1.1 	A bill for an act
1.2 	relating to state government; appropriating money for environment, natural 
1.3 	resources, and agriculture; modifying and providing for certain fees; modifying 
1.4 	and providing for disposition of certain revenue; creating accounts; modifying 
1.5 	payment of certain costs; modifying grant programs; providing for agricultural 
1.6 	water quality certification; modifying Minnesota Noxious Weed Law; modifying 
1.7 	pesticide control; modifying animal waste technician provisions; modifying 
1.8 	certain renewable energy and biofuel provisions; modifying bonding requirements 
1.9 	for grain buyers and grain storage; making technical changes; modifying certain 
1.10 	permit requirements; providing for federal law compliance; providing for certain 
1.11 	easements; establishing pollinator habitat program; modifying state trails; 
1.12 	modifying all-terrain vehicle operating provisions; modifying State Timber 
1.13 	Act; modifying water use requirements; modifying certain park boundaries; 
1.14 	modifying reporting requirements; modifying Petroleum Tank Release Cleanup 
1.15 	Act; providing for silica sand mining model standards and technical assistance; 
1.16 	establishing criteria for wastewater treatment system projects; providing for 
1.17 	wastewater laboratory certification; providing for product stewardship programs; 
1.18 	modifying Minnesota Power Plant Siting Act; providing for sanitary districts; 
1.19 	requiring groundwater sustainability recommendations; requiring rulemaking;
1.20 	amending Minnesota Statutes 2012, sections 17.03, subdivision 3; 17.1015; 
1.21 	17.118, subdivision 2; 18.77, subdivisions 3, 4, 10, 12; 18.78, subdivision 3; 
1.22 	18.79, subdivisions 6, 13; 18.82, subdivision 1; 18.91, subdivisions 1, 2; 18B.01, 
1.23 	by adding a subdivision; 18B.065, subdivision 2a; 18B.07, subdivisions 4, 5, 7; 
1.24 	18B.26, subdivision 3; 18B.305; 18B.316, subdivisions 1, 3, 4, 8, 9; 18B.37, 
1.25 	subdivision 4; 18C.430; 18C.433, subdivision 1; 31.94; 41A.10, subdivision 2, 
1.26 	by adding a subdivision; 41A.105, subdivisions 1a, 3, 5; 41A.12, by adding a 
1.27 	subdivision; 41B.04, subdivision 9; 41D.01, subdivision 4; 84.027, by adding a 
1.28 	subdivision; 84.82, by adding a subdivision; 84.922, by adding a subdivision; 
1.29 	84.9256, subdivision 1; 84.928, subdivision 1; 84D.108, subdivision 2; 85.015, 
1.30 	subdivision 13; 85.052, subdivision 6; 85.054, by adding a subdivision; 85.055, 
1.31 	subdivisions 1, 2; 85.42; 89.0385; 89.17; 90.01, subdivisions 4, 5, 6, 8, 11; 
1.32 	90.031, subdivision 4; 90.041, subdivisions 2, 5, 6, 9, by adding subdivisions; 
1.33 	90.045; 90.061, subdivision 8; 90.101, subdivision 1; 90.121; 90.145; 90.151, 
1.34 	subdivisions 1, 2, 3, 4, 6, 7, 8, 9; 90.161; 90.162; 90.171; 90.181, subdivision 2; 
1.35 	90.191, subdivision 1; 90.193; 90.195; 90.201, subdivision 2a; 90.211; 90.221; 
1.36 	90.252, subdivision 1; 90.301, subdivisions 2, 4; 90.41, subdivision 1; 92.50; 
1.37 	93.17, subdivision 1; 93.1925, subdivision 2; 93.25, subdivision 2; 93.285, 
1.38 	subdivision 3; 93.46, by adding a subdivision; 93.481, subdivisions 3, 5, by 
1.39 	adding subdivisions; 93.482; 97A.401, subdivision 3; 103G.265, subdivisions 
2.1 	2, 3; 103G.271, subdivisions 1, 4, 6; 103G.282; 103G.287, subdivisions 1, 
2.2 	4, 5; 103G.615, subdivision 2; 103I.205, subdivision 1; 103I.601, by adding 
2.3 	a subdivision; 114D.50, subdivision 4; 115A.1320, subdivision 1; 115B.20, 
2.4 	subdivision 6; 115B.28, subdivision 1; 115C.02, subdivision 4; 115C.08, 
2.5 	subdivision 4, by adding a subdivision; 115D.10; 116.48, subdivision 6; 116C.03, 
2.6 	subdivisions 2, 4, 5; 116D.04, by adding a subdivision; 116J.437, subdivision 
2.7 	1; 168.1296, subdivision 1; 216E.12, subdivision 4; 223.17, by adding a 
2.8 	subdivision; 232.22, by adding a subdivision; 239.051, by adding subdivisions; 
2.9 	239.791, subdivisions 1, 2a, 2b; 239.7911; 275.066; 296A.01, subdivision 19, by 
2.10 	adding a subdivision; 473.846; Laws 2012, chapter 249, section 11; proposing 
2.11 	coding for new law in Minnesota Statutes, chapters 17; 18; 84; 90; 93; 115; 
2.12 	115A; 116C; proposing coding for new law as Minnesota Statutes, chapter 442A; 
2.13 	repealing Minnesota Statutes 2012, sections 18.91, subdivisions 3, 5; 18B.07, 
2.14 	subdivision 6; 90.163; 90.173; 90.41, subdivision 2; 103G.265, subdivision 2a; 
2.15 	115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, 10; 115.19; 115.20; 115.21; 115.22; 
2.16 	115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 115.30; 115.31; 115.32; 
2.17 	115.33; 115.34; 115.35; 115.36; 115.37; 239.791, subdivision 1a; Minnesota 
2.18 	Rules, parts 7021.0010, subparts 1, 2, 4, 5; 7021.0020; 7021.0030; 7021.0040; 
2.19 	7021.0050, subpart 5; 9210.0300; 9210.0310; 9210.0320; 9210.0330; 9210.0340; 
2.20 	9210.0350; 9210.0360; 9210.0370; 9210.0380; 9220.0530, subpart 6.
2.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.22 	ARTICLE 1
2.23 	AGRICULTURE APPROPRIATIONS

2.24	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
2.25 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.26 	in this article.

2.27			2014
		2015
		Total
	
2.28	General
	$
	39,504,000
	$
	39,646,000
	$
	79,150,000
	
2.29	Agricultural 
	$
	1,240,000
	$
	1,240,000
	$
	2,480,000
	
2.30	Remediation
	$
	388,000
	$
	388,000
	$
	776,000
	
2.31	Total
	$
	41,132,000
	$
	41,274,000
	$
	82,406,000

2.32	Sec. 2. AGRICULTURE APPROPRIATIONS.
 	
2.33 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.34 	agencies and for the purposes specified in this article. The appropriations are from the 
2.35 	general fund, or another named fund, and are available for the fiscal years indicated 
2.36 	for each purpose. The figures "2014" and "2015" used in this article mean that the 
2.37 	appropriations listed under them are available for the fiscal year ending June 30, 2014, or 
2.38 	June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal 
2.39 	year 2015. "The biennium" is fiscal years 2014 and 2015.

2.40				APPROPRIATIONS
	
2.41				Available for the Year
	
3.1				Ending June 30
	
3.2					2014
		2015

3.3	Sec. 3. DEPARTMENT OF AGRICULTURE.

3.4	Subdivision 1.Total Appropriation
 	$
	33,620,000
	$
	 33,730,000

3.5	Appropriations by Fund
	
3.6		2014
	2015
	
3.7	General
	31,992,000
	32,102,000
	
3.8	Agricultural
	1,240,000
	1,240,000
	
3.9	Remediation
	388,000
	388,000
	
3.10 	The amounts that may be spent for each 
3.11 	purpose are specified in the following 
3.12 	subdivisions.

3.13	Subd. 2.Protection Services
 		12,883,000
		12,883,000

3.14	Appropriations by Fund
	
3.15		2014
	2015
	
3.16	General
	12,055,000
	12,055,000
	
3.17	Agricultural
	440,000
	440,000
	
3.18	Remediation
	388,000
	388,000
	
3.19 	$388,000 the first year and $388,000 the 
3.20 	second year are from the remediation fund 
3.21 	for administrative funding for the voluntary 
3.22 	cleanup program.
3.23 	$75,000 the first year and $75,000 the second 
3.24 	year are for compensation for destroyed or 
3.25 	crippled animals under Minnesota Statutes, 
3.26 	section 3.737. If the amount in the first year 
3.27 	is insufficient, the amount in the second year 
3.28 	is available in the first year.
3.29 	$75,000 the first year and $75,000 the second 
3.30 	year are for compensation for crop damage 
3.31 	under Minnesota Statutes, section 3.7371. If 
3.32 	the amount in the first year is insufficient, the 
3.33 	amount in the second year is available in the 
3.34 	first year.
4.1 	If the commissioner determines that claims 
4.2 	made under Minnesota Statutes, section 
4.3 	3.737 or 3.7371, are unusually high, amounts 
4.4 	appropriated for either program may be 
4.5 	transferred to the appropriation for the other 
4.6 	program.
4.7 	$225,000 the first year and $225,000 the 
4.8 	second year are for an increase in retail food 
4.9 	handler inspections.
4.10 	$25,000 the first year and $25,000 the second 
4.11 	year are for training manuals for licensure 
4.12 	related to commercial manure application.
4.13 	$245,000 the first year and $245,000 the 
4.14 	second year are for an increase in the 
4.15 	operating budget for the Laboratory Services 
4.16 	Division.
4.17 	The commissioner may spend up to $10,000 
4.18 	of the amount appropriated each year under 
4.19 	this subdivision to administer the agricultural 
4.20 	water quality certification program.
4.21 	Notwithstanding Minnesota Statutes, section 
4.22 	18B.05, $90,000 the first year and $90,000 
4.23 	the second year are from the pesticide 
4.24 	regulatory account in the agricultural fund 
4.25 	for an increase in the operating budget for 
4.26 	the Laboratory Services Division.
4.27 	Notwithstanding Minnesota Statutes, section 
4.28 	18B.05, $100,000 the first year and $100,000 
4.29 	the second year are from the pesticide 
4.30 	regulatory account in the agricultural fund to 
4.31 	update and modify applicator education and 
4.32 	training materials. No later than January 15, 
4.33 	2015, the commissioner must report to the 
4.34 	legislative committees with jurisdiction over 
4.35 	agriculture finance regarding the agency's 
5.1 	progress and a schedule of activities the 
5.2 	commissioner will accomplish to update and 
5.3 	modify additional materials by December 
5.4 	31, 2017.
5.5 	Notwithstanding Minnesota Statutes, section 
5.6 	18B.05, $100,000 the first year and $100,000 
5.7 	the second year are from the pesticide 
5.8 	regulatory account in the agricultural fund to 
5.9 	monitor pesticides and pesticide degradates 
5.10 	in surface water and groundwater in areas 
5.11 	vulnerable to surface water impairments and 
5.12 	groundwater degradation and to use data 
5.13 	collected to improve pesticide use practices. 
5.14 	This is a onetime appropriation.
5.15 	Notwithstanding Minnesota Statutes, section 
5.16 	18B.05, $150,000 the first year and $150,000 
5.17 	the second year are from the pesticide 
5.18 	regulatory account in the agricultural fund 
5.19 	for transfer to the commissioner of natural 
5.20 	resources for pollinator habitat restoration 
5.21 	that is visible to the public, along state trails, 
5.22 	and located in various parts of the state and 
5.23 	that includes an appropriate diversity of 
5.24 	native species selected to provide habitat for 
5.25 	pollinators throughout the growing season. 
5.26 	The commissioner of natural resources may 
5.27 	use up to $25,000 each year for pollinator 
5.28 	habitat signage and public awareness. This is 
5.29 	a onetime appropriation.

5.30
5.31	Subd. 3.Agricultural Marketing and 
Development
 		3,152,000
		3,152,000
	
5.32 	$186,000 the first year and $186,000 the 
5.33 	second year are for transfer to the Minnesota 
5.34 	grown account and may be used as grants 
5.35 	for Minnesota grown promotion under 
5.36 	Minnesota Statutes, section 17.102. Grants 
6.1 	may be made for one year. Notwithstanding 
6.2 	Minnesota Statutes, section 16A.28, the 
6.3 	appropriations encumbered under contract 
6.4 	on or before June 30, 2015, for Minnesota 
6.5 	grown grants in this paragraph are available 
6.6 	until June 30, 2017.
6.7 	$190,000 the first year and $190,000 the 
6.8 	second year are for grants to farmers for 
6.9 	demonstration projects involving sustainable 
6.10 	agriculture as authorized in Minnesota 
6.11 	Statutes, section 17.116, and for grants 
6.12 	to small or transitioning farmers. Of the 
6.13 	amount for grants, up to $20,000 may be 
6.14 	used for dissemination of information about 
6.15 	demonstration projects. Notwithstanding 
6.16 	Minnesota Statutes, section 16A.28, the 
6.17 	appropriations encumbered under contract 
6.18 	on or before June 30, 2015, for sustainable 
6.19 	agriculture grants in this paragraph are 
6.20 	available until June 30, 2017.
6.21 	The commissioner may use funds 
6.22 	appropriated in this subdivision for annual 
6.23 	cost-share payments to resident farmers 
6.24 	or entities that sell, process, or package 
6.25 	agricultural products in this state for the costs 
6.26 	of organic certification. Annual cost-share 
6.27 	payments must be two-thirds of the cost of 
6.28 	the certification or $350, whichever is less. 
6.29 	A certified organic operation is eligible to 
6.30 	receive annual cost-share payments for up to 
6.31 	five years. In any year when federal organic 
6.32 	cost-share program funds are available or 
6.33 	when there is any excess appropriation in 
6.34 	either fiscal year, the commissioner may 
6.35 	allocate these funds for organic market and 
6.36 	program development, including organic 
7.1 	producer education efforts, assistance for 
7.2 	persons transitioning from conventional 
7.3 	to organic agriculture, or sustainable 
7.4 	agriculture demonstration grants authorized 
7.5 	under Minnesota Statutes, section 17.116, 
7.6 	and pertaining to organic research or 
7.7 	demonstration. Any unencumbered balance 
7.8 	does not cancel at the end of the first year 
7.9 	and is available for the second year.
7.10 	The commissioner may spend up to $25,000 
7.11 	of the amount appropriated each year 
7.12 	under this subdivision for pollinator habitat 
7.13 	education and outreach efforts.

7.14
7.15	Subd. 4.Bioenergy and Value-Added 
Agriculture
 		10,235,000
		10,235,000
	
7.16 	$10,235,000 the first year and $10,235,000 
7.17 	the second year are for the agricultural 
7.18 	growth, research, and innovation program 
7.19 	in Minnesota Statutes, section 41A.12. 
7.20 	The commissioner shall consider creating 
7.21 	a competitive grant program for small 
7.22 	renewable energy projects for rural residents. 
7.23 	No later than February 1, 2014, and February 
7.24 	1, 2015, the commissioner must report to 
7.25 	the legislative committees with jurisdiction 
7.26 	over agriculture policy and finance regarding 
7.27 	the commissioner's accomplishments and 
7.28 	anticipated accomplishments in the following 
7.29 	areas: developing new markets for Minnesota 
7.30 	farmers by providing more fruits and 
7.31 	vegetables for Minnesota school children; 
7.32 	facilitating the start-up, modernization, 
7.33 	or expansion of livestock operations 
7.34 	including beginning and transitioning 
7.35 	livestock operations; facilitating the start-up, 
7.36 	modernization, or expansion of other 
8.1 	beginning and transitioning farms; research 
8.2 	on conventional and cover crops; and biofuel 
8.3 	and other renewable energy development 
8.4 	including small renewable energy projects 
8.5 	for rural residents.
8.6 	The commissioner may use up to 4.5 percent 
8.7 	of this appropriation for costs incurred to 
8.8 	administer the program. Any unencumbered 
8.9 	balance does not cancel at the end of the first 
8.10 	year and is available for the second year. 
8.11 	Notwithstanding Minnesota Statutes, section 
8.12 	16A.28, the appropriations encumbered 
8.13 	under contract on or before June 30, 2015, for 
8.14 	agricultural growth, research, and innovation 
8.15 	grants in this subdivision are available until 
8.16 	June 30, 2017.
8.17 	Funds in this appropriation may be used 
8.18 	for bioenergy grants. The NextGen 
8.19 	Energy Board, established in Minnesota 
8.20 	Statutes, section 41A.105, shall make 
8.21 	recommendations to the commissioner on 
8.22 	grants for owners of Minnesota facilities 
8.23 	producing bioenergy; for organizations that 
8.24 	provide for on-station, on-farm field scale 
8.25 	research and outreach to develop and test 
8.26 	the agronomic and economic requirements 
8.27 	of diverse stands of prairie plants and other 
8.28 	perennials for bioenergy systems; or for 
8.29 	certain nongovernmental entities. For the 
8.30 	purposes of this paragraph, "bioenergy" 
8.31 	includes transportation fuels derived from 
8.32 	cellulosic material, as well as the generation 
8.33 	of energy for commercial heat, industrial 
8.34 	process heat, or electrical power from 
8.35 	cellulosic materials via gasification or 
8.36 	other processes. Grants are limited to 50 
9.1 	percent of the cost of research, technical 
9.2 	assistance, or equipment related to bioenergy 
9.3 	production or $500,000, whichever is less. 
9.4 	Grants to nongovernmental entities for the 
9.5 	development of business plans and structures 
9.6 	related to community ownership of eligible 
9.7 	bioenergy facilities together may not exceed 
9.8 	$150,000. The board shall make a good-faith 
9.9 	effort to select projects that have merit and, 
9.10 	when taken together, represent a variety of 
9.11 	bioenergy technologies, biomass feedstocks, 
9.12 	and geographic regions of the state. Projects 
9.13 	must have a qualified engineer provide 
9.14 	certification on the technology and fuel 
9.15 	source. Grantees must provide reports at 
9.16 	the request of the commissioner. No later 
9.17 	than February 1, 2014, and February 1, 
9.18 	2015, the commissioner shall report on the 
9.19 	projects funded under this appropriation to 
9.20 	the legislative committees with jurisdiction 
9.21 	over agriculture policy and finance.

9.22
9.23	Subd. 5.Administration and Financial 
Assistance
 		7,350,000
		7,460,000

9.24	Appropriations by Fund
	
9.25		2014
	2015
	
9.26	General
	6,550,000
	6,660,000
	
9.27	Agricultural
	800,000
	800,000
	
9.28 	$634,000 the first year and $634,000 the 
9.29 	second year are for continuation of the dairy 
9.30 	development and profitability enhancement 
9.31 	and dairy business planning grant programs 
9.32 	established under Laws 1997, chapter 
9.33 	216, section 7, subdivision 2, and Laws 
9.34 	2001, First Special Session chapter 2, 
9.35 	section 9, subdivision 2. The commissioner 
9.36 	may allocate the available sums among 
10.1 	permissible activities, including efforts to 
10.2 	improve the quality of milk produced in the 
10.3 	state in the proportions that the commissioner 
10.4 	deems most beneficial to Minnesota's 
10.5 	dairy farmers. The commissioner must 
10.6 	submit a detailed accomplishment report 
10.7 	and a work plan detailing future plans for, 
10.8 	and anticipated accomplishments from, 
10.9 	expenditures under this program to the 
10.10 	chairs and ranking minority members of the 
10.11 	legislative committees with jurisdiction over 
10.12 	agricultural policy and finance on or before 
10.13 	the start of each fiscal year. If significant 
10.14 	changes are made to the plans in the course 
10.15 	of the year, the commissioner must notify the 
10.16 	chairs and ranking minority members.
10.17 	$47,000 the first year and $47,000 the second 
10.18 	year are for the Northern Crops Institute. 
10.19 	These appropriations may be spent to 
10.20 	purchase equipment.
10.21 	$18,000 the first year and $18,000 the 
10.22 	second year are for a grant to the Minnesota 
10.23 	Livestock Breeders' Association.
10.24 	$235,000 the first year and $235,000 the 
10.25 	second year are for grants to the Minnesota 
10.26 	Agriculture Education Leadership Council 
10.27 	for programs of the council under Minnesota 
10.28 	Statutes, chapter 41D.
10.29 	$474,000 the first year and $474,000 the 
10.30 	second year are for payments to county and 
10.31 	district agricultural societies and associations 
10.32 	under Minnesota Statutes, section 38.02, 
10.33 	subdivision 1. Aid payments to county and 
10.34 	district agricultural societies and associations 
10.35 	shall be disbursed no later than July 15 of 
11.1 	each year. These payments are the amount of 
11.2 	aid from the state for an annual fair held in 
11.3 	the previous calendar year.
11.4 	$1,000 the first year and $1,000 the second 
11.5 	year are for grants to the Minnesota State 
11.6 	Poultry Association.
11.7 	$108,000 the first year and $108,000 the 
11.8 	second year are for annual grants to the 
11.9 	Minnesota Turf Seed Council for basic 
11.10 	and applied research on: (1) the improved 
11.11 	production of forage and turf seed related to 
11.12 	new and improved varieties; and (2) native 
11.13 	plants, including plant breeding, nutrient 
11.14 	management, pest management, disease 
11.15 	management, yield, and viability. The grant 
11.16 	recipient may subcontract with a qualified 
11.17 	third party for some or all of the basic or 
11.18 	applied research.
11.19 	$500,000 the first year and $500,000 the 
11.20 	second year are for grants to Second Harvest 
11.21 	Heartland on behalf of Minnesota's six 
11.22 	Second Harvest food banks for the purchase 
11.23 	of milk for distribution to Minnesota's food 
11.24 	shelves and other charitable organizations 
11.25 	that are eligible to receive food from the food 
11.26 	banks. Milk purchased under the grants must 
11.27 	be acquired from Minnesota milk processors 
11.28 	and based on low-cost bids. The milk must be 
11.29 	allocated to each Second Harvest food bank 
11.30 	serving Minnesota according to the formula 
11.31 	used in the distribution of United States 
11.32 	Department of Agriculture commodities 
11.33 	under The Emergency Food Assistance 
11.34 	Program (TEFAP). Second Harvest 
11.35 	Heartland must submit quarterly reports 
12.1 	to the commissioner on forms prescribed 
12.2 	by the commissioner. The reports must 
12.3 	include, but are not limited to, information 
12.4 	on the expenditure of funds, the amount 
12.5 	of milk purchased, and the organizations 
12.6 	to which the milk was distributed. Second 
12.7 	Harvest Heartland may enter into contracts 
12.8 	or agreements with food banks for shared 
12.9 	funding or reimbursement of the direct 
12.10 	purchase of milk. Each food bank receiving 
12.11 	money from this appropriation may use up to 
12.12 	two percent of the grant for administrative 
12.13 	expenses.
12.14 	$94,000 the first year and $94,000 the 
12.15 	second year are for transfer to the Board of 
12.16 	Trustees of the Minnesota State Colleges 
12.17 	and Universities for statewide mental health 
12.18 	counseling support to farm families and 
12.19 	business operators through farm business 
12.20 	management programs at Central Lakes 
12.21 	College and Ridgewater College.
12.22 	$17,000 the first year and $17,000 the second 
12.23 	year are for grants to the Minnesota State 
12.24 	Horticultural Society.
12.25 	Notwithstanding Minnesota Statutes, 
12.26 	section 18C.131, $800,000 the first year 
12.27 	and $800,000 the second year are from 
12.28 	the fertilizer inspection account in the 
12.29 	agricultural fund for grants for fertilizer 
12.30 	research as awarded by the Minnesota 
12.31 	Agricultural Fertilizer Research and 
12.32 	Education Council under Minnesota Statutes, 
12.33 	section 18C.71. The amount appropriated in 
12.34 	either fiscal year must not exceed 57 percent 
12.35 	of the inspection fee revenue collected 
13.1 	under Minnesota Statutes, section 18C.425, 
13.2 	subdivision 6, during the previous fiscal 
13.3 	year. No later than February 1, 2015, the 
13.4 	commissioner shall report to the legislative 
13.5 	committees with jurisdiction over agriculture 
13.6 	finance. The report must include the progress 
13.7 	and outcome of funded projects as well as 
13.8 	the sentiment of the council concerning the 
13.9 	need for additional research funds.

13.10	Sec. 4. BOARD OF ANIMAL HEALTH
 	$
	4,869,000
	$
	4,901,000

13.11
13.12	Sec. 5. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	2,643,000
	$
	2,643,000
	
13.13 	Money in this appropriation is available for 
13.14 	technical assistance and technology transfer 
13.15 	to bioenergy crop producers and users.

13.16 	ARTICLE 2
13.17 	AGRICULTURE POLICY

13.18 	Section 1. Minnesota Statutes 2012, section 17.03, subdivision 3, is amended to read:
13.19 		Subd. 3.Cooperation with federal agencies. (a) The commissioner shall cooperate 
13.20 	with the government of the United States, with financial agencies created to assist in the 
13.21 	development of the agricultural resources of this state, and so far as practicable may use 
13.22 	the facilities provided by the existing state departments and the various state and local 
13.23 	organizations. This subdivision is intended to relate to every function and duty which 
13.24 	devolves upon the commissioner.
13.25 	(b) The commissioner may apply for, receive, and disburse federal funds made 
13.26 	available to the state by federal law or regulation for any purpose related to the powers and 
13.27 	duties of the commissioner. All money received by the commissioner under this paragraph 
13.28 	shall be deposited in the state treasury and is appropriated to the commissioner for the 
13.29 	purposes for which it was received. Money made available under this paragraph may 
13.30 	be paid pursuant to applicable federal regulations and rate structures. Money received 
13.31 	under this paragraph does not cancel and is available for expenditure according to federal 
13.32 	law. The commissioner may contract with and enter into grant agreements with persons, 
13.33 	organizations, educational institutions, firms, corporations, other state agencies, and any 
14.1 	agency or instrumentality of the federal government to carry out agreements made with 
14.2 	the federal government relating to the expenditure of money under this paragraph. Bid 
14.3 	requirements under chapter 16C do not apply to contracts under this paragraph.

14.4 	Sec. 2. Minnesota Statutes 2012, section 17.1015, is amended to read:
14.5 	17.1015 PROMOTIONAL EXPENDITURES.
14.6 	In order to accomplish the purposes of section 17.101, the commissioner may 
14.7 	participate jointly with private persons in appropriate programs and projects and may enter 
14.8 	into contracts to carry out those programs and projects. The contracts may not include 
14.9 	the acquisition of land or buildings and are not subject to the provisions of chapter 16C 
14.10 	relating to competitive bidding.
14.11 	The commissioner may spend money appropriated for the purposes of section 
14.12 	17.101 in the same manner that private persons, firms, corporations, and associations 
14.13 	make expenditures for these purposes, and expenditures made pursuant to section 17.101
14.14 	for food, lodging, or travel are not governed by the travel rules of the commissioner of 
14.15 	management and budget.

14.16 	Sec. 3. Minnesota Statutes 2012, section 17.118, subdivision 2, is amended to read:
14.17 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in this 
14.18 	subdivision have the meanings given them.
14.19 	(b) "Livestock" means beef cattle, dairy cattle, swine, poultry, goats, mules, farmed 
14.20 	cervidae, ratitae, bison, sheep, horses, and llamas.
14.21 	(c) "Qualifying expenditures" means the amount spent for:
14.22 	(1) the acquisition, construction, or improvement of buildings or facilities for the 
14.23 	production of livestock or livestock products;
14.24 	(2) the development of pasture for use by livestock including, but not limited to, the 
14.25 	acquisition, development, or improvement of:
14.26 	(i) lanes used by livestock that connect pastures to a central location;
14.27 	(ii) watering systems for livestock on pasture including water lines, booster pumps, 
14.28 	and well installations;
14.29 	(iii) livestock stream crossing stabilization; and
14.30 	(iv) fences; or
14.31 	(3) the acquisition of equipment for livestock housing, confinement, feeding, and 
14.32 	waste management including, but not limited to, the following:
14.33 	(i) freestall barns;
14.34 	(ii) watering facilities;
15.1 	(iii) feed storage and handling equipment;
15.2 	(iv) milking parlors;
15.3 	(v) robotic equipment;
15.4 	(vi) scales;
15.5 	(vii) milk storage and cooling facilities;
15.6 	(viii) bulk tanks;
15.7 	(ix) computer hardware and software and associated equipment used to monitor 
15.8 	the productivity and feeding of livestock;
15.9 	(x) manure pumping and storage facilities;
15.10 	(xi) swine farrowing facilities;
15.11 	(xii) swine and cattle finishing barns;
15.12 	(xiii) calving facilities;
15.13 	(xiv) digesters;
15.14 	(xv) equipment used to produce energy;
15.15 	(xvi) on-farm processing facilities equipment;
15.16 	(xvii) fences; and
15.17 	(xviii) livestock pens and corrals and sorting, restraining, and loading chutes.
15.18 	Except for qualifying pasture development expenditures under clause (2), qualifying 
15.19 	expenditures only include amounts that are allowed to be capitalized and deducted under 
15.20 	either section 167 or 179 of the Internal Revenue Code in computing federal taxable 
15.21 	income. Qualifying expenditures do not include an amount paid to refinance existing debt.
15.22 	(d) "Qualifying period" means, for a grant awarded during a fiscal year, that full 
15.23 	calendar year of which the first six months precede the first day of the current fiscal year. For 
15.24 	example, an eligible person who makes qualifying expenditures during calendar year 2008 
15.25 	is eligible to receive a livestock investment grant between July 1, 2008, and June 30, 2009.

15.26 	Sec. 4. [17.9891] PURPOSE.
15.27 	The commissioner, in consultation with the commissioner of natural resources, 
15.28 	commissioner of the Pollution Control Agency, and Board of Water and Soil Resources, 
15.29 	may implement a Minnesota agricultural water quality certification program whereby a 
15.30 	producer who demonstrates practices and management sufficient to protect water quality 
15.31 	is certified for up to ten years and presumed to be contributing the producer's share of 
15.32 	any targeted reduction of water pollutants during the certification period. The program 
15.33 	is voluntary. The program will first be piloted in selected watersheds across the state, 
15.34 	until such time as the commissioner, in consultation with the commissioner of natural 
16.1 	resources, commissioner of the Pollution Control Agency, and Board of Water and Soil 
16.2 	Resources, determines the program is ready for expansion.

16.3 	Sec. 5. [17.9892] DEFINITIONS.
16.4 		Subdivision 1.Application. The definitions in this section apply to sections 
16.5 	17.9891 to 17.993.
16.6 		Subd. 2.Certification. "Certification" means a producer has demonstrated 
16.7 	compliance with all applicable environmental rules and statutes for all of the producer's 
16.8 	owned and rented agricultural land and has achieved a satisfactory score through the 
16.9 	certification instrument as verified by a certifying agent.
16.10 		Subd. 3.Certifying agent. "Certifying agent" means a person who is authorized 
16.11 	by the commissioner to assess producers to determine whether a producer satisfies the 
16.12 	standards of the program.
16.13 		Subd. 4.Effective control. "Effective control" means possession of land by 
16.14 	ownership, written lease, or other legal agreement and authority to act as decision 
16.15 	maker for the day-to-day management of the operation at the time the producer achieves 
16.16 	certification and for the required certification period.
16.17 		Subd. 5.Eligible land. "Eligible land" means all acres of a producer's agricultural 
16.18 	operation, whether contiguous or not, that are under the effective control of the producer 
16.19 	at the time the producer enters into the program and that the producer operates with 
16.20 	equipment, labor, and management.
16.21 		Subd. 6.Program. "Program" means the Minnesota agricultural water quality 
16.22 	certification program.
16.23 		Subd. 7.Technical assistance. "Technical assistance" means professional, advisory, 
16.24 	or cost-share assistance provided to individuals in order to achieve certification.

16.25 	Sec. 6. [17.9893] CERTIFICATION INSTRUMENT.
16.26 	The commissioner, in consultation with the commissioner of natural resources, 
16.27 	commissioner of the Pollution Control Agency, and Board of Water and Soil Resources, 
16.28 	shall develop an analytical instrument to assess the water quality practices and 
16.29 	management of agricultural operations. This instrument shall be used to certify that the 
16.30 	water quality practices and management of an agricultural operation are consistent with 
16.31 	state water quality goals and standards. The commissioner shall define a satisfactory score 
16.32 	for certification purposes. The certification instrument tool shall:
16.33 	(1) integrate applicable existing regulatory requirements;
16.34 	(2) utilize technology and prioritize ease of use;
17.1 	(3) utilize a water quality index or score applicable to the landscape;
17.2 	(4) incorporate a process for updates and revisions as practices, management, and 
17.3 	technology changes become established and approved; and
17.4 	(5) comprehensively address water quality impacts.

17.5 	Sec. 7. [17.9894] CERTIFYING AGENT LICENSE.
17.6 		Subdivision 1.License. A person who offers certification services to producers 
17.7 	as part of the program must satisfy all criteria in subdivision 2 and be licensed by 
17.8 	the commissioner. A certifying agent is ineligible to provide certification services 
17.9 	to any producer to whom the certifying agent has also provided technical assistance. 
17.10 	Notwithstanding section 16A.1283, the commissioner may set license fees.
17.11 		Subd. 2.Certifying agent requirements. In order to be licensed as a certifying 
17.12 	agent, a person must:
17.13 	(1) be an agricultural conservation professional employed by the state of Minnesota, 
17.14 	a soil and water conservation district, or the Natural Resources Conservation Service or a 
17.15 	Minnesota certified crop advisor as recognized by the American Society of Agronomy; 
17.16 	(2) have passed a comprehensive exam, as set by the commissioner, evaluating 
17.17 	knowledge of water quality, soil health, best farm management techniques, and the 
17.18 	certification instrument; and
17.19 	(3) maintain continuing education requirements as set by the commissioner.

17.20 	Sec. 8. [17.9895] DUTIES OF A CERTIFYING AGENT.
17.21 		Subdivision 1.Duties. A certifying agent shall conduct a formal certification 
17.22 	assessment utilizing the certification instrument to determine whether a producer meets 
17.23 	program criteria. If a producer satisfies all requirements, the certifying agent shall notify 
17.24 	the commissioner of the producer's eligibility and request that the commissioner issue a 
17.25 	certificate. All records and documents used in the assessment shall be compiled by the 
17.26 	certifying agent and submitted to the commissioner.
17.27 		Subd. 2.Violations. (a) In the event a certifying agent violates any provision of 
17.28 	sections 17.9891 to 17.993 or an order of the commissioner, the commissioner may issue a 
17.29 	written warning or a correction order and may suspend or revoke a license.
17.30 	(b) If the commissioner suspends or revokes a license, the certifying agent has ten 
17.31 	days from the date of suspension or revocation to appeal. If a certifying agent appeals, the 
17.32 	commissioner shall hold an administrative hearing within 30 days of the suspension or 
17.33 	revocation of the license, or longer by agreement of the parties, to determine whether the 
17.34 	license is revoked or suspended. The commissioner shall issue an opinion within 30 days. 
18.1 	If a person notifies the commissioner that the person intends to contest the commissioner's 
18.2 	opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with 
18.3 	the applicable provisions of chapter 14 for hearings in contested cases.

18.4 	Sec. 9. [17.9896] CERTIFICATION PROCEDURES.
18.5 		Subdivision 1.Producer duties. A producer who seeks certification of eligible land 
18.6 	shall conduct an initial assessment using the certification instrument, obtain technical 
18.7 	assistance if necessary to achieve a satisfactory score on the certification instrument, and 
18.8 	apply for certification from a licensed certifying agent.
18.9 		Subd. 2.Additional land. Once certified, if a producer obtains effective control 
18.10 	of additional agricultural land, the producer must notify a certifying agent and obtain 
18.11 	certification of the additional land within one year in order to retain the producer's original 
18.12 	certification.
18.13 		Subd. 3.Violations. (a) The commissioner may revoke a certification if the 
18.14 	producer fails to obtain certification on any additional land for which the producer obtains 
18.15 	effective control.
18.16 	(b) The commissioner may revoke a certification and seek reimbursement of any 
18.17 	monetary benefit a producer may have received due to certification from a producer who 
18.18 	fails to maintain certification criteria.
18.19 	(c) If the commissioner revokes a certification, the producer has ten days from the 
18.20 	date of suspension or revocation to appeal. If a producer appeals, the commissioner shall 
18.21 	hold an administrative hearing within 30 days of the suspension or revocation of the 
18.22 	certification, or longer by agreement of the parties, to determine whether the certification 
18.23 	is revoked or suspended. The commissioner shall issue an opinion within 30 days. If the 
18.24 	producer notifies the commissioner that the producer intends to contest the commissioner's 
18.25 	opinion, the Office of Administrative Hearings shall conduct a hearing in accordance with 
18.26 	the applicable provisions of chapter 14 for hearings in contested cases.

18.27 	Sec. 10. [17.9897] CERTIFICATION CERTAINTY.
18.28 	(a) Once a producer is certified, the producer:
18.29 	(1) retains certification for up to ten years from the date of certification if the 
18.30 	producer complies with the certification agreement, even if the producer does not comply 
18.31 	with new state water protection laws or rules that take effect during the certification period;
18.32 	(2) is presumed to be meeting the producer's contribution to any targeted reduction 
18.33 	of pollutants during the certification period;
19.1 	(3) is required to continue implementation of practices that maintain the producer's 
19.2 	certification; and
19.3 	(4) is required to retain all records pertaining to certification.
19.4 	(b) Paragraph (a) does not preclude enforcement of a local rule or ordinance by a 
19.5 	local unit of government.

19.6 	Sec. 11. [17.9898] AUDITS.
19.7 	The commissioner shall perform random audits of producers and certifying agents to 
19.8 	ensure compliance with the program. All producers and certifying agents shall cooperate 
19.9 	with the commissioner during these audits, and provide all relevant documents to the 
19.10 	commissioner for inspection and copying. Any delay, obstruction, or refusal to cooperate 
19.11 	with the commissioner's audit or falsification of or failure to provide required data or 
19.12 	information is a violation subject to the provisions of section 17.9895, subdivision 2, or 
19.13 	17.9896, subdivision 3.

19.14 	Sec. 12. [17.9899] DATA.
19.15 	All data collected under the program that identifies a producer or a producer's 
19.16 	location are considered nonpublic data as defined in section 13.02, subdivision 9, or 
19.17 	private data on individuals as defined in section 13.02, subdivision 12. The commissioner 
19.18 	shall make available summary data of program outcomes on data classified as private 
19.19 	or nonpublic under this section.

19.20 	Sec. 13. [17.991] RULEMAKING.
19.21 	The commissioner may adopt rules to implement the program.

19.22 	Sec. 14. [17.992] REPORTS.
19.23 	The commissioner, in consultation with the commissioner of natural resources, 
19.24 	commissioner of the Pollution Control Agency, and Board of Water and Soil Resources, 
19.25 	shall issue a biennial report to the chairs and ranking minority members of the legislative 
19.26 	committees with jurisdiction over agricultural policy on the status of the program.

19.27 	Sec. 15. [17.993] FINANCIAL ASSISTANCE.
19.28 	The commissioner may use contributions from gifts or other state accounts, provided 
19.29 	that the purpose of the expenditure is consistent with the purpose of the accounts, for 
19.30 	grants, loans, or other financial assistance.

20.1 	Sec. 16. Minnesota Statutes 2012, section 18.77, subdivision 3, is amended to read:
20.2 		Subd. 3.Control. "Control" means to destroy all or part of the aboveground 
20.3 	growth of noxious weeds manage or prevent the maturation and spread of propagating 
20.4 	parts of noxious weeds from one area to another by a lawful method that does not cause 
20.5 	unreasonable adverse effects on the environment as defined in section 18B.01, subdivision 
20.6 	31, and prevents the maturation and spread of noxious weed propagating parts from one 
20.7 	area to another.

20.8 	Sec. 17. Minnesota Statutes 2012, section 18.77, subdivision 4, is amended to read:
20.9 		Subd. 4.Eradicate. "Eradicate" means to destroy the aboveground growth and the 
20.10 	roots and belowground plant parts of noxious weeds by a lawful method that, which
20.11 	 prevents the maturation and spread of noxious weed propagating parts from one area 
20.12 	to another.

20.13 	Sec. 18. Minnesota Statutes 2012, section 18.77, subdivision 10, is amended to read:
20.14 		Subd. 10.Permanent pasture, hay meadow, woodlot, and or other noncrop 
20.15 	area. "Permanent pasture, hay meadow, woodlot, and or other noncrop area" means an 
20.16 	area of predominantly native or seeded perennial plants that can be used for grazing or hay 
20.17 	purposes but is not harvested on a regular basis and is not considered to be a growing crop.

20.18 	Sec. 19. Minnesota Statutes 2012, section 18.77, subdivision 12, is amended to read:
20.19 		Subd. 12.Propagating parts. "Propagating parts" means all plant parts, including 
20.20 	seeds, that are capable of producing new plants.

20.21 	Sec. 20. [18.771] NOXIOUS WEED CATEGORIES.
20.22 	(a) For purposes of this section, noxious weed category includes each of the 
20.23 	following categories.
20.24 	(b) "Prohibited noxious weeds" includes noxious weeds that must be controlled or 
20.25 	eradicated on all lands within the state. Transportation of a prohibited noxious weed's 
20.26 	propagating parts is restricted by permit except as allowed by section 18.82. Prohibited 
20.27 	noxious weeds may not be sold or propagated in Minnesota. There are two regulatory 
20.28 	listings for prohibited noxious weeds in Minnesota:
20.29 	(1) the noxious weed eradicate list is established. Prohibited noxious weeds placed 
20.30 	on the noxious weed eradicate list are plants that are not currently known to be present in 
20.31 	Minnesota or are not widely established. These species must be eradicated; and
21.1 	(2) the noxious weed control list is established. Prohibited noxious weeds placed on 
21.2 	the noxious weed control list are plants that are already established throughout Minnesota 
21.3 	or regions of the state. Species on this list must at least be controlled.
21.4 	(c) "Restricted noxious weeds" includes noxious weeds that are widely distributed 
21.5 	in Minnesota, but for which the only feasible means of control is to prevent their spread 
21.6 	by prohibiting the importation, sale, and transportation of their propagating parts in the 
21.7 	state, except as allowed by section 18.82.
21.8 	(d) "Specially regulated plants" includes noxious weeds that may be native 
21.9 	species or have demonstrated economic value, but also have the potential to cause harm 
21.10 	in noncontrolled environments. Plants designated as specially regulated have been 
21.11 	determined to pose ecological, economical, or human or animal health concerns. Species 
21.12 	specific management plans or rules that define the use and management requirements 
21.13 	for these plants must be developed by the commissioner of agriculture for each plant 
21.14 	designated as specially regulated. The commissioner must also take measures to minimize 
21.15 	the potential for harm caused by these plants.
21.16 	(e) "County noxious weeds" includes noxious weeds that are designated by 
21.17 	individual county boards to be enforced as prohibited noxious weeds within the county's 
21.18 	jurisdiction and must be approved by the commissioner of agriculture, in consultation with 
21.19 	the Noxious Weed Advisory Committee. Each county board must submit newly proposed 
21.20 	county noxious weeds to the commissioner of agriculture for review. Approved county 
21.21 	noxious weeds shall also be posted with the county's general weed notice prior to May 15 
21.22 	each year. Counties are solely responsible for developing county noxious weed lists and 
21.23 	their enforcement.

21.24 	Sec. 21. Minnesota Statutes 2012, section 18.78, subdivision 3, is amended to read:
21.25 		Subd. 3.Cooperative Weed control agreement. The commissioner, municipality, 
21.26 	or county agricultural inspector or county-designated employee may enter into a 
21.27 	cooperative weed control agreement with a landowner or weed management area 
21.28 	group to establish a mutually agreed-upon noxious weed management plan for up to 
21.29 	three years duration, whereby a noxious weed problem will be controlled without 
21.30 	additional enforcement action. If a property owner fails to comply with the noxious weed 
21.31 	management plan, an individual notice may be served.

21.32 	Sec. 22. Minnesota Statutes 2012, section 18.79, subdivision 6, is amended to read:
21.33 		Subd. 6.Training for control or eradication of noxious weeds. The commissioner 
21.34 	shall conduct initial training considered necessary for inspectors and county-designated 
22.1 	employees in the enforcement of the Minnesota Noxious Weed Law. The director of the
22.2 	 University of  Minnesota Extension Service may conduct educational programs for the 
22.3 	general public that will aid compliance with the Minnesota Noxious Weed Law. Upon 
22.4 	request, the commissioner may provide information and other technical assistance to the 
22.5 	county agricultural inspector or county-designated employee to aid in the performance of 
22.6 	responsibilities specified by the county board under section 18.81, subdivisions 1a and 1b.

22.7 	Sec. 23. Minnesota Statutes 2012, section 18.79, subdivision 13, is amended to read:
22.8 		Subd. 13.Noxious weed designation. The commissioner, in consultation with the 
22.9 	Noxious Weed Advisory Committee, shall determine which plants are noxious weeds 
22.10 	subject to control regulation under sections 18.76 to 18.91. The commissioner shall 
22.11 	prepare, publish, and revise as necessary, but at least once every three years, a list of 
22.12 	noxious weeds and their designated classification. The list must be distributed to the public 
22.13 	by the commissioner who may request the help of the University of Minnesota Extension, 
22.14 	the county agricultural inspectors, and any other organization the commissioner considers 
22.15 	appropriate to assist in the distribution. The commissioner may, in consultation with 
22.16 	the Noxious Weed Advisory Committee, accept and consider noxious weed designation 
22.17 	petitions from Minnesota citizens or Minnesota organizations or associations.

22.18 	Sec. 24. Minnesota Statutes 2012, section 18.82, subdivision 1, is amended to read:
22.19 		Subdivision 1.Permits. Except as provided in section 21.74, if a person wants to 
22.20 	transport along a public highway materials or equipment containing the propagating parts of 
22.21 	weeds designated as noxious by the commissioner, the person must secure a written permit 
22.22 	for transportation of the material or equipment from an inspector or county-designated 
22.23 	employee. Inspectors or county-designated employees may issue permits to persons 
22.24 	residing or operating within their jurisdiction. If the noxious weed propagating parts are 
22.25 	removed from materials and equipment or devitalized before being transported, a permit is 
22.26 	not needed A permit is not required for the transport of noxious weeds for the purpose 
22.27 	of destroying propagating parts at a Department of Agriculture-approved disposal site. 
22.28 	Anyone transporting noxious weed propagating parts for this purpose shall ensure that all 
22.29 	materials are contained in a manner that prevents escape during transport.

22.30 	Sec. 25. Minnesota Statutes 2012, section 18.91, subdivision 1, is amended to read:
22.31 		Subdivision 1.Duties. The commissioner shall consult with the Noxious Weed 
22.32 	Advisory Committee to advise the commissioner concerning responsibilities under 
22.33 	the noxious weed control program. The committee shall also evaluate species for 
23.1 	invasiveness, difficulty of control, cost of control, benefits, and amount of injury caused 
23.2 	by them. For each species evaluated, the committee shall recommend to the commissioner 
23.3 	on which noxious weed list or lists, if any, the species should be placed. Species currently
23.4 	 designated as prohibited or restricted noxious weeds or specially regulated plants must 
23.5 	be reevaluated every three years for a recommendation on whether or not they need to 
23.6 	remain on the noxious weed lists. The committee shall also advise the commissioner on 
23.7 	the implementation of the Minnesota Noxious Weed Law and assist the commissioner in 
23.8 	the development of management criteria for each noxious weed category. Members of 
23.9 	the committee are not entitled to reimbursement of expenses nor payment of per diem. 
23.10 	Members shall serve two-year terms with subsequent reappointment by the commissioner.

23.11 	Sec. 26. Minnesota Statutes 2012, section 18.91, subdivision 2, is amended to read:
23.12 		Subd. 2.Membership. The commissioner shall appoint members, which shall 
23.13 	include representatives from the following:
23.14 	(1) horticultural science, agronomy, and forestry at the University of Minnesota;
23.15 	(2) the nursery and landscape industry in Minnesota;
23.16 	(3) the seed industry in Minnesota;
23.17 	(4) the Department of Agriculture;
23.18 	(5) the Department of Natural Resources;
23.19 	(6) a conservation organization;
23.20 	(7) an environmental organization;
23.21 	(8) at least two farm organizations;
23.22 	(9) the county agricultural inspectors;
23.23 	(10) city, township, and county governments;
23.24 	(11) the Department of Transportation;
23.25 	(12) the University of Minnesota Extension;
23.26 	(13) the timber and forestry industry in Minnesota;
23.27 	(14) the Board of Water and Soil Resources; and
23.28 	(15) soil and water conservation districts.;
23.29 	(16) Minnesota Association of County Land Commissioners; and
23.30 	(17) members as needed.

23.31 	Sec. 27. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision 
23.32 	to read:
23.33 		Subd. 4a.Bulk pesticide storage facility. "Bulk pesticide storage facility" means a 
23.34 	facility that is required to have a permit under section 18B.14.

24.1 	Sec. 28. Minnesota Statutes 2012, section 18B.065, subdivision 2a, is amended to read:
24.2 		Subd. 2a.Disposal site requirement. (a) For agricultural waste pesticides, the 
24.3 	commissioner must designate a place in each county of the state that is available at least 
24.4 	every other year for persons to dispose of unused portions of agricultural pesticides. The 
24.5 	commissioner shall consult with the person responsible for solid waste management 
24.6 	and disposal in each county to determine an appropriate location and to advertise each 
24.7 	collection event. The commissioner may provide a collection opportunity in a county 
24.8 	more frequently if the commissioner determines that a collection is warranted.
24.9 	(b) For nonagricultural waste pesticides, the commissioner must provide a disposal 
24.10 	opportunity each year in each county or enter into a contract with a group of counties 
24.11 	under a joint powers agreement or contract for household hazardous waste disposal.
24.12 	(c) As provided under subdivision 7, the commissioner may enter into cooperative 
24.13 	agreements with local units of government to provide the collections required under 
24.14 	paragraph (a) or (b) and shall provide a local unit of government, as part of the cooperative 
24.15 	agreement, with funding for reasonable costs incurred including, but not limited to, related 
24.16 	supplies, transportation, advertising, and disposal costs as well as reasonable overhead 
24.17 	costs.
24.18 	(d) A person who collects waste pesticide under this section shall, on a form 
24.19 	provided or in a method approved by the commissioner, record information on each 
24.20 	waste pesticide product collected including, but not limited to, the quantity collected 
24.21 	and either the product name and its active ingredient or ingredients or the United States 
24.22 	Environmental Protection Agency registration number. The person must submit this 
24.23 	information to the commissioner at least annually by January 30.
24.24 	(e) Notwithstanding the recording and reporting requirements of paragraph (d), 
24.25 	persons are not required to record or report agricultural or nonagricultural waste pesticide 
24.26 	collected in the remainder of 2013, 2014, and 2015. The commissioner shall analyze 
24.27 	existing collection data to identify trends that will inform future collection strategies to 
24.28 	better meet the needs and nature of current waste pesticide streams. By January 15, 2015, 
24.29 	the commissioner shall report analysis, recommendations, and proposed policy changes to 
24.30 	this program to legislative committees with jurisdiction over agriculture finance and policy.

24.31 	EFFECTIVE DATE. This section is effective the day following final enactment 
24.32 	and applies to waste pesticide collected on or after that date through the end of 2015.

24.33 	Sec. 29. Minnesota Statutes 2012, section 18B.07, subdivision 4, is amended to read:
24.34 		Subd. 4.Pesticide storage safeguards at application sites. A person may not 
24.35 	allow a pesticide, rinsate, or unrinsed pesticide container to be stored, kept, or to remain in 
25.1 	or on any site without safeguards adequate to prevent an incident. Pesticides may not be 
25.2 	stored in any location with an open drain.

25.3 	Sec. 30. Minnesota Statutes 2012, section 18B.07, subdivision 5, is amended to read:
25.4 		Subd. 5.Use of public water supplies for filling application equipment. (a) A 
25.5 	person may not fill pesticide application equipment directly from a public water supply, 
25.6 	as defined in section 144.382, or from public waters, as defined in section 103G.005, 
25.7 	subdivision 15, unless the outlet from the publicequipment or water supply is equipped 
25.8 	with a backflow prevention device that complies with the Minnesota Plumbing Code 
25.9 	under Minnesota Rules, parts 4715.2000 to 4715.2280.
25.10 	(b) Cross connections between a water supply used for filling pesticide application 
25.11 	equipment are prohibited.
25.12 	(c) This subdivision does not apply to permitted applications of aquatic pesticides to 
25.13 	public waters.

25.14 	Sec. 31. Minnesota Statutes 2012, section 18B.07, subdivision 7, is amended to read:
25.15 		Subd. 7.Cleaning equipment in or near surface water Pesticide handling 
25.16 	restrictions. (a) A person may not: fill or clean pesticide application equipment where 
25.17 	pesticides or materials contaminated with pesticides could enter ditches, surface water, 
25.18 	groundwater, wells, drains, or sewers. For wells, the setbacks established in Minnesota 
25.19 	Rules, part 4725.4450, apply.
25.20 	(1) clean pesticide application equipment in surface waters of the state; or
25.21 	(2) fill or clean pesticide application equipment adjacent to surface waters, 
25.22 	ditches, or wells where, because of the slope or other conditions, pesticides or materials 
25.23 	contaminated with pesticides could enter or contaminate the surface waters, groundwater, 
25.24 	or wells, as a result of overflow, leakage, or other causes.
25.25 	(b) This subdivision does not apply to permitted application of aquatic pesticides to 
25.26 	public waters.

