  rural development, or the chair's designee; and 
 19.14     (10) the chair of the house committee on agriculture, or 
 19.15  the chair's designee. 
 19.16  Members listed in clauses (1) to (5) must be recommended by the 
 19.17  president of the University of Minnesota or a designee of the 
 19.18  president, in consultation with the chairs of the senate and 
 19.19  house of representatives committees with jurisdiction over 
 19.20  agricultural policy and finance issues. 
 19.21     (c) Meetings of the board are subject to section 471.705. 
 19.22     (d) Members of the board shall be compensated and 
 19.23  reimbursed in the same manner as members of advisory councils 
 19.24  under section 15.059, subdivision 3. 
 19.25     Subd. 4.  [BYLAWS.] Bylaws of Market Champ, Inc. must 
 19.26  provide for the qualification and removal of directors and for 
 19.27  filling vacancies on the board in a manner not inconsistent with 
 19.28  this section. 
 19.29     Subd. 5.  [ARTICLES OF INCORPORATION.] The articles of 
 19.30  incorporation of Market Champ, Inc. must be filed with the 
 19.31  secretary of state under chapter 317A and must be consistent 
 19.32  with this section. 
 19.33     Subd. 6.  [AUDIT.] Market Champ, Inc. shall contract with 
 19.34  the legislative auditor to perform audits and must report the 
 19.35  results to the legislature. 
 19.36     Subd. 7.  [REPORT.] The board of directors of Market Champ, 
 20.1   Inc. shall submit an annual report on the activities of Market 
 20.2   Champ, Inc. by January 15 of each year to the appropriations, 
 20.3   finance, and agriculture committees of the legislature and to 
 20.4   the governor.  The report must include a description of the 
 20.5   corporation's activities for the past year, a list of all 
 20.6   contracts entered into by the corporation, and a financial 
 20.7   report of revenues and expenditures of the corporation. 
 20.8      Subd. 8.  [EXPIRATION.] The board of directors of Market 
 20.9   Champ, Inc. expires on June 30, 2003. 
 20.10     Sec. 16.  Minnesota Statutes 1996, section 18C.141, is 
 20.11  amended to read: 
 20.12     18C.141 [SOIL AND MANURE TESTING LABORATORY CERTIFICATION.] 
 20.13     Subdivision 1.  [PROGRAM ESTABLISHMENT.] The commissioner 
 20.14  shall establish a program to certify the accuracy of analyses 
 20.15  from soil and manure testing laboratories and promote 
 20.16  standardization of soil and manure testing procedures and 
 20.17  analytical results.  
 20.18     Subd. 2.  [CHECK SAMPLE SYSTEM.] (a) The commissioner shall 
 20.19  institute a system of check samples that requires a laboratory 
 20.20  to be certified to analyze at least four two multiple soil or 
 20.21  manure check samples during the calendar year.  The samples must 
 20.22  be supplied by the commissioner or by a person under contract 
 20.23  with the commissioner to prepare and distribute the samples.  
 20.24     (b) Within 30 days after the laboratory receives check 
 20.25  samples, the laboratory shall report to the commissioner the 
 20.26  results of the analyses for all requested elements or compounds 
 20.27  or for the elements or compounds the laboratory makes an 
 20.28  analytical determination of as a service to others.  
 20.29     (c) The commissioner shall compile analytical data 
 20.30  submitted by laboratories and provide laboratories submitting 
 20.31  samples with a copy of the data without laboratory names or code 
 20.32  numbers. 
 20.33     (d) The commissioner may conduct check samples on 
 20.34  laboratories that are not certified. 
 20.35     Subd. 3.  [ANALYSES REPORTING STANDARDS.] (a) The results 
 20.36  obtained from soil, manure, or plant analysis must be reported 
 21.1   in accordance with standard reporting units established by the 
 21.2   commissioner by rule.  The standard reporting units must conform 
 21.3   as far as practical to uniform standards that are adopted on a 
 21.4   regional or national basis. 
 21.5      (b) If a certified laboratory offers a recommendation, the 
 21.6   University of Minnesota recommendation or that of another land 
 21.7   grant college in a contiguous state must be offered in addition 
 21.8   to other recommendations, and the source of the recommendation 
 21.9   must be identified on the recommendation form.  If relative 
 21.10  levels such as low, medium, or high are presented to classify 
 21.11  the analytical results, the corresponding relative levels based 
 21.12  on the analysis as designated by the University of Minnesota or 
 21.13  the land grant college in a contiguous state must also be 
 21.14  presented. 
 21.15     Subd. 4.  [REVOCATION OF CERTIFICATION.] If the 
 21.16  commissioner determines that analysis being performed by a 
 21.17  laboratory is inaccurate as evidenced by check sample results, 
 21.18  the commissioner may deny, suspend, or revoke certification. 
 21.19     Subd. 5.  [CERTIFICATION FEES.] (a) A laboratory applying 
 21.20  for certification shall pay an application fee of $100 and a 
 21.21  certification fee of $100 before the certification is issued.  
 21.22     (b) Certification is valid for one year and the renewal fee 
 21.23  is $100.  The commissioner shall charge an additional 
 21.24  application fee of $100 if a certified laboratory allows 
 21.25  certification to lapse before applying for renewed certification.
 21.26     (c) The commissioner shall notify a certified lab that its 
 21.27  certification lapses within 30 to 60 days of the date when the 
 21.28  certification lapses. 
 21.29     Subd. 6.  [RULES.] The commissioner shall adopt rules for 
 21.30  the establishment of minimum standards for laboratories, 
 21.31  equipment, procedures, and personnel used in soil and manure 
 21.32  analysis and rules necessary to administer and enforce this 
 21.33  section.  The commissioner shall consult with representatives of 
 21.34  the fertilizer industry, representatives of the laboratories 
 21.35  doing business in this state, and with the University of 
 21.36  Minnesota college of agriculture before proposing rules. 
 22.1      Sec. 17.  [18C.430] [COMMERCIAL ANIMAL WASTE TECHNICIAN.] 
 22.2      Subdivision 1.  [REQUIREMENT.] (a) Except as provided in 
 22.3   paragraph (c), after March 1, 2000, a person may not manage or 
 22.4   apply animal wastes for hire without a valid commercial animal 
 22.5   waste technician license.  This section does not apply to a 
 22.6   person managing or applying animal waste on land managed by the 
 22.7   person's employer.  
 22.8      (b) A person managing or applying animal wastes for hire 
 22.9   must have a valid license identification card when managing or 
 22.10  applying animal wastes for hire and must display it upon demand 
 22.11  by an authorized representative of the commissioner or a law 
 22.12  enforcement officer.  The commissioner shall prescribe the 
 22.13  information required on the license identification card.  
 22.14     (c) A person who is not a licensed commercial animal waste 
 22.15  technician who has had at least two hours of training or 
 22.16  experience in animal waste management may manage or apply animal 
 22.17  waste for hire under the supervision of a commercial animal 
 22.18  waste technician. 
 22.19     Subd. 2.  [RESPONSIBILITY.] A person required to be 
 22.20  licensed under this section who performs animal waste management 
 22.21  or application for hire or who employs a person to perform 
 22.22  animal waste management or application for compensation is 
 22.23  responsible for proper management or application of the animal 
 22.24  wastes. 
 22.25     Subd. 3.  [LICENSE.] A commercial animal waste technician 
 22.26  license: 
 22.27     (1) is valid for three years and expires on December 31 of 
 22.28  the third year for which it is issued, unless suspended or 
 22.29  revoked before that date; 
 22.30     (2) is not transferable to another person; and 
 22.31     (3) must be prominently displayed to the public in the 
 22.32  commercial animal waste technician's place of business. 
 22.33     Subd. 4.  [APPLICATION.] (a) A person must apply to the 
 22.34  commissioner for a commercial animal waste technician license on 
 22.35  forms and in the manner required by the commissioner and must 
 22.36  include the application fee.  The commissioner shall prescribe 
 23.1   and administer an examination or equivalent measure to determine 
 23.2   if the applicant is eligible for the commercial animal waste 
 23.3   technician license. 
 23.4      (b) The commissioner of agriculture, in cooperation with 
 23.5   the Minnesota extension service and appropriate educational 
 23.6   institutions, shall establish and implement a program for 
 23.7   training and licensing commercial animal waste technicians.  
 23.8      Subd. 5.  [RENEWAL APPLICATION.] A person must apply to the 
 23.9   commissioner of agriculture to renew a commercial animal waste 
 23.10  technician license and must include the application fee.  The 
 23.11  commissioner may renew a commercial animal waste technician 
 23.12  license, subject to reexamination, attendance at workshops 
 23.13  approved by the commissioner, or other requirements imposed by 
 23.14  the commissioner to provide the animal waste technician with 
 23.15  information regarding changing technology and to help ensure a 
 23.16  continuing level of competence and ability to manage and apply 
 23.17  animal wastes properly.  The applicant may renew a commercial 
 23.18  animal waste technician license within 12 months after 
 23.19  expiration of the license without having to meet initial testing 
 23.20  requirements.  The commissioner may require additional 
 23.21  demonstration of animal waste technician qualification if a 
 23.22  person has had a license suspended or revoked or has had a 
 23.23  history of violations of this section. 
 23.24     Subd. 6.  [FINANCIAL RESPONSIBILITY.] (a) A commercial 
 23.25  animal waste technician license may not be issued unless the 
 23.26  applicant furnishes proof of financial responsibility.  The 
 23.27  financial responsibility may be demonstrated by (1) proof of net 
 23.28  assets equal to or greater than $50,000, or (2) a performance 
 23.29  bond or insurance of the kind and in an amount determined by the 
 23.30  commissioner of agriculture. 
 23.31     (b) The bond or insurance must cover a period of time at 
 23.32  least equal to the term of the applicant's license.  The 
 23.33  commissioner shall immediately suspend the license of a person 
 23.34  who fails to maintain the required bond or insurance.  
 23.35     (c) An employee of a licensed person is not required to 
 23.36  maintain an insurance policy or bond during the time the 
 24.1   employer is maintaining the required insurance or bond. 
 24.2      (d) Applications for reinstatement of a license suspended 
 24.3   under paragraph (b) must be accompanied by proof of satisfaction 
 24.4   of judgments previously rendered.  
 24.5      Subd. 7.  [APPLICATION FEE.] A person initially applying 
 24.6   for or renewing a commercial animal waste technician license 
 24.7   must pay a nonrefundable application fee of $50 and a fee of $10 
 24.8   for each additional identification card requested. 
 24.9      Sec. 18.  Minnesota Statutes 1996, section 35.82, 
 24.10  subdivision 2, is amended to read: 
 24.11     Subd. 2.  [DISPOSITION OF CARCASSES.] (a) Except as 
 24.12  provided in subdivision 1b and paragraph (d), every person 
 24.13  owning or controlling any domestic animal that has died or been 
 24.14  killed otherwise than by being slaughtered for human or animal 
 24.15  consumption, shall as soon as reasonably possible bury the 
 24.16  carcass at least three feet deep at a depth adequate to prevent 
 24.17  scavenging by other animals in the ground or thoroughly burn it 
 24.18  or dispose of it by another method approved by the board as 
 24.19  being effective for the protection of public health and the 
 24.20  control of livestock diseases.  The board, through its executive 
 24.21  secretary, may issue permits to owners of rendering plants 
 24.22  located in Minnesota which are operated and conducted as 
 24.23  required by law, to transport carcasses of domestic animals and 
 24.24  fowl that have died, or have been killed otherwise than by being 
 24.25  slaughtered for human or animal consumption, over the public 
 24.26  highways to their plants for rendering purposes in accordance 
 24.27  with the rules adopted by the board relative to transportation, 
 24.28  rendering, and other provisions the board considers necessary to 
 24.29  prevent the spread of disease.  The board may issue permits to 
 24.30  owners of rendering plants located in an adjacent state with 
 24.31  which a reciprocal agreement is in effect under subdivision 3. 
