HF 826

4th Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the environment; proposing an amendment to
the Minnesota Constitution, article XI; creating the
Clean Water Legacy Act; providing authority,
direction, and funding to achieve and maintain water
quality standards for Minnesota's surface waters in
accordance with section 303(d) of the federal Clean
Water Act; modifying soil and water cost-share
contract provisions; extending citizen water
monitoring; creating a municipal grant program;
appropriating money; amending Minnesota Statutes 2004,
sections 103C.501, subdivision 5; 115.06, subdivision
4; 116.182, subdivision 2; 276.04, subdivision 2;
276.112; 290A.03, subdivisions 11, 13; 297A.62,
subdivision 1; 297A.94; proposing coding for new law
in Minnesota Statutes, chapter 446A; proposing coding
for new law as Minnesota Statutes, chapter 114D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

CLEAN WATER LEGACY

Section 1.

Minnesota Statutes 2004, section 103C.501,
subdivision 5, is amended to read:

Subd. 5.

Contracts by districts.

(a) A district board
may contract on a cost-share basis to furnish financial aid to a
land occupier or to a state agency for permanent systems for
erosion or sedimentation control or water quality improvement
that are consistent with the district's comprehensive and annual
work plans.

(b) The duration of the contract deleted text begin may deleted text end new text begin must, at a minimum, new text end be
the time required to complete the planned systems. A contract
must specify that the land occupier is liable for monetary
damages deleted text begin , not to exceed the deleted text end new text begin and penalties in an new text end amount deleted text begin of deleted text end new text begin up to
150 percent of the new text end financial assistance received from the
district, for failure to complete the systems or practices in a
timely manner or maintain the systems or practices as specified
in the contract.

(c) A contract may provide for cooperation or funding with
federal agencies. A land occupier or state agency may provide
the cost-sharing portion of the contract through services in
kind.

(d) The state board or the district board may not furnish
any financial aid for practices designed only to increase land
productivity.

new text begin (e) When a district board determines that long-term
maintenance of a system or practice is desirable, the board may
require that such maintenance be made a covenant upon the land
for the effective life of the practice. A covenant under this
subdivision shall be construed in the same manner as a
conservation restriction under section 84.65.
new text end

Sec. 2.

new text begin [114D.05] CITATION.
new text end

new text begin This chapter may be cited as the "Clean Water Legacy Act."
new text end

Sec. 3.

new text begin [114D.10] LEGISLATIVE PURPOSE.
new text end

new text begin The purpose of the Clean Water Legacy Act is to restore,
protect, and preserve the quality of Minnesota's surface waters
by providing authority, direction, and resources to restore and
maintain water quality standards for surface waters as required
by section 303(d) of the federal Clean Water Act, United States
Code, title 33, section 1313(d), and applicable federal
regulations.
new text end

Sec. 4.

new text begin [114D.15] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The definitions provided in
this section apply to the terms used in this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Citizen monitoring. new text end

new text begin "Citizen monitoring" means
monitoring of surface water quality by individuals and
nongovernmental organizations that is consistent with section
115.06, subdivision 4, and Pollution Control Agency guidance on
monitoring procedures, quality assurance protocols, and data
management.
new text end

new text begin Subd. 3. new text end

new text begin Clean water council. new text end

new text begin "Clean Water Council" or
"council" means the Clean Water Council created pursuant to
section 114D.30, subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin Federal tmdl requirements. new text end

new text begin "Federal TMDL
requirements" means the requirements of section 303(d) of the
Clean Water Act, United States Code, title 33, section 1313(d),
and associated regulations and guidance.
new text end

new text begin Subd. 5. new text end

new text begin Impaired water. new text end

new text begin "Impaired water" means surface
water that does not meet applicable water quality standards.
new text end

new text begin Subd. 6. new text end

new text begin Public agencies. new text end

new text begin "Public agencies" means all
state agencies, political subdivisions, joint powers
organizations, and special purpose units of government with
authority, responsibility, or expertise in protecting,
restoring, or preserving the quality of surface waters, managing
or planning for surface waters and related lands, or financing
waters-related projects. "Public agencies" also includes the
University of Minnesota and other public education institutions.
new text end

new text begin Subd. 7. new text end

new text begin Restoration. new text end

new text begin "Restoration" means actions,
including effectiveness monitoring, that are taken to restore
and maintain water quality standards for impaired waters in
accordance with a TMDL that has been approved by the United
States Environmental Protection Agency under federal TMDL
requirements.
new text end

new text begin Subd. 8. new text end

new text begin Surface waters. new text end

new text begin "Surface waters" means waters
of the state as defined in section 115.01, subdivision 22,
excluding groundwater as defined in section 115.01, subdivision
6.
new text end

new text begin Subd. 9. new text end

new text begin Third-party tmdl. new text end

new text begin "Third-party TMDL" means a
TMDL by the Pollution Control Agency that is developed in whole
or in part cooperatively between representatives from local
units of government where the TMDL is being completed and a
qualified public or private nonprofit entity other than the
Pollution Control Agency consistent with the goals, policies,
and priorities in section 114D.20.
new text end

new text begin Subd. 10. new text end

new text begin Total maximum daily load or tmdl. new text end

new text begin "Total
maximum daily load" or "TMDL" means a scientific study that
contains a calculation of the maximum amount of a pollutant that
may be introduced into a surface water and still ensure that
applicable water quality standards for that water are restored
and maintained. A TMDL also is the sum of the pollutant load
allocations for all sources of the pollutant, including a
wasteload allocation for point sources, a load allocation for
nonpoint sources and natural background, an allocation for
future growth of point and nonpoint sources, and a margin of
safety to account for uncertainty about the relationship between
pollutant loads and the quality of the receiving surface water.
"Natural background" means characteristics of the water body
resulting from the multiplicity of factors in nature, including
climate and ecosystem dynamics, that affect the physical,
chemical, or biological conditions in a water body, but does not
include measurable and distinguishable pollution that is
attributable to human activity or influence. A TMDL must take
into account seasonal variations.
new text end

new text begin Subd. 11. new text end

new text begin Tmdl implementation plan. new text end

new text begin "TMDL implementation
plan" means a document detailing restoration activities needed
to meet the approved TMDL's pollutant load allocations for point
and nonpoint sources.
new text end

new text begin Subd. 12. new text end

new text begin Water quality standards. new text end

new text begin "Water quality
standards" for Minnesota surface waters are found in Minnesota
Rules, chapters 7050 and 7052.
new text end

Sec. 5.

new text begin [114D.20] IMPLEMENTATION; COORDINATION; GOALS;
POLICIES; AND PRIORITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Coordination and cooperation. new text end

new text begin In
implementing this chapter, public agencies and private entities
shall take into consideration the relevant provisions of local
and other applicable water management, conservation, land use,
land management, and development plans and programs. Public
agencies with authority for local water management,
conservation, land use, land management, and development plans
shall take into consideration the manner in which their plans
affect the implementation of this chapter. Public agencies
shall identify opportunities to participate and assist in the
successful implementation of this chapter, including the funding
or technical assistance needs, if any, that may be necessary.
In implementing this chapter, public agencies shall endeavor to
engage the cooperation of organizations and individuals whose
activities affect the quality of surface waters, including point
and nonpoint sources of pollution, and who have authority and
responsibility for water management, planning, and protection.
To the extent practicable, public agencies shall endeavor to
enter into formal and informal agreements and arrangements with
federal agencies and departments to jointly utilize staff and
educational, technical, and financial resources to deliver
programs or conduct activities to achieve the intent of this
chapter, including efforts under the federal Clean Water Act and
other federal farm and soil and water conservation programs.
new text end