25.27 	Sec. 32. Minnesota Statutes 2012, section 18B.26, subdivision 3, is amended to read:
25.28 		Subd. 3.Registration application and gross sales fee. (a) For an agricultural 
25.29 	pesticide, a registrant shall pay an annual registration application fee for each agricultural 
25.30 	pesticide of $350. The fee is due by December 31 preceding the year for which the 
25.31 	application for registration is made. The fee is nonrefundable.
25.32 	(b) For a nonagricultural pesticide, a registrant shall pay a minimum annual 
25.33 	registration application fee for each nonagricultural pesticide of $350. The fee is due by 
26.1 	December 31 preceding the year for which the application for registration is made. The 
26.2 	fee is nonrefundable. The registrant of a nonagricultural pesticide shall pay, in addition to 
26.3 	the $350 minimum fee, a fee of 0.5 percent of annual gross sales of the nonagricultural 
26.4 	pesticide in the state and the annual gross sales of the nonagricultural pesticide sold into 
26.5 	the state for use in this state. The commissioner may not assess a fee under this paragraph 
26.6 	if the amount due based on percent of annual gross sales is less than $10 No fee is required 
26.7 	if the fee due amount based on percent of annual gross sales of a nonagricultural pesticide 
26.8 	is less than $10. The registrant shall secure sufficient sales information of nonagricultural 
26.9 	pesticides distributed into this state from distributors and dealers, regardless of distributor 
26.10 	location, to make a determination. Sales of nonagricultural pesticides in this state and 
26.11 	sales of nonagricultural pesticides for use in this state by out-of-state distributors are not 
26.12 	exempt and must be included in the registrant's annual report, as required under paragraph 
26.13 	(g), and fees shall be paid by the registrant based upon those reported sales. Sales of 
26.14 	nonagricultural pesticides in the state for use outside of the state are exempt from the 
26.15 	gross sales fee in this paragraph if the registrant properly documents the sale location and 
26.16 	distributors. A registrant paying more than the minimum fee shall pay the balance due by 
26.17 	March 1 based on the gross sales of the nonagricultural pesticide by the registrant for the 
26.18 	preceding calendar year. A pesticide determined by the commissioner to be a sanitizer or 
26.19 	disinfectant is exempt from the gross sales fee.
26.20 	(c) For agricultural pesticides, a licensed agricultural pesticide dealer or licensed 
26.21 	pesticide dealer shall pay a gross sales fee of 0.55 percent of annual gross sales of the 
26.22 	agricultural pesticide in the state and the annual gross sales of the agricultural pesticide 
26.23 	sold into the state for use in this state.
26.24 	(d) In those cases where a registrant first sells an agricultural pesticide in or into the 
26.25 	state to a pesticide end user, the registrant must first obtain an agricultural pesticide dealer 
26.26 	license and is responsible for payment of the annual gross sales fee under paragraph (c), 
26.27 	record keeping under paragraph (i), and all other requirements of section 18B.316.
26.28 	(e) If the total annual revenue from fees collected in fiscal year 2011, 2012, or 2013, 
26.29 	by the commissioner on the registration and sale of pesticides is less than $6,600,000, the 
26.30 	commissioner, after a public hearing, may increase proportionally the pesticide sales and 
26.31 	product registration fees under this chapter by the amount necessary to ensure this level 
26.32 	of revenue is achieved. The authority under this section expires on June 30, 2014. The 
26.33 	commissioner shall report any fee increases under this paragraph 60 days before the fee 
26.34 	change is effective to the senate and house of representatives agriculture budget divisions.
27.1 	(f) An additional fee of 50 percent of the registration application fee must be paid by 
27.2 	the applicant for each pesticide to be registered if the application is a renewal application 
27.3 	that is submitted after December 31.
27.4 	(g) A registrant must annually report to the commissioner the amount, type and 
27.5 	annual gross sales of each registered nonagricultural pesticide sold, offered for sale, or 
27.6 	otherwise distributed in the state. The report shall be filed by March 1 for the previous 
27.7 	year's registration. The commissioner shall specify the form of the report or approve 
27.8 	the method for submittal of the report and may require additional information deemed 
27.9 	necessary to determine the amount and type of nonagricultural pesticide annually 
27.10 	distributed in the state. The information required shall include the brand name, United 
27.11 	States Environmental Protection Agency registration number, and amount of each 
27.12 	nonagricultural pesticide sold, offered for sale, or otherwise distributed in the state, but 
27.13 	the information collected, if made public, shall be reported in a manner which does not 
27.14 	identify a specific brand name in the report.
27.15 	(h) A licensed agricultural pesticide dealer or licensed pesticide dealer must annually 
27.16 	report to the commissioner the amount, type, and annual gross sales of each registered 
27.17 	agricultural pesticide sold, offered for sale, or otherwise distributed in the state or into the 
27.18 	state for use in the state. The report must be filed by January 31 for the previous year's 
27.19 	sales. The commissioner shall specify the form, contents, and approved electronic method 
27.20 	for submittal of the report and may require additional information deemed necessary to 
27.21 	determine the amount and type of agricultural pesticide annually distributed within the 
27.22 	state or into the state. The information required must include the brand name, United States 
27.23 	Environmental Protection Agency registration number, and amount of each agricultural 
27.24 	pesticide sold, offered for sale, or otherwise distributed in the state or into the state.
27.25 	(i) A person who registers a pesticide with the commissioner under paragraph (b), 
27.26 	or a registrant under paragraph (d), shall keep accurate records for five years detailing 
27.27 	all distribution or sales transactions into the state or in the state and subject to a fee and 
27.28 	surcharge under this section.
27.29 	(j) The records are subject to inspection, copying, and audit by the commissioner 
27.30 	and must clearly demonstrate proof of payment of all applicable fees and surcharges 
27.31 	for each registered pesticide product sold for use in this state. A person who is located 
27.32 	outside of this state must maintain and make available records required by this subdivision 
27.33 	in this state or pay all costs incurred by the commissioner in the inspecting, copying, or 
27.34 	auditing of the records.
28.1 	(k) The commissioner may adopt by rule regulations that require persons subject 
28.2 	to audit under this section to provide information determined by the commissioner to be 
28.3 	necessary to enable the commissioner to perform the audit.
28.4 	(l) A registrant who is required to pay more than the minimum fee for any pesticide 
28.5 	under paragraph (b) must pay a late fee penalty of $100 for each pesticide application fee 
28.6 	paid after March 1 in the year for which the license is to be issued.

28.7 	Sec. 33. Minnesota Statutes 2012, section 18B.305, is amended to read:
28.8 	18B.305 PESTICIDE EDUCATION AND TRAINING.
28.9 		Subdivision 1.Education and training. (a) The commissioner, as the lead agency,
28.10 	 shall develop, implement or approve, and evaluate, in conjunction consultation with the
28.11 	 University of Minnesota Extension Service, the Minnesota State Colleges and Universities 
28.12 	system, and other educational institutions, innovative educational and training programs 
28.13 	addressing pesticide concerns including:
28.14 	(1) water quality protection;
28.15 	(2) endangered species protection;
28.16 	(3) minimizing pesticide residues in food and water;
28.17 	(4) worker protection and applicator safety;
28.18 	(5) chronic toxicity;
28.19 	(6) integrated pest management and pest resistance; and
28.20 	(7) pesticide disposal;
28.21 	(8) pesticide drift;
28.22 	(9) relevant laws including pesticide labels and labeling and state and federal rules 
28.23 	and regulations; and
28.24 	(10) current science and technology updates.
28.25 	(b) The commissioner shall appoint educational planning committees which must 
28.26 	include representatives of industry and applicators.
28.27 	(c) Specific current regulatory concerns must be discussed and, if appropriate, 
28.28 	incorporated into each training session. Relevant changes to pesticide product labels or 
28.29 	labeling or state and federal rules and regulations may be included.
28.30 	(d) The commissioner may approve programs from private industry, higher 
28.31 	education institutions, and nonprofit organizations that meet minimum requirements for 
28.32 	education, training, and certification.
28.33 		Subd. 2.Training manual and examination development. The commissioner, 
28.34 	in conjunction with the University of Minnesota Extension Service and other higher 
28.35 	education institutions, shall continually revise and update pesticide applicator training 
29.1 	manuals and examinations. The manuals and examinations must be written to meet or 
29.2 	exceed the minimum standards required by the United States Environmental Protection 
29.3 	Agency and pertinent state specific information. Questions in the examinations must be 
29.4 	determined by the commissioner in consultation with other responsible agencies. Manuals 
29.5 	and examinations must include pesticide management practices that discuss prevention of 
29.6 	pesticide occurrence in groundwaters groundwater and surface water of the state.

29.7 	Sec. 34. Minnesota Statutes 2012, section 18B.316, subdivision 1, is amended to read:
29.8 		Subdivision 1.Requirement. (a) A person must not distribute offer for sale or sell 
29.9 	an agricultural pesticide in the state or into the state without first obtaining an agricultural 
29.10 	pesticide dealer license.
29.11 	(b) Each location or place of business from which an agricultural pesticide is 
29.12 	distributed offered for sale or sold in the state or into the state is required to have a 
29.13 	separate agricultural pesticide dealer license.
29.14 	(c) A person who is a licensed pesticide dealer under section 18B.31 is not required 
29.15 	to also be licensed under this subdivision.

29.16 	Sec. 35. Minnesota Statutes 2012, section 18B.316, subdivision 3, is amended to read:
29.17 		Subd. 3.Resident agent. A person required to be licensed under subdivisions 1 
29.18 	and 2, or a person licensed as a pesticide dealer pursuant to section 18B.31 and who 
29.19 	operates from a location or place of business outside the state and who distributes offers 
29.20 	for sale or sells an agricultural pesticide into the state, must continuously maintain in 
29.21 	this state the following:
29.22 	(1) a registered office; and
29.23 	(2) a registered agent, who may be either a resident of this state whose business 
29.24 	office or residence is identical with the registered office under clause (1), a domestic 
29.25 	corporation or limited liability company, or a foreign corporation of limited liability 
29.26 	company authorized to transact business in this state and having a business office identical 
29.27 	with the registered office.
29.28 	A person licensed under this section or section 18B.31 shall annually file with the 
29.29 	commissioner, either at the time of initial licensing or as part of license renewal, the name, 
29.30 	address, telephone number, and e-mail address of the licensee's registered agent.
29.31 	For licensees under section 18B.31 who are located in the state, the licensee is 
29.32 	the registered agent.

29.33 	Sec. 36. Minnesota Statutes 2012, section 18B.316, subdivision 4, is amended to read:
30.1 		Subd. 4.Responsibility. The resident agent is responsible for the acts of a licensed 
30.2 	agricultural pesticide dealer, or of a licensed pesticide dealer under section 18B.31 who 
30.3 	operates from a location or place of business outside the state and who distributes offers 
30.4 	for sale or sells an agricultural pesticide into the state, as well as the acts of the employees 
30.5 	of those licensees.

30.6 	Sec. 37. Minnesota Statutes 2012, section 18B.316, subdivision 8, is amended to read:
30.7 		Subd. 8.Report of sales and payment to commissioner. A person who is an 
30.8 	agricultural pesticide dealer, or is a licensed pesticide dealer under section 18B.31, who 
30.9 	distributes offers for sale or sells an agricultural pesticide in or into the state, and a 
30.10 	pesticide registrant pursuant to section 18B.26, subdivision 3, paragraph (d), shall no 
30.11 	later than January 31 of each year report and pay applicable fees on annual gross sales 
30.12 	of agricultural pesticides to the commissioner pursuant to requirements under section 
30.13 	18B.26, subdivision 3, paragraphs (c) and (h).

30.14 	Sec. 38. Minnesota Statutes 2012, section 18B.316, subdivision 9, is amended to read:
30.15 		Subd. 9.Application. (a) A person must apply to the commissioner for an 
30.16 	agricultural pesticide dealer license on forms and in a manner approved by the 
30.17 	commissioner.
30.18 	(b) The applicant must be the person in charge of each location or place of business 
30.19 	from which agricultural pesticides are distributed offered for sale or sold in or into the state.
30.20 	(c) The commissioner may require that the applicant provide information regarding 
30.21 	the applicant's proposed operations and other information considered pertinent by the 
30.22 	commissioner.
30.23 	(d) The commissioner may require additional demonstration of licensee qualification 
30.24 	if the licensee has had a license suspended or revoked, or has otherwise had a history of 
30.25 	violations in another state or violations of this chapter.
30.26 	(e) A licensed agricultural pesticide dealer who changes the dealer's address or place 
30.27 	of business must immediately notify the commissioner of the change.
30.28 	(f) Beginning January 1, 2011, an application for renewal of an agricultural pesticide 
30.29 	dealer license is complete only when a report and any applicable payment of fees under 
30.30 	subdivision 8 are received by the commissioner.

30.31 	Sec. 39. Minnesota Statutes 2012, section 18B.37, subdivision 4, is amended to read:
30.32 		Subd. 4.Storage, handling, Incident response, and disposal plan. A pesticide 
30.33 	dealer, agricultural pesticide dealer, or a commercial, noncommercial, or structural pest 
31.1 	control applicator or the business that the applicator is employed by business must develop 
31.2 	and maintain a an incident response plan that describes its pesticide storage, handling, 
31.3 	incident response, and disposal practices the actions that will be taken to prevent and 
31.4 	respond to pesticide incidents. The plan must contain the same information as forms 
31.5 	provided by the commissioner. The plan must be kept at a principal business site or location 
31.6 	within this state and must be submitted to the commissioner upon request on forms provided 
31.7 	by the commissioner. The plan must be available for inspection by the commissioner.

31.8 	Sec. 40. Minnesota Statutes 2012, section 18C.430, is amended to read:
31.9 	18C.430 COMMERCIAL ANIMAL WASTE TECHNICIAN.
31.10 		Subdivision 1.Requirement. (a) Except as provided in paragraph (c), after March 
31.11 	1, 2000, A person may not manage or apply animal wastes to the land for hire without a 
31.12 	valid commercial animal waste technician license. This section does not apply to a person 
31.13 	managing or applying animal waste on land managed by the person's employer.:
31.14 	(1) without a valid commercial animal waste technician applicator license;
31.15 	(2) without a valid commercial animal waste technician site manager license; or
31.16 	(3) as a sole proprietorship, company, partnership, or corporation unless a 
31.17 	commercial animal waste technician company license is held and a commercial animal 
31.18 	waste technical site manager is employed by the entity.
31.19 	(b) A person managing or applying animal wastes for hire must have a valid 
31.20 	license identification card when managing or applying animal wastes for hire and must 
31.21 	display it upon demand by an authorized representative of the commissioner or a law 
31.22 	enforcement officer. The commissioner shall prescribe the information required on the 
31.23 	license identification card.
31.24 	(c) A person who is not a licensed commercial animal waste technician who has had 
31.25 	at least two hours of training or experience in animal waste management may manage 
31.26 	or apply animal waste for hire under the supervision of a commercial animal waste 
31.27 	technician. A commercial animal waste technician applicator must have a minimum of 
31.28 	two hours of certification training in animal waste management and may only manage or 
31.29 	apply animal waste for hire under the supervision of a commercial animal waste technician 
31.30 	site manager. The commissioner shall prescribe the conditions of the supervision and the 
31.31 	form and format required on the certification training.
31.32 	(d) This section does not apply to a person managing or applying animal waste on 
31.33 	land managed by the person's employer.
31.34 		Subd. 2.Responsibility. A person required to be licensed under this section who 
31.35 	performs animal waste management or application for hire or who employs a person to 
32.1 	perform animal waste management or application for compensation is responsible for 
32.2 	proper management or application of the animal wastes.
32.3 		Subd. 3.License. (a) A commercial animal waste technician license, including 
32.4 	applicator, site manager, and company:
32.5 	(1) is valid for three years one year and expires on December 31 of the third year for 
32.6 	which it is issued, unless suspended or revoked before that date;
32.7 	(2) is not transferable to another person; and
32.8 	(3) must be prominently displayed to the public in the commercial animal waste 
32.9 	technician's place of business.
32.10 	(b) The commercial animal waste technician company license number assigned by 
32.11 	the commissioner must appear on the application equipment when a person manages 
32.12 	or applies animal waste for hire.
32.13 		Subd. 4.Application. (a) A person must apply to the commissioner for a commercial 
32.14 	animal waste technician license on forms and in the manner required by the commissioner 
32.15 	and must include the application fee. The commissioner shall prescribe and administer 
32.16 	an examination or equivalent measure to determine if the applicant is eligible for the 
32.17 	commercial animal waste technician license, site manager license, or applicator license.
32.18 	(b) The commissioner of agriculture, in cooperation with theUniversity of 
32.19 	Minnesota Extension Service and appropriate educational institutions, shall establish and 
32.20 	implement a program for training and licensing commercial animal waste technicians.
32.21 		Subd. 5.Renewal application. (a) A person must apply to the commissioner of 
32.22 	agriculture to renew a commercial animal waste technician license and must include the 
32.23 	application fee. The commissioner may renew a commercial animal waste technician 
32.24 	applicator or site manager license, subject to reexamination, attendance at workshops 
32.25 	approved by the commissioner, or other requirements imposed by the commissioner to 
32.26 	provide the animal waste technician with information regarding changing technology and 
32.27 	to help ensure a continuing level of competence and ability to manage and apply animal 
32.28 	wastes properly. The applicant may renew a commercial animal waste technician license 
32.29 	within 12 months after expiration of the license without having to meet initial testing 
32.30 	requirements. The commissioner may require additional demonstration of animal waste 
32.31 	technician qualification if a person has had a license suspended or revoked or has had a 
32.32 	history of violations of this section.
32.33 	(b) An applicant who meets renewal requirements by reexamination instead 
32.34 	of attending workshops must pay a fee for the reexamination as determined by the 
32.35 	commissioner.
33.1 		Subd. 6.Financial responsibility. (a) A commercial animal waste technician 
33.2 	license may not be issued unless the applicant furnishes proof of financial responsibility. 
33.3 	The financial responsibility may be demonstrated by (1) proof of net assets equal to or 
33.4 	greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount 
33.5 	determined by the commissioner of agriculture.
33.6 	(b) The bond or insurance must cover a period of time at least equal to the term of 
33.7 	the applicant's license. The commissioner shall immediately suspend the license of a 
33.8 	person who fails to maintain the required bond or insurance.
33.9 	(c) An employee of a licensed person is not required to maintain an insurance policy 
33.10 	or bond during the time the employer is maintaining the required insurance or bond.
33.11 	(d) Applications for reinstatement of a license suspended under paragraph (b) must 
33.12 	be accompanied by proof of satisfaction of judgments previously rendered.
33.13 		Subd. 7.Application fee. (a) A person initially applying for or renewing 
33.14 	a commercial animal waste technician applicator license must pay a nonrefundable 
33.15 	application fee of $50 and a fee of $10 for each additional identification card requested.
33.16 	 $25. A person initially applying for or renewing a commercial animal waste technician 
33.17 	site manager license must pay a nonrefundable application fee of $50. A person initially 
33.18 	applying for or renewing a commercial animal waste technician company license must 
33.19 	pay a nonrefundable application fee of $100.
33.20 	(b) A license renewal application received after March 1 in the year for which the 
33.21 	license is to be issued is subject to a penalty fee of 50 percent of the application fee. The 
33.22 	penalty fee must be paid before the renewal license may be issued.
33.23 	(c) An application for a duplicate commercial animal waste technician license must 
33.24 	be accompanied by a nonrefundable fee of $10.

33.25 	Sec. 41. Minnesota Statutes 2012, section 18C.433, subdivision 1, is amended to read:
33.26 		Subdivision 1.Requirement. Beginning January 1, 2006, only a commercial 
33.27 	animal waste technician, site manager or commercial animal waste technician applicator
33.28 	 may apply animal waste from a feedlot that:
33.29 	(1) has a capacity of 300 animal units or more; and
33.30 	(2) does not have an updated manure management plan that meets the requirements 
33.31 	of Pollution Control Agency rules.

33.32 	Sec. 42. Minnesota Statutes 2012, section 31.94, is amended to read:
33.33 	31.94 COMMISSIONER DUTIES.
34.1 	(a) In order to promote opportunities for organic agriculture in Minnesota, the 
34.2 	commissioner shall:
34.3 	(1) survey producers and support services and organizations to determine 
34.4 	information and research needs in the area of organic agriculture practices;
34.5 	(2) work with the University of Minnesota to demonstrate the on-farm applicability 
34.6 	of organic agriculture practices to conditions in this state;
34.7 	(3) direct the programs of the department so as to work toward the promotion of 
34.8 	organic agriculture in this state;
34.9 	(4) inform agencies of how state or federal programs could utilize and support 
34.10 	organic agriculture practices; and
34.11 	(5) work closely with producers, the University of Minnesota, the Minnesota Trade 
34.12 	Office, and other appropriate organizations to identify opportunities and needs as well 
34.13 	as ensure coordination and avoid duplication of state agency efforts regarding research, 
34.14 	teaching, marketing, and extension work relating to organic agriculture.
34.15 	(b) By November 15 of each year that ends in a zero or a five, the commissioner, 
34.16 	in conjunction with the task force created in paragraph (c), shall report on the status of 
34.17 	organic agriculture in Minnesota to the legislative policy and finance committees and 
34.18 	divisions with jurisdiction over agriculture. The report must include available data on 
34.19 	organic acreage and production, available data on the sales or market performance of 
34.20 	organic products, and recommendations regarding programs, policies, and research efforts 
34.21 	that will benefit Minnesota's organic agriculture sector.
34.22 	(c) A Minnesota Organic Advisory Task Force shall advise the commissioner and the 
34.23 	University of Minnesota on policies and programs that will improve organic agriculture in 
34.24 	Minnesota, including how available resources can most effectively be used for outreach, 
34.25 	education, research, and technical assistance that meet the needs of the organic agriculture 
34.26 	community. The task force must consist of the following residents of the state:
34.27 	(1) three organic farmers using organic agriculture methods;
34.28 	(2) one wholesaler or distributor of organic products;
34.29 	(3) one representative of organic certification agencies;
34.30 	(4) two organic processors;
34.31 	(5) one representative from University of Minnesota Extension;
34.32 	(6) one University of Minnesota faculty member;
34.33 	(7) one representative from a nonprofit organization representing producers;
34.34 	(8) two public members;
34.35 	(9) one representative from the United States Department of Agriculture;
34.36 	(10) one retailer of organic products; and
35.1 	(11) one organic consumer representative.
35.2 	The commissioner, in consultation with the director of the Minnesota Agricultural 
35.3 	Experiment Station; the dean and director of University of Minnesota Extension; and the 
35.4 	dean of the College of Food, Agricultural and Natural Resource Sciences, shall appoint 
35.5 	members to serve staggered two-year three-year terms.
35.6 	Compensation and removal of members are governed by section 15.059, subdivision 
35.7 	6. The task force must meet at least twice each year and expires on June 30, 2013 2016.
35.8 	(d) For the purposes of expanding, improving, and developing production and 
35.9 	marketing of the organic products of Minnesota agriculture, the commissioner may 
35.10 	receive funds from state and federal sources and spend them, including through grants or 
35.11 	contracts, to assist producers and processors to achieve certification, to conduct education 
35.12 	or marketing activities, to enter into research and development partnerships, or to address 
35.13 	production or marketing obstacles to the growth and well-being of the industry.
35.14 	(e) The commissioner may facilitate the registration of state organic production 
35.15 	and handling operations including those exempt from organic certification according to 
35.16 	Code of Federal Regulations, title 7, section 205.101, and certification agents operating 
35.17 	within the state.

35.18 	Sec. 43. Minnesota Statutes 2012, section 41A.10, subdivision 2, is amended to read:
35.19 		Subd. 2.Cellulosic biofuel production goal. The state cellulosic biofuel production 
35.20 	goal is one-quarter of the total amount necessary for ethanol biofuel use required under 
35.21 	section 239.791, subdivision 1a 1, by 2015 or when cellulosic biofuel facilities in the state 
35.22 	attain a total annual production level of 60,000,000 gallons, whichever is first.

35.23 	Sec. 44. Minnesota Statutes 2012, section 41A.10, is amended by adding a subdivision 
35.24 	to read:
35.25 		Subd. 3.Expiration. This section expires January 1, 2015.

35.26 	Sec. 45. Minnesota Statutes 2012, section 41A.105, subdivision 1a, is amended to read:
35.27 		Subd. 1a.Definitions. For the purpose of this section:
35.28 	(1) "biobased content" means a chemical, polymer, monomer, or plastic that is not 
35.29 	sold primarily for use as food, feed, or fuel and that has a biobased percentage of at least 
35.30 	51 percent as determined by testing representative samples using American Society for 
35.31 	Testing and Materials specification D6866;
35.32 	(2) "biobased formulated product" means a product that is not sold primarily for use 
35.33 	as food, feed, or fuel and that has a biobased content percentage of at least ten percent 
36.1 	as determined by testing representative samples using American Society for Testing 
36.2 	and Materials specification D6866, or that contains a biobased chemical constituent 
36.3 	that displaces a known hazardous or toxic constituent previously used in the product 
36.4 	formulation;
36.5 	(1) (3) "biobutanol facility" means a facility at which biobutanol is produced; and
36.6 	(2) (4) "biobutanol" means fermentation isobutyl alcohol that is derived from 
36.7 	agricultural products, including potatoes, cereal grains, cheese whey, and sugar beets; 
36.8 	forest products; or other renewable resources, including residue and waste generated 
36.9 	from the production, processing, and marketing of agricultural products, forest products, 
36.10 	and other renewable resources.

36.11 	Sec. 46. Minnesota Statutes 2012, section 41A.105, subdivision 3, is amended to read:
36.12 		Subd. 3.Duties. The board shall research and report to the commissioner of 
36.13 	agriculture and to the legislature recommendations as to how the state can invest its 
36.14 	resources to most efficiently achieve energy independence, agricultural and natural 
36.15 	resources sustainability, and rural economic vitality. The board shall:
36.16 	(1) examine the future of fuels, such as synthetic gases, biobutanol, hydrogen, 
36.17 	methanol, biodiesel, and ethanol within Minnesota;
36.18 	(2) examine the opportunity for biobased content and biobased formulated product 
36.19 	production at integrated biorefineries or stand alone facilities using agricultural and 
36.20 	forestry feedstocks;
36.21 	(2) (3) develop equity grant programs to assist locally owned facilities;
36.22 	(3) (4) study the proper role of the state in creating financing and investing and 
36.23 	providing incentives;
36.24 	(4) (5) evaluate how state and federal programs, including the Farm Bill, can best 
36.25 	work together and leverage resources;
36.26 	(5) (6) work with other entities and committees to develop a clean energy program; 
36.27 	and
36.28 	(6) (7) report to the legislature before February 1 each year with recommendations 
36.29 	as to appropriations and results of past actions and projects.

36.30 	Sec. 47. Minnesota Statutes 2012, section 41A.105, subdivision 5, is amended to read:
36.31 		Subd. 5.Expiration. This section expires June 30, 2014 2015.

36.32 	Sec. 48. Minnesota Statutes 2012, section 41A.12, is amended by adding a subdivision 
36.33 	to read:
37.1 		Subd. 3a.Grant awards. Grant projects may continue for up to three years. 
37.2 	Multiyear projects must be reevaluated by the commissioner before second- and third-year 
37.3 	funding is approved. A project is limited to one grant for its funding.

37.4 	Sec. 49. Minnesota Statutes 2012, section 41B.04, subdivision 9, is amended to read:
37.5 		Subd. 9.Restructured loan agreement. (a) For a deferred restructured loan, all 
37.6 	payments on the primary and secondary principal, all payments of interest on the secondary 
37.7 	principal, and an agreed portion of the interest payable to the eligible agricultural lender 
37.8 	on the primary principal must be deferred to the end of the term of the loan.
37.9 	(b) Interest on secondary principal must accrue at a below market interest rate.
37.10 	(c) At the conclusion of the term of the restructured loan, the borrower owes primary 
37.11 	principal, secondary principal, and deferred interest on primary and secondary principal. 
37.12 	However, part of this balloon payment may be forgiven following an appraisal by the 
37.13 	lender and the authority to determine the current market value of the real estate subject to 
37.14 	the mortgage. If the current market value of the land after appraisal is less than the amount 
37.15 	of debt owed by the borrower to the lender and authority on this obligation, that portion of 
37.16 	the obligation that exceeds the current market value of the real property must be forgiven 
37.17 	by the lender and the authority in the following order:
37.18 	(1) deferred interest on secondary principal;
37.19 	(2) secondary principal;
37.20 	(3) deferred interest on primary principal;
37.21 	(4) primary principal as provided in an agreement between the authority and the 
37.22 	lender; and
37.23 	(5) accrued but not deferred interest on primary principal.
37.24 	(d) For an amortized restructured loan, payments must include installments on 
37.25 	primary principal and interest on the primary principal. An amortized restructured loan 
37.26 	must be amortized over a time period and upon terms to be established by the authority by 
37.27 	rule.
37.28 	(e) A borrower may prepay the restructured loan, with all primary and secondary 
37.29 	principal and interest and deferred interest at any time without prepayment penalty.
37.30 	(f) The authority may not participate in refinancing a restructured loan at the 
37.31 	conclusion of the restructured loan.

37.32 	Sec. 50. Minnesota Statutes 2012, section 41D.01, subdivision 4, is amended to read:
37.33 		Subd. 4.Expiration. This section expires on June 30, 2013 2018.

38.1 	Sec. 51. Minnesota Statutes 2012, section 116J.437, subdivision 1, is amended to read:
38.2 		Subdivision 1.Definitions. (a) For the purpose of this section, the following terms 
38.3 	have the meanings given.
38.4 	(b) "Green economy" means products, processes, methods, technologies, or services 
38.5 	intended to do one or more of the following:
38.6 	(1) increase the use of energy from renewable sources, including through achieving 
38.7 	the renewable energy standard established in section 216B.1691;
38.8 	(2) achieve the statewide energy-savings goal established in section 216B.2401, 
38.9 	including energy savings achieved by the conservation investment program under section 
38.10 	216B.241;
38.11 	(3) achieve the greenhouse gas emission reduction goals of section 216H.02, 
38.12 	subdivision 1, including through reduction of greenhouse gas emissions, as defined in 
38.13 	section 216H.01, subdivision 2, or mitigation of the greenhouse gas emissions through, 
38.14 	but not limited to, carbon capture, storage, or sequestration;
38.15 	(4) monitor, protect, restore, and preserve the quality of surface waters, including 
38.16 	actions to further the purposes of the Clean Water Legacy Act as provided in section 
38.17 	114D.10, subdivision 1;
38.18 	(5) expand the use of biofuels, including by expanding the feasibility or reducing the 
38.19 	cost of producing biofuels or the types of equipment, machinery, and vehicles that can 
38.20 	use biofuels, including activities to achieve the biofuels 25 by 2025 initiative in sections 
38.21 	41A.10, subdivision 2, and 41A.11 petroleum replacement goal in section 239.7911; or
38.22 	(6) increase the use of green chemistry, as defined in section 116.9401.
38.23 	For the purpose of clause (3), "green economy" includes strategies that reduce carbon 
38.24 	emissions, such as utilizing existing buildings and other infrastructure, and utilizing mass 
38.25 	transit or otherwise reducing commuting for employees.

38.26 	Sec. 52. Minnesota Statutes 2012, section 216E.12, subdivision 4, is amended to read:
38.27 		Subd. 4.Contiguous land. (a) When private real property that is an agricultural or 
38.28 	nonagricultural homestead, nonhomestead agricultural land, rental residential property, 
38.29 	and both commercial and noncommercial seasonal residential recreational property, as 
38.30 	those terms are defined in section 273.13 is proposed to be acquired for the construction of 
38.31 	a site or route for a high-voltage transmission line with a capacity of 200 kilovolts or more 
38.32 	by eminent domain proceedings, the fee owner, or when applicable, the fee owner with the 
38.33 	written consent of the contract for deed vendee, or the contract for deed vendee with the 
38.34 	written consent of the fee owner, shall have the option to require the utility to condemn a 
38.35 	fee interest in any amount of contiguous, commercially viable land which the owner or 
39.1 	vendee wholly owns or has contracted to own in undivided fee and elects in writing to 
39.2 	transfer to the utility within 60 days after receipt of the notice of the objects of the petition 
39.3 	filed pursuant to section 117.055. Commercial viability shall be determined without regard 
39.4 	to the presence of the utility route or site. Within 60 days after receipt by the utility of 
39.5 	an owner's election to exercise this option, the utility shall provide written notice to the 
39.6 	owner of any objection the utility has to the owner's election, and if no objection is made 
39.7 	within that time, any objection shall be deemed waived. Within 90 days of the service of 
39.8 	an objection by the utility, the district court having jurisdiction over the eminent domain 
39.9 	proceeding shall hold a hearing to determine whether the utility's objection is upheld or 
39.10 	rejected. The owner or, when applicable, the contract vendee shall have only one such 
39.11 	option and may not expand or otherwise modify an election without the consent of the 
39.12 	utility. The required acquisition of land pursuant to this subdivision shall be considered 
39.13 	an acquisition for a public purpose and for use in the utility's business, for purposes of 
39.14 	chapter 117 and section 500.24, respectively; provided that a utility shall divest itself 
39.15 	completely of all such lands used for farming or capable of being used for farming not 
39.16 	later than the time it can receive the market value paid at the time of acquisition of lands 
39.17 	less any diminution in value by reason of the presence of the utility route or site. Upon 
39.18 	the owner's election made under this subdivision, the easement interest over and adjacent 
39.19 	to the lands designated by the owner to be acquired in fee, sought in the condemnation 
39.20 	petition for a right-of-way for a high-voltage transmission line with a capacity of 200 
39.21 	kilovolts or more shall automatically be converted into a fee taking.
39.22 	(b) All rights and protections provided to an owner under chapter 117, including in 
39.23 	particular sections 117.031, 117.036, 117.186, and 117.52, apply to acquisition of land 
39.24 	or an interest in land under this section.
39.25 	(c) Within 90 days of an owner's election under this subdivision to require the utility 
39.26 	to acquire land, or 90 days after a district court decision overruling a utility objection to an 
39.27 	election made pursuant to paragraph (a), the utility must make a written offer to acquire 
39.28 	that land and amend its condemnation petition to include the additional land.
39.29 	(d) For purposes of this subdivision, "owner" means the fee owner or, when 
39.30 	applicable, the fee owner with the written consent of the contract for deed vendee or the 
39.31 	contract for deed vendee with the written consent of the fee owner.

39.32 	EFFECTIVE DATE. This section is effective the day following final enactment 
39.33 	and applies to eminent domain proceedings or actions pending or commenced on or after 
39.34 	that date. "Commenced" means when service of notice of the petition under Minnesota 
39.35 	Statutes, section 117.055, is made.

40.1 	Sec. 53. Minnesota Statutes 2012, section 223.17, is amended by adding a subdivision 
40.2 	to read:
40.3 		Subd. 7a.Bond requirements; claims. For entities licensed under this chapter 
40.4 	and chapter 232, the bond requirements and claims against the bond are governed under 
40.5 	section 232.22, subdivision 6a.

40.6 	Sec. 54. Minnesota Statutes 2012, section 232.22, is amended by adding a subdivision 
40.7 	to read:
40.8 		Subd. 6a.Bond determinations. If a public grain warehouse operator is licensed 
40.9 	under both this chapter and chapter 223, the warehouse shall have its bond determined 
40.10 	by its gross annual grain purchase amount or its annual average grain storage value, 
40.11 	whichever is greater. For those entities licensed under this chapter and chapter 223, the 
40.12 	entire bond shall be available to any claims against the bond for claims filed under this 
40.13 	chapter and chapter 223.

40.14 	Sec. 55. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision 
40.15 	to read:
40.16 		Subd. 1a.Advanced biofuel.  "Advanced biofuel" has the meaning given in Public 
40.17 	Law 110-140, title 2, subtitle A, section 201.

40.18 	Sec. 56. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision 
40.19 	to read:
40.20 		Subd. 5a.Biofuel. "Biofuel" means a renewable fuel with an approved pathway 
40.21 	under authority of the federal Energy Policy Act of 2005, Public Law 109-58, as amended 
40.22 	by the federal Energy Independence and Security Act of 2007, Public Law 110â€“140, and 
40.23 	approved for sale by the United States Environmental Protection Agency. As such, biofuel 
40.24 	includes both advanced and conventional biofuels.

40.25 	Sec. 57. Minnesota Statutes 2012, section 239.051, is amended by adding a subdivision 
40.26 	to read:
40.27 		Subd. 7a.Conventional biofuel. "Conventional biofuel" means ethanol derived 
40.28 	from cornstarch, as defined in Public Law 110-140, title 2, subtitle A, section 201.

40.29 	Sec. 58. Minnesota Statutes 2012, section 239.791, subdivision 1, is amended to read:
40.30 		Subdivision 1.Minimum ethanol biofuel content required. (a) Except as provided 
40.31 	in subdivisions 10 to 14, a person responsible for the product shall ensure that all gasoline 
41.1 	sold or offered for sale in Minnesota must contain at least the quantity of ethanol biofuel
41.2 	 required by clause (1) or (2), whichever is greater at the option of the person responsible 
41.3 	for the product:
41.4 	(1) the greater of:
41.5 	(i) 10.0 percent denatured ethanol conventional biofuel by volume; or
41.6 	(2) (ii) the maximum percent of denatured ethanol conventional biofuel by volume 
41.7 	authorized in a waiver granted by the United States Environmental Protection Agency; or
41.8 	(2) 10.0 percent of a biofuel, other than a conventional biofuel, by volume authorized 
41.9 	in a waiver granted by the United States Environmental Protection Agency or a biofuel 
41.10 	formulation registered by the United States Environmental Protection Agency under 
41.11 	United States Code, title 42, section 7545.
41.12 	(b) For purposes of enforcing the minimum ethanol requirement of paragraph 
41.13 	(a), clause (1), item (i), or clause (2), a gasoline/ethanol gasoline/biofuel blend will be 
41.14 	construed to be in compliance if the ethanol biofuel content, exclusive of denaturants and 
41.15 	other permitted components, comprises not less than 9.2 percent by volume and not more 
41.16 	than 10.0 percent by volume of the blend as determined by an appropriate United States 
41.17 	Environmental Protection Agency or American Society of Testing Materials standard 
41.18 	method of analysis of alcohol/ether content in engine fuels.
41.19 	(c) The provisions of this subdivision are suspended during any period of time that 
41.20 	subdivision 1a, paragraph (a), is in effect. The aggregate amount of biofuel blended 
41.21 	pursuant to this subdivision may be any biofuel; however, conventional biofuel must 
41.22 	comprise no less than the portion specified on and after the specified dates:

41.23	(1)
	July 1, 2013
	90 percent
	
41.24	(2)
	January 1, 2015
	80 percent
	
41.25	(3)
	January 1, 2017
	70 percent
	
41.26	(4)
	January 1, 2020
	60 percent
	
41.27	(5)
	January 1, 2025
	no minimum

41.28 	Sec. 59. Minnesota Statutes 2012, section 239.791, subdivision 2a, is amended to read:
41.29 		Subd. 2a.Federal Clean Air Act waivers; conditions. (a) Before a waiver granted 
41.30 	by the United States Environmental Protection Agency under section 211(f)(4) of the 
41.31 	Clean Air Act, United States Code, title 42, section 7545, subsection (f), paragraph (4),
41.32 	 may alter the minimum content level required by subdivision 1, paragraph (a), clause (2), 
41.33 	or subdivision 1a, paragraph (a), clause (2) (1), item (ii), the waiver must:
41.34 	(1) apply to all gasoline-powered motor vehicles irrespective of model year; and
41.35 	(2) allow for special regulatory treatment of Reid vapor pressure under Code of 
41.36 	Federal Regulations, title 40, section 80.27, paragraph (d), for blends of gasoline and 
42.1 	ethanol up to the maximum percent of denatured ethanol by volume authorized under 
42.2 	the waiver.
42.3 	(b) The minimum ethanol biofuel requirement in subdivision 1, paragraph (a), clause 
42.4 	(2), or subdivision 1a, paragraph (a), clause (2), shall, upon the grant of the federal waiver
42.5 	 or authority specified in United States Code, title 42, section 7545, that allows for greater 
42.6 	blends of gasoline and biofuel in this state, be effective the day after the commissioner 
42.7 	of commerce publishes notice in the State Register. In making this determination, the 
42.8 	commissioner shall consider the amount of time required by refiners, retailers, pipeline 
42.9 	and distribution terminal companies, and other fuel suppliers, acting expeditiously, to 
42.10 	make the operational and logistical changes required to supply fuel in compliance with 
42.11 	the minimum ethanolbiofuel requirement.

42.12 	Sec. 60. Minnesota Statutes 2012, section 239.791, subdivision 2b, is amended to read:
42.13 		Subd. 2b.Limited liability waiver. No motor fuel shall be deemed to be a defective 
42.14 	product by virtue of the fact that the motor fuel is formulated or blended pursuant to 
42.15 	the requirements of subdivision 1, paragraph (a), clause (2), or subdivision 1a, under 
42.16 	any theory of liability except for simple or willful negligence or fraud. This subdivision 
42.17 	does not preclude an action for negligent, fraudulent, or willful acts. This subdivision 
42.18 	does not affect a person whose liability arises under chapter 115, water pollution control; 
42.19 	115A, waste management; 115B, environmental response and liability; 115C, leaking 
42.20 	underground storage tanks; or 299J, pipeline safety; under public nuisance law for damage 
42.21 	to the environment or the public health; under any other environmental or public health 
42.22 	law; or under any environmental or public health ordinance or program of a municipality 
42.23 	as defined in section 466.01.

42.24 	Sec. 61. Minnesota Statutes 2012, section 239.7911, is amended to read:
42.25 	239.7911 PETROLEUM REPLACEMENT PROMOTION.
42.26 		Subdivision 1.Petroleum replacement goal. The tiered petroleum replacement 
42.27 	goal of the state of Minnesota is that biofuel comprises at least the specified portion of 
42.28 	total gasoline sold or offered for sale in this state by each specified year:
42.29 	(1) at least 20 percent of the liquid fuel sold in the state is derived from renewable 
42.30 	sources by December 31, 2015; and
42.31 	(2) at least 25 percent of the liquid fuel sold in the state is derived from renewable 
42.32 	sources by December 31, 2025.

42.33	(1)
	2015
	14 percent
		
42.34	(2)
	2017
	18 percent
		
43.1	(3)
	2020
	25 percent
		
43.2	(4)
	2025
	30 percent
		
43.3 		Subd. 2.Promotion of renewable liquid fuels. (a) The commissioner of agriculture, 
43.4 	in consultation with the commissioners of commerce and the Pollution Control Agency, 
43.5 	shall identify and implement activities necessary for the widespread use of renewable 
43.6 	liquid fuels in the state to achieve the goals in subdivision 1. Beginning November 
43.7 	1, 2005, and continuing through 2015, the commissioners, or their designees, shall 
43.8 	work with convene a task force pursuant to section 15.014 that includes representatives 
43.9 	from the renewable fuels industry, petroleum retailers, refiners, automakers, small 
43.10 	engine manufacturers, and other interested groups, to. The task force shall assist the 
43.11 	commissioners in carrying out the activities in paragraph (b) and eliminating barriers to the 
43.12 	use of greater biofuel blends in this state. The task force must coordinate efforts with the 
43.13 	NextGen Energy Board, the biodiesel task force, and the Renewable Energy Roundtable 
43.14 	and develop annual recommendations for administrative and legislative action.
43.15 	(b) The activities of the commissioners under this subdivision shall include, but not 
43.16 	be limited to:
43.17 	(1) developing recommendations for specific, cost-effective incentives necessary 
43.18 	to expedite the use of greater biofuel blends in this state including, but not limited to, 
43.19 	incentives for retailers to install equipment necessary for dispensing to dispense renewable 
43.20 	liquid fuels to the public;
43.21 	(2) expanding the renewable-fuel options available to Minnesota consumers by 
43.22 	obtaining federal approval for the use of E20 and additional blends that contain a greater 
43.23 	percentage of ethanol, including but not limited to E30 and E50, as gasoline biofuel;
43.24 	(3) developing recommendations for ensuringto ensure that motor vehicles and 
43.25 	small engine equipment have access to an adequate supply of fuel;
43.26 	(4) working with the owners and operators of large corporate automotive fleets in the 
43.27 	state to increase their use of renewable fuels; and
43.28 	(5) working to maintain an affordable retail price for liquid fuels;
43.29 	(6) facilitating the production and use of advanced biofuels in this state; and
43.30 	(7) developing procedures for reporting the amount and type of biofuel under 
43.31 	subdivision 1 and section 239.791, subdivision 1, paragraph (c).
43.32 	(c) Notwithstanding section 15.014, the task force required under paragraph (a) 
43.33 	expires on December 31, 2015.

43.34 	Sec. 62. Minnesota Statutes 2012, section 296A.01, is amended by adding a 
43.35 	subdivision to read:
44.1 		Subd. 8b.Biobutanol. "Biobutanol" means isobutyl alcohol produced by 
44.2 	fermenting agriculturally generated organic material that is to be blended with gasoline 
44.3 	and meets either:
44.4 	(1) the initial ASTM Standard Specification for Butanol for Blending with Gasoline 
44.5 	for Use as an Automotive Spark-Ignition Engine Fuel once it has been released by ASTM 
44.6 	for general distribution; or
44.7 	(2) in the absence of an ASTM standard specification, the following list of 
44.8 	requirements:
44.9 	(i) visually free of sediment and suspended matter;
44.10 	(ii) clear and bright at the ambient temperature of 21 degrees Celsius or the ambient 
44.11 	temperature, whichever is higher;
44.12 	(iii) free of any adulterant or contaminant that can render it unacceptable for its 
44.13 	commonly used applications;
44.14 	(iv) contains not less than 96 volume percent isobutyl alcohol;
44.15 	(v) contains not more than 0.4 volume percent methanol;
44.16 	(vi) contains not more than 1.0 volume percent water as determined by ASTM 
44.17 	standard test method E203 or E1064;
44.18 	(vii) acidity (as acetic acid) of not more than 0.007 mass percent as determined 
44.19 	by ASTM standard test method D1613;
44.20 	(viii) solvent washed gum content of not more than 5.0 milligrams per 100 milliliters 
44.21 	as determined by ASTM standard test method D381;
44.22 	(ix) sulfur content of not more than 30 parts per million as determined by ASTM 
44.23 	standard test method D2622 or D5453; and
44.24 	(x) contains not more than four parts per million total inorganic sulfate.

44.25 	Sec. 63. Minnesota Statutes 2012, section 296A.01, subdivision 19, is amended to read:
44.26 		Subd. 19.E85. "E85" means a petroleum product that is a blend of agriculturally 
44.27 	derived denatured ethanol and gasoline or natural gasoline that typically contains not more 
44.28 	than 85 percent ethanol by volume, but at a minimum must contain 60 51 percent ethanol by 
44.29 	volume. For the purposes of this chapter, the energy content of E85 will be considered to be 
44.30 	82,000 BTUs per gallon. E85 produced for use as a motor fuel in alternative fuel vehicles 
44.31 	as defined in subdivision 5 must comply with ASTM specification D5798-07 D5798-11.

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

44.33 	Sec. 64. REVISOR'S INSTRUCTION.
 45.1 	The revisor of statutes shall renumber Minnesota Statutes, section 18B.01, 
45.2 	subdivision 4a, as subdivision 4b and correct any cross-references.

45.3 	Sec. 65. REPEALER.
 45.4 	Minnesota Statutes 2012, sections 18.91, subdivisions 3 and 5; 18B.07, subdivision 
45.5 	6; and 239.791, subdivision 1a, are repealed.

45.6 	ARTICLE 3
45.7 	ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

45.8	Section 1. SUMMARY OF APPROPRIATIONS.
 	
45.9 	The amounts shown in this section summarize direct appropriations, by fund, made 
45.10 	in this article.

45.11			2014
		2015
		Total
	
45.12	General
	$
	87,464,000
	$
	87,843,000
	$
	175,307,000
	
45.13
45.14	State Government Special 
Revenue
		75,000
		75,000
		150,000
	
45.15	Environmental
		68,680,000
		68,825,000
		137,505,000
	
45.16	Natural Resources
		91,724,000
		94,184,000
		185,908,000
	
45.17	Game and Fish
		91,372,000
		91,372,000
		182,744,000
	
45.18	Remediation
		10,596,000
		10,596,000
		21,192,000
	
45.19	Permanent School
		200,000
		200,000
		400,000
	
45.20	Special Revenue
		1,422,000
		1,377,000
		2,799,000
	
45.21	Total
	$
	351,533,000
	$
	354,472,000
	$
	706,005,000

45.22	Sec. 2. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
 	
45.23 	The sums shown in the columns marked "Appropriations" are appropriated to the 
45.24 	agencies and for the purposes specified in this article. The appropriations are from the 
45.25 	general fund, or another named fund, and are available for the fiscal years indicated 
45.26 	for each purpose. The figures "2014" and "2015" used in this article mean that the 
45.27 	appropriations listed under them are available for the fiscal year ending June 30, 2014, or 
45.28 	June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal 
45.29 	year 2015. "The biennium" is fiscal years 2014 and 2015. Appropriations for the fiscal 
45.30 	year ending June 30, 2013, are effective the day following final enactment.

45.31				APPROPRIATIONS
	
45.32				Available for the Year
	
45.33				Ending June 30
	
45.34					2014
		2015

46.1	Sec. 3. POLLUTION CONTROL AGENCY

46.2	Subdivision 1.Total Appropriation
 	$
	85,806,000
	$
	85,931,000

46.3	Appropriations by Fund
	
46.4		2014
	2015
	
46.5	General
	5,133,000
	5,158,000
	
46.6
46.7	State Government 
Special Revenue
	75,000
	75,000
	
46.8	Special Revenue
	1,422,000
	1,377,000
	
46.9	Environmental
	68,680,000
	68,825,000
	
46.10	Remediation
	10,496,000
	10,496,000
	
46.11 	The amounts that may be spent for each 
46.12 	purpose are specified in the following 
46.13 	subdivisions.

46.14	Subd. 2.Water
 		24,697,000
		24,697,000

46.15	Appropriations by Fund
	
46.16		2014
	2015
	
46.17	General
	3,737,000
	3,737,000
	
46.18
46.19	State Government 
Special Revenue
	75,000
	75,000
	
46.20	Environmental
	20,885,000
	20,885,000
	
46.21 	$1,378,000 the first year and $1,378,000 the 
46.22 	second year are for water program operations.
46.23 	$1,959,000 the first year and $1,959,000 
46.24 	the second year are for grants to delegated 
46.25 	counties to administer the county feedlot 
46.26 	program under Minnesota Statutes, section 
46.27 	116.0711, subdivisions 2 and 3. By January 
46.28 	15, 2016, the commissioner shall submit a 
46.29 	report detailing the results achieved with 
46.30 	this appropriation to the chairs and ranking 
46.31 	minority members of the senate and house 
46.32 	of representatives committees and divisions 
46.33 	with jurisdiction over environment and 
46.34 	natural resources policy and finance. Money 
46.35 	remaining after the first year is available for 
46.36 	the second year.
47.1 	$740,000 the first year and $740,000 the 
47.2 	second year are from the environmental 
47.3 	fund to address the need for continued 
47.4 	increased activity in the areas of new 
47.5 	technology review, technical assistance 
47.6 	for local governments, and enforcement 
47.7 	under Minnesota Statutes, sections 115.55 
47.8 	to 115.58, and to complete the requirements 
47.9 	of Laws 2003, chapter 128, article 1, section 
47.10 	165.
47.11 	$400,000 the first year and $400,000 
47.12 	the second year are for the clean water 
47.13 	partnership program. Any unexpended 
47.14 	balance in the first year does not cancel but 
47.15 	is available in the second year. Priority shall 
47.16 	be given to projects preventing impairments 
47.17 	and degradation of lakes, rivers, streams, 
47.18 	and groundwater according to Minnesota 
47.19 	Statutes, section 114D.20, subdivision 2, 
47.20 	clause (4).
47.21 	$664,000 the first year and $664,000 the 
47.22 	second year are from the environmental 
47.23 	fund for subsurface sewage treatment 
47.24 	system (SSTS) program administration 
47.25 	and community technical assistance and 
47.26 	education, including grants and technical 
47.27 	assistance to communities for water quality 
47.28 	protection. Of this amount, $80,000 each 
47.29 	year is for assistance to counties through 
47.30 	grants for SSTS program administration. 
47.31 	A county receiving a grant from this 
47.32 	appropriation shall submit a report detailing 
47.33 	the results achieved with the grant to the 
47.34 	commissioner. The county is not eligible for 
47.35 	funds from the second year appropriation 
47.36 	until the commissioner receives the report. 
48.1 	Any unexpended balance in the first year does 
48.2 	not cancel but is available in the second year.
48.3 	$105,000 the first year and $105,000 the 
48.4 	second year are from the environmental fund 
48.5 	for registration of wastewater laboratories.
48.6 	$50,000 the first year is from the 
48.7 	environmental fund for providing technical 
48.8 	assistance to local units of government to 
48.9 	address the water quality impacts from 
48.10 	polycyclic aromatic hydrocarbons resulting 
48.11 	from the use of coal tar products as regulated 
48.12 	under Minnesota Statutes, section 116.201.
48.13 	$313,000 the first year and $313,000 the 
48.14 	second year are from the environmental 
48.15 	fund to be transferred to the commissioner 
48.16 	of health to continue perfluorochemical 
48.17 	biomonitoring in eastern metropolitan 
48.18 	communities, as recommended by the 
48.19 	Environmental Health Tracking and 
48.20 	Biomonitoring Advisory Panel.
48.21 	Notwithstanding Minnesota Statutes, section 
48.22 	16A.28, the appropriations encumbered on or 
48.23 	before June 30, 2015, as grants or contracts 
48.24 	for SSTS's, surface water and groundwater 
48.25 	assessments, total maximum daily loads, 
48.26 	storm water, and water quality protection in 
48.27 	this subdivision are available until June 30, 
48.28 	2018.