 24.32     (b) Carcasses collected by rendering plants under permit 
 24.33  may be used for pet food or mink food if the owner or operator 
 24.34  meets the requirements of subdivision 1b. 
 24.35     (c) An authorized employee or agent of the board may enter 
 24.36  private or public property and inspect the carcass of any 
 25.1   domestic animal that has died or has been killed other than by 
 25.2   being slaughtered for human or animal consumption.  Failure to 
 25.3   dispose of the carcass of any domestic animal within the period 
 25.4   specified by this subdivision is a public nuisance.  The board 
 25.5   may petition the district court of the county in which a carcass 
 25.6   is located for a writ requiring the abatement of the public 
 25.7   nuisance.  A civil action commenced under this paragraph does 
 25.8   not preclude a criminal prosecution under this section.  No 
 25.9   person may sell, offer to sell, give away, or convey along a 
 25.10  public road or on land the person does not own, the carcass of a 
 25.11  domestic animal when the animal died or was killed other than by 
 25.12  being slaughtered for human or animal consumption unless it is 
 25.13  done with a special permit pursuant to this section.  The 
 25.14  carcass or parts of a domestic animal that has died or has been 
 25.15  killed other than by being slaughtered for human or animal 
 25.16  consumption may be transported along a public road for a medical 
 25.17  or scientific purpose if the carcass is enclosed in a leakproof 
 25.18  container to prevent spillage or the dripping of liquid waste.  
 25.19  The board may adopt rules relative to the transportation of the 
 25.20  carcass of any domestic animal for a medical or scientific 
 25.21  purpose.  A carcass on a public thoroughfare may be transported 
 25.22  for burial or other disposition in accordance with this section. 
 25.23     No person who owns or controls diseased animals shall 
 25.24  negligently or willfully permit them to escape from that control 
 25.25  or to run at large. 
 25.26     (d) A sheep producer may compost sheep carcasses owned by 
 25.27  the producer on the producer's land without a permit and is 
 25.28  exempt from compost facility specifications contained in rules 
 25.29  of the board. 
 25.30     (e) The board shall develop best management practices for 
 25.31  dead animal disposal and the pollution control agency feedlot 
 25.32  program shall distribute them to livestock producers in the 
 25.33  state. 
 25.34     Sec. 19.  Minnesota Statutes 1996, section 41A.09, 
 25.35  subdivision 1a, is amended to read: 
 25.36     Subd. 1a.  [ETHANOL PRODUCTION GOAL.] It is a goal of the 
 26.1   state that ethanol production plants in the state attain a total 
 26.2   annual production level of 220,000,000 240,000,000 gallons.  
 26.3      Sec. 20.  Minnesota Statutes 1997 Supplement, section 
 26.4   41A.09, subdivision 3a, is amended to read: 
 26.5      Subd. 3a.  [PAYMENTS.] (a) The commissioner of agriculture 
 26.6   shall make cash payments to producers of ethanol, anhydrous 
 26.7   alcohol, and wet alcohol located in the state.  These payments 
 26.8   shall apply only to ethanol, anhydrous alcohol, and wet alcohol 
 26.9   fermented in the state and produced at plants that have begun 
 26.10  production by June 30, 2000.  For the purpose of this 
 26.11  subdivision, an entity that holds a controlling interest in more 
 26.12  than one ethanol plant is considered a single producer.  The 
 26.13  amount of the payment for each producer's annual production is: 
 26.14     (1) except as provided in paragraph (b), for each gallon of 
 26.15  ethanol or anhydrous alcohol produced on or before June 30, 
 26.16  2000, or ten years after the start of production, whichever is 
 26.17  later, 20 cents per gallon; and 
 26.18     (2) for each gallon produced of wet alcohol on or before 
 26.19  June 30, 2000, or ten years after the start of production, 
 26.20  whichever is later, a payment in cents per gallon calculated by 
 26.21  the formula "alcohol purity in percent divided by five," and 
 26.22  rounded to the nearest cent per gallon, but not less than 11 
 26.23  cents per gallon. 
 26.24     The producer payments for anhydrous alcohol and wet alcohol 
 26.25  under this section may be paid to either the original producer 
 26.26  of anhydrous alcohol or wet alcohol or the secondary processor, 
 26.27  at the option of the original producer, but not to both. 
 26.28     (b) If the level of production at an ethanol plant 
 26.29  increases due to an increase in the production capacity of the 
 26.30  plant and the increased production begins by June 30, 2000, the 
 26.31  payment under paragraph (a), clause (1), applies to the 
 26.32  additional increment of production until ten years after the 
 26.33  increased production began.  Once a plant's production capacity 
 26.34  reaches 15,000,000 gallons per year, no additional increment 
 26.35  will qualify for the payment. 
 26.36     (c) The commissioner shall make payments to producers of 
 27.1   ethanol or wet alcohol in the amount of 1.5 cents for each 
 27.2   kilowatt hour of electricity generated using closed-loop biomass 
 27.3   in a cogeneration facility at an ethanol plant located in the 
 27.4   state.  Payments under this paragraph shall be made only for 
 27.5   electricity generated at cogeneration facilities that begin 
 27.6   operation by June 30, 2000.  The payments apply to electricity 
 27.7   generated on or before the date ten years after the producer 
 27.8   first qualifies for payment under this paragraph.  Total 
 27.9   payments under this paragraph in any fiscal year may not exceed 
 27.10  $750,000.  For the purposes of this paragraph: 
 27.11     (1) "closed-loop biomass" means any organic material from a 
 27.12  plant that is planted for the purpose of being used to generate 
 27.13  electricity or for multiple purposes that include being used to 
 27.14  generate electricity; and 
 27.15     (2) "cogeneration" means the combined generation of: 
 27.16     (i) electrical or mechanical power; and 
 27.17     (ii) steam or forms of useful energy, such as heat, that 
 27.18  are used for industrial, commercial, heating, or cooling 
 27.19  purposes. 
 27.20     (d) Except for new production capacity approved under 
 27.21  paragraph (i), clause (1), the total payments under paragraphs 
 27.22  (a) and (b) to all producers may not exceed $34,000,000 in a 
 27.23  fiscal year.  Total payments under paragraphs (a) and (b) to a 
 27.24  producer in a fiscal year may not exceed $3,000,000. 
 27.25     (e) By the last day of October, January, April, and July, 
 27.26  each producer shall file a claim for payment for ethanol, 
 27.27  anhydrous alcohol, and wet alcohol production during the 
 27.28  preceding three calendar months.  A producer with more than one 
 27.29  plant shall file a separate claim for each plant.  A producer 
 27.30  shall file a separate claim for the original production capacity 
 27.31  of each plant and for each additional increment of production 
 27.32  that qualifies under paragraph (b).  A producer that files a 
 27.33  claim under this subdivision shall include a statement of the 
 27.34  producer's total ethanol, anhydrous alcohol, and wet alcohol 
 27.35  production in Minnesota during the quarter covered by the claim, 
 27.36  including anhydrous alcohol and wet alcohol produced or received 
 28.1   from an outside source.  A producer shall file a separate claim 
 28.2   for any amount claimed under paragraph (c).  For each claim and 
 28.3   statement of total ethanol, anhydrous alcohol, and wet alcohol 
 28.4   production filed under this subdivision, the volume of ethanol, 
 28.5   anhydrous alcohol, and wet alcohol production or amounts of 
 28.6   electricity generated using closed-loop biomass must be examined 
 28.7   by an independent certified public accountant in accordance with 
 28.8   standards established by the American Institute of Certified 
 28.9   Public Accountants. 
 28.10     (f) Payments shall be made November 15, February 15, May 
 28.11  15, and August 15.  A separate payment shall be made for each 
 28.12  claim filed.  The total quarterly payment to a producer under 
 28.13  this paragraph, excluding amounts paid under paragraph (c), may 
 28.14  not exceed $750,000.  Except for new production capacity 
 28.15  approved under paragraph (i), clause (1), if the total amount 
 28.16  for which all other producers are eligible in a quarter under 
 28.17  paragraphs (a) and (b) exceeds $8,500,000, the commissioner 
 28.18  shall make payments for production capacity that is subject to 
 28.19  this restriction in the order in which the portion of production 
 28.20  capacity covered by each claim went into production.  If the 
 28.21  total amount of ethanol or wet alcohol production reported for a 
 28.22  quarter under paragraph (e) equals or exceeds 55,000,000 gallons:
 28.23     (1) payments under this subdivision do not apply to the 
 28.24  amount produced in excess of 55,000,000 gallons; 
 28.25     (2) the commissioner shall make payments to producers in 
 28.26  the order in which the portion of production capacity covered by 
 28.27  each claim began production; and 
 28.28     (3) only those producers that receive payments for the 
 28.29  quarter, or received payments under paragraph (a) or (b) in an 
 28.30  earlier quarter, will be eligible for future ethanol or wet 
 28.31  alcohol production payments under this subdivision.  
 28.32     (g) If the total amount for which all producers are 
 28.33  eligible in a quarter under paragraph (c) exceeds the amount 
 28.34  available for payments, the commissioner shall make payments in 
 28.35  the order in which the plants covered by the claims began 
 28.36  generating electricity using closed-loop biomass. 
 29.1      (h) After July 1, 1997, new production capacity is only 
 29.2   eligible for payment under this subdivision if the commissioner 
 29.3   receives: 
 29.4      (1) an application for approval of the new production 
 29.5   capacity; 
 29.6      (2) an appropriate letter of long-term financial commitment 
 29.7   for construction of the new production capacity; and 
 29.8      (3) copies of all necessary permits for construction of the 
 29.9   new production capacity. 
 29.10     The commissioner may approve the additional new production 
 29.11  capacity based on the order in which the applications are 
 29.12  received.  The commissioner shall not approve production 
 29.13  capacity in excess of the limitations in paragraph (f).  
 29.14     (i) After the effective date of this section, the 
 29.15  commissioner may only approve:  (1) up to 12,000,000 gallons of 
 29.16  new production capacity at one plant that has not previously 
 29.17  received approval or payment for any production capacity; or (2) 
 29.18  new production capacity at existing plants are not eligible for 
 29.19  new capacity beyond not to exceed planned expansions reported to 
 29.20  the commissioner by February 1997.  The commissioner may not 
 29.21  approve any new production capacity after July 1, 1998.  
 29.22     (j) For the purposes of this subdivision "new production 
 29.23  capacity" means annual ethanol production capacity that was not 
 29.24  allowed under a permit issued by the pollution control agency 
 29.25  prior to July 1, 1997, or for which construction did not begin 
 29.26  prior to July 1, 1997. 
 29.27     Sec. 21.  Minnesota Statutes 1997 Supplement, section 
 29.28  84.8205, is amended to read: 
 29.29     84.8205 [SNOWMOBILE STATE TRAIL PERMIT STICKER.] 
 29.30     Subdivision 1.  [STICKER REQUIRED; FEE.] A person may not 
 29.31  operate a snowmobile that is not registered in this state may 
 29.32  not be operated on a state or grant-in-aid snowmobile trail 
 29.33  unless a snowmobile state trail sticker is affixed to the 
 29.34  snowmobile operator has in possession a snowmobile state trail 
 29.35  permit.  The commissioner of natural resources shall issue a 
 29.36  permit sticker upon application and payment of a $15 fee.  The 
 30.1   permit sticker is valid from November 1 through April 30.  Fees 
 30.2   collected under this section shall be deposited in the state 
 30.3   treasury and credited to the snowmobile trails and enforcement 
 30.4   account in the natural resources fund. 
