1.1 	A bill for an act
1.2 	relating to state government; appropriating money from constitutionally dedicated 
1.3 	funds; modifying certain statutory provisions and laws for environment, natural 
1.4 	resources, outdoor heritage, and energy; modifying fees, accounts, disposition 
1.5 	of certain receipts, and audit requirements; providing for certain registration, 
1.6 	training, and licensing exemptions; modifying outdoor recreation and recreational 
1.7 	vehicle provisions; modifying the Water Law; regulating public utilities; 
1.8 	modifying and establishing programs; requiring studies and reports; modifying 
1.9 	and requiring the transfer of appropriations; appropriating money;amending 
1.10 	Minnesota Statutes 2008, sections 3.8851, subdivision 7; 3.9741, by adding a 
1.11 	subdivision; 84.025, subdivision 9; 84.027, subdivision 15; 84.0856; 84.0857; 
1.12 	84.415, by adding a subdivision; 84.777, subdivision 2; 84.788, subdivision 
1.13 	2; 84.798, subdivision 2; 84.82, subdivisions 3, 6, by adding a subdivision; 
1.14 	84.8205, subdivision 1; 84.92, subdivisions 9, 10; 84.922, subdivision 5, by 
1.15 	adding a subdivision; 84.925, subdivision 1; 84.9256, subdivision 1; 84.928, 
1.16 	subdivision 5; 84D.10, by adding a subdivision; 84D.13, subdivision 5; 85.015, 
1.17 	subdivision 14; 85.052, subdivision 4; 85.22, subdivision 5; 85.32, subdivision 1; 
1.18 	85.41, subdivision 3; 85.42; 85.43; 85.46, as amended; 86B.301, subdivision 2; 
1.19 	86B.501, by adding a subdivision; 88.17, subdivisions 1, 3; 88.79, subdivision 2; 
1.20 	89.17; 90.041, by adding a subdivision; 90.121; 90.14; 97A.056, subdivision 5, 
1.21 	by adding subdivisions; 97B.665, subdivision 2; 103A.305; 103B.702, by adding 
1.22 	a subdivision; 103G.271, subdivision 3; 103G.285, subdivision 5; 103G.301, 
1.23 	subdivision 6; 103G.305, subdivision 2; 103G.315, subdivision 11; 103G.515, 
1.24 	subdivision 5; 103G.615, subdivision 2; 115.55, by adding a subdivision; 116.07, 
1.25 	subdivisions 4, 4h; 116C.779, subdivision 1; 116D.04, subdivision 2a, by adding 
1.26 	a subdivision; 116J.437, subdivision 1; 216B.16, subdivisions 14, 15; 216B.2401; 
1.27 	216B.62, by adding a subdivision; 290.431; 290.432; 326B.106, subdivision 
1.28 	12; 473.1565, subdivision 2; Minnesota Statutes 2009 Supplement, sections 
1.29 	84.415, subdivision 6; 84.793, subdivision 1; 84.922, subdivision 1a; 84.9275, 
1.30 	subdivision 1; 84.928, subdivision 1; 85.015, subdivision 13; 85.053, subdivision 
1.31 	10; 85.53, subdivision 2, by adding a subdivision; 86A.09, subdivision 1; 
1.32 	97A.056, subdivision 3; 103G.201; 114D.50, by adding a subdivision; 129D.17, 
1.33 	subdivision 2; Laws 1981, chapter 222, sections 1; 2; 3; 4, subdivision 2; 
1.34 	Laws 2009, chapter 37, article 2, section 13; Laws 2009, chapter 138, article 2, 
1.35 	section 4; Laws 2009, chapter 172, article 2, section 4; article 5, sections 8; 10; 
1.36 	Laws 2010, chapter 215, article 3, section 4, subdivision 10; proposing coding 
1.37 	for new law in Minnesota Statutes, chapters 103A; 103G; 116C; 216B; 383B; 
1.38 	repealing Minnesota Statutes 2008, sections 90.172; 97B.665, subdivision 1; 
1.39 	103G.295; 103G.650; Minnesota Statutes 2009 Supplement, sections 3.3006; 
2.1 	84.02, subdivisions 4a, 6a, 6b; 88.795; Laws 1981, chapter 222, section 7; Laws 
2.2 	2009, chapter 172, article 5, section 9.
2.3 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.4 	ARTICLE 1
2.5 	OUTDOOR HERITAGE

2.6	Section 1. OUTDOOR HERITAGE APPROPRIATION.
 	
2.7 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.8 	agencies and for the purposes specified in this article. The appropriations are from the 
2.9 	outdoor heritage fund and are available for the fiscal years indicated for each purpose. The 
2.10 	figures "2010" and "2011" used in this article mean that the appropriations listed under 
2.11 	them are available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively. 
2.12 	"The first year" is fiscal year 2010. "The second year" is fiscal year 2011. "The biennium" 
2.13 	is fiscal years 2010 and 2011. The appropriations in this article are onetime.

2.14				APPROPRIATIONS
	
2.15				Available for the Year
	
2.16				Ending June 30
	
2.17					2010
		2011

2.18	Sec. 2. OUTDOOR HERITAGE

2.19	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	58,939,000
	
2.20 	This appropriation is from the outdoor 
2.21 	heritage fund. The amounts that may be 
2.22 	spent for each purpose are specified in the 
2.23 	following subdivisions.

2.24	Subd. 2.Prairies
 		-0-
		18,093,000

2.25
2.26	(a) Accelerated Prairie Grassland Restoration 
and Enhancement Program on DNR Lands
					
2.27 	$5,833,000 in fiscal year 2011 is to the 
2.28 	commissioner of natural resources to 
2.29 	accelerate the protection, restoration, and 
2.30 	enhancement of native prairie vegetation. 
2.31 	A list of proposed land acquisitions, 
2.32 	restorations, and enhancements, describing 
2.33 	the types and locations of acquisitions, 
2.34 	restorations, and enhancements, must 
3.1 	be provided as part of the required 
3.2 	accomplishment plan. All restorations must 
3.3 	comply with subdivision 9, paragraph (b). 

3.4	(b) The Green Corridor Legacy Program
					
3.5 	$1,651,000 in fiscal year 2011 is to the 
3.6 	commissioner of natural resources for 
3.7 	an agreement with the Redwood Area 
3.8 	Communities Foundation to acquire and 
3.9 	restore land for purposes allowed under 
3.10 	the Minnesota Constitution, article XI, 
3.11 	section 15, in Redwood, Renville, Brown, 
3.12 	Nicollet, Murray, Lyon, Yellow Medicine, 
3.13 	Chippewa, and Cottonwood Counties to be 
3.14 	added to the state outdoor recreation system 
3.15 	as defined in Minnesota Statutes, chapter 
3.16 	86A. A list of proposed fee title acquisitions 
3.17 	must be provided as part of the required 
3.18 	accomplishment plan. The commissioner of 
3.19 	natural resources must agree in writing to 
3.20 	each proposed acquisition. All restorations 
3.21 	must comply with subdivision 9, paragraph 
3.22 	(b). 

3.23
3.24	(c) Prairie Heritage Fund - Acquisition and 
Restoration
					
3.25 	$3,015,000 in fiscal year 2011 is to the 
3.26 	commissioner of natural resources for an 
3.27 	agreement with Pheasants Forever to acquire 
3.28 	and restore land to be added to the state 
3.29 	wildlife management area system. A list 
3.30 	of proposed fee title acquisitions and a list 
3.31 	of proposed restoration projects, describing 
3.32 	the types and locations of restorations, 
3.33 	must be provided as part of the required 
3.34 	accomplishment plan. The commissioner of 
3.35 	natural resources must agree in writing to 
4.1 	each proposed acquisition. All restorations 
4.2 	must comply with subdivision 9, paragraph 
4.3 	(b). 

4.4
4.5	(d) Northern Tallgrass Prairie National 
Wildlife Refuge Protection
					
4.6 	$2,041,000 in fiscal year 2011 is to the 
4.7 	commissioner of natural resources for an 
4.8 	agreement with The Nature Conservancy 
4.9 	to acquire land or permanent easements 
4.10 	within the Northern Tallgrass Prairie Habitat 
4.11 	Preservation Area in western Minnesota for 
4.12 	addition to the Northern Tallgrass Prairie 
4.13 	National Wildlife Refuge. A list of proposed 
4.14 	fee title and permanent easement acquisitions 
4.15 	must be provided as part of the required 
4.16 	accomplishment plan. The accomplishment 
4.17 	plan must include an easement stewardship 
4.18 	plan.

4.19	(e) Rum River - Cedar Creek Initiative
					
4.20 	$1,900,000 in fiscal year 2011 is to the 
4.21 	commissioner of natural resources for an 
4.22 	agreement with Anoka County to acquire fee 
4.23 	title to land at the confluence of the Rum 
4.24 	River and Cedar Creek in Anoka County. 
4.25 	Land acquired in fee must remain open to 
4.26 	hunting and fishing, consistent with the 
4.27 	capacity of the land, during the open season, 
4.28 	as determined in writing by the commissioner 
4.29 	of natural resources. All restorations must 
4.30 	comply with subdivision 9, paragraph (b).  

4.31	(f) Minnesota Prairie Recovery Project
					
4.32 	$3,653,000 in fiscal year 2011 is to the 
4.33 	commissioner of natural resources for an 
4.34 	agreement with The Nature Conservancy 
4.35 	for a pilot project to acquire interests in 
5.1 	land and restore and enhance prairie and 
5.2 	prairie/wetland habitat in the prairie regions 
5.3 	of western and southwestern Minnesota. 
5.4 	The Nature Conservancy may acquire land 
5.5 	in fee or through permanent conservation 
5.6 	easements. A list of proposed fee title and 
5.7 	permanent conservation easements, and a list 
5.8 	of proposed restorations and enhancements, 
5.9 	must be provided as part of the required 
5.10 	accomplishment plan. All restorations must 
5.11 	comply with subdivision 9, paragraph (b). 
5.12 	The commissioner of natural resources must 
5.13 	agree in writing to each acquisition of interest 
5.14 	in land, restoration project, and enhancement 
5.15 	project. The accomplishment plan must 
5.16 	include an easement stewardship plan.

5.17	Subd. 3.Forests
 		-0-
		5,603,000

5.18
5.19	(a) Critical Shoreline Habitat Protection 
Program
					
5.20 	$816,000 in fiscal year 2011 is to the 
5.21 	commissioner of natural resources for an 
5.22 	agreement with the Minnesota Land Trust to 
5.23 	acquire permanent conservation easements 
5.24 	protecting critical shoreline habitats in 
5.25 	Koochiching, Cook, Lake, and St. Louis 
5.26 	County portions of the northern forest 
5.27 	area in northern Minnesota and provide 
5.28 	stewardship for those easements. A list of 
5.29 	proposed conservation easement acquisitions 
5.30 	must be provided as part of the required 
5.31 	accomplishment plan. The accomplishment 
5.32 	plan must include an easement stewardship 
5.33 	plan.

5.34
5.35	(b) Protect Key Industrial Forest Land Tracts 
in Central Minnesota
					
6.1 	$594,000 in fiscal year 2011 is to the 
6.2 	commissioner of natural resources for an 
6.3 	agreement with Cass County to acquire lands 
6.4 	that assist with gaining access for restoration 
6.5 	and enhancement purposes to existing public 
6.6 	land tracts. A list of proposed acquisitions 
6.7 	must be provided as part of the required 
6.8 	accomplishment plan.

6.96.10
	(c) Little Nokasippi River Wildlife 
Management Area
					
6.11 	$843,000 in fiscal year 2011 is to the 
6.12 	commissioner of natural resources 
6.13 	for acceleration of agency programs and 
6.14 	cooperative agreements to acquire interests in 
6.15 	land within the boundaries of the Minnesota 
6.16 	National Guard Army compatible use buffer 
6.17 	(ACUB) program. Of this appropriation, 
6.18 	$225,000 is for the Department of Natural 
6.19 	Resources to acquire land for wildlife 
6.20 	management areas and $618,000 is for an 
6.21 	agreement with the Board of Water and Soil 
6.22 	Resources to acquire permanent conservation 
6.23 	easements. A list of proposed acquisitions 
6.24 	must be provided as part of the required 
6.25 	accomplishment plan.

6.26
6.27	(d) Accelerated Forest Wildlife Habitat 
Program
					
6.28 	$1,791,000 in fiscal year 2011 is to the 
6.29 	commissioner of natural resources for 
6.30 	acceleration of agency programs to acquire, 
6.31 	in fee, land for state forests and restore and 
6.32 	enhance state forest habitat. A list of projects 
6.33 	including proposed fee title acquisitions 
6.34 	and restorations and enhancements must 
6.35 	be provided as part of the required 
7.1 	accomplishment plan. All restorations must 
7.2 	comply with subdivision 9, paragraph (b). 

7.3
7.4	(e) Northeastern Minnesota Sharp-Tailed 
Grouse Habitat
					
7.5 	$1,559,000 in fiscal year 2011 is to the 
7.6 	commissioner of natural resources for an 
7.7 	agreement with Pheasants Forever to acquire 
7.8 	interests in land, and to restore and enhance 
7.9 	habitat for sharp-tailed grouse in Kanabec, 
7.10 	Aitkin, and St. Louis Counties in cooperation 
7.11 	with the Minnesota Sharp-Tailed Grouse 
7.12 	Society. A list of proposed acquisitions 
7.13 	and a list of proposed restorations and 
7.14 	enhancements must be provided as part of 
7.15 	the required accomplishment plan. The 
7.16 	commissioner of natural resources must 
7.17 	agree in writing to each acquisition of interest 
7.18 	in land, restoration project, and enhancement 
7.19 	project. All restorations must comply with 
7.20 	subdivision 9, paragraph (b). 

7.21	Subd. 4.Wetlands
 		-0-
		16,905,000

7.22
7.23	(a) Accelerated Shallow Lake and Wetland 
Enhancement and Restoration Program
					
7.24 	$6,505,000 in fiscal year 2011 is to the 
7.25 	commissioner of natural resources to assess, 
7.26 	enhance, and restore shallow lake and 
7.27 	wetland habitats, to acquire land in fee or 
7.28 	through permanent conservation easements 
7.29 	for shallow lake program restoration, and to 
7.30 	provide stewardship for acquired easements 
7.31 	in cooperation with Ducks Unlimited, Inc. 
7.32 	Of this appropriation, $1,463,000 is for the 
7.33 	Department of Natural Resources agency 
7.34 	program acceleration and $5,042,000 is for 
7.35 	an agreement with Ducks Unlimited, Inc. A 
7.36 	list of proposed projects, describing the types 
8.1 	and locations of land acquisitions, restoration 
8.2 	projects, and enhancement projects, 
8.3 	must be provided as part of the required 
8.4 	accomplishment plan. The commissioner 
8.5 	of natural resources must agree in writing 
8.6 	to each acquisition, restoration project, and 
8.7 	enhancement project. The accomplishment 
8.8 	plan must include an easement stewardship 
8.9 	plan. All restorations must comply with 
8.10 	subdivision 9, paragraph (b).

8.11
8.12	(b) Accelerate the Waterfowl Production Area 
Program in Minnesota
					
8.13 	$3,505,000 in fiscal year 2011 is to the 
8.14 	commissioner of natural resources for 
8.15 	an agreement with Pheasants Forever to 
8.16 	acquire and restore wetland and related 
8.17 	upland habitats, in cooperation with the 
8.18 	United States Fish and Wildlife Service 
8.19 	and Ducks Unlimited, Inc., to be managed 
8.20 	as waterfowl production areas. A list of 
8.21 	proposed acquisitions and a list of proposed 
8.22 	projects, describing the types and locations 
8.23 	of restorations, must be provided as part 
8.24 	of the required accomplishment plan. All 
8.25 	restorations must comply with subdivision 
8.26 	9, paragraph (b).

8.27
8.28	(c) Reinvest in Minnesota Wetlands Reserve 
Program Acquisition and Restoration
					
8.29 	$6,895,000 in fiscal year 2011 is to the Board 
8.30 	of Water and Soil Resources to acquire 
8.31 	permanent conservation easements and 
8.32 	restore wetlands and associated uplands 
8.33 	in cooperation with the United States 
8.34 	Department of Agriculture Wetlands Reserve 
8.35 	Program. A list of proposed acquisitions 
8.36 	and a list of proposed projects, describing 
9.1 	the types and locations of restorations, 
9.2 	must be provided as part of the required 
9.3 	accomplishment plan. All restorations must 
9.4 	comply with subdivision 9, paragraph (b).

9.5	Subd. 5.Habitat
 		-0-
		17,563,000

9.6	(a) Metro Big Rivers Habitat Program
					
9.7 	$2,397,000 in fiscal year 2011 is to 
9.8 	the commissioner of natural resources 
9.9 	for agreements for projects to protect, 
9.10 	restore, and enhance natural systems of 
9.11 	the Minnesota River, St. Croix River, 
9.12 	Mississippi River, and their major tributaries 
9.13 	as follows: $500,000 with Minnesota Valley 
9.14 	National Wildlife Refuge Trust, Inc. for 
9.15 	fee title land acquisition; $1,500,000 with 
9.16 	the Trust for Public Land for fee title land 
9.17 	acquisition; $227,300 with the Friends 
9.18 	of the Mississippi River for restoration, 
9.19 	enhancement, and conservation easement 
9.20 	acquisition; and $169,700 with Great River 
9.21 	Greening for restoration and enhancement. 
9.22 	The accomplishment plan must include an 
9.23 	easement stewardship plan. All restorations 
9.24 	must comply with subdivision 9, paragraph 
9.25 	(b).

9.26
9.27	(b) Accelerated Aquatic Management Area 
Acquisition
					
9.28 	$3,416,000 in fiscal year 2011 is to the 
9.29 	commissioner of natural resources to 
9.30 	accelerate land acquisition by fee title and 
9.31 	easements to be added to the state aquatic 
9.32 	management area system as defined in 
9.33 	Minnesota Statutes, chapter 86A, and to 
9.34 	restore and enhance stream habitat and lake 
9.35 	habitat. Land acquired in fee must remain 
10.1 	open to hunting and fishing, consistent 
10.2 	with the capacity of the land, during the 
10.3 	open season, as determined in writing by 
10.4 	the commissioner of natural resources. 
10.5 	A list of proposed fee title and easement 
10.6 	acquisitions, stream habitat restorations and 
10.7 	enhancements, and lake habitat restorations 
10.8 	and enhancements must be provided as part 
10.9 	of the required accomplishment plan.

10.10
10.11	(c) Cold Water River and Stream Restoration, 
Protection, and Enhancement
					
10.12 	$1,269,000 in fiscal year 2011 is to the 
10.13 	commissioner of natural resources for 
10.14 	an agreement with Trout Unlimited to 
10.15 	restore, enhance, and protect cold water 
10.16 	river and stream habitats in Minnesota. A 
10.17 	list of proposed acquisitions and a list of 
10.18 	proposed projects, describing the types and 
10.19 	locations of restorations and enhancements, 
10.20 	must be provided as part of the required 
10.21 	accomplishment plan. The commissioner of 
10.22 	natural resources must agree in writing to 
10.23 	each proposed acquisition, restoration, and 
10.24 	enhancement. All restorations must comply 
10.25 	with subdivision 9, paragraph (b).

10.26
10.27	(d) Dakota County Riparian and Lakeshore 
Protection and Restoration
					
10.28 	$2,097,000 in fiscal year 2011 is to the 
10.29 	commissioner of natural resources for 
10.30 	an agreement with Dakota County for 
10.31 	acquisition of permanent easements and 
10.32 	enhancement and restoration of aquatic 
10.33 	and associated upland habitat. A list of 
10.34 	proposed acquisitions and restorations 
10.35 	must be provided as part of the required 
10.36 	accomplishment plan. The accomplishment 
11.1 	plan must include an easement stewardship 
11.2 	plan. All restorations must comply with 
11.3 	subdivision 9, paragraph (b).

11.4	(e) Valley Creek Protection Partnership
					
11.5 	$1,218,000 in fiscal year 2011 is to the 
11.6 	commissioner of natural resources for 
11.7 	agreements on projects to protect, restore, 
11.8 	and enhance natural systems of Valley Creek 
11.9 	in Washington County as follows: $838,000 
11.10 	with Minnesota Land Trust; $218,000 with 
11.11 	Washington County; $100,000 with the 
11.12 	Belwin Conservancy; $50,000 with Trout 
11.13 	Unlimited; and $12,000 with the Valley 
11.14 	Branch Watershed District. All restorations 
11.15 	must comply with subdivision 9, paragraph 
11.16 	(b).

11.17
11.18	(f) Anoka Sand Plain Restoration and 
Enhancement
					
11.19 	$747,000 in fiscal year 2011 is to the 
11.20 	commissioner of natural resources for 
11.21 	an agreement with Great River Greening 
11.22 	to restore and enhance habitat on public 
11.23 	property in the Anoka Sand Plain in Anoka, 
11.24 	Chisago, Isanti, Benton, Washington, 
11.25 	Morrison, and Sherburne Counties. All 
11.26 	restorations must comply with subdivision 
11.27 	9, paragraph (b).

11.28
11.29	(g) Lower Mississippi River Habitat 
Restoration Acceleration
					
11.30 	$1,000,000 in fiscal year 2011 is to 
11.31 	the commissioner of natural resources 
11.32 	to accelerate agency programs and for 
11.33 	cooperative agreements to acquire land in 
11.34 	the Root River watershed. A list of proposed 
11.35 	acquisitions must be provided as part of 
12.1 	the required accomplishment plan. The 
12.2 	commissioner of natural resources must 
12.3 	agree in writing to each proposed acquisition, 
12.4 	restoration, and enhancement. All 
12.5 	restorations must comply with subdivision 
12.6 	9, paragraph (b). 

12.7
12.8	(h) Washington County St. Croix River Land 
Protection
					
12.9 	$1,033,000 in fiscal year 2011 is to the 
12.10 	commissioner of natural resources for an 
12.11 	agreement with Washington County to 
12.12 	acquire permanent easements to protect 
12.13 	habitat associated with the St. Croix River 
12.14 	Valley. A list of proposed acquisitions 
12.15 	must be provided as part of the required 
12.16 	accomplishment plan. The accomplishment 
12.17 	plan must include an easement stewardship 
12.18 	plan.

12.19
12.20	(i) Outdoor Heritage Conservation Partners 
Grant Program
					
12.21 	$4,386,000 in fiscal year 2011 is to the 
12.22 	commissioner of natural resources for a 
12.23 	program to provide competitive, matching 
12.24 	grants of up to $400,000 to local, regional, 
12.25 	state, and national organizations, including 
12.26 	government, for enhancement, restoration, 
12.27 	or protection of forests, wetlands, prairies, 
12.28 	and habitat for fish, game, or wildlife 
12.29 	in Minnesota. Up to four percent of 
12.30 	this appropriation may be used by the 
12.31 	commissioner of natural resources for 
12.32 	administering the grant program. Grantees 
12.33 	may acquire land or interests in land. 
12.34 	Easements must be permanent. Land 
12.35 	acquired in fee must be open to hunting 
12.36 	and fishing during the open season unless 
13.1 	otherwise provided by state law. The 
13.2 	commissioner of natural resources must 
13.3 	agree in writing to each proposed acquisition 
13.4 	of land or interest in land. The program 
13.5 	shall require a match of at least ten percent 
13.6 	from nonstate sources for grants of $100,000 
13.7 	or less and a match of at least 15 percent 
13.8 	from nonstate sources for grants over 
13.9 	$100,000. Up to one-third of the match 
13.10 	may be in-kind resources. The criteria 
13.11 	for evaluating grant applications must 
13.12 	include, in a balanced and equally weighted 
13.13 	order of precedence, the amount of habitat 
13.14 	restored, enhanced, or protected; local 
13.15 	support; degree of collaboration; urgency; 
13.16 	capacity to achieve multiple benefits; 
13.17 	habitat benefits provided; consistency with 
13.18 	current conservation science; adjacency 
13.19 	to protected lands; full funding of the 
13.20 	project; supplementing existing funding; 
13.21 	public access for hunting and fishing during 
13.22 	the open season; sustainability; and use 
13.23 	of native plant materials. All projects 
13.24 	must conform to the Minnesota statewide 
13.25 	conservation and preservation plan. Wildlife 
13.26 	habitat projects must also conform to the 
13.27 	Minnesota wildlife action plan. Subject to 
13.28 	the evaluation criteria and requirements 
13.29 	of this paragraph and Minnesota Statutes, 
13.30 	the commissioner of natural resources 
13.31 	shall give priority to organizations that 
13.32 	have a history or charter to receive private 
13.33 	contributions for local conservation or 
13.34 	habitat projects when evaluating projects of 
13.35 	equal value. Priority may be given to projects 
13.36 	acquiring land or easements associated 
14.1 	with existing wildlife management areas. 
14.2 	All restoration or enhancement projects 
14.3 	must be on land permanently protected by 
14.4 	conservation easement or public ownership 
14.5 	or in public waters as defined in Minnesota 
14.6 	Statutes, section 103G.005, subdivision 15. 
14.7 	Subdivision 9 applies to grants awarded 
14.8 	under this paragraph. All restorations must 
14.9 	comply with subdivision 9, paragraph (b). 
14.10 	This appropriation is available until June 
14.11 	30, 2014, at which time all grant project 
14.12 	work must be completed and final products 
14.13 	delivered, unless an earlier date is specified 
14.14 	in the grant agreement. No less than five 
14.15 	percent of the amount of each grant must 
14.16 	be held back from reimbursement until 
14.17 	the grant recipient has completed a grant 
14.18 	accomplishment report by the deadline and 
14.19 	in the form prescribed by and satisfactory to 
14.20 	the Lessard-Sams Outdoor Heritage Council.

14.21	Subd. 6.Administration and Other
 		0
		775,000

14.22	(a) Contract Management
					
14.23 	$175,000 in fiscal year 2011 is to the 
14.24 	commissioner of natural resources for 
14.25 	contract management duties assigned in this 
14.26 	section.

14.27	(b) Legislative Coordinating Commission
					
14.28 	$600,000 in fiscal year 2011 is to the 
14.29 	Legislative Coordinating Commission for 
14.30 	administrative expenses of the Lessard-Sams 
14.31 	Outdoor Heritage Council and for 
14.32 	compensation and expense reimbursement 
14.33 	of council members. 

14.34	Subd. 7.Availability of Appropriation
 					
15.1 	Money appropriated in this section may 
15.2 	not be spent on activities unless they are 
15.3 	directly related to and necessary for a 
15.4 	specific appropriation and are specified in the 
15.5 	accomplishment plan. Money appropriated 
15.6 	in this section must not be spent on indirect 
15.7 	costs or other institutional overhead charges. 
15.8 	Unless otherwise provided, the amounts 
15.9 	in this section are available until June 30, 
15.10 	2013, when projects must be completed and 
15.11 	final accomplishments reported. Funds for 
15.12 	restoration or enhancement are available 
15.13 	until June 30, 2015, or four years after 
15.14 	acquisition, whichever is later, in order to 
15.15 	complete restoration or enhancement work. 
15.16 	If a project receives federal funds, the time 
15.17 	period of the appropriation is extended to 
15.18 	equal the availability of federal funding. 
15.19 	Funds appropriated for fee title acquisition of 
15.20 	land may be used to restore and enhance land 
15.21 	acquired with the appropriation.

15.22	Subd. 8.Accomplishment Plans
 					
15.23 	It is a condition of acceptance of the 
15.24 	appropriations made by this section that the 
15.25 	agency or entity using the appropriation shall 
15.26 	submit to the council an accomplishment 
15.27 	plan and periodic accomplishment 
15.28 	reports in the form determined by the 
15.29 	Lessard-Sams Outdoor Heritage Council. 
15.30 	The accomplishment plan must account for 
15.31 	the use of the appropriation and outcomes 
15.32 	of the expenditure in measures of wetlands, 
15.33 	prairies, forests, and fish, game, and wildlife 
15.34 	habitat restored, protected, and enhanced. 
15.35 	The plan must include an evaluation of 
15.36 	results. None of the money provided in this 
16.1 	section may be expended unless the council 
16.2 	has approved the pertinent accomplishment 
16.3 	plan.

