1.1                          A bill for an act 
  1.2             relating to natural resources; modifying restrictions 
  1.3             on the operation of off-highway vehicles; providing an 
  1.4             exemption from rulemaking; extending the availability 
  1.5             of the off-highway vehicle damage account; modifying 
  1.6             decal requirements for off-highway motorcycles; 
  1.7             clarifying the requirement for off-road vehicle 
  1.8             registration; modifying the off-highway vehicle safety 
  1.9             and conservation grant program; modifying restrictions 
  1.10            on the operation of all-terrain vehicles; modifying 
  1.11            provisions for reviewing forest classification status; 
  1.12            modifying trail designation on certain consolidated 
  1.13            conservation lands; providing for the establishment of 
  1.14            procedures and criteria for grant-in-aid trails; 
  1.15            amending Minnesota Statutes 2002, sections 84.798, 
  1.16            subdivision 1; 84.925, subdivision 1; 84.9256, 
  1.17            subdivision 1; 84.9257; 84.928, subdivisions 2, 6; 
  1.18            89.19; 97A.133, subdivision 3; Minnesota Statutes 2003 
  1.19            Supplement, sections 84.773; 84.780; 84.788, 
  1.20            subdivision 3; 84.901; 84.922, subdivision 2; 84.926; 
  1.21            84.930; Laws 2003, chapter 128, article 1, section 
  1.22            167, subdivision 1. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.25  84.773, is amended to read: 
  1.26     84.773 [RESTRICTIONS ON OPERATION.] 
  1.27     Subdivision 1.  [RESTRICTIONS.] (a) A person may not 
  1.28  intentionally operate an off-highway vehicle: 
  1.29     (1) on a trail on public land that is designated or signed 
  1.30  for nonmotorized use only; 
  1.31     (2) on restricted areas within public lands that are posted 
  1.32  or where gates or other clearly visible structures are placed to 
  1.33  prevent unauthorized motorized vehicle access; or 
  1.34     (3) except as specifically authorized by law or rule 
  2.1   adopted by the commissioner, in:  type 3, 4, 5, and 8 wetlands 
  2.2   or unfrozen public waters, as defined in section 103G.005; 
  2.3      (4) except as specifically authorized by law or rule 
  2.4   adopted by the commissioner, in a state park; in a scientific 
  2.5   and natural area; or in a wildlife management area; or 
  2.6      (5) in a calcareous fen, as identified by the commissioner. 
  2.7      (b) The restriction in paragraph (a), clause (3), does not 
  2.8   apply to frozen type 8 wetlands until October 1, 2009. 
  2.9      (c) A person may not operate an off-highway vehicle 
  2.10  off-road on public land or public waters with an air intake pipe 
  2.11  that is more than six inches above the manufacturer's original 
  2.12  air-intake pipe. 
  2.13     Subd. 2.  [SPECIFIC USE EXEMPTIONS.] Subdivision 1 does not 
  2.14  apply to an off-highway vehicle being used for farming; an 
  2.15  off-highway vehicle used for military, fire, emergency, or law 
  2.16  enforcement purposes; a construction or logging off-highway 
  2.17  vehicle used in the performance of its common function; an 
  2.18  off-highway vehicle owned by or operated under contract with a 
  2.19  utility or pipeline company, when used for work on utilities or 
  2.20  pipelines; or a government-owned vehicle used for official 
  2.21  business. 
  2.22     Subd. 3.  [HUNTING AND TRAPPING EXEMPTIONS.] Subdivision 1, 
  2.23  clause (3), does not apply to the direct crossing of type 8 
  2.24  wetlands by an off-highway vehicle being used by an individual 
  2.25  on private or public lands lawfully engaged in hunting and 
  2.26  trapping activities as described in section 84.926, subdivision 
  2.27  2. 
  2.28     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.29  84.780, is amended to read: 
  2.30     84.780 [OFF-HIGHWAY VEHICLE DAMAGE ACCOUNT.] 
  2.31     (a) The off-highway vehicle damage account is created in 
  2.32  the natural resources fund.  Money in the off-highway vehicle 
  2.33  damage account is appropriated to the commissioner of natural 
  2.34  resources for: 
  2.35     (1) the repair or restoration of property damaged by the 
  2.36  operation of off-highway vehicles in an unpermitted area after 
  3.1   August 1, 2003,; and 
  3.2      for (2) the costs of administration for this section. 