 30.5      Subd. 2.  [PLACEMENT OF STICKER.] The state trail sticker 
 30.6   shall be permanently affixed to the forward half of the 
 30.7   snowmobile directly above or below the headlight of the 
 30.8   snowmobile. 
 30.9      Subd. 3.  [LICENSE AGENTS.] County auditors are appointed 
 30.10  agents of the commissioner for the sale of snowmobile state 
 30.11  trail stickers.  The commissioner may appoint other state 
 30.12  agencies as agents for the sale of the stickers.  A county 
 30.13  auditor may appoint subagents within the county or within 
 30.14  adjacent counties to sell stickers.  Upon appointment of a 
 30.15  subagent, the auditor shall notify the commissioner of the name 
 30.16  and address of the subagent.  The auditor may revoke the 
 30.17  appointment of a subagent, and the commissioner may revoke the 
 30.18  appointment of a state agency at any time.  The commissioner may 
 30.19  require an auditor to revoke a subagent's appointment.  The 
 30.20  auditor shall furnish stickers on consignment to any subagent 
 30.21  who furnishes a surety bond in favor of the county in an amount 
 30.22  at least equal to the value of the stickers to be consigned to 
 30.23  that subagent.  A surety bond is not required for a state agency 
 30.24  appointed by the commissioner.  The county auditor shall be 
 30.25  responsible for all stickers issued to and user fees received by 
 30.26  agents except in a county where the county auditor does not 
 30.27  retain fees paid for license purposes.  In these counties, the 
 30.28  responsibilities imposed by this section upon the county auditor 
 30.29  are imposed upon the county.  The commissioner may promulgate 
 30.30  additional rules governing the accounting and procedures for 
 30.31  handling state trail stickers as provided in section 97A.485, 
 30.32  subdivision 11. 
 30.33     Any resident desiring to sell snowmobile state trail 
 30.34  stickers may either purchase for cash or obtain on consignment 
 30.35  stickers from a county auditor in groups of not less than ten 
 30.36  individual stickers.  In selling stickers, the resident shall be 
 31.1   deemed a subagent of the county auditor and the commissioner, 
 31.2   and shall observe all rules promulgated by the commissioner for 
 31.3   accounting and handling of licenses and stickers pursuant to 
 31.4   section 97A.485, subdivision 11. 
 31.5      The county auditor shall promptly deposit all money 
 31.6   received from the sale of the stickers with the county treasurer 
 31.7   and shall promptly transmit any reports required by the 
 31.8   commissioner, plus 96 percent of the price paid by each 
 31.9   stickerholder, exclusive of the issuing fee, for each sticker 
 31.10  sold or consigned by the auditor and subsequently sold to a 
 31.11  stickerholder during the accounting period.  The county auditor 
 31.12  shall retain as a commission four percent of all sticker fees, 
 31.13  excluding the issuing fee for stickers consigned to subagents 
 31.14  and the issuing fee on stickers sold by the auditor to 
 31.15  stickerholders. 
 31.16     Unsold stickers in the hands of any subagent shall be 
 31.17  redeemed by the commissioner if presented for redemption within 
 31.18  the time prescribed by the commissioner.  Any stickers not 
 31.19  presented for redemption within the period prescribed shall be 
 31.20  conclusively presumed to have been sold, and the subagent 
 31.21  possessing the same or to whom they are charged shall be 
 31.22  accountable. 
 31.23     Subd. 4.  [DISTRIBUTION OF STICKERS.] The commissioner 
 31.24  shall provide stickers to all agents authorized to issue 
 31.25  stickers by the commissioner. 
 31.26     Subd. 5.  [AGENT'S FEE.] The fee for a sticker shall be 
 31.27  increased by the amount of an issuing fee of $1 per sticker.  
 31.28  The issuing fee may be retained by the seller of the sticker.  
 31.29     Sec. 22.  Minnesota Statutes 1997 Supplement, section 
 31.30  84.86, subdivision 1, is amended to read: 
 31.31     Subdivision 1.  With a view of achieving maximum use of 
 31.32  snowmobiles consistent with protection of the environment the 
 31.33  commissioner of natural resources shall adopt rules in the 
 31.34  manner provided by chapter 14, for the following purposes: 
 31.35     (1) Registration of snowmobiles and display of registration 
 31.36  numbers. 
 32.1      (2) Use of snowmobiles insofar as game and fish resources 
 32.2   are affected. 
 32.3      (3) Use of snowmobiles on public lands and waters, or on 
 32.4   grant-in-aid trails, including, but not limited to, the use of 
 32.5   specified metal traction devices and nonmetal traction devices. 
 32.6      (4) Uniform signs to be used by the state, counties, and 
 32.7   cities, which are necessary or desirable to control, direct, or 
 32.8   regulate the operation and use of snowmobiles. 
 32.9      (5) Specifications relating to snowmobile mufflers. 
 32.10     (6) A comprehensive snowmobile information and safety 
 32.11  education and training program, including but not limited to the 
 32.12  preparation and dissemination of snowmobile information and 
 32.13  safety advice to the public, the training of snowmobile 
 32.14  operators, and the issuance of snowmobile safety certificates to 
 32.15  snowmobile operators who successfully complete the snowmobile 
 32.16  safety education and training course.  For the purpose of 
 32.17  administering such program and to defray a portion of the 
 32.18  expenses of training and certifying snowmobile operators, the 
 32.19  commissioner shall collect a fee of not to exceed $5 from each 
 32.20  person who receives the youth and young adult training and a fee 
 32.21  established under chapter 16A from each person who receives the 
 32.22  adult training.  The commissioner shall deposit the fee in the 
 32.23  snowmobile trails and enforcement account and the amount thereof 
 32.24  is appropriated annually to the commissioner of natural 
 32.25  resources for the administration of such programs.  The 
 32.26  commissioner shall cooperate with private organizations and 
 32.27  associations, private and public corporations, and local 
 32.28  governmental units in furtherance of the program established 
 32.29  under this clause.  The commissioner shall consult with the 
 32.30  commissioner of public safety in regard to training program 
 32.31  subject matter and performance testing that leads to the 
 32.32  certification of snowmobile operators. 
 32.33     (7) The operator of any snowmobile involved in an accident 
 32.34  resulting in injury requiring medical attention or 
 32.35  hospitalization to or death of any person or total damage to an 
 32.36  extent of $500 or more, shall forward a written report of the 
 33.1   accident to the commissioner on such form as the commissioner 
 33.2   shall prescribe.  If the operator is killed or is unable to file 
 33.3   a report due to incapacitation, any peace officer investigating 
 33.4   the accident shall file the accident report within ten business 
 33.5   days. 
 33.6      Sec. 23.  Minnesota Statutes 1996, section 84.871, is 
 33.7   amended to read: 
 33.8      84.871 [MUFFLERS EQUIPMENT REQUIREMENTS.] 
 33.9      Subdivision 1.  [MUFFLERS.] Except as provided in this 
 33.10  section, every snowmobile shall be equipped at all times with a 
 33.11  muffler in good working order which blends the exhaust noise 
 33.12  into the overall snowmobile noise and is in constant operation 
 33.13  to prevent excessive or unusual noise.  The exhaust system shall 
 33.14  not emit or produce a sharp popping or crackling sound.  This 
 33.15  section does not apply to organized races or similar competitive 
 33.16  events held on (1) private lands, with the permission of the 
 33.17  owner, lessee, or custodian of the land; (2) public lands and 
 33.18  water under the jurisdiction of the commissioner of natural 
 33.19  resources, with the commissioner's permission; or (3) other 
 33.20  public lands, with the consent of the public agency owning the 
 33.21  land.  No person shall have for sale, sell, or offer for sale on 
 33.22  any new snowmobile any muffler that fails to comply with the 
 33.23  specifications required by the rules of the commissioner after 
 33.24  the effective date of the rules.  
 33.25     Subd. 2.  [METAL TRACTION DEVICES ON SNOWMOBILE 
 33.26  TRACKS.] Except as provided in this subdivision, a person may 
 33.27  not operate a snowmobile with a track equipped with metal 
 33.28  traction devices on public lands, roads, or trails, or public 
 33.29  road or trail rights-of-way.  Pursuant to section 84.86, the 
 33.30  commissioner may adopt rules that:  (1) limit the use of 
 33.31  nonmetal traction devices; and (2) permit metal traction devices 
 33.32  that meet certain specifications. 
 33.33     Sec. 24.  [84.8715] [METAL TRACTION DEVICE STICKER.] 
 33.34     Subdivision 1.  [STICKER REQUIRED; FEE.] A person may not 
 33.35  operate a snowmobile with a track equipped with metal traction 
 33.36  devices unless a metal traction device sticker is affixed to the 
 34.1   snowmobile.  The commissioner shall issue a metal traction 
 34.2   device sticker upon application and payment of a $50 fee.  The 
 34.3   sticker is valid for one year following June 30 in the year it 
 34.4   is issued.  Fees collected under this section shall be deposited 
 34.5   in the state treasury and credited to the snowmobile trails and 
 34.6   enforcement account in the natural resources fund.  Money 
 34.7   deposited under this section must be used for repair of paved 
 34.8   public trails except that any money not necessary for this 
 34.9   purpose may be used for the grant-in-aid snowmobile trail system.
 34.10     Subd. 2.  [PLACEMENT OF STICKER.] The metal traction device 
 34.11  sticker must be permanently affixed to the forward half of the 
 34.12  snowmobile directly above or below the headlight of the 
 34.13  snowmobile. 
 34.14     Subd. 3.  [LICENSE AGENTS.] The commissioner shall sell 
 34.15  metal traction device stickers through the process established 
 34.16  under section 84.8205. 
 34.17     Subd. 4.  [REPEALER.] This section is repealed on July 1, 
 34.18  1999. 
 34.19     Sec. 25.  Minnesota Statutes 1997 Supplement, section 
 34.20  85.015, subdivision 1c, is amended to read: 
 34.21     Subd. 1c.  [METAL TRACTION DEVICES; PROHIBITION ON PAVED 
 34.22  TRAILS.] A person may not use a snowmobile with metal traction 
 34.23  devices on any paved state public trail, except as otherwise 
 34.24  provided by a local government with jurisdiction over a trail. 
 34.25     Sec. 26.  [85.0156] [MISSISSIPPI WHITEWATER TRAIL.] 
 34.26     Subdivision 1.  [CREATION.] An urban whitewater trail is 
 34.27  created along the Mississippi river in the lower St. Anthony 
 34.28  falls area below the stone arch bridge in Minneapolis.  The 
 34.29  trail must be primarily developed for whitewater rafters, 
 34.30  canoers, and kayakers. 
 34.31     Subd. 2.  [COMMISSIONER'S DUTIES.] (a) The commissioner of 
 34.32  natural resources must coordinate the creation of the whitewater 
 34.33  trail by placing designation signs near and along the river and 
 34.34  must publicize the designation. 
 34.35     (b) In designating the Mississippi whitewater trail, the 
 34.36  commissioner must work with other federal, state, and local 
 35.1   agencies and private businesses and organizations interested in 
 35.2   the trail. 
 35.3      Subd. 3.  [GIFTS; DONATIONS.] The commissioner of natural 
 35.4   resources is authorized to accept, on behalf of a nonprofit 
 35.5   corporation, donations of land or easements in land for the 
 35.6   whitewater trail and may seek and accept money for the trail 
 35.7   from other public and private sources. 
 35.8      Sec. 27.  Minnesota Statutes 1996, section 86B.101, 
 35.9   subdivision 2, is amended to read: 
 35.10     Subd. 2.  [YOUTH WATERCRAFT SAFETY COURSE.] (a) The 
 35.11  commissioner shall establish an educational course and a testing 
 35.12  program for personal watercraft and watercraft operators and for 
 35.13  persons age 12 or older but younger than age 18 required to take 
 35.14  the watercraft safety course.  The commissioner shall prescribe 
 35.15  a written test as part of the course.  A personal watercraft 
 35.16  educational course and testing program that emphasizes safe and 
 35.17  legal operation must be required for persons age 13 or older but 
 35.18  younger than age 18 operating personal watercraft. 