16.4	Subd. 9.Project Requirements
 					
16.5 	(a) As a condition of accepting an 
16.6 	appropriation in this section, any agency 
16.7 	or entity receiving an appropriation must 
16.8 	comply with this subdivision for any project 
16.9 	funded in whole or in part with funds from 
16.10 	the appropriation.
16.11 	(b) To the extent possible, a person 
16.12 	conducting restoration with money 
16.13 	appropriated in this section must plant 
16.14 	vegetation or sow seed only of ecotypes 
16.15 	native to Minnesota, and preferably of the 
16.16 	local ecotype, using a high diversity of 
16.17 	species originating from as close to the 
16.18 	restoration site as possible, and protect 
16.19 	existing native prairies, grasslands, forests, 
16.20 	wetlands, and other aquatic systems from 
16.21 	genetic contamination.
16.22 	(c) All conservation easements acquired with 
16.23 	money appropriated in this section must: (1) 
16.24 	be permanent; (2) specify the parties to an 
16.25 	easement; (3) specify all of the provisions 
16.26 	of an agreement that are permanent; (4) 
16.27 	specify the habitat types and location 
16.28 	being protected; (5) where appropriate for 
16.29 	conservation or water protection outcomes, 
16.30 	require the grantor to employ practices 
16.31 	retaining water on the eased land as long as 
16.32 	practicable; (6) specify the responsibilities 
16.33 	of the parties for habitat enhancement and 
16.34 	restoration and the associated costs of these 
16.35 	activities; (7) be sent to the office of the 
17.1 	Lessard-Sams Outdoor Heritage Council; (8) 
17.2 	include a long-term stewardship plan and 
17.3 	identify the sources and amount of funding 
17.4 	for monitoring and enforcing the easement 
17.5 	agreement; and (9) identify the parties 
17.6 	responsible for monitoring and enforcing the 
17.7 	easement agreement.
17.8 	(d) For all restorations, a recipient must 
17.9 	prepare and retain an ecological restoration 
17.10 	and management plan that, to the degree 
17.11 	practicable, is consistent with current 
17.12 	conservation science and ecological goals 
17.13 	for the restoration site. Consideration should 
17.14 	be given to soil, geology, topography, and 
17.15 	other relevant factors that would provide 
17.16 	the best chance for long-term success of the 
17.17 	restoration projects. The plan shall include 
17.18 	the proposed timetable for implementing 
17.19 	the restoration, including, but not limited 
17.20 	to, site preparation, establishment of 
17.21 	diverse plant species, maintenance, and 
17.22 	additional enhancement to establish the 
17.23 	restoration; identify long-term maintenance 
17.24 	and management needs of the restoration 
17.25 	and how the maintenance, management, and 
17.26 	enhancement will be financed; and use the 
17.27 	current conservation science to achieve the 
17.28 	best restoration.
17.29 	(e) For new lands acquired, a recipient 
17.30 	must prepare a restoration and management 
17.31 	plan in compliance with paragraph (d), 
17.32 	including identification of sufficient funding 
17.33 	for implementation.
17.34 	(f) To ensure public accountability for the 
17.35 	use of public funds, a recipient must provide 
18.1 	to the Lessard-Sams Outdoor Heritage 
18.2 	Council documentation of the selection 
18.3 	process used to identify parcels acquired 
18.4 	in fee or permanent conservation easement 
18.5 	and provide the council with documentation 
18.6 	of all related transaction costs, including, 
18.7 	but not limited to, appraisals, legal fees, 
18.8 	recording fees, commissions, other similar 
18.9 	costs, and donations. This information 
18.10 	must be provided for all parties involved 
18.11 	in the transaction. The recipient shall 
18.12 	also report to the Lessard-Sams Outdoor 
18.13 	Heritage Council any difference between the 
18.14 	acquisition amount paid to the seller and the 
18.15 	state-certified or state-reviewed appraisal, if 
18.16 	a state-certified or state-reviewed appraisal 
18.17 	was conducted. Acquisition data such 
18.18 	as appraisals may remain private during 
18.19 	negotiations but must ultimately be made 
18.20 	public according to Minnesota Statutes, 
18.21 	chapter 13.
18.22 	(g) Except as otherwise provided in this 
18.23 	section, all restoration and enhancement 
18.24 	projects funded with money appropriated in 
18.25 	this section must be on land permanently 
18.26 	protected by a conservation easement or 
18.27 	public ownership or in public waters as 
18.28 	defined in Minnesota Statutes, section 
18.29 	103G.005, subdivision 15.
18.30 	(h) To the extent an appropriation is used to 
18.31 	acquire an interest in real property, a recipient 
18.32 	of an appropriation under this section must 
18.33 	provide to the Lessard-Sams Outdoor 
18.34 	Heritage Council and the commissioner 
18.35 	of management and budget an analysis of 
18.36 	increased operations and maintenance costs 
19.1 	likely to be incurred by public entities as 
19.2 	a result of the acquisition and of how these 
19.3 	costs are to be paid.
19.4 	(i) A recipient of money from an 
19.5 	appropriation in this section must give 
19.6 	consideration to and make timely written 
19.7 	contact with the Minnesota Conservation 
19.8 	Corps or its successor for consideration of 
19.9 	possible use of their services to contract for 
19.10 	restoration and enhancement services. A 
19.11 	copy of the written contact must be filed with 
19.12 	the Lessard-Sams Outdoor Heritage Council 
19.13 	within 15 days of execution.
19.14 	(j) A recipient of money from this section 
19.15 	must erect signage according to Laws 2009, 
19.16 	chapter 172, article 5, section 10.

19.17
19.18	Subd. 10.Payment Conditions and Capital 
Equipment Expenditures
 					
19.19 	All agreements, grants, or contracts referred 
19.20 	to in this section must be administered on 
19.21 	a reimbursement basis unless otherwise 
19.22 	provided in this section. Notwithstanding 
19.23 	Minnesota Statutes, section 16A.41, 
19.24 	expenditures directly related to each 
19.25 	appropriation's purpose made on or after July 
19.26 	1, 2010, are eligible for reimbursement unless 
19.27 	otherwise provided in this section. Periodic 
19.28 	reimbursement must be made upon receiving 
19.29 	documentation that the deliverable items 
19.30 	articulated in the approved accomplishment 
19.31 	plan have been achieved, including partial 
19.32 	achievements as evidenced by approved 
19.33 	progress reports. Reasonable amounts may 
19.34 	be advanced to projects to accommodate 
19.35 	cash flow needs or to match federal share. 
19.36 	The advances must be approved as part of 
20.1 	the accomplishment plan. Capital equipment 
20.2 	expenditures for specific items in excess of 
20.3 	$10,000 must be approved as part of the 
20.4 	accomplishment plan.

20.5
20.6	Subd. 11.Purchase of Recycled and Recyclable 
Materials
 					
20.7 	A political subdivision, public or private 
20.8 	corporation, or other entity that receives an 
20.9 	appropriation in this section must use the 
20.10 	appropriation in compliance with Minnesota 
20.11 	Statutes, section 16B.121, regarding 
20.12 	purchase of recycled, repairable, and durable 
20.13 	materials, and section 16B.122, regarding 
20.14 	purchase and use of paper stock and printing.

20.15	Subd. 12.Accessibility
 					
20.16 	Structural and nonstructural facilities must 
20.17 	meet the design standards in the Americans 
20.18 	with Disabilities Act (ADA) accessibility 
20.19 	guidelines.

20.20	Subd. 13.Land Acquisition Restrictions
 					
20.21 	(a) An interest in real property, including, but 
20.22 	not limited to, an easement or fee title, that 
20.23 	is acquired with money appropriated under 
20.24 	this section must be used in perpetuity or for 
20.25 	the specific term of an easement interest for 
20.26 	the purpose for which the appropriation was 
20.27 	made.
20.28 	(b) A recipient of funding who acquires 
20.29 	an interest in real property subject to this 
20.30 	subdivision may not alter the intended use 
20.31 	of the interest in real property or convey 
20.32 	any interest in the real property acquired 
20.33 	with the appropriation without the prior 
20.34 	review and approval of the Lessard-Sams 
20.35 	Outdoor Heritage Council or its successor. 
21.1 	The council shall notify the chairs and 
21.2 	ranking minority members of the legislative 
21.3 	committees and divisions with jurisdiction 
21.4 	over the outdoor heritage fund at least 15 
21.5 	business days before approval under this 
21.6 	paragraph. The council shall establish 
21.7 	procedures to review requests from recipients 
21.8 	to alter the use of or convey an interest in 
21.9 	real property. These procedures shall allow 
21.10 	for the replacement of the interest in real 
21.11 	property with another interest in real property 
21.12 	meeting the following criteria: (1) the 
21.13 	interest is at least equal in fair market value, 
21.14 	as certified by the commissioner of natural 
21.15 	resources, to the interest being replaced; and 
21.16 	(2) the interest is in a reasonably equivalent 
21.17 	location and has a reasonably equivalent 
21.18 	useful conservation purpose compared to the 
21.19 	interest being replaced.
21.20 	(c) A recipient of funding who acquires an 
21.21 	interest in real property under paragraph 
21.22 	(a) must separately record a notice of 
21.23 	funding restrictions in the appropriate local 
21.24 	government office where the conveyance 
21.25 	of the interest in real property is filed. The 
21.26 	notice of funding agreement must contain: 
21.27 	(1) a legal description of the interest in real 
21.28 	property covered by the funding agreement; 
21.29 	(2) a reference to the underlying funding 
21.30 	agreement; (3) a reference to this section; and 
21.31 	(4) the following statement: "This interest 
21.32 	in real property shall be administered in 
21.33 	accordance with the terms, conditions, and 
21.34 	purposes of the grant agreement controlling 
21.35 	the acquisition of the property. The interest 
21.36 	in real property, or any portion of the interest 
22.1 	in real property, shall not be sold, transferred, 
22.2 	pledged, or otherwise disposed of or further 
22.3 	encumbered without obtaining the prior 
22.4 	written approval of the Lessard-Sams 
22.5 	Outdoor Heritage Council or its successor. 
22.6 	The ownership of the interest in real property 
22.7 	shall transfer to the state if: (1) the holder of 
22.8 	the interest in real property fails to comply 
22.9 	with the terms and conditions of the grant 
22.10 	agreement or accomplishment plan; or 
22.11 	(2) restrictions are placed on the land that 
22.12 	preclude its use for the intended purpose as 
22.13 	specified in the appropriation."

22.14	Subd. 14.Real Property Interest Report
 					
22.15 	By December 1 each year, a recipient of 
22.16 	money appropriated under this section that 
22.17 	is used for the acquisition of an interest in 
22.18 	real property, including, but not limited to, 
22.19 	an easement or fee title, must submit annual 
22.20 	reports on the status of the real property to 
22.21 	the Lessard-Sams Outdoor Heritage Council 
22.22 	or its successor in a form determined by the 
22.23 	council. The responsibility for reporting 
22.24 	under this section may be transferred by 
22.25 	the recipient of the appropriation to another 
22.26 	person or entity that holds the interest in the 
22.27 	real property. To complete the transfer of 
22.28 	reporting responsibility, the recipient of the 
22.29 	appropriation must: (1) inform the person to 
22.30 	whom the responsibility is transferred of that 
22.31 	person's reporting responsibility; (2) inform 
22.32 	the person to whom the responsibility is 
22.33 	transferred of the property restrictions under 
22.34 	subdivision 13; (3) provide written notice 
22.35 	to the council of the transfer of reporting 
22.36 	responsibility, including contact information 
23.1 	for the person to whom the responsibility is 
23.2 	transferred; and (4) provide the Lessard-Sams 
23.3 	Outdoor Heritage Council or its successor 
23.4 	written documentation from the person or 
23.5 	entity holding the interest in real property 
23.6 	certifying its acceptance of all reporting 
23.7 	obligations and responsibilities previously 
23.8 	held by the recipient of the appropriation. 
23.9 	After the transfer, the person or entity that 
23.10 	holds the interest in the real property is 
23.11 	responsible for reporting requirements under 
23.12 	this section.

23.13	Subd. 15.Successor Organizations
 					
23.14 	The Lessard-Sams Outdoor Heritage council 
23.15 	may approve the continuation of a project 
23.16 	with an organization that has adopted a new 
23.17 	name. Continuation of a project with an 
23.18 	organization that has undergone a significant 
23.19 	change in mission, structure, or purpose 
23.20 	will require: (1) notice to the chairs of 
23.21 	committees with relevant jurisdiction; and (2) 
23.22 	presentation by the Lessard-Sams Outdoor 
23.23 	Heritage Council of proposed legislation 
23.24 	either ratifying or rejecting continued 
23.25 	involvement with the new organization.

23.26 	Sec. 3. Minnesota Statutes 2009 Supplement, section 85.53, is amended by adding a 
23.27 	subdivision to read:
23.28 		Subd. 5.Restoration evaluations. Beginning July 1, 2011, the commissioner of 
23.29 	natural resources shall convene a technical evaluation panel comprised of five members, 
23.30 	including one technical representative from the Board of Water and Soil Resources, one 
23.31 	technical representative from the Department of Natural Resources, one technical expert 
23.32 	from the University of Minnesota or the Minnesota State Colleges and Universities, 
23.33 	and two other representatives with expertise related to the project being evaluated. 
23.34 	The commissioner may add a technical representative from a unit of federal or local 
23.35 	government. The members of the technical evaluation panel may not be associated with 
24.1 	the restoration, may vary depending upon the projects being reviewed, and shall avoid any 
24.2 	potential conflicts of interest. Each year, the commissioner shall assign a coordinator to 
24.3 	identify a sample of up to ten habitat restoration projects completed with parks and trails 
24.4 	funding. The coordinator shall secure the restoration plans for the projects specified and 
24.5 	direct the technical evaluation panel to evaluate the restorations relative to the law, current 
24.6 	science, and the stated goals and standards in the restoration plan and, when applicable, to 
24.7 	the Board of Water and Soil Resources' native vegetation establishment and enhancement 
24.8 	guidelines. The coordinator shall summarize the findings of the panel and provide a report 
24.9 	to the chairs of the respective house of representatives and senate policy and finance 
24.10 	committees with jurisdiction over natural resources and spending from the parks and 
24.11 	trails fund. The report shall determine if the restorations are meeting planned goals, any 
24.12 	problems with the implementation of restorations, and, if necessary, recommendations on 
24.13 	improving restorations. The report shall be focused on improving future restorations. Up 
24.14 	to one-tenth of one percent of forecasted receipts from the parks and trails fund may be 
24.15 	used for restoration evaluations under this section.

24.16 	Sec. 4. Minnesota Statutes 2009 Supplement, section 97A.056, subdivision 3, is 
24.17 	amended to read:
24.18 		Subd. 3.Council recommendations. (a) The council shall make recommendations 
24.19 	to the legislature on appropriations of money from the outdoor heritage fund that are 
24.20 	consistent with the Constitution and state law and that will achieve the outcomes of 
24.21 	existing natural resource plans, including, but not limited to, the Minnesota Statewide 
24.22 	Conservation and Preservation Plan, that directly relate to the restoration, protection, and 
24.23 	enhancement of wetlands, prairies, forests, and habitat for fish, game, and wildlife, and that 
24.24 	prevent forest fragmentation, encourage forest consolidation, and expand restored native 
24.25 	prairie. In making recommendations, the council shall consider a range of options that 
24.26 	would best restore, protect, and enhance wetlands, prairies, forests, and habitat for fish, 
24.27 	game, and wildlife, and shall not adopt definitions of "restore", "protect", or "enhance" that 
24.28 	would limit the council from considering options that are consistent with the Constitution. 
24.29 	The council shall submit its initial recommendations to the legislature no later than April 1, 
24.30 	2009. Subsequent recommendations shall be submitted no later than January 15 each year. 
24.31 	The council shall present its recommendations to the senate and house of representatives 
24.32 	committees with jurisdiction over the environment and natural resources budget by 
24.33 	February 15 in odd-numbered years, and within the first four weeks of the legislative 
24.34 	session in even-numbered years. The council's budget recommendations to the legislature 
24.35 	shall be separate from the Department of Natural Resource's budget recommendations.
25.1 	(b) To encourage and support local conservation efforts, the council shall establish a 
25.2 	conservation partners program. Local, regional, state, or national organizations may apply 
25.3 	for matching grants for restoration, protection, and enhancement of wetlands, prairies, 
25.4 	forests, and habitat for fish, game, and wildlife, prevention of forest fragmentation, 
25.5 	encouragement of forest consolidation, and expansion of restored native prairie.
25.6 	(c) The council may work with the Clean Water Council to identify projects that 
25.7 	are consistent with both the purpose of the outdoor heritage fund and the purpose of 
25.8 	the clean water fund.
25.9 	(d) The council may make recommendations to the Legislative-Citizen Commission 
25.10 	on Minnesota Resources on scientific research that will assist in restoring, protecting, and 
25.11 	enhancing wetlands, prairies, forests, and habitat for fish, game, and wildlife, preventing 
25.12 	forest fragmentation, encouraging forest consolidation, and expanding restored native 
25.13 	prairie.
25.14 	(e) Recommendations of the council, including approval of recommendations for the 
25.15 	outdoor heritage fund, require an affirmative vote of at least nine members of the council.
25.16 	(f) The council may work with the Clean Water Council, the Legislative-Citizen 
25.17 	Commission on Minnesota Resources, the Board of Water and Soil Resources, soil and 
25.18 	water conservation districts, and experts from Minnesota State Colleges and Universities 
25.19 	and the University of Minnesota in developing the council's recommendations.
25.20 	(g) The council shall develop and implement a process that ensures that citizens 
25.21 	and potential recipients of funds are included throughout the process, including the 
25.22 	development and finalization of the council's recommendations. The process must include 
25.23 	a fair, equitable, and thorough process for reviewing requests for funding and a clear and 
25.24 	easily understood process for ranking projects.
25.25 	(h) The council shall use the regions of the state based upon the ecological 
25.26 	regions and subregions developed by the Department of Natural Resources and establish 
25.27 	objectives for each region and subregion to achieve the purposes of the fund outlined 
25.28 	in the state constitution.
25.29 	(i) The council shall develop and submit to the Legislative Coordinating Commission 
25.30 	plans for the first ten years of funding, and a framework for 25 years of funding, consistent 
25.31 	with statutory and constitutional requirements. The council may use existing plans from 
25.32 	other legislative, state, and federal sources, as applicable.

25.33 	Sec. 5. Minnesota Statutes 2008, section 97A.056, subdivision 5, is amended to read:
25.34 		Subd. 5.Open meetings. (a) Meetings of the council and other groups the council 
25.35 	may establish are subject to chapter 13D. Except where prohibited by law, the council 
26.1 	shall establish additional processes to broaden public involvement in all aspects of its 
26.2 	deliberations, including recording meetings, video conferencing, and publishing minutes. 
26.3 	For the purposes of this subdivision, a meeting occurs when a quorum is present and the 
26.4 	members receive information or take action on any matter relating to the duties of the 
26.5 	council. The quorum requirement for the council shall be seven members.
26.6 	(b) Travel to and from scheduled and publicly noticed site visits by council members 
26.7 	for the purposes of receiving information is not a violation of paragraph (a). Any decision 
26.8 	or agreement to make a decision during the travel is a violation of paragraph (a).
26.9 	(c) For legislative members of the council, enforcement of this subdivision is 
26.10 	governed by section 3.055, subdivision 2. For nonlegislative members of the council, 
26.11 	enforcement of this subdivision is governed by section 13D.06, subdivisions 1 and 2.

26.12 	Sec. 6. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision 
26.13 	to read:
26.14 		Subd. 8.Revenues. When a parcel of land that was previously purchased with 
26.15 	outdoor heritage funds is transferred to the state, the owner of the land shall disclose to the 
26.16 	council and commissioner of natural resources:
26.17 	(1) all revenues generated from activities on the land from the time the land was 
26.18 	purchased with outdoor heritage funds until the land was transferred to the state;
26.19 	(2) all holding costs associated with managing the land between the time of purchase 
26.20 	with outdoor heritage funds and the time the land was transferred to the state; and
26.21 	(3) the total net revenues as determined by subtracting the costs described in clause 
26.22 	(2) from the revenues described in clause (1).

26.23 	Sec. 7. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision 
26.24 	to read:
26.25 		Subd. 9.Lands in public domain. Money appropriated from the outdoor heritage 
26.26 	fund shall not be used to purchase any land in fee title or a permanent conservation 
26.27 	easement if the land in question is fully or partially owned by the state of Minnesota 
26.28 	or a political subdivision of the state, unless: (1) the purchase creates additional direct 
26.29 	benefit to protect, restore, or enhance the state's wetlands, prairies, forests, or habitat 
26.30 	for fish, game, and wildlife; and (2) the purchase is approved by an affirmative vote of 
26.31 	at least nine members of the council. At least 15 business days prior to a decision under 
26.32 	this subdivision, the council shall submit the planned decision item to the Legislative 
26.33 	Coordinating Commission. The planned decision item takes effect 15 business days 
26.34 	after it is submitted by the council.

27.1 	EFFECTIVE DATE. This section is effective July 1, 2010, and applies only to 
27.2 	projects proposed after that date.

27.3 	Sec. 8. Minnesota Statutes 2008, section 97A.056, is amended by adding a subdivision 
27.4 	to read:
27.5 		Subd. 10.Restoration evaluations. Beginning July 1, 2011, the commissioner of 
27.6 	natural resources and the Board of Water and Soil Resources shall convene a technical 
27.7 	evaluation panel comprised of five members, including one technical representative 
27.8 	from the Board of Water and Soil Resources, one technical representative from the 
27.9 	Department of Natural Resources, one technical expert from the University of Minnesota 
27.10 	or the Minnesota State Colleges and Universities, and two representatives with expertise 
27.11 	in the project being evaluated. The board and the commissioner may add a technical 
27.12 	representative from a unit of federal or local government. The members of the technical 
27.13 	evaluation panel may not be associated with the restoration, may vary depending upon 
27.14 	the projects being reviewed, and shall avoid any potential conflicts of interest. Each year, 
27.15 	the board and the commissioner shall assign a coordinator to identify a sample of up to 
27.16 	ten habitat restoration projects completed with outdoor heritage funding. The coordinator 
27.17 	shall secure the restoration plans for the projects specified and direct the technical 
27.18 	evaluation panel to evaluate the restorations relative to the law, current science, and the 
27.19 	stated goals and standards in the restoration plan and, when applicable, to the Board of 
27.20 	Water and Soil Resources' native vegetation establishment and enhancement guidelines. 
27.21 	The coordinator shall summarize the findings of the panel and provide a report to the chair 
27.22 	of the Lessard-Sams Outdoor Heritage Council and the chairs of the respective house of 
27.23 	representatives and senate policy and finance committees with jurisdiction over natural 
27.24 	resources and spending from the outdoor heritage fund. The report shall determine if 
27.25 	the restorations are meeting planned goals, any problems with the implementation of 
27.26 	restorations, and, if necessary, recommendations on improving restorations. The report 
27.27 	shall be focused on improving future restorations. Up to one-tenth of one percent of 
27.28 	forecasted receipts from the outdoor heritage fund may be used for restoration evaluations 
27.29 	under this section.

27.30 	Sec. 9. Minnesota Statutes 2009 Supplement, section 114D.50, is amended by adding a 
27.31 	subdivision to read:
27.32 		Subd. 6.Restoration evaluations. Beginning July 1, 2011, the Board of Water and 
27.33 	Soil Resources shall convene a technical evaluation panel comprised of five members, 
27.34 	including one technical representative from the Board of Water and Soil Resources, one 
28.1 	technical representative from the Department of Natural Resources, one technical expert 
28.2 	from the University of Minnesota or the Minnesota State Colleges and Universities, and 
28.3 	two representatives with expertise related to the project being evaluated. The board may 
28.4 	add a technical representative from a unit of federal or local government. The members 
28.5 	of the technical evaluation panel may not be associated with the restoration, may vary 
28.6 	depending upon the projects being reviewed, and shall avoid any potential conflicts of 
28.7 	interest. Each year, the board shall assign a coordinator to identify a sample of up to ten 
28.8 	habitat restoration projects completed with clean water funding. The coordinator shall 
28.9 	secure the restoration plans for the projects specified and direct the technical evaluation 
28.10 	panel to evaluate the restorations relative to the law, current science, and the stated 
28.11 	goals and standards in the restoration plan and, when applicable, to the Board of Water 
28.12 	and Soil Resources' native vegetation establishment and enhancement guidelines. The 
28.13 	coordinator shall summarize the findings of the panel and provide a report to the chairs 
28.14 	of the respective house of representatives and senate policy and finance committees 
28.15 	with jurisdiction over natural resources and spending from the clean water fund. The 
28.16 	report shall determine if the restorations are meeting planned goals, any problems with 
28.17 	the implementation of restorations, and, if necessary, recommendations on improving 
28.18 	restorations. The report shall be focused on improving future restorations. Up to one-tenth 
28.19 	of one percent of forecasted receipts from the clean water fund may be used for restoration 
28.20 	evaluations under this section.

28.21 	Sec. 10. LAND MANAGEMENT RECOMMENDATIONS.
 28.22 	The commissioner of management and budget, in consultation with the 
28.23 	commissioner of natural resources and the Board of Water and Soil Resources, shall 
28.24 	prepare recommendations to the legislature on methods to accomplish the reasonable 
28.25 	management, care, restoration, and protection of land acquired in fee title or easement. 
28.26 	The commissioner of management and budget shall submit a report to the chairs of the 
28.27 	house of representatives and senate committees and divisions with jurisdiction over 
28.28 	environment and natural resources finance and cultural and outdoor resources finance by 
28.29 	January 15, 2011.

28.30 	Sec. 11.  REPEALER.
 28.31 	Minnesota Statutes 2009 Supplement, sections 3.3006; and 84.02, subdivisions 4a, 
28.32 	6a, and 6b, are repealed.

29.1 	ARTICLE 2
29.2 	CLEAN WATER FUND

29.3 	Section 1. Minnesota Statutes 2008, section 473.1565, subdivision 2, is amended to 
29.4 	read:
29.5 		Subd. 2. Advisory committee. (a) A Metropolitan Area Water Supply Advisory 
29.6 	Committee is established to assist the council in its planning activities in subdivision 1. 
29.7 	The advisory committee has the following membership: 
29.8 	(1) the commissioner of agriculture or the commissioner's designee; 
29.9 	(2) the commissioner of health or the commissioner's designee; 
29.10 	(3) the commissioner of natural resources or the commissioner's designee; 
29.11 	(4) the commissioner of the Pollution Control Agency or the commissioner's 
29.12 	designee; 
29.13 	(5) two officials of counties that are located in the metropolitan area, appointed by 
29.14 	the governor; 
29.15 	(6) five officials of noncounty local governmental units that are located in the 
29.16 	metropolitan area, appointed by the governor; and
29.17 	(7) the chair of the Metropolitan Council or the chair's designee, who is chair of the 
29.18 	advisory committee; and
29.19 	(8) one official each from the counties of Chisago, Isanti, Sherburne, and Wright, 
29.20 	appointed by the governor. 
29.21 	A local government unit in each of the seven counties in the metropolitan area 
29.22 	and Chisago, Isanti, Sherburne, and Wright Counties must be represented in the seven
29.23 	11 appointments made under clauses (5),and (6), and (8). 
29.24 	(b) Members of the advisory committee appointed by the governor serve at the 
29.25 	pleasure of the governor. Members of the advisory committee serve without compensation 
29.26 	but may be reimbursed for their reasonable expenses as determined by the Metropolitan 
29.27 	Council. The advisory committee expires December 31, 2010 2012. 
29.28 	(c) The council must consider the work and recommendations of the advisory 
29.29 	committee when the council is preparing its regional development framework. 

