1.1 	A bill for an act
1.2 	relating to state government; appropriating money for agriculture, environment, 
1.3 	and natural resources; providing for animal health and agricultural utilization 
1.4 	research; making policy and technical changes to various agricultural related 
1.5 	provisions, including provisions related to pesticide control, plant protection, 
1.6 	nursery law, seeds, and loans; modifying license exclusions for the direct sale of 
1.7 	certain prepared food; establishing the agriculture research, education, extension, 
1.8 	and technology transfer grant program; establishing the Industrial Hemp 
1.9 	Development Act; providing for incentive payments and grants; modifying 
1.10 	disposition of certain revenue; providing for pilot programs; establishing the 
1.11 	farm opportunity loan program; modifying fee provisions; creating accounts; 
1.12 	modifying recreational vehicle provisions; modifying aquatic invasive species 
1.13 	provisions; modifying state park and trail provisions; modifying timber and land 
1.14 	sale provisions; modifying provisions for reclamation of lands; modifying game 
1.15 	and fish laws; modifying the Water Law; regulating water quality standards; 
1.16 	regulating chemicals of high concern in children's products; modifying solid 
1.17 	waste provisions; requiring studies and reports; requiring rulemaking;amending 
1.18 	Minnesota Statutes 2014, sections 13.643, subdivision 1; 13.7411, subdivision 
1.19 	8; 18B.01, subdivisions 28, 29; 18B.32, subdivision 1; 18B.33, subdivision 
1.20 	1; 18B.34, subdivision 1; 18G.10, subdivisions 3, 4; 18H.02, subdivision 
1.21 	20, by adding subdivisions; 18H.06, subdivision 2; 18J.01; 18J.02; 18J.03; 
1.22 	18J.04, subdivisions 1, 2, 3, 4; 18J.05, subdivisions 1, 2, 6; 18J.06; 18J.07, 
1.23 	subdivisions 3, 4, 5; 18J.09; 18J.11, subdivision 1, by adding a subdivision; 
1.24 	21.81, by adding subdivisions; 21.82, subdivisions 2, 4; 21.85, subdivision 
1.25 	2, by adding a subdivision; 21.89, subdivision 2; 41B.03, subdivision 6, by 
1.26 	adding a subdivision; 41B.04, subdivision 17; 41B.043, subdivision 3; 41B.045, 
1.27 	subdivisions 3, 4; 41B.046, subdivision 5; 41B.047, subdivisions 1, 4; 41B.048, 
1.28 	subdivision 6; 41B.049, subdivision 4; 41B.055, subdivision 3; 41B.056, 
1.29 	subdivision 2; 41B.06; 84.415, subdivision 7; 84.82, subdivisions 2a, 6; 84.92, 
1.30 	subdivisions 8, 9, 10; 84.922, subdivision 5; 84D.01, by adding a subdivision; 
1.31 	84D.13, subdivision 5; 84D.15, subdivision 3; 85.015, by adding a subdivision; 
1.32 	85.055, subdivision 1; 85.32, subdivision 1; 86B.401, subdivision 3; 87A.10; 
1.33 	88.6435, subdivision 4; 90.14; 90.193; 93.20, subdivision 18; 94.16, subdivision 
1.34 	3; 97A.055, subdivision 4b; 97B.301, by adding a subdivision; 97C.301, by 
1.35 	adding a subdivision; 103B.101, by adding a subdivision; 103B.3355; 103F.612, 
1.36 	subdivision 2; 103G.005, by adding a subdivision; 103G.222, subdivisions 
1.37 	1, 3; 103G.2242, subdivisions 1, 2, 3, 4, 12, 14, 15; 103G.2251; 115A.1415, 
1.38 	subdivision 16; 115A.557, subdivision 2; 116.07, subdivision 4d; 116.9401; 
1.39 	116.9402; 116.9403; 116.9405; 116.9406; 375.30, subdivision 2; proposing 
2.1 	coding for new law in Minnesota Statutes, chapters 17; 28A; 41A; 41B; 84; 
2.2 	84D; 92; 103B; 103F; 116; proposing coding for new law as Minnesota Statutes, 
2.3 	chapter 18K; repealing Minnesota Statutes 2014, sections 17.115; 28A.15, 
2.4 	subdivisions 9, 10; 41A.12, subdivision 4; 84.68; 86B.13, subdivisions 2, 4; 
2.5 	Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended.
2.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.7 	ARTICLE 1
2.8 	AGRICULTURE APPROPRIATIONS

2.9	Section 1. AGRICULTURE APPROPRIATIONS.
 	
2.10 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.11 	agencies and for the purposes specified in this article. The appropriations are from the 
2.12 	general fund, or another named fund, and are available for the fiscal years indicated 
2.13 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
2.14 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
2.15 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
2.16 	year 2017. "The biennium" is fiscal years 2016 and 2017. Appropriations for the fiscal 
2.17 	year ending June 30, 2015, are effective the day following final enactment.

2.18				APPROPRIATIONS
	
2.19				Available for the Year
	
2.20				Ending June 30
	
2.21					2016
		2017

2.22	Sec. 2. DEPARTMENT OF AGRICULTURE

2.23	Subdivision 1.Total Appropriation
 	$
	45,964,000
	$
	45,618,000

2.24	Appropriations by Fund
	
2.25		2016
	2017
	
2.26	General
	44,586,000
	44,240,000
	
2.27	Remediation
	388,000
	388,000
	
2.28	Agricultural
	990,000
	990,000
	
2.29 	The amounts that may be spent for each 
2.30 	purpose are specified in the following 
2.31 	subdivisions.

2.32	Subd. 2.Protection Services
 		17,958,000
		18,677,000

2.33	Appropriations by Fund
	
2.34		2016
	2017
	
2.35	General
	17,380,000
	18,099,000
	
3.1	Agricultural
	190,000
	190,000
	
3.2	Remediation
	388,000
	388,000
	
3.3 	$388,000 the first year and $388,000 the 
3.4 	second year are from the remediation fund 
3.5 	for administrative funding for the voluntary 
3.6 	cleanup program.
3.7 	$300,000 the first year and $250,000 
3.8 	the second year are for compensation 
3.9 	for destroyed or crippled animals under 
3.10 	Minnesota Statutes, section 3.737. This 
3.11 	appropriation may be spent to compensate 
3.12 	for animals that were destroyed or crippled 
3.13 	during fiscal years 2014 and 2015. If the 
3.14 	amount in the first year is insufficient, the 
3.15 	amount in the second year is available in the 
3.16 	first year.
3.17 	$50,000 the first year and $50,000 the second 
3.18 	year are for compensation for crop damage 
3.19 	under Minnesota Statutes, section 3.7371. If 
3.20 	the amount in the first year is insufficient, the 
3.21 	amount in the second year is available in the 
3.22 	first year.
3.23 	If the commissioner determines that claims 
3.24 	made under Minnesota Statutes, section 
3.25 	3.737 or 3.7371, are unusually high, amounts 
3.26 	appropriated for either program may be 
3.27 	transferred to the appropriation for the other 
3.28 	program.
3.29 	$225,000 the first year and $225,000 the 
3.30 	second year are for deposit in the noxious 
3.31 	weed and invasive plant species assistance 
3.32 	account established under Minnesota 
3.33 	Statutes, section 18.89, to be used to 
3.34 	implement the noxious weed grant program 
3.35 	under Minnesota Statutes, section 18.90.
4.1 	Notwithstanding Minnesota Statutes, section 
4.2 	18B.05, $90,000 the first year and $90,000 
4.3 	the second year are from the pesticide 
4.4 	regulatory account in the agricultural fund 
4.5 	for an increase in the operating budget for 
4.6 	the Laboratory Services Division.
4.7 	$100,000 the first year and $100,000 the 
4.8 	second year are from the pesticide regulatory 
4.9 	account in the agricultural fund to update 
4.10 	and modify applicator education and training 
4.11 	materials.
4.12 	$3,475,000 the first year and $4,244,000 
4.13 	the second year are for increased protection 
4.14 	services.

4.15
4.16	Subd. 3.Agricultural Marketing and 
Development
 		4,823,000
		3,873,000
	
4.17 	$186,000 the first year and $186,000 the 
4.18 	second year are for transfer to the Minnesota 
4.19 	grown account and may be used as grants 
4.20 	for Minnesota grown promotion under 
4.21 	Minnesota Statutes, section 17.102. Grants 
4.22 	may be made for one year. Notwithstanding 
4.23 	Minnesota Statutes, section 16A.28, the 
4.24 	appropriations encumbered under contract 
4.25 	on or before June 30, 2017, for Minnesota 
4.26 	grown grants in this paragraph are available 
4.27 	until June 30, 2019.
4.28 	$634,000 the first year and $634,000 the 
4.29 	second year are for continuation of the dairy 
4.30 	development and profitability enhancement 
4.31 	and dairy business planning grant programs 
4.32 	established under Laws 1997, chapter 
4.33 	216, section 7, subdivision 2, and Laws 
4.34 	2001, First Special Session chapter 2, 
4.35 	section 9, subdivision 2. The commissioner 
5.1 	may allocate the available sums among 
5.2 	permissible activities, including efforts to 
5.3 	improve the quality of milk produced in the 
5.4 	state in the proportions that the commissioner 
5.5 	deems most beneficial to Minnesota's 
5.6 	dairy farmers. The commissioner must 
5.7 	submit a detailed accomplishment report 
5.8 	and a work plan detailing future plans for, 
5.9 	and anticipated accomplishments from, 
5.10 	expenditures under this program to the 
5.11 	chairs and ranking minority members of the 
5.12 	legislative committees with jurisdiction over 
5.13 	agricultural policy and finance on or before 
5.14 	the start of each fiscal year. If significant 
5.15 	changes are made to the plans in the course 
5.16 	of the year, the commissioner must notify the 
5.17 	chairs and ranking minority members.
5.18 	The commissioner may use money 
5.19 	appropriated in this subdivision for annual 
5.20 	cost-share payments to resident farmers 
5.21 	or entities that sell, process, or package 
5.22 	agricultural products in this state for the costs 
5.23 	of organic certification. The commissioner 
5.24 	may allocate these funds for assistance for 
5.25 	persons transitioning from conventional to 
5.26 	organic agriculture.
5.27 	$100,000 the first year is to (1) enhance the 
5.28 	commissioner's efforts to identify existing 
5.29 	and emerging opportunities for Minnesota's 
5.30 	agricultural producers and processors to 
5.31 	export their products to Cuba, consistent with 
5.32 	federal law, and (2) effectively communicate 
5.33 	these opportunities to the producers and 
5.34 	processors. This is a onetime appropriation.
6.1 	$350,000 the first year is for grants to 
6.2 	communities to develop or expand food 
6.3 	hubs and other alternative community-based 
6.4 	food distribution systems. Of this amount, 
6.5 	$50,000 is for the commissioner to consult 
6.6 	with existing food hubs, alternative 
6.7 	community-based food distribution systems, 
6.8 	and University of Minnesota Extension 
6.9 	to identify best practices for use by other 
6.10 	Minnesota communities. No later than 
6.11 	December 15, 2015, the commissioner must 
6.12 	report to the legislative committees with 
6.13 	jurisdiction over agriculture and health 
6.14 	regarding the status of emerging alternative 
6.15 	community-based food distribution systems 
6.16 	in the state along with recommendations to 
6.17 	eliminate any barriers to success. This is a 
6.18 	onetime appropriation.
6.19 	$500,000 the first year is for urban 
6.20 	agriculture development grants under 
6.21 	Minnesota Statutes, section 17.1095. This is 
6.22 	a onetime appropriation.

6.23
6.24	Subd. 4.Bioenergy and Value-Added 
Agriculture
 		7,235,000
		7,235,000
	
6.25 	$6,235,000 the first year and $6,235,000 
6.26 	the second year are for the agricultural 
6.27 	growth, research, and innovation program 
6.28 	in Minnesota Statutes, section 41A.12. No 
6.29 	later than February 1, 2016, and February 
6.30 	1, 2017, the commissioner must report to 
6.31 	the legislative committees with jurisdiction 
6.32 	over agriculture policy and finance regarding 
6.33 	the commissioner's accomplishments 
6.34 	and anticipated accomplishments in 
6.35 	the following areas: facilitating the 
6.36 	start-up, modernization, or expansion of 
7.1 	livestock operations including beginning 
7.2 	and transitioning livestock operations; 
7.3 	developing new markets for Minnesota 
7.4 	farmers by providing more fruits, vegetables, 
7.5 	meat, grain, and dairy for Minnesota school 
7.6 	children; assisting value-added agricultural 
7.7 	businesses to begin or expand, access new 
7.8 	markets, or diversify products; facilitating 
7.9 	the start-up, modernization, or expansion 
7.10 	of other beginning and transitioning farms, 
7.11 	including loans under Minnesota Statutes, 
7.12 	section 41B.056; research on conventional 
7.13 	and cover crops; sustainable agriculture 
7.14 	on farm research and demonstration; and 
7.15 	research on bioenergy, biobased content, 
7.16 	or biobased formulated products and other 
7.17 	renewable energy development.
7.18 	The commissioner may use up to 4.5 percent 
7.19 	of this appropriation for costs incurred to 
7.20 	administer the program. Any unencumbered 
7.21 	balance does not cancel at the end of the first 
7.22 	year and is available for the second year. 
7.23 	Notwithstanding Minnesota Statutes, section 
7.24 	16A.28, the appropriations encumbered 
7.25 	under contract on or before June 30, 2017, for 
7.26 	agricultural growth, research, and innovation 
7.27 	grants in this subdivision are available until 
7.28 	June 30, 2019.
7.29 	Money appropriated in this subdivision may 
7.30 	be used for grants under this paragraph. 
7.31 	The NextGen Energy Board, established in 
7.32 	Minnesota Statutes, section 41A.105, shall 
7.33 	make recommendations to the commissioner 
7.34 	on grants for owners of Minnesota facilities 
7.35 	producing bioenergy, biobased content, 
7.36 	or a biobased formulated product; for 
8.1 	organizations that provide for on-station, 
8.2 	on-farm field scale research and outreach to 
8.3 	develop and test the agronomic and economic 
8.4 	requirements of diverse strands of prairie 
8.5 	plants and other perennials for bioenergy 
8.6 	systems; or for certain nongovernmental 
8.7 	entities. For the purposes of this paragraph, 
8.8 	"bioenergy" includes transportation fuels 
8.9 	derived from cellulosic material, as well as 
8.10 	the generation of energy for commercial heat, 
8.11 	industrial process heat, or electrical power 
8.12 	from cellulosic materials via gasification or 
8.13 	other processes. Grants are limited to 50 
8.14 	percent of the cost of research, technical 
8.15 	assistance, or equipment related to bioenergy, 
8.16 	biobased content, or biobased formulated 
8.17 	product production or $500,000, whichever 
8.18 	is less. Grants to nongovernmental entities 
8.19 	for the development of business plans and 
8.20 	structures related to community ownership 
8.21 	of eligible bioenergy facilities together may 
8.22 	not exceed $150,000. The board shall make 
8.23 	a good-faith effort to select projects that have 
8.24 	merit and, when taken together, represent a 
8.25 	variety of bioenergy technologies, biomass 
8.26 	feedstocks, and geographic regions of the 
8.27 	state. Projects must have a qualified engineer 
8.28 	provide certification on the technology and 
8.29 	fuel source. Grantees must provide reports at 
8.30 	the request of the commissioner.
8.31 	Notwithstanding Minnesota Statutes, section 
8.32 	41A.12, subdivision 3, of the amount 
8.33 	appropriated in this subdivision, $1,000,000 
8.34 	the first year and $1,000,000 the second year 
8.35 	are for distribution in equal amounts to each 
9.1 	of the state's county fairs to preserve and 
9.2 	promote Minnesota agriculture.
9.3 	Of the amount appropriated in this 
9.4 	subdivision, up to $2,500,000 the first 
9.5 	year and $2,500,000 the second year are 
9.6 	for incentive payments under Minnesota 
9.7 	Statutes, sections 41A.14, 41A.15, and 
9.8 	41A.16. Up to 4.5 percent of the amount 
9.9 	available under this paragraph may be used 
9.10 	for administration of the incentive payments.

9.11
9.12	Subd. 5.Administration and Financial 
Assistance
 		15,948,000
		15,833,000

9.13	Appropriations by Fund
	
9.14		2016
	2017
	
9.15	General
	15,148,000
	15,033,000
	
9.16	Agricultural
	800,000
	800,000
	
9.17 	$47,000 the first year and $47,000 the second 
9.18 	year are for the Northern Crops Institute. 
9.19 	These appropriations may be spent to 
9.20 	purchase equipment.
9.21 	$18,000 the first year and $18,000 the 
9.22 	second year are for a grant to the Minnesota 
9.23 	Livestock Breeders Association.
9.24 	$235,000 the first year and $235,000 the 
9.25 	second year are for grants to the Minnesota 
9.26 	Agricultural Education and Leadership 
9.27 	Council for programs of the council under 
9.28 	Minnesota Statutes, chapter 41D.
9.29 	$474,000 the first year and $474,000 the 
9.30 	second year are for payments to county and 
9.31 	district agricultural societies and associations 
9.32 	under Minnesota Statutes, section 38.02, 
9.33 	subdivision 1. Aid payments to county and 
9.34 	district agricultural societies and associations 
9.35 	shall be disbursed no later than July 15 of 
10.1 	each year. These payments are the amount of 
10.2 	aid from the state for an annual fair held in 
10.3 	the previous calendar year.
10.4 	$1,000 the first year and $1,000 the second 
10.5 	year are for grants to the Minnesota State 
10.6 	Poultry Association.
10.7 	$108,000 the first year and $108,000 the 
10.8 	second year are for annual grants to the 
10.9 	Minnesota Turf Seed Council for basic 
10.10 	and applied research on: (1) the improved 
10.11 	production of forage and turf seed related to 
10.12 	new and improved varieties; and (2) native 
10.13 	plants, including plant breeding, nutrient 
10.14 	management, pest management, disease 
10.15 	management, yield, and viability. The grant 
10.16 	recipient may subcontract with a qualified 
10.17 	third party for some or all of the basic or 
10.18 	applied research.
10.19 	$500,000 the first year and $500,000 the 
10.20 	second year are for grants to Second Harvest 
10.21 	Heartland on behalf of Minnesota's six 
10.22 	Second Harvest food banks for the purchase 
10.23 	of milk for distribution to Minnesota's food 
10.24 	shelves and other charitable organizations 
10.25 	that are eligible to receive food from the food 
10.26 	banks. Milk purchased under the grants must 
10.27 	be acquired from Minnesota milk processors 
10.28 	and based on low-cost bids. The milk must be 
10.29 	allocated to each Second Harvest food bank 
10.30 	serving Minnesota according to the formula 
10.31 	used in the distribution of United States 
10.32 	Department of Agriculture commodities 
10.33 	under The Emergency Food Assistance 
10.34 	Program (TEFAP). Second Harvest 
10.35 	Heartland must submit quarterly reports 
11.1 	to the commissioner on forms prescribed 
11.2 	by the commissioner. The reports must 
11.3 	include, but are not limited to, information 
11.4 	on the expenditure of funds, the amount 
11.5 	of milk purchased, and the organizations 
11.6 	to which the milk was distributed. Second 
11.7 	Harvest Heartland may enter into contracts 
11.8 	or agreements with food banks for shared 
11.9 	funding or reimbursement of the direct 
11.10 	purchase of milk. Each food bank receiving 
11.11 	money from this appropriation may use up to 
11.12 	two percent of the grant for administrative 
11.13 	expenses.
11.14 	$500,000 the first year and $500,000 the 
11.15 	second year are for grants to Second Harvest 
11.16 	Heartland on behalf of the six Feeding 
11.17 	America food banks that serve Minnesota 
11.18 	to compensate agricultural producers and 
11.19 	processors for costs incurred to harvest 
11.20 	and package for transfer surplus fruits, 
11.21 	vegetables, or other agricultural commodities 
11.22 	that would otherwise go unharvested, be 
11.23 	discarded, or be sold in a secondary market. 
11.24 	Surplus commodities must be distributed 
11.25 	statewide to food shelves and other charitable 
11.26 	organizations that are eligible to receive 
11.27 	food from the food banks. Surplus food 
11.28 	acquired under this appropriation must be 
11.29 	from Minnesota producers and processors. 
11.30 	Second Harvest Heartland must report when 
11.31 	required by, and in the form prescribed 
11.32 	by, the commissioner. Second Harvest 
11.33 	Heartland may use up to 11 percent of any 
11.34 	grant received for administrative expenses, 
11.35 	and up to four percent to reimburse for 
11.36 	transportation expenses.
12.1 	$94,000 the first year and $94,000 the 
12.2 	second year are for transfer to the Board of 
12.3 	Trustees of the Minnesota State Colleges 
12.4 	and Universities for statewide mental health 
12.5 	counseling support to farm families and 
12.6 	business operators through farm business 
12.7 	management programs at Central Lakes 
12.8 	College and Ridgewater College.
12.9 	$17,000 the first year and $17,000 the 
12.10 	second year are for grants to the Minnesota 
12.11 	Horticultural Society.
12.12 	$25,000 the first year is for the livestock 
12.13 	industry study required in this act. This is a 
12.14 	onetime appropriation.
12.15 	Notwithstanding Minnesota Statutes, 
12.16 	section 18C.131, $800,000 the first year 
12.17 	and $800,000 the second year are from the 
12.18 	fertilizer account in the agricultural fund 
12.19 	for grants for fertilizer research as awarded 
12.20 	by the Minnesota Agricultural Fertilizer 
12.21 	Research and Education Council under 
12.22 	Minnesota Statutes, section 18C.71. The 
12.23 	amount appropriated in either fiscal year 
12.24 	must not exceed 57 percent of the inspection 
12.25 	fee revenue collected under Minnesota 
12.26 	Statutes, section 18C.425, subdivision 6, 
12.27 	during the previous fiscal year. No later 
12.28 	than February 1, 2017, the commissioner 
12.29 	shall report to the legislative committees 
12.30 	with jurisdiction over agriculture finance. 
12.31 	The report must include the progress and 
12.32 	outcome of funded projects as well as the 
12.33 	sentiment of the council concerning the need 
12.34 	for additional research funds.
13.1 	$8,500,000 the first year and $8,500,000 
13.2 	the second year are for transfer to the fund 
13.3 	created in Minnesota Statutes, section 
13.4 	41A.18, subdivision 2. Of these amounts: 
13.5 	(1) at least $2,000,000 each year is for 
13.6 	agriculture rapid response under Minnesota 
13.7 	Statutes, section 41A.18, subdivision 1, 
13.8 	clause (2);
13.9 	(2) at least $1,000,000 each year is for 
13.10 	agricultural education under Minnesota 
13.11 	Statutes, section 41A.18, subdivision 1, 
13.12 	clause (3); and
13.13 	(3) at least $500,000 each year is for farm 
13.14 	business management under Minnesota 
13.15 	Statutes, section 41A.18, subdivision 1, 
13.16 	clause (3).
13.17 	To the extent practicable, funds expended 
13.18 	under Minnesota Statutes, section 41A.18, 
13.19 	subdivision 1, clauses (1) and (2), must 
13.20 	supplement and not supplant existing sources 
13.21 	and levels of funding. The base amount 
13.22 	for this program in fiscal year 2018 and 
13.23 	thereafter is $3,500,000.
13.24 	$300,000 the first year is for grants to the 
13.25 	director of the University of Minnesota 
13.26 	Extension for a grant program to expand 
13.27 	the Takeoff 4-H Science, Technology, 
13.28 	Engineering, Arts, and Mathematics 
13.29 	(STEAM) Club for Somali youth throughout 
13.30 	Minnesota. The University of Minnesota 
13.31 	Extension may use a portion of each grant for 
13.32 	grant administration and direct costs related 
13.33 	to the Takeoff 4-H STEAM partnership 
13.34 	between the University of Minnesota 
13.35 	Extension and Ka Joog.

14.1	Sec. 3. BOARD OF ANIMAL HEALTH
 	$
	5,318,000
	$
	5,384,000

14.2
14.3	Sec. 4. AGRICULTURAL UTILIZATION 
RESEARCH INSTITUTE
 	$
	2,643,000
	$
	2,643,000

14.4 	ARTICLE 2
14.5 	AGRICULTURE STATUTORY CHANGES

14.6 	Section 1. Minnesota Statutes 2014, section 13.643, subdivision 1, is amended to read:
14.7 		Subdivision 1.Department of Agriculture data. (a) Loan and grant applicant 
14.8 	data. The following data on applicants, collected by the Department of Agriculture in its 
14.9 	sustainable agriculture revolving loan and grant programs under sections 17.115 and section 
14.10 	17.116, are private or nonpublic: nonfarm income; credit history; insurance coverage; 
14.11 	machinery and equipment list; financial information; and credit information requests.
14.12 	(b) Farm advocate data. The following data supplied by farmer clients to 
14.13 	Minnesota farm advocates and to the Department of Agriculture are private data on 
14.14 	individuals: financial history, including listings of assets and debts, and personal and 
14.15 	emotional status information.

14.16 	Sec. 2. [17.1095] PILOT URBAN AGRICULTURE DEVELOPMENT GRANTS.
14.17 		Subdivision 1.Establishment. (a) The commissioner shall establish and administer 
14.18 	a pilot grant program to provide financial and technical assistance to cities, organizations, 
14.19 	or individuals for urban agriculture projects. Grant applications must be submitted to the 
14.20 	commissioner on forms provided by the commissioner. The commissioner shall award 
14.21 	grants to meritorious projects within the limits of available funding.
14.22 	(b) For purposes of this section, "eligible city" means a Minnesota home rule or 
14.23 	statutory city located in:
14.24 	(1) the seven-county metropolitan area, as defined under section 473.121, 
14.25 	subdivision 2; or
14.26 	(2) the core county or counties of a metropolitan statistical area.
14.27 	(c) The commissioner shall take steps to ensure that eligible organizations serving 
14.28 	ethnic communities are made aware of the grant and that they are encouraged to apply.
14.29 		Subd. 2.Grants to organizations or individuals. The commissioner shall solicit 
14.30 	grant applications from individuals and organizations for projects located in urban 
14.31 	agriculture development zones in eligible cities. The commissioner shall rank applications 
14.32 	based on the project's ability to:
15.1 	(1) increase fresh food access, including access to affordable organic foods, 
15.2 	to improve both local and regional food security through the development of urban 
15.3 	agriculture projects; and
15.4 	(2) reduce or eliminate health disparities related to food access.
15.5 		Subd. 3.Grants to cities. The commissioner shall solicit grant applications from 
15.6 	eligible cities that have adopted a zoning ordinance that designates urban agriculture 
15.7 	development zones. Applicant cities must certify to the commissioner that the ordinance 
15.8 	will remain in effect for at least ten years and must repay any grant funds received under 
15.9 	this section if the ordinance is repealed or amended to prohibit urban agriculture during 
15.10 	the ten-year period.
15.11 		Subd. 4.Expiration. This section expires July 1, 2018.

15.12 	Sec. 3. Minnesota Statutes 2014, section 18B.01, subdivision 28, is amended to read:
15.13 		Subd. 28.Structural pest. "Structural pest" means a an invertebrate pest, other 
15.14 	than a plant, or commensal rodent in, on, under, or near a structure such as a residential 
15.15 	or commercial building.

15.16 	Sec. 4. Minnesota Statutes 2014, section 18B.01, subdivision 29, is amended to read:
15.17 		Subd. 29.Structural pest control. "Structural pest control" means the control of 
15.18 	any structural pest through the use of a device, a procedure, or application of pesticides or 
15.19 	through other means in or around a building or other structures, including trucks, boxcars, 
15.20 	ships, aircraft, docks, and fumigation vaults, and the business activity related to use of a 
15.21 	device, a procedure, or application of a pesticide.

15.22 	Sec. 5. Minnesota Statutes 2014, section 18B.32, subdivision 1, is amended to read:
15.23 		Subdivision 1.Requirement. (a) A person may not engage in structural pest 
15.24 	control applications:
15.25 	(1) for hire without a structural pest control license; and
15.26 	(2) as a sole proprietorship, company, partnership, or corporation unless the person 
15.27 	is or employs a licensed master in structural pest control operations.
15.28 	(b) A structural pest control licensee must have a valid license identification card 
15.29 	when applying to purchase a restricted use pesticide or apply pesticides for hire and must 
15.30 	display it upon demand by an authorized representative of the commissioner or a law 
15.31 	enforcement officer. The license identification card must contain information required by 
15.32 	the commissioner.
16.1 	(c) Notwithstanding the licensing requirements of this subdivision, a person may 
16.2 	control the following nuisance or economically damaging wild animals, by trapping, 
16.3 	without a structural pest control license:
16.4 	(1) fur-bearing animals, as defined in section 97A.015, with a valid trapping license 
16.5 	or special permit from the commissioner of natural resources; and
16.6 	(2) skunks, woodchucks, gophers, porcupines, coyotes, moles, and weasels.

16.7 	Sec. 6. Minnesota Statutes 2014, section 18B.33, subdivision 1, is amended to read:
16.8 		Subdivision 1.Requirement. (a) A person may not apply a pesticide for hire 
16.9 	without a commercial applicator license for the appropriate use categories or a structural 
16.10 	pest control license.
16.11 	(b) A commercial applicator licensee must have a valid license identification card 
16.12 	when applying to purchase a restricted use pesticide or apply pesticides for hire and must 
16.13 	display it upon demand by an authorized representative of the commissioner or a law 
16.14 	enforcement officer. The commissioner shall prescribe the information required on the 
16.15 	license identification card.

16.16 	Sec. 7. Minnesota Statutes 2014, section 18B.34, subdivision 1, is amended to read:
16.17 		Subdivision 1.Requirement. (a) Except for a licensed commercial applicator, 
16.18 	certified private applicator, or licensed structural pest control applicator, a person, 
16.19 	including a government employee, may not purchase or use a restricted use pesticide in 
16.20 	performance of official duties without having a noncommercial applicator license for an 
16.21 	appropriate use category.
16.22 	(b) A licensee must have a valid license identification card when applying pesticides 
16.23 	and must display it upon demand by an authorized representative of the commissioner 
16.24 	or a law enforcement officer. The license identification card must contain information 
16.25 	required by the commissioner.

16.26 	Sec. 8. Minnesota Statutes 2014, section 18G.10, subdivision 3, is amended to read:
16.27 		Subd. 3.Cooperative agreements. The commissioner may enter into cooperative 
16.28 	agreements with federal and state agencies for administration of the export certification 
16.29 	program. An exporter of plants or plant products desiring to originate shipments from 
16.30 	Minnesota to a foreign country requiring a phytosanitary certificate or export certificate 
16.31 	must submit an application to the commissioner.

16.32 	Sec. 9. Minnesota Statutes 2014, section 18G.10, subdivision 4, is amended to read:
17.1 		Subd. 4.Phytosanitary and export certificates. An exporter of plants or plant 
17.2 	products desiring to originate shipments from Minnesota to a foreign country requiring 
17.3 	a phytosanitary certificate or export certificate must submit an application to the 
17.4 	commissioner. Application for phytosanitary certificates or export certificates must be 
17.5 	made on forms provided or approved by the commissioner. The commissioner shall may 
17.6 	conduct inspections of plants, plant products, or facilities for persons that have applied for 
17.7 	or intend to apply for a phytosanitary certificate or export certificate from the commissioner. 
17.8 	Inspections must include one or more of the following as requested or required:
17.9 	(1) an inspection of the plants or plant products intended for export under a 
17.10 	phytosanitary certificate or export certificate;
17.11 	(2) field inspections of growing plants to determine presence or absence of plant 
17.12 	diseases, if necessary;
17.13 	(3) laboratory diagnosis for presence or absence of plant diseases, if necessary;
17.14 	(4) observation and evaluation of procedures and facilities utilized in handling 
17.15 	plants and plant products, if necessary; and
17.16 	(5) review of United States Department of Agriculture, Federal Grain Inspection 
17.17 	Service Official Export Grain Inspection Certificate logs.
17.18 	The commissioner may issue a phytosanitary certificate or export certificate if the 
17.19 	plants or plant products satisfactorily meet the requirements of the importing foreign 
17.20 	country and the United States Department of Agriculture requirements. The requirements 
17.21 	of the destination countries must be met by the applicant.