 35.19     (b) The commissioner shall issue a watercraft operator's 
 35.20  permit to a person age 12 or older but younger than age 18 who 
 35.21  successfully completes the educational program and the written 
 35.22  test. 
 35.23     Sec. 28.  Minnesota Statutes 1996, section 86B.415, 
 35.24  subdivision 1, is amended to read: 
 35.25     Subdivision 1.  [WATERCRAFT 19 FEET OR LESS.] The fee for a 
 35.26  watercraft license for watercraft 19 feet or less in length is 
 35.27  $12 except: 
 35.28     (1) for watercraft, other than personal watercraft, 19 feet 
 35.29  in length or less that is offered for rent or lease, the fee is 
 35.30  $6; 
 35.31     (2) for a canoe, kayak, sailboat, sailboard, paddle boat, 
 35.32  or rowing shell 19 feet in length or less, the fee is $7; 
 35.33     (3) for a watercraft 19 feet in length or less used by a 
 35.34  nonprofit corporation for teaching boat and water safety, the 
 35.35  fee is as provided in subdivision 4; and 
 35.36     (4) for a watercraft owned by a dealer under a dealer's 
 36.1   license, the fee is as provided in subdivision 5. 
 36.2      Sec. 29.  Minnesota Statutes 1996, section 86B.415, is 
 36.3   amended by adding a subdivision to read: 
 36.4      Subd. 7a.  [PERSONAL WATERCRAFT SURCHARGE.] A $50 surcharge 
 36.5   is placed on each personal watercraft licensed under 
 36.6   subdivisions 1 to 5 for enforcement of personal watercraft laws 
 36.7   and for personal watercraft safety education.  The surcharge 
 36.8   must be deposited in the state treasury and credited to the 
 36.9   water recreation account in the natural resources fund.  Any 
 36.10  grants to counties from revenue collected under this subdivision 
 36.11  must be proportional to the use of personal watercraft in each 
 36.12  county.  Grants made under this subdivision are subject to the 
 36.13  applicable administrative, reporting, and auditing requirements 
 36.14  in sections 86B.701 and 86B.705. 
 36.15     Sec. 30.  Minnesota Statutes 1996, section 89A.03, 
 36.16  subdivision 1, is amended to read: 
 36.17     Subdivision 1.  [MEMBERSHIP.] The Minnesota forest 
 36.18  resources council has 13 members appointed by the governor and 
 36.19  one member appointed by the Indian affairs council.  The council 
 36.20  membership appointed by the governor must include one 
 36.21  representative from each of the following individuals: 
 36.22     (1) a representative from an organization representing 
 36.23  environmental interests within the state; 
 36.24     (2) a representative from an organization representing the 
 36.25  interests of management of game species; 
 36.26     (3) a representative from a conservation organization; 
 36.27     (4) a representative from an association representing 
 36.28  forest products industry within the state; 
 36.29     (5) a commercial logging contractor active in a forest 
 36.30  product association; 
 36.31     (6) a representative from a statewide association 
 36.32  representing the resort and tourism industry; 
 36.33     (7) a faculty or researcher of a Minnesota research or 
 36.34  higher educational institution; 
 36.35     (8) an owner of nonindustrial, private forest land of 40 
 36.36  acres or more; 
 37.1      (9) an agricultural woodlot owner; 
 37.2      (10) a representative from the department; 
 37.3      (11) a county land commissioner who is a member of the 
 37.4   Minnesota association of county land commissioners; 
 37.5      (12) a representative from the United States Forest Service 
 37.6   unit with land management responsibility in Minnesota; and 
 37.7      (13) a representative from a labor organization with 
 37.8   membership having an interest in forest resource issues. 
 37.9      Sec. 31.  Minnesota Statutes 1996, section 90.193, is 
 37.10  amended to read: 
 37.11     90.193 [EXTENSION OF TIMBER PERMITS.] 
 37.12     The commissioner may, in the case of an exceptional 
 37.13  circumstance beyond the control of the timber permit holder 
 37.14  which makes it unreasonable, impractical, and not feasible to 
 37.15  complete cutting and removal under the permit within the time 
 37.16  allowed, grant an extension of one year.  A request for the 
 37.17  extension must be received by the commissioner before the permit 
 37.18  expires.  The request must state the reason the extension is 
 37.19  necessary and be signed by the permit holder.  The value of the 
 37.20  timber remaining to be cut will be recalculated using current 
 37.21  stumpage rates.  Any timber cut during the period of extension 
 37.22  or remaining uncut at the expiration of the extension shall be 
 37.23  billed for at the stumpage rates determined at the time of 
 37.24  extension provided that in no event shall stumpage rates be less 
 37.25  than those in effect at the time of the original sale.  An 
 37.26  interest rate of eight percent will may be charged for the 
 37.27  period of extension.  
 37.28     Sec. 32.  Minnesota Statutes 1996, section 93.002, 
 37.29  subdivision 1, is amended to read: 
 37.30     Subdivision 1.  [ESTABLISHMENT.] The mineral coordinating 
 37.31  committee is established to plan for diversified mineral 
 37.32  development.  The mineral coordinating committee consists of the 
 37.33  director of the minerals division of the department of natural 
 37.34  resources, the deputy commissioner of the Minnesota pollution 
 37.35  control agency, the director of United Steelworkers of America, 
 37.36  district 11, or the director's designee, the commissioner of the 
 38.1   iron range resources and rehabilitation board, the director of 
 38.2   the Minnesota geological survey, the dean of the University of 
 38.3   Minnesota institute of technology, and the director of the 
 38.4   natural resources research institute, and three individuals 
 38.5   appointed by the governor for a four-year term, one each 
 38.6   representing the iron ore and taconite, the nonferrous metallic 
 38.7   minerals, and the industrial minerals industries within the 
 38.8   state.  The director of the minerals division of the department 
 38.9   of natural resources shall serve as chair.  A member of the 
 38.10  committee may designate another person of the member's 
 38.11  organization to act in the member's place.  The commissioner of 
 38.12  natural resources shall provide staff and administrative 
 38.13  services necessary for the committee's activities. 
 38.14     The mineral coordinating committee is encouraged to solicit 
 38.15  and receive advice from representatives of the United States 
 38.16  Bureau of Mines, the United States Geological Survey, and the 
 38.17  United States Environmental Protection Agency. 
 38.18     Sec. 33.  Minnesota Statutes 1996, section 97A.037, 
 38.19  subdivision 1, is amended to read: 
 38.20     Subdivision 1.  [INTERFERENCE WITH TAKING WILD ANIMALS 
 38.21  PROHIBITED.] A person who has the intent to prevent, or disrupt, 
 38.22  or dissuade the taking of another person from taking or 
 38.23  preparing to take a wild animal or enjoyment of the out-of-doors 
 38.24  may must not disturb or interfere with another that person who 
 38.25  if that person is lawfully taking a wild animal or preparing to 
 38.26  take a wild animal.  "Preparing to take a wild animal" includes 
 38.27  travel, camping, and other acts that occur on land or water 
 38.28  where the affected person has the right or privilege to take 
 38.29  lawfully a wild animal. 
 38.30     Sec. 34.  Minnesota Statutes 1996, section 97A.245, is 
 38.31  amended to read: 
 38.32     97A.245 [REWARDS.] 
 38.33     The commissioner may pay rewards for information leading to 
 38.34  the conviction of a person that has violated a provision of laws 
 38.35  relating to wild animals or threatened or endangered species of 
 38.36  wildlife.  A reward may not exceed $500, except a reward for 
 39.1   information relating to big game or threatened or endangered 
 39.2   species of wildlife, may be up to $1,000 and a reward for 
 39.3   information relating to timber wolves may be up to $2,500.  The 
 39.4   rewards may only be paid from funds donated to the commissioner 
 39.5   for these purposes and may not be paid to salaried conservation 
 39.6   officers or peace officers.  
 39.7      Sec. 35.  Minnesota Statutes 1996, section 103C.315, 
 39.8   subdivision 4, is amended to read: 
 39.9      Subd. 4.  [COMPENSATION.] A supervisor shall receive 
 39.10  compensation for services as the state board may determine, and 
 39.11  may be reimbursed for expenses, including traveling expenses, 
 39.12  necessarily incurred in the discharge of duties.  A supervisor 
 39.13  shall may be reimbursed for the use of the supervisor's own 
 39.14  automobile in the performance of official duties at the a rate 
 39.15  per mile prescribed for state officers and employees up to the 
 39.16  maximum tax-deductible mileage rate permitted under the federal 
 39.17  Internal Revenue Code. 
 39.18     Sec. 36.  Minnesota Statutes 1996, section 103F.155, 
 39.19  subdivision 2, is amended to read: 
 39.20     Subd. 2.  [COMMISSIONER'S REVIEW.] (a) The commissioner 
 39.21  shall review the plan and consult with the state office of civil 
 39.22  defense and other appropriate state and federal agencies.  
 39.23  Following the review, the commissioner shall accept, require 
 39.24  modification, or reject the plan.  
 39.25     (b) If required modifications are not made, or if the plan 
 39.26  is rejected, the commissioner shall order the removal of the 
 39.27  emergency protection measures and shall not provide grant money 
 39.28  under section 103F.161 until the plan is approved or the 
 39.29  required modifications are made. 
 39.30     Sec. 37.  Minnesota Statutes 1996, section 103F.161, 
 39.31  subdivision 2, is amended to read: 
 39.32     Subd. 2.  [ACTION ON GRANT APPLICATIONS.] (a) A local 
 39.33  government may apply to the commissioner for a grant on forms 
 39.34  provided by the commissioner.  The commissioner shall confer 
 39.35  with the local government requesting the grant and may make a 
 39.36  grant up to $75,000 $150,000 based on the following 
 40.1   considerations: 
 40.2      (1) the extent and effectiveness of mitigation measures 
 40.3   already implemented by the local government requesting the 
 40.4   grant; 
 40.5      (2) the feasibility, practicality, and effectiveness of the 
 40.6   proposed mitigation measures and the associated nonflood related 
 40.7   benefits and detriments; 
 40.8      (3) the level of grant assistance that should be provided 
 40.9   to the local government, based on available facts regarding the 
 40.10  nature, extent, and severity of flood problems; 
 40.11     (4) the frequency of occurrence of severe flooding that has 
 40.12  resulted in declaration of the area as a flood disaster area by 
 40.13  the President of the United States; 
 40.14     (5) the economic, social, and environmental benefits and 
 40.15  detriments of the proposed mitigation measures; 
 40.16     (6) whether the floodplain management ordinance or 
 40.17  regulation adopted by the local government meets the minimum 
 40.18  standards established by the commissioner, the degree of 
 40.19  enforcement of the ordinance or regulation, and whether the 
 40.20  local government is complying with the ordinance or regulation; 
 40.21     (7) the degree to which the grant request is consistent 
 40.22  with local water plans developed under chapters 103B and 103D; 
 40.23     (8) the financial capability of the local government to 
 40.24  solve its flood hazard problems without financial assistance; 
 40.25  and 
 40.26     (9) the estimated cost and method of financing of the 
 40.27  proposed mitigation measures based on local money and federal 
 40.28  and state financial assistance. 
 40.29     (b) If the amount of the grant requested 
 40.30  is $75,000 $150,000 or more, the commissioner shall determine, 
 40.31  under the considerations in paragraph (a), whether any part of 
 40.32  the grant should be awarded.  The commissioner must submit an 
 40.33  appropriation request to the governor and the legislature for 
 40.34  funding consideration before each odd-numbered year, consisting 
 40.35  of requests or parts of grant requests of $75,000 $150,000 or 
 40.36  more.  The commissioner must prioritize the grant requests, 
 41.1   under the considerations in paragraph (a), beginning with the 
 41.2   projects the commissioner determines most deserving of financing.