29.30 	Sec. 2. Laws 2009, chapter 172, article 2, section 4, is amended to read:

29.31
29.32	Sec. 4. POLLUTION CONTROL AGENCY
 	$
	24,076,000
	$
	27,285,000
27,630,000
	
29.33 	(a) $9,000,000 the first year and $9,000,000 
29.34 	the second year are to develop total 
30.1 	maximum daily load (TMDL) studies and 
30.2 	TMDL implementation plans for waters 
30.3 	listed on the United States Environmental 
30.4 	Protection Agency approved impaired 
30.5 	waters list in accordance with Minnesota 
30.6 	Statutes, chapter 114D. The agency shall 
30.7 	complete an average of ten percent of the 
30.8 	TMDLs each year over the biennium. Of 
30.9 	this amount, $348,000 the first year is to 
30.10 	retest the comprehensive assessment of the 
30.11 	biological conditions of the lower Minnesota 
30.12 	River and its tributaries within the Lower 
30.13 	Minnesota River Major Watershed, as 
30.14 	previously assessed from 1976 to 1992 under 
30.15 	the Minnesota River Assessment Project 
30.16 	(MRAP). The assessment must include the 
30.17 	same fish species sampling at the same 116 
30.18 	locations and the same macroinvertebrate 
30.19 	sampling at the same 41 locations as the 
30.20 	MRAP assessment. The assessment must:
30.21 	(1) include an analysis of the findings; and
30.22 	(2) identify factors that limit aquatic life in 
30.23 	the Minnesota River.
30.24 	Of this amount, $250,000 the first year is 
30.25 	for a pilot project for the development of 
30.26 	total maximum daily load (TMDL) studies 
30.27 	conducted on a watershed basis within 
30.28 	the Buffalo River watershed in order to 
30.29 	protect, enhance, and restore water quality 
30.30 	in lakes, rivers, and streams. The pilot 
30.31 	project shall include all necessary field 
30.32 	work to develop TMDL studies for all 
30.33 	impaired subwatersheds within the Buffalo 
30.34 	River watershed and provide information 
30.35 	necessary to complete reports for most of the 
31.1 	remaining watersheds, including analysis of 
31.2 	water quality data, identification of sources 
31.3 	of water quality degradation and stressors, 
31.4 	load allocation development, development 
31.5 	of reports that provide protection plans 
31.6 	for subwatersheds that meet water quality 
31.7 	standards, and development of reports that 
31.8 	provide information necessary to complete 
31.9 	TMDL studies for subwatersheds that do not 
31.10 	meet water quality standards, but are not 
31.11 	listed as impaired.
31.12 	(b) $500,000 the first year is for development 
31.13 	of an enhanced TMDL database to manage 
31.14 	and track progress. Of this amount, $63,000 
31.15 	the first year is to promulgate rules. By 
31.16 	November 1, 2010, the commissioner shall 
31.17 	submit a report to the chairs of the house of 
31.18 	representatives and senate committees with 
31.19 	jurisdiction over environment and natural 
31.20 	resources finance on the outcomes achieved 
31.21 	with this appropriation.
31.22 	(c) $1,500,000 the first year and $3,169,000 
31.23 	the second year are for grants under 
31.24 	Minnesota Statutes, section 116.195, to 
31.25 	political subdivisions for up to 50 percent 
31.26 	of the costs to predesign, design, and 
31.27 	implement capital projects that use treated 
31.28 	municipal wastewater instead of groundwater 
31.29 	from drinking water aquifers, in order to 
31.30 	demonstrate the beneficial use of wastewater, 
31.31 	including the conservation and protection of 
31.32 	water resources. Of this amount, $1,000,000 
31.33 	the first year is for grants to ethanol plants 
31.34 	that are within one and one-half miles of a 
31.35 	city for improvements that reuse greater than 
31.36 	300,000 gallons of wastewater per day.
32.1 	(d) $1,125,000 the first year and $1,125,000 
32.2 	the second year are for groundwater 
32.3 	assessment and drinking water protection to 
32.4 	include:
32.5 	(1) the installation and sampling of at least 
32.6 	30 new monitoring wells;
32.7 	(2) the analysis of samples from at least 40 
32.8 	shallow monitoring wells each year for the 
32.9 	presence of endocrine disrupting compounds; 
32.10 	and
32.11 	(3) the completion of at least four to 
32.12 	five groundwater models for TMDL and 
32.13 	watershed plans.
32.14 	(e) $2,500,000 the first year is for the clean 
32.15 	water partnership program. Priority shall be 
32.16 	given to projects preventing impairments and 
32.17 	degradation of lakes, rivers, streams, and 
32.18 	groundwater in accordance with Minnesota 
32.19 	Statutes, section 114D.20, subdivision 2, 
32.20 	clause (4). Any balance remaining in the first 
32.21 	year does not cancel and is available for the 
32.22 	second year.
32.23 	(f) $896,000 the first year is to establish 
32.24 	a network of water monitoring sites, to 
32.25 	include at least 20 additional sites, in public 
32.26 	waters adjacent to wastewater treatment 
32.27 	facilities across the state to assess levels of 
32.28 	endocrine-disrupting compounds, antibiotic 
32.29 	compounds, and pharmaceuticals as required 
32.30 	in this article. The data must be placed on 
32.31 	the agency's Web site.
32.32 	(g) $155,000 the first year is to provide 
32.33 	notification of the potential for coal tar 
32.34 	contamination, establish a storm water 
32.35 	pond inventory schedule, and develop best 
33.1 	management practices for treating and 
33.2 	cleaning up contaminated sediments as 
33.3 	required in this article. $345,000 $490,000
33.4 	the second year is to develop a model 
33.5 	ordinance for the restricted use of undiluted 
33.6 	coal tar sealants and to provide grants to local 
33.7 	units of government for up to 50 percent of 
33.8 	the costs to implement best management 
33.9 	practices to treat or clean up contaminated 
33.10 	sediments in storm water ponds and other 
33.11 	waters as defined under this article. Local 
33.12 	governments must have adopted an ordinance 
33.13 	for the restricted use of undiluted coal tar 
33.14 	sealants in order to be eligible for a grant, 
33.15 	unless a statewide restriction has been 
33.16 	implemented. A grant awarded under this 
33.17 	paragraph must not exceed $100,000. Up to 
33.18 	$145,000 of the appropriation in the second 
33.19 	year may be used to complete work required 
33.20 	under section 28, paragraph (c).
33.21 	(h) $350,000 the first year and $400,000
33.22 	$600,000 the second year are for a restoration 
33.23 	project in the lower St. Louis River and 
33.24 	Duluth harbor in order to improve water 
33.25 	quality. This appropriation must be matched 
33.26 	by nonstate money at a rate of at least $2 for 
33.27 	every $1 of state money.
33.28 	(i) $150,000 the first year and $196,000 the 
33.29 	second year are for grants to the Red River 
33.30 	Watershed Management Board to enhance 
33.31 	and expand existing river watch activities in 
33.32 	the Red River of the North. The Red River 
33.33 	Watershed Management Board shall provide 
33.34 	a report that includes formal evaluation 
33.35 	results from the river watch program to the 
33.36 	commissioners of education and the Pollution 
34.1 	Control Agency and to the legislative natural 
34.2 	resources finance and policy committees 
34.3 	and K-12 finance and policy committees by 
34.4 	February 15, 2011.
34.5 	(j) $200,000 the first year and $300,000 the 
34.6 	second year are for coordination with the 
34.7 	state of Wisconsin and the National Park 
34.8 	Service on comprehensive water monitoring 
34.9 	and phosphorus reduction activities in the 
34.10 	Lake St. Croix portion of the St. Croix 
34.11 	River. The Pollution Control Agency 
34.12 	shall work with the St. Croix Basin Water 
34.13 	Resources Planning Team and the St. Croix 
34.14 	River Association in implementing the 
34.15 	water monitoring and phosphorus reduction 
34.16 	activities. This appropriation is available 
34.17 	to the extent matched by nonstate sources. 
34.18 	Money not matched by November 15, 2010, 
34.19 	cancels for this purpose and is available for 
34.20 	the purposes of paragraph (a).
34.21 	(k) $7,500,000 the first year and $7,500,000 
34.22 	the second year are for completion of 20 
34.23 	percent of the needed statewide assessments 
34.24 	of surface water quality and trends. Of this 
34.25 	amount, $175,000 the first year and $200,000 
34.26 	the second year are for monitoring and 
34.27 	analyzing endocrine disruptors in surface 
34.28 	waters.
34.29 	(l) $100,000 the first year and $150,000 
34.30 	the second year are for civic engagement 
34.31 	in TMDL development. The agency shall 
34.32 	develop a plan for expenditures under 
34.33 	this paragraph. The agency shall give 
34.34 	consideration to civic engagement proposals 
34.35 	from basin or sub-basin organizations, 
35.1 	including the Mississippi Headwaters Board, 
35.2 	the Minnesota River Joint Powers Board, 
35.3 	Area II Minnesota River Basin Projects, 
35.4 	and the Red River Basin Commission. 
35.5 	By November 15, 2009, the plan shall be 
35.6 	submitted to the house and senate chairs 
35.7 	and ranking minority members of the 
35.8 	environmental finance divisions.
35.9 	(m) $5,000,000 the second year is for 
35.10 	groundwater protection or prevention of 
35.11 	groundwater degradation activities. By 
35.12 	January 15, 2010, the commissioner, in 
35.13 	consultation with the commissioner of 
35.14 	natural resources, the Board of Water and 
35.15 	Soil Resources, and other agencies, shall 
35.16 	submit a report to the chairs of the house of 
35.17 	representatives and senate committees with 
35.18 	jurisdiction over the clean water fund on the 
35.19 	intended use of these funds. The legislature 
35.20 	must approve expenditure of these funds by 
35.21 	law.
35.22 	(n) $100,000 the first year and $100,000 the 
35.23 	second year are for grants to the Star Lake 
35.24 	Board established under Minnesota Statutes, 
35.25 	section 103B.702. The appropriation is a 
35.26 	pilot program to focus on engaging citizen 
35.27 	participation and fostering local partnerships 
35.28 	by increasing citizen involvement in water 
35.29 	quality enhancement by designating star 
35.30 	lakes and rivers. The board shall include 
35.31 	information on the results of this pilot 
35.32 	program in its next biennial report under 
35.33 	Minnesota Statutes, section 103B.702. The 
35.34 	second year grants are available only if 
35.35 	the Board of Water and Soil Resources 
35.36 	determines that the money granted in the first 
36.1 	year furthered the water quality goals in the 
36.2 	star lakes program in Minnesota Statutes, 
36.3 	section 103B.701. * (The preceding 
36.4 	paragraph beginning "(n) $100,000 the 
36.5 	first year" was indicated as vetoed by the 
36.6 	governor.)
36.7 	Notwithstanding Minnesota Statutes, section 
36.8 	16A.28, the appropriations encumbered on or 
36.9 	before June 30, 2011, as grants or contracts in 
36.10 	this section are available until June 30, 2013.

36.11 	Sec. 3. CLEAN WATER FUND; 2009 APPROPRIATION ADJUSTMENTS.
 36.12 	The appropriations in fiscal years 2011 and 2012 to the Department of Natural 
36.13 	Resources for high-resolution digital elevation data in Laws 2009, chapter 172, article 2, 
36.14 	section 5, paragraph (d), are available until June 30, 2012.

36.15 	Sec. 4. CLEAN WATER FUND APPROPRIATIONS.
 36.16 		Subdivision 1.Pollution Control Agency. $600,000 in fiscal year 2011 is 
36.17 	appropriated from the clean water fund to the commissioner of the Pollution Control 
36.18 	Agency to continue rulemaking to establish water quality standards for total nitrogen and 
36.19 	nitrate nitrogen. This is a onetime appropriation.
36.20 		Subd. 2.Department of Natural Resources. The $5,000,000 appropriated 
36.21 	in Laws 2009, chapter 172, article 2, section 4, paragraph (m), for activities relating 
36.22 	to groundwater protection or prevention of groundwater degradation is canceled and 
36.23 	$4,000,000 is appropriated in fiscal year 2011 to the commissioner of natural resources for 
36.24 	the following purposes:
36.25 	(1) establish a groundwater monitoring network in the 11-county metropolitan area 
36.26 	that monitors non-stressed systems to provide information on aquifer characteristics and 
36.27 	natural water level trends; and
36.28 	(2) develop an automated data system to capture groundwater level and water use 
36.29 	data to enhance the evaluation of water resource changes in aquifer systems that are 
36.30 	stressed by pumping of existing wells. This is a onetime appropriation and is available 
36.31 	until spent. The base funding for this program in fiscal year 2012 is $1,000,000 and $0 
36.32 	in fiscal year 2013.

37.1 	Sec. 5. APPROPRIATION; WATER SUPPLY PLANNING ACTIVITIES.
 37.2 	$400,000 is appropriated in fiscal year 2011 from the clean water fund, pursuant to 
37.3 	Minnesota Statutes, section 114D.50, to the Metropolitan Council to fund Metropolitan 
37.4 	Council water supply planning activities under section 473.1565, for projects that 
37.5 	include, but are not limited to, protection of the Seminary Fen and Valley Branch Trout 
37.6 	Stream; lessening groundwater vulnerability by mapping glacial aquifers; creation of a 
37.7 	comprehensive map of known groundwater contaminant plumes; and the design of plans 
37.8 	that can be used by communities for reusing storm water. By January 15, 2011, the council 
37.9 	shall report to the chairs and ranking minority members of the legislative committees 
37.10 	and divisions that make recommendations for appropriations from the clean water fund 
37.11 	on the outcomes of the council's water supply planning activities. This appropriation 
37.12 	is onetime and available until expended.

37.13 	Sec. 6. APPROPRIATIONS; BOARD OF WATER AND SOIL RESOURCES.
 37.14 	(a) $100,000 in fiscal year 2011 is appropriated from the clean water fund to the 
37.15 	Board of Water and Soil Resources for the purpose of establishing a micro-grants pilot 
37.16 	program to engage citizen volunteers and to match private sector resources to complete 
37.17 	projects with long-term water quality restoration or protection benefits for Minnesota 
37.18 	lakes and rivers.
37.19 	(b) $400,000 in fiscal year 2011 is appropriated from the clean water fund to the 
37.20 	Board of Water and Soil Resources to purchase and restore permanent conservation 
37.21 	easements on riparian buffers of up to 120 feet adjacent to public waters, excluding 
37.22 	wetlands, to keep water on the land in order to decrease sediment, pollutant, and nutrient 
37.23 	transport, reduce hydrologic impacts to surface waters, and increase infiltration for 
37.24 	groundwater recharge. The riparian buffers must be at least 50 feet unless there is a 
37.25 	natural impediment, a road, or other impediment beyond the control of the landowner. 
37.26 	This appropriation may be used for restoration of riparian buffers protected by easements 
37.27 	purchased with this appropriation and for stream bank restorations when the riparian 
37.28 	buffers have been restored. Up to five percent may be used for administration of this 
37.29 	program and up to five percent may be used for technical design, construction, and project 
37.30 	oversight.
37.31 	(c) $400,000 in fiscal year 2011 is appropriated from the clean water fund to the 
37.32 	Board of Water and Soil Resources for grants to watershed districts and watershed 
37.33 	management organizations for: (1) structural or vegetative management practices that 
37.34 	reduce storm water runoff from developed or disturbed lands to reduce the movement of 
37.35 	sediment, nutrients, and pollutants or to leverage federal funds for restoration, protection, 
38.1 	or enhancement of water quality in lakes, rivers, and streams and to protect groundwater 
38.2 	and drinking water; and (2) the installation of proven and effective water retention 
38.3 	practices including, but not limited to, rain gardens and other vegetated infiltration basins 
38.4 	and sediment control basins in order to keep water on the land. The projects must be 
38.5 	of long-lasting public benefit, include a local match, and be consistent with TMDL 
38.6 	implementation plans or local water management plans. Watershed district and watershed 
38.7 	management organization staff and administration may be used for the local match. 
38.8 	Priority may be given to school projects that can be used to demonstrate water retention 
38.9 	practices. Up to five percent may be used for administering the grants and up to five 
38.10 	percent may be used for technical design, construction, and project oversight.
38.11 	(d) $300,000 in fiscal year 2011 is appropriated from the clean water fund to the 
38.12 	Board of Water and Soil Resources for permanent conservation easements on wellhead 
38.13 	protection areas under Minnesota Statutes, section 103F.515, subdivision 2, paragraph 
38.14 	(d). Priority must be placed on land that is located where the vulnerability of the drinking 
38.15 	water supply management area, as defined under Minnesota Rules, part 4720.5100, 
38.16 	subpart 13, is designated as high or very high by the commissioner of health. Up to five 
38.17 	percent may be used for administration of this program and up to five percent may be used 
38.18 	for technical design, construction, and project oversight.
38.19 	(e) The appropriations in fiscal year 2011 to the Board of Water and Soil Resources in 
38.20 	Laws 2009, chapter 172, article 2, section 6, are available until June 30, 2012, and, unless 
38.21 	otherwise specified, may utilize up to five percent for administration of grant and easement 
38.22 	programs and up to five percent for technical design, construction, and project oversight.

38.23 	ARTICLE 3
38.24 	GENERAL PROVISIONS

38.25 	Section 1. Minnesota Statutes 2008, section 3.9741, is amended by adding a 
38.26 	subdivision to read:
38.27 		Subd. 3.Legacy funds. The outdoor heritage fund, the clean water fund, the parks 
38.28 	and trails fund, and the arts and cultural heritage fund must each reimburse the general 
38.29 	fund, in the manner prescribed in section 16A.127, for costs incurred by the legislative 
38.30 	auditor in examining financial activities relating to each fund.

38.31 	Sec. 2. Minnesota Statutes 2009 Supplement, section 85.53, subdivision 2, is amended 
38.32 	to read:
38.33 		Subd. 2.Expenditures; accountability. (a) A project or program receiving funding 
38.34 	from the parks and trails fund must meet or exceed the constitutional requirement to 
39.1 	support parks and trails of regional or statewide significance. A project or program 
39.2 	receiving funding from the parks and trails fund must include measurable outcomes, as 
39.3 	defined in section 3.303, subdivision 10, and a plan for measuring and evaluating the 
39.4 	results. A project or program must be consistent with current science and incorporate 
39.5 	state-of-the-art technology, except when the project or program is a portrayal or restoration 
39.6 	of historical significance.
39.7 	(b) Money from the parks and trails fund shall be expended to balance the benefits 
39.8 	across all regions and residents of the state. 
39.9 	(c) All information for funded projects, including the proposed measurable 
39.10 	outcomes, must be made available on the Web site required under section 3.303, 
39.11 	subdivision 10, as soon as practicable. Information on the measured outcomes and 
39.12 	evaluation must be posted as soon as it becomes available.
39.13 	(d) Grants funded by the parks and trails fund must be implemented according to 
39.14 	section 16B.98 and must account for all expenditures. Proposals must specify a process 
39.15 	for any regranting envisioned. Priority for grant proposals must be given to proposals 
39.16 	involving grants that will be competitively awarded.
39.17 	(e) A recipient of money from the parks and trails fund must display a sign on lands 
39.18 	and capital improvements purchased, restored, or protected with money from the parks 
39.19 	and trails fund that includes the logo developed by the commissioner of natural resources 
39.20 	to identify it as a project funded with money from the vote of the people of Minnesota on 
39.21 	November 4, 2008.
39.22 	(f) Money from the parks and trails fund may only be spent on projects located 
39.23 	in Minnesota.

39.24 	Sec. 3. Minnesota Statutes 2009 Supplement, section 129D.17, subdivision 2, is 
39.25 	amended to read:
39.26 		Subd. 2.Expenditures; accountability. (a) Funding from the arts and cultural 
39.27 	heritage fund may be spent only for arts, arts education, and arts access, and to preserve 
39.28 	Minnesota's history and cultural heritage. A project or program receiving funding from 
39.29 	the arts and cultural heritage fund must include measurable outcomes, and a plan for 
39.30 	measuring and evaluating the results. A project or program must be consistent with 
39.31 	current scholarship, or best practices, when appropriate and incorporate state-of-the-art 
39.32 	technology when appropriate.
39.33 	(b) Funding from the arts and cultural heritage fund may be granted for an entire 
39.34 	project or for part of a project so long as the recipient provides a description and cost for 
40.1 	the entire project and can demonstrate that it has adequate resources to ensure that the 
40.2 	entire project will be completed. 
40.3 	(c) Money from the arts and cultural heritage fund shall be expended for benefits 
40.4 	across all regions and residents of the state.
40.5 	(d) All information for funded projects, including the proposed measurable 
40.6 	outcomes, must be made available on the Legislative Coordinating Commission Web 
40.7 	site, as soon as practicable. Information on the measured outcomes and evaluation must 
40.8 	be posted as soon as it becomes available.
40.9 	(e) Grants funded by the arts and cultural heritage fund must be implemented 
40.10 	according to section 16B.98 and must account for all expenditures of funds. Priority for 
40.11 	grant proposals must be given to proposals involving grants that will be competitively 
40.12 	awarded.
40.13 	(f) A recipient of money from the arts and cultural heritage fund must display a sign 
40.14 	on capital projects during construction and an acknowledgment in a printed program or 
40.15 	other material funded with money from the arts and cultural heritage fund that identifies it 
40.16 	as a project funded with money from the vote of the people of Minnesota on November 
40.17 	4, 2008.
40.18 	(g) All money from the arts and cultural heritage fund must be for projects located 
40.19 	in Minnesota.

40.20 	Sec. 4. Laws 2009, chapter 172, article 5, section 8, is amended to read:
40.21 	Sec. 8. LEGISLATIVE COMMITTEE GUIDE.
 40.22 	A legislativecommittee guide shall be recommendedmay be developed by the 
40.23 	house of representatives committee with jurisdiction over cultural and outdoor resources 
40.24 	expenditures stating principles for the use and expected outcomes of all funds from 
40.25 	dedicated sales taxes pursuant to the Minnesota Constitution, article XI, section 15. The 
40.26 	guide shall include principles for managing future state obligations, including payment 
40.27 	in lieu of taxes and land management and monitoring necessary for lands acquired in 
40.28 	fee or easement. This guide shall be recommended jointly by the Cultural and Outdoor 
40.29 	Resources Division of the house of representatives, the appropriate senate committees 
40.30 	as designated by the majority leader of the senate, and the Lessard Outdoor Heritage 
40.31 	Council. The recommendations must be presented to the legislature by January 15, 2010, 
40.32 	and acted on by the legislature.
40.33 	The legislative guide required by this section shall be for the years 2010 to 2015 
40.34 	and shall include the following provisions:
40.35 	(1) principles by which to guide future expenditures for each fund;
41.1 	(2) desired outcomes for the expenditures;
41.2 	(3) a general statement applicable to later years for these funds; and
41.3 	(4) consideration of financial methods such as revolving loan funds that may be used 
41.4 	in future appropriations.

41.5 	Sec. 5. Laws 2009, chapter 172, article 5, section 10, is amended to read:
41.6 	Sec. 10. LOGO.
 41.7 	(a) By September 1, 2010, the Minnesota Board of the Arts, in consultation with 
41.8 	the Department of Natural Resources,  shall sponsor a contest for selecting the design of a 
41.9 	logo to use on signage for projects receiving money from the outdoor heritage fund, 
41.10 	clean water fund, parks and trails fund, and the arts and cultural heritage fund. If, by 
41.11 	September 15, 2010, the Minnesota Board of the Arts has not selected a logo design, the 
41.12 	Department of Natural Resources shall assume the task of sponsoring the logo contest and 
41.13 	design selection solely.
41.14 	(b) A recipient of funds from the outdoor heritage fund, parks and trails fund, clean 
41.15 	water fund, or arts and cultural heritage fund shall display, where practicable, a sign with 
41.16 	the logo developed under this section on construction projects and at access points to any 
41.17 	land or water resources acquired in fee or an interest in less than fee title, or that were 
41.18 	restored, protected, or enhanced, and incorporate the logo, where practicable, into printed 
41.19 	and other materials funded with money from one or more of the funds.

41.20 	Sec. 6. FUNDS CARRYOVER.
 41.21 	Unless otherwise provided, the amounts appropriated in Laws 2009, chapter 172, 
41.22 	are available until June 30, 2011. For acquisition of an interest in real property, the 
41.23 	amounts in Laws 2009, chapter 172, are available until June 30, 2012. If a project receives 
41.24 	federal funds, the time period of the appropriation is extended to equal the availability 
41.25 	of federal funding.

41.26 	Sec. 7. PARKS.
 41.27 	The Minneapolis Park and Recreation Board may acquire all or part of the entire 
41.28 	property known as the Scherer Brothers Lumber Yard for a metropolitan area regional 
41.29 	park and may allocate any future appropriations to the board from the parks and trails fund 
41.30 	to acquire the property.

41.31 	EFFECTIVE DATE. This section is effective the day after the Minneapolis 
41.32 	Park Board timely completes compliance with Minnesota Statutes, section 645.021, 
41.33 	subdivisions 2 and 3.

42.1 	Sec. 8. USE OF CARRYFORWARD.
 42.2 	The restrictions in Minnesota Statutes, section 16A.281, on the use of money carried 
42.3 	forward from one biennium to another shall not apply to money the legislative auditor 
42.4 	carried forward from the previous biennium for use in fiscal years 2010 and 2011. The 
42.5 	legislative auditor may use the carry forward money for costs related to the conduct of 
42.6 	audits related to funds authorized in the Minnesota Constitution, Article XI, section 15.

42.7 	Sec. 9.  REPEALER.
 42.8 	Laws 2009, chapter 172, article 5, section 9, is repealed.

42.9 	ARTICLE 4
42.10 	ENVIRONMENT AND NATURAL RESOURCES

42.11 	Section 1. Minnesota Statutes 2008, section 84.025, subdivision 9, is amended to read:
42.12 		Subd. 9.Professional services support account. The commissioner of natural 
42.13 	resources may bill other governmental units, including tribal governments, and the 
42.14 	various programs carried out by the commissioner for the costs of providing them with 
42.15 	professional support services. Except as provided under section 89.421, receipts must be 
42.16 	credited to a special account in the state treasury and are appropriated to the commissioner 
42.17 	to pay the costs for which the billings were made.
42.18 	The commissioner of natural resources shall submit to the commissioner of 
42.19 	management and budget before the start of each fiscal year a work plan showing the 
42.20 	estimated work to be done during the coming year, the estimated cost of doing the work, 
42.21 	and the positions and fees that will be necessary. This account is exempted from statewide 
42.22 	and agency indirect cost payments.

42.23 	Sec. 2. Minnesota Statutes 2008, section 84.027, subdivision 15, is amended to read:
42.24 		Subd. 15.Electronic transactions. (a) The commissioner may receive an 
42.25 	application for, sell, and issue any license, stamp, permit, pass, sticker, duplicate gift 
42.26 	card, safety training certification, registration, or transfer under the jurisdiction of the 
42.27 	commissioner by electronic means, including by telephone. Notwithstanding section 
42.28 	97A.472, electronic and telephone transactions may be made outside of the state. The 
42.29 	commissioner may:
42.30 	(1) provide for the electronic transfer of funds generated by electronic transactions, 
42.31 	including by telephone;
42.32 	(2) assign an identification number to an applicant who purchases a hunting or 
42.33 	fishing license or recreational vehicle registration by electronic means, to serve as 
43.1 	temporary authorization to engage in the activity requiring a license or registration until 
43.2 	the license or registration is received or expires;
43.3 	(3) charge and permit agents to charge a fee of individuals who make electronic 
43.4 	transactions and transactions by telephone or Internet, including issuing fees and an 
43.5 	additional transaction fee not to exceed $3.50;
43.6 	(4) charge and permit agents to charge a convenience fee not to exceed three percent 
43.7 	of the cost of the license to individuals who use electronic bank cards for payment. An 
43.8 	electronic licensing system agent charging a fee of individuals making an electronic 
43.9 	bank card transaction in person must post a sign informing individuals of the fee. The 
43.10 	sign must be near the point of payment, clearly visible, include the amount of the fee, and 
43.11 	state: "License agents are allowed by state law to charge a fee not to exceed three percent 
43.12 	of the cost of state licenses to persons who use electronic bank cards for payment. The 
43.13 	fee is not required by state law.";
43.14 	(5) establish, by written order, an electronic licensing system commission to be 
43.15 	paid by revenues generated from all sales made through the electronic licensing system. 
43.16 	The commissioner shall establish the commission in a manner that neither significantly 
43.17 	overrecovers nor underrecovers costs involved in providing the electronic licensing 
43.18 	system; and
43.19 	(6) adopt rules to administer the provisions of this subdivision.
43.20 	(b) The fees established under paragraph (a), clauses (3) and (4), and the commission 
43.21 	established under paragraph (a), clause (5), are not subject to the rulemaking procedures 
43.22 	of chapter 14 and section 14.386 does not apply.
43.23 	(c) Money received from fees and commissions collected under this subdivision, 
43.24 	including interest earned, is annually appropriated from the game and fish fund and the 
43.25 	natural resources fund to the commissioner for the cost of electronic licensing.

43.26 	Sec. 3. Minnesota Statutes 2008, section 84.0856, is amended to read:
43.27 	84.0856 FLEET MANAGEMENT ACCOUNT.
43.28 	The commissioner of natural resources may bill organizational units within 
43.29 	the Department of Natural Resources and other governmental units, including tribal 
43.30 	governments, for the costs of providing them with equipment. Costs billed may include 
43.31 	acquisition, licensing, insurance, maintenance, repair, and other direct costs as determined 
43.32 	by the commissioner. Receipts and interest earned on the receipts shall be credited to a 
43.33 	special account in the state treasury and are appropriated to the commissioner to pay the 
43.34 	costs for which the billings were made.

44.1 	Sec. 4. Minnesota Statutes 2008, section 84.0857, is amended to read:
44.2 	84.0857 FACILITIES MANAGEMENT ACCOUNT.
44.3 	(a) The commissioner of natural resources may bill organizational units within 
44.4 	the Department of Natural Resources and other governmental units, including tribal 
44.5 	governments, for the costs of providing them with building and infrastructure facilities. 
44.6 	Costs billed may include modifications and adaptations to allow for appropriate building 
44.7 	occupancy, building code compliance, insurance, utility services, maintenance, repair, and 
44.8 	other direct costs as determined by the commissioner. Receipts shall be credited to a 
44.9 	special account in the state treasury and are appropriated to the commissioner to pay the 
44.10 	costs for which the billings were made.
44.11 	(b) Money deposited in the special account from the proceeds of a sale under section 
44.12 	94.16, subdivision 3, paragraph (b), is appropriated to the commissioner to acquire 
44.13 	facilities or renovate existing buildings for administrative use or to acquire land for, 
44.14 	design, and construct administrative buildings for the Department of Natural Resources.

44.15 	Sec. 5. Minnesota Statutes 2008, section 84.415, is amended by adding a subdivision 
44.16 	to read:
44.17 		Subd. 3a.Joint applications for residential use. An application for a utility 
44.18 	license may cover more than one type of utility if the utility lines are being installed for 
44.19 	residential use only. Separate applications submitted by utilities for the same crossing 
44.20 	shall be joined together and processed as one application, provided that the applications 
44.21 	are submitted within one year of each other and the utility lines are for residential use only. 
44.22 	The application fees for a joint application or separate applications subsequently joined 
44.23 	together shall be as if only one application was submitted.

44.24 	Sec. 6. Minnesota Statutes 2009 Supplement, section 84.415, subdivision 6, is 
44.25 	amended to read:
44.26 		Subd. 6.Supplemental application fee and monitoring fee. (a) In addition to the 
44.27 	application fee and utility crossing fees specified in Minnesota Rules, the commissioner of 
44.28 	natural resources shall assess the applicant for a utility license the following fees:
44.29 	(1) a supplemental application fee of $1,500 $1,750 for a public water crossing 
44.30 	license and a supplemental application fee of $4,500 $3,000 for a public lands crossing 
44.31 	license, to cover reasonable costs for reviewing the application and preparing the license; 
44.32 	and
44.33 	(2) a monitoring fee to cover the projected reasonable costs for monitoring the 
44.34 	construction of the utility line and preparing special terms and conditions of the license 
45.1 	to ensure proper construction. The commissioner must give the applicant an estimate of 
45.2 	the monitoring fee before the applicant submits the fee.
45.3 	(b) The applicant shall pay fees under this subdivision to the commissioner of 
45.4 	natural resources. The commissioner shall not issue the license until the applicant has 
45.5 	paid all fees in full.
45.6 	(c) Upon completion of construction of the improvement for which the license 
45.7 	or permit was issued, the commissioner shall refund the unobligated balance from the 
45.8 	monitoring fee revenue. The commissioner shall not return the application fees, even 
45.9 	if the application is withdrawn or denied.
45.10 	(d) If the fees collected under paragraph (a), clause (1), are not sufficient to cover 
45.11 	the costs of reviewing the applications and preparing the licenses, the commissioner shall 
45.12 	improve efficiencies and otherwise reduce department costs and activities to ensure the 
45.13 	revenues raised under paragraph (a), clause (1), are sufficient, and that no other funds are 
45.14 	necessary to carry out the requirements.

45.15 	Sec. 7. Minnesota Statutes 2008, section 84.777, subdivision 2, is amended to read:
45.16 		Subd. 2.Off-highway vehicle seasons seasonal restrictions. (a) The commissioner 
45.17 	shall prescribe seasons for off-highway vehicle use on state forest lands. Except for 
45.18 	designated forest roads, a person must not operate an off-highway vehicle on state forest 
45.19 	lands: (1)  outside of the seasons prescribed under this paragraph; or (2) during the firearms 
45.20 	deer hunting season in areas of the state where deer may be taken by rifle. This paragraph 
45.21 	does not apply to a person in possession of a valid deer hunting license operating an 
45.22 	off-highway vehicle before or after legal shooting hours or from 11:00 a.m. to 2:00 p.m.
45.23 	(b) The commissioner may designate and post winter trails on state forest lands 
45.24 	for use by off-highway vehicles.
45.25 	(c) For the purposes of this subdivision, "state forest lands" means forest lands under 
45.26 	the authority of the commissioner as defined in section 89.001, subdivision 13, and lands 
45.27 	managed by the commissioner under section 282.011.

45.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

45.29 	Sec. 8. Minnesota Statutes 2008, section 84.788, subdivision 2, is amended to read:
45.30 		Subd. 2.Exemptions. Registration is not required for off-highway motorcycles:
45.31 	(1) owned and used by the United States, an Indian tribal government, the state, 
45.32 	another state, or a political subdivision;
45.33 	(2) registered in another state or country that have not been within this state for 
45.34 	more than 30 consecutive days; or
46.1 	(3) registered under chapter 168, when operated on forest roads to gain access to a 
46.2 	state forest campground.