  3.3      (b) Before the commissioner may make a payment from this 
  3.4   account, the commissioner must determine whether the damage to 
  3.5   the applicant's property was caused by the unpermitted use of 
  3.6   off-highway vehicles, that the applicant has made reasonable 
  3.7   efforts to identify the responsible individual and obtain 
  3.8   payment from the individual, and that the applicant has made 
  3.9   reasonable efforts to prevent reoccurrence.  By June 30, 2005, 
  3.10  the commissioner of finance must transfer the remaining balance 
  3.11  in the account to the off-highway motorcycle account under 
  3.12  section 84.794, the off-road vehicle account under section 
  3.13  84.803, and the all-terrain vehicle account under section 
  3.14  84.927.  The amount transferred to each account must be 
  3.15  proportionate to the amounts received in the damage account from 
  3.16  the relevant off-highway vehicle accounts. 
  3.17     (b) This section expires July 1, 2005. 
  3.18     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
  3.19  84.788, subdivision 3, is amended to read: 
  3.20     Subd. 3.  [APPLICATION; ISSUANCE; REPORTS.] (a) Application 
  3.21  for registration or continued registration must be made to the 
  3.22  commissioner or an authorized deputy registrar of motor vehicles 
  3.23  in a form prescribed by the commissioner.  The form must state 
  3.24  the name and address of every owner of the off-highway 
  3.25  motorcycle. 
  3.26     (b) A person who purchases from a retail dealer an 
  3.27  off-highway motorcycle shall make application for registration 
  3.28  to the dealer at the point of sale.  The dealer shall issue a 
  3.29  temporary ten-day registration permit to each purchaser who 
  3.30  applies to the dealer for registration.  The dealer shall submit 
  3.31  the completed registration applications and fees to the deputy 
  3.32  registrar at least once each week.  No fee may be charged by a 
  3.33  dealer to a purchaser for providing the temporary permit. 
  3.34     (c) Upon receipt of the application and the appropriate 
  3.35  fee, the commissioner or deputy registrar shall issue to the 
  3.36  applicant, or provide to the dealer, a 60-day temporary receipt 
  4.1   and shall assign a registration number that must be affixed to 
  4.2   the motorcycle in a manner prescribed by the commissioner 
  4.3   according to paragraph (f).  A dealer subject to paragraph (b) 
  4.4   shall provide the registration materials and temporary receipt 
  4.5   to the purchaser within the ten-day temporary permit period. 
  4.6      (d) The commissioner shall develop a registration system to 
  4.7   register vehicles under this section.  A deputy registrar of 
  4.8   motor vehicles acting under section 168.33, is also a deputy 
  4.9   registrar of off-highway motorcycles.  The commissioner of 
  4.10  natural resources in agreement with the commissioner of public 
  4.11  safety may prescribe the accounting and procedural requirements 
  4.12  necessary to ensure efficient handling of registrations and 
  4.13  registration fees.  Deputy registrars shall strictly comply with 
  4.14  the accounting and procedural requirements.  
  4.15     (e) In addition to other fees prescribed by law, a filing 
  4.16  fee of $4.50 is charged for each off-highway motorcycle 
  4.17  registration renewal, duplicate or replacement registration 
  4.18  card, and replacement decal and a filing fee of $7 is charged 
  4.19  for each off-highway motorcycle registration and registration 
  4.20  transfer issued by: 
  4.21     (1) a deputy registrar and must be deposited in the 
  4.22  treasury of the jurisdiction where the deputy is appointed, or 
  4.23  kept if the deputy is not a public official; or 
  4.24     (2) the commissioner and must be deposited in the state 
  4.25  treasury and credited to the off-highway motorcycle account. 
  4.26     (f) Unless exempted in paragraph (g), the owner of an 
  4.27  off-highway motorcycle must display a registration decal issued 
  4.28  by the commissioner.  If the motorcycle is licensed as a motor 
  4.29  vehicle, a registration decal must be affixed on the upper left 
  4.30  corner of the rear license plate.  If the motorcycle is not 
  4.31  licensed as a motor vehicle, the decal must be attached on the 
  4.32  side of the motorcycle and may be attached to the fork tube.  
  4.33  The decal must be attached in a manner so that it is visible 
  4.34  while a rider is on the motorcycle.  The issued decals must be 
  4.35  of a size to work within the constraints of the electronic 
  4.36  licensing system, not to exceed three inches high and three 
  5.1   inches wide. 
  5.2      (g) Display of a registration decal is not required for an 
  5.3   off-highway motorcycle: 
  5.4      (1) while being operated on private property; or 
  5.5      (2) while competing in a closed-course competition event. 
  5.6      Sec. 4.  Minnesota Statutes 2002, section 84.798, 
  5.7   subdivision 1, is amended to read: 
  5.8      Subdivision 1.  [GENERAL REQUIREMENTS.] Unless exempted 
  5.9   under subdivision 2, after January 1, 1995, a person may not 
  5.10  operate and an owner may not give permission for another to 
  5.11  operate a vehicle off-road, nor may a person have an off-road 
  5.12  vehicle not registered under chapter 168 in possession at an 
  5.13  off-road vehicle staging area, or on lands administered by the 
  5.14  commissioner on designated trail trails or area areas, or on 
  5.15  off-road vehicle grant-in-aid trails and areas funded under 
  5.16  section 84.803, unless the vehicle has been registered under 
  5.17  this section. 