17.22 	Sec. 10. Minnesota Statutes 2014, section 18H.02, subdivision 20, is amended to read:
17.23 		Subd. 20.Nursery stock. "Nursery stock" means a plant intended for planting or 
17.24 	propagation, including, but not limited to, trees, shrubs, vines, perennials, biennials, grafts, 
17.25 	cuttings, and buds that may be sold for propagation, whether cultivated or wild, and all 
17.26 	viable parts of these plants. Nursery stock does not include:
17.27 	(1) field and forage crops or sod;
17.28 	(2) the seeds of grasses, cereal grains, vegetable crops, and flowers;
17.29 	(3) vegetable plants, bulbs, or tubers;
17.30 	(4) cut flowers, unless stems or other portions are intended for propagation;
17.31 	(5) annuals; or
17.32 	(6) Christmas trees.

17.33 	Sec. 11. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision 
17.34 	to read:
18.1 		Subd. 32a.Sod. "Sod" means the upper portion of soil that contains the roots of 
18.2 	grasses and the living grass plants.

18.3 	Sec. 12. Minnesota Statutes 2014, section 18H.02, is amended by adding a subdivision 
18.4 	to read:
18.5 		Subd. 35.Tropical plant. "Tropical plant" means a plant that has a United States 
18.6 	Department of Agriculture hardiness zone designation of zone 6 or greater, or an annual 
18.7 	minimum hardiness temperature of -9 degrees Fahrenheit.

18.8 	Sec. 13. Minnesota Statutes 2014, section 18H.06, subdivision 2, is amended to read:
18.9 		Subd. 2.Occasional sales. (a) An individual may offer nursery stock for sale and be 
18.10 	exempt from the requirement to obtain a nursery stock dealer certificate if:
18.11 	(1) the gross sales of all nursery stock in a calendar year do not exceed $2,000;
18.12 	(2) all nursery stock sold or distributed by the individual is intended for planting 
18.13 	in Minnesota;
18.14 	(3) all nursery stock purchased or procured for resale or distribution was grown in 
18.15 	Minnesota and has been certified by the commissioner; and
18.16 	(4) conducts sales or distributions of nursery stock on ten or fewer days in a calendar 
18.17 	year.
18.18 	(b) The commissioner may prescribe the conditions of the exempt nursery sales under 
18.19 	this subdivision and may conduct routine inspections of the nursery stock offered for sale.

18.20 	Sec. 14. Minnesota Statutes 2014, section 18J.01, is amended to read:
18.21 	18J.01 DEFINITIONS.
18.22 	(a) The definitions in sections 18G.02, 18H.02, 18K.03, 27.01, 223.16, 231.01, 
18.23 	and 232.21 apply to this chapter.
18.24 	(b) For purposes of this chapter, "associated rules" means rules adopted under this 
18.25 	chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, or sections 21.80 to 21.92.

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

18.27 	Sec. 15. Minnesota Statutes 2014, section 18J.02, is amended to read:
18.28 	18J.02 DUTIES OF COMMISSIONER.
18.29 	The commissioner shall administer and enforce this chapter, chapters 18G, 18H, 
18.30 	18K, 27, 223, 231, and 232; sections 21.80 to 21.92; and associated rules.

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

19.1 	Sec. 16. Minnesota Statutes 2014, section 18J.03, is amended to read:
19.2 	18J.03 CIVIL LIABILITY.
19.3 	A person regulated by this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 232, 
19.4 	or sections 21.80 to 21.92, is civilly liable for any violation of one of those statutes or 
19.5 	associated rules by the person's employee or agent.

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

19.7 	Sec. 17. Minnesota Statutes 2014, section 18J.04, subdivision 1, is amended to read:
19.8 		Subdivision 1.Access and entry. The commissioner, upon presentation of official 
19.9 	department credentials, must be granted immediate access at reasonable times to sites 
19.10 	where a person manufactures, distributes, uses, handles, disposes of, stores, or transports 
19.11 	seeds, plants, grain, household goods, general merchandise, produce, or other living or 
19.12 	nonliving products or other objects regulated under chapter 18G, 18H, 18K, 27, 223, 231, 
19.13 	or 232; sections 21.80 to 21.92; or associated rules.

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

19.15 	Sec. 18. Minnesota Statutes 2014, section 18J.04, subdivision 2, is amended to read:
19.16 		Subd. 2.Purpose of entry. (a) The commissioner may enter sites for:
19.17 	(1) inspection of inventory and equipment for the manufacture, storage, handling, 
19.18 	distribution, disposal, or any other process regulated under chapter 18G, 18H, 18K, 27, 
19.19 	223, 231, or 232; sections 21.80 to 21.92; or associated rules;
19.20 	(2) sampling of sites, seeds, plants, products, grain, household goods, general 
19.21 	merchandise, produce, or other living or nonliving objects that are manufactured, stored, 
19.22 	distributed, handled, or disposed of at those sites and regulated under chapter 18G, 18H, 
19.23 	18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;
19.24 	(3) inspection of records related to the manufacture, distribution, storage, handling, 
19.25 	or disposal of seeds, plants, products, grain, household goods, general merchandise, 
19.26 	produce, or other living or nonliving objects regulated under chapter 18G, 18H, 18K, 27, 
19.27 	223, 231, or 232; sections 21.80 to 21.92; or associated rules;
19.28 	(4) investigating compliance with chapter 18G, 18H, 18K, 27, 223, 231, or 232; 
19.29 	sections 21.80 to 21.92; or associated rules; or
19.30 	(5) other purposes necessary to implement chapter 18G, 18H, 18K, 27, 223, 231, or 
19.31 	232; sections 21.80 to 21.92; or associated rules.
19.32 	(b) The commissioner may enter any public or private premises during or after 
19.33 	regular business hours without notice of inspection when a suspected violation of chapter 
20.1 	18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules may 
20.2 	threaten public health or the environment.

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

20.4 	Sec. 19. Minnesota Statutes 2014, section 18J.04, subdivision 3, is amended to read:
20.5 		Subd. 3.Notice of inspection samples and analyses. (a) The commissioner shall 
20.6 	provide the owner, operator, or agent in charge with a receipt describing any samples 
20.7 	obtained. If requested, the commissioner shall split any samples obtained and provide 
20.8 	them to the owner, operator, or agent in charge. If an analysis is made of the samples, 
20.9 	a copy of the results of the analysis must be furnished to the owner, operator, or agent 
20.10 	in charge within 30 days after an analysis has been performed. If an analysis is not 
20.11 	performed, the commissioner must notify the owner, operator, or agent in charge within 30 
20.12 	days of the decision not to perform the analysis.
20.13 	(b) The sampling and analysis must be done according to methods provided for 
20.14 	under applicable provisions of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 
20.15 	21.80 to 21.92; or associated rules. In cases not covered by those sections and methods 
20.16 	or in cases where methods are available in which improved applicability has been 
20.17 	demonstrated the commissioner may adopt appropriate methods from other sources.

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

20.19 	Sec. 20. Minnesota Statutes 2014, section 18J.04, subdivision 4, is amended to read:
20.20 		Subd. 4.Inspection requests by others. (a) A person who believes that a violation 
20.21 	of chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated 
20.22 	rules has occurred may request an inspection by giving notice to the commissioner of the 
20.23 	violation. The notice must be in writing, state with reasonable particularity the grounds 
20.24 	for the notice, and be signed by the person making the request.
20.25 	(b) If after receiving a notice of violation the commissioner reasonably believes that 
20.26 	a violation has occurred, the commissioner shall make a special inspection in accordance 
20.27 	with the provisions of this section as soon as practicable, to determine if a violation has 
20.28 	occurred.
20.29 	(c) An inspection conducted pursuant to a notice under this subdivision may cover 
20.30 	an entire site and is not limited to the portion of the site specified in the notice. If the 
20.31 	commissioner determines that reasonable grounds to believe that a violation occurred 
20.32 	do not exist, the commissioner must notify the person making the request in writing of 
20.33 	the determination.

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

21.2 	Sec. 21. Minnesota Statutes 2014, section 18J.05, subdivision 1, is amended to read:
21.3 		Subdivision 1.Enforcement required. (a) A violation of chapter 18G, 18H, 18K, 27, 
21.4 	223, 231, or 232; sections 21.80 to 21.92; or an associated rule is a violation of this chapter.
21.5 	(b) Upon the request of the commissioner, county attorneys, sheriffs, and other 
21.6 	officers having authority in the enforcement of the general criminal laws must take action 
21.7 	to the extent of their authority necessary or proper for the enforcement of chapter 18G, 
21.8 	18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules or valid 
21.9 	orders, standards, stipulations, and agreements of the commissioner.

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

21.11 	Sec. 22. Minnesota Statutes 2014, section 18J.05, subdivision 2, is amended to read:
21.12 		Subd. 2.Commissioner's discretion. If minor violations of chapter 18G, 18H, 
21.13 	18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules occur or the 
21.14 	commissioner believes the public interest will be best served by a suitable notice of 
21.15 	warning in writing, this section does not require the commissioner to:
21.16 	(1) report the violation for prosecution;
21.17 	(2) institute seizure proceedings; or
21.18 	(3) issue a withdrawal from distribution, stop-sale, or other order.

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

21.20 	Sec. 23. Minnesota Statutes 2014, section 18J.05, subdivision 6, is amended to read:
21.21 		Subd. 6.Agent for service of process. All persons licensed, permitted, registered, 
21.22 	or certified under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or 
21.23 	associated rules must appoint the commissioner as the agent upon whom all legal process 
21.24 	may be served and service upon the commissioner is deemed to be service on the licensee, 
21.25 	permittee, registrant, or certified person.

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

21.27 	Sec. 24. Minnesota Statutes 2014, section 18J.06, is amended to read:
21.28 	18J.06 FALSE STATEMENT OR RECORD.
21.29 	A person must not knowingly make or offer a false statement, record, or other 
21.30 	information as part of:
22.1 	(1) an application for registration, license, certification, or permit under chapter 18G, 
22.2 	18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules;
22.3 	(2) records or reports required under chapter 18G, 18H, 18K, 27, 223, 231, or 232; 
22.4 	sections 21.80 to 21.92; or associated rules; or
22.5 	(3) an investigation of a violation of chapter 18G, 18H, 18K, 27, 223, 231, or 232; 
22.6 	sections 21.80 to 21.92; or associated rules.

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

22.8 	Sec. 25. Minnesota Statutes 2014, section 18J.07, subdivision 3, is amended to read:
22.9 		Subd. 3.Cancellation of registration, permit, license, certification. The 
22.10 	commissioner may cancel or revoke a registration, permit, license, or certification 
22.11 	provided for under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; 
22.12 	or associated rules or refuse to register, permit, license, or certify under provisions of 
22.13 	chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated rules 
22.14 	if the registrant, permittee, licensee, or certified person has used fraudulent or deceptive 
22.15 	practices in the evasion or attempted evasion of a provision of chapter 18G, 18H, 18K, 27, 
22.16 	223, 231, or 232; sections 21.80 to 21.92; or associated rules.

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

22.18 	Sec. 26. Minnesota Statutes 2014, section 18J.07, subdivision 4, is amended to read:
22.19 		Subd. 4.Service of order or notice. (a) If a person is not available for service of an 
22.20 	order, the commissioner may attach the order to the facility, site, seed or seed container, 
22.21 	plant or other living or nonliving object regulated under chapter 18G, 18H, 18K, 27, 223, 
22.22 	231, or 232; sections 21.80 to 21.92; or associated rules and notify the owner, custodian, 
22.23 	other responsible party, or registrant.
22.24 	(b) The seed, seed container, plant, or other living or nonliving object regulated 
22.25 	under chapter 18G, 18H, 18K, 27, 223, 231, or 232; sections 21.80 to 21.92; or associated 
22.26 	rules may not be sold, used, tampered with, or removed until released under conditions 
22.27 	specified by the commissioner, by an administrative law judge, or by a court.

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

22.29 	Sec. 27. Minnesota Statutes 2014, section 18J.07, subdivision 5, is amended to read:
22.30 		Subd. 5.Unsatisfied judgments. (a) An applicant for a license, permit, registration, 
22.31 	or certification under provisions of this chapter, chapter 18G, 18H, 18K, 27, 223, 231, or 
22.32 	232; sections 21.80 to 21.92; or associated rules may not allow a final judgment against 
23.1 	the applicant for damages arising from a violation of those statutes or rules to remain 
23.2 	unsatisfied for a period of more than 30 days.
23.3 	(b) Failure to satisfy, within 30 days, a final judgment resulting from a violation of this 
23.4 	chapter results in automatic suspension of the license, permit, registration, or certification.

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

23.6 	Sec. 28. Minnesota Statutes 2014, section 18J.09, is amended to read:
23.7 	18J.09 CREDITING OF PENALTIES, FEES, AND COSTS.
23.8 	Penalties, cost reimbursements, fees, and other money collected under this chapter 
23.9 	must be deposited into the state treasury and credited to the appropriate nursery and 
23.10 	phytosanitary, industrial hemp, or seed account.

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

23.12 	Sec. 29. Minnesota Statutes 2014, section 18J.11, subdivision 1, is amended to read:
23.13 		Subdivision 1.General violation. Except as provided in subdivisions 2 and, 3, and 
23.14 	4, a person is guilty of a misdemeanor if the person violates this chapter or an order, 
23.15 	standard, stipulation, agreement, or schedule of compliance of the commissioner.

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

23.17 	Sec. 30. Minnesota Statutes 2014, section 18J.11, is amended by adding a subdivision 
23.18 	to read:
23.19 		Subd. 4.Controlled substance offenses. Prosecution under this section does not 
23.20 	preclude prosecution under chapter 152.

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

23.22 	Sec. 31. [18K.01] SHORT TITLE.
23.23 	This chapter may be referred to as the "Industrial Hemp Development Act."

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

23.25 	Sec. 32. [18K.03] DEFINITIONS.
23.26 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
23.27 		Subd. 2.Commissioner. "Commissioner" means the commissioner of agriculture.
24.1 		Subd. 3.Industrial hemp. "Industrial hemp" means the plant Cannabis sativa L. 
24.2 	and any part of the plant, whether growing or not, with a delta-9 tetrahydrocannabinol 
24.3 	concentration of not more than 0.3 percent on a dry weight basis. Industrial hemp is not 
24.4 	marijuana as defined in section 152.01, subdivision 9.
24.5 		Subd. 4.Marijuana. "Marijuana" has the meaning given in section 152.01, 
24.6 	subdivision 9.

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

24.8 	Sec. 33. [18K.035] PILOT PROGRAM; OTHER RESEARCH AUTHORIZED.
24.9 		Subdivision 1.Authorized activity. The commissioner may grow or cultivate 
24.10 	industrial hemp pursuant to a pilot program administered by the commissioner to study 
24.11 	the growth, cultivation, or marketing of industrial hemp. The commissioner may: (1) 
24.12 	authorize institutions of higher education to grow or cultivate industrial hemp as part 
24.13 	of the commissioner's pilot program or as is necessary to perform other agricultural, 
24.14 	renewable energy, or academic research; and (2) contract with public or private entities for 
24.15 	testing or other activities authorized under this subdivision. Authorized activity under this 
24.16 	section may include collecting seed from wild hemp sources.
24.17 		Subd. 2.Site registration. Before growing or cultivating industrial hemp pursuant 
24.18 	to this section, each site must be registered with and certified by the commissioner. A 
24.19 	person must register each site annually in the form prescribed by the commissioner and 
24.20 	must pay the annual registration and certification fee established by the commissioner in 
24.21 	accordance with section 16A.1285, subdivision 2.
24.22 		Subd. 3.Rulemaking. The commissioner may adopt rules that govern the pilot 
24.23 	program pursuant to this section and Public Law 113-79.

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

24.25 	Sec. 34. [18K.04] AGRICULTURAL CROP; POSSESSION AUTHORIZED.
24.26 	Industrial hemp is an agricultural crop in this state. A person may possess, transport, 
24.27 	process, sell, or buy industrial hemp that is grown pursuant to this chapter.

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

24.29 	Sec. 35. [18K.05] LICENSING.
24.30 		Subdivision 1.Requirement; issuance; presumption. (a) A person must obtain a 
24.31 	license from the commissioner before growing industrial hemp for commercial purposes. 
24.32 	A person must apply to the commissioner in the form prescribed by the commissioner and 
25.1 	must pay the annual registration and inspection fee established by the commissioner in 
25.2 	accordance with section 16A.1285, subdivision 2. The license application must include 
25.3 	the name and address of the applicant and the legal description of the land area or areas 
25.4 	where industrial hemp will be grown by the applicant.
25.5 	(b) When an applicant has paid the fee and completed the application process to the 
25.6 	satisfaction of the commissioner, the commissioner must issue a license which is valid 
25.7 	until December 31 of the year of application.
25.8 	(c) A person licensed under this section is presumed to be growing industrial hemp 
25.9 	for commercial purposes.
25.10 		Subd. 2.Background check; data classification. The commissioner must require 
25.11 	each first-time applicant for a license to submit to a background investigation conducted 
25.12 	by the Bureau of Criminal Apprehension as a condition of licensure. As part of the 
25.13 	background investigation, the Bureau of Criminal Apprehension must conduct criminal 
25.14 	history checks of Minnesota records and is authorized to exchange fingerprints with the 
25.15 	United States Department of Justice, Federal Bureau of Investigation for the purpose of a 
25.16 	criminal background check of the national files. The cost of the investigation must be paid 
25.17 	by the applicant. Criminal history records provided to the commissioner under this section 
25.18 	must be treated as private data on individuals, as defined in section 13.02, subdivision 12.
25.19 		Subd. 3.Federal requirements. The applicant must demonstrate to the satisfaction 
25.20 	of the commissioner that the applicant has complied with all applicable federal 
25.21 	requirements pertaining to the production, distribution, and sale of industrial hemp.

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

25.23 	Sec. 36. [18K.06] ANNUAL REPORT; SALES NOTIFICATION.
25.24 	(a) Annually, a licensee must file with the commissioner:
25.25 	(1) documentation demonstrating to the commissioner's satisfaction that the seeds 
25.26 	planted by the licensee are of a type and variety that contain no more than three-tenths of 
25.27 	one percent delta-9 tetrahydrocannabinol; and
25.28 	(2) a copy of any contract to grow industrial hemp.
25.29 	(b) Within 30 days, a licensee must notify the commissioner of each sale or 
25.30 	distribution of industrial hemp grown by the licensee including, but not limited to, the 
25.31 	name and address of the person receiving the industrial hemp and the amount of industrial 
25.32 	hemp sold or distributed.

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

26.1 	Sec. 37. [18K.07] RULEMAKING.
26.2 	(a) The commissioner shall adopt rules governing the production, testing, and 
26.3 	licensing of industrial hemp.
26.4 	(b) Rules adopted under paragraph (a) must include, but not be limited to, provisions 
26.5 	governing:
26.6 	(1) the supervision and inspection of industrial hemp during its growth and harvest;
26.7 	(2) the testing of industrial hemp to determine delta-9 tetrahydrocannabinol levels;
26.8 	(3) the use of background checks results required under section 18K.05 to approve 
26.9 	or deny a license application; and
26.10 	(4) any other provision or procedure necessary to carry out the purposes of this 
26.11 	chapter.
26.12 	(c) Rules issued under this section must be consistent with federal law regarding 
26.13 	the production, distribution, and sale of industrial hemp.

26.14 	EFFECTIVE DATE. This section is effective the day after the federal government 
26.15 	authorizes the commercial production of industrial hemp in this country.

26.16 	Sec. 38. [18K.08] FEES.
26.17 	Fees collected under this chapter must be credited to the industrial hemp account, 
26.18 	which is hereby established in the agricultural fund in the state treasury. Interest earned 
26.19 	in the account accrues to the account. Funds in the industrial hemp account are annually 
26.20 	appropriated to the commissioner to implement and enforce this chapter.

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

26.22 	Sec. 39. [18K.09] DEFENSE FOR POSSESSION OF MARIJUANA. 
26.23 	It is an affirmative defense to a prosecution for the possession of marijuana under 
26.24 	chapter 152 if:
26.25 	(1) the defendant possesses industrial hemp grown pursuant to this chapter; or
26.26 	(2) the defendant has a valid controlled substance registration from the United States 
26.27 	Department of Justice, Drug Enforcement Administration, if required under federal law.

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

26.29 	Sec. 40. Minnesota Statutes 2014, section 21.81, is amended by adding a subdivision 
26.30 	to read:
27.1 		Subd. 1a.Address. "Address" means the complete primary mailing address of the 
27.2 	labeler or the person or firm selling seed. A complete address includes the street address, 
27.3 	post office box, or rural route, and city, state, and zip code or postal code.

27.4 	Sec. 41. Minnesota Statutes 2014, section 21.81, is amended by adding a subdivision 
27.5 	to read:
27.6 		Subd. 27a.Total viable. "Total viable" means the sum of the germination 
27.7 	percentage, plus hard seeds, dormant seeds, or both.

27.8 	Sec. 42. Minnesota Statutes 2014, section 21.82, subdivision 2, is amended to read:
27.9 		Subd. 2.Content. For agricultural, vegetable, flower, or wildflower seeds offered 
27.10 	for sale as agricultural seed, except as otherwise provided in subdivisions 4, 5, and 6, the 
27.11 	label must contain:
27.12 	(a) The name of the kind or kind and variety for each seed component in excess 
27.13 	of five percent of the whole and the percentage by weight of each in order of its 
27.14 	predominance. The commissioner shall by rule designate the kinds that are required to be 
27.15 	labeled as to variety. If the variety of those kinds generally labeled as to variety is not 
27.16 	stated and it is not required to be stated, the label shall show the name of the kind and the 
27.17 	words: "Variety not stated." The heading "pure seed" must be indicated on the seed label 
27.18 	in close association with other required label information.
27.19 	(1) The percentage that is hybrid shall be at least 95 percent of the percentage of pure 
27.20 	seed shown unless the percentage of pure seed which is hybrid seed is shown separately. 
27.21 	If two or more kinds or varieties are present in excess of five percent and are named on 
27.22 	the label, each that is hybrid shall be designated as hybrid on the label. Any one kind or 
27.23 	kind and variety that has pure seed which is less than 95 percent but more than 75 percent 
27.24 	hybrid seed as a result of incompletely controlled pollination in a cross shall be labeled to 
27.25 	show the percentage of pure seed that is hybrid seed or a statement such as "contains from 
27.26 	75 percent to 95 percent hybrid seed." No one kind or variety of seed shall be labeled as 
27.27 	hybrid if the pure seed contains less than 75 percent hybrid seed. The word hybrid shall be 
27.28 	shown on the label in conjunction with the kind.
27.29 	(2) Blends shall be listed on the label using the term "blend" in conjunction with 
27.30 	the kind.
27.31 	(3) Mixtures shall be listed on the label using the term "mixture," "mix," or "mixed."
27.32 	(b) Lot number or other lot identification.
27.33 	(c) Origin, if known, or that the origin is unknown.
28.1 	(d) Percentage by weight of all weed seeds present. This percentage may not exceed 
28.2 	one percent. The heading "weed seed" must be indicated on the seed label in close 
28.3 	association with other required label information.
28.4 	(e) Name and rate of occurrence per pound of each kind of restricted noxious weed 
28.5 	seeds present. They must be listed under the heading "noxious weed seeds" in close 
28.6 	association with other required label information.
28.7 	(f) Percentage by weight of seeds other than those kinds and varieties required 
28.8 	to be named on the label. They must be listed under the heading "other crop" in close 
28.9 	association with other required label information.
28.10 	(g) Percentage by weight of inert matter. The heading "inert matter" must be 
28.11 	indicated on the seed label in close association with other required label information.
28.12 	(h) Net weight of contents, to appear on either the container or the label.
28.13 	(i) For each named kind or variety of seed:
28.14 	(1) percentage of germination, exclusive of hard or dormant seed or both;
28.15 	(2) percentage of hard or dormant seed or both, if present; and
28.16 	(3) the calendar month and year the percentages were determined by test or the 
28.17 	statement "sell by (month and year)" which may not be more than 12 months from the 
28.18 	date of test, exclusive of the month of test.
28.19 	The headings for "germination" and "hard seed or dormant seed" percentages must be 
28.20 	stated separately on the seed label. A separate percentage derived from combining these 
28.21 	percentages may also be stated on the seed label, but the heading for this percentage must 
28.22 	be "total germination and hard seed or dormant seed when applicable." They must not be 
28.23 	stated as "total live seed," "total germination," or in any other unauthorized manner. as 
28.24 	"total viable."
28.25 	(j) Name and address of the person who labeled the seed or who sells the seed within 
28.26 	this state, or a code number which has been registered with the commissioner.

28.27 	Sec. 43. Minnesota Statutes 2014, section 21.82, subdivision 4, is amended to read:
28.28 		Subd. 4.Hybrid seed corn. For hybrid seed corn purposes a label must contain:
28.29 	(1) a statement indicating the number of seeds in the container may be listed along 
28.30 	with or in lieu of the net weight of contents; and
28.31 	(2) for each variety of hybrid seed field corn, the day classification as determined 
28.32 	by the originator or owner. The day classification must approximate the number of days 
28.33 	of growing season necessary from emergence of the corn plant above ground to relative 
28.34 	maturity and must conform to the day classification established by the director of be 
29.1 	within three days of maturity ratings determined in comparative trials by the Minnesota 
29.2 	agricultural experiment station for the appropriate zone.

29.3 	Sec. 44. Minnesota Statutes 2014, section 21.85, subdivision 2, is amended to read:
29.4 		Subd. 2.Seed laboratory. (a) The commissioner shall establish and maintain a seed 
29.5 	laboratory for seed testing, employing necessary agents and assistants to administer and 
29.6 	enforce sections 21.80 to 21.92, who shall be governed by chapter 43A.
29.7 	(b) The laboratory procedures for testing official seed samples are the procedures 
29.8 	set forth in the Rules for Testing Seeds that is published annually by the Association of 
29.9 	Official Seed Analysts. If a laboratory procedure rule does not exist for a particular type 
29.10 	of seed, then laboratory procedures from other recognized seed testing sources may be 
29.11 	used, including procedures under the Code of Federal Regulations, title 7, part 201, or 
29.12 	the International Rules for Testing Seeds.

29.13 	Sec. 45. Minnesota Statutes 2014, section 21.85, is amended by adding a subdivision 
29.14 	to read:
29.15 		Subd. 15.Prohibited and restricted seeds. The commissioner shall determine 
29.16 	species that are considered prohibited weed seeds and restricted noxious weed seeds and 
29.17 	the allowable rate of occurrence of restricted noxious weed seeds.

29.18 	Sec. 46. Minnesota Statutes 2014, section 21.89, subdivision 2, is amended to read:
29.19 		Subd. 2.Permits; issuance and revocation. The commissioner shall issue a permit 
29.20 	to the initial labeler of agricultural, vegetable, flower, and wildflower seeds which are sold 
29.21 	for use in Minnesota and which conform to and are labeled under sections 21.80 to 21.92. 
29.22 	The categories of permits are as follows:
29.23 	(1) for initial labelers who sell 50,000 pounds or less of agricultural seed each 
29.24 	calendar year, an annual permit issued for a fee established in section 21.891, subdivision 
29.25 	2, paragraph (b);
29.26 	(2) for initial labelers who sell vegetable, flower, and wildflower seed packed for 
29.27 	use in home gardens or household plantings, and initial labelers who sell native grasses 
29.28 	and wildflower seed in commercial or agricultural quantities, an annual permit issued for 
29.29 	a fee established in section 21.891, subdivision 2, paragraph (c), based upon the gross 
29.30 	sales from the previous year; and
29.31 	(3) for initial labelers who sell more than 50,000 pounds of agricultural seed 
29.32 	each calendar year, a permanent permit issued for a fee established in section 21.891, 
29.33 	subdivision 2, paragraph (d).
30.1 	In addition, the person shall furnish to the commissioner an itemized statement of all 
30.2 	seeds sold in Minnesota for the periods established by the commissioner. This statement 
30.3 	shall be delivered, along with the payment of the fee, based upon the amount and type 
30.4 	of seed sold, to the commissioner no later than 30 days after the end of each reporting 
30.5 	period. Any person holding a permit shall show as part of the analysis labels or invoices 
30.6 	on all agricultural, vegetable, flower, wildflower, tree, or shrub seeds all information the 
30.7 	commissioner requires. The commissioner may revoke any permit in the event of failure 
30.8 	to comply with applicable laws and rules.

30.9 	Sec. 47. [28A.152] COTTAGE FOODS EXEMPTION.
30.10 		Subdivision 1.Licensing provisions applicability. (a) The licensing provisions of 
30.11 	sections 28A.01 to 28A.16 do not apply to the following:
30.12 	(1) an individual who prepares and sells food that is not potentially hazardous food, 
30.13 	as defined in Minnesota Rules, part 4626.0020, subpart 62, if the following requirements 
30.14 	are met:
30.15 	(i) the prepared food offered for sale under this clause is labeled to accurately reflect 
30.16 	the name and address of the person preparing and selling the food, the date on which the 
30.17 	food was prepared, and the ingredients and any possible allergens; and 
30.18 	(ii) the individual displays at the point of sale a clearly legible sign or placard stating: 
30.19 	"These products are homemade and not subject to state inspection"; and
30.20 	(2) an individual who prepares and sells home-processed and home-canned food 
30.21 	products if the following requirements are met:
30.22 	(i) the products are pickles, vegetables, or fruits having an equilibrium pH value of 
30.23 	4.6 or lower;
30.24 	(ii) the products are home-processed and home-canned in Minnesota;
30.25 	(iii) the individual displays at the point of sale a clearly legible sign or placard 
30.26 	stating: "These canned goods are homemade and not subject to state inspection"; and
30.27 	(iv) each container of the product sold or offered for sale under this clause is 
30.28 	accurately labeled to provide the name and address of the person who processed and 
30.29 	canned the goods, the date on which the goods were processed and canned, and ingredients 
30.30 	and any possible allergens.
30.31 	(b) An individual who qualifies for an exemption under paragraph (a), clause (2), is 
30.32 	also exempt from the provisions of sections 31.31 and 31.392.
30.33 		Subd. 2.Direct sales to consumers. (a) An individual qualifying for an exemption 
30.34 	under subdivision 1 may sell the exempt food:
30.35 	(1) directly to the ultimate consumer;
31.1 	(2) at a community event or farmers' market; or
31.2 	(3) directly from the individual's home to the consumer, to the extent allowed by 
31.3 	local ordinance.
31.4 	(b) If an exempt food product will be delivered to the ultimate consumer upon sale 
31.5 	of the food product, the individual who prepared the food product must be the person who 
31.6 	delivers the food product to the ultimate consumer.
31.7 	(c) Food products exempt under subdivision 1, paragraph (a), clause (2), may not be 
31.8 	sold outside of Minnesota.
31.9 	(d) Food products exempt under subdivision 1 may be sold over the Internet but 
31.10 	must be delivered directly to the ultimate consumer by the individual who prepared the 
31.11 	food product. The statement "These products are homemade and not subject to state 
31.12 	inspection" must be displayed on the Web site that offers the exempt foods for purchase. 
31.13 		Subd. 3.Limitation on sales. An individual selling exempt foods under this section 
31.14 	is limited to total sales with gross receipts of $18,000 or less in a calendar year. 
31.15 		Subd. 4.Registration. Before an individual sells food that is exempt under this 
31.16 	section, the individual must register with the commissioner on a form prescribed by the 
31.17 	commissioner. The individual must renew the individual's registration every three years. 
31.18 	The registration fee is $50. An individual with $5,000 or less in annual gross receipts from 
31.19 	the sale of exempt food under this section is not required to pay the registration fee.
31.20 		Subd. 5.Training. An individual who prepares and sells exempt food under 
31.21 	subdivision 1 must complete a safe food handling training course that is approved by the 
31.22 	commissioner. The training shall not exceed eight hours and must be completed every 
31.23 	three years while the individual is registered under subdivision 4.
31.24 		Subd. 6.Local ordinances. This section does not preempt the application of any 
31.25 	business licensing requirement or sanitation, public health, or zoning ordinance of a 
31.26 	political subdivision.
31.27 		Subd. 7.Account established. A cottage foods account is created as a separate 
31.28 	account in the special revenue fund in the state treasury for depositing money received 
31.29 	by the commissioner under this section. Money in the account, including interest, is 
31.30 	appropriated to the commissioner for costs under this section.