46.3 	Sec. 9. Minnesota Statutes 2009 Supplement, section 84.793, subdivision 1, is 
46.4 	amended to read:
46.5 		Subdivision 1.Prohibitions on youthful operators. (a) After January 1, 1995, A 
46.6 	person less than 16 years of age operating an off-highway motorcycle on public lands 
46.7 	or waters must possess a valid off-highway motorcycle safety certificate issued by the 
46.8 	commissioner.
46.9 	(b) Except for operation on public road rights-of-way that is permitted under section 
46.10 	84.795, subdivision 1, a driver's license issued by the state or another state is required to 
46.11 	operate an off-highway motorcycle along or on a public road right-of-way.
46.12 	(c) A person under 12 years of age may not:
46.13 	(1) make a direct crossing of a public road right-of-way;
46.14 	(2) operate an off-highway motorcycle on a public road right-of-way in the state; or
46.15 	(3) operate an off-highway motorcycle on public lands or waters unless accompanied 
46.16 	by a person 18 years of age or older or participating in an event for which the 
46.17 	commissioner has issued a special use permit.
46.18 	(d) Except for public road rights-of-way of interstate highways, a person less than 16 
46.19 	years of age may make a direct crossing of a public road right-of-way of a trunk, county 
46.20 	state-aid, or county highway only if that person is accompanied by a person 18 years of 
46.21 	age or older who holds a valid driver's license.
46.22 	(e) A person less than 16 years of age may operate an off-highway motorcycle on 
46.23 	public road rights-of-way in accordance with section 84.795, subdivision 1, paragraph 
46.24 	(a), only if that person is accompanied by a person 18 years of age or older who holds a 
46.25 	valid driver's license.
46.26 	(f) Notwithstanding paragraph (a), a nonresident less than 16 years of age may 
46.27 	operate an off-highway motorcycle on public lands or waters if the nonresident youth has 
46.28 	in possession evidence of completing an off-road safety course offered by the Motorcycle 
46.29 	Safety Foundation or another state as provided in section 84.791, subdivision 4.

46.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.31 	Sec. 10. Minnesota Statutes 2008, section 84.798, subdivision 2, is amended to read:
46.32 		Subd. 2.Exemptions. Registration is not required for an off-road vehicle that is:
46.33 	(1) owned and used by the United States, an Indian tribal government, the state, 
46.34 	another state, or a political subdivision; or
47.1 	(2) registered in another state or country and has not been in this state for more 
47.2 	than 30 consecutive days.

47.3 	Sec. 11. Minnesota Statutes 2008, section 84.82, subdivision 3, is amended to read:
47.4 		Subd. 3.Fees for registration. (a) The fee for registration of each snowmobile, 
47.5 	other than those used for an agricultural purpose, as defined in section 84.92, subdivision 
47.6 	1c, or those registered by a dealer or manufacturer pursuant to clause (b) or (c) shall be as 
47.7 	follows: $45 for three years and $4 for a duplicate or transfer.  
47.8 	(b) The total registration fee for all snowmobiles owned by a dealer and operated for 
47.9 	demonstration or testing purposes shall be $50 per year.
47.10 	(c) The total registration fee for all snowmobiles owned by a manufacturer and 
47.11 	operated for research, testing, experimentation, or demonstration purposes shall be $150 
47.12 	per year. Dealer and manufacturer registrations are not transferable.
47.13 	(d) The onetime fee for registration of an exempt snowmobile under subdivision 
47.14 	6a is $6.

47.15 	Sec. 12. Minnesota Statutes 2008, section 84.82, subdivision 6, is amended to read:
47.16 		Subd. 6.Exemptions. Registration is not required under this section for:
47.17 	(1) a snowmobile owned and used by the United States, an Indian tribal government, 
47.18 	another state, or a political subdivision thereof;
47.19 	(2) a snowmobile registered in a country other than the United States temporarily 
47.20 	used within this state;
47.21 	(3) a snowmobile that is covered by a valid license of another state and has not been 
47.22 	within this state for more than 30 consecutive days;
47.23 	(4) a snowmobile used exclusively in organized track racing events;
47.24 	(5) a snowmobile in transit by a manufacturer, distributor, or dealer;
47.25 	(6) a snowmobile at least 15 years old in transit by an individual for use only on 
47.26 	land owned or leased by the individual; or
47.27 	(7) a snowmobile while being used to groom a state or grant-in-aid trail.

47.28 	Sec. 13. Minnesota Statutes 2008, section 84.82, is amended by adding a subdivision 
47.29 	to read:
47.30 		Subd. 6a.Exemption; collector unlimited snowmobile use. Snowmobiles may be 
47.31 	issued an exempt registration if the machine is at least 25 years old. Exempt registration is 
47.32 	valid from the date of issuance until ownership of the snowmobile is transferred. Exempt 
47.33 	registrations are not transferable.

48.1 	Sec. 14. Minnesota Statutes 2008, section 84.8205, subdivision 1, is amended to read:
48.2 		Subdivision 1.Sticker required; fee. (a) Except as provided in paragraph (b), a 
48.3 	person may not operate a snowmobile on a state or grant-in-aid snowmobile trail unless a 
48.4 	snowmobile state trail sticker is affixed to the snowmobile. The commissioner of natural 
48.5 	resources shall issue a sticker upon application and payment of a $15 fee. The fee for a 
48.6 	three-year snowmobile state trail sticker that is purchased at the time of snowmobile 
48.7 	registration is $30. In addition to other penalties prescribed by law, a person in violation 
48.8 	of this subdivision must purchase an annual state trail sticker for a fee of $30. The sticker 
48.9 	is valid from November 1 through June 30. Fees collected under this section, except for 
48.10 	the issuing fee for licensing agents, shall be deposited in the state treasury and credited 
48.11 	to the snowmobile trails and enforcement account in the natural resources fund and, 
48.12 	except for the electronic licensing system commission established by the commissioner 
48.13 	under section 84.027, subdivision 15, must be used for grants-in-aid, trail maintenance, 
48.14 	grooming, and easement acquisition.
48.15 	(b) A state trail sticker is not required under this section for:
48.16 	(1) a snowmobile owned by the state or a political subdivision of the state that is 
48.17 	registered under section 84.82, subdivision 5;
48.18 	(2) a snowmobile that is owned and used by the United States, an Indian tribal 
48.19 	government, another state, or a political subdivision thereof that is exempt from 
48.20 	registration under section 84.82, subdivision 6;
48.21 	(3) a collector snowmobile that is operated as provided in a special permit issued for 
48.22 	the collector snowmobile under section 84.82, subdivision 7a; 
48.23 	(4) a person operating a snowmobile only on the portion of a trail that is owned by 
48.24 	the person or the person's spouse, child, or parent; or
48.25 	(5) a snowmobile while being used to groom a state or grant-in-aid trail.
48.26 	(c) A temporary registration permit issued by a dealer under section 84.82, 
48.27 	subdivision 2, may include a snowmobile state trail sticker if the trail sticker fee is 
48.28 	included with the registration application fee.

48.29 	Sec. 15. Minnesota Statutes 2008, section 84.92, subdivision 9, is amended to read:
48.30 		Subd. 9.Class 1 all-terrain vehicle. "Class 1 all-terrain vehicle" means an 
48.31 	all-terrain vehicle that has a total dry weight of less than 900 1,000 pounds.

48.32 	Sec. 16. Minnesota Statutes 2008, section 84.92, subdivision 10, is amended to read:
48.33 		Subd. 10.Class 2 all-terrain vehicle. "Class 2 all-terrain vehicle" means an 
48.34 	all-terrain vehicle that has a total dry weight of 900 1,000 to 1,500 1,800 pounds.

49.1 	Sec. 17. Minnesota Statutes 2009 Supplement, section 84.922, subdivision 1a, is 
49.2 	amended to read:
49.3 		Subd. 1a.Exemptions. All-terrain vehicles exempt from registration are:
49.4 	(1) vehicles owned and used by the United States, an Indian tribal government, the 
49.5 	state, another state, or a political subdivision;
49.6 	(2) vehicles registered in another state or country that have not been in this state for 
49.7 	more than 30 consecutive days; 
49.8 	(3) vehicles that:
49.9 	(i) are owned by a resident of another state or country that does not require 
49.10 	registration of all-terrain vehicles;
49.11 	(ii) have not been in this state for more than 30 consecutive days; and
49.12 	(iii) are operated on state and grant-in-aid trails by a nonresident possessing a 
49.13 	nonresident all-terrain vehicle state trail pass;
49.14 	(4) vehicles used exclusively in organized track racing events; and
49.15 	(5) vehicles that are 25 years old or older and were originally produced as a separate 
49.16 	identifiable make by a manufacturer.

49.17 	Sec. 18. Minnesota Statutes 2008, section 84.922, is amended by adding a subdivision 
49.18 	to read:
49.19 		Subd. 2b.Collector unlimited use; exempt registration. All-terrain vehicles may 
49.20 	be issued an exempt registration if requested and the machine is at least 25 years old. 
49.21 	Exempt registration is valid from the date of issuance until ownership of the all-terrain 
49.22 	vehicle is transferred. Exempt registrations are not transferable.

49.23 	Sec. 19. Minnesota Statutes 2008, section 84.922, subdivision 5, is amended to read:
49.24 		Subd. 5.Fees for registration. (a) The fee for a three-year registration of 
49.25 	an all-terrain vehicle under this section, other than those registered by a dealer or 
49.26 	manufacturer under paragraph (b) or (c), is:
49.27 	(1) for public use, $45;
49.28 	(2) for private use, $6; and
49.29 	(3) for a duplicate or transfer, $4.
49.30 	(b) The total registration fee for all-terrain vehicles owned by a dealer and operated 
49.31 	for demonstration or testing purposes is $50 per year. Dealer registrations are not 
49.32 	transferable.
50.1 	(c) The total registration fee for all-terrain vehicles owned by a manufacturer and 
50.2 	operated for research, testing, experimentation, or demonstration purposes is $150 per 
50.3 	year. Manufacturer registrations are not transferable.
50.4 	(d) The onetime fee for registration of an all-terrain vehicle under subdivision 2b 
50.5 	is $6.
50.6 	(e) The fees collected under this subdivision must be credited to the all-terrain 
50.7 	vehicle account.

50.8 	Sec. 20. Minnesota Statutes 2008, section 84.925, subdivision 1, is amended to read:
50.9 		Subdivision 1.Program established. (a) The commissioner shall establish a 
50.10 	comprehensive all-terrain vehicle environmental and safety education and training 
50.11 	program, including the preparation and dissemination of vehicle information and safety 
50.12 	advice to the public, the training of all-terrain vehicle operators, and the issuance of 
50.13 	all-terrain vehicle safety certificates to vehicle operators over the age of 12 years who 
50.14 	successfully complete the all-terrain vehicle environmental and safety education and 
50.15 	training course.
50.16 	(b) For the purpose of administering the program and to defray a portion of the 
50.17 	expenses of training and certifying vehicle operators, the commissioner shall collect a fee 
50.18 	of $15 from each person who receives the training. The commissioner shall collect a fee, 
50.19 	to include a $1 issuing fee for licensing agents, for issuing a duplicate all-terrain vehicle 
50.20 	safety certificate. The commissioner shall establish the fee for a duplicate all-terrain 
50.21 	vehicle safety certificate that neither significantly overrecovers nor underrecovers costs, 
50.22 	including overhead costs, involved in providing the service. Fee proceeds, except for the 
50.23 	issuing fee for licensing agents under this subdivision, shall be deposited in the all-terrain 
50.24 	vehicle account in the natural resources fund. In addition to the fee established by the 
50.25 	commissioner, instructors may charge each person the cost ofup to the established fee 
50.26 	amount for class materialmaterials and expenses.
50.27 	(c) The commissioner shall cooperate with private organizations and associations, 
50.28 	private and public corporations, and local governmental units in furtherance of the program 
50.29 	established under this section. School districts may cooperate with the commissioner 
50.30 	and volunteer instructors to provide space for the classroom portion of the training. The 
50.31 	commissioner shall consult with the commissioner of public safety in regard to training 
50.32 	program subject matter and performance testing that leads to the certification of vehicle 
50.33 	operators. By June 30, 2003, the commissioner shall incorporate a riding component in 
50.34 	the safety education and training program.

51.1 	Sec. 21. Minnesota Statutes 2008, section 84.9256, subdivision 1, is amended to read:
51.2 		Subdivision 1.Prohibitions on youthful operators. (a) Except for operation on 
51.3 	public road rights-of-way that is permitted under section 84.928, a driver's license issued 
51.4 	by the state or another state is required to operate an all-terrain vehicle along or on a 
51.5 	public road right-of-way.
51.6 	(b) A person under 12 years of age shall not:
51.7 	(1) make a direct crossing of a public road right-of-way;
51.8 	(2) operate an all-terrain vehicle on a public road right-of-way in the state; or
51.9 	(3) operate an all-terrain vehicle on public lands or waters, except as provided in 
51.10 	paragraph (f).
51.11 	(c) Except for public road rights-of-way of interstate highways, a person 12 years 
51.12 	of age but less than 16 years may make a direct crossing of a public road right-of-way 
51.13 	of a trunk, county state-aid, or county highway or operate on public lands and waters or 
51.14 	state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety 
51.15 	certificate issued by the commissioner and is accompanied on another all-terrain vehicle
51.16 	by a person 18 years of age or older who holds a valid driver's license.
51.17 	(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years 
51.18 	old, but less than 16 years old, must:
51.19 	(1) successfully complete the safety education and training program under section 
51.20 	84.925, subdivision 1, including a riding component; and
51.21 	(2) be able to properly reach and control the handle bars and reach the foot pegs 
51.22 	while sitting upright on the seat of the all-terrain vehicle.
51.23 	(e) A person at least 11 years of age may take the safety education and training 
51.24 	program and may receive an all-terrain vehicle safety certificate under paragraph (d), but 
51.25 	the certificate is not valid until the person reaches age 12.
51.26 	(f) A person at least ten years of age but under 12 years of age may operate an 
51.27 	all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if 
51.28 	accompanied by a parent or legal guardian.
51.29 	(g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
51.30 	(h) A person under the age of 16 may not operate an all-terrain vehicle on public 
51.31 	lands or waters or on state or grant-in-aid trails if the person cannot properly reach and 
51.32 	control the handle bars and reach the foot pegs while sitting upright on the seat of the 
51.33 	all-terrain vehicle.
51.34 	(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than 
51.35 	16 years old, may make a direct crossing of a public road right-of-way of a trunk, county 
52.1 	state-aid, or county highway or operate an all-terrain vehicle on public lands and waters 
52.2 	or state or grant-in-aid trails if:
52.3 	(1) the nonresident youth has in possession evidence of completing an all-terrain 
52.4 	safety course offered by the ATV Safety Institute or another state as provided in section 
52.5 	84.925, subdivision 3; and
52.6 	(2) the nonresident youth is accompanied by a person 18 years of age or older who 
52.7 	holds a valid driver's license.

52.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

52.9 	Sec. 22. Minnesota Statutes 2009 Supplement, section 84.9275, subdivision 1, is 
52.10 	amended to read:
52.11 		Subdivision 1.Pass required; fee. (a) A nonresident may not operate an all-terrain 
52.12 	vehicle on a state or grant-in-aid all-terrain vehicle trail unless the operator carries a valid 
52.13 	nonresident all-terrain vehicle state trail pass in immediate possession. The pass must 
52.14 	be available for inspection by a peace officer, a conservation officer, or an employee 
52.15 	designated under section 84.0835.
52.16 	(b) The commissioner of natural resources shall issue a pass upon application and 
52.17 	payment of a $20 fee. The pass is valid from January 1 through December 31. Fees 
52.18 	collected under this section, except for the issuing fee for licensing agents, shall be 
52.19 	deposited in the state treasury and credited to the all-terrain vehicle account in the natural 
52.20 	resources fund and, except for the electronic licensing system commission established by 
52.21 	the commissioner under section 84.027, subdivision 15, must be used for grants-in-aid to 
52.22 	counties and municipalities for all-terrain vehicle organizations to construct and maintain 
52.23 	all-terrain vehicle trails and use areas.
52.24 	(c) A nonresident all-terrain vehicle state trail pass is not required for:
52.25 	(1) an all-terrain vehicle that is owned and used by the United States, another state, 
52.26 	or a political subdivision thereof that is exempt from registration under section 84.922, 
52.27 	subdivision 1a; or
52.28 	(2) a person operating an all-terrain vehicle only on the portion of a trail that is 
52.29 	owned by the person or the person's spouse, child, or parent.; or
52.30 	(3) a nonresident operating an all-terrain vehicle that is registered according to 
52.31 	section 84.922.

52.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

53.1 	Sec. 23. Minnesota Statutes 2009 Supplement, section 84.928, subdivision 1, is 
53.2 	amended to read:
53.3 		Subdivision 1.Operation on roads and rights-of-way. (a) Unless otherwise 
53.4 	allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in 
53.5 	this state along or on the roadway, shoulder, or inside bank or slope of a public road 
53.6 	right-of-way of a trunk, county state-aid, or county highway.
53.7 	(b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside 
53.8 	bank or slope of a trunk, county state-aid, or county highway unless prohibited under 
53.9 	paragraph (d) or (f).
53.10 	(c) A person may operate a class 2 all-terrain vehicle within the public road 
53.11 	right-of-way of a county state-aid or county highway on the extreme right-hand side of 
53.12 	the road and left turns may be made from any part of the road if it is safe to do so under 
53.13 	the prevailing conditions, unless prohibited under paragraph (d) or (f). A person may 
53.14 	operate a class 2 all-terrain vehicle on the bank or ditch of a public road right-of-way on a 
53.15 	designated class 2 all-terrain vehicle trail.
53.16 	(d) A road authority as defined under section 160.02, subdivision 25, may after a 
53.17 	public hearing restrict the use of all-terrain vehicles in the public road right-of-way under 
53.18 	its jurisdiction.
53.19 	(e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the 
53.20 	operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside 
53.21 	bank or slope of a trunk, interstate, county state-aid, or county highway:
53.22 	(1) that is part of a funded grant-in-aid trail; or
53.23 	(2) when the all-terrain vehicle is:
53.24 	(1) owned by or operated under contract with a publicly or privately owned utility 
53.25 	or pipeline company; and
53.26 	(2) used for work on utilities or pipelines.
53.27 	(f) The commissioner may limit the use of a right-of-way for a period of time if the 
53.28 	commissioner determines that use of the right-of-way causes:
53.29 	(1) degradation of vegetation on adjacent public property;
53.30 	(2) siltation of waters of the state;
53.31 	(3) impairment or enhancement to the act of taking game; or
53.32 	(4) a threat to safety of the right-of-way users or to individuals on adjacent public 
53.33 	property.
53.34 	The commissioner must notify the road authority as soon as it is known that a closure 
53.35 	will be ordered. The notice must state the reasons and duration of the closure.
54.1 	(g) A person may operate an all-terrain vehicle registered for private use and used 
54.2 	for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or 
54.3 	county highway in this state if the all-terrain vehicle is operated on the extreme right-hand 
54.4 	side of the road, and left turns may be made from any part of the road if it is safe to do so 
54.5 	under the prevailing conditions.
54.6 	(h) A person shall not operate an all-terrain vehicle within the public road 
54.7 	right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in 
54.8 	the agricultural zone unless the vehicle is being used exclusively as transportation to and 
54.9 	from work on agricultural lands. This paragraph does not apply to an agent or employee 
54.10 	of a road authority, as defined in section 160.02, subdivision 25, or the Department of 
54.11 	Natural Resources when performing or exercising official duties or powers.
54.12 	(i) A person shall not operate an all-terrain vehicle within the public road 
54.13 	right-of-way of a trunk, county state-aid, or county highway between the hours of one-half 
54.14 	hour after sunset to one-half hour before sunrise, except on the right-hand side of the 
54.15 	right-of-way and in the same direction as the highway traffic on the nearest lane of the 
54.16 	adjacent roadway.
54.17 	(j) A person shall not operate an all-terrain vehicle at any time within the 
54.18 	right-of-way of an interstate highway or freeway within this state.

54.19 	Sec. 24. Minnesota Statutes 2008, section 84.928, subdivision 5, is amended to read:
54.20 		Subd. 5.Organized contests, use of highways and public lands and waters. (a) 
54.21 	Nothing in this section or chapter 169 prohibits the use of all-terrain vehicles within the 
54.22 	right-of-way of a state trunk or county state-aid highway or upon public lands or waters 
54.23 	under the jurisdiction of the commissioner of natural resources, in an organized contest or 
54.24 	event, subject to the consent of the official or board having jurisdiction over the highway 
54.25 	or public lands or waters.
54.26 	(b) In permitting the contest or event, the official or board having jurisdiction may 
54.27 	prescribe restrictions or conditions as they may deem advisable.
54.28 	(c) Notwithstanding section 84.9256, subdivision 1, paragraph (b), a person under 
54.29 	12 years of age may operate an all-terrain vehicle in an organized contest on public lands 
54.30 	or waters, if the all-terrain vehicle has an engine capacity of 90cc or less, the person 
54.31 	complies with section 84.9256, subdivision 1, paragraph (h), and the person is supervised 
54.32 	by a person 18 years of age or older.

54.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

55.1 	Sec. 25. Minnesota Statutes 2008, section 84D.10, is amended by adding a subdivision 
55.2 	to read:
55.3 		Subd. 4.Persons leaving public waters. (a) A person leaving waters of the state 
55.4 	must drain boating-related equipment holding water and live wells and bilges by removing 
55.5 	the drain plug before transporting the watercraft and associated equipment on public 
55.6 	roads. Drain plugs, bailers, valves, or other devices used to control the draining of water 
55.7 	from ballast tanks, bilges, and live wells must be removed or opened while transporting 
55.8 	watercraft on a public road. Marine sanitary systems and portable bait containers are 
55.9 	excluded from this requirement. A person must not dispose of bait in waters of the state.
55.10 	(b) The commissioner shall report, by January 15 of each odd-numbered year, to 
55.11 	the chairs and ranking minority members of the house of representatives and senate 
55.12 	committees and divisions having jurisdiction over water resources policy and finance. The 
55.13 	report shall advise the legislature on additional measures to protect state water resources 
55.14 	from human transport of invasive species.

55.15 	Sec. 26. Minnesota Statutes 2008, section 84D.13, subdivision 5, is amended to read:
55.16 		Subd. 5.Civil penalties. A civil citation issued under this section must impose 
55.17 	the following penalty amounts:
55.18 	(1) for transporting aquatic macrophytes on a forest road as defined by section 
55.19 	89.001, subdivision 14, road or highway as defined by section 160.02, subdivision 26, or 
55.20 	any other public road, $50;  
55.21 	(2) for placing or attempting to place into waters of the state a watercraft, a trailer, or 
55.22 	aquatic plant harvesting equipment that has aquatic macrophytes attached, $100;
55.23 	(3) for unlawfully possessing or transporting a prohibited invasive species other 
55.24 	than an aquatic macrophyte, $250;
55.25 	(4) for placing or attempting to place into waters of the state a watercraft, a trailer, or 
55.26 	aquatic plant harvesting equipment that has prohibited invasive species attached when 
55.27 	the waters are not designated by the commissioner as being infested with that invasive 
55.28 	species, $500 for the first offense and $1,000 for each subsequent offense;
55.29 	(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as 
55.30 	prescribed by rule, Eurasian water milfoil, $100;
55.31 	(6) for failing to drain water, as required by rule, for infested waters and from 
55.32 	watercraft and equipment, other than marine sanitary systems and portable bait containers 
55.33 	 before leaving designated zebra mussel, spiny water flea, or other invasive plankton 
55.34 	infested waters of the state, $50; and
56.1 	(7) for transporting infested water off riparian property without a permit as required 
56.2 	by rule, $200.

56.3 	Sec. 27. Minnesota Statutes 2009 Supplement, section 85.015, subdivision 13, is 
56.4 	amended to read:
56.5 		Subd. 13.Arrowhead Region Trails, in Cook, Lake, St. Louis, Pine, Carlton, 
56.6 	Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St. 
56.7 	Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to 
56.8 	McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in 
56.9 	Itasca County and there terminate;
56.10 	(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County 
56.11 	and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand 
56.12 	Marais in Cook County, thence northeasterly to the international boundary in the vicinity 
56.13 	of the north shore of Lake Superior, and there terminate;
56.14 	(3) The Grand Marais to International Falls Trail shall originate in Grand Marais 
56.15 	in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area, 
56.16 	to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to 
56.17 	Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St. 
56.18 	Louis County to International Falls in Koochiching County, and there terminate;
56.19 	(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and 
56.20 	extend southerly to St. Croix State Forest in Pine County.
56.21 	(b) The trails shall be developed primarily for riding and hiking.
56.22 	(c) In addition to the authority granted in subdivision 1, lands and interests in lands 
56.23 	for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring 
56.24 	any land or interest in land by eminent domain the commissioner of administration shall 
56.25 	obtain the approval of the governor. The governor shall consult with the Legislative 
56.26 	Advisory Commission before granting approval. Recommendations of the Legislative 
56.27 	Advisory Commission shall be advisory only. Failure or refusal of the commission to 
56.28 	make a recommendation shall be deemed a negative recommendation.

56.29 	Sec. 28. Minnesota Statutes 2008, section 85.015, subdivision 14, is amended to read:
56.30 		Subd. 14.Willard Munger Trail System, Chisago, Ramsey, Pine, St. Louis, 
56.31 	Carlton, and Washington Counties. (a) The trail shall consist of six segments. One 
56.32 	segment shall be known as the Gateway Trail and shall originate at the State Capitol 
56.33 	and extend northerly and northeasterly to William O'Brien State Park, thence northerly 
56.34 	to Taylors Falls in Chisago County. One segment shall be known as the Boundary Trail 
57.1 	and shall originate in Chisago County and extend into Duluth in St. Louis Hinckley in 
57.2 	Pine County. One segment shall be known as the Browns Creek Trail and shall originate 
57.3 	at Duluth Junction and extend into Stillwater in Washington County. One segment shall 
57.4 	be known as the Munger Trail and shall originate at Hinckley in Pine County and extend 
57.5 	through Moose Lake in Carlton County to Duluth in St. Louis County. One segment shall 
57.6 	be known as the Alex Laveau Trail and shall originate in Carlton County at Carlton and 
57.7 	extend through Wrenshall to the Minnesota-Wisconsin border. One segment shall be 
57.8 	established that extends the trail to include the cities of Proctor, Duluth, and Hermantown 
57.9 	in St. Louis County.
57.10 	(b) The Gateway and Browns Creek Trails shall be developed primarily for hiking 
57.11 	and nonmotorized riding and the remaining trails shall be developed primarily for riding 
57.12 	and hiking.
57.13 	(c) In addition to the authority granted in subdivision 1, lands and interests in lands 
57.14 	for the Gateway and Browns Creek Trails may be acquired by eminent domain.

57.15 	Sec. 29. Minnesota Statutes 2008, section 85.052, subdivision 4, is amended to read:
57.16 		Subd. 4.Deposit of fees. (a) Fees paid for providing contracted products and 
57.17 	services within a state park, state recreation area, or wayside, and for special state park 
57.18 	uses under this section shall be deposited in the natural resources fund and credited to a 
57.19 	state parks account.
57.20 	(b) Gross receipts derived from sales, rentals, or leases of natural resources within 
57.21 	state parks, recreation areas, and waysides, other than those on trust fund lands, must be 
57.22 	deposited in the state treasury and credited to the general fund state parks working capital 
57.23 	account. The appropriation under section 85.22 for revenue deposited in this section is 
57.24 	limited to $25,000 per fiscal year.
57.25 	(c) Notwithstanding paragraph (b), the gross receipts from the sale of stockpile 
57.26 	materials, aggregate, or other earth materials from the Iron Range Off-Highway Vehicle 
57.27 	Recreation Area shall be deposited in the dedicated accounts in the natural resources fund 
57.28 	from which the purchase of the stockpile material was made.

57.29 	EFFECTIVE DATE. This section is effective July 1, 2011.

57.30 	Sec. 30. Minnesota Statutes 2009 Supplement, section 85.053, subdivision 10, is 
57.31 	amended to read:
57.32 		Subd. 10.Free entrance; totally and permanently disabled veterans. The 
57.33 	commissioner shall issue an annual park permit for no charge to any veteran with a total 
57.34 	and permanent service-connected disability, and a daily park permit to any resident 
58.1 	veteran with any level of service-connected disability, as determined by the United States 
58.2 	Department of Veterans Affairs, who presents each year a copy of their the veteran's
58.3 	determination letter to a park attendant or commissioner's designee. For the purposes of 
58.4 	this section, "veteran" has the meaning given in section 197.447.

58.5 	EFFECTIVE DATE. This section is effective July 1, 2010.

58.6 	Sec. 31. Minnesota Statutes 2008, section 85.22, subdivision 5, is amended to read:
58.7 		Subd. 5.Exemption. Purchases for resale or rental made from the state parks 
58.8 	working capital fund account are exempt from competitive bidding, notwithstanding 
58.9 	chapter 16C.

58.10 	Sec. 32. Minnesota Statutes 2008, section 85.32, subdivision 1, is amended to read:
58.11 		Subdivision 1.Areas marked. The commissioner of natural resources is authorized 
58.12 	in cooperation with local units of government and private individuals and groups when 
58.13 	feasible to mark canoe and boating routes state water trails on the Little Fork, Big Fork, 
58.14 	Minnesota, St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, 
58.15 	Crow Wing, St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre 
58.16 	within Swift County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in 
58.17 	Swift County to Montevideo in Chippewa County, Long Prairie, Red River of the North, 
58.18 	Sauk, Otter Tail, Redwood, Blue Earth, and Crow Rivers which have historic and scenic 
58.19 	values and to mark appropriately points of interest, portages, camp sites, and all dams, 
58.20 	rapids, waterfalls, whirlpools, and other serious hazards which are dangerous to canoe, 
58.21 	kayak, and watercraft travelers.