  5.18     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  5.19  84.901, is amended to read: 
  5.20     84.901 [OFF-HIGHWAY VEHICLE SAFETY AND CONSERVATION 
  5.21  PROGRAM.] 
  5.22     Subdivision 1.  [CREATION.] The commissioner of natural 
  5.23  resources shall establish a grant program to promote the safe 
  5.24  and responsible operation of off-highway vehicles in a manner 
  5.25  that does not harm the environment.  The commissioner shall 
  5.26  coordinate the program through the regional offices of the 
  5.27  Department of Natural Resources. 
  5.28     Subd. 2.  [PURPOSE USE OF GRANTS.] The purpose of the 
  5.29  program is to encourage off-highway vehicle clubs to assist, on 
  5.30  a volunteer basis, in improving, maintaining, and monitoring of 
  5.31  trails on state forest land and other public lands.  (a) An 
  5.32  organization receiving a grant under this section shall use the 
  5.33  grant money to promote and provide support, on a volunteer 
  5.34  basis, to the department by: 
  5.35     (1) improving, maintaining, and monitoring trails on state 
  5.36  forest land and other public lands; 
  6.1      (2) providing assistance in locating, recruiting, and 
  6.2   training instructors; and 
  6.3      (3) publishing a manual with the commissioner for use in 
  6.4   training volunteers to monitor the operation of off-highway 
  6.5   vehicles for safety, environmental, and other issues relating to 
  6.6   responsible operation. 
  6.7      Subd. 3.  [AGREEMENTS.] (a) The commissioner shall enter 
  6.8   into informal agreements with off-highway vehicle clubs for 
  6.9   volunteer services to maintain, make improvements to, and 
  6.10  monitor trails on state forest land and other public lands.  The 
  6.11  off-highway vehicle clubs 
  6.12     (b) The grantee shall promote the operation of off-highway 
  6.13  vehicles in a safe and responsible manner that complies with the 
  6.14  applicable laws and rules that relate to the operation of 
  6.15  off-highway vehicles. 
  6.16     (b) The off-highway vehicle clubs may provide assistance to 
  6.17  the department in locating, recruiting, and training instructors 
  6.18  for off-highway vehicle training programs. 
  6.19     (c) The commissioner may provide assistance to enhance the 
  6.20  comfort and safety of volunteers and to facilitate the 
  6.21  implementation and administration of the safety and conservation 
  6.22  program. 
  6.23     Subd. 4.  [WORKER DISPLACEMENT PROHIBITED.] The 
  6.24  commissioner may not enter into any agreement that has the 
  6.25  purpose of or results in the displacement of public employees by 
  6.26  volunteers participating in the off-highway safety and 
  6.27  conservation program under this section.  The commissioner must 
  6.28  certify to the appropriate bargaining agent that the work 
  6.29  performed by a volunteer will not result in the displacement of 
  6.30  currently employed workers or workers on seasonal layoff or 
  6.31  layoff from a substantially equivalent position, including 
  6.32  partial displacement such as reduction in hours of nonovertime 
  6.33  work, wages, or other employment benefits. 
  6.34     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
  6.35  84.922, subdivision 2, is amended to read: 
  6.36     Subd. 2.  [APPLICATION, ISSUANCE, REPORTS.] (a) Application 
  7.1   for registration or continued registration shall be made to the 
  7.2   commissioner of natural resources, the commissioner of public 
  7.3   safety or an authorized deputy registrar of motor vehicles in a 
  7.4   form prescribed by the commissioner.  The form must state the 
  7.5   name and address of every owner of the vehicle.  
  7.6      (b) A person who purchases an all-terrain vehicle from a 
  7.7   retail dealer shall make application for registration to the 
  7.8   dealer at the point of sale.  The dealer shall issue a temporary 
  7.9   ten-day registration permit to each purchaser who applies to the 
  7.10  dealer for registration.  The dealer shall submit the completed 
  7.11  registration application and fees to the deputy registrar at 
  7.12  least once each week.  No fee may be charged by a dealer to a 
  7.13  purchaser for providing the temporary permit. 
  7.14     (c) Upon receipt of the application and the appropriate 
  7.15  fee, the commissioner or deputy registrar shall issue to the 
  7.16  applicant, or provide to the dealer, a 60-day temporary receipt 
  7.17  and shall assign a registration number that must be affixed to 
  7.18  the vehicle in a manner prescribed by the commissioner.  A 
  7.19  dealer subject to paragraph (b) shall provide the registration 
  7.20  materials and temporary receipt to the purchaser within the 
  7.21  ten-day temporary permit period.  The commissioner shall use the 
  7.22  snowmobile registration system to register vehicles under this 
  7.23  section.  
