1.1A bill for an act1.2relating to state government; appropriating money from the outdoor heritage 1.3fund, clean water fund, and arts and cultural heritage fund; modifying 1.4requirements for outdoor heritage fund appropriations; providing for public 1.5grazing program; changing provisions of grant management; changing control 1.6and oversight of the film production jobs program to the commissioner of 1.7administration; modifying prior appropriations;amending Minnesota Statutes 1.82010, sections 16B.98, subdivisions 5, 7; 97A.056, by adding subdivisions; 1.9116U.26; Minnesota Statutes 2011 Supplement, section 114D.30, subdivision 4; 1.10Laws 2009, chapter 172, article 2, section 4, as amended; article 3, section 3; 1.11Laws 2011, First Special Session chapter 6, article 1, section 2, subdivision 9; 1.12article 2, section 7; article 4, section 2, subdivision 5; proposing coding for new 1.13law in Minnesota Statutes, chapter 84.1.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.15ARTICLE 11.16OUTDOOR HERITAGE FUND

1.17Section 1. OUTDOOR HERITAGE APPROPRIATION.

1.18The sums shown in the columns marked "Appropriations" are appropriated to the 1.19agencies and for the purposes specified in this article. The appropriations are from the 1.20outdoor heritage fund and are available for the fiscal years indicated for each purpose. The 1.21figures "2012" and "2013" used in this article mean that the appropriations listed under the 1.22figure are available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. 1.23"The first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium" 1.24is fiscal years 2012 and 2013. The appropriations in this article are onetime.

1.25APPROPRIATIONS1.26Available for the Year1.27Ending June 301.2820122013

2.1Sec. 2. OUTDOOR HERITAGE

2.2Subdivision 1.Total Appropriation$-0-$ 97,420,000

2.3This appropriation is from the outdoor 2.4heritage fund. The amounts that may be 2.5spent for each purpose are specified in the 2.6following subdivisions.

2.7Subd. 2.Prairies-0-24,640,000

2.82.9(a) Minnesota Buffers for Wildlife and Water - Phase II

2.10$2,090,000 in the second year is to the 2.11Board of Water and Soil Resources in 2.12cooperation with Pheasants Forever to 2.13acquire permanent conservation easements 2.14to enhance habitat by expanding clean water 2.15fund riparian wildlife buffers on private land. 2.16A list of proposed permanent conservation 2.17easements must be provided as part of the 2.18final report. The accomplishment plan must 2.19include an easement stewardship plan. Up 2.20to $90,000 is for establishing a monitoring 2.21and enforcement fund as approved in 2.22the accomplishment plan and subject to 2.23Minnesota Statutes, section 97A.056, 2.24subdivision 17. An annual financial report is 2.25required for any monitoring and enforcement 2.26fund established, including expenditures 2.27from the fund and a description of annual 2.28monitoring and enforcement activities.

2.292.30(b) Minnesota Prairie Recovery Project - Phase III

2.31$4,610,000 in the second year is to the 2.32commissioner of natural resources for an 2.33agreement with The Nature Conservancy to 2.34acquire native prairie and savanna and restore 2.35and enhance grasslands and savanna. A list of 3.1proposed land acquisitions must be provided 3.2as part of the required accomplishment plan. 3.3Annual income statements and balance sheets 3.4for income and expenses from land acquired 3.5with this appropriation must be submitted to 3.6the Lessard-Sams Outdoor Heritage Council 3.7no later than 180 days following the close of 3.8The Nature Conservancy's fiscal year.

3.93.10(c) Cannon River Headwaters Habitat Complex - Phase II

3.11$1,760,000 in the second year is to the 3.12commissioner of natural resources for an 3.13agreement with The Trust for Public Land 3.14to acquire and restore lands in the Cannon 3.15River watershed for wildlife management 3.16area purposes under Minnesota Statutes, 3.17section 86A.05, subdivision 8, or aquatic 3.18management area purposes under Minnesota 3.19Statutes, sections 86A.05, subdivision 3.2014, and 97C.02. A list of proposed land 3.21acquisitions must be provided as part of the 3.22required accomplishment plan.

3.23(d) Wildlife Management Area Acquisition

3.24$2,900,000 in the second year is to the 3.25commissioner of natural resources to acquire 3.26land in fee for wildlife management area 3.27purposes under Minnesota Statutes, section 3.2886A.05, subdivision 8. A list of proposed 3.29land acquisitions must be provided as part of 3.30the required accomplishment plan.

3.313.32(e) Northern Tallgrass Prairie National Wildlife Refuge Land Acquisition - Phase IV

3.33$1,580,000 in the second year is to the 3.34commissioner of natural resources for an 3.35agreement with The Nature Conservancy 4.1in cooperation with the United States Fish 4.2and Wildlife Service to acquire land in 4.3fee or permanent conservation easements 4.4within the Northern Tallgrass Prairie Habitat 4.5Preservation Area in western Minnesota for 4.6addition to the Northern Tallgrass Prairie 4.7National Wildlife Refuge. A list of proposed 4.8land acquisitions must be provided as part 4.9of the required accomplishment plan. The 4.10accomplishment plan must include an 4.11easement monitoring and enforcement plan.

4.124.13(f) Accelerating the Wildlife Management Area Program - Phase IV

4.14$3,300,000 in the second year is to the 4.15commissioner of natural resources for an 4.16agreement with Pheasants Forever to acquire 4.17land in fee for wildlife management area 4.18purposes under Minnesota Statutes, section 4.1986A.05, subdivision 8. A list of proposed 4.20land acquisitions must be provided as part of 4.21the required accomplishment plan.

4.22(g) Green Corridor Legacy Program - Phase IV

4.23$1,730,000 in the second year is to the 4.24commissioner of natural resources for 4.25an agreement with the Redwood Area 4.26Development Corporation to acquire land in 4.27fee for wildlife management area purposes 4.28under Minnesota Statutes, section 86A.05, 4.29subdivision 8, and for aquatic management 4.30areas under Minnesota Statutes, sections 4.3186A.05, subdivision 14, and 97C.02. A list of 4.32proposed land acquisitions must be provided 4.33as part of the required accomplishment plan.

4.344.35(h) Accelerated Prairie Restoration and Enhancement on DNR Lands - Phase IV

5.1$4,300,000 in the second year is to the 5.2commissioner of natural resources to 5.3accelerate the restoration and enhancement 5.4of wildlife management areas, scientific 5.5and natural areas, and land under native 5.6prairie bank easements. A list of proposed 5.7restorations and enhancements must 5.8be provided as part of the required 5.9accomplishment plan.

5.105.11(i) Anoka Sand Plain Habitat Restoration and Enhancement - Phase II

5.12$1,050,000 in the second year is to the 5.13commissioner of natural resources for 5.14agreements to restore and enhance habitat on 5.15public lands in the Anoka Sand Plain and 5.16along the Rum River as follows: $558,750 to 5.17Great River Greening; $99,400 to the Anoka 5.18Conservation District; and $391,850 to the 5.19National Wild Turkey Federation. A list 5.20of proposed restorations and enhancements 5.21must be provided as part of the required 5.22accomplishment plan.

5.23(j) Enhanced Public Grasslands

5.24$1,281,000 in the second year is to the 5.25commissioner of natural resources for 5.26an agreement with Pheasants Forever in 5.27cooperation with the Minnesota Prairie 5.28Chicken Society to restore and enhance 5.29habitat on public lands. The commissioner of 5.30natural resources, as part of the agreement, 5.31shall assist in the development of a plan, 5.32including identifying project locations, 5.33to ensure that projects funded under this 5.34paragraph have long-term results. The 5.35criteria for selection of projects must be 6.1included in the accomplishment plan and 6.2projects must be ranked based upon the 6.3expected increase in the number of prairie 6.4chickens and other targeted species per 6.5acre, with projects with the highest increase 6.6receiving the highest ranking. A list of 6.7proposed restorations and enhancements 6.8must be provided as part of the final report. 6.9Funds from this appropriation may not be 6.10used to acquire private land or otherwise 6.11remove property tax obligations on private 6.12land.

6.13Subd. 3.Forests-0- 10,300,000

6.146.15(a) Protecting Mississippi River Corridor Habitat ACUB Partnership - Phase II

6.16$480,000 in the second year is to the 6.17Board of Water and Soil Resources to 6.18acquire permanent conservation easements 6.19on land adjacent to the Nokasippi River 6.20and the boundaries of the Minnesota 6.21National Guard Army compatible use buffer 6.22(ACUB). A list of proposed land acquisitions 6.23must be provided as part of the required 6.24accomplishment plan. The accomplishment 6.25plan must include an easement stewardship 6.26plan. Up to $4,800 is for establishing 6.27a monitoring and enforcement fund as 6.28approved in the accomplishment plan and 6.29subject to Minnesota Statutes, section 6.3097A.056, subdivision 17. An annual financial 6.31report is required for any monitoring and 6.32enforcement fund established, including 6.33expenditures from the fund and a description 6.34of annual monitoring and enforcement 6.35activities.