48.29	Subd. 3.Air
 		15,031,000
		15,201,000

48.30	Appropriations by Fund
	
48.31		2014
	2015
	
48.32	Environmental
	15,031,000
	15,201,000
	
48.33 	$200,000 the first year and $200,000 the 
48.34 	second year are from the environmental fund 
49.1 	for a monitoring program under Minnesota 
49.2 	Statutes, section 116.454.
49.3 	Up to $150,000 the first year and $150,000 
49.4 	the second year may be transferred from the 
49.5 	environmental fund to the small business 
49.6 	environmental improvement loan account 
49.7 	established in Minnesota Statutes, section 
49.8 	116.993.
49.9 	$125,000 the first year and $125,000 the 
49.10 	second year are from the environmental fund 
49.11 	for monitoring ambient air for hazardous 
49.12 	pollutants in the metropolitan area.
49.13 	$360,000 the first year and $360,000 the 
49.14 	second year are from the environmental fund 
49.15 	for systematic, localized monitoring efforts 
49.16 	in the state that:
49.17 	(1) sample ambient air for a period of one to 
49.18 	three months at various sites;
49.19 	(2) analyze the samples and compare the data 
49.20 	to the agency's fixed air monitoring sites; and
49.21 	(3) determine whether significant localized 
49.22 	differences exist.
49.23 	The commissioner, when selecting areas to 
49.24 	monitor, shall give priority to areas where low 
49.25 	income, indigenous American Indians, and 
49.26 	communities of color are disproportionately 
49.27 	impacted by pollution from highway traffic, 
49.28 	air traffic, and industrial sources to assist 
49.29 	with efforts to ensure environmental justice 
49.30 	for those areas. For the purposes of this 
49.31 	paragraph, "environmental justice" means the 
49.32 	fair treatment of people of all races, cultures, 
49.33 	and income levels in the development, 
50.1 	adoption, implementation, and enforcement 
50.2 	of environmental laws and policies.
50.3 	$540,000 the first year and $540,000 the 
50.4 	second year are from the environmental 
50.5 	fund for emission reduction activities and 
50.6 	grants to small businesses and other nonpoint 
50.7 	emission reduction efforts. Any unexpended 
50.8 	balance in the first year does not cancel but is 
50.9 	available in the second year.

50.10	Subd. 4.Land
 		17,412,000
		17,412,000

50.11	Appropriations by Fund
	
50.12		2014
	2015
	
50.13	Environmental
	6,916,000
	6,916,000
	
50.14	Remediation
	10,496,000
	10,496,000
	
50.15 	All money for environmental response, 
50.16 	compensation, and compliance in the 
50.17 	remediation fund not otherwise appropriated 
50.18 	is appropriated to the commissioners of the 
50.19 	Pollution Control Agency and agriculture 
50.20 	for purposes of Minnesota Statutes, section 
50.21 	115B.20, subdivision 2, clauses (1), (2), 
50.22 	(3), (6), and (7). At the beginning of each 
50.23 	fiscal year, the two commissioners shall 
50.24 	jointly submit an annual spending plan 
50.25 	to the commissioner of management and 
50.26 	budget that maximizes the utilization of 
50.27 	resources and appropriately allocates the 
50.28 	money between the two departments. This 
50.29 	appropriation is available until June 30, 2015.
50.30 	$3,616,000 the first year and $3,616,000 the 
50.31 	second year are from the remediation fund for 
50.32 	purposes of the leaking underground storage 
50.33 	tank program to protect the land. These same 
50.34 	annual amounts are transferred from the 
50.35 	petroleum tank fund to the remediation fund.
51.1 	$252,000 the first year and $252,000 the 
51.2 	second year are from the remediation fund 
51.3 	for transfer to the commissioner of health for 
51.4 	private water supply monitoring and health 
51.5 	assessment costs in areas contaminated 
51.6 	by unpermitted mixed municipal solid 
51.7 	waste disposal facilities and drinking water 
51.8 	advisories and public information activities 
51.9 	for areas contaminated by hazardous releases.

51.10
51.11	Subd. 5.Environmental Assistance and 
Cross-Media
 		28,271,000
		28,201,000

51.12	Appropriations by Fund
	
51.13		2014
	2015
	
51.14	Special Revenue
	1,422,000
	1,377,000
	
51.15	Environmental
	25,848,000
	25,823,000
	
51.16	General
	1,001,000
	1,001,000
	
51.17 	$14,450,000 the first year and $14,450,000 
51.18 	the second year are from the environmental 
51.19 	fund for SCORE grants to counties. Of 
51.20 	this amount, $14,250,000 each year is for 
51.21 	SCORE block grants and $200,000 each year 
51.22 	is for competitive grants.
51.23 	$119,000 the first year and $119,000 the 
51.24 	second year are from the environmental 
51.25 	fund for environmental assistance grants 
51.26 	or loans under Minnesota Statutes, section 
51.27 	115A.0716. Any unencumbered grant and 
51.28 	loan balances in the first year do not cancel 
51.29 	but are available for grants and loans in the 
51.30 	second year.
51.31 	$89,000 the first year and $89,000 the 
51.32 	second year are from the environmental fund 
51.33 	for duties related to harmful chemicals in 
51.34 	products under Minnesota Statutes, sections 
51.35 	116.9401 to 116.9407. Of this amount, 
52.1 	$57,000 each year is transferred to the 
52.2 	commissioner of health.
52.3 	$600,000 the first year and $600,000 the 
52.4 	second year are from the environmental 
52.5 	fund to address environmental health risks. 
52.6 	Of this amount, $499,000 the first year and 
52.7 	$499,000 the second year are for transfer to 
52.8 	the Department of Health.
52.9 	$312,000 the first year and $312,000 the 
52.10 	second year are from the general fund and 
52.11 	$188,000 the first year and $188,000 the 
52.12 	second year are from the environmental fund 
52.13 	for Environmental Quality Board operations 
52.14 	and support.
52.15 	$75,000 the first year and $50,000 the second 
52.16 	year are from the environmental fund for 
52.17 	transfer to the Office of Administrative 
52.18 	Hearings to establish sanitary districts.
52.19 	$1,422,000 the first year and $1,377,000 the 
52.20 	second year are from the special revenue 
52.21 	fund for the Environmental Quality Board to 
52.22 	lead an interagency team to provide technical 
52.23 	assistance regarding the mining, processing, 
52.24 	and transporting of silica sand and develop 
52.25 	the model standards and criteria required 
52.26 	under Minnesota Statutes, section 116C.99. 
52.27 	Of this amount, $266,000 the first year and 
52.28 	$263,000 the second year are for transfer to 
52.29 	the commissioner of health, $447,000 the 
52.30 	first year and $420,000 the second year are 
52.31 	for transfer to the commissioner of natural 
52.32 	resources, $5,000 the first year and $10,000 
52.33 	the second year are for transfer to the Board 
52.34 	of Water and Soil Resources, and $150,000 
52.35 	the first year and $140,000 the second year 
53.1 	are for transfer to the commissioner of 
53.2 	transportation. The members of the silica 
53.3 	sand technical assistance team representing 
53.4 	state entities shall be existing state employees 
53.5 	whenever possible. The costs of the technical 
53.6 	assistance team members directly related to 
53.7 	and necessary for the silica sand technical 
53.8 	assistance team may be paid for from this 
53.9 	appropriation.
53.10 	$5,000 the first year is from the environmental 
53.11 	fund to prepare and submit a report to the 
53.12 	chairs and ranking minority members of 
53.13 	the senate and house of representatives 
53.14 	committees and divisions with jurisdiction 
53.15 	over the environment and natural resources, 
53.16 	by December 1, 2013, with recommendations 
53.17 	for a statewide recycling refund program 
53.18 	for beverage containers that achieves an 80 
53.19 	percent recycling rate.
53.20 	All money deposited in the environmental 
53.21 	fund for the metropolitan solid waste 
53.22 	landfill fee in accordance with Minnesota 
53.23 	Statutes, section 473.843, and not otherwise 
53.24 	appropriated, is appropriated for the purposes 
53.25 	of Minnesota Statutes, section 473.844.
53.26 	Notwithstanding Minnesota Statutes, section 
53.27 	16A.28, the appropriations encumbered on 
53.28 	or before June 30, 2015, as contracts or 
53.29 	grants for surface water and groundwater 
53.30 	assessments; environmental assistance 
53.31 	awarded under Minnesota Statutes, section 
53.32 	115A.0716; technical and research assistance 
53.33 	under Minnesota Statutes, section 115A.152; 
53.34 	technical assistance under Minnesota 
53.35 	Statutes, section 115A.52; and pollution 
54.1 	prevention assistance under Minnesota 
54.2 	Statutes, section 115D.04, are available until 
54.3 	June 30, 2017.

54.4	Subd. 6.Administrative Support
 		395,000
		420,000
	
54.5 	The commissioner shall submit the agency's 
54.6 	budget for fiscal years 2016 and 2017 to 
54.7 	the legislature in a manner that allows 
54.8 	the legislature and public to understand 
54.9 	the outcomes that will be achieved with 
54.10 	the appropriations. The budget must be 
54.11 	structured so that a significantly larger 
54.12 	portion of the revenues from solid waste 
54.13 	taxes are spent on solid waste activities.

54.14	Sec. 4. NATURAL RESOURCES

54.15	Subdivision 1.Total Appropriation
 	$
	 236,783,000
	$
	239,514,000

54.16	Appropriations by Fund
	
54.17		2014
	2015
	
54.18	General
	59,707,000
	59,978,000
	
54.19	Natural Resources
	 85,404,000
	87,864,000
	
54.20	Game and Fish
	91,372,000
	91,372,000
	
54.21	Remediation
	100,000
	100,000
	
54.22	Permanent School
	200,000
	200,000
	
54.23 	The amounts that may be spent for each 
54.24 	purpose are specified in the following 
54.25 	subdivisions.

54.26
54.27	Subd. 2.Land and Mineral Resources 
Management
 		6,073,000
		6,073,000

54.28	Appropriations by Fund
	
54.29		2014
	2015
	
54.30	General
	722,000
	722,000
	
54.31	Natural Resources
	3,700,000
	3,700,000
	
54.32	Game and Fish
	1,451,000
	1,451,000
	
54.33	Permanent School
	200,000
	200,000
	
54.34 	$68,000 the first year and $68,000 the 
54.35 	second year are for minerals cooperative 
54.36 	environmental research, of which $34,000 
55.1 	the first year and $34,000 the second year are 
55.2 	available only as matched by $1 of nonstate 
55.3 	money for each $1 of state money. The 
55.4 	match may be cash or in-kind.
55.5 	$251,000 the first year and $251,000 the 
55.6 	second year are for iron ore cooperative 
55.7 	research. Of this amount, $200,000 each year 
55.8 	is from the minerals management account 
55.9 	in the natural resources fund. $175,000 the 
55.10 	first year and $175,000 the second year are 
55.11 	available only as matched by $1 of nonstate 
55.12 	money for each $1 of state money. The match 
55.13 	may be cash or in-kind. Any unencumbered 
55.14 	balance from the first year does not cancel 
55.15 	and is available in the second year.
55.16 	$2,779,000 the first year and $2,779,000 
55.17 	the second year are from the minerals 
55.18 	management account in the natural resources 
55.19 	fund for use as provided in Minnesota 
55.20 	Statutes, section 93.2236, paragraph (c), 
55.21 	for mineral resource management, projects 
55.22 	to enhance future mineral income, and 
55.23 	projects to promote new mineral resource 
55.24 	opportunities.
55.25 	$200,000 the first year and $200,000 the 
55.26 	second year are from the state forest suspense 
55.27 	account in the permanent school fund to 
55.28 	accelerate land exchanges, land sales, and 
55.29 	commercial leasing of school trust lands and 
55.30 	to identify, evaluate, and lease construction 
55.31 	aggregate located on school trust lands. This 
55.32 	appropriation is to be used for securing 
55.33 	long-term economic return from the 
55.34 	school trust lands consistent with fiduciary 
56.1 	responsibilities and sound natural resources 
56.2 	conservation and management principles.
56.3 	$145,000 the first year and $145,000 
56.4 	the second year are from the minerals 
56.5 	management account in the natural resources 
56.6 	fund for transfer to the commissioner of 
56.7 	administration for the school trust lands 
56.8 	director.
56.9 	The appropriations in Laws 2007, chapter 57, 
56.10 	article 1, section 4, subdivision 2, as amended 
56.11 	by Laws 2009, chapter 37, article 1, section 
56.12 	60, and as extended in Laws 2011, First 
56.13 	Special Session chapter 2, article 1, section 4, 
56.14 	subdivision 2, for support of the land records 
56.15 	management system are available until spent.

56.16	Subd. 3.Ecological and Water Resources
 		 29,227,000
		 31,987,000

56.17	Appropriations by Fund
	
56.18		2014
	2015
	
56.19	General
	 12,262,000
	 12,262,000
	
56.20	Natural Resources
	12,902,000
	15,662,000
	
56.21	Game and Fish
	4,063,000
	4,063,000
	
56.22 	$2,942,000 the first year and $2,942,000 the 
56.23 	second year are from the invasive species 
56.24 	account in the natural resources fund and 
56.25 	$3,706,000 the first year and $3,706,000 the 
56.26 	second year are from the general fund for 
56.27 	management, public awareness, assessment 
56.28 	and monitoring research, and water access 
56.29 	inspection to prevent the spread of invasive 
56.30 	species; management of invasive plants in 
56.31 	public waters; and management of terrestrial 
56.32 	invasive species on state-administered lands. 
56.33 	Of this amount, up to $200,000 each year 
56.34 	is from the invasive species account in the 
56.35 	natural resources fund for liability insurance 
56.36 	coverage for Asian carp deterrent barriers.
57.1 	$5,000,000 the first year and $5,000,000 the 
57.2 	second year are from the water management 
57.3 	account in the natural resources fund for only 
57.4 	the purposes specified in Minnesota Statutes, 
57.5 	section 103G.27, subdivision 2. Of this 
57.6 	amount, $190,000 the first year and $170,000 
57.7 	the second year are for enhancements to 
57.8 	the online system for water appropriation 
57.9 	permits to account for preliminary approval 
57.10 	requirements and related water appropriation 
57.11 	permit activities.
57.12 	$53,000 the first year and $53,000 the 
57.13 	second year are for a grant to the Mississippi 
57.14 	Headwaters Board for up to 50 percent of the 
57.15 	cost of implementing the comprehensive plan 
57.16 	for the upper Mississippi within areas under 
57.17 	the board's jurisdiction. By January 15, 2016, 
57.18 	the board shall submit a report detailing the 
57.19 	results achieved with this appropriation to 
57.20 	the commissioner and the chairs and ranking 
57.21 	minority members of the senate and house 
57.22 	of representatives committees and divisions 
57.23 	with jurisdiction over environment and 
57.24 	natural resources policy and finance.
57.25 	$5,000 the first year and $5,000 the second 
57.26 	year are for payment to the Leech Lake Band 
57.27 	of Chippewa Indians to implement the band's 
57.28 	portion of the comprehensive plan for the 
57.29 	upper Mississippi.
57.30 	$264,000 the first year and $264,000 the 
57.31 	second year are for grants for up to 50 
57.32 	percent of the cost of implementation of 
57.33 	the Red River mediation agreement. The 
57.34 	commissioner shall submit a report by 
57.35 	January 15, 2015, to the chairs of the 
58.1 	legislative committees having primary 
58.2 	jurisdiction over environment and natural 
58.3 	resources policy and finance on the 
58.4 	accomplishments achieved with the grants.
58.5 	$1,643,000 the first year and $1,643,000 
58.6 	the second year are from the heritage 
58.7 	enhancement account in the game and 
58.8 	fish fund for only the purposes specified 
58.9 	in Minnesota Statutes, section 297A.94, 
58.10 	paragraph (e), clause (1).
58.11 	$1,223,000 the first year and $1,223,000 the 
58.12 	second year are from the nongame wildlife 
58.13 	management account in the natural resources 
58.14 	fund for the purpose of nongame wildlife 
58.15 	management. Notwithstanding Minnesota 
58.16 	Statutes, section 290.431, $100,000 the first 
58.17 	year and $100,000 the second year may 
58.18 	be used for nongame wildlife information, 
58.19 	education, and promotion.
58.20 	$2,500,000 the first year and $5,260,000 the 
58.21 	second year are from the water management 
58.22 	account in the natural resources fund for the 
58.23 	following activities:
58.24 	(1) installation of additional groundwater 
58.25 	monitoring wells;
58.26 	(2) increased financial reimbursement 
58.27 	and technical support to soil and water 
58.28 	conservation districts or other local units 
58.29 	of government for groundwater level 
58.30 	monitoring;
58.31 	(3) additional surface water monitoring and 
58.32 	analysis, including installation of monitoring 
58.33 	gauges;
59.1 	(4) additional groundwater analysis to 
59.2 	assist with water appropriation permitting 
59.3 	decisions;
59.4 	(5) additional permit application review 
59.5 	incorporating surface water and groundwater 
59.6 	technical analysis;
59.7 	(6) enhancement of precipitation data and 
59.8 	analysis to improve the use of irrigation;
59.9 	(7) enhanced information technology, 
59.10 	including electronic permitting and 
59.11 	integrated data systems; and 
59.12 	(8) increased compliance and monitoring.
59.13 	$1,000,000 the first year and $1,000,000 
59.14 	the second year are for grants to local units 
59.15 	of government and tribes to prevent the 
59.16 	spread of aquatic invasive species, including 
59.17 	inspection and decontamination programs.
59.18 	The commissioner, in cooperation with the 
59.19 	commissioner of agriculture, shall enforce 
59.20 	compliance with aquatic plant management 
59.21 	requirements regulating the control of 
59.22 	aquatic plants with pesticides and removal of 
59.23 	aquatic plants by mechanical means under 
59.24 	Minnesota Statutes, section 103G.615.

59.25	Subd. 4.Forest Management
 		34,310,000
		34,260,000

59.26	Appropriations by Fund
	
59.27		2014
	2015
	
59.28	General
	21,900,000
	21,850,000
	
59.29	Natural Resources
	11,123,000
	11,123,000
	
59.30	Game and Fish
	1,287,000
	1,287,000
	
59.31 	$7,145,000 the first year and $7,145,000 
59.32 	the second year are for prevention, 
59.33 	presuppression, and suppression costs of 
59.34 	emergency firefighting and other costs 
59.35 	incurred under Minnesota Statutes, section 
60.1 	88.12. The amount necessary to pay for 
60.2 	presuppression and suppression costs during 
60.3 	the biennium is appropriated from the general 
60.4 	fund.
60.5 	By January 15 of each year, the commissioner 
60.6 	of natural resources shall submit a report to 
60.7 	the chairs and ranking minority members 
60.8 	of the house of representatives and senate 
60.9 	committees and divisions having jurisdiction 
60.10 	over environment and natural resources 
60.11 	finance, identifying all firefighting costs 
60.12 	incurred and reimbursements received in 
60.13 	the prior fiscal year. These appropriations 
60.14 	may not be transferred. Any reimbursement 
60.15 	of firefighting expenditures made to the 
60.16 	commissioner from any source other than 
60.17 	federal mobilizations shall be deposited into 
60.18 	the general fund.
60.19 	$11,123,000 the first year and $11,123,000 
60.20 	the second year are from the forest 
60.21 	management investment account in the 
60.22 	natural resources fund for only the purposes 
60.23 	specified in Minnesota Statutes, section 
60.24 	89.039, subdivision 2.
60.25 	$1,287,000 the first year and $1,287,000 
60.26 	the second year are from the game and fish 
60.27 	fund to advance ecological classification 
60.28 	systems (ECS) scientific management tools 
60.29 	for forest and invasive species management. 
60.30 	This appropriation is from revenue deposited 
60.31 	in the game and fish fund under Minnesota 
60.32 	Statutes, section 297A.94, paragraph (e), 
60.33 	clause (1).
60.34 	$580,000 the first year and $580,000 the 
60.35 	second year are for the Forest Resources 
61.1 	Council for implementation of the 
61.2 	Sustainable Forest Resources Act.
61.3 	$250,000 the first year and $250,000 the 
61.4 	second year are for the FORIST system.
61.5 	$50,000 the first year is for development of 
61.6 	a plan and recommendations, in consultation 
61.7 	with the University of Minnesota, 
61.8 	Department of Forest Resources, on utilizing 
61.9 	the state forest nurseries to: ensure the 
61.10 	long-term availability of ecologically 
61.11 	appropriate and genetically diverse native 
61.12 	forest seed and seedlings to support state 
61.13 	conservation projects and initiatives; 
61.14 	protect the genetic fitness and resilience of 
61.15 	native forest ecosystems; and support tree 
61.16 	improvement research to address evolving 
61.17 	pressures such as invasive species and 
61.18 	climate change. By December 31, 2013, 
61.19 	the commissioner shall submit a report with 
61.20 	the plan and recommendations to the chairs 
61.21 	and ranking minority members of the senate 
61.22 	and house of representatives committees 
61.23 	and divisions with jurisdiction over natural 
61.24 	resources. The report shall address funding 
61.25 	to improve state forest nursery and tree 
61.26 	improvement capabilities. The report shall 
61.27 	also provide updated recommendations from 
61.28 	those contained in the budget and financial 
61.29 	plan required under Laws 2011, First Special 
61.30 	Session chapter 2, article 4, section 30.

61.31	Subd. 5.Parks and Trails Management
 		68,202,000
		67,902,000

61.32	Appropriations by Fund
	
61.33		2014
	2015
	
61.34	General
	20,130,000
	20,130,000
	
61.35	Natural Resources
	45,813,000
	45,513,000
	
61.36	Game and Fish
	2,259,000
	2,259,000
	
62.1 	$1,075,000 the first year and $1,075,000 the 
62.2 	second year are from the water recreation 
62.3 	account in the natural resources fund for 
62.4 	enhancing public water access facilities. 
62.5 	This appropriation is not available until the 
62.6 	commissioner develops and implements 
62.7 	design standards and best management 
62.8 	practices for public water access sites that 
62.9 	maintain and improve water quality by 
62.10 	avoiding shoreline erosion and runoff.
62.11 	$300,000 the first year is from the water 
62.12 	recreation account in the natural resources 
62.13 	fund for construction of restroom facilities 
62.14 	at the public water access for Crane Lake 
62.15 	on Handberg Road. This is a onetime 
62.16 	appropriation and is available until the 
62.17 	construction is completed.
62.18 	$5,740,000 the first year and $5,740,000 the 
62.19 	second year are from the natural resources 
62.20 	fund for state trail, park, and recreation area 
62.21 	operations. This appropriation is from the 
62.22 	revenue deposited in the natural resources 
62.23 	fund under Minnesota Statutes, section 
62.24 	297A.94, paragraph (e), clause (2).
62.25 	$1,005,000 the first year and $1,005,000 the 
62.26 	second year are from the natural resources 
62.27 	fund for trail grants to local units of 
62.28 	government on land to be maintained for at 
62.29 	least 20 years for the purposes of the grants. 
62.30 	This appropriation is from the revenue 
62.31 	deposited in the natural resources fund 
62.32 	under Minnesota Statutes, section 297A.94, 
62.33 	paragraph (e), clause (4). Any unencumbered 
62.34 	balance does not cancel at the end of the first 
62.35 	year and is available for the second year.
63.1 	$8,424,000 the first year and $8,424,000 
63.2 	the second year are from the snowmobile 
63.3 	trails and enforcement account in the 
63.4 	natural resources fund for the snowmobile 
63.5 	grants-in-aid program. Any unencumbered 
63.6 	balance does not cancel at the end of the first 
63.7 	year and is available for the second year.
63.8 	$1,460,000 the first year and $1,460,000 the 
63.9 	second year are from the natural resources 
63.10 	fund for the off-highway vehicle grants-in-aid 
63.11 	program. Of this amount, $1,210,000 each 
63.12 	year is from the all-terrain vehicle account; 
63.13 	$150,000 each year is from the off-highway 
63.14 	motorcycle account; and $100,000 each year 
63.15 	is from the off-road vehicle account. Any 
63.16 	unencumbered balance does not cancel at the 
63.17 	end of the first year and is available for the 
63.18 	second year.
63.19 	$75,000 the first year and $75,000 the second 
63.20 	year are from the cross-country ski account 
63.21 	in the natural resources fund for grooming 
63.22 	and maintaining cross-country ski trails in 
63.23 	state parks, trails, and recreation areas.
63.24 	$350,000 the first year and $350,000 the 
63.25 	second year are for prairie restorations in 
63.26 	state parks and trails located in various parts 
63.27 	of the state that are visible to the public under 
63.28 	the pollinator habitat program established 
63.29 	under Minnesota Statutes, section 84.973.
63.30 	$250,000 the first year and $250,000 the 
63.31 	second year are from the state land and 
63.32 	water conservation account (LAWCON) 
63.33 	in the natural resources fund for priorities 
63.34 	established by the commissioner for eligible 
63.35 	state projects and administrative and 
64.1 	planning activities consistent with Minnesota 
64.2 	Statutes, section 84.0264, and the federal 
64.3 	Land and Water Conservation Fund Act. 
64.4 	Any unencumbered balance does not cancel 
64.5 	at the end of the first year and is available for 
64.6 	the second year.
64.7 	The appropriation in Laws 2009, chapter 
64.8 	37, article 1, section 4, subdivision 5, from 
64.9 	the natural resources fund from the revenue 
64.10 	deposited under Minnesota Statutes, section 
64.11 	297A.94, paragraph (e), clause (4), for local 
64.12 	grants is available until June 30, 2014.

64.13	Subd. 6.Fish and Wildlife Management
 		62,775,000
		62,775,000

64.14	Appropriations by Fund
	
64.15		2014
	2015
	
64.16	Natural Resources
	1,906,000
	1,906,000
	
64.17	Game and Fish
	60,869,000
	60,869,000
	
64.18 	$8,167,000 the first year and $8,167,000 
64.19 	the second year are from the heritage 
64.20 	enhancement account in the game and fish 
64.21 	fund only for activities specified in Minnesota 
64.22 	Statutes, section 297A.94, paragraph (e), 
64.23 	clause (1). Notwithstanding Minnesota 
64.24 	Statutes, section 297A.94, five percent of 
64.25 	this appropriation may be used for expanding 
64.26 	hunter and angler recruitment and retention 
64.27 	activities that emphasize the recruitment and 
64.28 	retention of underrepresented groups.
64.29 	Notwithstanding Minnesota Statutes, section 
64.30 	84.943, $13,000 the first year and $13,000 
64.31 	the second year from the critical habitat 
64.32 	private sector matching account may be used 
64.33 	to publicize the critical habitat license plate 
64.34 	match program.

64.35	Subd. 7.Enforcement
 		 35,558,000
		 35,558,000

65.1	Appropriations by Fund
	
65.2		2014
	2015
	
65.3	General
	 4,375,000
	 4,375,000
	
65.4	Natural Resources
	9,640,000
	9,640,000
	
65.5	Game and Fish
	21,443,000
	21,443,000
	
65.6	Remediation
	100,000
	100,000
	
65.7 	$1,638,000 the first year and $1,638,000 the 
65.8 	second year are from the general fund for 
65.9 	enforcement efforts to prevent the spread of 
65.10 	aquatic invasive species.
65.11 	$1,450,000 the first year and $1,450,000 
65.12 	the second year are from the heritage 
65.13 	enhancement account in the game and 
65.14 	fish fund for only the purposes specified 
65.15 	in Minnesota Statutes, section 297A.94, 
65.16 	paragraph (e), clause (1).
65.17 	$250,000 the first year and $250,000 the 
65.18 	second year are for the conservation officer 
65.19 	pre-employment education program. Of this 
65.20 	amount, $30,000 each year is from the water 
65.21 	recreation account, $13,000 each year is 
65.22 	from the snowmobile account, and $20,000 
65.23 	each year is from the all-terrain vehicle 
65.24 	account in the natural resources fund; and 
65.25 	$187,000 each year is from the game and fish 
65.26 	fund, of which $17,000 each year is from 
65.27 	revenue deposited to the game and fish fund 
65.28 	under Minnesota Statutes, section 297A.94, 
65.29 	paragraph (e), clause (1).
65.30 	$1,082,000 the first year and $1,082,000 the 
65.31 	second year are from the water recreation 
65.32 	account in the natural resources fund for 
65.33 	grants to counties for boat and water safety. 
65.34 	Any unencumbered balance does not cancel 
65.35 	at the end of the first year and is available for 
65.36 	the second year.
66.1 	$315,000 the first year and $315,000 the 
66.2 	second year are from the snowmobile 
66.3 	trails and enforcement account in the 
66.4 	natural resources fund for grants to local 
66.5 	law enforcement agencies for snowmobile 
66.6 	enforcement activities. Any unencumbered 
66.7 	balance does not cancel at the end of the first 
66.8 	year and is available for the second year.
66.9 	$250,000 the first year and $250,000 the 
66.10 	second year are from the all-terrain vehicle 
66.11 	account for grants to qualifying organizations 
66.12 	to assist in safety and environmental 
66.13 	education and monitoring trails on public 
66.14 	lands under Minnesota Statutes, section 
66.15 	84.9011. Grants issued under this paragraph: 
66.16 	(1) must be issued through a formal 
66.17 	agreement with the organization; and 
66.18 	(2) must not be used as a substitute for 
66.19 	traditional spending by the organization. 
66.20 	By December 15 each year, an organization 
66.21 	receiving a grant under this paragraph shall 
66.22 	report to the commissioner with details on 
66.23 	expenditures and outcomes from the grant. 
66.24 	Of this appropriation, $25,000 each year 
66.25 	is for administration of these grants. Any 
66.26 	unencumbered balance does not cancel at the 
66.27 	end of the first year and is available for the 
66.28 	second year.
66.29 	$510,000 the first year and $510,000 
66.30 	the second year are from the natural 
66.31 	resources fund for grants to county law 
66.32 	enforcement agencies for off-highway 
66.33 	vehicle enforcement and public education 
66.34 	activities based on off-highway vehicle use 
66.35 	in the county. Of this amount, $498,000 each 
66.36 	year is from the all-terrain vehicle account; 
67.1 	$11,000 each year is from the off-highway 
67.2 	motorcycle account; and $1,000 each year 
67.3 	is from the off-road vehicle account. The 
67.4 	county enforcement agencies may use 
67.5 	money received under this appropriation 
67.6 	to make grants to other local enforcement 
67.7 	agencies within the county that have a high 
67.8 	concentration of off-highway vehicle use. 
67.9 	Of this appropriation, $25,000 each year 
67.10 	is for administration of these grants. Any 
67.11 	unencumbered balance does not cancel at the 
67.12 	end of the first year and is available for the 
67.13 	second year.
67.14 	$719,000 the first year and $719,000 the 
67.15 	second year are for development and 
67.16 	maintenance of a records management 
67.17 	system capable of providing real time data 
67.18 	with global positioning system information. 
67.19 	Of this amount, $480,000 each year is from 
67.20 	the general fund, $119,000 each year is 
67.21 	from the game and fish fund, and $120,000 
67.22 	each year is from the heritage enhancement 
67.23 	account in the game and fish fund.

67.24	Subd. 8.Operations Support
 		638,000
		959,000

67.25	Appropriations by Fund
	
67.26		2014
	2015
	
67.27	General Fund
	318,000
	639,000
	
67.28	Natural Resources
	320,000
	320,000
	
67.29 	$320,000 the first year and $320,000 the 
67.30 	second year are from the natural resources 
67.31 	fund for grants to be divided equally between 
67.32 	the city of St. Paul for the Como Park Zoo 
67.33 	and Conservatory and the city of Duluth 
67.34 	for the Duluth Zoo. This appropriation 
67.35 	is from the revenue deposited to the fund 
68.1 	under Minnesota Statutes, section 297A.94, 
68.2 	paragraph (e), clause (5).
68.3 	$300,000 the first year and $300,000 the 
68.4 	second year are from the special revenue fund 
68.5 	to improve data analytics. The commissioner 
68.6 	may bill the divisions of the agency an 
68.7 	appropriate share of costs associated with 
68.8 	this project. Any information technology 
68.9 	development, support, or costs necessary for 
68.10 	this project shall be incorporated into the 
68.11 	agency's service level agreement with and 
68.12 	paid to the Office of Enterprise Technology.

68.13
68.14	Sec. 5. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	13,472,000
	$
	13,502,000
	
68.15 	$3,423,000 the first year and $3,423,000 the 
68.16 	second year are for natural resources block 
68.17 	grants to local governments. Grants must be 
68.18 	matched with a combination of local cash or 
68.19 	in-kind contributions. The base grant portion 
68.20 	related to water planning must be matched 
68.21 	by an amount as specified by Minnesota 
68.22 	Statutes, section 103B.3369. The board may 
68.23 	reduce the amount of the natural resources 
68.24 	block grant to a county by an amount equal to 
68.25 	any reduction in the county's general services 
68.26 	allocation to a soil and water conservation 
68.27 	district from the county's previous year 
68.28 	allocation when the board determines that 
68.29 	the reduction was disproportionate.
68.30 	$3,116,000 the first year and $3,116,000 
68.31 	the second year are for grants requested 
68.32 	by soil and water conservation districts for 
68.33 	general purposes, nonpoint engineering, and 
68.34 	implementation of the reinvest in Minnesota 
68.35 	reserve program. Upon approval of the 
69.1 	board, expenditures may be made from these 
69.2 	appropriations for supplies and services 
69.3 	benefiting soil and water conservation 
69.4 	districts. Any district requesting a grant 
69.5 	under this paragraph shall maintain a Web 
69.6 	site that publishes, at a minimum, its annual 
69.7 	report, annual audit, annual budget, and 
69.8 	meeting notices and minutes.
69.9 	$1,602,000 the first year and $1,662,000 the 
69.10 	second year are for the following cost-share 
69.11 	programs:
69.12 	(1) $302,000 each year is for feedlot water 
69.13 	quality grants for feedlots under 300 animal 
69.14 	units in areas where there are impaired 
69.15 	waters;
69.16 	(2) $1,200,000 each year is for soil and water 
69.17 	conservation district cost-sharing contracts 
69.18 	for erosion control, nutrient and manure 
69.19 	management, vegetative buffers, and water 
69.20 	quality management; and
69.21 	(3) $100,000 each year is for county 
69.22 	cooperative weed management programs and 
69.23 	to restore native plants in selected invasive 
69.24 	species management sites by providing local 
69.25 	native seeds and plants to landowners for 
69.26 	implementation.
69.27 	The board shall submit a report to the 
69.28 	commissioner of the Pollution Control 
69.29 	Agency on the status of subsurface sewage 
69.30 	treatment systems in order to ensure a single, 
69.31 	comprehensive inventory of the systems for 
69.32 	planning purposes.
69.33 	$386,000 the first year and $386,000 
69.34 	the second year are for implementation, 
70.1 	enforcement, and oversight of the Wetland 
70.2 	Conservation Act.
70.3 	$166,000 the first year and $166,000 
70.4 	the second year are to provide technical 
70.5 	assistance to local drainage management 
70.6 	officials and for the costs of the Drainage 
70.7 	Work Group.
70.8 	$100,000 the first year and $100,000 
70.9 	the second year are for a grant to the 
70.10 	Red River Basin Commission for water 
70.11 	quality and floodplain management, 
70.12 	including administration of programs. This 
70.13 	appropriation must be matched by nonstate 
70.14 	funds. If the appropriation in either year is 
70.15 	insufficient, the appropriation in the other 
70.16 	year is available for it.
70.17 	$120,000 the first year and $60,000 
70.18 	the second year are for grants to Area II 
70.19 	Minnesota River Basin Projects for floodplain 
70.20 	management. The area shall transition to a 
70.21 	watershed district by July 1, 2015.
70.22 	Notwithstanding Minnesota Statutes, section 
70.23 	103C.501, the board may shift cost-share 
70.24 	funds in this section and may adjust the 
70.25 	technical and administrative assistance 
70.26 	portion of the grant funds to leverage 
70.27 	federal or other nonstate funds or to address 
70.28 	high-priority needs identified in local water 
70.29 	management plans or comprehensive water 
70.30 	management plans.
70.31 	$450,000 the first year and $450,000 the 
70.32 	second year are for assistance and grants to 
70.33 	local governments to transition local water 
70.34 	management plans to a watershed approach 
71.1 	as provided for in Minnesota Statutes, 
71.2 	chapters 103B, 103C, 103D, and 114D.
71.3 	$125,000 the first year and $125,000 the 
71.4 	second year are to implement internal control 
71.5 	policies and provide related oversight and 
71.6 	accountability for agency programs.
71.7 	$310,000 the first year and $310,000 the 
71.8 	second year are to evaluate performance, 
71.9 	financial, and activity information for local 
71.10 	water management entities as prescribed in 
71.11 	Minnesota Statutes, section 103B.102.
71.12 	The appropriations for grants in this 
71.13 	section are available until expended. If an 
71.14 	appropriation for grants in either year is 
71.15 	insufficient, the appropriation in the other 
71.16 	year is available for it.

71.17	Sec. 6. METROPOLITAN COUNCIL
 	$
	8,890,000
	$
	8,890,000

71.18	Appropriations by Fund
	
71.19		2014
	2015
	
71.20	General
	3,220,000
	3,220,000
	
71.21	Natural Resources
	5,670,000
	5,670,000
	
71.22 	$2,870,000 the first year and $2,870,000 the 
71.23 	second year are for metropolitan area regional 
71.24 	parks operation and maintenance according 
71.25 	to Minnesota Statutes, section 473.351.
71.26 	$5,670,000 the first year and $5,670,000 the 
71.27 	second year are from the natural resources 
71.28 	fund for metropolitan area regional parks 
71.29 	and trails maintenance and operations. This 
71.30 	appropriation is from the revenue deposited 
71.31 	in the natural resources fund under Minnesota 
71.32 	Statutes, section 297A.94, paragraph (e), 
71.33 	clause (3).
72.1 	$350,000 the first year and $350,000 the 
72.2 	second year are for grants to implementing 
72.3 	agencies to acquire and install solar energy 
72.4 	panels made in Minnesota in metropolitan 
72.5 	regional parks and trails. An implementing 
72.6 	agency receiving a grant under this 
72.7 	appropriation shall provide signage near 
72.8 	the solar equipment installed that provides 
72.9 	education on solar energy.

72.10
72.11	Sec. 7. CONSERVATION CORPS 
MINNESOTA
 	$
	945,000
	$
	945,000

72.12	Appropriations by Fund
	
72.13		2014
	2015
	
72.14	General
	455,000
	455,000
	
72.15	Natural Resources
	490,000
	490,000
	
72.16 	Conservation Corps Minnesota may receive 
72.17 	money appropriated from the natural 
72.18 	resources fund under this section only 
72.19 	as provided in an agreement with the 
72.20 	commissioner of natural resources.

72.21	Sec. 8. ZOOLOGICAL BOARD
 	$
	5,637,000
	$
	5,690,000

72.22	Appropriations by Fund
	
72.23		2014
	2015
	
72.24	General
	5,477,000
	5,530,000
	
72.25	Natural Resources
	160,000
	160,000
	
72.26 	$160,000 the first year and $160,000 the 
72.27 	second year are from the natural resources 
72.28 	fund from the revenue deposited under 
72.29 	Minnesota Statutes, section 297A.94, 
72.30 	paragraph (e), clause (5).

73.1 	ARTICLE 4
73.2 	ENVIRONMENT AND NATURAL RESOURCES POLICY

73.3 	Section 1. Minnesota Statutes 2012, section 84.027, is amended by adding a 
73.4 	subdivision to read:
73.5 		Subd. 19.Federal law compliance. Notwithstanding any law to the contrary, 
73.6 	the commissioner may establish, by written order, policies for the use and operation of 
73.7 	other power-driven mobility devices, as defined under Code of Federal Regulations, title 
73.8 	28, section 35.104, on lands and in facilities administered by the commissioner for the 
73.9 	purposes of implementing the Americans with Disabilities Act, United States Code, title 
73.10 	42, section 12101 et seq. These policies are exempt from the rulemaking provisions of 
73.11 	chapter 14 and section 14.386 does not apply.

73.12 	Sec. 2. [84.633] EXCHANGE OF ROAD EASEMENTS.
73.13 		Subdivision 1.Authority. The commissioner of natural resources, on behalf of 
73.14 	the state, may convey a road easement according to this section for access across state 
73.15 	land under the commissioner's jurisdiction in exchange for a road easement for access to 
73.16 	property owned by the United States, the state of Minnesota or any of its subdivisions, or a 
73.17 	private party. The exercise of the easement across state land must not cause significant 
73.18 	adverse environmental or natural resources management impacts.
73.19 		Subd. 2.Substantially equal acres. The acres covered by the state easement 
73.20 	conveyed by the commissioner must be substantially equal to the acres covered by the 
73.21 	easement being received by the commissioner. For purposes of this section, "substantially 
73.22 	equal" means that the acres do not differ by more than 20 percent. The commissioner's 
73.23 	finding of substantially equal acres is in lieu of an appraisal or other determination of 
73.24 	value of the lands.
73.25 		Subd. 3.School trust lands. If the commissioner conveys a road easement over 
73.26 	school trust land to a nongovernmental entity, the term of the road easement is limited 
73.27 	to 50 years. The easement exchanged with the state may be limited to 50 years or may 
73.28 	be perpetual.
73.29 		Subd. 4.Terms and conditions. The commissioner may impose terms and 
73.30 	conditions of use as necessary and appropriate under the circumstances. The state may 
73.31 	accept an easement with similar terms and conditions as the state easement.
73.32 		Subd. 5.Survey. If the commissioner determines that a survey is required, the 
73.33 	governmental unit or private landowner shall pay to the commissioner a survey fee of not 
73.34 	less than one half of the cost of the survey as determined by the commissioner.
74.1 		Subd. 6.Application fee. When a private landowner or governmental unit, except 
74.2 	the state, presents to the commissioner an offer to exchange road easements, the private 
74.3 	landowner or governmental unit shall pay an application fee as provided under section 
74.4 	84.63 to cover reasonable costs for reviewing the application and preparing the easements.
74.5 		Subd. 7.Title. If the commissioner determines it is necessary to obtain an opinion 
74.6 	as to the title of the land being encumbered by the easement that will be received by the 
74.7 	commissioner, the governmental unit or private landowner shall submit an abstract of title 
74.8 	or other title information sufficient to determine possession of the land, improvements, 
74.9 	liens, encumbrances, and other matters affecting title.
74.10 		Subd. 8.Disposition of fees. (a) Any fee paid under subdivision 5 must be credited 
74.11 	to the account from which expenses are or will be paid and the fee is appropriated for the 
74.12 	expenditures in the same manner as other money in the account.
74.13 	(b) Any fee paid under subdivision 6 must be deposited in the land management 
74.14 	account in the natural resources fund and is appropriated to the commissioner to cover the 
74.15 	reasonable costs incurred for preparing and issuing the state road easement and accepting 
74.16 	the road easement from the private landowner or governmental entity.

74.17 	Sec. 3. Minnesota Statutes 2012, section 84.82, is amended by adding a subdivision to 
74.18 	read:
74.19 		Subd. 2a.Limited nontrail use registration. A snowmobile may be registered for 
74.20 	limited nontrail use. A snowmobile registered under this subdivision may be used solely 
74.21 	for transportation on the frozen surface of public water for purposes of ice fishing and may 
74.22 	not otherwise be operated on a state or grant-in-aid snowmobile trail. The fee for a limited 
74.23 	nontrail use registration is $45 for three years. A limited nontrail use registration is not 
74.24 	transferable. In addition to other penalties prescribed by law, the penalty for violation of 
74.25 	this subdivision is immediate revocation of the limited nontrail use registration. The 
74.26 	commissioner shall ensure that the registration sticker provided for limited nontrail use is 
74.27 	of a different color and is distinguishable from other snowmobile registration and state 
74.28 	trail stickers provided.

74.29 	Sec. 4. Minnesota Statutes 2012, section 84.922, is amended by adding a subdivision 
74.30 	to read:
74.31 		Subd. 14.No registration weekend. The commissioner shall designate by rule one 
74.32 	weekend each year when, notwithstanding subdivision 1, an all-terrain vehicle may be 
74.33 	operated on state and grant-in-aid all-terrain vehicle trails without a registration issued 
75.1 	under this section. Nonresidents may participate during the designated weekend without a 
75.2 	state trail pass required under section 84.9275.

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

75.4 	Sec. 5. Minnesota Statutes 2012, section 84.9256, subdivision 1, is amended to read:
75.5 		Subdivision 1.Prohibitions on youthful operators. (a) Except for operation on 
75.6 	public road rights-of-way that is permitted under section 84.928 and as provided under 
75.7 	paragraph (j), a driver's license issued by the state or another state is required to operate an 
75.8 	all-terrain vehicle along or on a public road right-of-way.
75.9 	(b) A person under 12 years of age shall not:
75.10 	(1) make a direct crossing of a public road right-of-way;
75.11 	(2) operate an all-terrain vehicle on a public road right-of-way in the state; or
75.12 	(3) operate an all-terrain vehicle on public lands or waters, except as provided in 
75.13 	paragraph (f).
75.14 	(c) Except for public road rights-of-way of interstate highways, a person 12 years 
75.15 	of age but less than 16 years may make a direct crossing of a public road right-of-way 
75.16 	of a trunk, county state-aid, or county highway or operate on public lands and waters or 
75.17 	state or grant-in-aid trails, only if that person possesses a valid all-terrain vehicle safety 
75.18 	certificate issued by the commissioner and is accompanied by a person 18 years of age or 
75.19 	older who holds a valid driver's license.
75.20 	(d) To be issued an all-terrain vehicle safety certificate, a person at least 12 years 
75.21 	old, but less than 16 18 years old, must:
75.22 	(1) successfully complete the safety education and training program under section 
75.23 	84.925, subdivision 1, including a riding component; and
75.24 	(2) be able to properly reach and control the handle bars and reach the foot pegs 
75.25 	while sitting upright on the seat of the all-terrain vehicle.
75.26 	(e) A person at least 11 years of age may take the safety education and training 
75.27 	program and may receive an all-terrain vehicle safety certificate under paragraph (d), but 
75.28 	the certificate is not valid until the person reaches age 12.
75.29 	(f) A person at least ten years of age but under 12 years of age may operate an 
75.30 	all-terrain vehicle with an engine capacity up to 90cc on public lands or waters if 
75.31 	accompanied by a parent or legal guardian.
75.32 	(g) A person under 15 years of age shall not operate a class 2 all-terrain vehicle.
75.33 	(h) A person under the age of 16 may not operate an all-terrain vehicle on public 
75.34 	lands or waters or on state or grant-in-aid trails if the person cannot properly reach and 
76.1 	control the handle bars and reach the foot pegs while sitting upright on the seat of the 
76.2 	all-terrain vehicle.
76.3 	(i) Notwithstanding paragraph (c), a nonresident at least 12 years old, but less than 
76.4 	16 years old, may make a direct crossing of a public road right-of-way of a trunk, county 
76.5 	state-aid, or county highway or operate an all-terrain vehicle on public lands and waters 
76.6 	or state or grant-in-aid trails if:
76.7 	(1) the nonresident youth has in possession evidence of completing an all-terrain 
76.8 	safety course offered by the ATV Safety Institute or another state as provided in section 
76.9 	84.925, subdivision 3; and
76.10 	(2) the nonresident youth is accompanied by a person 18 years of age or older who 
76.11 	holds a valid driver's license.
76.12 	(j) A person 12 years of age but less than 16 years of age may operate an all-terrain 
76.13 	vehicle on the bank, slope, or ditch of a public road right-of-way as permitted under 
76.14 	section 84.928 if the person:
76.15 	(1) possesses a valid all-terrain vehicle safety certificate issued by the commissioner; 
76.16 	and
76.17 	(2) is accompanied by a parent or legal guardian on a separate all-terrain vehicle.

76.18 	Sec. 6. Minnesota Statutes 2012, section 84.928, subdivision 1, is amended to read:
76.19 		Subdivision 1.Operation on roads and rights-of-way. (a) Unless otherwise 
76.20 	allowed in sections 84.92 to 84.928, a person shall not operate an all-terrain vehicle in 
76.21 	this state along or on the roadway, shoulder, or inside bank or slope of a public road 
76.22 	right-of-way of a trunk, county state-aid, or county highway.
76.23 	(b) A person may operate a class 1 all-terrain vehicle in the ditch or the outside 
76.24 	bank or slope of a trunk, county state-aid, or county highway unless prohibited under 
76.25 	paragraph (d) or (f).
76.26 	(c) A person may operate a class 2 all-terrain vehicle:
76.27 	(1) within the public road right-of-way of a county state-aid or county highway on 
76.28 	the extreme right-hand side of the road and left turns may be made from any part of 
76.29 	the road if it is safe to do so under the prevailing conditions, unless prohibited under 
76.30 	paragraph (d) or (f).;
76.31 	(2) on the bank, slope, or ditch of a public road right-of-way of a trunk highway, 
76.32 	but only to access businesses or make trail connections, and left turns may be made from 
76.33 	any part of the road if it is safe to do so under the prevailing conditions, unless prohibited 
76.34 	under paragraph (d) or (f); and 
77.1 	(3)A person may operate a class 2 all-terrain vehicle on the bank or ditch of a 
77.2 	public road right-of-way:
77.3 	(i) on a designated class 2 all-terrain vehicle trail.; or
77.4 	(ii) to access businesses or make trail connections when operation within the public 
77.5 	road right-of-way is unsafe.
77.6 	(d) A road authority as defined under section 160.02, subdivision 25, may after a 
77.7 	public hearing restrict the use of all-terrain vehicles in the public road right-of-way under 
77.8 	its jurisdiction.
77.9 	(e) The restrictions in paragraphs (a), (d), (h), (i), and (j) do not apply to the 
77.10 	operation of an all-terrain vehicle on the shoulder, inside bank or slope, ditch, or outside 
77.11 	bank or slope of a trunk, interstate, county state-aid, or county highway:
77.12 	(1) that is part of a funded grant-in-aid trail; or
77.13 	(2) when the all-terrain vehicle is owned by or operated under contract with a publicly 
77.14 	or privately owned utility or pipeline company and used for work on utilities or pipelines.
77.15 	(f) The commissioner may limit the use of a right-of-way for a period of time if the 
77.16 	commissioner determines that use of the right-of-way causes:
77.17 	(1) degradation of vegetation on adjacent public property;
77.18 	(2) siltation of waters of the state;
77.19 	(3) impairment or enhancement to the act of taking game; or
77.20 	(4) a threat to safety of the right-of-way users or to individuals on adjacent public 
77.21 	property.
77.22 	The commissioner must notify the road authority as soon as it is known that a closure 
77.23 	will be ordered. The notice must state the reasons and duration of the closure.
77.24 	(g) A person may operate an all-terrain vehicle registered for private use and used 
77.25 	for agricultural purposes on a public road right-of-way of a trunk, county state-aid, or 
77.26 	county highway in this state if the all-terrain vehicle is operated on the extreme right-hand 
77.27 	side of the road, and left turns may be made from any part of the road if it is safe to do so 
77.28 	under the prevailing conditions.
77.29 	(h) A person shall not operate an all-terrain vehicle within the public road 
77.30 	right-of-way of a trunk, county state-aid, or county highway from April 1 to August 1 in 
77.31 	the agricultural zone unless the vehicle is being used exclusively as transportation to and 
77.32 	from work on agricultural lands. This paragraph does not apply to an agent or employee 
77.33 	of a road authority, as defined in section 160.02, subdivision 25, or the Department of 
77.34 	Natural Resources when performing or exercising official duties or powers.
77.35 	(i) A person shall not operate an all-terrain vehicle within the public road right-of-way 
77.36 	of a trunk, county state-aid, or county highway between the hours of one-half hour after 
78.1 	sunset to one-half hour before sunrise, except on the right-hand side of the right-of-way 
78.2 	and in the same direction as the highway traffic on the nearest lane of the adjacent roadway.
78.3 	(j) A person shall not operate an all-terrain vehicle at any time within the 
78.4 	right-of-way of an interstate highway or freeway within this state.

78.5 	Sec. 7. [84.973] POLLINATOR HABITAT PROGRAM.
78.6 	(a) The commissioner shall develop best management practices and habitat 
78.7 	restoration guidelines for pollinator habitat enhancement. Best management practices 
78.8 	and guidelines developed under this section must be used for all projects on state lands 
78.9 	and must be a condition of any contract for habitat enhancement or restoration of lands 
78.10 	under the commissioner's control.
78.11 	(b) Prairie restorations must include an appropriate diversity of native species 
78.12 	selected to provide habitat for pollinators throughout the growing season.

78.13 	Sec. 8. Minnesota Statutes 2012, section 84D.108, subdivision 2, is amended to read:
78.14 		Subd. 2.Permit requirements. (a) Service providers must complete invasive 
78.15 	species training provided by the commissioner and pass an examination to qualify for a 
78.16 	permit. Service provider permits are valid for three calendar years.
78.17 	(b) A $50 application and testing fee is required for service provider permit 
78.18 	applications.
78.19 	(c) Persons working for a permittee must satisfactorily complete aquatic invasive 
78.20 	species-related training provided by the commissioner, except as provided under 
78.21 	paragraph (d).
78.22 	(d) A person working for and supervised by a permittee is not required to complete 
78.23 	the training under paragraph (c) if the water-related equipment or other water-related 
78.24 	structures remain on the riparian property owned or controlled by the permittee and are 
78.25 	only removed from and placed into the same water of the state.