  7.24     (d) Each deputy registrar of motor vehicles acting under 
  7.25  section 168.33, is also a deputy registrar of all-terrain 
  7.26  vehicles.  The commissioner of natural resources in agreement 
  7.27  with the commissioner of public safety may prescribe the 
  7.28  accounting and procedural requirements necessary to assure 
  7.29  efficient handling of registrations and registration fees. 
  7.30  Deputy registrars shall strictly comply with the accounting and 
  7.31  procedural requirements.  
  7.32     (e) In addition to other fees prescribed by law, a filing 
  7.33  fee of $4.50 is charged for each all-terrain vehicle 
  7.34  registration renewal, duplicate or replacement registration 
  7.35  card, and replacement decal and a filing fee of $7 is charged 
  7.36  for each all-terrain vehicle registration and registration 
  8.1   transfer issued by: 
  8.2      (1) a deputy registrar and shall be deposited in the 
  8.3   treasury of the jurisdiction where the deputy is appointed, or 
  8.4   retained if the deputy is not a public official; or 
  8.5      (2) the commissioner and shall be deposited to the state 
  8.6   treasury and credited to the all-terrain vehicle account in the 
  8.7   natural resources fund. 
  8.8      (f) The registration numbers and decal must be displayed on 
  8.9   a plate not less than six inches high and 12 inches wide, which 
  8.10  is clearly visible on the back of the vehicle, at least 12 
  8.11  inches from the ground.  The plate, registration numbers, and 
  8.12  registration decal must be maintained in a clear and legible 
  8.13  condition.  Letters and numbers on the plate shall be at least 
  8.14  three inches high and not less than one-half inch wide. 
  8.15     Sec. 7.  Minnesota Statutes 2002, section 84.925, 
  8.16  subdivision 1, is amended to read: 
  8.17     Subdivision 1.  [PROGRAM ESTABLISHED.] (a) The commissioner 
  8.18  shall establish a comprehensive all-terrain vehicle 
  8.19  environmental and safety education and training program, 
  8.20  including the preparation and dissemination of vehicle 
  8.21  information and safety advice to the public, the training of 
  8.22  all-terrain vehicle operators, and the issuance of all-terrain 
  8.23  vehicle safety certificates to vehicle operators over the age of 
  8.24  12 years who successfully complete the all-terrain vehicle 
  8.25  environmental and safety education and training course.  
  8.26     (b) For the purpose of administering the program and to 
  8.27  defray a portion of the expenses of training and certifying 
  8.28  vehicle operators, the commissioner shall collect a fee of $15 
  8.29  from each person who receives the training.  Fee proceeds shall 
  8.30  be deposited in the all-terrain vehicle account in the natural 
  8.31  resources fund.  In addition to the fee established by the 
  8.32  commissioner, instructors may charge each person up to $5 for 
  8.33  class material and expenses. 
  8.34     (c) The commissioner shall cooperate with private 
  8.35  organizations and associations, private and public corporations, 
  8.36  and local governmental units in furtherance of the program 
  9.1   established under this section.  School districts may cooperate 
  9.2   with the commissioner and volunteer instructors to provide space 
  9.3   for the classroom portion of the training.  The commissioner 
  9.4   shall consult with the commissioner of public safety in regard 
  9.5   to training program subject matter and performance testing that 
  9.6   leads to the certification of vehicle operators.  By June 30, 
  9.7   2003, the commissioner shall incorporate a riding component in 
  9.8   the safety education and training program. 
  9.9      Sec. 8.  Minnesota Statutes 2002, section 84.9256, 
  9.10  subdivision 1, is amended to read: 
  9.11     Subdivision 1.  [PROHIBITIONS ON YOUTHFUL OPERATORS.] (a) 
  9.12  Except for operation on public road rights-of-way that is 
  9.13  permitted under section 84.928, a driver's license issued by the 
  9.14  state or another state is required to operate an all-terrain 
  9.15  vehicle along or on a public road right-of-way. 
  9.16     (b) A person under 12 years of age shall not: 
  9.17     (1) make a direct crossing of a public road right-of-way; 
  9.18     (2) operate an all-terrain vehicle on a public road 
  9.19  right-of-way in the state; or 
  9.20     (3) operate an all-terrain vehicle on public lands or 
  9.21  waters.  
  9.22     (c) Except for public road rights-of-way of interstate 
  9.23  highways, a person 12 years of age but less than 16 years may 
  9.24  make a direct crossing of a public road right-of-way of a trunk, 
  9.25  county state-aid, or county highway or operate on public lands 
  9.26  and waters, only if that person possesses a valid all-terrain 
  9.27  vehicle safety certificate issued by the commissioner and is 
  9.28  accompanied on another all-terrain vehicle by a person 18 years 
  9.29  of age or older who holds a valid driver's license.  