31.31 	Sec. 48. [41A.13] DEFINITIONS.
31.32 	(a) For the purposes of sections 41A.13 to 41A.17, the terms defined in this section 
31.33 	have the meanings given them.
31.34 	(b) "Advanced biofuels" has the meaning given in section 239.051, subdivision 1a.
32.1 	(c) "Biomass thermal production" means the generation of energy for commercial 
32.2 	heat or industrial process heat from a cellulosic material or other material composed of 
32.3 	forestry or agricultural feedstocks for a new or expanding capacity facility or a facility that 
32.4 	is displacing existing use of fossil fuel after the effective date of this section.
32.5 	(d) "Cellulosic biomass" means material primarily made up of cellulose, 
32.6 	hemicellulose, or lingnin, or a combination of those ingredients.
32.7 	(e) "Cellulosic sugar" means sugar derived from cellulosic biomass from agricultural 
32.8 	or forestry resources.
32.9 	(f) "Commissioner" means the commissioner of agriculture.
32.10 	(g) "Cover crops" means grasses, legumes, forbs, or other herbaceous plants that are 
32.11 	known to be noninvasive and not listed as a noxious weed in Minnesota and that are either 
32.12 	interseeded into living cash crops or planted on agricultural fields during fallow periods 
32.13 	for seasonal cover and conservation purposes.
32.14 	(h) "MMbtu" means one million British thermal units.
32.15 	(i) "Perennial crops" means agriculturally produced plants that are known to be 
32.16 	noninvasive and not listed as a noxious weed in Minnesota and that have a life cycle of at 
32.17 	least three years at the location where the plants are being cultivated. Biomass from alfalfa 
32.18 	produced in a two-year rotation shall be considered a perennial crop.
32.19 	(j) "Renewable chemical" means a chemical with biobased content as defined in 
32.20 	section 41A.105, subdivision 1a.

32.21 	Sec. 49. [41A.14] ADVANCED BIOFUEL PRODUCTION INCENTIVE.
32.22 	(a) A facility eligible for payment under this program must source at least 80 percent 
32.23 	raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, 
32.24 	raw materials may be sourced from within a 100-mile radius. Raw materials must be from 
32.25 	agricultural or forestry sources or from solid waste. The production facility must be 
32.26 	located in Minnesota, must begin production at a specific location by June 30, 2025, and 
32.27 	must not begin operation above 95,000 MMbtu of annual biofuel production before July 1, 
32.28 	2015. Eligible facilities include existing companies and facilities that are adding advanced 
32.29 	biofuel production capacity, or retrofitting existing capacity, as well as new companies 
32.30 	and facilities. Production of conventional corn ethanol and conventional biodiesel is not 
32.31 	eligible. Advanced biofuel facilities must produce at least 30,000 MMbtu a year to be 
32.32 	eligible for the program.
32.33 	(b) The commissioner shall make payments to eligible producers of advanced 
32.34 	biofuel. For the purpose of this section, an entity that holds a controlling interest in more 
32.35 	than one advanced biofuel facility is considered a single eligible producer. The amount 
33.1 	of the payment for each eligible producer's annual production is $2.1053 per MMbtu 
33.2 	for advanced biofuel production from cellulosic biomass, and $1.053 per MMbtu for 
33.3 	advanced biofuel production from sugar or starch at a specific location for ten years after 
33.4 	the start of production. Cellulosic biofuel facilities utilizing crop residues, other than 
33.5 	cellulosic biofuel using corn kernel fiber, or biogas, shall derive at least ten percent of total 
33.6 	energy production from perennial crops or biomass from cover crops in the first year of 
33.7 	receiving production incentives, and in the third year, at least 30 percent of total energy 
33.8 	production shall be derived from perennial crops or biomass from cover crops, and in the 
33.9 	fifth year, at least 50 percent of total energy production shall be derived from perennial 
33.10 	crops or biomass from cover crops and maintain at least 50 percent for the remainder of 
33.11 	the production incentive payment period. All forestry-derived cellulosic biomass must 
33.12 	be produced using Minnesota state biomass harvesting guidelines or the equivalent. 
33.13 	All biomass from brushlands must be produced using Minnesota brushland harvesting 
33.14 	biomass harvest guidelines or the equivalent. Forestry-derived cellulosic biomass that 
33.15 	comes from land parcels greater than 160 acres must be certified by the Forest Stewardship 
33.16 	Council, Sustainable Forestry Initiative, or American Tree Farm System. Uncertified land 
33.17 	from parcels of 160 acres or less and federal land must be harvested by a  logger who has 
33.18 	completed training for biomass harvesting from the Minnesota logger education program 
33.19 	or the equivalent and have a forest stewardship plan.
33.20 	(c) An eligible producer who utilizes agricultural cellulosic biomass must submit a 
33.21 	responsible biomass sourcing plan for approval by the commissioner prior to applying for 
33.22 	payments under this section. The commissioner shall make the plan publicly available. 
33.23 	The plan must:
33.24 	(1) provide a detailed explanation for how agricultural cellulosic biomass will be 
33.25 	produced and managed in a way that preserves soil quality, does not increase soil and 
33.26 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
33.27 	on wildlife habitat, and reduces greenhouse gas emissions;
33.28 	(2) include the producer's approach to verifying that biomass suppliers are following 
33.29 	the plan;
33.30 	(3) discuss how new technologies and practices that are not yet commercially viable 
33.31 	may be encouraged and adopted during the life of the facility, and how the producer will 
33.32 	encourage continuous improvement during the life of the project;
33.33 	(4) include specific numeric goals and timelines for making progress;
33.34 	(5) require agronomic practices that result in a positive NRCS Soil Conditioning 
33.35 	Index score for acres from which biomass from corn stover will be harvested; and
34.1 	(6) include biennial soil sampling to verify maintained or increased levels of soil 
34.2 	organic matter.
34.3 	(d) An eligible producer who utilizes agricultural cellulosic biomass and receives 
34.4 	payments under this section shall submit an annual report on the producer's responsible 
34.5 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
34.6 	include data on progress made by the producer in meeting specific goals laid out in the 
34.7 	plan. The commissioner shall make the report publicly available. The commissioner 
34.8 	shall perform an annual review of submitted reports and make a determination whether 
34.9 	the producer is following the plan and meeting the criteria in paragraph (c) based on the 
34.10 	reports submitted. The commissioner may take appropriate steps, including reducing or 
34.11 	ceasing payments until the producer is in compliance with the plan.
34.12 	(e) No payments shall be made for advanced biofuel production that occurs after 
34.13 	June 30, 2035, for those eligible biofuel producers under paragraph (b). An eligible 
34.14 	producer of advanced biofuel shall not transfer the producer's eligibility for payments 
34.15 	under this section to an advanced biofuel facility at a different location.
34.16 	(f) Total payments under this section to an eligible biofuel producer in a fiscal year 
34.17 	may not exceed the amount necessary for 2,850,000 MMbtu of biofuel production. Total 
34.18 	payments under this section to all eligible biofuel producers in a fiscal year may not 
34.19 	exceed the amount necessary for 17,100,000 MMbtu of biofuel production.
34.20 	(g) By the last day of October, January, April, and July, each eligible biofuel producer 
34.21 	shall file a claim for payment for advanced biofuel production during the preceding three 
34.22 	calendar months. An eligible biofuel producer that files a claim under this paragraph shall 
34.23 	include a statement of the eligible biofuel producer's total advanced biofuel production 
34.24 	in Minnesota during the quarter covered by the claim. For each claim and statement of 
34.25 	total advanced biofuel production filed under this paragraph, the volume of advanced 
34.26 	biofuel production must be examined by an independent certified public accountant firm 
34.27 	licensed under chapter 326A, in accordance with Statements on Standards for Attestation 
34.28 	Engagements established by the American Institute of Certified Public Accountants.
34.29 	(h) Payments must be made November 15, February 15, May 15, and August 15. 
34.30 	A separate payment must be made for each claim filed.
34.31 	(i) Any producer that ceases production for any reason is ineligible to receive 
34.32 	payments under the program until they begin producing again.
34.33 	(j) Renewable chemical production for which payment has been received under 
34.34 	section 41A.15, and biomass thermal production for which payment has been received 
34.35 	under section 41A.16, is not eligible for payment under this section.

35.1 	Sec. 50. [41A.15] RENEWABLE CHEMICAL PRODUCTION INCENTIVE.
35.2 	(a) A facility eligible for payment under this program must source at least 80 
35.3 	percent biobased content, as defined in section 41A.105, subdivision 1a, clause (1), 
35.4 	from Minnesota. If a facility is sited 50 miles or less from the state border, biobased 
35.5 	content may be sourced from within a 100-mile radius. Biobased content must be from 
35.6 	agricultural or forestry sources or from solid waste. The production facility must be 
35.7 	located in Minnesota, must begin production at a specific location by June 30, 2025, and 
35.8 	must not begin production of 3,000,000 pounds of chemicals annually before January 
35.9 	1, 2015. Eligible facilities include existing companies and facilities that are adding 
35.10 	production capacity, or retrofitting existing capacity, as well as new companies and 
35.11 	facilities. Renewable chemical facilities must produce at least 3,000,000 pounds per year 
35.12 	to be eligible for the program. Renewable chemicals produced through processes that are 
35.13 	fully commercial before January 1, 2000, are not eligible.
35.14 	(b) The commissioner shall make payments to eligible producers of renewable 
35.15 	chemicals located in the state. For the purpose of this subdivision, an entity that holds a 
35.16 	controlling interest in more than one renewable chemical production facility is considered 
35.17 	a single eligible producer. The amount of the payment for each producer's annual 
35.18 	production is $0.03 per pound of sugar-derived renewable chemical, $0.03 per pound of 
35.19 	cellulosic sugar, and $0.06 per pound of cellulosic-derived renewable chemical produced at 
35.20 	a specific location for ten years after the start of production. All forestry-derived cellulosic 
35.21 	biomass must be produced using Minnesota state biomass harvesting guidelines or the 
35.22 	equivalent. All cellulosic biomass from brushlands must be produced using Minnesota 
35.23 	brushland harvesting biomass harvest guidelines or the equivalent. Forestry-derived 
35.24 	cellulosic biomass that comes from land parcels greater than 160 acres must be certified 
35.25 	by the Forest Stewardship Council, Sustainable Forestry Initiative, or American Tree 
35.26 	Farm System. Uncertified land from parcels of 160 acres or less and federal land must 
35.27 	be harvested by a logger who has completed training for biomass harvesting from the 
35.28 	Minnesota logger education program or the equivalent and have a forest stewardship plan. 
35.29 	An eligible facility producing renewable chemicals using agricultural cellulosic biomass 
35.30 	is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural 
35.31 	biomass that is derived from perennial crops or from acres where cover crops are used.
35.32 	(c) An eligible producer who utilizes agricultural cellulosic biomass must submit a 
35.33 	responsible biomass sourcing plan to the commissioner prior to applying for payments 
35.34 	under this section. The plan must:
35.35 	(1) provide a detailed explanation for how agricultural cellulosic biomass will be 
35.36 	produced and managed in a way that preserves soil quality, does not increase soil and 
36.1 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
36.2 	on wildlife habitat, and reduces greenhouse gas emissions;
36.3 	(2) include the producer's approach to verifying that biomass suppliers are following 
36.4 	the plan;
36.5 	(3) discuss how new technologies and practices that are not yet commercially viable 
36.6 	may be encouraged and adopted during the life of the facility, and how the producer will 
36.7 	encourage continuous improvement during the life of the project; and
36.8 	(4) include specific numeric goals and timelines for making progress.
36.9 	(d) An eligible producer who utilizes agricultural cellulosic biomass and receives 
36.10 	payments under this section shall submit an annual report on the producer's responsible 
36.11 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
36.12 	include data on progress made by the producer in meeting specific goals laid out in the 
36.13 	plan. The commissioner shall make the report publicly available. The commissioner 
36.14 	shall perform an annual review of submitted reports and is authorized to make a 
36.15 	determination that the producer is not following the plan based on the reports submitted. 
36.16 	The commissioner may take appropriate steps, including reducing or ceasing payments 
36.17 	until the producer is in compliance with the plan.
36.18 	(e) No payments shall be made for renewable chemical production that occurs after 
36.19 	June 30, 2035, for those eligible renewable chemical producers under paragraph (b). An 
36.20 	eligible producer of renewable chemicals shall not transfer the producer's eligibility for 
36.21 	payments under this section to a renewable chemical facility at a different location.
36.22 	(f) Total payments under this section to an eligible renewable chemical producer in 
36.23 	a fiscal year may not exceed the amount necessary for 99,999,999 pounds of renewable 
36.24 	chemical production. Total payments under this section to all eligible renewable chemical 
36.25 	producers in a fiscal year may not exceed the amount necessary for 599,999,999 pounds of 
36.26 	renewable chemical production.
36.27 	(g) By the last day of October, January, April, and July, each eligible renewable 
36.28 	chemical producer shall file a claim for payment for renewable chemical production 
36.29 	during the preceding three calendar months. An eligible renewable chemical producer 
36.30 	that files a claim under this paragraph shall include a statement of the eligible producer's 
36.31 	total renewable chemical production in Minnesota during the quarter covered by the 
36.32 	claim. For each claim and statement of total renewable chemical production filed under 
36.33 	this paragraph, the volume of renewable chemical production must be examined by an 
36.34 	independent certified public accountant firm licensed under chapter 326A, in accordance 
36.35 	with Statements on Standards for Attestation Engagements established by the American 
36.36 	Institute of Certified Public Accountants.
37.1 	(h) Payments must be made November 15, February 15, May 15, and August 15. 
37.2 	A separate payment must be made for each claim filed. 
37.3 	(i) Any producer that ceases production for any reason is ineligible to receive 
37.4 	payments under the program until they begin producing again.
37.5 	(j) Advanced biofuel production for which payment has been received under section 
37.6 	41A.14, and biomass thermal production for which payment has been received under 
37.7 	section 41A.16, is not eligible for payment under this section.

37.8 	Sec. 51. [41A.16] BIOMASS THERMAL PRODUCTION INCENTIVE.
37.9 	(a) A facility eligible for payment under this program must source at least 80 percent 
37.10 	raw materials from Minnesota. If a facility is sited 50 miles or less from the state border, 
37.11 	raw materials may be sourced from within a 100-mile radius. Raw materials must be from 
37.12 	agricultural or forestry sources. The production facility must be located in Minnesota and 
37.13 	must not begin before July 1, 2015. Eligible facilities include existing companies and 
37.14 	facilities that are adding production capacity, or retrofitting existing capacity, as well as 
37.15 	new companies and facilities. Biomass thermal production facilities must produce at least 
37.16 	1,000 MMbtu per year to be eligible for the program.
37.17 	(b) The commissioner shall make payments to eligible producers of biomass thermal 
37.18 	located in the state that have begun production at a specific location by June 30, 2025. 
37.19 	For the purpose of this subdivision, an entity that holds a controlling interest in more than 
37.20 	one biomass thermal production facility is considered a single eligible producer. The 
37.21 	amount of the payment for each producer's annual production is $5.00 per MMbtu of 
37.22 	biomass thermal production produced at a specific location for ten years after the start of 
37.23 	production. All forestry-derived cellulosic biomass must be produced using Minnesota 
37.24 	state biomass harvesting guidelines or the equivalent. All biomass from brushland must 
37.25 	be produced using Minnesota brushland harvesting biomass guidelines or the equivalent. 
37.26 	Forestry-derived cellulosic biomass that comes from land parcels greater than 160 acres 
37.27 	must be certified by the Forest Stewardship Council, the Sustainable Forestry Initiative, or 
37.28 	American Tree Farm System. Uncertified land from parcels of 160 acres or less and federal 
37.29 	land must be harvested by a logger who has completed training for biomass harvesting from 
37.30 	the Minnesota logger education program or the equivalent and have a forest stewardship 
37.31 	plan. An eligible facility producing biomass thermal using agricultural cellulosic biomass 
37.32 	is eligible for a 20 percent bonus payment for each MMbtu produced from agricultural 
37.33 	biomass that is derived from perennial crops or from acres where cover crops are used.
38.1 	(c) An eligible producer who utilizes agricultural cellulosic biomass must submit a 
38.2 	responsible biomass sourcing plan to the commissioner prior to applying for payments 
38.3 	under this section. The plan must:
38.4 	(1) provide a detailed explanation for how agricultural cellulosic biomass will be 
38.5 	produced and managed in a way that preserves soil quality, does not increase soil and 
38.6 	nutrient runoff, avoids introduction of harmful invasive species, limits negative impacts 
38.7 	on wildlife habitat, and reduces greenhouse gas emissions;
38.8 	(2) include the producer's approach to verifying that biomass suppliers are following 
38.9 	the plan;
38.10 	(3) discuss how new technologies and practices that are not yet commercially viable 
38.11 	may be encouraged and adopted during the life of the facility, and how the producer will 
38.12 	encourage continuous improvement during the life of the project; and
38.13 	(4) include specific numeric goals and timelines for making progress.
38.14 	(d) An eligible producer who utilizes agricultural cellulosic biomass and receives 
38.15 	payments under this section shall submit an annual report on the producer's responsible 
38.16 	biomass sourcing plan to the commissioner by January 15 each year. The report must 
38.17 	include data on progress made by the producer in meeting specific goals laid out in the 
38.18 	plan. The commissioner shall make the report publicly available. The commissioner 
38.19 	shall perform an annual review of submitted reports and is authorized to make a 
38.20 	determination that the producer is not following the plan based on the reports submitted. 
38.21 	The commissioner may take appropriate steps, including reducing or ceasing payments 
38.22 	until the producer is in compliance with the plan.
38.23 	(e) No payments shall be made for biomass thermal production that occurs after June 
38.24 	30, 2035, for those eligible biomass thermal producers under paragraph (b). A producer of 
38.25 	biomass thermal production shall not transfer the producer's eligibility for payments under 
38.26 	this section to a biomass thermal production facility at a different location.
38.27 	(f) Total payments under this section to an eligible thermal producer in a fiscal year 
38.28 	may not exceed the amount necessary for 30,000 MMbtu of thermal production. Total 
38.29 	payments under this section to all eligible thermal producers in a fiscal year may not 
38.30 	exceed the amount necessary for 150,000 MMbtu of total thermal production.
38.31 	(g) An eligible facility may blend a cellulosic feedstock with other fuels in the 
38.32 	biomass thermal production facility, but only the percentage attributable to cellulosic 
38.33 	material listed is eligible to receive the producer payment.
38.34 	(h) By the last day of October, January, April, and July, each producer shall file a 
38.35 	claim for payment for biomass thermal production during the preceding three calendar 
38.36 	months. A producer that files a claim under this paragraph shall include a statement of 
39.1 	the producer's total biomass thermal production in Minnesota during the quarter covered 
39.2 	by the claim. For each claim and statement of total biomass thermal production filed 
39.3 	under this paragraph, the volume of biomass thermal production must be examined by an 
39.4 	independent certified public accountant firm licensed under chapter 326A, in accordance 
39.5 	with Statements on Standards for Attestation Engagements established by the American 
39.6 	Institute of Certified Public Accountants.
39.7 	(i) Payments shall be made November 15, February 15, May 15, and August 15. A 
39.8 	separate payment shall be made for each claim filed.
39.9 	(j) Biofuel production for which payment has been received under section 41A.14, 
39.10 	and renewable chemical production for which payment has been received under section 
39.11 	41A.15, is not eligible for payment under this section.

39.12 	Sec. 52. [41A.17] REPORT; INCENTIVE PROGRAMS.
39.13 	By January 15 each year, the commissioner shall report on the incentive programs 
39.14 	under sections 41A.14, 41A.15, and 41A.16 to the legislative policy and finance 
39.15 	committees with primary jurisdiction over environment and agriculture. The report shall 
39.16 	include information on production and expenditures for incentives under the programs.

39.17 	Sec. 53. [41A.18] AGRICULTURE RESEARCH, EDUCATION, EXTENSION, 
39.18 	AND TECHNOLOGY TRANSFER GRANT PROGRAM.
39.19 		Subdivision 1.Duties; grants. The agriculture research, education, extension, and 
39.20 	technology transfer grant program is created. The purpose of the grant program is to 
39.21 	provide investments that will most efficiently achieve long-term agricultural sustainability 
39.22 	and productivity increases through improved infrastructure, vision, and accountability. 
39.23 	The scope and intent of the grants, to the extent possible, shall provide for a long-term 
39.24 	base funding that allows the research grantee to continue the functions of the research, 
39.25 	education, and extension efforts to a practical conclusion. Priority for grants shall be 
39.26 	given to human infrastructure. To be eligible for grants under this section, the dean of the 
39.27 	College of Food, Agricultural and Natural Resource Sciences, in consultation with the 
39.28 	dean of the College of Veterinarian Medicine, and the dean of the University of Minnesota 
39.29 	Extension Service must consult with stakeholders representing general farm, forestry, and 
39.30 	agricultural producer organizations. The commissioner shall provide grants for:
39.31 	(1) agricultural research and technology transfer needs and recipients including, but 
39.32 	not limited to, agricultural research and extension at the University of Minnesota, research 
39.33 	and outreach centers, the College of Food, Agricultural and Natural Resource Sciences, 
39.34 	the Minnesota Agricultural Experiment Station, University of Minnesota Extension 
40.1 	Service, the University of Minnesota Veterinary School, the Veterinary Diagnostic 
40.2 	Laboratory, the Stakman-Borlaug Center, and the Minnesota Agriculture Fertilizer 
40.3 	Research and Education Council;
40.4 	(2) agriculture rapid response for plant and animal diseases and pests; and
40.5 	(3) agricultural education including, but not limited to, the Minnesota Agriculture 
40.6 	Education Leadership Council, farm business management, mentoring programs, graduate 
40.7 	debt forgiveness, and high school programs.
40.8 		Subd. 2.Fund. An agriculture research, education, extension, and technology 
40.9 	transfer fund is created in the state treasury. The fund consists of money received in the form 
40.10 	of gifts, grants, reimbursement, or appropriations from any source for any of the purposes 
40.11 	provided in subdivision 1, and any interest or earnings of the fund. Money in the fund is 
40.12 	appropriated to the commissioner of agriculture for the purposes under subdivision 1.

40.13 	Sec. 54. Minnesota Statutes 2014, section 41B.03, subdivision 6, is amended to read:
40.14 		Subd. 6.Application fee. The authority may impose a reasonable nonrefundable 
40.15 	application fee for each application submitted for a beginning farmer loan or a 
40.16 	seller-sponsored loan. The application fee is initially $50. The authority may review the 
40.17 	fee annually and make adjustments as necessary. The fee must be deposited in the state 
40.18 	treasury and credited to an account in the special revenue fund. Money in the account is 
40.19 	appropriated to the commissioner for administrative expenses of the beginning farmer 
40.20 	and seller-sponsored loan programs the Rural Finance Authority administrative account 
40.21 	established in subdivision 7.

40.22 	Sec. 55. Minnesota Statutes 2014, section 41B.03, is amended by adding a subdivision 
40.23 	to read:
40.24 		Subd. 7.Rural Finance Authority administrative account. There is established 
40.25 	in the special revenue fund a Rural Finance Authority administrative account. Money in 
40.26 	the account, including interest, is appropriated to the commissioner for the administrative 
40.27 	expenses of the loan programs administered by the Rural Finance Authority.

40.28 	Sec. 56. Minnesota Statutes 2014, section 41B.04, subdivision 17, is amended to read:
40.29 		Subd. 17.Application and origination fee. The authority may impose a reasonable 
40.30 	nonrefundable application fee for each application and an origination fee for each loan 
40.31 	issued under the loan restructuring program. The origination fee is 1.5 percent of the 
40.32 	authority's participation interest in the loan and the application fee is $50. The authority 
40.33 	may review the fees annually and make adjustments as necessary. The fees must be 
41.1 	deposited in the state treasury and credited to an account in the special revenue fund. 
41.2 	Money in the account is appropriated to the commissioner for administrative expenses 
41.3 	of the loan restructuring program the Rural Finance Authority administrative account 
41.4 	established in section 41B.03.

41.5 	Sec. 57. Minnesota Statutes 2014, section 41B.043, subdivision 3, is amended to read:
41.6 		Subd. 3.Application and origination fee. The authority may impose a reasonable 
41.7 	nonrefundable application fee for each application submitted for a participation issued 
41.8 	under the agricultural improvement loan program. The application fee is initially $50. The 
41.9 	authority may review the fees annually and make adjustments as necessary. The fees must 
41.10 	be deposited in the state treasury and credited to an account in the special revenue fund. 
41.11 	Money in this account is appropriated to the commissioner for administrative expenses of 
41.12 	the agricultural improvement loan program the Rural Finance Authority administrative 
41.13 	account established in section 41B.03.

41.14 	Sec. 58. Minnesota Statutes 2014, section 41B.045, subdivision 3, is amended to read:
41.15 		Subd. 3.Specifications. No loan may be made to refinance an existing debt. Each 
41.16 	loan participation must be secured by a mortgage on real property and such other security 
41.17 	as the authority may require.

41.18 	Sec. 59. Minnesota Statutes 2014, section 41B.045, subdivision 4, is amended to read:
41.19 		Subd. 4.Application and origination fee. The authority may impose a reasonable 
41.20 	nonrefundable application fee for each application for a loan participation and an 
41.21 	origination fee for each loan issued under the livestock expansion loan program. The 
41.22 	origination fee initially shall be set at 1.5 percent and the application fee at $50. The 
41.23 	authority may review the fees annually and make adjustments as necessary. The fees must 
41.24 	be deposited in the state treasury and credited to an account in the special revenue fund. 
41.25 	Money in this account is appropriated to the commissioner for administrative expenses of 
41.26 	the livestock expansion loan program the Rural Finance Authority administrative account 
41.27 	established in section 41B.03.

41.28 	Sec. 60. Minnesota Statutes 2014, section 41B.046, subdivision 5, is amended to read:
41.29 		Subd. 5.Loans. (a) The authority may participate in a stock loan with an eligible 
41.30 	lender to a farmer who is eligible under subdivision 4. Participation is limited to 45 
41.31 	percent of the principal amount of the loan or $40,000, whichever is less. The interest 
41.32 	rates and repayment terms of the authority's participation interest may differ from the 
42.1 	interest rates and repayment terms of the lender's retained portion of the loan, but the 
42.2 	authority's interest rate must not exceed 50 percent of the lender's interest rate.
42.3 	(b) No more than 95 percent of the purchase price of the stock may be financed 
42.4 	under this program.
42.5 	(c) Security for stock loans must be the stock purchased, a personal note executed by 
42.6 	the borrower, and whatever other security is required by the eligible lender or the authority.
42.7 	(d) The authority may impose a reasonable nonrefundable application fee for each 
42.8 	application for a stock loan. The authority may review the fee annually and make 
42.9 	adjustments as necessary. The application fee is initially $50. Application fees received 
42.10 	by the authority must be deposited in the revolving loan account established in section 
42.11 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
42.12 	(e) Stock loans under this program will be made using money in the revolving 
42.13 	loan account established in section 41B.06.
42.14 	(f) The authority may not grant stock loans in a cumulative amount exceeding 
42.15 	$2,000,000 for the financing of stock purchases in any one cooperative.
42.16 	(g) Repayments of financial assistance under this section, including principal and 
42.17 	interest, must be deposited into the revolving loan account established in section 41B.06.

42.18 	Sec. 61. Minnesota Statutes 2014, section 41B.047, subdivision 1, is amended to read:
42.19 		Subdivision 1.Establishment. The authority shall establish and implement a 
42.20 	disaster recovery loan program to help farmers:
42.21 	(1) clean up, repair, or replace farm structures and septic and water systems, as well 
42.22 	as replace seed, other crop inputs, feed, and livestock, when damaged by high winds, 
42.23 	hail, tornado, or flood; or
42.24 	(2) purchase watering systems, irrigation systems, and other drought mitigation 
42.25 	systems and practices when drought is the cause of the purchase.; or
42.26 	(3) restore farmland.

42.27 	Sec. 62. Minnesota Statutes 2014, section 41B.047, subdivision 4, is amended to read:
42.28 		Subd. 4.Loans. (a) The authority may participate in a disaster recovery loan with 
42.29 	an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited 
42.30 	to 45 percent of the principal amount of the loan or $50,000, whichever is less. The 
42.31 	interest rates and repayment terms of the authority's participation interest may differ from 
42.32 	the interest rates and repayment terms of the lender's retained portion of the loan, but the 
42.33 	authority's interest rate must not exceed four percent.
43.1 	(b) Standards for loan amortization shall be set by the Rural Finance Authority 
43.2 	not to exceed ten years.
43.3 	(c) Security for the disaster recovery loans must be a personal note executed by the 
43.4 	borrower and whatever other security is required by the eligible lender or the authority.
43.5 	(d) The authority may impose a reasonable nonrefundable application fee for a 
43.6 	disaster recovery loan. The authority may review the fee annually and make adjustments 
43.7 	as necessary. The application fee is initially $50. Application fees received by the 
43.8 	authority must be deposited in the revolving loan account established under section 
43.9 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
43.10 	(e) Disaster recovery loans under this program will be made using money in the 
43.11 	revolving loan account established under section 41B.06.
43.12 	(f) Repayments of financial assistance under this section, including principal and 
43.13 	interest, must be deposited into the revolving loan account established under section 
43.14 	41B.06.

43.15 	Sec. 63. Minnesota Statutes 2014, section 41B.048, subdivision 6, is amended to read:
43.16 		Subd. 6.Loans. (a) The authority may disburse loans through a fiscal agent to 
43.17 	farmers and agricultural landowners who are eligible under subdivision 5. The total 
43.18 	accumulative loan principal must not exceed $75,000 per loan.
43.19 	(b) The fiscal agent may impose a loan origination fee in the amount of one percent 
43.20 	of the total approved loan. This fee is to be paid by the borrower to the fiscal agent at 
43.21 	the time of loan closing.
43.22 	(c) The loan may be disbursed over a period not to exceed 12 years.
43.23 	(d) A borrower may receive loans, depending on the availability of funds, for planted 
43.24 	areas up to 160 acres for up to:
43.25 	(1) the total amount necessary for establishment of the crop;
43.26 	(2) the total amount of maintenance costs, including weed control, during the first 
43.27 	three years; and
43.28 	(3) 70 percent of the estimated value of one year's growth of the crop for years 
43.29 	four through 12.
43.30 	(e) Security for the loan must be the crop, a personal note executed by the borrower, an 
43.31 	interest in the land upon which the crop is growing, and whatever other security is required 
43.32 	by the fiscal agent or the authority. All recording fees must be paid by the borrower.
43.33 	(f) The authority may prescribe forms and establish an application process for 
43.34 	applicants to apply for a loan.
44.1 	(g) The authority may impose a reasonable, nonrefundable application fee for each 
44.2 	application for a loan under this program. The application fee is initially $50. Application 
44.3 	fees received by the authority must be deposited in the revolving loan account established 
44.4 	under section 41B.06 Rural Finance Authority administrative account established in 
44.5 	section 41B.03.
44.6 	(h) Loans under the program must be made using money in the revolving loan 
44.7 	account established under section 41B.06.
44.8 	(i) All repayments of financial assistance granted under this section, including 
44.9 	principal and interest, must be deposited into the revolving loan account established 
44.10 	under section 41B.06.
44.11 	(j) The interest payable on loans made by the authority for the agroforestry loan 
44.12 	program must, if funded by revenue bond proceeds, be at a rate not less than the rate on the 
44.13 	revenue bonds, and may be established at a higher rate necessary to pay costs associated 
44.14 	with the issuance of the revenue bonds and a proportionate share of the cost of administering 
44.15 	the program. The interest payable on loans for the agroforestry loan program funded from 
44.16 	sources other than revenue bond proceeds must be at a rate determined by the authority.
44.17 	(k) Loan principal balance outstanding plus all assessed interest must be repaid 
44.18 	within 120 days of harvest, but no later than 15 years from planting.