58.22 	Sec. 33. Minnesota Statutes 2008, section 85.41, subdivision 3, is amended to read:
58.23 		Subd. 3.Exemptions. (a) Participants in cross-country ski races and official school 
58.24 	activities and residents of a state or local government operated correctional facility are 
58.25 	exempt from the pass requirement in subdivision 1 if a special use permit has been 
58.26 	obtained by the organizers of the event or those in an official capacity in advance from the 
58.27 	agency with jurisdiction over the cross-country ski trail. Permits shall require that permit 
58.28 	holders return the trail and any associated facility to its original condition if any damage 
58.29 	is done by the permittee. Limited permits for special events may be issued and shall 
58.30 	require the removal of any trail markers, banners, and other material used in connection 
58.31 	with the special event.
59.1 	(b) Unless otherwise exempted under paragraph (a), students, teachers, and 
59.2 	supervising adults engaged in school-sanctioned activities or youth activities sponsored by 
59.3 	a nonprofit organization are exempt from the pass requirements in subdivision 1.
59.4 	(c) A resident that is in the armed forces of the United States, stationed outside of 
59.5 	the state, and in the state on leave is exempt from the pass requirement in subdivision 1 if 
59.6 	the resident possesses official military leave papers.
59.7 	(d) A resident who has served at any time during the preceding 24 months in federal 
59.8 	active service, as defined in section 190.05, subdivision 5c, outside the United States as 
59.9 	a member of the National Guard, or as a reserve component or active duty member of 
59.10 	the United Stated armed forces and has been discharged from active service is exempt 
59.11 	from the pass requirement in subdivision 1 if the resident possesses official military 
59.12 	discharge papers.

59.13 	Sec. 34. Minnesota Statutes 2008, section 85.42, is amended to read:
59.14 	85.42 USER FEE; VALIDITY.
59.15 	(a) The fee for an annual cross-country ski pass is $14 $19 for an individual age 16 
59.16 	and over. The fee for a three-year pass is $39 $54 for an individual age 16 and over. This 
59.17 	fee shall be collected at the time the pass is purchased. Three-year passes are valid for 
59.18 	three years beginning the previous July 1. Annual passes are valid for one year beginning 
59.19 	the previous July 1.
59.20 	(b) The cost for a daily cross-country skier pass is $4 $5 for an individual age 16 and 
59.21 	over. This fee shall be collected at the time the pass is purchased. The daily pass is valid 
59.22 	only for the date designated on the pass form.
59.23 	(c) A pass must be signed by the skier across the front of the pass to be valid and 
59.24 	becomes nontransferable on signing.

59.25 	Sec. 35. Minnesota Statutes 2008, section 85.43, is amended to read:
59.26 	85.43 DISPOSITION OF RECEIPTS; PURPOSE.
59.27 	(a) Fees from cross-country ski passes shall be deposited in the state treasury and 
59.28 	credited to a cross-country ski account in the natural resources fund and, except for the 
59.29 	electronic licensing system commission established by the commissioner under section 
59.30 	84.027, subdivision 15, are appropriated to the commissioner of natural resources for 
59.31 	the following purposes:
59.32 	(1) grants-in-aid for cross-country ski trails sponsored by local units of government
59.33 	to:
60.1 	(i) counties and municipalities for construction and maintenance of cross-country 
60.2 	ski trails; and
60.3 	(ii) special park districts as provided in section 85.44 for construction and 
60.4 	maintenance of cross-country ski trails; and
60.5 	(2) administration of the cross-country ski trail grant-in-aid program.
60.6 	(b) Development and maintenance of state cross-country ski trails are eligible for 
60.7 	funding from the cross-country ski account if the money is appropriated by law.

60.8 	Sec. 36. Minnesota Statutes 2008, section 85.46, as amended by Laws 2009, chapter 
60.9 	37, article 1, sections 22 to 24, is amended to read:
60.10 	85.46 HORSE TRAIL PASS.
60.11 		Subdivision 1.Pass in possession. (a) Except as provided in paragraph (b), while 
60.12 	riding, leading, or driving a horse on horse trails and associated day use areas on state
60.13 	trails, in state parks, in state recreation areas, and in state forests, on lands administered by 
60.14 	the commissioner, except forest roads and forest roads rights-of-way, a person 16 years of 
60.15 	age or over shall carry in immediate possession a valid horse trail pass. The pass must 
60.16 	be available for inspection by a peace officer, a conservation officer, or an employee 
60.17 	designated under section 84.0835.
60.18 	(b) A valid horse trail pass is not required under this section for a person riding, 
60.19 	leading, or driving a horse only on the portion of a horse trailproperty that is owned by 
60.20 	the person or the person's spouse, child, parent, or guardian.
60.21 		Subd. 2.License agents. (a) The commissioner of natural resources may appoint 
60.22 	agents to issue and sell horse trail passes. The commissioner may revoke the appointment 
60.23 	of an agent at any time.
60.24 	(b) The commissioner may adopt additional rules as provided in section 97A.485, 
60.25 	subdivision 11. An agent shall observe all rules adopted by the commissioner for the 
60.26 	accounting and handling of passes according to section 97A.485, subdivision 11.
60.27 	(c) An agent must promptly deposit and remit all money received from the sale of 
60.28 	passes, except issuing fees, to the commissioner.
60.29 		Subd. 3.Issuance. The commissioner of natural resources and agents shall issue 
60.30 	and sell horse trail passes. The pass shall include the applicant's signature and other 
60.31 	information deemed necessary by the commissioner. To be valid, a daily or annual pass 
60.32 	must be signed by the person riding, leading, or driving the horse, and a commercial 
60.33 	annual pass must be signed by the owner of the commercial trail riding facility.
61.1 		Subd. 4.Pass fees. (a) The fee for an annual horse trail pass is $20 for an individual 
61.2 	16 years of age and over. The fee shall be collected at the time the pass is purchased. 
61.3 	Annual passes are valid for one year beginning January 1 and ending December 31.
61.4 	(b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and 
61.5 	over. The fee shall be collected at the time the pass is purchased. The daily pass is valid 
61.6 	only for the date designated on the pass form.
61.7 	(c) The fee for a commercial annual horse trail pass is $200 and includes issuance 
61.8 	of 15 passes. Additional or individual commercial annual horse trail passes may be 
61.9 	purchased by the commercial trail riding facility owner at a fee of $20 each. Commercial 
61.10 	annual horse trail passes are valid for one year beginning January 1 and ending December 
61.11 	31 and may be affixed to the horse tack, saddle, or person. Commercial annual horse trail
61.12 	passes are not transferable to another commercial trail riding facility. For the purposes of 
61.13 	this section, a "commercial trail riding facility" is an operation where horses are used for 
61.14 	riding instruction or other equestrian activities for hire or use by others.
61.15 		Subd. 5.Issuing fee. In addition to the fee for a horse trail pass, an issuing fee of 
61.16 	$1 per pass shall be charged. The issuing fee shall be retained by the seller of the pass. 
61.17 	Issuing fees for passes sold by the commissioner of natural resources shall be deposited 
61.18 	in the state treasury and credited to the horse trailpass account in the natural resources 
61.19 	fund and are appropriated to the commissioner for the operation of the electronic licensing 
61.20 	system. A pass shall indicate the amount of the fee that is retained by the seller.
61.21 		Subd. 6.Disposition of receipts. Fees collected under this section, except for 
61.22 	the issuing fee, shall be deposited in the state treasury and credited to the horse trail
61.23 	pass account in the natural resources fund. Except for the electronic licensing system 
61.24 	commission established by the commissioner under section 84.027, subdivision 15, the 
61.25 	fees are appropriated to the commissioner of natural resources for trail acquisition, trail and 
61.26 	facility development, and maintenance, enforcement, and rehabilitation of horse trails or 
61.27 	trails authorized for horse use, whether for riding, leading, or driving, on state trails and in 
61.28 	state parks, state recreation areas, and state forests land administered by the commissioner.
61.29 		Subd. 7.Duplicate horse trail passes. The commissioner of natural resources and 
61.30 	agents shall issue a duplicate pass to a person or commercial trail riding facility owner 
61.31 	whose pass is lost or destroyed using the process established under section 97A.405, 
61.32 	subdivision 3, and rules adopted thereunder. The fee for a duplicate horse trail pass is $2, 
61.33 	with an issuing fee of 50 cents.

61.34 	Sec. 37. Minnesota Statutes 2009 Supplement, section 86A.09, subdivision 1, is 
61.35 	amended to read:
62.1 		Subdivision 1.Master plan required. No construction of new facilities or other 
62.2 	development of an authorized unit, other than repairs and maintenance, shall commence 
62.3 	until the managing agency has prepared and submitted to the commissioner of natural 
62.4 	resources and the commissioner has reviewed, pursuant to this section, a master plan for 
62.5 	administration of the unit in conformity with this section. No master plan is required for 
62.6 	wildlife management areas that do not have resident managers, for scientific and natural 
62.7 	areas, for water access sites, for aquatic management areas, for rest areas, or for boater 
62.8 	waysides.

62.9 	Sec. 38. Minnesota Statutes 2008, section 86B.301, subdivision 2, is amended to read:
62.10 		Subd. 2.Exemptions. A watercraft license is not required for:
62.11 	(1) a watercraft that is covered by a license or number in full force and effect under 
62.12 	federal law or a federally approved licensing or numbering system of another state, and 
62.13 	has not been within this state for more than 90 consecutive days, which does not include 
62.14 	days that a watercraft is laid up at dock over winter or for repairs at a Lake Superior 
62.15 	port or another port in the state;
62.16 	(2) a watercraft from a country other than the United States that has not been 
62.17 	within this state for more than 90 consecutive days, which does not include days that a 
62.18 	watercraft is laid up at dock over winter or for repairs at a Lake Superior port or another 
62.19 	port in the state;
62.20 	(3) a watercraft owned by the United States, an Indian tribal government, a state, or 
62.21 	a political subdivision of a state, except watercraft used for recreational purposes;
62.22 	(4) a ship's lifeboat;
62.23 	(5) a watercraft that has been issued a valid marine document by the United States 
62.24 	government;
62.25 	(6) a duck boat during duck hunting season;
62.26 	(7) a rice boat during the harvest season;
62.27 	(8) a seaplane; and
62.28 	(9) a nonmotorized watercraft nine feet in length or less.

62.29 	EFFECTIVE DATE. This section is effective the day following a notice published 
62.30 	in the State Register by the commissioner of natural resources that the change in clause 
62.31 	(3) has been approved by the United States Coast Guard pursuant to Code of Federal 
62.32 	Regulations, title 33, section 174.7.

62.33 	Sec. 39. Minnesota Statutes 2008, section 86B.501, is amended by adding a 
62.34 	subdivision to read:
63.1 		Subd. 4.Rowing team members; personal flotation devices. Notwithstanding 
63.2 	subdivision 1, a member of a rowing team that is sanctioned by an academic or nonprofit 
63.3 	entity is not required to wear or possess, and no local ordinance or rule may require a 
63.4 	member of a rowing team to wear or possess, a personal flotation device in a racing shell 
63.5 	if a chase boat carrying the devices prescribed under subdivision 1 accompanies the racing 
63.6 	shell. The requirement for a chase boat does not apply on waters where it is preempted by 
63.7 	federal regulations.

63.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

63.9 	Sec. 40. Minnesota Statutes 2008, section 88.17, subdivision 1, is amended to read:
63.10 		Subdivision 1.Permit Permission required. (a) A permit Permission to start a fire 
63.11 	to burn vegetative materials and other materials allowed by Minnesota Statutes or official 
63.12 	state rules and regulations may be given by the commissioner or the commissioner's agent. 
63.13 	This permission shall be in the form of:
63.14 	(1) a written permit issued by a forest officer, fire warden, or other person authorized 
63.15 	by the commissioner; or
63.16 	(2) an electronic permit issued by the commissioner, an agent authorized by the 
63.17 	commissioner, or an Internet site authorized by the commissioner; or
63.18 	(3) a general permit adopted by the county board of commissioners according to 
63.19 	paragraph (c).
63.20 	(b) Written and electronic burning permits shall set the time and conditions by which 
63.21 	the fire may be started and burned. The permit shall also specifically list the materials that 
63.22 	may be burned. The permittee must have the permit on their person and shall produce 
63.23 	the permit for inspection when requested to do so by a forest officer, conservation officer, 
63.24 	or other peace officer. The permittee shall remain with the fire at all times and before 
63.25 	leaving the site shall completely extinguish the fire. A person shall not start or cause a 
63.26 	fire to be started on any land that is not owned or under their legal control without the 
63.27 	written permission of the owner, lessee, or an agent of the owner or lessee of the land. 
63.28 	Violating or exceeding the permit conditions shall constitute a misdemeanor and shall be 
63.29 	cause for the permit to be revoked.
63.30 	(c) A general burning permit may be adopted by the county board of commissioners 
63.31 	in counties that are determined by the commissioner either to not be wildfire areas as 
63.32 	defined in section 88.01, subdivision 6, or to otherwise have low potential for damage 
63.33 	to life and property from wildfire. The commissioner shall consider the history of and 
63.34 	potential for wildfire; the distribution of trees, brush, grasslands, and other vegetative 
63.35 	material; and the distribution of property subject to damage from escaped fires. Upon a 
64.1 	determination by the commissioner and adoption by a vote of the county board, permission 
64.2 	for open burning is extended to all residents in the county without the need for individual 
64.3 	written or electronic permits under this subdivision, provided burning conforms to all 
64.4 	other provisions of this chapter, including those related to responsibility to control and 
64.5 	extinguish fires, no burning of prohibited materials, and liability for damages caused by 
64.6 	violations of this chapter.
64.7 	(d) Upon adoption of a general burning permit, a county must establish specific 
64.8 	regulations by ordinance, to include at a minimum the time when and conditions under 
64.9 	which fires may be started and burned. No ordinance may be less restrictive than state law.
64.10 	(e) At any time when the commissioner or the county board determines that a general 
64.11 	burning permit is no longer in the public interest, the general permit may be canceled 
64.12 	by the commissioner or the county board.

64.13 	Sec. 41. Minnesota Statutes 2008, section 88.17, subdivision 3, is amended to read:
64.14 		Subd. 3.Special permits. The following special permits are required at all times, 
64.15 	including when the ground is snow-covered:
64.16 	(a)  Fire training. A permit to start a fire for the instruction and training of 
64.17 	firefighters, including liquid fuels training, may be given by the commissioner or agent of 
64.18 	the commissioner. Except for owners or operators conducting fire training in specialized 
64.19 	industrial settings pursuant to applicable federal, state, or local standards, owners 
64.20 	or operators conducting open burning for the purpose of instruction and training of 
64.21 	firefighters with regard to structures must follow the techniques described in a document 
64.22 	entitled: Structural Burn Training Procedures for the Minnesota Technical College System. 
64.23 	(b)  Permanent tree and brush open burning sites. A permit for the operation of 
64.24 	a permanent tree and brush burning site may be given by the commissioner or agent of 
64.25 	the commissioner. Applicants for a permanent open burning site permit shall submit a 
64.26 	complete application on a form provided by the commissioner. Existing permanent tree 
64.27 	and brush open burning sites must submit for a permit within 90 days of the passage of 
64.28 	this statute for a burning permit. New site applications must be submitted at least 90 
64.29 	days before the date of the proposed operation of the permanent open burning site. The 
64.30 	application must be submitted to the commissioner and must contain: 
64.31 	(1) the name, address, and telephone number of all owners of the site proposed for 
64.32 	use as the permanent open burning site;
64.33 	(2) if the operator for the proposed permanent open burning site is different from the 
64.34 	owner, the name, address, and telephone number of the operator;
65.1 	(3) a general description of the materials to be burned, including the source and 
65.2 	estimated quantity, dimensions of the site and burn pile areas, hours and dates of operation, 
65.3 	and provisions for smoke management; and
65.4 	(4) a topographic or similarly detailed map of the site and surrounding area within 
65.5 	a one mile circumference showing all structures that might be affected by the operation 
65.6 	of the site.
65.7 	Only trees, tree trimmings, or brush that cannot be disposed of by an alternative 
65.8 	method such as chipping, composting, or other method shall be permitted to be burned 
65.9 	at a permanent open burning site. A permanent tree and brush open burning site must 
65.10 	be located and operated so as not to create a nuisance or endanger water quality. The 
65.11 	commissioner shall revoke the permit or order actions to mitigate threats to public health, 
65.12 	safety, and the environment in the event that permit conditions are violated.

65.13 	Sec. 42. Minnesota Statutes 2008, section 88.79, subdivision 2, is amended to read:
65.14 		Subd. 2.Charge for service; receipts to special revenue fund. Notwithstanding 
65.15 	section 16A.1283, the commissioner of natural resources may charge the owner, by 
65.16 	written order published in the State Register, establish fees the commissioner determines 
65.17 	to be fair and reasonable that are charged to owners receiving such services such sums 
65.18 	as the commissioner shall determine to be fair and reasonable under subdivision 1. The 
65.19 	charges must account for differences in the value of timber and other benefits. The receipts 
65.20 	from such the services shall be credited to the special revenue fund and are annually 
65.21 	appropriated to the commissioner for the purposes specified in subdivision 1.

65.22 	Sec. 43. Minnesota Statutes 2008, section 89.17, is amended to read:
65.23 	89.17 LEASES AND PERMITS.
65.24 	Notwithstanding the permit procedures of chapter 90, the commissioner shall have 
65.25 	power to grant and execute, in the name of the state, leases and permits for the use of 
65.26 	any forest lands under the authority of the commissioner for any purpose which in the 
65.27 	commissioner's opinion is not inconsistent with the maintenance and management of the 
65.28 	forest lands, on forestry principles for timber production. Every such lease or permit shall 
65.29 	be revocable at the discretion of the commissioner at any time subject to such conditions 
65.30 	as may be agreed on in the lease. The approval of the commissioner of administration 
65.31 	shall not be required upon any such lease or permit. No such lease or permit for a period 
65.32 	exceeding ten 21 years shall be granted except with the approval of the Executive Council.
65.33 	Hunting of wild game is prohibited on any land which has been posted by the lessee 
65.34 	to prohibit hunting. Such prohibition shall apply to all persons including the lessee Public 
66.1 	access to the leased land for outdoor recreation shall be the same as access would be 
66.2 	under state management.

66.3 	Sec. 44. Minnesota Statutes 2008, section 90.041, is amended by adding a subdivision 
66.4 	to read:
66.5 		Subd. 9.Reoffering unsold timber. To maintain and enhance forest ecosystems on 
66.6 	state forest lands, the commissioner may reoffer timber tracts remaining unsold under the 
66.7 	provisions of section 90.101 below appraised value at public auction with the required 
66.8 	30-day notice under section 90.101, subdivision 2.

66.9 	Sec. 45. Minnesota Statutes 2008, section 90.121, is amended to read:
66.10 	90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000 
66.11 	CORDS.
66.12 	(a) The commissioner may sell the timber on any tract of state land in lots not 
66.13 	exceeding 3,000 cords in volume, in the same manner as timber sold at public auction 
66.14 	under section 90.101, and related laws, subject to the following special exceptions and 
66.15 	limitations:
66.16 	(1) the commissioner shall offer all tracts authorized for sale by this section 
66.17 	separately from the sale of tracts of state timber made pursuant to section 90.101;
66.18 	(2) no bidder may be awarded more than 25 percent of the total tracts offered at the 
66.19 	first round of bidding unless fewer than four tracts are offered, in which case not more 
66.20 	than one tract shall be awarded to one bidder. Any tract not sold at public auction may be 
66.21 	offered for private sale as authorized by section 90.101, subdivision 1, to persons eligible 
66.22 	under this section at the appraised value; and
66.23 	(3) no sale may be made to a person having more than 20 30 employees. For the 
66.24 	purposes of this clause, "employee" means an individual working in the timber or wood 
66.25 	products industry for salary or wages on a full-time or part-time basis.
66.26 	(b) The auction sale procedure set forth in this section constitutes an additional 
66.27 	alternative timber sale procedure available to the commissioner and is not intended to 
66.28 	replace other authority possessed by the commissioner to sell timber in lots of 3,000 
66.29 	cords or less.
66.30 	(c) Another bidder or the commissioner may request that the number of employees a 
66.31 	bidder has pursuant to paragraph (a), clause (3), be confirmed if there is evidence that the 
66.32 	bidder may be ineligible due to exceeding the employee threshold. The commissioner 
66.33 	shall request information from the commissioners of labor and industry and employment 
66.34 	and economic development including the premiums paid by the bidder in question 
67.1 	for workers' compensation insurance coverage for all employees of the bidder. The 
67.2 	commissioner shall review the information submitted by the commissioners of labor and 
67.3 	industry and employment and economic development and make a determination based on 
67.4 	that information as to whether the bidder is eligible. A bidder is considered eligible and 
67.5 	may participate in intermediate auctions until determined ineligible under this paragraph.

67.6 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2006.

67.7 	Sec. 46. Minnesota Statutes 2008, section 90.14, is amended to read:
67.8 	90.14 AUCTION SALE PROCEDURE.
67.9 	(a) All state timber shall be offered and sold by the same unit of measurement as it 
67.10 	was appraised. No tract shall be sold to any person other than the purchaser in whose name 
67.11 	the bid was made. The commissioner may refuse to approve any and all bids received and 
67.12 	cancel a sale of state timber for good and sufficient reasons.
67.13 	(b) The purchaser at any sale of timber shall, immediately upon the approval of the 
67.14 	bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under 
67.15 	section 90.101, subdivision 1, pay to the commissioner a down payment of 15 percent 
67.16 	of the appraised value. In case any purchaser fails to make such payment, the purchaser 
67.17 	shall be liable therefor to the state in a civil action, and the commissioner may reoffer the 
67.18 	timber for sale as though no bid or sale under section 90.101, subdivision 1, therefor 
67.19 	had been made.
67.20 	(c) In lieu of the scaling of state timber required by this chapter, a purchaser of 
67.21 	state timber may, at the time of payment by the purchaser to the commissioner of 15 
67.22 	percent of the appraised value, elect in writing on a form prescribed by the attorney 
67.23 	general to purchase a permit based solely on the appraiser's estimate of the volume of 
67.24 	timber described in the permit, provided that the commissioner has expressly designated 
67.25 	the availability of such option for that tract on the list of tracts available for sale as 
67.26 	required under section 90.101. A purchaser who elects in writing on a form prescribed 
67.27 	by the attorney general to purchase a permit based solely on the appraiser's estimate of 
67.28 	the volume of timber described on the permit does not have recourse to the provisions 
67.29 	of section 90.281.
67.30 	(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall 
67.31 	be awarded to the high bidder, who shall pay to the commissioner a down payment of 15 
67.32 	percent of the appraised value within ten business days of receiving a written award 
67.33 	notice that must be received or postmarked within 14 days of the date of the sealed bid 
67.34 	opening. If a purchaser fails to make the down payment, the purchaser is liable for the 
68.1 	down payment to the state and the commissioner may offer the timber for sale to the next 
68.2 	highest bidder as though no higher bid had been made.
68.3 	(e) Except as otherwise provided by law, at the time the purchaser signs a permit 
68.4 	issued under section 90.151, the commissioner shall require the purchaser shallto make 
68.5 	a bid guarantee payment to the commissioner in an amount equal to 15 percent of the 
68.6 	total purchase price of the permit less the down payment amount required by paragraph 
68.7 	(b) for any bid increase in excess of $5,000 of the appraised value. If thea required bid 
68.8 	guarantee payment is not submitted with the signed permit, no harvesting may occur, the 
68.9 	permit cancels, and the down payment for timber forfeits to the state. The bid guarantee 
68.10 	payment forfeits to the state if the purchaser and successors in interest fail to execute 
68.11 	an effective permit.

68.12 	Sec. 47. Minnesota Statutes 2008, section 97B.665, subdivision 2, is amended to read:
68.13 		Subd. 2.Petition to district court. If a beaver dam causes a threat to personal 
68.14 	safety or a serious threat to damage property, and a person cannot obtain consent under 
68.15 	subdivision 1, a person may petition the district court for relief. The court may order the 
68.16 	commissionerowners of private property where beaver dams are located to take action 
68.17 	to reduce the threat. A permit is not required for an action ordered by the court. The 
68.18 	action may include destruction or alteration of beaver dams and removal of beaver. This 
68.19 	subdivision does not apply to state parks, state game refuges, and federal game refuges.

68.20 	Sec. 48. [103A.212] WATERSHED MANAGEMENT POLICY.
68.21 	The quality of life of every Minnesotan depends on water. Minnesota's rivers, lakes, 
68.22 	streams, wetlands, and groundwater provide a foundation for drinking water and the state's 
68.23 	recreational, municipal, commercial, industrial, agricultural, environmental, aesthetic, and 
68.24 	economic well-being. The legislature finds that it is in the public interest to manage 
68.25 	groundwater and surface water resources from the perspective of aquifers, watersheds, 
68.26 	and river basins to achieve protection, preservation, enhancement, and restoration of the 
68.27 	state's valuable groundwater and surface water resources.

68.28 	Sec. 49. Minnesota Statutes 2008, section 103A.305, is amended to read:
68.29 	103A.305 JURISDICTION.
68.30 	Sections 103A.301 to 103A.341 apply if the decision of an agency in a proceeding 
68.31 	involves a question of water policy in one or more of the areas of water conservation, water 
68.32 	pollution, preservation and management of wildlife, drainage, soil conservation, public 
68.33 	recreation, forest management, and municipal planning under section 97A.135; 103A.411; 
69.1 	103E.011; 103E.015; 103G.245; 103G.261; 103G.271; 103G.275; 103G.281; 103G.295, 
69.2 	subdivisions 1 and 2;103G.287; 103G.297 to 103G.311; 103G.315, subdivisions 1, 10, 
69.3 	11, and 12; 103G.401; 103G.405; 103I.681, subdivision 1; 115.04; or 115.05.  

69.4 	Sec. 50. Minnesota Statutes 2008, section 103B.702, is amended by adding a 
69.5 	subdivision to read:
69.6 		Subd. 10.Decisions; review and approval. Decisions of the Star Lake Board 
69.7 	regarding the criteria used to designate a lake or river as a "Minnesota Star Lake" or 
69.8 	"Minnesota Star River," as well as a decision to award grants, are subject to the review 
69.9 	and approval of the Board of Water and Soil Resources.

69.10 	Sec. 51. Minnesota Statutes 2009 Supplement, section 103G.201, is amended to read:
69.11 	103G.201 PUBLIC WATERS INVENTORY.
69.12 	(a) The commissioner shall maintain a public waters inventory map of each county 
69.13 	that shows the waters of this state that are designated as public waters under the public 
69.14 	waters inventory and classification procedures prescribed under Laws 1979, chapter 
69.15 	199, and shall provide access to a copy of the maps and lists. As county public waters 
69.16 	inventory maps and lists are revised according to this section, the commissioner shall send 
69.17 	a notification or a copy of the maps and lists to the auditor of each affected county.
69.18 	(b) The commissioner is authorized to revise the listmap of public waters established 
69.19 	under Laws 1979, chapter 199, to reclassify those types 3, 4, and 5 wetlands previously 
69.20 	identified as public waters wetlands under Laws 1979, chapter 199, as public waters or as 
69.21 	wetlands under section 103G.005, subdivision 19. The commissioner may only reclassify 
69.22 	public waters wetlands as public waters if:
69.23 	(1) they are assigned a shoreland management classification by the commissioner 
69.24 	under sections 103F.201 to 103F.221;
69.25 	(2) they are classified as lacustrine wetlands or deepwater habitats according to 
69.26 	Classification of Wetlands and Deepwater Habitats of the United States (Cowardin, 
69.27 	et al., 1979 edition); or
69.28 	(3) the state or federal government has become titleholder to any of the beds or 
69.29 	shores of the public waters wetlands, subsequent to the preparation of the public waters 
69.30 	inventory map filed with the auditor of the county, pursuant to paragraph (a), and the 
69.31 	responsible state or federal agency declares that the water is necessary for the purposes 
69.32 	of the public ownership.
69.33 	(c) The commissioner must provide notice of the reclassification to the local 
69.34 	government unit, the county board, the watershed district, if one exists for the area, and 
70.1 	the soil and water conservation district. Within 60 days of receiving notice from the 
70.2 	commissioner, a party required to receive the notice may provide a resolution stating 
70.3 	objections to the reclassification. If the commissioner receives an objection from a party 
70.4 	required to receive the notice, the reclassification is not effective. If the commissioner does 
70.5 	not receive an objection from a party required to receive the notice, the reclassification 
70.6 	of a wetland under paragraph (b) is effective 60 days after the notice is received by all 
70.7 	of the parties.
70.8 	(d) The commissioner shall give priority to the reclassification of public waters 
70.9 	wetlands that are or have the potential to be affected by public works projects.
70.10 	(e) The commissioner may revise the public waters inventory map and list of each 
70.11 	county:
70.12 	(1) to reflect the changes authorized in paragraph (b); and
70.13 	(2) as needed, to:
70.14 	(i) correct errors in the original inventory;
70.15 	(ii) add or subtract trout stream tributaries within sections that contain a designated 
70.16 	trout stream following written notice to the landowner;
70.17 	(iii) add depleted quarries, and sand and gravel pits, when the body of water exceeds 
70.18 	50 acres and the shoreland has been zoned for residential development; and
70.19 	(iv) add or subtract public waters that have been created or eliminated as a 
70.20 	requirement of a permit authorized by the commissioner under section 103G.245.

70.21 	Sec. 52. Minnesota Statutes 2008, section 103G.271, subdivision 3, is amended to read:
70.22 		Subd. 3.Permit restriction during summer months. The commissioner must not 
70.23 	modify or restrict the amount of appropriation from a groundwater source authorized in a 
70.24 	water use permit issued to irrigate agricultural land under section 103G.295, subdivision 
70.25 	2, between May 1 and October 1, unless the commissioner determines the authorized 
70.26 	amount of appropriation endangers a domestic water supply.  