  9.30     (d) All-terrain vehicle safety certificates issued by the 
  9.31  commissioner to persons 12 years old, but less than 16 years 
  9.32  old, are not valid for machines in excess of 90cc engine 
  9.33  capacity unless: 
  9.34     (1) the person successfully completed the safety education 
  9.35  and training program under section 84.925, subdivision 1, 
  9.36  including a riding component; and 
 10.1      (2) the riding component of the training was conducted 
 10.2   using an all-terrain vehicle with over 90cc engine capacity; and 
 10.3      (3) the person is able to properly reach and control the 
 10.4   handle bars and reach the foot pegs while sitting upright on the 
 10.5   seat of the all-terrain vehicle. 
 10.6      Sec. 9.  Minnesota Statutes 2002, section 84.9257, is 
 10.7   amended to read: 
 10.8      84.9257 [PASSENGERS.] 
 10.9      (a) A parent or guardian may operate an all-terrain vehicle 
 10.10  carrying one passenger who is under 16 18 years of age and who 
 10.11  wears a safety helmet approved by the commissioner of public 
 10.12  safety. 
 10.13     (b) For the purpose of this section, "guardian" means a 
 10.14  legal guardian of a person under age 16 18, or a person 18 or 
 10.15  older who has been authorized by the parent or legal guardian to 
 10.16  supervise the person under age 16 18. 
 10.17     (c) A person 18 years of age or older may operate an 
 10.18  all-terrain vehicle carrying one passenger who is 18 years of 
 10.19  age or older. 
 10.20     Sec. 10.  Minnesota Statutes 2003 Supplement, section 
 10.21  84.926, is amended to read: 
 10.22     84.926 [VEHICLE USE ALLOWED ON PUBLIC LANDS BY THE 
 10.23  COMMISSIONER; EXCEPTIONS.] 
 10.24     Subdivision 1.  [EXCEPTION BY PERMIT.] 
 10.25  Notwithstanding section sections 84.773 and 84.777, on a case by 
 10.26  case basis, the commissioner may issue a permit authorizing a 
 10.27  person to operate an off-highway vehicle on individual public 
 10.28  trails under the commissioner's jurisdiction and wetlands during 
 10.29  specified times and for specified purposes. 
 10.30     Subd. 2.  [ALL-TERRAIN VEHICLES; MANAGED OR LIMITED 
 10.31  FORESTS; OFF TRAIL.] Notwithstanding section 84.777, on state 
 10.32  forest lands classified as managed or limited, other than the 
 10.33  Richard J. Dorer Memorial Hardwood Forest, a person may use an 
 10.34  all-terrain vehicle off forest trails or forest roads when: 
 10.35     (1) retrieving big game or traveling to and from or 
 10.36  installing hunting stands during October, November, and 
 11.1   December, when in possession of a valid big game license; 
 11.2      (2) retrieving big game in September when in possession of 
 11.3   a valid big game hunting license; 
 11.4      (3) trapping protected furbearers during an open season, 
 11.5   when in possession of a valid trapping license for the purposes 
 11.6   of tending traps; or 
 11.7      (4) trapping minnows when in possession of a valid minnow 
 11.8   dealer, private fish hatchery, or aquatic farm license. 
 11.9      Subd. 3.  [ALL-TERRAIN VEHICLES; CLOSED FORESTS; 
 11.10  HUNTING.] Notwithstanding sections 84.773 and 84.777, on a 
 11.11  forest-by-forest basis, the commissioner may determine whether 
 11.12  all-terrain vehicles are allowed on forest roads, in state 
 11.13  forests classified as closed, for the purpose of hunting big 
 11.14  game during an open big game season.  The determination shall be 
 11.15  by written order as published in the State Register, is exempt 
 11.16  from chapter 14, and section 14.386 does not apply. 
 11.17     Subd. 4.  [OFF-ROAD AND ALL-TERRAIN VEHICLES; LIMITED OR 
 11.18  MANAGED FORESTS; TRAILS.] Notwithstanding sections 84.773 and 
 11.19  84.777, on state forest lands classified as limited or managed, 
 11.20  other than the Richard J. Dorer Memorial Hardwood Forest, a 
 11.21  person may use vehicles registered under chapter 168, or under 
 11.22  section 84.798 or 84.922, during an open big game season on 
 11.23  forest trails, unless the trail is posted closed, when in 
 11.24  possession of a valid big game license and only when traveling 
 11.25  to and from a campsite. 