44.19 	Sec. 64. Minnesota Statutes 2014, section 41B.049, subdivision 4, is amended to read:
44.20 		Subd. 4.Loans. (a) The authority may make a direct loan or participate in a loan 
44.21 	with an eligible lender to a farmer who is eligible under subdivision 3. Repayment terms 
44.22 	of the authority's participation interest may differ from repayment terms of the lender's 
44.23 	retained portion of the loan. Loans made under this section must be no-interest loans.
44.24 	(b) Application for a direct loan or a loan participation must be made on forms 
44.25 	prescribed by the authority.
44.26 	(c) Standards for loan amortization shall be set by the Rural Finance Authority 
44.27 	not to exceed ten years.
44.28 	(d) Security for the loans must be a personal note executed by the borrower and 
44.29 	whatever other security is required by the eligible lender or the authority.
44.30 	(e) No loan proceeds may be used to refinance a debt existing prior to application.
44.31 	(f) The authority may impose a reasonable nonrefundable application fee for 
44.32 	each application for a direct loan or a loan participation. The authority may review the 
44.33 	application fees annually and make adjustments as necessary. The application fee is 
44.34 	initially set at $100 for a loan under subdivision 1. The fees received by the authority must 
45.1 	be deposited in the revolving loan account established in section 41B.06 Rural Finance 
45.2 	Authority administrative account established in section 41B.03.

45.3 	Sec. 65. Minnesota Statutes 2014, section 41B.055, subdivision 3, is amended to read:
45.4 		Subd. 3.Loans. (a) The authority may participate in a livestock equipment loan 
45.5 	equal to 90 percent of the purchased equipment value with an eligible lender to a farmer 
45.6 	who is eligible under subdivision 2. Participation is limited to 45 percent of the principal 
45.7 	amount of the loan or $40,000, whichever is less. The interest rates and repayment terms 
45.8 	of the authority's participation interest may differ from the interest rates and repayment 
45.9 	terms of the lender's retained portion of the loan, but the authority's interest rate must 
45.10 	not exceed three percent. The authority may review the interest annually and make 
45.11 	adjustments as necessary.
45.12 	(b) Standards for loan amortization must be set by the Rural Finance Authority 
45.13 	and must not exceed ten years.
45.14 	(c) Security for a livestock equipment loan must be a personal note executed by the 
45.15 	borrower and whatever other security is required by the eligible lender or the authority.
45.16 	(d) Refinancing of existing debt is not an eligible purpose.
45.17 	(e) The authority may impose a reasonable, nonrefundable application fee for 
45.18 	a livestock equipment loan. The authority may review the fee annually and make 
45.19 	adjustments as necessary. The initial application fee is $50. Application fees received 
45.20 	by the authority must be deposited in the revolving loan account established in section 
45.21 	41B.06 Rural Finance Authority administrative account established in section 41B.03.
45.22 	(f) Loans under this program must be made using money in the revolving loan 
45.23 	account established in section 41B.06.

45.24 	Sec. 66. Minnesota Statutes 2014, section 41B.056, subdivision 2, is amended to read:
45.25 		Subd. 2.Definitions. (a) The definitions in this subdivision apply to this section.
45.26 	(b) "Intermediary" means any lending institution or other organization of a for-profit 
45.27 	or nonprofit nature that is in good standing with the state of Minnesota that has the 
45.28 	appropriate business structure and trained personnel suitable to providing efficient 
45.29 	disbursement of loan funds and the servicing and collection of loans.
45.30 	(c) "Specialty crops" means agricultural crops, such as annuals, flowers, perennials, 
45.31 	and other horticultural products, that are intensively cultivated.
45.32 	(d) "Eligible livestock" means poultry that has been allowed access to the outside, 
45.33 	sheep, or goats beef cattle, dairy cattle, swine, poultry, goats, mules, farmed cervidae, 
45.34 	ratitae, bison, sheep, horses, and llamas.

46.1 	Sec. 67. [41B.057] FARM OPPORTUNITY LOAN PROGRAM.
46.2 		Subdivision 1.Establishment. The commissioner of agriculture shall establish a 
46.3 	farm opportunity loan program to provide loans that enable farmers to:
46.4 	(1) add value to crops or livestock produced in Minnesota;
46.5 	(2) adopt best management practices that emphasize sufficiency and self-sufficiency;
46.6 	(3) reduce or improve management of agricultural inputs resulting in environmental 
46.7 	improvements; or
46.8 	(4) increase production of on-farm energy.
46.9 		Subd. 2.Loan criteria. (a) The farm opportunity loan program shall provide loans 
46.10 	for purchase of new or used equipment and installation of equipment for projects that 
46.11 	make environmental improvements and enhance farm profitability. The loan program 
46.12 	shall also be used to add value to crops or livestock produced in Minnesota by, but not 
46.13 	limited to, initiating or expanding livestock product processing; purchasing equipment to 
46.14 	initiate, upgrade, or modernize value-added agricultural businesses; or increasing farmers' 
46.15 	processing and aggregating capacity facilitating entry into farm-to-institution and other 
46.16 	markets. Eligible loan uses do not include expenses related to seeds, fertilizer, fuel, or 
46.17 	other operating expenses.
46.18 	(b) The authority may impose a reasonable, nonrefundable application fee for a farm 
46.19 	opportunity loan. The authority may review the fee annually and make adjustments as 
46.20 	necessary. The initial application fee is $50. Application fees received by the authority 
46.21 	must be deposited in the Rural Finance Authority administrative account established 
46.22 	in section 41B.03.
46.23 	(c) Loans may only be made to Minnesota residents engaged in farming. Standards 
46.24 	for loan amortization must be set by the Rural Finance Authority and must not exceed 
46.25 	ten years.
46.26 	(d) The borrower must show the ability to repay the loan.
46.27 	(e) Refinancing of existing debt is not an eligible expense.
46.28 	(f) Loans under this program must be made using money in the revolving loan 
46.29 	account established in section 41B.06.
46.30 		Subd. 3.Loan participation. The authority may participate in a farm opportunity 
46.31 	loan with an eligible lender, as defined in section 41B.02, subdivision 8, to a farmer or a 
46.32 	group of farmers on joint projects who are eligible under subdivision 2, paragraph (c), 
46.33 	and who are actively engaged in farming. Participation is limited to 45 percent of the 
46.34 	principal amount of the loan or $45,000 per individual, whichever is less. For loans to a 
46.35 	group made up of four or more individuals, participation is limited to 45 percent of the 
47.1 	principal amount of the loan or $180,000, whichever is less. The interest rate on the 
47.2 	loans must not exceed six percent.

47.3 	Sec. 68. Minnesota Statutes 2014, section 41B.06, is amended to read:
47.4 	41B.06 RURAL FINANCE AUTHORITY REVOLVING LOAN ACCOUNT.
47.5 	There is established in the rural finance administration fund a Rural Finance 
47.6 	Authority revolving loan account that is eligible to receive appropriations and the transfer 
47.7 	of loan funds from other programs. All repayments of financial assistance granted from 
47.8 	this account, including principal and interest, must be deposited into this account. Interest 
47.9 	earned on money in the account accrues to the account, and the money in the account is 
47.10 	appropriated to the commissioner of agriculture for purposes of the Rural Finance Authority 
47.11 	livestock equipment, methane digester, disaster recovery, value-added agricultural 
47.12 	product, agroforestry, and agricultural microloan, and farm opportunity loan programs, 
47.13 	including costs incurred by the authority to establish and administer the programs.

47.14 	Sec. 69. Minnesota Statutes 2014, section 375.30, subdivision 2, is amended to read:
47.15 		Subd. 2.Wild hemp. A county board, by resolution, may appropriate and spend 
47.16 	money as necessary to spray and otherwise eradicate wild hemp, commonly known as 
47.17 	marijuana, on private property within the county. The county board may authorize the 
47.18 	use of county equipment, personnel and supplies and materials to spray or otherwise 
47.19 	eradicate wild hemp on private property, and may pro rate the expenses involved between 
47.20 	the county and owner or occupant of the property. Industrial hemp grown by a person 
47.21 	licensed under chapter 18K is not wild hemp.

47.22 	Sec. 70. CORRECTIONAL FACILITY BUTCHER TRAINING PILOT 
47.23 	PROGRAM.
47.24 		Subdivision 1.Pilot program. The commissioner of agriculture must coordinate a 
47.25 	pilot program operated by the Northeast Regional Corrections Center to train inmates for 
47.26 	careers as butchers upon release. The commissioner must facilitate program development 
47.27 	and ensure that the program prepares inmates to meet applicable food safety and licensure 
47.28 	requirements.
47.29 		Subd. 2.Program development. In facilitating development of the pilot program, 
47.30 	the commissioner must consult with the commissioner of employment and economic 
47.31 	development and a representative of each of the following organizations:
47.32 	(1) Northeast Regional Corrections Center; and
47.33 	(2) United Food and Commercial Workers.
48.1 		Subd. 3.Report required. No later than February 1, 2017, the commissioner must 
48.2 	report on the progress and outcomes of the program to the legislative committees with 
48.3 	jurisdiction over agriculture, higher education, and public safety.
48.4 		Subd. 4.Expiration. This section expires July 1, 2017.

48.5 	Sec. 71. BALANCES TRANSFERRED; ACCOUNTS ABOLISHED.
 48.6 	The balances in the accounts created under Minnesota Statutes, sections 41B.03, 
48.7 	subdivision 6; 41B.04, subdivision 17; 41B.043, subdivision 3; and 41B.045, subdivision 
48.8 	4, are transferred to the Rural Finance Authority administrative account established under 
48.9 	Minnesota Statutes, section 41B.03, subdivision 7, and the original accounts are abolished.
48.10 	The balance in the account created under Minnesota Statutes, section 17.115, 
48.11 	is transferred to the Rural Finance Authority revolving loan account established under 
48.12 	Minnesota Statutes, section 41B.06, and the original account is abolished.

48.13 	Sec. 72. LIVESTOCK INDUSTRY STUDY.
 48.14 	The commissioner of agriculture must identify causes of the relative growth or 
48.15 	decline of poultry and livestock production in Minnesota, Iowa, North Dakota, South 
48.16 	Dakota, Wisconsin, and Nebraska over the last ten years. The commissioner shall include 
48.17 	the most recent ten years of data on the number of livestock farms for each of the states 
48.18 	that are compared. No later than February 1, 2016, the commissioner must report findings 
48.19 	by poultry and livestock sector and provide recommendations on how to strengthen and 
48.20 	expand Minnesota animal agriculture to the legislative committees with jurisdiction over 
48.21 	agriculture policy and finance.

48.22 	Sec. 73.  REPEALER.
 48.23 	Minnesota Statutes 2014, sections 17.115; 28A.15, subdivisions 9 and 10; and 
48.24 	41A.12, subdivision 4, are repealed.

48.25 	ARTICLE 3
48.26 	ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

48.27	Section 1. ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.
 	
48.28 	The sums shown in the columns marked "Appropriations" are appropriated to the 
48.29 	agencies and for the purposes specified in this article. The appropriations are from the 
48.30 	general fund, or another named fund, and are available for the fiscal years indicated 
48.31 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
48.32 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
49.1 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
49.2 	year 2017. "The biennium" is fiscal years 2016 and 2017. Appropriations for the fiscal 
49.3 	year ending June 30, 2015, are effective the day following final enactment.

49.4				APPROPRIATIONS
	
49.5				Available for the Year
	
49.6				Ending June 30
	
49.7					2016
		2017

49.8	Sec. 2. POLLUTION CONTROL AGENCY

49.9	Subdivision 1.Total Appropriation
 	$
	94,682,000
	$
	91,884,000

49.10	Appropriations by Fund
	
49.11		2016
	2017
	
49.12	General
	5,495,000
	5,477,000
	
49.13
49.14	State Government 
Special Revenue
	75,000
	75,000
	
49.15	Environmental
	74,130,000
	74,548,000
	
49.16	Remediation
	14,982,000
	11,784,000
	
49.17 	The amounts that may be spent for each 
49.18 	purpose are specified in the following 
49.19 	subdivisions.

49.20	Subd. 2.Water
 		26,438,000
		26,231,000

49.21	Appropriations by Fund
	
49.22		2016
	2017
	
49.23	General
	4,207,000
	3,777,000
	
49.24
49.25	State Government 
Special Revenue
	75,000
	75,000
	
49.26	Environmental
	22,156,000
	22,379,000
	
49.27 	$1,959,000 the first year and $1,959,000 
49.28 	the second year are for grants to delegated 
49.29 	counties to administer the county feedlot 
49.30 	program under Minnesota Statutes, section 
49.31 	116.0711, subdivisions 2 and 3. Money 
49.32 	remaining after the first year is available for 
49.33 	the second year.
49.34 	$753,000 the first year and $765,000 the 
49.35 	second year are from the environmental 
49.36 	fund to address the need for continued 
50.1 	increased activity in the areas of new 
50.2 	technology review, technical assistance 
50.3 	for local governments, and enforcement 
50.4 	under Minnesota Statutes, sections 115.55 
50.5 	to 115.58, and to complete the requirements 
50.6 	of Laws 2003, chapter 128, article 1, section 
50.7 	165.
50.8 	$400,000 the first year and $400,000 
50.9 	the second year are for the clean water 
50.10 	partnership program. Any unexpended 
50.11 	balance in the first year does not cancel but 
50.12 	is available in the second year. Priority shall 
50.13 	be given to projects preventing impairments 
50.14 	and degradation of lakes, rivers, streams, 
50.15 	and groundwater according to Minnesota 
50.16 	Statutes, section 114D.20, subdivision 2, 
50.17 	clause (4).
50.18 	$673,000 the first year and $683,000 the 
50.19 	second year are from the environmental 
50.20 	fund for subsurface sewage treatment 
50.21 	system (SSTS) program administration 
50.22 	and community technical assistance and 
50.23 	education, including grants and technical 
50.24 	assistance to communities for water quality 
50.25 	protection. Of this amount, $129,000 each 
50.26 	year is for assistance to counties through 
50.27 	grants for SSTS program administration. 
50.28 	A county receiving a grant from this 
50.29 	appropriation shall submit the results 
50.30 	achieved with the grant to the commissioner 
50.31 	as part of its annual SSTS report. Any 
50.32 	unexpended balance in the first year does not 
50.33 	cancel but is available in the second year.
51.1 	$107,000 the first year and $109,000 the 
51.2 	second year are from the environmental fund 
51.3 	for registration of wastewater laboratories.
51.4 	$150,000 the first year from the 
51.5 	environmental fund is for wild rice water 
51.6 	quality rulemaking and implementation 
51.7 	provided for in this act. This is a onetime 
51.8 	appropriation.
51.9 	$200,000 the first year is for a grant to 
51.10 	the Red River Basin Commission for 
51.11 	development of a water quality strategic plan 
51.12 	for the Red River of the North, in cooperation 
51.13 	with the Red River Board of the International 
51.14 	Joint Commission. The appropriation 
51.15 	must be matched by equal amounts from 
51.16 	both North Dakota and Manitoba and a 
51.17 	proportionate amount from South Dakota. 
51.18 	This is a onetime appropriation and does 
51.19 	not cancel. The plan must include, but is 
51.20 	not limited to, consistency in water quality 
51.21 	goals and objectives for the Red River of the 
51.22 	North and pollution reduction allocations for 
51.23 	both point and nonpoint sources on the Red 
51.24 	River of the North and for individual major 
51.25 	watersheds tributary to the Red River of the 
51.26 	North. The Red River Basin Commission 
51.27 	must involve the interests of local, state, and 
51.28 	federal government, business and industry, 
51.29 	environmental groups, and Red River 
51.30 	basin landowners. The Red River Basin 
51.31 	Commission must report progress on the plan 
51.32 	to the house of representatives and senate 
51.33 	committees and divisions with jurisdiction 
51.34 	over environment policy and finance by 
51.35 	February 15 in 2016 and 2017 and must 
52.1 	submit the completed plan by December 31, 
52.2 	2017.
52.3 	Notwithstanding Minnesota Statutes, section 
52.4 	16A.28, the appropriations encumbered on or 
52.5 	before June 30, 2017, as grants or contracts 
52.6 	for SSTS's, surface water and groundwater 
52.7 	assessments, total maximum daily loads, 
52.8 	storm water, and water quality protection in 
52.9 	this subdivision are available until June 30, 
52.10 	2020.

52.11	Subd. 3.Air
 		15,640,000
		16,087,000

52.12	Appropriations by Fund
	
52.13		2016
	2017
	
52.14	Environmental
	15,640,000
	16,087,000
	
52.15 	$202,000 the first year and $204,000 the 
52.16 	second year are from the environmental fund 
52.17 	for a monitoring program under Minnesota 
52.18 	Statutes, section 116.454.
52.19 	Up to $150,000 the first year and $150,000 
52.20 	the second year may be transferred from the 
52.21 	environmental fund to the small business 
52.22 	environmental improvement loan account 
52.23 	established in Minnesota Statutes, section 
52.24 	116.993.
52.25 	$126,000 the first year and $127,000 the 
52.26 	second year are from the environmental fund 
52.27 	for monitoring ambient air for hazardous 
52.28 	pollutants in the metropolitan area.
52.29 	$214,000 the first year and $219,000 the 
52.30 	second year are from the environmental 
52.31 	fund for systematic, localized monitoring 
52.32 	efforts in the state that sample ambient air 
52.33 	to determine whether significant localized 
52.34 	differences exist. The commissioner, when 
52.35 	selecting areas to monitor, shall give priority 
53.1 	to areas where low income, indigenous 
53.2 	American Indians, and communities of 
53.3 	color are disproportionately impacted by 
53.4 	pollution from highway traffic, air traffic, 
53.5 	and industrial sources.
53.6 	$691,000 the first year and $693,000 the 
53.7 	second year are from the environmental 
53.8 	fund for emission reduction activities and 
53.9 	grants to small businesses and other nonpoint 
53.10 	emission reduction efforts. Any unexpended 
53.11 	balance in the first year does not cancel but is 
53.12 	available in the second year.

53.13	Subd. 4.Land
 		22,013,000
		18,934,000

53.14	Appropriations by Fund
	
53.15		2016
	2017
	
53.16	Environmental
	7,031,000
	7,150,000
	
53.17	Remediation
	14,982,000
	11,784,000
	
53.18 	All money for environmental response, 
53.19 	compensation, and compliance in the 
53.20 	remediation fund not otherwise appropriated 
53.21 	is appropriated to the commissioners of the 
53.22 	Pollution Control Agency and agriculture 
53.23 	for purposes of Minnesota Statutes, section 
53.24 	115B.20, subdivision 2, clauses (1), (2), 
53.25 	(3), (6), and (7). At the beginning of each 
53.26 	fiscal year, the two commissioners shall 
53.27 	jointly submit an annual spending plan 
53.28 	to the commissioner of management and 
53.29 	budget that maximizes the utilization of 
53.30 	resources and appropriately allocates the 
53.31 	money between the two departments. This 
53.32 	appropriation is available until June 30, 2017.
53.33 	$4,279,000 the first year and $4,343,000 the 
53.34 	second year are from the remediation fund 
53.35 	for purposes of the leaking underground 
54.1 	storage tank program to investigate, clean up, 
54.2 	and prevent future releases from underground 
54.3 	petroleum storage tanks, and to the petroleum 
54.4 	remediation program for purposes of vapor 
54.5 	assessment and remediation. These same 
54.6 	annual amounts are transferred from the 
54.7 	petroleum tank fund to the remediation fund.
54.8 	$252,000 the first year and $252,000 the 
54.9 	second year are from the remediation fund 
54.10 	for transfer to the commissioner of health for 
54.11 	private water supply monitoring and health 
54.12 	assessment costs in areas contaminated 
54.13 	by unpermitted mixed municipal solid 
54.14 	waste disposal facilities and drinking water 
54.15 	advisories and public information activities 
54.16 	for areas contaminated by hazardous releases.
54.17 	$743,000 the first year is transferred from the 
54.18 	general account in the remediation fund to 
54.19 	the dry cleaner environmental response and 
54.20 	reimbursement account in the remediation 
54.21 	fund for the purpose of remediating land 
54.22 	contaminated by a release from a dry cleaning 
54.23 	facility, as provided under Minnesota 
54.24 	Statutes, section 115B.50. The commissioner 
54.25 	shall prioritize expenditures from this 
54.26 	transfer to address contaminated sites that 
54.27 	pose the greatest risk to public health or 
54.28 	welfare or to the environment, as established 
54.29 	in Minnesota Statutes, section 115B.17, 
54.30 	subdivision 13. This is a onetime transfer.
54.31 	$868,000 the first year is from the remediation 
54.32 	fund for a grant to the city of Mountain Iron 
54.33 	for remediation of the abandoned wastewater 
54.34 	treatment pond of the former Nichols 
55.1 	Township. This is a onetime appropriation 
55.2 	that is available until June 30, 2019.

55.3
55.4	Subd. 5.Environmental Assistance and 
Cross-Media
 		30,591,000
		30,632,000

55.5	Appropriations by Fund
	
55.6		2016
	2017
	
55.7	Environmental
	29,303,000
	28,932,000
	
55.8	General
	1,288,000
	1,700,000
	
55.9 	$17,250,000 the first year and $17,250,000 
55.10 	the second year are from the environmental 
55.11 	fund for SCORE block grants to counties.
55.12 	$119,000 the first year and $119,000 the 
55.13 	second year are from the environmental 
55.14 	fund for environmental assistance grants 
55.15 	or loans under Minnesota Statutes, section 
55.16 	115A.0716. Any unencumbered grant and 
55.17 	loan balances in the first year do not cancel 
55.18 	but are available for grants and loans in the 
55.19 	second year.
55.20 	$90,000 the first year and $90,000 the 
55.21 	second year are from the environmental fund 
55.22 	for duties related to harmful chemicals in 
55.23 	products under Minnesota Statutes, sections 
55.24 	116.9401 to 116.9407. Of this amount, 
55.25 	$57,000 each year is transferred to the 
55.26 	commissioner of health.
55.27 	$400,000 the second year is to enhance 
55.28 	awareness of and reduce priority chemicals 
55.29 	in consumer products. Of this amount, 
55.30 	$90,000 the second year is for transfer to the 
55.31 	Department of Commerce and $90,000 the 
55.32 	second year is for transfer to the Department 
55.33 	of Health. This is a onetime appropriation. 
55.34 	The agency base for fiscal year 2018 shall 
55.35 	include $826,000 for this purpose.
56.1 	$203,000 the first year and $207,000 the 
56.2 	second year are from the environmental 
56.3 	fund for the costs of implementing general 
56.4 	operating permits for feedlots over 1,000 
56.5 	animal units.
56.6 	$565,000 the first year and $569,000 the 
56.7 	second year are from the general fund and 
56.8 	$192,000 the first year and $192,000 the 
56.9 	second year are from the environmental fund 
56.10 	for Environmental Quality Board operations 
56.11 	and support.
56.12 	$500,000 the first year from the 
56.13 	environmental fund is a onetime 
56.14 	appropriation to the Environmental Quality 
56.15 	Board for development of a Web-based 
56.16 	environmental review tool.
56.17 	$50,000 the first year and $50,000 the second 
56.18 	year are from the environmental fund for 
56.19 	transfer to the Office of Administrative 
56.20 	Hearings to establish sanitary districts.
56.21 	$502,000 the first year and $503,000 the 
56.22 	second year are from the general fund for 
56.23 	the Environmental Quality Board to lead 
56.24 	an interagency team to provide technical 
56.25 	assistance regarding the mining, processing, 
56.26 	and transporting of silica sand.
56.27 	All money deposited in the environmental 
56.28 	fund for the metropolitan solid waste 
56.29 	landfill fee in accordance with Minnesota 
56.30 	Statutes, section 473.843, and not otherwise 
56.31 	appropriated, is appropriated for the purposes 
56.32 	of Minnesota Statutes, section 473.844.
56.33 	Notwithstanding Minnesota Statutes, section 
56.34 	16A.28, the appropriations encumbered on 
56.35 	or before June 30, 2017, as contracts or 
57.1 	grants for surface water and groundwater 
57.2 	assessments; environmental assistance 
57.3 	awarded under Minnesota Statutes, section 
57.4 	115A.0716; technical and research assistance 
57.5 	under Minnesota Statutes, section 115A.152; 
57.6 	technical assistance under Minnesota 
57.7 	Statutes, section 115A.52; and pollution 
57.8 	prevention assistance under Minnesota 
57.9 	Statutes, section 115D.04, are available until 
57.10 	June 30, 2019.

57.11	Subd. 6.Remediation Fund
 					
57.12 	The commissioner shall transfer up to 
57.13 	$42,000,000 from the environmental fund 
57.14 	to the remediation fund for the purposes 
57.15 	of the remediation fund under Minnesota 
57.16 	Statutes, section 116.155, subdivision 
57.17 	2. $2,500,000 of the amount transferred 
57.18 	under this subdivision is appropriated in 
57.19 	the first year from the remediation fund to 
57.20 	the commissioner for a grant to the city of 
57.21 	Paynesville to add an air stripping treatment 
57.22 	process to a water treatment plant for removal 
57.23 	of volatile organic compounds.

57.24	Subd. 7.Transfer
 					
57.25 	By June 30, 2016, the commissioner of 
57.26 	management and budget shall transfer 
57.27 	$33,276,000 from the closed landfill 
57.28 	investment fund to the general fund.

57.29	Sec. 3. NATURAL RESOURCES

57.30	Subdivision 1.Total Appropriation
 	$
	267,802,000
	$
	262,288,000

57.31	Appropriations by Fund
	
57.32		2016
	2017
	
57.33	General
	76,484,000
	74,994,000
	
57.34	Natural Resources
	84,786,000
	85,236,000
	
57.35	Game and Fish
	106,232,000
	101,758,000
	
58.1	Remediation
	100,000
	100,000
	
58.2	Permanent School
	200,000
	200,000
	
58.3 	The amounts that may be spent for each 
58.4 	purpose are specified in the following 
58.5 	subdivisions.

58.6
58.7	Subd. 2.Land and Mineral Resources 
Management
 		5,461,000
		5,521,000

58.8	Appropriations by Fund
	
58.9		2016
	2017
	
58.10	General
	1,585,000
	1,585,000
	
58.11	Natural Resources
	3,332,000 
	3,392,000
	
58.12	Game and Fish
	344,000
	344,000
	
58.13	Permanent School
	200,000
	200,000
	
58.14 	$68,000 the first year and $68,000 the 
58.15 	second year are for minerals cooperative 
58.16 	environmental research, of which $34,000 
58.17 	the first year and $34,000 the second year are 
58.18 	available only as matched by $1 of nonstate 
58.19 	money for each $1 of state money. The 
58.20 	match may be cash or in-kind.
58.21 	$251,000 the first year and $251,000 the 
58.22 	second year are for iron ore cooperative 
58.23 	research. Of this amount, $200,000 each year 
58.24 	is from the minerals management account 
58.25 	in the natural resources fund. $175,000 the 
58.26 	first year and $175,000 the second year are 
58.27 	available only as matched by $1 of nonstate 
58.28 	money for each $1 of state money. The match 
58.29 	may be cash or in-kind. Any unencumbered 
58.30 	balance from the first year does not cancel 
58.31 	and is available in the second year.
58.32 	$2,755,000 the first year and $2,815,000 
58.33 	the second year are from the minerals 
58.34 	management account in the natural resources 
58.35 	fund for use as provided in Minnesota 
58.36 	Statutes, section 93.2236, paragraph (c), 
59.1 	for mineral resource management, projects 
59.2 	to enhance future mineral income, and 
59.3 	projects to promote new mineral resource 
59.4 	opportunities.
59.5 	$200,000 the first year and $200,000 the 
59.6 	second year are from the state forest suspense 
59.7 	account in the permanent school fund to 
59.8 	accelerate land exchanges, land sales, and 
59.9 	commercial leasing of school trust lands and 
59.10 	to identify, evaluate, and lease construction 
59.11 	aggregate located on school trust lands. This 
59.12 	appropriation is to be used for securing 
59.13 	long-term economic return from the 
59.14 	school trust lands consistent with fiduciary 
59.15 	responsibilities and sound natural resources 
59.16 	conservation and management principles.
59.17 	Prior to June 30, 2015, the commissioner 
59.18 	shall offer to renegotiate mineral royalty 
59.19 	rates under Minnesota Statutes, section 
59.20 	93.20. In renegotiating the royalty rates, the 
59.21 	commissioner shall consider the long-term 
59.22 	effect of the royalty rates on the beneficiary 
59.23 	funds, including the effect of the royalty 
59.24 	rates on the long-term health of the mining 
59.25 	industry in Minnesota. This paragraph is 
59.26 	effective the day following final enactment.

59.27	Subd. 3.Ecological and Water Resources
 		32,768,000
		32,506,000

59.28	Appropriations by Fund
	
59.29		2016
	2017
	
59.30	General
	17,491,000
	17,046,000
	
59.31	Natural Resources
	10,487,000
	10,546,000
	
59.32	Game and Fish
	4,790,000
	4,914,000
	
59.33 	$3,242,000 the first year and $3,242,000 the 
59.34 	second year are from the invasive species 
59.35 	account in the natural resources fund and 
59.36 	$3,206,000 the first year and $3,206,000 the 
60.1 	second year are from the general fund for 
60.2 	management, public awareness, assessment 
60.3 	and monitoring research, and water access 
60.4 	inspection to prevent the spread of invasive 
60.5 	species; management of invasive plants in 
60.6 	public waters; and management of terrestrial 
60.7 	invasive species on state-administered lands.
60.8 	$5,000,000 the first year and $5,000,000 the 
60.9 	second year are from the water management 
60.10 	account in the natural resources fund for only 
60.11 	the purposes specified in Minnesota Statutes, 
60.12 	section 103G.27, subdivision 2.
60.13 	$124,000 the first year and $124,000 the 
60.14 	second year are for a grant to the Mississippi 
60.15 	Headwaters Board for up to 50 percent of 
60.16 	the cost of implementing the comprehensive 
60.17 	plan for the upper Mississippi within areas 
60.18 	under the board's jurisdiction.
60.19 	$10,000 the first year and $10,000 the second 
60.20 	year are for payment to the Leech Lake Band 
60.21 	of Chippewa Indians to implement the band's 
60.22 	portion of the comprehensive plan for the 
60.23 	upper Mississippi.
60.24 	$264,000 the first year and $264,000 the 
60.25 	second year are for grants for up to 50 
60.26 	percent of the cost of implementation of the 
60.27 	Red River mediation agreement.
60.28 	$2,393,000 the first year and $2,393,000 
60.29 	the second year are from the heritage 
60.30 	enhancement account in the game and 
60.31 	fish fund for only the purposes specified 
60.32 	in Minnesota Statutes, section 297A.94, 
60.33 	paragraph (e), clause (1).
60.34 	$950,000 the first year and $950,000 the 
60.35 	second year are from the nongame wildlife 
61.1 	management account in the natural resources 
61.2 	fund for the purpose of nongame wildlife 
61.3 	management. Notwithstanding Minnesota 
61.4 	Statutes, section 290.431, $100,000 the first 
61.5 	year and $100,000 the second year may 
61.6 	be used for nongame wildlife information, 
61.7 	education, and promotion.
61.8 	$6,000,000 the first year and $6,000,000 the 
61.9 	second year are from the general fund for the 
61.10 	following activities:
61.11 	(1) financial reimbursement and technical 
61.12 	support to soil and water conservation 
61.13 	districts or other local units of government 
61.14 	for groundwater level monitoring;
61.15 	(2) surface water monitoring and analysis, 
61.16 	including installation of monitoring gauges;
61.17 	(3) groundwater analysis to assist with water 
61.18 	appropriation permitting decisions;
61.19 	(4) permit application review incorporating 
61.20 	surface water and groundwater technical 
61.21 	analysis;
61.22 	(5) precipitation data and analysis to improve 
61.23 	the use of irrigation;
61.24 	(6) information technology, including 
61.25 	electronic permitting and integrated data 
61.26 	systems; and
61.27 	(7) compliance and monitoring.
61.28 	$150,000 is for the commissioner of 
61.29 	natural resources, in cooperation with the 
61.30 	commissioners of the Pollution Control 
61.31 	Agency and health, the Public Facilities 
61.32 	Authority, and local units of government to 
61.33 	conduct a study and report to the legislature 
61.34 	on:
62.1 	(1) the feasibility of constructing 
62.2 	a wastewater treatment facility for 
62.3 	communities surrounding White Bear Lake 
62.4 	that will provide treated wastewater to be 
62.5 	used to augment water levels in White Bear 
62.6 	Lake; and
62.7 	(2) design and construction of an 
62.8 	augmentation supply from Sucker Lake 
62.9 	to White Bear Lake. The commissioner 
62.10 	shall submit the report to the chairs and 
62.11 	ranking minority members of the legislative 
62.12 	committees and divisions with jurisdiction 
62.13 	over environment and natural resources 
62.14 	policy and finance no later than January 15, 
62.15 	2016.
62.16 	$400,000 the first year is for grants to assist 
62.17 	in the construction of flood protection rural 
62.18 	and farmstead ring levees in the Red River 
62.19 	watershed. Grants may not exceed 50 percent 
62.20 	of the cost of the projects. This is a onetime 
62.21 	appropriation and is available until June 30, 
62.22 	2019.