new text begin Subd. 2. new text end

new text begin Goals for implementation. new text end

new text begin The following goals
must guide the implementation of this chapter:
new text end

new text begin (1) to identify impaired waters in accordance with federal
TMDL requirements within ten years after the effective date of
this section and thereafter to ensure continuing evaluation of
surface waters for impairments;
new text end

new text begin (2) to submit TMDL's to the United States Environmental
Protection Agency for all impaired waters in a timely manner in
accordance with federal TMDL requirements;
new text end

new text begin (3) to set a reasonable time for implementing restoration
of each identified impaired water;
new text end

new text begin (4) to provide assistance and incentives to prevent waters
from becoming impaired and to improve the quality of waters
which are listed as impaired but have no approved TMDL
addressing the impairment;
new text end

new text begin (5) to promptly seek the delisting of waters from the
impaired waters list when those waters are shown to achieve the
designated uses applicable to the waters; and
new text end

new text begin (6) to achieve compliance with federal Clean Water Act
requirements in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Implementation policies. new text end

new text begin The following policies
must guide the implementation of this chapter:
new text end

new text begin (1) develop regional and watershed TMDL's and TMDL
implementation plans, and TMDL's and TMDL implementation plans
for multiple pollutants, where reasonable and feasible;
new text end

new text begin (2) maximize use of available organizational, technical,
and financial resources to perform sampling, monitoring, and
other activities to identify impaired waters, including use of
citizen monitoring;
new text end

new text begin (3) maximize opportunities for restoration of impaired
waters, by prioritizing and targeting of available programmatic,
financial, and technical resources and by providing additional
state resources to complement and leverage available resources;
new text end

new text begin (4) use existing regulatory authorities to achieve
restoration for point and nonpoint sources of pollution where
applicable, and promote the development and use of effective
nonregulatory measures to address pollution sources for which
regulations are not applicable;
new text end

new text begin (5) use restoration methods that have a demonstrated
effectiveness in reducing impairments and provide the greatest
long-term positive impact on water quality protection and
improvement while incorporating innovative approaches on a
case-by-case basis;
new text end

new text begin (6) identify for the legislature any innovative approaches
that may strengthen or complement existing programs;
new text end

new text begin (7) identify and encourage implementation of measures to
prevent waters from becoming impaired and to improve the quality
of waters that are listed as impaired but have no approved TMDL
addressing the impairment; and
new text end

new text begin (8) monitor and enforce cost-sharing contracts and impose
monetary damages in an amount up to 150 percent of the financial
assistance received for failure to comply.
new text end

new text begin Subd. 4. new text end

new text begin Priorities for identifying impaired waters. new text end

new text begin The
Pollution Control Agency, in accordance with federal TMDL
requirements, shall set priorities for identifying impaired
waters, giving consideration to:
new text end

new text begin (1) waters where impairments would pose the greatest
potential risk to human or aquatic health; and
new text end

new text begin (2) waters where data developed through public agency or
citizen monitoring or other means, provides scientific evidence
that an impaired condition exists.
new text end

new text begin Subd. 5. new text end [PRIORITIES FOR PREPARATION OF TMDL'S.] new text begin The Clean
Water Council shall recommend priorities for scheduling and
preparing TMDL's and TMDL implementation plans, taking into
account the severity of the impairment, the designated uses of
those waters, and other applicable federal TMDL requirements.
In recommending priorities, the council shall also give
consideration to waters and watersheds:
new text end

new text begin (1) with impairments that pose the greatest potential risk
to human health;
new text end

new text begin (2) with impairments that pose the greatest potential risk
to aquatic health;
new text end

new text begin (3) where other public agencies and participating
organizations and individuals, especially local, basinwide,
watershed, or regional agencies or organizations, have
demonstrated readiness to assist in carrying out the
responsibilities, including availability and organization of
human, technical, and financial resources necessary to undertake
the work; and
new text end

new text begin (4) where there is demonstrated coordination and
cooperation among cities, counties, watershed districts, and
soil and water conservation districts in planning and
implementation of activities that will assist in carrying out
the responsibilities.
new text end

new text begin Subd. 6. new text end

new text begin Priorities for restoration of impaired
waters. new text end

new text begin In implementing restoration of impaired waters, in
addition to the priority considerations in subdivision 5 the
Clean Water Council shall give priority in its recommendations
for restoration funding from the clean water legacy account to
restoration projects that:
new text end

new text begin (1) coordinate with and utilize existing local authorities
and infrastructure for implementation;
new text end

new text begin (2) can be implemented in whole or in part by providing
support for existing or ongoing restoration efforts; and
new text end

new text begin (3) most effectively leverage other sources of restoration
funding, including federal, state, local, and private sources of
funds; and
new text end

new text begin (4) show a high potential for early restoration and
delisting based upon scientific data developed through public
agency or citizen monitoring or other means.
new text end

new text begin Subd. 7. new text end

new text begin Priorities for funding prevention actions. new text end

new text begin The
Clean Water Council shall apply the priorities applicable under
subdivision 6, as far as practicable, when recommending
priorities for funding actions to prevent waters from becoming
impaired and to improve the quality of waters which are listed
as impaired but have no approved TMDL.
new text end

Sec. 6.

new text begin [114D.25] ADMINISTRATION; POLLUTION CONTROL
AGENCY.
new text end

new text begin Subdivision 1. new text end

new text begin General duties and authorities. new text end

new text begin (a) The
Pollution Control Agency, in accordance with federal TMDL
requirements, shall: identify impaired waters and propose a
list of the waters for review and approval by the United States
Environmental Protection Agency; develop and approve TMDL's for
listed impaired waters and submit the approved TMDL's to the
United State Environmental Protection Agency for final approval;
and propose to delist waters from the Environmental Protection
Agency impaired waters list.
new text end

new text begin (b) A TMDL must include a statement of the facts and
scientific data supporting the TMDL and a list of potential
implementation options, including a range of estimates of the
cost of implementation and individual wasteload data for any
point sources addressed by the TMDL.
new text end

new text begin (c) The implementation information need not be sent to the
United States Environmental Protection Agency for review and
approval.
new text end

new text begin Subd. 2. new text end

new text begin Administrative procedures for tmdl
approval. new text end

new text begin The approval of a TMDL by the Pollution Control
Agency is a final decision of the agency for purposes of section
115.05, and is subject to the contested case procedures of
sections 14.57 to 14.62 in accordance with agency procedural
rules. The agency shall not submit an approved TMDL to the
United States Environmental Protection Agency until the time for
commencing judicial review has run or the judicial review
process has been completed. A TMDL is not subject to the
rulemaking requirements of chapter 14, including section 14.386.
new text end

new text begin Subd. 3. new text end

new text begin Tmdl submittal requirement. new text end

new text begin Before submitting a
TMDL to the United States Environmental Protection Agency, the
Pollution Control Agency shall comply with the notice and
procedure requirements of this section. If a contested case
proceeding is not required for a proposed TMDL, the agency may
submit the TMDL to the United States Environmental Protection
Agency no earlier than 30 days after the notice required in
subdivision 4. If a contested case proceeding is required for a
TMDL, the TMDL may be submitted to the United States
Environmental Protection Agency after the contested case
proceeding and appeal process is completed.
new text end

new text begin Subd. 4. new text end

new text begin Tmdl notice; contents. new text end

new text begin The Pollution Control
Agency shall give notice of its intention to submit a TMDL to
the United States Environmental Protection Agency. The notice
must be given by publication in the State Register and by United
States mail to persons who have registered their names with the
agency. The notice must include either a copy of the proposed
TMDL or an easily readable and understandable description of its
nature and effect and an announcement of how free access to the
proposed TMDL can be obtained. In addition, the agency shall
make reasonable efforts to notify persons or classes of persons
who may be significantly affected by the TMDL by giving notice
of its intention in newsletters, newspapers, or other
publications, or through other means of communication. The
notice must include a statement informing the public:
new text end