 11.26     Sec. 11.  Minnesota Statutes 2002, section 84.928, 
 11.27  subdivision 2, is amended to read: 
 11.28     Subd. 2.  [OPERATION GENERALLY.] A person may not drive or 
 11.29  operate an all-terrain vehicle: 
 11.30     (1) at a rate of speed greater than reasonable or proper 
 11.31  under the surrounding circumstances; 
 11.32     (2) in a careless, reckless, or negligent manner so as to 
 11.33  endanger or to cause injury or damage to the person or property 
 11.34  of another; 
 11.35     (3) without headlight and taillight lighted at all times if 
 11.36  the vehicle is equipped with headlight and taillight; 
 12.1      (4) without a functioning stoplight if so equipped; 
 12.2      (5) in a tree nursery or planting in a manner that damages 
 12.3   or destroys growing stock; 
 12.4      (6) without a brake operational by either hand or foot; 
 12.5      (7) with more persons on the vehicle than it was designed 
 12.6   for, except as allowed under section 84.9257; 
 12.7      (8) on public lands with tires that have a tread depth 
 12.8   greater than one inch; 
 12.9      (9) at a speed exceeding ten miles per hour on the frozen 
 12.10  surface of public waters within 100 feet of a person not on an 
 12.11  all-terrain vehicle or within 100 feet of a fishing shelter; or 
 12.12     (9) (10) in a manner that violates operation rules adopted 
 12.13  by the commissioner. 
 12.14     Sec. 12.  Minnesota Statutes 2002, section 84.928, 
 12.15  subdivision 6, is amended to read: 
 12.16     Subd. 6.  [REGULATIONS BY POLITICAL SUBDIVISIONS.] (a) 
 12.17  Notwithstanding any law to the contrary, a city or town, acting 
 12.18  through its governing body, may by resolution or ordinance 
 12.19  prohibit the operation of all-terrain vehicles on city streets 
 12.20  or town roads in its jurisdiction provided the regulations are 
 12.21  otherwise consistent with sections 84.92 to 84.929. 
 12.22     (b) A county or city, or a town acting by its town board, 
 12.23  may regulate the operation of all-terrain vehicles on public 
 12.24  lands, waters, and property under its jurisdiction other than 
 12.25  public road rights-of-way within its boundaries, by resolution 
 12.26  or ordinance of the governing body and by giving appropriate 
 12.27  notice, provided:  
 12.28     (1) the regulations must be consistent with sections 84.92 
 12.29  to 84.929 and rules adopted under section 84.924; 
 12.30     (2) an ordinance may not impose a fee for the use of public 
 12.31  land or water under the jurisdiction of either the Department of 
 12.32  Natural Resources or other agency of the state, or for the use 
 12.33  of an access to it owned by the state or a county or a city; and 
 12.34     (3) an ordinance may not require an all-terrain vehicle 
 12.35  operator to possess a motor vehicle driver's license while 
 12.36  operating an all-terrain vehicle. 
 13.1      (c) Notwithstanding any law to the contrary, a county board 
 13.2   by ordinance may allow the operation of all-terrain vehicles on 
 13.3   the road right-of-way shoulder, or inside bank or slope of a 
 13.4   county highway or county state-aid highway, if: 
 13.5      (1) the highway is in the agricultural zone; or 
 13.6      (2) safe operation in the ditch or outside slope is 
 13.7   impossible, and the county posts the appropriate notice; or 
 13.8      (3) the road is designated as a minimum-maintenance road 
 13.9   under section 160.095. 
 13.10     Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 13.11  84.930, is amended to read: 
 13.12     84.930 [MOTORIZED TRAIL GRANTS-IN-AID.] 
 13.13     (a) This section applies to grants-in-aid for motorized 
 13.14  trail construction and maintenance under sections 84.794, 
 13.15  84.803, 84.83, and 84.927. 
 13.16     (b) If the commissioner of natural resources determines 
 13.17  that a grant-in-aid recipient has violated any federal or state 
 13.18  law, any local ordinance, or any of the terms of the grant 
 13.19  agreement with the commissioner, the commissioner may withhold 
 13.20  all grant payments for any work occurring after the date the 
 13.21  recipient was notified of the violation and seek restitution for 
 13.22  any property damage caused by the violation.  
 13.23     (c) A grant-in-aid recipient may appeal the commissioner's 
 13.24  decision under paragraph (b) in a contested case hearing under 
 13.25  section 14.58. 
 13.26     Sec. 14.  Minnesota Statutes 2002, section 89.19, is 
 13.27  amended to read: 
 13.28     89.19 [RULES.] 
 13.29     Subdivision 1.  [RULEMAKING AUTHORIZED.] The commissioner 
 13.30  may prescribe rules governing the use of forest lands under the 
 13.31  authority of the commissioner and state forest roads, or any 
 13.32  parts thereof, by the public and governing the exercise by 
 13.33  holders of leases or permits on forest lands and state forest 
 13.34  roads of all their rights under the leases or permits.  