62.23	Subd. 4.Forest Management
 		40,456,000
		39,860,000

62.24	Appropriations by Fund
	
62.25		2016
	2017
	
62.26	General
	28,046,000
	27,450,000
	
62.27	Natural Resources
	11,123,000
	11,123,000
	
62.28	Game and Fish
	1,287,000
	1,287,000
	
62.29 	$7,145,000 the first year and $7,145,000 
62.30 	the second year are for prevention, 
62.31 	presuppression, and suppression costs of 
62.32 	emergency firefighting and other costs 
62.33 	incurred under Minnesota Statutes, section 
62.34 	88.12. The amount necessary to pay for 
62.35 	presuppression and suppression costs during 
63.1 	the biennium is appropriated from the general 
63.2 	fund.
63.3 	By January 15 of each year, the commissioner 
63.4 	of natural resources shall submit a report to 
63.5 	the chairs and ranking minority members 
63.6 	of the house and senate committees 
63.7 	and divisions having jurisdiction over 
63.8 	environment and natural resources finance, 
63.9 	identifying all firefighting costs incurred 
63.10 	and reimbursements received in the prior 
63.11 	fiscal year. These appropriations may 
63.12 	not be transferred. Any reimbursement 
63.13 	of firefighting expenditures made to the 
63.14 	commissioner from any source other than 
63.15 	federal mobilizations shall be deposited into 
63.16 	the general fund.
63.17 	$11,123,000 the first year and $11,123,000 
63.18 	the second year are from the forest 
63.19 	management investment account in the 
63.20 	natural resources fund for only the purposes 
63.21 	specified in Minnesota Statutes, section 
63.22 	89.039, subdivision 2.
63.23 	$1,287,000 the first year and $1,287,000 
63.24 	the second year are from the heritage 
63.25 	enhancement account in the game and fish 
63.26 	fund to advance ecological classification 
63.27 	systems (ECS) scientific management tools 
63.28 	for forest and invasive species management. 
63.29 	This appropriation is from revenue deposited 
63.30 	in the game and fish fund under Minnesota 
63.31 	Statutes, section 297A.94, paragraph (e), 
63.32 	clause (1).
63.33 	$880,000 the first year and $880,000 the 
63.34 	second year are for the Forest Resources 
64.1 	Council for implementation of the 
64.2 	Sustainable Forest Resources Act.
64.3 	$1,000,000 the first year is for a pilot 
64.4 	program to increase forest road maintenance. 
64.5 	The commissioner shall use the money to 
64.6 	perform needed maintenance on forest roads 
64.7 	in conjunction with timber sales. Optional 
64.8 	forest road maintenance contracts may be 
64.9 	offered to successful purchasers of state 
64.10 	timber sales at the commissioner's discretion. 
64.11 	This is a onetime appropriation.
64.12 	$250,000 the first year and $250,000 the 
64.13 	second year are for the FORIST system.
64.14 	The commissioner shall contract with a 
64.15 	telecommunication provider to place a cell 
64.16 	phone transmitter on the ranger tower on 
64.17 	Side Lake in St. Louis County.
64.18 	The general fund base budget for forest 
64.19 	management in fiscal year 2018 and 
64.20 	thereafter is $27,450,000.

64.21	Subd. 5.Parks and Trails Management
 		73,414,000
		73,800,000

64.22	Appropriations by Fund
	
64.23		2016
	2017
	
64.24	General
	23,627,000
	23,777,000
	
64.25	Natural Resources
	47,521,000
	47,750,000
	
64.26	Game and Fish
	2,266,000
	2,273,000
	
64.27 	$1,075,000 the first year and $1,075,000 the 
64.28 	second year are from the water recreation 
64.29 	account in the natural resources fund for 
64.30 	enhancing public water access facilities.
64.31 	$5,740,000 the first year and $5,740,000 the 
64.32 	second year are from the natural resources 
64.33 	fund for state trail, park, and recreation area 
64.34 	operations. This appropriation is from the 
64.35 	revenue deposited in the natural resources 
65.1 	fund under Minnesota Statutes, section 
65.2 	297A.94, paragraph (e), clause (2).
65.3 	$1,005,000 the first year and $1,005,000 the 
65.4 	second year are from the natural resources 
65.5 	fund for park and trail grants to local units of 
65.6 	government on land to be maintained for at 
65.7 	least 20 years for the purposes of the grants. 
65.8 	This appropriation is from the revenue 
65.9 	deposited in the natural resources fund 
65.10 	under Minnesota Statutes, section 297A.94, 
65.11 	paragraph (e), clause (4). Any unencumbered 
65.12 	balance does not cancel at the end of the first 
65.13 	year and is available for the second year.
65.14 	$8,424,000 the first year and $8,424,000 
65.15 	the second year are from the snowmobile 
65.16 	trails and enforcement account in the 
65.17 	natural resources fund for the snowmobile 
65.18 	grants-in-aid program. Any unencumbered 
65.19 	balance does not cancel at the end of the first 
65.20 	year and is available for the second year.
65.21 	$1,460,000 the first year and $1,460,000 the 
65.22 	second year are from the natural resources 
65.23 	fund for the off-highway vehicle grants-in-aid 
65.24 	program. Of this amount, $1,210,000 each 
65.25 	year is from the all-terrain vehicle account; 
65.26 	$150,000 each year is from the off-highway 
65.27 	motorcycle account; and $100,000 each year 
65.28 	is from the off-road vehicle account. Any 
65.29 	unencumbered balance does not cancel at the 
65.30 	end of the first year and is available for the 
65.31 	second year.
65.32 	$968,000 the first year and $968,000 the 
65.33 	second year are from the off-road vehicle 
65.34 	account in the natural resources fund. Of 
65.35 	this amount, $568,000 each year is for parks 
66.1 	and trails management for off-road vehicle 
66.2 	purposes; $325,000 is for the off-road 
66.3 	vehicle grant-in-aid program; and $75,000 
66.4 	is for a new full-time employee position or 
66.5 	contract in northern Minnesota to work in 
66.6 	conjunction with the Minnesota Four-Wheel 
66.7 	Drive Association to address off-road vehicle 
66.8 	touring routes and other issues related to 
66.9 	off-road vehicle activities. This is a onetime 
66.10 	appropriation.
66.11 	$75,000 the first year and $75,000 the second 
66.12 	year are from the cross-country ski account 
66.13 	in the natural resources fund for grooming 
66.14 	and maintaining cross-country ski trails in 
66.15 	state parks, trails, and recreation areas.
66.16 	$250,000 the first year and $250,000 the 
66.17 	second year are from the state land and 
66.18 	water conservation account (LAWCON) 
66.19 	in the natural resources fund for priorities 
66.20 	established by the commissioner for eligible 
66.21 	state projects and administrative and 
66.22 	planning activities consistent with Minnesota 
66.23 	Statutes, section 84.0264, and the federal 
66.24 	Land and Water Conservation Fund Act. 
66.25 	Any unencumbered balance does not cancel 
66.26 	at the end of the first year and is available for 
66.27 	the second year.
66.28 	$65,000 the first year is from the water 
66.29 	recreation account in the natural resources 
66.30 	fund to cooperate with local units of 
66.31 	government in marking routes and 
66.32 	designating river accesses and campsites 
66.33 	under Minnesota Statutes, section 85.32. 
66.34 	This is a onetime appropriation and is 
66.35 	available until June 30, 2019.
67.1 	$190,000 from the natural resources fund the 
67.2 	first year is for a grant to the city of Virginia 
67.3 	for the additional cost of supporting a trail 
67.4 	due to the rerouting of U.S. Highway No. 
67.5 	53. This is a onetime appropriation and is 
67.6 	available until June 30, 2019.
67.7 	$50,000 the first year is for development of 
67.8 	a master plan for the Mississippi Blufflands 
67.9 	Trail, including work on possible extensions 
67.10 	or connections to other state or regional 
67.11 	trails. This is a onetime appropriation that is 
67.12 	available until June 30, 2017.
67.13 	$61,000 from the natural resources fund the 
67.14 	first year is for a grant to the city of East 
67.15 	Grand Forks for payment under a reciprocity 
67.16 	agreement for the Red River State Recreation 
67.17 	Area.

67.18	Subd. 6.Fish and Wildlife Management
 		75,320,000
		71,003,000

67.19	Appropriations by Fund
	
67.20		2016
	2017
	
67.21	Natural Resources
	1,908,000
	1,912,000
	
67.22	Game and Fish
	73,412,000
	69,091,000
	
67.23 	$8,167,000 the first year and $8,167,000 
67.24 	the second year are from the heritage 
67.25 	enhancement account in the game and fish 
67.26 	fund only for activities specified in Minnesota 
67.27 	Statutes, section 297A.94, paragraph (e), 
67.28 	clause (1). Notwithstanding Minnesota 
67.29 	Statutes, section 297A.94, five percent of 
67.30 	this appropriation may be used for expanding 
67.31 	hunter and angler recruitment and retention.
67.32 	$5,000,000 the first year from the game 
67.33 	and fish fund is for trap, skeet, and archery 
67.34 	shooting sports facility grants under 
67.35 	Minnesota Statutes, section 87A.10. This is 
68.1 	a onetime appropriation and is available until 
68.2 	June 30, 2018.
68.3 	Notwithstanding Minnesota Statutes, section 
68.4 	84.943, $13,000 the first year and $13,000 
68.5 	the second year from the critical habitat 
68.6 	private sector matching account may be used 
68.7 	to publicize the critical habitat license plate 
68.8 	match program.

68.9	Subd. 7.Enforcement
 		39,313,000
		38,528,000

68.10	Appropriations by Fund
	
68.11		2016
	2017
	
68.12	General
	4,985,000
	4,386,000
	
68.13	Natural Resources
	10,095,000
	10,193,000
	
68.14	Game and Fish
	24,133,000
	23,849,000
	
68.15	Remediation
	100,000
	100,000
	
68.16 	$870,000 the first year and $130,000 the 
68.17 	second year from the general fund and 
68.18 	$1,330,000 the first year and $220,000 the 
68.19 	second year from the game and fish fund are 
68.20 	for aviation services. This appropriation is 
68.21 	onetime.
68.22 	$1,718,000 the first year and $1,718,000 the 
68.23 	second year are from the general fund for 
68.24 	enforcement efforts to prevent the spread of 
68.25 	aquatic invasive species.
68.26 	$1,520,000 the first year and $1,563,000 
68.27 	the second year are from the heritage 
68.28 	enhancement account in the game and 
68.29 	fish fund for only the purposes specified 
68.30 	in Minnesota Statutes, section 297A.94, 
68.31 	paragraph (e), clause (1). The base for these 
68.32 	purposes in fiscal year 2018 and thereafter is 
68.33 	$1,590,000.
68.34 	$1,082,000 the first year and $1,082,000 the 
68.35 	second year are from the water recreation 
69.1 	account in the natural resources fund for 
69.2 	grants to counties for boat and water safety. 
69.3 	Any unencumbered balance does not cancel 
69.4 	at the end of the first year and is available for 
69.5 	the second year.
69.6 	$315,000 the first year and $315,000 the 
69.7 	second year are from the snowmobile 
69.8 	trails and enforcement account in the 
69.9 	natural resources fund for grants to local 
69.10 	law enforcement agencies for snowmobile 
69.11 	enforcement activities. Any unencumbered 
69.12 	balance does not cancel at the end of the first 
69.13 	year and is available for the second year.
69.14 	$250,000 the first year and $250,000 
69.15 	the second year are from the all-terrain 
69.16 	vehicle account for grants to qualifying 
69.17 	organizations to assist in safety and 
69.18 	environmental education and monitoring 
69.19 	trails on public lands under Minnesota 
69.20 	Statutes, section 84.9011. Grants issued 
69.21 	under this paragraph must be issued through 
69.22 	a formal agreement with the organization. 
69.23 	By December 15 each year, an organization 
69.24 	receiving a grant under this paragraph shall 
69.25 	report to the commissioner with details on 
69.26 	expenditures and outcomes from the grant. 
69.27 	Of this appropriation, $25,000 each year 
69.28 	is for administration of these grants. Any 
69.29 	unencumbered balance does not cancel at the 
69.30 	end of the first year and is available for the 
69.31 	second year.
69.32 	$510,000 the first year and $510,000 
69.33 	the second year are from the natural 
69.34 	resources fund for grants to county law 
69.35 	enforcement agencies for off-highway 
70.1 	vehicle enforcement and public education 
70.2 	activities based on off-highway vehicle use 
70.3 	in the county. Of this amount, $498,000 each 
70.4 	year is from the all-terrain vehicle account; 
70.5 	$11,000 each year is from the off-highway 
70.6 	motorcycle account; and $1,000 each year 
70.7 	is from the off-road vehicle account. The 
70.8 	county enforcement agencies may use 
70.9 	money received under this appropriation 
70.10 	to make grants to other local enforcement 
70.11 	agencies within the county that have a high 
70.12 	concentration of off-highway vehicle use. 
70.13 	Of this appropriation, $25,000 each year 
70.14 	is for administration of these grants. Any 
70.15 	unencumbered balance does not cancel at the 
70.16 	end of the first year and is available for the 
70.17 	second year.

70.18	Subd. 8.Operations Support
 		1,070,000
		1,070,000

70.19	Appropriations by Fund
	
70.20		2016
	2017
	
70.21	General
	750,000
	750,000
	
70.22	Natural Resources
	320,000
	320,000
	
70.23 	$320,000 the first year and $320,000 the 
70.24 	second year are from the natural resources 
70.25 	fund for grants to be divided equally between 
70.26 	the city of St. Paul for the Como Park Zoo 
70.27 	and Conservatory and the city of Duluth 
70.28 	for the Duluth Zoo. This appropriation 
70.29 	is from the revenue deposited to the fund 
70.30 	under Minnesota Statutes, section 297A.94, 
70.31 	paragraph (e), clause (5).
70.32 	$500,000 each year is for legal costs related 
70.33 	to water management. This is a onetime 
70.34 	appropriation and is available until June 30, 
70.35 	2018.
71.1 	Money appropriated in this section may not 
71.2 	be spent on a new contract for a call center 
71.3 	that is located outside the state of Minnesota.

71.4
71.5	Sec. 4. BOARD OF WATER AND SOIL 
RESOURCES
 	$
	13,959,000
	$
	13,133,000
	
71.6 	$3,423,000 the first year and $3,423,000 the 
71.7 	second year are for natural resources block 
71.8 	grants to local governments. Grants must be 
71.9 	matched with a combination of local cash or 
71.10 	in-kind contributions. The base grant portion 
71.11 	related to water planning must be matched 
71.12 	by an amount as specified by Minnesota 
71.13 	Statutes, section 103B.3369. The board may 
71.14 	reduce the amount of the natural resources 
71.15 	block grant to a county by an amount equal to 
71.16 	any reduction in the county's general services 
71.17 	allocation to a soil and water conservation 
71.18 	district from the county's previous year 
71.19 	allocation when the board determines that 
71.20 	the reduction was disproportionate.
71.21 	$3,116,000 the first year and $3,116,000 the 
71.22 	second year are for grants to soil and water 
71.23 	conservation districts for general purposes, 
71.24 	nonpoint engineering, and implementation of 
71.25 	the reinvest in Minnesota reserve program. 
71.26 	Expenditures may be made from these 
71.27 	appropriations for supplies and services 
71.28 	benefiting soil and water conservation 
71.29 	districts. Any district receiving a grant under 
71.30 	this paragraph shall maintain a Web page that 
71.31 	publishes, at a minimum, its annual report, 
71.32 	annual audit, annual budget, and meeting 
71.33 	notices.
72.1 	$1,560,000 the first year and $1,560,000 the 
72.2 	second year are for the following cost-share 
72.3 	programs:
72.4 	(1) $260,000 each year is for feedlot water 
72.5 	quality grants for feedlots under 300 animal 
72.6 	units and nutrient and manure management 
72.7 	projects in watersheds where there are 
72.8 	impaired waters;
72.9 	(2) $1,200,000 each year is for soil and 
72.10 	water conservation district cost-sharing 
72.11 	contracts for perennially vegetated riparian 
72.12 	buffers, erosion control, water retention 
72.13 	and treatment, and other high-priority 
72.14 	conservation practices; and
72.15 	(3) $100,000 each year is for county 
72.16 	cooperative weed management programs and 
72.17 	to restore native plants in selected invasive 
72.18 	species management sites by providing local 
72.19 	native seeds and plants to landowners for 
72.20 	implementation.
72.21 	$800,000 the first year and $750,000 
72.22 	the second year are for implementation, 
72.23 	enforcement, and oversight of the Wetland 
72.24 	Conservation Act.
72.25 	$166,000 the first year and $166,000 
72.26 	the second year are to provide technical 
72.27 	assistance to local drainage management 
72.28 	officials and for the costs of the Drainage 
72.29 	Work Group.
72.30 	$100,000 the first year and $100,000 
72.31 	the second year are for a grant to the 
72.32 	Red River Basin Commission for water 
72.33 	quality and floodplain management, 
72.34 	including administration of programs. This 
72.35 	appropriation must be matched by nonstate 
73.1 	funds. If the appropriation in either year is 
73.2 	insufficient, the appropriation in the other 
73.3 	year is available for it.
73.4 	$120,000 the first year and $120,000 
73.5 	the second year are for grants to Area 
73.6 	II Minnesota River Basin Projects for 
73.7 	floodplain management.
73.8 	Notwithstanding Minnesota Statutes, section 
73.9 	103C.501, the board may shift cost-share 
73.10 	funds in this section and may adjust the 
73.11 	technical and administrative assistance 
73.12 	portion of the grant funds to leverage 
73.13 	federal or other nonstate funds or to address 
73.14 	high-priority needs identified in local water 
73.15 	management plans or comprehensive water 
73.16 	management plans.
73.17 	$750,000 the first year is for purposes of 
73.18 	Minnesota Statutes, section 103F.519. This 
73.19 	appropriation is onetime and is available 
73.20 	until June 30, 2017.
73.21 	The appropriations for grants in this section 
73.22 	are available until June 30, 2019. If an 
73.23 	appropriation for grants in either year is 
73.24 	insufficient, the appropriation in the other 
73.25 	year is available for it.

73.26	Sec. 5. METROPOLITAN COUNCIL
 	$
	8,540,000
	$
	8,540,000

73.27	Appropriations by Fund
	
73.28		2016
	2017
	
73.29	General
	2,870,000
	2,870,000
	
73.30	Natural Resources
	5,670,000
	5,670,000
	
73.31 	$2,870,000 the first year and $2,870,000 the 
73.32 	second year are for metropolitan area regional 
73.33 	parks operation and maintenance according 
73.34 	to Minnesota Statutes, section 473.351.
74.1 	$5,670,000 the first year and $5,670,000 the 
74.2 	second year are from the natural resources 
74.3 	fund for metropolitan area regional parks 
74.4 	and trails maintenance and operations. This 
74.5 	appropriation is from the revenue deposited 
74.6 	in the natural resources fund under Minnesota 
74.7 	Statutes, section 297A.94, paragraph (e), 
74.8 	clause (3).

74.974.10
	Sec. 6. CONSERVATION CORPS 
MINNESOTA
 	$
	945,000
	$
	945,000

74.11	Appropriations by Fund
	
74.12		2016
	2017
	
74.13	General
	455,000
	455,000
	
74.14	Natural Resources
	490,000
	490,000
	
74.15 	Conservation Corps Minnesota may receive 
74.16 	money appropriated from the natural 
74.17 	resources fund under this section only 
74.18 	as provided in an agreement with the 
74.19 	commissioner of natural resources.

74.20	Sec. 7. ZOOLOGICAL BOARD
 	$
	8,410,000
	$
	8,410,000

74.21	Appropriations by Fund
	
74.22		2016
	2017
	
74.23	General
	8,250,000
	8,250,000
	
74.24	Natural Resources
	160,000
	160,000
	
74.25 	$160,000 the first year and $160,000 the 
74.26 	second year are from the natural resources 
74.27 	fund from the revenue deposited under 
74.28 	Minnesota Statutes, section 297A.94, 
74.29 	paragraph (e), clause (5).

74.30	Sec. 8. SCIENCE MUSEUM
 	$
	1,079,000
	$
	1,079,000

74.31	Sec. 9. REPAYMENT; TRANSFER
 					
74.32 	The commissioner of management and 
74.33 	budget shall transfer $14,000,000 in fiscal 
75.1 	year 2018 and $14,000,000 in fiscal year 
75.2 	2019 from the general fund to the closed 
75.3 	landfill investment fund created in Minnesota 
75.4 	Statutes, section 115B.421.

75.5 	ARTICLE 4
75.6 	ENVIRONMENT AND NATURAL RESOURCES STATUTORY CHANGES

75.7 	Section 1. Minnesota Statutes 2014, section 13.7411, subdivision 8, is amended to read:
75.8 		Subd. 8.Pollution Control Agency. (a) Hazardous waste generators. 
75.9 	Information provided by hazardous waste generators under section 473.151 and for which 
75.10 	confidentiality is claimed is governed by section 116.075, subdivision 2.
75.11 	(b) Priority chemicals. Trade secret information and other information submitted 
75.12 	to the Pollution Control Agency related to priority chemicals in children's products are 
75.13 	governed by section 116.9408. 

75.14 	EFFECTIVE DATE. This section is effective July 1, 2016.

75.15 	Sec. 2. Minnesota Statutes 2014, section 84.415, subdivision 7, is amended to read:
75.16 		Subd. 7.Existing road right-of-way;Application fee exemption. (a) A utility 
75.17 	license for crossing public lands or public waters is exempt from all application fees 
75.18 	specified in this section and in rules adopted under this section when the utility crossing is 
75.19 	on an existing right-of-way of a public road.
75.20 	(b) This subdivision does not apply to electric power lines, cables, or conduits 100 
75.21 	kilovolts or greater or to main pipelines for gas, liquids, or solids in suspension.

75.22 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2014.

75.23 	Sec. 3. [84.69] NATURAL RESOURCES CONSERVATION EASEMENT 
75.24 	STEWARDSHIP ACCOUNT.
75.25 		Subdivision 1.Account established; sources. The natural resources conservation 
75.26 	easement stewardship account is created in the special revenue fund. The account consists 
75.27 	of money credited to the account and interest and other earnings on money in the account. 
75.28 	The State Board of Investment must manage the account to maximize long-term gain. The 
75.29 	following revenue must be deposited in the natural resources conservation easement 
75.30 	stewardship account:
75.31 	(1) contributions to the account or specified for any purpose of the account;
76.1 	(2) contributions under subdivision 3; section 84.66, subdivision 11; or other 
76.2 	applicable law;
76.3 	(3) money appropriated for any of the purposes described in subdivision 2;
76.4 	(4) money appropriated for monitoring and enforcement of easements and earnings 
76.5 	on the money appropriated that revert to the state under section 97A.056, subdivision 
76.6 	17, or other applicable law; and
76.7 	(5) gifts under section 84.085 for conservation easement stewardship.
76.8 		Subd. 2.Appropriation; purposes of account. Five percent of the balance on 
76.9 	July 1 of each year in the natural resources conservation easement stewardship account 
76.10 	is annually appropriated to the commissioner of natural resources and may be spent 
76.11 	only to cover the costs of managing conservation easements held by the Department 
76.12 	of Natural Resources, including costs associated with monitoring, landowner contacts, 
76.13 	records storage and management, processing landowner notices, requests for approval 
76.14 	or amendments, enforcement, and legal services associated with conservation easement 
76.15 	management activities.
76.16 		Subd. 3.Financial contributions. The commissioner shall seek a financial 
76.17 	contribution to the natural resources conservation easement stewardship account for each 
76.18 	conservation easement acquired by or assigned to the Department of Natural Resources. 
76.19 	Unless otherwise provided by law, the commissioner shall determine the amount of the 
76.20 	contribution, which must be an amount calculated to earn sufficient money to meet 
76.21 	the costs of managing the conservation easement at a level that neither significantly 
76.22 	overrecovers nor underrecovers the costs. In determining the amount of the financial 
76.23 	contribution, the commissioner shall consider:
76.24 	(1) the estimated annual staff hours needed to manage the conservation easement, 
76.25 	taking into consideration factors such as easement type, size, location, and complexity;
76.26 	(2) the average hourly wages for the class or classes of employees expected to 
76.27 	manage the conservation easement;
76.28 	(3) the estimated annual travel expenses to manage the conservation easement;
76.29 	(4) the estimated annual miscellaneous costs to manage the conservation easement, 
76.30 	including supplies and equipment, information technology support, and aerial flyovers;
76.31 	(5) the estimated annualized cost of legal services, including the cost to enforce the 
76.32 	easement in the event of a violation; and
76.33 	(6) the expected rate of return on investments in the account.

76.34 	EFFECTIVE DATE. Subdivisions 1 and 2 of this section are effective the day 
76.35 	following final enactment. Subdivision 3 of this section is effective for conservation 
77.1 	easements acquired with money appropriated on or after July 1, 2015, and for acquisitions 
77.2 	of conservation easements by gift that are initiated on or after July 1, 2015.

77.3 	Sec. 4. Minnesota Statutes 2014, section 84.82, subdivision 2a, is amended to read:
77.4 		Subd. 2a.Nontrail use registration. A snowmobile may be registered for nontrail 
77.5 	use. A snowmobile registered under this subdivision may not be operated on a state or 
77.6 	grant-in-aid snowmobile trail. The fee for a nontrail use registration of a snowmobile with 
77.7 	an engine displacement that is greater than 125 cubic centimeters is $45 for three years. A 
77.8 	nontrail use registration is not transferable. In addition to other penalties prescribed by 
77.9 	law, the penalty for violation of this subdivision is immediate revocation of the nontrail 
77.10 	use registration. The commissioner shall ensure that the registration sticker provided for 
77.11 	limited nontrail use is of a different color and is distinguishable from other snowmobile 
77.12 	registration and state trail stickers provided.

77.13 	Sec. 5. Minnesota Statutes 2014, section 84.82, subdivision 6, is amended to read:
77.14 		Subd. 6.Exemptions. Registration is not required under this section for:
77.15 	(1) a snowmobile owned and used by the United States, an Indian tribal government, 
77.16 	another state, or a political subdivision thereof;
77.17 	(2) a snowmobile registered in a country other than the United States temporarily 
77.18 	used within this state;
77.19 	(3) a snowmobile that is covered by a valid license of another state and has not been 
77.20 	within this state for more than 30 consecutive days or that is registered by an Indian tribal 
77.21 	government to a tribal member and has not been outside the tribal reservation boundary 
77.22 	for more than 30 consecutive days;
77.23 	(4) a snowmobile used exclusively in organized track racing events;
77.24 	(5) a snowmobile in transit by a manufacturer, distributor, or dealer;
77.25 	(6) a snowmobile at least 15 years old in transit by an individual for use only on 
77.26 	land owned or leased by the individual; or
77.27 	(7) a snowmobile while being used to groom a state or grant-in-aid trail; or
77.28 	(8) a snowmobile with an engine displacement that is 125 cubic centimeters or less 
77.29 	and the snowmobile is not operated on a state or grant-in-aid trail.

77.30 	Sec. 6. Minnesota Statutes 2014, section 84.92, subdivision 8, is amended to read:
77.31 		Subd. 8.All-terrain vehicle or vehicle.  "All-terrain vehicle" or "vehicle" means 
77.32 	a motorized vehicle of with: (1) not less than three, but not more than six low pressure 
77.33 	or non-pneumatic tires, that is limited in engine displacement of less than 1,000 cubic 
78.1 	centimeters and; (2) a total dry weight of 2,000 pounds or less; and (3) a total width 
78.2 	from outside of tire rim to outside of tire rim that is 65 inches or less. All-terrain vehicle  
78.3 	includes a class 1 all-terrain vehicle and class 2 all-terrain vehicle. All-terrain vehicle does 
78.4 	not include a golf cart, mini-truck, dune buggy, or go-cart or a vehicle designed and used 
78.5 	specifically for lawn maintenance, agriculture, logging, or mining purposes.

78.6 	Sec. 7. Minnesota Statutes 2014, section 84.92, subdivision 9, is amended to read:
78.7 		Subd. 9.Class 1 all-terrain vehicle. "Class 1 all-terrain vehicle" means an 
78.8 	all-terrain vehicle that has a total dry weight of less than 1,200 pounds width from outside 
78.9 	of tire rim to outside of tire rim that is 50 inches or less.

78.10 	Sec. 8. Minnesota Statutes 2014, section 84.92, subdivision 10, is amended to read:
78.11 		Subd. 10.Class 2 all-terrain vehicle. "Class 2 all-terrain vehicle" means an 
78.12 	all-terrain vehicle that has a total dry weight of 1,200 to 1,800 pounds width from outside 
78.13 	of tire rim to outside of tire rim that is greater than 50 inches but not more than 65 inches.

78.14 	Sec. 9. Minnesota Statutes 2014, section 84.922, subdivision 5, is amended to read:
78.15 		Subd. 5.Fees for registration. (a) The fee for a three-year registration of 
78.16 	an all-terrain vehicle under this section, other than those registered by a dealer or 
78.17 	manufacturer under paragraph (b) or (c), is:
78.18 	(1) for public use, $45 for class 1 all-terrain vehicles and $48 for class 2 all-terrain 
78.19 	vehicles;
78.20 	(2) for private use, $6; and
78.21 	(3) for a duplicate or transfer, $4.
78.22 	(b) The total registration fee for all-terrain vehicles owned by a dealer and operated for 
78.23 	demonstration or testing purposes is $50 per year. Dealer registrations are not transferable.
78.24 	(c) The total registration fee for all-terrain vehicles owned by a manufacturer and 
78.25 	operated for research, testing, experimentation, or demonstration purposes is $150 per 
78.26 	year. Manufacturer registrations are not transferable.
78.27 	(d) The onetime fee for registration of an all-terrain vehicle under subdivision 2b is $6.
78.28 	(e) The fees collected under this subdivision must be credited to the all-terrain 
78.29 	vehicle account.