new text begin (1) that the public has 30 days in which to submit comment
in support of or in opposition to the proposed TMDL and that
comment is encouraged;
new text end

new text begin (2) that each comment should identify the portion of the
proposed TMDL addressed, the reason for the comment, and any
change proposed;
new text end

new text begin (3) of the manner in which persons must request a contested
case proceeding on the proposed TMDL;
new text end

new text begin (4) that the proposed TMDL may be modified if the
modifications are supported by the data and views submitted; and
new text end

new text begin (5) the date on which the 30-day comment period ends.
new text end

new text begin Subd. 5. new text end

new text begin Third-party tmdl development. new text end

new text begin The Pollution
Control Agency may enter agreements with any qualified public or
private nonprofit entity setting forth the terms and conditions
under which that entity is authorized to develop a third-party
TMDL. Before entering into an agreement with an entity to
develop a third-party TMDL, the Pollution Control Agency must
make reasonable efforts to notify cities, counties, townships,
soil and water conservation districts, and watershed districts
in the area that would be affected by the TMDL. An agreement
with a private nonprofit entity must require active involvement
in the process by the Pollution Control Agency and appointment
of an advisory committee to provide oversight of the development
of the TMDL. At least 60 percent of the members of the advisory
committee must be representatives of local public agencies from
the area affected by the TMDL. In determining whether an entity
is qualified to develop a TMDL, the agency shall consider the
technical and administrative qualifications of the entity and
may not enter into an agreement with a third-party entity that
has a conflict of interest with respect to the development of
the third-party TMDL. A TMDL developed by a third party is
subject to monitoring, modification, and approval by the
Pollution Control Agency, and must be approved by the Pollution
Control Agency before it is submitted to the United States
Environmental Protection Agency. Before submitting a TMDL to
the Environmental Protection Agency, the Pollution Control
Agency must comply with the notice and procedure requirements of
subdivision 3. Approval of a third-party TMDL by the Pollution
Control Agency is subject to judicial review and contested case
procedures in the same manner as approval of any other TMDL by
the Pollution Control Agency. The Pollution Control Agency
shall only consider authorizing the development of TMDL's
consistent with the goals, policies, and priorities determined
under this section.
new text end

Sec. 7.

new text begin [114D.30] CLEAN WATER COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; duties. new text end

new text begin A Clean Water Council
is created to advise the Pollution Control Agency and other
implementing public agencies on the administration and
implementation of this chapter, and foster coordination and
cooperation as described in section 114D.20, subdivision 1. The
council may also advise on the development of appropriate
processes for expert scientific review as described in section
114D.35, subdivision 2. The Pollution Control Agency shall
provide administrative support for the council with the support
of other member agencies. The members of the council shall
elect a chair from the nonagency members of the council.
new text end

new text begin Subd. 2. new text end

new text begin Membership; appointment. new text end

new text begin The governor must
appoint the members of the council. The governor must appoint
one person from each of the following agencies: the Department
of Natural Resources, the Department of Agriculture, the
Pollution Control Agency, and the Board of Water and Soil
Resources. The governor must appoint 14 additional nonagency
members of the council as follows:
new text end

new text begin (1) two members representing statewide farm organizations;
new text end

new text begin (2) two members representing business organizations;
new text end

new text begin (3) two members representing environmental organizations;
new text end

new text begin (4) one member representing soil and water conservation
districts;
new text end

new text begin (5) one member representing watershed districts;
new text end

new text begin (6) one member representing nonprofit organizations focused
on improvement of Minnesota lakes or streams;
new text end

new text begin (7) one member representing an organization of county
governments;
new text end

new text begin (8) two members representing organizations of city
governments;
new text end

new text begin (9) one member representing the Metropolitan Council
established under section 473.123; and
new text end

new text begin (10) one member representing an organization of township
governments.
new text end

new text begin In making appointments, the governor must attempt to
provide for geographic balance.
new text end

new text begin Subd. 3. new text end

new text begin Terms; compensation; removal. new text end

new text begin The initial terms
of members representing state agencies and the Metropolitan
Council expire on the first Monday in January, 2007.
Thereafter, the terms of members representing the state agencies
and the Metropolitan Council are four years and are coterminous
with the governor. The terms of other members of the council
shall be as provided in section 15.059, subdivision 2. Members
may serve until their successors are appointed and qualify.
Compensation and removal of council members is as provided in
section 15.059, subdivisions 3 and 4. A vacancy on the council
may be filled by the appointing authority provided in
subdivision 1 for the remainder of the unexpired term.
new text end

new text begin Subd. 4. new text end

new text begin Implementation plan. new text end

new text begin The Clean Water Council
shall prepare a plan for implementation of this chapter. The
plan shall address general procedures and timeframes for
implementing this chapter, and shall include a more specific
implementation work plan for the next fiscal biennium and a
framework for setting priorities to address impaired waters
consistent with section 114D.45, subdivisions 2 to 7. The
council shall issue the first implementation plan under this
subdivision by December 1, 2005, and shall issue a revised work
plan by December 1 of each even-numbered year thereafter.
new text end

new text begin Subd. 5. new text end

new text begin Recommendations on appropriation of funds. new text end

new text begin The
Clean Water Council shall recommend to the governor the manner
in which money from the clean water legacy account should be
appropriated for the purposes identified in section 114D.45,
subdivision 3. The council's recommendations must be consistent
with the purposes, policies, goals, and priorities in sections
114D.05 to 114D.35, and shall allocate adequate support and
resources to identify impaired waters, develop TMDL's, develop
TMDL implementation plans, implement restoration of impaired
waters, and provide assistance and incentives to prevent waters
from becoming impaired and improve the quality of waters which
are listed as impaired but have no approved TMDL. The council
must recommend methods of ensuring that awards of grants, loans,
or other funds from the clean water legacy account specify the
outcomes to be achieved as a result of the funding, and specify
standards to hold the recipient accountable for achieving the
desired outcomes.
new text end

new text begin Subd. 6. new text end

new text begin Biennial report to legislature. new text end

new text begin By December 1
of each even-numbered year, the council shall submit a report to
the legislature on the activities for which money from the clean
water legacy account has been or will be spent for the current
biennium, and the activities for which money from the account is
recommended to be spent in the next biennium. The report due on
December 1, 2014, must include an evaluation of the progress
made through June 30, 2014, in implementing this chapter, the
need for funding of future implementation of those sections, and
recommendations for the sources of such funding.
new text end

Sec. 8.

new text begin [114D.35] PUBLIC AND STAKEHOLDER PARTICIPATION;
SCIENTIFIC REVIEW; EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Public and stakeholder participation.
new text end

new text begin Public agencies and private entities involved in the
implementation of this chapter shall encourage participation by
the public and stakeholders, including local citizens, land
owners and managers, and public and private organizations, in
the identification of impaired waters, in developing TMDL's, and
in planning, priority setting, and implementing restoration of
impaired waters. In particular, the Pollution Control Agency
shall make reasonable efforts to provide timely information to
the public and to stakeholders about impaired waters that have
been identified by the agency. The agency shall seek broad and
early public and stakeholder participation in scoping the
activities necessary to develop a TMDL, including the scientific
models, methods, and approaches to be used in TMDL development,
and to implement restoration pursuant to section 114D.15,
subdivision 7.
new text end

new text begin Subd. 2. new text end

new text begin Expert scientific advice. new text end

new text begin The Clean Water
Council and public agencies and private entities shall make use
of available public and private expertise from educational,
research, and technical organizations, including the University
of Minnesota and other higher education institutions, to provide
appropriate independent expert advice on models, methods, and
approaches used in identifying impaired waters, developing
TMDL's, and implementing prevention and restoration.
new text end

new text begin Subd. 3. new text end

new text begin Education. new text end

new text begin The Clean Water Council shall
develop strategies for informing, educating, and encouraging the
participation of citizens, stakeholders, and others regarding
the identification of impaired waters, development of TMDL's,
development of TMDL implementation plans, and implementation of
restoration for impaired waters. Public agencies shall be
responsible for implementing the strategies.
new text end