70.27 	Sec. 53. [103G.282] MONITORING TO EVALUATE IMPACTS FROM 
70.28 	APPROPRIATIONS.
70.29 		Subdivision 1.Monitoring equipment. The commissioner may require the 
70.30 	installation and maintenance of monitoring equipment to evaluate water resource impacts 
70.31 	from permitted appropriations and proposed projects that require a permit. Monitoring for 
70.32 	water resources that supply more than one appropriator must be designed to minimize 
70.33 	costs to individual appropriators.
71.1 		Subd. 2.Measuring devices required. Monitoring installations required under 
71.2 	subdivision 1 must be equipped with automated measuring devices to measure water 
71.3 	levels, flows, or conditions. The commissioner may determine the frequency of 
71.4 	measurements and other measuring methods based on the quantity of water appropriated 
71.5 	or used, the source of water, potential connections to other water resources, the method 
71.6 	of appropriating or using water, seasonal and long-term changes in water levels, and any 
71.7 	other facts supplied to the commissioner.
71.8 		Subd. 3.Reports and costs. (a) Records of water measurements under subdivision 
71.9 	2 must be kept for each installation. The measurements must be reported annually to the 
71.10 	commissioner on or before February 15 of the following year in a format or on forms 
71.11 	prescribed by the commissioner.
71.12 	(b) The owner or person in charge of an installation for appropriating or using 
71.13 	waters of the state or a proposal that requires a permit is responsible for all costs related 
71.14 	to establishing and maintaining monitoring installations and to measuring and reporting 
71.15 	data. Monitoring costs for water resources that supply more than one appropriator may be 
71.16 	distributed among all users within a monitoring area determined by the commissioner and 
71.17 	assessed based on volumes of water appropriated and proximity to resources of concern.

71.18 	Sec. 54. Minnesota Statutes 2008, section 103G.285, subdivision 5, is amended to read:
71.19 		Subd. 5.Trout streams. Permits issued after June 3, 1977, to appropriate water 
71.20 	from streams designated trout streams by the commissioner's orders under section 97C.021
71.21 	97C.005 must be limited to temporary appropriations. 

71.22 	Sec. 55. [103G.287] GROUNDWATER APPROPRIATIONS.
71.23 		Subdivision 1.Applications for groundwater appropriations. (a) Groundwater 
71.24 	use permit applications are not complete until the applicant has supplied:
71.25 	(1) a water well record as required by section 103I.205, subdivision 9, information 
71.26 	on the subsurface geologic formations penetrated by the well and the formation or aquifer 
71.27 	that will serve as the water source, and geologic information from test holes drilled to 
71.28 	locate the site of the production well;
71.29 	(2) the maximum daily, seasonal, and annual pumpage rates and volumes being 
71.30 	requested;
71.31 	(3) information on groundwater quality in terms of the measures of quality 
71.32 	commonly specified for the proposed water use and details on water treatment necessary 
71.33 	for the proposed use;
72.1 	(4) an inventory of existing wells within 1-1/2 miles of the proposed production well 
72.2 	or within the area of influence, as determined by the commissioner. The inventory must 
72.3 	include information on well locations, depths, geologic formations, depth of the pump or 
72.4 	intake, pumping and nonpumping water levels, and details of well construction; and
72.5 	(5) the results of an aquifer test completed according to specifications approved by 
72.6 	the commissioner. The test must be conducted at the maximum pumping rate requested 
72.7 	in the application and for a length of time adequate to assess or predict impacts to other 
72.8 	wells and surface water and groundwater resources. The permit applicant is responsible 
72.9 	for all costs related to the aquifer test, including the construction of groundwater and 
72.10 	surface water monitoring installations, and water level readings before, during, and after 
72.11 	the aquifer test.
72.12 	(b) The commissioner may waive an application requirement in this subdivision 
72.13 	if the information provided with the application is adequate to determine whether the 
72.14 	proposed appropriation and use of water is sustainable and will protect ecosystems, water 
72.15 	quality, and the ability of future generations to meet their own needs.
72.16 		Subd. 2.Relationship to surface water resources. Groundwater appropriations 
72.17 	that have potential impacts to surface waters are subject to applicable provisions in 
72.18 	section 103G.285.
72.19 		Subd. 3.Protection of groundwater supplies. The commissioner may establish 
72.20 	water appropriation limits to protect groundwater resources. When establishing water 
72.21 	appropriation limits to protect groundwater resources, the commissioner must consider 
72.22 	the sustainability of the groundwater resource, including the current and projected water 
72.23 	levels, water quality, whether the use protects ecosystems, and the ability of future 
72.24 	generations to meet their own needs.
72.25 		Subd. 4.Groundwater management areas. The commissioner may designate 
72.26 	groundwater management areas and limit total annual water appropriations and uses within 
72.27 	a designated area to ensure sustainable use of groundwater that protects ecosystems, water 
72.28 	quality, and the ability of future generations to meet their own needs. Water appropriations 
72.29 	and uses within a designated management area must be consistent with a plan approved by 
72.30 	the commissioner that addresses water conservation requirements and water allocation 
72.31 	priorities established in section 103G.261.
72.32 		Subd. 5.Interference with other wells. The commissioner may issue water use 
72.33 	permits for appropriation from groundwater only if the commissioner determines that the 
72.34 	groundwater use is sustainable to supply the needs of future generations and the proposed 
72.35 	use will not harm ecosystems, degrade water, or reduce water levels beyond the reach 
73.1 	of public water supply and private domestic wells constructed according to Minnesota 
73.2 	Rules, chapter 4725.

73.3 	Sec. 56. Minnesota Statutes 2008, section 103G.301, subdivision 6, is amended to read:
73.4 		Subd. 6.Filing application. (a) An application for a permit must be filed with the 
73.5 	commissioner and if the proposed activity for which the permit is requested is within a 
73.6 	municipality, or is within or affects a watershed district or a soil and water conservation 
73.7 	district, a copy of the application with maps, plans, and specifications must be served on 
73.8 	the mayor of the municipality, the secretary of the board of managers of the watershed 
73.9 	district, and the secretary of the board of supervisors of the soil and water conservation 
73.10 	district.
73.11 	(b) If the application is required to be served on a local governmental unit under 
73.12 	this subdivision, proof of service must be included with the application and filed with 
73.13 	the commissioner.

73.14 	Sec. 57. Minnesota Statutes 2008, section 103G.305, subdivision 2, is amended to read:
73.15 		Subd. 2.Exception. The requirements of subdivision 1 do not apply to applications 
73.16 	for a water use permit for:
73.17 	(1) appropriations from waters of the state for irrigation, under section 103G.295;
73.18 	(2) appropriations for diversion from the basin of origin of more than 2,000,000 
73.19 	gallons per day average in a 30-day period; or
73.20 	(3) (2) appropriations with a consumptive use of more than 2,000,000 gallons per 
73.21 	day average for a 30-day period.

73.22 	Sec. 58. Minnesota Statutes 2008, section 103G.315, subdivision 11, is amended to 
73.23 	read:
73.24 		Subd. 11.Limitations on permits. (a) Except as otherwise expressly provided by 
73.25 	law, a permit issued by the commissioner under this chapter is subject to:
73.26 	(1) cancellation by the commissioner at any time if necessary to protect the public 
73.27 	interests;
73.28 	(2) further conditions on the term of the permit or its cancellation as the 
73.29 	commissioner may prescribe and amend and reissue the permit; and
73.30 	(3) applicable law existing before or after the issuance of the permit.
73.31 	(b) Permits issued to irrigate agricultural land under section 103G.295, or considered 
73.32 	issued, are subject to this subdivision and are subject to cancellation by the commissioner 
74.1 	upon the recommendation of the supervisors of the soil and water conservation district 
74.2 	where the land to be irrigated is located.  

74.3 	Sec. 59. Minnesota Statutes 2008, section 103G.515, subdivision 5, is amended to read:
74.4 		Subd. 5.Removal of hazardous dams. Notwithstanding any provision of 
74.5 	this section or of section 103G.511 relating to cost sharing or apportionment, the 
74.6 	commissioner, within the limits of legislative appropriation, may assume or pay the entire 
74.7 	cost of removal of a privately or publicly owned dam upon determining removal provides 
74.8 	the lowest cost solution and:
74.9 	(1) that continued existence of the structure presents a significant public safety 
74.10 	hazard, or prevents restoration of an important fisheries resource,; or 
74.11 	(2) that public or private property is being damaged due to partial failure of the 
74.12 	structure, and that an attempt to assess costs of removal against the private or public 
74.13 	owner would be of no avail.  

74.14 	Sec. 60. Minnesota Statutes 2008, section 103G.615, subdivision 2, is amended to read:
74.15 		Subd. 2.Fees. (a) The commissioner shall establish a fee schedule for permits to 
74.16 	control or harvest aquatic plants other than wild rice. The fees must be set by rule, and 
74.17 	section 16A.1283 does not apply, but the rule must not take effect until 45 legislative 
74.18 	days after it has been reported to the legislature. The fees shall be based upon the cost 
74.19 	of receiving, processing, analyzing, and issuing the permit, and additional costs incurred 
74.20 	after the application to inspect and monitor the activities authorized by the permit, and 
74.21 	enforce aquatic plant management rules and permit requirements.
74.22 	(b) A fee for a permit for the control of rooted aquatic vegetation for each contiguous 
74.23 	parcel of shoreline owned by an owner may be charged. This fee may not be charged for 
74.24 	permits issued in connection with purple loosestrife control or lakewide Eurasian water 
74.25 	milfoil control programs.
74.26 	(c) A fee may not be charged to the state or a federal governmental agency applying 
74.27 	for a permit.
74.28 	(d) A fee for a permit for the control of rooted aquatic vegetation in a public 
74.29 	water basin that is 20 acres or less in size shall be one-half of the fee established under 
74.30 	paragraph (a).
74.31 	(e) The money received for the permits under this subdivision shall be deposited in 
74.32 	the treasury and credited to the water recreation account.

74.33 	EFFECTIVE DATE. This section is effective August 1, 2010.

75.1 	Sec. 61. [103G.651] REMOVING SUNKEN LOGS FROM PUBLIC WATERS.
75.2 	The commissioner of natural resources must not issue leases to remove sunken logs 
75.3 	or issue permits for the removal of sunken logs from public waters.

75.4 	Sec. 62. Minnesota Statutes 2008, section 115.55, is amended by adding a subdivision 
75.5 	to read:
75.6 		Subd. 13.Subsurface sewage treatment systems implementation and 
75.7 	enforcement task force. (a) By September 1, 2010, the agency shall appoint a subsurface 
75.8 	sewage treatment systems implementation and enforcement task force in collaboration 
75.9 	with the Association of Minnesota Counties, Minnesota Association of Realtors, 
75.10 	Minnesota Association of County Planning and Zoning Administrators, and the Minnesota 
75.11 	Onsite Wastewater Association. The agency shall work in collaboration with the task 
75.12 	force to develop effective and timely implementation and enforcement methods in order to 
75.13 	rapidly reduce the number of subsurface sewage treatment systems that are an imminent 
75.14 	threat to public health or safety and effectively enforce all violations of the subsurface 
75.15 	sewage treatment system rules. The agency shall meet at least three times per year with 
75.16 	the task force to address implementation and enforcement issues. The meetings shall be 
75.17 	scheduled so that they do not interfere with the construction season.
75.18 	(b) The agency, in collaboration with the task force and in consultation with the 
75.19 	attorney general, county attorneys, and county planning and zoning staff, shall develop, 
75.20 	periodically update, and provide to counties enforcement protocols and a checklist that 
75.21 	county inspectors, field staff, and others may use when inspecting subsurface sewage 
75.22 	treatment systems and enforcing subsurface sewage treatment system rules.

75.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

75.24 	Sec. 63. Minnesota Statutes 2008, section 116.07, subdivision 4, is amended to read:
75.25 		Subd. 4.Rules and standards. (a) Pursuant and subject to the provisions of chapter 
75.26 	14, and the provisions hereof, the Pollution Control Agency may adopt, amend and rescind 
75.27 	rules and standards having the force of law relating to any purpose within the provisions 
75.28 	of Laws 1967, chapter 882, for the prevention, abatement, or control of air pollution. 
75.29 	Any such rule or standard may be of general application throughout the state, or may be 
75.30 	limited as to times, places, circumstances, or conditions in order to make due allowance 
75.31 	for variations therein. Without limitation, rules or standards may relate to sources or 
75.32 	emissions of air contamination or air pollution, to the quality or composition of such 
75.33 	emissions, or to the quality of or composition of the ambient air or outdoor atmosphere or 
75.34 	to any other matter relevant to the prevention, abatement, or control of air pollution.
76.1 	(b) Pursuant and subject to the provisions of chapter 14, and the provisions hereof, 
76.2 	the Pollution Control Agency may adopt, amend, and rescind rules and standards having 
76.3 	the force of law relating to any purpose within the provisions of Laws 1969, chapter 
76.4 	1046, for the collection, transportation, storage, processing, and disposal of solid waste 
76.5 	and the prevention, abatement, or control of water, air, and land pollution which may be 
76.6 	related thereto, and the deposit in or on land of any other material that may tend to cause 
76.7 	pollution. The agency shall adopt such rules and standards for sewage sludge, addressing 
76.8 	the intrinsic suitability of land, the volume and rate of application of sewage sludge of 
76.9 	various degrees of intrinsic hazard, design of facilities, and operation of facilities and sites. 
76.10 	Any such rule or standard may be of general application throughout the state or may be 
76.11 	limited as to times, places, circumstances, or conditions in order to make due allowance 
76.12 	for variations therein. Without limitation, rules or standards may relate to collection, 
76.13 	transportation, processing, disposal, equipment, location, procedures, methods, systems 
76.14 	or techniques or to any other matter relevant to the prevention, abatement or control of 
76.15 	water, air, and land pollution which may be advised through the control of collection, 
76.16 	transportation, processing, and disposal of solid waste and sewage sludge, and the deposit 
76.17 	in or on land of any other material that may tend to cause pollution. By January 1, 1983, 
76.18 	the rules for the management of sewage sludge shall include an analysis of the sewage 
76.19 	sludge determined by the commissioner of agriculture to be necessary to meet the soil 
76.20 	amendment labeling requirements of section 18C.215. 
76.21 	(c) The rules for the disposal of solid waste shall include site-specific criteria to 
76.22 	prohibit solid waste disposal based on the area's sensitivity to groundwater contamination, 
76.23 	including site-specific testing. The rules shall provide criteria for locating landfills 
76.24 	based on a site's sensitivity to groundwater contamination. Sensitivity to groundwater 
76.25 	contamination is based on the predicted minimum time of travel of groundwater 
76.26 	contaminants from the solid waste to the compliance boundary. The rules shall prohibit 
76.27 	landfills in areas where karst is likely to develop. The rules shall specify testable or 
76.28 	otherwise objective thresholds for these criteria. The rules shall also include modifications 
76.29 	to financial assurance requirements under subdivision 4h that ensure the state is protected 
76.30 	from financial responsibility for future groundwater contamination. The modifications to 
76.31 	the financial assurance rules specified in this paragraph must require that a solid waste 
76.32 	disposal facility subject to them maintain financial assurance so long as the facility poses a 
76.33 	potential environmental risk to human health, wildlife, or the environment, as determined 
76.34 	by the agency following an empirical assessment. The financial assurance and siting 
76.35 	modifications to the rules specified in this paragraph do not apply to:
77.1 	(1) solid waste facilities initially permitted before January 1, 2011, including future 
77.2 	contiguous expansions and noncontiguous expansions within 600 yards of a permitted 
77.3 	boundary;
77.4 	(2) solid waste disposal facilities that accept only construction and demolition debris 
77.5 	and incidental nonrecyclable packaging, and facilities that accept only industrial waste 
77.6 	that is limited to wood, concrete, porcelain fixtures, shingles, or window glass resulting 
77.7 	from the manufacture of construction materials; and
77.8 	(3) requirements for permit by rule solid waste disposal facilities.
77.9 	(d) Until the rules are modified as provided in paragraph (c) to include site-specific 
77.10 	criteria to prohibit areas from solid waste disposal due to groundwater contamination 
77.11 	sensitivity, as required under this section, the agency shall not issue a permit for a new 
77.12 	solid waste disposal facility, except for:
77.13 	(1) the reissuance of a permit for a land disposal facility operating as of March 
77.14 	1, 2008;
77.15 	(2) a permit to expand a land disposal facility operating as of March 1, 2008, beyond 
77.16 	its permitted boundaries, including expansion on land that is not contiguous to, but is 
77.17 	located within 600 yards of, the land disposal facility's permitted boundaries;
77.18 	(3) a permit to modify the type of waste accepted at a land disposal facility operating 
77.19 	as of March 1, 2008;
77.20 	(4) a permit to locate a disposal facility that accepts only construction debris as 
77.21 	defined in section 115A.03, subdivision 7; 
77.22 	(5) a permit to locate a disposal facility that: 
77.23 	(i) accepts boiler ash from an electric energy power plant that has wet scrubbed units 
77.24 	or has units that have been converted from wet scrubbed units to dry scrubbed units as 
77.25 	those terms are defined in section 216B.68; 
77.26 	(ii) is on land that was owned on May 1, 2008, by the utility operating the electric 
77.27 	energy power plant; and
77.28 	(iii) is located within three miles of the existing ash disposal facility for the power 
77.29 	plant; or
77.30 	(6) a permit to locate a new solid waste disposal facility for ferrous metallic minerals 
77.31 	regulated under Minnesota Rules, chapter 6130, or for nonferrous metallic minerals 
77.32 	regulated under Minnesota Rules, chapter 6132.
77.33 	(e) Pursuant and subject to the provisions of chapter 14, and the provisions hereof, 
77.34 	the Pollution Control Agency may adopt, amend and rescind rules and standards having 
77.35 	the force of law relating to any purpose within the provisions of Laws 1971, chapter 727, 
77.36 	for the prevention, abatement, or control of noise pollution. Any such rule or standard 
78.1 	may be of general application throughout the state, or may be limited as to times, places, 
78.2 	circumstances or conditions in order to make due allowances for variations therein. 
78.3 	Without limitation, rules or standards may relate to sources or emissions of noise or noise 
78.4 	pollution, to the quality or composition of noises in the natural environment, or to any 
78.5 	other matter relevant to the prevention, abatement, or control of noise pollution.
78.6 	(f) As to any matters subject to this chapter, local units of government may set 
78.7 	emission regulations with respect to stationary sources which are more stringent than 
78.8 	those set by the Pollution Control Agency.
78.9 	(g) Pursuant to chapter 14, the Pollution Control Agency may adopt, amend, 
78.10 	and rescind rules and standards having the force of law relating to any purpose within 
78.11 	the provisions of this chapter for generators of hazardous waste, the management, 
78.12 	identification, labeling, classification, storage, collection, treatment, transportation, 
78.13 	processing, and disposal of hazardous waste and the location of hazardous waste facilities. 
78.14 	A rule or standard may be of general application throughout the state or may be limited 
78.15 	as to time, places, circumstances, or conditions. In implementing its hazardous waste 
78.16 	rules, the Pollution Control Agency shall give high priority to providing planning and 
78.17 	technical assistance to hazardous waste generators. The agency shall assist generators in 
78.18 	investigating the availability and feasibility of both interim and long-term hazardous waste 
78.19 	management methods. The methods shall include waste reduction, waste separation, 
78.20 	waste processing, resource recovery, and temporary storage.
78.21 	(h) The Pollution Control Agency shall give highest priority in the consideration 
78.22 	of permits to authorize disposal of diseased shade trees by open burning at designated 
78.23 	sites to evidence concerning economic costs of transportation and disposal of diseased 
78.24 	shade trees by alternative methods.

78.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

78.26 	Sec. 64. Minnesota Statutes 2008, section 116.07, subdivision 4h, is amended to read:
78.27 		Subd. 4h.Financial responsibility rules. (a) The agency shall adopt rules requiring 
78.28 	the operator or owner of a solid waste disposal facility to submit to the agency proof 
78.29 	of the operator's or owner's financial capability to provide reasonable and necessary 
78.30 	response during the operating life of the facility and for 30 years after closure for a mixed 
78.31 	municipal solid waste disposal facility or for a minimum of 20 years after closure, as 
78.32 	determined by agency rules, for any other solid waste disposal facility, and to provide for 
78.33 	the closure of the facility and postclosure care required under agency rules. Proof of 
78.34 	financial responsibility is required of the operator or owner of a facility receiving an 
78.35 	original permit or a permit for expansion after adoption of the rules. Within 180 days of 
79.1 	the effective date of the rules or by July 1, 1987, whichever is later, proof of financial 
79.2 	responsibility is required of an operator or owner of a facility with a remaining capacity of 
79.3 	more than five years or 500,000 cubic yards that is in operation at the time the rules are 
79.4 	adopted. Compliance with the rules and the requirements of paragraph (b) is a condition 
79.5 	of obtaining or retaining a permit to operate the facility.
79.6 	(b) A municipality, as defined in section 475.51, subdivision 2, including a sanitary 
79.7 	district, that owns or operates a solid waste disposal facility that was in operation on May 
79.8 	15, 1989, may meet its financial responsibility for all or a portion of the contingency 
79.9 	action portion of the reasonable and necessary response costs at the facility by pledging its 
79.10 	full faith and credit to meet its responsibility. 
79.11 	The pledge must be made in accordance with the requirements in chapter 475 for 
79.12 	issuing bonds of the municipality, and the following additional requirements:
79.13 	(1) The governing body of the municipality shall enact an ordinance that clearly 
79.14 	accepts responsibility for the costs of contingency action at the facility and that reserves, 
79.15 	during the operating life of the facility and for the time period required in paragraph (a) 
79.16 	after closure, a portion of the debt limit of the municipality, as established under section 
79.17 	475.53 or other law, that is equal to the total contingency action costs. 
79.18 	(2) The municipality shall require that all collectors that haul to the facility 
79.19 	implement a plan for reducing solid waste by using volume-based pricing, recycling 
79.20 	incentives, or other means.
79.21 	(3) When a municipality opts to meet a portion of its financial responsibility by 
79.22 	relying on its authority to issue bonds, it shall also begin setting aside in a dedicated 
79.23 	long-term care trust fund money that will cover a portion of the potential contingency 
79.24 	action costs at the facility, the amount to be determined by the agency for each facility 
79.25 	based on at least the amount of waste deposited in the disposal facility each year, and the 
79.26 	likelihood and potential timing of conditions arising at the facility that will necessitate 
79.27 	response action. The agency may not require a municipality to set aside more than five 
79.28 	percent of the total cost in a single year.
79.29 	(4) A municipality shall have and consistently maintain an investment grade bond 
79.30 	rating as a condition of using bonding authority to meet financial responsibility under 
79.31 	this section.
79.32 	(5) The municipality shall file with the commissioner of revenue its consent to have 
79.33 	the amount of its contingency action costs deducted from state aid payments otherwise 
79.34 	due the municipality and paid instead to the remediation fund created in section 116.155, 
79.35 	if the municipality fails to conduct the contingency action at the facility when ordered 
79.36 	by the agency. If the agency notifies the commissioner that the municipality has failed to 
80.1 	conduct contingency action when ordered by the agency, the commissioner shall deduct 
80.2 	the amounts indicated by the agency from the state aids in accordance with the consent 
80.3 	filed with the commissioner. 
80.4 	(6) The municipality shall file with the agency written proof that it has complied 
80.5 	with the requirements of paragraph (b).
80.6 	(c) The method for proving financial responsibility under paragraph (b) may not be 
80.7 	applied to a new solid waste disposal facility or to expansion of an existing facility, unless 
80.8 	the expansion is a vertical expansion. Vertical expansions of qualifying existing facilities 
80.9 	cannot be permitted for a duration of longer than three years.
80.10 	(d) The commissioner shall consult with the commissioner of management and 
80.11 	budget for guidance on the forms of financial assurance that are acceptable for private 
80.12 	owners and public owners, and in carrying out a periodic review of the adequacy of 
80.13 	financial assurance for solid waste disposal facilities. Financial assurance rules shall 
80.14 	allow financial mechanisms to public owners of solid waste disposal facilities that are 
80.15 	appropriate to their status as subdivisions of the state.

80.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

80.17 	Sec. 65. Minnesota Statutes 2008, section 116D.04, subdivision 2a, is amended to read:
80.18 		Subd. 2a.When prepared. Where there is potential for significant environmental 
80.19 	effects resulting from any major governmental action, the action shall be preceded by a 
80.20 	detailed environmental impact statement prepared by the responsible governmental unit. 
80.21 	The environmental impact statement shall be an analytical rather than an encyclopedic 
80.22 	document which describes the proposed action in detail, analyzes its significant 
80.23 	environmental impacts, discusses appropriate alternatives to the proposed action and 
80.24 	their impacts, and explores methods by which adverse environmental impacts of an 
80.25 	action could be mitigated. The environmental impact statement shall also analyze those 
80.26 	economic, employment and sociological effects that cannot be avoided should the action 
80.27 	be implemented. To ensure its use in the decision-making process, the environmental 
80.28 	impact statement shall be prepared as early as practical in the formulation of an action. 
80.29 	No mandatory environmental impact statement may be required for an ethanol plant, 
80.30 	as defined in section 41A.09, subdivision 2a, paragraph (b), that produces less than 
80.31 	125,000,000 gallons of ethanol annually and is located outside of the seven-county 
80.32 	metropolitan area. 
80.33 	(a) The board shall by rule establish categories of actions for which environmental 
80.34 	impact statements and for which environmental assessment worksheets shall be prepared 
81.1 	as well as categories of actions for which no environmental review is required under 
81.2 	this section.
81.3 	(b) The responsible governmental unit shall promptly publish notice of the 
81.4 	completion of an environmental assessment worksheet in a manner to be determined by 
81.5 	the board and shall provide copies of the environmental assessment worksheet to the board 
81.6 	and its member agencies. Comments on the need for an environmental impact statement 
81.7 	may be submitted to the responsible governmental unit during a 30 day period following 
81.8 	publication of the notice that an environmental assessment worksheet has been completed. 
81.9 	The responsible governmental unit's decision on the need for an environmental impact 
81.10 	statement shall be based on the environmental assessment worksheet and the comments 
81.11 	received during the comment period, and shall be made within 15 days after the close of 
81.12 	the comment period. The board's chair may extend the 15 day period by not more than 15 
81.13 	additional days upon the request of the responsible governmental unit.
81.14 	(c) An environmental assessment worksheet shall also be prepared for a proposed 
81.15 	action whenever material evidence accompanying a petition by not less than 25 
81.16 	individuals, submitted before the proposed project has received final approval by the 
81.17 	appropriate governmental units, demonstrates that, because of the nature or location of a 
81.18 	proposed action, there may be potential for significant environmental effects. Petitions 
81.19 	requesting the preparation of an environmental assessment worksheet shall be submitted to 
81.20 	the board. The chair of the board shall determine the appropriate responsible governmental 
81.21 	unit and forward the petition to it. A decision on the need for an environmental assessment 
81.22 	worksheet shall be made by the responsible governmental unit within 15 days after the 
81.23 	petition is received by the responsible governmental unit. The board's chair may extend 
81.24 	the 15 day period by not more than 15 additional days upon request of the responsible 
81.25 	governmental unit.
81.26 	(d) Except in an environmentally sensitive location where Minnesota Rules, part 
81.27 	4410.4300, subpart 29, item B, applies, the proposed action is exempt from environmental 
81.28 	review under this chapter and rules of the board, if:
81.29 	(1) the proposed action is:
81.30 	(i) an animal feedlot facility with a capacity of less than 1,000 animal units; or
81.31 	(ii) an expansion of an existing animal feedlot facility with a total cumulative 
81.32 	capacity of less than 1,000 animal units;
81.33 	(2) the application for the animal feedlot facility includes a written commitment by 
81.34 	the proposer to design, construct, and operate the facility in full compliance with Pollution 
81.35 	Control Agency feedlot rules; and
82.1 	(3) the county board holds a public meeting for citizen input at least ten business 
82.2 	days prior to the Pollution Control Agency or county issuing a feedlot permit for the 
82.3 	animal feedlot facility unless another public meeting for citizen input has been held with 
82.4 	regard to the feedlot facility to be permitted. The exemption in this paragraph is in 
82.5 	addition to other exemptions provided under other law and rules of the board.
82.6 	(e) The board may, prior to final approval of a proposed project, require preparation 
82.7 	of an environmental assessment worksheet by a responsible governmental unit selected 
82.8 	by the board for any action where environmental review under this section has not been 
82.9 	specifically provided for by rule or otherwise initiated.
82.10 	(f) An early and open process shall be utilized to limit the scope of the environmental 
82.11 	impact statement to a discussion of those impacts, which, because of the nature or location 
82.12 	of the project, have the potential for significant environmental effects. The same process 
82.13 	shall be utilized to determine the form, content and level of detail of the statement as well 
82.14 	as the alternatives which are appropriate for consideration in the statement. In addition, 
82.15 	the permits which will be required for the proposed action shall be identified during the 
82.16 	scoping process. Further, the process shall identify those permits for which information 
82.17 	will be developed concurrently with the environmental impact statement. The board 
82.18 	shall provide in its rules for the expeditious completion of the scoping process. The 
82.19 	determinations reached in the process shall be incorporated into the order requiring the 
82.20 	preparation of an environmental impact statement.
82.21 	(g) The responsible governmental unit shall, to the extent practicable, avoid 
82.22 	duplication and ensure coordination between state and federal environmental review 
82.23 	and between environmental review and environmental permitting. Whenever practical, 
82.24 	information needed by a governmental unit for making final decisions on permits or 
82.25 	other actions required for a proposed project shall be developed in conjunction with the 
82.26 	preparation of an environmental impact statement.
82.27 	(h) An environmental impact statement shall be prepared and its adequacy 
82.28 	determined within 280 days after notice of its preparation unless the time is extended by 
82.29 	consent of the parties or by the governor for good cause. The responsible governmental 
82.30 	unit shall determine the adequacy of an environmental impact statement, unless within 60 
82.31 	days after notice is published that an environmental impact statement will be prepared, 
82.32 	the board chooses to determine the adequacy of an environmental impact statement. If an 
82.33 	environmental impact statement is found to be inadequate, the responsible governmental 
82.34 	unit shall have 60 days to prepare an adequate environmental impact statement.