78.30 	Sec. 10. Minnesota Statutes 2014, section 84D.01, is amended by adding a subdivision 
78.31 	to read:
79.1 		Subd. 1a.Aquatic invasive species affirmation. "Aquatic invasive species 
79.2 	affirmation" means an affirmation of the summary of the aquatic invasive species laws of 
79.3 	this chapter that is part of watercraft licenses and nonresident fishing licenses, as provided 
79.4 	in section 84D.106.

79.5 	EFFECTIVE DATE. This section is effective January 1, 2016.

79.6 	Sec. 11. [84D.106] AQUATIC INVASIVE SPECIES AFFIRMATION.
79.7 	Aquatic invasive species affirmation is required for all:
79.8 	(1) watercraft licenses issued under section 86B.401; and
79.9 	(2) all nonresident fishing licenses, as provided in section 97C.301, subdivision 2a.

79.10 	EFFECTIVE DATE. Clause (1) of this section is effective January 1, 2016. Clause 
79.11 	(2) of this section is effective March 1, 2016.

79.12 	Sec. 12. Minnesota Statutes 2014, section 84D.13, subdivision 5, is amended to read:
79.13 		Subd. 5.Civil penalties. (a) A civil citation issued under this section must impose 
79.14 	the following penalty amounts:
79.15 	(1) for transporting aquatic macrophytes in violation of section 84D.09, $100;
79.16 	(2) for placing or attempting to place into waters of the state water-related equipment 
79.17 	that has aquatic macrophytes attached, $200;
79.18 	(3) for unlawfully possessing or transporting a prohibited invasive species other 
79.19 	than an aquatic macrophyte, $500;
79.20 	(4) for placing or attempting to place into waters of the state water-related equipment 
79.21 	that has prohibited invasive species attached when the waters are not listed by the 
79.22 	commissioner as being infested with that invasive species, $500;
79.23 	(5) for intentionally damaging, moving, removing, or sinking a buoy marking, as 
79.24 	prescribed by rule, Eurasian water milfoil, $100;
79.25 	(6) for failing to have drain plugs or similar devices removed or opened while 
79.26 	transporting water-related equipment or for failing to remove plugs, open valves, and 
79.27 	drain water from water-related equipment, other than marine sanitary systems, before 
79.28 	leaving waters of the state, $100; and
79.29 	(7) for transporting infested water off riparian property without a permit as required 
79.30 	by rule, $200; and
79.31 	(8) for failing to have aquatic invasive species affirmation displayed or available for 
79.32 	inspection as provided in sections 86B.401 and 97C.301, subdivision 2a, $25.
80.1 	(b) A civil citation that is issued to a person who has one or more prior convictions 
80.2 	or final orders for violations of this chapter is subject to twice the penalty amounts listed 
80.3 	in paragraph (a).

80.4 	Sec. 13. Minnesota Statutes 2014, section 84D.15, subdivision 3, is amended to read:
80.5 		Subd. 3.Use of money in account. Money credited to the invasive species account 
80.6 	in subdivision 2 shall be used for management of invasive species and implementation of 
80.7 	this chapter as it pertains to invasive species, including control, public awareness, law 
80.8 	enforcement, assessment and monitoring, management planning, habitat improvements, 
80.9 	and research.

80.10 	Sec. 14. Minnesota Statutes 2014, section 85.015, is amended by adding a subdivision 
80.11 	to read:
80.12 		Subd. 6a.Mississippi Blufflands Trail; Goodhue and Wabasha Counties. (a) 
80.13 	The Mississippi Blufflands Trail shall originate at the Cannon Valley Trail and thence 
80.14 	extend generally southeasterly along the Mississippi River through Frontenac State Park in 
80.15 	Goodhue County and continue through Goodhue and Wabasha Counties to the city of Lake 
80.16 	City, and there terminate. The trail shall include connections to the Rattlesnake Bluff Trail.
80.17 	(b) The trail shall be developed primarily for riding and hiking.
80.18 	(c) In establishing, developing, maintaining, and operating the trail, the 
80.19 	commissioner shall cooperate with local units of government and private individuals and 
80.20 	groups whenever feasible.

80.21 	Sec. 15. Minnesota Statutes 2014, section 85.055, subdivision 1, is amended to read:
80.22 		Subdivision 1.Fees. The fee for state park permits for:
80.23 	(1) an annual use of state parks is $25 $30;
80.24 	(2) a second or subsequent vehicle state park permit is $18;
80.25 	(3) a state park permit valid for one day is $5 $6;
80.26 	(4) a daily vehicle state park permit for groups is $3;
80.27 	(5) an annual permit for motorcycles is $20;
80.28 	(6) an employee's state park permit is without charge; and
80.29 	(7) a state park permit for persons with disabilities under section 85.053, subdivision 
80.30 	7, paragraph (a), clauses (1) to (3), is $12.
80.31 	The fees specified in this subdivision include any sales tax required by state law.

80.32 	Sec. 16. Minnesota Statutes 2014, section 85.32, subdivision 1, is amended to read:
81.1 		Subdivision 1.Areas marked. The commissioner of natural resources is authorized 
81.2 	in cooperation with local units of government and private individuals and groups when 
81.3 	feasible to mark state water trails on the Little Fork, Big Fork, Minnesota, St. Croix, 
81.4 	Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, St. Louis, Pine, 
81.5 	Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift County, Watonwan, 
81.6 	Cottonwood, Whitewater, Chippewa from Benson in Swift County to Montevideo in 
81.7 	Chippewa County, Long Prairie, Red River of the North, Sauk, Otter Tail, Redwood, 
81.8 	Blue Earth, Cedar, Shell Rock, and Crow Rivers which have historic and scenic values 
81.9 	and to mark appropriately points of interest, portages, camp sites, and all dams, rapids, 
81.10 	waterfalls, whirlpools, and other serious hazards which are dangerous to canoe, kayak, 
81.11 	and watercraft travelers.

81.12 	Sec. 17. Minnesota Statutes 2014, section 86B.401, subdivision 3, is amended to read:
81.13 		Subd. 3.Licensing. (a) The license agent shall register the watercraft on receiving 
81.14 	an application and the license fee. A license and registration sticker with a registration 
81.15 	number shall be issued and must be affixed to the watercraft as prescribed by the 
81.16 	commissioner of natural resources.
81.17 	(b) A license includes aquatic invasive species affirmation as provided in section 
81.18 	84D.106. The aquatic invasive species affirmation portion of the license must be displayed 
81.19 	with the signed license certificate. The aquatic invasive species affirmation will be 
81.20 	provided with an application for a new, transfer, duplicate, or renewal watercraft license.
81.21 	(c) The license is not valid unless signed by at least one owner.
81.22 	(d) Failure to complete the aquatic invasive species affirmation in this subdivision is 
81.23 	subject to the penalty prescribed in section 84D.13, subdivision 5.

81.24 	EFFECTIVE DATE. This section is effective January 1, 2016.

81.25 	Sec. 18. Minnesota Statutes 2014, section 87A.10, is amended to read:
81.26 	87A.10 TRAP, SKEET, AND ARCHERY SHOOTING SPORTS FACILITY 
81.27 	GRANTS.
81.28 	The commissioner of natural resources shall administer a program to provide 
81.29 	cost-share grants to local recreational shooting clubs or local units of government for up to 
81.30 	50 percent of the costs of developing or rehabilitating trap, skeet, and archery shooting 
81.31 	sports facilities for public use. A facility rehabilitated or developed with a grant under this 
81.32 	section must be open to the general public at reasonable times and for a reasonable fee 
82.1 	on a walk-in basis. The commissioner shall give preference to projects that will provide 
82.2 	the most opportunities for youth.

82.3 	Sec. 19. Minnesota Statutes 2014, section 88.6435, subdivision 4, is amended to read:
82.4 		Subd. 4.Forest bough account; disposition of fees. (a) The forest bough account 
82.5 	is established in the state treasury within the natural resources fund.
82.6 	(b) Fees for permits issued under this section shall must be deposited in the state 
82.7 	treasury and credited to the forest bough account and, except for the electronic licensing 
82.8 	system commission established by the commissioner under section 84.027, subdivision 
82.9 	15, are annually appropriated to the commissioner of natural resources for costs associated 
82.10 	with balsam bough educational special forest product information and education programs 
82.11 	for harvesters and buyers.

82.12 	Sec. 20. Minnesota Statutes 2014, section 90.14, is amended to read:
82.13 	90.14 AUCTION SALE PROCEDURE.
82.14 	(a) All state timber shall be offered and sold by the same unit of measurement as it 
82.15 	was appraised. No tract shall be sold to any person other than the purchaser in whose name 
82.16 	the bid was made. The commissioner may refuse to approve any and all bids received and 
82.17 	cancel a sale of state timber for good and sufficient reasons.
82.18 	(b) The purchaser at any sale of timber shall, immediately upon the approval of the 
82.19 	bid, or, if unsold at public auction, at the time of purchase at a subsequent sale under section 
82.20 	90.101, subdivision 1, pay to the commissioner a down payment of 15 percent of the 
82.21 	appraised value. In case any purchaser fails to make such payment, the purchaser shall be 
82.22 	liable therefor to the state in a civil action, and the commissioner may reoffer the timber for 
82.23 	sale as though no bid or sale under section 90.101, subdivision 1, therefor had been made.
82.24 	(c) In lieu of the scaling of state timber required by this chapter, a purchaser of state 
82.25 	timber may, at the time of payment by the purchaser to the commissioner of 15 percent 
82.26 	of the appraised value, elect in writing on a form prescribed by the attorney general to 
82.27 	purchase a permit based solely on the appraiser's estimate of the volume of timber described 
82.28 	in the permit, provided that the commissioner has expressly designated the availability of 
82.29 	such option for that tract on the list of tracts available for sale as required under section 
82.30 	90.101. A purchaser who elects in writing on a form prescribed by the attorney general 
82.31 	to purchase a permit based solely on the appraiser's estimate of the volume of timber 
82.32 	described on the permit does not have recourse to the provisions of section 90.281.
82.33 	(d) In the case of a public auction sale conducted by a sealed bid process, tracts shall 
82.34 	be awarded to the high bidder, who shall pay to the commissioner a down payment of 15 
83.1 	percent of the appraised value that must be received or postmarked within 14 days of 
83.2 	the date of the sealed bid opening. If a purchaser fails to make the down payment, the 
83.3 	purchaser is liable for the down payment to the state and the commissioner may offer the 
83.4 	timber for sale to the next highest bidder as though no higher bid had been made.
83.5 	(e) Except as otherwise provided by law, at the time the purchaser signs a permit 
83.6 	issued under section 90.151, the commissioner shall require the purchaser to make a bid 
83.7 	guarantee payment to the commissioner in an amount equal to 15 percent of the total 
83.8 	purchase price of the permit less the down payment amount required by paragraph (b) 
83.9 	for any bid increase in excess of $5,000 $10,000 of the appraised value. If a required bid 
83.10 	guarantee payment is not submitted with the signed permit, no harvesting may occur, the 
83.11 	permit cancels, and the down payment for timber forfeits to the state. The bid guarantee 
83.12 	payment forfeits to the state if the purchaser and successors in interest fail to execute 
83.13 	an effective permit.

83.14 	EFFECTIVE DATE. This section is effective June 1, 2015, and applies to permits 
83.15 	sold on or after that date.

83.16 	Sec. 21. Minnesota Statutes 2014, section 90.193, is amended to read:
83.17 	90.193 EXTENSION OF TIMBER PERMITS.
83.18 	The commissioner may, in the case of an exceptional circumstance beyond the 
83.19 	control of the timber permit holder which makes it unreasonable, impractical, and not 
83.20 	feasible to complete cutting and removal under the permit within the time allowed, grant 
83.21 	one regular extension for one year. A written request for the regular extension must be 
83.22 	received by the commissioner before the permit expires. The request must state the reason 
83.23 	the extension is necessary and be signed by the permit holder. An interest rate of eight 
83.24 	five percent may be charged for the period of extension.

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

83.26 	Sec. 22. [92.83] CONDEMNATION OF SCHOOL TRUST LAND.
83.27 		Subdivision 1.Purpose. The purpose of this section is to extinguish the school trust 
83.28 	interest in school trust lands where long-term economic return is prohibited by designation 
83.29 	or policy while producing economic benefits for Minnesota's public schools. For the 
83.30 	purposes of satisfying the Minnesota Constitution, article XI, section 8, which limits the 
83.31 	sale of school trust lands to a public sale, the commissioner of natural resources shall 
83.32 	acquire school trust lands through condemnation, as provided in subdivision 2.
84.1 		Subd. 2.Commencement of condemnation proceedings. When the commissioner 
84.2 	of natural resources has determined sufficient money is available to acquire any of the 
84.3 	lands identified under section 84.027, subdivision 18, paragraph (c), the commissioner 
84.4 	shall proceed to extinguish the school trust interest by condemnation action. When 
84.5 	requested by the commissioner, the attorney general shall commence condemnation of 
84.6 	the identified school trust lands.
84.7 		Subd. 3.Payment. The portion of the payment of the award and judgment that 
84.8 	is for the value of the land shall be deposited into the permanent school fund. The 
84.9 	remainder of the award and judgment payment shall first be remitted for reimbursement 
84.10 	to the accounts from which expenses were paid, with any remainder deposited into the 
84.11 	permanent school fund.
84.12 		Subd. 4.Account. The school trust lands account is created in the state treasury. 
84.13 	Money credited to the account is appropriated to the commissioner of natural resources 
84.14 	for the purposes of this section.

84.15 	Sec. 23. Minnesota Statutes 2014, section 93.20, subdivision 18, is amended to read:
84.16 		Subd. 18.Schedule 7. Schedule 7. Taconite ore shall be understood to mean a 
84.17 	ferruginous chert or ferruginous slate in the form of compact siliceous rock, in which the 
84.18 	iron oxide is so finely disseminated that substantially all of the iron-bearing particles of 
84.19 	merchantable grade are smaller than 20 mesh.
84.20 	Taconite concentrates shall be understood to mean the merchantable product, suitable 
84.21 	for blast furnace use, which, in accordance with good engineering and metallurgical 
84.22 	practice, has been produced from taconite ore which requires treatment by fine grinding, 
84.23 	magnetic separation, flotation, or some other method or methods other than or in addition 
84.24 	to one or more of the methods specified in schedules 1 to 6, inclusive.
84.25 	On a ton of taconite concentrates averaging in dried iron 40.49 percent or less, the 
84.26 	royalty shall be no less than 11 cents. The royalty rate shall be increased one percent for 
84.27 	each increase of one percent, or fraction thereof, in dried iron analysis.
84.28 	In lieu of payment of such royalty on the taconite concentrates, royalty payments 
84.29 	may be made on the taconite ore as set forth in section 93.201.

84.30 	EFFECTIVE DATE. This section is effective the day following final enactment 
84.31 	and applies to both existing and new leases entered into under this section.

84.32 	Sec. 24. Minnesota Statutes 2014, section 94.16, subdivision 3, is amended to read:
84.33 		Subd. 3.Proceeds from natural resources land. (a) Except as provided in 
84.34 	paragraph paragraphs (b) and (c), the remainder of the proceeds from the sale of lands 
85.1 	classified as a unit of the outdoor recreation system under section 86A.05 that were under 
85.2 	the control and supervision of the commissioner of natural resources shall be credited to 
85.3 	the land acquisition account in the natural resources fund.
85.4 	(b) The remainder of the proceeds from the sale of administrative sites under the 
85.5 	control and supervision of the commissioner of natural resources shall be credited to the 
85.6 	facilities management account established under section 84.0857 and used to acquire 
85.7 	facilities or renovate existing buildings for administrative use or to acquire land for, 
85.8 	design, and construct administrative buildings for the Department of Natural Resources.
85.9 	(c) The remainder of the proceeds from the sale of land not within a unit of the 
85.10 	outdoor recreation system under section 86A.05 and not an administrative site, but under 
85.11 	the control and supervision of the commissioner of natural resources, shall be credited to 
85.12 	the school trust lands account established under section 92.83.

85.13 	Sec. 25. Minnesota Statutes 2014, section 97A.055, subdivision 4b, is amended to read:
85.14 		Subd. 4b.Citizen oversight committees. (a) The commissioner shall appoint 
85.15 	committees of affected persons to review the reports prepared under subdivision 4; review 
85.16 	the proposed work plans and budgets for the coming year; propose changes in policies, 
85.17 	activities, and revenue enhancements or reductions; review other relevant information; 
85.18 	and make recommendations to the legislature and the commissioner for improvements in 
85.19 	the management and use of money in the game and fish fund.
85.20 	(b) The commissioner shall appoint the following committees, each comprised 
85.21 	of at least ten affected persons:
85.22 	(1) a Fisheries Oversight Committee to review fisheries funding and expenditures, 
85.23 	including activities related to trout and salmon stamps and walleye stamps; and
85.24 	(2) a Wildlife Oversight Committee to review wildlife funding and expenditures, 
85.25 	including activities related to migratory waterfowl, pheasant, and wild turkey management 
85.26 	and deer and big game management.
85.27 	(c) The chairs of the Fisheries Oversight Committee and the Wildlife Oversight 
85.28 	Committee, and four additional members from each committee, shall form a Budgetary 
85.29 	Oversight Committee to coordinate the integration of the fisheries and wildlife oversight 
85.30 	committee reports into an annual report to the legislature; recommend changes on a broad 
85.31 	level in policies, activities, and revenue enhancements or reductions; and provide a forum 
85.32 	to address issues that transcend the fisheries and wildlife oversight committees.
85.33 	(d) The Budgetary Oversight Committee shall develop recommendations for a 
85.34 	biennial budget plan and report for expenditures on game and fish activities. By August 15 
85.35 	of each even-numbered year, the committee shall submit the budget plan recommendations 
86.1 	to the commissioner and to the senate and house of representatives committees with 
86.2 	jurisdiction over natural resources finance.
86.3 	(e) The chairs of the Fisheries Oversight Committee and the Wildlife Oversight 
86.4 	Committee shall be chosen by their respective committees. The chair of the Budgetary 
86.5 	Oversight Committee shall be appointed by the commissioner and may not be the chair of 
86.6 	either of the other oversight committees.
86.7 	(f) The Budgetary Oversight Committee may make recommendations to the 
86.8 	commissioner and to the senate and house of representatives committees with jurisdiction 
86.9 	over natural resources finance for outcome goals from expenditures.
86.10 	(g) The committees authorized under this subdivision are not advisory councils or 
86.11 	committees governed by section 15.059 and are not subject to section 15.059. Committee 
86.12 	members appointed by the commissioner may request reimbursement for mileage 
86.13 	expenses in the same manner and amount as authorized by the commissioner's plan 
86.14 	adopted under section 43A.18, subdivision 2. Committee members must not receive daily 
86.15 	compensation for oversight activities. The Fisheries Oversight Committee, the Wildlife 
86.16 	Oversight Committee, and the Budgetary Oversight Committee expire June 30, 2015 2020.

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

86.18 	Sec. 26. Minnesota Statutes 2014, section 97B.301, is amended by adding a 
86.19 	subdivision to read:
86.20 		Subd. 9.Residents age 84 or over may take deer of either sex. A resident age 84 
86.21 	or over may take a deer of either sex. This subdivision does not authorize the taking of an 
86.22 	antlerless deer by another member of a party under subdivision 3.

86.23 	Sec. 27. Minnesota Statutes 2014, section 97C.301, is amended by adding a 
86.24 	subdivision to read:
86.25 		Subd. 2a.Aquatic invasive species affirmation. (a) A nonresident license to 
86.26 	take fish issued under section 97A.475, subdivision 7, includes aquatic invasive species 
86.27 	affirmation as provided in section 84D.106.
86.28 	(b) The aquatic invasive species affirmation portion of the license must be displayed 
86.29 	with the signed nonresident license to take fish issued under section 97A.475, subdivision 
86.30 	7. The aquatic invasive species affirmation will be provided at the time of purchase of a 
86.31 	new or duplicate nonresident license.
86.32 	(c) If a license is purchased online, the aquatic invasive species affirmation may be 
86.33 	completed electronically as part of the online sales process, and the electronic record of 
86.34 	the license sale will be sufficient for documenting the affirmation.
87.1 	(d) Failure to complete the aquatic invasive species affirmation in this subdivision is 
87.2 	subject to the penalty prescribed in section 84D.13, subdivision 5.

87.3 	EFFECTIVE DATE. This section is effective March 1, 2016.

87.4 	Sec. 28. Minnesota Statutes 2014, section 103B.101, is amended by adding a 
87.5 	subdivision to read:
87.6 		Subd. 16.Wetland stakeholder coordination. The board shall work with 
87.7 	wetland stakeholders to foster mutual understanding and provide recommendations for 
87.8 	improvements to the management of wetlands and related land and water resources, 
87.9 	including recommendations for updating the Wetland Conservation Act, developing 
87.10 	an in-lieu fee program as defined in section 103G.005, subdivision 10g, and related 
87.11 	provisions. The board may convene informal working groups or work teams to provide 
87.12 	information and education and to develop recommendations.

87.13 	Sec. 29. [103B.103] EASEMENT STEWARDSHIP ACCOUNTS.
87.14 		Subdivision 1.Accounts established; sources. (a) The water and soil conservation 
87.15 	easement stewardship account and the mitigation easement stewardship account are 
87.16 	created in the special revenue fund. The accounts consist of money credited to the 
87.17 	accounts and interest and other earnings on money in the accounts. The State Board of 
87.18 	Investment must manage the accounts to maximize long-term gain.
87.19 	(b) Revenue from contributions and money appropriated for any purposes of the 
87.20 	account as described in subdivision 2 must be deposited in the water and soil conservation 
87.21 	easement stewardship account. Revenue from contributions, wetland banking fees 
87.22 	designated for stewardship purposes by the board, easement stewardship payments 
87.23 	authorized under subdivision 3, and money appropriated for any purposes of the account 
87.24 	as described in subdivision 2 must be deposited in the mitigation easement stewardship 
87.25 	account.
87.26 		Subd. 2.Appropriation; purposes of accounts. Five percent of the balance on 
87.27 	July 1 each year in the water and soil conservation easement stewardship account and 
87.28 	five percent of the balance on July 1 each year in the mitigation easement stewardship 
87.29 	account are annually appropriated to the board and may be spent only to cover the costs 
87.30 	of managing easements held by the board, including costs associated with monitoring, 
87.31 	landowner contacts, records storage and management, processing landowner notices, 
87.32 	requests for approval or amendments, enforcement, and legal services associated with 
87.33 	easement management activities.
88.1 		Subd. 3.Financial contributions. The board shall seek a financial contribution 
88.2 	to the water and soil conservation easement stewardship account for each conservation 
88.3 	easement acquired by the board. The board shall seek a financial contribution or assess an 
88.4 	easement stewardship payment to the mitigation easement stewardship account for each 
88.5 	wetland banking easement acquired by the board. Unless otherwise provided by law, 
88.6 	the board shall determine the amount of the contribution or payment, which must be an 
88.7 	amount calculated to earn sufficient money to meet the costs of managing the easement at 
88.8 	a level that neither significantly overrecovers nor underrecovers the costs. In determining 
88.9 	the amount of the financial contribution, the board shall consider:
88.10 	(1) the estimated annual staff hours needed to manage the conservation easement, 
88.11 	taking into consideration factors such as easement type, size, location, and complexity;
88.12 	(2) the average hourly wages for the class or classes of state and local employees 
88.13 	expected to manage the easement;
88.14 	(3) the estimated annual travel expenses to manage the easement;
88.15 	(4) the estimated annual miscellaneous costs to manage the easement, including 
88.16 	supplies and equipment, information technology support, and aerial flyovers;
88.17 	(5) the estimated annualized costs of legal services, including the cost to enforce the 
88.18 	easement in the event of a violation; and 
88.19 	(6) the expected rate of return on investments in the account.

88.20 	EFFECTIVE DATE. Subdivisions 1 and 2 of this section are effective the day 
88.21 	following final enactment. Subdivision 3 of this section is effective for conservation 
88.22 	easements acquired with money appropriated on or after July 1, 2015, and for acquisitions 
88.23 	of conservation easements by gift or as a condition of approval for wetland mitigation as 
88.24 	provided in Minnesota Rules, chapter 8420, that are initiated on or after July 1, 2015.

88.25 	Sec. 30. Minnesota Statutes 2014, section 103B.3355, is amended to read:
88.26 	103B.3355 WETLAND FUNCTIONS FOR DETERMINING PUBLIC 
88.27 	VALUES.
88.28 	(a) The public values of wetlands must be determined based upon the functions of 
88.29 	wetlands for:
88.30 	(1) water quality, including filtering of pollutants to surface and groundwater, 
88.31 	utilization of nutrients that would otherwise pollute public waters, trapping of sediments, 
88.32 	shoreline protection, and utilization of the wetland as a recharge area for groundwater;
89.1 	(2) floodwater and storm water retention, including the potential for flooding in 
89.2 	the watershed, the value of property subject to flooding, and the reduction in potential 
89.3 	flooding by the wetland;
89.4 	(3) public recreation and education, including hunting and fishing areas, wildlife 
89.5 	viewing areas, and nature areas;
89.6 	(4) commercial uses, including wild rice and cranberry growing and harvesting 
89.7 	and aquaculture;
89.8 	(5) fish, wildlife, native plant habitats;
89.9 	(6) low-flow augmentation;
89.10 	(7) carbon sequestration; and
89.11 	(8) other public uses.
89.12 	(b) The Board of Water and Soil Resources, in consultation with the commissioners of 
89.13 	natural resources and agriculture and local government units, shall adopt rules establishing:
89.14 	(1) scientific methodologies for determining the functions of wetlands; and
89.15 	(2) criteria for determining the resulting public values of wetlands.
89.16 	(c) The methodologies and criteria established under this section or other 
89.17 	methodologies and criteria that include the functions in paragraph (a) and are approved 
89.18 	by the board, in consultation with the commissioners of natural resources and agriculture 
89.19 	and local government units, must be used to determine the functions and resulting public 
89.20 	values of wetlands in the state. The functions listed in paragraph (a) are not listed in 
89.21 	order of priority.
89.22 	(d) Public value criteria established or approved by the board under this section do 
89.23 	not apply in areas subject to local comprehensive wetland protection and management 
89.24 	plans established under section 103G.2243.
89.25 	(e) The Board of Water and Soil Resources, in consultation with the commissioners 
89.26 	of natural resources and agriculture and local government units, may must identify regions 
89.27 	areas of the state where preservation, enhancement, restoration, and establishment 
89.28 	of wetlands would have high public value. The board, in consultation with the 
89.29 	commissioners, may must identify high priority wetland regions areas for wetland 
89.30 	replacement using available information relating to the factors listed in paragraph 
89.31 	(a), the historic loss and abundance of wetlands, current applicable state and local 
89.32 	government water management and natural resource plans, and studies using a watershed 
89.33 	approach to identify current and future watershed needs. The board shall notify local 
89.34 	units of government with water planning authority of these high priority regions areas. 
89.35 	Designation of high priority areas is exempt from the rulemaking requirements of chapter 
90.1 	14, and section 14.386 does not apply. Designation of high priority areas is not effective 
90.2 	until 30 days after publication in the State Register.
90.3 	(f) Local units of government, as part of a state-approved comprehensive local 
90.4 	water management plan as defined in section 103B.3363, subdivision 3, a state-approved 
90.5 	comprehensive watershed management plan as defined in section 103B.3363, subdivision 
90.6 	3a, or a state-approved local comprehensive wetland protection and management plan 
90.7 	under section 103G.2243, may identify priority areas for wetland replacement and provide 
90.8 	them for consideration under paragraph (e).

90.9 	Sec. 31. [103F.519] WORKING LANDS WATERSHED RESTORATION 
90.10 	PROGRAM.
90.11 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
90.12 	have the meanings given.
90.13 	(b) "Advanced biofuel" has the meaning given in section 239.051, subdivision 1a.
90.14 	(c) "Agricultural use" has the meaning given in section 17.81, subdivision 4.
90.15 	(d) "Board" means the Board of Water and Soil Resources.
90.16 	(e) "Perennial crops" means agriculturally produced plants that are known to be 
90.17 	noninvasive and not listed as a noxious weed in Minnesota and that have a life cycle of at 
90.18 	least three years at the location where the plants are being cultivated. Biomass from alfalfa 
90.19 	produced in a two-year rotation is considered a perennial crop.
90.20 		Subd. 2.Establishment. The board shall administer a perennial feedstock program 
90.21 	to incentivize the establishment and maintenance of perennial agricultural crops. The 
90.22 	board shall contract with landowners and give priority to contracts that implement water 
90.23 	protection actions as identified in a completed watershed restoration and protection 
90.24 	strategy developed under section 114D.26.
90.25 		Subd. 3.Eligible land. Land eligible under this section must:
90.26 	(1) have been in agricultural use or have been set aside, enrolled, or diverted under 
90.27 	another federal or state government program for at least two of the last five years before 
90.28 	the date of application; and
90.29 	(2) not be currently set aside, enrolled, or diverted under another federal or state 
90.30 	government program.
90.31 		Subd. 4.Contract terms. (a) The board shall offer a contract rate of no more 
90.32 	than 90 percent of the most recent federal conservation reserve program payment for the 
90.33 	county in which the land is located. The board may make additional payments to assist 
90.34 	with the establishment of perennial crops.
90.35 	(b) Contracts must be at least ten years in duration.
91.1 	(c) Perennial crops grown on lands enrolled under this section may be used for 
91.2 	advanced biofuel feedstock or livestock feed. Perennial plants may be processed in a 
91.3 	manner that utilizes a portion of the plant for livestock. Mechanical harvest is not allowed 
91.4 	before July 1 in any year.
91.5 	(d) The board shall prioritize lands with the highest potential to leverage federal 
91.6 	funding.
91.7 	(e) The board may establish additional contract terms.
91.8 		Subd. 5.Pilot watershed selection. The board may select up to two watersheds in 
91.9 	which to conduct an initial pilot program of up to 100,000 total acres. Project watersheds 
91.10 	must have, as determined by the board:
91.11 	(1) a completed watershed restoration and protection strategy developed under 
91.12 	section 114D.26 or a hydrological simulation program model approved by the Pollution 
91.13 	Control Agency;
91.14 	(2) multiple water quality impairments resulting primarily from agricultural practices;
91.15 	(3) a viable proposed advanced biofuel production facility located within 50 miles 
91.16 	of the perennial feedstock grown under this section; and
91.17 	(4) sufficient additional acres of cropland available for perennial crop production to 
91.18 	adequately supply the proposed advanced biofuel production facility.

91.19 	Sec. 32. Minnesota Statutes 2014, section 103F.612, subdivision 2, is amended to read:
91.20 		Subd. 2.Application. (a) A wetland owner may apply to the county where a 
91.21 	wetland is located for designation of a wetland preservation area in a high priority wetland 
91.22 	area identified in a comprehensive local water plan, as defined in section 103B.3363, 
91.23 	subdivision 3, and located within a high priority wetland region designated by the Board 
91.24 	of Water and Soil Resources, if the county chooses to accept wetland preservation area 
91.25 	applications. The application must be made on forms provided by the board. If a wetland 
91.26 	is located in more than one county, the application must be submitted to the county where 
91.27 	the majority of the wetland is located.
91.28 	(b) The application shall be executed and acknowledged in the manner required 
91.29 	by law to execute and acknowledge a deed and must contain at least the following 
91.30 	information and other information the Board of Water and Soil Resources requires:
91.31 	(1) legal description of the area to be approved, which must include an upland strip 
91.32 	at least 16-1/2 feet in width around the perimeter of wetlands within the area and may 
91.33 	include total upland area of up to four acres for each acre of wetland;
91.34 	(2) parcel identification numbers where designated by the county auditor;
91.35 	(3) name and address of the owner;
92.1 	(4) a statement by the owner covenanting that the land will be preserved as a wetland 
92.2 	and will only be used in accordance with conditions prescribed by the Board of Water and 
92.3 	Soil Resources and providing that the restrictive covenant will be binding on the owner 
92.4 	and the owner's successors or assigns, and will run with the land.
92.5 	(c) The upland strip required in paragraph (b), clause (1), must be planted with 
92.6 	permanent vegetation other than a noxious weed.