Sec. 9.

new text begin [114D.40] CLEAN WATER FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Imposition. new text end

new text begin A state clean water fee shall
annually be imposed on all parcels of improved property within
the state, as provided under this section, except that no fee
shall be imposed on parcels containing improvements that are
less than or equal to $5,000 in value. The value determined by
the assessor shall govern the proper amount of the fee, except
for those properties that are valued and assessed by the
commissioner of revenue, in which case the commissioner's value
shall govern the proper amount of the fee.
new text end

new text begin Subd. 2. new text end

new text begin Agricultural and residential property. new text end

new text begin For all
improved property classified under section 273.13 as class 2
agricultural, class 1a or 1b residential homestead, class 4b or
4bb residential nonhomestead, or class 4c noncommercial seasonal
residential recreational, the fee shall be $18, if the value of
the improvement is greater than $5,000 but not greater than
$50,000; or $36, if the value of the improvement is greater than
$50,000.
new text end

new text begin Subd. 3. new text end

new text begin Multiple-unit residential housing. new text end

new text begin For all
improved property classified under section 273.13 as class 4a
apartment property, the fee shall be $18 per unit of housing.
new text end

new text begin Subd. 4. new text end

new text begin Business property. new text end

new text begin For all improved property
classified under section 273.13 as class 3 commercial-industrial
public utility, class 1c or class 4c commercial seasonal
residential recreational, or class 5, the fee shall be:
new text end

new text begin (i) $60, if the value of the improvement or improvements is
greater than $5,000 but not greater than $50,000;
new text end

new text begin (ii) $120, if the value of the improvement or improvements
is greater than $50,000 but not greater than $500,000;
new text end

new text begin (iii) $300, if the value of the improvement or improvements
is greater than $500,000 but less than $1,000,000; or
new text end

new text begin (iv) $600, if the value of the improvement or improvements
is greater than $1,000,000.
new text end

new text begin Subd. 5. new text end

new text begin Exempt property. new text end

new text begin For all improved property that
is exempt from property taxation, the fee is $60.
new text end

new text begin Subd. 6. new text end

new text begin Assessment and collection of fee. new text end

new text begin (a) For
taxable parcels of property, the fee shall be extended against
the property by the county on the tax lists for the current
year. The fee shall be listed on the property tax statement on
a separate line. It shall be collected at the same time and in
the same manner as all other property taxes. The fee imposed
under this section is a lien upon the property assessed to the
same extent and for the same duration as the property taxes.
new text end

new text begin (b) For property exempt from property taxation, the fee
shall be assessed by the county directly on the property owner
and shall be collected and distributed in the same manner as
special assessments under chapter 429 are collected and
distributed.
new text end

new text begin Subd. 7. new text end

new text begin Settlement. new text end

new text begin The fee, less the cost to collect
fees, shall be remitted to the state commissioner of revenue at
the same time and in the same manner as the state general tax
under section 275.025. The commissioner of revenue shall
deposit the fees collected in the clean water legacy account
under section 114D.45.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fees
payable in 2006 through 2015, except that if the constitutional
amendment proposed in article 2 is adopted at the 2006 general
election, then no fees may be imposed under this section after
fees payable in 2007.
new text end

Sec. 10.

new text begin [114D.45] CLEAN WATER LEGACY ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The clean water legacy account
is created as an account in the environmental fund. Money in
the account must only be made available for the implementation
of this chapter and sections 446A.073 and 446A.074, without
supplanting or taking the place of any other funds which are
currently available or may become available from any other
source, whether federal, state, local, or private, for
implementation of those sections.
new text end

new text begin Subd. 2. new text end

new text begin Sources of revenue. new text end

new text begin The following revenues must
be deposited in the clean water legacy account:
new text end

new text begin (1) the revenue from the clean water fees collected under
section 114D.40; and
new text end

new text begin (2) interest accrued on the account.
new text end

new text begin Subd. 3. new text end

new text begin Uses of account. new text end

new text begin Subject to appropriation by
the legislature, the clean water legacy account may only be used
for the following purposes:
new text end

new text begin (1) to provide grants, loans, and technical assistance to
public agencies and others who are participating in the process
of identifying impaired waters, developing TMDL's and TMDL
implementation plans, implementing restoration of impaired
waters, and monitoring the effectiveness of restoration;
new text end

new text begin (2) to support measures to prevent waters from becoming
impaired and to improve the quality of waters that are listed as
impaired but have no approved TMDL addressing the impairment;
new text end

new text begin (3) to provide grants and loans for wastewater and
stormwater treatment projects through the Public Facilities
Authority;
new text end

new text begin (4) to support the efforts of public agencies associated
with individual sewage treatment systems and financial
assistance for upgrading and replacing the systems; and
new text end

new text begin (5) to provide funds to state agencies to carry out their
responsibilities under this chapter.
new text end

Sec. 11.

Minnesota Statutes 2004, section 115.06,
subdivision 4, is amended to read:

Subd. 4.

Citizen monitoring of water quality.

(a) The
agency may encourage citizen monitoring of ambient water quality
for public waters by:

(1) providing technical assistance to citizen and local
group water quality monitoring efforts;

(2) integrating citizen monitoring data into water quality
assessments and agency programs, provided that the data adheres
to agency quality assurance and quality control protocols; and

(3) seeking public and private funds to:

(i) collaboratively develop clear guidelines for water
quality monitoring procedures and data management practices for
specific data and information uses;

(ii) distribute the guidelines to citizens, local
governments, and other interested parties;

(iii) improve and expand water quality monitoring
activities carried out by the agency; and

(iv) continue to improve electronic and Web access to water
quality data and information about public waters that have been
either fully or partially assessed.

(b) This subdivision does not authorize a citizen to enter
onto private property for any purpose.

(c) By January 15 of each odd-numbered year, the
commissioner shall report to the senate and house of
representatives committees with jurisdiction over environmental
policy and finance on activities under this section.

deleted text begin (d) This subdivision shall sunset June 30, 2005.
deleted text end

Sec. 12.

Minnesota Statutes 2004, section 116.182,
subdivision 2, is amended to read:

Subd. 2.

Applicability.

This section governs the
commissioner's certification of projects seeking financial
assistance under section 103F.725, subdivision 1a, 446A.07, deleted text begin or
deleted text end 446A.072 new text begin , or 446A.075 new text end .