 41.3      (c) A grant may not exceed one-half the total cost of the 
 41.4   proposed mitigation measures. 
 41.5      (d) After July 1, 1991, grants made under this section may 
 41.6   be made to local governments whose grant requests are part of, 
 41.7   or responsive to, a comprehensive local water plan prepared 
 41.8   under chapter 103B or 103D. 
 41.9      Sec. 38.  Minnesota Statutes 1996, section 103G.271, 
 41.10  subdivision 6, is amended to read: 
 41.11     Subd. 6.  [WATER USE PERMIT PROCESSING FEE.] (a) Except as 
 41.12  described in paragraphs (b) to (f), a water use permit 
 41.13  processing fee must be prescribed by the commissioner in 
 41.14  accordance with the following schedule of fees for each water 
 41.15  use permit in force at any time during the year: 
 41.16     (1) 0.05 cents per 1,000 gallons for the first 50,000,000 
 41.17  gallons per year; 
 41.18     (2) 0.10 cents per 1,000 gallons for amounts greater than 
 41.19  50,000,000 gallons but less than 100,000,000 gallons per year; 
 41.20     (3) 0.15 cents per 1,000 gallons for amounts greater than 
 41.21  100,000,000 gallons but less than 150,000,000 gallons per year; 
 41.22  and 
 41.23     (4) 0.20 cents per 1,000 gallons for amounts greater than 
 41.24  150,000,000 gallons but less than 200,000,000 gallons per year; 
 41.25     (5) 0.25 cents per 1,000 gallons for amounts greater than 
 41.26  200,000,000 gallons but less than 250,000,000 gallons per year; 
 41.27     (6) 0.30 cents per 1,000 gallons for amounts greater than 
 41.28  250,000,000 gallons but less than 300,000,000 gallons per year; 
 41.29     (7) 0.35 cents per 1,000 gallons for amounts greater than 
 41.30  300,000,000 gallons but less than 350,000,000 gallons per year; 
 41.31     (8) 0.40 cents per 1,000 gallons for amounts greater than 
 41.32  350,000,000 gallons but less than 400,000,000 gallons per year; 
 41.33  and 
 41.34     (9) 0.45 cents per 1,000 gallons for amounts greater than 
 41.35  400,000,000 gallons per year.  
 41.36     (b) For once-through cooling systems, a water use 
 42.1   processing fee must be prescribed by the commissioner in 
 42.2   accordance with the following schedule of fees for each water 
 42.3   use permit in force at any time during the year: 
 42.4      (1) for nonprofit corporations and school districts: 
 42.5      (i) 5.0 cents per 1,000 gallons until December 31, 1991; 
 42.6      (ii) 10.0 cents per 1,000 gallons from January 1, 1992, 
 42.7   until December 31, 1996; and 
 42.8      (iii), 15.0 cents per 1,000 gallons after January 1, 1997; 
 42.9   and 
 42.10     (2) for all other users, 20 cents per 1,000 gallons. 
 42.11     (c) The fee is payable based on the amount of water 
 42.12  appropriated during the year and, except as provided in 
 42.13  paragraph (f), the minimum fee is $50.  
 42.14     (d) For water use processing fees other than once-through 
 42.15  cooling systems:  
 42.16     (1) the fee for a city of the first class may not exceed 
 42.17  $175,000 per year; 
 42.18     (2) the fee for other entities for any permitted use may 
 42.19  not exceed: 
 42.20     (i) $35,000 per year for an entity holding three or fewer 
 42.21  permits; 
 42.22     (ii) $50,000 per year for an entity holding four or five 
 42.23  permits; 
 42.24     (iii) $175,000 per year for an entity holding more than 
 42.25  five permits; 
 42.26     (3) the fee for agricultural irrigation may not exceed $750 
 42.27  per year; and 
 42.28     (4) the fee for a municipality that furnishes electric 
 42.29  service and cogenerates steam for home heating may not exceed 
 42.30  $10,000 for its permit for water use related to the cogeneration 
 42.31  of electricity and steam; and 
 42.32     (5) no fee is required for a project involving the 
 42.33  appropriation of surface water to prevent flood damage or to 
 42.34  remove flood waters during a period of flooding, as determined 
 42.35  by the commissioner.  
 42.36     (e) Failure to pay the fee is sufficient cause for revoking 
 43.1   a permit.  A penalty of two percent per month calculated from 
 43.2   the original due date must be imposed on the unpaid balance of 
 43.3   fees remaining 30 days after the sending of a second notice of 
 43.4   fees due.  A fee may not be imposed on an agency, as defined in 
 43.5   section 16B.01, subdivision 2, or federal governmental agency 
 43.6   holding a water appropriation permit. 
 43.7      (f) The minimum water use processing fee for a permit 
 43.8   issued for irrigation of agricultural land is $10 for years in 
 43.9   which: 
 43.10     (1) there is no appropriation of water under the permit; or 
 43.11     (2) the permit is suspended for more than seven consecutive 
 43.12  days between May 1 and October 1. 
 43.13     (g) For once-through systems fees payable after July 1, 
 43.14  1993, 75 percent of the fees must be credited to a special 
 43.15  account and are appropriated to the Minnesota public facilities 
 43.16  authority for loans under section 446A.21. 
 43.17     Sec. 39.  Minnesota Statutes 1996, section 115.076, 
 43.18  subdivision 1, is amended to read: 
 43.19     Subdivision 1.  [AUTHORITY OF COMMISSIONER.] (a) The agency 
 43.20  may refuse to issue or to authorize the transfer of: 
 43.21     (1) a hazardous waste facility permit or a solid waste 
 43.22  facility permit to construct or operate a commercial waste 
 43.23  facility as defined in section 115A.03, subdivision 6, if the 
 43.24  agency determines that the permit applicant does not possess 
 43.25  sufficient expertise and competence to operate the facility in 
 43.26  conformance with the requirements of this chapter and chapters 
 43.27  114C and 116, or if other circumstances exist that demonstrate 
 43.28  that the permit applicant may not operate the facility in 
 43.29  conformance with the requirements of this chapter and chapters 
 43.30  114C and 116; or 
 43.31     (2) an animal feedlot facility permit, under section 
 43.32  116.07, subdivision 7, to construct or operate an animal feedlot 
 43.33  facility, if the agency determines that the permit applicant 
 43.34  does not possess sufficient expertise and competence to operate 
 43.35  the feedlot facility in conformance with the requirements of 
 43.36  this chapter and chapter 116 or if other circumstances exist 
 44.1   that demonstrate that the permit applicant may not operate the 
 44.2   feedlot facility in conformance with the requirements of this 
 44.3   chapter and chapter 116.  
 44.4      (b) In making this a determination under paragraph (a), the 
 44.5   agency may consider: 
 44.6      (1) the experience of the permit applicant in constructing 
 44.7   or operating commercial waste facilities or animal feedlot 
 44.8   facilities; 
 44.9      (2) the expertise of the permit applicant; 
 44.10     (3) the past record of the permit applicant in operating 
 44.11  commercial waste facilities or animal feedlot facilities in 
 44.12  Minnesota and other states; 
 44.13     (4) any criminal convictions of the permit applicant in 
 44.14  state or federal court during the past five years that bear on 
 44.15  the likelihood that the permit applicant will operate the 
 44.16  facility in conformance with the applicable requirements of this 
 44.17  chapter and chapters 114C and 116; and 
 44.18     (5) in the case of a corporation or business entity, any 
 44.19  criminal convictions in state or federal court during the past 
 44.20  five years of any of the permit applicant's officers, partners, 
 44.21  or facility managers that bear on the likelihood that the 
 44.22  facility will be operated in conformance with the applicable 
 44.23  requirements of this chapter and chapters 114C and 116. 
 44.24     Sec. 40.  Minnesota Statutes 1997 Supplement, section 
 44.25  115.55, subdivision 5a, is amended to read: 
 44.26     Subd. 5a.  [INSPECTION CRITERIA FOR EXISTING SYSTEMS.] (a) 
 44.27  An inspection of an existing system must evaluate the criteria 
 44.28  in paragraphs (b) to (h). 
 44.29     (b) If the inspector finds one or more of the following 
 44.30  conditions: 
 44.31     (1) sewage discharge to surface water; 
 44.32     (2) sewage discharge to ground surface; 
 44.33     (3) sewage backup; or 
 44.34     (4) a cesspool; or 
 44.35     (5) any other situation with the potential to immediately 
 44.36  and adversely affect or threaten public health or safety, 
 45.1   then the system constitutes an imminent threat to public health 
 45.2   or safety and, if not repaired, must be upgraded, replaced, or 
 45.3   its use discontinued within ten months of receipt of the notice 
 45.4   described in subdivision 5b, or within a shorter period of time 
 45.5   if required by local ordinance. 
 45.6      (c) An existing system that has none of the conditions in 
 45.7   paragraph (b), and has at least two feet of soil separation need 
 45.8   not be upgraded, repaired, replaced, or its use discontinued, 
 45.9   notwithstanding any local ordinance that is more restrictive. 
 45.10     (d) Paragraph (c) does not apply to systems in shoreland 
 45.11  areas regulated under sections 103F.201 to 103F.221, wellhead 
 45.12  protection areas as defined in section 103I.005, or those used 
 45.13  in connection with food, beverage, and lodging establishments 
 45.14  regulated under chapter 157. 
 45.15     (e) If the local unit of government with jurisdiction over 
 45.16  the system has adopted an ordinance containing local standards 
 45.17  pursuant to subdivision 7, the existing system must comply with 
 45.18  the ordinance.  If the system does not comply with the 
 45.19  ordinance, it must be upgraded, replaced, or its use 
 45.20  discontinued according to the ordinance. 
 45.21     (f) If a seepage pit, drywell, cesspool, or leaching pit 
 45.22  exists and the local unit of government with jurisdiction over 
 45.23  the system has not adopted local standards to the contrary, the 
 45.24  system is failing and must be upgraded, replaced, or its use 
 45.25  discontinued within the time required by subdivision 3 or local 
 45.26  ordinance. 
 45.27     (g) If the system fails to provide sufficient groundwater 
 45.28  protection, then the local unit of government or its agent shall 
 45.29  order that the system be upgraded, replaced, or its use 
 45.30  discontinued within the time required by rule or the local 
 45.31  ordinance. 
 45.32     (h) The authority to find a threat to public health under 
 45.33  section 145A.04, subdivision 8, is in addition to the authority 
 45.34  to make a finding under paragraphs (b) to (d). 
 45.35     Sec. 41.  Minnesota Statutes 1997 Supplement, section 
 45.36  116.07, subdivision 7, is amended to read: 
 46.1      Subd. 7.  [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL 
 46.2   LOT PERMITS.] Any Minnesota county board may, by resolution, 
 46.3   with approval of the pollution control agency, assume 
 46.4   responsibility for processing applications for permits required 
 46.5   by the pollution control agency under this section for livestock 
 46.6   feedlots, poultry lots or other animal lots.  The responsibility 
 46.7   for permit application processing, if assumed by a county, may 
 46.8   be delegated by the county board to any appropriate county 
 46.9   officer or employee.  
 46.10     (a) For the purposes of this subdivision, the term 
 46.11  "processing" includes: 
 46.12     (1) the distribution to applicants of forms provided by the 
 46.13  pollution control agency; 
 46.14     (2) the receipt and examination of completed application 
 46.15  forms, and the certification, in writing, to the pollution 
 46.16  control agency either that the animal lot facility for which a 
 46.17  permit is sought by an applicant will comply with applicable 
 46.18  rules and standards, or, if the facility will not comply, the 
 46.19  respects in which a variance would be required for the issuance 
 46.20  of a permit; and 
 46.21     (3) rendering to applicants, upon request, assistance 
 46.22  necessary for the proper completion of an application. 