92.7 	Sec. 33. Minnesota Statutes 2014, section 103G.005, is amended by adding a 
92.8 	subdivision to read:
92.9 		Subd. 10g.In-lieu fee program. "In-lieu fee program" means a program in which 
92.10 	wetland replacement requirements of section 103G.222 are satisfied through payment of 
92.11 	money to the board or a board-approved sponsor to develop replacement credits according 
92.12 	to section 103G.2242, subdivision 12.

92.13 	Sec. 34. Minnesota Statutes 2014, section 103G.222, subdivision 1, is amended to read:
92.14 		Subdivision 1.Requirements. (a) Wetlands must not be drained or filled, wholly or 
92.15 	partially, unless replaced by restoring or creating wetland areas of actions that provide 
92.16 	at least equal public value under a replacement plan approved as provided in section 
92.17 	103G.2242, a replacement plan under a local governmental unit's comprehensive wetland 
92.18 	protection and management plan approved by the board under section 103G.2243, or, if a 
92.19 	permit to mine is required under section 93.481, under a mining reclamation plan approved 
92.20 	by the commissioner under the permit to mine. For project-specific wetland replacement 
92.21 	completed prior to wetland impacts authorized or conducted under a permit to mine within 
92.22 	the Great Lakes and Rainy River watershed basins, those basins shall be considered a single 
92.23 	watershed for purposes of determining wetland replacement ratios. Mining reclamation 
92.24 	plans shall apply the same principles and standards for replacing wetlands by restoration 
92.25 	or creation of wetland areas that are applicable to mitigation plans approved as provided 
92.26 	in section 103G.2242. Public value must be determined in accordance with section 
92.27 	103B.3355 or a comprehensive wetland protection and management plan established 
92.28 	under section 103G.2243. Sections 103G.221 to 103G.2372 also apply to excavation in 
92.29 	permanently and semipermanently flooded areas of types 3, 4, and 5 wetlands.
92.30 	(b) Replacement must be guided by the following principles in descending order 
92.31 	of priority:
92.32 	(1) avoiding the direct or indirect impact of the activity that may destroy or diminish 
92.33 	the wetland;
93.1 	(2) minimizing the impact by limiting the degree or magnitude of the wetland 
93.2 	activity and its implementation;
93.3 	(3) rectifying the impact by repairing, rehabilitating, or restoring the affected 
93.4 	wetland environment;
93.5 	(4) reducing or eliminating the impact over time by preservation and maintenance 
93.6 	operations during the life of the activity;
93.7 	(5) compensating for the impact by restoring a wetland; and
93.8 	(6) compensating for the impact by replacing or providing substitute wetland 
93.9 	resources or environments.
93.10 	For a project involving the draining or filling of wetlands in an amount not exceeding 
93.11 	10,000 square feet more than the applicable amount in section 103G.2241, subdivision 9, 
93.12 	paragraph (a), the local government unit may make an on-site sequencing determination 
93.13 	without a written alternatives analysis from the applicant.
93.14 	(c) If a wetland is located in a cultivated field, then replacement must be accomplished 
93.15 	through restoration only without regard to the priority order in paragraph (b), provided 
93.16 	that the altered wetland is not converted to a nonagricultural use for at least ten years.
93.17 	(d) If a wetland is replaced under paragraph (c), or drained under section 103G.2241, 
93.18 	subdivision 2, paragraph (b) or (e), the local government unit may require a deed 
93.19 	restriction that prohibits nonagricultural use for at least ten years. The local government 
93.20 	unit may require the deed restriction if it determines the wetland area drained is at risk of 
93.21 	conversion to a nonagricultural use within ten years based on the zoning classification, 
93.22 	proximity to a municipality or full service road, or other criteria as determined by the 
93.23 	local government unit.
93.24 	(e) Restoration and replacement of wetlands must be accomplished in accordance 
93.25 	with the ecology of the landscape area affected and ponds that are created primarily to 
93.26 	fulfill storm water management, and water quality treatment requirements may not be 
93.27 	used to satisfy replacement requirements under this chapter unless the design includes 
93.28 	pretreatment of runoff and the pond is functioning as a wetland.
93.29 	(f) Except as provided in paragraph (g), for a wetland or public waters wetland 
93.30 	located on nonagricultural land, replacement must be in the ratio of two acres of replaced 
93.31 	wetland for each acre of drained or filled wetland.
93.32 	(g) For a wetland or public waters wetland located on agricultural land or in a greater 
93.33 	than 80 percent area, replacement must be in the ratio of one acre of replaced wetland 
93.34 	for each acre of drained or filled wetland.
93.35 	(h) Wetlands that are restored or created as a result of an approved replacement plan 
93.36 	are subject to the provisions of this section for any subsequent drainage or filling.
94.1 	(i) Except in a greater than 80 percent area, only wetlands that have been 
94.2 	restored from previously drained or filled wetlands, wetlands created by excavation in 
94.3 	nonwetlands, wetlands created by dikes or dams along public or private drainage ditches, 
94.4 	or wetlands created by dikes or dams associated with the restoration of previously 
94.5 	drained or filled wetlands may be used in a statewide banking program established in for 
94.6 	wetland replacement according to rules adopted under section 103G.2242, subdivision 1. 
94.7 	Modification or conversion of nondegraded naturally occurring wetlands from one type to 
94.8 	another are not eligible for enrollment in a statewide wetlands bank wetland replacement.
94.9 	(j) The Technical Evaluation Panel established under section 103G.2242, subdivision 
94.10 	2, shall ensure that sufficient time has occurred for the wetland to develop wetland 
94.11 	characteristics of soils, vegetation, and hydrology before recommending that the wetland 
94.12 	be deposited in the statewide wetland bank. If the Technical Evaluation Panel has reason 
94.13 	to believe that the wetland characteristics may change substantially, the panel shall 
94.14 	postpone its recommendation until the wetland has stabilized.
94.15 	(k) This section and sections 103G.223 to 103G.2242, 103G.2364, and 103G.2365 
94.16 	apply to the state and its departments and agencies.
94.17 	(l) For projects involving draining or filling of wetlands associated with a new public 
94.18 	transportation project, and for projects expanded solely for additional traffic capacity, 
94.19 	public transportation authorities may purchase credits from the board at the cost to the 
94.20 	board to establish credits. Proceeds from the sale of credits provided under this paragraph 
94.21 	are appropriated to the board for the purposes of this paragraph. For the purposes of this 
94.22 	paragraph, "transportation project" does not include an airport project.
94.23 	(m) A replacement plan for wetlands is not required for individual projects that 
94.24 	result in the filling or draining of wetlands for the repair, rehabilitation, reconstruction, 
94.25 	or replacement of a currently serviceable existing state, city, county, or town public road 
94.26 	necessary, as determined by the public transportation authority, to meet state or federal 
94.27 	design or safety standards or requirements, excluding new roads or roads expanded solely 
94.28 	for additional traffic capacity lanes. This paragraph only applies to authorities for public 
94.29 	transportation projects that:
94.30 	(1) minimize the amount of wetland filling or draining associated with the project 
94.31 	and consider mitigating important site-specific wetland functions on site;
94.32 	(2) except as provided in clause (3), submit project-specific reports to the board, the 
94.33 	Technical Evaluation Panel, the commissioner of natural resources, and members of the 
94.34 	public requesting a copy at least 30 days prior to construction that indicate the location, 
94.35 	amount, and type of wetlands to be filled or drained by the project or, alternatively, 
95.1 	convene an annual meeting of the parties required to receive notice to review projects to 
95.2 	be commenced during the upcoming year; and
95.3 	(3) for minor and emergency maintenance work impacting less than 10,000 square 
95.4 	feet, submit project-specific reports, within 30 days of commencing the activity, to the board 
95.5 	that indicate the location, amount, and type of wetlands that have been filled or drained.
95.6 	Those required to receive notice of public transportation projects may appeal 
95.7 	minimization, delineation, and on-site mitigation decisions made by the public 
95.8 	transportation authority to the board according to the provisions of section 103G.2242, 
95.9 	subdivision 9. The Technical Evaluation Panel shall review minimization and delineation 
95.10 	decisions made by the public transportation authority and provide recommendations 
95.11 	regarding on-site mitigation if requested to do so by the local government unit, a 
95.12 	contiguous landowner, or a member of the Technical Evaluation Panel.
95.13 	Except for state public transportation projects, for which the state Department of 
95.14 	Transportation is responsible, the board must replace the wetlands, and wetland areas of 
95.15 	public waters if authorized by the commissioner or a delegated authority, drained or filled 
95.16 	by public transportation projects on existing roads.
95.17 	Public transportation authorities at their discretion may deviate from federal and 
95.18 	state design standards on existing road projects when practical and reasonable to avoid 
95.19 	wetland filling or draining, provided that public safety is not unreasonably compromised. 
95.20 	The local road authority and its officers and employees are exempt from liability for 
95.21 	any tort claim for injury to persons or property arising from travel on the highway and 
95.22 	related to the deviation from the design standards for construction or reconstruction under 
95.23 	this paragraph. This paragraph does not preclude an action for damages arising from 
95.24 	negligence in construction or maintenance on a highway.
95.25 	(n) If a landowner seeks approval of a replacement plan after the proposed project 
95.26 	has already affected the wetland, the local government unit may require the landowner to 
95.27 	replace the affected wetland at a ratio not to exceed twice the replacement ratio otherwise 
95.28 	required.
95.29 	(o) A local government unit may request the board to reclassify a county or 
95.30 	watershed on the basis of its percentage of presettlement wetlands remaining. After 
95.31 	receipt of satisfactory documentation from the local government, the board shall change 
95.32 	the classification of a county or watershed. If requested by the local government unit, 
95.33 	the board must assist in developing the documentation. Within 30 days of its action to 
95.34 	approve a change of wetland classifications, the board shall publish a notice of the change 
95.35 	in the Environmental Quality Board Monitor.
96.1 	(p) One hundred citizens who reside within the jurisdiction of the local government 
96.2 	unit may request the local government unit to reclassify a county or watershed on the basis 
96.3 	of its percentage of presettlement wetlands remaining. In support of their petition, the 
96.4 	citizens shall provide satisfactory documentation to the local government unit. The local 
96.5 	government unit shall consider the petition and forward the request to the board under 
96.6 	paragraph (o) or provide a reason why the petition is denied.

96.7 	Sec. 35. Minnesota Statutes 2014, section 103G.222, subdivision 3, is amended to read:
96.8 		Subd. 3.Wetland replacement siting. (a) Impacted wetlands in a 50 to 80 percent 
96.9 	area must be replaced in a 50 to 80 percent area or in a less than 50 percent area. Impacted 
96.10 	wetlands in a less than 50 percent area must be replaced in a less than 50 percent area. 
96.11 	All wetland replacement must follow this priority order:
96.12 	(1) on site or in the same minor watershed as the impacted wetland;
96.13 	(2) in the same watershed as the impacted wetland;
96.14 	(3) in the same county or wetland bank service area as the impacted wetland; and
96.15 	(4) in another wetland bank service area; and.
96.16 	(5) statewide for public transportation projects, except that wetlands impacted in 
96.17 	less than 50 percent areas must be replaced in less than 50 percent areas, and wetlands 
96.18 	impacted in the seven-county metropolitan area must be replaced at a ratio of two to one in: 
96.19 	(i) the affected county or, (ii) in another of the seven metropolitan counties, or (iii) in one 
96.20 	of the major watersheds that are wholly or partially within the seven-county metropolitan 
96.21 	area, but at least one to one must be replaced within the seven-county metropolitan area.
96.22 	(b) The exception in paragraph (a), clause (5), does not apply to replacement 
96.23 	completed using wetland banking credits established by a person who submitted a 
96.24 	complete wetland banking application to a local government unit by April 1, 1996.
96.25 	(b) Notwithstanding paragraph (a), wetland banking credits approved according to 
96.26 	a complete wetland banking application submitted to a local government unit by April 
96.27 	1, 1996, may be used to replace wetland impacts resulting from public transportation 
96.28 	projects statewide.
96.29 	(c) Notwithstanding paragraph (a), clauses (1) and (2), the priority order for 
96.30 	replacement by wetland banking begins at paragraph (a), clause (3), according to rules 
96.31 	adopted under section 103G.2242, subdivision 1.
96.32 	(c) (d) When reasonable, practicable, and environmentally beneficial replacement 
96.33 	opportunities are not available in siting priorities listed in paragraph (a), the applicant 
96.34 	may seek opportunities at the next level.
97.1 	(d) (e) For the purposes of this section, "reasonable, practicable, and environmentally 
97.2 	beneficial replacement opportunities" are defined as opportunities that:
97.3 	(1) take advantage of naturally occurring hydrogeomorphological conditions and 
97.4 	require minimal landscape alteration;
97.5 	(2) have a high likelihood of becoming a functional wetland that will continue 
97.6 	in perpetuity;
97.7 	(3) do not adversely affect other habitat types or ecological communities that are 
97.8 	important in maintaining the overall biological diversity of the area; and
97.9 	(4) are available and capable of being done after taking into consideration cost, 
97.10 	existing technology, and logistics consistent with overall project purposes.
97.11 	(e) Applicants and local government units shall rely on board-approved 
97.12 	comprehensive inventories of replacement opportunities and watershed conditions, 
97.13 	including the Northeast Minnesota Wetland Mitigation Inventory and Assessment (January 
97.14 	2010), in determining whether reasonable, practicable, and environmentally beneficial 
97.15 	replacement opportunities are available.
97.16 	(f) Regulatory agencies, local government units, and other entities involved in 
97.17 	wetland restoration shall collaborate to identify potential replacement opportunities within 
97.18 	their jurisdictional areas.
97.19 	(g) The board must establish wetland replacement ratios and wetland bank service 
97.20 	area priorities to implement the siting and targeting of wetland replacement and encourage 
97.21 	the use of high priority areas for wetland replacement.

97.22 	Sec. 36. Minnesota Statutes 2014, section 103G.2242, subdivision 1, is amended to 
97.23 	read:
97.24 		Subdivision 1.Rules. (a) The board, in consultation with the commissioner, shall 
97.25 	adopt rules governing the approval of wetland value replacement plans under this section 
97.26 	and public waters work permits affecting public waters wetlands under section 103G.245. 
97.27 	These rules must address the criteria, procedure, timing, and location of acceptable 
97.28 	replacement of wetland values; and may address the state establishment and administration 
97.29 	of a wetland banking program for public and private projects, which may include including 
97.30 	provisions allowing monetary payment to the wetland banking program for alteration of 
97.31 	wetlands on agricultural land for an in-lieu fee program; the administrative, monitoring, and 
97.32 	enforcement procedures to be used; and a procedure for the review and appeal of decisions 
97.33 	under this section. In the case of peatlands, the replacement plan rules must consider the 
97.34 	impact on carbon balance described in the report required by Laws 1990, chapter 587, and 
98.1 	include the planting of trees or shrubs. Any in-lieu fee program established by the board 
98.2 	must conform with Code of Federal Regulations, title 33, section 332.8, as amended.
98.3 	(b) After the adoption of the rules, a replacement plan must be approved by a 
98.4 	resolution of the governing body of the local government unit, consistent with the 
98.5 	provisions of the rules or a comprehensive wetland protection and management plan 
98.6 	approved under section 103G.2243.
98.7 	(c) If the local government unit fails to apply the rules, or fails to implement a 
98.8 	local comprehensive wetland protection and management plan established under section 
98.9 	103G.2243, the government unit is subject to penalty as determined by the board.

98.10 	Sec. 37. Minnesota Statutes 2014, section 103G.2242, subdivision 2, is amended to 
98.11 	read:
98.12 		Subd. 2.Evaluation. (a) Questions concerning the public value, location, size, 
98.13 	or type of a wetland shall be submitted to and determined by a Technical Evaluation 
98.14 	Panel after an on-site inspection. The Technical Evaluation Panel shall be composed of 
98.15 	a technical professional employee of the board, a technical professional employee of 
98.16 	the local soil and water conservation district or districts, a technical professional with 
98.17 	expertise in water resources management appointed by the local government unit, and 
98.18 	a technical professional employee of the Department of Natural Resources for projects 
98.19 	affecting public waters or wetlands adjacent to public waters. The panel shall use the 
98.20 	"United States Army Corps of Engineers Wetland Delineation Manual" (January 1987), 
98.21 	including updates, supplementary guidance, and replacements, if any, "Wetlands of 
98.22 	the United States" (United States Fish and Wildlife Service Circular 39, 1971 edition), 
98.23 	and "Classification of Wetlands and Deepwater Habitats of the United States" (1979 
98.24 	edition). The panel shall provide the wetland determination and recommendations on 
98.25 	other technical matters to the local government unit that must approve a replacement plan, 
98.26 	wetland banking plan sequencing, exemption determination, no-loss determination, or 
98.27 	wetland boundary or type determination and may recommend approval or denial of the 
98.28 	plan. The authority must consider and include the decision of the Technical Evaluation 
98.29 	Panel in their approval or denial of a plan or determination.
98.30 	(b) Persons conducting wetland or public waters boundary delineations or type 
98.31 	determinations are exempt from the requirements of chapter 326. The board may develop 
98.32 	a professional wetland delineator certification program.
98.33 	(c) The board must establish an interagency team to assist in identifying and 
98.34 	evaluating potential wetland replacement sites. The team must consist of members 
98.35 	of the Technical Evaluation Panel and representatives from the Department of Natural 
99.1 	Resources; the Pollution Control Agency; the United States Army Corps of Engineers, St. 
99.2 	Paul district; and other organizations as determined by the board.

99.3 	Sec. 38. Minnesota Statutes 2014, section 103G.2242, subdivision 3, is amended to 
99.4 	read:
99.5 		Subd. 3.Replacement completion. (a) Replacement of wetland values must be 
99.6 	completed prior to or concurrent with the actual draining or filling of a wetland, unless:
99.7 	(1) an irrevocable bank letter of credit or other security financial assurance 
99.8 	acceptable to the local government unit or the board is given to the local government unit 
99.9 	or the board to guarantee the successful completion of the replacement.; or
99.10 	(2) the replacement is approved under an in-lieu fee program according to rules 
99.11 	adopted under subdivision 1. In the case of an in-lieu fee program established by a 
99.12 	board-approved sponsor, the board may require that a financial assurance in an amount 
99.13 	and method acceptable to the board be given to the board to ensure the approved sponsor 
99.14 	fulfills the sponsor's obligation to complete the required wetland replacement. 
99.15 	The board may establish, sponsor, or administer a wetland banking program, which 
99.16 	may include provisions allowing monetary payment to the wetland bank for impacts to 
99.17 	wetlands on agricultural land, for impacts that occur in greater than 80 percent areas, and 
99.18 	for public road projects.(b) The board may acquire land in fee title, purchase or accept 
99.19 	easements, enter into agreements, and purchase existing wetland replacement credits to 
99.20 	facilitate the wetland banking program. The board may establish in-lieu fee payment 
99.21 	amounts and hold money in an account in the special revenue fund, which is appropriated 
99.22 	to the board to be used solely for establishing replacement wetlands and administering the 
99.23 	wetland banking program. 
99.24 	(c) The board shall coordinate the establishment and operation of a wetland bank 
99.25 	with the United States Army Corps of Engineers, the Natural Resources Conservation 
99.26 	Service of the United States Department of Agriculture, and the commissioners of natural 
99.27 	resources, agriculture, and the Pollution Control Agency.

99.28 	Sec. 39. Minnesota Statutes 2014, section 103G.2242, subdivision 4, is amended to 
99.29 	read:
99.30 		Subd. 4.Decision. Upon receiving and considering all required data, the local 
99.31 	government unit reviewing replacement plan applications, banking plan sequencing 
99.32 	applications, and exemption or no-loss determination requests must act on all replacement 
99.33 	plan applications, banking plan sequencing applications, and exemption or no-loss 
99.34 	determination requests in compliance with section 15.99.

100.1 	Sec. 40. Minnesota Statutes 2014, section 103G.2242, subdivision 12, is amended to 
100.2 	read:
100.3 		Subd. 12.Replacement credits. (a) No public or private wetland restoration, 
100.4 	enhancement, or construction may be allowed for replacement unless specifically 
100.5 	designated for replacement and paid for by the individual or organization performing the 
100.6 	wetland restoration, enhancement, or construction, and is completed prior to any draining 
100.7 	or filling of the wetland.
100.8 	(b) Paragraph (a) does not apply to a wetland whose owner has paid back with 
100.9 	interest the individual or organization restoring, enhancing, or constructing the wetland.
100.10 	(c) Notwithstanding section 103G.222, subdivision 1, paragraph (i), the following 
100.11 	actions, and others established in rule, that are consistent with criteria in rules adopted by 
100.12 	the board in conjunction with the commissioners of natural resources and agriculture, are 
100.13 	eligible for replacement credit as determined by the local government unit or the board, 
100.14 	including enrollment in a statewide wetlands bank:
100.15 	(1) reestablishment of permanent native, noninvasive vegetative cover on a wetland 
100.16 	on agricultural land that was planted with annually seeded crops, was in a crop rotation 
100.17 	seeding of pasture grasses or legumes, or was in a land retirement program during the 
100.18 	past ten years;
100.19 	(2) buffer areas of permanent native, noninvasive vegetative cover established or 
100.20 	preserved on upland adjacent to replacement wetlands;
100.21 	(3) wetlands restored for conservation purposes under terminated easements or 
100.22 	contracts; and
100.23 	(4) water quality treatment ponds constructed to pretreat storm water runoff prior 
100.24 	to discharge to wetlands, public waters, or other water bodies, provided that the water 
100.25 	quality treatment ponds must be associated with an ongoing or proposed project that 
100.26 	will impact a wetland and replacement credit for the treatment ponds is based on the 
100.27 	replacement of wetland functions and on an approved storm water management plan for 
100.28 	the local government.; and
100.29 	(5) in a greater than 80 percent area, restoration and protection of streams and 
100.30 	riparian buffers that are important to the functions and sustainability of aquatic resources.
100.31 	(d) Notwithstanding section 103G.222, subdivision 1, paragraphs (f) and (g), the 
100.32 	board may establish by rule different replacement ratios for restoration projects with 
100.33 	exceptional natural resource value.

100.34 	Sec. 41. Minnesota Statutes 2014, section 103G.2242, subdivision 14, is amended to 
100.35 	read:
101.1 		Subd. 14.Fees established. (a) Fees must be assessed for managing wetland bank 
101.2 	accounts and transactions as follows:
101.3 	(1) account maintenance annual fee: one percent of the value of credits not to 
101.4 	exceed $500;
101.5 	(2) account establishment, deposit, or transfer: 6.5 percent of the value of credits not 
101.6 	to exceed $1,000 per establishment, deposit, or transfer; and
101.7 	(3) withdrawal fee: 6.5 percent of the value of credits withdrawn.
101.8 	(b) The board may establish fees at or below the amounts in paragraph (a) for 
101.9 	single-user or other dedicated wetland banking accounts.
101.10 	(c) Fees for single-user or other dedicated wetland banking accounts established 
101.11 	pursuant to section 103G.005, subdivision 10e, clause (4), are limited to establishment 
101.12 	of a wetland banking account and are assessed at the rate of 6.5 percent of the value of 
101.13 	the credits not to exceed $1,000.
101.14 	(d) The board may assess a fee to pay the costs associated with establishing 
101.15 	conservation easements, or other long-term protection mechanisms prescribed in the rules 
101.16 	adopted under subdivision 1, on property used for wetland replacement.

101.17 	Sec. 42. Minnesota Statutes 2014, section 103G.2242, subdivision 15, is amended to 
101.18 	read:
101.19 		Subd. 15.Fees paid to board. All fees established in subdivisions 9 and 14 must 
101.20 	be paid to the Board of Water and Soil Resources and are annually appropriated to the 
101.21 	board for the purpose of administration of the wetland bank and to process appeals 
101.22 	under section 103G.2242, subdivision 9. One-half of the fees collected for wetland bank 
101.23 	credit withdrawals under subdivision 14, paragraph (a), clause (3), or alternative fees 
101.24 	for wetland bank credit withdrawal under subdivision 14, paragraph (b), must be paid 
101.25 	to the county where the property for wetland credit is located. The amount paid to the 
101.26 	county must be distributed as follows: one-third to the school district; one-third to the 
101.27 	city or organized township; and one-third to the county. If the property is located in an 
101.28 	unorganized township, the county retains the township share.

101.29 	Sec. 43. Minnesota Statutes 2014, section 103G.2251, is amended to read:
101.30 	103G.2251 STATE CONSERVATION EASEMENTS; WETLAND BANK 
101.31 	CREDIT.
101.32 	In greater than 80 percent areas, preservation of wetlands, riparian buffers, and 
101.33 	watershed areas essential to maintaining important functions and sustainability of aquatic 
101.34 	resources in the watershed that are protected by a permanent conservation easement 
102.1 	as defined under section 84C.01 and held by the board may be eligible for wetland 
102.2 	replacement or mitigation credits, according to rules adopted by the board. To be eligible 
102.3 	for credit under this section, a conservation easement must be established after May 24, 
102.4 	2008, and approved by the board. Wetland areas on private lands preserved under this 
102.5 	section are not eligible for replacement or mitigation credit if the area has been protected 
102.6 	using public conservation funds.

102.7 	Sec. 44. Minnesota Statutes 2014, section 115A.1415, subdivision 16, is amended to 
102.8 	read:
102.9 		Subd. 16.Administrative fee. (a) The stewardship organization or individual 
102.10 	producer submitting a stewardship plan shall pay an annual administrative fee to the 
102.11 	commissioner. The agency may establish a variable fee based on relevant factors, 
102.12 	including, but not limited to, the portion of architectural paint sold in the state by members 
102.13 	of the organization compared to the total amount of architectural paint sold in the state by 
102.14 	all organizations submitting a stewardship plan.
102.15 	(b) Prior to July 1, 2014, and before July 1 annually thereafter, the agency shall 
102.16 	identify the costs it incurs under this section. The agency shall set the fee at an amount 
102.17 	that, when paid by every stewardship organization or individual producer that submits a 
102.18 	stewardship plan, is adequate to reimburse the agency's full costs of administering this 
102.19 	section. The total amount of annual fees collected under this subdivision must not exceed 
102.20 	the amount necessary to reimburse costs incurred by the agency to administer this section.
102.21 	(c) A stewardship organization or individual producer subject to this subdivision 
102.22 	must pay the agency's administrative fee under paragraph (a) on or before July 1, 2014, 
102.23 	and annually thereafter. Each year after the initial payment, the annual administrative fee 
102.24 	may not exceed five percent of the aggregate stewardship assessment added to the cost of 
102.25 	all architectural paint sold by producers in the state for the preceding calendar year.
102.26 	(d) All fees received under this section shall be deposited in the state treasury and 
102.27 	credited to a product stewardship account in the special revenue fund. For fiscal years 
102.28 	2014 and, 2015, 2016, and 2017, the amount collected under this section is annually 
102.29 	appropriated to the agency to implement and enforce this section.

102.30 	Sec. 45. Minnesota Statutes 2014, section 115A.557, subdivision 2, is amended to read:
102.31 		Subd. 2.Purposes for which money may be spent. (a) A county receiving money 
102.32 	distributed by the commissioner under this section may use the money only for the 
102.33 	development and implementation of programs to:
102.34 	(1) reduce the amount of solid waste generated;
103.1 	(2) recycle the maximum amount of solid waste technically feasible;
103.2 	(3) create and support markets for recycled products;
103.3 	(4) remove problem materials from the solid waste stream and develop proper 
103.4 	disposal options for them;
103.5 	(5) inform and educate all sectors of the public about proper solid waste management 
103.6 	procedures;
103.7 	(6) provide technical assistance to public and private entities to ensure proper solid 
103.8 	waste management;
103.9 	(7) provide educational, technical, and financial assistance for litter prevention;
103.10 	(8) process mixed municipal solid waste generated in the county at a resource 
103.11 	recovery facility located in Minnesota; and
103.12 	(9) compost source-separated compostable materials, including the provision of 
103.13 	receptacles for residential composting.;
103.14 	(10) prevent food waste or collect and transport food donated to humans or to be 
103.15 	fed to animals; and 
103.16 	(11) process source-separated compostable materials that are to be used to produce 
103.17 	Class I or Class II compost, as defined in Minnesota Rules, part 7035.2836, after being 
103.18 	processed in an anaerobic digester, but not to construct buildings or acquire equipment.
103.19 	(b) Beginning in fiscal year 2015 and continuing thereafter, of any money distributed 
103.20 	by the commissioner under this section to a metropolitan county, as defined in section 
103.21 	473.121, subdivision 4, that exceeds the amount the county was eligible to receive under 
103.22 	this section in fiscal year 2014: (1) at least 50 percent must be expended on activities in 
103.23 	paragraph (a), clause clauses (9) to (11); and (2) the remainder must be expended on 
103.24 	activities in paragraph (a), clauses (1) to (7) and (9) to (11) that advance the county toward 
103.25 	achieving its recycling goal under section 115A.551.

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

103.27 	Sec. 46. Minnesota Statutes 2014, section 116.07, subdivision 4d, is amended to read:
103.28 		Subd. 4d.Permit fees. (a) The agency may collect permit fees in amounts not greater 
103.29 	than those necessary to cover the reasonable costs of developing, reviewing, and acting 
103.30 	upon applications for agency permits and implementing and enforcing the conditions of 
103.31 	the permits pursuant to agency rules. Permit fees shall not include the costs of litigation. 
103.32 	The fee schedule must reflect reasonable and routine direct and indirect costs associated 
103.33 	with permitting, implementation, and enforcement. The agency may impose an additional 
103.34 	enforcement fee to be collected for a period of up to two years to cover the reasonable costs 
104.1 	of implementing and enforcing the conditions of a permit under the rules of the agency. 
104.2 	Any money collected under this paragraph shall be deposited in the environmental fund.
104.3 	(b) Notwithstanding paragraph (a), the agency shall collect an annual fee from 
104.4 	the owner or operator of all stationary sources, emission facilities, emissions units, air 
104.5 	contaminant treatment facilities, treatment facilities, potential air contaminant storage 
104.6 	facilities, or storage facilities subject to the requirement to obtain a permita notification, 
104.7 	permit, or license requirement under subchapter this chapter, subchapters I and V of 
104.8 	the federal Clean Air Act, United States Code, title 42, section 7401 et seq., or section 
104.9 	116.081 or rules adopted thereunder. The annual fee shall be used to pay for all direct 
104.10 	and indirect reasonable costs, including attorney general legal costs, required to develop 
104.11 	and administer the notification, permit, or license program requirements of subchapter 
104.12 	this chapter, subchapters I and V of the federal Clean Air Act, United States Code, title 
104.13 	42, section 7401 et seq., and sections of this chapter and theor rules adopted under 
104.14 	this chapter related to air contamination and noise thereunder. Those costs include the 
104.15 	reasonable costs of reviewing and acting upon an application for a permit; implementing 
104.16 	and enforcing statutes, rules, and the terms and conditions of a permit; emissions, ambient, 
104.17 	and deposition monitoring; preparing generally applicable regulations; responding to 
104.18 	federal guidance; modeling, analyses, and demonstrations; preparing inventories and 
104.19 	tracking emissions; and providing information to the public about these activities.
104.20 	(c) The agency shall set fees that:
104.21 	(1) will result in the collection, in the aggregate, from the sources listed in paragraph 
104.22 	(b), of an amount not less than $25 per ton of each volatile organic compound; pollutant 
104.23 	regulated under United States Code, title 42, section 7411 or 7412 (section 111 or 112 
104.24 	of the federal Clean Air Act); and each pollutant, except carbon monoxide, for which a 
104.25 	national primary ambient air quality standard has been promulgated;
104.26 	(2) may result in the collection, in the aggregate, from the sources listed in paragraph 
104.27 	(b), of an amount not less than $25 per ton of each pollutant not listed in clause (1) that is 
104.28 	regulated under this chapter or air quality rules adopted under this chapter; and
104.29 	(3) shall collect, in the aggregate, from the sources listed in paragraph (b), the 
104.30 	amount needed to match grant funds received by the state under United States Code, title 
104.31 	42, section 7405 (section 105 of the federal Clean Air Act).
104.32 	The agency must not include in the calculation of the aggregate amount to be collected 
104.33 	under clauses (1) and (2) any amount in excess of 4,000 tons per year of each air pollutant 
104.34 	from a source. The increase in air permit fees to match federal grant funds shall be a 
104.35 	surcharge on existing fees. The commissioner may not collect the surcharge after the grant 
105.1 	funds become unavailable. In addition, the commissioner shall use nonfee funds to the 
105.2 	extent practical to match the grant funds so that the fee surcharge is minimized.
105.3 	(d) To cover the reasonable costs described in paragraph (b), the agency shall 
105.4 	provide in the rules promulgated under paragraph (c) to implement paragraphs (b) and 
105.5 	(c) for an increase in the fee collected in each year by the percentage, if any, by which 
105.6 	the Consumer Price Index for the most recent calendar year ending before the beginning 
105.7 	of the year the fee is collected exceeds the Consumer Price Index for the calendar year 
105.8 	1989. For purposes of this paragraph the Consumer Price Index for any calendar year is 
105.9 	the average of the Consumer Price Index for all-urban consumers published by the United 
105.10 	States Department of Labor, as of the close of the 12-month period ending on August 31 
105.11 	of each calendar year. The revision of the Consumer Price Index that is most consistent 
105.12 	with the Consumer Price Index for calendar year 1989 shall be used.
105.13 	(e) Any money collected under paragraphs (b) to (d) this subdivision must be 
105.14 	deposited in the environmental fund and must be used solely for the activities listed in 
105.15 	paragraph (b).
105.16 	(f) Permit applicants who wish to construct, reconstruct, or modify a facility may 
105.17 	offer to reimburse the agency for the costs of staff time or consultant services needed to 
105.18 	expedite the permit development process, including the analysis of environmental review 
105.19 	documents. The reimbursement shall be in addition to permit application fees imposed by 
105.20 	law. When the agency determines that it needs additional resources to develop the permit 
105.21 	application in an expedited manner, and that expediting the development is consistent with 
105.22 	permitting program priorities, the agency may accept the reimbursement. Reimbursements 
105.23 	accepted by the agency are appropriated to the agency for the purpose of developing 
105.24 	the permit or analyzing environmental review documents. Reimbursement by a permit 
105.25 	applicant shall precede and not be contingent upon issuance of a permit; shall not affect 
105.26 	the agency's decision on whether to issue or deny a permit, what conditions are included 
105.27 	in a permit, or the application of state and federal statutes and rules governing permit 
105.28 	determinations; and shall not affect final decisions regarding environmental review.
105.29 	(g) The fees under this subdivision are exempt from section 16A.1285.