7.17.2(b) Mississippi Northwoods Habitat Complex Protection

7.3$7,040,000 in the second year is to the 7.4commissioner of natural resources to 7.5acquire land in fee along the Mississippi 7.6River in Crow Wing County to be added 7.7to Crow Wing State Forest. Prior to the 7.8acquisition, an independent state appraisal 7.9must be conducted and the purchase price 7.10must not exceed the appraised fair market 7.11value determined by the appraisal. A land 7.12description must be provided as part of the 7.13required accomplishment plan. Development 7.14of a paved trail on land acquired under this 7.15paragraph constitutes an alteration of the 7.16intended use of the interest in real property 7.17and must be handled according to Minnesota 7.18Statutes, section 97A.056, subdivision 15. 7.19The commissioner of natural resources shall 7.20consult with the Lessard-Sams Outdoor 7.21Heritage Council when planning for any 7.22paved trail on land acquired with this 7.23appropriation, including any plans for trail 7.24alignment.

7.257.26(c) Northeastern Minnesota Sharp-Tailed Grouse Habitat Partnership - Phase III

7.27$1,340,000 in the second year is to the 7.28commissioner of natural resources for 7.29an agreement with Pheasants Forever in 7.30cooperation with the Minnesota Sharp-Tailed 7.31Grouse Society to acquire and enhance 7.32lands for wildlife management area purposes 7.33under Minnesota Statutes, section 86A.05, 7.34subdivision 8. A list of proposed land 7.35acquisitions must be provided as part of the 7.36required accomplishment plan.

8.18.2(d) Protect Key Forest Habitat Lands in Cass County - Phase III

8.3$480,000 in the second year is to the 8.4commissioner of natural resources for an 8.5agreement with Cass County to acquire land 8.6in fee in Cass County for forest wildlife 8.7habitat. A list of proposed land acquisitions 8.8must be provided as part of the required 8.9accomplishment plan.

8.10(e) Minnesota Moose Habitat Collaborative

8.11$960,000 in the second year is to the 8.12commissioner of natural resources for an 8.13agreement with the Minnesota Deer Hunters 8.14Association to restore and enhance public 8.15forest lands in northeastern Minnesota 8.16for moose habitat purposes. A list of 8.17proposed restorations and enhancements 8.18must be provided as part of the required 8.19accomplishment plan.

8.20Subd. 4.Wetlands-0-31,140,000

8.218.22(a) Reinvest in Minnesota Wetlands Reserve Program Partnership - Phase IV

8.23$13,810,000 in the second year is to the 8.24Board of Water and Soil Resources to 8.25acquire permanent conservation easements 8.26and restore wetlands and associated upland 8.27habitat in cooperation with the United 8.28States Department of Agriculture Wetlands 8.29Reserve Program. A list of land acquisitions 8.30must be provided as part of the final report. 8.31The accomplishment plan must include 8.32an easement stewardship plan. Up to 8.33$180,000 is for establishing a monitoring 8.34and enforcement fund as approved in 8.35the accomplishment plan and subject to 9.1Minnesota Statutes, section 97A.056, 9.2subdivision 17. An annual financial report is 9.3required for any monitoring and enforcement 9.4fund established, including expenditures 9.5from the fund and a description of annual 9.6monitoring and enforcement activities.

9.79.8(b) Accelerating the Waterfowl Production Area Program - Phase IV

9.9$5,400,000 in the second year is to the 9.10commissioner of natural resources for an 9.11agreement with Pheasants Forever to acquire 9.12land in fee to be managed and designated as 9.13waterfowl production areas in Minnesota, 9.14in cooperation with the United States Fish 9.15and Wildlife Service. A list of proposed land 9.16acquisitions must be provided as part of the 9.17required accomplishment plan.

9.18(c) Columbus Lake Conservation Area

9.19$940,000 in the second year is to the 9.20commissioner of natural resources for an 9.21agreement with Anoka County to acquire 9.22land in fee for conservation purposes that 9.23connect wetlands and shallow lakes to 9.24the Lamprey Pass Wildlife Management 9.25Area. A list of proposed land acquisitions 9.26must be provided as part of the required 9.27accomplishment plan.

9.289.29(d) Living Shallow Lakes and Wetlands Initiative - Phase II

9.30$4,490,000 in the second year is to the 9.31commissioner of natural resources for an 9.32agreement with Ducks Unlimited to assess, 9.33restore, and enhance shallow lakes and 9.34wetlands, including technical assistance, 9.35survey, design, and engineering to develop 10.1new enhancement and restoration projects 10.2for future implementation. A list of 10.3proposed restorations and enhancements 10.4must be provided as part of the required 10.5accomplishment plan.

10.610.7(e) Accelerated Shallow Lakes and Wetlands Enhancement - Phase IV

10.8$3,870,000 in the second year is to the 10.9commissioner of natural resources to 10.10develop engineering designs and complete 10.11construction to enhance shallow lakes and 10.12wetlands. A list of proposed restorations and 10.13enhancements must be provided as part of 10.14the required accomplishment plan. Work 10.15must be completed within three years of the 10.16effective date of this article.

10.17(f) Marsh Lake Enhancement

10.18$2,630,000 in the second year is to the 10.19commissioner of natural resources to 10.20complete design and construction to modify 10.21the dam at Marsh Lake and return the historic 10.22outlet of the Pomme de Terre River to Lac 10.23Qui Parle.

10.24Subd. 5.Habitats-0- 31,120,000

10.25(a) DNR Aquatic Habitat - Phase IV

10.26 $3,480,000 in the second year is to the 10.27commissioner of natural resources to 10.28acquire interests in land in fee or permanent 10.29conservation easements for aquatic 10.30management areas under Minnesota Statutes, 10.31sections 86A.05, subdivision 14, and 10.3297C.02, and to restore and enhance aquatic 10.33habitat. A list of proposed land acquisitions 10.34must be provided as part of the required 10.35accomplishment plan. The accomplishment 11.1plan must include an easement stewardship 11.2plan. Up to $25,000 is for establishing 11.3a monitoring and enforcement fund as 11.4approved in the accomplishment plan and 11.5subject to Minnesota Statutes, section 11.697A.056, subdivision 17. An annual financial 11.7report is required for any monitoring and 11.8enforcement fund established, including 11.9expenditures from the fund and a description 11.10of annual monitoring and enforcement 11.11activities.

11.12(b) Metro Big Rivers Habitat - Phase III

11.13$3,680,000 in the second year is to the 11.14commissioner of natural resources for 11.15agreements to acquire interests in land in 11.16fee or permanent conservation easements 11.17and to restore and enhance natural systems 11.18associated with the Mississippi, Minnesota, 11.19and St. Croix Rivers as follows: $1,000,000 11.20to the Minnesota Valley National Wildlife 11.21Refuge Trust, Inc.; $375,000 to the Friends 11.22of the Mississippi; $375,000 to Great River 11.23Greening; $930,000 to The Minnesota 11.24Land Trust; and $1,000,000 to The Trust 11.25for Public Land. A list of proposed 11.26acquisitions, restorations, and enhancements 11.27must be provided as part of the required 11.28accomplishment plan. The accomplishment 11.29plan must include an easement stewardship 11.30plan. Up to $51,000 is for establishing 11.31a monitoring and enforcement fund as 11.32approved in the accomplishment plan and 11.33subject to Minnesota Statutes, section 11.3497A.056, subdivision 17. An annual financial 11.35report is required for any monitoring and 11.36enforcement fund established, including 12.1expenditures from the fund and a description 12.2of annual monitoring and enforcement 12.3activities.

12.412.5(c) Dakota County Riparian and Lakeshore Protection and Management - Phase III

12.6$480,000 in the second year is to the 12.7commissioner of natural resources for an 12.8agreement with Dakota County to acquire 12.9permanent conservation easements and 12.10restore and enhance habitats along the 12.11Mississippi, Cannon, and Vermillion Rivers. 12.12A list of proposed acquisitions, restorations, 12.13and enhancements must be provided as 12.14part of the required accomplishment plan. 12.15The accomplishment plan must include 12.16an easement stewardship plan. Up to 12.17$20,000 is for establishing a monitoring 12.18and enforcement fund as approved in 12.19the accomplishment plan and subject to 12.20Minnesota Statutes, section 97A.056, 12.21subdivision 17. An annual financial report is 12.22required for any monitoring and enforcement 12.23fund established, including expenditures 12.24from the fund and a description of annual 12.25monitoring and enforcement activities.

12.26(d) Lower St. Louis River Habitat Restoration

12.27$3,670,000 in the second year is to the 12.28commissioner of natural resources to restore 12.29habitat in the lower St. Louis River estuary. 12.30A list of proposed projects must be provided 12.31as part of the required accomplishment plan.

12.3212.33(e) Coldwater Fish Habitat Enhancement - Phase IV

12.34$2,120,000 in the second year is to the 12.35commissioner of natural resources for an 13.1agreement with Minnesota Trout Unlimited 13.2to restore and enhance coldwater fish lake, 13.3river, and stream habitats in Minnesota. A list 13.4of proposed restorations and enhancements 13.5must be provided as part of the required 13.6accomplishment plan.

13.7(f) Grand Marais Creek Outlet Restoration

13.8$2,320,000 in the second year is to the 13.9commissioner of natural resources for an 13.10agreement with the Red Lake Watershed 13.11District to restore and enhance stream and 13.12related habitat in Grand Marais Creek. A list 13.13of proposed restorations and enhancements 13.14must be provided as part of the required 13.15accomplishment plan.