83.1 	Sec. 66. Minnesota Statutes 2008, section 116D.04, is amended by adding a 
83.2 	subdivision to read:
83.3 		Subd. 14.Customized environmental assessment worksheet forms; electronic 
83.4 	submission. (a) The commissioners of natural resources and the Pollution Control 
83.5 	Agency and the board shall periodically review mandatory environmental assessment 
83.6 	worksheet categories under rules adopted under this section, and other project types that 
83.7 	are frequently subject to environmental review, and develop customized environmental 
83.8 	assessment worksheet forms for the category or project type. The forms must include 
83.9 	specific questions that focus on key environmental issues for the category or project type. 
83.10 	In assessing categories and project types and developing forms, the board shall seek 
83.11 	the input of governmental units that are frequently responsible for the preparation of a 
83.12 	worksheet for the particular category or project type. The commissioners and the board 
83.13 	shall also seek input from the general public on the development of customized forms. 
83.14 	The commissioners and board shall make the customized forms available online.
83.15 	(b) The commissioners of natural resources and the Pollution Control Agency shall 
83.16 	allow for the electronic submission of environmental assessment worksheets and permits.

83.17 	Sec. 67. Minnesota Statutes 2008, section 290.431, is amended to read:
83.18 	290.431 NONGAME WILDLIFE CHECKOFF.
83.19 	Every individual who files an income tax return or property tax refund claim form 
83.20 	may designate on their original return that $1 or more shall be added to the tax or deducted 
83.21 	from the refund that would otherwise be payable by or to that individual and paid into an 
83.22 	account to be established for the management of nongame wildlife. The commissioner 
83.23 	of revenue shall, on the income tax return and the property tax refund claim form, notify 
83.24 	filers of their right to designate that a portion of their tax or refund shall be paid into 
83.25 	the nongame wildlife management account. The sum of the amounts so designated to 
83.26 	be paid shall be credited to the nongame wildlife management account for use by the 
83.27 	nongame program of the section of wildlife in the Department of Natural Resources. All 
83.28 	interest earned on money accrued, gifts to the program, contributions to the program, and 
83.29 	reimbursements of expenditures in the nongame wildlife management account shall be 
83.30 	credited to the account by the commissioner of management and budget, except that 
83.31 	gifts or contributions received directly by the commissioner of natural resources and 
83.32 	directed by the contributor for use in specific nongame field projects or geographic 
83.33 	areas shall be handled according to section 84.085, subdivision 1. The commissioner 
83.34 	of natural resources shall submit a work program for each fiscal year and semiannual 
83.35 	progress reports to the Legislative-Citizen Commission on Minnesota Resources in the 
84.1 	form determined by the commission. None of the money provided in this section may be 
84.2 	expended unless the commission has approved the work program.
84.3 	The state pledges and agrees with all contributors to the nongame wildlife 
84.4 	management account to use the funds contributed solely for the management of nongame 
84.5 	wildlife projects and further agrees that it will not impose additional conditions or 
84.6 	restrictions that will limit or otherwise restrict the ability of the commissioner of natural 
84.7 	resources to use the available funds for the most efficient and effective management of 
84.8 	nongame wildlife. The commissioner may use funds appropriated for nongame wildlife 
84.9 	programs for the purpose of developing, preserving, restoring, and maintaining wintering 
84.10 	habitat for neotropical migrant birds in Latin America and the Caribbean under agreement 
84.11 	or contract with any nonprofit organization dedicated to the construction, maintenance, and 
84.12 	repair of such projects that are acceptable to the governmental agency having jurisdiction 
84.13 	over the land and water affected by the projects. Under this authority, the commissioner 
84.14 	may execute agreements and contracts if the commissioner determines that the use of the 
84.15 	funds will benefit neotropical migrant birds that breed in or migrate through the state.

84.16 	Sec. 68. Minnesota Statutes 2008, section 290.432, is amended to read:
84.17 	290.432 CORPORATE NONGAME WILDLIFE CHECKOFF.
84.18 	A corporation that files an income tax return may designate on its original return that 
84.19 	$1 or more shall be added to the tax or deducted from the refund that would otherwise be 
84.20 	payable by or to that corporation and paid into the nongame wildlife management account 
84.21 	established by section 290.431 for use by the section of wildlife in the Department of 
84.22 	Natural Resources for its nongame wildlife program. The commissioner of revenue shall, 
84.23 	on the corporate tax return, notify filers of their right to designate that a portion of their 
84.24 	tax return be paid into the nongame wildlife management account for the protection of 
84.25 	endangered natural resources. All interest earned on money accrued, gifts to the program, 
84.26 	contributions to the program, and reimbursements of expenditures in the nongame wildlife 
84.27 	management account shall be credited to the account by the commissioner of management 
84.28 	and budget, except that gifts or contributions received directly by the commissioner of 
84.29 	natural resources and directed by the contributor for use in specific nongame field projects 
84.30 	or geographic areas shall be handled according to section 84.085, subdivision 1. The 
84.31 	commissioner of natural resources shall submit a work program for each fiscal year to 
84.32 	the Legislative-Citizen Commission on Minnesota Resources in the form determined by 
84.33 	the commission. None of the money provided in this section may be spent unless the 
84.34 	commission has approved the work program.
85.1 	The state pledges and agrees with all corporate contributors to the nongame wildlife 
85.2 	account to use the funds contributed solely for the nongame wildlife program and further 
85.3 	agrees that it will not impose additional conditions or restrictions that will limit or 
85.4 	otherwise restrict the ability of the commissioner of natural resources to use the available 
85.5 	funds for the most efficient and effective management of those programs.

85.6 	Sec. 69. Laws 2010, chapter 215, article 3, section 4, subdivision 10, is amended to 
85.7 	read:

85.8	Subd. 10.Transfers In
 					
85.9 	(a) By June 30, 2010, the commissioner of 
85.10 	management and budget shall transfer any 
85.11 	remaining balance, estimated to be $98,000, 
85.12 	from the stream protection and improvement 
85.13 	fund under Minnesota Statutes, section 
85.14 	103G.705, to the general fund. Beginning 
85.15 	in fiscal year 2011, all repayment of loans 
85.16 	made and administrative fees assessed under 
85.17 	Minnesota Statutes, section 103G.705, 
85.18 	estimated to be $195,000 in 2011, must be 
85.19 	transferred to the general fund.
85.20 	(b) The balance of surcharges on criminal and 
85.21 	traffic offenders, estimated to be $900,000, 
85.22 	and credited to the game and fish fund 
85.23 	under Minnesota Statutes, section 357.021, 
85.24 	subdivision 7, and collected before June 30, 
85.25 	2010, must be transferred to the general fund.
85.26 	(c) The appropriation in Laws 2007, First 
85.27 	Special Session chapter 2, article 1, section 
85.28 	8, transferred to the appropriation in  Laws 
85.29 	2007, First Special Session chapter 2, article 
85.30 	1, section 5, for cost-share flood programs 
85.31 	in southeastern Minnesota, is reduced by 
85.32 	$335,000 and that amount is canceled to the 
85.33 	general fund.
86.1 	(d) Before June 30, 2011, the commissioner 
86.2 	of management and budget shall transfer 
86.3 	$1,000,000 from the fleet management 
86.4 	account in the special revenue fund 
86.5 	established under Minnesota Statutes, section 
86.6 	84.0856, to the general fund.

86.7 	Sec. 70. SCHOOL TRUST LANDS STUDY.
 86.8 	(a) By July 15, 2010, the commissioner of natural resources shall provide to 
86.9 	the chairs of the house of representatives and the senate committees and divisions 
86.10 	with primary jurisdiction over natural resources finance and education finance and the 
86.11 	Permanent School Fund Advisory Committee information necessary to evaluate the 
86.12 	effectiveness of the commissioner in managing school trust lands to successfully meet the 
86.13 	goals contained in Minnesota Statutes, section 127A.31. The information to be provided 
86.14 	shall include, but is not limited to:
86.15 	(1) an accurate description of the school trust lands and their land classification;
86.16 	(2) policies and procedures in place designed to meet the requirements of the 
86.17 	fiduciary responsibility of the commissioner in management of the school trust lands; and
86.18 	(3) financial information identifying the current revenues from the land 
86.19 	classifications and the potential for future maximization of those revenues.
86.20 	(b) By January 15, 2011, the commissioner of natural resources shall provide an 
86.21 	analysis to the chairs of the house of representatives and senate committees and divisions 
86.22 	with primary jurisdiction over natural resources finance and education finance and the 
86.23 	Permanent School Fund Advisory Committee on the advantages and disadvantages of 
86.24 	having a funding mechanism for compensating the permanent school fund for private and 
86.25 	public use of school trust lands.

86.26 	Sec. 71. COON RAPIDS DAM COMMISSION.
 86.27 		Subdivision 1.Establishment. (a) The Coon Rapids Dam Commission is 
86.28 	established to perform the duties specified in subdivision 2.
86.29 	(b) The commission consists of 15 voting members and three nonvoting members 
86.30 	as follows:
86.31 	(1) two members of the house of representatives, appointed by the speaker of the 
86.32 	house, with one member from the minority caucus;
86.33 	(2) two members of the senate appointed by the Subcommittee on Committees of the 
86.34 	Committee on Rules and Administration, with one member from the minority caucus;
87.1 	(3) the commissioner of natural resources or the commissioner's designee;
87.2 	(4) the commissioner of energy or the commissioner's designee;
87.3 	(5) two representatives of Three Rivers Park District, appointed by the Three Rivers 
87.4 	Park District Board of Commissioners;
87.5 	(6) one representative each from the counties of Anoka and Hennepin, appointed 
87.6 	by the respective county boards;
87.7 	(7) one representative each from the cities of Anoka, Brooklyn Park, Champlin, and 
87.8 	Coon Rapids, appointed by the respective mayors;
87.9 	(8) one representative from the Metropolitan Council, appointed by the council chair;
87.10 	(9) one representative of the Mississippi National River and Recreation Area, 
87.11 	appointed by the superintendent of the Mississippi National River and Recreation Area, 
87.12 	who shall serve as a nonvoting member;
87.13 	(10) one representative of the United States Army Corps of Engineers, appointed 
87.14 	by the commander of the St. Paul District, United States Army Corps of Engineers, who 
87.15 	shall serve as a nonvoting member; and
87.16 	(11) one representative from the United States Fish and Wildlife Service, appointed 
87.17 	by the regional director of the United States Fish and Wildlife Service, who shall serve 
87.18 	as a nonvoting member.
87.19 	(c) The commission shall elect a chair from among its members.
87.20 	(d) Members of the commission shall serve a term of one year and may be 
87.21 	reappointed for any successive number of terms.
87.22 	(e) The Three Rivers Park District shall provide the commission with office space 
87.23 	and staff and administrative services.
87.24 	(f) Commission members shall serve without compensation.
87.25 		Subd. 2.Duties. The commission shall study options and make recommendations 
87.26 	for the future of the Coon Rapids Dam, including its suitable public uses, governance, 
87.27 	operation, and maintenance and financing of the dam and its operations. The commission 
87.28 	shall consider economic, environmental, ecological, and other pertinent factors. The 
87.29 	commission shall, by March 1, 2011, develop and present to the legislature and the 
87.30 	governor an analysis and recommendations for the Coon Rapids Dam. The commission 
87.31 	shall present its findings to the house of representatives and senate committees and 
87.32 	divisions having jurisdiction over natural resources and energy policy.
87.33 		Subd. 3.Expiration. This section expires upon presentation of the commission's 
87.34 	analysis and recommendations according to subdivision 2.

87.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

88.1 	Sec. 72. SOLID WASTE FACILITY FINANCIAL ASSURANCE 
88.2 	MECHANISMS; INPUT.
 88.3 	Within six months after the effective date of this section, and before publishing 
88.4 	the rules required for groundwater sensitivity and financial assurance in Minnesota 
88.5 	Statutes, section 116.07, subdivision 4, the Pollution Control Agency shall consult with 
88.6 	experts and interested persons on financial assurance adequacy for solid waste facilities, 
88.7 	including, but not limited to, staff from the Department of Natural Resources, Minnesota 
88.8 	Management and Budget, local governments, private and public landfill operators, and 
88.9 	environmental groups. The commissioner shall seek the input to determine the adequacy 
88.10 	of existing financial assurance rules to address environmental risks, the length of time 
88.11 	financial assurance is needed, based on the threat to human health and the environment, 
88.12 	the reliability of financial assurance in covering risks from land disposal of waste in 
88.13 	Minnesota and other states, and the role of private insurance.

88.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

88.15 	Sec. 73. SUBSURFACE SEWAGE TREATMENT SYSTEMS ORDINANCE 
88.16 	ADOPTION DELAY.
 88.17 	(a) Notwithstanding Minnesota Statutes, section 115.55, subdivision 2, a county may 
88.18 	adopt an ordinance by February 4, 2012, to comply with the February 4, 2008, revisions 
88.19 	to subsurface sewage treatment system rules. By April 4, 2011, the Pollution Control 
88.20 	Agency shall adopt the final rule amendments to the February 4, 2008, subsurface sewage 
88.21 	treatment system rules. A county must continue to enforce its current ordinance until a 
88.22 	new one has been adopted.
88.23 	(b) By January 15, 2011, the agency, after consultation with the Board of Water and 
88.24 	Soil Resources and the Association of Minnesota Counties, shall report to the chairs and 
88.25 	ranking minority members of the senate and house of representatives environment and 
88.26 	natural resources policy and finance committees and divisions on:
88.27 	(1) the technical changes in the rules for subsurface sewage treatment systems 
88.28 	that were adopted on February 4, 2008;
88.29 	(2) the progress in local adoption of ordinances to comply with the rules; and
88.30 	(3) the progress in protecting the state's water resources from pollution due to 
88.31 	subsurface sewage treatment systems.

88.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

89.1 	Sec. 74. DEPARTMENT OF NATURAL RESOURCES LONG-RANGE 
89.2 	BUDGET ANALYSIS.
 89.3 	(a) The commissioner of natural resources, in consultation with the commissioner 
89.4 	of management and budget, shall estimate the total amount of funding available from all 
89.5 	sources for each of the following land management categories: wildlife management 
89.6 	areas; state forests; scientific and natural areas; aquatic management areas; public water 
89.7 	access sites; and prairie bank easements. The commissioner of natural resources shall 
89.8 	prepare a ten-year budget analysis of the department's ongoing land management needs, 
89.9 	including restoration of each parcel needing restoration. The analysis shall include:
89.10 	(1) an analysis of the needs of wildlife management areas, including identification of 
89.11 	internal systemwide guidelines on the proper frequency for activities such as controlled 
89.12 	burns, tree and woody biomass removal, and brushland management;
89.13 	(2) an analysis of state forest needs, including identification of internal systemwide 
89.14 	guidelines on the proper frequency for forest management activities;
89.15 	(3) an analysis of scientific and natural area needs, including identification of 
89.16 	internal systemwide guidelines on the proper frequency for management activities;
89.17 	(4) an analysis of aquatic management area needs, including identification of internal 
89.18 	systemwide guidelines on the proper frequency for management activities; and
89.19 	(5) an analysis of the needs of the state's public water access sites, including 
89.20 	identification of internal systemwide guidelines on the proper frequency for management 
89.21 	activities.
89.22 	(b) The commissioner shall compare the estimate of the total amount of funding 
89.23 	available to the department's ongoing management needs to determine:
89.24 	(1) the amount necessary to manage, restore, and maintain existing wildlife 
89.25 	management areas, state forests, scientific and natural areas, aquatic management areas, 
89.26 	public water access sites, and prairie bank easements; and
89.27 	(2) the amount necessary to expand upon the existing wildlife management areas, 
89.28 	state forests, scientific and natural areas, aquatic management areas, public water access 
89.29 	sites, and prairie bank easement programs, including the feasibility of the department's 
89.30 	existing long-range plans, if applicable, for each program.
89.31 	(c) The commissioner of natural resources shall submit the analysis to the chairs of 
89.32 	the house of representatives and senate committees with jurisdiction over environment 
89.33 	and natural resources finance and cultural and outdoor resources finance by November 
89.34 	15, 2010.

89.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

90.1 	Sec. 75. WIND ENERGY SYSTEMS ON STATE-OWNED LANDS; REPORT.
 90.2 	By February 15, 2011, the commissioner of natural resources shall report to the 
90.3 	senate and house of representatives environment and natural resource policy and finance 
90.4 	committees and divisions on the use of state-owned lands for wind energy systems. The 
90.5 	report shall include:
90.6 	(1) information on the benefits and costs of using state-owned lands for wind energy 
90.7 	systems;
90.8 	(2) the effects of wind energy systems on state-owned lands;
90.9 	(3) recommendations for a regulatory system and restrictions that will be necessary 
90.10 	to protect the state's land and water resources when using state-owned lands for wind 
90.11 	energy systems; and 
90.12 	(4) identification of state-owned lands that would be suitable for wind energy 
90.13 	systems and state-owned lands that would be unsuitable, including recommendations for 
90.14 	restrictions on the use of state-owned lands based on their designation as units of the 
90.15 	outdoor recreation system under Minnesota Statutes, section 86A.05.

90.16 	Sec. 76. APPROPRIATION; DEPARTMENT OF NATURAL RESOURCES 
90.17 	PEACE OFFICER TRAINING.
 90.18 	(a) $145,000 in fiscal year 2011 is appropriated from the game and fish fund to 
90.19 	the commissioner of natural resources for peace officer training for employees of the 
90.20 	Department of Natural Resources who are licensed under Minnesota Statutes, sections 
90.21 	626.84 to 626.863, to enforce game and fish laws. This appropriation is from the money 
90.22 	credited to the game and fish fund under Minnesota Statutes, section 357.021, subdivision 
90.23 	7, paragraph (a), clause (1), from surcharges assessed to criminal and traffic offenders. 
90.24 	This is a onetime appropriation.
90.25 	(b) By January 15, 2011, the commissioner of natural resources shall submit a report 
90.26 	to the chairs of the committees and divisions with jurisdiction over natural resources and 
90.27 	public safety on the expenditure of these funds, including the effectiveness of the activities 
90.28 	funded in improving the enforcement of game and fish laws and the resulting outcomes 
90.29 	for the state's natural resources.

90.30 	Sec. 77. APPROPRIATION; STATE WATER TRAILS.
 90.31 	$60,000 is appropriated in fiscal year 2011 from the water recreation account in the 
90.32 	natural resources fund to the commissioner of natural resources to cooperate with local 
90.33 	units of government in marking state water trails under Minnesota Statutes, section 85.32; 
91.1 	acquiring and developing river accesses and campsites; and removing obstructions that 
91.2 	may cause public safety hazards. This is a onetime appropriation and available until spent.

91.3 	Sec. 78. APPROPRIATION; MOOSE TRAIL.
 91.4 	$100,000 in fiscal year 2011 is appropriated to the commissioner of natural resources 
91.5 	from the all-terrain vehicle account in the natural resources fund for a grant to the city of 
91.6 	Hoyt Lakes to convert the Moose Trail snowmobile trail to a dual usage trail, so that it 
91.7 	may also be used as an off-highway vehicle trail connecting the city of Biwabik to the 
91.8 	Iron Range Off-Highway Vehicle Recreation Area. This is a onetime appropriation and 
91.9 	is available until spent.

91.10 	Sec. 79. APPROPRIATION; ECOLOGICAL CLASSIFICATION PROGRAM.
 91.11 	$250,000 in fiscal year 2011 is appropriated from the heritage enhancement account 
91.12 	in the game and fish fund to the commissioner of natural resources to maintain and expand 
91.13 	the ecological classification program on state forest lands. This is a onetime appropriation.

91.14 	Sec. 80. PARKS AND TRAILS APPROPRIATION; LOTTERY-IN-LIEU 
91.15 	REVENUE.
 91.16 	$300,000 in fiscal year 2011 is appropriated from the natural resources fund to 
91.17 	the commissioner of natural resources for state park, state recreation area, and state 
91.18 	trail operations. This is from the revenue deposited in the natural resources fund under 
91.19 	Minnesota Statutes, section 297A.94, paragraph (e), clause (2).
91.20 	$300,000 in fiscal year 2011 is appropriated from the natural resources fund to 
91.21 	the Metropolitan Council for metropolitan area regional parks and trails maintenance 
91.22 	and operations. This is from the revenue deposited in the natural resources fund under 
91.23 	Minnesota Statutes, section 297A.94, paragraph (e), clause (3).

91.24 	Sec. 81. REFUSE MANAGEMENT PILOT PROJECT; CANNON RIVER.
 91.25 	The commissioner of natural resources shall establish a two-year pilot project on the 
91.26 	Cannon River under a written agreement between the establishment and the commissioner 
91.27 	of natural resources that allows canoe and inner tube rental establishments to take 
91.28 	responsibility for the management of their patrons' refuse on the river, including allowing 
91.29 	canoe and inner tube establishments to provide disposable refuse containers to each group.

91.30 	Sec. 82. REVISOR'S INSTRUCTION.
 92.1 	(a) The revisor of statutes shall change the term "horse trail pass" to "horse pass" 
92.2 	wherever it appears in Minnesota Statutes and Minnesota Rules.
92.3 	(b) The revisor of statutes shall change the term "canoe and boating routes" or 
92.4 	similar term to "state water trails" or similar term wherever it appears in Minnesota 
92.5 	Statutes and Minnesota Rules.
92.6 	(c) The revisor of statutes shall change the term "Minnesota Conservation Corps" to 
92.7 	"Conservation Corps Minnesota" wherever it appears in Minnesota Statutes.

92.8 	Sec. 83.  REPEALER.
 92.9 	(a) Minnesota Statutes 2008, sections 90.172; 97B.665, subdivision 1; 103G.295; 
92.10 	and 103G.650, are repealed.
92.11 	(b) Minnesota Statutes 2009 Supplement, section 88.795, is repealed.

92.12 	ARTICLE 5
92.13 	ENERGY

92.14 	Section 1. Minnesota Statutes 2008, section 3.8851, subdivision 7, is amended to read:
92.15 		Subd. 7. Assessment; appropriation. (a) Upon request by the cochairs of the 
92.16 	commission, the commissioner of commerce shall assess the amount requested for the 
92.17 	operation of the commission, not to exceed $250,000 in a fiscal year, from the following 
92.18 	sources: 
92.19 	(1) 50 percent of the assessment must come from all public utilities, municipal 
92.20 	utilities, electric cooperative associations, generation and transmission cooperative electric 
92.21 	associations, and municipal power agencies providing electric or natural gas services 
92.22 	in Minnesota; and 
92.23 	(2) 50 percent of the assessment must come from all bulk terminals located in this 
92.24 	state from which petroleum products and liquid petroleum gas are dispensed for sale in 
92.25 	this state. 
92.26 	(b) The commissioner of commerce shall apportion the assessment amount requested 
92.27 	among the entities in paragraph (a), clauses clause (1) and (2), in proportion to their 
92.28 	respective gross operating revenues from energy sold within the state during the most 
92.29 	recent calendar year, while ensuring that wholesale and retail sales are not double counted. 
92.30 	(c) The commissioner of commerce shall apportion the assessment amount requested 
92.31 	equally among the referenced entities in paragraph (a), clause (2).
92.32 	(c) (d) The entities in paragraph (a), clauses clause (1) and (2), must provide 
92.33 	information to the commissioner of commerce to allow for calculation of the assessment. 
93.1 	(d) (e) The assessments under this subdivision are in addition to assessments made 
93.2 	under section 216B.62. The amount assessed under this section is must be deposited in 
93.3 	the legislative energy commission account in the special revenue fund. Funds in the 
93.4 	legislative energy commission account are appropriated to the director of the Legislative 
93.5 	Coordinating Commission for the purposes of this section, and is are available until 
93.6 	expended. Utilities selling gas and electric service at retail must be assessed and billed 
93.7 	in accordance with the procedures provided in section 216B.62, to the extent that these 
93.8 	procedures do not conflict with this subdivision. 

93.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

93.10 	Sec. 2. Minnesota Statutes 2008, section 116C.779, subdivision 1, is amended to read:
93.11 		Subdivision 1.Renewable development account. (a) The public utility that owns 
93.12 	the Prairie Island nuclear generating plant must transfer to a renewable development 
93.13 	account $16,000,000 annually$500,000 each year for each dry cask containing spent fuel 
93.14 	that is located at the Prairie Island power plant for each year the plant is in operation, and 
93.15 	$7,500,000 each year the plant is not in operation if ordered by the commission pursuant 
93.16 	to paragraph (d). The fund transfer must be made if nuclear waste is stored in a dry cask at 
93.17 	the independent spent-fuel storage facility at Prairie Island for any part of a year. Funds 
93.18 	in the account may be expended only for development of renewable energy sources. 
93.19 	Preference must be given to development of renewable energy source projects located 
93.20 	within the state. The utility that owns a nuclear generating plant is eligible to apply for 
93.21 	renewable development fund grants. The utility's proposals must be evaluated by the 
93.22 	renewable development fund board in a manner consistent with that used to evaluate other 
93.23 	renewable development fund project proposals.
93.24 	(b) The public utility that owns the Monticello nuclear generating plant must transfer 
93.25 	to the renewable development account $350,000 each year for each dry cask containing 
93.26 	spent fuel that is located at the Monticello nuclear power plant for each year the plant is 
93.27 	in operation, and $5,250,000 each year the plant is not in operation if ordered by the 
93.28 	commission pursuant to paragraph (d). The fund transfer must be made if nuclear waste 
93.29 	is stored in a dry cask at the independent spent-fuel storage facility at Monticello for 
93.30 	any part of a year.
93.31 	 (c) Expenditures from the account may only be made after approval by order of the 
93.32 	Public Utilities Commission upon a petition by the public utility.
93.33 	 (d) After discontinuation of operation of the Prairie Island nuclear plant or the 
93.34 	Monticello nuclear plant and each year spent nuclear fuel is stored in dry cask at the 
93.35 	discontinued facility, the commission shall require the public utility to pay $7,500,000 for 
94.1 	the discontinued Prairie Island facility and $5,250,000 for the discontinued Monticello 
94.2 	facility for any year in which the commission finds, by the preponderance of the evidence, 
94.3 	that the public utility did not make a good faith effort to remove the spent nuclear 
94.4 	fuel stored at  the facility to a permanent or interim storage site out of the state. This 
94.5 	determination shall be made at least every two years.

94.6 	EFFECTIVE DATE. This section is effective when 32 dry casks containing spent 
94.7 	fuel are located at the Prairie Island nuclear plant.

94.8 	Sec. 3. [116C.7791] REBATES FOR SOLAR PHOTOVOLTAIC MODULES.
94.9 		Subdivision 1.Definitions. For the purpose of this section, the following terms 
94.10 	have the meanings given.
94.11 	(a) "Installation" means an array of solar photovoltaic modules attached to a building 
94.12 	that will use the electricity generated by the solar photovoltaic modules or placed on a 
94.13 	facility or property proximate to that building.
94.14 	(b) "Manufactured" means:
94.15 	(1) the material production of solar photovoltaic modules, including the tabbing, 
94.16 	stringing, and lamination processes; or
94.17 	(2) the production of interconnections of low-voltage photoactive elements that 
94.18 	produce the final useful photovoltaic output by a manufacturer operating in this state on 
94.19 	the effective date of this section.
94.20 	(c) "Qualified owner" means an owner of a qualified property, but does not include 
94.21 	an entity engaged in the business of generating or selling electricity at retail, or an 
94.22 	unregulated subsidiary of such an entity.
94.23 	(d) "Qualified property" means a residence, multifamily residence, business, or 
94.24 	publicly owned building located in the assigned service area of the utility subject to 
94.25 	section 116C.779.
94.26 	(e) "Solar photovoltaic module" means the smallest, nondivisible, self-contained 
94.27 	physical structure housing interconnected photovoltaic cells and providing a single direct 
94.28 	current of electrical output.
94.29 		Subd. 2.Establishment. The utility subject to section 116C.779 shall establish 
94.30 	a program to provide rebates to an owner of a qualified property for installing solar 
94.31 	photovoltaic modules manufactured in Minnesota after December 31, 2009. Any solar 
94.32 	photovoltaic modules installed under this program and any expenses incurred by the 
94.33 	utility operating the program shall be treated the same as solar installations and related 
94.34 	expenses under section 216B.241.
95.1 		Subd. 3.Rebate eligibility. (a) To be eligible for a rebate under this section, a 
95.2 	solar photovoltaic module:
95.3 	(1) must be manufactured in Minnesota;
95.4 	(2) must be installed on a qualified property as part of a system whose generating 
95.5 	capacity does not exceed 40 kilowatts;
95.6 	(3) must be certified by Underwriters Laboratory, must have received the ETL 
95.7 	listed mark from Intertek, or must have an equivalent certification from an independent 
95.8 	testing agency;
95.9 	(4) may or may not be connected to a utility grid;
95.10 	(5) must be installed, or reviewed and approved, by a person certified as a solar 
95.11 	photovoltaic installer by the North American Board of Certified Energy Practitioners; and
95.12 	(6) may not be used to sell, transmit, or distribute the electrical energy at retail, 
95.13 	nor to provide end-use electricity to an offsite facility of the electrical energy generator. 
95.14 	On-site generation is allowed to the extent provided for in section 216B.1611.
95.15 	(b) To be eligible for a rebate under this section, an applicant must have applied for 
95.16 	and been awarded a rebate or other form of financial assistance available exclusively to 
95.17 	owners of properties on which solar photovoltaic modules are installed that is offered by:
95.18 	(1) the utility serving the property on which the solar photovoltaic modules are to 
95.19 	be installed; or
95.20 	(2) this state, under an authority other than this section.
95.21 	(c) An applicant who is otherwise ineligible for a rebate under paragraph (b) is 
95.22 	eligible if the applicant's failure to secure a rebate or other form of financial assistance is 
95.23 	due solely to a lack of available funds on the part of a utility or this state.
95.24 		Subd. 4.Rebate amount and payment. (a) The amount of a rebate under this 
95.25 	section is the difference between the sum of all rebates described in subdivision 3, 
95.26 	paragraph (b), awarded to the applicant and $5 per watt of installed generating capacity.
95.27 	(b) Notwithstanding paragraph (a), the amount of all rebates or other forms of 
95.28 	financial assistance awarded to an applicant by a utility and the state, including any rebate 
95.29 	paid under this section, net of applicable federal income taxes applied at the highest 
95.30 	applicable income tax rates, must not exceed 60 percent of the total installed cost of 
95.31 	the solar photovoltaic modules.
95.32 	(c) Rebates must be awarded to eligible applicants beginning July 1, 2010.
95.33 	(d) The rebate must be paid out proportionately in five consecutive annual 
95.34 	installments.
95.35 		Subd. 5.Rebate program funding. (a) The following amounts must be allocated 
95.36 	from the renewable development account established in section 116C.779 to a separate 
96.1 	account for the purpose of providing the rebates for solar photovoltaic modules specified 
96.2 	in this section:
96.3 	(1) $2,000,000 in fiscal year 2011;
96.4 	(2) $4,000,000 in fiscal year 2012;
96.5 	(3) $5,000,000 in fiscal year 2013;
96.6 	(4) $5,000,000 in fiscal year 2014; and
96.7 	(5) $5,000,000 in fiscal year 2015.
96.8 	(b) If, by the end of fiscal year 2015, insufficient qualified owners have applied for 
96.9 	and met the requirements for rebates under this section to exhaust the funds available, any 
96.10 	remaining balance shall be returned to the account established under section 116C.779.