 46.23     (b) For the purposes of this subdivision, the term 
 46.24  "processing" may include, at the option of the county board, 
 46.25  issuing, denying, modifying, imposing conditions upon, or 
 46.26  revoking permits pursuant to the provisions of this section or 
 46.27  rules promulgated pursuant to it, subject to review, suspension, 
 46.28  and reversal by the pollution control agency.  The pollution 
 46.29  control agency shall, after written notification, have 15 days 
 46.30  to review, suspend, modify, or reverse the issuance of the 
 46.31  permit.  After this period, the action of the county board is 
 46.32  final, subject to appeal as provided in chapter 14. 
 46.33     (c) For the purpose of administration of rules adopted 
 46.34  under this subdivision, the commissioner and the agency may 
 46.35  provide exceptions for cases where the owner of a feedlot has 
 46.36  specific written plans to close the feedlot within five years.  
 47.1   These exceptions include waiving requirements for major capital 
 47.2   improvements. 
 47.3      (d) For purposes of this subdivision, a discharge caused by 
 47.4   an extraordinary natural event such as a precipitation event of 
 47.5   greater magnitude than the 25-year, 24-hour event, tornado, or 
 47.6   flood in excess of the 100-year flood is not a "direct discharge 
 47.7   of pollutants." 
 47.8      (e) In adopting and enforcing rules under this subdivision, 
 47.9   the commissioner shall cooperate closely with other governmental 
 47.10  agencies. 
 47.11     (f) The pollution control agency shall work with the 
 47.12  Minnesota extension service, the department of agriculture, the 
 47.13  board of water and soil resources, producer groups, local units 
 47.14  of government, as well as with appropriate federal agencies such 
 47.15  as the Soil Natural Resources Conservation Service and the 
 47.16  Agricultural Stabilization and Conservation Service Farm Service 
 47.17  Agency, to notify and educate producers of rules under this 
 47.18  subdivision at the time the rules are being developed and 
 47.19  adopted and at least every two years thereafter. 
 47.20     (g) The pollution control agency shall adopt rules 
 47.21  governing the issuance and denial of permits for livestock 
 47.22  feedlots, poultry lots or other animal lots pursuant to this 
 47.23  section.  A feedlot permit is not required for livestock 
 47.24  feedlots with more than ten but less than 50 animal units; 
 47.25  provided they are not in shoreland areas.  These rules apply 
 47.26  both to permits issued by counties and to permits issued by the 
 47.27  pollution control agency directly.  
 47.28     (h) The pollution control agency shall exercise supervising 
 47.29  authority with respect to the processing of animal lot permit 
 47.30  applications by a county. 
 47.31     (i) After May 17, 1997, any new rules or amendments to 
 47.32  existing rules proposed under the authority granted in this 
 47.33  subdivision, must be submitted to the members of legislative 
 47.34  policy committees with jurisdiction over agriculture and the 
 47.35  environment prior to final adoption.  The rules must not become 
 47.36  effective until 90 days after the proposed rules are submitted 
 48.1   to the members.  
 48.2      (j) Until new rules are adopted that provide for plans for 
 48.3   manure storage structures, any plans for a liquid manure storage 
 48.4   structure must be prepared or approved by a registered 
 48.5   professional engineer or a United States Department of 
 48.6   Agriculture, Natural Resources Conservation Service employee. 
 48.7      (k) A county may adopt by ordinance standards for animal 
 48.8   feedlots that are more stringent than standards in pollution 
 48.9   control agency rules. 
 48.10     (l) After January 1, 2001, a county that has not accepted 
 48.11  delegation of the feedlot permit program must hold a public 
 48.12  meeting prior to the agency issuing a feedlot permit for a 
 48.13  feedlot facility with 300 or more animal units, unless another 
 48.14  public meeting has been held with regard to the feedlot facility 
 48.15  to be permitted. 
 48.16     Sec. 42.  Minnesota Statutes 1996, section 116.07, is 
 48.17  amended by adding a subdivision to read: 
 48.18     Subd. 7b.  [FEEDLOT INVENTORY NOTIFICATION AND PUBLIC 
 48.19  MEETING REQUIREMENTS.] (a) Any state agency or local government 
 48.20  unit conducting an inventory or survey of livestock feedlots 
 48.21  under its jurisdiction must publicize notice of the inventory in 
 48.22  a newspaper of general circulation in the affected area and in 
 48.23  other media as appropriate.  The notice must state the dates the 
 48.24  inventory will be conducted, the information that will be 
 48.25  requested in the inventory, and how the information collected 
 48.26  will be provided to the public.  The notice must also specify 
 48.27  the date for a public meeting to provide information regarding 
 48.28  the inventory. 
 48.29     (b) A local government unit conducting an inventory or 
 48.30  survey of livestock feedlots under its jurisdiction must hold at 
 48.31  least one public meeting within the boundaries of the 
 48.32  jurisdiction of the local unit of government, prior to beginning 
 48.33  the inventory.  A state agency conducting a survey of livestock 
 48.34  feedlots must hold at least four public meetings outside of the 
 48.35  seven-county Twin Cities metropolitan area, prior to beginning 
 48.36  the inventory.  The public meeting must provide information 
 49.1   concerning the dates the inventory will be conducted, the 
 49.2   procedure the agency or local unit of government will use to 
 49.3   request the information to be included in the inventory, and how 
 49.4   the information collected will be provided to the public. 
 49.5      Sec. 43.  Minnesota Statutes 1996, section 116.07, is 
 49.6   amended by adding a subdivision to read: 
 49.7      Subd. 7c.  [NPDES PERMITTING REQUIREMENTS.] (a) The agency 
 49.8   must issue National Pollutant Discharge Elimination System 
 49.9   permits for feedlots with 1,000 animal units or more based on 
 49.10  the following schedule: 
 49.11     (1) for applications received after the effective date of 
 49.12  this section, a permit for a newly constructed or expanded 
 49.13  animal feedlot with 2,000 or more animal units must be issued as 
 49.14  an individual permit; 
 49.15     (2) for applications received after January 1, 1999, a 
 49.16  permit for a newly constructed or expanded animal feedlot with 
 49.17  between 1,000 and 2,000 animal units that is identified as a 
 49.18  priority by the commissioner, using criteria established under 
 49.19  paragraph (e), must be issued as an individual permit; and 
 49.20     (3) after January 1, 2001, all existing feedlots with 1,000 
 49.21  or more animal units must be issued an individual or general 
 49.22  National Pollutant Discharge Elimination System permit. 
 49.23     (b) By October 1, 1999, the agency must issue a general 
 49.24  National Pollutant Discharge Elimination System permit for 
 49.25  animal feedlots with between 1,000 and 2,000 animal units that 
 49.26  are not identified under paragraph (a), clause (2). 
 49.27     (c) Prior to the issuance of a general National Pollutant 
 49.28  Discharge Elimination System permit for a category of animal 
 49.29  feedlot facility permittees, the agency must hold at least one 
 49.30  public hearing on the permit issuance. 
 49.31     (d) To the extent practicable, the agency must include a 
 49.32  public notice and comment period for an individual National 
 49.33  Pollutant Discharge Elimination System permit concurrent with 
 49.34  any public notice and comment for: 
 49.35     (1) the purpose of environmental review of the same 
 49.36  facility under chapter 116D; or 
 50.1      (2) the purpose of obtaining a conditional use permit from 
 50.2   a local unit of government where the local government unit is 
 50.3   the responsible governmental unit for purposes of environmental 
 50.4   review under chapter 116D. 
 50.5      (e) By January 1, 1999, the commissioner, in consultation 
 50.6   with the feedlot and manure management advisory committee, 
 50.7   created under section 17.136, and other interested parties must 
 50.8   develop criteria for determining whether an individual National 
 50.9   Pollutant Discharge Elimination System permit is required under 
 50.10  paragraph (a), clause (2), for an animal feedlot with between 
 50.11  1,000 and 2,000 animal units.  The criteria must be based on 
 50.12  proximity to waters of the state, facility design, and other 
 50.13  site-specific environmental factors. 
 50.14     (f) By January 1, 2000, the commissioner, in consultation 
 50.15  with the feedlot and manure management advisory committee, 
 50.16  created under section 17.136, and other interested parties must 
 50.17  develop criteria for determining whether an individual National 
 50.18  Pollutant Discharge Elimination System permit is required for an 
 50.19  existing animal feedlot, under paragraph (a), clause (3).  The 
 50.20  criteria must be based on violations and other compliance 
 50.21  problems at the facility. 
 50.22     Sec. 44.  Minnesota Statutes 1997 Supplement, section 
 50.23  116.18, subdivision 3c, is amended to read: 
 50.24     Subd. 3c.  [INDIVIDUAL ON-SITE TREATMENT SYSTEMS AND 
 50.25  ALTERNATIVE DISCHARGING SEWAGE SYSTEMS PROGRAM.] (a) Beginning 
 50.26  in fiscal year 1989, up to ten percent of the money to be 
 50.27  awarded as grants under subdivision 3a in any single fiscal 
 50.28  year, up to a maximum of $1,000,000, may be set aside for the 
 50.29  award of grants by the agency to municipalities to reimburse 
 50.30  owners of individual on-site wastewater treatment systems or 
 50.31  alternative discharging sewage systems for a part of the costs 
 50.32  of upgrading or replacing the systems. 
 50.33     (b) An individual on-site treatment system is a wastewater 
 50.34  treatment system, or part thereof, that uses soil treatment and 
 50.35  disposal technology to treat 5,000 gallons or less of wastewater 
 50.36  per day from dwellings or other establishments. 
 51.1      (c) An alternative discharging sewage system is a system 
 51.2   permitted under section 115.58 that: 
 51.3      (1) serves one or more dwellings and other establishments; 
 51.4      (2) discharges less than 10,000 gallons of water per day; 
 51.5   and 
 51.6      (3) uses any treatment and disposal methods other than 
 51.7   subsurface soil treatment and disposal. 
 51.8      (d) Municipalities may apply yearly for grants of up to 50 
 51.9   percent of the cost of replacing or upgrading individual on-site 
 51.10  treatment systems, including conversion to an alternative 
 51.11  discharging sewage system, within their jurisdiction, up to a 
 51.12  limit of $5,000 per system or per connection to a cluster 
 51.13  system.  Before agency approval of the grant application, a 
 51.14  municipality must certify that:  
 51.15     (1) it has adopted and is enforcing the requirements of 
 51.16  Minnesota Rules governing individual sewage treatment systems; 
 51.17     (2) the existing systems for which application is made do 
 51.18  not conform to those rules, are at least 20 years old, do not 
 51.19  serve seasonal residences, and were not constructed with state 
 51.20  or federal funds; and 
 51.21     (3) the costs requested do not include administrative 
 51.22  costs, costs for improvements or replacements made before the 
 51.23  application is submitted to the agency unless it pertains to the 
 51.24  plan finally adopted, and planning and engineering costs other 
 51.25  than those for the individual site evaluations and system design.
 51.26     (d) (e) The federal and state regulations regarding the 
 51.27  award of state and federal wastewater treatment grants do not 
 51.28  apply to municipalities or systems funded under this 
 51.29  subdivision, except as provided in this subdivision.  
 51.30     (e) (f) The agency shall adopt permanent rules regarding 
 51.31  priorities, distribution of funds, payments, inspections, 
 51.32  procedures for administration of the agency's duties, and other 
 51.33  matters that the agency finds necessary for proper 
 51.34  administration of grants awarded under this subdivision.  