Sec. 13.

new text begin [446A.073] CLEAN WATER LEGACY PHOSPHORUS
REDUCTION GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of fund. new text end

new text begin The authority shall
establish a clean water legacy capital improvement fund and
shall make grants from the fund as provided in this section.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin The authority shall award grants from
the clean water legacy capital improvement fund to governmental
units for the capital costs of wastewater treatment facility
projects or a portion thereof that will reduce the discharge of
total phosphorus from the facility to one milligram per liter or
less. A project is eligible for a grant if it meets the
following requirements:
new text end

new text begin (1) the applicable phosphorus discharge limit is
incorporated in a permit issued by the agency for the wastewater
treatment facility on or after March 28, 2000, the grantee
agrees to comply with the applicable limit as a condition of
receiving the grant, or the grantee made improvements to a
wastewater treatment facility on or after March 28, 2000, that
include infrastructure to reduce the discharge of total
phosphorus to one milligram per liter or less;
new text end

new text begin (2) the governmental unit has submitted a facilities plan
for the project to the agency and a grant application to the
authority on a form prescribed by the authority; and
new text end

new text begin (3) the agency has approved the facilities plan, and
certified the eligible costs for the project to the authority.
new text end

new text begin Subd. 3. new text end

new text begin Eligible capital costs. new text end

new text begin Eligible capital costs
for phosphorus reduction grants under subdivision 4, paragraph
(a), include the as-bid construction costs and engineering
planning and design costs. Eligible capital costs for
phosphorus reduction grants under subdivision 4, paragraph (b),
include the final, incurred construction, engineering, planning,
and design costs.
new text end

new text begin Subd. 4. new text end

new text begin Grant amounts and priorities. new text end

new text begin (a) Priority must
be given to projects that start construction on or after July 1,
2005. If a facility's plan for a project is approved by the
agency before July 1, 2009, the amount of the grant is 75
percent of the eligible capital cost of the project. If a
facility's plan for a project is approved by the agency on or
after July 1, 2009, the amount of the grant is 50 percent of the
eligible capital cost of the project. Priority in awarding
grants under this paragraph must be based on the date of
approval of the facility's plan for the project.
new text end

new text begin (b) Projects that meet the eligibility requirements in
subdivision 2 and have started construction before July 1, 2005,
are eligible for grants to reimburse up to 75 percent of the
eligible capital cost of the project, less any amounts
previously received in grants from other sources. Application
for a grant under this paragraph must be submitted to the
authority no later than June 30, 2007. Priority for award of
grants under this paragraph must be based on the date of agency
approval of the facility plan.
new text end

new text begin (c) In each fiscal year that money is available for grants,
the authority shall first award grants under paragraph (a) to
projects that met the eligibility requirements of subdivision 2
by May 1 of that year. The authority shall use any remaining
money available that year to award grants under paragraph (b).
Grants that have been approved but not awarded in a previous
fiscal year carry over and must be awarded in subsequent fiscal
years in accordance with the priorities in this paragraph.
new text end

new text begin (d) Disbursements of grants under this section by the
authority to recipients must be made for eligible project costs
as incurred by the recipients, and must be made by the authority
in accordance with the project financing agreement and
applicable state law.
new text end

new text begin Subd. 5. new text end

new text begin Fees. new text end

new text begin The authority may charge the grant
recipient a fee for its administrative costs not to exceed
one-half of one percent of the grant amount, to be paid upon
execution of the grant agreement.
new text end

Sec. 14.

new text begin [446A.074] SMALL COMMUNITY WASTEWATER TREATMENT
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of fund. new text end

new text begin The authority shall
establish a small community wastewater treatment fund and shall
make loans and grants from the fund as provided in this section.
Money in the fund is annually appropriated to the authority and
does not lapse. The fund shall be credited with all loan
repayments and investment income from the fund, and servicing
fees assessed under section 446A.04, subdivision 5. The
authority shall manage and administer the small community
wastewater treatment fund, and for these purposes, may exercise
all powers provided in this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Loans and grants. new text end

new text begin (a) The authority shall award
loans as provided in paragraph (b) and grants as provided in
paragraph (c) to governmental units from the small community
wastewater treatment fund for projects to replace noncomplying
individual sewage treatment systems with a community wastewater
treatment system or systems meeting the requirements of section
115.55. A governmental unit receiving a loan or loan and grant
from the fund shall own the community wastewater treatment
systems built under the program and shall be responsible, either
directly or through a contract with a private vendor, for all
inspections, maintenance, and repairs necessary to assure proper
operation of the systems.
new text end

new text begin (b) Loans may be awarded for up to 100 percent of eligible
project costs as described in this section.
new text end

new text begin (c) When the area to be served by a project has a median
household income below the state average median household
income, the governmental unit may receive 50 percent of the
funding provided under this section in the form of a grant. An
applicant may submit income survey data collected by an
independent party if it believes the most recent United States
census does not accurately reflect the median household income
of the area to be served.
new text end

new text begin Subd. 3. new text end

new text begin Project priority list. new text end

new text begin Governmental units
seeking loans or loans and grants from the small community
wastewater treatment program shall first submit a project
proposal to the agency on a form prescribed by the agency. A
project proposal shall include a compliance determination for
all individual sewage treatment systems in the project area.
The agency shall rank project proposals on its project priority
list used for the water pollution control revolving fund under
section 446A.07.
new text end

new text begin Subd. 4. new text end

new text begin Applications. new text end

new text begin Governmental units with projects
on the project priority list shall submit applications to the
authority on forms prescribed by the authority. The application
shall include:
new text end

new text begin (1) a list of the individual sewage treatment systems
proposed to be replaced over a period of up to three years;
new text end

new text begin (2) a project schedule and cost estimate for each year of
the project;
new text end

new text begin (3) a financing plan for repayment of the loan; and
new text end

new text begin (4) a management plan providing for the inspection,
maintenance, and repairs necessary to assure proper operation of
the systems.
new text end

new text begin Subd. 5. new text end

new text begin Awards. new text end

new text begin The authority shall award loans or
loans and grants as provided in subdivision 2 to governmental
units with approved applications based on their ranking on the
agency's project priority list. The total amount awarded shall
be based on the estimated project costs for the portion of the
project expected to be completed within one year, up to an
annual maximum of $500,000. For projects expected to take more
than one year to complete, the authority may make a multiyear
commitment for a period not to exceed three years, contingent on
the future availability of funds. Each year of a multiyear
commitment must be funded by a separate loan or loan and grant
agreement meeting the terms and conditions in subdivision 6. A
governmental unit receiving a loan or loan and grant under a
multiyear commitment shall have priority for additional loan and
grant funds in subsequent years.
new text end

new text begin Subd. 6. new text end

new text begin Loan terms and conditions. new text end

new text begin Loans from the small
community wastewater treatment fund shall comply with the
following terms and conditions:
new text end

new text begin (1) principal and interest payments must begin no later
than two years after the loan is awarded;
new text end

new text begin (2) loans shall carry an interest rate of one percent;
new text end

new text begin (3) loans shall be fully amortized within ten years of the
first scheduled payment or, if the loan amount exceeds $10,000
per household, shall be fully amortized within 20 years but not
to exceed the expected design life of the system;
new text end

new text begin (4) a governmental unit receiving a loan must establish a
dedicated source or sources of revenues for repayment of the
loan and must issue a general obligation note to the authority
for the full amount of the loan; and
new text end

new text begin (5) each property owner to be served by a community
wastewater treatment system under this program must provide an
easement to the governmental unit to allow access to the system
for management and repairs.
new text end

new text begin Subd. 7. new text end

new text begin Special assessment deferral. new text end

new text begin (a) A governmental
unit receiving a loan under this section that levies special
assessments to repay the loan may defer payment of the
assessments under the provisions of sections 435.193 to 435.195.
new text end

new text begin (b) A governmental unit that defers payment of special
assessments for one or more properties under paragraph (a) may
request deferral of that portion of the debt service on its
loan, and the authority shall accept appropriate amendments to
the general obligation note of the governmental unit. If
special assessment payments are later received from properties
that received a deferral, the funds received shall be paid to
the authority with the next scheduled loan payment.
new text end

new text begin Subd. 8. new text end

new text begin Eligible costs. new text end

new text begin Eligible costs for small
community wastewater treatment loans and grants shall include
the costs of planning, design, construction, legal fees,
administration, and land acquisition.
new text end

new text begin Subd. 9. new text end

new text begin Disbursements. new text end

new text begin Loan and grant disbursements by
the authority under this section must be made for eligible
project costs as incurred by the recipients, and must be made in
accordance with the project loan or grant and loan agreement and
applicable state law.
new text end

new text begin Subd. 10. new text end

new text begin Audits. new text end

new text begin A governmental unit receiving a loan
under this section must annually provide to the authority for
the term of the loan a copy of its annual independent audit or,
if the governmental unit is not required to prepare an
independent audit, a copy of the annual financial reporting form
it provides to the state auditor.
new text end