13.16(g) Knife River Habitat Restoration

13.17$380,000 in the second year is to the 13.18commissioner of natural resources for an 13.19agreement with the Lake Superior Steelhead 13.20Association to restore trout habitat in the 13.21Upper Knife River Watershed. A list of 13.22proposed restorations must be provided as 13.23part of the required accomplishment plan.

13.24(h) Protect Aquatic Habitat from Asian Carp

13.25$7,500,000 in the second year is to the 13.26commissioner of natural resources to design, 13.27construct, operate, and evaluate electric 13.28fish barriers and surrounding structures for 13.29Asian carp to protect Minnesota's aquatic 13.30habitat from Asian carp on the Mississippi 13.31River. This appropriation may not be used 13.32for the installation of sound projector arrays, 13.33bioacoustic fish fences, high intensity light 13.34barriers, or air bubble curtains. Use of this 14.1money requires a one-to-one match for 14.2projects on state boundary waters.

14.314.4(i) Protect Aquatic Habitat from Aquatic Invasive Species

14.5$2,200,000 in the second year is to the Board 14.6of Regents of the University of Minnesota 14.7for research on aquatic invasive species that 14.8threaten or have the potential to threaten 14.9the state's lakes, rivers, streams, wetlands, 14.10and other aquatic habitats for fish, game, 14.11and wildlife. This appropriation is added to 14.12the appropriation in article 2, section 4, for 14.13the purposes specified in that section and is 14.14available until June 30, 2018.

14.15(j) Aquatic Habitat Restoration Grants

14.16$300,000 in the second year is to the 14.17commissioner of natural resources for 14.18grants to local units of government and lake 14.19associations for aquatic habitat restoration.

14.2014.21(k) Outdoor Heritage Conservation Partners Grant Program - Phase IV

14.22$4,990,000 in the second year is to the 14.23commissioner of natural resources for a 14.24program to provide competitive, matching 14.25grants of up to $400,000 to local, regional, 14.26state, and national organizations for 14.27enhancing, restoring, or protecting forests, 14.28wetlands, prairies, and habitat for fish, game, 14.29or wildlife in Minnesota. Grants shall not 14.30be made for activities required to fulfill 14.31the duties of owners of lands subject to 14.32conservation easements. Grants shall not be 14.33made from appropriations in this paragraph 14.34for projects that have a total project cost 14.35exceeding $575,000. $366,000 of this 15.1appropriation may be spent for personnel 15.2costs and other direct and necessary 15.3administrative costs. Grantees may acquire 15.4land or interests in land. Easements must be 15.5permanent. Land acquired in fee must be 15.6open to hunting and fishing during the open 15.7season unless otherwise provided by state 15.8law. The program shall require a match of 15.9at least ten percent from nonstate sources 15.10for all grants. The match may be cash or 15.11in-kind resources. For grant applications 15.12of $25,000 or less, the commissioner shall 15.13provide a separate, simplified application 15.14process. Subject to Minnesota Statutes, the 15.15commissioner of natural resources shall, 15.16when evaluating projects of equal value, 15.17give priority to organizations that have a 15.18history of receiving or charter to receive 15.19private contributions for local conservation 15.20or habitat projects. If acquiring land or a 15.21conservation easement, priority shall be 15.22given to projects associated with existing 15.23wildlife management areas under Minnesota 15.24Statutes, section 86A.05, subdivision 8; 15.25scientific and natural areas under Minnesota 15.26Statutes, sections 84.033 and 86A.05, 15.27subdivision 5; and aquatic management areas 15.28under Minnesota Statutes, sections 86A.05, 15.29subdivision 14, and 97C.02. All restoration 15.30or enhancement projects must be on land 15.31permanently protected by a conservation 15.32easement or public ownership or in public 15.33waters as defined in Minnesota Statutes, 15.34section 103G.005, subdivision 15. Priority 15.35shall be given to restoration and enhancement 15.36projects on public lands. Minnesota Statutes, 16.1section 97A.056, subdivision 13, applies 16.2to grants awarded under this paragraph. 16.3This appropriation is available until June 16.430, 2016. No less than five percent of the 16.5amount of each grant must be held back from 16.6reimbursement until the grant recipient has 16.7completed a grant accomplishment report by 16.8the deadline and in the form prescribed by 16.9and satisfactory to the Lessard-Sams Outdoor 16.10Heritage Council. The commissioner shall 16.11provide notice of the grant program in 16.12the game and fish law summaries that are 16.13prepared under Minnesota Statutes, section 16.1497A.051, subdivision 2.

16.15Subd. 6.Administration-0-220,000

16.16(a) Contract Management

16.17$175,000 in the second year is to the 16.18commissioner of natural resources for 16.19contract management duties assigned in this 16.20section. The commissioner shall provide a 16.21work program in the form specified by the 16.22Lessard-Sams Outdoor Heritage Council 16.23on the expenditure of this appropriation. 16.24No money may be expended prior to 16.25Lessard-Sams Outdoor Heritage Council 16.26approval of the work program.

16.27(b) Technical Evaluation Panel

16.28$84,000 in the second year is to the 16.29commissioner of natural resources for a 16.30technical evaluation panel to conduct up to 16.31ten restoration evaluations under Minnesota 16.32Statutes, section 97A.056, subdivision 10.

16.33Subd. 7.Availability of Appropriation

17.1Money appropriated in this section may 17.2not be spent on activities unless they are 17.3directly related to and necessary for a 17.4specific appropriation and are specified in 17.5the accomplishment plan approved by the 17.6Lessard-Sams Outdoor Heritage Council. 17.7Money appropriated in this section must not 17.8be spent on indirect costs or other institutional 17.9overhead charges that are not directly related 17.10to and necessary for a specific appropriation. 17.11Unless otherwise provided, the amounts 17.12in this section are available until June 30, 17.132015, when projects must be completed and 17.14final accomplishments reported. Funds for 17.15restoration or enhancement are available 17.16until June 30, 2017, or four years after 17.17acquisition, whichever is later, in order to 17.18complete initial restoration or enhancement 17.19work. If a project receives federal funds, 17.20the time period of the appropriation is 17.21extended to equal the availability of federal 17.22funding. Funds appropriated for fee title 17.23acquisition of land may be used to restore, 17.24enhance, and provide for public use of the 17.25land acquired with the appropriation. Public 17.26use facilities must have a minimal impact 17.27on habitat in acquired lands. If the purchase 17.28price for a fee title acquisition funded with 17.29an appropriation in this article falls below 17.30the estimated purchase price contained in 17.31the approved accomplishment plan and no 17.32other acquisitions are listed in the approved 17.33accomplishment plan, the difference between 17.34the purchase price and the estimated purchase 17.35price is canceled and returned to the outdoor 17.36heritage fund.