 13.35     Subd. 2.  [RULEMAKING EXEMPTION.] The designation of forest 
 13.36  trails by the commissioner shall be by written order that is 
 14.1   published in the State Register.  These designations are not 
 14.2   subject to the rulemaking provisions of chapter 14 and section 
 14.3   14.386 does not apply.  Before designating forest trails, the 
 14.4   commissioner shall hold a public meeting in the county where the 
 14.5   largest portion of the forest lands are located to provide 
 14.6   information to and receive comment from the public regarding the 
 14.7   proposed trail designation.  Sixty days before the public 
 14.8   meeting, notice of the proposed forest trail shall be published 
 14.9   in the legal newspapers that serve the counties in which the 
 14.10  lands are located, in a statewide Department of Natural 
 14.11  Resources news release, and in the State Register. 
 14.12     Sec. 15.  Minnesota Statutes 2002, section 97A.133, 
 14.13  subdivision 3, is amended to read: 
 14.14     Subd. 3.  [ALL-TERRAIN VEHICLE TRAVEL WITHIN DESIGNATED 
 14.15  WILDLIFE MANAGEMENT AREAS.] (a) On lands acquired by the state 
 14.16  under chapter 84A that are designated after January 1, 1986, as 
 14.17  wildlife management areas, the commissioner shall, by January 
 14.18  15, 2004 2005, identify, designate, and sign at least 90 70 
 14.19  miles of all-terrain vehicle trails, not including public roads 
 14.20  that are maintained open to the public and open to travel by 
 14.21  other noncommercial vehicles, in corridors of disturbance that: 
 14.22     (1) the commissioner determines are appropriate to connect 
 14.23  trails, forest roads established under section 89.71, 
 14.24  subdivision 1, and public highways to provide reasonable travel 
 14.25  for all-terrain vehicles; or 
 14.26     (2) are areas of historic all-terrain vehicle use, 
 14.27  including trails that end within a wildlife management area. 
 14.28     The designated trails must be either within or contiguous 
 14.29  to the wildlife management areas.  The commissioner shall 
 14.30  consult with wildlife management area users, including both 
 14.31  motorized and nonmotorized trail users, in identifying and 
 14.32  designating trails under this paragraph.  Trail establishment 
 14.33  must be in compliance with other state and federal law.  Local 
 14.34  governments and other trail sponsors may propose the designation 
 14.35  of trails, including the designation as a grant-in-aid trail for 
 14.36  the purposes of funding under section 84.927, subdivision 2. 
 15.1      (b) The following roads shall be open to travel by 
 15.2   all-terrain vehicles when the roads are open to other 
 15.3   noncommercial vehicles: 
 15.4      (1) the Rapid River Forest Road, beginning at the west 
 15.5   boundary of the Red Lake Wildlife Management Area at the 
 15.6   southwest corner of Section 7, Township 156 North, Range 35 
 15.7   West, Beltrami County, thence in an easterly and northeasterly 
 15.8   direction through the Red Lake Wildlife Management Area to the 
 15.9   east boundary of the Red Lake Wildlife Management Area at the 
 15.10  southwest corner of Section 7, Township 157 North, Range 33 
 15.11  West, Lake of the Woods County; 
 15.12     (2) the Blanchard Forest Road, beginning at the junction of 
 15.13  the North Shore Road along the northern shore of Upper Red Lake 
 15.14  and the Blanchard State Forest Road at the west section line of 
 15.15  Section 30, Township 155 North, Range 31 West, Beltrami County, 
 15.16  thence in a westerly direction to the west section line of 
 15.17  Section 31, Township 155 North, Range 32 West; 
 15.18     (3) the Moose River Forest Road, beginning at the junction 
 15.19  of Dick's Parkway State Forest Road and the Moose River State 
 15.20  Forest Road at the southwest corner of Section 31, Township 36 
 15.21  West, Range 158 North, thence in a westerly direction along the 
 15.22  Moose River State Forest Road to the junction of Beltrami County 
 15.23  Road 706; and 
 15.24     (4) the existing west access road to the Moose River dike, 
 15.25  which is included in meeting the required all-terrain vehicle 
 15.26  trail mileage specified in paragraph (a). 
 15.27     (c) The commissioner shall sign each road and trail 
 15.28  designated under this subdivision indicating the motorized uses 
 15.29  allowed. 
 15.30     (d) During the regular firearms deer season, on all 
 15.31  wildlife management area lands within the area described in 
 15.32  paragraph (e), a person licensed to take deer may operate an 
 15.33  all-terrain vehicle: 
 15.34     (1) before legal shooting hours; 
 15.35     (2) after legal shooting hours; and 
 15.36     (3) from 11:00 a.m. to 2:00 p.m. 