96.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

96.12 	Sec. 4. Minnesota Statutes 2008, section 116J.437, subdivision 1, is amended to read:
96.13 		Subdivision 1.Definitions. (a) For the purpose of this section, the following terms 
96.14 	have the meanings given.
96.15 	(b) "Green economy" means products, processes, methods, technologies, or services 
96.16 	intended to do one or more of the following:
96.17 	(1) increase the use of energy from renewable sources, including through achieving 
96.18 	the renewable energy standard established in section 216B.1691;
96.19 	(2) achieve the statewide energy-savings goal established in section 216B.2401, 
96.20 	including energy savings achieved by the conservation investment program under section 
96.21 	216B.241;
96.22 	(3) achieve the greenhouse gas emission reduction goals of section 216H.02, 
96.23 	subdivision 1, including through reduction of greenhouse gas emissions, as defined in 
96.24 	section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, 
96.25 	but not limited to, carbon capture, storage, or sequestration;
96.26 	(4) monitor, protect, restore, and preserve the quality of surface waters, including 
96.27 	actions to further the purposes of the Clean Water Legacy Act as provided in section 
96.28 	114D.10, subdivision 1; or
96.29 	(5) expand the use of biofuels, including by expanding the feasibility or reducing the 
96.30 	cost of producing biofuels or the types of equipment, machinery, and vehicles that can 
96.31 	use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections 
96.32 	41A.10, subdivision 2, and 41A.11; or
96.33 	(6) increase the use of green chemistry, as defined in section 116.9401.
97.1 	For the purpose of clause (3), "green economy" includes strategies that reduce carbon 
97.2 	emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass 
97.3 	transit or otherwise reducing commuting for employees.

97.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

97.5 	Sec. 5. Minnesota Statutes 2008, section 216B.16, subdivision 14, is amended to read:
97.6 		Subd. 14.Low-income electric rate discount. A public utility shall fund an 
97.7 	affordability program for low-income customers in an amount based on a 50 percent 
97.8 	electric rate discount on the first 300400 kilowatt-hours consumed in a billing period for 
97.9 	low-income residential customers of the utility. For the purposes of this subdivision, 
97.10 	"low-income" describes a customer who is receiving assistance from the federal 
97.11 	low-income home energy assistance program. The affordability program must be designed 
97.12 	to target participating customers with the lowest incomes and highest energy costs in order 
97.13 	to lower the percentage of income they devote to energy bills, increase their payments, 
97.14 	and lower costs associated with collection activities on their accounts. For low-income 
97.15 	customers who are 62 years of age or older or disabled, the program must, in addition to 
97.16 	any other program benefits, include a 50 percent electric rate discount on the first 300400
97.17 	kilowatt-hours consumed in a billing period. For the purposes of this subdivision, "public 
97.18 	utility" includes only those public utilities with more than 200,000 residential electric 
97.19 	service customers. The commission may issue orders necessary to implement, administer, 
97.20 	and recover the costs of the program on a timely basis.

97.21 	Sec. 6. Minnesota Statutes 2008, section 216B.16, subdivision 15, is amended to read:
97.22 		Subd. 15.Low-income affordability programs. (a) The commission must 
97.23 	consider ability to pay as a factor in setting utility rates and may establish affordability 
97.24 	programs for low-income residential ratepayers in order to ensure affordable, reliable, 
97.25 	and continuous service to low-income utility customers. Affordability programs may 
97.26 	include inverted block rates in which lower energy prices are made available to lower 
97.27 	usage customers. By September 1, 2007, a public utility serving low-income residential 
97.28 	ratepayers who use natural gas for heating must file an affordability program with the 
97.29 	commission. For purposes of this subdivision, "low-income residential ratepayers" means 
97.30 	ratepayers who receive energy assistance from the low-income home energy assistance 
97.31 	program (LIHEAP).
97.32 	(b) Any affordability program the commission orders a utility to implement must:
97.33 	(1) lower the percentage of income that participating low-income households devote 
97.34 	to energy bills;
98.1 	(2) increase participating customer payments over time by increasing the frequency 
98.2 	of payments;
98.3 	(3) decrease or eliminate participating customer arrears;
98.4 	(4) lower the utility costs associated with customer account collection activities; and 
98.5 	(5) coordinate the program with other available low-income bill payment assistance 
98.6 	and conservation resources. 
98.7 	(c) In ordering affordability programs, the commission may require public utilities to 
98.8 	file program evaluations that measure the effect of the affordability program on:
98.9 	(1) the percentage of income that participating households devote to energy bills;
98.10 	(2) service disconnections; and
98.11 	(3) frequency of customer payments, utility collection costs, arrearages, and bad 
98.12 	debt.
98.13 	(d) The commission must issue orders necessary to implement, administer, and 
98.14 	evaluate affordability programs, and to allow a utility to recover program costs, including 
98.15 	administrative costs, on a timely basis. The commission may not allow a utility to recover 
98.16 	administrative costs, excluding start-up costs, in excess of five percent of total program 
98.17 	costs, or program evaluation costs in excess of two percent of total program costs. The 
98.18 	commission must permit deferred accounting, with carrying costs, for recovery of program 
98.19 	costs incurred during the period between general rate cases.
98.20 	(e) Public utilities may use information collected or created for the purpose of 
98.21 	administering energy assistance to administer affordability programs.

98.22 	Sec. 7. [216B.1695] ENVIRONMENTAL PROJECTS; ADVANCE 
98.23 	DETERMINATION OF PRUDENCE.
98.24 		Subdivision 1.Qualifying project. A public utility may petition the commission for 
98.25 	an advance determination of prudence for a project undertaken to comply with federal 
98.26 	or state air quality standards of states in which the utility's electric generation facilities 
98.27 	are located, if the project has an expected jurisdictional cost to Minnesota ratepayers of 
98.28 	at least $10,000,000. A project is undertaken to comply with federal or state air quality 
98.29 	standards if it is required:
98.30 	(1) by the state in which the generation facility is located in a state implementation 
98.31 	plan, permit, or order; or
98.32 	(2) to comply with section 111 or 112 of the federal Clean Air Act, United States 
98.33 	Code, title 42, section 7411 or 7412.
98.34 		Subd. 2.Regulatory cost assessments and reports. A utility requesting an 
98.35 	advance determination under subdivision 1 must, as part of the evidence required when 
99.1 	filing a petition under subdivision 3, provide to the Public Utilities Commission and the 
99.2 	Pollution Control Agency an assessment of all anticipated state and federal environmental 
99.3 	regulations related to the production of electricity from the utility's facility subject to 
99.4 	the filing, including regulations relating to:
99.5 	(1) air pollution by nitrogen oxide and sulphur dioxide, including an assumption that 
99.6 	Minnesota will be included in the federal Clean Air Interstate Rule region, hazardous air 
99.7 	pollutants, carbon dioxide, particulates, and ozone;
99.8 	(2) coal waste; and
99.9 	(3) water consumption and water pollution.
99.10 	In addition, the utility shall provide an assessment of the financial and operational 
99.11 	impacts of these pending regulations applicable to the generating facility that is the 
99.12 	subject of the filing and provide a range of regulatory response scenarios that include, but 
99.13 	are not limited to:
99.14 	(1) the installation of pollution control equipment;
99.15 	(2) the benefits of the retirement or repowering of the plant that is the subject of 
99.16 	the filing with cleaner fuels considering the costs of complying with state and federal 
99.17 	environmental regulations; and
99.18 	(3) the use of pollution allowances to achieve compliance.
99.19 	The utility shall consult with interested stakeholders in establishing the scope of the 
99.20 	regulatory, financial, and operational assessments prior to or during the 60-day period of 
99.21 	the notice under subdivision 4.
99.22 		Subd. 3.Petition. A petition filed under this section must include a description of 
99.23 	the project, evidence supporting the project's reasonableness, a discussion of project 
99.24 	alternatives, a project implementation schedule, a cost estimate and support for the 
99.25 	reasonableness of the estimated cost, and a description of the public utility's efforts to 
99.26 	ensure the lowest reasonable costs. Following receipt of the Pollution Control Agency's 
99.27 	verification under subdivision 4, the commission shall allow opportunity for oral and 
99.28 	written comment on the petition. The commission shall make a final determination on 
99.29 	the petition within ten months of its filing date. The commission must make findings 
99.30 	in support of its determination.
99.31 		Subd. 4.Verification. At least 60 days prior to filing a petition to the commission 
99.32 	under subdivision 3, the utility shall file notice with the Pollution Control Agency that 
99.33 	describes the project and how it qualifies under subdivision 1. The Pollution Control 
99.34 	Agency shall, within 60 days of receipt of the notice, verify that the project qualifies under 
99.35 	subdivision 1, and shall forward written verification to the commission.
100.1 		Subd. 5.Cost recovery. The utility may begin recovery of costs that have been 
100.2 	incurred by the utility in connection with implementation of the project in the next rate 
100.3 	case following an advance determination of prudence. The commission shall review the 
100.4 	costs incurred by the utility for the project. The utility must show that the project costs 
100.5 	are reasonable and necessary, and demonstrate its efforts to ensure the lowest reasonable 
100.6 	project costs. Notwithstanding the commission's prior determination of prudence, it may 
100.7 	accept, modify, or reject any of the project costs. The commission may determine whether 
100.8 	to require an allowance for funds used during construction offset.
100.9 		Subd. 6.Expiration. A petition for an advance determination of prudence may not 
100.10 	be filed after December 31, 2015.

100.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

100.12 	Sec. 8. Minnesota Statutes 2008, section 216B.2401, is amended to read:
100.13 	216B.2401 ENERGY CONSERVATION POLICY GOAL.
100.14 	It is the energy policy of the state of Minnesota to achieve annual energy savings 
100.15 	equal to 1.5 percent of annual retail energy sales of electricity and natural gas directly 
100.16 	through energy conservation improvement programs and rate design, such as inverted 
100.17 	block rates in which lower energy prices are made available to lower usage residential 
100.18 	customers, and indirectly through energy codes and appliance standards, programs 
100.19 	designed to transform the market or change consumer behavior, energy savings resulting 
100.20 	from efficiency improvements to the utility infrastructure and system, and other efforts to 
100.21 	promote energy efficiency and energy conservation.

100.22 	Sec. 9. Minnesota Statutes 2008, section 216B.62, is amended by adding a subdivision 
100.23 	to read:
100.24 		Subd. 3a.Supplemental staffing assessment. In addition to other assessments in 
100.25 	subdivision 3, the commission may assess up to $800,000 per year for supplemental 
100.26 	staffing to implement requirements of this chapter. The amount in this subdivision shall 
100.27 	be assessed to the several public utilities in proportion to their respective gross operating 
100.28 	revenues from retail sales of gas or electric service within the state during the last calendar 
100.29 	year, shall be deposited into an account in the special revenue fund, and appropriated to 
100.30 	the commission. An assessment made under this subdivision is not subject to the cap on 
100.31 	assessments provided in subdivision 3 or any other law.

101.1 	Sec. 10. Minnesota Statutes 2008, section 326B.106, subdivision 12, is amended to 
101.2 	read:
101.3 		Subd. 12.Separate metering for electric service. The standards concerning heat 
101.4 	loss, illumination, and climate control adopted pursuant to subdivision 1, shall require 
101.5 	that electrical service to individual dwelling units in buildings containing two or more 
101.6 	units be separately metered, with individual metering readily accessible to the individual 
101.7 	occupants. The standards authorized by this subdivision shall only apply to buildings 
101.8 	constructed after the effective date of the amended standards. Buildings intended for 
101.9 	occupancy primarily by persons who are 62 years of age or older or disabled,  supportive 
101.10 	housing, or whichbuildings that contain a majority of units not equipped with complete 
101.11 	kitchen facilities, shall be exempt from the provisions of this subdivision. For purposes 
101.12 	of this section, "supportive housing" means housing made available to individuals and 
101.13 	families with multiple barriers to obtaining and maintaining housing, including those who 
101.14 	are formerly homeless or at risk of homelessness and those who have a mental illness, 
101.15 	substance abuse disorder, debilitating disease, or a combination of these conditions.

101.16 	Sec. 11. [383B.1588] ENERGY FORWARD PRICING MECHANISMS.
101.17 		Subdivision 1.Definitions. The following definitions apply in this section.
101.18 	(a) "Energy" means natural gas, heating oil, diesel fuel, unleaded fuel, or any other 
101.19 	energy source, except electric, used in Hennepin County operations.
101.20 	(b) "Forward pricing mechanism" means either:
101.21 	(1) a contract or financial instrument that obligates Hennepin County to buy or sell a 
101.22 	specified amount of an energy commodity at a future date and at a set price; or
101.23 	(2) an option to buy or sell the contract or financial instrument.
101.24 		Subd. 2.Authority provided. Notwithstanding any other law to the contrary, 
101.25 	the Hennepin County Board of Commissioners may use forward pricing mechanisms 
101.26 	for budget risk reduction.
101.27 		Subd. 3.Conditions. (a) Forward pricing transactions made under this section must 
101.28 	be made only under the conditions in this subdivision.
101.29 	(b) The amount of energy forward priced must not exceed the estimated energy 
101.30 	usage for Hennepin County operations for the period of time covered by the forward 
101.31 	pricing mechanism.
101.32 	(c) The holding period and expiration date for any forward pricing mechanism must 
101.33 	not exceed 24 months from the trade date of the transaction.
101.34 	(d) Separate accounts must be established for each operational energy for which 
101.35 	forward pricing mechanisms are used under this section.
102.1 		Subd. 4.Written policies and procedures. Before exercising authority under 
102.2 	subdivision 2, the Hennepin County Board of Commissioners must have written policies 
102.3 	and procedures governing the use of forward pricing mechanisms.
102.4 		Subd. 5.Oversight process. (a) Before exercising authority under subdivision 2, 
102.5 	the Hennepin County Board of Commissioners must establish an oversight process that 
102.6 	provides for review of the county's used of forward pricing mechanisms.
102.7 	(b) The process must include:
102.8 	(1) internal or external audit reviews;
102.9 	(2) annual reports to, and review by, an internal investment committee; and
102.10 	(3) internal management control.

102.11 	EFFECTIVE DATE. This section is effective without local approval the day 
102.12 	following final enactment as provided under Minnesota Statutes, section 645.023, 
102.13 	subdivision 1, paragraph (a).

102.14 	Sec. 12. [383B.82] WIND AND SOLAR BUSINESS ENTITY PARTICIPATION.
102.15 	To exercise the authority granted to counties under section 373.48, Hennepin County 
102.16 	may be a limited partner in a partnership, a member of a limited liability company, or a 
102.17 	shareholder in a corporation established for the purpose of constructing, acquiring, owning 
102.18 	in whole or in part, financing, or operating a facility that generates electricity from wind 
102.19 	or solar energy. Liability for Hennepin County is governed by section 466.04. Section 
102.20 	466.04 also governs liability for a limited liability company or a corporation, either of 
102.21 	which is wholly owned by Hennepin County and formed under this section.

102.22 	Sec. 13. Laws 1981, chapter 222, section 1, is amended to read:
102.23 	Section 1.MINNEAPOLIS AND ST. PAUL; RESIDENTIAL, COMMERCIAL, 
102.24 	AND INDUSTRIAL ENERGY CONSERVATION PROGRAM; PURPOSE.
102.25 	The legislature finds and declares that the state faces potential serious shortages in 
102.26 	energy resources and that implementing energy conservation measures requires expanded 
102.27 	authority and technical capability in order to minimize the use of traditional energy 
102.28 	sources in the housing sector, commercial, and industrial sectors; that accomplishing 
102.29 	energy conservation is a public purpose; and that it is in the public interest to authorize 
102.30 	the city of Minneapolis and the city of St. Paul to provide existing single family, existing 
102.31 	multifamily and existing rental housing residential, commercial, and industrial property
102.32 	loans for energy improvements.

103.1 	EFFECTIVE DATE. This section is effective the day following final enactment for 
103.2 	each of the cities of Minneapolis and St. Paul without local approval under Minnesota 
103.3 	Statutes, section 645.023, subdivision 1, paragraph (a).

103.4 	Sec. 14. Laws 1981, chapter 222, section 2, is amended to read:
103.5 	Sec. 2.RESIDENTIAL ENERGY CONSERVATION PROGRAM.
103.6 	Notwithstanding any provision of law or charter to the contrary the city of 
103.7 	Minneapolis and the city of St. Paul, individually or jointly are authorized to develop and 
103.8 	administer a program or programs for the making or purchasing of energy improvement or 
103.9 	energy rehabilitation loans with respect to housing residential, commercial, and industrial 
103.10 	properties located anywhere within their respective boundaries on such terms and 
103.11 	conditions as set forth in this act and an ordinance which shall be adopted by the governing 
103.12 	body or bodies of the municipality or municipalities establishing the program. At least 75 
103.13 	percent of the proceeds of each energy improvement or energy rehabilitation loan shall 
103.14 	be used for housing property repairs and, improvements, and equipment (1) which the 
103.15 	city determines are (a) used or useful to conserve energy or (b) to convert or retrofit 
103.16 	an existing structure for the purpose of using an energy source which does not depend 
103.17 	on nuclear or nonrenewable petroleum based resources, and (2) which, when installed 
103.18 	or completed, will with respect to each housing unit directly result in a cost effective 
103.19 	reduction of energy use from nuclear or nonrenewable petroleum based resources. The 
103.20 	ordinance establishing the program shall establish the manner of determining whether the 
103.21 	housing repairs and, improvements, and equipment  will directly result in the required cost 
103.22 	effective reduction of energy use. Loans may be made without regard to income level 
103.23 	of the loan recipient, shall bear interest at a rate or rates as are established by the city or 
103.24 	cities, shall be for a term of not to exceed 20 years, and may be secured by a mortgage 
103.25 	or other security interest. The powers granted to each city by sections 1 to 5 of this act 
103.26 	are supplemental and in addition to those granted by Minnesota Statutes, Chapter 462C, 
103.27 	Chapter 469, and any other law or charter.

103.28 	EFFECTIVE DATE. This section is effective the day following final enactment for 
103.29 	each of the cities of Minneapolis and St. Paul without local approval under Minnesota 
103.30 	Statutes, section 645.023, subdivision 1, paragraph (a).

103.31 	Sec. 15. Laws 1981, chapter 222, section 3, is amended to read:
103.32 	Sec. 3.LIMITATIONS.
103.33 	A program may be established pursuant to this act only after the city establishing the 
103.34 	program determines that:
104.1 	(1) There is a continued need to reduce consumption of energy from nonrenewable 
104.2 	petroleum based resources.
104.3 	(2) There are housing units properties within the jurisdiction of the city which are in 
104.4 	need of energy improvements and energy rehabilitation.
104.5 	(3) Private sources of financing are not reasonably available to provide the needed 
104.6 	loans for energy improvements and energy rehabilitation.
104.7 	(4) The types of energy improvements and energy rehabilitation will reduce the 
104.8 	consumption of energy from nonrenewable petroleum based resources or from nuclear 
104.9 	sources.
104.10 	Findings made by the city pursuant to this section shall be conclusive and final.

104.11 	EFFECTIVE DATE. This section is effective the day following final enactment for 
104.12 	each of the cities of Minneapolis and St. Paul without local approval under Minnesota 
104.13 	Statutes, section 645.023, subdivision 1, paragraph (a).

104.14 	Sec. 16. Laws 1981, chapter 222, section 4, subdivision 2, is amended to read:
104.15 		Subd. 2.Bonding and financial authority. Notwithstanding the provisions of any 
104.16 	other law, general or special to the contrary, and in addition to the authority contained in 
104.17 	any other law, the city of Minneapolis and the city of St. Paul individually or jointly may 
104.18 	exercise any and all of the same powers in relation to the making or purchasing of loans 
104.19 	or other securities and in the issuing of revenue bonds or obligations in furtherance of 
104.20 	the programs authorized by sections 1 to 5 as the Minnesota housing finance agency is 
104.21 	authorized to exercise under the provisions of Minnesota Statutes, Chapter 462A, without 
104.22 	regard to any of the limitations set forth in Minnesota Statutes, Chapters 462C or 475. 
104.23 	The revenue bonds or obligations shall be payable from revenues from the program and 
104.24 	other city housing programs. The revenue bonds or obligations may be payable from 
104.25 	other sources of city revenue which are derived from federal sources other than general 
104.26 	revenue sharing, or private grant sources. The city shall not levy or pledge to levy any 
104.27 	ad valorem tax upon real property for the purpose of paying principal of or interest on 
104.28 	revenue bonds or obligations.

104.29 	EFFECTIVE DATE. This section is effective the day following final enactment for 
104.30 	each of the cities of Minneapolis and St. Paul without local approval under Minnesota 
104.31 	Statutes, section 645.023, subdivision 1, paragraph (a).

104.32 	Sec. 17. Laws 2009, chapter 37, article 2, section 13, is amended to read:
104.33 	Sec. 13. APPROPRIATIONS; CANCELLATIONS.
 105.1 	(a) The remaining balance of the fiscal year 2009 special revenue fund appropriation 
105.2 	for the Green Jobs Task Force under Laws 2008, chapter 363, article 6, section 3, 
105.3 	subdivision 4, is transferred and appropriated to the commissioner of employment and 
105.4 	economic development for the purposes of green enterprise assistance under Minnesota 
105.5 	Statutes, section 116J.438. This appropriation is available until spent.
105.6 	(b) The unencumbered balance of the fiscal year 2008 appropriation to the 
105.7 	commissioner of commerce for the rural and energy development revolving loan 
105.8 	fund under Laws 2007, chapter 57, article 2, section 3, subdivision 6, is canceled and 
105.9 	reappropriated to the commissioner of commerce as follows:
105.10 	(1) $1,500,000 is for a grant to the Board of Trustees of the Minnesota State Colleges 
105.11 	and Universities for the International Renewable Energy Technology Institute (IRETI) to 
105.12 	be located at Minnesota State University, Mankato, as a public and private partnership to 
105.13 	support applied research in renewable energy and energy efficiency to aid in the transfer of 
105.14 	technology from Sweden to Minnesota and to support technology commercialization from 
105.15 	companies located in Minnesota and throughout the world; and
105.16 	(2) the remaining balance is for a grant to the Board of Regents of the University of 
105.17 	Minnesota for the initiative for renewable energy and the environment to fund start up 
105.18 	costs related to a national solar testing and certification laboratory to test, rate, and certify 
105.19 	the performance of equipment and devices that utilize solar energy for heating and cooling 
105.20 	air and water and for generating electricity.
105.21 	This appropriation is available until expended.

105.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

105.23 	Sec. 18. Laws 2009, chapter 138, article 2, section 4, is amended to read:
105.24 	Sec. 4. SMALL CITY ENERGY EFFICIENCY GRANT.
 105.25 		Subdivision 1.Program. The commissioner shall make a grant for an innovative 
105.26 	residential and commercial energy efficiency program in a small rural city with a 
105.27 	population under 4,000 located in the service area of Minnesota Power that is currently 
105.28 	working with that utility, the county housing and redevelopment authority, and other 
105.29 	state and local housing organizations to enhance energy efficiency for residents and 
105.30 	businesses. Stimulus funds must be matched $1 for every $4 of stimulus funds granted 
105.31 	under this section and are available to the extent of the match. The program must include 
105.32 	the following elements:
105.33 	(1) provision of basic residential and commercial energy conservation measures;
106.1 	(2) provision of more comprehensive residential and commercial energy 
106.2 	conservation measures, including extensive retrofits and appliance upgrades; and
106.3 	(3) a plan to establish a revolving loan fund so that the program is sustainable over 
106.4 	time; and
106.5 	(4) innovative financing options allowing residents and businesses to finance energy 
106.6 	efficiency improvements, at least in part, with energy savings.
106.7 		Subd. 2.Report. By January 15, 2010, and October 30, 2010, the city must submit 
106.8 	a report measuring and assessing the program's effectiveness and energy savings to the 
106.9 	commissioner and the chairs and ranking minority members of the senate and house of 
106.10 	representatives committees with primary jurisdiction over energy policy and finance.

106.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

106.12 	Sec. 19. URBAN TRANSMISSION LINE; CERTIFICATE OF NEED 
106.13 	REQUIRED.
 106.14 	(a) A high-voltage transmission line longer than one mile with a capacity of 100 
106.15 	kilovolts or more that is located in a city of the first class in a zone within one mile of the 
106.16 	transmission line in which population density exceeds 8,000 persons per square mile, and 
106.17 	that runs parallel to and is within one-half mile of a below-grade bike and walking path 
106.18 	that connects with other bike paths along a river, is subject to the provisions of Minnesota 
106.19 	Statutes, section 216B.243.
106.20 	(b) This section expires December 31, 2014.

106.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
106.22 	and applies only to high-voltage transmission lines described in this section that are the 
106.23 	subject of an application for a route permit under Minnesota Statutes, chapter 216E, that is 
106.24 	pending before the Public Utilities Commission on March 15, 2010.

106.25 	Sec. 20. NEIGHBORHOOD ENERGY REDUCTION REPORT.
 106.26 		Subdivision 1.Report. (a) By February 15, 2011, an organization with experience 
106.27 	in energy conservation and energy planning at the neighborhood level that serves as 
106.28 	project manager must submit a report to the chairs and ranking minority members of the 
106.29 	senate and house of representatives committees with primary jurisdiction over energy 
106.30 	policy that contains the following information:
106.31 	(1) projections of the amount of energy that can be conserved and generated through 
106.32 	the implementation of cost-effective energy efficiency investments; innovative energy 
106.33 	storage projects, including thermal energy storage; smart-grid technologies; and energy 
107.1 	produced from distributed generation projects fueled by solar photovoltaic and other 
107.2 	renewable energy sources located in the focused study area designated in the application 
107.3 	to the Minnesota Public Utilities Commission for a route permit for the high-voltage 
107.4 	transmission line identified in section 19;
107.5 	(2) for each energy-reducing or energy-generating element recommended, 
107.6 	estimates of the amount of energy conserved or generated, the reduction in peak demand 
107.7 	requirements in the focused study area, and the cost per unit of energy saved or generated; 
107.8 	and
107.9 	(3) an estimate of the number of green jobs that would be created through 
107.10 	implementation of the report's recommendations.
107.11 	(b) Requests by the project manager for information from the utility serving the 
107.12 	focused study area may be made after the service of notice of and order for hearing made 
107.13 	under Minnesota Statutes, section 216B.243, for the project described in section 19. 
107.14 	Information requests with respect to the study are governed by the rules for contested case 
107.15 	hearings in Minnesota Rules, part 1400.6700.
107.16 	(c) The project manager may contract for portions of the work required to complete 
107.17 	the report.
107.18 		Subd. 2.Community steering committee. (a) The project manager shall convene 
107.19 	a community steering committee to provide input to the report.  Appointments to the 
107.20 	steering committee must reflect the diversity of the focused study area, and include 
107.21 	representatives of focused study area residents, including homeowners, building owners 
107.22 	and renters, businesses, churches, other institutions, including the Midtown Community 
107.23 	Works Partnership, local hospitals, and local elected officials representing the focused 
107.24 	study area. All meetings held by the community steering committee or any subcommittees 
107.25 	it creates must be public meetings, with advance notice given to the public.
107.26 	(b) The project manager shall seek to maximize the participation of focused study 
107.27 	area residents, stakeholders, and institutions in recommending ideas to be included within 
107.28 	the scope of the report and in reviewing initial and successive drafts of the report, including 
107.29 	providing stipends for reasonable expenses when necessary to increase participation, but 
107.30 	not including per diem payments. The project manager shall contact representatives of 
107.31 	similar successful projects in other states to benefit from their experience and to learn 
107.32 	about best practices for increasing public participation that can be replicated in Minnesota. 
107.33 	The report must incorporate and respond to comments from the focused study area and 
107.34 	the steering committee.
107.35 		Subd. 3.Energy savings. The utility that serves the focused study area may apply 
107.36 	energy savings resulting directly from the implementation of recommendations contained 
108.1 	in the report regarding energy efficiency investments to its energy-savings goal under 
108.2 	Minnesota Statutes, section 216B.241, subdivision 1c.
108.3 		Subd. 4.Certificate of need process. No contested case evidentiary hearings for 
108.4 	a certificate of need for the transmission line identified in section 19 may commence 
108.5 	before April 1, 2011. 

108.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

108.7 	Sec. 21. APPROPRIATION AND TRANSFER.
 108.8 	(a) The utility subject to Minnesota Statutes, section 116C.779, shall transfer 
108.9 	$90,000 from the renewable development account established under that section to the 
108.10 	commissioner of commerce, who shall deposit it in the special revenue fund.
108.11 	(b) $90,000 from the money deposited in the special revenue fund under paragraph 
108.12 	(a) is appropriated to the commissioner of commerce for transfer to the city of Minneapolis 
108.13 	for a grant to an organization with experience in energy conservation and energy planning 
108.14 	at the neighborhood level that is selected by the city, in consultation with the Midtown 
108.15 	Greenway Coalition and representatives of the neighborhoods in which the high-voltage 
108.16 	transmission line described in section 19 is proposed to be located, and after project 
108.17 	proposals have been reviewed, to serve as project manager for the purpose of completing 
108.18 	the report required under section 20.
108.19 	This is a onetime appropriation and is available until expended.

108.20 	Sec. 22.  REPEALER.
 108.21 	Laws 1981, chapter 222, section 7, is repealed.