 51.35     Sec. 45.  Minnesota Statutes 1997 Supplement, section 
 51.36  169.1217, subdivision 1, is amended to read: 
 52.1      Subdivision 1.  [DEFINITIONS.] As used in this section, the 
 52.2   following terms have the meanings given them: 
 52.3      (a) "Appropriate agency" means a law enforcement agency 
 52.4   that has the authority to make an arrest for a violation of a 
 52.5   designated offense or to require a test under section 169.123. 
 52.6      (b) "Designated license revocation" includes a license 
 52.7   revocation under section 169.123: 
 52.8      (1) within five years of two prior impaired driving 
 52.9   convictions, two prior license revocations, or a prior impaired 
 52.10  driving conviction and a prior license revocation, based on 
 52.11  separate incidents; or 
 52.12     (2) within 15 years of the first of three or more prior 
 52.13  impaired driving convictions, three or more prior license 
 52.14  revocations, or any combination of three or more prior impaired 
 52.15  driving convictions and prior license revocations, based on 
 52.16  separate incidents.  
 52.17     (c) "Designated offense" includes: 
 52.18     (1) a violation of section 169.121, subdivision 1, clause 
 52.19  (a), (b), (c), (d), (e), (g), or (h), subdivision 1a, an 
 52.20  ordinance in conformity with any of them, or section 169.129: 
 52.21     (i) within five years of two prior impaired driving 
 52.22  convictions, or two prior license revocations, or a prior 
 52.23  impaired driving conviction and a prior license revocation, 
 52.24  based on separate incidents; or 
 52.25     (ii) within 15 years of the first of three or more prior 
 52.26  impaired driving convictions, three or more prior license 
 52.27  revocations, or any combination of three or more impaired 
 52.28  driving convictions and prior license revocations, based on 
 52.29  separate incidents; 
 52.30     (2) a violation of section 169.121, subdivision 1, clause 
 52.31  (f), or a violation of section 169.121, subdivision 3, paragraph 
 52.32  (c), clause (4): 
 52.33     (i) within five years of a prior impaired driving 
 52.34  conviction or a prior license revocation; or 
 52.35     (ii) within 15 years of the first of two or more prior 
 52.36  impaired driving convictions, two or more prior license 
 53.1   revocations, or a prior impaired driving conviction and a prior 
 53.2   license revocation, based on separate incidents; or 
 53.3      (3) a violation of section 169.121, an ordinance in 
 53.4   conformity with it, or section 169.129: 
 53.5      (i) by a person whose driver's license or driving 
 53.6   privileges have been canceled under section 171.04, subdivision 
 53.7   1, clause (9); or 
 53.8      (ii) by a person who is subject to a restriction on the 
 53.9   person's driver's license under section 171.09 which provides 
 53.10  that the person may not use or consume any amount of alcohol or 
 53.11  a controlled substance; or 
 53.12     (4) until June 30, 1999, a second or subsequent violation 
 53.13  of section 85.015, subdivision 1c. 
 53.14     (d) "Motor vehicle" and "vehicle" have the meaning given 
 53.15  "motor vehicle" in section 169.121, subdivision 11.  The terms 
 53.16  do not include a vehicle which is stolen or taken in violation 
 53.17  of the law. 
 53.18     (e) "Owner" means the registered owner of the motor vehicle 
 53.19  according to records of the department of public safety and 
 53.20  includes a lessee of a motor vehicle if the lease agreement has 
 53.21  a term of 180 days or more. 
 53.22     (f) "Prior impaired driving conviction" has the meaning 
 53.23  given it in section 169.121, subdivision 3.  A prior impaired 
 53.24  driving conviction also includes a prior juvenile adjudication 
 53.25  that would have been a prior impaired driving conviction if 
 53.26  committed by an adult. 
 53.27     (g) "Prior license revocation" has the meaning given it in 
 53.28  section 169.121, subdivision 3. 
 53.29     (h) "Prosecuting authority" means the attorney in the 
 53.30  jurisdiction in which the designated offense occurred who is 
 53.31  responsible for prosecuting violations of a designated offense. 
 53.32     Sec. 46.  Minnesota Statutes 1996, section 308A.131, 
 53.33  subdivision 1, is amended to read: 
 53.34     Subdivision 1.  [CONTENTS.] (a) The incorporators shall 
 53.35  prepare the articles, which must include:  
 53.36     (1) the name of the cooperative; 
 54.1      (2) the purpose of the cooperative; 
 54.2      (3) the principal place of business for the cooperative; 
 54.3      (4) the period of duration for the cooperative, if the 
 54.4   duration is not to be perpetual; 
 54.5      (5) the total authorized number of shares and the par value 
 54.6   of each share if the cooperative is organized on a capital stock 
 54.7   basis; 
 54.8      (6) a description of the classes of shares, if the shares 
 54.9   are to be classified; 
 54.10     (7) a statement of the number of shares in each class and 
 54.11  relative rights, preferences, and restrictions granted to or 
 54.12  imposed upon the shares of each class, and a provision that only 
 54.13  common stockholders have voting power; 
 54.14     (8) a statement that individuals owning common stock shall 
 54.15  be restricted to one vote in the affairs of the cooperative or a 
 54.16  statement that the cooperative is one described in section 
 54.17  308A.641, subdivision 2; 
 54.18     (9) a statement that shares of stock are transferable only 
 54.19  with the approval of the board; 
 54.20     (10) a statement that dividends on the capital stock and 
 54.21  nonstock units of equity of the cooperative may not exceed eight 
 54.22  percent annually; 
 54.23     (11) the names, post office addresses, and terms of office 
 54.24  of the directors of the first board; 
 54.25     (12) a statement that net income in excess of dividends and 
 54.26  additions to reserves shall be distributed on the basis of 
 54.27  patronage, and that the records of the cooperative may show the 
 54.28  interest of patrons, stockholders of any classes, and members in 
 54.29  the reserves; and 
 54.30     (13) the registered office address of the cooperative and 
 54.31  the name of the registered agent, if any, at that address.  
 54.32     (b) The articles must always contain the provisions in 
 54.33  paragraph (a), except that the names, post office addresses, and 
 54.34  terms of offices of the directors of the first board may be 
 54.35  omitted after their successors have been elected by the members 
 54.36  or the articles are amended in their entirety. 
 55.1      (c) The articles may contain other lawful provisions.  
 55.2      (d) The articles must be signed by the incorporators.  
 55.3      Sec. 47.  Minnesota Statutes 1997 Supplement, section 
 55.4   308A.705, subdivision 1, is amended to read: 
 55.5      Subdivision 1.  [DISTRIBUTION OF NET INCOME.] Net income in 
 55.6   excess of dividends on capital stock, nonstock units of equity, 
 55.7   and additions to reserves shall be distributed on the basis of 
 55.8   patronage.  A cooperative may establish allocation units, 
 55.9   whether the units are functional, divisional, departmental, 
 55.10  geographic, or otherwise, and pooling arrangements and may 
 55.11  account for and distribute net income on the basis of allocation 
 55.12  units and pooling arrangements.  A cooperative may offset the 
 55.13  net loss of an allocation unit or pooling arrangement against 
 55.14  the net income of other allocation units or pooling arrangements 
 55.15  to the extent permitted by section 1388(j) of the Internal 
 55.16  Revenue Code of 1986, as amended through December 31, 1996. 
 55.17     Sec. 48.  Minnesota Statutes 1996, section 308A.705, 
 55.18  subdivision 3, is amended to read: 
 55.19     Subd. 3.  [DIVIDENDS.] Dividends may be paid on capital 
 55.20  stock and nonstock units of equity only if the net income of the 
 55.21  cooperative for the previous fiscal year is sufficient.  The 
 55.22  dividends are not cumulative. 
 55.23     Sec. 49.  Laws 1997, chapter 216, section 15, subdivision 
 55.24  8, is amended to read: 
 55.25  Subd. 8.  Pollution Prevention 
 55.26  (a) TOXIC EMISSIONS FROM FIRE 
 55.27  TRAINING                                  65,000 
 55.28  This appropriation is from the trust 
 55.29  fund to metropolitan state university 
 55.30  to identify and quantify toxic 
 55.31  emissions from live-burn training in 
 55.32  acquired structures to evaluate and 
 55.33  propose alternatives.  This 
 55.34  appropriation is available until June 
 55.35  30, 2000, at which time the project 
 55.36  must be completed and final products 
 55.37  delivered, unless an earlier date is 
 55.38  specified in the work program. 
 55.39  (b) POLLUTION PREVENTION TRAINING 
 55.40  PROGRAM FOR INDUSTRIAL EMPLOYEES         200,000 
 55.41  This appropriation is from the future 
 55.42  resources fund to the director of the 
 55.43  office of environmental assistance for 
 56.1   agreements with Citizens for a Better 
 56.2   Environment and the University of 
 56.3   Minnesota to provide the training and 
 56.4   technical assistance needed for 
 56.5   pollution prevention by industrial 
 56.6   employees. 
 56.7      Sec. 50.  [AGGREGATE RESOURCES TASK FORCE.] 
 56.8      Subdivision 1.  [CREATION; MEMBERSHIP.] (a) An aggregate 
 56.9   resources task force consists of 12 members appointed as follows:
 56.10     (1) the subcommittee on subcommittees of the senate 
 56.11  committee on rules and administration shall appoint one citizen 
 56.12  member with experience in the state's aggregates industry, one 
 56.13  citizen member who is an employee of a local government unit 
 56.14  that works with environmental and land use impacts from 
 56.15  aggregate mining, and four members of the senate, two of whom 
 56.16  must be members of the minority caucus; and 
 56.17     (2) the speaker of the house shall appoint one citizen 
 56.18  member who is an employee of a local governmental unit that 
 56.19  works with environmental and land use impacts from aggregate 
 56.20  mining, one citizen member with experience in native prairie 
 56.21  conservation, and four members of the house, two of whom must be 
 56.22  members of the minority caucus.  
 56.23     (b) The appointing authorities must make their respective 
 56.24  appointments not later than July 1, 1998.  
 56.25     (c) The first meeting of the task force must be convened by 
 56.26  a person designated by the chair of the senate committee on 
 56.27  rules and administration.  Task force members shall then elect a 
 56.28  permanent chair from among the task force members.  
 56.29     Subd. 2.  [DUTIES.] The task force shall examine current 
 56.30  and projected issues concerning the need for and use of the 
 56.31  state's aggregate resources.  The task force shall seek input 
 56.32  from the aggregate industry, state agencies, counties, local 
 56.33  units of government, environmental organizations, and other 
 56.34  interested parties on aggregate resource issues, including 
 56.35  resource inventory, resource depletion, mining practices, 
 56.36  nuisance problems, safety, competing land uses and land use 
 56.37  planning, native prairie conservation, environmental review, 
 56.38  local permit requirements, reclamation, recycling, 
 57.1   transportation of aggregates, and the aggregate material tax.  
 57.2      Subd. 3.  [REPORT.] Not later than February 1, 2000, the 
 57.3   task force shall report to the legislature on the findings of 
 57.4   its study.  The report must include a recommendation as to 
 57.5   whether there is a need for a comprehensive statewide policy on 
 57.6   any aggregate resource issue.  If the task force recommends a 
 57.7   statewide policy, the report must include recommendations on the 
 57.8   framework for the statewide policy.  
 57.9      Subd. 4.  [EXPIRATION.] The aggregate resources task force 
 57.10  expires 45 days after its report and recommendations are 
 57.11  delivered to the legislature, or on June 30, 2001, whichever 
 57.12  date is earlier. 