Sec. 15.

new text begin [446A.075] TOTAL MAXIMUM DAILY LOAD GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin When money is
appropriated for grants under this program, the authority shall
make grants to municipalities to cover up to one-half the cost
of wastewater treatment or stormwater projects made necessary by
wasteload reductions under total maximum daily load required by
section 303(d) of the federal Clean Water Act, United States
Code, title 33, section 1313(d).
new text end

new text begin Subd. 2. new text end

new text begin Grant application. new text end

new text begin Application for a grant
shall be made to the authority on forms prescribed by the
authority for the total maximum daily load grant program, with
additional information as required by the authority, including a
project schedule and cost estimate for the work necessary to
comply with the point source wasteload allocation. In
accordance with section 116.182, the Pollution Control Agency
shall:
new text end

new text begin (1) calculate the essential project component percentage,
which shall be multiplied by the total project cost to determine
the eligible project cost; and
new text end

new text begin (2) review and certify approved projects to the authority.
new text end

new text begin Subd. 3. new text end

new text begin Project priorities. new text end

new text begin When money is appropriated
for grants under this program, the authority shall reserve money
for projects expected to start construction in the next 12
months in the order that:
new text end

new text begin (1) their total maximum daily load was approved by the
United States Environmental Protection Agency;
new text end

new text begin (2) their grant application is received by the authority;
and
new text end

new text begin (3) have the greatest load reduction as determined by the
Pollution Control Agency. The authority shall reserve money for
projects in an amount based on their most recent cost estimates
submitted to the authority or the as-bid costs, whichever is
less.
new text end

new text begin Subd. 4. new text end

new text begin Grant approval. new text end

new text begin The authority shall make a
grant to a municipality, as defined in section 116.182,
subdivision 1, only after:
new text end

new text begin (1) the commissioner of the Minnesota Pollution Control
Agency has certified to the United States Environmental
Protection Agency a total maximum daily load for identified
waters of this state that includes a point source wasteload
allocation;
new text end

new text begin (2) the Environmental Protection Agency has approved the
total maximum daily load;
new text end

new text begin (3) a municipality for which money is reserved has
submitted the as-bid costs for its wastewater treatment or
stormwater projects to the authority;
new text end

new text begin (4) the Pollution Control Agency has reviewed and certified
the project to the authority; and
new text end

new text begin (5) the authority has determined that the additional
financing necessary to complete the project has been committed
from other sources.
new text end

new text begin Subd. 5. new text end

new text begin Grant disbursement. new text end

new text begin Disbursement of a grant
shall be made for eligible project costs as incurred by the
municipality and in accordance with a project financing
agreement and applicable state and federal laws and rules
governing the payments.
new text end

new text begin Subd. 6. new text end

new text begin Fees. new text end

new text begin The authority may charge the grant
recipient a fee for its administrative costs not to exceed
one-half of one percent of the grant amount, to be paid upon
execution of the grant agreement.
new text end

Sec. 16.

Minnesota Statutes 2004, section 276.04,
subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer
shall provide for the printing of the tax statements. The
commissioner of revenue shall prescribe the form of the property
tax statement and its contents. The statement must contain a
tabulated statement of the dollar amount due to each taxing
authority and the amount of the state tax from the parcel of
real property for which a particular tax statement is prepared.
The dollar amounts attributable to the county, the state tax,
the voter approved school tax, the other local school tax, the
township or municipality, and the total of the metropolitan
special taxing districts as defined in section 275.065,
subdivision 3, paragraph (i), must be separately stated. The
amounts due all other special taxing districts, if any, may be
aggregated. If the county levy under this paragraph includes an
amount for a lake improvement district as defined under sections
103B.501 to 103B.581, the amount attributable for that purpose
must be separately stated from the remaining county levy
amount. The amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter
290B is the total amount of property tax before subtraction of
the deferred property tax amount. The amount of the tax on
contamination value imposed under sections 270.91 to 270.98, if
any, must also be separately stated. new text begin The fee imposed under
section 114D.40 must be listed on a separate line following the
special assessment line on the statement. It shall be called
the "State Clean Water Fee." new text end The dollar amounts, including the
dollar amount of any special assessments, may be rounded to the
nearest even whole dollar. For purposes of this section whole
odd-numbered dollars may be adjusted to the next higher
even-numbered dollar. The amount of market value excluded under
section 273.11, subdivision 16, if any, must also be listed on
the tax statement.

(b) The property tax statements for manufactured homes and
sectional structures taxed as personal property shall contain
the same information that is required on the tax statements for
real property.

(c) Real and personal property tax statements must contain
the following information in the order given in this paragraph.
The information must contain the current year tax information in
the right column with the corresponding information for the
previous year in a column on the left:

(1) the property's estimated market value under section
273.11, subdivision 1;

(2) the property's taxable market value after reductions
under section 273.11, subdivisions 1a and 16;

(3) the property's gross tax, calculated by adding the
property's total property tax to the sum of the aids enumerated
in clause (4);

(4) a total of the following aids:

(i) education aids payable under chapters 122A, 123A, 123B,
124D, 125A, 126C, and 127A;

(ii) local government aids for cities, towns, and counties
under chapter 477A; and

(iii) disparity reduction aid under section 273.1398;

(5) for homestead residential and agricultural properties,
the credits under section 273.1384;

(6) any credits received under sections 273.119; 273.123;
273.135; 273.1391; 273.1398, subdivision 4; 469.171; and
473H.10, except that the amount of credit received under section
273.135 must be separately stated and identified as "taconite
tax relief"; and

(7) the net tax payable in the manner required in paragraph
(a).

(d) If the county uses envelopes for mailing property tax
statements and if the county agrees, a taxing district may
include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget
deliberations for the current year, and encouraging taxpayers to
attend the hearings. If the county allows notices to be
included in the envelope containing the property tax statement,
and if more than one taxing district relative to a given
property decides to include a notice with the tax statement, the
county treasurer or auditor must coordinate the process and may
combine the information on a single announcement.

The commissioner of revenue shall certify to the county
auditor the actual or estimated aids enumerated in clause (4)
that local governments will receive in the following year. The
commissioner must certify this amount by January 1 of each year.

Sec. 17.

Minnesota Statutes 2004, section 276.112, is
amended to read:

276.112 STATE PROPERTY TAXES; COUNTY TREASURER.

On or before January 25 each year, for the period ending
December 31 of the prior year, and on or before June 29 each
year, for the period ending on the most recent settlement day
determined in section 276.09, and on or before December 2 each
year, for the period ending November 20, the county treasurer
must make full settlement with the county auditor according to
sections 276.09, 276.10, and 276.111 for all receipts of state
property taxes levied under section 275.025, new text begin and the
state-imposed fee under section 114D.40, new text end and must transmit those
receipts to the commissioner of revenue by electronic means.

Sec. 18.

Minnesota Statutes 2004, section 290A.03,
subdivision 11, is amended to read:

Subd. 11.

Rent constituting property taxes.