 16.1      (e) Paragraph (d) applies from where State Highway No. 1 
 16.2   intersects the west boundary of the Red Lake Indian Reservation, 
 16.3   then west to State Highway No. 219, then north on State Highway 
 16.4   No. 219 to State Highway No. 89, then north on State Highway No. 
 16.5   89 to County Highway No. 6, then east on County Highway No. 6 to 
 16.6   County Highway No. 54 and County Highway No. 1 
 16.7   (Beltrami/Marshall county line) then north along the 
 16.8   Beltrami/Marshall county line to Roseau county line, then east 
 16.9   on Beltrami/Roseau county line to Dick's Parkway, then south on 
 16.10  Dick's Parkway to County Road No. 704, Beltrami County, then 
 16.11  south to County State-Aid Highway No. 44 to Fourtown, then south 
 16.12  on State Highway No. 89 to the north boundary of the Red Lake 
 16.13  Indian Reservation, then west and south following the boundary 
 16.14  of the Red Lake Indian Reservation to where it intersects State 
 16.15  Highway No. 1. 
 16.16     (f) For the purposes of this subdivision, "corridors of 
 16.17  disturbance" means rights-of-way such as ditches, ditch banks, 
 16.18  transmission lines, pipelines, permanent roads, winter roads, 
 16.19  and recreational trails.  The existence of a corridor of 
 16.20  disturbance eligible for corridor designation may be 
 16.21  demonstrated by physical evidence, document recorded in the 
 16.22  office of the county recorder or other public official, aerial 
 16.23  survey, or other evidence similar to the above.  Cross-country 
 16.24  motorized use of land shall not cause that land to be considered 
 16.25  a corridor of disturbance. 
 16.26     Sec. 16.  Laws 2003, chapter 128, article 1, section 167, 
 16.27  subdivision 1, is amended to read: 
 16.28     Subdivision 1.  [FOREST CLASSIFICATION STATUS REVIEW.] (a) 
 16.29  By December 31, 2006, the commissioner of natural resources 
 16.30  shall complete a review of the forest classification status of 
 16.31  all state forests classified as managed or limited, all forest 
 16.32  lands under the authority of the commissioner as defined in 
 16.33  Minnesota Statutes, section 89.001, subdivision 13, and lands 
 16.34  managed by the commissioner under Minnesota Statutes, section 
 16.35  282.011.  The review must be conducted on a forest-by-forest and 
 16.36  area-by-area basis in accordance with the process and criteria 
 17.1   under Minnesota Rules, part 6100.1950.  After each forest is 
 17.2   reviewed, the commissioner must change its status to limited or 
 17.3   closed, and must provide a similar status for each of the other 
 17.4   areas subject to review under this section after each individual 
 17.5   review is completed.  
 17.6      (b) If the commissioner determines on January 1, 2005, that 
 17.7   the review required under this section cannot be completed by 
 17.8   December 31, 2006, the completion date for the review shall be 
 17.9   extended to December 31, 2008.  By January 15, 2005, the 
 17.10  commissioner shall report to the chairs of the legislative 
 17.11  committees with jurisdiction over natural resources policy and 
 17.12  finance regarding the status of the process required by this 
 17.13  section.  
 17.14     (c) Until December 31, 2010, the state forests and areas 
 17.15  subject to review under this section are exempt from Minnesota 
 17.16  Statutes, section 84.777, unless an individual forest or area 
 17.17  has been classified as limited or closed.  
 17.18     Sec. 17.  [PROCEDURES AND CRITERIA FOR GRANTS-IN-AID 
 17.19  TRAILS.] 
 17.20     (a) The commissioner of natural resources shall establish 
 17.21  procedures and criteria, by written order, published in the 
 17.22  State Register to:  
 17.23     (1) increase the level of oversight that the commissioner 
 17.24  provides off-highway vehicle grants-in-aid trails and not rely 
 17.25  on indirect and ad hoc oversight.  The commissioner shall 
 17.26  develop and adopt a process that requires clubs to submit plans 
 17.27  before major trail work on public land is carried out and 
 17.28  requires the commissioner to inspect the trail work after it is 
 17.29  completed; 
 17.30     (2) prohibit a local government sponsor from assigning 
 17.31  oversight responsibility for snowmobile or off-highway vehicle 
 17.32  trail grants to a local government official who serves as an 
 17.33  officer or bookkeeper of a grant recipient; and 
 17.34     (3) require a wetlands inspection by a trained professional 
 17.35  when a grant recipient proposes draining or filling a wetland 
 17.36  for an existing or new off-highway vehicle trail alignment, to 
 18.1   determine whether a wetland permit or replacement plan is 
 18.2   required. 
 18.3      (b) Procedures and criteria under this section are not 
 18.4   subject to the rulemaking provisions in Minnesota Statutes, 
 18.5   chapter 14, and Minnesota Statutes, section 14.386, does not 
 18.6   apply.