78.26 	Sec. 9. Minnesota Statutes 2012, section 85.015, subdivision 13, is amended to read:
78.27 		Subd. 13.Arrowhead Region Trails, Cook, Lake, St. Louis, Pine, Carlton, 
78.28 	Koochiching, and Itasca Counties. (a)(1) The Taconite Trail shall originate at Ely in St. 
78.29 	Louis County and extend southwesterly to Tower in St. Louis County, thence westerly to 
78.30 	McCarthy Beach State Park in St. Louis County, thence southwesterly to Grand Rapids in 
78.31 	Itasca County and there terminate;
78.32 	(2) The C. J. Ramstad/Northshore Trail shall originate in Duluth in St. Louis County 
78.33 	and extend northeasterly to Two Harbors in Lake County, thence northeasterly to Grand 
79.1 	Marais in Cook County, thence northeasterly to the international boundary in the vicinity 
79.2 	of the north shore of Lake Superior, and there terminate;
79.3 	(3) The Grand Marais to International Falls Trail shall originate in Grand Marais 
79.4 	in Cook County and extend northwesterly, outside of the Boundary Waters Canoe Area, 
79.5 	to Ely in St. Louis County, thence southwesterly along the route of the Taconite Trail to 
79.6 	Tower in St. Louis County, thence northwesterly through the Pelican Lake area in St. 
79.7 	Louis County to International Falls in Koochiching County, and there terminate;
79.8 	(4) The Matthew Lourey Trail shall originate in Duluth in St. Louis County and 
79.9 	extend southerly to St. Croix Chengwatana State Forest in Pine County.
79.10 	(b) The trails shall be developed primarily for riding and hiking.
79.11 	(c) In addition to the authority granted in subdivision 1, lands and interests in lands 
79.12 	for the Arrowhead Region trails may be acquired by eminent domain. Before acquiring 
79.13 	any land or interest in land by eminent domain the commissioner of administration shall 
79.14 	obtain the approval of the governor. The governor shall consult with the Legislative 
79.15 	Advisory Commission before granting approval. Recommendations of the Legislative 
79.16 	Advisory Commission shall be advisory only. Failure or refusal of the commission to 
79.17 	make a recommendation shall be deemed a negative recommendation.

79.18 	Sec. 10. Minnesota Statutes 2012, section 85.052, subdivision 6, is amended to read:
79.19 		Subd. 6.State park reservation system. (a) The commissioner may, by written 
79.20 	order, develop reasonable reservation policies for campsites and other lodging. These 
79.21 	policies are exempt from rulemaking provisions under chapter 14 and section 14.386
79.22 	does not apply.
79.23 	(b) The revenue collected from the state park reservation fee established under 
79.24 	subdivision 5, including interest earned, shall be deposited in the state park account in the 
79.25 	natural resources fund and is annually appropriated to the commissioner for the cost of 
79.26 	the state park reservation system.

79.27 	EFFECTIVE DATE. This section is effective retroactively from March 1, 2012.

79.28 	Sec. 11. Minnesota Statutes 2012, section 85.054, is amended by adding a subdivision 
79.29 	to read:
79.30 		Subd. 18.La Salle Lake State Recreation Area. A state park permit is not 
79.31 	required and a fee may not be charged for motor vehicle entry, use, or parking in La 
79.32 	Salle Lake State Recreation Area unless the occupants of the vehicle enter, use, or park 
79.33 	in a developed overnight or day-use area.

80.1 	Sec. 12. Minnesota Statutes 2012, section 85.055, subdivision 1, is amended to read:
80.2 		Subdivision 1.Fees. The fee for state park permits for:
80.3 	(1) an annual use of state parks is $25;
80.4 	(2) a second or subsequent vehicle state park permit is $18;
80.5 	(3) a state park permit valid for one day is $5;
80.6 	(4) a daily vehicle state park permit for groups is $3;
80.7 	(5) an annual permit for motorcycles is $20;
80.8 	(6) an employee's state park permit is without charge; and
80.9 	(7) a state park permit for disabled persons under section 85.053, subdivision 7, 
80.10 	clauses (1) and (2) to (3), is $12.
80.11 	The fees specified in this subdivision include any sales tax required by state law.

80.12 	Sec. 13. Minnesota Statutes 2012, section 85.055, subdivision 2, is amended to read:
80.13 		Subd. 2.Fee deposit and appropriation. The fees collected under this section shall 
80.14 	be deposited in the natural resources fund and credited to the state parks account. Money 
80.15 	in the account, except for the electronic licensing system commission established by the 
80.16 	commissioner under section 84.027, subdivision 15, and the state park reservation system 
80.17 	fee established by the commissioner under section 85.052, subdivisions 5 and 6, is available 
80.18 	for appropriation to the commissioner to operate and maintain the state park system.

80.19 	Sec. 14. Minnesota Statutes 2012, section 85.42, is amended to read:
80.20 	85.42 USER FEE; VALIDITY.
80.21 	(a) The fee for an annual cross-country ski pass is $19 for an individual age 16 and 
80.22 	over. The fee for a three-year pass is $54 for an individual age 16 and over. This fee 
80.23 	shall be collected at the time the pass is purchased. Three-year passes are valid for three 
80.24 	years beginning the previous July 1. Annual passes are valid for one year beginning 
80.25 	the previous July 1.
80.26 	(b) The cost for a daily cross-country skier pass is $5 for an individual age 16 and 
80.27 	over. This fee shall be collected at the time the pass is purchased. The daily pass is valid 
80.28 	only for the date designated on the pass form.
80.29 	(c) A pass must be signed by the skier across the front of the pass to be valid and 
80.30 	becomes nontransferable on signing.
80.31 	(d) The commissioner and agents shall issue a duplicate pass to a person whose pass 
80.32 	is lost or destroyed, using the process established under section 97A.405, subdivision 3, 
80.33 	and rules adopted thereunder. The fee for a duplicate cross-country ski pass is $2.

81.1 	Sec. 15. Minnesota Statutes 2012, section 89.0385, is amended to read:
81.2 	89.0385 FOREST MANAGEMENT INVESTMENT ACCOUNT; COST 
81.3 	CERTIFICATION.
81.4 	(a) After each fiscal year, The commissioner shall certify the total costs incurred for 
81.5 	forest management, forest improvement, and road improvement on state-managed lands 
81.6 	during that year. The commissioner shall distribute forest management receipts credited to 
81.7 	various accounts according to this section.
81.8 	(b) The amount of the certified costs incurred for forest management activities on 
81.9 	state lands shall be transferred from the account where receipts are deposited to the forest 
81.10 	management investment account in the natural resources fund, except for those costs 
81.11 	certified under section 16A.125. Transfers may occur quarterly, based on quarterly cost and 
81.12 	revenue reports, throughout the fiscal year, with final certification and reconciliation after 
81.13 	each fiscal year. Transfers in a fiscal year cannot exceed receipts credited to the account.

81.14 	Sec. 16. Minnesota Statutes 2012, section 89.17, is amended to read:
81.15 	89.17 LEASES AND PERMITS.
81.16 	(a) Notwithstanding the permit procedures of chapter 90, the commissioner shall 
81.17 	have power to grant and execute, in the name of the state, leases and permits for the use of 
81.18 	any forest lands under the authority of the commissioner for any purpose which in the 
81.19 	commissioner's opinion is not inconsistent with the maintenance and management of the 
81.20 	forest lands, on forestry principles for timber production. Every such lease or permit shall 
81.21 	be revocable at the discretion of the commissioner at any time subject to such conditions 
81.22 	as may be agreed on in the lease. The approval of the commissioner of administration 
81.23 	shall not be required upon any such lease or permit. No such lease or permit for a period 
81.24 	exceeding 21 years shall be granted except with the approval of the Executive Council.
81.25 	(b) Public access to the leased land for outdoor recreation shall be the same as 
81.26 	access would be under state management.
81.27 	(c) The commissioner shall, by written order, establish the schedule of application 
81.28 	fees for all leases issued under this section. Notwithstanding section 16A.1285, subdivision 
81.29 	2, the application fees shall be set at a rate that neither significantly overrecovers nor 
81.30 	underrecovers costs, including overhead costs, involved in providing the services at the 
81.31 	time of issuing the leases. The commissioner shall update the schedule of application fees 
81.32 	every five years. The schedule of application fees and any adjustment to the schedule are 
81.33 	not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.
82.1 	(d) Money received under paragraph (c) must be deposited in the land management 
82.2 	account in the natural resources fund and is appropriated to the commissioner to cover the 
82.3 	reasonable costs incurred for issuing leases.
82.4 	(e) Notwithstanding section 16A.125, subdivision 5, after deducting the reasonable 
82.5 	costs incurred for preparing and issuing the lease application fee paid according to 
82.6 	paragraph (c), all remaining proceeds from the leasing of school trust land and university 
82.7 	land for roads on forest lands must be deposited into the respective permanent fund for 
82.8 	the lands.

82.9 	Sec. 17. Minnesota Statutes 2012, section 90.01, subdivision 4, is amended to read:
82.10 		Subd. 4.Scaler. "Scaler" means a qualified bonded person designated by the 
82.11 	commissioner to measure timber and cut forest products.

82.12 	Sec. 18. Minnesota Statutes 2012, section 90.01, subdivision 5, is amended to read:
82.13 		Subd. 5.State appraiser. "State appraiser" means an employee of the department 
82.14 	designated by the commissioner to appraise state lands, which includes, but is not limited 
82.15 	to, timber and other forest resource products, for volume, quality, and value.

82.16 	Sec. 19. Minnesota Statutes 2012, section 90.01, subdivision 6, is amended to read:
82.17 		Subd. 6.Timber. "Timber" means trees, shrubs, or woody plants, that will produce 
82.18 	forest products of value whether standing or down, and including but not limited to logs, 
82.19 	sawlogs, posts, poles, bolts, pulpwood, cordwood, fuelwood, woody biomass, lumber,
82.20 	 and woody decorative material.

82.21 	Sec. 20. Minnesota Statutes 2012, section 90.01, subdivision 8, is amended to read:
82.22 		Subd. 8.Permit holder. "Permit holder" means the person holding who is the 
82.23 	signatory of a permit to cut timber on state lands.

82.24 	Sec. 21. Minnesota Statutes 2012, section 90.01, subdivision 11, is amended to read:
82.25 		Subd. 11.Effective permit. "Effective permit" means a permit for which the 
82.26 	commissioner has on file full or partial surety security as required by section 90.161, or
82.27 	90.162, 90.163, or 90.173 or, in the case of permits issued according to section 90.191 or 
82.28 	90.195, the commissioner has received a down payment equal to the full appraised value.

82.29 	Sec. 22. Minnesota Statutes 2012, section 90.031, subdivision 4, is amended to read:
83.1 		Subd. 4.Timber rules. The Executive Council may formulate and establish, from 
83.2 	time to time, rules it deems advisable for the transaction of timber business of the state, 
83.3 	including approval of the sale of timber on any tract in a lot exceeding 6,000 12,000 cords 
83.4 	in volume when the sale is in the best interests of the state, and may abrogate, modify, 
83.5 	or suspend rules at its pleasure.

83.6 	Sec. 23. Minnesota Statutes 2012, section 90.041, subdivision 2, is amended to read:
83.7 		Subd. 2.Trespass on state lands. The commissioner may compromise and settle, 
83.8 	with the approval of notification to the attorney general, upon terms the commissioner 
83.9 	deems just, any claim of the state for casual and involuntary trespass upon state lands or 
83.10 	timber; provided that no claim shall be settled for less than the full value of all timber 
83.11 	or other materials taken in casual trespass or the full amount of all actual damage or 
83.12 	loss suffered by the state as a result. Upon request, the commissioner shall advise the 
83.13 	Executive Council of any information acquired by the commissioner concerning any 
83.14 	trespass on state lands, giving all details and names of witnesses and all compromises and 
83.15 	settlements made under this subdivision.

83.16 	Sec. 24. Minnesota Statutes 2012, section 90.041, subdivision 5, is amended to read:
83.17 		Subd. 5.Forest improvement contracts. The commissioner may contract as part 
83.18 	of the timber sale with the purchaser of state timber at either informal or auction sale 
83.19 	for the following forest improvement work to be done on the land included within the 
83.20 	sale area:. Forest improvement work may include activities relating to preparation of 
83.21 	the site for seeding or planting of seedlings or trees, seeding or planting of seedlings or 
83.22 	trees, and other activities relating related to forest regeneration or deemed necessary by 
83.23 	the commissioner to accomplish forest management objectives, including those related 
83.24 	to water quality protection, trail development, and wildlife habitat enhancement. A 
83.25 	contract issued under this subdivision is not subject to the competitive bidding provisions 
83.26 	of chapter 16C and is exempt from the contract approval provisions of section 16C.05, 
83.27 	subdivision 2. The bid value received in the sale of the timber and the contract bid 
83.28 	cost of the improvement work may be combined and the total value may be considered 
83.29 	by the commissioner in awarding forest improvement contracts under this section. 
83.30 	The commissioner may refuse to accept any and all bids received and cancel a forest 
83.31 	improvement contract sale for good and sufficient reasons.

83.32 	Sec. 25. Minnesota Statutes 2012, section 90.041, subdivision 6, is amended to read:
84.1 		Subd. 6.Sale of damaged timber. The commissioner may sell at public auction 
84.2 	timber that has been damaged by fire, windstorm, flood, insect, disease, or other natural 
84.3 	cause on notice that the commissioner considers reasonable when there is a high risk that 
84.4 	the salvage value of the timber would be lost.

84.5 	Sec. 26. Minnesota Statutes 2012, section 90.041, subdivision 9, is amended to read:
84.6 		Subd. 9.Reoffering unsold timber. To maintain and enhance forest ecosystems on 
84.7 	state forest lands, The commissioner may reoffer timber tracts remaining unsold under the 
84.8 	provisions of section 90.101 below appraised value at public auction with the required 
84.9 	30-day notice under section 90.101, subdivision 2.

84.10 	Sec. 27. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision 
84.11 	to read:
84.12 		Subd. 10.Fees. (a) The commissioner may establish a fee schedule that covers the 
84.13 	commissioner's cost of issuing, administering, and processing various permits, permit 
84.14 	modifications, transfers, assignments, amendments, and other transactions necessary to the 
84.15 	administration of activities under this chapter.
84.16 	(b) A fee established under this subdivision is not subject to the rulemaking 
84.17 	provisions of chapter 14 and section 14.386 does not apply. The commissioner may 
84.18 	establish fees under this subdivision notwithstanding section 16A.1283.

84.19 	Sec. 28. Minnesota Statutes 2012, section 90.041, is amended by adding a subdivision 
84.20 	to read:
84.21 		Subd. 11.Debarment. The commissioner may debar a permit holder if the holder 
84.22 	is convicted in Minnesota at the gross misdemeanor or felony level of criminal willful 
84.23 	trespass, theft, fraud, or antitrust violation involving state, federal, county, or privately 
84.24 	owned timber in Minnesota or convicted in any other state involving similar offenses and 
84.25 	penalties for timber owned in that state. The commissioner shall cancel and repossess the 
84.26 	permit directly involved in the prosecution of the crime. The commissioner shall cancel 
84.27 	and repossess all other state timber permits held by the permit holder after taking from 
84.28 	all security deposits money to which the state is entitled. The commissioner shall return 
84.29 	the remainder of the security deposits, if any, to the permit holder. The debarred permit 
84.30 	holder is prohibited from bidding, possessing, or being employed on any state timber 
84.31 	permit during the period of debarment. The period of debarment is not less than one year 
84.32 	or greater than three years. The duration of the debarment is based on the severity of the 
85.1 	violation, past history of compliance with timber permits, and the amount of loss incurred 
85.2 	by the state arising from violations of timber permits.

85.3 	Sec. 29. Minnesota Statutes 2012, section 90.045, is amended to read:
85.4 	90.045 APPRAISAL STANDARDS.
85.5 	By July 1, 1983, the commissioner shall establish specific timber appraisal standards 
85.6 	according to which all timber appraisals will be conducted under this chapter. The 
85.7 	standards shall include a specification of the maximum allowable appraisal sampling error, 
85.8 	and including the procedures for tree defect allowance, tract area estimation, product 
85.9 	volume estimation, and product value determination. The timber appraisal standards shall 
85.10 	be included in each edition of the timber sales manual published by the commissioner. In 
85.11 	addition to the duties pursuant to section 90.061, every state appraiser shall work within 
85.12 	the guidelines of the timber appraisal standards. The standards shall not be subject to 
85.13 	the rulemaking provisions of chapter 14.

85.14 	Sec. 30. Minnesota Statutes 2012, section 90.061, subdivision 8, is amended to read:
85.15 		Subd. 8.Appraiser authority; form of documents. State appraisers are 
85.16 	empowered, with the consent of the commissioner, to perform any scaling, and generally 
85.17 	to supervise the cutting and removal of timber and forest products on or from state lands 
85.18 	so far as may be reasonably necessary to insure compliance with the terms of the permits 
85.19 	or other contracts governing the same and protect the state from loss.
85.20 	The form of appraisal reports, records, and notes to be kept by state appraisers 
85.21 	shall be as the commissioner prescribes.

85.22 	Sec. 31. Minnesota Statutes 2012, section 90.101, subdivision 1, is amended to read:
85.23 		Subdivision 1.Sale requirements. The commissioner may sell the timber on any 
85.24 	tract of state land and may determine the number of sections or fractional sections of land 
85.25 	to be included in the permit area covered by any one permit issued to the purchaser of 
85.26 	timber on state lands, or in any one contract or other instrument relating thereto. No 
85.27 	timber shall be sold, except (1) to the highest responsible bidder at public auction, or 
85.28 	(2) if unsold at public auction, the commissioner may offer the timber for private sale 
85.29 	for a period of no more than six months one year after the public auction to any person
85.30 	 responsible bidder who pays the appraised value for the timber. The minimum price shall 
85.31 	be the appraised value as fixed by the report of the state appraiser. Sales may include tracts 
85.32 	in more than one contiguous county or forestry administrative area and shall be held either 
85.33 	in the county or forestry administrative area in which the tract is located or in an adjacent 
86.1 	county or forestry administrative area that is nearest the tract offered for sale or that is 
86.2 	most accessible to potential bidders. In adjoining counties or forestry administrative areas, 
86.3 	sales may not be held less than two hours apart.

86.4 	Sec. 32. Minnesota Statutes 2012, section 90.121, is amended to read:
86.5 	90.121 INTERMEDIATE AUCTION SALES; MAXIMUM LOTS OF 3,000 
86.6 	CORDS.
86.7 	(a) The commissioner may sell the timber on any tract of state land in lots not 
86.8 	exceeding 3,000 cords in volume, in the same manner as timber sold at public auction under 
86.9 	section 90.101, and related laws, subject to the following special exceptions and limitations:
86.10 	(1) the commissioner shall offer all tracts authorized for sale by this section 
86.11 	separately from the sale of tracts of state timber made pursuant to section 90.101;
86.12 	(2) no bidder may be awarded more than 25 percent of the total tracts offered at the 
86.13 	first round of bidding unless fewer than four tracts are offered, in which case not more than 
86.14 	one tract shall be awarded to one bidder. Any tract not sold at public auction may be offered 
86.15 	for private sale as authorized by section 90.101, subdivision 1, 30 days after the auction to 
86.16 	persons responsible bidders eligible under this section at the appraised value; and
86.17 	(3) no sale may be made to a person responsible bidder having more than 30 
86.18 	employees. For the purposes of this clause, "employee" means an individual working in 
86.19 	the timber or wood products industry for salary or wages on a full-time or part-time basis.
86.20 	(b) The auction sale procedure set forth in this section constitutes an additional 
86.21 	alternative timber sale procedure available to the commissioner and is not intended to 
86.22 	replace other authority possessed by the commissioner to sell timber in lots of 3,000 
86.23 	cords or less.
86.24 	(c) Another bidder or the commissioner may request that the number of employees a 
86.25 	bidder has pursuant to paragraph (a), clause (3), be confirmed by signed affidavit if there is 
86.26 	evidence that the bidder may be ineligible due to exceeding the employee threshold. The 
86.27 	commissioner shall request information from the commissioners of labor and industry and 
86.28 	employment and economic development including the premiums paid by the bidder in 
86.29 	question for workers' compensation insurance coverage for all employees of the bidder. 
86.30 	The commissioner shall review the information submitted by the commissioners of labor 
86.31 	and industry and employment and economic development and make a determination based 
86.32 	on that information as to whether the bidder is eligible. A bidder is considered eligible and 
86.33 	may participate in intermediate auctions until determined ineligible under this paragraph.

87.1 	Sec. 33. Minnesota Statutes 2012, section 90.145, is amended to read:
87.2 	90.145 PURCHASER QUALIFICATIONS AND, REGISTRATION, AND 
87.3 	REQUIREMENTS.
87.4 		Subdivision 1.Purchaser qualifications requirements. (a) In addition to any other 
87.5 	requirements imposed by this chapter, the purchaser of a state timber permit issued under 
87.6 	section 90.151 must meet the requirements in paragraphs (b) to (d) (e).
87.7 	(b) The purchaser and or the purchaser's agents, employees, subcontractors, and 
87.8 	assigns conducting logging operations on the timber permit must comply with general 
87.9 	industry safety standards for logging adopted by the commissioner of labor and industry 
87.10 	under chapter 182. The commissioner of natural resources shall may require a purchaser 
87.11 	to provide proof of compliance with the general industry safety standards.
87.12 	(c) The purchaser and or the purchaser's agents, subcontractors, and assigns 
87.13 	conducting logging operations on the timber permit must comply with the mandatory 
87.14 	insurance requirements of chapter 176. The commissioner shall may require a purchaser 
87.15 	to provide a copy of the proof of insurance required by section 176.130 before the start of 
87.16 	harvesting operations on any permit.
87.17 	(d) Before the start of harvesting operations on any permit, the purchaser must certify 
87.18 	that a foreperson or other designated employee who has a current certificate of completion,
87.19 	which includes instruction in site-level forest management guidelines or best management 
87.20 	practices, from the Minnesota Logger Education Program (MLEP), the Wisconsin Forest 
87.21 	Industry Safety and Training Alliance (FISTA), or any similar continuous education 
87.22 	program acceptable to the commissioner, is supervising active logging operations.
87.23 	(e) The purchaser and the purchaser's agents, employees, subcontractors, and assigns 
87.24 	who will be involved with logging or scaling state timber must be in compliance with 
87.25 	this chapter.
87.26 		Subd. 2.Purchaser preregistration registration. To facilitate the sale of permits 
87.27 	issued under section 90.151, the commissioner may establish a purchaser preregistration
87.28 	registration system to verify the qualifications of a person as a responsible bidder to 
87.29 	purchase a timber permit. Any system implemented by the commissioner shall be limited 
87.30 	in scope to only that information that is required for the efficient administration of the 
87.31 	purchaser qualification provisionsrequirements of this chapter and shall conform with the 
87.32 	requirements of chapter 13. The registration system established under this subdivision is 
87.33 	not subject to the rulemaking provisions of chapter 14 and section 14.386 does not apply.

87.34 	Sec. 34. Minnesota Statutes 2012, section 90.151, subdivision 1, is amended to read:
88.1 		Subdivision 1.Issuance; expiration. (a) Following receipt of the down payment 
88.2 	for state timber required under section 90.14 or 90.191, the commissioner shall issue a 
88.3 	numbered permit to the purchaser, in a form approved by the attorney general, by the 
88.4 	terms of which the purchaser shall be authorized to enter upon the land, and to cut and 
88.5 	remove the timber therein described as designated for cutting in the report of the state 
88.6 	appraiser, according to the provisions of this chapter. The permit shall be correctly 
88.7 	dated and executed by the commissioner and signed by the purchaser. If a permit is not 
88.8 	signed by the purchaser within 60 45 days from the date of purchase, the permit cancels 
88.9 	and the down payment for timber required under section 90.14 forfeits to the state. The 
88.10 	commissioner may grant an additional period for the purchaser to sign the permit, not to 
88.11 	exceed five ten business days, provided the purchaser pays a $125 $200 penalty fee.
88.12 	(b) The permit shall expire no later than five years after the date of sale as the 
88.13 	commissioner shall specify or as specified under section 90.191, and the timber shall 
88.14 	be cut and removed within the time specified therein. All cut timber, equipment, and 
88.15 	buildings not removed from the land within 90 days after expiration of the permit shall 
88.16 	become the property of the state. If additional time is needed, the permit holder must 
88.17 	request, prior to the expiration date, and may be granted, for good and sufficient reasons, 
88.18 	up to 90 additional days for the completion of skidding, hauling, and removing all 
88.19 	equipment and buildings. All cut timber, equipment, and buildings not removed from the 
88.20 	land after expiration of the permit becomes the property of the state.
88.21 	(c) The commissioner may grant an additional period of time not to exceed 120 240
88.22 	 days for the removal of cut timber, equipment, and buildings upon receipt of such a written
88.23 	 request by the permit holder for good and sufficient reasons. The commissioner may grant 
88.24 	a second period of time not to exceed 120 days for the removal of cut timber, equipment, 
88.25 	and buildings upon receipt of a request by the permit holder for hardship reasons only.
88.26 	 The permit holder may combine in the written request under this paragraph the request 
88.27 	for additional time under paragraph (b).

88.28 	Sec. 35. Minnesota Statutes 2012, section 90.151, subdivision 2, is amended to read:
88.29 		Subd. 2.Permit requirements. The permit shall state the amount of timber 
88.30 	estimated for cutting on the land, the estimated value thereof, and the price at which it is 
88.31 	sold in units of per thousand feet, per cord, per piece, per ton, or by whatever description 
88.32 	sold, and shall specify that all landings of cut products shall be legibly marked with the 
88.33 	assigned permit number. The permit shall provide for the continuous identification 
88.34 	and control of the cut timber from the time of cutting until delivery to the consumer. 
89.1 	The permit shall provide that failure to continuously identify the timber as specified in 
89.2 	the permit constitutes trespass.

89.3 	Sec. 36. Minnesota Statutes 2012, section 90.151, subdivision 3, is amended to read:
89.4 		Subd. 3.Security provisions. The permit shall contain such provisions as may be 
89.5 	necessary to secure to the state the title of all timber cut thereunder wherever found until 
89.6 	full payment therefor and until all provisions of the permit have been fully complied 
89.7 	with. The permit shall provide that from the date the same becomes effective cutting 
89.8 	commences until the expiration thereof of the permit, including all extensions, the 
89.9 	purchaser and successors in interest shall be liable to the state for the full permit price of 
89.10 	all timber covered thereby, notwithstanding any subsequent damage or injury thereto or 
89.11 	trespass thereon or theft thereof, and without prejudice to the right of the state to pursue 
89.12 	such timber and recover the value thereof anywhere prior to the payment therefor in full to 
89.13 	the state. If an effective permit is forfeited prior to any cutting activity, the purchaser is 
89.14 	liable to the state for a sum equal to the down payment and bid guarantee. Upon recovery 
89.15 	from any person other than the permit holder, the permit holder shall be deemed released 
89.16 	to the extent of the net amount, after deducting all expenses of collecting same, recovered 
89.17 	by the state from such other person.

89.18 	Sec. 37. Minnesota Statutes 2012, section 90.151, subdivision 4, is amended to read:
89.19 		Subd. 4.Permit terms. Once a permit becomes effective and cutting commences, 
89.20 	the permit holder is liable to the state for the permit price for all timber required to be cut, 
89.21 	including timber not cut. The permit shall provide that all timber sold or designated for 
89.22 	cutting shall be cut without in such a manner so as not to cause damage to other timber; 
89.23 	that the permit holder shall remove all timber authorized and designated to be cut under 
89.24 	the permit; that timber sold by board measure identified in the permit, but later determined 
89.25 	by the commissioner not to be convertible into boardthe permit's measure, shall be paid 
89.26 	for by the piece or cord or other unit of measure according to the size, species, or value, as 
89.27 	may be determined by the commissioner; and that all timber products, except as specified 
89.28 	by the commissioner, shall be scaled and the final settlement for the timber cut shall be 
89.29 	made on this scale; and that the permit holder shall pay to the state the permit price for 
89.30 	all timber authorized to be cut, including timber not cut.

89.31 	Sec. 38. Minnesota Statutes 2012, section 90.151, subdivision 6, is amended to read:
89.32 		Subd. 6.Notice and approval required. The permit shall provide that the permit 
89.33 	holder shall not start cutting any state timber nor clear building sites landings nor logging 
90.1 	roads until the commissioner has been notified and has given prior approval to such 
90.2 	cutting operations. Approval shall not be granted until the permit holder has completed 
90.3 	a presale conference with the state appraiser designated to supervise the cutting. The 
90.4 	permit holder shall also give prior notice whenever permit operations are to be temporarily 
90.5 	halted, whenever permit operations are to be resumed, and when permit operations are to 
90.6 	be completed.

90.7 	Sec. 39. Minnesota Statutes 2012, section 90.151, subdivision 7, is amended to read:
90.8 		Subd. 7.Liability for timber cut in trespass. The permit shall provide that the 
90.9 	permit holder shall pay the permit price value for any timber sold which is negligently 
90.10 	destroyed or damaged by the permit holder in cutting or removing other timber sold. If the 
90.11 	permit holder shall cut or remove or negligently destroy or damage any timber upon the 
90.12 	land described, not sold under the permit, except such timber as it may be necessary to cut 
90.13 	and remove in the construction of necessary logging roads and landings approved as to 
90.14 	location and route by the commissioner, such timber shall be deemed to have been cut in 
90.15 	trespass. The permit holder shall be liable for any such timber and recourse may be had 
90.16 	upon the bond security deposit.

90.17 	Sec. 40. Minnesota Statutes 2012, section 90.151, subdivision 8, is amended to read:
90.18 		Subd. 8.Suspension; cancellation. The permit shall provide that the commissioner 
90.19 	shall have the power to order suspension of all operations under the permit when in the 
90.20 	commissioner's judgment the conditions thereof have not been complied with and any 
90.21 	timber cut or removed during such suspension shall be deemed to have been cut in trespass; 
90.22 	that the commissioner may cancel the permit at any time when in the commissioner's 
90.23 	judgment the conditions thereof have not been complied with due to a breach of the permit 
90.24 	conditions and such cancellation shall constitute repossession of the timber by the state; 
90.25 	that the permit holder shall remove equipment and buildings from such land within 90 days 
90.26 	after such cancellation; that, if the purchaser at any time fails to pay any obligations to the 
90.27 	state under any other permits, any or all permits may be canceled; and that any timber cut 
90.28 	or removed in violation of the terms of the permit or of any law shall constitute trespass.

90.29 	Sec. 41. Minnesota Statutes 2012, section 90.151, subdivision 9, is amended to read:
90.30 		Subd. 9.Slashings disposal. The permit shall provide that the permit holder shall 
90.31 	burn or otherwise dispose of or treat all slashings or other refuse resulting from cutting 
90.32 	operations, as specified in the permit, in the manner now or hereafter provided by law.

91.1 	Sec. 42. Minnesota Statutes 2012, section 90.161, is amended to read:
91.2 	90.161 SURETY BONDS FOR AUCTION SECURITY DEPOSITS 
91.3 	REQUIRED FOR EFFECTIVE TIMBER PERMITS.
91.4 		Subdivision 1.Bond Security deposit required. (a) Except as otherwise provided 
91.5 	by law, the purchaser of any state timber, before any timber permit becomes effective for 
91.6 	any purpose, shall give a good and valid bond security in the form of cash; a certified 
91.7 	check; a cashier's check; a postal, bank, or express money order; a corporate surety bond; 
91.8 	or an irrevocable bank letter of credit to the state of Minnesota equal to the value of all 
91.9 	timber covered or to be covered by the permit, as shown by the sale price bid and the 
91.10 	appraisal report as to quantity, less the amount of any payments pursuant to sections
91.11 	section 90.14and 90.163.
91.12 	(b) The bond security deposit shall be conditioned upon the faithful performance 
91.13 	by the purchaser and successors in interest of all terms and conditions of the permit and 
91.14 	all requirements of law in respect to timber sales. The bond security deposit shall be 
91.15 	approved in writing by the commissioner and filed for record in the commissioner's office.
91.16 	(c)In the alternative to cash and bond requirements, but upon the same conditions,
91.17 	 A purchaser may post bond for 100 percent of the purchase price and request refund of the 
91.18 	amount of any payments pursuant to sections section90.14and 90.163. The commissioner 
91.19 	may credit the refund to any other permit held by the same permit holder if the permit is 
91.20 	delinquent as provided in section 90.181, subdivision 2, or may credit the refund to any 
91.21 	other permit to which the permit holder requests that it be credited.
91.22 	(d) In the event of a default, the commissioner may take from the deposit the sum of 
91.23 	money to which the state is entitled. The commissioner shall return the remainder of the 
91.24 	deposit, if any, to the person making the deposit. When cash is deposited as security, it 
91.25 	shall be applied to the amount due when a statement is prepared and transmitted to the 
91.26 	permit holder according to section 90.181. Any balance due to the state shall be shown on 
91.27 	the statement and shall be paid as provided in section 90.181. Any amount of the deposit 
91.28 	in excess of the amount determined to be due according to section 90.181 shall be returned 
91.29 	to the permit holder when a final statement is transmitted under section 90.181. All or 
91.30 	part of a cash deposit may be withheld from application to an amount due on a nonfinal 
91.31 	statement if it appears that the total amount due on the permit will exceed the bid price.
91.32 	(e) If an irrevocable bank letter of credit is provided as security under paragraph 
91.33 	(a), at the written request of the permittee, the commissioner shall annually allow the 
91.34 	amount of the bank letter of credit to be reduced by an amount proportionate to the value 
91.35 	of timber that has been harvested and for which the state has received payment under the 
91.36 	timber permit. The remaining amount of the bank letter of credit after a reduction under 
92.1 	this paragraph must not be less than the value of the timber remaining to be harvested 
92.2 	under the timber permit.
92.3 	(f) If cash; a certified check; a cashier's check; a personal check; or a postal, bank, or 
92.4 	express money order is provided as security under paragraph (a) and no cutting of state 
92.5 	timber has taken place on the permit, the commissioner may credit the security provided, 
92.6 	less any deposit required under section 90.14, to any other permit to which the permit 
92.7 	holder requests in writing that it be credited.
92.8 		Subd. 2.Failure to bond provide security deposit. If bond the security deposit is 
92.9 	not furnished, no harvesting may occur and the down payment for timber 15 percent of the 
92.10 	permit's purchase price shall forfeit to the state when the permit expires.
92.11 		Subd. 3.Subrogation. In case of default When security is provided by surety 
92.12 	bond and the permit holder defaults in payment by the permit holder, the surety upon the 
92.13 	bond shall make payment in full to the state of all sums of money due under such permit; 
92.14 	and thereupon such surety shall be deemed immediately subrogated to all the rights of 
92.15 	the state in the timber so paid for; and such subrogated party may pursue the timber and 
92.16 	recover therefor, or have any other appropriate relief in relation thereto which the state 
92.17 	might or could have had if such surety had not made such payment. No assignment or 
92.18 	other writing on the part of the state shall be necessary to make such subrogation effective, 
92.19 	but the certificate signed by and bearing the official seal of the commissioner, showing the 
92.20 	amount of such timber, the lands from which it was cut or upon which it stood, and the 
92.21 	amount paid therefor, shall be prima facie evidence of such facts.
92.22 		Subd. 4.Change of security. Prior to any harvest cutting activity, or activities 
92.23 	incidental to the preparation for harvest, a purchaser having posted a bond security deposit
92.24 	 for 100 percent of the purchase price of a sale may request the release of the bond security
92.25 	 and the commissioner shall grant the release upon cash payment to the commissioner of 
92.26 	15 percent of the appraised value of the sale, plus eight percent interest on the appraised 
92.27 	value of the sale from the date of purchase to the date of release while retaining, or upon 
92.28 	repayment of, the permit's down payment and bid guarantee deposit requirement.
92.29 		Subd. 5.Return of security. Any security required under this section shall be 
92.30 	returned to the purchaser within 60 days after the final scale.

92.31 	Sec. 43. Minnesota Statutes 2012, section 90.162, is amended to read:
92.32 	90.162 ALTERNATIVE TO BOND OR DEPOSIT REQUIREMENTS
92.33 	 SECURING TIMBER PERMITS WITH CUTTING BLOCKS.
92.34 	In lieu of the bond or cash security deposit equal to the value of all timber covered 
92.35 	by the permit required by section 90.161or 90.173, a purchaser of state timber may elect 
93.1 	in writing on a form prescribed by the attorney general to give good and valid surety to the 
93.2 	state of Minnesota equal to the purchase price for any designated cutting block identified 
93.3 	on the permit before the date the purchaser enters upon the land to begin harvesting the 
93.4 	timber on the designated cutting block.

93.5 	Sec. 44. [90.164] TIMBER PERMIT DEVELOPMENT OPTION.
93.6 	With the completion of the presale conference requirement under section 90.151, 
93.7 	subdivision 6, a permit holder may access the permit area in advance of the permit being 
93.8 	fully secured as required by section 90.161, for the express purpose of clearing approved 
93.9 	landings and logging roads. No cutting of state timber except that incidental to the clearing 
93.10 	of approved landings and logging roads is allowed under this section.

93.11 	Sec. 45. Minnesota Statutes 2012, section 90.171, is amended to read:
93.12 	90.171 ASSIGNMENT OF AUCTION TIMBER PERMITS.
93.13 	Any permit sold at public auction may be assigned upon written approval of the 
93.14 	commissioner. The assignment of any permit shall be signed and acknowledged by the 
93.15 	permit holder. The commissioner shall not approve any assignment until the assignee has 
93.16 	been determined to meet the qualifications of a responsible bidder and has given to the state 
93.17 	a bond security deposit which shall be substantially in the form of, and shall be deemed 
93.18 	of the same effect as, the bond security deposit required of the original purchaser. The 
93.19 	commissioner may accept thean agreement of the assignee and any corporate surety upon 
93.20 	suchan original bond, substituting the assignee in the place of suchthe original purchaser 
93.21 	and continuing suchthe original bond in full force and effect, as to the assignee. Thereupon 
93.22 	but not otherwise the permit holder making the assignment shall be released from all 
93.23 	liability arising or accruing from actions taken after the assignment became effective.

93.24 	Sec. 46. Minnesota Statutes 2012, section 90.181, subdivision 2, is amended to read:
93.25 		Subd. 2.Deferred payments. (a) If the amount of the statement is not paid within 
93.26 	30 days of the date thereof, it shall bear interest at the rate determined pursuant to section 
93.27 	16A.124, except that the purchaser shall not be required to pay interest that totals $1 or 
93.28 	less. If the amount is not paid within 60 days, the commissioner shall place the account in 
93.29 	the hands of the commissioner of revenue according to chapter 16D, who shall proceed to 
93.30 	collect the same. When deemed in the best interests of the state, the commissioner shall 
93.31 	take possession of the timber for which an amount is due wherever it may be found and 
93.32 	sell the same informally or at public auction after giving reasonable notice.
94.1 	(b) The proceeds of the sale shall be applied, first, to the payment of the expenses 
94.2 	of seizure and sale; and, second, to the payment of the amount due for the timber, with 
94.3 	interest; and the surplus, if any, shall belong to the state; and, in case a sufficient amount is 
94.4 	not realized to pay these amounts in full, the balance shall be collected by the attorney 
94.5 	general. Neither payment of the amount, nor the recovery of judgment therefor, nor 
94.6 	satisfaction of the judgment, nor the seizure and sale of timber, shall release the sureties 
94.7 	on any bond security deposit given pursuant to this chapter, or preclude the state from 
94.8 	afterwards claiming that the timber was cut or removed contrary to law and recovering 
94.9 	damages for the trespass thereby committed, or from prosecuting the offender criminally.

94.10 	Sec. 47. Minnesota Statutes 2012, section 90.191, subdivision 1, is amended to read:
94.11 		Subdivision 1.Sale requirements. The commissioner may sell the timber on any 
94.12 	tract of state land in lots not exceeding 500 cords in volume, without formalities but for 
94.13 	not less than the full appraised value thereof, to any person. No sale shall be made under 
94.14 	this section to any person holding two more than four permits issued hereunder which are 
94.15 	still in effect;.except that (1) a partnership as defined in chapter 323, which may include 
94.16 	spouses but which shall provide evidence that a partnership exists, may be holding two 
94.17 	permits for each of not more than three partners who are actively engaged in the business 
94.18 	of logging or who are the spouses of persons who are actively engaged in the business of 
94.19 	logging with that partnership; and (2) a corporation, a majority of whose shares and voting 
94.20 	power are owned by natural persons related to each other within the fourth degree of 
94.21 	kindred according to the rules of the civil law or their spouses or estates, may be holding 
94.22 	two permits for each of not more than three shareholders who are actively engaged in the 
94.23 	business of logging or who are the spouses of persons who are actively engaged in the 
94.24 	business of logging with that corporation.

94.25 	Sec. 48. Minnesota Statutes 2012, section 90.193, is amended to read:
94.26 	90.193 EXTENSION OF TIMBER PERMITS.
94.27 	The commissioner may, in the case of an exceptional circumstance beyond the 
94.28 	control of the timber permit holder which makes it unreasonable, impractical, and not 
94.29 	feasible to complete cutting and removal under the permit within the time allowed, grant 
94.30 	an one regular extension of for one year. A written request for the regular extension must 
94.31 	be received by the commissioner before the permit expires. The request must state the 
94.32 	reason the extension is necessary and be signed by the permit holder. An interest rate of 
94.33 	eight percent may be charged for the period of extension.

95.1 	Sec. 49. Minnesota Statutes 2012, section 90.195, is amended to read:
95.2 	90.195 SPECIAL USE AND PRODUCT PERMIT.
95.3 	(a) The commissioner may issue a permit to salvage or cut not to exceed 12 cords of 
95.4 	fuelwood per year for personal use from either or both of the following sources: (1) dead, 
95.5 	down, and diseased damaged trees; (2) other trees that are of negative value under good 
95.6 	forest management practices. The permits may be issued for a period not to exceed one 
95.7 	year. The commissioner shall charge a fee for the permit that shall cover the commissioner's 
95.8 	cost of issuing the permit and as provided under section 90.041, subdivision 10. The fee
95.9 	 shall not exceed the current market value of fuelwood of similar species, grade, and volume 
95.10 	that is being sold in the area where the salvage or cutting is authorized under the permit.
95.11 	(b) The commissioner may issue a special product permit under section 89.42 for 
95.12 	commercial use, which may include incidental volumes of boughs, gravel, hay, biomass, 
95.13 	and other products derived from forest management activities. The value of the products 
95.14 	is the current market value of the products that are being sold in the area. The permit may 
95.15 	be issued for a period not to exceed one year and the commissioner shall charge a fee for 
95.16 	the permit as provided under section 90.041, subdivision 10.
95.17 	(c) The commissioner may issue a special use permit for incidental volumes of 
95.18 	timber from approved right-of-way road clearing across state land for the purpose of 
95.19 	accessing a state timber permit. The permit shall include the volume and value of timber 
95.20 	to be cleared and may be issued for a period not to exceed one year. A presale conference 
95.21 	as required under section 90.151, subdivision 6, must be completed before the start of 
95.22 	any activities under the permit.

95.23 	Sec. 50. Minnesota Statutes 2012, section 90.201, subdivision 2a, is amended to read:
95.24 		Subd. 2a.Prompt payment of refunds. Any refund of cash that is due to a permit 
95.25 	holder as determined on a final statement transmitted pursuant to section 90.181 or a 
95.26 	refund of cash made pursuant to section 90.161, subdivision 1, or 90.173, paragraph 
95.27 	(a), shall be paid to the permit holder according to section 16A.124 unless the refund is 
95.28 	credited on another permit as provided in this chapter.

95.29 	Sec. 51. Minnesota Statutes 2012, section 90.211, is amended to read:
95.30 	90.211 PURCHASE MONEY, WHEN FORFEITED.
95.31 	If the holder of an effective permit begins to cut and then fails to cut complete any 
95.32 	part thereof of the permit before the expiration of the permit, the permit holder shall 
95.33 	nevertheless pay the price therefor; but under no circumstances shall timber be cut after 
95.34 	the expiration of the permit or extension thereof.

96.1 	Sec. 52. Minnesota Statutes 2012, section 90.221, is amended to read:
96.2 	90.221 TIMBER SALES RECORDS.
96.3 	The commissioner shall keep timber sales records, including the description of each 
96.4 	tract of land from which any timber is sold; the date of the report of the state appraisers; 
96.5 	the kind, amount, and value of the timber as shown by such report; the date of the sale; 
96.6 	the price for which the timber was sold; the name of the purchaser; the number, date 
96.7 	of issuance and date of expiration of each permit; the date of any assignment of the 
96.8 	permit; the name of the assignee; the dates of the filing and the amounts of the respective 
96.9 	bonds security deposits by the purchaser and assignee; the names of the sureties thereon; 
96.10 	the amount of timber taken from the land; the date of the report of the scaler and state 
96.11 	appraiser; the names of the scaler and the state appraiser who scaled the timber; and the 
96.12 	amount paid for such timber and the date of payment.

96.13 	Sec. 53. Minnesota Statutes 2012, section 90.252, subdivision 1, is amended to read:
96.14 		Subdivision 1.Consumer scaling. The commissioner may enter into an agreement 
96.15 	with either a timber sale permittee, or the purchaser of the cut products, or both, so 
96.16 	that the scaling of the cut timber and the collection of the payment for the same can be 
96.17 	consummated by the consumer state. Such an agreement shall be approved as to form and 
96.18 	content by the attorney general and shall provide for a bond or cash in lieu of a bond and 
96.19 	such other safeguards as are necessary to protect the interests of the state. The scaling 
96.20 	and payment collection procedure may be used for any state timber sale, except that no 
96.21 	permittee who is also the consumer shall both cut and scale the timber sold unless such 
96.22 	scaling is supervised by a state scaler.

96.23 	Sec. 54. Minnesota Statutes 2012, section 90.301, subdivision 2, is amended to read:
96.24 		Subd. 2.Seizure of unlawfully cut timber. The commissioner may take possession 
96.25 	of any timber hereafter unlawfully cut upon or taken from any land owned by the state 
96.26 	wherever found and may sell the same informally or at public auction after giving such 
96.27 	notice as the commissioner deems reasonable and after deducting all the expenses of such 
96.28 	sale the proceeds thereof shall be paid into the state treasury to the credit of the proper 
96.29 	fund; and when any timber so unlawfully cut has been intermingled with any other timber 
96.30 	or property so that it cannot be identified or plainly separated therefrom the commissioner 
96.31 	may so seize and sell the whole quantity so intermingled and, in such case, the whole 
96.32 	quantity of such timber shall be conclusively presumed to have been unlawfully taken 
96.33 	from state land. When the timber unlawfully cut or removed from state land is so seized 
96.34 	and sold, the seizure shall not in any manner relieve the trespasser who cut or removed, or 
97.1 	caused the cutting or removal of, any such timber from the full liability imposed by this 
97.2 	chapter for the trespass so committed, but the net amount realized from such sale shall 
97.3 	be credited on whatever judgment is recovered against such trespasser, if the trespass 
97.4 	was deemed to be casual and involuntary.

97.5 	Sec. 55. Minnesota Statutes 2012, section 90.301, subdivision 4, is amended to read:
97.6 		Subd. 4.Apprehension of trespassers; reward. The commissioner may offer a 
97.7 	reward to be paid to a person giving to the proper authorities any information that leads to 
97.8 	the conviction of a person violating this chapter. The reward is limited to the greater of 
97.9 	$100 or ten percent of the single stumpage value of any timber unlawfully cut or removed. 
97.10 	The commissioner shall pay the reward from funds appropriated for that purpose or from 
97.11 	receipts from the sale of state timber. A reward shall not be paid to salaried forest officers, 
97.12 	state appraisers, scalers, conservation officers, or licensed peace officers.

97.13 	Sec. 56. Minnesota Statutes 2012, section 90.41, subdivision 1, is amended to read:
97.14 		Subdivision 1.Violations and penalty. (a) Any state scaler or state appraiser who 
97.15 	shall accept any compensation or gratuity for services as such from any other source 
97.16 	except the state of Minnesota, or any state scaler, or other person authorized to scale state 
97.17 	timber, or state appraiser, who shall make any false report, or insert in any such report any 
97.18 	false statement, or shall make any such report without having examined the land embraced 
97.19 	therein or without having actually been upon the land, or omit from any such report any 
97.20 	statement required by law to be made therein, or who shall fail to report any known trespass 
97.21 	committed upon state lands, or who shall conspire with any other person in any manner, by 
97.22 	act or omission or otherwise, to defraud or unlawfully deprive the state of Minnesota of any 
97.23 	land or timber, or the value thereof, shall be guilty of a felony. Any material discrepancy 
97.24 	between the facts and the scale returned by any such person scaling timber for the state 
97.25 	shall be considered prima facie evidence that such person is guilty of violating this statute.
97.26 	(b) No such appraiser or scaler who has been once discharged for cause shall ever 
97.27 	again be appointed. This provision shall not apply to resignations voluntarily made by and 
97.28 	accepted from such employees.

97.29 	Sec. 57. Minnesota Statutes 2012, section 92.50, is amended to read:
97.30 	92.50 UNSOLD LANDS SUBJECT TO SALE MAY BE LEASED.
97.31 		Subdivision 1.Lease terms. (a) The commissioner of natural resources may lease 
97.32 	land under the commissioner's jurisdiction and control:
97.33 	(1) to remove sand, gravel, clay, rock, marl, peat, and black dirt;
98.1 	(2) to store ore, waste materials from mines, or rock and tailings from ore milling 
98.2 	plants;
98.3 	(3) for roads or railroads; or
98.4 	(4) for other uses consistent with the interests of the state.
98.5 	(b) The commissioner shall offer the lease at public or private sale for an amount 
98.6 	and under terms and conditions prescribed by the commissioner. Commercial leases for 
98.7 	more than ten years and leases for removal of peat that cover 320 or more acres must be 
98.8 	approved by the Executive Council.
98.9 	(c) The lease term may not exceed 21 years except:
98.10 	(1) leases of lands for storage sites for ore, waste materials from mines, or rock and 
98.11 	tailings from ore milling plants, or for the removal of peat for nonagricultural purposes 
98.12 	may not exceed a term of 25 years; and
98.13 	(2) leases for commercial purposes, including major resort, convention center, or 
98.14 	recreational area purposes, may not exceed a term of 40 years.
98.15 	(d) Leases must be subject to sale and leasing of the land for mineral purposes and 
98.16 	contain a provision for cancellation for just cause at any time by the commissioner upon 
98.17 	six months' written notice. A longer notice period, not exceeding three years, may be 
98.18 	provided in leases for storing ore, waste materials from mines or rock or tailings from ore 
98.19 	milling plants. The commissioner may determine the terms and conditions, including the 
98.20 	notice period, for cancellation of a lease for the removal of peat and commercial leases.
98.21 	(e) Except as provided in subdivision 3, money received from leases under this 
98.22 	section must be credited to the fund to which the land belongs.
98.23 		Subd. 2.Leases for tailings deposits. The commissioner may grant leases and 
98.24 	licenses to deposit tailings from any iron ore beneficiation plant in any public lake not 
98.25 	exceeding 160 acres in area after holding a public hearing in the manner and under the 
98.26 	procedure provided in Laws 1937, chapter 468, as amended and finding in pursuance 
98.27 	of the hearing:
98.28 	(a) that such use of each lake is necessary and in the best interests of the public; and
98.29 	(b) that the proposed use will not result in pollution or sedimentation of any outlet 
98.30 	stream.
98.31 	The lease or license may not exceed a term of 25 years and must be subject to 
98.32 	cancellation on three years' notice. The commissioner may further restrict use of the lake 
98.33 	to safeguard the public interest, and may require that the lessee or licensee acquire suitable 
98.34 	permits or easements from the owners of lands riparian to the lake. Except as provided 
98.35 	in subdivision 3, money received from the leases or licenses must be deposited in the 
98.36 	permanent school fund.
99.1 		Subd. 3.Application fees. (a) The commissioner shall, by written order, establish 
99.2 	the schedule of application fees for all leases issued under this section. Notwithstanding 
99.3 	section 16A.1285, subdivision 2, the application fees shall be set at a rate that neither 
99.4 	significantly overrecovers nor underrecovers costs, including overhead costs, involved in 
99.5 	providing the services at the time of issuing the leases. The commissioner shall update 
99.6 	the schedule of application fees every five years. The schedule of application fees and 
99.7 	any adjustment to the schedule are not subject to the rulemaking provision of chapter 14 
99.8 	and section 14.386 does not apply.
99.9 	(b) Money received under this subdivision must be deposited in the land management 
99.10 	account in the natural resources fund and is appropriated to the commissioner to cover the 
99.11 	reasonable costs incurred for issuing leases.

99.12 	Sec. 58. Minnesota Statutes 2012, section 93.17, subdivision 1, is amended to read:
99.13 		Subdivision 1.Lease application. (a) Applications for leases to prospect for iron 
99.14 	ore shall be presented to the commissioner in writing in such form as the commissioner 
99.15 	may prescribe at any time before 4:30 p.m., St. Paul, Minnesota time, on the last business 
99.16 	day before the day specified for the opening of bids, and no bids submitted after that time 
99.17 	shall be considered. The application shall be accompanied by a certified check, cashier's 
99.18 	check, or bank money order payable to the Department of Natural Resources in the sum of 
99.19 	$100 $1,000 for each mining unit. The fee shall be deposited in the minerals management 
99.20 	account in the natural resources fund.
99.21 	(b) Each application shall be accompanied by a sealed bid setting forth the amount 
99.22 	of royalty per gross ton of crude ore based upon the iron content of the ore when dried at 
99.23 	212 degrees Fahrenheit, in its natural condition or when concentrated, as set out in section 
99.24 	93.20, subdivisions 12 to 18, that the applicant proposes to pay to the state of Minnesota 
99.25 	in case the lease shall be awarded.

99.26 	Sec. 59. Minnesota Statutes 2012, section 93.1925, subdivision 2, is amended to read:
99.27 		Subd. 2.Application. (a) An application for a negotiated lease shall be submitted to 
99.28 	the commissioner of natural resources. The commissioner shall prescribe the information 
99.29 	to be included in the application. The applicant shall submit with the application a certified 
99.30 	check, cashier's check, or bank money order, payable to the Department of Natural 
99.31 	Resources in the sum of $100 $2,000, as a fee for filing the application. The application 
99.32 	fee shall not be refunded under any circumstances. The application fee shall be deposited 
99.33 	in the minerals management account in the natural resources fund.
100.1 	(b) The right is reserved to the state to reject any or all applications for a negotiated 
100.2 	lease.