"Rent
constituting property taxes" means new text begin (i) new text end 19 percent of the gross
rent actually paid in cash, or its equivalent, or the portion of
rent paid in lieu of property taxes, in any calendar year by a
claimant for the right of occupancy of the claimant's Minnesota
homestead in the calendar year, and which rent constitutes the
basis, in the succeeding calendar year of a claim for relief
under this chapter by the claimant new text begin ; plus (ii) the amount of the
state clean water fee imposed on the rental unit under section
114D.40, allocated to multiple renters, if appropriate, as
prescribed under subdivision 8, paragraph (f) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims in
2007 and thereafter based on rent and fees paid in 2006 and
thereafter.
new text end

Sec. 19.

Minnesota Statutes 2004, section 290A.03,
subdivision 13, is amended to read:

Subd. 13.

Property taxes payable.

"Property taxes
payable" means the property tax new text begin plus the state clean water fee
imposed under section 114D.40 new text end exclusive of special assessments,
penalties, and interest payable on a claimant's homestead after
deductions made under sections 273.135, 273.1384, 273.1391,
273.42, subdivision 2, and any other state paid property tax
credits in any calendar year, and after any refund claimed and
allowable under section 290A.04, subdivision 2h, that is first
payable in the year that the property tax is payable. In the
case of a claimant who makes ground lease payments, "property
taxes payable" includes the amount of the payments directly
attributable to the property taxes assessed against the parcel
on which the house is located. No apportionment or reduction of
the "property taxes payable" shall be required for the use of a
portion of the claimant's homestead for a business purpose if
the claimant does not deduct any business depreciation expenses
for the use of a portion of the homestead in the determination
of federal adjusted gross income. For homesteads which are
manufactured homes as defined in section 273.125, subdivision 8,
and for homesteads which are park trailers taxed as manufactured
homes under section 168.012, subdivision 9, "property taxes
payable" shall also include 19 percent of the gross rent paid in
the preceding year for the site on which the homestead is
located. When a homestead is owned by two or more persons as
joint tenants or tenants in common, such tenants shall determine
between them which tenant may claim the property taxes payable
on the homestead. If they are unable to agree, the matter shall
be referred to the commissioner of revenue whose decision shall
be final. Property taxes are considered payable in the year
prescribed by law for payment of the taxes.

In the case of a claim relating to "property taxes
payable," the claimant must have owned and occupied the
homestead on January 2 of the year in which the tax is payable
and (i) the property must have been classified as homestead
property pursuant to section 273.124, on or before December 15
of the assessment year to which the "property taxes payable"
relate; or (ii) the claimant must provide documentation from the
local assessor that application for homestead classification has
been made on or before December 15 of the year in which the
"property taxes payable" were payable and that the assessor has
approved the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for claims in
2006 and thereafter based on taxes payable in 2006 and
thereafter.
new text end

Sec. 20. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin General provisions. new text end

new text begin The appropriations in
this section are from the environmental fund and are available
for the fiscal years ending June 30, 2006, and June 30, 2007.
Unless otherwise specified in this section, these appropriations
do not cancel and remain available until June 30, 2007.
Appropriations in this section that are encumbered under
contract, including grant contract, on or before June 30, 2007,
are available until June 30, 2009.
new text end

new text begin Subd. 2. new text end

new text begin Department of revenue; fee collection
costs. new text end

new text begin $38,000 in fiscal year 2006 and $31,000 in fiscal year
2007 are appropriated to the Department of Revenue to pay the
costs of collection and administration of the clean water fees
imposed in Minnesota Statutes, section 114D.40.
new text end

new text begin Subd. 3. new text end

new text begin Pollution control agency. new text end

new text begin The following amounts
are appropriated to the Pollution Control Agency for the
purposes stated:
new text end

new text begin (1) $1,000,000 in fiscal year 2006 is to assist counties in
developing the list required under Minnesota Statutes, section
114D.40, subdivision 4, paragraph (e), of persons subject to
clean water fees under Minnesota Statutes, section 114D.40,
subdivision 3, paragraphs (f) and (g);
new text end

new text begin (2) $1,860,000 in fiscal year 2006 and $4,125,000 in fiscal
year 2007 are for statewide assessment of surface water quality
and trends; of these amounts, up to $1,010,000 in fiscal year
2006 and $1,960,000 in fiscal year 2007 are available for grants
or contracts to support citizen monitoring of surface waters;
and
new text end

new text begin (3) $1,900,000 in fiscal year 2006 and $3,290,000 in fiscal
year 2007 are to develop TMDL's for waters listed on the United
States Environmental Protection Agency approved 2004 impaired
waters list; of this appropriation, up to $390,000 in fiscal
year 2006 and $1,140,000 in fiscal year 2007 are available for
grants or contracts to develop TMDL's.
new text end

new text begin Subd. 4. new text end

new text begin Agriculture department. new text end

new text begin The following amounts
are appropriated to the Department of Agriculture for the
purposes stated:
new text end

new text begin (1) $250,000 in fiscal year 2006 and $2,300,000 in fiscal
year 2007 are for agricultural best management practices
low-interest loans to producers and rural landowners and these
funds remain available until expended; of these amounts,
$200,000 in fiscal year 2006 and $2,100,000 in fiscal year 2007
are available for pass-through to local governments and lenders
for low-interest loans;
new text end

new text begin (2) $350,000 in fiscal year 2006 and $800,000 in fiscal
year 2007 are to expand technical assistance to producers and
conservation professionals on nutrient and pasture management;
target practices to sources of water impairments; coordinate
federal and state farm conservation programs to fully utilize
federal conservation funds; and expand conservation planning
assistance for producers; of these amounts, $50,000 in fiscal
year 2006 and $210,000 in fiscal year 2007 are available for
grants or contracts to develop nutrient and conservation
planning assistance information materials; and
new text end

new text begin (3) $100,000 in fiscal year 2006 and $800,000 in fiscal
year 2007 are for research, evaluation, and effectiveness
monitoring of agricultural practices in restoring impaired
waters; of these amounts, $600,000 in fiscal year 2007 is
available for grants or contracts for research, evaluations, and
effectiveness monitoring of agricultural practices in restoring
impaired waters, including on-farm demonstrations.
new text end

new text begin Subd. 5. new text end

new text begin Board of water and soil resources. new text end

new text begin The
following amounts are appropriated to the Board of Water and
Soil Resources for restoration and prevention actions as
described in Minnesota Statutes, section 114D.20, subdivisions 6
and 7:
new text end

new text begin (1) $450,000 in fiscal year 2006 and $5,750,000 in fiscal
year 2007 are for targeted nonpoint restoration cost-share and
incentive payments; of these amounts, up to $450,000 in fiscal
year 2006 and $5,450,000 in fiscal year 2007 are available for
grants to soil and water conservation districts through the
state cost-share program authorized under Minnesota Statutes,
section 103C.501;
new text end

new text begin (2) $412,000 in fiscal year 2006 and $3,450,000 in fiscal
year 2007 are for targeted nonpoint restoration technical,
compliance, and engineering assistance activities; of these
amounts, up to $412,000 in fiscal year 2006 and $3,250,000 in
fiscal year 2007 are available for grants to soil and water
conservation districts, watershed management organizations, or
counties to support nonpoint restoration implementation
activities;
new text end

new text begin (3) $200,000 in fiscal year 2007 is for reporting and
evaluation of applied soil and water conservation practices;
new text end

new text begin (4) $2,400,000 in fiscal year 2007 is for grants to
counties for implementation of county individual sewage
treatment systems programs through the local water resources
protection and management program under Minnesota Statutes,
section 103B.3369;
new text end