105.30 	Sec. 47. Minnesota Statutes 2014, section 116.9401, is amended to read:
105.31 	116.9401 DEFINITIONS.
105.32 	(a) For the purposes of sections 116.9401 to 116.9407 116.9411, the following terms 
105.33 	have the meanings given them.
105.34 	(b) "Agency" means the Pollution Control Agency.
106.1 	(c) "Alternative" means a substitute process, product, material, chemical, strategy, 
106.2 	or combination of these that is technically feasible and serves a functionally equivalent 
106.3 	purpose to a chemical in a children's product.
106.4 	(d) "Chemical" means a substance with a distinct molecular composition or a group 
106.5 	of structurally related substances and includes the breakdown products of the substance or 
106.6 	substances that form through decomposition, degradation, or metabolism.
106.7 	(e) "Chemical of high concern" means a chemical identified on the basis of credible 
106.8 	scientific evidence by a state, federal, or international agency as being known or suspected 
106.9 	with a high degree of probability to:
106.10 	(1) harm the normal development of a fetus or child or cause other developmental 
106.11 	toxicity;
106.12 	(2) cause cancer, genetic damage, or reproductive harm;
106.13 	(3) disrupt the endocrine or hormone system;
106.14 	(4) damage the nervous system, immune system, or organs, or cause other systemic 
106.15 	toxicity;
106.16 	(5) be persistent, bioaccumulative, and toxic; or
106.17 	(6) be very persistent and very bioaccumulative.
106.18 	(f) "Child" means a person under 12 years of age.
106.19 	(g) "Children's product" means a consumer product intended for use by children, 
106.20 	such as baby products, toys, car seats, personal care products, and clothing.
106.21 	(h) "Commissioner" means the commissioner of the Pollution Control Agency.
106.22 	(i) "Contaminant" means a trace amount of a chemical that is incidental to 
106.23 	manufacturing and serves no intended function in the product component. Contaminant 
106.24 	includes, but is not limited to, unintended by-products of chemical reactions that 
106.25 	occur during the manufacture of the product component, trace impurities in feedstock, 
106.26 	incompletely reacted chemical mixtures, and degradation products.
106.27 	(j) "Department" means the Department of Health.
106.28 	(j) (k) "Distributor" means a person who sells consumer products to retail 
106.29 	establishments on a wholesale basis.
106.30 	(k) (l) "Green chemistry" means an approach to designing and manufacturing 
106.31 	products that minimizes the use and generation of toxic substances.
106.32 	(l) (m) "Manufacturer" means any person who manufactures a final consumer 
106.33 	product sold at retail or whose brand name is affixed to the consumer product. In the 
106.34 	case of a consumer product imported into the United States, manufacturer includes the 
106.35 	importer or domestic distributor of the consumer product if the person who manufactured 
107.1 	or assembled the consumer product or whose brand name is affixed to the consumer 
107.2 	product does not have a presence in the United States.
107.3 	(n) "Practical quantification limit" means the lowest concentration of a chemical that 
107.4 	can be reliably measured within specified limits of precision, accuracy, representativeness, 
107.5 	completeness, and comparability under routine laboratory operating conditions, the value 
107.6 	of which:
107.7 	(1) is based on scientifically defensible, standard analytical methods;
107.8 	(2) may vary depending on the matrix and analytical method used; and
107.9 	(3) will be determined jointly by the agency and the department, taking into 
107.10 	consideration practical quantification limits established by federal or state agencies.
107.11 	(m) (o) "Priority chemical" means a chemical identified by the Department of Health 
107.12 	as a chemical of high concern that meets the criteria in section 116.9403.
107.13 	(n)(p) "Product category" means the brick level of the GS1 Global Product 
107.14 	Classification (GPC) standard, which identifies products that serve a common purpose, are 
107.15 	of a similar form and material, and share the same set of category attributes.
107.16 	(q) "Safer alternative" means an alternative whose potential to harm human health is 
107.17 	less than that of the use of a priority chemical that it could replace.

107.18 	EFFECTIVE DATE. This section is effective July 1, 2016.

107.19 	Sec. 48. Minnesota Statutes 2014, section 116.9402, is amended to read:
107.20 	116.9402 IDENTIFICATION OF CHEMICALS OF HIGH CONCERN.
107.21 	(a) By July 1, 2010, the department shall, after consultation with the agency, 
107.22 	generate a list of chemicals of high concern.
107.23 	(b) The department must periodically review and revise the list of chemicals of 
107.24 	high concern at least every three years. The department may add chemicals to the list if 
107.25 	the chemical meets one or more of the criteria in section 116.9401, paragraph (e). Any 
107.26 	changes to the list of chemicals of high concern must be published on the department's 
107.27 	Web site and in the State Register when a change is made.
107.28 	(c) The department shall consider chemicals listed as a suspected carcinogen, 
107.29 	reproductive or developmental toxicant, or as being persistent, bioaccumulative, and 
107.30 	toxic, or very persistent and very bioaccumulative by a state, federal, or international 
107.31 	agency. These agencies may include, but are not limited to, the California Environmental 
107.32 	Protection Agency, the Washington Department of Ecology, the United States Department 
107.33 	of Health, the United States Environmental Protection Agency, the United Nation's World 
108.1 	Health Organization, and European Parliament Annex XIV concerning the Registration, 
108.2 	Evaluation, Authorisation, and Restriction of Chemicals.
108.3 	(d) The department may consider chemicals listed by another state as harmful to 
108.4 	human health or the environment for possible inclusion in the list of chemicals of high 
108.5 	concern.

108.6 	EFFECTIVE DATE. This section is effective July 1, 2016.

108.7 	Sec. 49. Minnesota Statutes 2014, section 116.9403, is amended to read:
108.8 	116.9403 IDENTIFICATION OF PRIORITY CHEMICALS.
108.9 	(a) The department, after consultation with the agency, may designate a chemical of 
108.10 	high concern as a priority chemical if the department finds that the chemical:
108.11 	(1) has been identified as a high-production volume chemical by the United States 
108.12 	Environmental Protection Agency; and
108.13 	(2) meets any of the following criteria:
108.14 	(i) the chemical has been found through biomonitoring to be present in human blood, 
108.15 	including umbilical cord blood, breast milk, urine, or other bodily tissues or fluids;
108.16 	(ii) the chemical has been found through sampling and analysis to be present in 
108.17 	household dust, indoor air, drinking water, or elsewhere in the home environment; or
108.18 	(iii) the chemical has been found through monitoring to be present in fish, wildlife, 
108.19 	or the natural environment.
108.20 	(b) By February 1, 2011, the department shall publish a list of priority chemicals in 
108.21 	the State Register and on the department's Internet Web site and shall update the published 
108.22 	list whenever a new priority chemical is designated. Any proposed changes to the list of 
108.23 	priority chemicals must be published on the department's Web site and in the State Register 
108.24 	and is subject to a minimum 60-day public comment period. After the department's 
108.25 	review and consideration of public comments, a final list of changes to the list of priority 
108.26 	chemicals must be published on the department's Web site and in the State Register.

108.27 	EFFECTIVE DATE. This section is effective July 1, 2016.

108.28 	Sec. 50. Minnesota Statutes 2014, section 116.9405, is amended to read:
108.29 	116.9405 APPLICABILITY.
108.30 	The requirements of sections 116.9401 to 116.9407 116.9411 do not apply to:
108.31 	(1) chemicals in used children's products;
108.32 	(2) priority chemicals used in the manufacturing process, but that are not present 
108.33 	in the final product;
109.1 	(3) priority chemicals used in agricultural production;
109.2 	(4) motor vehicles as defined in chapter 168 or watercraft as defined in chapter 
109.3 	86B or their component parts, except that the use of priority chemicals in detachable 
109.4 	car seats is not exempt;
109.5 	(5) priority chemicals generated solely as combustion by-products or that are present 
109.6 	in combustible fuels;
109.7 	(6) retailers, except if a retailer is also the producer, manufacturer, importer, or 
109.8 	domestic distributor of a children's product containing a priority chemical or the retailer's 
109.9 	brand name is affixed to a children's product containing a priority chemical;
109.10 	(7) pharmaceutical products or biologics;
109.11 	(8) a medical device as defined in the federal Food, Drug, and Cosmetic Act, United 
109.12 	States Code, title 21, section 321(h);
109.13 	(9) food and food or beverage packaging, except a container containing baby food 
109.14 	or infant formula;
109.15 	(10) consumer electronics products and electronic components, including but not 
109.16 	limited to personal computers; audio and video equipment; calculators; digital displays; 
109.17 	wireless phones; cameras; game consoles; printers; and handheld electronic and electrical 
109.18 	devices used to access interactive software or their associated peripherals; or products that 
109.19 	comply with the provisions of directive 2002/95/EC of the European Union, adopted by 
109.20 	the European Parliament and Council of the European Union now or hereafter in effect; or
109.21 	(11) outdoor sport equipment, including snowmobiles as defined in section 84.81, 
109.22 	subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal 
109.23 	watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section 
109.24 	86B.005, subdivision 18; and off-highway motorcycles, as defined in section 84.787, 
109.25 	subdivision 7, and all attachments and repair parts for all of this equipment.;
109.26 	(12) a manufacturer or distributor of a children's product whose annual aggregate 
109.27 	gross sales, both within and outside this state, as reported in the manufacturer's or 
109.28 	distributor's most recently filed federal tax return, is below $100,000; or
109.29 	(13) a children's product if the annual production of the children's product is less 
109.30 	than 3,000 units.

109.31 	EFFECTIVE DATE. This section is effective July 1, 2016.

109.32 	Sec. 51. Minnesota Statutes 2014, section 116.9406, is amended to read:
109.33 	116.9406 DONATIONS TO THE STATE.
110.1 	The commissioner may accept donations, grants, and other funds to carry out the 
110.2 	purposes of sections 116.9401 to 116.9407 116.9411. All donations, grants, and other 
110.3 	funds must be accepted without preconditions regarding the outcomes of the regulatory 
110.4 	oversight processes set forth in sections 116.9401 to 116.9407 116.9411.

110.5 	EFFECTIVE DATE. This section is effective July 1, 2016.

110.6 	Sec. 52. [116.9408] CHILDREN'S PRODUCTS; REPORTING INFORMATION 
110.7 	ON PRIORITY CHEMICALS.
110.8 		Subdivision 1.Reporting; content. A manufacturer or distributor of a children's 
110.9 	product offered for sale in this state that contains one or more priority chemicals 
110.10 	designated under section 116.9403 must, unless the children's product is exempt under 
110.11 	section 116.9405, provide the following information to the agency, on a form developed by 
110.12 	the agency, for each priority chemical that is intentionally added to the children's product 
110.13 	and present at or above the practical quantification limit or that is a contaminant present in 
110.14 	a component of the children's product at a concentration above 100 parts per million:
110.15 	(1) the name of the priority chemical;
110.16 	(2) the Chemical Abstracts Service Registry number of the priority chemical;
110.17 	(3) the concentration of each priority chemical contained in a children's product, a 
110.18 	description of how the concentration was determined, and an evaluation of the accuracy 
110.19 	of the determination. Concentrations at or above the practical quantification limit must 
110.20 	be reported, but may be reported in the following ranges:
110.21 	(i) greater than or equal to the practical quantification limit but less than 100 parts 
110.22 	per million (ppm);
110.23 	(ii) greater than or equal to 100 ppm but less than 500 ppm;
110.24 	(iii) greater than or equal to 500 ppm but less than 1,000 ppm;
110.25 	(iv) greater than or equal to 1,000 ppm but less than 5,000 ppm;
110.26 	(v) greater than or equal to 5,000 ppm but less than 10,000 ppm; and
110.27 	(vi) greater than or equal to 10,000 ppm;
110.28 	(4) the product category of the children's product;
110.29 	(5) the number of units of the children's product sold in Minnesota or nationally in 
110.30 	the most recently completed calendar year;
110.31 	(6) information that the agency determines is necessary to determine the extent to 
110.32 	which a child is likely to be exposed to the priority chemical through normal use of the 
110.33 	product;
111.1 	(7) any assessment conducted by the manufacturer or distributor of the children's 
111.2 	product or others regarding the use of safer alternatives to the priority chemical contained 
111.3 	in the children's product; and
111.4 	(8) any additional information requested by the agency.
111.5 		Subd. 2.Report timing. (a) A manufacturer or distributor subject to this section 
111.6 	must report the information required under this section to the agency no later than one 
111.7 	year after a priority chemical has been designated under section 116.9403 or, for a priority 
111.8 	chemical designated under section 116.9403 before July 1, 2011, on the following 
111.9 	schedule based on the manufacturer's or distributor's annual aggregate gross sales, both 
111.10 	within and outside the state, as reported in the manufacturer's or distributor's most recently 
111.11 	filed federal tax return:
111.12 	(1) for a manufacturer or distributor with gross sales exceeding $1,000,000,000, by 
111.13 	July 1, 2018;
111.14 	(2) for a manufacturer or distributor with gross sales exceeding $250,000,000 but 
111.15 	less than or equal to $1,000,000,000, by January 1, 2019;
111.16 	(3) for a manufacturer or distributor with gross sales exceeding $100,000,000 but 
111.17 	less than or equal to $250,000,000, by July 1, 2019;
111.18 	(4) for a manufacturer or distributor with gross sales exceeding $5,000,000 but less 
111.19 	than or equal to $100,000,000, by July 1, 2020; and
111.20 	(5) for a manufacturer or distributor with gross sales exceeding $100,000 but less 
111.21 	than or equal to $5,000,000, by July 1, 2021.
111.22 	(b) Two years after submitting an initial report to the agency under this section, 
111.23 	a manufacturer or distributor of a children's product offered for sale in this state that 
111.24 	continues to contain one or more priority chemicals must submit an updated report 
111.25 	containing the information required under subdivision 1 and the 12-digit Universal 
111.26 	Product Code for the children's product. If the children's product continues to be offered 
111.27 	for sale in this state and to contain the priority chemical, the information required under 
111.28 	this paragraph must be submitted to the agency every two years.
111.29 		Subd. 3.Public data. Notwithstanding section 13.37, subdivision 2, the presence 
111.30 	and concentration of a priority chemical in a specific children's product reported to the 
111.31 	agency under this section are classified as public data.
111.32 		Subd. 4.Not misappropriation of trade secret. Notwithstanding section 325C.01, 
111.33 	subdivision 3, publication by the agency of the presence and concentration of a priority 
111.34 	chemical in a specific children's product reported to the agency under this section is not 
111.35 	misappropriation of a trade secret.
112.1 		Subd. 5.Removal of priority chemical; reporting. A manufacturer or distributor 
112.2 	who removes a priority chemical from a children's product reported under this section 
112.3 	must notify the agency of the removal at the earliest possible date. If the priority 
112.4 	chemical removed is replaced by a safer alternative, the manufacturer or distributor 
112.5 	must provide, on a form developed by the agency, the name of the safer alternative 
112.6 	and its Chemical Abstracts Service Registry number or, if not replaced by a chemical 
112.7 	alternative, a description of the techniques or design changes implemented. The safer 
112.8 	alternative or nonchemical techniques or design changes may be designated as trade 
112.9 	secrets. Upon verification that all priority chemicals in the product have been replaced by 
112.10 	safer alternatives, the commissioner must promptly remove from state agency Web sites 
112.11 	any reference to the relevant children's product of the manufacturer, and the manufacturer 
112.12 	will no longer report or pay fees on that children's product.
112.13 		Subd. 6.Failure to report. If the information required in this section is not 
112.14 	submitted in a timely fashion or is incomplete or otherwise unacceptable as determined 
112.15 	by the agency, the agency may contract with an independent third party of the agency's 
112.16 	choice to provide the information and may assess a fee on the manufacturer or distributor 
112.17 	to pay the costs specified under section 116.9409.

112.18 	EFFECTIVE DATE. This section is effective July 1, 2016.

112.19 	Sec. 53. [116.9409] FEES.
112.20 	(a) The agency shall collect a fee of $1,000 for each priority chemical initially 
112.21 	reported under section 116.9408. The fee increases by $1,000 for each report subsequently 
112.22 	filed with the agency under section 116.9408 for the same chemical contained in the same 
112.23 	children's product category, up to a maximum of $3,000.
112.24 	(b) The agency shall collect a fee equal to the costs billed by the independent 
112.25 	contractor plus the agency's actual incurred costs to bid and administer the contract for 
112.26 	each contract issued under section 116.9408, subdivision 6.
112.27 	(c) The commissioner shall deposit all fees received under this section in an account 
112.28 	in the special revenue fund.
112.29 	(d) Fees collected under this section are exempt from section 16A.1285.

112.30 	EFFECTIVE DATE. This section is effective July 1, 2016.

112.31 	Sec. 54. [116.9410] ENFORCEMENT.
113.1 	The agency shall enforce sections 116.9401 to 116.9409 in the manner provided by 
113.2 	section 115.071, subdivisions 1, 3, 4, 5, and 6. Section 115.071, subdivision 2, does not 
113.3 	apply to violations of sections 116.9401 to 116.9409.

113.4 	EFFECTIVE DATE. This section is effective July 1, 2016.

113.5 	Sec. 55. [116.9411] STATE AGENCY DUTIES.
113.6 		Subdivision 1.Safer alternative grants. If there is fee revenue collected under 
113.7 	section 116.9409, paragraph (a), in excess of program implementation costs, the 
113.8 	commissioner, in consultation with the commissioners of commerce and health, may 
113.9 	use that fee revenue to offer grants awarded competitively to manufacturers or other 
113.10 	researchers to develop safer alternatives to priority chemicals in children's products, 
113.11 	to establish alternatives as safer alternatives, or to accelerate the commercialization of 
113.12 	safer alternatives.
113.13 		Subd. 2.Education and outreach. The commissioners of health and commerce 
113.14 	shall develop and implement an education and outreach effort regarding priority chemicals 
113.15 	in children's products.
113.16 		Subd. 3.Report. By January 15, 2019, and every three years thereafter, the 
113.17 	commissioners of the Pollution Control Agency, health, and commerce shall report to 
113.18 	the legislative committees with jurisdiction over environment and natural resources, 
113.19 	commerce, and public health on the implementation of sections 116.9401 to 116.9411.

113.20 	EFFECTIVE DATE. This section is effective July 1, 2016.

113.21 	Sec. 56. TRANSFERS.
 113.22 	(a) On June 30, 2015, the commissioner of management and budget shall transfer 
113.23 	to the natural resources conservation easement stewardship account, established in 
113.24 	Minnesota Statutes, section 84.69, the remaining balance:
113.25 	(1) in the forests for the future conservation easement account under section 84.68; 
113.26 	and
113.27 	(2) of all appropriations to the Department of Natural Resources from the outdoor 
113.28 	heritage fund for the establishment of conservation easement monitoring and enforcement 
113.29 	accounts.
113.30 	(b) On June 30, 2015, the commissioner of management and budget shall transfer to 
113.31 	the water and soil conservation easement stewardship account, established in Minnesota 
113.32 	Statutes, section 103B.103, the remaining balance of all appropriations to the board from 
114.1 	the outdoor heritage fund for the establishment of conservation easement monitoring 
114.2 	and enforcement accounts.

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

114.4 	Sec. 57. WETLAND CONSERVATION ACT REPORT.
 114.5 	By March 15, 2016, the Board of Water and Soil Resources, in cooperation with the 
114.6 	Department of Natural Resources, shall report to the committees with jurisdiction over 
114.7 	environment and natural resources on the proposals to implement high priority areas for 
114.8 	wetland replacement and in-lieu fees for replacement and modify wetland replacement 
114.9 	siting and actions eligible for credit. In developing the report, the board and department 
114.10 	shall consult with stakeholders and agencies.

114.11 	Sec. 58. REFUNDS; YOUTH BEAR LICENSES.
 114.12 	The commissioner of natural resources may issue refunds for youth bear licenses 
114.13 	that were purchased between August 1, 2013, and June 30, 2014, to individuals who were 
114.14 	10, 11, or 12 years old at the time of purchase.

114.15 	Sec. 59. WILD RICE WATER QUALITY STANDARDS.
 114.16 	(a) Until the commissioner of the Pollution Control Agency adopts rules refining 
114.17 	the wild rice water quality standard in Minnesota Rules, part 7050.0224, subpart 2, 
114.18 	to incorporate new science and to include criteria for identifying waters and a list of 
114.19 	waters subject to the standard, implementation of the wild rice water quality standard 
114.20 	in Minnesota Rules, part 7050.0224, subpart 2, is limited to the following, unless the 
114.21 	permittee requests additional conditions:
114.22 	(1) the agency shall ensure that no existing discharge further causes or contributes to 
114.23 	sulfate impacts to wild rice and, to accomplish this, is limited by the following conditions:
114.24 	(i) the agency shall not require permittees to expend money for design or 
114.25 	implementation of sulfate treatment technologies or other forms of sulfate mitigation; and
114.26 	(ii) the agency may require sulfate minimization plans in permits;
114.27 	(2) the agency shall consider wild rice protection when evaluating proposals for new 
114.28 	or expanded discharges that include sulfate; and
114.29 	(3) the agency shall not list waters containing natural beds of wild rice as impaired 
114.30 	for sulfate under section 303(d) of the federal Clean Water Act, United States Code, title 
114.31 	33, section 1313, until the rulemaking described in this paragraph takes effect.
115.1 	(b) Upon the rule described in paragraph (a) taking effect, the agency may reopen 
115.2 	permits issued or reissued after the effective date of this section as needed to include 
115.3 	numeric permit limits based on the wild rice water quality standard.
115.4 	(c) The commissioner shall complete the rulemaking described in paragraph (a) by 
115.5 	January 15, 2018.

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

115.7 	Sec. 60. WORKING LANDS WATERSHED RESTORATION 
115.8 	IMPLEMENTATION PLAN.
 115.9 	(a) The Board of Water and Soil Resources shall develop a detailed plan to 
115.10 	implement Minnesota Statutes, section 103F.519, that includes the following:
115.11 	(1) selection of pilot watersheds that are expected to best demonstrate water quality 
115.12 	improvements and exhibit readiness to participate in the program;
115.13 	(2) an assessment of the quantity of agricultural lands that are expected to be eligible 
115.14 	for the program in each watershed;
115.15 	(3) an assessment of landowner interest in participating in the program;
115.16 	(4) an assessment of the contract terms and any recommendations for changes to 
115.17 	the terms;
115.18 	(5) an assessment of the opportunity to leverage federal funds through the program 
115.19 	and recommendations on how to maximize the use of federal funds in the future;
115.20 	(6) an estimate of water quality improvements resulting from implementation;
115.21 	(7) an assessment of potential groundwater quantity use of the proposed advanced 
115.22 	biofuel production facilities;
115.23 	(8) an assessment of how to best integrate implementation with existing conservation 
115.24 	requirements and practices;
115.25 	(9) a timeline for implementation, coordinated to the extent possible with the 
115.26 	proposed advanced biofuel production facilities; and
115.27 	(10) a projection of funding sources needed to complete implementation.
115.28 	(b) The board shall coordinate development of the plan with the commissioners of 
115.29 	natural resources, agriculture, and the Pollution Control Agency. The implementation plan 
115.30 	must be submitted by October 1, 2016, to the chairs and ranking minority members of the 
115.31 	legislative committees and divisions with jurisdiction over agriculture, natural resources, 
115.32 	and environment policy and finance and to the Clean Water Council.

115.33 	Sec. 61. INDEPENDENT PEER REVIEW OF WATER QUALITY STANDARDS.
 116.1 	(a) The commissioner of the Pollution Control Agency must ensure that an 
116.2 	independent peer review is conducted on any proposed change to a water quality standard 
116.3 	under Minnesota Statutes, chapter 115 or 116, when the estimated financial impact 
116.4 	to affected permittees is $50,000,000 or more, in total, within the first five years of 
116.5 	implementation. The commissioner must provide notice and take public comment on the 
116.6 	charge questions for independent peer review and must allow written and oral public 
116.7 	comment as part of the independent peer review process and the peer review report. 
116.8 	Documentation of compliance with the notice and comment requirements and the peer 
116.9 	review report must be included as part of the statement of need and reasonableness for 
116.10 	the proposed rule. 
116.11 	(b) The commissioner of the Pollution Control Agency must ensure that an 
116.12 	independent peer review according to paragraph (a) is conducted on the water quality 
116.13 	standards adopted by rule on August 4, 2014, and those rules are suspended until the 
116.14 	independent peer review and a new rulemaking is completed on those rules. The rules in 
116.15 	effect prior to adoption of the August 4, 2014, rules remain in effect until new rules are 
116.16 	adopted.

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

116.18 	Sec. 62. MINIMUM WATER QUALITY STANDARDS.
 116.19 	Until the Red River of the North water quality strategic plan is completed and 
116.20 	submitted to the legislature according to article 3, section 2, subdivision 2, the Minnesota 
116.21 	Pollution Control Agency must not require a current permittee that discharges to the Red 
116.22 	River of the North to meet standards above the minimum standards for water quality that 
116.23 	are set by the United States Environmental Protection Agency and that are applicable in 
116.24 	North Dakota.

116.25 	Sec. 63. COST ANALYSIS OF WATER QUALITY STANDARDS; 
116.26 	APPROPRIATION.
 116.27 	(a) The commissioner of the Pollution Control Agency, after consultation with 
116.28 	the commissioner of management and budget, shall issue a request for proposal not to 
116.29 	exceed $250,000 to contract with a nonstate entity for an engineering cost analysis of 
116.30 	current and recently adopted, proposed, or anticipated changes to water quality standards 
116.31 	and rules, including:
116.32 	(1) recently adopted or proposed changes to total suspended solid, nutrient, chloride, 
116.33 	nitrate, and sulfate standards;
116.34 	(2) proposed nondegradation rulemaking provisions; and
117.1 	(3) proposed changes to water quality standards to incorporate a tiered aquatic 
117.2 	life use framework.
117.3 	(b) The contractor may employ engineering subcontractors serving local 
117.4 	governments to complete the analysis. The analysis must include a cost analysis for 
117.5 	a representative sample of at least 15 communities. The sample must include a diverse 
117.6 	set of communities based on geography, watersheds, community size, wastewater facility 
117.7 	types and operators, storm water system types, and other factors to ensure the analysis is 
117.8 	representative of the state as a whole. The analysis must include:
117.9 	(1) an estimate of the overall capital and operating costs to maintain and upgrade 
117.10 	wastewater and storm water systems for existing water quality standards;
117.11 	(2) an estimate of the overall capital and operating costs likely to be incurred 
117.12 	to upgrade wastewater and storm water systems for recently adopted, proposed, or 
117.13 	anticipated changes to water quality standards; and
117.14 	(3) an estimate of the incremental effect to overall water quality in the receiving 
117.15 	waters as a direct result of the recently adopted, proposed, or anticipated changes to 
117.16 	water quality standards.
117.17 	(c) The commissioner shall submit the analysis to the chairs and ranking minority 
117.18 	members of the committees and divisions of the house of representatives and senate with 
117.19 	jurisdiction over water quality standards no later than January 1, 2017.
117.20 	(d) Until 45 legislative days after the report is submitted under paragraph (c), the 
117.21 	commissioner of the Pollution Control Agency must not require additional wastewater 
117.22 	treatment at wastewater treatment facilities that are necessary due to the changes in the 
117.23 	agency's water quality rules adopted on August 4, 2014.

117.24 	EFFECTIVE DATE. Paragraph (d) of this section is effective the day following 
117.25 	final enactment.

117.26 	Sec. 64. SURPLUS STATE LAND SALES.
 117.27 	The school trust lands director shall identify at least $5,000,000 in state-owned 
117.28 	lands suitable for sale and notify the commissioner of natural resources of the identified 
117.29 	lands. The lands identified shall not be within a unit of the outdoor recreation system 
117.30 	under Minnesota Statutes, section 86A.05, an administrative site, or trust land. The 
117.31 	commissioner shall sell at least $3,000,000 worth of lands identified by the school trust 
117.32 	lands director by June 30, 2017. Notwithstanding Minnesota Statutes, section 94.16, 
117.33 	subdivision 3, or any other law to the contrary, the amount of the proceeds from the sale of 
117.34 	lands that exceeds the actual expenses of selling the lands must be deposited in the school 
117.35 	trust lands account and used to extinguish the school trust interest as provided under 
118.1 	Minnesota Statutes, section 92.83, on school trust lands that have public water access 
118.2 	sites or old growth forests located on them.

118.3 	Sec. 65. REVISOR'S INSTRUCTION.
 118.4 	The revisor of statutes shall renumber the subdivisions of Minnesota Statutes, 
118.5 	section 103G.005, to retain alphabetical order and shall correct cross-references to the 
118.6 	renumbered subdivisions.

118.7 	Sec. 66.  REPEALER.
 118.8 	(a) Minnesota Statutes 2014, section 84.68, is repealed.
118.9 	(b) Minnesota Statutes 2014, section 86B.13, subdivisions 2 and 4, are repealed.
118.10 	(c) Laws 2010, chapter 215, article 3, section 3, subdivision 6, as amended by Laws 
118.11 	2010, First Special Session chapter 1, article 6, section 6, Laws 2013, chapter 114, article 
118.12 	3, section 9, is repealed.

118.13 	EFFECTIVE DATE. Paragraph (b) of this section is effective the day following 
118.14 	final enactment.