100.3 	Sec. 60. Minnesota Statutes 2012, section 93.25, subdivision 2, is amended to read:
100.4 		Subd. 2.Lease requirements. (a) All leases for nonferrous metallic minerals or 
100.5 	petroleum must be approved by the Executive Council, and any other mineral lease issued 
100.6 	pursuant to this section that covers 160 or more acres must be approved by the Executive 
100.7 	Council. The rents, royalties, terms, conditions, and covenants of all such leases shall be 
100.8 	fixed by the commissioner according to rules adopted by the commissioner, but no lease 
100.9 	shall be for a longer term than 50 years, and all rents, royalties, terms, conditions, and 
100.10 	covenants shall be fully set forth in each lease issued. The rents and royalties shall be 
100.11 	credited to the funds as provided in section 93.22.
100.12 	(b) The applicant for a lease must submit with the application a certified check, 
100.13 	cashier's check, or bank money order payable to the Department of Natural Resources 
100.14 	in the sum of:
100.15 	(1) $1,000 as a fee for filing an application for a lease being offered at public sale;
100.16 	(2) $1,000 as a fee for filing an application for a lease being offered under the 
100.17 	preference rights lease availability list; and
100.18 	(3) $2,000 as a fee for filing an application for a lease through negotiation. The 
100.19 	application fee for a negotiated lease shall not be refunded under any circumstances.
100.20 	The application fee must be deposited in the minerals management account in the natural 
100.21 	resources fund.

100.22 	Sec. 61. Minnesota Statutes 2012, section 93.285, subdivision 3, is amended to read:
100.23 		Subd. 3.Stockpile mining unit. (a) Any stockpiled iron ore, wherever situated, 
100.24 	may, in the discretion of the commissioner of natural resources, be designated as a 
100.25 	stockpile mining unit for disposal separately from ore in the ground, such designation to 
100.26 	be made according to section 93.15, so far as applicable.
100.27 	(b) The commissioner may lease the mining unit at public or private sale for an 
100.28 	amount and under terms and conditions prescribed by the commissioner. 
100.29 	(c) The applicant must submit with the application a certified check, cashier's check, 
100.30 	or bank money order payable to the Department of Natural Resources in the sum of $1,000 
100.31 	as a fee for filing an application for a lease being offered at public sale and in the sum of 
100.32 	$2,000 as a fee for filing an application for a lease through negotiation. The application 
100.33 	fee for a negotiated lease shall not be refunded under any circumstances. The application 
100.34 	fee must be deposited in the minerals management account in the natural resources fund.
101.1 	(d) The lease term may not exceed 25 years. The amount payable for stockpiled iron 
101.2 	ore material shall be at least equivalent to the minimum royalty that would be payable 
101.3 	under section 93.20.

101.4 	Sec. 62. Minnesota Statutes 2012, section 93.46, is amended by adding a subdivision 
101.5 	to read:
101.6 		Subd. 10.Scram mining. "Scram mining" means a mining operation that produces 
101.7 	natural iron ore, natural iron ore concentrates, or taconite ore as described in section 93.20, 
101.8 	subdivisions 12 to 18, from previously developed stockpiles, tailing basins, underground 
101.9 	mine workings, or open pits and that involves no more than 80 acres of land not previously 
101.10 	affected by mining, or more than 80 acres of land not previously affected by mining 
101.11 	if the operator can demonstrate that impacts would be substantially the same as other 
101.12 	scram operations. "Land not previously affected by mining" means land upon which mine 
101.13 	wastes have not been deposited and land from which materials have not been removed in 
101.14 	connection with the production or extraction of metallic minerals.

101.15 	Sec. 63. Minnesota Statutes 2012, section 93.481, subdivision 3, is amended to read:
101.16 		Subd. 3.Term of permit; amendment. (a) A permit issued by the commissioner 
101.17 	pursuant to this section shall be granted for the term determined necessary by the 
101.18 	commissioner for the completion of the proposed mining operation, including reclamation 
101.19 	or restoration. The term of a scram mining permit for iron ore or taconite shall be 
101.20 	determined in the same manner as a permit to mine for an iron ore or taconite mining 
101.21 	operation.
101.22 	(b) A permit may be amended upon written application to the commissioner. A 
101.23 	permit amendment application fee must be submitted with the written application. 
101.24 	The permit amendment application fee is ten 20 percent of the amount provided for in 
101.25 	subdivision 1, clause (3), for an application for the applicable permit to mine. If the 
101.26 	commissioner determines that the proposed amendment constitutes a substantial change to 
101.27 	the permit, the person applying for the amendment shall publish notice in the same manner 
101.28 	as for a new permit, and a hearing shall be held if written objections are received in the 
101.29 	same manner as for a new permit. An amendment may be granted by the commissioner if 
101.30 	the commissioner determines that lawful requirements have been met.

101.31 	Sec. 64. Minnesota Statutes 2012, section 93.481, is amended by adding a subdivision 
101.32 	to read:
102.1 		Subd. 4a.Release. A permit may not be released fully or partially without the 
102.2 	written approval of the commissioner. A permit release application fee must be submitted 
102.3 	with the written request for the release. The permit release application fee is 20 percent of 
102.4 	the amount provided for in subdivision 1, clause (3), for an application for the applicable 
102.5 	permit to mine.

102.6 	Sec. 65. Minnesota Statutes 2012, section 93.481, subdivision 5, is amended to read:
102.7 		Subd. 5.Assignment. A permit may not be assigned or otherwise transferred 
102.8 	without the written approval of the commissioner. A permit assignment application fee 
102.9 	must be submitted with the written application. The permit assignment application fee is 
102.10 	ten 20 percent of the amount provided for in subdivision 1, clause (3), for an application 
102.11 	for the applicable permit to mine.

102.12 	Sec. 66. Minnesota Statutes 2012, section 93.481, is amended by adding a subdivision 
102.13 	to read:
102.14 		Subd. 5a.Preapplication. Before the preparation of an application for a permit to 
102.15 	mine, persons intending to submit an application must meet with the commissioner for a 
102.16 	preapplication conference and site visit. Prospective applicants must also meet with the 
102.17 	commissioner to outline analyses and tests to be conducted if the results of the analyses 
102.18 	and tests will be used for evaluation of the application. A permit preapplication fee must 
102.19 	be submitted before the preapplication conferences, meetings, and site visit with the 
102.20 	commissioner. The permit preapplication fee is 20 percent of the amount provided in 
102.21 	subdivision 1, clause (3), for an application for the applicable permit to mine.

102.22 	Sec. 67. Minnesota Statutes 2012, section 93.482, is amended to read:
102.23 	93.482 RECLAMATION FEES.
102.24 		Subdivision 1.Annual permit to mine fee. (a) The commissioner shall charge 
102.25 	every person holding a permit to mine an annual permit fee. The fee is payable to the 
102.26 	commissioner by June 30 of each year, beginning in 2009.
102.27 	(b) The annual permit to mine fee for a an iron ore or taconite mining operation is 
102.28 	$60,000 if the operation had production within the calendar year immediately preceding 
102.29 	the year in which payment is due and $30,000 if there was no production within the 
102.30 	immediately preceding calendar year $84,000.
102.31 	(c) The annual permit to mine fee for a nonferrous metallic minerals mining 
102.32 	operation is $75,000 if the operation had production within the calendar year immediately 
103.1 	preceding the year in which payment is due and $37,500 if there was no production within 
103.2 	the immediately preceding calendar year.
103.3 	(d) The annual permit to mine fee for a scram mining operation is $5,000 if the 
103.4 	operation had production within the calendar year immediately preceding the year in 
103.5 	which payment is due and $2,500 if there was no production within the immediately 
103.6 	preceding calendar year $10,250.
103.7 	(e) The annual permit to mine fee for a peat mining operation is $1,000 if the 
103.8 	operation had production within the calendar year immediately preceding the year in 
103.9 	which payment is due and $500 if there was no production within the immediately 
103.10 	preceding calendar year $1,350.
103.11 		Subd. 2.Supplemental application fee for taconite and nonferrous metallic 
103.12 	minerals mining operation. (a) In addition to the application fee specified in section 
103.13 	93.481, the commissioner shall assess a person submitting an application for a permit 
103.14 	to mine for a taconite or, a nonferrous metallic minerals mining, or peat operation the 
103.15 	reasonable costs for reviewing the application and preparing the permit to mine. For 
103.16 	nonferrous metallic minerals mining, the commissioner shall assess reasonable costs for 
103.17 	monitoring construction of the mining facilities. The commissioner may assess a person 
103.18 	submitting a request for amendment, assignment, or full or partial release of a permit to 
103.19 	mine the reasonable costs for reviewing the request and issuing an approval or denial. The 
103.20 	commissioner may assess a person submitting a request for a preapplication conference, 
103.21 	meetings, and a site visit the reasonable costs for reviewing the request and meeting 
103.22 	with the prospective applicant.
103.23 	(b) The commissioner must give the applicant an estimate of the supplemental 
103.24 	application fee under this subdivision. The estimate must include a brief description 
103.25 	of the tasks to be performed and the estimated cost of each task. The application fee 
103.26 	under section 93.481 must be subtracted from the estimate of costs to determine the 
103.27 	supplemental application fee.
103.28 	(c) The applicant and the commissioner shall enter into a written agreement to cover 
103.29 	the estimated costs to be incurred by the commissioner.
103.30 	(d) The commissioner shall not issue the permit to mine until the applicant has paid 
103.31 	all fees in full. The commissioner shall not issue an approved assignment, amendment, 
103.32 	or release until the applicant has paid all fees in full. Upon completion of construction 
103.33 	of a nonferrous metallic minerals facility, the commissioner shall refund the unobligated 
103.34 	balance of the monitoring fee revenue.

104.1 	Sec. 68. [93.60] MINERAL DATA AND INSPECTIONS ADMINISTRATION 
104.2 	ACCOUNT.
104.3 		Subdivision 1.Account established; sources. The mineral data and inspections 
104.4 	administration account is established in the special revenue fund in the state treasury. 
104.5 	Interest on the account accrues to the account. Fees charged under sections 93.61 and 
104.6 	103I.601, subdivision 4a, shall be credited to the account.
104.7 		Subd. 2.Appropriation; purposes of account. Money in the account is 
104.8 	appropriated annually to the commissioner of natural resources to cover the costs of:
104.9 	(1) operating and maintaining the drill core library in Hibbing, Minnesota; and
104.10 	(2) conducting inspections of exploratory borings.

104.11 	Sec. 69. [93.61] DRILL CORE LIBRARY ACCESS FEE.
104.12 	Notwithstanding section 13.03, subdivision 3, a person must pay a fee to access 
104.13 	exploration data, exploration drill core data, mineral evaluation data, and mining data 
104.14 	stored in the drill core library located in Hibbing, Minnesota, and managed by the 
104.15 	commissioner of natural resources. The fee is $250 per day. Alternatively, a person may 
104.16 	obtain an annual pass for a fee of $5,000. The fee must be credited to the mineral data and 
104.17 	inspections administration account established in section 93.60 and is appropriated to the 
104.18 	commissioner of natural resources for the reasonable costs of operating and maintaining 
104.19 	the drill core library.

104.20 	Sec. 70. [93.70] STATE-OWNED CONSTRUCTION AGGREGATES 
104.21 	RECLAMATION ACCOUNT.
104.22 		Subdivision 1.Account established; sources. The state-owned construction 
104.23 	aggregates reclamation account is created in the special revenue fund in the state treasury. 
104.24 	Interest on the account accrues to the account. Fees charged under section 93.71 shall be 
104.25 	credited to the account.
104.26 		Subd. 2.Appropriation; purposes of account. Money in the account is 
104.27 	appropriated annually to the commissioner of natural resources to cover the costs of:
104.28 	(1) reclaiming state lands administered by the commissioner following cessation of 
104.29 	construction aggregates mining operations on the lands; and 
104.30 	(2) issuing and administering contracts needed for the performance of that 
104.31 	reclamation work.

104.32 	Sec. 71. [93.71] STATE-OWNED CONSTRUCTION AGGREGATES 
104.33 	RECLAMATION FEE.
105.1 		Subdivision 1.Annual reclamation fee; purpose. Except as provided in 
105.2 	subdivision 4, the commissioner of natural resources shall charge a person who holds 
105.3 	a lease or permit to mine construction aggregates on state land administered by the 
105.4 	commissioner an annual reclamation fee. The fee is payable to the commissioner by 
105.5 	January 15 of each year. The purpose of the fee is to pay for reclamation or restoration of 
105.6 	state lands following temporary or permanent cessation of construction aggregates mining 
105.7 	operations. Reclamation and restoration include: land sloping and contouring, spreading 
105.8 	soil from stockpiles, planting vegetation, removing safety hazards, or other measures 
105.9 	needed to return the land to productive and safe nonmining use.
105.10 		Subd. 2.Determination of fee. The amount of the annual reclamation fee is 
105.11 	determined as follows:
105.12 	(1) for aggregates measured in cubic yards upon removal, 15 cents for each cubic yard 
105.13 	removed under the lease or permit within the immediately preceding calendar year; and
105.14 	(2) for aggregates measured in short tons upon removal, 11 cents per short ton 
105.15 	removed under the lease or permit within the immediately preceding calendar year.
105.16 		Subd. 3.Deposit of fees. All fees collected under this section must be deposited in 
105.17 	the state-owned construction aggregates reclamation account established in section 93.70 
105.18 	and credited for use to the same land class from which payment of the fee was derived.
105.19 		Subd. 4.Exception. A person who holds a lease to mine construction aggregates on 
105.20 	state land is not subject to the reclamation fee under subdivision 1 if the lease provides 
105.21 	for continuous mining for five or more years at an average rate of 30,000 or more cubic 
105.22 	yards per year over the term of the lease and requires the lessee to perform and pay for 
105.23 	the reclamation.

105.24 	Sec. 72. Minnesota Statutes 2012, section 97A.401, subdivision 3, is amended to read:
105.25 		Subd. 3.Taking, possessing, and transporting wild animals for certain 
105.26 	purposes. (a) Except as provided in paragraph (b), special permits may be issued without 
105.27 	a fee to take, possess, and transport wild animals as pets and for scientific, educational, 
105.28 	rehabilitative, wildlife disease prevention and control, and exhibition purposes. The 
105.29 	commissioner shall prescribe the conditions for taking, possessing, transporting, and 
105.30 	disposing of the wild animals.
105.31 	(b) A special permit may not be issued to take or possess wild or native deer for 
105.32 	exhibition, propagation, or as pets.
105.33 	(c) Notwithstanding rules adopted under this section relating to wildlife rehabilitation 
105.34 	permits, nonresident professional wildlife rehabilitators with a federal rehabilitation 
105.35 	permit may possess and transport wildlife affected by oil spills.

106.1 	Sec. 73. Minnesota Statutes 2012, section 103G.265, subdivision 2, is amended to read:
106.2 		Subd. 2.Diversion greater than 2,000,000 gallons per day. A water use permit 
106.3 	or a plan that requires a permit or the commissioner's approval, involving a diversion of 
106.4 	waters of the state of more than 2,000,000 gallons per day average in a 30-day period, 
106.5 	to a place outside of this state or from the basin of origin within this state may not be 
106.6 	granted or approved until:
106.7 	(1) a determination is made by the commissioner that the water remaining in the 
106.8 	basin of origin will be adequate to meet the basin's water resources needs during the 
106.9 	specified life of the diversion project diversion is sustainable and meets the applicable 
106.10 	standards under section 103G.287, subdivision 5; and
106.11 	(2) approval of the diversion is given by the legislature.

106.12 	Sec. 74. Minnesota Statutes 2012, section 103G.265, subdivision 3, is amended to read:
106.13 		Subd. 3.Consumptive use of more than 2,000,000 gallons per day. (a) Except 
106.14 	as provided in paragraph (b), A water use permit or a plan that requires a permit or the 
106.15 	commissioner's approval, involving a consumptive use of more than 2,000,000 gallons per 
106.16 	day average in a 30-day period, may not be granted or approved until:
106.17 	(1) a determination is made by the commissioner that the water remaining in the 
106.18 	basin of origin will be adequate to meet the basin's water resources needs during the 
106.19 	specified life of the consumptive use is sustainable and meets the applicable standards 
106.20 	under section 103G.287, subdivision 5; and
106.21 	(2) approval of the consumptive use is given by the legislature.
106.22 	(b) Legislative approval under paragraph (a), clause (2), is not required for a 
106.23 	consumptive use in excess of 2,000,000 gallons per day average in a 30-day period for:
106.24 	(1) a domestic water supply, excluding industrial and commercial uses of a 
106.25 	municipal water supply;
106.26 	(2) agricultural irrigation and processing of agricultural products;
106.27 	(3) construction and mine land dewatering;
106.28 	(4) pollution abatement or remediation; and
106.29 	(5) fish and wildlife enhancement projects using surface water sources.

106.30 	Sec. 75. Minnesota Statutes 2012, section 103G.271, subdivision 1, is amended to read:
106.31 		Subdivision 1.Permit required. (a) Except as provided in paragraph (b), the state, 
106.32 	a person, partnership, or association, private or public corporation, county, municipality, 
106.33 	or other political subdivision of the state may not appropriate or use waters of the state 
106.34 	without a water use permit from the commissioner.
107.1 	(b) This section does not apply to use for a water supply by less than 25 persons 
107.2 	for domestic purposes, except as required by the commissioner under section 103G.287, 
107.3 	subdivision 4, paragraph (b).
107.4 	(c) The commissioner may issue a state general permit for appropriation of water to a 
107.5 	governmental subdivision or to the general public. The general permit may authorize more 
107.6 	than one project and the appropriation or use of more than one source of water. Water use 
107.7 	permit processing fees and reports required under subdivision 6 and section 103G.281, 
107.8 	subdivision 3, are required for each project or water source that is included under a general 
107.9 	permit, except that no fee is required for uses totaling less than 15,000,000 gallons annually.

107.10 	Sec. 76. Minnesota Statutes 2012, section 103G.271, subdivision 4, is amended to read:
107.11 		Subd. 4.Minimum use exemption and local approval of low use permits. (a) 
107.12 	Except for local permits under section 103B.211, subdivision 4, a water use permit is not 
107.13 	required for the appropriation and use of less than a minimum amount prescribed by the 
107.14 	commissioner by rule 10,000 gallons per day and totaling no more than 1,000,000 gallons 
107.15 	per year, except as required by the commissioner under section 103G.287, subdivision 4, 
107.16 	paragraph (b).
107.17 	(b) Water use permits for more than the minimum amount but less than an 
107.18 	intermediate amount prescribed by rule must be processed and approved at the municipal, 
107.19 	county, or regional level based on rules adopted by the commissioner.
107.20 	(c) The rules must include provisions for reporting to the commissioner the amounts 
107.21 	of water appropriated under local permits.

107.22 	Sec. 77. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
107.23 		Subd. 6.Water use permit processing fee. (a) Except as described in paragraphs 
107.24 	(b) to (f), a water use permit processing fee must be prescribed by the commissioner in 
107.25 	accordance with the schedule of fees in this subdivision for each water use permit in force 
107.26 	at any time during the year. Fees collected under this paragraph are credited to the water 
107.27 	management account in the natural resources fund. The schedule is as follows, with the 
107.28 	stated fee in each clause applied to the total amount appropriated:
107.29 	(1) $140 for amounts not exceeding 50,000,000 gallons per year;
107.30 	(2) $3.50 for residential use, $15 per 1,000,000 gallons for amounts greater than 
107.31 	50,000,000 gallons but less than 100,000,000 gallons per year;
107.32 	(3) $4 (2) for use for metallic mine dewatering, mineral processing, and wood 
107.33 	products processing, $8 per 1,000,000 gallons for amounts greater than 100,000,000 
107.34 	gallons but less than 150,000,000 gallons per year;
108.1 	(4) $4.50 (3) for use for agricultural irrigation, including sod farms, orchards, and 
108.2 	nurseries, and for livestock watering, $22 per 1,000,000 gallons for amounts greater than 
108.3 	150,000,000 gallons but less than 200,000,000 gallons per year;
108.4 	(5) $5 (4) for nonagricultural irrigation, $70 per 1,000,000 gallons for amounts 
108.5 	greater than 200,000,000 gallons but less than 250,000,000 gallons per year; and
108.6 	(6) $5.50 (5) for all other uses, $30 per 1,000,000 gallons for amounts greater than 
108.7 	250,000,000 gallons but less than 300,000,000 gallons per year;
108.8 	(7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less 
108.9 	than 350,000,000 gallons per year;
108.10 	(8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but 
108.11 	less than 400,000,000 gallons per year;
108.12 	(9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less 
108.13 	than 450,000,000 gallons per year;
108.14 	(10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but 
108.15 	less than 500,000,000 gallons per year; and
108.16 	(11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
108.17 	(b) For once-through cooling systems, a water use processing fee must be prescribed 
108.18 	by the commissioner in accordance with the following schedule of fees for each water use 
108.19 	permit in force at any time during the year:
108.20 	(1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
108.21 	(2) for all other users, $420 per 1,000,000 gallons.
108.22 	(c) The fee is payable based on the amount of water appropriated during the year 
108.23 	and, except as provided in paragraph (f), the minimum fee is $100 $140.
108.24 	(d) For water use processing fees other than once-through cooling systems:
108.25 	(1) the fee for a city of the first class may not exceed $250,000 $275,000 per year;
108.26 	(2) the fee for other entities for any permitted use may not exceed:
108.27 	(i) $60,000 $66,000 per year for an entity holding three or fewer permits;
108.28 	(ii) $90,000 $99,000 per year for an entity holding four or five permits; or
108.29 	(iii) $300,000 $330,000 per year for an entity holding more than five permits;
108.30 	(3) the fee for agricultural wild rice irrigation may not exceed $750 per year;
108.31 	(4) the fee for a municipality that furnishes electric service and cogenerates steam 
108.32 	for home heating may not exceed $10,000 for its permit for water use related to the 
108.33 	cogeneration of electricity and steam; and
108.34 	(5) no fee is required for a project involving the appropriation of surface water to 
108.35 	prevent flood damage or to remove flood waters during a period of flooding, as determined 
108.36 	by the commissioner.
109.1 	(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two 
109.2 	percent per month calculated from the original due date must be imposed on the unpaid 
109.3 	balance of fees remaining 30 days after the sending of a second notice of fees due. A fee 
109.4 	may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal 
109.5 	governmental agency holding a water appropriation permit.
109.6 	(f) The minimum water use processing fee for a permit issued for irrigation of 
109.7 	agricultural land is $20 for years in which:
109.8 	(1) there is no appropriation of water under the permit; or
109.9 	(2) the permit is suspended for more than seven consecutive days between May 1 
109.10 	and October 1.
109.11 	(g) A surcharge of $30 $75 per million gallons in addition to the fee prescribed 
109.12 	in paragraph (a) shall be applied to the volume of water used in each of the months of 
109.13 	May, June, July, and August, and September that exceeds the volume of water used in 
109.14 	January for municipal water use, irrigation of golf courses, and landscape irrigation. The 
109.15 	surcharge for municipalities with more than one permit shall be determined based on the 
109.16 	total appropriations from all permits that supply a common distribution system.

109.17 	EFFECTIVE DATE. This section is effective January 1, 2014.

109.18 	Sec. 78. Minnesota Statutes 2012, section 103G.282, is amended to read:
109.19 	103G.282 MONITORING TO EVALUATE IMPACTS FROM 
109.20 	APPROPRIATIONS.
109.21 		Subdivision 1.Monitoring equipment. The commissioner may require the 
109.22 	installation and maintenance of install and maintain monitoring equipment to evaluate 
109.23 	water resource impacts from permitted appropriations and proposed projects that require 
109.24 	a permit. Monitoring for water resources that supply more than one appropriator must 
109.25 	be designed to minimize costs to individual appropriators. The cost of drilling additional 
109.26 	monitoring wells must be shared proportionally by all permit holders that are directly 
109.27 	affecting a particular water resources feature. The commissioner may require a permit 
109.28 	holder or a proposer of a project to install and maintain monitoring equipment to evaluate 
109.29 	water resource impacts when the commissioner determines that the permitted or proposed 
109.30 	water use is or has the potential to be the primary source of water resource impacts in an 
109.31 	area.
109.32 		Subd. 2.Measuring devices required. Monitoring installations required
109.33 	 established under subdivision 1 must be equipped with automated measuring devices 
109.34 	to measure water levels, flows, or conditions. The commissioner may require a permit 
110.1 	holder or a proposer of a project to perform water measurements. The commissioner 
110.2 	may determine the frequency of measurements and other measuring methods based on 
110.3 	the quantity of water appropriated or used, the source of water, potential connections to 
110.4 	other water resources, the method of appropriating or using water, seasonal and long-term 
110.5 	changes in water levels, and any other facts supplied to the commissioner.
110.6 		Subd. 3.Reports and costs. (a) Records of water measurements under subdivision 
110.7 	2 must be kept for each installation. The measurements must be reported annually to the 
110.8 	commissioner on or before February 15 of the following year in a format or on forms 
110.9 	prescribed by the commissioner.
110.10 	(b) The owner or person permit holder or project proposer in charge of an installation 
110.11 	for appropriating or using waters of the state or a proposal that requires a permit is 
110.12 	responsible for all costs related to establishing and maintaining monitoring installations 
110.13 	and to measuring and reporting data. Monitoring costs for water resources that supply 
110.14 	more than one appropriator may be distributed among all users within a monitoring area 
110.15 	determined by the commissioner and assessed based on volumes of water appropriated 
110.16 	and proximity to resources of concern. The commissioner may require a permit holder or 
110.17 	project proposer utilizing monitoring equipment installed by the commissioner to meet 
110.18 	water measurement requirements to cover the costs related to measuring and reporting data.

110.19 	Sec. 79. Minnesota Statutes 2012, section 103G.287, subdivision 1, is amended to read:
110.20 		Subdivision 1.Applications for groundwater appropriations; preliminary well 
110.21 	construction approval. (a) Groundwater use permit applications are not complete until 
110.22 	the applicant has supplied:
110.23 	(1) a water well record as required by section 103I.205, subdivision 9, information 
110.24 	on the subsurface geologic formations penetrated by the well and the formation or aquifer 
110.25 	that will serve as the water source, and geologic information from test holes drilled to 
110.26 	locate the site of the production well;
110.27 	(2) the maximum daily, seasonal, and annual pumpage rates and volumes being 
110.28 	requested;
110.29 	(3) information on groundwater quality in terms of the measures of quality 
110.30 	commonly specified for the proposed water use and details on water treatment necessary 
110.31 	for the proposed use;
110.32 	(4) an inventory of existing wells within 1-1/2 miles of the proposed production well 
110.33 	or within the area of influence, as determined by the commissioner. The inventory must 
110.34 	include information on well locations, depths, geologic formations, depth of the pump or 
110.35 	intake, pumping and nonpumping water levels, and details of well construction; and
111.1 	(5) the results of an aquifer test completed according to specifications approved by 
111.2 	the commissioner. The test must be conducted at the maximum pumping rate requested 
111.3 	in the application and for a length of time adequate to assess or predict impacts to other 
111.4 	wells and surface water and groundwater resources. The permit applicant is responsible 
111.5 	for all costs related to the aquifer test, including the construction of groundwater and 
111.6 	surface water monitoring installations, and water level readings before, during, and after 
111.7 	the aquifer test; and
111.8 	(6) the results of any assessments conducted by the commissioner under paragraph (c).
111.9 	(b) The commissioner may waive an application requirement in this subdivision 
111.10 	if the information provided with the application is adequate to determine whether the 
111.11 	proposed appropriation and use of water is sustainable and will protect ecosystems, water 
111.12 	quality, and the ability of future generations to meet their own needs.
111.13 	(c) The commissioner shall provide an assessment of a proposed well needing a 
111.14 	groundwater appropriation permit. The commissioner shall evaluate the information 
111.15 	submitted as required under section 103I.205, subdivision 1, paragraph (f), and determine 
111.16 	whether the anticipated appropriation request is likely to meet the applicable requirements 
111.17 	of this chapter. If the appropriation request is likely to meet applicable requirements, the 
111.18 	commissioner shall provide the person submitting the information with a letter providing 
111.19 	preliminary approval to construct the well.

111.20 	Sec. 80. Minnesota Statutes 2012, section 103G.287, subdivision 4, is amended to read:
111.21 		Subd. 4.Groundwater management areas. (a) The commissioner may designate 
111.22 	groundwater management areas and limit total annual water appropriations and uses within 
111.23 	a designated area to ensure sustainable use of groundwater that protects ecosystems, water 
111.24 	quality, and the ability of future generations to meet their own needs. Water appropriations 
111.25 	and uses within a designated management area must be consistent with a plan approved by 
111.26 	the commissioner that addresses water conservation requirements and water allocation 
111.27 	priorities established in section 103G.261.
111.28 	(b) Within designated groundwater management areas, the commissioner may 
111.29 	require permits as specified in section 103G.271 for all water users, including those using 
111.30 	less than 10,000 gallons per day or 1,000,000 gallons per year and water supplies serving 
111.31 	less than 25 persons for domestic purposes.

111.32 	Sec. 81. Minnesota Statutes 2012, section 103G.287, subdivision 5, is amended to read:
111.33 		Subd. 5.Interference with other wells Sustainability standard. The 
111.34 	commissioner may issue water use permits for appropriation from groundwater only if 
112.1 	the commissioner determines that the groundwater use is sustainable to supply the needs 
112.2 	of future generations and the proposed use will not harm ecosystems, degrade water, or 
112.3 	reduce water levels beyond the reach of public water supply and private domestic wells 
112.4 	constructed according to Minnesota Rules, chapter 4725.

112.5 	Sec. 82. Minnesota Statutes 2012, section 103G.615, subdivision 2, is amended to read:
112.6 		Subd. 2.Fees. (a) The commissioner shall establish a fee schedule for permits to 
112.7 	control or harvest aquatic plants other than wild rice. The fees must be set by rule, and 
112.8 	section 16A.1283 does not apply, but the rule must not take effect until 45 legislative 
112.9 	days after it has been reported to the legislature. The fees shall not exceed $2,500 per 
112.10 	permit and shall be based upon the cost of receiving, processing, analyzing, and issuing 
112.11 	the permit, and additional costs incurred after the application to inspect and monitor 
112.12 	the activities authorized by the permit, and enforce aquatic plant management rules and 
112.13 	permit requirements. The permit fee, in the form of a check or money order payable to the 
112.14 	Minnesota Department of Natural Resources, must accompany each permit application. 
112.15 	When application is made to control two or more shoreline nuisance conditions, only the 
112.16 	larger fee applies. Permit fees are:
112.17 	(b) A fee for a permit for the (1) to control of rooted aquatic vegetation plants 
112.18 	by pesticide or mechanical means, $35 for each contiguous parcel of shoreline owned 
112.19 	by an owner may be charged, including a three-year automatic aquatic plant control 
112.20 	device permit. This fee may not be charged for permits issued in connection with purple 
112.21 	loosestrife control or lakewide Eurasian water milfoil control programs. or baywide 
112.22 	invasive aquatic plant management permits;
112.23 	(2) to control filamentous algae, snails that carry swimmer's itch, or leeches, singly 
112.24 	or in combination, $40 for each contiguous parcel or shoreline with a distinct owner;
112.25 	(3) for offshore control of submersed aquatic plants by pesticide or mechanical 
112.26 	means, $90;
112.27 	(4) to control plankton algae or free-floating aquatic plants by lakewide or baywide 
112.28 	application of approved pesticides, $90;
112.29 	(5) for a commercial mechanical control permit, $100 annually, and;
112.30 	(6) for a commercial harvest permit, $100 plus $300 for each public water listed on 
112.31 	the application that requires an inspection. An inspection is required for waters with no 
112.32 	previous permit history and may be required at other times to monitor the status of the 
112.33 	aquatic plant population.
112.34 	(b) There is no permit fee for:
112.35 	(1) permits to transplant aquatic plants in public waters;
113.1 	(2) permits to move or remove a floating bog in public waters if the floating bog is 
113.2 	lodged against the permittee's property and has not taken root;
113.3 	(3) invasive aquatic plant management permits; or
113.4 	(c) A fee may not be charged to(4) permits applied for by the state or a federal 
113.5 	governmental agency applying for a permit.
113.6 	(d) (c) A fee for a permit for the control of rooted aquatic vegetation in a public 
113.7 	water basin that is 20 acres or less in size shall be is one-half of the fee established under 
113.8 	paragraph (a), clause (1).
113.9 	(d) If the fee does not accompany the application, the applicant shall be notified and 
113.10 	no action will be taken on the application until the fee is received.
113.11 	(e) A fee is refundable only when the application is withdrawn prior to field 
113.12 	inspection or issuance or denial of the permit or when the commissioner determines that 
113.13 	the activity does not require a permit.
113.14 	(e) (f) The money received for the permits under this subdivision shall be deposited 
113.15 	in the treasury and credited to the water recreation account in the natural resources fund.
113.16 	(f) (g) The fee for processing a notification to request authorization for work under 
113.17 	a general permit is $30, until the commissioner establishes a fee by rule as provided 
113.18 	under this subdivision.

113.19 	Sec. 83. Minnesota Statutes 2012, section 103I.205, subdivision 1, is amended to read:
113.20 		Subdivision 1.Notification required. (a) Except as provided in paragraphs (d) 
113.21 	and (e), a person may not construct a well until a notification of the proposed well on a 
113.22 	form prescribed by the commissioner is filed with the commissioner with the filing fee in 
113.23 	section 103I.208, and, when applicable, the person has met the requirements of paragraph 
113.24 	(f). If after filing the well notification an attempt to construct a well is unsuccessful, a 
113.25 	new notification is not required unless the information relating to the successful well 
113.26 	has substantially changed.
113.27 	(b) The property owner, the property owner's agent, or the well contractor where a 
113.28 	well is to be located must file the well notification with the commissioner.
113.29 	(c) The well notification under this subdivision preempts local permits and 
113.30 	notifications, and counties or home rule charter or statutory cities may not require a 
113.31 	permit or notification for wells unless the commissioner has delegated the permitting or 
113.32 	notification authority under section 103I.111.
113.33 	(d) A person who is an individual that constructs a drive point well on property 
113.34 	owned or leased by the individual for farming or agricultural purposes or as the individual's 
113.35 	place of abode must notify the commissioner of the installation and location of the well. 
114.1 	The person must complete the notification form prescribed by the commissioner and mail 
114.2 	it to the commissioner by ten days after the well is completed. A fee may not be charged 
114.3 	for the notification. A person who sells drive point wells at retail must provide buyers 
114.4 	with notification forms and informational materials including requirements regarding 
114.5 	wells, their location, construction, and disclosure. The commissioner must provide the 
114.6 	notification forms and informational materials to the sellers.
114.7 	(e) A person may not construct a monitoring well until a permit is issued by the 
114.8 	commissioner for the construction. If after obtaining a permit an attempt to construct a 
114.9 	well is unsuccessful, a new permit is not required as long as the initial permit is modified 
114.10 	to indicate the location of the successful well.
114.11 	(f) When the operation of a well will require an appropriation permit from the 
114.12 	commissioner of natural resources, a person may not begin construction of the well until 
114.13 	the person submits the following information to the commissioner of natural resources: 
114.14 	(1) the location of the well;
114.15 	(2) the formation or aquifer that will serve as the water source;
114.16 	(3) the maximum daily, seasonal, and annual pumpage rates and volumes that will 
114.17 	be requested in the appropriation permit; and
114.18 	(4) other information requested by the commissioner of natural resources that 
114.19 	is necessary to conduct the preliminary assessment required under section 103G.287, 
114.20 	subdivision 1, paragraph (c).
114.21 	The person may begin construction after receiving preliminary approval from the 
114.22 	commissioner of natural resources.

114.23 	Sec. 84. Minnesota Statutes 2012, section 103I.601, is amended by adding a 
114.24 	subdivision to read:
114.25 		Subd. 4a.Exploratory boring inspection fee. For each proposed exploratory 
114.26 	boring identified on the map submitted under subdivision 4, an explorer must submit a fee 
114.27 	of $2,000 to the commissioner of natural resources. The fee must be credited to the mineral 
114.28 	data and inspections administration account established in section 93.60 and is appropriated 
114.29 	to the commissioner of natural resources for the reasonable costs incurred for inspections 
114.30 	of exploratory borings by the commissioner of natural resources or the commissioner's 
114.31 	representative. The fee is nonrefundable, even if the exploratory boring is not conducted.

114.32 	Sec. 85. Minnesota Statutes 2012, section 114D.50, subdivision 4, is amended to read:
114.33 		Subd. 4.Expenditures; accountability. (a) A project receiving funding from the 
114.34 	clean water fund must meet or exceed the constitutional requirements to protect, enhance, 
115.1 	and restore water quality in lakes, rivers, and streams and to protect groundwater and 
115.2 	drinking water from degradation. Priority may be given to projects that meet more than 
115.3 	one of these requirements. A project receiving funding from the clean water fund shall 
115.4 	include measurable outcomes, as defined in section 3.303, subdivision 10, and a plan for 
115.5 	measuring and evaluating the results. A project must be consistent with current science 
115.6 	and incorporate state-of-the-art technology.
115.7 	(b) Money from the clean water fund shall be expended to balance the benefits 
115.8 	across all regions and residents of the state.
115.9 	(c) A state agency or other recipient of a direct appropriation from the clean 
115.10 	water fund must compile and submit all information for proposed and funded projects 
115.11 	or programs, including the proposed measurable outcomes and all other items required 
115.12 	under section 3.303, subdivision 10, to the Legislative Coordinating Commission as soon 
115.13 	as practicable or by January 15 of the applicable fiscal year, whichever comes first. The 
115.14 	Legislative Coordinating Commission must post submitted information on the Web site 
115.15 	required under section 3.303, subdivision 10, as soon as it becomes available. Information 
115.16 	classified as not public under section 13D.05, subdivision 3, paragraph (d), is not required 
115.17 	to be placed on the Web site.
115.18 	(d) Grants funded by the clean water fund must be implemented according to section 
115.19 	16B.98 and must account for all expenditures. Proposals must specify a process for any 
115.20 	regranting envisioned. Priority for grant proposals must be given to proposals involving 
115.21 	grants that will be competitively awarded.
115.22 	(e) Money from the clean water fund may only be spent on projects that benefit 
115.23 	Minnesota waters.
115.24 	(f) When practicable, a direct recipient of an appropriation from the clean water fund 
115.25 	shall prominently display on the recipient's Web site home page the legacy logo required 
115.26 	under Laws 2009, chapter 172, article 5, section 10, as amended by Laws 2010, chapter 
115.27 	361, article 3, section 5, accompanied by the phrase "Click here for more information." 
115.28 	When a person clicks on the legacy logo image, the Web site must direct the person to 
115.29 	a Web page that includes both the contact information that a person may use to obtain 
115.30 	additional information, as well as a link to the Legislative Coordinating Commission Web 
115.31 	site required under section 3.303, subdivision 10.
115.32 	(g) Future eligibility for money from the clean water fund is contingent upon a state 
115.33 	agency or other recipient satisfying all applicable requirements in this section, as well as 
115.34 	any additional requirements contained in applicable session law.
116.1 	(h) Money from the clean water fund may be used to leverage federal funds through 
116.2 	execution of formal project partnership agreements with federal agencies consistent with 
116.3 	respective federal agency partnership agreement requirements.

116.4 	Sec. 86. [115.84] WASTEWATER LABORATORY CERTIFICATION.
116.5 		Subdivision 1.Wastewater laboratory certification required. (a) Laboratories 
116.6 	performing wastewater or water analytical laboratory work, the results of which are 
116.7 	reported to the agency to determine compliance with a national pollutant discharge 
116.8 	elimination system (NPDES) permit condition or other regulatory document, must be 
116.9 	certified according to this section.
116.10 	(b) This section does not apply to:
116.11 	(1) laboratories that are private and for-profit;
116.12 	(2) laboratories that perform drinking water analyses; or
116.13 	(3) laboratories that perform remediation program analyses, such as Superfund or 
116.14 	petroleum analytical work.
116.15 	(c) Until adoption of rules under subdivision 2, laboratories required to be certified 
116.16 	under this section that submit data to the agency must register by submitting registration 
116.17 	information required by the agency or be certified or accredited by a recognized authority, 
116.18 	such as the commissioner of health under sections 144.97 to 144.99, for the analytical 
116.19 	methods required by the agency.
116.20 		Subd. 2.Rules. The agency may adopt rules to govern certification of laboratories 
116.21 	according to this section. Notwithstanding section 16A.1283, the agency may adopt 
116.22 	rules establishing fees.
116.23 		Subd. 3.Fees. (a) Until the agency adopts a rule establishing fees for certification, 
116.24 	the agency shall collect fees from laboratories registering with the agency but not 
116.25 	accredited by the commissioner of health under sections 144.97 to 144.99, in amounts 
116.26 	necessary to cover the reasonable costs of the certification program, including reviewing 
116.27 	applications, issuing certifications, and conducting audits and compliance assistance.
116.28 	(b) Fees under this section must be based on the number, type, and complexity of 
116.29 	analytical methods that laboratories are certified to perform.
116.30 	(c) Revenue from fees charged by the agency for certification shall be credited to 
116.31 	the environmental fund.
116.32 		Subd. 4.Enforcement. (a) The commissioner may deny, suspend, or revoke 
116.33 	wastewater laboratory certification for, but is not limited to, any of the following reasons: 
116.34 	fraud, failure to follow applicable requirements, failure to respond to documented 
117.1 	deficiencies or complete corrective actions necessary to address deficiencies, failure to pay 
117.2 	certification fees, or other violations of federal or state law.
117.3 	(b) This section and the rules adopted under it may be enforced by any means 
117.4 	provided in section 115.071.

117.5 	Sec. 87. Minnesota Statutes 2012, section 115A.1320, subdivision 1, is amended to read:
117.6 		Subdivision 1.Duties of the agency. (a) The agency shall administer sections 
117.7 	115A.1310 to 115A.1330.
117.8 	(b) The agency shall establish procedures for:
117.9 	(1) receipt and maintenance of the registration statements and certifications filed 
117.10 	with the agency under section 115A.1312; and
117.11 	(2) making the statements and certifications easily available to manufacturers, 
117.12 	retailers, and members of the public.
117.13 	(c) The agency shall annually review the value of the following variables that are 
117.14 	part of the formula used to calculate a manufacturer's annual registration fee under section 
117.15 	115A.1314, subdivision 1:
117.16 	(1) the proportion of sales of video display devices sold to households that 
117.17 	manufacturers are required to recycle;
117.18 	(2) the estimated per-pound price of recycling covered electronic devices sold to 
117.19 	households;
117.20 	(3) the base registration fee; and
117.21 	(4) the multiplier established for the weight of covered electronic devices collected 
117.22 	in section 115A.1314, subdivision 1, paragraph (d). If the agency determines that any of 
117.23 	these values must be changed in order to improve the efficiency or effectiveness of the 
117.24 	activities regulated under sections 115A.1312 to 115A.1330, the agency shall submit 
117.25 	recommended changes and the reasons for them to the chairs of the senate and house of 
117.26 	representatives committees with jurisdiction over solid waste policy.
117.27 	(d) By January 15 each year, beginning in 2008, the agency shall calculate estimated 
117.28 	sales of video display devices sold to households by each manufacturer during the preceding 
117.29 	program year, based on national sales data, and forward the estimates to the department.
117.30 	(e) The agency shall provide a report to the governor and the legislature on the 
117.31 	implementation of sections 115A.1310 to 115A.1330. For each program year, the report 
117.32 	must discuss the total weight of covered electronic devices recycled and a summary 
117.33 	of information in the reports submitted by manufacturers and recyclers under section 
117.34 	115A.1316. The report must also discuss the various collection programs used by 
117.35 	manufacturers to collect covered electronic devices; information regarding covered 
118.1 	electronic devices that are being collected by persons other than registered manufacturers, 
118.2 	collectors, and recyclers; and information about covered electronic devices, if any, being 
118.3 	disposed of in landfills in this state. The report must include a description of enforcement 
118.4 	actions under sections 115A.1310 to 115A.1330. The agency may include in its report 
118.5 	other information received by the agency regarding the implementation of sections 
118.6 	115A.1312 to 115A.1330. The report must be done in conjunction with the report required 
118.7 	under section 115D.10 115A.121.
118.8 	(f) The agency shall promote public participation in the activities regulated under 
118.9 	sections 115A.1312 to 115A.1330 through public education and outreach efforts.
118.10 	(g) The agency shall enforce sections 115A.1310 to 115A.1330 in the manner 
118.11 	provided by sections 115.071, subdivisions 1, 3, 4, 5, and 6; and 116.072, except for those 
118.12 	provisions enforced by the department, as provided in subdivision 2. The agency may 
118.13 	revoke a registration of a collector or recycler found to have violated sections 115A.1310 
118.14 	to 115A.1330.
118.15 	(h) The agency shall facilitate communication between counties, collection and 
118.16 	recycling centers, and manufacturers to ensure that manufacturers are aware of video 
118.17 	display devices available for recycling.
118.18 	(i) The agency shall develop a form retailers must use to report information to 
118.19 	manufacturers under section 115A.1318 and post it on the agency's Web site.
118.20 	(j) The agency shall post on its Web site the contact information provided by each 
118.21 	manufacturer under section 115A.1318, paragraph (e).

118.22 	Sec. 88. [115A.141] CARPET PRODUCT STEWARDSHIP PROGRAM; 
118.23 	STEWARDSHIP PLAN.
118.24 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
118.25 	the meanings given:
118.26 	(1) "brand" means a name, symbol, word, or mark that identifies carpet, rather than its 
118.27 	components, and attributes the carpet to the owner or licensee of the brand as the producer;
118.28 	(2) "carpet" means a manufactured article that is used in commercial or single or 
118.29 	multifamily residential buildings, is affixed or placed on the floor or building walking 
118.30 	surface as a decorative or functional building interior or exterior feature, and is primarily 
118.31 	constructed of a top visible surface of synthetic face fibers or yarns or tufts attached to a 
118.32 	backing system derived from synthetic or natural materials. Carpet includes, but is not 
118.33 	limited to, a commercial or residential broadloom carpet or modular carpet tiles. Carpet 
118.34 	includes a pad or underlayment used in conjunction with a carpet. Carpet does not include 
118.35 	handmade rugs, area rugs, or mats;
119.1 	(3) "discarded carpet" means carpet that is no longer used for its manufactured 
119.2 	purpose;
119.3 	(4) "producer" means a person that:
119.4 	(i) has legal ownership of the brand, brand name, or cobrand of carpet sold in the state;
119.5 	(ii) imports carpet branded by a producer that meets subclause (i) when the producer 
119.6 	has no physical presence in the United States;
119.7 	(iii) if subclauses (i) and (ii) do not apply, makes unbranded carpet that is sold 
119.8 	in the state; or
119.9 	(iv) sells carpet at wholesale or retail, does not have legal ownership of the brand, 
119.10 	and elects to fulfill the responsibilities of the producer for the carpet by certifying that 
119.11 	election in writing to the commissioner;
119.12 	(5) "recycling" means the process of collecting and preparing recyclable materials and 
119.13 	reusing the materials in their original form or using them in manufacturing processes that 
119.14 	do not cause the destruction of recyclable materials in a manner that precludes further use;
119.15 	(6) "retailer" means any person who offers carpet for sale at retail in the state;
119.16 	(7) "reuse" means donating or selling a collected carpet back into the market for 
119.17 	its original intended use, when the carpet retains its original purpose and performance 
119.18 	characteristics;
119.19 	(8) "sale" or "sell" means transfer of title of carpet for consideration, including a 
119.20 	remote sale conducted through a sales outlet, catalog, Web site, or similar electronic 
119.21 	means. Sale or sell includes a lease through which carpet is provided to a consumer by a 
119.22 	producer, wholesaler, or retailer;
119.23 	(9) "stewardship assessment" means the amount added to the purchase price of 
119.24 	carpet sold in the state that is necessary to cover the cost of collecting, transporting, and 
119.25 	processing postconsumer carpets by the producer or stewardship organization pursuant to 
119.26 	a product stewardship program;
119.27 	(10) "stewardship organization" means an organization appointed by one or more 
119.28 	producers to act as an agent on behalf of the producer to design, submit, and administer a 
119.29 	product stewardship program under this section; and
119.30 	(11) "stewardship plan" means a detailed plan describing the manner in which a 
119.31 	product stewardship program under subdivision 2 will be implemented.
119.32 		Subd. 2.Product stewardship program. For all carpet sold in the state, producers 
119.33 	must, individually or through a stewardship organization, implement and finance a 
119.34 	statewide product stewardship program that manages carpet by reducing carpet's waste 
119.35 	generation, promoting its reuse and recycling, and providing for negotiation and execution 
119.36 	of agreements to collect, transport, and process carpet for end-of-life recycling and reuse.
120.1 		Subd. 3.Requirement for sale. (a) On and after July 1, 2015, no producer, 
120.2 	wholesaler, or retailer may sell carpet or offer carpet for sale in the state unless the carpet's 
120.3 	producer participates in an approved stewardship plan, either individually or through a 
120.4 	stewardship organization.
120.5 	(b) Each producer must operate a product stewardship program approved by the 
120.6 	agency or enter into an agreement with a stewardship organization to operate, on the 
120.7 	producer's behalf, a product stewardship program approved by the agency.
120.8 		Subd. 4.Requirement to submit plan. (a) On or before March 1, 2015, and before 
120.9 	offering carpet for sale in the state, a producer must submit a stewardship plan to the 
120.10 	agency and receive approval of the plan or must submit documentation to the agency that 
120.11 	demonstrates the producer has entered into an agreement with a stewardship organization 
120.12 	to be an active participant in an approved product stewardship program as described in 
120.13 	subdivision 2. A stewardship plan must include all elements required under subdivision 5.
120.14 	(b) At least every three years, a producer or stewardship organization operating a 
120.15 	product stewardship program must update the stewardship plan and submit the updated 
120.16 	plan to the agency for review and approval.
120.17 	(c) It is the responsibility of the entities responsible for each stewardship plan to 
120.18 	notify the agency within 30 days of any significant changes or modifications to the plan or 
120.19 	its implementation. Within 30 days of the notification, a written plan revision must be 
120.20 	submitted to the agency for review and approval.
120.21 		Subd. 5.Stewardship plan content. A stewardship plan must contain:
120.22 	(1) certification that the product stewardship program will accept all discarded carpet 
120.23 	regardless of which producer produced the carpet and its individual components;
120.24 	(2) contact information for the individual and the entity submitting the plan and for 
120.25 	all producers participating in the product stewardship program;
120.26 	(3) a description of the methods by which discarded carpet will be collected in all 
120.27 	areas in the state without relying on end-of-life fees, including an explanation of how the 
120.28 	collection system will be convenient and adequate to serve the needs of small businesses 
120.29 	and residents in the seven-county metropolitan area initially and expanding to areas 
120.30 	outside of the seven-county metropolitan area starting July 1, 2016;
120.31 	(4) a description of how the adequacy of the collection program will be monitored 
120.32 	and maintained;
120.33 	(5) the names and locations of collectors, transporters, and recycling facilities that 
120.34 	will manage discarded carpet;
121.1 	(6) a description of how the discarded carpet and the carpet's components will 
121.2 	be safely and securely transported, tracked, and handled from collection through final 
121.3 	recycling and processing;
121.4 	(7) a description of the method that will be used to reuse, deconstruct, or recycle 
121.5 	the discarded carpet to ensure that the product's components, to the extent feasible, are 
121.6 	transformed or remanufactured into finished products for use;
121.7 	(8) a description of the promotion and outreach activities that will be used to 
121.8 	encourage participation in the collection and recycling programs and how the activities' 
121.9 	effectiveness will be evaluated and the program modified, if necessary;
121.10 	(9) the proposed stewardship assessment. The producer or stewardship organization 
121.11 	shall propose a stewardship assessment for any carpet sold in the state. The proposed 
121.12 	stewardship assessment shall be reviewed by an independent auditor to ensure that 
121.13 	the assessment does not exceed the costs of the product stewardship program and the 
121.14 	independent auditor shall recommend an amount for the stewardship assessment;
121.15 	(10) evidence of adequate insurance and financial assurance that may be required for 
121.16 	collection, handling, and disposal operations;
121.17 	(11) five-year performance goals, including an estimate of the percentage of 
121.18 	discarded carpet that will be collected, reused, and recycled during each of the first five 
121.19 	years of the stewardship plan. The performance goals must include a specific escalating 
121.20 	goal for the amount of discarded carpet that will be collected and recycled and reused 
121.21 	during each year of the plan. The performance goals must be based on:
121.22 	(i) the most recent collection data available for the state;
121.23 	(ii) the amount of carpet disposed of annually;
121.24 	(iii) the weight of the carpet that is expected to be available for collection annually; 
121.25 	and
121.26 	(iv) actual collection data from other existing stewardship programs.
121.27 	The stewardship plan must state the methodology used to determine these goals;
121.28 	(12) carpet design changes that will be considered to reduce toxicity, water use, or 
121.29 	energy use or to increase recycled content, recyclability, or carpet longevity; and
121.30 	(13) a discussion of market development opportunities to expand use of recovered 
121.31 	carpet, with consideration of expanding processing activity near areas of collection.
121.32 		Subd. 6.Consultation required. (a) Each stewardship organization or individual 
121.33 	producer submitting a stewardship plan must consult with stakeholders including retailers, 
121.34 	installers, collectors, recyclers, local government, customers, and citizens during the 
121.35 	development of the plan, solicit stakeholder comments, and attempt to address any 
121.36 	stakeholder concerns regarding the plan before submitting the plan to the agency for review.
122.1 	(b) The producer or stewardship organization must invite comments from local 
122.2 	governments, communities, and citizens to report their satisfaction with services, including 
122.3 	education and outreach, provided by the product stewardship program. The information 
122.4 	must be submitted to the agency and used by the agency in reviewing proposed updates or 
122.5 	changes to the stewardship plan.
122.6 		Subd. 7.Agency review and approval. (a) Within 90 days after receipt of a proposed 
122.7 	stewardship plan, the agency shall determine whether the plan complies with subdivision 
122.8 	5. If the agency approves a plan, the agency shall notify the applicant of the plan approval 
122.9 	in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of 
122.10 	the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must 
122.11 	submit a revised plan to the agency within 60 days after receiving notice of rejection.
122.12 	(b) Any proposed changes to a stewardship plan must be approved by the agency 
122.13 	in writing.
122.14 		Subd. 8.Plan availability. All draft and approved stewardship plans shall be 
122.15 	placed on the agency's Web site for at least 30 days and made available at the agency's 
122.16 	headquarters for public review and comment.
122.17 		Subd. 9.Conduct authorized. A producer or stewardship organization that 
122.18 	organizes collection, transport, and processing of carpet under this section is immune 
122.19 	from liability for the conduct under state laws relating to antitrust, restraint of trade, 
122.20 	unfair trade practices, and other regulation of trade or commerce only to the extent that 
122.21 	the conduct is necessary to plan and implement the producer's or organization's chosen 
122.22 	organized collection or recycling system.
122.23 		Subd. 10.Responsibility of producers. (a) On and after the date of implementation 
122.24 	of a product stewardship program under this section, a producer of carpet must add the 
122.25 	stewardship assessment, as established according to subdivision 5, clause (9), to the cost 
122.26 	of the carpet sold to retailers and distributors in the state by the producer.
122.27 	(b) Producers of carpet or the stewardship organization shall provide consumers 
122.28 	with educational materials regarding the stewardship assessment and product stewardship 
122.29 	program. The materials must include, but are not limited to, information regarding available 
122.30 	end-of-life management options for carpet offered through the product stewardship 
122.31 	program and information that notifies consumers that a charge for the operation of the 
122.32 	product stewardship program is included in the purchase price of carpet sold in the state.
122.33 		Subd. 11.Responsibility of retailers. (a) On and after July 1, 2015, no carpet may 
122.34 	be sold in the state unless the carpet's producer is participating in an approved stewardship 
122.35 	plan.
123.1 	(b) On and after the implementation date of a product stewardship program under 
123.2 	this section, each retailer or distributor, as applicable, must ensure that the full amount of 
123.3 	the stewardship assessment added to the cost of carpet by producers under subdivision 10 
123.4 	is included in the purchase price of all carpet sold in the state.
123.5 	(c) Any retailer may participate, on a voluntary basis, as a designated collection 
123.6 	point pursuant to a product stewardship program under this section and in accordance 
123.7 	with applicable law.
123.8 	(d) No retailer or distributor shall be found to be in violation of this subdivision if, 
123.9 	on the date the carpet was ordered from the producer or its agent, the producer was listed 
123.10 	as compliant on the agency's Web site according to subdivision 14.
123.11 		Subd. 12.Stewardship reports. Beginning October 1, 2016, producers of carpet 
123.12 	sold in the state must individually or through a stewardship organization submit an 
123.13 	annual report to the agency describing the product stewardship program. At a minimum, 
123.14 	the report must contain:
123.15 	(1) a description of the methods used to collect, transport, and process carpet in all 
123.16 	regions of the state;
123.17 	(2) the weight of all carpet collected in all regions of the state and a comparison to 
123.18 	the performance goals and recycling rates established in the stewardship plan;
123.19 	(3) the amount of unwanted carpet collected in the state by method of disposition, 
123.20 	including reuse, recycling, and other methods of processing;
123.21 	(4) identification of the facilities processing carpet and the number and weight 
123.22 	processed at each facility;
123.23 	(5) an evaluation of the program's funding mechanism;
123.24 	(6) samples of educational materials provided to consumers and an evaluation of the 
123.25 	effectiveness of the materials and the methods used to disseminate the materials; and
123.26 	(7) a description of progress made toward achieving carpet design changes according 
123.27 	to subdivision 5, clause (12).
123.28 		Subd. 13.Sales information. Sales information provided to the commissioner 
123.29 	under this section is classified as private or nonpublic data, as specified in section 
123.30 	115A.06, subdivision 13.
123.31 		Subd. 14.Agency responsibilities. The agency shall provide, on its Web site, a 
123.32 	list of all compliant producers and brands participating in stewardship plans that the 
123.33 	agency has approved and a list of all producers and brands the agency has identified as 
123.34 	noncompliant with this section.
123.35 		Subd. 15.Local government responsibilities. (a) A city, county, or other public 
123.36 	agency may choose to participate voluntarily in a carpet product stewardship program.
124.1 	(b) Cities, counties, and other public agencies are encouraged to work with producers 
124.2 	and stewardship organizations to assist in meeting product stewardship program recycling 
124.3 	obligations, by providing education and outreach or using other strategies.
124.4 	(c) A city, county, or other public agency that participates in a product stewardship 
124.5 	program must report for the first year of the program to the agency using the reporting 
124.6 	form provided by the agency on the cost savings as a result of participation and describe 
124.7 	how the savings were used.
124.8 		Subd. 16.Administrative fee. (a) The stewardship organization or individual 
124.9 	producer submitting a stewardship plan shall pay an annual administrative fee to the 
124.10 	commissioner. The agency may establish a variable fee based on relevant factors, 
124.11 	including, but not limited to, the portion of carpet sold in the state by members of the 
124.12 	organization compared to the total amount of carpet sold in the state by all organizations 
124.13 	submitting a stewardship plan.
124.14 	(b) Prior to July 1, 2015, and before July 1 annually thereafter, the agency shall 
124.15 	identify the costs it incurs under this section. The agency shall set the fee at an amount 
124.16 	that, when paid by every stewardship organization or individual producer that submits a 
124.17 	stewardship plan, is adequate to reimburse the agency's full costs of administering this 
124.18 	section. The total amount of annual fees collected under this subdivision must not exceed 
124.19 	the amount necessary to reimburse costs incurred by the agency to administer this section.
124.20 	(c) A stewardship organization or individual producer subject to this subdivision 
124.21 	must pay the agency's administrative fee under paragraph (a) on or before July 1, 2015 and 
124.22 	annually thereafter. Each year after the initial payment, the annual administrative fee may 
124.23 	not exceed five percent of the aggregate stewardship assessment added to the cost of all 
124.24 	carpet sold by producers in the state for the preceding calendar year.
124.25 	(d) All fees received under this section shall be deposited to the state treasury and 
124.26 	credited to a product stewardship account in the Special Revenue Fund. Money in the 
124.27 	account is appropriated to the commissioner for the purpose of reimbursing the agency's 
124.28 	costs incurred to administer this section.