new text begin (5) $300,000 in fiscal year 2006 and $1,500,000 in fiscal
year 2007 are for base and challenge grants to support nonpoint
source protection activities related to lake and river
protection and management through the local water resources
protection and management program under Minnesota Statutes,
section 103B.3369; and
new text end

new text begin (6) $2,400,000 in fiscal year 2007 is for grants to soil
and water conservation districts for streambank, stream channel,
lakeshore, and roadside protection and restoration projects
through the state cost-share program under Minnesota Statutes,
section 103C.501.
new text end

new text begin Subd. 6. new text end

new text begin Department of natural resources. new text end

new text begin The following
amounts are appropriated to the Department of Natural Resources
for the purposes stated:
new text end

new text begin (1) $280,000 in fiscal year 2006 and $430,000 in fiscal
year 2007 are for statewide assessment of surface water quality
and trends; and
new text end

new text begin (2) $100,000 in fiscal year 2006 and $4,050,000 in fiscal
year 2007 are for restoration of impaired waters and actions to
prevent waters from becoming impaired; of these amounts, up to
$1,700,000 in fiscal year 2007 is available for grants and
contracts for forest stewardship planning and implementation,
and for research, compliance, and monitoring.
new text end

new text begin Subd. 7. new text end

new text begin Public facilities authority. new text end

new text begin $4,400,000 in
fiscal year 2006 and $44,015,000 in fiscal year 2007 are
appropriated to the Public Facilities Authority; of these
amounts, $4,400,000 in fiscal year 2006 and $17,000,000 in
fiscal year 2007 are to the clean water legacy capital
improvements fund for grants under Minnesota Statutes, section
446A.073; $4,582,000 in fiscal year 2007 is to the small
community wastewater treatment fund for loans and grants under
Minnesota Statutes, section 446A.074; and $22,433,000 in fiscal
year 2007 is to the water pollution control revolving fund under
Minnesota Statutes, section 446.07, for wastewater treatment and
stormwater projects, and for total maximum daily load grants
under Minnesota Statutes, section 446A.075. Funds appropriated
under this subdivision do not cancel and are available until
expended.
new text end

Sec. 21. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 15 are effective the day following final
enactment. Section 20 is effective July 1, 2005.
new text end

ARTICLE 2

CONSTITUTIONAL AMENDMENT

Section 1. new text begin CONSTITUTIONAL AMENDMENT.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to
the people. If the amendment is adopted, a section will be
added to article XI, to read:
new text end

new text begin Sec. 15. Beginning July 1, 2007, until June 30, 2016, the
state sales and use tax receipts equal to the state sales and
use tax of one-eighth of one percent on sales and uses taxable
under the general state sales and use tax law, plus penalties
and interest and reduced by any refunds, are dedicated to the
assessment, protection and restoration of the state's lakes,
rivers, streams, wetlands, and groundwater. The money dedicated
under this section shall be appropriated by law.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin The proposed amendment shall be submitted to the people at
the 2006 general election. The question submitted shall be:
new text end

new text begin "Shall the Minnesota Constitution be amended to provide
funding beginning July 1, 2007, to protect and restore the
state's lakes, rivers, streams, wetlands, and groundwater by
dedicating additional sales and use tax receipts equal to the
state sales and use tax of one-eighth of one percent on taxable
sales until the year 2016?
new text end

new text begin Yes .......
No ........"
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 apply to sales and uses occurring after
June 30, 2007.
new text end

ARTICLE 3

CONFORMING CHANGES

Section 1.

new text begin [114D.45] CLEAN WATER ACCOUNT.
new text end

new text begin The clean water legacy account in the environmental fund is
established in the Minnesota Constitution, article XI, section
15. All money earned by the clean water legacy account must be
credited to the account in the environmental fund.
new text end

Sec. 2.

Minnesota Statutes 2004, section 297A.62,
subdivision 1, is amended to read:

Subdivision 1.

Generally.

Except as otherwise provided
in subdivision 2 or 3 or in this chapter, a sales tax of 6.5
percent is imposed on the gross receipts from retail sales as
defined in section 297A.61, subdivision 4, made in this state or
to a destination in this state by a person who is required to
have or voluntarily obtains a permit under section 297A.83,
subdivision 1. new text begin After June 30, 2007, an additional sales tax of
0.125 percent is imposed under article XI, section 15, of the
Minnesota Constitution, for the purposes of clean water.
new text end

Sec. 3.

Minnesota Statutes 2004, section 297A.94, is
amended to read:

297A.94 DEPOSIT OF REVENUES.

(a) Except as provided in this section, the commissioner
shall deposit the revenues, including interest and penalties,
derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.

(b) The commissioner shall deposit taxes in the Minnesota
agricultural and economic account in the special revenue fund if:

(1) the taxes are derived from sales and use of property
and services purchased for the construction and operation of an
agricultural resource project; and

(2) the purchase was made on or after the date on which a
conditional commitment was made for a loan guaranty for the
project under section 41A.04, subdivision 3.

The commissioner of finance shall certify to the commissioner
the date on which the project received the conditional
commitment. The amount deposited in the loan guaranty account
must be reduced by any refunds and by the costs incurred by the
Department of Revenue to administer and enforce the assessment
and collection of the taxes.

(c) The commissioner shall deposit the revenues, including
interest and penalties, derived from the taxes imposed on sales
and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and
credit them as follows:

(1) first to the general obligation special tax bond debt
service account in each fiscal year the amount required by
section 16A.661, subdivision 3, paragraph (b); and

(2) after the requirements of clause (1) have been met, the
balance to the general fund.

(d) The commissioner shall deposit the revenues, including
interest and penalties, collected under section 297A.64,
subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall
transfer to the highway user tax distribution fund an amount
equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.

(e) For fiscal year 2001, 97 percent; for fiscal years 2002
and 2003, 87 percent; and for fiscal year 2004 and thereafter,
72.43 percent of the revenues, including interest and penalties,
transmitted to the commissioner under section 297A.65, must be
deposited by the commissioner in the state treasury as follows:

(1) 50 percent of the receipts must be deposited in the
heritage enhancement account in the game and fish fund, and may
be spent only on activities that improve, enhance, or protect
fish and wildlife resources, including conservation,
restoration, and enhancement of land, water, and other natural
resources of the state;

(2) 22.5 percent of the receipts must be deposited in the
natural resources fund, and may be spent only for state parks
and trails;

(3) 22.5 percent of the receipts must be deposited in the
natural resources fund, and may be spent only on metropolitan
park and trail grants;

(4) three percent of the receipts must be deposited in the
natural resources fund, and may be spent only on local trail
grants; and

(5) two percent of the receipts must be deposited in the
natural resources fund, and may be spent only for the Minnesota
Zoological Garden, the Como Park Zoo and Conservatory, and the
Duluth Zoo.

(f) The revenue dedicated under paragraph (e) may not be
used as a substitute for traditional sources of funding for the
purposes specified, but the dedicated revenue shall supplement
traditional sources of funding for those purposes. Land
acquired with money deposited in the game and fish fund under
paragraph (e) must be open to public hunting and fishing during
the open season, except that in aquatic management areas or on
lands where angling easements have been acquired, fishing may be
prohibited during certain times of the year and hunting may be
prohibited. At least 87 percent of the money deposited in the
game and fish fund for improvement, enhancement, or protection
of fish and wildlife resources under paragraph (e) must be
allocated for field operations.

new text begin (g) The commissioner shall deposit the sales tax revenue
collected under article XI, section 15, of the Minnesota
Constitution, in the state treasury for deposit in the clean
water legacy account.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective November 15, 2006, if the
constitutional amendment proposed in article 2 is adopted by the
voters.
new text end