18.118.2Subd. 8.Payment Conditions and Capital Equipment Expenditures

18.3All agreements referred to in this section must 18.4be administered on a reimbursement basis 18.5unless otherwise provided in this section. 18.6Notwithstanding Minnesota Statutes, section 18.716A.41, expenditures directly related to each 18.8appropriation's purpose made on or after July 18.91, 2012, or the date of accomplishment plan 18.10approval, whichever is later, are eligible for 18.11reimbursement unless otherwise provided in 18.12this section. Periodic reimbursement must 18.13be made upon receiving documentation that 18.14the items articulated in the accomplishment 18.15plan approved by the Lessard-Sams Outdoor 18.16Heritage Council have been achieved, 18.17including partial achievements as evidenced 18.18by progress reports approved by the 18.19Lessard-Sams Outdoor Heritage Council. 18.20Reasonable amounts may be advanced to 18.21projects to accommodate cash flow needs, 18.22support future management of acquired 18.23lands, or match a federal share. The 18.24advances must be approved as part of the 18.25accomplishment plan. Capital equipment 18.26expenditures for specific items in excess of 18.27$10,000 must be itemized in and approved as 18.28part of the accomplishment plan.18.29    Sec. 3. [84.972] PRAIRIE AND GRASSLANDS PUBLIC GRAZING PROGRAM.18.30The commissioner of natural resources shall establish a prairie and grasslands public 18.31grazing program. The commissioner shall enter into cooperative farming agreements 18.32or lease agreements with livestock owners to annually graze prairie and grasslands 18.33administered by the commissioner where grazing will enhance wildlife habitat, including 18.34management of invasive species. The commissioner shall establish a target of at least 18.3550,000 acres of prairie and grasslands to be enrolled in the prairie and grasslands public 19.1grazing program. The commissioner shall maintain a list of lands grazed under the 19.2program describing the location, acreage, and years grazed. The program shall have a goal 19.3of being financially self-sufficient. Unless otherwise provided by law, revenues received 19.4under this section shall be deposited in the game and fish fund and are appropriated to the 19.5commissioner for purposes of the program.19.6    Sec. 4. Minnesota Statutes 2010, section 97A.056, is amended by adding a subdivision 19.7to read:19.8    Subd. 12.Accomplishment plans.It is a condition of acceptance of money 19.9appropriated from the outdoor heritage fund that the agency or entity using the 19.10appropriation submits an accomplishment plan and periodic accomplishment reports 19.11to the Lessard-Sams Outdoor Heritage Council in the form determined by the council. 19.12The accomplishment plan must identify the project manager responsible for expending 19.13the appropriation and the final product. The accomplishment plan must account for 19.14the use of the appropriation and outcomes of the expenditure in measures of wetlands, 19.15prairies, forests, and fish, game, and wildlife habitat restored, protected, and enhanced. 19.16The plan must include an evaluation of results. If lands are acquired by fee with money 19.17from the outdoor heritage fund, the accomplishment plan must include a hunting and 19.18fishing management plan for the lands acquired by fee. No money appropriated from the 19.19outdoor heritage fund may be expended unless the council has approved the pertinent 19.20accomplishment plan.19.21    Sec. 5. Minnesota Statutes 2010, section 97A.056, is amended by adding a subdivision 19.22to read:19.23    Subd. 13.Project requirements.(a) As a condition of accepting money 19.24appropriated from the outdoor heritage fund, an agency or entity receiving money from 19.25an appropriation must comply with this subdivision for any project funded in whole or 19.26in part with funds from the appropriation.19.27(b) All conservation easements acquired with money appropriated from the outdoor 19.28heritage fund must:19.29(1) be permanent;19.30(2) specify the parties to the easement;19.31(3) specify all of the provisions of an agreement that are permanent;19.32(4) specify the habitat types and location being protected;19.33(5) where appropriate for conservation or water protection outcomes, require the 19.34grantor to employ practices retaining water on the eased land as long as practicable;20.1(6) specify the responsibilities of the parties for habitat enhancement and restoration 20.2and the associated costs of these activities;20.3(7) be sent to the office of the Lessard-Sams Outdoor Heritage Council;20.4(8) include a long-term stewardship plan and identify the sources and amount of 20.5funding for monitoring and enforcing the easement agreement; and20.6(9) identify the parties responsible for monitoring and enforcing the easement 20.7agreement.20.8(c) For all restorations, a recipient must prepare and retain an ecological restoration 20.9and management plan that, to the degree practicable, is consistent with current 20.10conservation science and ecological goals for the restoration site. Consideration should 20.11be given to soil, geology, topography, and other relevant factors that would provide the 20.12best chance for long-term success and durability of the restoration. The plan must include 20.13the proposed timetable for implementing the restoration, including, but not limited to, 20.14site preparation, establishment of diverse plant species, maintenance, and additional 20.15enhancement to establish the restoration; identify long-term maintenance and management 20.16needs of the restoration and how the maintenance, management, and enhancement will be 20.17financed; and use current conservation science to achieve the best restoration.20.18(d) For new lands acquired, a recipient must prepare a restoration and management 20.19plan in compliance with paragraph (c), including identification of sufficient funding for 20.20implementation.20.21(e) To ensure public accountability for the use of public funds, a recipient must 20.22provide to the Lessard-Sams Outdoor Heritage Council documentation of the process used 20.23to select parcels acquired in fee or as permanent conservation easements and must provide 20.24the council with documentation of all related transaction costs, including, but not limited 20.25to, appraisals, legal fees, recording fees, commissions, other similar costs, and donations. 20.26This information must be provided for all parties involved in the transaction. The recipient 20.27must also report to the Lessard-Sams Outdoor Heritage Council any difference between 20.28the acquisition amount paid to the seller and the state-certified or state-reviewed appraisal, 20.29if a state-certified or state-reviewed appraisal was conducted. Acquisition data such as 20.30appraisals may remain private during negotiations but must ultimately be made public 20.31according to chapter 13.20.32(f) Except as otherwise provided in the appropriation, all restoration and 20.33enhancement projects funded with money appropriated from the outdoor heritage fund 20.34must be on land permanently protected by a conservation easement or public ownership or 20.35in public waters as defined in section 103G.005, subdivision 15.21.1(g) To the extent an appropriation is used to acquire an interest in real property, 21.2a recipient of an appropriation from the outdoor heritage fund must provide to the 21.3Lessard-Sams Outdoor Heritage Council and the commissioner of management and 21.4budget an analysis of increased operation and maintenance costs likely to be incurred by 21.5public entities as a result of the acquisition and of how the costs are to be paid.21.6(h) A recipient of money appropriated from the outdoor heritage fund must give 21.7consideration to Conservation Corps Minnesota for possible use of the corps' services to 21.8contract for restoration and enhancement services.21.9(i) A recipient of money appropriated from the outdoor heritage fund must erect 21.10signage according to Laws 2009, chapter 172, article 5, section 10.21.11    Sec. 6. Minnesota Statutes 2010, section 97A.056, is amended by adding a subdivision 21.12to read:21.13    Subd. 14.Purchase of recycled and recyclable materials.A political subdivision, 21.14public or private corporation, or other entity that receives money appropriated from the 21.15outdoor heritage fund must use the money in compliance with sections 16B.121, regarding 21.16purchase of recycled, repairable, and durable materials, and 16B.122, regarding purchase 21.17and use of paper stock and printing.21.18    Sec. 7. Minnesota Statutes 2010, section 97A.056, is amended by adding a subdivision 21.19to read:21.20    Subd. 15.Land acquisition restrictions.(a) An interest in real property, including, 21.21but not limited to, an easement or fee title, that is acquired with money appropriated 21.22from the outdoor heritage fund must be used in perpetuity or for the specific term of an 21.23easement interest for the purpose for which the appropriation was made. The ownership 21.24of the interest in real property transfers to the state if: (1) the holder of the interest in 21.25real property fails to comply with the terms and conditions of the grant agreement or 21.26accomplishment plan; or (2) restrictions are placed on the land that preclude its use for the 21.27intended purpose as specified in the appropriation.21.28(b) A recipient of funding that acquires an interest in real property subject to this 21.29subdivision may not alter the intended use of the interest in real property or convey any 21.30interest in the real property acquired with the appropriation without the prior review and 21.31approval of the Lessard-Sams Outdoor Heritage Council or its successor. The council 21.32shall notify the chairs and ranking minority members of the legislative committees and 21.33divisions with jurisdiction over the outdoor heritage fund at least 15 business days before 21.34approval under this paragraph. The council shall establish procedures to review requests 22.1from recipients to alter the use of or convey an interest in real property. These procedures 22.2shall allow for the replacement of the interest in real property with another interest in real 22.3property meeting the following criteria:22.4(1) the interest must be at least equal in fair market value, as certified by the 22.5commissioner of natural resources, to the interest being replaced; and22.6(2) the interest must be in a reasonably equivalent location and have a reasonably 22.7equivalent useful conservation purpose compared to the interest being replaced, taking 22.8into consideration all effects from fragmentation of the whole habitat.22.9(c) A recipient of funding who acquires an interest in real property under paragraph 22.10(a) must separately record a notice of funding restrictions in the appropriate local 22.11government office where the conveyance of the interest in real property is filed. The 22.12notice of funding agreement must contain:22.13(1) a legal description of the interest in real property covered by the funding 22.14agreement;22.15(2) a reference to the underlying funding agreement;22.16(3) a reference to this section; and22.17(4) the following statement: "This interest in real property shall be administered in 22.18accordance with the terms, conditions, and purposes of the grant agreement controlling the 22.19acquisition of the property. The interest in real property, or any portion of the interest in 22.20real property, shall not be sold, transferred, pledged, or otherwise disposed of or further 22.21encumbered without obtaining the prior written approval of the Lessard-Sams Outdoor 22.22Heritage Council or its successor. The ownership of the interest in real property transfers to 22.23the state if: (1) the holder of the interest in real property fails to comply with the terms and 22.24conditions of the grant agreement or accomplishment plan; or (2) restrictions are placed 22.25on the land that preclude its use for the intended purpose as specified in the appropriation."22.26    Sec. 8. Minnesota Statutes 2010, section 97A.056, is amended by adding a subdivision 22.27to read:22.28    Subd. 16.Real property interest report.(a) By December 1 each year, a recipient 22.29of money appropriated from the outdoor heritage fund that is used for the acquisition of an 22.30interest in real property, including, but not limited to, an easement or fee title, must submit 22.31annual reports on the status of the real property to the Lessard-Sams Outdoor Heritage 22.32Council or its successor in a form determined by the council. If lands are acquired by fee 22.33with money from the outdoor heritage fund, the real property interest report must include 22.34a verification of the status of the hunting and fishing management plan for the lands 22.35acquired by fee. The responsibility for reporting under this subdivision may be transferred 23.1by the recipient of the appropriation to another person or entity that holds the interest in 23.2the real property. To complete the transfer of reporting responsibility, the recipient of 23.3the appropriation must:23.4(1) inform the person to whom the responsibility is transferred of that person's 23.5reporting responsibility;23.6(2) inform the person to whom the responsibility is transferred of the property 23.7restrictions under subdivision 15; and23.8(3) provide written notice to the council of the transfer of reporting responsibility, 23.9including contact information for the person to whom the responsibility is transferred.23.10(b) After the transfer, the person or entity that holds the interest in the real property 23.11is responsible for reporting requirements under this subdivision.23.12    Sec. 9. Minnesota Statutes 2010, section 97A.056, is amended by adding a subdivision 23.13to read:23.14    Subd. 17.Easement monitoring and enforcement requirements.Money 23.15appropriated from the outdoor heritage fund for easement monitoring and enforcement 23.16may be spent only on activities included in an easement monitoring and enforcement 23.17plan contained within the accomplishment plan. Money received for monitoring and 23.18enforcement, including earnings on the money received, shall be kept in a monitoring 23.19and enforcement fund held by the organization and is appropriated for monitoring and 23.20enforcing conservation easements in the state. Within 120 days after the close of the 23.21entity's fiscal year, an entity receiving appropriations for easement monitoring and 23.22enforcement must provide an annual financial report to the Lessard-Sams Outdoor 23.23Heritage Council on the easement monitoring and enforcement fund as specified in the 23.24accomplishment plan. Money appropriated from the outdoor heritage fund for monitoring 23.25and enforcement of easements and earnings on the money appropriated shall revert 23.26to the state if:23.27(1) the easement transfers to the state under subdivision 15;23.28(2) the holder of the easement fails to file an annual report and then fails to cure that 23.29default within 30 days of notification of the default by the state; or23.30(3) the holder of the easement fails to comply with the terms of the monitoring and 23.31enforcement plan contained within the accomplishment plan and fails to cure that default 23.32within 90 days of notification of the default by the state.23.33    Sec. 10. Minnesota Statutes 2010, section 97A.056, is amended by adding a 23.34subdivision to read:24.1    Subd. 18.Successor organizations.The Lessard-Sams Outdoor Heritage Council 24.2may approve the continuation of a project with an organization that has adopted a new 24.3name. Continuation of a project with an organization that has undergone a significant 24.4change in mission, structure, or purpose requires:24.5(1) notice to the chairs of the legislative committees and divisions with jurisdiction 24.6over the outdoor heritage fund; and24.7(2) presentation by the council of proposed legislation either ratifying or rejecting 24.8continued involvement with the new organization.24.9    Sec. 11. Minnesota Statutes 2010, section 97A.056, is amended by adding a 24.10subdivision to read:24.11    Subd. 19.Fee title acquisitions; open to taking fish and game.(a) Lands acquired 24.12by fee with money appropriated from the outdoor heritage fund that are held by the 24.13state must be open to the public taking of fish and game during the open season, unless 24.14otherwise provided by state law.24.15(b) Lands acquired by fee with money appropriated from the outdoor heritage fund 24.16that are held by the United States Fish and Wildlife Service must be open to the public 24.17taking of fish and game during the open season according to the National Wildlife Refuge 24.18System Improvement Act, United States Code, title 16, section 668dd, et seq.24.19(c) Except as provided in paragraph (b), lands acquired by fee with money 24.20appropriated from the outdoor heritage fund that are held by a nonstate entity must be open 24.21to the public taking of fish and game during the open season, unless otherwise prescribed 24.22by the commissioner of natural resources.24.23EFFECTIVE DATE.This section is effective retroactively to July 1, 2009.24.24    Sec. 12. Minnesota Statutes 2010, section 97A.056, is amended by adding a 24.25subdivision to read:24.26    Subd. 20.Pasture land. (a) For the purposes of this subdivision, "pasture" means 24.27any prairie or grassland that had been actively grazed anytime during the ten-year period 24.28prior to acquisition and that is acquired in fee for wildlife management area purposes 24.29under section 86A.05, subdivision 8.24.30(b) A recipient of money appropriated from the outdoor heritage fund that is used 24.31to acquire, in fee, more than 20 acres of pasture, as defined in paragraph (a), or other 24.32existing or restored prairie or grassland where grazing will be used as a wildlife habitat 24.33management tool shall:25.1(1) maintain any existing fencing on the land consistent with a grazing management 25.2program;25.3(2) install new perimeter fencing using funds from the outdoor heritage fund 25.4appropriation, unless perimeter fencing capable of containing livestock for grazing is 25.5already present; and25.6(3) enter into an agreement or agreements with a livestock owner or owners to 25.7provide sufficient grazing of the pasture to enhance wildlife habitat, including management 25.8of invasive species.25.9(c) The commissioner must annually report the location, acreage, and years grazed 25.10for land subject to this subdivision.25.11    Sec. 13. Laws 2011, First Special Session chapter 6, article 1, section 2, subdivision 9, 25.12is amended to read:

25.13Subd. 9.Project Requirements

25.14(a) As a condition of accepting an 25.15appropriation made under this section, an 25.16agency or entity receiving an appropriation 25.17must comply with this subdivision for any 25.18project funded in whole or in part with funds 25.19from the appropriation.25.20(b) All conservation easements acquired with 25.21money appropriated under this section must: 25.22(1) be permanent; (2) specify the parties to 25.23the easement; (3) specify all of the provisions 25.24of an agreement that are permanent; (4) 25.25specify the habitat types and location 25.26being protected; (5) where appropriate for 25.27conservation or water protection outcomes, 25.28require the grantor to employ practices 25.29retaining water on the eased land as long as 25.30practicable; (6) specify the responsibilities 25.31of the parties for habitat enhancement and 25.32restoration and the associated costs of these 25.33activities; (7) be sent to the office of the 25.34Lessard-Sams Outdoor Heritage Council; (8) 26.1include a long-term stewardship plan and 26.2identify the sources and amount of funding 26.3for monitoring and enforcing the easement 26.4agreement; and (9) identify the parties 26.5responsible for monitoring and enforcing the 26.6easement agreement.26.7(c) For all restorations, a recipient must 26.8prepare and retain an ecological restoration 26.9and management plan that, to the degree 26.10practicable, is consistent with current 26.11conservation science and ecological goals 26.12for the restoration site. Consideration should 26.13be given to soil, geology, topography, and 26.14other relevant factors that would provide 26.15the best chance for long-term success and 26.16durability of the restoration projects. The 26.17plan must include the proposed timetable for 26.18implementing the restoration, including, but 26.19not limited to, site preparation, establishment 26.20of diverse plant species, maintenance, and 26.21additional enhancement to establish the 26.22restoration; identify long-term maintenance 26.23and management needs of the restoration 26.24and how the maintenance, management, 26.25and enhancement will be financed; and use 26.26current conservation science to achieve the 26.27best restoration.26.28(d) For new lands acquired, a recipient 26.29must prepare a restoration and management 26.30plan in compliance with paragraph (c), 26.31including identification of sufficient funding 26.32for implementation.26.33(e) To ensure public accountability for the 26.34use of public funds, a recipient must provide 26.35to the Lessard-Sams Outdoor Heritage 27.1Council documentation of the process 27.2used to select parcels acquired in fee or as 27.3permanent conservation easements and must 27.4provide the council with documentation 27.5of all related transaction costs, including, 27.6but not limited to, appraisals, legal fees, 27.7recording fees, commissions, other similar 27.8costs, and donations. This information 27.9must be provided for all parties involved 27.10in the transaction. The recipient must 27.11also report to the Lessard-Sams Outdoor 27.12Heritage Council any difference between the 27.13acquisition amount paid to the seller and the 27.14state-certified or state-reviewed appraisal, if 27.15a state-certified or state-reviewed appraisal 27.16was conducted. Acquisition data such 27.17as appraisals may remain private during 27.18negotiations but must ultimately be made 27.19public according to Minnesota Statutes, 27.20chapter 13.27.21(f) Except as otherwise provided in this 27.22section, all restoration and enhancement 27.23projects funded with money appropriated 27.24under this section must be on land 27.25permanently protected by a conservation 27.26easement or public ownership or in public 27.27waters as defined in Minnesota Statutes, 27.28section 
         103G.005, subdivision 15.27.29(g) To the extent an appropriation is used to 27.30acquire an interest in real property, a recipient 27.31of an appropriation under this section must 27.32provide to the Lessard-Sams Outdoor 27.33Heritage Council and the commissioner 27.34of management and budget an analysis of 27.35increased operations and maintenance costs 27.36likely to be incurred by public entities as 28.1a result of the acquisition and of how these 28.2costs are to be paid.28.3(h) A recipient of money from an 28.4appropriation under this section must give 28.5consideration to and make timely written 28.6contact with Conservation Corps Minnesota 28.7for possible use of the corps' services to 28.8contract for restoration and enhancement 28.9services. A copy of the written contact 28.10must be filed with the Lessard-Sams 28.11Outdoor Heritage Council within 15 days of 28.12execution.28.13(i) A recipient of money under this section 28.14must erect signage according to Laws 2009, 28.15chapter 172, article 5, section 10.28.16    Sec. 14. LEGACY FUNDING REQUIREMENTS APPLY.28.17Each direct recipient of money appropriated in this article, as well as each 28.18recipient of a grant awarded pursuant to this article, must satisfy all reporting and other 28.19requirements incumbent upon legacy funding recipients as provided in Laws 2011, First 28.20Special Session chapter 6, article 5.28.21ARTICLE 228.22CLEAN WATER FUND28.23    Section 1. Minnesota Statutes 2011 Supplement, section 114D.30, subdivision 4, is 28.24amended to read:28.25    Subd. 4. Terms; compensation; removal.  The terms of members representing the 28.26state agencies and the Metropolitan Council are four years and are coterminous with the 28.27governor. The terms of other nonlegislative members of the council shall be as provided 28.28in section 
         15.059, subdivision 2. Members may serve until their successors are appointed 28.29and qualify. Compensation and removal of nonlegislative council members is as provided 28.30in section 
         15.059, subdivisions 3 and 4. Compensation of legislative members is as 28.31determined by the appointing authority. The Pollution Control Agency may reimburse 28.32legislative members for expenses. A vacancy on the council may be filled by the 28.33appointing authority provided in subdivision 1 for the remainder of the unexpired term.29.1    Sec. 2. Laws 2009, chapter 172, article 2, section 4, as amended by Laws 2010, chapter 29.2361, article 2, section 2, and Laws 2011, First Special Session chapter 6, article 2, section 29.323, is amended to read:

29.4Sec. 4. POLLUTION CONTROL AGENCY$24,076,000$27,630,000

29.5(a) $9,000,000 the first year and $9,000,000 29.6the second year are to develop total 29.7maximum daily load (TMDL) studies and 29.8TMDL implementation plans for waters 29.9listed on the United States Environmental 29.10Protection Agency approved impaired 29.11waters list in accordance with Minnesota 29.12Statutes, chapter 114D. The agency shall 29.13complete an average of ten percent of the 29.14TMDLs each year over the biennium. Of 29.15this amount, $348,000 the first year is to 29.16retest the comprehensive assessment of the 29.17biological conditions of the lower Minnesota 29.18River and its tributaries within the Lower 29.19Minnesota River Major Watershed, as 29.20previously assessed from 1976 to 1992 under 29.21the Minnesota River Assessment Project 29.22(MRAP). The assessment must include the 29.23same fish species sampling at the same 116 29.24locations and the same macroinvertebrate 29.25sampling at the same 41 locations as the 29.26MRAP assessment. The assessment must:29.27(1) include an analysis of the findings; and29.28(2) identify factors that limit aquatic life in 29.29the Minnesota River.29.30Of this amount, $250,000 the first year is 29.31for a pilot project for the development of 29.32total maximum daily load (TMDL) studies 29.33conducted on a watershed basis within 29.34the Buffalo River watershed in order to 29.35protect, enhance, and restore water quality 30.1in lakes, rivers, and streams. The pilot 30.2project shall include all necessary field 30.3work to develop TMDL studies for all 30.4impaired subwatersheds within the Buffalo 30.5River watershed and provide information 30.6necessary to complete reports for most of the 30.7remaining watersheds, including analysis of 30.8water quality data, identification of sources 30.9of water quality degradation and stressors, 30.10load allocation development, development 30.11of reports that provide protection plans 30.12for subwatersheds that meet water quality 30.13standards, and development of reports that 30.14provide information necessary to complete 30.15TMDL studies for subwatersheds that do not 30.16meet water quality standards, but are not 30.17listed as impaired.30.18(b) $500,000 the first year is for development 30.19of an enhanced TMDL database to manage 30.20and track progress. Of this amount, $63,000 30.21the first year is to promulgate rules. By 30.22November 1, 2010, the commissioner shall 30.23submit a report to the chairs of the house of 30.24representatives and senate committees with 30.25jurisdiction over environment and natural 30.26resources finance on the outcomes achieved 30.27with this appropriation.30.28(c) $1,500,000 the first year and $3,169,000 30.29the second year are for grants under 30.30Minnesota Statutes, section 
         116.195, to 30.31political subdivisions for up to 50 percent of 30.32the costs to predesign, design, and implement 30.33capital projects that use storm water or 30.34treated municipal wastewater instead of 30.35groundwater from drinking water aquifers, 30.36in order to demonstrate the beneficial use 31.1of wastewater or storm water, including 31.2the conservation and protection of water 31.3resources. Of this amount, $1,000,000 the 31.4first year is for grants to ethanol plants that 31.5are within one and one-half miles of a city for 31.6improvements that use storm water or reuse 31.7greater than 300,000 gallons of wastewater 31.8per day. This appropriation is available until 31.9June 30, 2016.31.10(d) $1,125,000 the first year and $1,125,000 31.11the second year are for groundwater 31.12assessment and drinking water protection to 31.13include:31.14(1) the installation and sampling of at least 31.1530 new monitoring wells;31.16(2) the analysis of samples from at least 40 31.17shallow monitoring wells each year for the 31.18presence of endocrine disrupting compounds; 31.19and31.20(3) the completion of at least four to 31.21five groundwater models for TMDL and 31.22watershed plans.31.23(e) $2,500,000 the first year is for the clean 31.24water partnership program. Priority shall be 31.25given to projects preventing impairments and 31.26degradation of lakes, rivers, streams, and 31.27groundwater in accordance with Minnesota 31.28Statutes, section 
         114D.20, subdivision 2, 31.29clause (4). Any balance remaining in the first 31.30year does not cancel and is available for the 31.31second year.31.32(f) $896,000 the first year is to establish 31.33a network of water monitoring sites, to 31.34include at least 20 additional sites, in public 31.35waters adjacent to wastewater treatment 32.1facilities across the state to assess levels of 32.2endocrine-disrupting compounds, antibiotic 32.3compounds, and pharmaceuticals as required 32.4in this article. The data must be placed on 32.5the agency's Web site.32.6(g) $155,000 the first year is to provide 32.7notification of the potential for coal tar 32.8contamination, establish a storm water 32.9pond inventory schedule, and develop best 32.10management practices for treating and 32.11cleaning up contaminated sediments as 32.12required in this article. $490,000 the second 32.13year is to provide grants to local units of 32.14government for up to 50 percent of the costs 32.15to implement best management practices to 32.16treat or clean up contaminated sediments 32.17in storm water ponds and other waters as 32.18defined under this article. Local governments 32.19must have adopted an ordinance for the 32.20restricted use of undiluted coal tar sealants 32.21in order to be eligible for a grant, unless a 32.22statewide restriction has been implemented. 32.23A grant awarded under this paragraph must 32.24not exceed $100,000. Up to $145,000 of the 32.25appropriation in the second year may be used 32.26to complete work required under section 28, 32.27paragraph (c).32.28(h) $350,000 the first year and $600,000 the 32.29second year are for a restoration project in 32.30the lower St. Louis River and Duluth harbor 32.31in order to improve water quality. This 32.32appropriation must be matched by nonstate 32.33money at a rate of at least $2 for every $1 of 32.34state money.33.1(i) $150,000 the first year and $196,000 the 33.2second year are for grants to the Red River 33.3Watershed Management Board to enhance 33.4and expand existing river watch activities in 33.5the Red River of the North. The Red River 33.6Watershed Management Board shall provide 33.7a report that includes formal evaluation 33.8results from the river watch program to the 33.9commissioners of education and the Pollution 33.10Control Agency and to the legislative natural 33.11resources finance and policy committees 33.12and K-12 finance and policy committees by 33.13February 15, 2011.33.14(j) $200,000 the first year and $300,000 the 33.15second year are for coordination with the 33.16state of Wisconsin and the National Park 33.17Service on comprehensive water monitoring 33.18and phosphorus reduction activities in the 33.19Lake St. Croix portion of the St. Croix 33.20River. The Pollution Control Agency 33.21shall work with the St. Croix Basin Water 33.22Resources Planning Team and the St. Croix 33.23River Association in implementing the 33.24water monitoring and phosphorus reduction 33.25activities. This appropriation is available 33.26to the extent matched by nonstate sources. 33.27Money not matched by November 15, 2010, 33.28cancels for this purpose and is available for 33.29the purposes of paragraph (a).33.30(k) $7,500,000 the first year and $7,500,000 33.31the second year are for completion of 20 33.32percent of the needed statewide assessments 33.33of surface water quality and trends. Of this 33.34amount, $175,000 the first year and $200,000 33.35the second year are for monitoring and 34.1analyzing endocrine disruptors in surface 34.2waters.34.3(l) $100,000 the first year and $150,000 34.4the second year are for civic engagement 34.5in TMDL development. The agency shall 34.6develop a plan for expenditures under 34.7this paragraph. The agency shall give 34.8consideration to civic engagement proposals 34.9from basin or sub-basin organizations, 34.10including the Mississippi Headwaters Board, 34.11the Minnesota River Joint Powers Board, 34.12Area II Minnesota River Basin Projects, 34.13and the Red River Basin Commission. 34.14By November 15, 2009, the plan shall be 34.15submitted to the house and senate chairs 34.16and ranking minority members of the 34.17environmental finance divisions.34.18(m) $5,000,000 the second year is for 34.19groundwater protection or prevention of 34.20groundwater degradation activities. By 34.21January 15, 2010, the commissioner, in 34.22consultation with the commissioner of 34.23natural resources, the Board of Water and 34.24Soil Resources, and other agencies, shall 34.25submit a report to the chairs of the house of 34.26representatives and senate committees with 34.27jurisdiction over the clean water fund on the 34.28intended use of these funds. The legislature 34.29must approve expenditure of these funds by 34.30law.34.31Notwithstanding Minnesota Statutes, section 34.3216A.28
         , the appropriations encumbered on or 34.33before June 30, 2011, as grants or contracts in 34.34this section are available until June 30, 2013.35.1    Sec. 3. Laws 2011, First Special Session chapter 6, article 2, section 7, is amended to 35.2read:

35.335.4Sec. 7. BOARD OF WATER AND SOIL RESOURCES$27,534,000$27,534,000 31,734,000

35.5(a) $13,750,000 the first year and 35.6$13,750,000 $15,350,000 the second year are 35.7for pollution reduction and restoration grants 35.8to local government units and joint powers 35.9organizations of local government units to 35.10protect surface water and drinking water; to 35.11keep water on the land; to protect, enhance, 35.12and restore water quality in lakes, rivers, 35.13and streams; and to protect groundwater 35.14and drinking water, including feedlot water 35.15quality and subsurface sewage treatment 35.16system (SSTS) projects and stream bank, 35.17stream channel, and shoreline restoration 35.18projects. The projects must be of long-lasting 35.19public benefit, include a match, and be 35.20consistent with TMDL implementation plans 35.21or local water management plans.35.22(b) $3,000,000 the first year and $3,000,00035.23$3,600,000 the second year are for targeted 35.24local resource protection and enhancement 35.25grants. The board shall give priority 35.26consideration to projects and practices 35.27that complement, supplement, or exceed 35.28current state standards for protection, 35.29enhancement, and restoration of water 35.30quality in lakes, rivers, and streams or that 35.31protect groundwater from degradation. Of 35.32this amount, at least $1,500,000 each year is 35.33for county SSTS implementation.35.34(c) $900,000 the first year and $900,00035.35$1,200,000 the second year are to 35.36provide state oversight and accountability, 36.1evaluate results, and develop an electronic 36.2system to measure and track the value of 36.3conservation program implementation by 36.4local governments, including submission 36.5to the legislature by March 1 each year 36.6an annual report prepared by the board, 36.7in consultation with the commissioners of 36.8natural resources, health, agriculture, and 36.9the Pollution Control Agency, detailing the 36.10recipients and projects funded under this 36.11section. The board shall require grantees to 36.12specify the outcomes that will be achieved 36.13by the grants prior to any grant awards.36.14(d) $1,000,000 the first year and $1,000,00036.15$1,700,000 the second year are for technical 36.16assistance and grants for the conservation 36.17drainage program in consultation with 36.18the Drainage Work Group, created under 36.19Minnesota Statutes, section 
         103B.101, 36.20subdivision 13
         , that consists of projects to 36.21to facilitate the installation of conservation 36.22practices on drainage systems that will result 36.23in water quality improvements and evaluate 36.24the outcomes of these installations.retrofit 36.25existing drainage systems with water quality 36.26improvement practices, evaluate outcomes, 36.27and provide outreach to landowners, public 36.28drainage authorities, drainage engineers 36.29and contractors, and others. The board 36.30shall coordinate practice standards with the 36.31Natural Resources Conservation Service of 36.32the United States Department of Agriculture 36.33and seek to leverage federal funds as 36.34part of conservation drainage program 36.35implementation.37.1(e) $6,000,000 the first year and $6,000,000 37.2the second year are to purchase and restore 37.3permanent conservation easements on 37.4riparian buffers adjacent to public waters, 37.5excluding wetlands, to keep water on the 37.6land in order to decrease sediment, pollutant, 37.7and nutrient transport; reduce hydrologic 37.8impacts to surface waters; and increase 37.9infiltration for groundwater recharge. The 37.10riparian buffers must be at least 50 feet 37.11unless there is a natural impediment, a road, 37.12or other impediment beyond the control 37.13of the landowner. This appropriation may 37.14be used for restoration of riparian buffers 37.15protected by easements purchased with 37.16this appropriation and for stream bank 37.17restorations when the riparian buffers have 37.18been restored.37.19(f) $1,300,000 the first year and $1,300,00037.20$2,300,000 the second year are for 37.21permanent conservation easements on 37.22wellhead protection areas under Minnesota 37.23Statutes, section 
         103F.515, subdivision 2, 37.24paragraph (d). Priority must be placed on 37.25land that is located where the vulnerability 37.26of the drinking water supply is designated 37.27as high or very high by the commissioner 37.28of health. The board shall coordinate 37.29with the United States Geological Survey, 37.30the commissioners of health and natural 37.31resources, and local communities contained 37.32in the Decorah and St. Lawrence Edge areas 37.33of Winona, Goodhue, Olmsted, and Wabasha 37.34Counties to obtain easements in identified 37.35areas as having the most vulnerability to 37.36groundwater contamination.38.1(g) $1,500,000 the first year and $1,500,000 38.2the second year are for community partners 38.3grants to local units of government for: 38.4(1) structural or vegetative management 38.5practices that reduce storm water runoff 38.6from developed or disturbed lands to reduce 38.7the movement of sediment, nutrients, and 38.8pollutants for restoration, protection, or 38.9enhancement of water quality in lakes, rivers, 38.10and streams and to protect groundwater 38.11and drinking water; and (2) installation 38.12of proven and effective water retention 38.13practices including, but not limited to, rain 38.14gardens and other vegetated infiltration 38.15basins and sediment control basins in order 38.16to keep water on the land. The projects 38.17must be of long-lasting public benefit, 38.18include a local match, and be consistent with 38.19TMDL implementation plans or local water 38.20management plans. Local government unit 38.21staff and administration costs may be used 38.22as a match.38.23(h) $84,000 the first year and $84,000 the 38.24second year are for a technical evaluation 38.25panel to conduct up to ten restoration 38.26evaluations under Minnesota Statutes, 38.27section 
         114D.50, subdivision 6.38.28(i) The board shall contract for services 38.29with Conservation Corps Minnesota for 38.30restoration, maintenance, and other activities 38.31under this section for $500,000 the first year 38.32and $500,000 the second year.38.33(j) The board may shift grant or cost-share 38.34funds in this section and may adjust the 38.35technical and administrative assistance 39.1portion of the funds to leverage federal or 39.2other nonstate funds or to address oversight 39.3responsibilities or high-priority needs 39.4identified in local water management plans.39.5(k) The appropriations in this section are 39.6available until June 30, 2016.39.7    Sec. 4. AQUATIC INVASIVE SPECIES; APPROPRIATION.39.8(a) $2,200,000 in fiscal year 2013 is appropriated from the clean water fund to 39.9the Board of Regents of the University of Minnesota for research, in consultation with 39.10other institutions of higher learning in Minnesota, on aquatic invasive species that 39.11threaten or have the potential to threaten the water quality of the state's lakes, rivers, and 39.12streams. With the approval of the Board of Regents of the University of Minnesota, 39.13the appropriation shall fund the following within the College of Food, Agricultural and 39.14Natural Resource Sciences' Department of Fisheries, Wildlife and Conservation Biology:39.15(1) three research assistant professors with three different focus areas, to include 39.16environmental DNA, zebra mussels, and fish ecology;39.17(2) one fish care technician;39.18(3) five graduate students within the Department of Fisheries, Wildlife and 39.19Conservation Biology; and39.20(4) up to $1,050,000 in equipment necessary for the research activities under this 39.21paragraph.39.22(b) This is a onetime appropriation and is available until June 30, 2018.39.23    Sec. 5. LEGACY FUNDING REQUIREMENTS APPLY.39.24All appropriations in this article are onetime and are subject to the requirements 39.25and availability provisions provided under Laws 2011, First Special Session chapter 6, 39.26articles 2 and 5. Each direct recipient of money appropriated in this article, as well as each 39.27recipient of a grant awarded pursuant to this article, must satisfy all reporting and other 39.28requirements incumbent upon legacy funding recipients as provided in Laws 2011, First 39.29Special Session chapter 6, articles 2 and 5.39.30ARTICLE 339.31PARKS AND TRAILS FUND39.32    Section 1. Laws 2009, chapter 172, article 3, section 3, is amended to read:

40.1Sec. 3. METROPOLITAN COUNCIL$12,641,000$15,140,000

40.2(a) $12,641,000 the first year and 40.3$15,140,000 the second year are from the 40.4parks and trails fund to be distributed as 40.5required under new Minnesota Statutes, 40.6section 
         85.535, subdivision 3, except that 40.7of this amount, $40,000 the first year is for 40.8a grant to Hennepin County to plant trees 40.9along the Victory Memorial Parkway. For 40.10acquisition of an interest in real property, 40.11appropriations under this section are 40.12available until June 30, 2013.40.13(b) The Metropolitan Council shall submit 40.14a report on the expenditure and use of 40.15money appropriated under this section to 40.16the legislature as provided in Minnesota 40.17Statutes, section 
         3.195, by March 1 of each 40.18year. The report must detail the outcomes in 40.19terms of additional use of parks and trails 40.20resources, user satisfaction surveys, and 40.21other appropriate outcomes.40.22(c) Grant agreements entered into by the 40.23Metropolitan Council and recipients of 40.24money appropriated under this section shall 40.25ensure that the funds are used to supplement 40.26and not substitute for traditional sources of 40.27funding.40.28(d) The implementing agencies receiving 40.29appropriations under this section shall 40.30give consideration to contracting with the 40.31Minnesota Conservation Corps for contract 40.32restoration, maintenance, and other activities.40.33EFFECTIVE DATE.This section is effective the day following final enactment.41.1ARTICLE 441.2ARTS AND CULTURAL HERITAGE FUND41.3    Section 1. Minnesota Statutes 2010, section 16B.98, subdivision 5, is amended to read:41.4    Subd. 5. Creation and validity of grant agreements. (a) A grant agreement is 41.5not valid and the state is not bound by the grant unless:41.6    (1) the grant has been executed by the head of the agency or a delegate who is 41.7party to the grant; and41.8    (2) the accounting system shows an encumbrance for the amount of the grant in 41.9accordance with policy approved by the commissioner.; and41.10(3) the grant agreement includes an effective date that references either section 41.1116C.05, subdivision 2, or 16B.98, subdivisions 5 and 7, as determined by the granting 41.12agency.41.13    (b) The combined grant agreement and amendments must not exceed five years 41.14without specific, written approval by the commissioner according to established policy, 41.15procedures, and standards, or unless the commissioner determines that a longer duration is 41.16in the best interest of the state.41.17    (c) A fully executed copy of the grant agreement with all amendments and other 41.18required records relating to the grant must be kept on file at the granting agency for a time 41.19equal to that required of grantees in subdivision 8.41.20    (d) Grant agreements must comply with policies established by the commissioner 41.21for minimum grant agreement standards and practices.41.22    (e) The attorney general may periodically review and evaluate a sample of state 41.23agency grants to ensure compliance with applicable laws.41.24    Sec. 2. Minnesota Statutes 2010, section 16B.98, subdivision 7, is amended to read:41.25    Subd. 7. Grant payments. Payments to the grantee may not be issued until the 41.26grant agreement is fully executed. Encumbrances for grants issued by June 30 may be 41.27certified for a period of one year beyond the year in which the funds were originally 41.28appropriated as provided by section 16A.28, subdivision 6.41.29    Sec. 3. Minnesota Statutes 2010, section 116U.26, is amended to read:41.30116U.26 FILM PRODUCTION JOBS PROGRAM.41.31    (a) The film production jobs program is created. The program shall be operated 41.32by the Minnesota Film and TV Board with administrative oversight and control by the 41.33director of Explore Minnesota Tourism commissioner of administration. The program 42.1shall make payment to producers of feature films, national television or Internet programs, 42.2documentaries, music videos, and commercials that directly create new film jobs in 42.3Minnesota. To be eligible for a payment, a producer must submit documentation to the 42.4Minnesota Film and TV Board of expenditures for production costs incurred in Minnesota 42.5that are directly attributable to the production in Minnesota of a film product.42.6    The Minnesota Film and TV Board shall make recommendations to the director of 42.7Explore Minnesota Tourism commissioner of administration about program payment, but 42.8the director commissioner has the authority to make the final determination on payments. 42.9The director's commissioner's determination must be based on proper documentation of 42.10eligible production costs submitted for payments. No more than five percent of the funds 42.11appropriated for the program in any year may be expended for administration.42.12    (b) For the purposes of this section:42.13    (1) "production costs" means the cost of the following:42.14    (i) a story and scenario to be used for a film;42.15    (ii) salaries of talent, management, and labor, including payments to personal 42.16services corporations for the services of a performing artist;42.17    (iii) set construction and operations, wardrobe, accessories, and related services;42.18    (iv) photography, sound synchronization, lighting, and related services;42.19    (v) editing and related services;42.20    (vi) rental of facilities and equipment; or42.21    (vii) other direct costs of producing the film in accordance with generally accepted 42.22entertainment industry practice; and42.23    (2) "film" means a feature film, television or Internet show, documentary, music 42.24video, or television commercial, whether on film, video, or digital media. Film does not 42.25include news, current events, public programming, or a program that includes weather 42.26or market reports; a talk show; a production with respect to a questionnaire or contest; a 42.27sports event or sports activity; a gala presentation or awards show; a finished production 42.28that solicits funds; or a production for which the production company is required under 42.29United States Code, title 18, section 2257, to maintain records with respect to a performer 42.30portrayed in a single-media or multimedia program.42.31    (c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board 42.32may make reimbursements of: (1) up to 20 percent of film production costs for films that 42.33locate production outside the metropolitan area, as defined in section 
         473.121, subdivision 42.342, or that incur production costs in excess of $5,000,000 in the metropolitan area within 42.35a 12-month period; or (2) up to 15 percent of film production costs for films that incur 42.36production costs of $5,000,000 or less in the metropolitan area within a 12-month period.43.1    Sec. 4. Laws 2011, First Special Session chapter 6, article 4, section 2, subdivision 5, 43.2is amended to read:

43.343.4Subd. 5.Minnesota Historical Society12,050,00012,050,00012,950,000

43.5These amounts are appropriated to the 43.6governing board of the Minnesota Historical 43.7Society to preserve and enhance access to 43.8Minnesota's history and its cultural and 43.9historical resources. Grant agreements 43.10entered into by the Minnesota Historical 43.11Society and other recipients of appropriations 43.12in this subdivision shall ensure that 43.13these funds are used to supplement and 43.14not substitute for traditional sources of 43.15funding. Funds directly appropriated to the 43.16Minnesota Historical Society shall be used to 43.17supplement, and not substitute for, traditional 43.18sources of funding. Notwithstanding 43.19Minnesota Statutes, section 
         16A.28, for 43.20historic preservation projects that improve 43.21historic structures, the amounts are available 43.22until June 30, 2015.43.23Statewide Historic and Cultural Grants. 43.24$5,250,000 the first year and $5,250,00043.25$5,450,000 the second year are for history 43.26programs and projects operated or conducted 43.27by or through local, county, regional, or 43.28other historical or cultural organizations; or 43.29for activities to preserve significant historic 43.30and cultural resources. Funds are to be 43.31distributed through a competitive grants 43.32process. The Minnesota Historical Society 43.33shall administer these funds using established 43.34grants mechanisms, with assistance from 43.35the advisory committee created under Laws 44.12009, chapter 172, article 4, section 2, 44.2subdivision 4, paragraph (b), item (ii).44.3Programs. $4,800,000 the first year and 44.4$4,800,000 $5,200,000 the second year are 44.5for programs and purposes related to the 44.6historical and cultural heritage of the state 44.7of Minnesota, conducted by the Minnesota 44.8Historical Society.44.9History Partnerships. $1,500,000 the first 44.10year and $1,500,000 $1,700,000 the second 44.11year are for partnerships involving multiple 44.12organizations, which may include the 44.13Minnesota Historical Society, to preserve and 44.14enhance access to Minnesota's history and 44.15cultural heritage in all regions of the state.44.16Statewide Survey of Historical and 44.17Archaeological Sites. $250,000 the first 44.18year and $250,000 the second year are 44.19for a contract or contracts to be let on a 44.20competitive basis to conduct statewide 44.21surveys of Minnesota's sites of historical, 44.22archaeological, and cultural significance. 44.23Results of this survey must be published in 44.24a searchable form, available to the public on 44.25a cost-free basis. The Minnesota Historical 44.26Society, the Office of the State Archaeologist, 44.27and the Indian Affairs Council shall each 44.28appoint a representative to an oversight 44.29board to select contractors and direct the 44.30conduct of these surveys. The oversight 44.31board shall consult with the Departments of 44.32Transportation and Natural Resources.44.33Digital Library. $250,000 the first year and 44.34$250,000 the second year are for a digital 44.35library project to preserve, digitize, and share 45.1Minnesota images, documents, and historical 45.2materials. The Minnesota Historical Society 45.3shall cooperate with the Minitex interlibrary 45.4loan system and shall jointly share this 45.5appropriation for these purposes.45.6Commemoration Activities. $100,000 45.7the second year is for activities that 45.8commemorate the sesquicentennial of 45.9the American Civil War and the Dakota 45.10Conflict, as recommended by the Civil War 45.11Commemoration Task Force established in 45.12Executive Order 11-15 (2011).45.13    Sec. 5. COMMEMORATION PROGRAMMING; APPROPRIATION.45.14$80,000 is appropriated in fiscal year 2013 from the arts and cultural heritage fund 45.15to the commissioner of administration for grants to public broadcasting organizations to 45.16develop programming that commemorates the sesquicentennial.45.17    Sec. 6. FILM PRODUCTION INCENTIVE PROGRAM; APPROPRIATION.45.18$600,000 is appropriated in fiscal year 2013 from the arts and cultural heritage fund 45.19to the commissioner of administration for a grant to the Minnesota Film and TV Board 45.20for a new competitive film production incentive program. The Minnesota Film and TV 45.21Board in consultation with Independent Feature Project/Minnesota shall reimburse film 45.22producers for eligible production costs incurred to produce a film or documentary in 45.23Minnesota. Eligible production costs are expenditures incurred in Minnesota that are 45.24directly attributable to the production of a film or documentary in Minnesota. Eligible 45.25production costs include talent, management, labor, set construction and operation, 45.26wardrobe, sound synchronization, lighting, editing, rental facilities and equipment, and 45.27other direct costs of producing a film or documentary in accordance with generally 45.28accepted entertainment industry practices. A producer must agree, to the greatest extent 45.29possible, to procure all eligible production inputs in Minnesota. A producer must submit 45.30proper documentation of eligible production costs incurred.45.31    Sec. 7. HISTORICAL RULEMAKING WEB SITE; APPROPRIATION.45.32$35,000 is appropriated in fiscal year 2013 from the arts and cultural heritage fund to 45.33the revisor of statutes to design and implement a Web site to provide the public searchable 46.1access to historical documents relating to state agency rulemaking. It is anticipated that 46.2the revisor of statutes will match this appropriation from carryforward funds and that the 46.3revisor will use the carryforward funds to design and implement a Web site that will 46.4provide the public searchable access to future state agency rulemaking documents.46.5    Sec. 8. LEGACY FUNDING REQUIREMENTS APPLY.46.6All appropriations in this article are onetime and are subject to the requirements 46.7and availability provisions provided under Laws 2011, First Special Session chapter 6, 46.8articles 4 and 5. Each direct recipient of money appropriated in this article, as well as each 46.9recipient of a grant awarded pursuant to this article, must satisfy all reporting and other 46.10requirements incumbent upon legacy funding recipients as provided in Laws 2011, First 46.11Special Session chapter 6, articles 4 and 5.