124.29 	Sec. 89. [115A.1415] ARCHITECTURAL PAINT; PRODUCT STEWARDSHIP 
124.30 	PROGRAM; STEWARDSHIP PLAN.
124.31 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
124.32 	the meanings given:
124.33 	(1) "architectural paint" means interior and exterior architectural coatings sold in 
124.34 	containers of five gallons or less. Architectural paint does not include industrial coatings, 
124.35 	original equipment coatings, or specialty coatings;
125.1 	(2) "brand" means a name, symbol, word, or mark that identifies architectural paint, 
125.2 	rather than its components, and attributes the paint to the owner or licensee of the brand as 
125.3 	the producer;
125.4 	(3) "discarded paint" means architectural paint that is no longer used for its 
125.5 	manufactured purpose;
125.6 	(4) "producer" means a person that:
125.7 	(i) has legal ownership of the brand, brand name, or cobrand of architectural paint 
125.8 	sold in the state;
125.9 	(ii) imports architectural paint branded by a producer that meets subclause (i) when 
125.10 	the producer has no physical presence in the United States;
125.11 	(iii) if subclauses (i) and (ii) do not apply, makes unbranded architectural paint 
125.12 	that is sold in the state; or
125.13 	(iv) sells architectural paint at wholesale or retail, does not have legal ownership of 
125.14 	the brand, and elects to fulfill the responsibilities of the producer for the architectural paint 
125.15 	by certifying that election in writing to the commissioner;
125.16 	(5) "recycling" means the process of collecting and preparing recyclable materials and 
125.17 	reusing the materials in their original form or using them in manufacturing processes that 
125.18 	do not cause the destruction of recyclable materials in a manner that precludes further use;
125.19 	(6) "retailer" means any person who offers architectural paint for sale at retail in 
125.20 	the state;
125.21 	(7) "reuse" means donating or selling collected architectural paint back into the 
125.22 	market for its original intended use, when the architectural paint retains its original 
125.23 	purpose and performance characteristics;
125.24 	(8) "sale" or "sell" means transfer of title of architectural paint for consideration, 
125.25 	including a remote sale conducted through a sales outlet, catalog, Web site, or similar 
125.26 	electronic means. Sale or sell includes a lease through which architectural paint is 
125.27 	provided to a consumer by a producer, wholesaler, or retailer;
125.28 	(9) "stewardship assessment" means the amount added to the purchase price of 
125.29 	architectural paint sold in the state that is necessary to cover the cost of collecting, 
125.30 	transporting, and processing postconsumer architectural paint by the producer or 
125.31 	stewardship organization pursuant to a product stewardship program;
125.32 	(10) "stewardship organization" means an organization appointed by one or more 
125.33 	producers to act as an agent on behalf of the producer to design, submit, and administer a 
125.34 	product stewardship program under this section; and
125.35 	(11) "stewardship plan" means a detailed plan describing the manner in which a 
125.36 	product stewardship program under subdivision 2 will be implemented.
126.1 		Subd. 2.Product stewardship program. For architectural paint sold in the state, 
126.2 	producers must, individually or through a stewardship organization, implement and 
126.3 	finance a statewide product stewardship program that manages the architectural paint by 
126.4 	reducing the paint's waste generation, promoting its reuse and recycling, and providing for 
126.5 	negotiation and execution of agreements to collect, transport, and process the architectural 
126.6 	paint for end-of-life recycling and reuse.
126.7 		Subd. 3.Requirement for sale. (a) On and after July 1, 2014, or three months after 
126.8 	program plan approval, whichever is sooner, no producer, wholesaler, or retailer may sell 
126.9 	or offer for sale in the state architectural paint unless the paint's producer participates in an 
126.10 	approved stewardship plan, either individually or through a stewardship organization.
126.11 	(b) Each producer must operate a product stewardship program approved by the 
126.12 	agency or enter into an agreement with a stewardship organization to operate, on the 
126.13 	producer's behalf, a product stewardship program approved by the agency.
126.14 		Subd. 4.Requirement to submit plan. (a) On or before March 1, 2014, and before 
126.15 	offering architectural paint for sale in the state, a producer must submit a stewardship 
126.16 	plan to the agency and receive approval of the plan or must submit documentation to the 
126.17 	agency that demonstrates the producer has entered into an agreement with a stewardship 
126.18 	organization to be an active participant in an approved product stewardship program as 
126.19 	described in subdivision 2. A stewardship plan must include all elements required under 
126.20 	subdivision 5.
126.21 	(b) An amendment to the plan, if determined necessary by the commissioner, must 
126.22 	be submitted every five years.
126.23 	(c) It is the responsibility of the entities responsible for each stewardship plan to 
126.24 	notify the agency within 30 days of any significant changes or modifications to the plan or 
126.25 	its implementation. Within 30 days of the notification, a written plan revision must be 
126.26 	submitted to the agency for review and approval.
126.27 		Subd. 5.Stewardship plan content. A stewardship plan must contain:
126.28 	(1) certification that the product stewardship program will accept all discarded 
126.29 	paint regardless of which producer produced the architectural paint and its individual 
126.30 	components;
126.31 	(2) contact information for the individual and the entity submitting the plan, a list of 
126.32 	all producers participating in the product stewardship program, and the brands covered by 
126.33 	the product stewardship program;
126.34 	(3) a description of the methods by which the discarded paint will be collected in all 
126.35 	areas in the state without relying on end-of-life fees, including an explanation of how the 
126.36 	collection system will be convenient and adequate to serve the needs of small businesses 
127.1 	and residents in both urban and rural areas on an ongoing basis and a discussion of how 
127.2 	the existing household hazardous waste infrastructure will be considered when selecting 
127.3 	collection sites;
127.4 	(4) a description of how the adequacy of the collection program will be monitored 
127.5 	and maintained;
127.6 	(5) the names and locations of collectors, transporters, and recyclers that will 
127.7 	manage discarded paint;
127.8 	(6) a description of how the discarded paint and the paint's components will be 
127.9 	safely and securely transported, tracked, and handled from collection through final 
127.10 	recycling and processing;
127.11 	(7) a description of the method that will be used to reuse, deconstruct, or recycle 
127.12 	the discarded paint to ensure that the paint's components, to the extent feasible, are 
127.13 	transformed or remanufactured into finished products for use;
127.14 	(8) a description of the promotion and outreach activities that will be used to 
127.15 	encourage participation in the collection and recycling programs and how the activities' 
127.16 	effectiveness will be evaluated and the program modified, if necessary;
127.17 	(9) the proposed stewardship assessment. The producer or stewardship organization 
127.18 	shall propose a uniform stewardship assessment for any architectural paint sold in the 
127.19 	state. The proposed stewardship assessment shall be reviewed by an independent auditor 
127.20 	to ensure that the assessment does not exceed the costs of the product stewardship program 
127.21 	and the independent auditor shall recommend an amount for the stewardship assessment. 
127.22 	The agency must approve the stewardship assessment;
127.23 	(10) evidence of adequate insurance and financial assurance that may be required for 
127.24 	collection, handling, and disposal operations;
127.25 	(11) five-year performance goals, including an estimate of the percentage of 
127.26 	discarded paint that will be collected, reused, and recycled during each of the first five 
127.27 	years of the stewardship plan. The performance goals must include a specific goal for the 
127.28 	amount of discarded paint that will be collected and recycled and reused during each year 
127.29 	of the plan. The performance goals must be based on:
127.30 	(i) the most recent collection data available for the state;
127.31 	(ii) the estimated amount of architectural paint disposed of annually;
127.32 	(iii) the weight of the architectural paint that is expected to be available for collection 
127.33 	annually; and
127.34 	(iv) actual collection data from other existing stewardship programs.
127.35 	The stewardship plan must state the methodology used to determine these goals; and
128.1 	(12) a discussion of the status of end markets for collected architectural paint and 
128.2 	what, if any, additional end markets are needed to improve the functioning of the program.
128.3 		Subd. 6.Consultation required. Each stewardship organization or individual 
128.4 	producer submitting a stewardship plan must consult with stakeholders including 
128.5 	retailers, contractors, collectors, recyclers, local government, and customers during the 
128.6 	development of the plan.
128.7 		Subd. 7.Agency review and approval. (a) Within 90 days after receipt of a proposed 
128.8 	stewardship plan, the agency shall determine whether the plan complies with subdivision 
128.9 	4. If the agency approves a plan, the agency shall notify the applicant of the plan approval 
128.10 	in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of 
128.11 	the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must 
128.12 	submit a revised plan to the agency within 60 days after receiving notice of rejection.
128.13 	(b) Any proposed changes to a stewardship plan must be approved by the agency 
128.14 	in writing.
128.15 		Subd. 8.Plan availability. All draft and approved stewardship plans shall be 
128.16 	placed on the agency's Web site for at least 30 days and made available at the agency's 
128.17 	headquarters for public review and comment.
128.18 		Subd. 9.Conduct authorized. A producer or stewardship organization that 
128.19 	organizes collection, transport, and processing of architectural paint under this section 
128.20 	is immune from liability for the conduct under state laws relating to antitrust, restraint 
128.21 	of trade, unfair trade practices, and other regulation of trade or commerce only to the 
128.22 	extent that the conduct is necessary to plan and implement the producer's or organization's 
128.23 	chosen organized collection or recycling system.
128.24 		Subd. 10.Responsibility of producers. (a) On and after the date of implementation 
128.25 	of a product stewardship program according to this section, a producer of architectural 
128.26 	paint must add the stewardship assessment, as established under subdivision 5, clause (9), 
128.27 	to the cost of architectural paint sold to retailers and distributors in the state by the producer.
128.28 	(b) Producers of architectural paint or the stewardship organization shall provide 
128.29 	consumers with educational materials regarding the stewardship assessment and product 
128.30 	stewardship program. The materials must include, but are not limited to, information 
128.31 	regarding available end-of-life management options for architectural paint offered through 
128.32 	the product stewardship program and information that notifies consumers that a charge 
128.33 	for the operation of the product stewardship program is included in the purchase price of 
128.34 	architectural paint sold in the state.
129.1 		Subd. 11.Responsibility of retailers. (a) On and after July 1, 2014, or three months 
129.2 	after program plan approval, whichever is sooner, no architectural paint may be sold in the 
129.3 	state unless the paint's producer is participating in an approved stewardship plan.
129.4 	(b) On and after the implementation date of a product stewardship program 
129.5 	according to this section, each retailer or distributor, as applicable, must ensure that the 
129.6 	full amount of the stewardship assessment added to the cost of paint by producers under 
129.7 	subdivision 10 is included in the purchase price of all architectural paint sold in the state.
129.8 	(c) Any retailer may participate, on a voluntary basis, as a designated collection 
129.9 	point pursuant to a product stewardship program under this section and in accordance 
129.10 	with applicable law.
129.11 	(d) No retailer or distributor shall be found to be in violation of this subdivision if, 
129.12 	on the date the architectural paint was ordered from the producer or its agent, the producer 
129.13 	was listed as compliant on the agency's Web site according to subdivision 14.
129.14 		Subd. 12.Stewardship reports.  Beginning October 1, 2015, producers of 
129.15 	architectural paint sold in the state must individually or through a stewardship organization 
129.16 	submit an annual report to the agency describing the product stewardship program. At a 
129.17 	minimum, the report must contain:
129.18 	(1) a description of the methods used to collect, transport, and process architectural 
129.19 	paint in all regions of the state;
129.20 	(2) the weight of all architectural paint collected in all regions of the state and a 
129.21 	comparison to the performance goals and recycling rates established in the stewardship 
129.22 	plan;
129.23 	(3) the amount of unwanted architectural paint collected in the state by method of 
129.24 	disposition, including reuse, recycling, and other methods of processing;
129.25 	(4) samples of educational materials provided to consumers and an evaluation of the 
129.26 	effectiveness of the materials and the methods used to disseminate the materials; and
129.27 	(5) an independent financial audit.
129.28 		Subd. 13.Sales information. Sales information provided to the commissioner 
129.29 	under this section is classified as private or nonpublic data, as specified in section 
129.30 	115A.06, subdivision 13.
129.31 		Subd. 14.Agency responsibilities. The agency shall provide, on its Web site, a 
129.32 	list of all compliant producers and brands participating in stewardship plans that the 
129.33 	agency has approved and a list of all producers and brands the agency has identified as 
129.34 	noncompliant with this section.
129.35 		Subd. 15.Local government responsibilities. (a) A city, county, or other public 
129.36 	agency may choose to participate voluntarily in a product stewardship program.
130.1 	(b) Cities, counties, and other public agencies are encouraged to work with producers 
130.2 	and stewardship organizations to assist in meeting product stewardship program reuse and 
130.3 	recycling obligations, by providing education and outreach or using other strategies.
130.4 	(c) A city, county, or other public agency that participates in a product stewardship 
130.5 	program must report for the first year of the program to the agency using the reporting 
130.6 	form provided by the agency on the cost savings as a result of participation and describe 
130.7 	how the savings were used.
130.8 		Subd. 16.Administrative fee. (a) The stewardship organization or individual 
130.9 	producer submitting a stewardship plan shall pay an annual administrative fee to the 
130.10 	commissioner. The agency may establish a variable fee based on relevant factors, 
130.11 	including, but not limited to, the portion of architectural paint sold in the state by members 
130.12 	of the organization compared to the total amount of architectural paint sold in the state by 
130.13 	all organizations submitting a stewardship plan.
130.14 	(b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall 
130.15 	identify the costs it incurs under this section. The agency shall set the fee at an amount 
130.16 	that, when paid by every stewardship organization or individual producer that submits a 
130.17 	stewardship plan, is adequate to reimburse the agency's full costs of administering this 
130.18 	section. The total amount of annual fees collected under this subdivision must not exceed 
130.19 	the amount necessary to reimburse costs incurred by the agency to administer this section.
130.20 	(c) A stewardship organization or individual producer subject to this subdivision 
130.21 	must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014 and 
130.22 	annually thereafter. Each year after the initial payment, the annual administrative fee may 
130.23 	not exceed five percent of the aggregate stewardship assessment added to the cost of all 
130.24 	architectural paint sold by producers in the state for the preceding calendar year.
130.25 	(d) All fees received under this section shall be deposited to the state treasury and 
130.26 	credited to a product stewardship account in the Special Revenue Fund. Money in the 
130.27 	account is appropriated to the commissioner for the purpose of reimbursing the agency's 
130.28 	costs incurred to administer this section.

130.29 	Sec. 90. [115A.142] PRIMARY BATTERIES; PRODUCT STEWARDSHIP 
130.30 	PROGRAM; STEWARDSHIP PLAN.
130.31 		Subdivision 1.Definitions. For purposes of this section, the following terms have 
130.32 	the meaning given:
130.33 	(1) "brand" means a name, symbol, word, or mark that identifies a primary battery, 
130.34 	rather than its components, and attributes the battery to the owner or licensee of the brand 
130.35 	as the producer;
131.1 	(2) "discarded battery" means a primary battery that is no longer used for its 
131.2 	manufactured purpose;
131.3 	(3) "primary battery" means a battery weighing two kilograms or less that is not 
131.4 	designed to be electrically recharged, including, but not limited to, alkaline manganese, 
131.5 	carbon zinc, lithium, silver oxide, and zinc air batteries. Nonremovable batteries and 
131.6 	medical devices as defined in the federal Food, Drug, and Cosmetic Act, United States 
131.7 	Code, title 21, section 321, paragraph (h), as amended, are exempted from this definition.
131.8 	(4) "producer" means a person that:
131.9 	(i) has legal ownership of the brand, brand name, or cobrand of a primary battery 
131.10 	sold in the state;
131.11 	(ii) imports a primary battery branded by a producer that meets subclause (i) when 
131.12 	the producer has no physical presence in the United States;
131.13 	(iii) if subclauses (i) and (ii) do not apply, makes an unbranded primary battery 
131.14 	that is sold in the state; or
131.15 	(iv) sells a primary battery at wholesale or retail, does not have legal ownership 
131.16 	of the brand, and elects to fulfill the responsibilities of the producer for the battery by 
131.17 	certifying that election in writing to the commissioner;
131.18 	(5) "recycling" means the process of collecting and preparing recyclable materials and 
131.19 	reusing the materials in their original form or using them in manufacturing processes that 
131.20 	do not cause the destruction of recyclable materials in a manner that precludes further use;
131.21 	(6) "retailer" means any person who offers primary batteries for sale at retail in 
131.22 	the state;
131.23 	(7) "sale" or "sell" means transfer of title of a primary battery for consideration, 
131.24 	including a remote sale conducted through a sales outlet, catalog, Web site, or similar 
131.25 	electronic means. Sale or sell includes a lease through which a primary battery is provided 
131.26 	to a consumer by a producer, wholesaler, or retailer;
131.27 	(8) "stewardship organization" means an organization appointed by one or more 
131.28 	producers to act as an agent on behalf of the producer to design, submit, and administer a 
131.29 	product stewardship program under this section; and
131.30 	(9) "stewardship plan" means a detailed plan describing the manner in which a 
131.31 	product stewardship program under subdivision 2 will be implemented.
131.32 		Subd. 2.Product stewardship program. For each primary battery sold in the 
131.33 	state, producers must, individually or through a stewardship organization, implement 
131.34 	and finance a statewide product stewardship program that manages primary batteries by 
131.35 	reducing primary battery waste generation, promoting primary battery recycling, and 
132.1 	providing for negotiation and execution of agreements to collect, transport, and process 
132.2 	primary batteries for end-of-life recycling.
132.3 		Subd. 3.Requirement for sale. (a) On and after December 1, 2014, or three months 
132.4 	after program plan approval, whichever is sooner, no producer, wholesaler, or retailer may 
132.5 	sell or offer for sale in the state a primary battery unless the battery's producer participates 
132.6 	in an approved stewardship plan, either individually or through a stewardship organization.
132.7 	(b) Each producer must operate a product stewardship program approved by the 
132.8 	agency or enter into an agreement with a stewardship organization to operate, on the 
132.9 	producer's behalf, a product stewardship program approved by the agency.
132.10 		Subd. 4.Requirement to submit plan. (a) On or before August 1, 2014, and before 
132.11 	offering a primary battery for sale in the state, a producer must submit a stewardship 
132.12 	plan to the agency and receive approval of the plan or must submit documentation to the 
132.13 	agency that demonstrates the producer has entered into an agreement with a stewardship 
132.14 	organization to be an active participant in an approved product stewardship program as 
132.15 	described in subdivision 2. A stewardship plan must include all elements required under 
132.16 	subdivision 5.
132.17 	(b) An amendment to the plan, if determined necessary by the commissioner, must 
132.18 	be submitted every five years.
132.19 	(c) It is the responsibility of the entities responsible for each stewardship plan to 
132.20 	notify the agency within 30 days of any significant changes or modifications to the plan or 
132.21 	its implementation. Within 30 days of the notification, a written plan revision must be 
132.22 	submitted to the agency for review and approval.
132.23 		Subd. 5.Stewardship plan content. A stewardship plan must contain:
132.24 	(1) certification that the product stewardship program will accept discarded primary 
132.25 	batteries regardless of which producer produced the batteries and their individual 
132.26 	components;
132.27 	(2) contact information for the individual and the entity submitting the plan, a list of 
132.28 	all producers participating in the product stewardship program, and the brands covered by 
132.29 	the product stewardship program;
132.30 	(3) a description of the methods by which the discarded primary batteries will 
132.31 	be collected in all areas in the state without relying on end-of-life fees, including an 
132.32 	explanation of how the collection system will be convenient and adequate to serve the 
132.33 	needs of small businesses and residents in both urban and rural areas on an ongoing basis;
132.34 	(4) a description of how the adequacy of the collection program will be monitored 
132.35 	and maintained;
133.1 	(5) the names and locations of collectors, transporters, and recyclers that will 
133.2 	manage discarded batteries;
133.3 	(6) a description of how the discarded primary batteries and the batteries' 
133.4 	components will be safely and securely transported, tracked, and handled from collection 
133.5 	through final recycling and processing;
133.6 	(7) a description of the method that will be used to recycle the discarded primary 
133.7 	batteries to ensure that the batteries' components, to the extent feasible, are transformed or 
133.8 	remanufactured into finished batteries for use;
133.9 	(8) a description of the promotion and outreach activities that will be used to 
133.10 	encourage participation in the collection and recycling programs and how the activities' 
133.11 	effectiveness will be evaluated and the program modified, if necessary;
133.12 	(9) evidence of adequate insurance and financial assurance that may be required for 
133.13 	collection, handling, and disposal operations;
133.14 	(10) five-year performance goals, including an estimate of the percentage of 
133.15 	discarded primary batteries that will be collected, reused, and recycled during each of the 
133.16 	first five years of the stewardship plan. The performance goals must include a specific 
133.17 	escalating goal for the amount of discarded primary batteries that will be collected and 
133.18 	recycled during each year of the plan. The performance goals must be based on:
133.19 	(i) the most recent collection data available for the state;
133.20 	(ii) the estimated amount of primary batteries disposed of annually;
133.21 	(iii) the weight of primary batteries that is expected to be available for collection 
133.22 	annually; 
133.23 	(iv) actual collection data from other existing stewardship programs; and
133.24 	(v) the market share of the producers participating in the plan.
133.25 	The stewardship plan must state the methodology used to determine these goals; and
133.26 	(11) a discussion of the status of end markets for discarded batteries and what, if any, 
133.27 	additional end markets are needed to improve the functioning of the program.
133.28 		Subd. 6.Consultation required. Each stewardship organization or individual 
133.29 	producer submitting a stewardship plan must consult with stakeholders including retailers, 
133.30 	collectors, recyclers, local government, and customers during the development of the plan.
133.31 		Subd. 7.Agency review and approval. (a) Within 90 days after receipt of a proposed 
133.32 	stewardship plan, the agency shall determine whether the plan complies with subdivision 
133.33 	5. If the agency approves a plan, the agency shall notify the applicant of the plan approval 
133.34 	in writing. If the agency rejects a plan, the agency shall notify the applicant in writing of 
133.35 	the reasons for rejecting the plan. An applicant whose plan is rejected by the agency must 
133.36 	submit a revised plan to the agency within 60 days after receiving notice of rejection.
134.1 	(b) Any proposed changes to a stewardship plan must be approved by the agency 
134.2 	in writing.
134.3 		Subd. 8.Plan availability. All draft and approved stewardship plans shall be 
134.4 	placed on the agency's Web site for at least 30 days and made available at the agency's 
134.5 	headquarters for public review and comment.
134.6 		Subd. 9.Conduct authorized. A producer or stewardship organization that 
134.7 	organizes collection, transport, and processing of primary batteries under this section 
134.8 	is immune from liability for the conduct under state laws relating to antitrust, restraint 
134.9 	of trade, unfair trade practices, and other regulation of trade or commerce only to the 
134.10 	extent that the conduct is necessary to plan and implement the producer's or organization's 
134.11 	chosen organized collection or recycling system.
134.12 		Subd. 10.Responsibility of retailers. (a) On and after December 1, 2014, or three 
134.13 	months after program plan approval, whichever is sooner, no primary battery may be sold 
134.14 	in the state unless the battery's producer is participating in an approved stewardship plan.
134.15 	(b) Any retailer may participate, on a voluntary basis, as a designated collection 
134.16 	point pursuant to a product stewardship program under this section and in accordance 
134.17 	with applicable law.
134.18 	(c) No retailer or distributor shall be found to be in violation of this subdivision if, 
134.19 	on the date the primary battery was ordered from the producer or its agent, the producer 
134.20 	was listed as compliant on the agency's Web site according to subdivision 12.
134.21 		Subd. 11.Stewardship reports.  Beginning March 1, 2016, producers of primary 
134.22 	batteries sold in the state must individually or through a stewardship organization 
134.23 	submit an annual report to the agency describing the product stewardship program. At a 
134.24 	minimum, the report must contain:
134.25 	(1) a description of the methods used to collect, transport, and process primary 
134.26 	batteries in all regions of the state;
134.27 	(2) the weight of all primary batteries collected in all regions of the state and a 
134.28 	comparison to the performance goals and recycling rates established in the stewardship 
134.29 	plan;
134.30 	(3) the amount of discarded primary batteries collected in the state by method of 
134.31 	disposition, including recycling, and other methods of processing;
134.32 	(4) samples of educational materials provided to consumers and an evaluation of the 
134.33 	effectiveness of the materials and the methods used to disseminate the materials; and
134.34 	(5) an independent financial audit of the stewardship organization.
134.35 		Subd. 12.Agency responsibilities. The agency shall provide, on its Web site, a 
134.36 	list of all compliant producers and brands participating in stewardship plans that the 
135.1 	agency has approved and a list of all producers and brands the agency has identified as 
135.2 	noncompliant with this section.
135.3 		Subd. 13.Sales information. Sales information provided to the commissioner 
135.4 	under this section is classified as private or nonpublic data, as specified in section 
135.5 	115A.06, subdivision 13.
135.6 		Subd. 14.Local government responsibilities. (a) A city, county, or other public 
135.7 	agency may choose to participate voluntarily in a product stewardship program.
135.8 	(b) Cities, counties, and other public agencies are encouraged to work with producers 
135.9 	and stewardship organizations to assist in meeting product stewardship program recycling 
135.10 	obligations, by providing education and outreach or using other strategies.
135.11 	(c) A city, county, or other public agency that participates in a product stewardship 
135.12 	program must report for the first year of the program to the agency using the reporting 
135.13 	form provided by the agency on the cost savings as a result of participation and describe 
135.14 	how the savings were used.
135.15 		Subd. 15.Administrative fee. (a) The stewardship organization or individual 
135.16 	producer submitting a stewardship plan shall pay an annual administrative fee to the 
135.17 	commissioner. The agency may establish a variable fee based on relevant factors, 
135.18 	including, but not limited to, the portion of primary batteries sold in the state by members 
135.19 	of the organization compared to the total amount of primary batteries sold in the state by 
135.20 	all organizations submitting a stewardship plan.
135.21 	(b) Prior to July 1, 2015, and before July 1 annually thereafter, the agency shall 
135.22 	identify the costs it incurs under this section. The agency shall set the fee at an amount 
135.23 	that, when paid by every stewardship organization or individual producer that submits a 
135.24 	stewardship plan, is adequate to reimburse the agency's full costs of administering this 
135.25 	section. The total amount of annual fees collected under this subdivision must not exceed 
135.26 	the amount necessary to reimburse costs incurred by the agency to administer this section.
135.27 	(c) A stewardship organization or individual producer subject to this subdivision 
135.28 	must pay the agency's administrative fee under paragraph (a) on or before July 1, 2015 
135.29 	and annually thereafter.
135.30 	(d) All fees received under this section shall be deposited to the state treasury and 
135.31 	credited to a product stewardship account in the Special Revenue Fund. Money in the 
135.32 	account is appropriated to the commissioner for the purpose of reimbursing the agency's 
135.33 	costs incurred to administer this section.
135.34 		Subd. 16.Exemption; medical device. The requirements of this section do not 
135.35 	apply to a medical device as defined in the Food, Drug, and Cosmetic Act, United States 
135.36 	Code, title 21, section 321, paragraph (h).
136.1 		Subd. 17.Private enforcement. (a) The operator of a statewide product stewardship 
136.2 	program established under subdivision 2 that incurs costs exceeding $5,000 to collect, 
136.3 	handle, recycle, or properly dispose of discarded primary batteries sold or offered for sale 
136.4 	in Minnesota by a producer who does not implement its own program or participate in a 
136.5 	program implemented by a stewardship organization, may bring a civil action or actions 
136.6 	to recover costs and fees as specified in paragraph (b) from each nonimplementing or 
136.7 	nonparticipating producer who can reasonably be identified from a brand or marking on a 
136.8 	used consumer battery or from other information.
136.9 	(b) An action under paragraph (a) may be brought against one or more primary 
136.10 	battery producers, provided that no such action may be commenced:
136.11 	(1) prior to 60 days after written notice of the operator's intention to file suit has been 
136.12 	provided to the agency and the defendant or defendants; or
136.13 	(2) if the agency has commenced enforcement actions under subdivision 10 and is 
136.14 	diligently pursuing such actions.
136.15 	(c) In any action under paragraph (b), the plaintiff operator may recover from 
136.16 	a defendant nonimplementing or nonparticipating primary battery producer costs the 
136.17 	plaintiff incurred to collect, handle, recycle, or properly dispose of primary batteries 
136.18 	reasonably identified as having originated from the defendant, plus the plaintiff's attorney 
136.19 	fees and litigation costs.

136.20 	Sec. 91. [115A.1425] REPORT TO LEGISLATURE AND GOVERNOR.
136.21 	As part of the report required under section 115A.121, the commissioner of the 
136.22 	Pollution Control Agency shall provide a report to the governor and the legislature on the 
136.23 	implementation of sections 115A.141, 115A.1415, and 115A.142.

136.24 	Sec. 92. Minnesota Statutes 2012, section 115B.20, subdivision 6, is amended to read:
136.25 		Subd. 6.Report to legislature. Each year By January 31 of each odd-numbered 
136.26 	year, the commissioner of agriculture and the agency shall submit to the senate Finance 
136.27 	Committee, the house of representatives Ways and Means Committee, the Environment 
136.28 	and Natural Resources Committees of the senate and house of representatives, the Finance 
136.29 	Division of the senate Committee on Environment and Natural Resources, and the house 
136.30 	of representatives Committee on Environment and Natural Resources Finance, and the 
136.31 	Environmental Quality Board a report detailing the activities for which money has been 
136.32 	spent pursuant to this section during the previous fiscal year.

136.33 	EFFECTIVE DATE. This section is effective July 1, 2013.

137.1 	Sec. 93. Minnesota Statutes 2012, section 115B.28, subdivision 1, is amended to read:
137.2 		Subdivision 1.Duties. In addition to performing duties specified in sections 
137.3 	115B.25 to 115B.37 or in other law, and subject to the limitations on disclosure contained 
137.4 	in section 115B.35, the agency shall:
137.5 	(1) adopt rules, including rules governing practice and procedure before the agency, 
137.6 	the form and procedure for applications for compensation, and procedures for claims 
137.7 	investigations;
137.8 	(2) publicize the availability of compensation and application procedures on a 
137.9 	statewide basis with special emphasis on geographical areas surrounding sites identified 
137.10 	by the agency as having releases from a facility where a harmful substance was placed or 
137.11 	came to be located prior to July 1, 1983;
137.12 	(3) collect, analyze, and make available to the public, in consultation with the 
137.13 	Department of Health, the Pollution Control Agency, the University of Minnesota Medical 
137.14 	and Public Health Schools, and the medical community, data regarding injuries relating to 
137.15 	exposure to harmful substances; and
137.16 	(4) prepare and transmit by December 31 of each year to the governor and the 
137.17 	legislature an annual legislative report required under section 115B.20, subdivision 
137.18 	6, to include (i) a summary of agency activity under clause (3); (ii) data determined 
137.19 	by the agency from actual cases, including but not limited to number of cases, actual 
137.20 	compensation received by each claimant, types of cases, and types of injuries compensated, 
137.21 	as they relate to types of harmful substances as well as length of exposure, but excluding 
137.22 	identification of the claimants; (iii) all administrative costs associated with the business of 
137.23 	the agency; and (iv) agency recommendations for legislative changes, further study, or any 
137.24 	other recommendation aimed at improving the system of compensation.

137.25 	Sec. 94. Minnesota Statutes 2012, section 115C.02, subdivision 4, is amended to read:
137.26 		Subd. 4.Corrective action. "Corrective action" means an action taken to minimize, 
137.27 	eliminate, or clean up a release to protect the public health and welfare or the environment.
137.28 	 Corrective action may include environmental covenants pursuant to chapter 114E, an 
137.29 	affidavit required under section 116.48, subdivision 6, or similar notice of a release 
137.30 	recorded with real property records.

137.31 	Sec. 95. Minnesota Statutes 2012, section 115C.08, subdivision 4, is amended to read:
137.32 		Subd. 4.Expenditures. (a) Money in the fund may only be spent:
137.33 	(1) to administer the petroleum tank release cleanup program established in this 
137.34 	chapter;
138.1 	(2) for agency administrative costs under sections 116.46 to 116.50, sections 
138.2 	115C.03 to 115C.06, and costs of corrective action taken by the agency under section 
138.3 	115C.03, including investigations;
138.4 	(3) for costs of recovering expenses of corrective actions under section 115C.04;
138.5 	(4) for training, certification, and rulemaking under sections 116.46 to 116.50;
138.6 	(5) for agency administrative costs of enforcing rules governing the construction, 
138.7 	installation, operation, and closure of aboveground and underground petroleum storage 
138.8 	tanks;
138.9 	(6) for reimbursement of the environmental response, compensation, and compliance 
138.10 	account under subdivision 5 and section 115B.26, subdivision 4;
138.11 	(7) for administrative and staff costs as set by the board to administer the petroleum 
138.12 	tank release program established in this chapter;
138.13 	(8) for corrective action performance audits under section 115C.093;
138.14 	(9) for contamination cleanup grants, as provided in paragraph (c);
138.15 	(10) to assess and remove abandoned underground storage tanks under section 
138.16 	115C.094 and, if a release is discovered, to pay for the specific consultant and contractor 
138.17 	services costs necessary to complete the tank removal project, including, but not limited 
138.18 	to, excavation soil sampling, groundwater sampling, soil disposal, and completion of 
138.19 	an excavation report; and
138.20 	(11) for property acquisition by the agency when the agency has determined that 
138.21 	purchasing a property where a release has occurred is the most appropriate corrective 
138.22 	action. The to acquire interests in real or personal property, including easements, 
138.23 	environmental covenants under chapter 114E, and leases, that the agency determines are 
138.24 	necessary for corrective actions or to ensure the protectiveness of corrective actions. A 
138.25 	donation of an interest in real property to the agency is not effective until the agency 
138.26 	executes a certificate of acceptance. The state is not liable under this chapter solely as a 
138.27 	result of acquiring an interest in real property under this clause. Agency approval of an 
138.28 	environmental covenant under chapter 114E is sufficient evidence of acceptance of an 
138.29 	interest in real property when the agency is expressly identified as a holder in the covenant.
138.30 	 Acquisition of all properties real property under this clause, except environmental 
138.31 	covenants under chapter 114E, is subject to approval by the board.
138.32 	(b) Except as provided in paragraph (c), money in the fund is appropriated to the 
138.33 	board to make reimbursements or payments under this section.
138.34 	(c) In fiscal years 2010 and 2011, $3,700,000 is annually appropriated from the fund 
138.35 	to the commissioner of employment and economic development for contamination cleanup 
138.36 	grants under section 116J.554. Beginning in fiscal year 2012 and each year thereafter, 
139.1 	$6,200,000 is annually appropriated from the fund to the commissioner of employment 
139.2 	and economic development for contamination cleanup grants under section 116J.554. Of 
139.3 	this amount, the commissioner may spend up to $225,000 annually for administration 
139.4 	of the contamination cleanup grant program. The appropriation does not cancel and is 
139.5 	available until expended. The appropriation shall not be withdrawn from the fund nor the 
139.6 	fund balance reduced until the funds are requested by the commissioner of employment 
139.7 	and economic development. The commissioner shall schedule requests for withdrawals 
139.8 	from the fund to minimize the necessity to impose the fee authorized by subdivision 2. 
139.9 	Unless otherwise provided, the appropriation in this paragraph may be used for:
139.10 	(1) project costs at a qualifying site if a portion of the cleanup costs are attributable 
139.11 	to petroleum contamination or new and used tar and tar-like substances, including but not 
139.12 	limited to bitumen and asphalt, but excluding bituminous or asphalt pavement, that consist 
139.13 	primarily of hydrocarbons and are found in natural deposits in the earth or are distillates, 
139.14 	fractions, or residues from the processing of petroleum crude or petroleum products as 
139.15 	defined in section 296A.01; and
139.16 	(2) the costs of performing contamination investigation if there is a reasonable basis 
139.17 	to suspect the contamination is attributable to petroleum or new and used tar and tar-like 
139.18 	substances, including but not limited to bitumen and asphalt, but excluding bituminous or 
139.19 	asphalt pavement, that consist primarily of hydrocarbons and are found in natural deposits 
139.20 	in the earth or are distillates, fractions, or residues from the processing of petroleum crude 
139.21 	or petroleum products as defined in section 296A.01.

139.22 	Sec. 96. Minnesota Statutes 2012, section 115C.08, is amended by adding a subdivision 
139.23 	to read:
139.24 		Subd. 6.Disposition of property acquired for corrective action. (a) If the 
139.25 	commissioner determines that real or personal property acquired by the agency for a 
139.26 	corrective action is no longer needed for corrective action purposes, the commissioner may:
139.27 	(1) request the commissioner of administration to dispose of the property according 
139.28 	to sections 16B.281 to 16B.287, subject to conditions the commissioner of the Pollution 
139.29 	Control Agency determines necessary to protect the public health and welfare and the 
139.30 	environment or to comply with federal law;
139.31 	(2) transfer the property to another state agency, a political subdivision, or a special 
139.32 	purpose district as provided in paragraph (b); or
139.33 	(3) if required by federal law, take actions and dispose of the property according 
139.34 	to federal law.
140.1 	(b) If the commissioner determines that real or personal property acquired by 
140.2 	the agency for a corrective action must be operated, maintained, or monitored after 
140.3 	completion of other phases of the corrective action, the commissioner may transfer 
140.4 	ownership of the property to another state agency, a political subdivision, or a special 
140.5 	purpose district that agrees to accept the property. A state agency, political subdivision, 
140.6 	or special purpose district may accept and implement terms and conditions of a transfer 
140.7 	under this paragraph. The commissioner may set terms and conditions for the transfer 
140.8 	that the commissioner considers reasonable and necessary to ensure proper operation, 
140.9 	maintenance, and monitoring of corrective actions; protect the public health and welfare 
140.10 	and the environment; and comply with applicable federal and state laws and regulations. 
140.11 	The state agency, political subdivision, or special purpose district to which the property is 
140.12 	transferred is not liable under this chapter solely as a result of acquiring the property or 
140.13 	acting in accordance with the terms and conditions of transfer.
140.14 	(c) The proceeds of a sale or other transfer of property under this subdivision 
140.15 	by the commissioner or by the commissioner of administration shall be deposited in 
140.16 	the petroleum tank fund or other appropriate fund. Any share of the proceeds that the 
140.17 	agency is required by federal law or regulation to reimburse to the federal government is 
140.18 	appropriated from the fund to the agency for the purpose. Section 16B.287, subdivision 1, 
140.19 	does not apply to real property that is sold by the commissioner of administration and that 
140.20 	was acquired under subdivision 4, clause (11).

140.21 	Sec. 97. Minnesota Statutes 2012, section 115D.10, is amended to read:
140.22 	115D.10 TOXIC POLLUTION PREVENTION EVALUATION REPORT.
140.23 	The commissioner, in cooperation with the commission, shall report to 
140.24 	the Environment and Natural Resources Committees of the senate and house of 
140.25 	representatives, the Finance Division of the senate Committee on Environment and 
140.26 	Natural Resources, and the house of representatives Committee on Environment and 
140.27 	Natural Resources Finance on progress being made in achieving the objectives of sections 
140.28 	115D.01 to 115D.12. The report must be submitted by February 1 of each even-numbered 
140.29 	year done in conjunction with the report required under section 115A.121.

140.30 	Sec. 98. Minnesota Statutes 2012, section 116.48, subdivision 6, is amended to read:
140.31 		Subd. 6.Affidavit. (a) Before transferring ownership of property that the owner 
140.32 	knows contains an underground or aboveground storage tank or contained an underground 
140.33 	or aboveground storage tank that had a release for which no corrective action was taken or 
140.34 	if required by the agency as a condition of a corrective action under chapter 115C, the 
141.1 	owner shall record with the county recorder or registrar of titles of the county in which the 
141.2 	property is located an affidavit containing:
141.3 	(1) a legal description of the property where the tank is located;
141.4 	(2) a description of the tank, of the location of the tank, and of any known release 
141.5 	from the tank of a regulated substance to the full extent known or reasonably ascertainable;
141.6 	(3) a description of any restrictions currently in force on the use of the property 
141.7 	resulting from any release; and
141.8 	(4) the name of the owner.
141.9 	(b) The county recorder shall record the affidavits in a manner that will insure 
141.10 	their disclosure in the ordinary course of a title search of the subject property. Before 
141.11 	transferring ownership of property that the owner knows contains an underground or 
141.12 	aboveground storage tank, the owner shall deliver to the purchaser a copy of the affidavit 
141.13 	and any additional information necessary to make the facts in the affidavit accurate as of 
141.14 	the date of transfer of ownership.
141.15 	(c) Failure to record an affidavit as provided in this subdivision does not affect or 
141.16 	prevent any transfer of ownership of the property.

141.17 	Sec. 99. Minnesota Statutes 2012, section 116C.03, subdivision 2, is amended to read:
141.18 		Subd. 2.Membership. The members of the board are the director of the Office of 
141.19 	Strategic and Long-Range Planning commissioner of administration, the commissioner 
141.20 	of commerce, the commissioner of the Pollution Control Agency, the commissioner 
141.21 	of natural resources, the commissioner of agriculture, the commissioner of health, 
141.22 	the commissioner of employment and economic development, the commissioner of 
141.23 	transportation, the chair of the Board of Water and Soil Resources, and a representative of 
141.24 	the governor's office designated by the governor. The governor shall appoint five members 
141.25 	from the general public to the board, subject to the advice and consent of the senate. 
141.26 	At least two of the five public members must have knowledge of and be conversant in 
141.27 	water management issues in the state. Notwithstanding the provisions of section 15.06, 
141.28 	subdivision 6, members of the board may not delegate their powers and responsibilities as 
141.29 	board members to any other person.

141.30 	Sec. 100. Minnesota Statutes 2012, section 116C.03, subdivision 4, is amended to read:
141.31 		Subd. 4.Support. Staff and consultant support for board activities shall be provided 
141.32 	by the Office of Strategic and Long-Range Planning Pollution Control Agency. This 
141.33 	support shall be provided based upon an annual budget and work program developed by 
141.34 	the board and certified to the commissioner by the chair of the board. The board shall 
142.1 	have the authority to request and require staff support from all other agencies of state 
142.2 	government as needed for the execution of the responsibilities of the board.

142.3 	Sec. 101. Minnesota Statutes 2012, section 116C.03, subdivision 5, is amended to read:
142.4 		Subd. 5.Administration. The board shall contract with the Office of Strategic and 
142.5 	Long-Range Planning Pollution Control Agency for administrative services necessary to 
142.6 	the board's activities. The services shall include personnel, budget, payroll and contract 
142.7 	administration.

142.8 	Sec. 102. [116C.99] SILICA SAND MINING MODEL STANDARDS AND 
142.9 	CRITERIA.
142.10 		Subdivision 1.Definitions. The definitions in this subdivision apply to this section.
142.11 	(a) "Local unit of government" means a county, statutory or home rule charter city, 
142.12 	or town.
142.13 	(b) "Mining" means excavating and mining silica sand by any process, including 
142.14 	digging, excavating, mining, drilling, blasting, tunneling, dredging, stripping, or by shaft.
142.15 	(c) "Processing" means washing, cleaning, screening, crushing, filtering, sorting, 
142.16 	processing, stockpiling, and storing silica sand, either at the mining site or at any other site.
142.17 	(d) "Silica sand" means well-rounded, sand-sized grains of quartz (silicon dioxide), 
142.18 	with very little impurities in terms of other minerals. Specifically, the silica sand for the 
142.19 	purposes of this section is commercially valuable for use in the hydraulic fracturing of 
142.20 	shale to obtain oil and natural gas. Silica sand does not include common rock, stone, 
142.21 	aggregate, gravel, sand with a low quartz level, or silica compounds recovered as a 
142.22 	by-product of metallic mining.
142.23 	(e) "Silica sand project" means the excavation and mining and processing of silica 
142.24 	sand; the washing, cleaning, screening, crushing, filtering, drying, sorting, stockpiling, 
142.25 	and storing of silica sand, either at the mining site or at any other site; the hauling and 
142.26 	transporting of silica sand; or a facility for transporting silica sand to destinations by rail, 
142.27 	barge, truck, or other means of transportation.
142.28 	(f) "Temporary storage" means the storage of stock piles of silica sand that have 
142.29 	been transported and await further transport.
142.30 	(g) "Transporting" means hauling and transporting silica sand, by any carrier:
142.31 	(1) from the mining site to a processing or transfer site; or
142.32 	(2) from a processing or storage site to a rail, barge, or transfer site for transporting 
142.33 	to destinations.
143.1 		Subd. 2.Standards and criteria. (a) By October 1, 2013, the Environmental 
143.2 	Quality Board, in consultation with local units of government, shall develop model 
143.3 	standards and criteria for mining, processing, and transporting silica sand. These standards 
143.4 	and criteria may be used by local units of government in developing local ordinances. 
143.5 	The standards and criteria must include:
143.6 	(1) recommendations for setbacks or buffers for mining operation and processing, 
143.7 	including:
143.8 	(i) any residence or residential zoning district boundary;
143.9 	(ii) any property line or right-of-way line of any existing or proposed street or 
143.10 	highway;
143.11 	(iii) ordinary high water levels of public waters;
143.12 	(iv) bluffs;
143.13 	(v) designated trout streams, Class 2A water as designated in the rules of the 
143.14 	Pollution Control Agency, or any perennially flowing tributary of a designated trout 
143.15 	stream or Class 2A water;
143.16 	(vi) calcareous fens;
143.17 	(vii) wellhead protection areas as defined in section 103I.005;
143.18 	(viii) critical natural habitat acquired by the commissioner of natural resources 
143.19 	under section 84.944; and
143.20 	(ix) a natural resource easement paid wholly or in part by public funds;
143.21 	(2) standards for hours of operation;
143.22 	(3) groundwater and surface water quality and quantity monitoring and mitigation 
143.23 	plan requirements, including:
143.24 	(i) applicable groundwater and surface water appropriation permit requirements;
143.25 	(ii) well sealing requirements;
143.26 	(iii) annual submission of monitoring well data; and
143.27 	(iv) storm water runoff rate limits not to exceed two-, ten-, and 100-year storm events;
143.28 	(4) air monitoring and data submission requirements;
143.29 	(5) dust control requirements;
143.30 	(6) noise testing and mitigation plan requirements;
143.31 	(7) blast monitoring plan requirements;
143.32 	(8) lighting requirements;
143.33 	(9) inspection requirements;
143.34 	(10) containment requirements for silica sand in temporary storage to protect air 
143.35 	and water quality;
143.36 	(11) containment requirements for chemicals used in processing;
144.1 	(12) financial assurance requirements; 
144.2 	(13) road and bridge impacts and requirements; and
144.3 	(14) reclamation plan requirements as required under the rules adopted by the 
144.4 	commissioner of natural resources.
144.5 		Subd. 3.Silica sand technical assistance team. By October 1, 2013, the 
144.6 	Environmental Quality Board shall assemble a silica sand technical assistance team 
144.7 	to provide local units of government, at their request, with assistance with ordinance 
144.8 	development, zoning, environmental review and permitting, monitoring, or other issues 
144.9 	arising from silica sand mining and processing operations. The technical assistance team 
144.10 	shall be comprised of up to seven members, and shall be chosen from the following 
144.11 	entities: the Department of Natural Resources, the Pollution Control Agency, the Board of 
144.12 	Water and Soil Resources, the Department of Health, the Department of Transportation, 
144.13 	the University of Minnesota, and the Minnesota State Colleges and Universities. A 
144.14 	majority of the members must be from a state agency and have expertise in one or more of 
144.15 	the following areas: silica sand mining, hydrology, air quality, water quality, land use, or 
144.16 	other areas related to silica sand mining.
144.17 		Subd. 4.Consideration of technical assistance team recommendations. (a) When 
144.18 	the technical assistance team, at the request of the local unit of government, assembles 
144.19 	findings or makes a recommendation related to a proposed silica sand project for the 
144.20 	protection of human health and the environment, a local government unit must consider 
144.21 	the findings or recommendations of the technical assistance team in its approval or denial 
144.22 	of a silica sand project. If the local government unit does not agree with the technical 
144.23 	assistance team's findings and recommendations, the detailed reasons for the disagreement 
144.24 	must be part of the local government unit's record of decision.
144.25 	(b) Silica sand project proposers must cooperate in providing local government unit 
144.26 	staff, and members of the technical assistance team with information regarding the project.
144.27 	(c) When a local unit of government requests assistance from the silica sand 
144.28 	technical assistance team for environmental review or permitting of a silica sand project 
144.29 	the local unit of government may assess the project proposer for reasonable costs of the 
144.30 	assistance and use the funds received to reimburse the entity providing that assistance.