 57.13     Sec. 51.  [REPORT ON NONCOMMERCIAL MANURE APPLICATOR 
 57.14  TRAINING AND CERTIFICATION.] 
 57.15     The commissioner of agriculture, in close consultation with 
 57.16  the commissioner of the pollution control agency and statewide 
 57.17  farm organizations including the Minnesota Farmers Union and the 
 57.18  Minnesota Farm Bureau Federation, shall conduct a study to 
 57.19  assess the need for and feasibility of a program for 
 57.20  noncommercial manure applicator training and certification.  The 
 57.21  commissioner must submit a report to the members of the senate 
 57.22  and house policy committees with jurisdiction over agriculture 
 57.23  and the environment by January 20, 1999.  The report must 
 57.24  include recommendations on: 
 57.25     (1) persons and activities that should be exempt from 
 57.26  certification; 
 57.27     (2) dates by which persons should be required to obtain 
 57.28  certification; 
 57.29     (3) content of the noncommercial animal waste technician 
 57.30  training curriculum; and 
 57.31     (4) procedures and timelines for implementing noncommercial 
 57.32  animal waste technician training programs. 
 57.33     Sec. 52.  [PERMIT REQUIREMENTS.] 
 57.34     Until June 30, 2000, neither the pollution control agency 
 57.35  nor a county board may issue a permit for the construction of an 
 57.36  open-air clay, earthen, or flexible membrane lined swine waste 
 58.1   lagoon.  This section does not apply to repair or modification 
 58.2   related to an environmental improvement of an existing lagoon. 
 58.3      Sec. 53.  [FEEDLOT RULES.] 
 58.4      By March 1, 1999, the commissioner of the pollution control 
 58.5   agency must submit a copy of updated feedlot permit rules as 
 58.6   prescribed in Minnesota Statutes, section 116.07, subdivision 7, 
 58.7   paragraph (i).  The updated rules must become effective no later 
 58.8   than June 1, 1999. 
 58.9      Sec. 54.  [ENVIRONMENTAL REVIEW RULES.] 
 58.10     The environmental quality board, in consultation with the 
 58.11  pollution control agency, shall study and adopt rules pursuant 
 58.12  to Minnesota Statutes, chapter 14, to revise and clarify 
 58.13  Minnesota Rules, part 4410.1000, subpart 4, as it applies to 
 58.14  connected actions on animal feedlots and the need for 
 58.15  environmental review.  The board must submit a copy of the 
 58.16  proposed rules and a summary of public comments received on the 
 58.17  rules to the members of the senate and house policy committees 
 58.18  with jurisdiction over agriculture and the environment, the 
 58.19  senate environment and agriculture budget division, and the 
 58.20  house environment, natural resources, and agriculture finance 
 58.21  committee by March 1, 1999.  The rules may not become effective 
 58.22  until 60 days after they are submitted to the committee members 
 58.23  and must become effective no later than June 1, 1999. 
 58.24     Sec. 55.  [REPORT ON REVISED STANDARDS FOR HYDROGEN SULFIDE 
 58.25  EXPOSURE.] 
 58.26     By January 15, 1999, the commissioner of labor and 
 58.27  industry, in consultation with the commissioners of the 
 58.28  pollution control agency, health, and agriculture, shall report 
 58.29  to the senate and house policy committees with jurisdiction over 
 58.30  agriculture and environment on the need for and, if appropriate, 
 58.31  suggested changes to standards for hydrogen sulfide exposure 
 58.32  levels within livestock confinement facilities having a design 
 58.33  capacity of 500 animal units or more and at various distances up 
 58.34  to 5,000 feet from animal waste storage facilities. 
 58.35     Sec. 56.  [REPORT ON ANIMAL WASTE LIABILITY.] 
 58.36     By January 15, 1999, the commissioner of the pollution 
 59.1   control agency, in conjunction with the commissioner of 
 59.2   agriculture, shall report to the legislative policy and finance 
 59.3   committees or divisions with jurisdiction over agriculture and 
 59.4   the environment on the need for an animal waste liability 
 59.5   account, improved animal waste incident reporting, and a 
 59.6   contingency action plan for animal waste sites.  The report must 
 59.7   include: 
 59.8      (1) an analysis of the need and level of funding required 
 59.9   for an animal waste liability account; 
 59.10     (2) the identification of possible funding sources to 
 59.11  ensure adequate resources for animal waste site cleanup under 
 59.12  clause (1); 
 59.13     (3) an analysis of the need for changes to the current 
 59.14  animal waste incident reporting system; and 
 59.15     (4) the need for development of a statewide animal waste 
 59.16  contingency plan for animal waste sites, including containment, 
 59.17  closure, and cleanup. 
 59.18     Sec. 57.  [COUNTIES AND TOWNS TO REPORT.] 
 59.19     (a) Not later than August 1, 1998, each county and each 
 59.20  town that has adopted ordinances related to animal feedlots 
 59.21  shall supply copies of the ordinances to the commissioner of 
 59.22  agriculture.  A county or town that adopts a new or amended 
 59.23  ordinance related to animal feedlots shall report the new or 
 59.24  amended ordinance to the commissioner within 60 days after the 
 59.25  adoption. 
 59.26     (b) The reporting requirements of paragraph (a) expire 
 59.27  after June 30, 2001. 
 59.28     Sec. 58.  [LOAN WORK PLAN.] 
 59.29     Notwithstanding the requirements of rules adopted pursuant 
 59.30  to Minnesota Statutes, section 115A.0716, that prevent the use 
 59.31  of funds for costs incurred before the term of the agreement, 
 59.32  the director shall disburse loan funds awarded to United 
 59.33  Recycling, Inc., provided that the director has approved a new 
 59.34  project proposal that includes performance goals for carpet 
 59.35  recycling and demonstrates the financial viability of the 
 59.36  recycling enterprise. 
 60.1      Sec. 59.  [WATER QUALITY COST-BENEFIT MODEL SCOPING TASK 
 60.2   FORCE.] 
 60.3      The commissioner of the pollution control agency shall 
 60.4   convene a task force comprising of no more than three 
 60.5   representatives each from industry, municipalities, watershed 
 60.6   management groups, labor, agriculture, and environmental groups 
 60.7   within 30 days of the effective date of this section.  The task 
 60.8   force shall select an entity to conduct a scoping study for a 
 60.9   cost-benefit model to analyze water quality standards.  The 
 60.10  scoping study shall include:  a watershed-based approach that 
 60.11  evaluates both point and nonpoint pollution sources, the extent 
 60.12  of the costs and benefits to be evaluated, the necessary 
 60.13  elements of the model, a model that is transferable to other 
 60.14  watersheds and standards, and the characteristics of the 
 60.15  watersheds and standards to be evaluated.  By October 15, 1998, 
 60.16  the task force shall review the completed scoping study and make 
 60.17  recommendations on the scope, cost, and time frame for 
 60.18  development of the model to the commissioner and to the chairs 
 60.19  of the house and senate environment and natural resources 
 60.20  committees, the chair of the house environment, natural 
 60.21  resources, and agriculture finance committee, and the chair of 
 60.22  the senate environment and agriculture budget division. 
 60.23     Sec. 60.  [ANALYSIS AND SALE OF LAKESHORE LEASED LOTS.] 
 60.24     Subdivision 1.  [ANALYSIS OF LOTS.] By January 15, 1999, 
 60.25  the commissioner of natural resources must submit a report to 
 60.26  the chairs of the senate and house environment and natural 
 60.27  resources committees, the chair of the house environment, 
 60.28  natural resources, and agriculture finance committee, the chair 
 60.29  of the senate environment and agriculture budget division, the 
 60.30  chairs of the senate children, families and learning committee, 
 60.31  and the chair of the house education committee, including the 
 60.32  results of the field inspection required by this section, 
 60.33  recommendations on appropriations needed to accomplish this 
 60.34  section, and additional recommendations on methods to preserve 
 60.35  public lakeshore in the state.  The commissioner must conduct a 
 60.36  field inspection of all lands leased pursuant to Minnesota 
 61.1   Statutes, section 92.46, subdivision 1.  The commissioner shall 
 61.2   identify all lots within the following classifications: 
 61.3      (1) sale of the lot would create a block of contiguous 
 61.4   property that could result in a shift in land use from 
 61.5   residential to commercial development; 
 61.6      (2) the lot should remain in public ownership in order to 
 61.7   provide public access to the lake where it is located; 
 61.8      (3) the lot is part of the trust land in Horseshoe Bay, as 
 61.9   referenced in Laws 1997, chapter 216, section 151; 
 61.10     (4) the lot contains all or part of an unusual resource, 
 61.11  such as a historical or archaeological site, or a sensitive 
 61.12  ecological resource, or contains high quality habitat, or has a 
 61.13  high scenic value; 
 61.14     (5) the lot is not in compliance with state law concerning 
 61.15  on-site sewage treatment or minimum lot size requirements for 
 61.16  development, or the lot is hydrologically unsuitable for future 
 61.17  development; and 
 61.18     (6) the lot provides access for adjacent state land. 
 61.19     Subd. 2.  [SCHOOL TRUST LAKESHORE LOTS; EXCHANGE AND SALE.] 
 61.20  (a) For each parcel of land that does not meet the criteria in 
 61.21  subdivision 1, the commissioner must preserve the assets of the 
 61.22  school trust pursuant to this subdivision. 
 61.23     (b) The commissioner must attempt to establish a land 
 61.24  exchange with each lessee.  The lessee and the commissioner must 
 61.25  attempt to agree on a parcel of private lakeshore land to be 
 61.26  used for the land exchange.  If the lessee obtains an option to 
 61.27  purchase the parcel, the commissioner must conduct an appraisal 
 61.28  and a survey of both parcels of land at the lessee's expense.  
 61.29  If the commissioner determines that the parcel offered by the 
 61.30  lessee is of equal or greater value than the trust land, the 
 61.31  commissioner must submit the proposed exchange to the land 
 61.32  exchange board, as defined in Minnesota Statutes, section 
 61.33  94.341, for approval.  Notwithstanding Minnesota Statutes, 
 61.34  sections 94.342 to 94.347, the land exchange board shall 
 61.35  determine the procedures for approval of individual land 
 61.36  exchanges, subject to the requirements of the Minnesota 
 62.1   Constitution and this section.  Any exchange under this 
 62.2   paragraph must be submitted to the land exchange board by July 
 62.3   1, 2004. 
 62.4      (c) By December 15, 2004, the commissioner must submit a 
 62.5   list of each parcel of land that has not been exchanged pursuant 
 62.6   to paragraph (b) to the house and senate environment and natural 
 62.7   resource committees.  The list submitted by the commissioner 
 62.8   must include recommendations for sale or retention of the 
 62.9   remaining individual parcels.  Subject to approval by the 
 62.10  legislature, the commissioner must sell parcels approved for 
 62.11  sale by public sale at the expiration of the lease term using a 
 62.12  sealed bid procedure under the remaining provisions of Minnesota 
 62.13  Statutes, chapter 92.  After approval of sale by the 
 62.14  legislature, a lessee of land approved for sale may request 
 62.15  during the remainder of the lease term that lands leased by the 
 62.16  lessee be sold at a public sale pursuant to this section within 
 62.17  one year of the request. 
 62.18     (d) The commissioner must mail notice of this section to 
 62.19  each lessee by July 1, 1998. 
 62.20     Sec. 61.  [REPEALER.] 
 62.21     (a) Minnesota Statutes 1997 Supplement, section 85.015, 
 62.22  subdivision 1c, as amended by this act, is repealed effective 
 62.23  June 30, 1999. 
 62.24     (b) Laws 1991, chapter 275, section 3, is repealed. 
 62.25     Sec. 62.  [EFFECTIVE DATE.] 
 62.26     Section 31 is effective January 1, 1998.  Sections 28 and 
 62.27  29 are effective January 1, 1999.  Section 23 is effective July 
 62.28  1, 1999.  Section 52 is effective the day following final 
 62.29  enactment and applies to new applications submitted after that 
 62.30  date.  The remainder of this act is effective the day following 
 62.31  final enactment.