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

144.32 	Sec. 103. [116C.991] TECHNICAL ASSISTANCE, ORDINANCE, AND PERMIT 
144.33 	LIBRARY.
144.34 	By October 1, 2013, the Environmental Quality Board, in consultation with local 
144.35 	units of government, shall create and maintain a library on local government ordinances 
145.1 	and local government permits that have been approved for regulation of silica sand 
145.2 	projects for reference by local governments.

145.3 	Sec. 104. Minnesota Statutes 2012, section 116D.04, is amended by adding a 
145.4 	subdivision to read:
145.5 		Subd. 16.Groundwater; environmental assessment worksheets. When an 
145.6 	environmental assessment worksheet is required for a proposed action that has the 
145.7 	potential to require a groundwater appropriation permit from the commissioner of natural 
145.8 	resources, the board shall require that the environmental assessment worksheet include an 
145.9 	assessment of the water resources available for appropriation.

145.10 	Sec. 105. Minnesota Statutes 2012, section 168.1296, subdivision 1, is amended to read:
145.11 		Subdivision 1.General requirements and procedures. (a) The commissioner shall 
145.12 	issue critical habitat plates to an applicant who:
145.13 	(1) is a registered owner of a passenger automobile as defined in section 168.002, 
145.14 	subdivision 24, or recreational vehicle as defined in section 168.002, subdivision 27;
145.15 	(2) pays a fee of $10 to cover the costs of handling and manufacturing the plates;
145.16 	(3) pays the registration tax required under section 168.013;
145.17 	(4) pays the fees required under this chapter;
145.18 	(5) contributes a minimum of $30 $40 annually to the Minnesota critical habitat 
145.19 	private sector matching account established in section 84.943; and
145.20 	(6) complies with this chapter and rules governing registration of motor vehicles 
145.21 	and licensing of drivers.
145.22 	(b) The critical habitat plate application must indicate that the annual contribution 
145.23 	specified under paragraph (a), clause (5), is a minimum contribution to receive the plate 
145.24 	and that the applicant may make an additional contribution to the account.
145.25 	(c) Owners of recreational vehicles under paragraph (a), clause (1), are eligible 
145.26 	only for special critical habitat license plates for which the designs are selected under 
145.27 	subdivision 2, on or after January 1, 2006.
145.28 	(d) Special critical habitat license plates, the designs for which are selected under 
145.29 	subdivision 2, on or after January 1, 2006, may be personalized according to section 
145.30 	168.12, subdivision 2a.

145.31 	Sec. 106. Minnesota Statutes 2012, section 473.846, is amended to read:
145.32 	473.846 REPORTS REPORT TO LEGISLATURE.
146.1 	The agency shall submit to the senate and house of representatives committees 
146.2 	having jurisdiction over environment and natural resources separate reports a report
146.3 	 describing the activities for which money for landfill abatement has been spent under 
146.4 	sections section473.844and 473.845. The report for section 473.844 expenditures shall be 
146.5 	included in the report required by section 115A.411, and shall include recommendations 
146.6 	on the future management and use of the metropolitan landfill abatement account. By 
146.7 	December 31 of each year, the commissioner shall submit the report for section 473.845
146.8 	 on contingency action trust fund activities.

146.9 	Sec. 107. Laws 2012, chapter 249, section 11, is amended to read:
146.10 	Sec. 11. COSTS OF SCHOOL TRUST LANDS DIRECTOR AND 
146.11 	LEGISLATIVE PERMANENT SCHOOL FUND COMMISSION.
 146.12 	(a) The costs of the school trust lands director, including the costs of hiring staff, 
146.13 	and the Legislative Permanent School Fund Commission for fiscal years 2014 and 2015 
146.14 	shall be from the state forest development account under Minnesota Statutes, section 
146.15 	16A.125, and from the minerals management account under Minnesota Statutes, section 
146.16 	93.2236, as appropriated by the legislature.
146.17 	(b) The school trust lands director and the Legislative Permanent School Fund 
146.18 	Commission shall submit to the 2014 legislature a proposal to fund the operational costs 
146.19 	of the Legislative Permanent School Fund Commission and school trust lands director 
146.20 	and staff with a cost certification method using revenues generated by the permanent 
146.21 	school fund lands.

146.22 	EFFECTIVE DATE. This section is effective July 1, 2013.

146.23 	Sec. 108. NORTH MISSISSIPPI REGIONAL PARK.
 146.24 	(a) The boundaries of the North Mississippi Regional Park are extended to include 
146.25 	the approximately 20.82 acres of land adjacent to the existing park known as Webber Park 
146.26 	and that part of Shingle Creek that flows through Webber Park and continues through 
146.27 	North Mississippi Regional Park into the Mississippi River.
146.28 	(b) Funds appropriated for North Mississippi Regional Park may be expended to 
146.29 	provide for visitor amenities, including construction of a natural filtration swimming 
146.30 	pool and a building for park users.

146.31 	EFFECTIVE DATE. This section is effective the day after the governing body of 
146.32 	the Minneapolis Park and Recreation Board and its chief clerical officer timely complete 
146.33 	their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

147.1 	Sec. 109. WASTEWATER TREATMENT SYSTEMS; BENEFICIAL USE.
 147.2 	The Pollution Control Agency shall apply the following criteria to wastewater 
147.3 	treatment system projects:
147.4 	(1) 30 points shall be assigned if a project will result in an agency approved 
147.5 	beneficial use of treated wastewater to reduce or replace an existing or proposed use of 
147.6 	surface water or ground water, not including land discharge; and
147.7 	(2) 30 points shall be assigned if a project will result in the beneficial use of treated 
147.8 	wastewater to reduce or replace an existing or proposed use of surface water or ground 
147.9 	water, not including land discharge.

147.10 	EFFECTIVE DATE. This section is effective July 1, 2014.

147.11 	Sec. 110. PERMIT CANCELLATION.
 147.12 	Upon written request submitted by a permit holder to the commissioner of natural 
147.13 	resources on or before June 1, 2015, the commissioner shall cancel any provision in a 
147.14 	timber sale permit sold prior to September 1, 2012, that requires the security payment for 
147.15 	or removal of all or part of the balsam fir when the permit contains at least 50 cords of 
147.16 	balsam fir. The remaining provisions of the permit remain in effect. The permit holder 
147.17 	may be required to fell or pile the balsam fir to meet management objectives.

147.18 	Sec. 111. GROUNDWATER SUSTAINABILITY RECOMMENDATIONS.
 147.19 	The commissioner of natural resources shall develop recommendations on 
147.20 	additional tools needed to fully implement the groundwater sustainability requirements 
147.21 	of Minnesota Statutes, section 103G.287, subdivisions 3 and 5. The recommendations 
147.22 	shall be submitted to the chairs of the environment and natural resources policy and 
147.23 	finance committees by January 15, 2014, and shall include draft legislative language to 
147.24 	implement the recommendations.

147.25 	Sec. 112. RULEMAKING; POSSESSION AND TRANSPORTATION OF 
147.26 	WILDLIFE.
 147.27 	The commissioner of natural resources may use the good cause exemption under 
147.28 	Minnesota Statutes, section 14.388, subdivision 1, clause (3), to adopt rules to conform 
147.29 	with the changes to Minnesota Statutes 2012, section 97A.401, subdivision 3 contained in 
147.30 	this article, and Minnesota Statutes, section 14.386, does not apply except as provided 
147.31 	under Minnesota Statutes, section 14.388.

148.1 	Sec. 113. RULEMAKING; DISPLAY OF PADDLE BOARD LICENSE 
148.2 	NUMBERS.
 148.3 	(a) The commissioner of natural resources shall amend Minnesota Rules, parts 
148.4 	6110.0200, 6110.0300, and 6110.0400, to exempt paddle boards from the requirement to 
148.5 	display license certificates and license numbers, in the same manner as other nonmotorized 
148.6 	watercraft such as canoes and kayaks.
148.7 	(b) The commissioner may use the good cause exemption under Minnesota Statutes, 
148.8 	section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota 
148.9 	Statutes, section 14.386, does not apply except as provided under Minnesota Statutes, 
148.10 	section 14.388.

148.11 	Sec. 114. RULEMAKING; INDUSTRIAL MINERALS AND NONFERROUS 
148.12 	MINERAL LEASES.
 148.13 	The commissioner of natural resources may use the good cause exemption under 
148.14 	Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend Minnesota Rules, 
148.15 	parts 6125.0100 to 6125.0700 and 6125.8000 to 6125.8700, to conform with the changes 
148.16 	to Minnesota Statutes, section 93.25, subdivision 2 contained in this article. Minnesota 
148.17 	Statutes, section 14.386, does not apply except as provided under Minnesota Statutes, 
148.18 	section 14.388.

148.19 	Sec. 115. RULEMAKING; PERMIT TO MINE.
 148.20 	The commissioner of natural resources may use the good cause exemption under 
148.21 	Minnesota Statutes, section 14.388, subdivision 1, clause (3), to amend Minnesota Rules, 
148.22 	chapter 6130, to conform with the changes to Minnesota Statutes, section 93.46 contained 
148.23 	in this article. Minnesota Statutes, section 14.386, does not apply except as provided 
148.24 	under Minnesota Statutes, section 14.388.

148.25 	Sec. 116. RULEMAKING; SILICA SAND.
 148.26 	(a) The commissioner of the Pollution Control Agency shall adopt rules pertaining 
148.27 	to the control of particulate emissions from silica sand mines. The commissioner shall 
148.28 	consider and incorporate, as appropriate to the conditions of this state, Wisconsin 
148.29 	Administrative Code NR 415, in effect as of January 1, 2012, pertaining to industrial 
148.30 	sand mines.
148.31 	(b) The commissioner of natural resources shall adopt rules pertaining to the 
148.32 	reclamation of silica sand mines. The commissioner shall consider and incorporate, as 
149.1 	appropriate to the conditions of this state, Wisconsin Administrative Code NR 135, in 
149.2 	effect as of January 1, 2012, pertaining to reclamation of industrial sand mines.
149.3 	(c) By January 1, 2014, the Department of Health shall adopt an air quality health 
149.4 	advisory for silica sand.

149.5 	Sec. 117. RULEMAKING; FUGITIVE EMISSIONS.
 149.6 	(a) The commissioner of the Pollution Control Agency shall amend Minnesota 
149.7 	Rules, part 7005.0100, subpart 35a, to read:
149.8 	""Potential emissions" or "potential to emit" means the maximum capacity while 
149.9 	operating at the maximum hours of operation of an emissions unit, emission facility, or 
149.10 	stationary source to emit a pollutant under its physical and operational design. Any physical 
149.11 	or operational limitation on the capacity of the stationary source to emit a pollutant, 
149.12 	including air pollution control equipment and restriction on hours of operation or on the 
149.13 	type or amount of material combusted, stored, or processed, must be treated as part of its 
149.14 	design if the limitation or the effect it would have on emissions is federally enforceable.
149.15 	Secondary emissions must not be counted in determining the potential to emit of 
149.16 	an emissions unit, emission facility, or stationary source. Fugitive emissions shall not be 
149.17 	counted when determining potential to emit, unless required under Minnesota Rules, part 
149.18 	7007.0200, subpart 2, item B, or applicable federal regulation."
149.19 	(b) The commissioner may use the good cause exemption under Minnesota Statutes, 
149.20 	section 14.388, subdivision 1, clause (3), to adopt rules under this section, and Minnesota 
149.21 	Statutes, section 14.386, does not apply, except as provided under Minnesota Statutes, 
149.22 	section 14.388.

149.23 	Sec. 118.  REPEALER.
 149.24 	Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2; and 
149.25 	103G.265, subdivision 2a, and Minnesota Rules, parts 7021.0010, subparts 1, 2, 4, and 
149.26 	5; 7021.0020; 7021.0030; 7021.0040; 7021.0050, subpart 5; 9210.0300; 9210.0310; 
149.27 	9210.0320; 9210.0330; 9210.0340; 9210.0350; 9210.0360; 9210.0370; 9210.0380; and 
149.28 	9220.0530, subpart 6, are repealed.

149.29 	ARTICLE 5
149.30 	SANITARY DISTRICTS

149.31 	Section 1. Minnesota Statutes 2012, section 275.066, is amended to read:
149.32 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
150.1 	For the purposes of property taxation and property tax state aids, the term "special 
150.2 	taxing districts" includes the following entities:
150.3 	(1) watershed districts under chapter 103D;
150.4 	(2) sanitary districts under sections 115.18 to 115.37 442A.01 to 442A.29;
150.5 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
150.6 	(4) regional public library districts under section 134.201;
150.7 	(5) park districts under chapter 398;
150.8 	(6) regional railroad authorities under chapter 398A;
150.9 	(7) hospital districts under sections 447.31 to 447.38;
150.10 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
150.11 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
150.12 	(10) regional development commissions under sections 462.381 to 462.398;
150.13 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
150.14 	(12) port authorities under sections 469.048 to 469.068;
150.15 	(13) economic development authorities under sections 469.090 to 469.1081;
150.16 	(14) Metropolitan Council under sections 473.123 to 473.549;
150.17 	(15) Metropolitan Airports Commission under sections 473.601 to 473.680;
150.18 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
150.19 	(17) Morrison County Rural Development Financing Authority under Laws 1982, 
150.20 	chapter 437, section 1;
150.21 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
150.22 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, 
150.23 	sections 1 to 6;
150.24 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 
150.25 	5, section 39;
150.26 	(21) Middle Mississippi River Watershed Management Organization under sections 
150.27 	103B.211 and 103B.241;
150.28 	(22) emergency medical services special taxing districts under section 144F.01;
150.29 	(23) a county levying under the authority of section 103B.241, 103B.245, or 
150.30 	103B.251;
150.31 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
150.32 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
150.33 	(25) an airport authority created under section 360.0426; and
150.34 	(26) any other political subdivision of the state of Minnesota, excluding counties, 
150.35 	school districts, cities, and towns, that has the power to adopt and certify a property tax 
150.36 	levy to the county auditor, as determined by the commissioner of revenue.

151.1 	Sec. 2. [442A.01] DEFINITIONS.
151.2 		Subdivision 1.Applicability. For the purposes of this chapter, the terms defined 
151.3 	in this section have the meanings given.
151.4 		Subd. 2.Chief administrative law judge. "Chief administrative law judge" means 
151.5 	the chief administrative law judge of the Office of Administrative Hearings or the delegate 
151.6 	of the chief administrative law judge under section 14.48.
151.7 		Subd. 3.District. "District" means a sanitary district created under this chapter or 
151.8 	under Minnesota Statutes 2012, sections 115.18 to 115.37.
151.9 		Subd. 4.Municipality. "Municipality" means a city, however organized.
151.10 		Subd. 5.Property owner. "Property owner" means the fee owner of land, or the 
151.11 	beneficial owner of land whose interest is primarily one of possession and enjoyment. 
151.12 	Property owner includes, but is not limited to, vendees under a contract for deed and 
151.13 	mortgagors. Any reference to a percentage of property owners means in number.
151.14 		Subd. 6.Related governing body. "Related governing body" means the governing 
151.15 	body of a related governmental subdivision and, in the case of an organized town, means 
151.16 	the town board.
151.17 		Subd. 7.Related governmental subdivision. "Related governmental subdivision" 
151.18 	means a municipality or organized town wherein there is a territorial unit of a district or, in 
151.19 	the case of an unorganized area, the county.
151.20 		Subd. 8.Territorial unit. "Territorial unit" means all that part of a district situated 
151.21 	within a single municipality, within a single organized town outside of a municipality, or, 
151.22 	in the case of an unorganized area, within a single county.

151.23 	Sec. 3. [442A.015] APPLICABILITY.
151.24 	All new sanitary district formations proposed and all sanitary districts previously 
151.25 	formed under Minnesota Statutes 2012, sections 115.18 to 115.37, must comply with this 
151.26 	chapter, including annexations to, detachments from, and resolutions of sanitary districts 
151.27 	previously formed under Minnesota Statutes 2012, sections 115.18 to 115.37.

151.28 	Sec. 4. [442A.02] SANITARY DISTRICTS; PROCEDURES AND AUTHORITY.
151.29 		Subdivision 1.Duty of chief administrative law judge. The chief administrative 
151.30 	law judge shall conduct proceedings, make determinations, and issue orders for the 
151.31 	creation of a sanitary district formed under this chapter or the annexation, detachment, 
151.32 	or dissolution of a sanitary district previously formed under Minnesota Statutes 2012, 
151.33 	sections 115.18 to 115.37.
152.1 		Subd. 2.Consolidation of proceedings. The chief administrative law judge may 
152.2 	order the consolidation of separate proceedings in the interest of economy and expedience.
152.3 		Subd. 3.Contracts, consultants. The chief administrative law judge may contract 
152.4 	with regional, state, county, or local planning commissions and hire expert consultants to 
152.5 	provide specialized information and assistance.
152.6 		Subd. 4.Powers of conductor of proceedings. Any person conducting a 
152.7 	proceeding under this chapter may administer oaths and affirmations; receive testimony 
152.8 	of witnesses, and the production of papers, books, and documents; examine witnesses; 
152.9 	and receive and report evidence. Upon the written request of a presiding administrative 
152.10 	law judge or a party, the chief administrative law judge may issue a subpoena for the 
152.11 	attendance of a witness or the production of books, papers, records, or other documents 
152.12 	material to any proceeding under this chapter. The subpoena is enforceable through the 
152.13 	district court in the district in which the subpoena is issued.
152.14 		Subd. 5.Rulemaking authority. The chief administrative law judge may adopt 
152.15 	rules that are reasonably necessary to carry out the duties and powers imposed upon the 
152.16 	chief administrative law judge under this chapter. The chief administrative law judge may 
152.17 	initially adopt rules according to section 14.386. Notwithstanding section 16A.1283, the 
152.18 	chief administrative law judge may adopt rules establishing fees.
152.19 		Subd. 6.Schedule of filing fees. The chief administrative law judge may prescribe 
152.20 	by rule a schedule of filing fees for any petitions filed under this chapter.
152.21 		Subd. 7.Request for hearing transcripts; costs. Any party may request the chief 
152.22 	administrative law judge to cause a transcript of the hearing to be made. Any party 
152.23 	requesting a copy of the transcript is responsible for its costs.
152.24 		Subd. 8.Compelled meetings; report. (a) In any proceeding under this chapter, 
152.25 	the chief administrative law judge or conductor of the proceeding may at any time in the 
152.26 	process require representatives from any petitioner, property owner, or involved city, town, 
152.27 	county, political subdivision, or other governmental entity to meet together to discuss 
152.28 	resolution of issues raised by the petition or order that confers jurisdiction on the chief 
152.29 	administrative law judge and other issues of mutual concern. The chief administrative 
152.30 	law judge or conductor of the proceeding may determine which entities are required 
152.31 	to participate in these discussions. The chief administrative law judge or conductor of 
152.32 	the proceeding may require that the parties meet at least three times during a 60-day 
152.33 	period. The parties shall designate a person to report to the chief administrative law 
152.34 	judge or conductor of the proceeding on the results of the meetings immediately after the 
152.35 	last meeting. The parties may be granted additional time at the discretion of the chief 
152.36 	administrative law judge or conductor of the proceedings.
153.1 	(b) Any proposed resolution or settlement of contested issues that results in a 
153.2 	sanitary district formation, annexation, detachment, or dissolution; places conditions on 
153.3 	any future sanitary district formation, annexation, detachment, or dissolution; or results in 
153.4 	the withdrawal of an objection to a pending proceeding or the withdrawal of a pending 
153.5 	proceeding must be filed with the chief administrative law judge and is subject to the 
153.6 	applicable procedures and statutory criteria of this chapter.
153.7 		Subd. 9.Permanent official record. The chief administrative law judge shall 
153.8 	provide information about sanitary district creations, annexations, detachments, and 
153.9 	dissolutions to the Minnesota Pollution Control Agency. The Minnesota Pollution Control 
153.10 	Agency is responsible for maintaining the official record, including all documentation 
153.11 	related to the processes.
153.12 		Subd. 10.Shared program costs and fee revenue. The chief administrative 
153.13 	law judge and the Minnesota Pollution Control Agency shall agree on an amount to be 
153.14 	transferred from the Minnesota Pollution Control Agency to the chief administrative law 
153.15 	judge to pay for administration of this chapter, including publication and notification costs. 
153.16 	Sanitary district fees collected by the chief administrative law judge shall be deposited in 
153.17 	the environmental fund.

153.18 	EFFECTIVE DATE. Subdivision 5 is effective the day following final enactment.

153.19 	Sec. 5. [442A.03] FILING OF MAPS IN SANITARY DISTRICT PROCEEDINGS.
153.20 	Any party initiating a sanitary district proceeding that includes platted land shall file 
153.21 	with the chief administrative law judge maps which are necessary to support and identify 
153.22 	the land description. The maps shall include copies of plats.

153.23 	Sec. 6. [442A.04] SANITARY DISTRICT CREATION.
153.24 		Subdivision 1.Sanitary district creation. (a) A sanitary district may be created 
153.25 	under this chapter for any territory embracing an area or a group of two or more adjacent 
153.26 	areas, whether contiguous or separate, but not situated entirely within the limits of a 
153.27 	single municipality. The proposed sanitary district must promote the public health and 
153.28 	welfare by providing an adequate and efficient system and means of collecting, conveying, 
153.29 	pumping, treating, and disposing of domestic sewage and garbage and industrial wastes 
153.30 	within the district. When the chief administrative law judge or the Minnesota Pollution 
153.31 	Control Agency finds that there is need throughout the territory for the accomplishment 
153.32 	of these purposes; that these purposes can be effectively accomplished on an equitable 
153.33 	basis by a district if created; and that the creation and maintenance of a district will be 
153.34 	administratively feasible and in furtherance of the public health, safety, and welfare, the 
154.1 	chief administrative law judge shall make an order creating the sanitary district. A sanitary 
154.2 	district is administratively feasible under this section if the district has the financial and 
154.3 	managerial resources needed to deliver adequate and efficient sanitary sewer services 
154.4 	within the proposed district.
154.5 	(b) Notwithstanding paragraph (a), no district shall be created within 25 miles of the 
154.6 	boundary of any city of the first class without the approval of the governing body thereof 
154.7 	and the approval of the governing body of each and every municipality in the proposed 
154.8 	district by resolution filed with the chief administrative law judge.
154.9 	(c) If the chief administrative law judge and the Minnesota Pollution Control Agency 
154.10 	disagree on the need to create a sanitary district, they must determine whether not allowing 
154.11 	the sanitary district formation will have a detrimental effect on the environment. If it is 
154.12 	determined that the sanitary district formation will prevent environmental harm, the sanitary 
154.13 	district creation or connection to an existing wastewater treatment system must occur.
154.14 		Subd. 2.Proceeding to create sanitary district. (a) A proceeding for the creation 
154.15 	of a district may be initiated by a petition to the chief administrative law judge containing 
154.16 	the following:
154.17 	(1) a request for creation of the proposed district;
154.18 	(2) the name proposed for the district, to include the words "sanitary district";
154.19 	(3) a legal description of the territory of the proposed district, including justification 
154.20 	for inclusion or exclusion for all parcels;
154.21 	(4) addresses of every property owner within the proposed district boundaries as 
154.22 	provided by the county auditor, with certification from the county auditor; two sets of 
154.23 	address labels for said owners; and a list of e-mail addresses for said owners, if available;
154.24 	(5) a statement showing the existence in the territory of the conditions requisite for 
154.25 	creation of a district as prescribed in subdivision 1;
154.26 	(6) a statement of the territorial units represented by and the qualifications of the 
154.27 	respective signers; and
154.28 	(7) the post office address of each signer, given under the signer's signature.
154.29 	A petition may consist of separate writings of like effect, each signed by one or more 
154.30 	qualified persons, and all such writings, when filed, shall be considered together as a 
154.31 	single petition.
154.32 	(b) Petitioners must conduct and pay for a public meeting to inform citizens of the 
154.33 	proposed creation of the district. At the meeting, information must be provided, including 
154.34 	a description of the district's proposed structure, bylaws, territory, ordinances, budget, and 
154.35 	charges and a description of the territory of the proposed district, including justification 
154.36 	for inclusion or exclusion for all parcels. Notice of the meeting must be published for two 
155.1 	successive weeks in a qualified newspaper, as defined under chapter 331A, published 
155.2 	within the territory of the proposed district or, if there is no qualified newspaper published 
155.3 	within the territory, in a qualified newspaper of general circulation in the territory, and 
155.4 	must be posted for two weeks in each territorial unit of the proposed district and on the 
155.5 	Web site of the proposed district, if one exists. Notice of the meeting must be mailed or 
155.6 	e-mailed at least three weeks prior to the meeting to all property tax billing addresses for 
155.7 	all parcels included in the proposed district. The following must be submitted to the chief 
155.8 	administrative law judge with the petition:
155.9 	(1) a record of the meeting, including copies of all information provided at the 
155.10 	meeting;
155.11 	(2) a copy of the mailing list provided by the county auditor and used to notify 
155.12 	property owners of the meeting;
155.13 	(3) a copy of the e-mail list used to notify property owners of the meeting;
155.14 	(4) the printer's affidavit of publication of public meeting notice;
155.15 	(5) an affidavit of posting the public meeting notice with information on dates and 
155.16 	locations of posting; and
155.17 	(6) the minutes or other record of the public meeting documenting that the following 
155.18 	topics were discussed: printer's affidavit of publication of each resolution, with a copy 
155.19 	of the resolution from the newspaper attached; and the affidavit of resolution posting 
155.20 	on the town or proposed district Web site.
155.21 	(c) Every petition must be signed as follows:
155.22 	(1) for each municipality wherein there is a territorial unit of the proposed district, 
155.23 	by an authorized officer pursuant to a resolution of the municipal governing body;
155.24 	(2) for each organized town wherein there is a territorial unit of the proposed district, 
155.25 	by an authorized officer pursuant to a resolution of the town board;
155.26 	(3) for each county wherein there is a territorial unit of the proposed district consisting 
155.27 	of an unorganized area, by an authorized officer pursuant to a resolution of the county 
155.28 	board or by at least 20 percent of the voters residing and owning land within the unit.
155.29 	(d) Each resolution must be published in the official newspaper of the governing 
155.30 	body adopting it and becomes effective 40 days after publication, unless within said 
155.31 	period there shall be filed with the governing body a petition signed by qualified electors 
155.32 	of a territorial unit of the proposed district, equal in number to five percent of the number 
155.33 	of electors voting at the last preceding election of the governing body, requesting a 
155.34 	referendum on the resolution, in which case the resolution may not become effective until 
155.35 	approved by a majority of the qualified electors voting at a regular election or special 
155.36 	election that the governing body may call. The notice of an election and the ballot to be 
156.1 	used must contain the text of the resolution followed by the question: "Shall the above 
156.2 	resolution be approved?"
156.3 	(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to 
156.4 	the signer's landowner status as shown by the county auditor's tax assessment records, 
156.5 	certified by the auditor, shall be attached to or endorsed upon the petition.
156.6 	(f) At any time before publication of the public notice required in subdivision 3, 
156.7 	additional signatures may be added to the petition or amendments of the petition may 
156.8 	be made to correct or remedy any error or defect in signature or otherwise except a 
156.9 	material error or defect in the description of the territory of the proposed district. If the 
156.10 	qualifications of any signer of a petition are challenged, the chief administrative law judge 
156.11 	shall determine the challenge forthwith on the allegations of the petition, the county 
156.12 	auditor's certificate of land ownership, and such other evidence as may be received.
156.13 		Subd. 3.Notice of intent to create sanitary district. (a) Upon receipt of a petition 
156.14 	and the record of the public meeting required under subdivision 2, the chief administrative 
156.15 	law judge shall publish a notice of intent to create the proposed sanitary district in the State 
156.16 	Register and mail or e-mail information of that publication to each property owner in the 
156.17 	affected territory at the owner's address as given by the county auditor. The information 
156.18 	must state the date that the notice will appear in the State Register and give the Web site 
156.19 	location for the State Register. The notice must:
156.20 	(1) describe the petition for creation of the district;
156.21 	(2) describe the territory affected by the petition;
156.22 	(3) allow 30 days for submission of written comments on the petition;
156.23 	(4) state that a person who objects to the petition may submit a written request for 
156.24 	hearing to the chief administrative law judge within 30 days of the publication of the 
156.25 	notice in the State Register; and
156.26 	(5) state that if a timely request for hearing is not received, the chief administrative 
156.27 	law judge may make a decision on the petition.
156.28 	(b) If 50 or more individual timely requests for hearing are received, the chief 
156.29 	administrative law judge must hold a hearing on the petition according to the contested 
156.30 	case provisions of chapter 14. The sanitary district proposers are responsible for paying all 
156.31 	costs involved in publicizing and holding a hearing on the petition.
156.32 		Subd. 4.Hearing time, place. If a hearing is required pursuant to subdivision 3, the 
156.33 	chief administrative law judge shall designate a time and place for a hearing according 
156.34 	to section 442A.13.
156.35 		Subd. 5.Relevant factors. (a) In arriving at a decision, the chief administrative law 
156.36 	judge shall consider the following factors:
157.1 	(1) administrative feasibility under subdivision 1, paragraph (a);
157.2 	(2) public health, safety, and welfare impacts;
157.3 	(3) alternatives for managing the public health impacts;
157.4 	(4) equities of the petition proposal;
157.5 	(5) contours of the petition proposal; and
157.6 	(6) public notification of and interaction on the petition proposal.
157.7 	(b) Based on the factors in paragraph (a), the chief administrative law judge may 
157.8 	order the sanitary district creation on finding that:
157.9 	(1) the proposed district is administratively feasible;
157.10 	(2) the proposed district provides a long-term, equitable solution to pollution 
157.11 	problems affecting public health, safety, and welfare;
157.12 	(3) property owners within the proposed district were provided notice of the 
157.13 	proposed district and opportunity to comment on the petition proposal; and
157.14 	(4) the petition complied with the requirements of all applicable statutes and rules 
157.15 	pertaining to sanitary district creation.
157.16 	(c) The chief administrative law judge may alter the boundaries of the proposed 
157.17 	sanitary district by increasing or decreasing the area to be included or may exclude 
157.18 	property that may be better served by another unit of government. The chief administrative 
157.19 	law judge may also alter the boundaries of the proposed district so as to follow visible, 
157.20 	clearly recognizable physical features for municipal boundaries.
157.21 	(d) The chief administrative law judge may deny sanitary district creation if the area, 
157.22 	or a part thereof, would be better served by an alternative method.
157.23 	(e) In all cases, the chief administrative law judge shall set forth the factors that are 
157.24 	the basis for the decision.
157.25 		Subd. 6.Findings; order. After the public notice period or the public hearing, if 
157.26 	required under subdivision 3, and based on the petition, any public comments received, 
157.27 	and, if a hearing was held, the hearing record, the chief administrative law judge shall 
157.28 	make findings of fact and conclusions determining whether the conditions requisite for the 
157.29 	creation of a district exist in the territory described in the petition. If the chief administrative 
157.30 	law judge finds that the conditions exist, the judge may make an order creating a district 
157.31 	for the territory described in that petition under the name proposed in the petition or such 
157.32 	other name, including the words "sanitary district," as the judge deems appropriate.
157.33 		Subd. 7.Denial of petition. If the chief administrative law judge, after conclusion 
157.34 	of the public notice period or holding a hearing, if required, determines that the creation of 
157.35 	a district in the territory described in the petition is not warranted, the judge shall make 
157.36 	an order denying the petition. The chief administrative law judge shall give notice of the 
158.1 	denial by mail or e-mail to each signer of the petition. No petition for the creation of a 
158.2 	district consisting of the same territory shall be entertained within a year after the date of 
158.3 	an order under this subdivision. Nothing in this subdivision precludes action on a petition 
158.4 	for the creation of a district embracing part of the territory with or without other territory.
158.5 		Subd. 8.Notice of order creating sanitary district. The chief administrative law 
158.6 	judge shall publish a notice in the State Register of the final order creating a sanitary 
158.7 	district, referring to the date of the order and describing the territory of the district, and 
158.8 	shall mail or e-mail information of the publication to each property owner in the affected 
158.9 	territory at the owner's address as given by the county auditor. The information must state 
158.10 	the date that the notice will appear in the State Register and give the Web site location 
158.11 	for the State Register. The notice must:
158.12 	(1) describe the petition for creation of the district;
158.13 	(2) describe the territory affected by the petition; and
158.14 	(3) state that a certified copy of the order shall be delivered to the secretary of state 
158.15 	for filing ten days after public notice of the order in the State Register.
158.16 		Subd. 9.Filing. Ten days after public notice of the order in the State Register, the 
158.17 	chief administrative law judge shall deliver a certified copy of the order to the secretary 
158.18 	of state for filing. Thereupon, the creation of the district is deemed complete, and it 
158.19 	shall be conclusively presumed that all requirements of law relating thereto have been 
158.20 	complied with. The chief administrative law judge shall also transmit a certified copy of 
158.21 	the order for filing to the county auditor of each county and the clerk or recorder of each 
158.22 	municipality and organized town wherein any part of the territory of the district is situated 
158.23 	and to the secretary of the district board when elected.

158.24 	Sec. 7. [442A.05] SANITARY DISTRICT ANNEXATION.
158.25 		Subdivision 1.Annexation. (a) A sanitary district annexation may occur under 
158.26 	this chapter for any area adjacent to an existing district upon a petition to the chief 
158.27 	administrative law judge stating the grounds therefor as provided in this section.
158.28 	(b) The proposed annexation area must embrace an area or a group of two or more 
158.29 	adjacent areas, whether contiguous or separate, but not situated entirely within the limits 
158.30 	of a single municipality. The proposed annexation must promote public health and 
158.31 	welfare by providing an adequate and efficient system and means of collecting, conveying, 
158.32 	pumping, treating, and disposing of domestic sewage and garbage and industrial wastes 
158.33 	within the district. When the chief administrative law judge or the Minnesota Pollution 
158.34 	Control Agency finds that there is need throughout the territory for the accomplishment of 
158.35 	these purposes, that these purposes can be effectively accomplished on an equitable basis 
159.1 	by annexation to a district, and that the creation and maintenance of such annexation will 
159.2 	be administratively feasible and in furtherance of the public health, safety, and welfare, 
159.3 	the chief administrative law judge shall make an order for sanitary district annexation. 
159.4 	A sanitary district is administratively feasible under this section if the district has the 
159.5 	financial and managerial resources needed to deliver adequate and efficient sanitary sewer 
159.6 	services within the proposed district.
159.7 	(c) Notwithstanding paragraph (b), no annexation to a district shall be approved 
159.8 	within 25 miles of the boundary of any city of the first class without the approval 
159.9 	of the governing body thereof and the approval of the governing body of each and 
159.10 	every municipality in the proposed annexation area by resolution filed with the chief 
159.11 	administrative law judge.
159.12 	(d) If the chief administrative law judge and the Minnesota Pollution Control Agency 
159.13 	disagree on the need for a sanitary district annexation, they must determine whether not 
159.14 	allowing the sanitary district annexation will have a detrimental effect on the environment. 
159.15 	If it is determined that the sanitary district annexation will prevent environmental harm, 
159.16 	the sanitary district annexation or connection to an existing wastewater treatment system 
159.17 	must occur.
159.18 		Subd. 2.Proceeding for annexation. (a) A proceeding for sanitary district 
159.19 	annexation may be initiated by a petition to the chief administrative law judge containing 
159.20 	the following:
159.21 	(1) a request for proposed annexation to a sanitary district;
159.22 	(2) a legal description of the territory of the proposed annexation, including 
159.23 	justification for inclusion or exclusion for all parcels;
159.24 	(3) addresses of every property owner within the existing sanitary district and 
159.25 	proposed annexation area boundaries as provided by the county auditor, with certification 
159.26 	from the county auditor; two sets of address labels for said owners; and a list of e-mail 
159.27 	addresses for said owners, if available;
159.28 	(4) a statement showing the existence in such territory of the conditions requisite 
159.29 	for annexation to a district as prescribed in subdivision 1;
159.30 	(5) a statement of the territorial units represented by and qualifications of the 
159.31 	respective signers; and
159.32 	(6) the post office address of each signer, given under the signer's signature.
159.33 	A petition may consist of separate writings of like effect, each signed by one or more 
159.34 	qualified persons, and all such writings, when filed, shall be considered together as a 
159.35 	single petition.
160.1 	(b) Petitioners must conduct and pay for a public meeting to inform citizens of the 
160.2 	proposed annexation to a sanitary district. At the meeting, information must be provided, 
160.3 	including a description of the existing sanitary district's structure, bylaws, territory, 
160.4 	ordinances, budget, and charges; a description of the existing sanitary district's territory; 
160.5 	and a description of the territory of the proposed annexation area, including justification 
160.6 	for inclusion or exclusion for all parcels for the annexation area. Notice of the meeting 
160.7 	must be published for two successive weeks in a qualified newspaper, as defined under 
160.8 	chapter 331A, published within the territories of the existing sanitary district and proposed 
160.9 	annexation area or, if there is no qualified newspaper published within those territories, in 
160.10 	a qualified newspaper of general circulation in the territories, and must be posted for two 
160.11 	weeks in each territorial unit of the existing sanitary district and proposed annexation area 
160.12 	and on the Web site of the existing sanitary district, if one exists. Notice of the meeting 
160.13 	must be mailed or e-mailed at least three weeks prior to the meeting to all property tax 
160.14 	billing addresses for all parcels included in the existing sanitary district and proposed 
160.15 	annexation area. The following must be submitted to the chief administrative law judge 
160.16 	with the petition:
160.17 	(1) a record of the meeting, including copies of all information provided at the 
160.18 	meeting;
160.19 	(2) a copy of the mailing list provided by the county auditor and used to notify 
160.20 	property owners of the meeting;
160.21 	(3) a copy of the e-mail list used to notify property owners of the meeting;
160.22 	(4) the printer's affidavit of publication of the public meeting notice;
160.23 	(5) an affidavit of posting the public meeting notice with information on dates and 
160.24 	locations of posting; and
160.25 	(6) the minutes or other record of the public meeting documenting that the following 
160.26 	topics were discussed: printer's affidavit of publication of each resolution, with copy 
160.27 	of resolution from newspaper attached; and affidavit of resolution posting on town or 
160.28 	existing sanitary district Web site.
160.29 	(c) Every petition must be signed as follows:
160.30 	(1) by an authorized officer of the existing sanitary district pursuant to a resolution 
160.31 	of the board;
160.32 	(2) for each municipality wherein there is a territorial unit of the proposed annexation 
160.33 	area, by an authorized officer pursuant to a resolution of the municipal governing body;
160.34 	(3) for each organized town wherein there is a territorial unit of the proposed 
160.35 	annexation area, by an authorized officer pursuant to a resolution of the town board; and
161.1 	(4) for each county wherein there is a territorial unit of the proposed annexation area 
161.2 	consisting of an unorganized area, by an authorized officer pursuant to a resolution of the 
161.3 	county board or by at least 20 percent of the voters residing and owning land within the unit.
161.4 	(d) Each resolution must be published in the official newspaper of the governing 
161.5 	body adopting it and becomes effective 40 days after publication, unless within said 
161.6 	period there shall be filed with the governing body a petition signed by qualified electors 
161.7 	of a territorial unit of the proposed annexation area, equal in number to five percent of the 
161.8 	number of electors voting at the last preceding election of the governing body, requesting 
161.9 	a referendum on the resolution, in which case the resolution may not become effective 
161.10 	until approved by a majority of the qualified electors voting at a regular election or special 
161.11 	election that the governing body may call. The notice of an election and the ballot to be 
161.12 	used must contain the text of the resolution followed by the question: "Shall the above 
161.13 	resolution be approved?"
161.14 	(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to 
161.15 	the signer's landowner status as shown by the county auditor's tax assessment records, 
161.16 	certified by the auditor, shall be attached to or endorsed upon the petition.
161.17 	(f) At any time before publication of the public notice required in subdivision 4, 
161.18 	additional signatures may be added to the petition or amendments of the petition may be 
161.19 	made to correct or remedy any error or defect in signature or otherwise except a material 
161.20 	error or defect in the description of the territory of the proposed annexation area. If the 
161.21 	qualifications of any signer of a petition are challenged, the chief administrative law judge 
161.22 	shall determine the challenge forthwith on the allegations of the petition, the county 
161.23 	auditor's certificate of land ownership, and such other evidence as may be received.
161.24 		Subd. 3.Joint petition. Different areas may be annexed to a district in a single 
161.25 	proceeding upon a joint petition therefor and upon compliance with the provisions of 
161.26 	subdivisions 1 and 2 with respect to the area affected so far as applicable.
161.27 		Subd. 4.Notice of intent for sanitary district annexation. (a) Upon receipt 
161.28 	of a petition and the record of public meeting required under subdivision 2, the chief 
161.29 	administrative law judge shall publish a notice of intent for sanitary district annexation 
161.30 	in the State Register and mail or e-mail information of the publication to each property 
161.31 	owner in the affected territory at the owner's address as given by the county auditor. The 
161.32 	information must state the date that the notice will appear in the State Register and give 
161.33 	the Web site location for the State Register. The notice must:
161.34 	(1) describe the petition for sanitary district annexation;
161.35 	(2) describe the territory affected by the petition;
161.36 	(3) allow 30 days for submission of written comments on the petition;
162.1 	(4) state that a person who objects to the petition may submit a written request for 
162.2 	hearing to the chief administrative law judge within 30 days of the publication of the 
162.3 	notice in the State Register; and
162.4 	(5) state that if a timely request for hearing is not received, the chief administrative 
162.5 	law judge may make a decision on the petition.
162.6 	(b) If 50 or more individual timely requests for hearing are received, the chief 
162.7 	administrative law judge must hold a hearing on the petition according to the contested case 
162.8 	provisions of chapter 14. The sanitary district or annexation area proposers are responsible 
162.9 	for paying all costs involved in publicizing and holding a hearing on the petition.
162.10 		Subd. 5.Hearing time, place. If a hearing is required under subdivision 4, the 
162.11 	chief administrative law judge shall designate a time and place for a hearing according 
162.12 	to section 442A.13.
162.13 		Subd. 6.Relevant factors. (a) In arriving at a decision, the chief administrative law 
162.14 	judge shall consider the following factors:
162.15 	(1) administrative feasibility under subdivision 1, paragraph (b);
162.16 	(2) public health, safety, and welfare impacts;
162.17 	(3) alternatives for managing the public health impacts;
162.18 	(4) equities of the petition proposal;
162.19 	(5) contours of the petition proposal; and
162.20 	(6) public notification of and interaction on the petition proposal.
162.21 	(b) Based upon these factors, the chief administrative law judge may order the 
162.22 	annexation to the sanitary district on finding that:
162.23 	(1) the sanitary district is knowledgeable and experienced in delivering sanitary sewer 
162.24 	services to ratepayers and has provided quality service in a fair and cost-effective manner;
162.25 	(2) the proposed annexation provides a long-term, equitable solution to pollution 
162.26 	problems affecting public health, safety, and welfare;
162.27 	(3) property owners within the existing sanitary district and proposed annexation 
162.28 	area were provided notice of the proposed district and opportunity to comment on the 
162.29 	petition proposal; and
162.30 	(4) the petition complied with the requirements of all applicable statutes and rules 
162.31 	pertaining to sanitary district annexation.
162.32 	(c) The chief administrative law judge may alter the boundaries of the proposed 
162.33 	annexation area by increasing or decreasing the area to be included or may exclude 
162.34 	property that may be better served by another unit of government. The chief administrative 
162.35 	law judge may also alter the boundaries of the proposed annexation area so as to follow 
162.36 	visible, clearly recognizable physical features for municipal boundaries.
163.1 	(d) The chief administrative law judge may deny sanitary district annexation if the 
163.2 	area, or a part thereof, would be better served by an alternative method.
163.3 	(e) In all cases, the chief administrative law judge shall set forth the factors that are 
163.4 	the basis for the decision.
163.5 		Subd. 7.Findings; order. (a) After the public notice period or the public hearing, if 
163.6 	required under subdivision 4, and based on the petition, any public comments received, 
163.7 	and, if a hearing was held, the hearing record, the chief administrative law judge shall 
163.8 	make findings of fact and conclusions determining whether the conditions requisite for 
163.9 	the sanitary district annexation exist in the territory described in the petition. If the chief 
163.10 	administrative law judge finds that conditions exist, the judge may make an order for 
163.11 	sanitary district annexation for the territory described in the petition.
163.12 	(b) All taxable property within the annexed area shall be subject to taxation for 
163.13 	any existing bonded indebtedness or other indebtedness of the district for the cost of 
163.14 	acquisition, construction, or improvement of any disposal system or other works or 
163.15 	facilities beneficial to the annexed area to such extent as the chief administrative law judge 
163.16 	may determine to be just and equitable, to be specified in the order for annexation. The 
163.17 	proper officers shall levy further taxes on such property accordingly.
163.18 		Subd. 8.Denial of petition. If the chief administrative law judge, after conclusion 
163.19 	of the public notice period or holding a hearing, if required, determines that the sanitary 
163.20 	district annexation in the territory described in the petition is not warranted, the judge shall 
163.21 	make an order denying the petition. The chief administrative law judge shall give notice 
163.22 	of the denial by mail or e-mail to each signer of the petition. No petition for a sanitary 
163.23 	district annexation consisting of the same territory shall be entertained within a year 
163.24 	after the date of an order under this subdivision. Nothing in this subdivision precludes 
163.25 	action on a petition for a sanitary district annexation embracing part of the territory with 
163.26 	or without other territory.
163.27 		Subd. 9.Notice of order for sanitary district annexation. The chief administrative 
163.28 	law judge shall publish in the State Register a notice of the final order for sanitary district 
163.29 	annexation, referring to the date of the order and describing the territory of the annexation 
163.30 	area, and shall mail or e-mail information of the publication to each property owner in the 
163.31 	affected territory at the owner's address as given by the county auditor. The information 
163.32 	must state the date that the notice will appear in the State Register and give the Web site 
163.33 	location for the State Register. The notice must:
163.34 	(1) describe the petition for annexation to the district;
163.35 	(2) describe the territory affected by the petition; and
164.1 	(3) state that a certified copy of the order shall be delivered to the secretary of state 
164.2 	for filing ten days after public notice of the order in the State Register.
164.3 		Subd. 10.Filing. Ten days after public notice of the order in the State Register, the 
164.4 	chief administrative law judge shall deliver a certified copy of the order to the secretary 
164.5 	of state for filing. Thereupon, the sanitary district annexation is deemed complete, and it 
164.6 	shall be conclusively presumed that all requirements of law relating thereto have been 
164.7 	complied with. The chief administrative law judge shall also transmit a certified copy of 
164.8 	the order for filing to the county auditor of each county and the clerk or recorder of each 
164.9 	municipality and organized town wherein any part of the territory of the district, including 
164.10 	the newly annexed area, is situated and to the secretary of the district board.

164.11 	Sec. 8. [442A.06] SANITARY DISTRICT DETACHMENT.
164.12 		Subdivision 1.Detachment. (a) A sanitary district detachment may occur under this 
164.13 	chapter for any area within an existing district upon a petition to the chief administrative 
164.14 	law judge stating the grounds therefor as provided in this section.
164.15 	(b) The proposed detachment must not have any negative environmental impact 
164.16 	on the proposed detachment area.
164.17 	(c) If the chief administrative law judge and the Minnesota Pollution Control 
164.18 	Agency disagree on the need for a sanitary district detachment, they must determine 
164.19 	whether not allowing the sanitary district detachment will have a detrimental effect on 
164.20 	the environment. If it is determined that the sanitary district detachment will cause 
164.21 	environmental harm, the sanitary district detachment is not allowed unless the detached 
164.22 	area is immediately connected to an existing wastewater treatment system.
164.23 		Subd. 2.Proceeding for detachment. (a) A proceeding for sanitary district 
164.24 	detachment may be initiated by a petition to the chief administrative law judge containing 
164.25 	the following:
164.26 	(1) a request for proposed detachment from a sanitary district;
164.27 	(2) a statement that the requisite conditions for inclusion in a district no longer exist 
164.28 	in the proposed detachment area;
164.29 	(3) a legal description of the territory of the proposed detachment, including 
164.30 	justification for inclusion or exclusion for all parcels;
164.31 	(4) addresses of every property owner within the sanitary district and proposed 
164.32 	detachment area boundaries as provided by the county auditor, with certification from the 
164.33 	county auditor; two sets of address labels for said owners; and a list of e-mail addresses 
164.34 	for said owners, if available;
165.1 	(5) a statement of the territorial units represented by and qualifications of the 
165.2 	respective signers; and
165.3 	(6) the post office address of each signer, given under the signer's signature.
165.4 	A petition may consist of separate writings of like effect, each signed by one or more 
165.5 	qualified persons, and all such writings, when filed, shall be considered together as a 
165.6 	single petition.
165.7 	(b) Petitioners must conduct and pay for a public meeting to inform citizens of 
165.8 	the proposed detachment from a sanitary district. At the meeting, information must be 
165.9 	provided, including a description of the existing district's territory and a description of the 
165.10 	territory of the proposed detachment area, including justification for inclusion or exclusion 
165.11 	for all parcels for the detachment area. Notice of the meeting must be published for two 
165.12 	successive weeks in a qualified newspaper, as defined under chapter 331A, published 
165.13 	within the territories of the existing sanitary district and proposed detachment area or, if 
165.14 	there is no qualified newspaper published within those territories, in a qualified newspaper 
165.15 	of general circulation in the territories, and must be posted for two weeks in each territorial 
165.16 	unit of the existing sanitary district and proposed detachment area and on the Web site 
165.17 	of the existing sanitary district, if one exists. Notice of the meeting must be mailed or 
165.18 	e-mailed at least three weeks prior to the meeting to all property tax billing addresses for 
165.19 	all parcels included in the sanitary district. The following must be submitted to the chief 
165.20 	administrative law judge with the petition:
165.21 	(1) a record of the meeting, including copies of all information provided at the 
165.22 	meeting;
165.23 	(2) a copy of the mailing list provided by the county auditor and used to notify 
165.24 	property owners of the meeting;
165.25 	(3) a copy of the e-mail list used to notify property owners of the meeting;
165.26 	(4) the printer's affidavit of publication of public meeting notice;
165.27 	(5) an affidavit of posting the public meeting notice with information on dates and 
165.28 	locations of posting; and
165.29 	(6) minutes or other record of the public meeting documenting that the following 
165.30 	topics were discussed: printer's affidavit of publication of each resolution, with copy 
165.31 	of resolution from newspaper attached; and affidavit of resolution posting on town or 
165.32 	existing sanitary district Web site.
165.33 	(c) Every petition must be signed as follows:
165.34 	(1) by an authorized officer of the existing sanitary district pursuant to a resolution 
165.35 	of the board;
166.1 	(2) for each municipality wherein there is a territorial unit of the proposed detachment 
166.2 	area, by an authorized officer pursuant to a resolution of the municipal governing body;
166.3 	(3) for each organized town wherein there is a territorial unit of the proposed 
166.4 	detachment area, by an authorized officer pursuant to a resolution of the town board; and
166.5 	(4) for each county wherein there is a territorial unit of the proposed detachment area 
166.6 	consisting of an unorganized area, by an authorized officer pursuant to a resolution of the 
166.7 	county board or by at least 20 percent of the voters residing and owning land within the unit.
166.8 	(d) Each resolution must be published in the official newspaper of the governing 
166.9 	body adopting it and becomes effective 40 days after publication, unless within said period 
166.10 	there shall be filed with the governing body a petition signed by qualified electors of a 
166.11 	territorial unit of the proposed detachment area, equal in number to five percent of the 
166.12 	number of electors voting at the last preceding election of the governing body, requesting 
166.13 	a referendum on the resolution, in which case the resolution may not become effective 
166.14 	until approved by a majority of the qualified electors voting at a regular election or special 
166.15 	election that the governing body may call. The notice of an election and the ballot to be 
166.16 	used must contain the text of the resolution followed by the question: "Shall the above 
166.17 	resolution be approved?"
166.18 	(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to 
166.19 	the signer's landowner status as shown by the county auditor's tax assessment records, 
166.20 	certified by the auditor, shall be attached to or endorsed upon the petition.
166.21 	(f) At any time before publication of the public notice required in subdivision 4, 
166.22 	additional signatures may be added to the petition or amendments of the petition may be 
166.23 	made to correct or remedy any error or defect in signature or otherwise except a material 
166.24 	error or defect in the description of the territory of the proposed detachment area. If the 
166.25 	qualifications of any signer of a petition are challenged, the chief administrative law judge 
166.26 	shall determine the challenge forthwith on the allegations of the petition, the county 
166.27 	auditor's certificate of land ownership, and such other evidence as may be received.
166.28 		Subd. 3.Joint petition. Different areas may be detached from a district in a single 
166.29 	proceeding upon a joint petition therefor and upon compliance with the provisions of 
166.30 	subdivisions 1 and 2 with respect to the area affected so far as applicable.
166.31 		Subd. 4.Notice of intent for sanitary district detachment. (a) Upon receipt 
166.32 	of a petition and record of public meeting required under subdivision 2, the chief 
166.33 	administrative law judge shall publish a notice of intent for sanitary district detachment 
166.34 	in the State Register and mail or e-mail information of the publication to each property 
166.35 	owner in the affected territory at the owner's address as given by the county auditor. The 
167.1 	information must state the date that the notice will appear in the State Register and give 
167.2 	the Web site location for the State Register. The notice must:
167.3 	(1) describe the petition for sanitary district detachment;
167.4 	(2) describe the territory affected by the petition;
167.5 	(3) allow 30 days for submission of written comments on the petition;
167.6 	(4) state that a person who objects to the petition may submit a written request for 
167.7 	hearing to the chief administrative law judge within 30 days of the publication of the 
167.8 	notice in the State Register; and
167.9 	(5) state that if a timely request for hearing is not received, the chief administrative 
167.10 	law judge may make a decision on the petition.
167.11 	(b) If 50 or more individual timely requests for hearing are received, the chief 
167.12 	administrative law judge must hold a hearing on the petition according to the contested case 
167.13 	provisions of chapter 14. The sanitary district or detachment area proposers are responsible 
167.14 	for paying all costs involved in publicizing and holding a hearing on the petition.
167.15 		Subd. 5.Hearing time, place. If a hearing is required under subdivision 4, the 
167.16 	chief administrative law judge shall designate a time and place for a hearing according 
167.17 	to section 442A.13.
167.18 		Subd. 6.Relevant factors. (a) In arriving at a decision, the chief administrative law 
167.19 	judge shall consider the following factors:
167.20 	(1) public health, safety, and welfare impacts for the proposed detachment area;
167.21 	(2) alternatives for managing the public health impacts for the proposed detachment 
167.22 	area;
167.23 	(3) equities of the petition proposal;
167.24 	(4) contours of the petition proposal; and
167.25 	(5) public notification of and interaction on the petition proposal.
167.26 	(b) Based upon these factors, the chief administrative law judge may order the 
167.27 	detachment from the sanitary district on finding that:
167.28 	(1) the proposed detachment area has adequate alternatives for managing public 
167.29 	health impacts due to the detachment;
167.30 	(2) the proposed detachment area is not necessary for the district to provide a 
167.31 	long-term, equitable solution to pollution problems affecting public health, safety, and 
167.32 	welfare;
167.33 	(3) property owners within the existing sanitary district and proposed detachment 
167.34 	area were provided notice of the proposed detachment and opportunity to comment on 
167.35 	the petition proposal; and
168.1 	(4) the petition complied with the requirements of all applicable statutes and rules 
168.2 	pertaining to sanitary district detachment.
168.3 	(c) The chief administrative law judge may alter the boundaries of the proposed 
168.4 	detachment area by increasing or decreasing the area to be included or may exclude 
168.5 	property that may be better served by another unit of government. The chief administrative 
168.6 	law judge may also alter the boundaries of the proposed detachment area so as to follow 
168.7 	visible, clearly recognizable physical features for municipal boundaries.
168.8 	(d) The chief administrative law judge may deny sanitary district detachment if the 
168.9 	area, or a part thereof, would be better served by an alternative method.
168.10 	(e) In all cases, the chief administrative law judge shall set forth the factors that are 
168.11 	the basis for the decision.
168.12 		Subd. 7.Findings; order. (a) After the public notice period or the public hearing, if 
168.13 	required under subdivision 4, and based on the petition, any public comments received, 
168.14 	and, if a hearing was held, the hearing record, the chief administrative law judge shall 
168.15 	make findings of fact and conclusions determining whether the conditions requisite for 
168.16 	the sanitary district detachment exist in the territory described in the petition. If the chief 
168.17 	administrative law judge finds that conditions exist, the judge may make an order for 
168.18 	sanitary district detachment for the territory described in the petition.
168.19 	(b) All taxable property within the detached area shall remain subject to taxation 
168.20 	for any existing bonded indebtedness of the district to such extent as it would have been 
168.21 	subject thereto if not detached and shall also remain subject to taxation for any other 
168.22 	existing indebtedness of the district incurred for any purpose beneficial to such area to 
168.23 	such extent as the chief administrative law judge may determine to be just and equitable, 
168.24 	to be specified in the order for detachment. The proper officers shall levy further taxes on 
168.25 	such property accordingly.
168.26 		Subd. 8.Denial of petition. If the chief administrative law judge, after conclusion 
168.27 	of the public notice period or holding a hearing, if required, determines that the sanitary 
168.28 	district detachment in the territory described in the petition is not warranted, the judge 
168.29 	shall make an order denying the petition. The chief administrative law judge shall give 
168.30 	notice of the denial by mail or e-mail to each signer of the petition. No petition for a 
168.31 	detachment from a district consisting of the same territory shall be entertained within a 
168.32 	year after the date of an order under this subdivision. Nothing in this subdivision precludes 
168.33 	action on a petition for a detachment from a district embracing part of the territory with 
168.34 	or without other territory.
168.35 		Subd. 9.Notice of order for sanitary district detachment. The chief 
168.36 	administrative law judge shall publish in the State Register a notice of the final order 
169.1 	for sanitary district detachment, referring to the date of the order and describing the 
169.2 	territory of the detached area and shall mail or e-mail information of the publication 
169.3 	to each property owner in the affected territory at the owner's address as given by the 
169.4 	county auditor. The information must state the date that the notice will appear in the State 
169.5 	Register and give the Web site location for the State Register. The notice must:
169.6 	(1) describe the petition for detachment from the district;
169.7 	(2) describe the territory affected by the petition; and
169.8 	(3) state that a certified copy of the order shall be delivered to the secretary of state 
169.9 	for filing ten days after public notice of the order in the State Register.
169.10 		Subd. 10.Filing. Ten days after public notice of the order in the State Register, the 
169.11 	chief administrative law judge shall deliver a certified copy of the order to the secretary of 
169.12 	state for filing. Thereupon, the sanitary district detachment is deemed complete, and it 
169.13 	shall be conclusively presumed that all requirements of law relating thereto have been 
169.14 	complied with. The chief administrative law judge shall also transmit a certified copy of 
169.15 	the order for filing to the county auditor of each county and the clerk or recorder of each 
169.16 	municipality and organized town wherein any part of the territory of the district, including 
169.17 	the newly detached area, is situated and to the secretary of the district board.

169.18 	Sec. 9. [442A.07] SANITARY DISTRICT DISSOLUTION.
169.19 		Subdivision 1.Dissolution. (a) An existing sanitary district may be dissolved under 
169.20 	this chapter upon a petition to the chief administrative law judge stating the grounds 
169.21 	therefor as provided in this section.
169.22 	(b) The proposed dissolution must not have any negative environmental impact on 
169.23 	the existing sanitary district area.
169.24 	(c) If the chief administrative law judge and the Minnesota Pollution Control 
169.25 	Agency disagree on the need to dissolve a sanitary district, they must determine whether 
169.26 	not dissolving the sanitary district will have a detrimental effect on the environment. If 
169.27 	it is determined that the sanitary district dissolution will cause environmental harm, the 
169.28 	sanitary district dissolution is not allowed unless the existing sanitary district area is 
169.29 	immediately connected to an existing wastewater treatment system.
169.30 		Subd. 2.Proceeding for dissolution. (a) A proceeding for sanitary district 
169.31 	dissolution may be initiated by a petition to the chief administrative law judge containing 
169.32 	the following:
169.33 	(1) a request for proposed sanitary district dissolution;
169.34 	(2) a statement that the requisite conditions for a sanitary district no longer exist 
169.35 	in the district area;
170.1 	(3) a proposal for distribution of the remaining funds of the district, if any, among 
170.2 	the related governmental subdivisions;
170.3 	(4) a legal description of the territory of the proposed dissolution;
170.4 	(5) addresses of every property owner within the sanitary district boundaries as 
170.5 	provided by the county auditor, with certification from the county auditor; two sets of 
170.6 	address labels for said owners; and a list of e-mail addresses for said owners, if available;
170.7 	(6) a statement of the territorial units represented by and the qualifications of the 
170.8 	respective signers; and
170.9 	(7) the post office address of each signer, given under the signer's signature.
170.10 	A petition may consist of separate writings of like effect, each signed by one or more 
170.11 	qualified persons, and all such writings, when filed, shall be considered together as a 
170.12 	single petition.
170.13 	(b) Petitioners must conduct and pay for a public meeting to inform citizens of the 
170.14 	proposed dissolution of a sanitary district. At the meeting, information must be provided, 
170.15 	including a description of the existing district's territory. Notice of the meeting must be 
170.16 	published for two successive weeks in a qualified newspaper, as defined under chapter 
170.17 	331A, published within the territory of the sanitary district or, if there is no qualified 
170.18 	newspaper published within that territory, in a qualified newspaper of general circulation 
170.19 	in the territory and must be posted for two weeks in each territorial unit of the sanitary 
170.20 	district and on the Web site of the existing sanitary district, if one exists. Notice of the 
170.21 	meeting must be mailed or e-mailed at least three weeks prior to the meeting to all property 
170.22 	tax billing addresses for all parcels included in the sanitary district. The following must be 
170.23 	submitted to the chief administrative law judge with the petition:
170.24 	(1) a record of the meeting, including copies of all information provided at the 
170.25 	meeting;
170.26 	(2) a copy of the mailing list provided by the county auditor and used to notify 
170.27 	property owners of the meeting;
170.28 	(3) a copy of the e-mail list used to notify property owners of the meeting;
170.29 	(4) the printer's affidavit of publication of public meeting notice;
170.30 	(5) an affidavit of posting the public meeting notice with information on dates and 
170.31 	locations of posting; and 
170.32 	(6) minutes or other record of the public meeting documenting that the following 
170.33 	topics were discussed: printer's affidavit of publication of each resolution, with copy 
170.34 	of resolution from newspaper attached; and affidavit of resolution posting on town or 
170.35 	existing sanitary district Web site.
170.36 	(c) Every petition must be signed as follows:
171.1 	(1) by an authorized officer of the existing sanitary district pursuant to a resolution 
171.2 	of the board;
171.3 	(2) for each municipality wherein there is a territorial unit of the existing sanitary 
171.4 	district, by an authorized officer pursuant to a resolution of the municipal governing body;
171.5 	(3) for each organized town wherein there is a territorial unit of the existing sanitary 
171.6 	district, by an authorized officer pursuant to a resolution of the town board; and
171.7 	(4) for each county wherein there is a territorial unit of the existing sanitary district 
171.8 	consisting of an unorganized area, by an authorized officer pursuant to a resolution of the 
171.9 	county board or by at least 20 percent of the voters residing and owning land within the unit.
171.10 	(d) Each resolution must be published in the official newspaper of the governing body 
171.11 	adopting it and becomes effective 40 days after publication, unless within said period there 
171.12 	shall be filed with the governing body a petition signed by qualified electors of a territorial 
171.13 	unit of the district, equal in number to five percent of the number of electors voting at the 
171.14 	last preceding election of the governing body, requesting a referendum on the resolution, 
171.15 	in which case the resolution may not become effective until approved by a majority of the 
171.16 	qualified electors voting at a regular election or special election that the governing body 
171.17 	may call. The notice of an election and the ballot to be used must contain the text of the 
171.18 	resolution followed by the question: "Shall the above resolution be approved?"
171.19 	(e) If any signer is alleged to be a landowner in a territorial unit, a statement as to 
171.20 	the signer's landowner status as shown by the county auditor's tax assessment records, 
171.21 	certified by the auditor, shall be attached to or endorsed upon the petition.
171.22 	(f) At any time before publication of the public notice required in subdivision 3, 
171.23 	additional signatures may be added to the petition or amendments of the petition may be 
171.24 	made to correct or remedy any error or defect in signature or otherwise except a material 
171.25 	error or defect in the description of the territory of the proposed dissolution area. If the 
171.26 	qualifications of any signer of a petition are challenged, the chief administrative law judge 
171.27 	shall determine the challenge forthwith on the allegations of the petition, the county 
171.28 	auditor's certificate of land ownership, and such other evidence as may be received.
171.29 		Subd. 3.Notice of intent for sanitary district dissolution. (a) Upon receipt 
171.30 	of a petition and record of the public meeting required under subdivision 2, the chief 
171.31 	administrative law judge shall publish a notice of intent of sanitary district dissolution 
171.32 	in the State Register and mail or e-mail information of the publication to each property 
171.33 	owner in the affected territory at the owner's address as given by the county auditor. The 
171.34 	information must state the date that the notice will appear in the State Register and give 
171.35 	the Web site location for the State Register. The notice must:
171.36 	(1) describe the petition for sanitary district dissolution;
172.1 	(2) describe the territory affected by the petition;
172.2 	(3) allow 30 days for submission of written comments on the petition;
172.3 	(4) state that a person who objects to the petition may submit a written request for 
172.4 	hearing to the chief administrative law judge within 30 days of the publication of the 
172.5 	notice in the State Register; and
172.6 	(5) state that if a timely request for hearing is not received, the chief administrative 
172.7 	law judge may make a decision on the petition.
172.8 	(b) If 50 or more individual timely requests for hearing are received, the chief 
172.9 	administrative law judge must hold a hearing on the petition according to the contested 
172.10 	case provisions of chapter 14. The sanitary district dissolution proposers are responsible 
172.11 	for paying all costs involved in publicizing and holding a hearing on the petition.
172.12 		Subd. 4.Hearing time, place. If a hearing is required under subdivision 3, the 
172.13 	chief administrative law judge shall designate a time and place for a hearing according 
172.14 	to section 442A.13.
172.15 		Subd. 5.Relevant factors. (a) In arriving at a decision, the chief administrative law 
172.16 	judge shall consider the following factors:
172.17 	(1) public health, safety, and welfare impacts for the proposed dissolution;
172.18 	(2) alternatives for managing the public health impacts for the proposed dissolution;
172.19 	(3) equities of the petition proposal;
172.20 	(4) contours of the petition proposal; and
172.21 	(5) public notification of and interaction on the petition proposal.
172.22 	(b) Based upon these factors, the chief administrative law judge may order the 
172.23 	dissolution of the sanitary district on finding that:
172.24 	(1) the proposed dissolution area has adequate alternatives for managing public 
172.25 	health impacts due to the dissolution;
172.26 	(2) the sanitary district is not necessary to provide a long-term, equitable solution to 
172.27 	pollution problems affecting public health, safety, and welfare;
172.28 	(3) property owners within the sanitary district were provided notice of the proposed 
172.29 	dissolution and opportunity to comment on the petition proposal; and
172.30 	(4) the petition complied with the requirements of all applicable statutes and rules 
172.31 	pertaining to sanitary district dissolution.
172.32 	(c) The chief administrative law judge may alter the boundaries of the proposed 
172.33 	dissolution area by increasing or decreasing the area to be included or may exclude 
172.34 	property that may be better served by another unit of government. The chief administrative 
172.35 	law judge may also alter the boundaries of the proposed dissolution area so as to follow 
172.36 	visible, clearly recognizable physical features for municipal boundaries.
173.1 	(d) The chief administrative law judge may deny sanitary district dissolution if the 
173.2 	area, or a part thereof, would be better served by an alternative method.
173.3 	(e) In all cases, the chief administrative law judge shall set forth the factors that are 
173.4 	the basis for the decision.
173.5 		Subd. 6.Findings; order. (a) After the public notice period or the public hearing, if 
173.6 	required under subdivision 3, and based on the petition, any public comments received, 
173.7 	and, if a hearing was held, the hearing record, the chief administrative law judge shall 
173.8 	make findings of fact and conclusions determining whether the conditions requisite for 
173.9 	the sanitary district dissolution exist in the territory described in the petition. If the chief 
173.10 	administrative law judge finds that conditions exist, the judge may make an order for 
173.11 	sanitary district dissolution for the territory described in the petition.
173.12 	(b) If the chief administrative law judge determines that the conditions requisite for 
173.13 	the creation of the district no longer exist therein, that all indebtedness of the district has 
173.14 	been paid, and that all property of the district except funds has been disposed of, the judge 
173.15 	may make an order dissolving the district and directing the distribution of its remaining 
173.16 	funds, if any, among the related governmental subdivisions on such basis as the chief 
173.17 	administrative law judge determines to be just and equitable, to be specified in the order.
173.18 		Subd. 7.Denial of petition. If the chief administrative law judge, after conclusion 
173.19 	of the public notice period or holding a hearing, if required, determines that the sanitary 
173.20 	district dissolution in the territory described in the petition is not warranted, the judge 
173.21 	shall make an order denying the petition. The chief administrative law judge shall give 
173.22 	notice of the denial by mail or e-mail to each signer of the petition. No petition for the 
173.23 	dissolution of a district consisting of the same territory shall be entertained within a year 
173.24 	after the date of an order under this subdivision.
173.25 		Subd. 8.Notice of order for sanitary district dissolution. The chief administrative 
173.26 	law judge shall publish in the State Register a notice of the final order for sanitary 
173.27 	district dissolution, referring to the date of the order and describing the territory of the 
173.28 	dissolved district and shall mail or e-mail information of the publication to each property 
173.29 	owner in the affected territory at the owner's address as given by the county auditor. The 
173.30 	information must state the date that the notice will appear in the State Register and give 
173.31 	the Web site location of the State Register. The notice must:
173.32 	(1) describe the petition for dissolution of the district;
173.33 	(2) describe the territory affected by the petition; and
173.34 	(3) state that a certified copy of the order shall be delivered to the secretary of state 
173.35 	for filing ten days after public notice of the order in the State Register.
174.1 		Subd. 9.Filing. (a) Ten days after public notice of the order in the State Register, 
174.2 	the chief administrative law judge shall deliver a certified copy of the order to the secretary 
174.3 	of state for filing. Thereupon, the sanitary district dissolution is deemed complete, and it 
174.4 	shall be conclusively presumed that all requirements of law relating thereto have been 
174.5 	complied with. The chief administrative law judge shall also transmit a certified copy of 
174.6 	the order for filing to the county auditor of each county and the clerk or recorder of each 
174.7 	municipality and organized town wherein any part of the territory of the dissolved district 
174.8 	is situated and to the secretary of the district board.
174.9 	(b) The chief administrative law judge shall also transmit a certified copy of the order 
174.10 	to the treasurer of the district, who must thereupon distribute the remaining funds of the 
174.11 	district as directed by the order and who is responsible for the funds until so distributed.

174.12 	Sec. 10. [442A.08] JOINT PUBLIC INFORMATIONAL MEETING.
174.13 	There must be a joint public informational meeting of the local governments of any 
174.14 	proposed sanitary district creation, annexation, detachment, or dissolution. The joint public 
174.15 	informational meeting must be held after the final mediation meeting or the final meeting 
174.16 	held according to section 442A.02, subdivision 8, if any, and before the hearing on the 
174.17 	matter is held. If no mediation meetings are held, the joint public informational meeting 
174.18 	must be held after the initiating documents have been filed and before the hearing on the 
174.19 	matter. The time, date, and place of the public informational meeting must be determined 
174.20 	jointly by the local governments in the proposed creation, annexation, detachment, or 
174.21 	dissolution areas and by the sanitary district, if one exists. The chair of the sanitary district, 
174.22 	if one exists, and the responsible official for one of the local governments represented at 
174.23 	the meeting must serve as the co-chairs for the informational meeting. Notice of the time, 
174.24 	date, place, and purpose of the informational meeting must be posted by the sanitary 
174.25 	district, if one exists, and local governments in designated places for posting notices. The 
174.26 	sanitary district, if one exists, and represented local governments must also publish, at their 
174.27 	own expense, notice in their respective official newspapers. If the same official newspaper 
174.28 	is used by multiple local government representatives or the sanitary district, a joint notice 
174.29 	may be published and the costs evenly divided. All notice required by this section must 
174.30 	be provided at least ten days before the date for the public informational meeting. At the 
174.31 	public informational meeting, all persons appearing must have an opportunity to be heard, 
174.32 	but the co-chairs may, by mutual agreement, establish the amount of time allowed for each 
174.33 	speaker. The sanitary district board, the local government representatives, and any resident 
174.34 	or affected property owner may be represented by counsel and may place into the record of 
174.35 	the informational meeting documents, expert opinions, or other materials supporting their 
175.1 	positions on issues raised by the proposed proceeding. The secretary of the sanitary district, 
175.2 	if one exists, or a person appointed by the chair must record minutes of the proceedings of 
175.3 	the informational meeting and must make an audio recording of the informational meeting. 
175.4 	The sanitary district, if one exists, or a person appointed by the chair must provide the 
175.5 	chief administrative law judge and the represented local governments with a copy of the 
175.6 	printed minutes and must provide the chief administrative law judge and the represented 
175.7 	local governments with a copy of the audio recording. The record of the informational 
175.8 	meeting for a proceeding under section 442A.04, 442A.05, 442A.06, or 442A.07 is 
175.9 	admissible in any proceeding under this chapter and shall be taken into consideration by 
175.10 	the chief administrative law judge or the chief administrative law judge's designee.

175.11 	Sec. 11. [442A.09] ANNEXATION BY ORDER OF POLLUTION CONTROL 
175.12 	AGENCY.
175.13 		Subdivision 1.Annexation by ordinance alternative.  If a determination or order 
175.14 	by the Minnesota Pollution Control Agency under section 115.49 or other similar statute is 
175.15 	made that cooperation by contract is necessary and feasible between a sanitary district and 
175.16 	an unincorporated area located outside the existing corporate limits of the sanitary district, 
175.17 	the sanitary district required to provide or extend through a contract a governmental 
175.18 	service to an unincorporated area, during the statutory 90-day period provided in section 
175.19 	115.49 to formulate a contract, may in the alternative to formulating a service contract to 
175.20 	provide or extend the service, declare the unincorporated area described in the Minnesota 
175.21 	Pollution Control Agency's determination letter or order annexed to the sanitary district by 
175.22 	adopting an ordinance and submitting it to the chief administrative law judge.
175.23 		Subd. 2.Chief administrative law judge's role.  The chief administrative law 
175.24 	judge may review and comment on the ordinance but shall approve the ordinance within 
175.25 	30 days of receipt. The ordinance is final and the annexation is effective on the date the 
175.26 	chief administrative law judge approves the ordinance.

175.27 	Sec. 12. [442A.10] PETITIONERS TO PAY EXPENSES.
175.28 	Expenses of the preparation and submission of petitions in the proceedings under 
175.29 	sections 442A.04 to 442A.09 shall be paid by the petitioners. Notwithstanding section 
175.30 	16A.1283, the Office of Administrative Hearings may adopt rules according to section 
175.31 	14.386 to establish fees necessary to support the preparation and submission of petitions 
175.32 	in proceedings under sections 442A.04 to 442A.09. The fees collected by the Office of 
175.33 	Administrative Hearings shall be deposited in the environmental fund.

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

176.1 	Sec. 13. [442A.11] TIME LIMITS FOR ORDERS; APPEALS.
176.2 		Subdivision 1.Orders; time limit. All orders in proceedings under this chapter 
176.3 	shall be issued within one year from the date of the first hearing thereon, provided that 
176.4 	the time may be extended for a fixed additional period upon consent of all parties of 
176.5 	record. Failure to so order shall be deemed to be an order denying the matter. An appeal 
176.6 	may be taken from such failure to so order in the same manner as an appeal from an 
176.7 	order as provided in subdivision 2.
176.8 		Subd. 2.Grounds for appeal. (a) Any person aggrieved by an order issued under 
176.9 	this chapter may appeal to the district court upon the following grounds:
176.10 	(1) the order was issued without jurisdiction to act;
176.11 	(2) the order exceeded the jurisdiction of the presiding administrative law judge;
176.12 	(3) the order was arbitrary, fraudulent, capricious, or oppressive or in unreasonable 
176.13 	disregard of the best interests of the territory affected; or
176.14 	(4) the order was based upon an erroneous theory of law.
176.15 	(b) The appeal must be taken in the district court in the county in which the majority 
176.16 	of the area affected is located. The appeal does not stay the effect of the order. All notices 
176.17 	and other documents must be served on both the chief administrative law judge and the 
176.18 	attorney general's assistant assigned to the chief administrative law judge for purposes 
176.19 	of this chapter.
176.20 	(c) If the court determines that the action involved is unlawful or unreasonable or is 
176.21 	not warranted by the evidence in case an issue of fact is involved, the court may vacate or 
176.22 	suspend the action involved, in whole or in part, as the case requires. The matter shall then 
176.23 	be remanded for further action in conformity with the decision of the court.
176.24 	(d) To render a review of an order effectual, the aggrieved person shall file with the 
176.25 	court administrator of the district court of the county in which the majority of the area is 
176.26 	located, within 30 days of the order, an application for review together with the grounds 
176.27 	upon which the review is sought.
176.28 	(e) An appeal lies from the district court as in other civil cases.

176.29 	Sec. 14. [442A.12] CHIEF ADMINISTRATIVE LAW JUDGE MAY APPEAL 
176.30 	FROM DISTRICT COURT.
176.31 	An appeal may be taken under the Rules of Civil Appellate Procedure by the chief 
176.32 	administrative law judge from a final order or judgment made or rendered by the district 
176.33 	court when the chief administrative law judge determines that the final order or judgment 
176.34 	adversely affects the public interest.

177.1 	Sec. 15. [442A.13] UNIFORM PROCEDURES.
177.2 		Subdivision 1.Hearings. (a) Proceedings initiated by the submission of an initiating 
177.3 	document or by the chief administrative law judge shall come on for hearing within 30 to 
177.4 	60 days from receipt of the document by the chief administrative law judge or from the 
177.5 	date of the chief administrative law judge's action and the person conducting the hearing 
177.6 	must submit an order no later than one year from the date of the first hearing.
177.7 	(b) The place of the hearing shall be in the county where a majority of the affected 
177.8 	territory is situated, and shall be established for the convenience of the parties.
177.9 	(c) The chief administrative law judge shall mail notice of the hearing to the 
177.10 	following parties: the sanitary district; any township or municipality presently governing 
177.11 	the affected territory; any township or municipality abutting the affected territory; 
177.12 	the county where the affected territory is situated; and each planning agency that has 
177.13 	jurisdiction over the affected area.
177.14 	(d) The chief administrative law judge shall see that notice of the hearing is published 
177.15 	for two successive weeks in a legal newspaper of general circulation in the affected area.
177.16 	(e) When the chief administrative law judge exercises authority to change the 
177.17 	boundaries of the affected area so as to increase the quantity of land, the hearing shall 
177.18 	be recessed and reconvened upon two weeks' published notice in a legal newspaper of 
177.19 	general circulation in the affected area.
177.20 		Subd. 2.Transmittal of order. The chief administrative law judge shall see that 
177.21 	copies of the order are mailed to all parties entitled to mailed notice of hearing under 
177.22 	subdivision 1, individual property owners if initiated in that manner, and any other party 
177.23 	of record.

177.24 	Sec. 16. [442A.14] DISTRICT BOARD OF MANAGERS.
177.25 		Subdivision 1.Composition. The governing body of each district shall be a board 
177.26 	of managers of five members, who shall be voters residing in the district and who may 
177.27 	but need not be officers, members of governing bodies, or employees of the related 
177.28 	governmental subdivisions, except that when there are more than five territorial units in 
177.29 	a district, there must be one board member for each unit.
177.30 		Subd. 2.Terms. The terms of the first board members elected after creation of a 
177.31 	district shall be so arranged and determined by the electing body as to expire on the first 
177.32 	business day in January as follows:
177.33 	(1) the terms of two members in the second calendar year after the year in which 
177.34 	they were elected;
178.1 	(2) the terms of two other members in the third calendar year after the year in which 
178.2 	they were elected; and
178.3 	(3) the term of the remaining member in the fourth calendar year after the year in 
178.4 	which the member was elected. In case a board has more than five members, the additional 
178.5 	members shall be assigned to the groups under clauses (1) to (3) to equalize the groups as 
178.6 	far as practicable. Thereafter, board members shall be elected successively for regular 
178.7 	terms beginning upon expiration of the preceding terms and expiring on the first business 
178.8 	day in January of the third calendar year thereafter. Each board member serves until 
178.9 	a successor is elected and has qualified.
178.10 		Subd. 3.Election of board. In a district having only one territorial unit, all the 
178.11 	members of the board shall be elected by the related governing body. In a district having 
178.12 	more than one territorial unit, the members of the board shall be elected by the members 
178.13 	of the related governing bodies in joint session except as otherwise provided. The electing 
178.14 	bodies concerned shall meet and elect the first board members of a new district as soon 
178.15 	as practicable after creation of the district and shall meet and elect board members for 
178.16 	succeeding regular terms as soon as practicable after November 1 next preceding the 
178.17 	beginning of the terms to be filled, respectively.
178.18 		Subd. 4.Central related governing body. Upon the creation of a district 
178.19 	having more than one territorial unit, the chief administrative law judge, on the basis of 
178.20 	convenience for joint meeting purposes, shall designate one of the related governing 
178.21 	bodies as the central related governing body in the order creating the district or in a 
178.22 	subsequent special order, of which the chief administrative law judge shall notify the 
178.23 	clerks or recorders of all the related governing bodies. Upon receipt of the notification, 
178.24 	the clerk or recorder of the central related governing body shall immediately transmit the 
178.25 	notification to the presiding officer of the body. The officer shall thereupon call a joint 
178.26 	meeting of the members of all the related governing bodies to elect board members, to 
178.27 	be held at such time as the officer shall fix at the regular meeting place of the officer's 
178.28 	governing body or at such other place in the district as the officer shall determine. The 
178.29 	clerk or recorder of the body must give at least ten days' notice of the meeting by mail to 
178.30 	the clerks or recorders of all the other related governing bodies, who shall immediately 
178.31 	transmit the notice to all the members of the related governing bodies, respectively. 
178.32 	Subsequent joint meetings to elect board members for regular terms must be called and 
178.33 	held in like manner. The presiding officer and the clerk or recorder of the central related 
178.34 	governing body shall act respectively as chair and secretary of the joint electing body at 
178.35 	any meeting thereof, but in case of the absence or disability of either of them, the body 
179.1 	may elect a temporary substitute. A majority of the members of each related governing 
179.2 	body is required for a quorum at any meeting of the joint electing body.
179.3 		Subd. 5.Nominations. Nominations for board members may be made by petitions, 
179.4 	each signed by ten or more voters residing and owning land in the district, filed with the 
179.5 	clerk, recorder, or secretary of the electing body before the election meeting. No person 
179.6 	shall sign more than one petition. The electing body shall give due consideration to all 
179.7 	nominations but is not limited thereto.
179.8 		Subd. 6.Election; single governing body. In the case of an electing body 
179.9 	consisting of a single related governing body, a majority vote of all members is required 
179.10 	for an election. In the case of a joint electing body, a majority vote of members present is 
179.11 	required for an election. In case of lack of a quorum or failure to elect, a meeting of an 
179.12 	electing body may be adjourned to a stated time and place without further notice.
179.13 		Subd. 7.Election; multiple governing bodies. In any district having more than 
179.14 	one territorial unit, the related governing bodies, instead of meeting in joint session, may 
179.15 	elect a board member by resolutions adopted by all of them separately, concurring in the 
179.16 	election of the same person. A majority vote of all members of each related governing 
179.17 	body is required for the adoption of any such resolution. The clerks or recorders of the 
179.18 	other related governing bodies shall transmit certified copies of the resolutions to the clerk 
179.19 	or recorder of the central related governing body. Upon receipt of concurring resolutions 
179.20 	from all the related governing bodies, the presiding officer and clerk or recorder of the 
179.21 	central related governing body shall certify the results and furnish certificates of election 
179.22 	as provided for a joint meeting.
179.23 		Subd. 8.Vacancies. Any vacancy in the membership of a board must be filled for 
179.24 	the unexpired term in like manner as provided for the regular election of board members.
179.25 		Subd. 9.Certification of election; temporary chair. The presiding and recording 
179.26 	officers of the electing body shall certify the results of each election to the county auditor 
179.27 	of each county wherein any part of the district is situated and to the clerk or recorder of 
179.28 	each related governing body and shall make and transmit to each board member elected 
179.29 	a certificate of the board member's election. Upon electing the first board members of a 
179.30 	district, the presiding officer of the electing body shall designate a member to serve as 
179.31 	temporary chair for purposes of initial organization of the board, and the recording 
179.32 	officer of the body shall include written notice thereof to all the board members with 
179.33 	their certificates of election.

179.34 	Sec. 17. [442A.15] BOARD ORGANIZATION AND PROCEDURES.
180.1 		Subdivision 1.Initial, annual meetings. As soon as practicable after the election 
180.2 	of the first board members of a district, the board shall meet at the call of the temporary 
180.3 	chair to elect officers and take other appropriate action for organization and administration 
180.4 	of the district. Each board shall hold a regular annual meeting at the call of the chair or 
180.5 	otherwise as the board prescribes on or as soon as practicable after the first business day in 
180.6 	January of each year and such other regular and special meetings as the board prescribes.
180.7 		Subd. 2.Officers. The officers of each district shall be a chair and a vice-chair, 
180.8 	who shall be members of the board, and a secretary and a treasurer, who may but need 
180.9 	not be members of the board. The board of a new district at its initial meeting or as soon 
180.10 	thereafter as practicable shall elect the officers to serve until the first business day in 
180.11 	January next following. Thereafter, the board shall elect the officers at each regular annual 
180.12 	meeting for terms expiring on the first business day in January next following. Each 
180.13 	officer serves until a successor is elected and has qualified.
180.14 		Subd. 3.Meeting place; offices. The board at its initial meeting or as soon 
180.15 	thereafter as practicable shall provide for suitable places for board meetings and for offices 
180.16 	of the district officers and may change the same thereafter as the board deems advisable. 
180.17 	The meeting place and offices may be the same as those of any related governing body, 
180.18 	with the approval of the body. The secretary of the board shall notify the secretary of state, 
180.19 	the county auditor of each county wherein any part of the district is situated, and the clerk 
180.20 	or recorder of each related governing body of the locations and post office addresses of the 
180.21 	meeting place and offices and any changes therein.
180.22 		Subd. 4.Budget. At any time before the proceeds of the first tax levy in a district 
180.23 	become available, the district board may prepare a budget comprising an estimate of the 
180.24 	expenses of organizing and administering the district until the proceeds are available, with 
180.25 	a proposal for apportionment of the estimated amount among the related governmental 
180.26 	subdivisions, and may request the governing bodies thereof to advance funds according to 
180.27 	the proposal. The governing bodies may authorize advancement of the requested amounts, 
180.28 	or such part thereof as they respectively deem proper, from any funds available in their 
180.29 	respective treasuries. The board shall include in its first tax levy after receipt of any such 
180.30 	advancements a sufficient sum to cover the same and shall cause the same to be repaid, 
180.31 	without interest, from the proceeds of taxes as soon as received.

180.32 	Sec. 18. [442A.16] DISTRICT STATUS AND POWERS.
180.33 		Subdivision 1.Status. Every district shall be a public corporation and a governmental 
180.34 	subdivision of the state and shall be deemed to be a municipality or municipal corporation 
180.35 	for the purpose of obtaining federal or state grants or loans or otherwise complying with 
181.1 	any provision of federal or state law or for any other purpose relating to the powers and 
181.2 	purposes of the district for which such status is now or hereafter required by law.
181.3 		Subd. 2.Powers and purpose. Every district shall have the powers and purposes 
181.4 	prescribed by this chapter and such others as may now or hereafter be prescribed by law. 
181.5 	No express grant of power or enumeration of powers herein shall be deemed to limit the 
181.6 	generality or scope of any grant of power.
181.7 		Subd. 3.Scope of powers and duties. Except as otherwise provided, a power or 
181.8 	duty vested in or imposed upon a district or any of its officers, agents, or employees shall 
181.9 	not be deemed exclusive and shall not supersede or abridge any power or duty vested in or 
181.10 	imposed upon any other agency of the state or any governmental subdivision thereof, but 
181.11 	shall be supplementary thereto.
181.12 		Subd. 4.Exercise of power. All the powers of a district shall be exercised by its 
181.13 	board of managers except so far as approval of any action by popular vote or by any other 
181.14 	authority may be expressly required by law.
181.15 		Subd. 5.Lawsuits; contracts. A district may sue and be sued and may enter into 
181.16 	any contract necessary or proper for the exercise of its powers or the accomplishment 
181.17 	of its purposes.
181.18 		Subd. 6.Property acquisition. A district may acquire by purchase, gift, or 
181.19 	condemnation or may lease or rent any real or personal property within or without the 
181.20 	district that may be necessary for the exercise of district powers or the accomplishment of 
181.21 	district purposes, may hold the property for such purposes, and may lease, rent out, sell, or 
181.22 	otherwise dispose of any property not needed for such purposes.
181.23 		Subd. 7.Acceptance of money or property. A district may accept gifts, grants, 
181.24 	or loans of money or other property from the United States, the state, or any person, 
181.25 	corporation, or other entity for district purposes; may enter into any agreement required in 
181.26 	connection therewith; and may hold, use, and dispose of the money or property according 
181.27 	to the terms of the gift, grant, loan, or agreement relating thereto.

181.28 	Sec. 19. [442A.17] SPECIFIC PURPOSES AND POWERS.
181.29 		Subdivision 1.Pollution prevention. A district may construct, install, improve, 
181.30 	maintain, and operate any system, works, or facilities within or without the district 
181.31 	required to control and prevent pollution of any waters of the state within its territory.
181.32 		Subd. 2.Sewage disposal. A district may construct, install, improve, maintain, 
181.33 	and operate any system, works, or facilities within or without the district required to 
181.34 	provide for, regulate, and control the disposal of sewage, industrial waste, and other waste 
181.35 	originating within its territory. The district may require any person upon whose premises 
182.1 	there is any source of sewage, industrial waste, or other waste within the district to 
182.2 	connect the premises with the disposal system, works, or facilities of the district whenever 
182.3 	reasonable opportunity therefor is provided.
182.4 		Subd. 3.Garbage, refuse disposal. A district may construct, install, improve, 
182.5 	maintain, and operate any system, works, or facilities within or without the district required 
182.6 	to provide for, regulate, and control the disposal of garbage or refuse originating within the 
182.7 	district. The district may require any person upon whose premises any garbage or refuse is 
182.8 	produced or accumulated to dispose of the garbage or refuse through the system, works, or 
182.9 	facilities of the district whenever reasonable opportunity therefor is provided.
182.10 		Subd. 4.Water supply. A district may procure supplies of water necessary for any 
182.11 	purpose under subdivisions 1 to 3 and may construct, install, improve, maintain, and 
182.12 	operate any system, works, or facilities required therefor within or without the district.
182.13 		Subd. 5.Roads. (a) To maintain the integrity of and facilitate access to district 
182.14 	systems, works, or facilities, the district may maintain and repair a road by agreement with 
182.15 	the entity that was responsible for the performance of maintenance and repair immediately 
182.16 	prior to the agreement. Maintenance and repair includes but is not limited to providing 
182.17 	lighting, snow removal, and grass mowing.
182.18 	(b) A district shall establish a taxing subdistrict of benefited property and shall levy 
182.19 	special taxes, pursuant to section 442A.24, subdivision 2, for the purposes of paying the 
182.20 	cost of improvement or maintenance of a road under paragraph (a).
182.21 	(c) For purposes of this subdivision, a district shall not be construed as a road 
182.22 	authority under chapter 160.
182.23 	(d) The district and its officers and employees are exempt from liability for any tort 
182.24 	claim for injury to person or property arising from travel on a road maintained by the 
182.25 	district and related to the road's maintenance or condition.

182.26 	Sec. 20. [442A.18] DISTRICT PROJECTS AND FACILITIES.
182.27 		Subdivision 1.Public property. For the purpose of constructing, improving, 
182.28 	maintaining, or operating any system, works, or facilities designed or used for any purpose 
182.29 	under section 442A.17, a district, its officers, agents, employees, and contractors may enter, 
182.30 	occupy, excavate, and otherwise operate in, upon, under, through, or along any public 
182.31 	highway, including a state trunk highway, or any street, park, or other public grounds so 
182.32 	far as necessary for such work, with the approval of the governing body or other authority 
182.33 	in charge of the public property affected and on such terms as may be agreed upon with the 
182.34 	governing body or authority respecting interference with public use, restoration of previous 
182.35 	conditions, compensation for damages, and other pertinent matters. If an agreement cannot 
183.1 	be reached after reasonable opportunity therefor, the district may acquire the necessary 
183.2 	rights, easements, or other interests in the public property by condemnation, subject to all 
183.3 	applicable provisions of law as in case of taking private property, upon condition that the 
183.4 	court shall determine that there is paramount public necessity for the acquisition.
183.5 		Subd. 2.Use of other systems. A district may, upon such terms as may be 
183.6 	agreed upon with the respective governing bodies or authorities concerned, provide for 
183.7 	connecting with or using; lease; or acquire and take over any system, works, or facilities 
183.8 	for any purpose under section 442A.17 belonging to any other governmental subdivision 
183.9 	or other public agency.
183.10 		Subd. 3.Use by other governmental bodies. A district may, upon such terms 
183.11 	as may be agreed upon with the respective governing bodies or authorities concerned, 
183.12 	authorize the use by any other governmental subdivision or other public agency of any 
183.13 	system, works, or facilities of the district constructed for any purpose under section 
183.14 	442A.17 so far as the capacity thereof is sufficient beyond the needs of the district. A 
183.15 	district may extend any such system, works, or facilities and permit the use thereof by 
183.16 	persons outside the district, so far as the capacity thereof is sufficient beyond the needs of 
183.17 	the district, upon such terms as the board may prescribe.
183.18 		Subd. 4.Joint projects. A district may be a party to a joint cooperative project, 
183.19 	undertaking, or enterprise with one or more other governmental subdivisions or other 
183.20 	public agencies for any purpose under section 442A.17 upon such terms as may be 
183.21 	agreed upon between the governing bodies or authorities concerned. Without limiting the 
183.22 	effect of the foregoing provision or any other provision of this chapter, a district, with 
183.23 	respect to any of said purposes, may act under and be subject to section 471.59, or any 
183.24 	other appropriate law providing for joint or cooperative action between governmental 
183.25 	subdivisions or other public agencies.

183.26 	Sec. 21. [442A.19] CONTROL OF SANITARY FACILITIES.
183.27 	A district may regulate and control the construction, maintenance, and use of privies, 
183.28 	cesspools, septic tanks, toilets, and other facilities and devices for the reception or disposal 
183.29 	of human or animal excreta or other domestic wastes within its territory so far as necessary 
183.30 	to prevent nuisances or pollution or to protect the public health, safety, and welfare 
183.31 	and may prohibit the use of any such facilities or devices not connected with a district 
183.32 	disposal system, works, or facilities whenever reasonable opportunity for such connection 
183.33 	is provided; provided, that the authority of a district under this section does not extend 
183.34 	or apply to the construction, maintenance, operation, or use by any person other than the 
184.1 	district of any disposal system or part thereof within the district under and in accordance 
184.2 	with a valid and existing permit issued by the Minnesota Pollution Control Agency.

184.3 	Sec. 22. [442A.20] DISTRICT PROGRAMS, SURVEYS, AND STUDIES.
184.4 	A district may develop general programs and particular projects within the scope of 
184.5 	its powers and purposes and may make all surveys, studies, and investigations necessary 
184.6 	for the programs and projects.

184.7 	Sec. 23. [442A.21] GENERAL AND MUNICIPALITY POWERS.
184.8 	A district may do and perform all other acts and things necessary or proper for the 
184.9 	effectuation of its powers and the accomplishment of its purposes. Without limiting the 
184.10 	effect of the foregoing provision or any other provision of this chapter, a district, with 
184.11 	respect to each and all of said powers and purposes, shall have like powers as are vested 
184.12 	in municipalities with respect to any similar purposes. The exercise of such powers by a 
184.13 	district and all matters pertaining thereto are governed by the law relating to the exercise 
184.14 	of similar powers by municipalities and matters pertaining thereto, so far as applicable, 
184.15 	with like force and effect, except as otherwise provided.

184.16 	Sec. 24. [442A.22] ADVISORY COMMITTEE.
184.17 	A district board of managers may appoint an advisory committee with membership 
184.18 	and duties as the board prescribes.

184.19 	Sec. 25. [442A.23] BOARD POWERS.
184.20 		Subdivision 1.Generally. The board of managers of every district shall have charge 
184.21 	and control of all the funds, property, and affairs of the district. With respect thereto, the 
184.22 	board has the same powers and duties as are provided by law for a municipality with respect 
184.23 	to similar municipal matters, except as otherwise provided. Except as otherwise provided, 
184.24 	the chair, vice-chair, secretary, and treasurer of the district have the same powers and duties, 
184.25 	respectively, as the mayor, acting mayor, clerk, and treasurer of a municipality. Except as 
184.26 	otherwise provided, the exercise of the powers and the performance of the duties of the 
184.27 	board and officers of the district and all other activities, transactions, and procedures of the 
184.28 	district or any of its officers, agents, or employees, respectively, are governed by the law 
184.29 	relating to similar matters in a municipality, so far as applicable, with like force and effect.
184.30 		Subd. 2.Regulation of district. The board may enact ordinances, prescribe 
184.31 	regulations, adopt resolutions, and take other appropriate action relating to any matter 
184.32 	within the powers and purposes of the district and may do and perform all other acts and 
185.1 	things necessary or proper for the effectuation of said powers and the accomplishment 
185.2 	of said purposes. The board may provide that violation of a district ordinance is a penal 
185.3 	offense and may prescribe penalties for violations, not exceeding those prescribed by 
185.4 	law for violation of municipal ordinances.
185.5 		Subd. 3.Arrest; prosecution. (a) Violations of district ordinances may be 
185.6 	prosecuted before any court having jurisdiction of misdemeanors. Any peace officer may 
185.7 	make arrests for violations committed anywhere within the district in the same manner as 
185.8 	for violations of city ordinances or for statutory misdemeanors.
185.9 	(b) All fines collected shall be deposited in the treasury of the district.

185.10 	Sec. 26. [442A.24] TAX LEVIES, ASSESSMENTS, AND SERVICE CHARGES.
185.11 		Subdivision 1.Tax levies. The board may levy taxes for any district purpose on all 
185.12 	property taxable within the district.
185.13 		Subd. 2.Particular area. In the case where a particular area within the district, 
185.14 	but not the entire district, is benefited by a system, works, or facilities of the district, 
185.15 	the board, after holding a public hearing as provided by law for levying assessments on 
185.16 	benefited property, shall by ordinance establish such area as a taxing subdistrict, to be 
185.17 	designated by number, and shall levy special taxes on all the taxable property therein, to be 
185.18 	accounted for separately and used only for the purpose of paying the cost of construction, 
185.19 	improvement, acquisition, maintenance, or operation of such system, works, or facilities, 
185.20 	or paying the principal and interest on bonds issued to provide funds therefor and expenses 
185.21 	incident thereto. The hearing may be held jointly with a hearing for the purpose of levying 
185.22 	assessments on benefited property within the proposed taxing subdistrict.
185.23 		Subd. 3.Benefited property. The board shall levy assessments on benefited property 
185.24 	to provide funds for payment of the cost of construction, improvement, or acquisition of 
185.25 	any system, works, or facilities designed or used for any district purpose or for payment of 
185.26 	the principal of and interest on any bonds issued therefor and expenses incident thereto.
185.27 		Subd. 4.Service charges. The board shall prescribe service, use, or rental charges 
185.28 	for persons or premises connecting with or making use of any system, works, or facilities 
185.29 	of the district; prescribe the method of payment and collection of the charges; and provide 
185.30 	for the collection thereof for the district by any related governmental subdivision or 
185.31 	other public agency on such terms as may be agreed upon with the governing body or 
185.32 	other authority thereof.

185.33 	Sec. 27. [442A.25] BORROWING POWERS; BONDS.
186.1 		Subdivision 1.Borrowing power. The board may authorize the borrowing of 
186.2 	money for any district purpose and provide for the repayment thereof, subject to chapter 
186.3 	475. The taxes initially levied by any district according to section 475.61 for the payment 
186.4 	of district bonds, upon property within each municipality included in the district, shall be 
186.5 	included in computing the levy of the municipality.
186.6 		Subd. 2.Bond issuance. The board may authorize the issuance of bonds or 
186.7 	obligations of the district to provide funds for the construction, improvement, or 
186.8 	acquisition of any system, works, or facilities for any district purpose or for refunding 
186.9 	any prior bonds or obligations issued for any such purpose and may pledge the full faith 
186.10 	and credit of the district; the proceeds of tax levies or assessments; service, use, or 
186.11 	rental charges; or any combination thereof to the payment of such bonds or obligations 
186.12 	and interest thereon or expenses incident thereto. An election or vote of the people of 
186.13 	the district is required to authorize the issuance of any bonds or obligations. Except as 
186.14 	otherwise provided in this chapter, the forms and procedures for issuing and selling bonds 
186.15 	and provisions for payment thereof must comply with chapter 475.

186.16 	Sec. 28. [442A.26] FUNDS; DISTRICT TREASURY.
186.17 	The proceeds of all tax levies, assessments, service, use, or rental charges, and 
186.18 	other income of the district must be deposited in the district treasury and must be held 
186.19 	and disposed of as the board may direct for district purposes, subject to any pledges or 
186.20 	dedications made by the board for the use of particular funds for the payment of bonds, 
186.21 	interest thereon, or expenses incident thereto or for other specific purposes.

186.22 	Sec. 29. [442A.27] EFFECT OF DISTRICT ORDINANCES AND FACILITIES.
186.23 	In any case where an ordinance is enacted or a regulation adopted by a district 
186.24 	board relating to the same subject matter and applicable in the same area as an existing 
186.25 	ordinance or regulation of a related governmental subdivision for the district, the district 
186.26 	ordinance or regulation, to the extent of its application, supersedes the ordinance or 
186.27 	regulation of the related governmental subdivision. In any case where an area within a 
186.28 	district is served for any district purpose by a system, works, or facilities of the district, 
186.29 	no system, works, or facilities shall be constructed, maintained, or operated for the same 
186.30 	purpose in the same area by any related governmental subdivision or other public agency 
186.31 	except as approved by the district board.

186.32 	Sec. 30. [442A.28] APPLICATION.
187.1 	This chapter does not abridge or supersede any authority of the Minnesota Pollution 
187.2 	Control Agency or the commissioner of health, but is subject and supplementary thereto. 
187.3 	Districts and members of district boards are subject to the authority of the Minnesota 
187.4 	Pollution Control Agency and have no power or authority to abate or control pollution that 
187.5 	is permitted by and in accord with any classification of waters, standards of water quality, 
187.6 	or permit established, fixed, or issued by the Minnesota Pollution Control Agency.

187.7 	Sec. 31. [442A.29] CHIEF ADMINISTRATIVE LAW JUDGE'S POWERS.
187.8 		Subdivision 1.Alternative dispute resolution. (a) Notwithstanding sections 
187.9 	442A.01 to 442A.28, before assigning a matter to an administrative law judge for hearing, 
187.10 	the chief administrative law judge, upon consultation with affected parties and considering 
187.11 	the procedures and principles established in sections 442A.01 to 442A.28, may require 
187.12 	that disputes over proposed sanitary district creations, attachments, detachments, or 
187.13 	dissolutions be addressed in whole or in part by means of alternative dispute resolution 
187.14 	processes in place of, or in connection with, hearings that would otherwise be required 
187.15 	under sections 442A.01 to 442A.28, including those provided in chapter 14.
187.16 	(b) In all proceedings, the chief administrative law judge has the authority and 
187.17 	responsibility to conduct hearings and issue final orders related to the hearings under 
187.18 	sections 442A.01 to 442A.28.
187.19 		Subd. 2.Cost of proceedings. (a) The parties to any matter directed to alternative 
187.20 	dispute resolution under subdivision 1 must pay the costs of the alternative dispute 
187.21 	resolution process or hearing in the proportions that the parties agree to.
187.22 	(b) Notwithstanding section 14.53 or other law, the Office of Administrative 
187.23 	Hearings is not liable for the costs.
187.24 	(c) If the parties do not agree to a division of the costs before the commencement of 
187.25 	mediation, arbitration, or hearing, the costs must be allocated on an equitable basis by 
187.26 	the mediator, arbitrator, or chief administrative law judge.
187.27 	(d) The chief administrative law judge may contract with the parties to a matter for 
187.28 	the purpose of providing administrative law judges and reporters for an administrative 
187.29 	proceeding or alternative dispute resolution.
187.30 	(e) The chief administrative law judge shall assess the cost of services rendered by 
187.31 	the Office of Administrative Hearings as provided by section 14.53.
187.32 		Subd. 3.Parties. In this section, "party" means:
187.33 	(1) a property owner, group of property owners, sanitary district, municipality, or 
187.34 	township that files an initiating document or timely objection under this chapter;
188.1 	(2) the sanitary district, municipality, or township within which the subject area 
188.2 	is located;
188.3 	(3) a municipality abutting the subject area; and
188.4 	(4) any other person, group of persons, or governmental agency residing in, owning 
188.5 	property in, or exercising jurisdiction over the subject area that submits a timely request 
188.6 	and is determined by the presiding administrative law judge to have a direct legal interest 
188.7 	that will be affected by the outcome of the proceeding.
188.8 		Subd. 4.Effectuation of agreements. Matters resolved or agreed to by the parties 
188.9 	as a result of an alternative dispute resolution process, or otherwise, may be incorporated 
188.10 	into one or more stipulations for purposes of further proceedings according to the 
188.11 	applicable procedures and statutory criteria of this chapter.
188.12 		Subd. 5.Limitations on authority. Nothing in this section shall be construed to 
188.13 	permit a sanitary district, municipality, town, or other political subdivision to take, or 
188.14 	agree to take, an action that is not otherwise authorized by this chapter.

188.15 	Sec. 32.  REPEALER.
 188.16 	Minnesota Statutes 2012, sections 115.18, subdivisions 1, 3, 4, 5, 6, 7, 8, 9, and 10; 
188.17 	115.19; 115.20; 115.21; 115.22; 115.23; 115.24; 115.25; 115.26; 115.27; 115.28; 115.29; 
188.18 	115.30; 115.31; 115.32; 115.33; 115.34; 115.35; 115.36; and 115.37, are repealed.

188.19 	Sec. 33. EFFECTIVE DATE.
 188.20 	Unless otherwise provided in this article, sections 1 to 32 are effective August 1, 2013.